Harmonization of Islamic Financial Literacy in Understanding the Islamic Banking Services: The Case in Malaysia

Abstract

This study aims to explore the importance of harmonizing Islamic financial literacy in enhancing the understanding of Islamic banking services in Malaysia. The Islamic banking industry has expanded significantly in Malaysia, a well-known global leader for Islamic finance. Nevertheless, despite its expansion and rising popularity, there remains a lack of financial literacy among people, especially when it comes to understanding the complexities of Islamic banking. The findings of the informant interviews are summarized in this paper. Data was gathered using the focus group discussion (FGD) technique. The results of the study were analysed using the nominal group technique (NGT), which can highlight the significance, difficulties, and potential solutions related to these issues. In total, ten informants took part in this inquiry. The research’s findings are intended to help policymakers, regulators, financial institutions, and educational institutions in Malaysia establish successful measures to improve Islamic financial literacy and foster a deeper understanding of Islamic banking services.