DETERMINANT OF CUSTOMER LOYALTY FOR BANK SYARIAH INDONESIA AFTER M&A ACTIVITY BASED ON CONFIRMATORY FACTOR ANALYSIS.

The government of Indonesia consolidated three state-owned Islamic banks to become Bank Syariah Indonesia. Customer loyalty is affected by merger operations. This study aims to examine the role of Bank Image, Cost and Benefit of Merger, Past Behavior, Services Quality, Product Price, Bank Human Recourses, Bank Location, Information Technology Integration and Sharia Compliance on Loyalty Customers BSI's predecessor banks (Bank Syariah Mandiri, BNI Syariah and BRI Syariah). This study uses a quantitative approach by completing an online questionnaire from 92 respondents spread across Indonesia and this study uses Confirmatory Factor Analysis (CFA) as the estimation method. The results of the validity test show a strong correlation between a few independent variables and BSI customer loyalty. These include bank human resources, bank location, and information technology integration, Product quality and service quality. On the other hand, the validity test shows that a number of independent variables are unrelated to BSI customer loyalty, including Bank Image, Cost and Benefit of Merger, Past Behavior, Product Price, and Sharia Compliance. For BSI managers, prioritizing key drivers of customer loyalty such as product quality, service efficiency, and technological integration is crucial for strategic resource allocation and maintaining a positive customer experience. BSI customers are encouraged to stay informed about the bank's offerings, engage in educational initiatives, and provide regular feedback, while the government can support BSI's success by fostering a regulatory environment conducive to innovation and customer-centric initiatives. [ABSTRACT FROM AUTHOR]