Citation

Hay, Grace Ning Shuang and Goh, Mei Ling (2026) To Leave or Retain? a Study on Digital Banking Services. In: Intelligent Governance in the Big Data Era. Springer Science and Business Media Deutschland GmbH, pp. 309-319. ISBN 978-3-032-14697-7, 978-3-032-14698-4

Text To Leave or Retain_ a Study on Digital Banking Services _ Springer Nature Link.pdf - Published Version Restricted to Repository staff only Download (842kB)

Abstract

The rapid adoption of digital banking, driven by the widespread use of mobile devices as commercial tools, has transformed the financial services landscape. However, a critical challenge persists: many customers remain uncertain about their satisfaction with digital banking services and their subsequent retention decisions. Understanding how service quality influences customer satisfaction and retention is therefore essential for banks to maintain competitiveness in this evolving market. This study investigates the impact of six key service quality dimensions—ease of use, efficiency, privacy/security, responsiveness, reliability, and price—on customer satisfaction and retention intention among digital banking users in Malaysia. Data was collected through 200 questionnaires distributed via convenience sampling and analyzed using Partial Least Squares Structural Equation Modeling (PLS-SEM). The measurement model demonstrated strong psychometric properties. Convergent validity was established, with all constructs explaining over 50% of the variance (AVE > 0.50) and showing significant intercorrelations. Composite reliability scores (0.88–0.952) confirmed excellent internal consistency, while discriminant validity tests HTMT ratio verified that all constructs were distinct and met the required thresholds. The structural model revealed three significant predictors of customer satisfaction: responsiveness (β = 2.566), reliability (β = 3.518), and price (β = 2.750). Notably, reliability emerged as the strongest determinant of satisfaction. In contrast, ease of use, efficiency, and privacy/security showed no statistically significant effects. These findings provide valuable insights for banks to prioritize specific service quality improvements that directly enhance customer satisfaction and retention in the digital banking sector.

Item Type:	Book Section
Uncontrolled Keywords:	Digital banking, Service quality
Subjects:	H Social Sciences > HF Commerce > HF5001-6182 Business > HF5546-5548.6 Office management > HF5548.32-.34 Electronic commerce
Divisions:	Faculty of Business (FOB)
Depositing User:	Ms Rosnani Abd Wahab
Date Deposited:	05 Jun 2026 03:55
Last Modified:	08 Jun 2026 09:16
URII:	http://shdl.mmu.edu.my/id/eprint/16001

Downloads

Edit (login required)