Developing Islamic Financial Literacy Index: A Conceptual Paper

Developing Islamic Financial Literacy Index: A Conceptual Paper*

Taofik Hidajat** and Muliawan Hamdani **Student at Padjadjaran University (UNPAD), Bandung, Indonesia Email: [email protected] STIE Bank BPD Jateng, Semarang, Indonesia Email: [email protected] *Coresponding author

ABSTRACT Some tools to measure the level of financial literacy are already done. However, until the present there is no tool to measure the level of financial literacy on financial service products from Islamic points of view. The absence of such measuring instruments causes difficulties to measure a person's level of shariate financial literacy. The purpose of this research is to propose a concept of Islamic financial literacy measurement tools from two perspectives, experts and practitioners. Expert’s opinion is used to obtain data onto knowledge. Meanwhile practitioner’s opinion is utilized to obtain data on the ability onto use. The detailed analysis presented in this paper offers literature review and methodology to measure the Islamic financial literacy that industry and academic scope could use it as a guide to measure Islamic financial literacy.

Keywords: Islamic financial literacy, Islamic financial literacy index, shariate financial literacy, financial literacy measurement, financial literacy, financial service products

*Presented at The Global Advanced Research Conferenceon Management and Business Studies (GARCOMBS) October 14th – 15th 2015 Bali, Indonesia