Skip Navigation Links.
Collapse <span class="m110 colortj mt20 fontw700">Volume 12 (2024)</span>Volume 12 (2024)
Collapse <span class="m110 colortj mt20 fontw700">Volume 11 (2023)</span>Volume 11 (2023)
Collapse <span class="m110 colortj mt20 fontw700">Volume 10 (2022)</span>Volume 10 (2022)
Collapse <span class="m110 colortj mt20 fontw700">Volume 9 (2021)</span>Volume 9 (2021)
Collapse <span class="m110 colortj mt20 fontw700">Volume 8 (2020)</span>Volume 8 (2020)
Collapse <span class="m110 colortj mt20 fontw700">Volume 7 (2019)</span>Volume 7 (2019)
Collapse <span class="m110 colortj mt20 fontw700">Volume 6 (2018)</span>Volume 6 (2018)
Collapse <span class="m110 colortj mt20 fontw700">Volume 5 (2017)</span>Volume 5 (2017)
Collapse <span class="m110 colortj mt20 fontw700">Volume 4 (2016)</span>Volume 4 (2016)
Collapse <span class="m110 colortj mt20 fontw700">Volume 3 (2015)</span>Volume 3 (2015)
Collapse <span class="m110 colortj mt20 fontw700">Volume 2 (2014)</span>Volume 2 (2014)
Collapse <span class="m110 colortj mt20 fontw700">Volume 1 (2013)</span>Volume 1 (2013)
Journal of Business and Management Sciences. 2022, 10(2), 70-79
DOI: 10.12691/JBMS-10-2-3
Original Research

The Impact of Internet Banking at Times of Pandemic; Customer Experience, Satisfaction, Trust, Loyalty, E-service Quality and Bank’s Financial Performance; An Application on Egyptian Public Banks

Dalia El Mosallamy1, and Madiha Metawie1, 2

1Faculty of Business Administration, Economics and Political Science, British University, Egypt

2Business Department, Faculty of Commerce, Ain Shams University, Cairo, Egypt

Pub. Date: March 27, 2022
Full Text PDF

Cite this paper

Dalia El Mosallamy and Madiha Metawie. The Impact of Internet Banking at Times of Pandemic; Customer Experience, Satisfaction, Trust, Loyalty, E-service Quality and Bank’s Financial Performance; An Application on Egyptian Public Banks. Journal of Business and Management Sciences. 2022; 10(2):70-79. doi: 10.12691/JBMS-10-2-3

Abstract

The purpose of this study is to examine the impact of Internet banking on customer experience, satisfaction, trust, loyalty, E-service quality and financial performance in Egyptian public banks. This study concentrates on public bank’s customers in Egypt as a developing nation in the Middle East, which limits the generalizations of the paper findings to other banks globally. However, the fact that all banks faced similar challenges at times of pandemics and typically adopt common standards in bank financial management implies that the findings are potentially robust for global bank management. Structural Equation Modelling was applied to examine the research hypotheses. There was an evidence of a significant relationship between customer experience and loyalty, which is related to financial performance in Egyptian public banks. The study confirmed the importance of studying consumer behaviour, for the purpose of improving customer services in the banking industry which could have valuable implications for internet banking, bank marketing services, and might positively impact bank financial performance.

Keywords

e-service quality, bank trust, customer experience, customer satisfaction, customer loyalty, and financial performance

Copyright

Creative CommonsThis work is licensed under a Creative Commons Attribution 4.0 International License. To view a copy of this license, visit http://creativecommons.org/licenses/by/4.0/

References

[1]  Shannak, R.O., “Key issues in e-banking strengths and weaknesses: the case of two Jordanian banks”. European Scientific Journal, Vol.9(7), pp. 239-263, 2013.
 
[2]  Ismail, LB. and Alawamleh, M, “The impact of online banking on customer satisfaction in Jordan.” Journal of Organizational studies and Innovation, Vol.4, No.2, pp. 1-13, 2017.
 
[3]  AFI-Egypt report (2020). “Financial Inclusion through Internet financial services and FinTech: the case of Egypt.” Available at https://www.afi-global.org/sites/default/files/publications/2020-08/AFI_Egypt_Report_AW_Internet.pdf.
 
