Examining the Factors Effecting the Young Consumers' Self-Service Internet Banking Satisfaction and Loyalty

Abstract

Advancement of technology has transformed the nature of interaction between service providing companies and their customers to other level. Through time, banks all over the world has started offering technology based self-service banking services such as internet banking, mobile banking and ATM banking services. Technology based self-service banking system is a beneficial platform for both banks and their customers. The aim of this study to investigate the significant relationship between young customers' perceived reliability on banks' service quality and related risks which in turn affects their level of satisfaction and loyalty in the self-service internet banking industry. The data were collected through survey method targeting young individuals who are using internet banking services. A total of 312 survey responses were used in this study. The questionnaires were distributed using convenience sampling system. And the collected data were analyzed using structural equation model (SEM). The results indicate that perceive reliability of self-service internet banking has significant positive impact on both service quality and customer satisfaction whereas perceived risk has complete negative relation with all variables except customer loyalty (no significant relation found). In addition service quality has strong effect on customer loyalty. The study stresses the significance of self-service service quality and young customers' reliability on banks' self-service internet banking system and suggests not ignoring in considering the value of risk and advises practitioners to really understand their impact on young customer satisfaction and loyalty. © Peter Lang GmbH Internationaler Verlag der Wissenschaften Berlin 2022.