E-banking quality and customer loyalty: The mediating role of customer satisfaction

Abstract

Attaining customer satisfaction and loyalty is seen as a prerequisite for successful bank management. The purpose of the study is to identify and explain the mechanism through which e-banking quality is related to loyalty by including satisfaction as a mediating variable in South Africa. The study adopts a descriptive research design and a quantitative mediation analysis. The data collected through SurveyMonkey comprised a sample of 310 participants who used online banking. The results of the mediation analysis confirm that e-banking quality has a considerable and positive effect on customer satisfaction, which in turn has a significant and positive effect on loyalty in e-banking. The direct effect of e-banking quality on loyalty is also confirmed. Furthermore, the study’s findings show that the quality of e-banking has a significant and favorable indirect effect on loyalty, as mediated by customer satisfaction. Because the direct effect of e-banking quality on loyalty remained significant after the satisfaction intervention/mediation in the model, the mediation is regarded as partial. The findings of this study offer essential marketing guidance for banking professionals who design and implement e-banking solutions for their customers.