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Purpose This study aims to develop a valid and reliable Islamic financial literacy (IFL) scale that can capture all the segments of the Islamic financial sectors and which could be considered applicable for all jurisdictions across the globe. Design/methodology/approach To build the measure, this study followed a scale development process by collecting 698 a priori items from 81 respondents. Later, it generated an item pool through the analysis of the items with experts and gave the last form (40 items) to 287 respondents in Turkey with another IFL scale that is frequently used in the literature and a scale assessing religiosity. With explanatory factor analysis, the scale demonstrates a four-factor construct with 20 items. This construct provides good fit indexes and reliability scores. Findings Results of the correlation analysis and comparison of the fit indexes of alternative structures provided supportive evidence for discriminant and convergent validity of the scale and its sub-dimensions. As a result, an applicable scale is developed for countries where Islamic financial institutions are operating and where they are not. Originality/value One of the strengths of this study is that it represents a comprehensive scale development for the entire Islamic financial system, including banking, takaful (Islamic insurance) and fund management. In addition, the attempt to design an IFL scale applicable to any economy or individual is a pioneering attempt in the literature.

Purpose The emerging markets have been witnessing a remarkable revival of rotating savings and credit associations (ROSCAs) serving as alternative informal financing and investment platforms, also known as savings-based finance (SBF) in Turkey. The purpose of this study is to present the SBF model mathematically, analyse the performance of the SBF sector and propose a new Sharīʿah-compliant SBF model for the acquisition of durables. Design/methodology/approach The paper thoroughly reviews the concept and practice of ROSCA across the globe, mathematically models and empirically analyses the performance of Turkish SBF companies using a unique data set. Findings The study formulates a two-person SBF model and proposes a Mudarabah-Wakalah hybrid model with a new investment feature. It is found that the concept of ROSCA is being operationalized in 105 countries across the globe under different names with slight business model modifications. The research also reveals that the demand for financing of durables in Turkey significantly increased in recent years with the demand for housing is twice greater compared to vehicles. Most importantly, a strong significant inter- and intra-comovement is observed between these durables implying that the success of the sector in one segment has attracted the customers to other SBF products. It shows that the SBF institutions can effectively serve as the alternative financing houses for pooling savings and financing the durables, and they have strong potential to capture a larger financial market share in Turkey and even globally. Originality/value The study constructs mathematical models and proposes a new investment wing to an existing SBF wealth fund.

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Purpose As the global paradigm in economics shifts, Islamic economics is attracting more attention as an alternative sector. The most common and most active institutional structure of Islamic economics is in the form of Islamic finance and banking. Islamic finance and banking have been the centre of innovation in many economies in recent years. In this regard, product development is a vital element in driving the success of Islamic financial institutions (IFIs). The product development of IFIs is one of the key elements of their overall economic performance. This study aims to fill the gap in the literature concerning the product development process of IFIs in secular economies. Design/methodology/approach Verily, product development is a complex process; it is likely that introducing specific models will be useful for expanding the activities of IFIs. In this study, contemporary source materials are used to develop this conceptual research. Findings It suggests two separate methodologies for the product development process of IFIs in secular economies to overhaul two criticised product-based problems. To the best of the author’s knowledge, it is the first attempt to model the product development process for IFIs in a secular economic setup. Originality/value Recently, this study is the first attempt for modelling product development in IFIs under secular economies. Advances in the field of Shari’ah-compliant product development is important for researchers and professional.

Purpose There is a growing body of literature that recognizes the importance of Islamic financial literacy (IFL) while it is at the heart of our understanding of the overall financial system. To date, insufficient attention has been paid to Turkey, the Balkans and other potential Islamic finance hubs like Suriname. In fact, there have been no attempts to examine IFL in those regions or economies. The purpose of this paper is to test and validate the IFL scale developed by Dinc et al. (2021) in an international setting. By doing so, this study elaborates on possible antecedents and levels of IFL across countries and economic systems. Design/methodology/approach The design of the questionnaire used is based on the principles of Islamic finance and covers all the segments. The total number of collected observations is 3,579. This study uses the confirmatory factor analysis (CFA) to ascertain the factor structure and test the revised scale fit with the original form. Besides, IBM AMOS 25 Graphics is used for calculating the fit indexes for the scale. Findings The results from the CFA revealed that the scale has a good fit for its original and kept the four-dimensional structure. In addition, it also indicates that the predeveloped IFL scale is valid for different cultures, countries and individuals either having conventional or Islamic financial institutions preferences. Furthermore, results of empirical tests demonstrate that Turkey is significantly higher in Islamic financial awareness, whereas other countries' group is higher on all other subdimensions of the scale. On the other hand, female respondents indicate significantly higher levels of Islamic financial awareness, and male respondents show significantly higher levels of Islamic financial knowledge. Finally, the most prominent finding to emerge from the analysis is that the principles of Islamic finance are well accepted, except for some liberal views on the concept of “interest” (riba). Research limitations/implications Because of the diverse demography of the collected sample observations, this revised scale has a homogeneous set of implications. This IFL scale can accurately measure the level of IFL attained by an individual, group, society or nation, as well as suggest necessary actions based on its four-dimensional structure. Originality/value This study tests the IFL scale by considering two key elements: increased sample size and vast geographical coverage. To ensure that the developed scale is universal, this study took into account more than 3,000 observations from 28 different countries. These amendments ensure the uniqueness of this paper and its originality.

ÖzBu çalışmanın amacı, [2010][2011][2012][2013][2014]