Increasing e-loyalty of banking customers through customer trust and commitment

Abstract

This study intended in evaluating as well as validating the importance of customer trust and commitment in mediating the impact of omnichannel perceived value (OPV) and customer involvement on electronic loyalty at BUKU IV bank’s customers in Jabodetabek. Descriptive quantitative is the method used in this research with the assistance of a causal approach with a total sample of 245 respondents which were then analysed by PLS-SEM (Partial Least Square-Structural Equation Model). The results of this research found that omnichannel perceived value, as well as consumer engagement both partially and cooperatively, had positive and significant effect on the trust of Customers at BUKU IV banks in Jabodetabek, OPV, consumer engagement and trust of customers both partly or cooperatively have a positive and significant effect on the commitment of customer at BUKU IV Banks in Jabodetabek. Moreover, trust and commitment either partially or jointly have a positive and significant effect on e-loyalty of Banking customer at BUKU IV banks in Jabodetabek. The implication of this research reveals that in order to increase the e-loyalty of the customers, it requires boosting OPV, engagement of consumers, trust, and commitment of the customer.

A study on driving factors for enhancing financial performance and customer-centricity through digital banking

“…4.9 E-loyalty E-loyality is defined as a customer's intention and behaviour to continue using the DB platform and to recommend it to others (Klaus and Maklan, 2013). Customer retention is distinguished by the propensity of consumers to maintain consumption of particular banking websites, regular visits, substantial site interaction and increased adoption of digital and electronic banking services (Cahaya and Siswanti, 2020;Cahaya et al, 2023;Tran et al, 2023). E-loyalty can be influenced by the bank model used, specifically internet-only or click-and-mortar, whereby click-and-mortar bank consumers demonstrate greater levels of loyalty (Kaabachi et al, 2019).…”

Innovative Strategies to Maximize Customer Loyalty in the Banking System: A Systematic Review

“…In these times of new financial implementations, Cahaya et al (2023) indicate that loyalty has become an important need that banks have to take into account, which is why this systematic review is carried out in order to understand what has been written in the scientific literature on loyalty approaches and strategies in the banking system between 2018-2023?…”

“…In recent years, the banking market has presented very important changes in technology, which has allowed the entry of new financial approaches and the penetration of loyalty strategies that have helped the expansion of traditional banking businesses, attracting customers who were not part of the traditional financial system (Monferrer et al, 2019). However, along with this, new financial agents were added that have had to implement strategies that help them compete with established financial institutions and thanks to the exponential growth of financial technology (Fintech), which today has become a necessary strategy for banks, allowing them to captivate the attention of the public that was not part of the traditional banking system (Cahaya et al, 2023).…”