The Impact of Service Quality, Technology Acceptance and Religiosity on The Selection of Islamic Bank and FinTech – Investigating The Stagnation of Indonesian Islamic Banking

Abstract PurposeBased upon an extended SERVQUAL model, this paper attempts to contribute to the Islamic banking literature by examining the impact of digitalization, as a service quality dimension, on customer satisfaction.Design/methodology/approachTwo dimensions, i.e. digitalization and compliance are added to the existing SERVQUAL model of five dimensions. Results are drawn from a self-completed survey of a convenience sample of 145 Tunisian Islamic bank customers for the year 2018. Factor analysis and regression analysis are used to determine factor structure and determine the impact of service quality dimensions, especially digitalization, on customer satisfaction in Islamic banking.FindingsThe factor analysis extracted five dimensions of service quality, i.e. confidence, compliance, digitalization, tangibles and human skills. The paper demonstrates a positive and significant relationship between the main dimensions of customer service quality and customer satisfaction, except for tangibles.Research limitations/implicationsAlthough the outcomes lend support to the extended SERVQUAL model, the results are derived based on a relatively small sample size in one country (Tunisia). This limits the generalizability of the study results. It might also be useful to enlarge the study sample and include a comparison between Islamic versus conventional banking about service quality and customer satisfaction.Managerial implications:To remain competitive, Tunisian Islamic banks need to pay attention to the way the services are delivered and not take it for granted that customers are only focusing on compliance. Dealing henceforth with Generation Y customers, they must persevere in bringing their customer service into the digital era.Originality/valueThis study is one of few which try to investigate the drivers of customer satisfaction for Islamic banks in a Digital Era. It reveals that although customers pay special attention to Sharia’ laws, the way services are delivered matters to them too. From now on, digital banking must appear among the Islamic bank features to stay relevant in the Digital Era.

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Customer satisfaction in the digital era: evidence from Islamic banking

10.21203/rs.3.rs-24909/v2 ◽

2020 ◽

Author(s):

Ghazi zouari ◽

Marwa Abdelhedi

Keyword(s):

Factor Analysis ◽

Customer Satisfaction ◽

Service Quality ◽

Customer Service ◽

Islamic Banking ◽

Islamic Banks ◽

Five Dimensions ◽

Islamic Bank ◽

Digital Era ◽

The Impact

Abstract Purpose: Based upon an extended SERVQUAL model, this paper attempts to contribute to the Islamic banking literature by examining the impact of digitalization, as a service quality dimension, on customer satisfaction.Design/methodology/approach: Two dimensions, i.e. digitalization and compliance are added to the existing SERVQUAL model of five dimensions. Results are drawn from a self-completed survey of a convenience sample of 145 Tunisian Islamic bank customers for the year 2018. Factor analysis and regression analysis are used to determine factor structure and determine the impact of service quality dimensions, especially digitalization, on customer satisfaction in Islamic banking.Findings: The factor analysis extracted five dimensions of service quality, i.e. confidence, compliance, digitalization, tangibles, and human skills. The paper demonstrates a positive and significant relationship between the main dimensions of customer service quality and customer satisfaction, except for tangibles.Research limitations/implications: Although the outcomes lend support to the extended SERVQUAL model, the results are derived based on a relatively average sample size in one country (Tunisia). It might also be useful to enlarge the study sample for better generalization of the findings in other countries and include a comparison between Islamic versus conventional banking about service quality and customer satisfaction.Managerial implications: To remain competitive, Tunisian Islamic banks need to pay attention to the way the services are delivered and not take it for granted that customers are only focusing on compliance. Dealing henceforth with Generation Y customers, they must persevere in bringing their customer service into the digital era.Originality/value: This study is one of few which try to investigate the drivers of customer satisfaction for Islamic banks in a Digital Era. It reveals that although customers pay special attention to Sharia laws, the way services are delivered matters to them too. From now on, digital banking must appear among the Islamic bank features to stay relevant in the Digital Era.

