Decisions about lack of interest in financing at Islamic banks (Case Study of Communities in Pemalang)

Abstract

This study aims to identify and examine the variables that contribute to the low interest rate on savings accounts in Islamic banks. This study employs a qualitative research design with participants drawn from the Pemalang region. The present investigation employs primary data gathering methods, including observation, documentation, and interviews. Furthermore, triangulation techniques were employed to guarantee the veracity of the data. Information on the variables influencing the low interest rate in Islamic banks was gathered for the study. The study discovered that a number of factors contribute to people's lack of interest in saving with Islamic banks: profits made, salaries received by conventional banks, lack of marketing strategies employed by Islamic banks, ignorance of Sharia, influence of culture and customs, convenience, closure of Islamic banks, uncertainties regarding Sharia compliance, and lack of Sharia and security. It is anticipated that this research will assist Indonesian Islamic banks in developing more effective marketing plans to draw clients to open accounts with them. They will eventually be able to grow their market share thanks to this.