Technology-Based Self-Service Banking Quality Dimensions, Customer Satisfaction, and Loyalty

Abstract

Technology enabled automated banking is referred to as technology-based self-service banking (TBSSB). This paper probes the relationship between TBSSB service quality, customer satisfaction and loyalty. The EFA and CFA identify and confirm the structure constituting of four factors of TBSSB service quality (Convenience, Reliability and Security, Responsiveness, and Personalization), one factor of customer satisfaction, and one factor of loyalty. The model is empirically tested for reliability and validity. AMOS is used to investigate the relationship amid dimensions using SEM. It is found that convenience and personalization have a significant effect on customer satisfaction, and personalization and customer satisfaction have a significant effect on loyalty. The two structural models (partially and fully mediated) are also developed and compared. Customer satisfaction is confirmed as a mediating factor. The study presents managerial implications covering useful insights about the TBSSB factors that need to be focused on for increasing customer satisfaction and loyalty.