IMPACT OF INTERNET BANKING SERVICE QUALITY ON CUSTOMER SATISFACTION AND LOYALTY

Abstract

Internet banking is a new sort of information technology that allows clients to conduct financial transactions from anywhere and at any time. Globally, the shift from conventional banking to digital banking commenced about two decades back. However, this adoption rate was not at a considerable rate for Sri Lanka. But, during Covid-19 pandemic situation, there was a significant development in this adoption rate in Sri Lanka too. The main objective of this study is to identify the impact of internet banking service quality on customer satisfaction and loyalty. Under modified e-SERVQUAL model, impact of six main factors were considered namely, Efficiency, Personal Needs, Reliability, Responsiveness, Site Organisation and User Friendliness. The impact of e-customer satisfaction on e-customer loyalty was also analysed. Primary data were collected through a questionnaire from 463 internet banking users in Western province. SPSS 29.0 statistical package was used to analyse data, and correlation and regression analysis were used to examine the direct impact of independent variables on dependent variables. According to the results, effect of Efficiency, Personal Needs, Responsiveness, Site Organisation and User Friendliness were significant and had positive relationship with e-customer satisfaction. Further, e-customer satisfaction showed a strong positive correlation with e-customer loyalty. Findings of this study proposes how to improve customer satisfaction and loyalty of Internet banking services in Sri Lanka.