DETERMINANT OF CONSUMER DECISION ON ISLAMIC BANKING

Dian Novita Sari (Faculty of Economics, Universtias Islam Negeri Maulana Malik Ibrahim Malang Gajayana Street, No. 50, Malang, East Java, 65144, Indonesia)
Siswanto Siswanto (Faculty of Economics, Universtias Islam Negeri Maulana Malik Ibrahim Malang Gajayana Street, No. 50, Malang, East Java, 65144, Indonesia)
Ikhsan Maksum (Faculty of Economics, Universtias Islam Negeri Maulana Malik Ibrahim Malang Gajayana Street, No. 50, Malang, East Java, 65144, Indonesia)
Fadlil Abdani (Faculty of Economics, Universtias Islam Negeri Maulana Malik Ibrahim Malang Gajayana Street, No. 50, Malang, East Java, 65144, Indonesia)
Ryan Basith Fasih Khan (Faculty of Economics, Universtias Islam Negeri Maulana Malik Ibrahim Malang Gajayana Street, No. 50, Malang, East Java, 65144, Indonesia)
Nora Ria Retnasih (Faculty of Economics, Universtias Islam Negeri Maulana Malik Ibrahim Malang Gajayana Street, No. 50, Malang, East Java, 65144, Indonesia)
Setiani Setiani (Faculty of Economics, Universtias Islam Negeri Maulana Malik Ibrahim Malang Gajayana Street, No. 50, Malang, East Java, 65144, Indonesia)
Masyhuri Masyhuri (Faculty of Economics and Business, Brawijaya University MT. Haryono Street, No. 165, Malang, East Java, 65145, Indonesia)

El Dinar
Vol 11, No 1 (2023): El Dinar

This study investigates the determinant of customer decisions in Islamic banks' savings: motivation, promotion, and religiosity. Trust variable as a form of research novelty as a mediation. This study uses a quantitative approach with explanatory research. Using purposive sampling, the sample is 95 Islamic bank customers in Nganjuk City, East Java. Data are analyzed using structural equation modeling with Smartpls software. This research generally describes the factors that can improve customer decisions in opening savings at Islamic banks, such as motivation, promotion, and religiosity. These three factors in this study proved that only direct motivation could improve customer decisions. The result means that the other two factors need a mediating variable in the form of customer trust in Islamic banks regarding the safety of money stored and guarantees free from usury. These findings can be a suggestion for the management of Islamic banks to do promotions more often, meaning that what has been done now is still inferior to conventional banks in promotion.