The Effect of Mobile Banking On User Satisfaction and Loyalty through the Quality of Mobile Banking Service (Study on Banks in East Java)

DOI

10.2991/iconies-18.2019.6How to use a DOI?

Keywords

Mobile Banking, Security, New Product Adoption, IT Knowledge, Internet Connection Quality, Service Quality, User Satisfaction, User Loyalty

Abstract

Background of this research is dramatic development of Mobile Banking in Indonesia. It is so obvious because m-Banking service has provided an unhampered practical financial transaction through cellular phone such that the user is capable to operate online baking transaction in any times and places. Mobile Banking can be used to access whole online banking transaction including ATM (Automatic Teller Machine), except the cash withdrawal facility. This research is focused on the acceptance and the use of information technology in Mobile Banking, and therefore, the customer of Mobile Banking is categorized as the user. Based on some researches, the system usage becomes a main instrument to accept the technology. Indeed, this research considers Mobile Banking user as the instrument of Mobile Banking acceptance. This research attempts to explore the variables affecting the use of Mobile Banking such as perception of security, perception of new product adoption, perception of IT knowledge, perception of internet connecting quality, and quality of Mobile Banking service. Mobile Banking creates satisfaction and loyalty of the user. Therefore, user satisfaction represents a response and feedback given by the user after using Mobile Banking. The attitude of user toward Mobile Banking becomes a subjective criterion of how like of the user to the system. The analysis tool is Structural Equation Modeling (SEM). Based on the direct effect between variables, it seems that of seven hypotheses proposed, six hypotheses have significant effect and only one has non-significant effect. Result of this research indicates that Mobile Banking service has non-significant but positive effect on user loyalty. It shows that the facility of Mobile Banking is not ensuring user loyalty to use Mobile Banking. The progression of telecommunication technology and banking technology is introducing the user with new application and new facility. However, it is not increasing user loyalty to certain service because the user is using the service based on the demand.

Copyright

© 2019, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Lailatul Farida
PY  - 2019/10
DA  - 2019/10
TI  - The Effect of Mobile Banking On User Satisfaction and Loyalty through the Quality of Mobile Banking Service (Study on Banks in East Java)
BT  - Proceedings of the 2018 International Conference on Islamic Economics and Business (ICONIES 2018)
PB  - Atlantis Press
SP  - 34
EP  - 40
SN  - 2352-5428
UR  - https://doi.org/10.2991/iconies-18.2019.6
DO  - 10.2991/iconies-18.2019.6
ID  - Farida2019/10
ER  -