The Impact of Digital Service Quality Dimensions on Customer Satisfaction and Customer Loyalty of Digital Banking in Sri Lanka

Abstract

Digital banking is one of the major services introduced by the banking sector recently to improve the satisfaction level and the loyalty of the customers by providing more efficient and comfortable services. However, sufficient evidence is not available on whether the digital banking quality dimensions improve customer satisfaction and loyalty. Therefore, this study attempted to explore how digital banking service quality dimensions affect customer satisfaction and loyalty. The study was positivistic, and a deductive approach was deployed. Moreover, a multi-stage systematic random sampling technique was used as the sampling technique. The data were collected from the 300 customers who are using digital banking services (Sampath -Vishva digital banking service) in Sampath Bank, Galle Branch. Data were collected by conducting face-to- face interviews using a structured questionnaire and analyzed using SPSS software. Results revealed that digital banking quality factors such as tangibility, responsiveness, privacy, and system availability are the factors that most affected the satisfaction level of the customers who are using digital banking. Accordingly, it was concluded that customer satisfaction is needed to create customer loyalty. Moreover, it was concluded that digital quality dimension cannot directly impact on customer loyalty. Empirical evidence helped to understand the importance of service quality dimensions of digital banking. These findings will help policy makers and financial institutions to develop quality dimensions to improve customer satisfaction and to expand customer retention in the banking sector.