Islamic Financial Literacy in The Digital Era: A Phenomenological Exploration of Generation Z in Indonesia
DOI:
https://doi.org/10.62952/shacral.v1i2.63Keywords:
Islamic financial literacy, Generation Z, Islamic economics, Digital finance, PhenomenologyAbstract
The rapid expansion of Islamic finance in Indonesia has heightened the importance of Islamic financial literacy, particularly among Generation Z as the country’s largest demographic cohort and future economic actors. Despite growing access to Islamic financial products and digital financial services, evidence suggests that Islamic financial literacy levels remain relatively low, raising concerns about the sustainability and inclusiveness of Islamic financial development. This study aims to explore Islamic financial literacy among Generation Z in Indonesia through a qualitative descriptive phenomenological approach based exclusively on secondary data.
Drawing on academic literature, official statistical reports, regulatory documents, and institutional publications, this study seeks to understand how Islamic financial literacy is conceptualized, constructed, and experienced within contemporary socio-economic and digital contexts. Rather than measuring literacy quantitatively, the research focuses on identifying shared meanings, interpretive patterns, and structural conditions that shape Generation Z’s engagement with Islamic financial knowledge and practices. The phenomenological analysis highlights how Islamic financial literacy is commonly understood as a combination of financial knowledge, religious awareness, and ethical orientation, yet often manifests in fragmented and instrumental forms.
The findings reveal that digitalization plays a pivotal role in mediating Islamic financial literacy among Generation Z. Social media, fintech platforms, and digital influencers function as primary sources of information, offering both opportunities for wider outreach and risks of superficial understanding. Furthermore, institutional trust in regulatory bodies and Sharia authorities emerges as a key mechanism through which Generation Z navigates complex Islamic financial products, sometimes substituting critical understanding with reliance on certification and branding.
This study contributes to the Islamic economics and finance literature by extending discussions of Islamic financial literacy beyond quantitative indices toward an interpretive, context-sensitive understanding. Practically, the findings underscore the need for integrated literacy strategies that combine ethical reflection, digital engagement, and inclusive education. Strengthening Islamic financial literacy among Generation Z is essential not only for individual financial well-being but also for advancing the broader objectives of Islamic economics, including social justice, financial inclusion, and sustainable development.
Downloads
References
Antara, P. M., Musa, R., & Hassan, F. (2016). Bridging Islamic financial literacy and halal literacy: The way forward in halal ecosystem. Procedia Economics and Finance, 37, 196–202. https://doi.org/10.1016/S2212-5671(16)30113-7
Arner, D. W., Barberis, J., & Buckley, R. P. (2020). The evolution of fintech: A new post-crisis paradigm. Georgetown Journal of International Law, 47(4), 1271–1319.
Asutay, M. (2012). Conceptualising and locating the social failure of Islamic finance: Aspirations of Islamic moral economy vs the realities of Islamic finance. Asian and African Area Studies, 11(2), 93–113.
Atkinson, A., & Messy, F. (2012). Measuring financial literacy: Results of the OECD/INFE pilot study. OECD Working Papers on Finance, Insurance and Private Pensions, No. 15. OECD Publishing.
Badan Pusat Statistik. (2022). Statistik penduduk Indonesia. Jakarta: BPS.
Badan Pusat Statistik. (2023). Profil Generasi Z Indonesia. Jakarta: BPS.
Bowen, G. A. (2009). Document analysis as a qualitative research method. Qualitative Research Journal, 9(2), 27–40. https://doi.org/10.3316/QRJ0902027
Chapra, M. U. (2000). The future of economics: An Islamic perspective. Leicester: Islamic Foundation.
Chapra, M. U. (2008). The Islamic vision of development in the light of maqasid al-shariah. Jeddah: Islamic Research and Training Institute (IRTI), Islamic Development Bank.
Creswell, J. W., & Poth, C. N. (2018). Qualitative inquiry and research design: Choosing among five approaches (4th ed.). Thousand Oaks, CA: Sage.
Dusuki, A. W., & Abdullah, N. I. (2007). Maqasid al-shari‘ah, maslahah, and corporate social responsibility. American Journal of Islamic Social Sciences, 24(1), 25–45.
El-Gamal, M. A. (2006). Islamic finance: Law, economics, and practice. Cambridge: Cambridge University Press.
