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Performance of E-Banking and the Mediating Effect of Customer Satisfaction: A Structural Equation Model Approach

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  • Mohammed Arshad Khan

    (Department of Accountancy, College of Administrative and Financial Sciences, Saudi Electronic University, Riyadh 11673, Saudi Arabia)

  • Hamad A. Alhumoudi

    (Department of Accountancy, College of Administrative and Financial Sciences, Saudi Electronic University, Riyadh 11673, Saudi Arabia)

Abstract

Online payment is a trend that is gaining momentum globally. As a result of digitisation, the advent of online banking has increasingly made its way into the modern marketplace, serving not only customers but also corporations. The primary data were gathered from 287 participants. Stratified random sampling was used. Structure Equation Modelling (SEM), reliability, convergent, discriminate validity and model fitness were achieved through SmartPLS 3 (Christian M. Ringle, Germany). The findings reveal that efficiency, reliability and service quality have a significant direct effect on customer satisfaction and customer retention. It also shows the significant effect of efficiency, reliability and service quality when using customer satisfaction as a mediator for customer retention. It is possible that the data gathered may be valuable for both banks and enterprises interested in entering the Indian market. This research also specifies four main components of E-banking: efficiency, reliability, service quality and customer satisfaction.

Suggested Citation

  • Mohammed Arshad Khan & Hamad A. Alhumoudi, 2022. "Performance of E-Banking and the Mediating Effect of Customer Satisfaction: A Structural Equation Model Approach," Sustainability, MDPI, vol. 14(12), pages 1-12, June.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:12:p:7224-:d:837578
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    References listed on IDEAS

