Level of Knowledge of the Sidoarjo Muslim Community on the Decision to Become a Customer of an Syariah Bank

General Background Islamic banking serves as a fundamental pillar of the Islamic economic framework, operating on principles that strictly prohibit interest-based transactions and unlawful investments. Specific Background Despite the substantial Muslim population in Indonesia, public engagement with Islamic financial institutions remains constrained by relatively low national financial literacy rates. Knowledge Gap Existing literature predominantly examines broader regional demographics, leaving empirical evaluation regarding educational personnel within Islamic school institutions limited. Aims This study evaluates the role of comprehension levels among Muslim educators in Sidoarjo regarding their operational choice to adopt Islamic banking services. Results Statistical evaluation using linear regression on 108 respondents yields a significance value of 0.000, confirming that higher understanding directly drives the selection of Islamic banking options, with higher adopting rates recorded in institutions integrating institutional banking partnerships. Novelty This work establishes empirical evidence specifically within Islamic educational institution staff, demonstrating how workplace institutional financial integration combined with literacy shapes decision-making. Implications Financial institutions must collaborate with educational organizations to raise awareness and convert general financial comprehension into active customer enrollment. Key Findings Highlights Comprehension level among Muslim educators statistically drives the selection of Islamic banking options. Institutions with integrated institutional banking services show higher participation rates among teaching staff. Financial literacy directly transforms theoretical knowledge into practical service utilization.