<![CDATA[Islamic Microfinance Institutions face challenges in attracting people’s intention to use their product as commercial banks offer more advanced services and infrastructure that are easily accessible. Nevertheless, the sustainability and growth of Islamic Microfinance Institutions indicate the presence of distinctive characteristics that are not easily replicated by formal banking institutions. This study elaborates two key characteristics that are difficult for conventional banks to imitate which are product contextualization that delivers benefits aligned with the needs of micro communities, referred to as perceived benefit, and the emotional relationship between customers and institutional staff, referred to as empathy. This research examines the determinants of saving intention among 432 respondents from informal workers and low-income groups, who represent the core market of Islamic Microfinance Institutions in Indonesia. Using a quantitative approach and Structural Equation Modeling with PLS, the study tests the relationships among trust, knowledge, religious motivation, attitude, perceived benefit, empathy, and saving intention. The results show that trust, knowledge, and religious motivation significantly influence attitude, with trust as the strongest predictor. Attitude has the largest effect on saving intention. Perceived benefit and empathy also have significant direct effects on intention, although they do not moderate the attitude intention relationship. The findings highlight that practical service value and emotional connection, alongside institutional credibility, are crucial in strengthening saving intention within Islamic microfinance.]]>
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