Islamic financial literacy, spiritual intelligence, public perception and behaviour on public interest in Islamic banking services

Abstract This study aimed to determine the effect of Islamic financial literacy, spiritual intelligence, public perception, and behaviour on public interest in Islamic banking services. This research is classified as quantitative research. Islamic financial literacy, spiritual intelligence, and public perception are independent variables. Public behaviour as a mediating variable. The population in this study is the entire community in Padang city who are already customers of Islamic banks. The sample is determined by the Hair method, five times the number of indicators, where the 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.


PUBLIC INTEREST STATEMENT
Padang city is one of the big cities in Indonesia with a majority Muslim population located on the island of Sumatra. The high population is not in line with the increasing number of customers in using Islamic banking products. This article presents empirical evidence of the factors that cause public interest in using Islamic banking services. This article contributes to the public to understand the difference between conventional banks and Islamic banks. For academics, this article contributes to obesrves at the relationship between related variables. For Islamic banks, this article can be a recommendation to increase the public interest in Islamic banking product through Islamic financial literacy, spiritual intelligence, public perception and behaviour.

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 conventional 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 development 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 circulating 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, 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.

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 implementation 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 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:

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 (X 1 ), spiritual intelligence (X 2 ), and public perception (X 3 ). Public behaviour (Y) as a mediating variable. The independent variable is the public interest in Islamic banking services (Z).
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.

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

Discussion
Based on the results of the calculations in Table 8, it can be seen that the effect of Islamic financial literacy (X 1 ), spiritual intelligence (X 2 ), public perception (X 3 ) 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 (X 1 ), spiritual intelligence (X 2 ), public perception (X 3 ), 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 (X 1 ) on public behaviour (Y) is 0.190, with aprobability of 0.215. Islamic financial  Source: Data processed by authors Yeni et al., Cogent Economics & Finance (2023)  Indirect effect calculations are presented in Table 10. Based on the calculation, the effect of Islamic financial literacy (X 1 ) 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 intelligence (X 2 ) 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 (X 3 ) 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 (X 1 ) on public behaviour (Y) is 0.190, with a probability of 0.215. The total effect of Islamic financial literacy (X 1 ) on public interest in Islamic banking services (Z) is 0.143, with a probability of 0.213. The total effect of spiritual intelligence (X 2 ) on public behaviour (Y) is −0.165, with a probability of 0.358. The total effect of spiritual intelligence (X 2 ) on public interest in Islamic banking services (Z) is 0.431, with a probability of 0.000. The total effect of public perception (X 3 ) on public behaviour (Y) is 0.592, with a probability of 0.000. The total effect of public perception (X 3 ) 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 H 1 , the effect of Islamic financial literacy (X 1 ) on public interest in Islamic banking services (Z) is 0.143 with a probability of 0.213. Islamic financial literacy (X 1 ) has no significant effect on public interest in Islamic banking services (Z). H 1 is rejected. The result is the same as previous studies by   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 H 2 , the effect of spiritual intelligence (X 2 ) on public interest in Islamic banking services (Z) is 0.501 with a probability of 0.000. Spiritual intelligence (X 2 ) positively and significantly affects a public interest in Islamic banking services (Z). H 2 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 H 3 , the effect of public perception (X 3 ) on public interest in Islamic banking services (Z) is 0.227, with a probability of 0.073. The public perception (X 3 ) has no significant effect on public interest in Islamic banking services (Z). H 3 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 customers 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 profitsharing, preventing public interest from using Islamic banking.For H 4 , the effect of Islamic financial literacy (X 1 ) through public behaviour (Y) as mediating variable on public interest to Islamic banking 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 (X 1 ) 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).   For H 5 , The effect of spiritual intelligence (X 2 ) 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 (X 2 ) and public interest in Islamic banking services For H6, the effect of public perception (X 3 ) 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 (X 3 ) cannot influence public interest to Islamic banks without going through the mediator variable public behaviour (Y). H6 is accepted. There is no significant 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.

Conclusion
The research examines the effect of Islamic financial literacy, spiritual intelligence, public perception, 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     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 perception 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.