DETERMINING FACTORS INFLUENCING THE INTENTION TO SWITCH FROM CONVENTIONAL BANKS TO ISLAMIC BANKS USING A MIXED-METHODS APPROACH
Abstract
This study examines the factors influencing students’ intentions to switch from conventional to Islamic banks among Islamic Banking students at UIN Sayyid Ali Rahmatullah Tulungagung. Despite the rapid growth of Islamic banking assets in Indonesia, its market share remains relatively low, highlighting the need to understand switching behavior among Generation Z. Using a sequential explanatory mixed-methods design, quantitative data were collected from 85 students through questionnaires and analyzed using multiple linear regression, while qualitative insights were obtained from interviews with 14 informants. The findings reveal that subjective norms, product knowledge, digital banking, and alternative attractiveness positively and significantly affect switching intention, with alternative attractiveness emerging as the strongest determinant. Together, these variables explain 69.7% of the variation in switching intention. Qualitative results show that switching intention develops through a sequential process in which subjective norms encourage awareness, product knowledge strengthens rational evaluation, digital banking facilitates access, and alternative attractiveness drives the final decision. The study contributes to the understanding of Islamic banking adoption among Generation Z and offers practical implications for increasing customer migration to Islamic banks.
References
Abdul, A. R., Mandiri, D. P., Astuti, W., & Arkoyah, S. (2022). Tantangan Perkembangan Perbankan Syariah Di Indonesia. Jurnal Tabarru’: Islamic Banking and Finance, 5(2), 352–365. https://doi.org/10.25299/jtb.2022.vol5(2).9505
Ajzen, I. (1991). Theory of Planned Behaviour. Organizational Behaviour and Human Decision Process.
Anh Tram, N. T. (2021). Determinants Influencing Customer’s Switching Behavior towards Banking Service Providers in Hanoi. Journal of Economics, Finance And Management Studies, 04(06), 794–800. https://doi.org/10.47191/jefms/v4-i6-14
Anjum, M. I. (2022). An Islamic critique of rival economic systems’ theories of interest. International Journal of Ethics and Systems, 38(4), 598–620. https://doi.org/10.1108/IJOES-08-2021-0155
Ayyub, S., Xuhui, W., Asif, M., & Ayyub, R. M. (2020). Determinants of intention to use Islamic banking: A comparative analysis of users and non-users of Islamic banking: evidence from Pakistan. International Journal of Islamic and Middle Eastern Finance and Management, 13(1), 147–163. https://doi.org/10.1108/IMEFM-05-2017-0135
Bananuka, J., Kaawaase, T. K., Kasera, M., & Nalukenge, I. (2019). Determinants of the intention to adopt Islamic banking in a non-Islamic developing country: The case of Uganda. ISRA International Journal of Islamic Finance, 11(2), 166–186. https://doi.org/10.1108/IJIF-04-2018-0040
Bansal, H. S. (2005). “Migrating” to New Service Providers: Toward a Unifying Framework of Consumers’ Switching Behaviors. Journal of the Academy of Marketing Science, 33(1), 96–115. https://doi.org/10.1177/0092070304267928
Bansal, H. S., Irving, P. G., & Taylor, S. F. (2004). A Three-Component Model of Customer to Service Providers. Journal of the Academy of Marketing Science, 32(3), 234–250. https://doi.org/10.1177/0092070304263332
Batmunkh, G. (2025). An investigation of the switching behavior and why customers switch banks in the retailing banking sector. Frontiers in Communication, 10(May), 1–14. https://doi.org/10.3389/fcomm.2025.1548050
Davis, F. D. (1989). Perceived Usefulness, Perceived Ease of Use, and User Acceptance of Information TechnologyNo Tit. MIS Quarterly, 13(3), 319–340. https://doi.org/https://doi.org/10.2307/249008
Engel, J.F., Blackwell, R.D. and Miniard, P. . (1995). Consumer Behavior, 8th d. Orlando: The Dryden Press.
F. Farah Maya. (2017). Application of The Theory of Planned Behavior to Customer Switching Intentions in The Context of Bank Consolidations. International Journal of Bank Marketing, 35(1).