Farooq, M., & Alahkam, A. (2022). Islamic financial literacy and financial behavior: Evidence from young Muslim consumers. Journal of Islamic Accounting and Business Research, 13(5), 780–798. https://doi.org/10.1108/JIABR-06-2021-0189
Finlay, L. (2011). Phenomenology for therapists: Researching the lived world. Oxford: Wiley-Blackwell.
Francis, T., & Hoefel, F. (2018). ‘True Gen’: Generation Z and its implications for companies. McKinsey & Company.
Giorgi, A. (2009). The descriptive phenomenological method in psychology. Pittsburgh, PA: Duquesne University Press.
Hassan, M. K., Huda, M., & Rashid, M. (2021). Islamic finance, ethics, and financial inclusion. Journal of Islamic Accounting and Business Research, 12(4), 577–601. https://doi.org/10.1108/JIABR-05-2019-0095
Huston, S. J. (2010). Measuring financial literacy. Journal of Consumer Affairs, 44(2), 296–316. https://doi.org/10.1111/j.1745-6606.2010.01170.x
Kamla, R., & Rammal, H. G. (2013). Social reporting by Islamic banks: Does social justice matter? Accounting, Auditing & Accountability Journal, 26(6), 911–945. https://doi.org/10.1108/AAAJ-03-2013-1268
Lincoln, Y. S., & Guba, E. G. (1985). Naturalistic inquiry. Beverly Hills, CA: Sage.
Lusardi, A., & Mitchell, O. S. (2014). The economic importance of financial literacy. Journal of Economic Literature, 52(1), 5–44. https://doi.org/10.1257/jel.52.1.5
Lusardi, A., Mitchell, O. S., & Oggero, N. (2020). The changing face of debt and financial fragility at older ages. American Economic Review, 110(2), 407–412.
Moustakas, C. (1994). Phenomenological research methods. Thousand Oaks, CA: Sage.
Nugroho, L., & Hidayah, N. (2022). Digital Islamic financial literacy among young Muslims in Indonesia. Journal of Islamic Monetary Economics and Finance, 8(2), 223–244.
OECD. (2018). OECD/INFE toolkit for measuring financial literacy and financial inclusion. Paris: OECD Publishing.
OECD. (2023). Financial literacy and inclusion in the digital age. Paris: OECD Publishing.
Otoritas Jasa Keuangan. (2019). Survei nasional literasi dan inklusi keuangan Indonesia. Jakarta: OJK.
Otoritas Jasa Keuangan. (2022). Survei nasional literasi dan inklusi keuangan Indonesia. Jakarta: OJK.
Patton, M. Q. (2015). Qualitative research and evaluation methods (4th ed.). Thousand Oaks, CA: Sage.
Potrich, A. C. G., Vieira, K. M., & Kirch, G. (2018). How well do women do when it comes to financial literacy? Journal of Behavioral and Experimental Finance, 17, 28–41.
Rahman, M. M., Isa, C. R., & Masud, M. M. (2021). Financial literacy, behavior, and vulnerability among young adults. International Journal of Consumer Studies, 45(5), 1–14.
Rahman, M. S., Yusoff, R., & Mohamed, Z. (2023). Financial literacy and digital financial behavior among Generation Z. Sustainability, 15(4), 3127. https://doi.org/10.3390/su15043127
Schutz, A. (1967). The phenomenology of the social world. Evanston, IL: Northwestern University Press.
Seemiller, C., & Grace, M. (2019). Generation Z: A century in the making. New York: Routledge.
Setiawan, B., Effendi, N., Santoso, T., & Dewi, M. K. (2020). Islamic financial literacy and its determinants. Journal of Islamic Monetary Economics and Finance, 6(3), 681–708.
Siddiqi, M. N. (2004). Riba, bank interest and the rationale of its prohibition. Jeddah: Islamic Research and Training Institute.
Thakor, A. V. (2020). Fintech and banking: What do we know? Journal of Financial Intermediation, 41, 100833. https://doi.org/10.1016/j.jfi.2019.100833
United Nations. (2020). World population prospects. New York: United Nations.
World Bank. (2020). Enhancing financial consumer protection and literacy. Washington, DC: World Bank Group.
World Bank. (2023). Financial consumer protection and financial literacy: Global practices. Washington, DC: World Bank Group.
Yusoff, R., Rahman, M. S., & Mohamed, Z. (2023). Social media, fintech, and financial literacy among youth. Journal of Financial Services Marketing, 28(2), 189–205.
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2025 Annisatul Ainiyah
This work is licensed under a Creative Commons Attribution 4.0 International License.
