Building Sharia Bank Customer Loyalty in Padang City through Minangkabau Culture Using Hyper-Personalization and Artificial Intelligence

Abstract

Padang is a city in West Sumatra, Indonesia, with a predominantly Muslim population, known for its "adat basandi sarak, sarak basandi kitabullah" (customary customs based on the teachings of Allah), which shapes a community lifestyle based on customs and sharia. Therefore, the development of Islamic banks in Padang is quite high. Innovation and technology are part of the factors that influence customer loyalty. Hyper-Personalization and Artificial Intelligence are part of the technology that will influence customer loyalty in Islamic banks and the culture in Minangkabau. This research is fully funded by the foundation through the Simlitupi Bath 5 Grant program for 2024-2025 from the University of Putra Indonesia YPTK Padang. The purpose of this research is to see how customer loyalty in Islamic banks in Padang can be built with Hyper Personalization (HP) and Artificial Intelligence (AI) through Minangkabau culture. Minangkabau culture, which is placed as an intervening variable, is state of the art in this research. The respondents to be used as a sample are residents of Padang City who are already Islamic bank customers in 2025, spread across 11 sub-districts. A sample size of 200 will be used using the Joreskog and Sorbom tabulation method. Testing was conducted using primary and secondary data, using Smart PLS 4.0 analysis tools, including automodels, inner models, descriptive statistics, and other tools. The results indicate that HP and AI play a direct and indirect role in building customer loyalty in Islamic banks in Padang City. The mandatory output of this research is publication in an international journal (Scopus). An additional output is participation in an international seminar with proceedings.