STRENGTHENING SUSTAINABLE FINANCIAL ECOSYSTEMS THROUGH ISLAMIC DIGITAL BANKING: EVIDENCE FROM INDONESIA

Abstract

Islamic digital banking is expanding alongside the wider digital transformation of financial services, yet the availability of digital services does not automatically translate into customer adoption. This study examines the determinants of Islamic digital banking adoption in Indonesia using Performance Expectancy, Effort Expectancy, Social Influence, and Trust. The study addresses which factors significantly explain customers’ adoption of Islamic digital banking and how the findings may inform a more sustainable financial ecosystem. A quantitative cross-sectional survey was conducted with 46 respondents in Indonesia using purposive sampling. Data were analyzed using descriptive statistics and multiple linear regression in SPSS. The results show that Social Influence (β = 0.423, p < 0.001) and Trust (β = 0.530, p < 0.001) have significant positive effects on Islamic digital banking adoption, whereas Performance Expectancy (β = 0.086, p = 0.408) and Effort Expectancy (β = −0.029, p = 0.803) are not significant. The regression model explains 87.1% of the variance in adoption (Adjusted R² = 0.858). The findings indicate that trust and social reinforcement are more salient predictors in this sample than perceived performance and ease of use. Wider adoption of trusted Islamic digital banking may contribute to financial inclusion, digital innovation, and financial-system resilience; however, sustainable financial ecosystem outcomes and the SDGs are not directly tested and are treated as broader implications.