Customer switching behavior among Indonesian Muslims: Evidence from the merger of Indonesia’s State-owned Islamic banks

Abstract This research examined the factors that affect customer satisfaction and switching behavior in the post-merger of the state-owned Islamic banks in Indonesia. Data were collected by distributing an online questionnaire to a total of 210 Muslim customers. Furthermore, the collected data were analyzed using SEM-PLS. The findings indicate that product quality can enhance customer satisfaction, and service quality can mitigate customer switching behavior. Interestingly, the Shariah compliance also has a significant effect on customer satisfaction and switching behavior by Indonesian Muslim. This suggested that, in Indonesia, where the majority of the population is Muslim, businesses that prioritize Shariah compliance are more likely to retain customers. Implication of this research provides empirical evidence to Islamic banks regarding the significance of reputation. Based on the findings, bank management tends to consider to integrate the product quality, service quality, and Shariah compliance into the banking business model. It is essential to consistently apply Sharia compliance to enhance customer satisfaction and reduce switching behavior. The Originality of this research is the first in Indonesia to examine customers’ switching behavior in the context of the merger of the State-Owned Islamic Banks. The findings can serve as an evaluation tool for the government and Islamic bank management to strengthen the country’s economy.


Introduction
Numerous industries have merged throughout the worldwide economic recession brought on by the global pandemic, which poses a threat to the global economy.Furthermore, in the banking industry, for example, the number of merger and acquisition cases tend to increase over several decades (Srivastava & Sharma, 2013).This trend is witnessed all over the world in America, Europe, and Asia, where it is seen as a strategy to create a strong, healthy, and large banking architecture that can withstand economic challenges (Novickytė & Pedroja, 2015).In Indonesia, where Muslims make up the majority of the population, there is a push for the growth and innovation of Islamic finance.To that end, on 27 January 2021, the State-Owned Islamic banks merged, as evidenced by letter number SR-3/PB.1/2021.It is believed that the bank management chose this merger as a strategy to improve financial stability and promote the growth of Islamic finance in the country.The government's efforts to merge the top three Islamic Commercial Banks including BRI Syariah, Bank Syariah Mandiri (BSM), and BNI Syariah have attracted attention and debates among observers, practitioners, religious figures, as well as the public.This is considered to have a positive effect on strengthening the standing of Islamic banking in relation to the domestic industry and Sharia finance (Novickytė & Pedroja, 2015).Therefore, it is expected to make operations more efficient and expand market reach (Das & Kumbhakar, 2022).Research believes that the merger only consolidates assets and provides little value while reducing the number of Islamic banks (Leledakis & Pyrgiotakis, 2022;Uchino & Uesugi, 2022).Although there is still a debate about the merger, the government through the Minister of State-Owned Corporation merged the three banks in early February 2021 under a new brand of Bank Syariah Indonesia (BSI).
As of 2022, the market share of national Islamic banking only reached 7.03% with an increase of 0.44% from the previous year.The assets of this sector increased from IDR676.73 trillion to IDR680.09 trillion in May 2022.These figures come from the entire Islamic banking industry consisting of 12 commercial banks, 21 business units, and rural banks (www.ojk.go.id 2022).Despite the increase in market share and assets, the growth of this sector in Indonesia is still considered low.Following the merger, the Islamic bank aims to achieve a market share of 20% by 2023.This target indicates that the Muslim population in this country is still largely untapped, and Islamic banking remains an untapped potential for the industry.
The merger of BRI Syariah, BSM, and BNI Syariah into Bank Syariah Indonesia (BSI) has implications for the customer relationship.Therefore, BSI needs to pay attention to customer relationship issues and how to maintain and maximize them.The transition period may lead to various behavioral effects among customers, as observed in financial institutions in the UK and Spain (Alvarez-González & Otero-Neira, 2020;Biswas et al., 2022;Homburg & Bucerius, 2005).n this situation, customers will face the halo effect.The halo effect is a general evaluation based on the first impression displayed (Pardo et al., 2022;Tri & Anh, 2020).Customers who perceive the merger to bring about positive changes (customer satisfaction) are likelier to become loyal to the Islamic bank (Christofi et al., 2017).On the other hand, customers who perceive no improvement in performance are more likely to consider switching to alternatives.The behavior of customers leaving the bank is known as switching behavior (Farah, 2017a).
Customer turnover serves as a significant issue that needs to be addressed in the financial services sector, as customers are vital assets for the industry.However, switching behavior poses a risk to the profitability of Islamic banks and opens up a potential market for competitors (Lymperopoulos et al., 2013)).The merger of the Indonesian Islamic banks is a strategic move to increase the capitalization of the financial market (Liang et al., 2013).Thus, to prevent customers from switching to competitors after the merger, this industry should give customer service priority.Therefore, in the highly competitive era of technology and social media, negative word-of-mouth can spread quickly, making it essential for an Islamic bank to ensure customer satisfaction while also preventing switching behavior (Gray et al., 2017).
Previous research on post-merger customer behavior could be more extensive.However, the merger situation involving three banks into one with differentiated products, services, and technologies requires time to align with customer expectations.This study differs from previous research by examining two dependent variables and investigating the effects of the merger transition period on customer behavior (Alvarez-González & Otero-Neira, 2020; Biswas et al., 2022;Homburg & Bucerius, 2005).Additionally, there are inconsistencies in the findings of prior studies.While service quality has been found to enhance customer satisfaction Iqbal et al. (2018); Saqib et al. (2016); customers tend to prefer the service quality of conventional banks over Shariah-compliant banks (Moosa & Kashiramka, 2022;Ullah & Lee, 2012).However, one of the merger's objectives is to enhance competition.Furthermore, previous research still lacks investigation into the effects of Shariah compliance (Khanna & Sharma, 2017;Nikhashemi et al., 2017) and its impact on switching behavior.Conversely, Shariah compliance has been studied concerning customer satisfaction, as shown by Ahmed et al. (2022); Baber (2019bBaber ( , 2019a)); Bian et al. (2019); Elmontaser and Alhabshi (2016); Firdaus (2021); Jan and Shafiq (2021); Salleh et al. (2019); and Sulaiman et al. (2020).This study aims to address the research gap by investigating how Shariah compliance can be a determinant of increased customer satisfaction and reduced switching behavior.
Therefore, this research examined the factors that affect customer satisfaction and switching behavior in the post-merger of the state-owned Islamic banks in Indonesia.Data were collected by distributing questionnaires to 210 Muslim customers, and data analysis was conducted using Structural Equation Model-Partial Least Square (SEM-PLS).The results showed that both product quality and Shariah compliance significantly affect customer satisfaction, whereas service quality and technological sophistication failed to have a positive effect.Meanwhile, service quality and sharia compliance significantly affect customer switching behavior in Indonesian Islamic banks, whereas product quality, technology sophistication, and customer satisfaction failed to have a positive effect.
In so doing, this research provides empirical evidence on the reputation of Islamic banks and offers factual information about the standing of Islamic banks in the Indonesian context.Thus, it is expected that the empirical evidence on customer satisfaction and switching behavior can help Islamic banking institutions decide which factors are more important in maintaining customer loyalty and preventing the customer from switching to other financial service providers.Product quality and Sharia compliance can serve as benchmarks for customer satisfaction.Attention also needs to be given to service quality and sharia compliance in managing switching behavior at Islamic banks.This research is the first in Indonesia to address customers' switching behavior while analyzing customer satisfaction in the context of a Merger of State-Owned Islamic Banks.It will certainly draw the attention of the government and Islamic bank management in strengthening the Islamic economic ecosystem to become a world-class center for economics and finance.

