An Empirical Analysis of E-Banking Services and their Impact on Customer Satisfaction and Loyalty: Evidence from Islamic Banks in Nigeria

Abstract

This study investigates the influence of electronic banking (e-banking) services on customer satisfaction and loyalty within the Islamic banking sector, with a specific focus on Jaiz Bank and Taj Bank in Nigeria. A cross-sectional survey was conducted with 384 customers, and the data were analyzed using Partial Least Squares Structural Equation Modelling (PLS-SEM). The findings reveal that e-banking services have a significant and strong positive impact on both customer satisfaction (path coefficient = 0.951) and customer loyalty (path coefficient = 0.965). The model explains a substantial proportion of the variance in satisfaction (R² = 0.905) and loyalty (R² = 0.931), underscoring the critical role of digital service quality. The study concludes that Islamic banks must prioritize investment in robust, secure, and Shariah-compliant e-banking platforms to enhance customer retention and competitive advantage. Future research should broaden the geographic scope and investigate additional factors, such as regulatory frameworks and specific technology adoption barriers.