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This research examines financial literacy, specifically related to Islamic banking, and its impact on Islamic banking lending and penetration in Indonesia. Qualitative and exploratory methods were used with data from a literature review and content analysis and FGDs. The results showed a majority understanding of Islamic banking, but variations in product usage among Generation Z. Islamic banking literacy is considered key to economic sustainability and alleviating generation Z poverty, emphasizing the importance of socializing this literacy to increase its effectiveness.Keywords: Financial Literacy, Islamic Banking, Generation Z This research examines financial literacy, specifically related to Islamic banking, and its impact on Islamic banking lending and penetration in Indonesia. Qualitative and exploratory methods were used with data from a literature review and content analysis and FGDs. The results showed a majority understanding of Islamic banking, but variations in product usage among Generation Z. Islamic banking literacy is considered key to economic sustainability and alleviating generation Z poverty, emphasizing the importance of socializing this literacy to increase its effectiveness.
Nurkhasanah et al. (2024) studied this question.