Aidha Trisanty

The shifting trend toward m-banking services has caused competition, as multiple banks compete to convince customers to adopt m-banking services, and so must deliver excellent services. As a result, banks must prioritize meeting client expectations and providing high-quality services to compete. This study aims to examine the factors influencing Muslim students’ intentions to use mobile banking (m-banking) in Islamic banks (IB), conventional banks (CB), and conventional Islamic banks in Indonesia (ICB). The study sample consisted of 315 Muslim students who use m-banking in Islamic banks, 369 Muslim students who use conventional banks, and 207 Muslim students who use conventional Islamic banks. The partial least square (PLS) method was used to evaluate the unified theory of acceptance and the use of technology (UTAUT) on Muslim students’ intention in using m-banking. Based on the value of the coefficient of determinant (R2), the UTAUT model in this study is classified as a moderate model. This study reveals that facilitating conditions (FC), habit (HA) and performance expectancy (PE) affect Muslim students’ intentions to use m-banking at Islamic and conventional banks. Meanwhile, the intentions of Muslim students who use m-banking in conventional Islamic banks is influenced by effort expectancy (EE), FC, HA and PE. Surprisingly, social influence (SI) has no effect on Muslim students’ intentions to use mobile banking at Islamic, conventional, and Islamic conventional banks.

Type of the article: Research Article

Abstract
Indonesia, with its position as the world’s largest Muslim-majority country, still shows a striking paradox: conventional banks remain dominant, while the market share of Sharia banks is stuck at 7.83% by the end of 2023. To address this issue, this study examines the role of compliance, Islamic financial literacy (IFL), skepticism, attitude, and religiosity in shaping Muslim consumers’ intention to adopt Sharia banking. The target population was Muslim individuals aged 17 years and above who had not yet opened an account in a Sharia bank, as they represent potential adopters. Data were gathered through an online survey conducted from July to August 2023, involving 210 respondents, with the majority being female (60%), aged 17-25 years (41%), and already employed (70%). Using Partial Least Squares Structural Equation Modeling (SmartPLS 3.0), the findings reveal that perceived Sharia compliance directly increases intention (β = 0.114; p < 0.01) and reduces skepticism (β = –0.556; p < 0.001). IFL does not directly influence intention (β = 0.053; p = 0.134), but it lowers skepticism (β = –0.225; p < 0.01). Skepticism erodes positive attitudes (β = –0.412; p < 0.001), while attitude emerges as the strongest predictor of intention (β = 0.795; p < 0.001). Religiosity further strengthens the link between IFL and intention (β = 0.089; p < 0.01). These findings highlight that authentic Sharia compliance and positive consumer attitudes play a more decisive role than IFL, with religiosity serving as a key factor in shaping decisions to adopt Sharia banking.