Digital banking, customer experience and financial performance

Abstract

Purpose -The study examines managers' perceptions of digital banking's effect on customer experience and banks' financial performance.Design/methodology/approach -The research uses interviews from senior UK Bank managers to gather their views on digital banking impact on customer experience and financial performance. The interviews were thematically analysed to produce results and a model. Findings -The attributes affecting digital banking experience are: service quality, functional quality, perceived value, service customisation, service speed, employee-customer engagement, brand trust, digital banking innovation, perceived usability and perceived risk. They affect customer experience, satisfaction and loyalty, and financial performance. The research revealed relationships amongst these attributes (e.g. brand trust and loyalty).Research limitations/Implications -The study is UK bank specific and can be replicated in other developed countries' banks, helping in further comparison. However, digital banking is conducted globally, which implies that the findings are robust enough to be potentially applied in other countries. The proposed model shows customer experience drivers and outcomes through managers' views, which can be theoretically tested.Practical implications -The findings suggest important attributes (as above) for consideration to improve digital banking customer experience and financial performance. They show the relevance of employee-customer interaction, service personalisation, value proposition, quality service offering and digital banking experience, which have useful implications for improving digital banking design and interactive marketing.Originality/value -Gauging digital banking customer experience as perceived by bank managers has not been studied in this way, highlighting digital banking effectiveness, which is important for multi-channel marketing and banks' financial performance, and advances theory.

Effects of Utilitarian and Hedonic Emotion on the Use of Online Banking Services

“…For consumers, these services are provided with no restrictions in terms of time and locality, which leads to reductions in time and costs. Online banking, therefore, is an imperative technology to retain key customers for banks under such intensified business competition nowadays (Laukkanen, 2016;Mbama, Ezepue, Alboul, & Beer, 2018).…”

Estimation of Maximum Potential Losses for Digital Banking Transaction Risks Using the Extreme Value-at-Risks Method

“…In general, digital banking is an operating model based on a technology platform for exchanging information and conducting transactions between banks and customers. This process is carried out through digital devices connected to computer software in an internet environment (Mbama et al 2018).…”

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“…Por lo tanto, un banco debería concentrarse en crear experiencias positivas en los factores que afectan directamente a los comportamientos discrecionales (Wasan, 2018). La parte neural de la gestión de la experiencia del cliente se ha atribuido a intensificar la relación entre empresas y clientes; en el sector de servicios, se ha podido evidenciar aún más por la fuerza de la interacción que exige la banca (Mbama et al, 2018).…”