Characteristics of Islamic Financial Literacy based on Demographic and Religiosity

Abstract

This paper is the first part of the dissertation with the title Demographic and Religiosity Factors as well as Their Implications for Islamic Financial Literacy. The method used in this study is a quantitative method using statistical data analysis techniques Structural Equation Model Partial Least Square (SEM -PLS). The result of this research is Islamic financial literacy characteristics of product and service knowledge, counting skills, attitudes and behavior, delivery channel, resources, and reference reflected latent variable of Islamic financial literacy and demographic characteristics of gender, age, education, and income expenditure are reflected by a latent variable of demographic, and religiosity characteristics of monotheism, rituals, muamalah, morals, and experience are reflected by a latent variable of religiosity. Accordingly, characteristics of Islamic financial literacy, demographic, and religiosity could be used by stakeholders in the Islamic financial industry to socialize the product and services globally and nationally in developing business and marketing strategies, which prioritize financial literacy and inclusion and financial education strategies according to the level developed by financial institutions.