TY - GEN
T1 - Will traditional bank's customers switch to Fintech lending? A perspective of push-pull-mooring framework
AU - Afandi, Muhammad Anif
AU - Muta'ali, Abdul
N1 - Funding Information:
The author would like to thank to the Indonesia Endowment Fund for Education (LPDP), Ministry of Finance, Republic of Indonesia for funding this research.
Publisher Copyright:
© 2019 Association for Computing Machinery. ACM ISBN 978-1-4503-7234-3/19/09…$15.00
PY - 2019/9/19
Y1 - 2019/9/19
N2 - One of the biggest achievements of the Fourth Industrial Revolution (IR 4.0) is the development of technology that transforms some aspects of human's life. The impact of technological developments leads to a new business models that disrupts their predecessors. Financial Technology (FinTech) is one example of a new business model in the financial world that is predicted to disrupt the banking business model. Hence, it is important to do a study on the potential switching of traditional bank's customers to FinTech lending services using Push-Pull-Mooring (PPM) framework. The samples in this study were banking customers covering conventional and Islamic banks domiciled in Jakarta, Indonesia and the data was later analyzed using multinomial logistic regression (MLR). The results showed that PPM effects suggested that there was a tendency of traditional banks' customers to switch to FinTech lending services. It was revealed that the potential of traditional bank's customers who may be moving to FinTech lending services is 98.82 percent. This research results provide useful insight for managerial as a strategic step to determine the appropriate policies toward the potential of customer switching for banking industries, FinTech lending, as well as the regulators in Indonesia.
AB - One of the biggest achievements of the Fourth Industrial Revolution (IR 4.0) is the development of technology that transforms some aspects of human's life. The impact of technological developments leads to a new business models that disrupts their predecessors. Financial Technology (FinTech) is one example of a new business model in the financial world that is predicted to disrupt the banking business model. Hence, it is important to do a study on the potential switching of traditional bank's customers to FinTech lending services using Push-Pull-Mooring (PPM) framework. The samples in this study were banking customers covering conventional and Islamic banks domiciled in Jakarta, Indonesia and the data was later analyzed using multinomial logistic regression (MLR). The results showed that PPM effects suggested that there was a tendency of traditional banks' customers to switch to FinTech lending services. It was revealed that the potential of traditional bank's customers who may be moving to FinTech lending services is 98.82 percent. This research results provide useful insight for managerial as a strategic step to determine the appropriate policies toward the potential of customer switching for banking industries, FinTech lending, as well as the regulators in Indonesia.
KW - Customer switching
KW - FinTech lending
KW - Indonesia
KW - Push-Pull-Mooring
KW - Traditional banking
UR - http://www.scopus.com/inward/record.url?scp=85079838902&partnerID=8YFLogxK
U2 - 10.1145/3373744.3373752
DO - 10.1145/3373744.3373752
M3 - Conference contribution
AN - SCOPUS:85079838902
T3 - ACM International Conference Proceeding Series
SP - 38
EP - 43
BT - ICIME 2019 - 2019 11th International Conference on Information Management and Engineering
PB - Association for Computing Machinery
T2 - 11th International Conference on Information Management and Engineering, ICIME 2019
Y2 - 19 September 2019 through 21 September 2019
ER -