Abstract
Financial literacy is widely recognised as a way to improve quality access to financial services.
Nonetheless, the study of Islamic financial literacy can be viewed as a novel concept, particularly in a Muslim minority country. Moreover, research that examines financial literacy and inclusion from an Islamic perspective is still limited. Considering these factors, this study aims to critically assess Islamic financial literacy and inclusion in Thailand's five southernmost provinces as well as identify the means to enhance them. After reviewing the relevant literature, a conceptual framework for Islamic financial literacy, indicators of Islamic financial inclusion, and an extended theory of planned behaviour model were developed to address the research questions. Based on mixed methods research design, a questionnaire and semi-structured interviews were employed to collect quantitative and qualitative data. Then, the obtained data were analysed using descriptive statistics, structural equation modelling, and thematic analysis.
The questionnaire and interview results indicate that most Muslims in the area were unaware of Islamic financial products and excluded from Islamic financial services. Then, the analysis of structural equation modelling demonstrates that the integration of Islamic financial literacy as the salient behavioural belief had a significant impact on the attitude to adopt Islamic finance, except for the influence of Islamic money management. The analysis also shows that the predictors of the theory of planned behaviour model were significant determinants of the intention to adopt Islamic finance, despite the fact that attitude and intention had a significant negative relationship.
In this regard, the interview data plays a crucial role in supporting the analysis by providing explanations for the influential factors. Drawing upon empirical evidence, the study has proposed proactive policy recommendations to enhance Islamic financial literacy and inclusion among the Muslim population, with the aim to promote a more inclusive and sustainable financial system to benefit the overall economy. Overall, the findings of this study make a valuable contribution to the body of knowledge in terms of contextual, theoretical, and methodological perspectives.