Switching Behavior Customers of Sharia Banks in Indonesia

Abstract

The rapid growth of Islamic banks shows great consumer interest in Islamic banks. This research was conducted to analyze the factors that cause consumers to switch from conventional banks to Islamic banks. The population in this study were users of Bank Sharia Mandiri, BNI Sharia, BTN Sharia, and BRI Sharia. Primary data collection through distributing questionnaires with 114 respondents conducted by quota sampling. Data is analyzed by using confirmatory factor analysis. The results showed that the dominant factors that caused consumers to switch from conventional banks to Islamic banks were ethical issues and service quality. Apart from that, there are also factors of price / product and spiritual quality which also trigger consumer movement. These findings indicate that banking companies must be able to identify consumer desires in order to maintain and increase consumer loyalty by continuing to deliver good services. With an increase in service, consumers can feel more comfortable in making transactions.