Cogent Economics & Finance

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Islamic financial literacy, spiritual intelligence,

public perception and behaviour on public interest
in Islamic banking services

Fitri Yeni, Sitti Rizki Mulyani & Susriyanti Susriyanti

To cite this article: Fitri Yeni, Sitti Rizki Mulyani & Susriyanti Susriyanti (2023) Islamic
financial literacy, spiritual intelligence, public perception and behaviour on public
interest in Islamic banking services, Cogent Economics & Finance, 11:1, 2175470, DOI:
10.1080/23322039.2023.2175470

To link to this article: https://doi.org/10.1080/23322039.2023.2175470

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Yeni et al., Cogent Economics & Finance (2023), 11: 2175470
https://doi.org/10.1080/23322039.2023.2175470

FINANCIAL ECONOMICS | RESEARCH ARTICLE

Islamic financial literacy, spiritual intelligence,
public perception and behaviour on public
interest in Islamic banking services
Received: 03 March 2022 Fitri Yeni1*, Sitti Rizki Mulyani1 and Susriyanti Susriyanti1
Accepted: 27 January 2023
Abstract: This study aimed to determine the effect of Islamic financial literacy,
*Corresponding author: Fitri Yeni,
Lecturer, Faculty of Economics and spiritual intelligence, public perception, and behaviour on public interest in Islamic
Business, Universitas Putra Indonesia banking services. This research is classified as quantitative research. Islamic finan­
YPTK, Padang, Indonesia
E-mail: fitriyeni.upiyptk@gmail.com cial literacy, spiritual intelligence, and public perception are independent variables.
Reviewing editor: Public behaviour as a mediating variable. The population in this study is the entire
David McMillan, University of Stirling, community in Padang city who are already customers of Islamic banks. The sample
Stirling, UK
is determined by the Hair method, five times the number of indicators, where the
Additional information is available at
the end of the article number of indicators is 46 items. The number of respondents in this study was 230
people. Data analysis using structural equation model by using Smart-PLS. The
results show Islamic financial literacy and public perception have no significant
effect on public interest in Islamic banking services. However, spiritual intelligence
has a positive and significant effect on public interest in Islamic banking services.
Public behaviour fully mediates the relationship between public perception and
public interest in Islamic banking services. Islamic banking is expected to be able to
educate prospective customers through increasing spiritual intelligence. Public
behaviour can be improved with the religiosity community, thereby increasing
interest in saving in Islamic banks.

Subjects: Finance; Banking; Business, Management and Accounting

ABOUT THE AUTHORS PUBLIC INTEREST STATEMENT

Fitri Yeni is a lecturer at Faculty of Economics and Padang city is one of the big cities in Indonesia
Business, Universitas Putra Indonesia YPTK with a majority Muslim population located on the
Padang. She is a management doctoral candi­ island of Sumatra. The high population is not in
date. Her research interest could be found in line with the increasing number of customers in
financial management, corporate governance using Islamic banking products. This article pre­
and Islamic banking. sents empirical evidence of the factors that
Sitti Rizki Mulyani is a lecturer at Faculty of cause public interest in using Islamic banking
Economics and Business, Universitas Putra services. This article contributes to the public to
Indonesia YPTK Padang. She is a management understand the difference between conventional
doctoral candidate. Her research related to banks and Islamic banks. For academics, this
financial management and human resource article contributes to obesrves at the relationship
management. between related variables. For Islamic banks, this
Susriyanti Susriyanti is a lecturer at Faculty of article can be a recommendation to increase the
Fitri Yeni Economics and Business, Universitas Putra public interest in Islamic banking product
Indonesia YPTK Padang. She is a management through Islamic financial literacy, spiritual intel­
doctoral candidate. Her research related to ligence, public perception and behaviour.
human resource management and corporate
governance.

© 2023 The Author(s). This open access article is distributed under a Creative Commons
Attribution (CC-BY) 4.0 license.

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Keywords: Islamic financial literacy; spiritual intelligence; public perception; public

behaviour; Islamic banking services

JEL CLASSIFICATION: G21; G24

1. Introduction
Islamic banking in Indonesia was started in 1992 through Law no. 7/1992, which allows banks to
run their business operations with a murabahah or profit-sharing system. So that in the same year,
the first Islamic bank in Indonesia was established, namely Bank Muamalat Indonesia. The
development of Islamic banks is likely to run well if it can refer to public demand for Islamic
bank products and services. With the capital of the Act and the moral and spiritual values of the
community, the behaviour patterns of the increasingly religious people, Islamic banking must be
able to prove that its existence in the banking world will be able to serve the needs of the
community, both in terms of surplus pending units and deficit spending units. Although the
intensive development of Islamic banks is still relatively new, it should be remembered that its
development is not based on the infant industries argument, which is based on protection and
privileges alone. Islamic banks comb through the emotional aspects of the religiosity of the
Indonesian people, who are predominantly Muslim.

