ISSN: 2222-6990
Open access
Islamic banks in Indonesia are experiencing rapid growth and demonstrating promising trust. This development can be seen from the standpoint of the national Islamic banking market. Riau Province is one of Sumatra's provinces where the majority of the inhabitants are Muslims. The objective of this study was to discover how knowledge and service quality affect people's preferences for Islamic banks in Riau Province. The sampling technique used was proportionate stratified random sampling, while the data collection technique used was a questionnaire. To analyze the data, the descriptive quantitative method was employed. In analyzing quantitative data, Partial Least Squares–Structural Equation Modeling (PLS-SEM) was used with a total sample of 384 people. The findings of this study show that the significant value in the first hypothesis test the significant value in the first hypothesis test (H1) is 0.020< 0.05 or less than 5%, implying that the positive path coefficient value suggests that Personality has a significant positive effect on preference. Based on the results of the tests, it is determined that the first hypothesis is accepted. Meanwhile, the Second Hypothesis Test (H2) has a significant value of 0.040 < 0.05 or less than 5%, indicating that the path coefficient value is positive and that Service Quality has a significant positive effect on Preference. The third hypothesis test (H3) is 0.035 < 0.05 or below 5%, it can be concluded that a positive original sample value indicates that religiosity has a significant strong influence in improving personality which can increase public preference for Islamic banks Based on the results of these tests, it can be concluded that the third hypothesis is accepted. And the fourth has a significant value of 0.039 < 0.05 or less than 5%, it can be concluded that a positive original sample value indicates that religiosity has a significant strong influence in improving service quality which can increase public preference for Islamic banks. Based on the findings of the test, the second hypothesis is accepted.
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