INDONESIAN BANKERS’ SPENDING BEHAVIOR TOWARD CREDIT CARD IN JAKARTA

Abstract

The credit card as the payment instrument has become the most convenient instrument for transaction. The reason is because it’s easy to use, carry and also can become payment in advance. Unfortunately, most of the user of credit card can’t control their spending using credit card, while the phenomena find out that people will probably spend more using credit card rather than pay with cash. It can be affected by age, income, benefit, and the attitude toward money. Through this phenomenon, it raises one main research question for this study: “What are the factors that influencing Indonesian bankers’ spending behavior towards credit card”. In order to answer the main question, this study analyses three supporting research questions. The purpose of this study is to analyze the influence factors of bankers’ spending behavior towards credit card in Jakarta, because mostly bankers in Indonesia are using credit card due the regulation of the bank. This study become challenging because the interviewees are bankers who are also as the consumer banking of credit card. The bankers is probably know how the credit card business process, the beneficial, and even the policy of credit card itself, which means the more aware to the credit card. This study is using qualitative research method through semi structured interview of ten Indonesian bankers. The findings show that older age of bankers spent less through a credit card compared with younger age. Moreover, all interviewees prefer full payment to avoid interest charge. Then, the choice of credit card issuer banks based on the merchant promotions attractiveness. Finally, this study confirmed that Indonesia bankers know how to use a credit card wisely and their credit card spending behavior is efficiency and effective for them, but it caused financial losses to the bank.