Examining the impact of religiosity and environmental concern on switching behavior of Islamic digital-only bank users

In light of the fast expansion of digital banking, it is of the utmost importance to know the causes driving the acceptance of Islamic digital-only banks, particularly in Indonesia, which has a considerable Muslim population. This study examines the influence of religiosity and environmental concern on switching behavior towards Islamic digital-only banks in Indonesia. This study conducts an exploratory examination of how religiosity and environmental concerns influence switching behavior towards Islamic digital-only banks. Data from a survey involving 99 respondents in Indonesia were examined utilizing structural equation modeling with partial least squares (SEM-PLS). The study’s findings show that environmental concern significantly influences switching behavior to Islamic digital-only banks, with a path coefficient of 0.259 (p < 0.01). Religiosity also positively affects switching behavior, though with a weaker effect (path coefficient 0.175, p < 0.05). Environmental concern emerged as a stronger predictor of switching intentions compared to religiosity. The model explains 13.6% of the variance in switching behavior (R² = 0.136). These findings reveal that environmental considerations and religiosity play a role in shaping switching intentions towards Islamic digital-only banks, with environmental factors having a more pronounced effect. To promote adoption, Islamic digital-only banks should emphasize their environmental benefits and sustainability initiatives in addition to Sharia compliance.