As part of the national banking system, Islamic banking has an essential role in the economy.
The role of Islamic banking in Indonesia’s economic activity is not much different from conven­
tional banking. The primary difference between the two is the principles in financial/operational
transactions. One of the principles in sharia banking operations is the application of profit and loss
sharing. This principle does not apply in conventional banking that applies the interest system.
However, the three main banking activities, namely funding, landing, and service, are also carried
out by Islamic banking as a whole, as is the case with conventional banks.

In its development, Islamic banking faces many challenges and problems. Problems that arise
include the low level of public knowledge of Islamic banking, mainly due to the dominance of
conventional banking (Nouman et al., 2018). Several obstacles arise in connection with the devel­
opment of Islamic banking, which include: inadequate public understanding of the operational
activities of Islamic banks (Alam et al., 2019), the prevailing banking regulations have not fully
accommodated the operations of Islamic banks (Suzuki et al., 2019), (3) Sharia bank office network
which is not yet extensive (Hosen et al., 2019), and (4) human resources who have expertise in
Islamic banking are still few (Py Lai & Samers, 2017).

Various public perceptions and paradigms emerged after the existence of Islamic banks. Among
them is that the “profit-sharing” system only changes its name to “interest,” even though it is the
same without any difference, even its implementation is considered more burdensome than
existing conventional banks. This opinion is formed from their experiences and information circu­
lating in the community. Another thing is the spiritual intelligence of the people. The higher the
religious spirit of the community, the higher their tendency to leave things that are considered
usury. So with this trend, we are also interested in knowing how this spiritual intelligence can
encourage their behaviour patterns to use Islamic bank products in this banking need.

The growth of the Islamic banking industry in Indonesia shows a trend that continues to
increase rapidly after experiencing a slowdown in growth due to the 2008/2009 United States
crisis. At the end of September 2011, asset growth reached 47.8% or Rp. 123.4 trillion, the highest
since 2005. The growth of depositor funds and financing provided at the same time was even more
rapid, reaching 53% or Rp. 97.8 trillion and 52.3% or Rp. 92.8 trillion, with an FDR (financing to
deposits ratio) of 95.7%. In comparison, the growth of conventional banking assets at the same
time reached 22.2% or Rp. 3371.5 trillion, with a DR (loan to deposits ratio) of 81.4%. Padang City,
West Sumatra, is one of the provinces with a Muslim population of almost 97.6%. Padang City,

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West Sumatra, is one of the provinces with a Muslim population of almost 97.6%. However, the
increase in Islamic bank assets in Padang is still below the expected target of 15% in 2021.

This research is different from previous research by Abdullah and Anderson (2015), specializing
in Islamic financial literacy as a predictor. This research adds spiritual intelligence and public
behaviour as predictors. In addition, there are differences in population and research samples.
Previous research by Ali and Raza (2017) used service quality perception as a predictor. However,
this research used public perception. Selvanathan et al. (2018) used bank reputation, convenience,
religious value, and cost-benefit as preditors. Several previous studies have focused on the facilities
and brands or the convenience offered by Islamic banks. However, this study focuses more on how
the knowledge of customers can influence their behaviour in choosing an Islamic bank.

2. Literature review
Financial Services Authority Regulation in Indonesia, Number 76/POJK.07/2016 states that
Financial Literacy is knowledge, skills, and beliefs, which influence attitudes and behaviour to
improve the quality of decision-making and financial management to achieve prosperity.
Objectives of Financial Literacy, (a) improving the quality of individual financial decision making;
and (b) changes in individual attitudes and behaviour in financial management for the better, so
that they can determine and utilize financial institutions, products, and services that are by the
needs and abilities of consumers or society in order to achieve prosperity. Meanwhile, the scope of
efforts to increase financial literacy to improve Financial Literacy is the planning and implementa­
tion of (a) Financial Education; and (b) the development of infrastructure that supports Financial
Literacy for Consumers or the public. The objective of the Islamic financial literacy development
program is to expand and improve knowledge, understanding, and community participation in the
use of Islamic financial products and services (Abdullah & Anderson, 2015: Er & Mutlu, 2017: Nawi
et al., 2018). The higher the community’s financial literacy, it will reduce the hedonistic lifestyle
and create a habit of saving. Financial literacy will affect people’s saving behaviour (Lusardi, 2019).

