Millennial Experience in Islamic Banking: A Comparative Study between Clients and non-Clients

Abstract

This study examines factors affecting millennial loyalty to Islamic banks, from the perspective of both customers and non-customers. It employed the quantitative method and was assessed with an exploratory-descriptive approach. The study was conducted in Bandung by distributing questionnaires to 200 non-customers and 200 customers of Islamic banks who were between 19-39 years old. Partial Least Square analysis was employed to evaluate the data. The results show that the exploratory-descriptive approach is able to provide complete information about the customer and non-customer loyalty toward Islamic banks. This research underlines that service quality is a significant factor in building customer loyalty while opinion leader is an influencing factor for non-customer loyalty. The study, then, provides guidelines for banking management to improve service quality and to develop marketing strategies using opinion leaders. Besides, it is also advisable for the managers to adjust themselves to the latest trends and millennials lifestyles.

Ethical banking behavior among millennials and Gen-Z in Malaysia

“…The last bank selection criteria in this model is religious values. Previous studies highlighted the importance of religious value for both generations' bank selection criteria (Amin, 2016;Pujianti et al, 2021). The present study will focus on the relationship between millennials and Gen-Z bank selection criteria and ethical banking intention, as proposed by Papaoikonomou et al (2011) and Bayer et al (2019).…”

“…Technology-related factors and religious value were included as additional variables for bank selection criteria to suit the characteristic of millennials and Gen-Z in Malaysian financial landscape. Reputation has been recognized as one of the most effective influences on customers' intention toward banking institutions (Zakiah and Al-Aidaros, 2017;Bayer et al, 2019;Pujianti et al, 2021). Reputation could refer to the bank's prestigious image (Bayer et al, 2019).…”

“…Reputation has been recognized as one of the most effective influences on customers' intention toward banking institutions (Zakiah and Al-Aidaros, 2017; Bayer et al. , 2019; Pujianti et al. , 2021).…”

Citra Merek, Nilai Persepsi, Kesadaran Merek, Kepercayaan Nasabah, dan Loyalitas Nasabah pada Perbankan Syariah

“…Setiap manajer perusahaan ingin pelanggan mereka memiliki kesan dan persepsi yang baik terhadap merek mereka. Jika bank syariah memiliki citra positif di benak nasabahnya, maka akan tercipta kepercayaan nasabah dan pada akhirnya memotivasi nasabah untuk loyal (Fianto et al, 2020;Pujianti et al, 2021). Bagi pengelola bank syariah, menciptakan kesan dan reputasi positif di benak setiap nasabah bukanlah pekerjaan mudah dan membutuhkan kajian mendalam.…”

“…Loyalitas nasabah ini dapat berupa merekomendasikan jasa bank syariah kepada orang lain, mempromosikan produk bank syariah kepada orang-orang terdekat, dan tidak mau beralih ke bank non-syariah (Fianto et al, 2020). Merujuk pada pendapat Pujianti et al (2021) bahwa pelanggan setia tidak tertarik dengan layanan yang ditawarkan perusahaan lain dan tidak mau beralih ke produk lain. Beberapa pendapat menyatakan bahwa jika bank syariah memiliki banyak nasabah yang loyal, hal tersebut merupakan bukti keberhasilan strategi pemasaran mereka (Fitri et al, 2019;Munandar et al, 2020).…”