[4]  World Bank report, Available at https://www.euromoney.com/article/b1511t0mrsk6pr/egypt-seeks-financialinclusion-with-a-Internet-revolution., 2018.
 
[5]  Ramaswamy, Shubhange. Patil, Yashwant S. and Kalkar, Parag, “Adapting Digital Banking Services during Covid-19 Pandemic: A Study on Customer Experiences in Selected District of Maharashtra State, India”, International Journal of Electrical Engineering and Technology (IJEET), Volume 12, Issue 5, pp. 8-17, May 2021.
 
[6]  Baldwin, R. and Mauro, B. W. D, Economics in the Time of COVID-19, CEPR Press, 2020.
 
[7]  Auer, R. Cornelli, G. and Frost, J, “Covid-19, cash, and the future of payments”. BIS Bulletins, Bank for International Settlements, 2020.
 
[8]  Kolodinsky, J.M., Hogarth, J.M. and Hilgert, M.A, “The Adoption of Electronic Banking Technologies by US Consumers”, International Journal of Bank Marketing, Vol.22, No.4, pp. 233-241, 2014.
 
[9]  Dinh V, Le U, Le P, “Measuring the Impacts of Internet Banking to Bank Performance: Evidence from Vietnam”, Journal of Internet Banking and Commerce, Vol.20, pp.103, 2015.
 
[10]  Onay, C., &Ozsoz, E, “The impact of Internet-banking on brick and mortar branches: The case of Turkey”, Journal of Financial Services Research, 44(2), 187-204, 2013.
 
[11]  Bani, Loiy Ismail and Alawamleh, Mohammad, “The Impact of Online Banking of Customer Satisfaction in Jordan”, Journal of Organisational Studies and Innovation, Vol. 4, no.2, Summer, pp. 1-13, 2017.
 
[12]  Chukwu, Kenechukwu Origin; Chimarume Blessing Ubah & Ezeaku Chisom Njideka, “Electronic Payment System and Customer Satisfaction in Nigerian Banking System”, International Journal of Scientific and Management Research, 04(05), 30-48, 2021.
 
[13]  Sathiyavany, N. Shivany, SO, “Internet banking Service Qualities, E-Customer Satisfaction, and e-Loyalty: A conceptual Model”, The International Journal of Social Sciences and Humanities Invention, 5(06): 4808-4819, 2018.
 
[14]  Worku G1, Tilahun A1 and Tafa MA, “The Impact of Electronic Banking on Customers’ Satisfaction in Ethiopian Banking Industry (The Case of Customers of Dashen and Wogagen Banks in Gondar City)”, Journal of Business Financial Affairs, Volume 5 Issue 2, 2016.
 
[15]  Mbama, Cajetan, “Digital banking, customer experience and bank financial performance: UK customers' perceptions”, International Journal of Bank Marketing, Vol. 36 (2), 230-255, 2018.
 
[16]  Amin, M., Isa, Z. and Fontaine, R, “Islamic banks: contrasting the drivers of customer satisfaction on image, trust, and loyalty of Muslim and non-Muslim customers in Malaysia”, International Journal of Bank Marketing, Vol. 31 No. 2, pp. 79-97, 2013.
 
[17]  Mouawad, M., Kleiner, B, “New developments in customer service training,” Managing Service Quality, Vol. 6 No.2, pp.49-56, 1996.
 
[18]  Verhoef, P., Lemon, K., Parasuraman, A., Roggeveen, A., Tsiros, M. and Schlesinger, L, “Customer Experience Creation: Determinants, Dynamics and Management Strategies”, Journal of Retailing, Vol.85 No.1, pp.31-41, 2009.
 
[19]  Klaus, P. and Maklan, S, “Towards a Better Measure of Customer Experience”, International Journal of Market Research, Vol.55 No.2, pp.227-246, 2013.
 
[20]  Reichheld, F.F., Markey, R.G. Jr and Hopton, C, “The Loyalty Effect - The Relationship between Loyalty and Profits”, European Business Journal, Vol.12 No.3, pp.134-139, 2000.
 