Spiritual intelligence focuses on the teachings of God. Those who are spiritually intelligent are
the type of calm soul. Thus, they always display a self-image full of morals, love, and affection,
loves and wants to be loved by God, so that wherever man is, he always feels watched by his God
(Dhiman, 2019). Spiritual intelligence is the intelligence of the soul that can help a person build
himself as a whole and have a clear meaning and purpose for himself. Spiritual intelligence does
not depend on the value that other people place on themselves. However, spiritual intelligence
creates the possibility to have its values for others (Hanefar et al., 2016; Vasconcelos, 2020).
Spiritual intelligence is a human ability that makes humans realize and determine the meaning,
values, morals, and love for greater power and fellow living beings because awareness is born as
part of the whole. So that people can put themselves and live more positively with complete
wisdom. Spiritual intelligence embodied in religiosity can improve financial management
(Agarwala et al., 2019: Nugroho et al., 2017).The term perception is usually used to express the
experience of an object or an event that is experienced (Hassenzahl et al., 2015). Perception is the
starting point for the birth of what kind of behaviour humans will do (Mha, 2015). In other words,
perception is a potential that is ready to be actualized at any time in the form of attitudes and
behaviour. Departs from the conclusion that perception is one of the cognitive abilities that play
a critical role concerning other human activities, which are more complex. Perceptions of Islamic
banks are divided into three parts, namely perceptions of bank interest, profit sharing, and Islamic
bank products (Wulandari & Subagio, 2015). The better the public’s perception of this will affect
people’s behaviour in saving in Islamic banks (Musa et al., 2020: Rahmi et al., 2020).

Acceptance of the existence of Islamic banks will affect people’s behaviour in saving (Raza et al.,
2019; Selvanathan et al., 2018). Some groups assume that conventional banks are no different
from conventional banks (Zarrouk et al., 2016). However, the behaviour of people who accept the
existence of Islamic banks and understand the differences with conventional banks will affect
behaviour in using products from Islamic banks (Ltifi et al., 2016). Community religiosity

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encourages people’s behaviour to use Islamic products, including banking services (Sarofim et al.,
2020)

Based on literature review and previous studies, the hypotheses of this research are as follows:

H1: Islamic financial literacy has a positive and significant effect on public interest in Islamic banking
services

H2: Spiritual intelligence has a positive and significant effect on public interest in Islamic banking
services

H3: public perception has a positive and significant effect on public interest in Islamic banking
services

H4: public behaviour mediates Islamic financial literacy and public interest in Islamic banking
services

H5: public behaviour mediates spiritual intelligence and public interest in Islamic banking services

H6: public behaviour mediates public perception and public interest in Islamic banking services

3. Methods
This research uses a quantitative approach. A quantitative approach explains phenomena by
collecting numerical data that are analyzed using mathematically based methods (Apuke, 2017).
The population in this study is the entire community in Padang city who are already customers of
Islamic banks or not with 950,000 people. The sample was determined by the calculation method
of Hair et al. (2021). The minimum number of samples is five times the indicator. The number of
indicators in this study was 46, so the number of samples was 230 respondents. The instrument for
collecting data in this study was a questionnaire compiled using a Likert scale. Likert Scale
consisting of 1) strongly disagree 2) disagree 3) neutral 4) agree 5) strongly agree, were used in
the answer section.

The independent variables used in this study are Islamic financial literacy (X1), spiritual intelli­
gence (X2), and public perception (X3). Public behaviour (Y) as a mediating variable. The indepen­
dent variable is the public interest in Islamic banking services (Z).

The Islamic financial literacy (X1) variable consists of five dimensions: (1) knowledge of Islamic
finance; (2) Islamic financial communication skills; (3) the ability to use knowledge of Islamic
finance for decision making; (4) actual use of Islamic financial instruments; (5) financial trust
(Ahmad et al., 2020; Dinc et al., 2021; Setiawati et al., 2018). Spiritual intelligence (X2) consists of
nine dimensions: (1) ability to be flexible; (2) ability to adapt and take advantage of suffering; (3)
ability to adapt and utilize suffering; (4) ability to face and overcome pain; (5) quality of life inspired
by vision and mission; (6) reluctance to cause harm unnecessarily; (7) holistic view; (8) significant
tendency to ask why or how to seek basic answers; (9) dedicated and responsible leader
(Mahasneh et al., 2015; Sirine & Kurniawati, 2018; Vasconcelos, 2020). Public perception (X3)
consists of three dimensions: (1) perception about interest; (2) perception of profit-sharing; (3)
perception of Islamic bank products (Ali & Raza, 2017; Chaouch, 2017; Kashif et al., 2016). Public
behaviour (Y) consists of four dimensions (1) Attitude to accept Islamic banks; (2) control of
perceptions of Islamic banks; (3) subjective norms towards saving intentions (4) community
religiosity (Kaakeh et al., 2018; Mahadin & Akroush, 2019; Nugroho et al., 2017). Public interest
in Islamic banking services (Z) consists of five dimensions (1) bank performance (2) managed by
trusted professionals (3) able to provide competitive profit sharing, and attractive prizes (4) able to

