The Influence of Customer Perceptions Regarding the Deposit Insurance Corporation (LPS) and Service Quality on Gen Z's Interest in Saving at Conventional Banks

Abstract

Background: The banking industry is an integral part of the growth and development of the Indonesian economy. The monetary and banking crises that occurred in Indonesia resulted in a decline in public trust in the banking system. To address the crisis, the government issued several policies, including guarantees for all bank payment obligations, including public deposits, embodied in the Deposit Insurance Corporation (LPS), an independent institution that functions to guarantee customer deposits and actively participates in maintaining the stability of the banking system in accordance with its authority. Deposit Insurance Corporation. The Deposit Insurance Corporation (LPS) is a legal entity and institution that is independent, transparent, and accountable in carrying out its duties and authorities. The existence of this institution can certainly foster a sense of trust and security in the community to save. Where the public's decision to save will be determined by the public's perception of the Deposit Insurance Corporation (LPS) itself and the quality of service from a conventional bank.

Objectives: Therefore, this study aims to determine whether: (1) Customer perceptions regarding the Deposit Insurance Corporation (LPS) influence Gen Z's interest in saving at conventional banks; (2) Service quality influences Gen Z's interest in saving at conventional banks.

Methods: This research is a Comparative causal research with a quantitative approach. The population in this study were Gen Z customers who deposit funds in conventional banks. The sample size in this study was 80. The data collection method used a questionnaire. Instrument trials used validity and reliability tests. Analysis prerequisite tests used normality and linearity tests. Classical assumption tests used multicollinearity and heteroscedasticity tests. Data analysis techniques used simple regression analysis and multiple linear regression analysis.

Results: 1. There is a significant positive influence of Customer Perceptions of the Deposit Insurance Corporation (LPS) on Gen Z's Savings Interest in Conventional Banks. 2. There is a significant positive influence of Service Quality on Gen Z's Savings Interest in Conventional Banks.

Conclusions: The variable with the highest influence is customer perceptions of the Deposit Insurance Corporation (LPS). Therefore, the introduction and socialization of the Deposit Insurance Corporation should be continuously improved so that customers are more aware of the roles of the Deposit Insurance Corporation (LPS) and its benefits for them. This can increase customer savings interest.