A systematic literature review on the determinants of Islamic financial literacy among individuals

Mohd Faizuddin Muhammad Zuki; Muhammad Arif Fadilah Ishak; Muhammad Hafiz Hassan; Muhammad Syafiiq Aiman Md Hisham

doi:10.33102/uij.vol37no03.655

Authors

Mohd Faizuddin Muhammad Zuki IIUM Institute of Islamic Banking & Finance, International Islamic University Malaysia https://orcid.org/0000-0003-4366-2015
Muhammad Arif Fadilah Ishak Faculty of Muamalat & Islamic Finance, Universiti Islam Antarabangsa Tuanku Syed Sirajuddin
Muhammad Hafiz Hassan Faculty of Muamalat & Islamic Finance, Universiti Islam Antarabangsa Tuanku Syed Sirajuddin https://orcid.org/0009-0005-1522-0094
Muhammad Syafiiq Aiman Md Hisham Shariah Compliance Unit, Risk Management Division, Malaysia Debt Ventures Berhad

DOI:

https://doi.org/10.33102/uij.vol37no03.655

Keywords:

Islamic financial literacy, determinants, systematic literature review, individual

Abstract

Financially literate young individuals make informed decisions, built financially resilient households and engage responsibly with financial service providers. Despite its importance, Islamic financial literacy among Malaysians remains underdeveloped in Malaysia, as highlighted by Bank Negara Malaysia’s 2018 survey. Although many studies explore the determinants of Islamic financial literacy, systematic reviews on this topic remain limited, restricting comprehensive understanding and comparability. This study conducts a systematic literature review on the determinants of Islamic financial literacy, following a rigorous five-step methodology: formulating research questions, conducting systematic searches in primary databases, eligibility screening, quality assessment, and data analysis. The review identifies five main themes—psychological and personal factors, religious and cultural factors, educational factors, financial behaviour and attitudes, and financial knowledge and awareness—along with 12 sub-themes. The findings emphasize the pivotal role of financial education in enhancing Islamic financial literacy, which is essential for improving financial well-being and fostering economic resilience in Muslim communities.

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