Banking Digitalization, Product Innovation, and Service Quality in Shaping Customer Loyalty: A Study at Bank Bjb’s Kuningan Branch

Fajar Jatnika; Acu Kusnandar

doi:10.55681/economina.v5i9.4338

Authors

Fajar Jatnika Universitas Ekuitas,Indonesia
Acu Kusnandar Universitas Ekuitas,Indonesia

DOI:

https://doi.org/10.55681/economina.v5i9.4338

Keywords:

Banking Digitalization, Product Innovation, Service Quality, Customer Loyalty, Bank BJB

Abstract

This study aims to analyze the effects of banking digitalization, product innovation, and service quality on customer loyalty at Bank BJB’s Kuningan Branch. The study employs a quantitative approach with a descriptive and confirmatory design. Data were collected through a questionnaire distributed to 100 respondents using a five-point Likert scale. Data analysis included descriptive statistics, instrument validation, classical assumption tests, multiple linear regression, partial tests, simultaneous tests, and the coefficient of determination. The results show that banking digitalization has a positive and significant effect on customer loyalty (B=0.206; t=2.783; p=0.006). Product innovation has a positive but insignificant effect (B=0.063; t=0.722; p=0.472). Service quality has a positive and significant effect (B = 0.411; t = 4.943; p < 0.001) and is the most dominant variable with a standardized beta of 0.462. Simultaneously, all three variables have a significant effect on customer loyalty (F = 24.587; p < 0.001). The R² value of 0.434 indicates that the model explains 43.4% of the variation in customer loyalty. These findings suggest that efforts to increase customer loyalty should prioritize service quality, accompanied by the enhancement of digital services and product innovations relevant to customer needs

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