Is Literacy Improving the Intention of The Younger Generation to Use Islamic Non-Bank Financial Products?

Sugianto Sugianto (Universitas Islam Negeri Sumatera Utara)
Andri Soemitra (Universitas Islam Negeri Sumatera Utara)
Sri Sudiarti (Universitas Islam Negeri Sumatera Utara)
Nur Amadi Bi Rahmani (Universitas Islam Negeri Sumatera Utara)

Al-Masharif: Jurnal Ilmu Ekonomi dan Keislaman
Vol 10, No 2 (2022)

The banking industry has historically dominated Islamic financial institutions. In fact, Non-Bank Financial Institutions (NBFIs) provide alternatives for the public's different financial needs. For Islamic Non-Bank Financial Institutions, the youthful Muslim generation is a very promising target market. The goal of this study is to see whether literacy can improve young Muslims' intention to use Non-Bank Financial Institutions' products. On 138 Muslim youngsters in North Sumatra, this study takes a quantitative method with simple linear regression analysis. The study's findings show that literacy has a positive and significant impact on the younger generation of Muslims' intentions to use Islamic Non-Bank Financial Institutions products. Socialization and education, both formal and informal, are important elements in raising the literacy of Muslims' younger generations.