Risk Analysis of Customers Churn Rate at the Bandung Mandiri Shari'a Bank
Abstract: Shari'a banking
are expanding and
growing rapidly nowadays,
as shown by
the increasing market shares
at several already
existing shari'a banks
as well as
births of new
shari'a banks induced
by conventional banks. Such growth is also proven at Bank Shari'a
Mandiri (BSM), namely the Bandung Mandiri Shari'a Bank, by a significant
increase in the number of its financing customers. Indeed, the increase could
not be separated from the churn rate, namely customer migration and absorption
from conventional banks or the other existing shari'a banks to Bandung BSM.
Financing customer migration thus becomes an important matter to be studied, in
order to find out about the driving factors for financing customers'
preferences to be made an input for Bandung BSM for planning a strategy to cope
with the market share increase. This research was aimed at identifying
financing customers' preferences toward Bandung BSM by studying the dominant
factors influencing the financing customers to choose and migrate to Bandung
BSM and using the factor analysis method to observe the churn rate risks.
Samples are taken from a number of Bandung BSM customers, selected through
questionnaires. There are three factors influencing customer preferences for
choosing Bandung BSM, namely: availability of supporting facilities,
leadership, and shari'a. Based on impact-probability matrix analyses, it is
shown that there are three attributes that have high probability values, that
is, profit sharing system, administrative easiness, and leadership factors.
Results of this research also showed that the Bandung BSM churn rate risks were
of medium to high probability, and this will greatly impact the bank's
performance. Therefore, some real effort is necessary to minimize the churn
rate risks.
Keywords: customer preference,
churn rate risk, factor analysis, risk analysis, risk identification, risk measurement,
impact-probability matrix
Author: Sudarso Kaderi Wiryono
Journal Code: jpmanajemengg070008
