Digital banking, customer experience and financial performance

Abstract

This study aims to examine managers’ perceptions of digital banking’s (DB) effect on customer experience and banks’ financial performance. The research uses interviews from the senior UK bank managers to gather their views on DB’s impact on customer experience and financial performance. The interviews were thematically analysed to produce results and a model. The attributes affecting DB experience are as follows: service quality, functional quality, perceived value, service customisation, service speed, employee–customer engagement, brand trust, DB innovation, perceived usability and perceived risk. They affect customer experience, satisfaction and loyalty and financial performance. The research revealed relationships amongst these attributes (e.g. brand trust and loyalty). The study is a UK bank specific and can be replicated in other developed countries’ banks, helping in further comparison. However, DB is conducted globally, which implies that the findings are robust enough to be potentially applied in other countries. The proposed model shows customer experience drivers and outcomes through managers’ views, which can be theoretically tested. The findings suggest important attributes (as above) for consideration to improve DB customer experience and financial performance. They show the relevance of employee–customer interaction, service personalisation, value proposition, quality service offering and DB experience, which have useful implications for improving DB design and interactive marketing. Gauging DB customer experience as perceived by bank managers has not been studied in this way, highlighting DB effectiveness, which is important for multi-channel marketing and banks’ financial performance, and advances theory.