Why We Switch from Conventional to Sharia Bank?
Abstract
Sharia Bank becomes a financial business phenomenon in Asia, which offers not just a financial services but also sense of connectiveness to Islamic value. The objective of this study is to get a deep understanding on customer’s switching decision from choosing conventional to sharia bank. Using two combine approaches, qualitative and quantitative, this study has found that artifacts of corporate culture could influence customer’sdecisiontoswitchfromconventionaltoshariabank.Aquantitativeapproach, using structure equation modeling to 460 respondents, also confirmed that corporate culture artifact could be analyze from its deliverance and from its relatedness to Islamic self-concept of customer. Both, deliverance and relatedness, gives influence to consumer perception on banking services, but only deliverance influences customer trust. Moreover, consumer perception on banking services and customer trust gives strong impact to customer’s decision to switch from conventional to sharia bank. The outcome of this research can be used as a reference work to figure more reliable business approach that has more relatedness with Islamic value, as well as delivering it as a valuable component in the strategic plan of Sharia Bank.
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