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Customer satisfaction in the digital era: evidence from Islamic banking

Journal of Innovation and Entrepreneurship ◽

10.1186/s13731-021-00151-x ◽

2021 ◽

Vol 10 (1) ◽

Author(s):

Ghazi Zouari ◽

Marwa Abdelhedi

Keyword(s):

Factor Analysis ◽

Customer Satisfaction ◽

Service Quality ◽

Customer Service ◽

Islamic Banking ◽

Islamic Banks ◽

Five Dimensions ◽

Islamic Bank ◽

Digital Era ◽

The Impact

Abstract Purpose Based upon an extended SERVQUAL model, this paper attempts to contribute to the Islamic banking literature by examining the impact of digitalization, as a service quality dimension, on customer satisfaction. Design/methodology/approach Two dimensions, i.e., digitalization and compliance, are added to the existing SERVQUAL model of five dimensions. Results are drawn from a self-completed survey of a convenience sample of 145 Tunisian Islamic bank customers for the year 2018. Factor analysis and regression analysis are used to determine factor structure and determine the impact of service quality dimensions, especially digitalization, on customer satisfaction in Islamic banking. Findings The factor analysis extracted five dimensions of service quality, i.e., confidence, compliance, digitalization, tangibles, and human skills. The paper demonstrates a positive and significant relationship between the main dimensions of customer service quality and customer satisfaction, except for tangibles. Research limitations/implications Although the outcomes lend support to the extended SERVQUAL model, the results are derived based on a relatively average sample size in one country (Tunisia). It might also be useful to enlarge the study sample for better generalization of the findings in other countries and include a comparison between Islamic versus conventional banking about service quality and customer satisfaction. Moreover, we can applicate another original method for the Measuring and Implementing Service Quality like the multicriteria method dubbed (MUSA). Managerial implications To remain competitive, Tunisian Islamic banks need to pay attention to the way the services are delivered and not take it for granted that customers are only focusing on compliance. Dealing henceforth with Generation Y customers, they must persevere in bringing their customer service into the digital era. Originality/value This study is one of the few which tries to investigate the drivers of customer satisfaction for Islamic banks in a Digital Era. It reveals that although customers pay special attention to Sharia laws, the way services are delivered matters to them too. From now on, digital banking must appear among the Islamic bank features to stay relevant in the Digital Era.

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Customer satisfaction in the digital era: evidence from Islamic banking

10.21203/rs.3.rs-24909/v3 ◽

2021 ◽

Author(s):

Ghazi zouari ◽

Marwa Abdelhedi

Keyword(s):

Factor Analysis ◽

Customer Satisfaction ◽

Service Quality ◽

Customer Service ◽

Islamic Banking ◽

Islamic Banks ◽

Five Dimensions ◽

Islamic Bank ◽

Digital Era ◽

The Impact

Abstract Purpose: Based upon an extended SERVQUAL model, this paper attempts to contribute to the Islamic banking literature by examining the impact of digitalization, as a service quality dimension, on customer satisfaction.Design/methodology/approach: Two dimensions, i.e. digitalization and compliance are added to the existing SERVQUAL model of five dimensions. Results are drawn from a self-completed survey of a convenience sample of 145 Tunisian Islamic bank customers for the year 2018. Factor analysis and regression analysis are used to determine factor structure and determine the impact of service quality dimensions, especially digitalization, on customer satisfaction in Islamic banking.Findings: The factor analysis extracted five dimensions of service quality, i.e. confidence, compliance, digitalization, tangibles, and human skills. The paper demonstrates a positive and significant relationship between the main dimensions of customer service quality and customer satisfaction, except for tangibles.Research limitations/implications: Although the outcomes lend support to the extended SERVQUAL model, the results are derived based on a relatively average sample size in one country (Tunisia). It might also be useful to enlarge the study sample for better generalization of the findings in other countries and include a comparison between Islamic versus conventional banking about service quality and customer satisfaction. Moreover, we can applicate another original method for Measuring and Implementing Service Quality like the multicriteria method dubbed (MUSA).Managerial implications: To remain competitive, Tunisian Islamic banks need to pay attention to the way the services are delivered and not take it for granted that customers are only focusing on compliance. Dealing henceforth with Generation Y customers, they must persevere in bringing their customer service into the digital era.Originality/value: This study is one of few which try to investigate the drivers of customer satisfaction for Islamic banks in a Digital Era. It reveals that although customers pay special attention to Sharia laws, the way services are delivered matters to them too. From now on, digital banking must appear among the Islamic bank features to stay relevant in the Digital Era.

