Satisfaction, Religiosity Commitment, and Nisbah Perception as Predictors of Customer Loyalty in Islamic Banking: Evidence from Indonesia

This study investigates the determinants of customer loyalty in Islamic banking, focusing on the roles of customer satisfaction, religiosity commitment, and perception of nisbah (return rates).Drawing on data from 212 priority customers of Bank Syariah Indonesia (BSI), the largest Islamic bank in Indonesia, the authors develop and test a conceptual model using Structural Equation Modeling (SEM) -Partial Least Squares (PLS).The findings indicate that customer satisfaction and religiosity commitment have significant positive effects on customer loyalty, with religiosity commitment partially mediating the relationship between satisfaction and loyalty.Additionally, perception of nisbah moderates the relationship between religiosity commitment and loyalty.The study contributes to the literature by highlighting the unique factors influencing loyalty in Islamic banking and offering practical implications for Islamic banks in developing specialized products and services for priority customers.However, the generalizability of the findings may be limited by the focus on a single bank and the cross-sectional nature of the data.