Customer-to-customer (C2C) interactions in Islamic banking: a conceptual framework for service co-creation in financial services

Purpose This paper develops a conceptual framework to theorise consumer-to-consumer (C2C) interactions in Islamic banking, integrating Service-Dominant Logic and Transformative Service Research within an institutional logics perspective to highlight how peer dynamics co-create, disrupt and legitimise financial value in religiously and culturally complex service ecosystems. Design/methodology/approach This study conducts a critical review of consumer literature on service co-creation, financial decision-making and Islamic banking to develop a conceptual framework for C2C interactions in financial services. Findings This paper conceptualises C2C interactions in Islamic banking as shaped by five institutional drivers – religious norms, community ties, digital platforms, market incentives and regulatory environments, each exhibiting both protagonist (enabling) and antagonist (disruptive) tendencies. Mechanisms such as social validation, informal education and interpretive guidance influence how trust is built, Sharia compliance is assessed and financial inclusion is achieved. The framework positions Islamic banking as a contested service ecosystem where value is co-created, challenged and negotiated through peer-led dynamics. Research limitations/implications As a conceptual paper, empirical validation is needed through quantitative studies and cross-market comparative analyses. Practical implications Islamic banks should integrate peer-driven financial literacy programmes, enhance digital peer validation mechanisms and collaborate with religious scholars to improve customer engagement and trust. C2C interactions play a vital role in financial inclusion, particularly for underserved communities, migrant workers and women in conservative societies, where access to formal banking services may be limited. Leveraging these peer networks can help bridge financial literacy gaps and foster greater participation in ethical banking. Originality/value This study extends S-D Logic to peer-driven service experiences, bridges TSR with financial inclusion and redefines trust in Islamic banking, offering new insights for service marketing and digital financial ecosystems.