The Key to Digital Bank Customer Loyalty: Beyond Ease of Use, Toward Trust and Financial Literacy

Illustration by AI

FORMOSA NEWS

CIREBON – The ease of use of a banking application does not guarantee long-term customer loyalty. New research reveals that customer trust and the ability to manage personal finances (financial self-efficacy) are the crucial factors that determine the loyalty of Gen Z customers toward digital banking services.

The study, conducted by Niken Amelia and Mardiyani from Swadaya Gunung Jati University, was published in the June 2026 issue of the Indonesian Journal of Business Analytics. The research highlights the behavior of 150 digital bank customers from the Gen Z demographic in Cirebon—a group aged 17–28 who are highly tech-savvy but often switch between applications due to low brand loyalty.

Trust as a Bridge

This study was motivated by the phenomenon that while digital bank adoption in Indonesia has surged, customer loyalty remains low. Many customers use applications only for specific purposes and easily switch to other service providers that offer more attractive promotions.

Using a quantitative methodology involving Structural Equation Modelling-Partial Least Squares (SEM-PLS) analysis, the researchers found that while ease of use does enhance trust, it does not directly create robust loyalty.

The study's key findings include:

• Trust as a Mediator: Trust is proven to be the key that bridges the relationship between application ease of use, financial capability, and long-term loyalty.
• Psychological Factors: Customers with high confidence in managing their personal finances (financial self-efficacy) tend to have stronger trust in digital banking systems.
• Significant Influence: Variables concerning ease of use, financial literacy, and trust collectively explain 86.6% of the factors that shape customer financial loyalty.

Implications for the Banking Industry

The study suggests that digital banking service providers should not focus solely on attractive and user-friendly application interfaces. To retain customers, banks must provide features that support the customer's financial competence, such as transparent expense summaries, clear transaction histories, and risk management education.

"Building trust is the primary step so that customers do not use the application merely for fleeting needs, but rather treat it as a long-term financial partner," the researchers stated in their report.

Author Profile: This research was authored by Niken Amelia and Mardiyani, academics from Swadaya Gunung Jati University, with expertise in financial management, consumer behavior, and digital business analysis.

Research Source:

• Article Title: The Impact of Perceived Ease of Use and Financial Self-Efficacy on Financial Loyalty: The Mediating Role of Trust
• Journal Name: Indonesian Journal of Business Analytics (IJBA)
• Publication Year: 2026
• DOI: https://doi.org/10.55927/ijba.v6i3.16531