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provide products according to community needs (5) have an extensive branch network and good
infrastructure (Ezeh & Nkamnebe, 2019; Pitchay et al., 2019; Usman et al., 2017; Wulandari &
Subagio, 2015). The operational definition and measurement of variables is presented in Table 1.

The analysis used in this study consists of convergent validity test, discriminant validity test,
reliability test, composite reliability test, multicollinearity test, the goodness of fit test, coefficient
determination test, direct effect, and an indirect effect by using Smart-PLS.

4. Result and discussion

4.1. Result
Respondents of this research have quite different characteristics. The respondent profile of the
study is presented in Table 2 below. In this Table, 55.6% of the respondents were male and 44.4%
were female. The majority of the respondents were married, 58%, whereas 42% participated in our
study as single. During the data collection time, most of the respondents were between 41 and
45 years of age (22.6%), followed by 46 ≤ 50 (20%), > 55 (11.4%), 51 ≤ 55 (10.9%) and < 25 (9%).

The results of data processing with Smart-PLS are presented in Figure 1 below.

The results of the convergent validity test contained in Table 3 indicate that the indicators used
in this study are classified as valid. It can be seen from the factor loading value in each variable
> 0.5.

The result of discriminant validity test results are shown in Table 4 below:

Based on Table 4 above, it can be seen that the data is classified as valid because the average
variance is > the correlation of the latent variables. The reliability test and composite reliability test
results are shown in Table 5.

Based on Table 5 above, it can be concluded that the variables are classified as reliable because
the Cronbach’s value and composite reliability value > 0.7. The result of the multicollinearity test is
shown in Table 6.

Based on the calculations in the Table, the data is free from multicollinearity symptoms because
the value of each VIF indicator is < 10. The results of the goodness of fit test from the proposed
model are in Table 7 below:

Based on Table 7 above, it can be concluded that the model is feasible because the value of
Standardized Root Mean Square Residual (SRMR) < 0.1. Furthermore, the Normed Fit Index (NFI)
value is in the range of 0 and 1. The result of the coefficient determination test are shown in
Table 8 below:

Table 9, 10 and 11 presented Direct, Indirect and total Effect of the model

5. Discussion
Based on the results of the calculations in Table 8, it can be seen that the effect of Islamic financial
literacy (X1), spiritual intelligence (X2), public perception (X3) on public behaviour (Y) simultaneously
is 0.422 or 42.2%, other variables outside the model influence the rest. From Table 8, it can also be
seen that the effect of Islamic financial literacy (X1), spiritual intelligence (X2), public perception
(X3), public behaviour (Y) on public interest to Islamic banking services (Z) simultaneously is 0.592
or 59.2%, other variables outside the model influence the rest.

Direct effect calculations are presented in Table 9. Based on the calculation, the effect of Islamic
financial literacy (X1) on public behaviour (Y) is 0.190, with aprobability of 0.215. Islamic financial

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Table 1. Operational definitions and measurement

Operational
Variable Definitions Indicator Reference
Islamic Financial Literacy knowledge, skills, and (1) Knowledge of (Ahmad et al., 2020;
(X1) beliefs, which influence Islamic finance in Setiawati et al., 2018;
attitudes and behaviour general Dinc et al., 2021)
to improve the quality of (2) Islamic financial
decision-making and communication
financial management to skills
achieve prosperity
(3) the ability to use
knowledge of
Islamic finance for
decision making
(4) Actual use of
Islamic financial
instruments
(5) financial trust
(6) Knowledge of
Islamic finance
principles
(7) Knowledge of
Islamic finance
program
(8) Knowledge of
Islamic finance
regulations
(9) Knowledge of the
impact financial
islamic
(10) Knowledge of
Islamic financial
methods