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Loyalty towards Islamic banking: service quality, emotional or religious driven?

Journal of Islamic Marketing ◽

10.1108/jima-01-2018-0007 ◽

2019 ◽

Vol 11 (1) ◽

pp. 66-80 ◽

Cited By ~ 9

Author(s):

Dwi Suhartanto ◽

Christopher Gan ◽

Ira Siti Sarah ◽

Setiawan Setiawan

Keyword(s):

Service Quality ◽

Customer Loyalty ◽

Structural Equation ◽

Islamic Banking ◽

Emotional Attachment ◽

Islamic Banks ◽

Content Type ◽

Perceived Service Quality ◽

Islamic Bank ◽

Bank Managers

Purpose This paper aims to integrate and examine three loyalty routes (i.e. service quality, emotional attachment and religiosity) in developing customer loyalty towards Islamic banking. Design/methodology/approach Data were collected from 412 Islamic bank customers from Indonesia. Variance-based structural equation modelling was applied to evaluate the association between service quality, emotional attachment, religiosity and customer loyalty. Findings This study reveals that customer loyalty is more driven by emotional attachment and religiosity rather than by perceived service quality. Although not directly affecting customer loyalty, service quality strengthens customer satisfaction towards Islamic banks. Practical implications This study provides an opportunity for Islamic bank managers to increase their customer loyalty through the development of emotional attachment and religiosity. To improve customer loyalty, this study suggests that Islamic banks have to provide prompt, accurate and non-personal service. It is also important for Islamic bank managers to keep the bank operation compliant with the Sharia law. Originality/value This study is the first attempt to assess the three loyalty routes simultaneously in influencing customer loyalty.

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The consumers’ commitment and materialism on Islamic banking: the role of religiosity

Journal of Islamic Marketing ◽

10.1108/jima-12-2020-0378 ◽

2021 ◽

Vol ahead-of-print (ahead-of-print) ◽

Author(s):

Junaidi Junaidi ◽

Ready Wicaksono ◽

Hamka Hamka

Keyword(s):

Structural Equation ◽

Survey Study ◽

Equation Modeling ◽

Islamic Banking ◽

Islamic Banks ◽

Content Type ◽

Positive Effects ◽

Islamic Bank ◽

Muslim People ◽

The Impact

Purpose This paper aims to investigate whether and how religiosity (e.g. extrinsic and intrinsic) influences the mediator variables (consumers’ commitment and materialism) in the Islamic bank consumers context. It also examines how the mediators should be influence consumers’ preferences. Design/methodology/approach In total, 658 Muslim people and Islamic bank consumers were recruited for a survey study and structural equation modeling was used to test the research hypotheses. Findings The empirical results indicate that religiosity (e.g. extrinsic and intrinsic) has significant and positive effects on consumers’ commitment and materialism, whereas intrinsic religiosity has no significant effect on consumers’ commitment which subsequently influences consumers’ preference. Furthermore, mediator variables (e.g. consumers’ commitment and consumers’ materialism) have partial mediators between religiosity and consumers’ preferences. Research limitations/implications The current study was limited to Indonesian Muslim people; there is a future need to study consumers’ attitudes and engagement in religious products and services (e.g. Islamic brands). It is can help practitioners, regulators and researchers to observe the dynamic behavior to elaborate on the impact of religion and Islamic products on consumers’ preference. Practical implications The bank managers and regulators should enhance the information of products and services Islamic banks and the difference principle between conventional banks. Moreover, enlighten the consumers about the principle operation of Islamic banks from the perspective of marketing and religiosity. Originality/value This study contributes to consumers’ behavior literature and, specifically, for the decision-making process through developing and testing a model of religious determinants toward Islamic bank products, as well as offers new insights into the determinants of religion and consumers’ decision process toward Islamic banking.

