Abstract:

This study aims to compare millennial banking customer perceptions between conventional and Islamic banks and its potential to switch to financing services of FinTech lending. Total 280 data consisting of each 140 millennial conventional and Islamic bank customers who reside in Jakarta, Indonesia were used to answer the research problems with variables that modify Push-Pull-Mooring (PPM) theory. A non-parametric statistical approach with Mann-Whitney U test method was used as data analysis technique. The results showed that in the perspective of push effects, Islamic bank financing services gained higher perception (negative) in the aspects of pricing problem and processing problem but balanced with positive perception in service quality aspect compared with conventional banks. In the perspective of pull effects, millennial conventional bank customers have more positive perception on FinTech lending services in the easy process aspect. Then, in the perspective of mooring effects, millennial conventional bank customers have higher levels of inertia. In addition, millennial Islamic bank customers have higher potential to switch to financing services of FinTech lending. The results of this study provide useful information to the bank managements, FinTech lending as well as regulators as material consideration to determine the best strategy or policy amid the potential of customer switching.