Spiritual Intelligence (X2) The intelligence of the (1) Ability to be flexible (Sirine & Kurniawati,
soul that can help (2) ability to adapt and 2018; Mahasneh et al.,
a person build himself as take advantage of 2015; Vasconcelos, 2020)
a whole and have a clear suffering
meaning and purpose for
himself (3) ability to adapt and
utilize suffering
(4) ability to face and
overcome pain
(5) quality of life
inspired by vision
and mission
(6) reluctance to cause
harm unnecessarily
(7) holistic view
(8) significant tendency
to ask why or how to
seek basic answers
(9) the dedicated and
responsible leader

(Continued)

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Operational
Variable Definitions Indicator Reference
Public Perception (X3) A potential that is ready (1) perception about (Ali & Raza, 2017; Kashif
to be actualized at any interest et al., 2016; Chaouch,
time in the form of (2) perception of profit- 2017)
attitudes and behaviour sharing
(3) perception of Islamic
bank products
(4) Prohibition of riba
(5) Lawful activities
(6) Ethical and moral
values
(7) Prohibition of
gambling
(8) Prohibition of
speculations
(9) Perceived usefulness

Public Behaviour (Y) The method in which (1) Attitude to accept (Nugroho et al., 2017;
somebody responds in Islamic banks Mahadin & Akroush,
reaction to a particular (2) Control of percep­ 2019; Kaakeh et al.,
situation or tions of Islamic 2018)
circumstance. banks
(3) Subjective norms
towards saving
intentions
(4) Community
religiosity
(5) Consider services of
Islamic banks
(6) Islamic banks are
not involved in
unethical activities
(7) Islamic bank does
not invest in unlaw­
ful activities
(8) Islamic banks con­
cern to upgrade the
living standard of
the people
(9) Islamic banks con­
cern to serve for the
welfare of society

(Continued)

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Table 1. (Continued)

Operational
Variable Definitions Indicator Reference
Public Interest (Z) People’s stable (1) Bank performance (Pitchay et al., 2019; Ezeh
psychological features (2) Managed by trusted & Nkamnebe, 2019;
that characterize professionals Usman et al., 2017;
personal appraisal Wulandari & Subagio,
(subjective attributions of (3) Able to provide 2015)
“goodness” or “badness,” competitive profit
evaluated degree of sharing and attrac­
personal fit or mismatch) tive prizes
(4) Able to provide pro­
ducts according to
community needs
(5) Considering the ser­
vices of Islamic
banks is a good idea
(6) l interested in using
Islamic banking pro­
ducts in future
(7) Recommend others
to go for the services
of Islamic banks
(8) Have an extensive
branch network
(9) Have a good infra­
structure

Table 2. Respondent profile

Demographic Frequency Percentage (%)
Gender
Male 128 55.6
Female 102 44.4
Marital Status
Single 97 42
Married 133 58
Age
<25 21 9
26 ≤ 30 18 7
31 ≤ 35 24 10.4
36 ≤ 40 20 8.7
41 ≤ 45 52 22.6
46 ≤ 50 46 20
51 ≤ 55 25 10.9
> 55 24 11.4
Source: Data processed by authors

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Figure 1. Smart-PLS analysis

result.

literacy (X1) on public interest to Islamic banking services (Z) is 0.063 with a probability of 0.552. The
effect of spiritual intelligence (X2) on public behaviour (Y) is −0.165, with a probability of 0.358. The
effect of spiritual intelligence (X2) on public interest in Islamic banking services (Z) is 0.501 with
probability. 0.000. The effect of public perception (X3) on public behaviour (Y) is 0.592 with
a probability of 0.000. The effect of public perception (X3) on public interest in Islamic banking services
(Z) is −0.023 with a probability of 0.839. The effect of public behaviour (Y) on public interest in Islamic
banking services (Z) is 0.422 with probability. 0.000.

Indirect effect calculations are presented in Table 10. Based on the calculation, the effect of
Islamic financial literacy (X1) through public behaviour (Y) as mediating variable on public interest
to Islamic banking services (Z) is 0.080 with a probability of 0.304. The effect of spiritual intelli­
gence (X2) through public behaviour (Y) as mediating variable on public interest to Islamic banking
services (Z) is −0.070 with a probability of 0.336. The effect of public perception (X3) through public
behaviour (Y) as mediating variable on public interest to Islamic banking services (Z) is 0.250 with
a probability of 0.001.

Total effect calculations are presented in Table 12. Based on the calculation, the total effect of
Islamic financial literacy (X1) on public behaviour (Y) is 0.190, with a probability of 0.215. The total
effect of Islamic financial literacy (X1) on public interest in Islamic banking services (Z) is 0.143,
with a probability of 0.213. The total effect of spiritual intelligence (X2) on public behaviour (Y) is
−0.165, with a probability of 0.358. The total effect of spiritual intelligence (X2) on public interest in
Islamic banking services (Z) is 0.431, with a probability of 0.000. The total effect of public percep­
tion (X3) on public behaviour (Y) is 0.592, with a probability of 0.000. The total effect of public
perception (X3) on public interest in Islamic banking services (Z) is 0.227, with a probability of
0.073. The effect of public behaviour (Y) on public interest in Islamic banking services (Z) is 0.422,
with a probability of 0.000.