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Restructuring and Bank Performance in Dual Banking System

Signifikan Jurnal Ilmu Ekonomi ◽

10.15408/sjie.v10i2.20740 ◽

2021 ◽

Vol 10 (2) ◽

pp. 223-247

Author(s):

Raditya Sukmana ◽

Mansor H Ibrahim

Keyword(s):

Banking System ◽

Extensive Study ◽

Bank Risk ◽

Bank Performance ◽

Islamic Banking ◽

Panel Var ◽

Bank Competition ◽

Islamic Bank ◽

Conventional Banks ◽

The Impact

While extensive study deals with bank competition and performance relationship, this study pioneers in focusing the existence Islamic bank in the presence of well established conventional banking system in Malaysia. This paper assesses the impact of changing competition landscape and Islamic bank penetration on bank risk, profitability and capitalization. This study utilizes an unbalanced panel dataset consisting of 37 commercial banks over the period 1997 to 2015. the paper uses a panel VAR methodology to discern the interactions between bank competition and Islamic banking presence on one hand and bank performance on the other hand.Findings: We find evidence supportive of both competition – stability and competition – fragility views for conventional banks. The results suggest that bank competition improves conventional bank risk and, at the same time, lower profitability and capital holdings. As for Islamic banks, competition seems to robustly influence only bank profitability. Finally, we note that increasing Islamic bank penetration improves the risk profile of conventional banks and, as expected, reduces their market power. These results bear important implications on the design of competition policies in a dual banking system as well as on the development of the Islamic banking sector.JEL Classification: C23, G21, G28How to Cite:Sukmana, R., & Ibrahim, M. H.. (2021). Restructuring and Bank Performance in Dual Banking System. Signifikan: Jurnal Ilmu Ekonomi, 10 (2), 223-247. https://doi.org/10.15408/sjie.v10i2.20740.

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Customer satisfaction and loyalty in Malaysian Islamic banks:a PAKSERV investigation

International Journal of Bank Marketing ◽

10.1108/ijbm-08-2013-0084 ◽

2015 ◽

Vol 33 (1) ◽

pp. 23-40 ◽

Cited By ~ 39

Author(s):

Muahmmad Kashif ◽

Sharifah Suzana Wan Shukran ◽

Mohsin Abdul Rehman ◽

Syamsulang Sarifuddin

Keyword(s):

Customer Satisfaction ◽

Service Quality ◽

Cultural Context ◽

Islamic Banking ◽

Network Marketing ◽

Content Type ◽

Confirmatory Factor ◽

The Impact ◽

First Time ◽

Customer Satisfaction And Loyalty

Purpose – The purpose of this paper is to examine the impact of PAKSERV measures on customer satisfaction and loyalty in the Malaysian Islamic banking context. Design/methodology/approach – The dimensionality of the PAKSERV scale is examined with confirmatory factor analysis. A survey approach is adopted to collect data from 300 Islamic banking customers in Kuching, Malaysia. Findings – Results reveal an excellent model fit for the PAKSERV scale in collectivist cultural context of Malaysia. All dimensions of PAKSERV are validated except reliability. The issue of non-validity of the reliability dimension in an Islamic banking context is explained by extant literature. Practical implications – Islamic banks are recommended to focus on all the PAKSERV scale dimensions to impart service quality. Given a collectivist cultural setting, a “network marketing” approach is recommended to maintain a desirable level of customer satisfaction and loyalty. Originality/value – The PAKSERV scale has been employed for the first time to investigate the service quality-loyalty path in a collectivist cultural context. The validity of the PAKSERV scale has been operationalized for the first time in a collectivist cultural context.

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PENGARUH RELIGITAS, KUALITAS LAYANAN DAN TRUST TERHADAP LOYALITAS NASABAH BANK SYARIAH DI KOTA BOGOR

Jurnal Riset Ekonomi dan manajemen ◽

10.17970/jrem.17.170204.id ◽

2018 ◽

Vol 17 (2) ◽

pp. 189

Author(s):

Soegeng Wahyoedi ◽

Hery Winoto

Keyword(s):