Switching behavior
In the era of open banking, switching behavior has become increasingly prevalent (Szopiński, 2021).Exploring the phenomenon of switching behavior in Islamic banking can help identify the reasons why customers switch to other Islamic or conventional banks.Therefore, Islamic banks need to develop a framework that can manage this behavior since switching behavior can affect their profitability and stability (Ben Lahouel et al., 2022, 2022;Zhao et al., 2023).In so doing, the bank management needs to be proactive in managing customer switching behavior (Baruna et al., 2023;Makudza, 2021;Szopiński, 2021;Taoana et al., 2022;Zhao et al., 2023).

Customer satisfaction
National and international banking competition makes customer satisfaction the epicenter of all activities for Islamic banks (Mir et al., 2023).Customer Satisfaction is a reflection of the bank's performance in meeting the customer's expectations, which builds their trust and loyalty (Alharthi et al., 2022;Biswas et al., 2023;Jawaid et al., 2023;Muhammad & Bin Ngah, 2023;Senthil, 2022;Uppal, 2022).Satisfaction will generate trust for customers, because they are treated properly by the company (Alhawamdeh et al., 2022).The customer loyalty is derived from customer satisfaction (Alqasa & Afaneh, 2022;Biswas et al., 2023;Damberg et al., 2022).In private sector banks, research has been done on the factors that influence customer satisfaction.According to the study, a bank's standing and innovation can boost customer satisfaction.Other research has also examined how banks can improve CS, but none have simultaneously examined CSB.However, it is important to note that higher levels of customer satisfaction can help management better manage customer switching behavior.