For H1, the effect of Islamic financial literacy (X1) on public interest in Islamic banking services (Z)
is 0.143 with a probability of 0.213. Islamic financial literacy (X1) has no significant effect on public
interest in Islamic banking services (Z). H1 is rejected. The result is the same as previous studies by

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 Table 3. Convergent validity test result
Indicator Value Indicator Value Indicator Value Indicator Value Indicator Value
https://doi.org/10.1080/23322039.2023.2175470

X1P1 0.634 X2P1 0.505 X3P1 0.556 YP1 0.649 ZP1 0.665
X1P10 0.560 X2P2 0.686 X3P2 0.580 YP2 0.620 ZP2 0.756
Yeni et al., Cogent Economics & Finance (2023), 11: 2175470

X1P2 0.721 X2P3 0.702 X3P3 0.525 YP3 0.733 ZP3 0.741
X1P3 0.724 X2P4 0.680 X3P4 0.575 YP4 0.543 ZP4 0.569
X1P4 0.807 X2P5 0.710 X3P5 0.600 YP5 0.732 ZP5 0.753
X1P5 0.823 X2P6 0.754 X3P6 0.550 YP6 0.693 ZP6 0.745
X1P6 0.639 X2P7 0.757 X3P7 0.621 YP7 0.739 ZP7 0.616
X1P7 0.694 X2P8 0.752 X3P8 0.822 YP8 0.735 ZP8 0.750
X1P8 0.703 X2P9 0.757 X3P9 0.797 YP9 0.729 ZP9 0.756
X1P9 0.698
Source: Data processed by authors

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Table 4. Discriminant validity test result

Variables X1 X2 X3 Y Z
X1 0.709
X2 0.560 0.704
X3 0.703 0.592 0.633
Y 0.517 0.292 0.628 0.689
Z 0.545 0.646 0.584 0.587 0.709
Source: Data processed by authors

Table 5. Reliability test and composite reliability test result

Variables Cronbach’s Alpha rho_A Composite Reliability
X1 0.885 0.892 0.907
X2 0.87 0.872 0.898
X3 0.819 0.835 0.855
Y 0.86 0.868 0.89
Z 0.874 0.879 0.9
Source: Data processed by authors

Abdullah and Anderson (2015); Er and Mutlu (2017). However, the results of this study contradict
the research conducted by Nawi et al. (2018); Lusardi (2019). The higher people’s knowledge about
Islamic finance has no impact on using an Islamic bank. They consider Islamic banks to be
different from conventional banks, but this is not accompanied by a desire to use Islamic banking
services. Lack of motivation or belief in Islamic banking is a separate part of literacy about Islamic
banking.

For H2, the effect of spiritual intelligence (X2) on public interest in Islamic banking services (Z) is
0.501 with a probability of 0.000. Spiritual intelligence (X2) positively and significantly affects
a public interest in Islamic banking services (Z). H2 is accepted. The result is the same as previous
studies by Nugroho et al. (2017); Agarwala et al. (2019). People who have high spiritual intelligence
will have a high religiosity. They will be manifested in activities and behaviour. Those who have this
will always feel close to their god. In finance, they will choose things related to Islam compared to
conventional banking. Their motivation in choosing an Islamic bank is to stay away from
a disputed act. By choosing Islamic banking, he will feel calmer when compared to conventional
banks.

For H3, the effect of public perception (X3) on public interest in Islamic banking services (Z) is
0.227, with a probability of 0.073. The public perception (X3) has no significant effect on public
interest in Islamic banking services (Z). H3 is rejected. However, the results of this study contradict
the research conducted by Wulandari and Subagio (2015), Rahmi et al. (2020), and Musa et al.
(2020). Customers’ perceptions of Islamic banking are not strong enough to make them interested
in using Islamic banking services. Perceptions of Islamic banks are only limited to making custo­
mers give a small picture of Islamic banks. Perception is filled with prejudice and may not match
reality. Prospective customers may misunderstand the difference between interest and profit-
sharing, preventing public interest from using Islamic banking.For H4, the effect of Islamic financial
literacy (X1) through public behaviour (Y) as mediating variable on public interest to Islamic bank­
ing services (Z) is 0.080 with a probability of 0.304. Public behaviour (Y) has no evidence as
mediating variable. H4 is rejected. Directly or indirectly, Islamic financial literacy (X1) does not
significantly affect the public interest in Islamic banking services (Z). In this model, there is no
partial or full mediation relationship. The result is the same as previous studies by Abdullah and
Anderson (2015); Er and Mutlu (2017).

