Customer loyalty to Islamic banks: Evidence from Indonesia

Fianto, Bayu Arie; Gan, Christopher; Widiastuti, Tika; Sukmana, Raditya

doi:10.1080/23311975.2020.1859849

Cited by 31 publications

(33 citation statements)

References 116 publications

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“…Furthermore, Alalwan et al (2017) stated that when a bank offers a convenient, easy, and effortless service in m-banking, it is effectively increasing the satisfaction level. Additionally, Fianto et al (2020) explained that Islamic banking should provide not only competitive returns but also have to assure that their products and services fulfilled the Shariah compliance in order to increase their customer satisfaction. The result of this study indicates that m-banking provided by the top five Islamic banks in Indonesia has met customers' expectations of convenience, both financially and spiritually.…”

Section: Hypothesis Testingmentioning

confidence: 99%

Mobile banking services quality and its impact on customer satisfaction of Indonesian Islamic banks

Fianto

Rahmawati

Supriani

2021

JEKI

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Purpose -This study investigates the influential factors of mobile banking service quality dimension (enjoyment, security, ease, design, and application system) of Indonesian Islamic banks toward customer satisfaction.Methodology -This study uses 100 respondents who are Islamic mobile banking users in Indonesia and applies the Partial Least Square for Structural Equation Modeling (PLS-SEM) approach.Findings -This study reveals that the enjoyment, security, design, and application system of Islamic mobile banks significantly impact customer satisfaction. This study suggests that Islamic banks should pay more attention to increasing their mobile banking application systems, which is the most crucial factor influencing customer satisfaction.Research limitations -This study is limited to the sample of five top Islamic banks' customers in Indonesia with 100 respondents. Thus, the result of this study cannot be generalized to other countries. Practical implications -The findings offer valuable insights intoIslamic banks about improving their mobile banking services' quality to gain more satisfied customers, which benefited their financial and non-financial performances.Originality -This study specifically involved users of Islamic mobile banking from five Islamic banks, received the Top Brand Award in 2019. Therefore, this study provides significant guidelines for the rest of the Islamic banks in Indonesia to improve their customer satisfaction using mobile banking by referring to the Top 5 Brand Award.

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Section: Hypothesis Testingmentioning

confidence: 99%

Mobile banking services quality and its impact on customer satisfaction of Indonesian Islamic banks

Fianto

Rahmawati

Supriani

2021

JEKI

Self Cite

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“…Although generating profits is a core incentive to banking customers in general, in the context of IBs, this mainly takes the form of profit/loss sharing (Hati et al , 2020). Hence, consumers of IBs’ financial products are influenced by factors other than profit when choosing and remaining loyal to their banks (Fianto et al , 2020; Javed et al , 2020; Raza et al , 2020). They may not be affected directly by the traditional economic theory of profit maximization (Haron and Ahmad, 2000; Sukmana and Yusof, 2005).…”

Section: Literature Review and Hypotheses Developmentmentioning

confidence: 99%

Selection of Islamic banking in a multicultural context: the role of gender and religion

ElMassah

Abou-El-Sood

2021

JIMA

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Purpose As the popularity of Islamic banking and financial instruments continues to rise globally, a recurring empirical question is what specifically makes consumers choose Islamic banking. This paper aims to investigate the determinants of bank type selection, especially in culturally diverse settings where the Islamic banking sector is well-established. It further examines whether consumers’ gender/religion influences their choices. One intuitive prediction is that Muslim consumers opt for Islamic banking products as “ethical” because of conviction-related reasons. However, the reality is not necessarily straightforward. Design/methodology/approach This paper uses structural equation modeling to examine data collected from a survey questionnaire of 790 respondents in an emerging market setting. Further analysis is made based on gender and religion to remove related bias. Findings Results suggest that overall consumer awareness significantly affects the selection of Islamic banking products. The positive effect of awareness is more significant for Muslim consumers relative to non-Muslims. Interestingly, social stimuli and bank attributes have an insignificant effect on the banking choices of both Muslims and non-Muslims. Practical implications Results suggest that Islamic banks’ marketing managers should adopt differentiated strategies for men and women, focusing on the core benefits of the service or personal interactions with consumers, respectively, along with a focus on different aspects of personal service for each gender. Awareness should be enhanced by adopting informative and effective marketing strategies to attract and retain consumers in the competitive bank environment. Islamic banks (IB) should pay attention to the religious effect without considering it as the sole variable motivating potential customers. They should design segmented and customized marketing strategies based on gender-religion market segmentation to suit different groups’ needs. Originality/value The findings fill a gap in the literature and provide Islamic bankers with insights to help design and articulate their business strategies to appeal to consumers in a multicultural context. Examining an integral part of gender and religion mitigates biased estimates due to the omission of variables. The study contributes to the existing literature on customer preferences for IB with a relatively large, new data set.

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“…Although Islamic banking relies heavily on the loyalty of their customers (Fianto et al, 2020), they have not been able to emphasize the unique quality of the services they provide (Wilson, 2002). Sonko (2020) found the most of his respondents believe that the AGIB bank in Gambia was not sharia-compliant.…”

Section: Introductionmentioning

confidence: 99%

Marketing Ethics At Islamic Banks: Principles And Practices

Hadi

Cahyo

Budi

2021

JISEL

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This article highlights the principles and implementation of Islamic banking marketing ethics. Ethics based on sharia principles are an essential differentiator from their competitors. It begins from the 4 P's marketing mix framework, namely product, price, promotion, and place. This article is qualitative descriptive research using literature review. This article employs secondary data from 11 articles. The data that has been collected then analyzed with descriptive information. Therefore, through 4 P's marketing mix lens, this article finds a lack of ethical marketing practices in Islamic Banking from the ethical ideals espoused in the literature. This study analyzes the ethical marketing practices of Islamic banks which can be used as an evaluation of policies in the Islamic financial industry.

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Customer loyalty to Islamic banks: Evidence from Indonesia

Cited by 31 publications

References 116 publications

Mobile banking services quality and its impact on customer satisfaction of Indonesian Islamic banks

Mobile banking services quality and its impact on customer satisfaction of Indonesian Islamic banks

Selection of Islamic banking in a multicultural context: the role of gender and religion

Marketing Ethics At Islamic Banks: Principles And Practices

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