Product quality and customer satisfaction
High-quality products are crucial for satisfying customers as they can fulfill their expectations, particularly in the case of Islamic banking operations.Quality products will increase customer satisfaction (Belás & Gabčová, 2016;Hassani & Taati, 2020;Kolapo et al., 2021;Rod et al., 2016;Sipayung et al., 2021).The research by Gani and Oroh (2021); Muafa et al. (2020); and Srivastava and Sharma (2013) showed that product quality significantly affects customer satisfaction.Based on these findings, the first hypothesis (H1) could be formulated as follows: H1: Product quality significantly affects customer satisfaction in Islamic banks.

Service quality and customer satisfaction
Service quality is another critical factor that greatly affects customer satisfaction in Islamic banks.Service quality affects customer satisfaction Ahmed et al. (2020); Biswas et al. (2023); Chatterjee et al. (2023); Jasin and Firmansyah (2023); Kim et al. (2023); Mir et al. (2023); Ong et al. (2023); Yalcinkaya and Just (2023).After a merger, the Islamic Bank service quality typically results in higher customer satisfaction.

H2:
The Post-merger of the Islamic Bank service quality will increase customer satisfaction.

Shariah compliance dan customer satisfaction
Shariah compliance is an important immaterial factor that significantly affects customer satisfaction.Shariah compliance is an important immaterial factor that significantly affects customer satisfaction (Anouze et al., 2019(Anouze et al., , 2019;;Asnawi et al., 2020;Ghamry & Shamma, 2022;Hosen et al., 2021Hosen et al., , 2021)).Ghamry and Shamma (2022); Usman et al. (2022) have also demonstrated that Sharia compliance affects customer satisfaction.Based on these findings, the third hypothesis could be formulated as follows: H3: Shariah compliance affects customer satisfaction when it is upheld by Sharia entities.

Technological sophistication dan customer satisfaction
The presence of technology is very important for the quality of Islamic banking services in the digital era because it can simplify and speed up every transaction (Angusamy et al., 2022;Ghamry & Shamma, 2022;Ighomereho et al., 2022;Jaiwani et al., 2022;Kou et al., 2021;Tahtamouni, 2022;Wiryawan et al., 2022;Zyberi & Luzo, 2022).Lee et al. (2018) and Sindwani (2018) emphasized that technological sophistication significantly affects customer satisfaction.Based on these findings, the fourth hypothesis could be formulated as follows: H4: Technological sophistication positively affects customer satisfaction in Islamic banks.

Product quality dan customer switching behavior
Customer interest in Islamic banking is dependent on the quality of its products, which can be a determining factor in customer loyalty (Newton et al., 2018;Nikhashemi et al., 2017).Nikhashemi et al. (2017) explained that product quality significantly affects customer switching behavior.Based on these findings, the fifth hypothesis could be formulated as follows: H5: The product quality of Islamic banks can reduce customer switching behavior.

Service quality dan customer switching behavior
Service quality is a critical factor that can cause Islamic bank customers to switch.Good service quality tends to increase customer satisfaction (Ahmed et al., 2020;Biswas et al., 2023;Chatterjee et al., 2023;Jasin & Firmansyah, 2023;Kim et al., 2023;Mir et al., 2023;Ong et al., 2023;Yalcinkaya & Just, 2023), while service failures can lead to switching behavior (Zhao et al., 2022(Zhao et al., , 2023)).Thus, service quality affects customer switching behavior.Based on these findings, the sixth hypothesis could be formulated as follows: H6: Good service quality significantly affects customer switching behavior in Islamic banks.

Sharia compliance dan customer switching behavior
Since Muslims make up the majority of Indonesia's population, Islamic banking must take the religious component into consideration.The Shariah compliance is crucial for increasing customer trust and loyalty (Anouze et al., 2019(Anouze et al., , 2019;;Asnawi et al., 2020;Ghamry & Shamma, 2022;Hosen et al., 2021Hosen et al., , 2021)).The Sharia compliance significantly affects customer switching behavior.Based on these findings, the seventh hypothesis could be formulated as follows: H7: Sharia compliance significantly affects customer switching behavior of Indonesian Islamic banks.
This research employed a convenience sampling technique since the size of the population was unknown.Potential respondents were filtered based on their use of the Islamic bank after the merger to obtain accurate answers in line with the research objectives.Furthermore, they were asked to answer questions focusing on the variables such as product quality, service quality, Sharia compliance, technological sophistication, customer satisfaction, and customer switching behavior.

