Factors influencing customers' decisions in choosing Islamic banking: a study on financial behavior in Iran

The main focus of behavioral finance studies compliant with Shariah principles is focused on analyzing the behavior of investors and customers when faced with financial decisions, engaging the stock market, and using other products and technologies compliant with Shariah.The purpose of this research is to examine the compliance of Iran's banking system with Islamic Sharia, as well as to investigate the factors affecting the behavior of consumers and the role of demographic factors in determining the behavior of individuals towards adopting the financial system aligned with Shariah.According to the goals and questions in this research, a variancebased structural equation modeling (SEM) approach has been used.The statistical population includes 389 bank customers in Tehran.The results of the research show that variables such as non-compliance with Sharia, awareness, organizational perception, and collectivism significantly influence improving the attitude and thus indirectly fostering a positive decision to adopt Islamic banking.Also, factors such as bank interest rates, gender, type and price of services, and educational level significantly impact customers' investment in banking.In contrast, age and job variables are found to be statistically insignificant and ineffective in this context.To ensure the success of Shariah-compliant banks in fulfilling their intended role, it is necessary to provide a framework that encourages active participation at both micro and macro levels.In this regard, the importance of cultural development in Islamic banking training, strengthening Sharia supervision, amending regulations, clarifying banking activities, and ranking banks based on Islamic principles can be emphasized to ensure that the banking system genuinely adheres to Islamic principles.