A Study on The Awareness of The Islamic Banking System Among UMK Student

Abstract

The study from statistics released by Bank Negara Malaysia in 2012 found that conventional bank deposits are still high compared to the number of Islamic bank deposits. Although the Islamic banking system has been improving over the years, competing with conventional banks is still not sufficient. Thus, this situation has made it clear to us that the majority of banking consumers still do not practice or may still be unaware of the Islamic banking system, particularly among university students. The main objective of this study is to examine the relationship between knowledge, background, education status, and product quality at the level of awareness of the Islamic banking system among students at UMK. A total of 364 questionnaires were collected using Google Forms. Data analysis was carried out using SPSS tools containing the Reliability and Validity Test, Descriptive Testing, Pearson Correlation Analysis, and Multiple Linear Regression Analysis. The result shows a significant correlation between knowledge, background, education status, and product quality with the awareness of the Islamic banking system. In conclusion, the findings of this study prove that knowledge, background, the status of education, and product quality are the awareness of the Islamic banking system among UMK students. This study has implications for students and Islamic banking institutions. Islamic banking can run various campaigns such as collaborating with the university where all students have to use the Islamic banking system in every transaction.