Impact of Digital Evolution on Customer Relationship Strategies in the Banking Sector

Abstract

Digital evolution in the banking sector refers to the integration and development of digital innovations, such as internet banking, mobile applications, AI, and data analytics in banking operations and customer service measures. The research examines the influence of digital development on customer interaction strategies in the banking sector. As banks increasingly adopt digital tools to meet customer expectations for convenience and personalized services, the dynamics of customer relationships are changing. The study purpose is to understand how digital transformation influences customer engagement, satisfaction, loyalty and challenges banks face in maintaining personalized interactions in a digital environment. The study looks into a number of factors, including digital engagement, customer satisfaction, service personalization, customer loyalty, service accessibility, trust and security. The study involves 600 banking customers filling out a questionnaire after being informed about the purpose of the survey. SPSS was employed to conduct various statistics tests such as, pearson correlation, chi square, and t-test the obtain data and variables. The result indicates a positive correlation between the adoption of digital banking solutions and increased customer engagement. Research results underscore the importance of continued investment in a digital technologies to maintain a competitive edge in the banking industry. Banks that effectively integrate digital tools into their customer relationship management practices are better positioned to evolving requirement of customers, leading to improved satisfaction and loyalty.