Does e-banking services quality affect e-customer loyalty of Islamic banks?

Abstract

E-banking has evolved into one of the essential banking services that, when properly implemented, can increase customer loyalty while also providing banks with a competitive advantage and sustaining in the market. With rising competition for better services and new Shariah compliance requirements, the Islamic banking sector is expected to provide a higher standard of quality service in online banking. However, Islamic banks disregard their physical existence, location, and technological infrastructure when providing customer services. The present study aims to determine the relationship between e-banking service quality and e-customer loyalty based on CRM theory. A convenience sample of 145 university students who use Islamic banks’ online services was selected. An online survey was administered to a select group of respondents at several prominent Islamic banks in Selangor. The conceptual model was validated using SPSS, with descriptive, Pearson correlation and multivariate linear regressions evaluated. The e-service quality dimensions investigated are security and privacy, efficiency, responsiveness and communication, site organisation, and an analysis of the significant effects of these dimensions on e-customer loyalty. The findings reveal that each dimension of e-banking service quality has a positive and significant impact on e-consumer loyalty. Additionally, service quality is critical in every society since it has formed the foundation for customers to understand, interact and intepret the function of Islamic banks’ online services.