Abstract:
This study examines the factors influencing the adoption of Interest-Free Banking (IFB) services, focusing on key variables such as Shariah compliance, awareness, advertising, perceived usefulness, and accessibility. Using a descriptive analysis approach, data was collected from 360 respondents through structured questionnaires. The findings reveal that 72% of respondents strongly believe in the Shariah compliance of IFB services, making it the primary driver of trust. However, 65% of respondents expressed the need for better communication regarding compliance transparency to build further trust. Awareness levels of IFB services were generally high, with 70% of respondents indicating familiarity with the products, but gaps in practical knowledge and customer engagement were noted, as 62% suggested more structured communication efforts. Advertising was seen as effective, with 68% agreeing that marketing campaigns reached the target audience, though 58% felt the clarity of messaging could be enhanced. Perceived usefulness was a significant factor influencing adoption, with 80% of respondents agreeing that IFB services meet their financial needs better than conventional banking options. However, 55% of respondents indicated challenges in accessing IFB services, particularly online. Based on these findings, the study concludes that while IFB services are generally well-received, improving transparency in Shariah compliance, enhancing awareness programs, refining advertising strategies, and addressing accessibility challenges could further promote adoption. Recommendations include improving customer communication and digital access, and refining promotional strategies for wider outreach. Future research should focus on the long-term impacts of customer engagement and explore comparative studies between different institutions offering IFB services
