The Determinant Factors of the Bandung Public Preference in Using Akad of Mudaraba and Musharaka in Islamic Financial Institutions

Abstract

Products and Musharaka financing in Islamic Financial Institutions shows increasing trend. In recent years, the development of Musharaka financing is higher than mudaraba financing. This means that the people preference to use musharaka financing products has increased. This study aims to determine the dominant factors in determining financing product preferences in Islamic financial institutions in the people of Bandung. The method of analysis in this study is qualitative descriptive analysis. The sampling technique used purposive sampling, covering 30 clients that have ever been and/or are still using finance in Islamic Financial Institutions. The results shows that factors of needs, income, knowledge-sharing, and income will determine people's preferences in choosing a loan product. This is evident from the score that is in positive territory (agree and strongly agree). On the other hand, the dominant factor in choosing a loan product on the preferences of the people of Bandung is a necessity. Therefore, the government must ensure conformity of products with the financing of Islamic principles.