[21]  Klaus, Philipp and Maklan, Stan, “EXQ: a multiple-item scale for assessing service experience”, Journal of Service Management, Vol. 23 No. 1, 2012, pp. 5-33, 2012.
 
[22]  Parasuraman, A., Zeithaml, V.A. and Berry, L.L, “SERVQUAL: a multiple-item scale for measuring service quality”, Journal of Retailing, Vol. 64 No. 1, pp. 12-40, 1988.
 
[23]  Ladhari, R., Ladhari, L. and Morales, M, “Bank service quality: comparing Canadian and Tunisian customer perceptions”, International Journal of Bank Marketing, Vol. 29 No. 3, pp. 224-246, 2011.
 
[24]  Narteh, B, “Service quality and customer satisfaction in Ghanaian retail banks: the moderating role of price”, International Journal of Bank Marketing, Vol. 36 No. 1, pp. 68-88, 2018.
 
[25]  Buttle, F, “SERVQUAL: review, critique and research agenda”, European Journal of Marketing, Vol. 30 No. 1, pp. 8-32, 1996.
 
[26]  Al-Hawari, M. and Ward, T, “The effect of automated service quality on Australian banks’ financial performance and the mediating role of customer satisfaction”, Marketing Intelligence & Planning, Vol. 24 No. 2, pp. 127-47, 2006.
 
[27]  Parasuraman, A., Zeithaml, V.A. and Malhotra, A, “E-S-QUAL: a multiple-item scale for assessing electronic service quality”, Journal of Service Research, Vol. 7 No. 3, pp. 213-33, 2005.
 
[28]  Mayer, R.C., Davis, J.H. and Schoorman, F.D, “An integrative model of organizational trust”, Academy of Management Review, Vol. 20 No. 3, pp. 709-734, 1995.
 
[29]  Chaudhuri, A. and Holbrook, M.B, “The chain of effects from brand trust and brand affect to brand performance: the role of brand loyalty”, Journal of Marketing, Vol. 65 No. 2, pp. 81-93, 2001.
 
[30]  Saha, P. and Zhao, Y., Relationship between online service quality and customer satisfaction. Lulea University of technology, Lulea, 2005.
 
[31]  Kotler, P. and Keller, K.L, Marketing Management, 14th ed., Pearson Education, Upper Saddle River, NJ, 2013.
 
[32]  Eid, R, “Integrating Muslim customer perceived value, satisfaction, loyalty and retention in the tourism industry: an empirical study”, International Journal of Tourism Research, Vol. 17 No. 1, pp. 249-260, 2015.
 
[33]  Kundu, S., & Datta, S. K, “Impact of trust on the relationship of e-service quality and customer satisfaction, EuroMed Journal of Business, 10(1), 21-46, 2015.
 
[34]  Caruana, A., Money, A.H. and Berthon, P.R, “Service quality and satisfaction – the moderating role of value”, European Journal of Marketing, Vol. 34 Nos 11/12, pp. 1338-1353, 2000.
 
[35]  Baumann, C., Hamin, H. and Tung, R.L, “Share of wallet in retail banking”, International Journal of Bank Marketing, Vol. 30 No. 2, pp. 88-101, 2012.
 
[36]  Tabrani, M., Amin, M. and Nizam, A, “Trust, commitment, customer intimacy and customer loyalty in Islamic banking relationships”, International Journal of Bank Marketing, Vol. 36 No. 5, pp. 823-848, 2018.
 
[37]  Jiang, X., Jiang, F., Cai, X. and Liu, H, “How does trust affect alliance performance? The mediating role of resource sharing”, Industrial Marketing Management, Vol. 45 No. 1, pp. 128-138, 2015.
 
[38]  Bloemer, J., Brijs, T., Swinnen, G. and Vanhoof, K, “Identifying latently dissatisfied customers and measures for dissatisfaction management”, The International Journal of Bank Marketing, Vol. 20 No. 1, pp. 27-37, 2002.
 
