The Financial Services Authority's Contribution to Improving Sharia Financial Literacy among Generation Z: Digital Education, Behavioral Determinants, and Institutional Synergy

Abstract

Indonesia has the largest Muslim population in the world, yet national surveys show a wide gap between general financial literacy and Sharia financial literacy, with the Sharia financial literacy index recorded at 9.14 percent in 2022 compared with a national financial literacy index of 49.68 percent. Generation Z, which grew up with digital technology and is rapidly adopting digital financial services, occupies a strategic position in closing this gap because it will dominate the productive-age population in the coming decades. This study examines the contribution of the Financial Services Authority (Otoritas Jasa Keuangan, OJK) to improving Sharia financial literacy among Generation Z, analyzes the effectiveness of digital education for this generation, and identifies the behavioral and social determinants that support literacy. Using a qualitative design based on a systematic literature review and document analysis, the study synthesizes regulations and national strategies on financial literacy, survey reports, and empirical studies on financial literacy, digital literacy, religiosity, and the financial behavior of Generation Z, interpreted through the theory of planned behavior, the technology acceptance model, and social learning theory. The results show that the OJK contributes through regulatory mandates, national literacy strategies, and educational programs delivered increasingly through digital platforms, including social media, webinars, and learning applications. Digital education is effective for Generation Z because it matches their media habits, but access to information does not automatically translate into deep understanding, particularly regarding Islamic contracts, product differentiation, and the operations of Islamic financial institutions. Religiosity, family socialization, peer and social environments, and digital literacy shape Sharia financial literacy and its translation into saving, investment, and banking decisions. The study argues that improving Sharia financial literacy requires moving from awareness campaigns toward structured, measurable, and collaborative education involving the OJK, the National Sharia Council, Islamic financial institutions, schools and universities, families, and digital content creators. The article proposes a multi-level framework for Sharia financial education tailored to the characteristics of Generation Z.