IPTEK Journal of Proceedings Series No. (1) (2020), ISSN (2354-6026) The 1 st International Conference on Business and Engineering Management (IConBEM) February 1 st 2020, Institut Teknologi Sepuluh Nopember, Surabaya, Indonesia 282 Abstract—Bank needs to provide best services to minimize customer’s complaint. One of bank efforts to serve their customers can be done by using transparency, so that all information is conveyed clearly. Transparency is also expected to enhance brand loyalty of customers. This conceptual study is based on theoretical review from literatures and previous researches related with these concepts. The basic concept of theory used in this study is that customers who get operational transparency express greater trust and support. This study aimed to analyze the effect of transparency on brand loyalty. By classifying the result of previous researches, this study found some propositions : (1) transparency has a significant effect on brand trust of customer; (2) brand trust has a significant effect on brand satisfaction of customer (3) brand trust has a significant effect on brand loyalty. Keywords—Transparency, Brand Trust, Brand Satisfaction, and Brand Loyalty. I. INTRODUCTION RAND, now is a matter of public concern. It's not something new for people to remember a service based on their brand. One of the service companies that has always been a concern from the public is bank. If a customer has chosen one of all banks to be an alternative that can help sustain the business by providing loans in the form of credit. Many benefits will be provided by the bank, it may be concerned if it is success in providing the best alternative promotions and ultimately getting customers. The bank will also try to keep their customers from switching to other banks or even giving a negative impression about the bank to other parties. Banks often do many things to attract the attention of the public so they are willing to become their customers and with good service will provide satisfaction which can further make them to be loyal customers. This statement is in accordance with the research of Putri and Iwan which explains that quality gives encouragement to customers to establish close relationships with the company so that it allows the company to understand carefully about the expectations and needs, which ultimately, customer satisfaction can create loyalty to company [1]. The benefits that can certainly be felt by the bank are customer’s loyalty which of course will not be easily move to other banks and also later it will be easier for banks to get new funds from the party recommended. In addition, banks also get benefits in the form of cost pressures on loyal customers. This was explained that by considering the cost reduction effect, it was reported that while maintaining customer loyalty would incur less costs than obtaining a new customer and the cost to retain customers decreased throughout the life cycle phase of the relationship [1]. Various efforts will be made by the bank because it is considered retaining loyal customers. It will be a challenge and its presence is important as an evaluation of the performance of the bank. Customers become loyal because of the service, the tendency is because they are satisfied with the services provided. If the customer feels the service from the bank is better or equal to their expectations, the customer will feel satisfaction. According to Tatik Suryani, consumers, either directly or indirectly will certainly provide an assessment of the services purchased or ever consumed. The evaluation is based on an overall assessment of what is received and experienced compared to what was expected [2]. There are two main factors that serve as consumer guidelines, namely: the service received, and the service expected. From this satisfaction, customers can later become loyal customers. Conversely, when customers feel that the services provided are not in line with what they’ve expected before, customers will feel dissatisfied and they will not re-purchase or use the bank's services for the second time. Consumers will assess a service deeper if they have used or felt the service. Unconsciously, consumers will judge a product or service directly when they begin to use it or feel it. Especially when customers are in banking industry, they will directly meet the employees who have the authority to handle these customers. In banking industry, for those who have the authority to handle customers directly is Front liner. Therefore, they will have a interaction and conversation according to what customer needs and also the information provided by the front liners so as to create satisfaction felt by the customers. This is in accordance with the research that services are not only able to fulfill information and provide solutions to customer problems, but also must be able to satisfy customers far above their expectations . In other words, there will be an intensity to communicate between customers and bank employees. This communication is certainly not limited only because customers have needs that will later have to be provided by the selected bank. But also it will be many models of services provided by the bank in relation to improving the quality and perception of customers in providing an assessment. This assessment will become the bank's expectation that customers feel satisfaction and therefore, the customers will be loyal to the bank. Communication between bank employees and customers is a matter of great concern, the selection and decision making of customers can also be determined after the communication in the form of an explanation of some things needed by the customer. Communication skills or abilities are one of the factors that affect service quality and customer satisfaction levels. With good communication skills, the communication that is established will be effective. Communication can be said to be effective if the message delivered can be received and understood as intended by the sender of the message. While from the bank's employees, of course the best service will be provided to customers and for the convenience of customers, in its service the bank will provide an explanation of the product to be selected. The Effect of Transparency on Brand Loyalty Irkhamnah Aisyah Yuana and Yudi Sutarso Department of Management, STIE Perbanas Surabaya, Surabaya e-mail: 2017610905@students.perbanas.ac.id B brought to you by CORE View metadata, citation and similar papers at core.ac.uk provided by IPTEK Journal of Proceedings Series