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Journal : Hasanuddin Economics and Business Review

Switching Behavior of Banks' Customers: Does It Exist? Utami, Rizky; Arif, Hermita; Habbe, Abdul Hamid; Abdullah, Faisal
Hasanuddin Economics and Business Review VOLUME 7 NUMBER 3, 2024
Publisher : Faculty of Economics and Business, Hasanuddin University

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.26487/hebr.v7i3.5260

Abstract

Ideally, Indonesia with the largest Muslim population in the world is able to optimize its potential to become the prominent global player in Islamic finance industry. Unexpectedly, Indonesia is ranked at 9th position of global Islamic banking market. Despite the strong support from both government and society, it is ironic that the market share of Islamic bank in Indonesia has just reached 7.09% in 2022, far below its conventional counterpart, in its three decades of age. Employing descriptive quantitative approach, this study examines the presence of switching behavior of society in Indonesia by addressing why the impact of switching behavior has small impact on the market share improvement in the context of Indonesia. A total of 128 respondents were filling the questionnaire based on purposive random sampling fulfilling the criteria of being customer of both Islamic and conventional bank as well as currently working. 
Switching Behavior of Banks' Customers: Does It Exist? Utami, Rizky; Arif, Hermita; Habbe, Abdul Hamid; Abdullah, Faisal
Hasanuddin Economics and Business Review VOLUME 7 NUMBER 3, 2024
Publisher : Faculty of Economics and Business, Hasanuddin University, Makassar, Indonesia

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.26487/hebr.v7i3.5260

Abstract

This study aims to understand why the influence of switching behavior has a minimal effect on the improvement of market share in the Indonesian environment. This study examines Indonesian bank customers' switching behaviour using descriptive quantitative methods. Our random purposive sampling included persons working and using conventional and Islamic bank products and services. 128 respondents completed the online survey and met data analysis criteria. After general questions about respondents' profiles, the questionnaire examined switching behaviour. The data will be analysed to determine how respondents chose their bank and why they use Islamic or conventional banks. These data suggest that customers become more religiously committed and select Islamic banking. An important finding from this investigation was that customers were not fully switching to Islamic banks. Conventional bank services are used. The payroll system, notably for public employees and private company personnel, make it intriguing. Despite their strong religious beliefs, their customer agency contract with a conventional bank. This is the "conventional system trap". Indonesia, with one of the world's largest Muslim populations, has not been able to maximize its potential as a worldwide Islamic banking leader for this reason. Islamic bank assets always lower than conventional banks.
Co-Authors A, Bakhtiar Abdul Hamid Habbe, Abdul Hamid Abrar Muslim Ade Tinofa, Nelva Aida Imtihana, Aida Amelia, Marysha Aminuyati Andri Yadi Paembonan Andrian Kaifan Anwar Deli Asmaul Husna Asyqari, Amir Deli, Anwar Deni Saputra Dharma, Dian Budi Edy Miswar Edy Miswar, Edy Evi Yufita Fandana, Lisa Fanshury, Mohammed Agiel Poetra Farokh, Ida Maziyyatul Fauziah, Tantri Hasna Firman syah, Firman Fitri, Gustina Gani, Fauzi A. Gede Arya Putra, I Dewa Ghani, Azman Abdul Ghufron Hamzah Grefyolin Simbolon, Theresia Habibi, Roni Halim Zaini, Halim Herlambang, Saifuddin Hermita Arif Hesti Meilina Hosaini, Hosaini Ida Ayu Putu Sri Widnyani Indahsari, Fitriana N. Insyafrijal Insyafrijal Irawan, M. Ferry Irham Irham Iskandar Iskandar Ismail Ismail Juwanda, Juwanda Kamisnuddin, Kamisnuddin Khoirotun Nisa, Ani Kinar sih Kurniati Kurniati Lubis, Putri Handayani M. Yogi Riyantama Isjoni M. Yunus Marwan Marwan Masud, Anis Anshari Meisari, Yola Dyfa Miftahul Jannah Miswar, Khairul Moebaraq, T Ridzky Mohamad Faqihudin Musyafa Muhammad Irham Muhammad Irham Muhammad Nasir Muhammad Riandi Muhammad Riandi, Muhammad Muhammad Ridha Adhari, Muhammad Ridha Muhammad Rusdi Muhammad Rusdi Muhammad Yanis Muhammad Yusuf Muhammad, Mediaty Muhibbuddin Muhibbuddin Munardy, Munardy Muslim*, Abrar Muzakir Nahar, Nahar Nazli Ismail Nazri bin Nordin, Ts. Saiful Nisa, Ani Khoirotun Nopita Sari Noptario Noptario, Noptario Nugraha, Gartika Pardi Pardi, Pardi Prayoga, Doni Putri, Nadya Syafira Qalbi, Harisa Bilhaqqi Rahman, Supandi Rajibussalim Rajibussalim Raupu, Mutiara Rifqi Syahputra Rinaldi Idroes Riyadhsyah, Riyadhsyah Ruhana, Ruhana Sabani, Tria Asri Nur Sahabi, Ansar Siregar, Anne Novia Duana Subiyantoro, Fitrohim Sugianto Sugianto Suhendrayatna Suhendrayatna Sukmawati, Siti Supardin Supardin, Supardin Syafrial Fachri Pane, Syafrial Fachri Syafruddin Syafruddin Syaifuddin Syaifuddin Syaifuddin, Muh. Syarif Syarif Teuku Maimun Tika, Aulia Saufayuk Tinofa, Nelva Ade Utami, Rizky Yunus, Yuhanis Yusniyanti, Erna Zariansyah, Zariansyah Zulfalina, Zulfalina