HOW DOES STRENGTHENING ISLAMIC BANKING COMPETITIVENESS? INDONESIA EVIDENCE

Abstract

The quality of service provided depends on the ability of service providers to meet
customers’ expectations. This study aims to determine the impact of Islamic service
quality and floating market methods on the competitiveness of Islamic banks. This
study used quantitative methods with non-probability sampling techniques, using
purposive sampling techniques. The study population was BTN Syariah customers.
The data acquisition was made by spreading questionnaires to customers. Information
gleaned from specific considerations tailored to the research’s purpose or problem
and data analysed by multiple linear regression techniques. The results showed that
Islamic service quality affects the competitiveness of Islamic banks, and marketing
methods based on the floating market affect the competitiveness. The study improved
BTN Syariah Indonesia’s competitiveness in Islamic service quality and marketing
methods based on the floating market. This research helps banks recognise the points
and strategies for strengthening Islamic banks’ competitiveness and generating
positive experiences to gain customer loyalty with the proper approach, namely
Islamic service quality and marketing strategies with floating market methods.