Although the majority of the residents in the City of Batam is Moslem, the development of sharia
products is running slow and undeveloped in comparing with conventional banks. It is interesting to
conduct a research aims to study conventional bank and sharia bank effects on Falah through customer
satisfaction in Batam city, the research population was 226 respondents, data analysis was performed
using the Structural Equation Model (SEM). Changes in Customer Satisfaction are influenced by
Conventional Banks and Islamic Banks by 68.7%. As for Falah R2 = .111 so the effect is 0.111 x 100%
= 11.1%. Thus it can be stated that the change in Falah is influenced by the effects of conventional
banks, Islamic banks, and customer satisfaction of 11.1%