Factors affecting Chinese ethnic interest in using Islamic banking products

Abstract

Purpose: This study aims to analyze the influence of understanding, environment, service, and performance on the interest of ethnic Chinese individuals in using Islamic banking products.

Method: The study employs a descriptive quantitative approach. The data consist of primary data obtained through questionnaires and secondary data gathered from literature studies. The population of this study comprises customers of Bank Syariah Indonesia's Selatpanjang Branch Office in Meranti Regency, Riau. The sampling technique applied was purposive sampling, with the criterion being active customers of Chinese ethnicity. The data were analyzed using multiple linear regressions, along with validity, reliability, classical assumption, and hypothesis testing.

Findings: The results indicate that understanding, service, and performance have a positive effect on the interest of ethnic Chinese individuals in using Islamic banking products, whereas the environment has a negative effect.

Implications: Theoretically, the findings of this study complement existing theories and support the Theory of Planned Behavior, Cognitive Theory, and Social Influence Theory. Practically, the results serve as a reference for Islamic banking institutions to improve service quality, performance, and public understanding.

Originality: The originality of this research lies in its focus on ethnic Chinese individuals as a non-Muslim group in the context of Islamic banking, the discovery of negative environmental effects, and the development of an integrative model that combines the variables of understanding, environment, service, and performance in relation to interest in using Islamic banking products.