Impact of e-banking service quality on e-loyalty in pandemic times through interplay of e-satisfaction

Abstract

Purpose

This study aims to empirically explore e-banking service quality and its impact on the e-banking loyalty through a mediating impact of e-banking satisfaction. The account holders of three domestic systemically important banks of Pakistan were surveyed during COVID-19 to examine the electronic services provided by these banks.

Design/methodology/approach

The data was collected through an adapted questionnaire by using emails and messaging applications. The database of a local marketing company in Pakistan was used, and 976 responses were included in the analysis. The structured equation modeling was used to test the propositions of study.

Findings

The findings delineate that reliability and website design proved to increase e-banking loyalty, particularly during COVID-19. The link between e-banking privacy and security and e-banking loyalty was proved as fully mediated by e-banking satisfaction; however, indirect effect of the reliability and website design with e-banking loyalty was partially mediated.

Practical implications

In strategic planning of e-banking mechanisms and the associated consumer behavior, the results of this study can be helpful for policymakers. In case of similar epidemics and natural calamities, consumers may depict similar behavior as shown during the lockdown and social distancing during COVID-19; hence, the study can help regulatory bodies in preparing their safety roadmap.

Originality/value

The mediating effect of e-banking satisfaction between privacy & Security and e-banking loyalty implies that customer give importance to secure e-banking platforms. There can be a variation in their loyalty because of privacy concerns. The application of cognitive–motivational–relational (CMR) theory in a relationship between e-banking service quality and e-banking loyalty with a mediating role of satisfaction is an emotional response to capture the behavioral changes during COVID-19. It enables researchers to understand the CMR theory concerning COVID-19 and e-banking perspective.