“Determinants of consumer adoption of Islamic mobile banking services in Indonesia”

Islamic banking must concentrate on customer service and loyalty to be competitive because the financial sector delivers almost identical goods and services. Mobile banking is one of the most recent advances in the financial sector and can be advantageous to bank customers and banking institutions. This study aims to explore the elements that affect Islamic bank customers’ propensity to adopt Islamic mobile banking services. Internet connection quality, bank reputation, and awareness are included as new factors to the Technology Acceptance Model (TAM) theoretical framework used in this study to evaluate the relevant issue. The online survey was administered through a questionnaire, yielding 265 responses obtained from Islamic Mobile Banking users in Indonesia. The PLS-SEM method was used to analyze the data. Results indicated that perceived utility, internet connection quality, consumer awareness, and bank reputation had a substantial beneficial effect on customer inclinations to utilize Islamic vehicle banking services. However, perceived usability does not have a significant favorable effect. Understanding these characteristics would enable participants in the Islamic finance industry to design and plan relevant strategies to promote financial services to present and prospective users.


INTRODUCTION
The expansion of mobile platform systems in the banking sector is responsible for the rise of mobile banking services, which enable users to access financial services using mobile devices (Suhartanto et al., 2020).In recent years, mobile banking has undergone phenomenal global expansion (Shankar & Rishi, 2020).The emergence of mobile banking in recent years is one of the most promising inventions, demonstrating its use for banks and users (Zhou et al., 2021).Mobile banking serves banks by fostering greater efficiency and enhancing service quality, and it benefits clients via time optimization, real-time information, quick connectivity, convenience, and high interactivity (Malaquias & Hwang, 2016).
Little research has been undertaken on Islamic vehicle banking services, particularly in Indonesia, also due to the fact that numerous researchers have examined the elements that impact the adoption of mobile banking.As many hurdles to technology adoption, such as cost, access, and service quality, have been greatly lowered, Islamic banks should establish an in-depth comprehension of all the aspects influencing the process of m-banking adoption.Individual perspectives of Islamic mobile banking must be re-examined in a fresh framework in light of the changing lifestyles of contemporary consumers.Although many Islamic banks have provided mobile banking services to this point, research into the variables affecting the adoption of Islamic mobile banking services is still lacking.By identifying the characteristics of Islamic mobile banking services in Indonesia, this study addresses a gap in the literature.
Indonesia has the world's largest Muslim population (Febriandika et al., 2020); thus, its Islamic banking business has tremendous potential.However, Islamic banks continue to hold 6.59 percent of the market share.The prevalence of mobile banking is rising rapidly (Malaquias & Hwang, 2019;Owusu Kwateng et al., 2019).In 2018, the overall number of Indonesian Islamic banking customers on a national scale was approximately 14 million (Suhartanto et al., 2020).Since mobile banking is a strategy for achieving a competitive advantage on the one hand and attracting new consumers on the other, it is vital to determine the elements that support the use of Islamic mobile banking (Raza et al., 2019).

