The impact of service quality dimensions on customer satisfaction in the digital banking sector

The digital banking sector has experienced unprecedented growth in recent years, fundamentally transforming how customers interact with financial institutions. This study investigates the relationship between service quality dimensions and customer satisfaction in digital banking platforms. Drawing on the SERVQUAL model and extending it to the digital context, this research examines five core dimensions: reliability, responsiveness, assurance, empathy, and tangibles, along with two additional dimensions specific to digital banking: security and convenience. Using a quantitative research approach, data was collected from 450 digital banking users across multiple banks through a structured questionnaire. The study employs Structural Equation Modeling (SEM) to analyze the relationships between service quality dimensions and customer satisfaction. Results indicate that security, reliability, and convenience are the most significant predictors of customer satisfaction in digital banking, collectively explaining 68% of the variance. Responsiveness and assurance also demonstrate positive significant relationships, while the impact of empathy and tangibles shows moderate influence. The findings reveal that customers prioritize functional aspects of digital banking services over relational elements, contrasting with traditional banking environments. Furthermore, the study identifies that customer satisfaction significantly mediates the relationship between service quality and customer loyalty, with satisfied customers demonstrating higher retention rates and positive word-of-mouth behavior. This research contributes to the theoretical understanding of service quality in digital contexts and provides practical implications for banking institutions seeking to enhance their digital service offerings. The study recommends that banks invest in robust security infrastructure, ensure system reliability, and optimize user interface design to improve customer satisfaction. These findings offer valuable insights for bank managers, digital strategists, and policymakers in developing customer-centric digital banking solutions that foster long-term competitive advantage in an increasingly digital financial landscape.