Understanding Gen Y and Their Complaint Behavior towards Bank

Indonesian Financial Services Authority (OJK) as one of the financial industry regulators have set guidelines for financial institutions in providing their services. One of the guidelines require financial institution to provide a fast and affordable procedure for complaint and dispute resolutions. However, despite the regulation, the financial industry in Indonesia is still ranked as one of the top 3 industry that gets many complaints from consumers. According to data from the Yayasan Lembaga Keuangan Indonesia (YLKI)--Indonesian Consumers Foundation, throughout 2016 the agency has received a total of 781 consumer complaints and 1038 complaints, and 56% of those complaints are dominated by three main sectors - banking, housing and online shopping. In this study, we interested to discuss about complaint behavior intentions, specifically within Generation Y consumers. This is im-portant as an effort to predict future market trends, since nowadays, consumers are dominated by digital consumers like Generation Y. The data in this study were collected using online survey questionnaire to a total of 139 banking customers. The findings identified the service failure experienced by Indonesian customer. Then, an analysis is perform to examine the effect of Generation Y characteristics towards Generation Y’s complaint behavior. This study is important to financial regulator to understand the consumer complaint behavior. Moreover, the study also provides managerial implications to suggest ways for banks to manage customers’ complaint, particularly Generation Y, and make im-provement to its services.