Increasing the Customer Retention Rate with Digital Banking Performance Optimization during the Covid-19 Pandemic (Study at BMT Amanah Ummah in Kartasura, Sukoharjo)

Authors

  • Istiatin Istiatin Faculty of Economics, Batik Islamic University of Surakarta, Indonesia

DOI:

https://doi.org/10.29040/ijebar.v5i3.3389

Abstract

Customer retention is the maintenance of sustainable business relationships with customers over the long term. A high customer retention rate is inversely proportional to customers leaving the company (defection). Entering the industrial era 4.0, where all economic activities began to shift to all digital, financial institutions were required to adapt, including Baitul Maal wat Tamwil (BMT). As a financial institution that has played an important role in the development of the Islamic economy, it has become a necessity for BMT to adapt to this change. The economic slowdown due to Covid-19 has reduced payment activity, but has accelerated the adoption of digital financial technology. The purpose of this study is to provide an overview of the implementation of digital banking by BMT Amanah Ummah as one of the steps in retaining its customers during this covid-19 pandemic. The method used in this study was a qualitative descriptive analysis technique, which seeks to describe the condition of digital banking at BMT during the COVID-19 pandemic where all data generated and presented are in the form of descriptions. The results of this study, BMT seeks to retain customers by optimizing the application of digital banking with BMT Mobile in its operations during this covid-19 pandemic. In line with the widespread use of digital instruments during the pandemic, digital economic and financial transactions continue to grow. In its application there are already various digitization used by BMT. With mobile BMT, BMT members can access data and transaction needs, ranging from checking balances, savings, principal savings, mandatory savings, voluntary savings, checking transaction history, and checking accounts Keywords: Customer retention, Digital banking, Covid 19, BMT Amanah Ummah

References

Adil Setiawan, Muhammad Ryan Darmala, N. F. A. (2020). THE INFLUENCE OF INTERNET BANKING AND DIGITAL MARKETING ON FINANCIAL PERFORMANCE OF BNI SYARIAH BANK MAKASSAR. Mirai Management, 5(1), 270–280.

Asti Marlina, W. A. B. (2018). Bank Digitalization on Service Improvement and Bank Customer Satisfaction. Innovators Scientific Journal, 7(1), 14–34.

Azizah, N., Azhari, A. R., & Wahyudi, R. (2020). Covid-19 outbreak : Islamic banking challenges in Indonesia. Islam in World Perspectives Symposium, 1(1), 134–141.

Aziz, (2006). BMT Accounting, Jakarta Pinbuk Press.

Bank Indonesia. (2020). Annual report 2020.

Dz., A. S. (2018). Digital-Banking-Based Islamic Banking Financial Inclusion: Optimization and Challenges. Al-Amwal: Islamic Journal of Economics and Banking, 10(1), 63. https://doi.org/10.24235/amwal.v10i1.2813

Dz, A. S. (2018). Digital-Banking-Based Islamic Banking Financial Inclusion: Optimization and Challenges. Al-Amwal, 10(1), 63–80.

Gaib, D. N. (2020). The Dynamics of Digital Banking Law in Indonesia. In LEX ET SOCIETATIS (Vol. 7, Issue 11). https://ejournal.unsrat.ac.id/index.php/lexetsocietatis/article/view/27366.

Habibah, N. F. (2020). Challenges and Strategies of Islamic Banking in Facing Covid-19. Iqtishodiah, 2(1), 1–9.

Husna, F. (2020). The Face of Economy 4.0: Digital Sharia Banking, Increasing Competitiveness and Strategy for Islamic Da'wah Fathayatul. Idarotuna, 3(1), 59–70. http://ejournal.uin- suska.ac.id/index.php/idarotuna/article/view/11328.

Ilhami, & Thamrin, H. (2021). Analysis of the Impact of Covid 19 on the Financial Performance of Islamic Banking in Indonesia. Tabarru Journal: Islamic Banking and Finance, 4(1), 37–45. https://doi.org/10.25299/jtb.2021.vol4(1).6068.

Kementerian PPN/ Bappenas. (2020). Trend of Conversion to Islamic Bank, Increase Business Efficiency and Productivity. www.knks.go.id.

Kholis, N. (2018). Banking in the new digital era. Journal of Economics, 12(1), 80–88.

Maharani, S., & Ulum, M. (2020). Digital Economy: Future Opportunities and Challenges for the Islamic Economy in Indonesia. In Conference on Islamic Studies (CoIS ) (Vol. 0, Issue 0). https://doi.org/10.30659/COIS.V0I0.7981.

Mardhiyaturrositaningsih, M. S. M. (2020). The impact of the COVID-19 pandemic on the management of the Islamic banking industry: a comparative analysis. Journal of Economics and Management, 2(1), 1–10.

OJK RI. (n.d.). Digital Banking Service .:: SIKAPI ::. Retrieved March 17, 2021, from https://sikapiuangmu.ojk.go.id/FrontEnd/CMS/Article/345.

Otoritas Jasa Keuangan. (2018). POJK Number 12/POJK.03/2018 Concerning the Implementation of Digital Banking Services by Commercial Banks. Ojk RI, I, 1–55. http://www.ojk.go.id/id/kanal/iknb/regulasi/lembaga-keuangan-mikro/peraturan-ojk/Documents/SAL- POJK PERIZINAN FINAL F.pdf.

Ridwan Muhamad. 2014. Baitul Maal wat Tamwil (BMT) Management UII Press Yogyakarta.

Riza, A. F. (2019). Customer acceptance of digital banking in Islamic bank : Study on millennial generation.

Conference on Islamic Management, Accounting, and Economics (CIMAE) Proceeding, 2, 66–74.

Sigalingging, V. (2017). The Effect of Relationship Marketing on Customer Retention at Bank BNI Jakarta Kota Branch Office. Utilitas, 3(1), 27–36.

Sumadi. (2020). Measuring the Impact of the Covid-19 Pandemic Phenomenon on Sharia Banking. Journal of Sharia Economic Law, 3(2), 145–162.

Tahliani, H. (2020). Challenges of Islamic Banking in Facing the Covid-19 Pandemic. Madani Syariah, 3(2), 92–113. https://doi.org/10.51476/MADANISYARI’AH.V3I2.205.

Vebiana, V. (2018). Digital Banking, Customer Experience, and Islamic Bank Financial Performance. POLBAN, 9, 747–751.

Winasis, S., Riyanto, S., & Ariyanto, E. (2020). Digital Transformation in the Indonesian Banking Industry : Impact on Employee Engagement. International Journal of Innovation, Creativity and Change, 12(4), 528–543.

Downloads

Published

2021-10-05

How to Cite

Istiatin, I. (2021). Increasing the Customer Retention Rate with Digital Banking Performance Optimization during the Covid-19 Pandemic (Study at BMT Amanah Ummah in Kartasura, Sukoharjo). International Journal of Economics, Business and Accounting Research (IJEBAR), 5(3), 2635–2643. https://doi.org/10.29040/ijebar.v5i3.3389

Issue

Vol. 5 No. 3 (2021): IJEBAR : Vol. 05, Issue 03, September 2021

Section

Articles

Citation Check

License

Authors who publish with IJEBAR agree to the following terms: Authors retain copyright and grant the IJEBAR right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (CC BY-SA 4.0) that allows others to share (copy and redistribute the material in any medium or format) and adapt (remix, transform, and build upon the material) the work for any purpose, even commercially with an acknowledgement of the work's authorship and initial publication in IJEBAR. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgement of its initial publication in IJEBAR. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See The Effect of Open Access).

Most read articles by the same author(s)

1 2 3 4 > >>