Abstract
The research aims to evaluate customers’ loyalty to Sharia banking related to internal and external factors of the financial performance approach. A loyalty is depicted with Third-Party Savings deposited in Sharia banking. This study employed Autoregressive-Distributive Lag (ARDL) to explore the short period and the long period from variables’ relationships. The findings reveal that profit-sharing, administration fee, the interest rate of a conventional bank, inflation, and the total number of accounts (NOA) had significant effects on Third-Party Saving (TPS). They imply that the customer’s loyalty is internally established if there is a higher profit sharing in savings, lower administration fees, and total supplementary accounts. Yet, it is formed by external incentives, i.e., a lower interest rate of conventional banking and inflation.
Highlights
The development of Third-Party Saving (TPS) data of Sharia banking is increasingly in progress in line with the growth of Sharia banking in Indonesia
A loyalty, demonstrates that Sharia banking has satisfied customers that they will still use any products and services of Sharia banking. Another improvement of TPS can show that the performance of Sharia banking has achieved 6% (Gita Rossiana, 2013)
Better performance of Sharia banking can compete in financial industry using Sharia principles, where the public can perform their financial activity by still, at the same time, maintaining and holding religious values and economic aspect
Summary
The development of Third-Party Saving (TPS) data of Sharia banking is increasingly in progress in line with the growth of Sharia banking in Indonesia. This increase of DPK, a vital part of the performance of Sharia banking, can show some issues, such as the developing extent of the public’s trust in Sharia banking (KNKS, 2020). A loyalty, demonstrates that Sharia banking has satisfied customers that they will still use any products and services of Sharia banking. Another improvement of TPS can show that the performance of Sharia banking has achieved 6% (Gita Rossiana, 2013). Better performance of Sharia banking can compete in financial industry using Sharia principles, where the public can perform their financial activity by still, at the same time, maintaining and holding religious values and economic aspect
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