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    1. Tahir M. Nisar & Guru Prabhakar, 2017. "Exploring the key drivers behind the adoption of mobile banking services," Journal of Marketing Analytics, Palgrave Macmillan, vol. 5(3), pages 153-162, December.
    2. Kriti Priya Gupta & Rishi Manrai & Utkarsh Goel, 2021. "Analysing the factors that affect the adoption of payments bank services in India: an analytic hierarchy process approach," International Journal of Business Information Systems, Inderscience Enterprises Ltd, vol. 37(4), pages 522-543.
    3. Sufyan Habib & Nawaf N. Hamadneh & Mohammed Arshad Khan, 2021. "Influence of Electronic Word of Mouth (eWOM) and Relationship Marketing on Brand Resonance: A Mediation Analysis," Sustainability, MDPI, vol. 13(12), pages 1-15, June.
    4. Boyao Zhang & Ubaldo Comite & Ali Gokhan Yucel & Xintao Liu & Mohammed Arshad Khan & Shahid Husain & Muhammad Safdar Sial & József Popp & Judit Oláh, 2021. "Unleashing the Importance of TQM and Knowledge Management for Organizational Sustainability in the Age of Circular Economy," Sustainability, MDPI, vol. 13(20), pages 1-18, October.
    5. Vijayalakshmi Dharmavaram & Rajyalakshmi Nittala, 2018. "Service Quality and Customer Satisfaction in Online Banking," International Journal of Online Marketing (IJOM), IGI Global, vol. 8(2), pages 45-56, April.
    6. Mohammad Athar Ali & Asif Pervez & Rohit Bansal & Mohammed Arshad Khan & Stefan Cristian Gherghina, 2022. "Analyzing Performance of Banks in India: A Robust Regression Analysis Approach," Discrete Dynamics in Nature and Society, Hindawi, vol. 2022, pages 1-9, March.
    7. Minakshi Gupta & Kedar Bhatt, 2021. "A multidimensional measure of system quality - an empirical study in context of mobile banking apps in India," International Journal of Business Information Systems, Inderscience Enterprises Ltd, vol. 38(1), pages 1-16.
    8. Mohammed Arshad Khan & M. M. El-Dessoky, 2021. "Netizens’ Perspective towards Electronic Money and Its Essence in the Virtual Economy: An Empirical Analysis with Special Reference to Delhi-NCR, India," Complexity, Hindawi, vol. 2021, pages 1-18, November.
    9. Sindhu Singh & R. K. Srivastava, 2020. "Understanding the intention to use mobile banking by existing online banking customers: an empirical study," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 25(3), pages 86-96, December.
    10. Jianwen Zhang & Jacob Cherian & Ashak Mahmud Parvez & Sarminah Samad & Muhammad Safdar Sial & Mohammad Athar Ali & Mohammed Arshad Khan, 2022. "Consequences of Sustainable Agricultural Productivity, Renewable Energy, and Environmental Decay: Recent Evidence from ASEAN Countries," Sustainability, MDPI, vol. 14(6), pages 1-13, March.
    11. Sadia Khatoon & Xu Zhengliang & Hamid Hussain, 2020. "The Mediating Effect of Customer Satisfaction on the Relationship Between Electronic Banking Service Quality and Customer Purchase Intention: Evidence From the Qatar Banking Sector," SAGE Open, , vol. 10(2), pages 21582440209, June.
    12. Mital, Monika & Chang, Victor & Choudhary, Praveen & Papa, Armando & Pani, Ashis K., 2018. "Adoption of Internet of Things in India: A test of competing models using a structured equation modeling approach," Technological Forecasting and Social Change, Elsevier, vol. 136(C), pages 339-346.
    13. Qinghua Fu & Jacob Cherian & Khalil-ur Rehman & Sarminah Samad & Mohammed Arshad Khan & Mohammad Athar Ali & Laura Mariana Cismas & Andra Miculescu, 2022. "Enhancing Employee Creativity in the Banking Sector: A Transformational Leadership Framework," Sustainability, MDPI, vol. 14(8), pages 1-19, April.
    14. Mohammed Arshad Khan & Preeti Roy & Saif Siddiqui & Abdullah A. Alakkas & Baogui Xin, 2021. "Systemic Risk Assessment: Aggregated and Disaggregated Analysis on Selected Indian Banks," Complexity, Hindawi, vol. 2021, pages 1-14, July.
    15. Wang Hongxin & Mohammed Arshad Khan & Jian Zhenqiang & Laura-Mariana Cismaș & Mohammad Athar Ali & Usama Saleem & Lucia Negruț, 2022. "Unleashing the Role of CSR and Employees’ Pro-Environmental Behavior for Organizational Success: The Role of Connectedness to Nature," Sustainability, MDPI, vol. 14(6), pages 1-22, March.
    16. Ali Aljaafreh & Omar Al-Hujran & Ahmed Al-Ani & Mutaz M. Al-Debei & Nidal Al-Dmour, 2021. "Investigating the role of online initial trust in explaining the adoption intention of internet banking services," International Journal of Business Information Systems, Inderscience Enterprises Ltd, vol. 36(4), pages 474-505.
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    3. Sonia Ismat & Aziz Ullah & Muhammad Waqar & Muneera Qureshi & Hassan Nawaz & Kashif Lodhi, 2023. "Effects Of E-Banking On Consumer Satisfaction And Its Potential Challenges: A Case Of Private Banks In Punjab," Bulletin of Business and Economics (BBE), Research Foundation for Humanity (RFH), vol. 12(2), pages 381-388.
    4. Khuong Ngoc Mai & Do Hanh Nhan & Phuong Thi Minh Nguyen, 2023. "Empirical Study of Green Practices Fostering Customers’ Willingness to Consume via Customer Behaviors: The Case of Green Restaurants in Ho Chi Minh City of Vietnam," Sustainability, MDPI, vol. 15(5), pages 1-27, February.
    5. Violeta Neza & Edlira Llazo, 0000. "Consumer e-satisfaction through the use of e-services in the banking sector - changing consumer behavior ( Case study ? e-banking in Albania)," Proceedings of Economics and Finance Conferences 13815899, International Institute of Social and Economic Sciences.
    6. Mohammed Arshad Khan & Vivek & Syed Mohd Minhaj & Mohd Afzal Saifi & Shahid Alam & Asif Hasan, 2022. "Impact of Store Design and Atmosphere on Shoppers’ Purchase Decisions: An Empirical Study with Special Reference to Delhi-NCR," Sustainability, MDPI, vol. 15(1), pages 1-24, December.

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