Banking_Model_Innovation

Islamic banking has experienced remarkable growth globally due to its ethical and Shariah-compliant principles. This study explores why customers prefer Islamic banking over conventional banking, integrating the role of technology and business model innovation in enhancing service delivery. A comparative analysis between Islamic and conventional banks reveals that while ethical foundations remain the primary driver of customer preference, technology adoption—such as artificial intelligence, mobile banking, and blockchain—has become essential for competitiveness. The paper proposes that combining ethical finance principles with advanced digital tools can create a sustainable and customer-centric banking model.