The purpose of this paper is to investigate the relationship between Islamic branding and marketing communication with Islamic financial inclusion, with Islamic financial literacy as a mediator. This paper also provides a better understanding of how these factors interrelate and contribute to the overall objectives of Islamic finance.
This study uses cluster sampling with a purposive technique. The research sample consists of customers who have savings or deposits in Bank Syariah Indonesia, totaling 165 customers. Data analysis is conducted using structural equation modeling adopting Analysis of Moment Structures to examine the mediating effect of Islamic financial literacy on the relationship between Islamic branding and marketing communication with Islamic financial inclusion.
The research findings indicate that Islamic financial literacy partially mediates the relationship between Islamic branding and marketing communication with Islamic financial inclusion. Moreover, the study reveals that marketing communication has a direct effect on Islamic financial inclusion, while also exerting an indirect effect through Islamic financial literacy. These findings support the argument that Islamic financial literacy plays a crucial role in the implementation of marketing communication toward Islamic financial inclusion.
This study obtained exclusive data from clients of Bank Syariah Indonesia in three major cities in Indonesia, namely, Surabaya, Semarang and Yogyakarta, enabling significant potential for generalizing these findings to other Islamic financial institutions and metropolitan areas, both domestically and internationally. The data collection method primarily used a semistructured questionnaire to gather quantitative data. The study is purely cross-sectional; thus, its approach does not consider factors of clients that could be investigated through a longitudinal approach.
This study underscores the importance of Islamic financial literacy in enhancing Islamic financial inclusion through marketing communication. It highlights that marketing efforts targeting Islamic banking customers can significantly influence Islamic financial inclusion, both directly and by improving Islamic financial literacy. Therefore, Islamic financial institutions need to focus not only on building a strong Islamic brand image but also on strengthening customers’ understanding of Islamic financial principles through effective communication strategies. This would facilitate increased community participation and engagement in Shariah-compliant financial products and services.
It is essential for a large Muslim population globally, such as in Indonesia, to ascertain the effectiveness of Islamic communication and branding by Shariah-compliant banks. There should be mediating factors such as strengthening Islamic financial literacy intensively through various media to enhance Shariah financial inclusion.
