Will Users Continue Using Banking Chatbots? The Moderating Role of Perceived Risk

Abstract

AI-powered chatbots have become game-changers for the financial industry. They enable banks to boost customer engagement and improve operational efficiency by lowering the traditional cost of customer support. This study analyses the impact of perceived service quality dimensions on user confirmation, satisfaction and use continuance. The present study also analyses the moderating effect of perceived risk on the relationship between user confirmation, satisfaction and chatbots use continuance. A total of 447 customers, all residing in the Indian city of Bengaluru and having recently used banking chatbot services, were surveyed. Partial least squares structural equation modelling is used to examine the relationships between the variables used in the study. Findings from the study show that all five chatbot service quality dimensions (reliability, interactivity, assurance, responsiveness and understandability) significantly impact the user’s post-use confirmation, influencing their satisfaction and continuance behaviour. Perceived risk negatively moderates the relationship between user confirmation and user satisfaction. Chatbot service developers and e-service providers can leverage these findings to understand user expectations from chatbots. They will also be helpful to other service sectors, such as insurance, travel and tourism, hospitality and healthcare.