Spiritual Identity and Ethical Engagement: Urban Muslim Millennials’ Experiences with Sharia-Compliant Financial Services
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Abstract
Islamic finance has emerged as a dynamic sector that blends economic functionality with spiritual and ethical principles. Among urban Muslim millennials, the adoption of sharia-compliant financial services extends beyond transactional purposes to embody moral commitment, cultural identity, and personal faith. This study explores how these individuals experience and interpret their engagement with Islamic banking, fintech platforms, and microfinance institutions. Guided by Interpretative Phenomenological Analysis (IPA), twelve participants were interviewed using a semi-structured approach to capture detailed narratives of their financial practices. The thematic analysis revealed four core dimensions: spiritual tranquility achieved through the avoidance of riba, identity affirmation via financial choices, trust dynamics with Islamic financial institutions, and moral empowerment in pursuing economic goals. These findings demonstrate that Islamic financial participation among young urban Muslims operates at the intersection of modernity and religiosity, serving as both a socio-economic strategy and a form of spiritual expression. By uncovering the lived realities behind financial behavior, this research offers fresh insight into Islamic economics, suggesting that effective engagement with this demographic requires attention to authenticity, ethical transparency, and the integration of religious values into financial innovation.
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