Exploring Millennials Saving Interest: The Role of Income, Beliefs, and Social Environment

Abstract

This study aims to analyze the influence of disposable income, riba perception, and social environment on millennials’ saving interest in Islamic banks. A quantitative approach with a survey method was employed by distributing online questionnaires to 400 respondents. The data were analyzed using SmartPLS version 4 to examine the partial effects of each variable. The results indicate that disposable income, riba perception, and social environment have a positive and significant influence on millennials’ saving interest in Islamic banks. Higher disposable income after fulfilling basic needs encourages saving participation, while awareness of the prohibition of riba strengthens the preference for sharia-compliant savings products. Furthermore, family support, peer influence, and social norms help shape saving behavior aligned with Islamic values. Based on these findings, Islamic banks are encouraged to develop more flexible and educational savings products, enhance millennials’ financial literacy, and optimize digital and value-based campaigns to promote positive perceptions and strengthen young customers’ loyalty toward the Islamic financial system.