The Intention To Use Islamic Baking Products Among Gen Z Mediated By Islamic Financial Literacy

Abstract

This research explores factors influencing Generation Z's intention in Indonesia to use Islamic banking products by examining awareness, social influence, perceived ease of use, and Islamic financial literacy. Despite the global and national growth of Islamic banking, a notable gap remains between conventional and Islamic banking in Indonesia. Using Partial Least Square - Structural Equation Modeling (PLS-SEM) and surveying 230 respondents aged 17 to 27, the study finds that social influence and perceived ease of use significantly and positively impact the intention to use Islamic banking products. In contrast, awareness does not significantly affect this intention, and Islamic financial literacy does not mediate the relationships between awareness, social influence, and perceived ease of use with the intention to use. These results emphasize the critical roles of social influence and perceived ease of use and suggest the need for more effective strategies in financial literacy and awareness interventions to boost the adoption of Islamic banking products.