Digital Banking Innovation, Digital

Banking Customer Satisfaction, Digital

Banking Customer Loyalty: An Emerging
Country Perspective
MUHAMMAD HAMZA TAJ
BSF1703956
UNIVERSITY OF EDUATION LAHORE, MULTAN CAPMUS
ABSTRACT

 Purpose - The purpose of this research is to find the impact of Digital Banking on
Customer Loyalty and how digitizing the banks can uplift the economy of
underdeveloped Countries.
 Methodology - The data was taken from the students. Regression was used to confirm
purposed Hypothesis
 Findings – Through our data we find that digital banking innovation is positively related
to customer loyalty and customer satisfaction play mediating role in it.
 Practical Implications – Our study helps the banking sector that they could engage with
more customers by bringing innovation in banking sector and also this research tells that
by giving good experience to customers they could become their loyal customers.
 Originality/Value – This is the primary research data and was never searched before and
it shows the relations of Digital Banking Innovation and Customer Loyalty.
INTRODUCTION

 Banks play a vital role in the growth of economy in every country. Banking
system was introduced a long time ago but it is getting better day by day.
 The role of mobile phones and computers cannot be ignored in the development
of digital banking.
 Our research indicated some variables which could be helpful in knowing the
customer needs.
 Our research indicated the relationship between Digital Banking Innovation and
Customer Loyalty and also indicated that customer satisfaction and Customer
Experience can work as Mediating and Moderating variables respectively.
THEORY: CUSTOMER
SATISFACTION THEORY.
 There is no universally accepted definition of customer satisfaction
(McCollough, 2000).
 Howard and Sheth (1969) define satisfaction as “the buyer’s
cognitive state of being adequately or inadequately rewarded for the
sacrifice he has undergone.”
 Engel and Blackwood (1982) see it as “an evaluation (cognitive)
that the chosen alternative is consistent with prior beliefs with
respect to that alternative.”
HYPOTHESIS

 Hypothesis 1: Banking Innovation is positively related to customer Loyalty.

 Hypothesis 2: Banking Innovation is positively related to Customer Satisfaction.

Hypothesis 3: Customer Satisfaction is positively related to Customer Loyalty.


Hypothesis 4: Customer Experience has a Moderating effect on Banking Innovation and
Customer Satisfaction.

Hypothesis 5: Customer Experience is positively related to Customer Loyalty.
METHOD AND RESULT

 Population : This data was collected from the students of

Universities of Multan.
 Sample size : The sample size of this study is 203
 Correlations : Results showed that Digital Banking Innovation DBI
(β = .474. t = 8.443. p = .000) was positively related to Customer
Loyalty CL (Hypothesis 1 is Accepted). CS (β = .403. t = 6.448 p
= .000) was positively related to CL (Hypothesis 3 is Accepted).
CONCLUSION

 The primary focus of this research was Innovation in banking sector

and how digitizing the banks can create loyalty in customer through
good experience.
 To answer this question students were asked several questions and
the data was arranged through SPSS software and we find helpful
information related to our research.