Online Banking Service Quality and E-Customer Loyalty in South Asia-Nepal

What is it about?

The study investigates the relationship between online banking service practices, e-customer satisfaction, and e-customer loyalty in Nepalese Commercial Bank. It uses the E-S-QUAL model to measure online banking service quality (OBSQL) and a structured questionnaire for primary data collection. SPSS and AMOS are used for data analysis. The results indicate that website design, user-friendliness, security, and privacy significantly impact e-customer satisfaction and loyalty. Banks should focus on improving website design, security, and privacy to enhance customer satisfaction and loyalty. The study also highlights the importance of e-satisfaction as a mediator between online banking service practices and e-customer loyalty.

Featured Image

Why is it important?

This research is important for several reasons: It investigates the relationship between online banking service practices, e-customer satisfaction, and e-customer loyalty, providing insights into how banks can improve their services to enhance customer satisfaction and loyalty. It helps banks and financial institutions understand the impact of various aspects of online banking service quality on customer satisfaction and loyalty, allowing them to prioritize and focus their efforts on the most influential factors. It contributes to the body of knowledge on e-customer satisfaction and loyalty in the context of developing countries, particularly in South Asia, where online banking services are rapidly becoming more popular. Key Takeaways: 1. Efficiency of the website and e-customer service are highly influential dimensions of online banking service practices, followed by user-friendliness, security, and privacy, and the organization's site. 2. E-customer satisfaction significantly influences e-customer loyalty. 3. E-satisfaction mediates the association between online banking services and e-customer loyalty. 4. Banks should focus on improving website design, user-friendliness, security, and privacy to enhance customer satisfaction and loyalty. 5. Strategically raising customer awareness of the acceptability of online banking systems can help increase customer trust and confidence in internet banking services.