A study of the effects of online banking quality gaps on customers’ perception in Saudi Arabia

Abstract

Recent advancements in technology during the last decade has had an essential impact on the banking industry, and the recent rapid growth and expansion of online banking in Saudi Arabia is incontestable. The application of technology is essential in the banking industry to provide exceptional service to customers when using Online Banking (OB). This study aims to develop a conceptual framework of OB by understanding the interaction of stakeholders in the banking industry, and to identify the quality gaps of OB based on a relevant literature. Five quality gaps for OB and three phases of customer interaction with online banking systems were identified. Therefore, the ultimate objective of this research is to measure the influence of such quality gaps on customers’ willingness to use OB in Saudi Arabia as well as customer satisfaction toward OB. Technology and human interaction gaps were found to have a significant effect on customers’ willingness to use OB. Furthermore, service reliability, technical knowledge, and human interaction gaps were found to significantly influence customer satisfaction in OB.