<![CDATA[Digital transformation in the banking industry, including Bank Perekonomian Rakyat (BPR) has become a strategic necessity to improve service efficiency and maintain customer loyalty amidst changing consumer behavior. However, digitalization also has the potential to reduce the quality of interpersonal relationship, which has long been a key strength of BPRs. Therefore this study examines how digital transformation and pre-digital relationship quality influence perceived usefulness, perceived interaction loss and customer loyalty. This research uses a quantitative approach with a survey of BPR customers who use digital services. Data are analyzed using SEM-PLS. The result show that digital transformation and pre-digital relationship quality influence perceived usefulness, perceived interaction loss and customer loyalty, although several relationship are not significant. The novelty of this study lies in the integration of digital transformation and relationship quality in the context of rural banks by positioning pred-digital relationship quality as an important factor in explaining the customer loyalty. This study expands the literature on digital transformation in relationship-based financial institutions. The finding suggest that BPR need to focus on increasing the benefits of digital services while maintaining the quality of personal relationships with customers. A hybrid service approach that combines digital technology and interpersonal interaction remains a relevant strategy for sustaining customer loyalty.]]>
