Mobile banking adoption in Islamic banks

Abstract

Purpose This paper aims to examine mobile banking adoption in Islamic banks by integrating technology adoption model (TAM) and Religiosity-Behavioural Intention Model. Design/methodology/approach This study uses a sample of 300 mobile banking customers of Islamic banks from West Java Province, Indonesia. Partial least square was applied to assess the association between perceived usefulness, perceived ease-of-use, religiosity, satisfaction, and adoption. Findings The results of this study disclosed that the integration of TAM and Religiosity-Intention model provides a more complete explanation of Islamic bank consumers’ adoption of mobile banking. Besides perceived usefulness and perceived ease-of-use, the results of this study emphasise the importance of religiosity in mobile banking adoption. Practical implications This study offers an opportunity for Islamic bank managers to increase the adoption of their mobile banking services. To increase the adoption of mobile banking services, Islamic banks must not only provide an application that is useful and easy to use but also consider the customer’s religiosity. All of their mobile banking marketing strategies should focus on providing high-quality mobile service while ensuring the bank’s operations are compliant with the Islamic law. Originality/value This study is the first attempt to integrate TAM and Religiosity-Intention Model to assess mobile banking adoption.

Mobile banking services quality and its impact on customer satisfaction of Indonesian Islamic banks

“…They need a more useful and faster facility, not only easy-to-use facility because modern customers are already smart with gadgets. Evidence from Indonesia, Suhartanto et al (2019) proved that perceived ease-of-use, perceived usefulness, and religiosity explain 27.4% of user satisfaction variance, which implies that perceived ease-of-use is not crucial in customer satisfaction. Similarly, Riyanto (2020) examines the impact of ease of use of Islamic mobile banking, which includes time, place, and transaction towards customer's need.…”

“…Vanessa (2015) defined perceived ease as the customer feels free of problems and worries when using technology. An ease of use of technology means that its operation and techniques are not complicated and they require minimum effort mentally and physically (Suhartanto et al, 2019). Based on the study conducted by Alkhowaiter (2020), the ease dimension is one-factor affecting customer satisfaction.…”

“…Consequently, the above phenomenon forms an intense competition among Islamic bank institutions (Suhartanto et al, 2019), and changes customers' points of view of service quality presented by banks (Son et al, 2019). Moreover, Saptasari & Aji (2020) discovered that perceived quality play a prominent role in shaping customer satisfaction towards Islamic bank in Indonesia.…”

Millennial Experience in Islamic Banking: A Comparative Study between Clients and non-Clients

“…As the largest Muslim population country in the world, Indonesia has great potential to become the development center of the Islamic finance industries (OJK, 2018), Islamic banking is one of them (Suhartanto, Dean, Ismail, & Sundari, 2019). The Islamic banking industry has a great prospect in attracting the Muslim community because it fulfills the need for banking services that follow religious guidance (Amin, Isa, & Fontaine, 2013).…”

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“…Current literature shows that the concept of behavioural intention is a commonly applied concept to measure consumers' possibility to repurchase, use or adopt Islamic banking. This concept is a relatively accurate predictor of customer retention and defection (Suhartanto et al, 2019a;Suhartanto, 2019). Islamic banks need to keep their current customers and attract more new consumers (Reza et al, 2019).…”