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Original Research

THE INFLUENCE OF PROMOTION ON PEOPLE'S INTEREST IN SAVING AT ISLAMIC BANKS

TAUFAN KURNIAWAN 1, MUSLIMIN H. KARA 2, AMBO ASSE 3, and ABDUL WAHAB 4.

Vol 18, No 06 ( 2023 )   |  DOI: 10.17605/OSF.IO/WF4K6   |   Author Affiliation: Postgraduate School, Islamic Economics Doctoral Program, UIN Alauddin, Makassar, Indonesia 1; Faculty of Islamic Economics and Business, UIN Alauddin, Makassar, Indonesia 2,3,4.   |   Licensing: CC 4.0   |   Pg no: 1442-1452   |   Published on: 27-06-2023

Abstract

The Indonesian Sharia banking system does not only work based on traditional principles but can also accommodate sharia principles as well. Traditional banks operate their systems on an interest rate system, whereas Islamic banks operate their systems on the basis of Sharia. Efforts to establish this system are based on the Islamic prohibition against interest and usury as well as investment in companies that are considered illegitimate and guaranteed by the traditional banking system. Growth in Islamic banking in Indonesia is still very low. This shows that people's interest in saving in Islamic banking is still relatively low. This situation is also directly proportional to what happened in Makassar City. The purpose of this study was to determine the effect of promotion on people's interest in saving in Islamic banking in Makassar City. This research uses quantitative methods. The location of this research is at two Islamic banks in Makassar City, namely Bank Syariah Indonesia and Bank Muamalat. The total number of respondents was 200, and the sampling technique used in this study was purposive sampling. The data analysis technique used is SEM analysis. The results of this study indicate that promotion has a positive influence on people's interest in saving in Islamic banking in Makassar City.


Keywords

Promotion, Saving Interest, Sharia Banking system.