Measurement variable
The questionnaire consisted of various dimensions and adopted items from previous research.Each item was measured using a 10-point Likert scale, ranging from strongly disagree to strongly agree.This 10-point Likert scale was selected due to the instrument's efficiency and familiarity with respondents in Indonesia (Awang et al., 2016).Table 1 shows the items for each variable.Validity and reliability testing of the questionnaire was conducted before collecting the data (Paramita et al., 2021).

Data analysis method
Data were analyzed using the Structural Equation Model.SEM-PLS was selected to fulfill the requirements of exploratory research (Hair et al., 2011), therefore, it is more feasible to build and test a new model.This research adopted PLS-SEM as it does not require assumptions about the data distribution (Vinzi et al., 2009).Additionally, because PLS-SEM is the most effective method for the analysis, it is constrained to a small number of respondents (Wong, 2013).This research uses the SmartPLS software.SmartPLS helps researchers fulfill statistical power and data representation requirements (Ahmed et al., 2017(Ahmed et al., , 2022;;Johan et al., 2020).Additionally, the unknown population size in this study makes SmartPLS the best option (Ahmed et al., 2022;Henseler et al., 2016;Rigdon, 2016).This research aims to evaluate the structural model, making SmartPLS suitable for theory development and prediction purposes (Ahmed et al., 2022;Hulland et al., 2017;Joseph F.;Hair et al., 2017).

Respondent profile
Table 2 contains information about the respondents' profiles.Males dominate the population at 64.29%, while females account for 35.71%.More than half (n = 140, 66.67%) of the respondents are aged 36 years or older.Furthermore, 43.33% and 47.14% of the customers hold a bachelor's degree and work in academics respectively.Most of the respondents have been customers of Islamic banks for more than 4 years (n = 130, 61.90%).

Measurement model
The validity and reliability of the observed variables were evaluated using a measurement model.However, in the customer switching behavior (CSB2) variable, the outer loading value was below 0.50.Therefore, following the guidelines, this item was excluded (Joseph et al., 2016).This indicates that the CSB2 item cannot be relied upon in explaining the customer switching behavior.Meanwhile, Table 3 and Figure 2 indicate that all other outer loadings (λ) items are above 0.50 and have met the minimum factor loading criteria.This shows all latent variables can be adequately explained by their observed variables.The Cronbach's Alpha (α) values of all items ranged from 0.667 to 0.951, which are higher than the recommended thresholds of 0.60 by Joseph et al. (2016).Additionally, all CR values exceeded the recommended level of 0.70 by Hair et al. (2017).Convergent validity was measured using AVE, and the results showed that the AVE value of the latent variables was higher than 0.50.This indicates that the constructs have explained more than half of the variance of their indicators specifically (Hair et al., 2017).
The next stage is discriminant validity by comparing the square roots of each AVE construct using Fornell-Larcker.Table 4 shows that each construct has a greater value than the other.Therefore, all constructs have high discriminant validity.

Structural model
The proposed model was tested using the structural model.As presented in Table 5, four hypotheses including H1, H3, H6, and H7 were accepted, while H2, H4, H5, H8, and H9 were rejected.Specifically, the P-values for product quality and technological sophistication were above the determined significance level, indicating that they were not correlated with customer satisfaction.PQ, TS, and CS were also reported to have no significant correlation with CSB.
According to Hair et al. (2017), the variable of customer satisfaction has an R 2 value of 0.584, indicating that product quality, service quality, Sharia compliance, and technological sophistication have a moderate strength of 58.4%.The R 2 value for the CSB is 0.085, indicating that PQ, SQ, SC, TS, and CS have a weak strength of 8.5% (Hair et al., 2017).It is important to note that other factors not examined in this research may contribute to the remaining predictions.
Table 5 shows a parameter coefficient value and P-Values for each variable.The parameter coefficient value for the product quality is 0.463 and its P-value is smaller than 0.01.This indicates that the variable is significantly correlated with Customer Satisfaction, therefore H1 is accepted.
The service quality has a parameter coefficient value of 0.150 but its P-Value is greater than the set level of significance.This indicates that the variable failed to significantly affect customer satisfaction, therefore H2 is rejected.The Sharia compliance has a parameter coefficient value of 0.144 and the P-Value is smaller than 0.1.This indicates that the variable significantly affects customer satisfaction, therefore H3 is accepted.The parameter coefficient value for technological sophistication is 0.064 but its P-Value is greater than the set level of significance.This suggests that the variable failed to significantly affect customer satisfaction, and therefore H4 is rejected.
Product quality does not affect customer switching behavior because it has a parameter coefficient value of −0.023, therefore H5 is rejected.Conversely, service quality has a parameter coefficient value of −0.323 and a P-Value lower than 0.05.This indicates that it does not have a significant effect on customer switching behavior, therefore H6 is accepted.Similarly, Shariah compliance has a parameter coefficient value of 0.216 and a P-Value lower than 0.05, therefore H7 is accepted.Technological sophistication has a parameter coefficient value of −0.185, along with a P-Value greater than the established significance level.This indicates that it does not significantly affects customer switching behavior, therefore H8 is rejected.Furthermore, the P-Value for customer satisfaction is greater than the established significance level, indicating that it does not significantly affect customer switching behavior, therefore H9 is rejected.

