Predicting Sustainability in The Banking Industry: A Structural Equation Modelling Approach

DOI

10.2991/aer.k.201221.096How to use a DOI?

Keywords

Service Quality, Social Media Influencer, Loyalty, Banking, Sustainability, PLS

Abstract

Recent developments in the competitive banking industry show that having loyal customers is an important strategy for bank sustainability because it can give a favorable influence on the performance of banks in the long term. Although past studies have indicated the significance of having loyal customers in the banking industry, there is still a lack of attention toward customer loyalty in Islamic banks. Therefore, this study aims to examine customer loyalty to Islamic banking industry. It includes two important determinants, namely the service quality and the social media influencer. This study employed a variance-based Structural Equation Modelling approach. To reach the purpose, this study used data from a questionnaire distributed to 200 respondents of Islamic banking customers in Bandung, Indonesia. The results show that this approach is able to provide comprehensive information about customer loyalty. This study underlines the important role of service quality and social media influencer in the formation of customer loyalty. The findings methodologically contribute to broadening our customer loyalty understanding in the context of Islamic banks. Further, for managerial practices, it provides guidelines for banking management to improve the quality of their services as a strategy for developing the sustainability of their business.

Copyright

© 2020, 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  - F Pujianti
AU  - I Novianty
AU  - D Suhartanto
PY  - 2020
DA  - 2020/12/22
TI  - Predicting Sustainability in The Banking Industry: A Structural Equation Modelling Approach
BT  - Proceedings of the International Seminar of Science and Applied Technology (ISSAT 2020)
PB  - Atlantis Press
SP  - 591
EP  - 596
SN  - 2352-5401
UR  - https://doi.org/10.2991/aer.k.201221.096
DO  - 10.2991/aer.k.201221.096
ID  - Pujianti2020
ER  -