Building Loyalty in the Age of Islamic Fintech: Marketing Lessons from Bank Syariah Indonesia

Radina Aulia () and Dian A. S. Parawansa
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Radina Aulia: Hasanuddin University
Dian A. S. Parawansa: Hasanuddin University

A chapter in Proceedings of the 10th International Conference on Accounting, Management, and Economics (10th ICAME 2025), 2026, pp 546-558 from Springer

Abstract: Abstract This study investigates the relationship between e-service quality, digital customer experience, switching costs, and customer loyalty within the context of Islamic digital banking. It examines the complex dynamics of customer loyalty in this sector, focusing on how e-service quality and digital customer experience impact customer retention. By analyzing the role of switching costs, the study aims to offer valuable insights into strategies that Islamic fintech institutions can utilize to foster and sustain customer loyalty in an increasingly competitive digital environment. This investigation is particularly pertinent given the rapid expansion of fintech and the unique considerations of Sharia-compliant financial services. The findings may provide practical implications for Bank Syariah Indonesia and other Islamic financial institutions aiming to enhance their digital offerings and strengthen customer relationships within the evolving fintech ecosystem. Utilizing a quantitative approach through Structural Equation Modeling (SEM), the research reveals that while e-service quality positively influences digital customer experience, its direct and mediated impact on customer loyalty is limited. In contrast, digital customer experience is pivotal, directly affecting loyalty and indirectly enhancing it by increasing switching costs. The findings indicate that switching costs significantly mediate the relationship between digital experience and customer loyalty, underscoring their importance in customer retention strategies. This study offers strategic insights for Islamic banks, such as BSI, to enhance customer loyalty by focusing on digital experience and reinforcing switching barriers.

Keywords: E-service quality; Digital customer experience; Switching cost; Customer loyalty (search for similar items in EconPapers)
Date: 2026
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DOI: 10.2991/978-94-6239-709-5_37

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