Assimilating Islamic Banking Customer Loyalty: A Halal Brand Personality Perspective Model

As the Indonesian government promotes Indonesia as the center of the Halal Industry Nation, numerous strategies are being implemented across every sector, including Islamic Financial Institutions. This research focuses on investigating factors that can influence customer loyalty. The study aims to create a model for increasing customer loyalty based on the Halal Brand Personality approach by exploring competitive advantage as a mediating variable to bridge this gap. This research is important due to the relatively small market share of Islamic banking in Indonesia, which faces intense competition. This explanatory research with a quantitative approach employs a survey method to collect 225 data points. Structural Equation Modeling (SEM) is used to analyze each variable's direct and indirect relationship. It was found that of all the hypotheses, six were rejected, and the model was validated. The result delineated that the model proposed in this research can assist branch managers in maximizing and strengthening Islamic banking's distinctive products and sophisticated technology, which are its primary competitive advantages when competing with other banking sectors.