THE INFLUENCE OF FINANCIAL LITERACY, LEGAL AWARENESS, BANKING SERVICE QUALITY, AND CREDIT ACCESSIBILITY ON MSMEs CUSTOMER SATISFACTION: A COMPARATIVE STUDY BETWEEN PRIVATE AND STATEOWNED BANKS IN INDONESIA

Abstract

This study examines and compares how financial literacy, legal awareness, banking service quality, and 
credit accessibility influence micro, small, and medium enterprise (MSME) customer satisfaction between private and state-owned banks in Jakarta, Indonesia. Data were collected from 220 MSME borrowers (110 per bank type) through structured questionnaires and analyzed using multiple linear regression for each bank group, with explicit multicollinearity diagnostics applied before interpretation. The findings reveal that the dominant driver of satisfaction differs by ownership type: banking service quality is the primary lever in private banks, whereas credit accessibility is dominant in state-owned banks. Financial literacy and legal awareness, although positively associated with satisfaction, do not add independent explanatory power once service quality and credit accessibility are taken into account, and are therefore better understood as reinforcing conditions than as standalone drivers. Grounded jointly in the Theory of Planned Behavior, Social Exchange Theory, and Expectation Confirmation Theory, the study contributes new, ownership-differentiated evidence on MSME banking satisfaction in Indonesia. These findings imply that state-owned banks should prioritize streamlining their credit-application and documentation processes, while private banks should focus on delivering consistent service quality across branches; both should continue to support MSME customers' financial and legal literacy as complementary measures.