Summary: Sharia compliance is an emerging value in Indonesia's banking industry, particularly in mobile banking, which integrates Islamic principles to cater to the country’s large Muslim population and growing awareness of interest-free financial services. Factors such as perceived usefulness, ease of use, subjective norms, and sharia compliance significantly influence the adoption of Sharia mobile banking. These services enhance productivity and convenience while adhering to Islamic principles, fostering public trust and loyalty. With a higher growth rate than conventional banking, Sharia banking presents substantial potential, urging companies to align strategies with user preferences and external influences to expand market share and drive adoption.
In the digital era, banks have provided many innovations to improve service quality, including relying on the Internet. One aspect of services that use the Internet is mobile banking. The majority of the bank's recent mobile-friendly products promote ease and convenience when conducting banking operations. Customers may now perform banking tasks, including money transfers, balance checks, and bill payments, without having to visit an ATM or bank, thanks to mobile banking (excluding cash withdrawals). Despite requiring a significant initial investment, mobile banking has become increasingly popular in recent years. Almost all banks have implemented digital applications, such as mobile banking, to keep up with these technological developments.
Customers of banks can use mobile banking to conduct financial transactions using their devices without physically visiting the bank. Clients can access mobile banking services by utilizing features that are already present in applications they download and install. Customers who make use of informational services and transactional services such as transfers, bill payments (for utilities, water, and health insurance), and a variety of other features find it to be relatively easy.
A recent trend in mobile banking is the incorporation of Islamic principles which can be called sharia. The development of Sharia banking in Indonesia has a great deal of potential due to the country's large Muslim population, its broad market, and the general public's growing…
