Analysis of Digital Banking Services' Effect on Banking Performance in Indonesia's Bank Groups Based on Core Capital 3 And 4, with Customer Satisfaction As An Intervening Variable

Abstract

This study examines the impact of digital banking services on banking performance in Indonesia's Bank Groups (based on Core Capital 3 and 4), with customer satisfaction as an intervening variable. Thirteen commercial banks were selected as samples for the period of 2015-2021. Primary data was collected through questionnaires to assess customer satisfaction with digital banking services, while secondary data was obtained from Bank Indonesia and the Financial Services Authority annual reports. Path analysis was employed for data analysis. The findings indicate that digital banking services significantly and positively influence customer satisfaction in Indonesia's Bank Groups (based on Core Capital 3 and 4) from 2015 to 2021. Additionally, digital banking services have a positive and significant impact on banking performance during the same period. Moreover, customer satisfaction significantly affects banking performance in Indonesia's Bank Groups (based on Core Capital 3 and 4) from 2015 to 2021. Finally, digital banking services positively and significantly influence banking performance in Indonesia's Bank Groups (based on Core Capital 3 and 4) through customer satisfaction from 2015 to 2021.