Society's perspective to participation banking

Studies on the implementation of the principles of participation banking, which had a strong development momentum in the financial world, remained at the stage of thought until the 1970s. but in 1970 it was passed from the level of thought to the stage of implementation. Participation banks, which are taken part in the world of finance under the name of Islamic finance, were applied in Muslim states at first, but nowadays, they are becoming a financial institution that is increasing in importance in terms of reserve estimate in all countries of the world. Islamic finance, which is called participation banking today, is increasing its share in the world finance sector day by day. Participation banking system has become so attractive that It is observed that even conventional banks have started to found segments for interest-free finance transactions within the existing system in order to make participation banking transactions. Although many studies have been conducted on the reasons for preference of Islamic banks in the world financial sector, the number of studies on the reasons for preference of participation banks in Turkey has started to increase in recent years, but it is not at a sufficient level. The aim of this study is to reveal the relationship between the level of knowledge about participation banks and opinions about participation banks. Users in the financial system are the determining factor of this research. For this reason, simple random sampling method was preferred among bank users in accordance with the quantitative research method, and based on the sample, research data were collected from the participants on a voluntary basis with the Questionnaire technique and analyzed with the SPSS package program. As a result of the study, it was concluded that the increase in the share of participation banking and the development of its sphere of influence are related to the variety of financial products it offers, the recognition of Participation Banking and the positive image left in the eyes of customers. As the level of knowledge about participation banking increases in the society, the number of customers who prefer it also increases. KEYWORDS:Retail Customer, Participation Banking, Interest-free Banking, Islamic Banking, Turkey July 2022, 80 Page