Electronic Banking Services And Customers Loyalty

Heightened competition in the banking sector has paved the way for the introduction of many innovations such as electronic banking.Even though the introduction of electronic banking by banks in Libya has resulted in the flexibility of banking operations,it remains unclear how the application of electronic banking service quality impacts customer loyalty.There have also been general observations that quality service leads to customer loyalty.On this premise,the current study,therefore,explores the relationship between electronic banking service quality and customer loyalty,and further assesses the mediating role of customer satisfaction,and moderate the role of high-quality services and the demographic factor on the relationship.A positivist research paradigm was adopted together with a survey strategy.A quantitative approach was also adopted and questionnaires were utilized as the data collection instrument in this study.Items used in the questionnaire were developed from existing scales.Data were conveniently gathered from 440 bank customers in Tripoli and Benghazi,who are actively using electronic banking services.Out of this,the process of data screening and cleaning yielded 431 usable questionnaires which were coded using the Statistical Package for Social Sciences(SPSS).The data was analyzed using Structural Equation Modelling(SEM),where the two-stage approach was used in assessing the measurement model and structural model.The results of the analysis indicated that there is a direct and positive relationship between electronic banking service quality and customer loyalty.The results showed the moderating effect of quality service on the relationships between Electronic banking service and customer loyalty.As well there is a positive relationship between customer satisfaction level and customer loyalty and this relationship is moderated by the age factor.Also,there is a positive relationship between customer satisfaction level and customer loyalty,and that this relationship is moderated by the education and professional factor and there is no significant moderation influence of gender factor on the relationship between Customer Satisfaction on Customer Loyalty of commercial banks in Libya.Thus electronic banking service quality does result in customer loyalty via customer satisfaction,implying that when banks direct their electronic banking service efforts towards the creation of customer satisfaction,the outcome of customer loyalty can be achieved.As a result of the findings of this study,it is recommended that managers of banks in trying to have loyal customers should design the electronic banking service to enhance customer satisfaction.