Perceptions of the Time Value of Money and the Economic Value of Time Among Islamic Bank Customers in Bogor Regency

Abstract

Background - Indonesia, which is known as the 2nd largest Muslim in the world, can only have a sharia
penetration rate of 4.1% in 2021, seeing this fact shows that people prefer to use conventional finance, because
many people still think that Islamic finance is not much different from conventional finance. Therefore, it is
important for customers to understand financial concepts like time value of money and economic value of time to
be able to distinguish which ones are in accordance with Islamic law and which ones are not in accordance with
Islamic law, so as to increase good perceptions of the Islamic financial system so that it will be more attractive.
Purpose - This study aims to examine the influence of the perception of understanding of the time value of money
concept and the perception of understanding of the economic value of time concept on the perception of the
Islamic financial system, with religious commitment as a mediating variable. And to compare perceptions of
understanding time value of money and economic value of time between exclusive Islamic bank customers and
dual bank customers.
methodology - This study uses a descriptive quantitative approach with SmartPLS 0.3 analysis and SPSS
difference testing. The sampling method employed is purposive sampling, and data were obtained from 100
respondents as the sample for this research.
Findings - The results of this study indicate that the perception of understanding the time value of money and
economic value of time have a positive and significant effect on the perception of Islamic financial systems.
Understanding of the economic value of time has a positive and significant effect on the perception of Islamic
financial systems. Religious Commitment is able to mediate the understanding of the time value of money and the
understanding of the economic value of time on the perception of the Islamic financial system. There is no
significant difference in understanding the time value of money and the economic value of time between
customers exclusive Islamic bank customers and dual bank customers
Originality - This study offers novelty by using religious commitment as a mediating variable, which can indirectly
influence the effect of understanding the time value of money and the economic value of time on the Islamic
financial system. The study also employs group difference testing to determine whether there is a difference in the
understanding of the time value of money and the economic value of time between Islamic bank customers who
exclusively use Islamic banks and those who also use conventional banks