THE IMPACT OF ISLAMIC FINANCIAL LITERACY, ISLAMIC BRANDING, AND HALAL LIFESTYLE ON GEN Z’S INTEREST IN USING ISLAMIC BANKING PRODUCTS AND SERVICES

Abstract

This research was designed to explore how Islamic Financial Literacy, Islamic Branding, and Halal Lifestyle shaped Generation Z’s interest in utilizing Islamic banking services. The participants consisted of 150 undergraduate students from the Islamic Economics program at UIN Sultan Aji Muhammad Idris Samarinda, who represented the Gen Z population. Data collection was carried out using a 40-item questionnaire based on a Likert scale, and the responses were analyzed with the help of Partial Least Squares Structural Equation Modeling (PLS-SEM). The measurement model confirmed the constructs’ reliability and validity, thereby providing a solid basis for the subsequent structural model analysis. Findings revealed that Islamic Financial Literacy exerted the strongest influence on students’ interest in Islamic banking, followed by the roles of Islamic Branding and Halal Lifestyle. These outcomes emphasized that knowledge of Sharia-compliant finance, value-driven branding, and adherence to religious lifestyle norms are critical drivers of Gen Z’s engagement with Islamic banking products and services. In addition, the study enriched the academic discourse by integrating cognitive, affective, and ethical dimensions of consumer behavior, while also offering practical guidance for financial institutions to strengthen educational initiatives, branding approaches, and lifestyle-based engagement strategies targeted at younger consumers.