Abstract: One of the banks’ strategies in maintaining and enhancing customers is by creating the value that can be perceived by the customer. Service innovation is implemented as the effort to create this value. The aim of this study it to find out whether the high expectation of customers to this high value could be obtained by the advanced of service innovation. This is a verification study that utilizes analysis technic method of Structural Equation Modeling (SEM) on the basis of variance structure known as Partial Least Square Path Modeling (PLS-PM). The object of this study is business customers of banks in West Java, Indonesia. The result of this study shows that service innovation does not provide a big impact to customer perceived value. The possibility is that it is caused by the low interaction of business customers with bank employees because they use E-banking more often. The low interaction between bank employees and customers is suspected to be the cause the undelivered value from bank employees to customer.