LITERATURE REVIEW AND HYPOTHESES
The Islamic economy is growing swiftly in Indonesia, which is undergoing many changes in its economic advancement policies (Febriandika et al., 2023c).The global economy has changed from a production-based economy to a knowledge-based economy due to the information and communication technology revolution.Events that occur in one country can affect economic conditions in other countries (Febriandika et al., 2023a).Almost people perform transactions or acquire services, and many people prefer to be connected wherever they are and want to do it as quickly as possible (Mohd Thas Thaker et al., 2019).Global markets require relations between one country and another, which can mutually influence the economy (Febriandika et al., 2023b).In an effort to increase its competitiveness, the financial sector is likewise focusing more on client loyalty ratings.Since financial institutions offer comparable banking products and services, several efforts have been undertaken to determine the preferences of users among various services (Lee & Chung, 2009).Perceived usefulness (PU) and perceived ease of use (PEOU) play a mediating role in determining individual attitudes toward the desire to use innovation, according to the TAM theory of user adoption of innovations and new technologies involving information systems (IS).However, PEOU can also directly affect PU as an independent variable (Siyal et al., 2019).It is essential to highlight that this study uses the TAM-based findings as the basis for building a theoretical model.TAM is merged with internet quality, service awareness, and a bank's reputation to investigate consumer interest in Islamic banks utilizing mobile banking.How strongly a person believes that using the system would increase their performance is correlated with perceived usefulness (Davis, 1989).Jamshidi and Hussin (2018) further assert that perceived utility reveals how efficiently the technology fits adopters' needs.Malaquias and Hwang (2019) emphasized further that perceived utility is a term used to describe the benefits offered by technology.
Perceived usefulness in mobile banking services refers to how users think mobile banking can be incorporated into their daily life (Sun et al., 2012).The larger a user's perception of mobile banking's utility, the greater their intent to utilize mobile banking services.The technology is unlikely to be used, however, if mobile banking is deemed to be of low importance (Suhartanto et al., 2020).According to Mehrad and Mohammadi (2017), the perception of usability can enhance performance.
If consumers discover ease in the system, they will find it easy to use, and this view will foster a favorable attitude towards them.In other words, if potential users perceive that technology is difficult to use, they will be less inclined to accept it, even if it is reasonably priced ( Reputation indicates to the public how a business's products, services, work, strategy, and future prospects are compared to those of its competitors (Mustika et al., 2019).In addition, reputation is characterized as an asset that encompasses other characteristics, such as product and service quality, the ability to innovate, financial stability, the capacity to recruit and retain talent, and the quality of the organization's management (Saleh et al., 2017).Reputation is regarded as a crucial aspect of a company's commercial continuity, financial performance, and innovation in service delivery (Hamidah & Tsani, 2020).Reputation is also tied to organizational identity, performance, and others' reactions to their conduct ( Based on previous studies, this study uses perceived usefulness, perceived ease of use, quality of internet connection, awareness of service, and a bank's reputation as independent variables on the intention to use Islamic mobile banking variable.Each of these variables is predicted to have a positive effect on the dependent variable (intention to use Islamic mobile banking).
The following hypotheses are offered:

METHODS
The population of this study is the population of Indonesians who have used Islamic Mobile Banking, and the sample was selected using stratified random sampling.In this study, participants must be at least 17  This study originally employed the theoretical framework proposed by David (1989).It includes perceived usefulness (PU) and perceived ease of use (PEU) (PEOU).Several independent variables were included in the model after a review of prior research to examine in detail the behavioral intentions of consumers regarding the adoption of Islamic mobile banking.Deductive reasoning is employed, which means that the research begins with a theoretical framework and uses data to corroborate or contradict hypotheses.Consequently, the approach includes assessing the theory underpinning the assessed phenomena using the created Technology Acceptance Model theory.This study employs an enlarged TAM along with internet connection quality, awareness, and bank reputation to explain the elements that influence the intention to embrace Islamic mobile banking in Indonesia in greater detail.Similar to the conceptual structure presented in Figure 1.The internet ensures that all banking-related transactions will be completed 4

Awareness of Service
Regarding the mobile banking application, I was given enough information

RESULTS
In this survey, 265 respondents in total were gathered (see Table 2).most of the respondents were female, with as many as 153 respondents (57.7%) and male as many as 112 respondents (42.3%).Based on regional characteristics, respondents from Sumatra Island were more dominant, with 186 respondents (70.1%), followed by Java with 64 respondents (24.6%),Sulawesi with seven respondents (2.6%), Kalimantan with five respondents (1.9%), Bali and Nusa Southeast Asia by two respondents (0.6%), followed by Papua as many as one respondent (0.2%).When a reliable and accurate evaluation of the outer model has been acquired, the significance of the inner path structure model is evaluated.The structural model demonstrates the relationships between the latent constructs in this study (Hair et al., 2014).This study used the structural model path coefficients and a bootstrap analysis to determine the statistical significance of the route coefficients (Table 4).
The findings of the initial hypotheses developed for the investigation are displayed in Table 3.The processed data found that the perceived easy-to-use (H2) variable has a positive and insignificant effect on a person's intention to use sharia mobile banking applications.Furthermore, the results also show that perceived usefulness (H1), awareness of service (H3), Quality of Internet (H4), and a bank's reputation (H5) were found to have a significant positive effect on intentions to use Islamic mobile banking.

