The Influence of Islamic Financial Literacy and Product Knowledge on The Decision to Use Islamic Banking Products on Students of Muhammadiyah Colleges in South Sulawesi, Indonesia

This research investigates the effect of Islamic financial literacy and product knowledge on the decision to use Islamic banking products among students of Muhammadiyah Universities in South Sulawesi. Islamic financial literacy refers to an individual’s understanding of the principles of Islamic finance, while product knowledge relates to their knowledge of the various Islamic banking products available. This study used a quantitative approach by distributing questionnaires to 348 sample student respondents scattered and randomly selected from several Muhammadiyah universities in South Sulawesi. The collected data were analyzed using SPSS version 25 with multiple linear regression analysis techniques to identify the influence of the two independent variables on the dependent variable. The results showed that both interpretations were accepted, with the coefficient of determination showing 86.8% variation in the decision to use Islamic banking products, explained by Islamic financial literacy and knowledge of Islamic banking products, and a constant coefficient value of 0.005. Islamic financial literacy (X1) has a regression coefficient of 0.755, and product knowledge (X2) is 0.275. X1. The propensity value is ftable). X2 is table) with the results of the data normality test (X1), product knowledge (X2), and usage decisions (Y) The analysis shows a positive relationship between Islamic financial literacy and the use of Islamic banking products and a positive influence between product knowledge and the use of Islamic banking products.