Variable
Code Item

Discussion
After the merger, customers of the Indonesian Islamic bank placed importance on product quality and Sharia compliance for increasing their satisfaction.The analysis results showed a significant correlation between product quality and customer satisfaction, which aligns with prior research (Srivastava & Sharma, 2013) (Gani & Oroh, 2021;Muafa et al., 2020;Srivastava & Sharma, 2013).
Indonesia, with the world's largest Muslim population, has a strong culture that upholds Islamic teachings.The analysis results showed that Sharia compliance has a significant effect on customer satisfaction in an Islamic bank.This is in line with Ahmed et al. (2017), andPradeep et al. (2020).Customers view compliance indicators as a key factor in selecting a trustworthy Islamic bank (Ahmed et al., 2020(Anouze et al., 2019;Hosen et al., 2021)).As noted by (Ghamry & Shamma, 2022) Sharia compliance is a crucial determinant of customer satisfaction.It is essential to harmonize banking activities with Islamic law, which is derived from the Quran and Hadith to increase customer trust (Anouze et al., 2019;Asnawi et al., 2020;Ghamry & Shamma, 2022;Hosen et al., 2021).Furthermore, this will impact customer satisfaction in an Islamic bank (Usman et al., 2022).
Shariah compliance plays an important role in managing customer switching behavior.However, service quality can prevent customers from switching to other financial service providers.This shows it has a negative correlation with customer switching behavior.This is in line with (Liang et al., 2013;Srivastava & Sharma, 2013).Good service quality can increase customer satisfaction at an Islamic bank (Ahmed et al., 2020;Biswas et al., 2023;Chatterjee et al., 2023;Jasin & Firmansyah, 2023;Kim et al., 2023;Mir et al., 2023;Ong et al., 2023;Yalcinkaya & Just, 2023).Conversely, service failures may lead to switching behavior (Zhao et al., 2022(Zhao et al., , 2023)), and effective management of Islamic banks prioritizes the best service for customers.Interestingly, Sharia compliance is a crucial factor that has a significant correlation with customer switching behavior.The findings are in line with previous findings (Liang et al., 2013;Srivastava & Sharma, 2013).Furthermore, this variable is the backbone of the Islamic bank, and its operations need to adhere to Sharia principles (Islamic Business Law) (Fatima & Khan, 2017;Maali et al., 2006;Majeed & Zainab, 2018;Mansoor Khan et al., 2008;Pollard & Samers, 2007).Therefore, Sharia compliance is one of the important factors in preventing switching behavior.After the merger of the Islamic bank, it faces operational consistency in line with Sharia laws.The Bank Syariah Indonesia (BSI) was formed from three top state-owned corporation Islamic banks, each with diverse products and policies.Neglecting Shariah compliance can potentially lead to devout customers switching to other banks.This variable is important for Muslim customers, known for their religiosity, as it offers an alternative and differentiation from conventional systems.This research found that service quality failed to significantly affect customer satisfaction.Contrary to the previous review (Ahmed et al., 2017;Pradeep et al., 2020;Rahayu et al., 2019).This result is consistent with findings that customers prefer the service quality of conventional banks over those with Shariah-based services (Moosa & Kashiramka, 2022;Ullah & Lee, 2012).Customers choose Shariah-compliant banks regardless of the benefits they may obtain (Ahmed et al., 2022).Furthermore, in line with this research, product quality and Shariah compliance affect Customer Satisfaction.Product quality and Shariah compliance are two interconnected aspects of Islamic banks.Haniffa and Hudaib (2007) stated that Shariah compliance is one of the distinctive features of Islamic bank products, which are free from riba (interest) and adhere to Shariah principles.Customers choose Islamic banks because their business model firmly upholds Shariah compliance (Basheer et al., 2018;Mbawuni & Nimako, 2017;Usman et al., 2017).Therefore, service quality does not become a significant measure of customer satisfaction during a merger when the Islamic bank already offers products aligned with Islamic principles.
Product quality failed to significantly affect customer switching behavior, contrary to the previous review (Kaur et al., 2012).In this research, customers consider that product quality can create satisfaction after the merger.They eagerly await the post-merger product quality, which can improve the bank's outcome and customer satisfaction (Hassani & Taati, 2020;Kolapo et al., 2021;Sipayung et al., 2021).The quality of the products offered by Islamic banks after the merger will play an important role in enhancing satisfaction, and, in turn, suppressing switching behavior (Khanna & Sharma, 2017;Nikhashemi et al., 2017).Therefore, product quality may be indirectly related to switching behavior.
Technological sophistication also failed to significantly affect customer satisfaction and switching behavior.This is because Indonesian state-owned banks, on average, already have a high level of technological sophistication (Kesuma et al., 2016).In Indonesia, Islamic banks have also adopted high-level technology, with information and managerial sophistication.This technology was already in place before the merger, and BSI has implemented an even more advanced one since it is the embryo of three established conventional banks.Therefore, this variable is not problematic after the merger, contrary to previous research by Ahmed et al. (2017), Gray et al. (2017) and Pradeep et al. (2020).This statistical fact is logical since technological sophistication alone does not appear to cause customers to switch to another bank.
At the same time, customer satisfaction failed to significantly affect switching behavior.The result showed that BSI customers are satisfied with the products offered and do not exhibit switching behavior.This statistical fact is consistent with Kaur et al. (2012) and Keaveney and Parthasarathy (2001).The lack of an effect of customer satisfaction on customer switching behavior indicates that BSI customers remain loyal post-merger, refuting concerns raised by some observers and religious figures about distrust of the merger project.As of 2022, BSI has become the seventh-largest bank in Indonesia based on assets held.The BSI in this same year was awarded The Strongest Islamic Retail Bank among 130 Islamic banks worldwide based on an assessment by the Cambridge Institute of Islamic Finance (CIIF).

