DETERMINANTS OF CUSTOMER SATISFACTION AND LOYALTY OF SHARIA COMMERCIAL BANKS IN PROVINCE EAST KALIMANTAN

Islamic banking may be an industry developed supported by Islamic law or Sharia compliance; In Indonesia, the Islamic banking industry is proliferating, including in the province of East Kalimantan. This study aims to look at the variables that affect customer satisfaction and loyalty of Islamic commercial banks in East Kalimantan at Bank Rakyat Indonesia Syariah, Bank Negara Indonesia Syariah, and Bank Syariah using 400 respondent data. This research uses Structural Equation Modeling WarpPLS, which examines measurement models and structural models using a population of 91,596 with a sample of 400 bank customers. Hypothesis testing is done by using inferential statistical test tools that will produce or draw conclusions. The independent variables include Banking Service Quality (X1), Sharia Compliance (X2), Switching Barriers (X3), Religious Influence (X4), while the endogenous variables are Satisfaction (Y1) and Loyalty (Y2). The results showed that Banking Service Quality (BSQ), Shariah Compliance (S.C.), Switching Barriers (S.B.), and Religious Effects (RE) had a significant positive effect on satisfaction. Shariah Compliance and Switching Barriers and satisfaction have a significant positive effect on loyalty. On the other hand, Banking Service Quality and Religious Influence do not significantly affect loyalty. It is suggested to management to increase customer loyalty in terms of service quality and religious influence to maintain loyalty.