PHYGITAL BANKING (PHYSICAL & DIGITAL BANKING) IN INCREASING CUSTOMER TRUST TOWARDS SUSTAINABLE LOYALTY

Authors

  • Wursan Wursan Universitas Siliwangi, Fakultas Ekonomi dan Bisnis, Indonesia Author
  • Dedeh Sri Sudaryanti Universitas Siliwangi, Fakultas Ekonomi dan Bisnis, Indonesia Author
  • Prama Permana Universitas Siliwangi, Fakultas Ekonomi dan Bisnis, Indonesia Author
  • Agi Rosyadi Universitas Siliwangi, Fakultas Ekonomi dan Bisnis, Indonesia Author
  • Erwin Yulianto Universitas Langlangbuana, Fakultas Teknik, Indonesia Author

Keywords:

phygital banking, digital transformation, customer trust, sustainable loyalty

Abstract

This research explores the link between Phygital Banking, Customer Trust, and enduring Customer Loyalty. Data was gathered from numerous bank clients in West Java, Indonesia, via an online questionnaire. The data underwent quantitative analysis using the Structural Equation Model (SEM) and was processed with SmartPLS 4.0. A total of 399 participants were assessed for validity, reliability, and hypothesis testing. Findings revealed that Customer Trust positively and significantly influences Customer Loyalty, while Phygital Banking similarly has a positive and significant impact on Customer Loyalty. Additionally, Phygital Banking strengthens the bond between Customer Trust and sustained Loyalty. This research introduces a fresh perspective on the interconnectedness of Phygital Banking, Customer Trust, and lasting Loyalty, which was absent in earlier studies. The findings emphasize the importance for banks to consistently offer both physical and digital services. Achieving this demands enhanced technology, skilled personnel, and innovative strategies. Furthermore, collaboration with governmental bodies like Bank Indonesia and the Financial Services Authority is crucial to enhance Phygital Banking offerings, foster trust among customers, and ultimately boost loyalty.

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Published

2025-04-17

Issue

Vol. 2 No. 4 (2025): APRIL

Section

Articles