An Analysis of the Factors Contributing to Dormant Accounts

A Case Study of Bank BCA Atrium Mulia Kuningan Sub-Branch Office, Jakarta

Abstract

The increasing adoption of digital banking services has transformed customer transaction behavior, yet the issue of dormant accounts remains a significant challenge for banking institutions. This study aims to analyze the determinants of dormant accounts among customers of Bank Central Asia (BCA) Atrium Mulia Kuningan Sub-Branch Office and to provide managerial insights for improving customer engagement in the digital banking era. The novelty of this study lies in the integration of customer behavior, bank policies, service quality and Customer Relationship Management (CRM), customer needs and preferences, and digital service factors into a single analytical framework for explaining dormant account behavior. Using a quantitative approach, data were collected through questionnaires distributed to 100 customers and analyzed using binary logistic regression. The results indicate that customer behavior, bank policies, service quality and CRM, customer needs and preferences, and digital services significantly influence dormant account status. Passive customer behavior, unfavorable perceptions of bank policies, and negative experiences with digital banking services increase the likelihood of account dormancy. Conversely, effective CRM practices and banking products that align with customer needs reduce the probability of dormant accounts. The study contributes to the banking literature by providing empirical evidence on dormant account determinants within the context of digital banking transformation and offers practical recommendations for enhancing customer retention strategies, strengthening financial integrity, and supporting sustainable banking performance