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FinTech, Crowdfunding and Customer Retention in Islamic Banks

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  • Hasnan Baber

Abstract

Financial technology (FinTech) has gained a lot of attention and popularity in recent past years. Some researchers blame it for disrupting financial ecosystem and while others admire it for redefining traditional business models. According to the Statista Report 2018, transaction value in the crowdfunding segment amounts to US$ 5,250 mn in 2018. The aim of this study is to investigate the influence of FinTech applications and crowdfunding on customer retention in Islamic banks of Malaysia and the United Arab Emirates. A structured questionnaire consisting of 31 items was designed to gather data from 535 customers of selected banks from both countries through strata sampling. Various statistical tests were done to check the association between FinTech applications including crowdfunding and customer retention using SPSS 25.0. The results indicated that financing application of FinTech has no relevance to customer retention while as other variables such as payments, advisory services, compliance and crowdfunding has an impact on retaining customers in Islamic banks of these two countries. The conclusion of this study emphasis on expanding the range of applications of FinTech services by Islamic banks so that the customer will stay longer with the bank. Also, crowdfunding should be integrated into the Islamic banking system so that it can help in social entrepreneurship, micro-finance and establishing global Zakah and Sadaqa system.

Suggested Citation

  • Hasnan Baber, 2020. "FinTech, Crowdfunding and Customer Retention in Islamic Banks," Vision, , vol. 24(3), pages 260-268, September.
    • Handle: RePEc:sae:vision:v:24:y:2020:i:3:p:260-268
    DOI: 10.1177/0972262919869765
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    References listed on IDEAS

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    Cited by:

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    2. Progress Choongo & Mungu Chileshe & Christine Nakamba Lesa & Bruce Mwiya & Thomas Kweku Taylor, 2023. "The Effect of Leadership Styles on the Growth of Fintech Start-Ups in Zambia," FinTech, MDPI, vol. 2(4), pages 1-20, November.
    3. Hasnan Baber & N M Baki Billah, 2022. "Fintech and Islamic Banks - an integrative model approach to predict the intentions," Review of Applied Socio-Economic Research, Pro Global Science Association, vol. 24(2), pages 24-45, December.
    4. Huang, Shuo, 2022. "Does FinTech improve the investment efficiency of enterprises? Evidence from China’s small and medium-sized enterprises," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 571-586.
    5. Marwa Rabe Mohamed Ali Elkmash, 2022. "The Impact of Financial Technology on Banking Sector: Evidence from Egypt," International Journal of Finance, Insurance and Risk Management, International Journal of Finance, Insurance and Risk Management, vol. 12(1), pages 100-118.
    6. Egi Arvian Firmansyah & Masairol Masri & Muhammad Anshari & Mohd Hairul Azrin Besar, 2022. "Factors Affecting Fintech Adoption: A Systematic Literature Review," FinTech, MDPI, vol. 2(1), pages 1-13, December.

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