Digital Service Quality as a Driver of Satisfaction and Loyalty in Mobile Banking: Insights from Pakistan

Abstract

The rapid growth of mobile banking technology has intensified competition, underscoring service quality (SQ) as a critical factor in consumer performance. This study examines the relationship between digital banking SQ, e-customer satisfaction (E-CSAT), and e-customer loyalty (E-CLOY) within Pakistan's financial sector. Using the E-S-QUAL theory, the research analyzes five MBSQ dimensions: Website Efficiency, Responsiveness, Convenience, User-Friendliness, and Security & Privacy. A quantitative study collected data from 279 mobile banking users via non-probability purposive sampling. Data analysis using PLS-SEM confirmed that all five MBSQ dimensions favorably and significantly affect both E-CSAT and E-CLOY. Crucially, E-CSAT positively impacts E-CLOY, serving as a key driver of customer retention. The findings provide clear guidance for enhancing digital service strategies in developing markets.