MARKET FRIENDLY APPROACH ON ISLAMIC BANK'S NON MUSLIM CUSTOMER IN PALEMBANG AND ITS EFFECT ON ATTITUDE.

Author:Panorama, Maya
Position:Report - Statistical data
 
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INTRODUCTION

Based on data from the Financial Services Authority (FSA), in October 2015 the market share of Islamic banking is expected to reach 5% this year with the release of a package of measures for the industry. The development of Islamic banks in Indonesia is still very low even though Indonesia is the largest Muslim country in the world. It was seen from the market share of Islamic banking is currently less than 5 percent, the main problem in the development of Indonesian Islamic banks exist in the bank reinforcement system that has not been repaired. Thus, the problem hindered the development of Islamic banks. In addition, human resources (HR) Islamic banking is still not strong enough to compete, development of Islamic banks is promising, but needs to develop in order to compete strong competitive with conventional banks. Islamic banks have huge potential, but the challenge of Islamic banks is also increasingly widespread. From the data gathered, until the beginning of 2016 the number of Islamic banks in Indonesia as many as 12 banks by the number as many as 1,970 bank branch offices. (Fauzi & Ahmad, 2016).

Islamic banks in running its operations based on Islamic principles, so most people will view that Islamic banks is identical with Islam and Muslims. In other words, Islamic banks cater and serve only to people who are Muslims, while other religions [non-Muslims] cannot do the transaction in it. This view is certainly wrong and needs to be clarified. If it is said that Islamic banks identical with Islam, it is true, because when we talk about sharia, it will automatically talk about Islam. Both a unity that cannot be separated. However, that need to be understood, Islamic banks are not related at all to religious ritual or worship of the religion of Islam. Islamic banks, in carrying out its activities, not limited only to people who are Muslims, but also open to non-Muslims. In other words, Islamic banks can provide financing or services to non-Muslims.

The non-Muslims can save money, ask for financing and/or use the services of Islamic banks, could even work there. At present, Islamic banking is growing rapidly around the world, not only in the Islam country/Muslim-majority, but also in countries that are not Islam, such as the United States, Singapore, United Kingdom, etc. Islamic banking and finance is growing rapidly in there, but not an Islam country. Reciprocally with Singapore, which was determined to be the center of Islamic finance in the world to loosen rules concerning Islamic banking so that it can thrive? In Malaysia, almost 15 per cent of customers of Islamic banks are non-Muslim. This indicates clearly that Islamic banks are not only for people who are Muslims. (Rasyid & Abdul, 2015).

Cultural characteristics of non-Muslims who are less able to work together and the spirit of capitalism that is commonly attached to the non-Muslims, naturally make a Conventional Bank has the capitalist system as a promising investment vehicle. But in reality, the majority of non-Muslim customers are also keen to keep funds in Sharia banking. Decision of non-Muslim communities to become customers in the Bank of Shariah can be influenced by several factors. Factors that influence the decision of customers to use banking services of Shariah, is of particular interest in the continuity of the management of the banking and fixed eksisnya the institution. (Sinungan, 2000). Based on survey results Islamic Bank of Britain (IBB), the majority of non-Muslim customers believe sharia economy relevant to all religions. Even 81 per cent of customers IBB, which is mostly non-Muslims, were satisfied with Islamic banking products. (Alamsyah, Ichsan & Emrald, 2014).

Research on the selection criteria for banks was mostly done by researchers at home and abroad. Erol & El-Bdour (1990) is regarded as the researcher who first examines consumer attitudes toward the Islamic bank. Research using questionnaires to determine the attitudes, behaviors and factors of bank selection criteria, both conventional and Islamic bank in Jordan. In that study concluded that a fast and efficient service, reputation and image bank and the bank's credibility is a major factor in choosing a bank, both conventional and Islamic bank. (Erol & El-Bdour, 1990).

Adawiah (2010) proposed in her research that there are seven factors that consumers consider in choosing a bank Syari'ah include: perception, process, physical condition, pricing, human resources and social and location factors. Consumer perceptions are factors that most influence on consumer decisions in choosing a Sharia bank. Most respondents had limited knowledge of Sharia banking products. Religion is not the main reason for the individual consumer in choosing a Sharia bank. Consumers are more expensive profit or for the results offered the Sharia bank than other factors.

Another study conducted by Sukron (2012), showed that the factors significantly influence the interest in non-Muslim customers into customer in Bank BNI Cabang Syari'ah Semarang. According to Irfan & Fithri (2014), variables that influences the selection of non-Muslim customers of Islamic bank is the highest administrative advantages as significant and indicate when cost in Islamic bank getting lower and provide for high profit sharing, it is a great opportunity for non-Muslim customers interested in Islamic bank.

Based on what has been described the problem in this research is: How high is direct effect of market friendly on non-Muslim customers? How high the changes in attitudes directly influence the non-Muslim customers? How high user markets directly influence attitude change? as well as how high is indirect effect the market friendly through changes in customers' attitudes toward non-Muslims? The contribution of this study is to provide information for management of Islamic banks in the field of market friendly, religious stimuli, profit sharing and the attitude of non-Muslim customers become customers in the Islamic bank and conventional bank.

Literature Review

In Act No. 10 1998 changes of Law No. 7 of 1992 about Banking, mention that Bank is the institution that collects funds from the public in the form of deposits and distribute in the form of loans and other forms in improving people's welfare. Meanwhile, Bank Syariah regulated in Law No. 21 of 2008 concerning Sharia Banking, bank whose business activities are carried out based on the principles of the Shari'a. While the principles of Shariah is Islamic law based on the treaty rules. According to Aziz (2010) Bank Sharia is the main business of financial institutions that provide financing and other services in payment traffic and circulation of money that operations adjusted to the principles of Shari'ah.

Sharia banking system has experienced radical growth over the past three decades. Sharia banks are more stable, better capitalized and have higher quality assets. Zopounidis (2017) examined the stability and profitability of conventional vs. Islamic banks before and after the financial crisis in 2007. They found that for pre-recession showed that IB profitability was positively affected by size and cost of personnel and was negatively affected by risk. While CB shows that personnel costs have a positive impact on profitability and risk, claims to the central government, negative impact inflation. For the post-recession period it is clear that its profitability positively influenced by size and capital only affects the profitability of IB. CB's profitability is also positively influenced by personnel costs, while risk has a negative impact. In addition, the risk also affects the stability of IB and CB negatively before and after the recession. Given IB risk, claims in government centers, domestic credit from private sector and inflation have negative correlation with profitability, while domestic credit provided by banks was found to have a...

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