Conventional bank customers switch to Islamic banks because of attractive features and social recommendations, rather than frustration with their current institutions, according to a recent study published in August 2026. Researchers Kea Cantika Listyaningtyas and Rola Nurul Fajria from Politeknik Negeri Semarang investigated the consumer behavior driving financial transitions in Semarang City, Indonesia. Their empirical research addresses a persistent paradox in the Indonesian banking sector: despite a surge in sharia financial literacy to nearly 40 percent in 2024, actual sharia financial inclusion remains low at roughly 13 percent. By surveying 110 active bank customers, the authors mapped the underlying psychological and practical mechanics that turn consumer awareness into active switching intent. The findings offer financial executives a clear blueprint for customer acquisition, demonstrating that positive marketing and peer referrals are significantly more effective than highlighting the operational shortcomings of legacy banks.
Understanding the Banking Transition Gap
Indonesia holds one of the largest Muslim populations in the world, yet conventional financial institutions continue to dominate the market, holding over 92 percent of total banking assets. National regulatory reports show that while public understanding of sharia financial concepts has expanded rapidly in recent years, actual market share for Islamic banking has hovered below 8 percent. Closing this gap requires a detailed understanding of consumer switching behavior—the decision-making process where a customer chooses to abandon an established relationship with a primary bank to adopt an alternative provider.
To examine how individuals navigate this choice, researchers apply the Push-Pull-Mooring (PPM) framework, a theoretical model adapted from human migration studies. In a financial context, push factors represent negative experiences with an existing provider, such as poor service quality or high fees. Pull factors represent the attractive attributes of a competitor, including community standing and religious alignment. Mooring factors act as personal context variables, such as switching expenses, personal religiosity, and financial literacy, which can either enable or prevent the move.
Research Methodology
The study collected primary data from 110 conventional bank customers living in Semarang City using a targeted sampling method. Participants completed detailed surveys measuring their perceptions of service quality, social influence, switching costs, sharia knowledge, and overall switching intent.
The collected data were processed using Structural Equation Modeling Partial Least Squares (SEM-PLS) executed on SmartPLS 4 software. The researchers evaluated the validity and reliability of the measurement model before performing bootstrapping analysis to test three primary hypotheses regarding push, pull, and mooring dynamics.
Key Findings
The statistical analysis revealed clear patterns in how consumer switching intentions are formed:
- Pull Factors Dominate Choice: The positive attractions of Islamic banks had the strongest direct impact on customer switching intention, showing a path coefficient ($\beta$) of $0.501$ ($p < 0.001$). Within this variable, subjective norms—specifically recommendations from close family, friends, and social circles—emerged as the single most influential indicator.
- Mooring Factors Provide Structural Support: Mooring conditions showed a significant positive effect on switching decisions, with a path coefficient ($\beta$) of $0.297$ ($p < 0.001$). Perceived switching costs were the most influential factor, indicating that administrative complexity, time, and transfer expenses remain critical considerations for consumers evaluating a switch.
- Push Factors Show Minimal Influence: Dissatisfaction with conventional banks—measured through service flaws, costs, and perceived value—had a negligible effect on switching intention ($\beta = 0.071, p = 0.178$). Customer frustration alone was statistically insufficient to drive consumers away from conventional banks.
- Strong Predictive Value: Together, the push, pull, and mooring variables explained 58.8% of the total variance in customer switching intention ($R^2 = 0.588$).
Real-World Impact and Strategic Implications
These research findings offer actionable strategic guidance for bank managers, financial marketers, and regulatory policymakers. Because dissatisfaction with traditional banks does not automatically push consumers to switch, Islamic banks cannot rely on negative campaigning against conventional institutions. Marketing campaigns focused solely on highlighting the limitations or interest charges of traditional banking are largely ineffective at converting users.
Instead, financial institutions must invest in community-based pull marketing strategies. Developing advocate programs, utilizing trusted public figures, and leveraging word-of-mouth networks within local communities directly align with the high statistical impact of subjective norms identified in the study. Furthermore, financial institutions must actively work to minimize physical and procedural switching costs. Providing dedicated onboarding assistance, digitizing account transfers, and streamlining account setups directly address consumer sensitivity regarding switching friction.
Academic Perspective
Highlighting the practical implications of their research, authors Kea Cantika Listyaningtyas and Rola Nurul Fajria from Politeknik Negeri Semarang noted:
"In the Islamic banking context, customers move toward Islamic banks mainly because they are drawn to their positive attributes and because supportive switching conditions permit it, rather than because they are driven away by conventional banks. Financial institutions must therefore simplify account-transfer procedures and leverage community networks to successfully convert consumer awareness into actual switching behavior."
Author Profile
Kea Cantika Listyaningtyas, B.A.- Affiliation: Politeknik Negeri Semarang, Indonesia
- Field of Expertise: Banking Operations and Consumer Financial Behavior
- Affiliation: Politeknik Negeri Semarang, Indonesia
- Field of Expertise: Islamic Finance, Sharia Marketing, and Financial Consumer Psychology
Source Information
- Article Title: The Effect of Push, Pull, and Mooring Factors on Customers' Switching Intention From Conventional Banks to Islamic Banks in Semarang City
- Journal Name: International Journal of Global Sustainable Research (IJGSR)
- Publication Year: 2026
- DOI:
https://doi.org/10.59890/ijgsr.v4i8.302 - Official URL:
https://slamultitechpublisher.my.id/index.php/ijgsr/index
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