Bank customer classification in Indonesia: logistic regression vs artificial neural networks.

This paper aims to identify factors distinguish Islamic and conventional bank customers in Indonesia. It tries to relate between bank customers’ religiosity, assessment upon certain factors such as bank performance, bank advertisement and main reasons of using banking services towards their decision...

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Main Authors: Abduh, Muhamad, Dahari, Zainurin, Omar, Mohd. Azmi
Format: Proceeding Paper
Language:English
Published: 2013
Subjects:
Online Access:http://irep.iium.edu.my/30751/
http://irep.iium.edu.my/30751/1/Abduh_Poster_No_1.pptx
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author Abduh, Muhamad
Dahari, Zainurin
Omar, Mohd. Azmi
author_facet Abduh, Muhamad
Dahari, Zainurin
Omar, Mohd. Azmi
author_sort Abduh, Muhamad
building IIUM Repository
collection Online Access
description This paper aims to identify factors distinguish Islamic and conventional bank customers in Indonesia. It tries to relate between bank customers’ religiosity, assessment upon certain factors such as bank performance, bank advertisement and main reasons of using banking services towards their decision on which bank they had joined. Logistic regression and neural networks models are used to answer the research questions based on 520 customers reside in Jakarta. Data collection is done through a direct survey using self administered questionnaire. The results from logistic regression and neural networks models demonstrate that shariah compliant issues, customers’ awareness on the fatwa announced by National Ulama Council on the impermissibility of bank interest, safety of fund as main reason of using banking services and customers’ perception on bank advertisement are the significant factors which classify the bank customers in Indonesia. Nonetheless, neural network classifies better than logistic regression.
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format Proceeding Paper
id iium-30751
institution International Islamic University Malaysia
institution_category Local University
language English
last_indexed 2025-11-14T15:32:04Z
publishDate 2013
recordtype eprints
repository_type Digital Repository
spelling iium-307512013-09-05T07:18:17Z http://irep.iium.edu.my/30751/ Bank customer classification in Indonesia: logistic regression vs artificial neural networks. Abduh, Muhamad Dahari, Zainurin Omar, Mohd. Azmi HG1501 Banking This paper aims to identify factors distinguish Islamic and conventional bank customers in Indonesia. It tries to relate between bank customers’ religiosity, assessment upon certain factors such as bank performance, bank advertisement and main reasons of using banking services towards their decision on which bank they had joined. Logistic regression and neural networks models are used to answer the research questions based on 520 customers reside in Jakarta. Data collection is done through a direct survey using self administered questionnaire. The results from logistic regression and neural networks models demonstrate that shariah compliant issues, customers’ awareness on the fatwa announced by National Ulama Council on the impermissibility of bank interest, safety of fund as main reason of using banking services and customers’ perception on bank advertisement are the significant factors which classify the bank customers in Indonesia. Nonetheless, neural network classifies better than logistic regression. 2013 Proceeding Paper PeerReviewed application/pdf en http://irep.iium.edu.my/30751/1/Abduh_Poster_No_1.pptx Abduh, Muhamad and Dahari, Zainurin and Omar, Mohd. Azmi (2013) Bank customer classification in Indonesia: logistic regression vs artificial neural networks. In: IIUM Research, Invention and Innovation Exhibition 2013, 19 - 20 February 2013, Cultural Activity Centre (CAC) and KAED Gallery, IIUM.
spellingShingle HG1501 Banking
Abduh, Muhamad
Dahari, Zainurin
Omar, Mohd. Azmi
Bank customer classification in Indonesia: logistic regression vs artificial neural networks.
title Bank customer classification in Indonesia: logistic regression vs artificial neural networks.
title_full Bank customer classification in Indonesia: logistic regression vs artificial neural networks.
title_fullStr Bank customer classification in Indonesia: logistic regression vs artificial neural networks.
title_full_unstemmed Bank customer classification in Indonesia: logistic regression vs artificial neural networks.
title_short Bank customer classification in Indonesia: logistic regression vs artificial neural networks.
title_sort bank customer classification in indonesia: logistic regression vs artificial neural networks.
topic HG1501 Banking
url http://irep.iium.edu.my/30751/
http://irep.iium.edu.my/30751/1/Abduh_Poster_No_1.pptx