Service Quality ◽

Structural Equation ◽

Islamic Law ◽

Partial Least Square ◽

Least Square ◽

Equation Modeling ◽

Islamic Banking ◽

Islamic Bank ◽

The Government

ABSTRACT The role of Islamic banking in the national economy becomes more strategic as the government is facing fiscal limitation in funding the development. The growth of Islamic banking, a bank managed by implementing the principles of Islamic law, has not been satisfactory. This can be examined by referring to the role of Islamic banking in national banking which is till in the rate of less than 5 percent. This research aims to observe the influences of religiosity and service quality on trust and customer loyalty, as well as to observe the influence of trust on customer loyaltyof Islamic Bank in Bogor. By collecting 76 samples of Islamic bank customers in Bogor and utilizing structural equation modeling partial least square (SEM-PLS) as the technique of analysis, it is revealed that the aspects of religiosity and service quality are influential on loyalty if it is supported by trust. Meanwhile, the trust itself has a positive influence on loyalty. The finding implies that to increase the loyalty of Islamic bank customers, customer trust should be built.

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Islamic Banking in Global Economic Context (Critical Studies of Operational System and Performance of Islamic Banking)

AL-IHKAM Jurnal Hukum & Pranata Sosial ◽

10.19105/al-lhkam.v12i2.1301 ◽

2018 ◽

Vol 12 (2) ◽

pp. 343-361

Author(s):

Jamal Abdul Aziz

Keyword(s):

Global Scale ◽

Islamic Banking ◽

Business Practices ◽

Distribution Of Wealth ◽

Islamic Bank ◽

Need To Evaluate ◽

Modern Business ◽

And Performance ◽

Conventional Banks ◽

The Impact

Berdasarkan kajian terhadap sejarah kemunculan dan sistem operasional Bank Islam beserta kinerjanya, penulis menyimpulkan bahwa konsep bank Islam pada hakekatnya merupakan bentuk islamisasi terhadap institusi perbankan. Hanya saja proses islamisasi yang terjadi baru sebatas pada aspek-aspek yang bersifat marginal, artifisial, dan formal-institusional, seperti penggantian istilah-istilah teknis dalam dunia perbankan dengan istilah yang berasal dari fikih muamalah, penghapusan bunga, dan penolakan terhadap praktek-praktek bisnis yang haram. Selebihnya, bank Islam tidak berbeda dengan bank konvensional. Dampak dari islamisasi yang kurang substansial-komprehensif tersebut adalah timbulnya kesan bahwa bank Islam justru ‘terbelenggu’ oleh konsep-konsep fikih klasik yang mendasarinya, di mana ia cenderung kontra produktif dengan tren bisnis moderen yang senantiasa menuntut efisiensi dan fleksibilitas. Agar tetap dapat survive di masa-masa mendatang, bank Islam perlu mengevaluasi diri secara terus menerus dengan selalu membuka diri terhadap berbagai kritikan yang dialamatkan kepadanya. Konsepsi yang terlalu berorientasi kepada doktrin harus diimbangi dengan kesadaran akan fakta-fakta dan tuntutan bisnis moderen, baik yang berskala lokal maupun global. Sementara itu cita-cita Islam yang ideal, seperti pemberantasan kemiskinan, pendistribusian kekayaan secara adil, dan penciptaan lapangan kerja, harus tetap menjadi orientasi utamanya. Kata Kunci:Riba, Profit and Loss Sharing, Mudlârabah, Murâbahah, Artificial Aspects of Islam Abstract:Based on the study of the history of emergence and operation of Islamic Bank and its system performance, the author conclude that the concept of Islamic bank is essentially a form of Islamization of the banking institutions. Such Islamization are limited to the marginal, artificial, and formal-institutional aspects, such as the replacement of technical terms in the banking world with a term derived from the fiqh al-mu’âmalah, the abolition of interest, and the rejection of unlawful business practices. Moreover, the Islamic bank is no different from conventional banks. The impact of such less substantial and comprehensive islamization is the perception that Islamic bank is precisely 'shackled' by the concepts underlying classical fiqh, where it tends to be counter-productive with modern business trends which are constantly demanding efficiency and flexibility. In order to remain able to survive in the future, Islamic banks need to evaluate itself continuously by always open to criticism addressed to them. The conception of Islamic banking oriented too much to the doctrine must be balanced with an awareness of the facts and the demands of modern business, both local and global scale. While the ideals of the Islamic ideal, such as the eradication of poverty, equitable distribution of wealth and job creation, should remain the main orientation.

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