DISCUSSION
In this research model, there are five hypotheses being explored.Based on the final data, there are four hypotheses: Perceived usefulness (H1), Awareness of service (H3), Quality of Internet (H4), and Bank's reputation (H5) have a significant effect, although Perceived ease of use (H2) has no significant effect.
A key variable predicting user adoption of Islamic mobile banking was perceived utility.Several earlier studies also indicate that perceived utility is crucial and essential for consumers using mobile banking services (Hanafizadeh et

CONCLUSION
This study aims to estimate the potential elements that influence the intention to use Islamic mobile banking in Indonesia.Based on the result of this study, Perceived usefulness (H1), Awareness of service (H3), Quality of Internet (H4), and Bank's reputation (H5) have a significant effect, although perceived ease of use (H2) has no significant effect on the intention to use Islamic mobile banking in Indonesia.
The collected results indicate that the TAM theory is the perceived benefit that is important for adopting Islamic mobile banking services.
Zakiah & Al-Aidaros, 2017).Warsame and Ireri (2018) believe that reputation is an important business asset and has a big impact on Islamic banks because they rely on their reputation to compete with regular banks.Previous research conducted by Ahmad et al. (2011), Dusuki and Abdullah (2007), and Ismail et al. (2014) determined that a bank's reputation is a crucial component in the use of Islamic banking services.The behavior of mobile banking users has been studied in the past using information technology adoption theories such as the Technology Acceptance Model (TAM), the Innovation Diffusion Theory (IDT), and the Unified Theory of Adoption and Use of Technology (UTAUT).The research by Yousafzai et al. (2010) comparing three models (TRA, TPB, and TAM) for identifying consumer behavior in adopting online banking shows that TAM is better than other models and emphasizes how crucial it is to comprehend how people use online banking.Darmansyah et al. (2020) explored the factors that influence the intention to adopt fintech in Indonesia by comparing three models (TPB, TAM, and UTAT), revealing that TAM is the most influential factor in fintech adoption.Suhartanto et al. (2020) evaluated intentions to utilize Islamic mobile banking using TAM and religiosity.Additionally, they discovered that TAM integration increases consumer intentions to utilize Islamic mobile banking and highlights the importance of religion in justification for the uptake of mobile banking.

:
Perceived usefulness positively influences the intention to use Islamic mobile banking.H2: Perceived ease of use positively influences the intention to use Islamic mobile banking.H3: Quality of internet connection positively influences the intention to use Islamic mobile banking.H4: Awareness of service positively influences the intention to use Islamic mobile banking.H5: Bank's reputation positively influences the intention to use Islamic mobile banking.

