Knowledge and Awareness of Islamic Financial in Europe and America Countries

This study aims to determine the correlation between knowledge and awareness with industrial development, state religious status and state location. The data is sourced from secondary references of IFG-IFDI publication for the 2019 period on 42 countries in the European and American Continent. Data is processed through correlation analysis. The results show that Islamic financial knowledge correlates with the level of scientific awareness. Islamic financial knowledge and awareness of Islamic finance are positively correlated with the development of 4 (four) segments of Islamic finance, namely: Islamic banking, takaful, other Islamic finance, and sukuk; and does not correlate with the Islamic funds. The countries with a Muslim majority population will be more active in developing activities related to the Islamic financial industry. There other side, there is no significant correlation between knowledge and awareness of Islamic finance with the continet location of the country. The research findings recommend an inclusive awareness movement so that it unites the academic and the public aspects in Islamic financial campaigns.


INTRODUCTION
The Islamic finance industry has developed not only in Muslim countries but also in countries where the majority of the population is non-Muslim. Islamic finance practices, including in business matters, are not bound by beliefs.
The Islamic finance industry is classified into five segments, namely: Islamic banking, takaful, other Islamic financial institutions, Islamic bonds, and Islamic funds. IFSB (2019) shows that the assets of the global financial industry 42.0 percent are concentrated in the GCC region. The GCC region almost dominates all types of Islamic financial industry except for outstanding bonds (sukuk).
Islamic banking is developing compared to other financial industries rapidly.
The lowest share of segment Islamic financial industry is takaful.

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The benefits of these services should be continually disseminated to the knowledge of non-Muslim communities about the suitability of Islamic banking with their financial investment needs. Several studies have shown that knowledge can drive the development of the Islamic financial industry. This is not only relevant in Muslim-majority countries but also non-Muslims (Selamat and Kadir, 2012). Hidayat & Al-Bawardi's research (2012) shows that the majority of non-Muslim respondents are convinced of the social benefits that can be derived from the principle of interest-free Islamic banking. Non-Muslim preference for using Islamic banks is knowledge (Hariyana & Arsyianti, 2019). Su'un et al. (2018) findings show that perceived knowledge, perceived benefits, perception of innovation, perception of religious promotion, customer attitude, and readiness to comply with sharia have a significant effect on the selection of Islamic banks in Muslims, Christians and Africa Traditional Religion (ATR).
The form of institutions that can be used as a driving force for the dissemination of Islamic financial knowledge is educational and research institutions. The development of knowledge sources according to IFG-IFDI (2019) in encouraging the development of the Islamic finance industry is indicated by the number of training courses and degree programs available in each country as well as the amount of research produced by each country relating to Islamic economics and finance. Knowledge is different from awareness. Islamic finance knowledge will increase awareness of the benefits of Islamic finance.

LITERATURE REVIEW
The practice of the Islamic finance industry is different from conventional.
Islamic finance industry free for usury, interest, speculation (maysir), and uncertainty (gharar) transactions. Usury in sharia as Qs. Al Baqarah 278-279 i.e., any additions to finances above the principal assets. While gharar practices occur when both parties do not know about the time, quality, and quantity of a transaction made together, and in the financial sector, for example, an insurance contract.
The maysir practice is a practice that contains speculative elements which in the conventional financial industry are applied to futures and swap transactions, where money has been functioned as a commodity. The absence of usury, gharar and maysir practices will have implications for the safety of the real sector because money is available only for a transaction and precautionary activities. The usury (interest) system and commodities functions of money cause a separate market to emerge with money as a commodity and interest as prices traded on the monetary market (capital markets, bond markets and derivatives markets) so that the monetary sector develops separated to the real sector. As a result, rapid development in the monetary sector has got off money and added value to the real sector so that the monetary sector has narrowed the real sector, led to inflation and hampered economic growth (Ascarya, 2007).