Conclusion
This research aimed to examine the factors that affect customer satisfaction and customer switching behavior of the Bank Syariah Indonesia (BSI) customers after the merger.The findings of the current study successfully addressed the research questions and achieved the objectives.It was found that product quality, service quality, and Sharia compliance significantly affect customer satisfaction and customer switching behavior.However, technological sophistication did not show any significant correlation between customer satisfaction and customer switching behavior.These findings provide a business model framework that is essential for customer retention.Islamic banks should put their attention on operational aspects that foster customer connection, such as providing high-quality products, services, and adhering to Sharia law.By adopting this business model, Islamic banks can strengthen customer relationships.
Theoretical contribution: The findings of this research provide a conceptual framework for understanding customer satisfaction and switching behavior.Of particular interest is the significant role played by Sharia compliance, which is highly valued by Muslim customers in Indonesia.These customers are extremely concerned about how financial services must adhere to Shariah.These findings generally demonstrated that service quality will perform as expected.
Practical implication: This study offers Islamic banks useful empirical evidence about their standing.To succeed in an increasingly competitive financial market, bank management needs to examine customer satisfaction and customer switching behavior with various variables.Product quality and Sharia compliance can serve as benchmarks for assessing customer satisfaction.Therefore, attention needs to be paid to service quality and Sharia compliance in managing customers' switching behavior.Integrating product quality and service quality with strict Sharia compliance can increase customer satisfaction as well as reduce customer switching behavior.
Furthermore, this study provides recommendations for future research as follows: Researchers in the future may consider involving various customer variables such as religiosity, trust, and psychological conditions.Loyalty variables should also be considered in the research model.Future studies may also incorporate mediating and moderating variables.Researchers should also develop measurements of variables that align with current developments.Given the competition among Shariah banks, it is essential to identify customer satisfaction, customer switching behavior, and loyalty among Muslim and non-Muslim customers.Moreover, it is important to examine across generations and countries so that the research model remains robust in all countries and conditions.

Figure
Figure 1 is conceptual framework in this research :