Fitria, Cahyani Wulan, Setiawan, A. (2025). Profitability of Islamic Commercial Banks in Indonesia: Determinants and Implications. Finansha: Journal of Sharia Financial Management, 6(1), 1–18. https://doi.org/10.15575/fjsfm.v6i1.40499
Ghamry, S., & Shamma, H. M. (2022). Factors influencing customer switching behavior in Islamic banks: evidence from Kuwait. Journal of Islamic Marketing, 13(3), 688–716. https://doi.org/10.1108/JIMA-01-2020-0021
Hamid, W., Anto, L. O., & Nasrul, N. (2020). The role of consumer innovativeness in consumer desire to try the transactions with sharia banking. International Journal of Research in Business and Social Science (2147- 4478), 9(6), 44–49. https://doi.org/10.20525/ijrbs.v9i6.885
Hati, S. R. H., Gayatri, G., & Indraswari, K. D. (2021). Migration (Hijra) to Islamic bank based on push–pull–mooring theory: a services marketing mix perspective. Journal of Islamic Marketing, 12(8), 1637–1662. https://doi.org/10.1108/JIMA-07-2019-0157
Hendrianto, D., Hermawanto, T., & Simanjuntak, E. (2023). The Impact of Bank Direct Marketing on Enrollment Intention : Opening Bank Account. Journal of World Science, 2(9), 1397–1408. https://doi.org/10.58344/jws.v2i9.382
Indonesia, B. S. R. (2020). Sejarah BI. Jakarta: Bank Indonesia. https://www.bi.go.id/id/tentang-bi/sejarah-bi/default.aspx
Keaveney, S. M. (1995). Customer Switching Behavior in Service Industries: An Exploratory Study. Journal of Marketing, 59(2), 71. https://doi.org/10.2307/1252074
Keuangan, O. J. (2024a). Laporan Perkembangan Keuangan Syariah Indonesia Tahunan. Jakarta: LPKSI.
Keuangan, O. J. (2024b). Statistik Perbankan Syariah (J. OJK (ed.)).
Kotler, P., & Armstrong, G. (2018). No Principles of Marketing Global Edition 17th Edition. London: Pearson Education.
Kotler, P., & Keller, K. . (2016). Marketing Management. (Edisi ke-15). New Jersey: Pearson Pretice Hall, Inc.
Laudon, Kenneth C.; Laudon, J. P. (2020). Management Information Systems. (16th edition). New Jersey: Pearson Prentice Hall.
Moon, B. (1995). Paradigms in migration research: exploring “moorings” as a schema. Progress in Human Geography, 19(4), 504–524. https://doi.org/10.1177/030913259501900404
Musyahidah, S. (2021). The Effect of Riba Avoidance and Product Knowledge on the Decision to Become a Customer of Islamic Banks. International Journal of Multidisciplinary Research and Analysis, 04(08), 1090–1101. https://doi.org/10.47191/ijmra/v4-i8-06
Peter, J Paul dan Olson, J. C. (2014). Perilaku Konsumen dan Strategi Pemasaran. Jakarta:Salemba Empat.
Rahma, N., & Sofyani, H. (2024). The influence of islamic banking digital service quality on intention to continue using islamic banking: a case of Indonesia. Journal of Accounting and Investment, 25(1), 269–288. https://doi.org/10.18196/jai.v25i1.18841
Schiffman, L. G. & Wisenblit, J. L. (2015). Consumer Behavior Edisi 11 Global Edition. Pearson Education Limited.
Sheppard, B. H., Hartwick, J., Warshaw, P. R., & Hartwick, J. O. N. (1988). The Theory of Reasoned Past Action : Meta-Analysis of with Modifications for Recommendations and. Journal of Consumer Research, 15(3), 325–343. http://www.jstor.org/stable/2489467
Siahaan, F. S., Nawangwulan, I. M., Putra, H. S., Anantadjaya, S. P., & Irdiana, S. (2023). Analysis of The Influence of Brand Image, Digital Marketing and Product Knowledge on Customers Purchase Intention of Banking Products. MALCOM: Indonesian Journal of Machine Learning and Computer Science, 3(2), 199–204. https://doi.org/10.57152/malcom.v3i2.917
Solomon, M. R. . (2020). Consumer Behavior : Buying, Having, and Being.13th Edition. Essex :Pearson.
Sopian, Adi , Purnomo, Budi Supriatono & Purnamasari, I. (2025). Test the Reaction of the Bank Syariah Indonesia Stock Market (Events PP Muhammadiyah Decided to Withdraw Customer Funds). Finansha-Journal of Sharia Financial Management, 6(1), 50–65. https://doi.org/10.15575/fjsfm.v6i1.42873
Statistik, B. P. (2024). Agama di Indonesia. Samarinda: BPS.
Yuliafitri, I., & Lathifah, R. S. (2022). Understanding Riba, Product Knowledge, and Attitudes: Influences on Intentions to Become Sharia Bank Customers. Li Falah: Jurnal Studi Ekonomi Dan Bisnis Islam, 7(1), 102. https://doi.org/10.31332/lifalah.v7i1.5500
Downloads
Published
How to Cite
Issue
Section
Citation Check
License
Authors who publish with this journal agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).