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In order to provide the maximum benefit as rahmatan lil alamin, the knowledge of Islamic finance needs to be constantly disseminated. Islam places the first verse down is a reading order (iqra), which indicates the importance of learning. Studying knowledge is even placed as an obligation for a Muslim. Knowledge will lead to understanding, which will ultimately encourage awareness.
Some views show the importance of knowledge in decision making. The classical theory of decision making assumes that decision-makers know all the information and the possibilities that can occur and know the differences in detail between the choices available; so he can make decisions rationally.
The essence of the theory is the importance of information or knowledge in decision making. Mudica and Rusticini put forward the definition of knowledge in the form of awareness: you are aware of α if you know α or you know that you do not know α (Devanur & Fortnow, 2008). Some studies show the difference between knowledge and awareness (Latif, 2019;Golnaz et al., 2010).
The study of Golnaz et al. (2010) show that knowledge will drive awareness, where those who have higher knowledge (education) seem more likely to realize the superiority of halal principles. However, the Latif (2019) found that although almost all respondents had basic knowledge about interest and excessive uncertainty forbidden in financial transactions, they did not have an awareness of Islamic banking services and products.
Awareness of Islamic financial institutions is still low (Lateh, Ismail, and Ariffin, 2009). Even though the public has understood and is aware of the existence of Islamic financial institutions, their use is still low because Muslim customers consider efficiency, lower bank costs, availability of automatic teller machines and extensive branch networks as important factors when having to choose a bank, rather than religious motivation (Saini, Bick & Abdulla, 2011). Islamic banking products are considered more complex compared to conventional banking products (Cheteni, 2014).
Budiono (2006) argues that Islamic bank customers are no different from conventional bank customers, who expect security and productivity from the funds saved and want a healthy financial environment, which allows

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Knowledge and Awareness of Islamic them to do business right according to religion without fear of facing financial crises and fraudulent practices. Thus, even though the customer knows about the social benefits of Islamic banking, they still consider their need for financial services. This consideration is also for non-Muslim customers who choose an Islamic financial institution not because of religiosity. Khattak and Rehman (2010) found that the main factor in choosing an Islamic bank was not because of religion, but because of other factors such as profitability and returns on the investments of the customers.

RESEARCH METHOD
This study uses secondary data obtained directly through IFG-IFDI On the other hand, to find out the relationship between knowledge and awareness of the development of Islamic finance in European and American countries, the Islamic financial segments studied consist of Islamic banking (IB), takaful, other Islamic financial industries such as investment companies, 13,1 microfinance institutions (Others), Islamic bonds (sukuk), and Islamic funds (funds). Correlation estimates are also made between the knowledge and awareness of the Islamic financial industry with the state's religious status (Re) and the status of the continent's location (Be). State religious status is a religion that is embraced by the majority of the population in that country is Islam (given a score = 1) or other (given a score = 0). There are 3 (three) countries with the majority Muslim population of the estimated, namely: Albania, Bosnia, and Turkey. (2019)    Meanwhile, although other countries do not discuss Islamic finance in the scientific realm, it remains a concern through the publication of news about Islamic finance. The country which is very active in publishing Islamic    correlate with all indicators of knowledge and awareness used in this study.

Educational indicators by IFG-IFDI
The correlation of knowledge and awareness of the Islamic financial industry with the state's religious status as presented in Table 3 shows that

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there is a significant positive relationship between education, research activities, seminars, and Islamic finance conferences with the religious status of a country. In contrast, the publication of news related to Islamic finance has no significant correlation with the state's religious status. In this study, the state's religious status is divided into 2 (two), namely: Muslim and non-Muslim majority countries. Majority countries are Muslim, namely: Albania, Bosnia, and Turkey. Furthermore, Table 3 shows that there is no significant correlation between knowledge and awareness with the location of the country whether it is located in Europe or the Americas.

DISCUSSION
Research findings indicate that the existence of Islamic finance education institutions including research has a significant relationship with the rapid activities of Islamic finance seminars and conferences. This indicates that academic and scientific knowledge correlates with the level of scientific  (2017), and Selvanathan, et al. (2018) show that religiosity has an influence on the development of Islamic banking. On the other hand, in a predominantly Muslim country, there has been a better ecosystem in supporting research, education, seminar, and conference activities. One such ecosystem is regulation. Regulations that are prepared and disseminated optimally and implemented with best practice will support the development of the Islamic financial industry (Boediono, 2006).

CONCLUSION
The awareness of the Islamic financial industry which is realized through scientific discussions at seminar and conference forums is closely related to the existence of Islamic finance education and research institutions in