Title: Innovation in Islamic banking towards conventional banking: a study on customer in Bandung

Authors: Yudi Azis; Irsyad Kamal

Addresses: Faculty of Economics and Business, Universitas Padjadjaran, Indonesia ' Faculty of Economics and Business, Universitas Padjadjaran, Indonesia

Abstract: Islamic bank is considered as an innovation due to its existence in Indonesia which able to answer the anxiety for the banking system given by the conventional bank. Today, the growth of Islamic bank in Indonesia remains low compared to other Moslem countries. This study is aimed to answer how far the innovation rate has been made by Islamic banks compared to the one made by the conventional bank from the customer's perspective and to know which innovation is needed to be improved. The study uses 200 samples of customer domiciled in Bandung and has an account in both Islamic and conventional banks. Using the paired sample t-test, it can be seen that the innovation in Islamic banks is still below average compared to the conventional ones. The most significantly different innovation type is organisation innovation where an improvement is needed in the information technology update as well as the cooperation with the partners.

Keywords: innovation; Islamic bank; conventional bank; t-test.

DOI: 10.1504/IJBIR.2019.103322

International Journal of Business Innovation and Research, 2019 Vol.20 No.4, pp.511 - 526

Received: 28 Feb 2018
Accepted: 26 May 2018
Published online: 04 Nov 2019 *

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