Abstrak
Purpose - This study aims to examine the impact of Islamic consumer behavior on the potential demand for Islamic Banking by using the Islamic religiosity approach. By classifying the potential demand into the high, middle, and low categories, this study attempts to examine whether the level of potential demand is influenced by aspects of social, cultural, psychological, and personal considerations. Design/methodology/approach - This research was a quantitative study based on a survey on 18 regions in West Sumatra Indonesia in 2019. Data was collected from 1844 respondents and analyzed by using multinomial logistic regression. Findings - The findings reveal that the increasing factor of social and personal causes the tendency of the community to be in the high potential group as an Islamic bank customer by 1,661 times and 1,592 times compared to in the low potential group. Psychological aspects also increase the probability of the community being in the medium demand potential as an Islamic bank customer. Practical implications - This study aims to assist managers of Islamic banks to formulate strategies for developing Islamic banks based on Islamic consumer behavior because the facts showed that understanding of Islamic law and religious education in the family, Islamic lifestyle, and also religious beliefs affected the potential demand for Islamic Banks. Originality/value – This study measures the impact of Islamic religiosity on the probability of people being in the high, medium, or low potential group in adopting Islamic bank services, and these findings are important in the development of Islamic banking in Muslim-majority countries.