Strategic Model of Electronic-Based Customer Loyalty in Improving the Performance of Branchless Banking in Indonesia

Abstract

The main problems examined in this study are related to the phenomenon of competition problems among electronic based banks, which are very strict. Based on the research findings, it is necessary to develop customer loyalty based on electronics, besides this, there is a low understanding of smart behavior literacy organized by state banks in Indonesia. The Financial Services Authority (OJK) in June 2015 began implementing financial work services without offices in the framework of financial inclusion (branchless banking) as a breakthrough to open access to the financial services industry, especially banking so that it can be accessed to villages in various regions and communities that lack access to banks (bankable). Electronic-based customer loyalty is very important for banks, especially banks that conduct smart behavior. The digitalization era that developed now is a new era, globalization and evolution of digital technology. Society's environment and values are becoming increasingly diverse and complex. The Industrial Revolution 4.0 became a wave of digital transformation that drove activities and became a pillar of policy in the banking industry. So it will form a community that creates people centered on people and technology. This has an impact on the banking industry in Indonesia, thereby changing the strategy of each bank in meeting the desires and expectations of customers. In addition, the technology and operation systems of banks are continuously more demanded to be more practical and efficient in providing services and facilities which in turn can create customer loyalty based on electronics. Banking must make a breakthrough in adjusting to the dynamic environment in the era of the industrial revolution 4.0 and adapt to technological advances, increasingly fierce competition, higher expectations and desires of customers. The increasing need for an online operating system through the Internet and the reduction in manual operating systems, banks must make better improvements, as well as state banks implementing smart behavior. In this context, bright behavior is examined through the perspective of marketing management science so that new innovations can be found. Namely the Model in improving the performance of branchless banking.