The Impact of Mobile Banking on Customer Satisfaction and Loyalty: An Empirical Study

Abstract

Banking via mobile is the main channel of communication for many retail banks and customers, but it is not evident how far the investment extends towards customer relations. In the study four aspects of mobile banking experience perceived usefulness, ease of use, service quality, security and trust are studied to find their impact on customer satisfaction and satisfaction is studied on customer loyalty. A 26-item questionnaire was given to 400 active mobile banking users, and the data were analysed using a reliability test, a correlation and multiple regression analysis and bootstrapped mediation. Security and trust (β = .33) and service quality (β = .26) were the most significant factors that contributed to satisfaction, accounting for 58% of the variance, while perceived usefulness (β = .25) and ease of use (β = .13) were also significant but lesser factors. The most significant factors that influenced loyalty were satisfaction (β = .53) and trust (β = .24) both had a positive direct influence. The findings show that banks are more likely to foster loyalty by providing reliability and security of web and mobile channels, rather than through features. How banks can implement these recommendations in practice is provided.

Data note: illustrative values in the results section are provided for values and are ready for analysis. Substitute your own survey results in the place of the provided results.

The purpose of this study is to find out the impact of mobile banking on customer satisfaction and customer loyalty which was the problem of trust and service quality.The objective of this study is to find out the effect of mobile banking on customer satisfaction and customer loyalty from trust and service quality perspectives.

Keywords: Mobile Banking, Customer Satisfaction, Customer Loyalty, Service Quality, Security, Trust, Perceived Usefulness, Ease of Use.