The Effect of Perceived Risk and Customer Experience on Loyalty Intention for Mobile Banking: The Moderating Role of Customer Satisfaction

Abstract

In the banking industry, providing a range of conventional and high-tech services is crucial to ensure customer satisfaction. One area that requires attention is mobile banking services, which need to offer an engaging experience to keep customers satisfied and loyal. However, empirically, the evidence regarding the impact of the role of mobile banking customer satisfaction on loyalty intention seems to leave room for improvement. Research indicates that customer experience and the risks involved can have a significant impact on consumer satisfaction and loyalty intention. The study is conducted using explanatory research methodology, employing a quantitative approach and adhering to the positivist paradigm. This methodology aims to elucidate the causal relationship between variables, both through direct and indirect means. The research data was analyzed using PLS-SEM, which stands for Partial Least Square Structural Equation Method. The findings indicate that perceived risk has a detrimental influence on customer satisfaction, whereas customer experience has a beneficial effect. Research has demonstrated that customer satisfaction has a clear and substantial impact on the intention of customers to remain loyal. While all indirect links are supported, it is not possible to establish a direct relationship between perceived risk and customer experience on loyalty intention. The significance of customer satisfaction lies in its ability to connect perceived risk and customer experience results with loyalty intention. This study explores the implications for literature and management about mobile banking applications and the integration of perceived risk and customer experience in shaping customer satisfaction and loyalty in the banking sector. These advancements emphasize the significance of excellent customer experiences in enhancing customer happiness and loyalty. Companies must enhance client experience and strive to surpass expectations. Gaining a comprehensive understanding of the concept of "customer satisfaction" and its role as a mediator can help marketing and customer relationship management strategies effectively retain and attract customers.