Does Sharia Banking Mattered? Learning from Business Students’ Perception in Indonesia

Along with the development of Islamic banks in Indonesia, public understanding of Islamic banking is needed, especially among students. So far, Islamic banking in the academic community is only understood by those who study Islamic banking. As for the academic community, most of them know more about conventional banking, while knowledge about Islamic banking has not been disseminated optimally. Using interview techniques with several FEB students at the University of Lampung, this qualitative study is expected to provide a broader perspective on Islamic banking from the point of view of business students. Islamic banking is generally seen as a financial institution that operates based on Islamic principles, uses a profit sharing system, and has a positive image among non-Muslim customers. The advantages of Islamic banks are seen from their adherence to Islamic principles, including avoidance of usury. Meanwhile, weaknesses include limited access, limited understanding among the public, and the perception that Islamic banks may charge higher fees. This study contributed on the body of knowledge, especially related to the development of Islamic banking in Indonesia.