Abstract
This study aims to analyse the factors that cause the reluctance of Islamic bank customers in coastal areas to be loyal to the particular banks. The population in this study are conventional bank customers who live in Aceh, North Sumatra and Riau. The sample size in this study was 350 respondents. Sampling was carried out using a stratified random sampling method with the following proportions: Aceh 25%, North Sumatra 50% and Riau 25%. In this study, the sampling method used the census technique. Data analysis used SEM (Structural Equation Modelling) to verify the path of the relationship between variables. The results showed that of the 3 direct hypotheses tested, the effect of Emotional Attachment on Attitude. The effect of emotional attachment on continuance intention, the effect of Attitude on continuance intention, all of which show a significant effect. The significance that occurs in this direct test indicates that there is a match between the research model developed and the facts in which this research was conducted. On the indirect effect tested, although it showed significant results, the role of attitude in mediating the effect of emotional attachment on continuance intention through attitude is partial.
Highlights
Indonesia, as a Muslim majority country that is dominated by middle class population is a prospective market for Islamic banking [1]
To support the strongest increase in the intention to use Islamic banking services, it can be done through the increasing of attitude, because this variable has the largest magnitude number compared to the other variables, namely 82.5% compared to emotional attachment which is only 19.1%
From the research findings that have been discussed in the previous section, we can see that the main factor that can increase coastal societies interest in continuing to use Islamic banking services is to increase the customer's positive attitude towards Islamic bank products
Summary
As a Muslim majority country that is dominated by middle class population is a prospective market for Islamic banking [1]. According to the Financial Services Authority of Indonesia or “OJK” in the beginning of the establishment, Islamic banking did not attract the attention of Indonesian. The current phenomenon is the low penetration of coastal communities, which are dominated by the fishery sector, to the bank services, both for savings products, micro-credit, transfer/payment facilities, and the use of EDC machines. Many efforts have been made to improve access to banking services in these coastal communities, these efforts have not been fully successful. Penetration to Islamic banks among coastal communities only occurred when “the qanun” for Islamic financial institutions was enacted in Aceh which made all banking services in Aceh based on sharia. Many of them prioritize rational aspects such as more facilities, more advanced technology, better benefits and cheaper transaction costs than Islamic banks [3]. The question is whether it is the mere rationality aspect that
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