Islamic Banking Customers Satisfaction in the Digital Banking: Evidence from Ethiopia: A SEM Approach

This study examines the impact of digitalization on customer satisfaction in Islamic banking in Ethiopia, focusing on central and eastern regions. A sample of 400 participants was surveyed, with 361 valid responses, using a five-point Likert scale. Data analysis, including explanatory factor analysis and regression, was conducted using SPSS 25 and Amos 23. The results indicate that compliance, reliability, service quality, and human skills significantly and positively influence customer satisfaction with digital Islamic banking. The study's limitations include its focus on a single country, which may limit generalizability to other contexts. Future research could explore cross-cultural differences, longitudinal studies, and qualitative methods to gain deeper insights into customer satisfaction in Islamic banking, especially about technology and global crises like cybersecurity concerns, pandemics, and economic instability. The study suggests that Ethiopian Islamic banks can enhance trust and satisfaction by prioritizing Sharia compliance, investing in staff training, transparent communication, and reliable technology. Customers should support institutions that align with their religious values, fostering long-term relationships. This research addresses a critical gap in understanding customer satisfaction with digital banking services, particularly in global crises such as cybersecurity issues, pandemics, and economic instability. It focuses on how customers of full-fledged Islamic banks perceive and evaluate digital services, the impact of cybersecurity on trust and satisfaction, and the influence of cultural and religious values. Moreover, to the researchers' best knowledge, it is the first study in the country to examine this topic in Islamic banks.