Will traditional bank's customers switch to Fintech lending? A perspective of push-pull-mooring framework

Muhammad Anif Afandi, Abdul Muta'ali

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

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.

Original languageEnglish
Title of host publicationICIME 2019 - 2019 11th International Conference on Information Management and Engineering
PublisherAssociation for Computing Machinery
Pages38-43
Number of pages6
ISBN (Electronic)9781450372343
DOIs
Publication statusPublished - 19 Sep 2019
Event11th International Conference on Information Management and Engineering, ICIME 2019 - London, United Kingdom
Duration: 19 Sep 201921 Sep 2019

Publication series

NameACM International Conference Proceeding Series

Conference

Conference11th International Conference on Information Management and Engineering, ICIME 2019
Country/TerritoryUnited Kingdom
CityLondon
Period19/09/1921/09/19

Keywords

  • Customer switching
  • FinTech lending
  • Indonesia
  • Push-Pull-Mooring
  • Traditional banking

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