The Impact of Service Quality, Technology Acceptance and Religiosity on The Selection of Islamic Bank and FinTech – Investigating The Stagnation of Indonesian Islamic Banking

Abstract

. Regardless Indonesia has the largest number of Muslim populations in the world, the market share of Indonesian Islamic banking ironically remains small. Furthermore, the present emergence of fintech is feared to threaten the traditional industry players, as well as Islamic banks. Employing the SERVQUAL and UTAUT2 model, this study attempts to investigate the influence of service quality and technology acceptance on the selection of Islamic banks and fintech, in respect of religiosity entrenched in Muslim society. This study is one of limited researches focusing on the stagnation of Indonesian Islamic banking market share. The results emphasize that Islamic banking stakeholders are suggested to arouse public awareness regarding sharia compliance in conducting financial transactions. One’s belief does not significantly encourage customers to embrace Islamic banking. Meanwhile, digitalization has changed customers’ paradigm to the financial service model. Therefore, Islamic banking is required to advance its technology-based products in order to overcome the challenge.