Uncovering Sustainability Intentions and Motivations of Islamic Banking Customers in Indonesia: A Study of Single-Dual Customers

Abstract

Despite Islamic banking's resilience and growth in Indonesia, its adoption remains low. This study explores the continuance intentions of single (Islamic-only) and dual (Islamic and conventional) banking customers, examining their motivations and challenges. A literature review was conducted, analyzing academic studies, industry reports, and financial data on Islamic and conventional banking in Indonesia. The analysis compares the continuance intentions of single and dual customers, identifying key motivational differences. The study also evaluates challenges, such as low public awareness of Islamic banking principles, and assesses strategic recommendations for improving customer retention. The findings reveal that single customers have higher continuance intentions due to intrinsic religiosity and alignment with Islamic values, whereas dual customers show lower loyalty, influenced by transactional benefits. A major barrier to adoption is the lack of customer education on Islamic banking’s operational differences from conventional banking. The study recommends enhancing public awareness, reinforcing Sharia-compliant branding, and leveraging Islamic banking’s competitive advantages. Based on result, low adoption stems from limited public understanding of Islamic banking's principles and advantages. To boost growth, Islamic banks should enhance Sharia-compliant branding, improve transparency, and promote their ethical banking model. Future empirical studies should validate these findings.