Figure 1 .
Figure 1.Conceptual framework (Sandy, 2021)arallels the rise of mobile banking users in Indonesia, from 33 percent in January 2020 to 39.2 percent in January 2021(Sandy, 2021).
(Kshetri, 2018)ang, 2016)2019).Unlike desktop Internet or kiosk-based electronic banking services, mobile banking services are not limited by date, time or place.Mobile banking customers can access real-time account information and make payments for transactions whenever and wherever they are(Malaquias & Hwang, 2016).The number of mobile banking users worldwide will reach 10 million in 2017 and surpass 100 million by 2020(Kshetri, 2018).China and India have the greatest mobile banking adoption rates compared to other nations, sixty and seventy percent, respectively.Currently, mobile banking services are utilized by 38 percent of Europeans, with a moderate rate of increase.The adoption rate in South Africa is close to 58 percent, followed by Kenya (49 percent), South Korea (54 percent), and Singapore (52 percent) (Mohd Thas Thaker et al., 2019).transaction value.The documented value of transactions in Indonesia's digital economy hit 44 billion US dollars.It is anticipated that this amount will continue to rise to 124 billion US dollars by 2025.have shown that it is more effective than TRA and TPB at explaining intentions and attitudes toward information technology (Al-Somali et al., 2009).Due to three factors, TAM is a well-known model for explaining technology adoption.First, this model provides reliable results for projecting and explaining the user acceptance of various technologies across various industries.Second, TAM was developed on a solid theoretical basis (TRA and TPB).Lastly, TAM has accumulated a lot of empirical data, particularly in terms of its explanatory power.
years old and have utilized Islamic mobile banking at one of the Islamic banks to qualify.This study's online questionnaire was created using a Google form and delivered over Facebook, LINE, Telegram, and WhatsApp, among other social media sites.265peopleprovided input in response to a circulated online questionnaire.Table1shows the questionnaire consisting of 25 variables based on a four-point Likert scale (strongly disagree, disagree, agree, and strongly agree).
el's complexity, sample size determination can vary.In a straightforward model, a sample size of 100 to 150 is adequate.Studies with a minimum data size of 100 have been used in Islamic economics research by Mawardi et al. (2022) and Widiastuti et al. (2021).Complex models require more.The model's complexity requires a greater sample size (Aji et al., 2021).

Table 3 .
Measurement model indicatorsSource: Authors' calculation (2023). http://dx.doi.org/10.21511/bbs.18(4).2023.04 Nathania et al. (2021)hammadi, 2017; Mohammadi, 2015; Mohd Thas Thaker et al., 2019; Suhartanto et al., 2020).This study revealed that perceived utility was the most important predictor of customer desire to adopt Islamic mobile banking.This study found that perceived utility was the most significant indicator of customer intention to adopt Islamic mobile banking.It suggests that most Indonesian clients see mobile banking as a more valuable and effective technology that facilitates and improves their interactions with banks.Hoffmann and Birnbrich (2012) argue that financial fraud harms banks and customers.Financial institutions must detect fraudulent transactions.Moreover, according to Varela-Neira et al. (2010), fraud could weaken bank connections with consumers due to broken trust and increased unhappiness due to perceived service failures.By depending on the trust to implement sharia principles in financial operations, Islamic banks can compete with regular banks for consumer trust.Lastly, it is important to mention that the internet quality also plays a significant influence on determining customer interest in embracing Islamic mobile banking services.This result is also consistent with Al-Somali et al. (2009) andChiu et al. (2017), who state that the quality of the Internet network is one of the most important determinants of the usability of online banking services.It is necessary for Islamic financial institutions to create a solid communication infrastructure to facilitate access to Islamic banking services.Islamic banks must collaborate with the government or private telecoms firms to resolve internet access issues.Any effort to decrease prices or deliver high-quality internet will have a substantial effect on affordability and accessibility.Banks should also take steps to enhance online privacy and security, including securing client data and information, to boost consumer confidence, hence encouraging people to adopt sharia mobile banking services.This finding is in line with that of TAM specialistsDavis (1986)andNathania et al. (2021), who found that perceived utility had a more significant impact on people's willingness to adopt new technology than perceived ease of use.Mohd Thas Thaker et al. (2019) assert that Malaysian clients' utilization of Islamic vehicle banking services is unaffected by perceived usability.Moreover, according to Baabdullah et al. (2019), perceived ease of use significantly impacts consumer willingness to adopt mobile banking services.This might result from how user-friendly and simple to use most people find today's technology to be.Most consumers are open to technological advancement.Online transaction platform developers are conscious of usability by emphasizing a social platform system to consumers (Mohd Thas Thaker et al., 2019).