The purpose of this research is to determine the perceptions of practitioners, auditors, scholars, and students on Islamic banking and conventional banking in Palu City. This research is a qualitative research with a phenomenological approach. This research was conducted in Palu City. Informant in this research amounted to nine (9) people, consists of four people as practitioners, two students, two representatives of scholars, and one representative from the Financial Services Authority (OJK) Central Sulawesi. The results of the research are very clear awareness that from the aspect of business mechanism and object, namely anti usury and anti gambling, investment aspects namely halal while in conventional banking that is not anti usury and anti gambling, and investment can be halal or haram. Student information states that the emphasis of the concept of Islamic banks namely Islamic banking activities in accordance with the principles of Islamic law, which are based on the Qur'an and hadith. There is an awareness that the products produced by Islamic banks in addition to the form or name of the product, which are needed to be considered are the Islamic principles used by the product concerned in the contract (agreement), and not just the name of the product as conventional bank products. The research conclusions are the essence and characteristics of Islamic banks are different from conventional banks, and Islamic banks encourage people to transact non-usury or not contrary to Islamic teachings