The Factors Influencing Switching Intention in Islamic Banking in Indonesia’s Muslim Community

Abstract Purpose - The purpose of this study is to explore the effects of satisfaction, perceived herd, perceived security, perceived price, switching cost, and social presence on customer’s switching intention from Islamic banks to conventional banks in the context of an Islamic bank hack. Design/methodology/approach - The study was conducted with 211 respondents from Muslim communities in Indonesia, specifically targeting customers of Islamic banks. The data were analysed using SmartPLS software with the SEM method. Findings - The findings indicate that perceived security and customer satisfaction play crucial roles in customers' intentions to switch from Islamic banks to conventional banks. Conversely, perceived herd, price, social presence, and switching cost have less significant impacts. Originality/Value - This study uniquely integrates the concepts of perceived herd, social presence, and satisfaction to provide a comprehensive understanding of customers' switching intention in the context of Islamic banks in Indonesia, particularly following a bank hack. It contributes to the literature by exploring the interplay between social influence and security concerns, which has been less examined in Islamic banking in Indonesia. In doing so, it offers new insights for developing customer retention strategies. Research limitations/implications - The study's limitations include a limited sample size and a focus on a specific community, which reduces generalisability of the findings. Practical implications - Islamic banks should prioritise enhancing perceived security and customer satisfaction through robust cybersecurity measures and high-quality services Social implications - The study's findings emphasise the importance of customer satisfaction and security in maintaining customer loyalty in the Islamic banking industry in Indonesia