The Influence of Digital Literacy and Islamic Financial Literacy on Gen Z's Interest in Islamic Banking

Abstract

Since its founding, Indonesia's Islamic banking industry has exhibited encouraging growth. This is closely related to the digital literacy programs initiated by the Otoritas Jasa Keuangan. This development is also supported by the rapid advancement of digital technology. Gen Z, as the largest population of digital technology users in Indonesia, must also master financial literacy. In relation to Islamic banking, not only digital literacy is needed, but also Islamic financial literacy. The purpose of this study is to determine how Gen Z's interest in Islamic banking is influenced by digital literacy and Islamic financial literacy. This quantitative research population consists of students from the D3 Accounting program at Politeknik Negeri Ujung Pandang, who are considered to have a grasp of Islamic financial literacy. Using Slovin's formula, the study's sample was calculated, yielding 95 samples. The study's findings indicate that Gen Z's interest in Islamic banks is positively influenced by digital literacy. Furthermore, Islamic financial literacy has a beneficial impact on Generation Z's interest in Islamic banks. This study also demonstrates that both digital literacy and Islamic financial literacy have a favorable and simultaneous impact on Generation Z's interest in Islamic banks. Digital and Islamic financial knowledge account for 43.6% of the influence on Generation Z's interest in Islamic banks, while 56.4% represents other factors affecting their interest in Islamic banks that were not tested in this study.