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 Table 6. Multicollinearity test result
Indicator VIF Indicator VIF Indicator VIF Indicator VIF Indicator VIF
https://doi.org/10.1080/23322039.2023.2175470

X1P1 2.332 X2P1 1.356 X3P1 1.408 YP1 1.565 ZP1 1.825
X1P10 1.329 X2P2 1.680 X3P2 1.368 YP2 1.470 ZP2 2.486
Yeni et al., Cogent Economics & Finance (2023), 11: 2175470

X1P2 2.956 X2P3 1.793 X3P3 1.424 YP3 1.965 ZP3 2.132
X1P3 2.080 X2P4 1.760 X3P4 2.074 YP4 1.345 ZP4 1.514
X1P4 3.124 X2P5 1.926 X3P5 2.330 YP5 1.946 ZP5 1.948
X1P5 3.525 X2P6 2.033 X3P6 1.844 YP6 1.885 ZP6 2.228
X1P6 2.120 X2P7 2.816 X3P7 1.576 YP7 2.476 ZP7 1.649
X1P7 2.722 X2P8 2.876 X3P8 2.505 YP8 1.894 ZP8 2.283
X1P8 2.223 X2P9 2.010 X3P9 2.697 YP9 2.861 ZP9 2.174
X1P9 1.948
Source: Data processed by authors

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Yeni et al., Cogent Economics & Finance (2023), 11: 2175470
https://doi.org/10.1080/23322039.2023.2175470

Table 7. The goodness of fit test result

Method Saturated Model Estimation Model
SRMR 0.091 0.091
d_ULS 13.418 13.418
d_G 5.848 5.848
Chi-Square 2.214.701 2.214.701
NFI 0.424 0.424
Source: Data processed by authors

Table 8. Coefficient determination test

Model R Square Adjusted R Square
X1, X2, X3 -> Y 0.422 0.403
X1, X2, X3, Y -> Z 0.592 0.574
Source: Data processed by authors

For H5, The effect of spiritual intelligence (X2) through public behaviour (Y) as mediating variable
on public interest to Islamic banking services (Z) is −0.070 with a probability of 0.336. Public
behaviour (Y) has no evidence as mediating variable. H5 is rejected. There was only a significant
direct relationship between spiritual intelligence (X2) and public interest in Islamic banking services
(Z), while the indirect relationship was not proven. The result contradicted the result by Nugroho
et al. (2017); Agarwala et al. (2019).

For H6, the effect of public perception (X3) through public behaviour (Y) as mediating variable on
public interest to Islamic banking services (Z) is 0.250 with a probability of 0.001. In this model, there is
a complete mediation where public perception (X3) cannot influence public interest to Islamic banks
without going through the mediator variable public behaviour (Y). H6 is accepted. There is no sig­
nificant effect in the calculation of the direct effect, but in the indirect relationship, the opposite occurs.
The results of this study same as previous studies by Wulandari and Subagio (2015), Rahmi et al.
(2020), and Musa et al. (2020). Public perception directly is not strong enough to increase public
interest in using Islamic banking products. However, perceptions have a direct effect on public
behaviour as indicated by changes in attitude, control of perception and subjective norms of Islamic
banking. Eventually, an increase in public perception will increase public interest in Islamic banking
products through changes in public behaviour.

6. Conclusion
The research examines the effect of Islamic financial literacy, spiritual intelligence, public percep­
tion, and behaviour on public interest in Islamic banking services. The results show Islamic
financial literacy and public perception have no significant effect on public interest in Islamic
banking services. However, spiritual intelligence has a positive and significant effect on public
interest in Islamic banking services. Public behaviour fully mediates the relationship between
public perception and public interest in Islamic banking services.

