The purpose of this study is to design a comprehensive service supply chain management model for the banking industry with an Islamic banking approach, using a grounded theory methodology. In terms of objective, this research is applied, and methodologically, it is qualitative, employing the systematic grounded theory approach of Strauss and Corbin. The statistical population comprised 14 experts in Islamic banking, senior banking managers, service supply chain management specialists, and university faculty members, who were selected using theoretical, purposive, and snowball sampling methods. Data were collected through semi-structured interviews. To analyze the findings, MAXQDA 2024 software was utilized through three stages of open, axial, and selective coding. The findings led to the development of a paradigmatic model for service supply chain management in the banking industry with an Islamic banking approach, consisting of causal conditions, contextual conditions, intervening factors, the central phenomenon, strategies, and consequences. The core category of the research was identified as “optimal and integrated management of the banking industry service supply chain with an Islamic banking approach.” The main strategies of the model include: governance of Sharia principles over the life cycle of Islamic contracts, operational process management, innovation and technology integration, integrated management of operational, financial, and Sharia risks, customer relationship management, empowerment of employees and customers, and the establishment of corporate governance. The implementation of these strategies leads to the enhancement of performance, productivity, and competitiveness of the banking system, an increase in customers’ financial literacy, the reduction of operational and Sharia errors, the improvement of service quality, organizational agility, the reduction of financing costs, increased profitability, the observance of justice and financial inclusion, the enhancement of public trust and stakeholder satisfaction, the realization of Islamic banking objectives, and sustainable economic growth and development.