Digital banking, customer experience and bank financial performance

Digital banking, customer experience and bank financial performance PurposeThe purpose of this paper is to examine customers’ perceptions of digital banking (DB), customer experience, satisfaction, loyalty and financial performance (FP) in UK banks.Design/methodology/approachThe research consists of a survey of UK bank customers’ perceptions of the above themes; use of banks’ financial reports to obtain FP ratios; multivariate factor analysis; structural equation modelling; and analysis of variance tests to explore research hypotheses on the relationships among the study factors.FindingsThe main factors which determine customer experience in DB are service quality, functional quality, perceived value (PV), employee-customer engagement, perceived usability and perceived risk. There is a significant relationship among customer experience, satisfaction and loyalty, which is related to FP.Research limitations/implicationsThis study concentrates on UK bank customers which limits its generalisability to other banks globally. However, the fact that banks typically adopt common standards in bank financial management implies that the findings are potentially robust for global bank management. Replicating the study in banks in other countries will further enhance this robustness.Practical implicationsSome significant effects of customer characteristics on the study factors were observed, which have useful implications for DB, bank marketing services and bank FP.Originality/valueUnlike previous studies, this study uses both Net Promoter Score and financial ratios as dependent variables, to provide a combined study of the relationships among 14 study factors, with implications for bank marketing and FP. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png International Journal of Bank Marketing Emerald Publishing

Digital banking, customer experience and bank financial performance

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Publisher
Emerald Group Publishing Limited
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0265-2323
D.O.I.
10.1108/IJBM-11-2016-0181
Publisher site
See Article on Publisher Site

Abstract

PurposeThe purpose of this paper is to examine customers’ perceptions of digital banking (DB), customer experience, satisfaction, loyalty and financial performance (FP) in UK banks.Design/methodology/approachThe research consists of a survey of UK bank customers’ perceptions of the above themes; use of banks’ financial reports to obtain FP ratios; multivariate factor analysis; structural equation modelling; and analysis of variance tests to explore research hypotheses on the relationships among the study factors.FindingsThe main factors which determine customer experience in DB are service quality, functional quality, perceived value (PV), employee-customer engagement, perceived usability and perceived risk. There is a significant relationship among customer experience, satisfaction and loyalty, which is related to FP.Research limitations/implicationsThis study concentrates on UK bank customers which limits its generalisability to other banks globally. However, the fact that banks typically adopt common standards in bank financial management implies that the findings are potentially robust for global bank management. Replicating the study in banks in other countries will further enhance this robustness.Practical implicationsSome significant effects of customer characteristics on the study factors were observed, which have useful implications for DB, bank marketing services and bank FP.Originality/valueUnlike previous studies, this study uses both Net Promoter Score and financial ratios as dependent variables, to provide a combined study of the relationships among 14 study factors, with implications for bank marketing and FP.

Journal

International Journal of Bank MarketingEmerald Publishing

Published: Apr 3, 2018

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