Millennial loyalty towards artificial intelligence-enabled mobile banking. Evidence from Indonesian Islamic banks

Purpose This study aims to examine factors driving millennial loyalty towards artificial intelligence (AI)-enabled mobile banking services in Islamic banks. Design/methodology/approach This research collected the data from 204 millennial customers of Islamic banks in Aceh, Indonesia. Partial least square (PLS) was used to evaluate the effect of service factors (the need for service and service quality), technology-based factors (attitudes towards AI, relative advantage, security and trust) and religiosity on millennial loyalty towards AI-enabled mobile banking. Findings This inquiry reveals that service quality, attitude towards AI and trust are determinants important for millennial loyalty towards AI-enabled mobile banking. Further, this research notes the significant role of religiosity on millennial loyalty towards mobile banking services. Practical implications This study suggests Islamic banks focus on developing millennial trust and attitude towards AI to increase their loyalty towards AI-enabled mobile banking services. Further, Islamic banks operation that complies with Islamic law is strongly suggested to develop millennial loyalty. Originality/value To the best of the authors' knowledge, this is the first study that tries to scrutinize loyalty towards AI-enabled mobile banking.

Automated summary

The study found that service quality, attitude towards AI, and trust are important factors influencing millennial loyalty towards AI-enabled mobile banking, while religiosity also plays a significant role in this aspect. The research suggests that Islamic banks should focus on developing millennial trust and attitude towards AI, while adhering to Islamic law.