UNDERSTANDING THE DRIVERS OF CUSTOMER INTEREST IN ISLAMIC BANKS IN BALI: CHALLENGES AND STRATEGIC SOLUTIONS

Abstract

This study investigates the factors influencing customer interest in Islamic banks in Bali, focusing on Kampung Singaraja, a region with significant cultural and religious diversity. Employing a quantitative survey method, data were collected from 40 Muslim respondents using structured questionnaires to assess their perceptions, understanding, and preferences toward Islamic banking. The findings reveal several barriers to customer interest, including limited awareness of Islamic banking principles, insufficient access to branches, and perceived product limitations. Notably, a gap exists between basic awareness of riba -free banking and a comprehensive understanding of Islamic financial products such as mudharabah and financing solutions. The study highlights the role of marketing strategies emphasizing educational campaigns, enhanced promotional materials, and improved accessibility to attract potential customers. The theoretical implications lie in enriching the literature on Islamic banking by identifying specific customer behaviors and preferences within Bali's unique social and cultural context. Practically, this research provides actionable insights for Islamic banks to develop targeted marketing strategies and foster greater financial inclusion. Novel in its focus, the study offers a perspective on Islamic banking within a culturally diverse setting, presenting fresh insights into bridging the gap between potential and realized customer interest.