Impact of FinTech on customer retention in Islamic banks of Malaysia

Abstract

This study is aimed to find the impact of much limelight topic FinTech on the customer retention in Islamic banks of Malaysia. Islamic banks in Malaysia specifically have been on forefront in bringing FinTech into their processes at very early stage. Customers usually do not choose Islamic banks for technology but this paper will analyse the impact of FinTech in retaining customers. A 26-item questionnaire was used to gather data from 325 customers of selected banks in Malaysia by strata sampling. Statistical data was analysed through various tests like reliability analysis, sample adequacy, factor analysis and regression analysis using SPSS 25.0. The findings of the study revealed that payments, advisory and compliance services of the FinTech has an impact on the retention of customers while financing service which is treated as important part in conventional banking has no significance on customer retention. This study will help Islamic banks to customise FinTech services for their customers and have association with such FinTech companies which adds value to their financial services.