Islamic financial literacy is not strong enough to change the choice from conventional banks to
Islamic banks. It is because financial literacy is not accompanied by the motivation and desire to
use Islamic banking services. The public perception may be wrong about interest or profit-sharing,
thus causing disinformation and concluding that there is no difference between conventional and
Islamic banks. Spiritual intelligence embodied in religiosity can make prospective customers

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 Table 9. Direct effect calculation
Standard T Statistik
https://doi.org/10.1080/23322039.2023.2175470

Original Sample (O) Sample Average (M) Deviation(STDEV) (| O/STDEV |) P Values Information
X1 -> Y 0.190 0.218 0.153 1.242 0.215 No significant
Yeni et al., Cogent Economics & Finance (2023), 11: 2175470

X1 -> Z 0.063 0.052 0.098 0.640 0.522 No significant

X2 -> Y −0.165 −0.142 0.179 0.920 0.358 No significant
X2 -> Z 0.501 0.489 0.111 4.514 0.000 Significant
X3 -> Y 0.592 0.597 0.150 3.938 0.000 Significant
X3 -> Z −0.023 −0.028 0.114 0.204 0.839 No Significant
Y -> Z 0.422 0.441 0.110 3.852 0.000 Significant
Note: Significant if prob <0.05
Source: Data processed by authors

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 Table 10. Indirect effect calculation
Original Sample Standard T Statistic
https://doi.org/10.1080/23322039.2023.2175470

Sample (O) Mean (M) Deviation (STDEV) (| O/STDEV |) P Values Information

X1 -> Y
Yeni et al., Cogent Economics & Finance (2023), 11: 2175470

X1 -> Z 0.080 0.100 0.078 1.030 0.304 No significant

X2 -> Y
X2 -> Z −0.070 −0.051 0.072 0.963 0.336 No significant
X3 -> Y
X3 -> Z 0.250 0.257 0.071 3.498 0.001 significant
Y -> Z
Note: Significant if prob <0.05
Source: Data processed by authors

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 Table 11. Total Effect Calculation Results
Standard Deviation T Statistic
https://doi.org/10.1080/23322039.2023.2175470

Original Sample (O) Sample Mean (M) (STDEV) (| O/STDEV |) P Values Information
X1 -> Y 0.190 0.218 0.153 1.242 0.215 No significant
Yeni et al., Cogent Economics & Finance (2023), 11: 2175470

X1 -> Z 0.143 0.153 0.115 1.247 0.213 No significant

X2 -> Y −0.165 −0.142 0.179 0.920 0.358 No significant
X2 -> Z 0.431 0.438 0.076 5.692 0.000 Significant
X3 -> Y 0.592 0.597 0.150 3.938 0.000 Significant
X3 -> Z 0.227 0.229 0.126 1.796 0.073 No significant
Y -> Z 0.422 0.441 0.110 3.852 0.000 Significant
Note: Significant if prob <0.05
Source: Data processed by authors

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Yeni et al., Cogent Economics & Finance (2023), 11: 2175470
https://doi.org/10.1080/23322039.2023.2175470

Table 12. Summary of direct, indirect, and total effect on dependent variable
Relationship Direct Effect Indirect Effect Total Effect
X1➝Y 0.190 0.190
financial literacy➝ public
behaviour
X1➝Z 0.063 0.080 0.143
financial literacy➝public
interest
X2➝Y −0.165 −0.165
Spiritual intelligence➝
public behaviour
X2➝Z 0.501 −0.070 0.431*
Spiritual intelligence➝
public interest
X3➝Y 0.592 0.592*
Public perception ➝
public behaviour
X3➝Z −0.023 0.250 0.227
Public perception ➝
public interest
Y➝Z 0.422 0.250 0.422*
public behaviour ➝ public
interest
*Significant at α 0.05
Source: Data processed by authors

choose Islamic banks to avoid bank interest. Public behaviour fully mediates the relationship
between public perception and public interest in Islamic banking services because public percep­
tion is not strong enough to change the choice of prospective customers. Public perception will be
able to change the choice of prospective customers if public perception can improve public
behaviour first.

Acknowledgements Emerging Economies and Islamic Research, 3(2),

All authors would like to thank Universitas Putra Indonesia 79–94. https://doi.org/10.24191/jeeir.v3i2.9061
YPTK Padang and Yayasan Perguruan Tinggi Komputer for Agarwala, R., Mishra, P., & Singh, R. (2019). Religiosity and
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of Management, Spirituality & Religion, 16(1), 32–54.
Funding https://doi.org/10.1080/14766086.2018.1495098
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(2020). Determinants of the Islamic financial literacy.
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Fitri Yeni1 ac.2020.7.024
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Sitti Rizki Mulyani1 Hossain, M. S. (2019). Shariah governance framework
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intelligence, public perception and behaviour on public A synopsis approach. Kuwait Chapter of Arabian
interest in Islamic banking services, Fitri Yeni, Sitti Rizki Journal of Business and Management Review, 33
Mulyani & Susriyanti Susriyanti, Cogent Economics & (5471), 1–8. https://doi.org/10.12816/0040336
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