[39]  Szymanski, D.M. and Henard, D.H, “Consumer satisfaction: a meta-analysis of the empirical evidence”, Journal of the Academy of Marketing Science, Vol. 29 No. 1, pp. 16-35, 2001.
 
[40]  Hennig-Thurau, T., Gwinner, K.P. and Gremier, D.D, “Understanding relationship marketing outcomes: an integration of relational benefits and relationship quality”, Journal of Service Research, Vol. 4 No. 3, pp. 230-47, 2002.
 
[41]  Deschamps J.P. and P. Ranganath Nayak, Product juggernauts: How companies mobilize to generate a stream of market winners, Harvard Business School Press, 1995.
 
[42]  Bloemer, J., Ruyter, K. and Peeters, P, “Investigating the drivers of bank loyalty: the complex relationship between image, service quality and satisfaction”, International Journal of Bank Marketing, Vol. 16 No. 7, pp. 276-286, 1998.
 
[43]  Heffernan, T., O’Neil, G., Travaglione, T. and Droulers, M, “Relationship marketing: the impact of emotional intelligence and trust on bank performance”, International Journal of Bank Marketing, Vol. 26 No. 3, pp. 183-199, 2008.
 
[44]  Duncan, E. and Elliot, G, “Customer service quality and financial performance among Australian retail financial institutions”, Journal of Financial Services Marketing, Vol. 7 No. 1, pp. 25-41, 2002.
 
[45]  Boonlertvanich, K, “Service quality, satisfaction, trust, and loyalty: the moderating role of mainbank and wealth status”, International Journal of Bank Marketing, Vol. 37 No. 1, pp. 278-302, 2019.
 
[46]  Sahi, G.K., Sekhon, H.S. and Quareshi, T.K, “Role of trusting beliefs in predicting purchase intentions”, International Journal of Retail & Distribution Management, Vol. 44 No. 8, pp. 860-880, 2016.
 
[47]  Swoboda, B., Berg, B., Schramm-Klein, H. and Foscht, T, “The importance of retail brand equity and store accessibility for store loyalty in local competition”, Journal of Retailing and Consumer Services, Vol. 20 No. 3, pp. 251-262, 2013.
 
[48]  Jarvenpaa, S.L., Tractinsky, N. and Vitale, M, “Consumer trust in an internet store”, Information and Technology Management, Vol. 1, pp. 45-71, 2000.
 
[49]  Chaudhry, I.G., Abbas, Q., Awan, T.M. and Ghafoor, A. (2009), “Trust, satisfaction and E-Loyalty in Pakistan’s electronic commerce”, in the e-CASE 2019 – International Conference on e-Commerce, e-Administration, e-Society, and e-Education, Singapore.
 
[50]  Nazari, T., Dehnavi, H. and Nayebzada, S, “Explaining the Barriers and Approaches of E-Banking Extension; Case Study: Melli Bank in Iran”. Journal of Basic Applied Scientific Research, Vol.3(5), pp.726-736, 2013.
 
[51]  Rotchanakitumnuai, S. and Speece, M, “Barriers to Internet banking adoption: a qualitative study among corporate customers in Thailand”, International Journal of Bank Marketing, Vol. 21, No. 6/7, pp. 312-323, 2003.
 
[52]  Al-Samadi and Al-Wabal, “The Impact of E-Banking on the Profitability of Banks: A Study of Pakistani Banks”, Journal of Public Administration and Governance, July 2011.
 
[53]  Malhotra P, Singh B, “The impact of internet banking on bank performance and risk: The Indian experience.” Eurasian Journal of Business and Economics, Vol.2, pp. 43-62, 2009.
 
[54]  Khrawish, H. A.; Al-Sa'di, N. M, “The impact of e-banking on bank profitability: evidence from Jordan.” Middle Eastern Finance and Economics, Vol. 13, pp. 142-158, 2011.
 
[55]  DeYoung R, Duffy DJ, “The challenges facing community banks: In their own words”, Economic Perspectives, 4th Quarter, 2002.
 
[56]  Siddik, M, and Sun, G, “Impacts of e-banking on performance of banks in a developing economy: empirical evidence from Bangladesh”, Journal of Business Economics and Management, Volume 17(6): 1066-1080, 2016.
 
