ABSTRACT
This study investigates the factors influencing customers’ intentions to use full-fledged Islamic banks in Ethio-pia. To achieve this aim, the study adopted a sequential explanatory mixed-methods design. Quantitative data were collected through a Likert-scale questionnaire adminis-tered to 393 bank customers and analyzed using the least squares method in SPSS (version 25). To complement this, 20 semi-structured interviews were conducted with purposively selected customers to capture deeper insights. The results show that awareness, relative advantage, and trust significantly and positively determine customers’ intention to use Islamic banks. Conversely, social influence does not exert a significant effect. Additional barriers to continuous usage include limited Sharia compliance clarity, insufficient product transparency, inadequate consumer education, geographic constraints, and the lack of digital services. To enhance the adoption of Islamic banking in Ethiopia, banks should prioritize public awareness campaigns and collaborate with religious and community organizations to bridge the knowledge gap on Islamic banking principles. Expanding accessibility through both physical branches and digital banking platforms will address accessibility barriers, especially for customers in rural areas. Additionally, fostering trust through transparency, ethical practices, and clear communication about Sharia compliance will encourage long-term customer engagement and loyalty.
