Abstract
Banks operate in an environment characterized by competition between banking service providers and the continuous development of financial technology. On this basis, the quality of banking services determines the success of banks. This study aims to test customer satisfaction as a mediating variable in the relationship between banking service quality and customer loyalty using the convenience sample method. Using the SmartPLS software, the data analysis and hypothesis test results show that the quality of banking service in all its dimensions positively affects customer loyalty. Moreover, customer satisfaction mediates such a relationship. Accordingly, the Jordanian commercial banking sector should focus on the tangibility dimension and influence customer satisfaction to promote customer loyalty.
Highlights
The Jordanian financial sector is characterized by competitiveness
Assets increased by 5.4%, and credit facilities and deposits grew by 3.7% and 4.3%, respectively (Central Bank of Jordan & Association of banks in Jordan, 2019).This statistics indicates that the banking sector enjoys a large market share in terms of assets, facilities and deposits, which requires continuous improvement and development in banking services to gain a competitive advantage reflected in customer satisfaction and loyalty
The quality of banking service in all its dimensions has a positive effect on customer loyalty
Summary
The financial sector Consists of various institutions Where it includes the central bank, thirteen commercial banks, seven foreign commercial banks, three Jordanian Islamic banks, and a foreign Islamic bank, in addition to specialized credit institutions, exchange companies, and representative offices. Assets increased by 5.4%, and credit facilities and deposits grew by 3.7% and 4.3%, respectively (Central Bank of Jordan & Association of banks in Jordan, 2019).This statistics indicates that the banking sector enjoys a large market share in terms of assets, facilities and deposits, which requires continuous improvement and development in banking services to gain a competitive advantage reflected in customer satisfaction and loyalty. The banking departments should provide banking services characterized by innovation and diversification. These services should be in line with the desires of customers or even exceed their expectations. This study highlights a pressing topic in the banking industry
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