[57]  DeYoung R, Lang WW, Nolle DL, “How the internet affects output and performance at community bank”, Journal of Banking and Finance, Vol.31, pp. 1033-1060, 2007.
 
[58]  Yang, S., Li, Z., Ma, Y., and Chen X, “Does Electronic Banking Really Improve Bank Performance? Evidence in China”, International Journal of Economics and Finance, Vol. 10, No. 2, pp. 82-94, 2018.
 
[59]  Furst K., Lang W., Nolle D, “Internet banking”, Journal of Financial Services Research, Vol.22, pp. 95-117, 2002.
 
[60]  Ghosh, Manimay, “Measuring electronic service quality in India using E-S-QUAL”, International Journal of Quality & Reliability Management, Vol. 35 No. 2, pp. 430-445, 2018.
 
[61]  Li, F., Zhou, N., Kashyap, R. and Yang, Z, “Brand trust as second-order factor: an alternative measurement model”, The Market Research Society, Vol. 50 No. 6, pp. 817-839, 2008.
 
[62]  Kant Rishi and Jaiswal, Deepak, “The impact of perceived service quality dimensions on customer satisfaction, An empirical study on public sector banks in India” International Journal of Bank Marketing, Vol. 35 No. 3, pp. 411-430, 2017.
 
[63]  Hoq, M.Z. and Amin, M, “The role of customer satisfaction to enhance customer loyalty”, African Journal of Business Management, Vol. 4 No. 12, pp. 2385-2392, 2010.
 
[64]  Zeithaml, V.A., Berry, L.L. and Parasuraman, A, “The behavioural consequences of service quality”, The Journal of Marketing, Vol. 60 No. 2, pp. 31-46, 1996.
 
[65]  Ehigie, Osayawe, “Correlates of customer loyalty to their bank: a case study in Nigeria Benjamin”, International Journal of Bank Marketing, Vol. 24 No. 7, pp. 494-508, 2006.
 
[66]  Mbama, Cajetan Ikechukwu, Ezepue, Patrick, Alboul, Lyuba and Beer, Martin, “Digital banking, customer experience and financial performance UK bank managers’ perceptions”, Journal of Research in Interactive Marketing, Vol. 12 No. 4, 2018, pp. 432-451, 2018.
 
[67]  Tavakol M, Dennick R, “Making sense of Cronbach's alpha. Int J Med Educ., 53-55, 2011.
 
[68]  Bollen, Kenneth A, Structural equations with latent variables. New York: Wiley, 1989. ISBN 0-471-01171-1. OCLC 18834634.
 
[69]  Özkan, Pınar and Süer, Seda, “The effect of service quality and customer satisfaction on customer loyalty The mediation of perceived value of services, corporate image, and corporate reputation”, International Journal of Bank Marketing, Vol. 38, no. 2, pp. 384-405, 2019.
 
[70]  Makanyeza, Charles and Chikazhe, Lovemore, “Mediators of the relationship between service quality and customer loyalty Evidence from the banking sector in Zimbabwe”, International Journal of Bank Marketing, Vol. 35 No. 3. pp. 540-556, 2017.
 
[71]  Kaur, Navneet and Kiran, Ravi, “E-Banking Service Quality and Customer Loyalty: Changing Dynamics of Public, Private and Foreign Bank Consumers in India”, Global Business and Management Research: An International Journal, Vol. 7, No. 1, 2015.
 
[72]  Ramirez, Richard Huaman and Merunka, Dwight, “Brand experience effects on brand attachment: the role of brand trust, age, and income”, European Business Review, Vol. 31 No. 5, 2019 pp. 610-645, 2018.
 
[73]  Hernando I, Nieto MJ, “Is the Internet delivery channel changing banks’ performance? The case of Spanish banks.’’ Journal of Banking and Finance, Vol.31, pp. 1083-1099, 2007.
 
[74]  Kline, R.B. Principles and Practice of Structural Equation Modeling (3rd ed.). New York, NY, The Guilford Press, 2010.