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Customers’ dissatisfaction with banking channels and their intention to leave banks: The moderating effect of trust and trusting beliefs

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  • Sertan Kabadayi

    (Fordham University)

Abstract

Banks have the challenging task of managing customer experience across many traditional and technological channels in today’s financial services world. Recent studies and anecdotal evidence suggest that many customers are dissatisfied with their experiences across channels that are supposed to provide a seamless experience. This customer dissatisfaction potentially diminishes a financial service organization’s customer base, and requires the firm to rely on a more fickle customer mix and erodes its reputation. This paper investigates the relationship between individuals’ dissatisfaction with their primary bank channel and their intention to leave their bank in the future. The first study examines individuals’ overall trust in their bank as a potential moderator in the relationship that reduces customers’ likelihood to leave the bank even though they are dissatisfied with a particular banking channel. The second study goes one step further and examines the effect of three trusting beliefs about the bank potentially held by the customer: competence, integrity, and benevolence beliefs. Findings indicate that when customers have a high level of trust in their banks, they are less likely to leave their banks even though they are dissatisfied with their primary banking channel. Furthermore, while competence and benevolence beliefs about the bank have a similar moderating effect, integrity beliefs do not.

Suggested Citation

  • Sertan Kabadayi, 2016. "Customers’ dissatisfaction with banking channels and their intention to leave banks: The moderating effect of trust and trusting beliefs," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 21(3), pages 194-208, September.
    • Handle: RePEc:pal:jofsma:v:21:y:2016:i:3:d:10.1057_s41264-016-0005-2
    DOI: 10.1057/s41264-016-0005-2
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    References listed on IDEAS

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    Cited by:

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    2. Mirza Ashfaq Ahmed & Riffat Zulfiqar & Muhammad Anwar ul Haq & Noreena Kausar & Shaista Khalid, 2020. "Customer Purchase Intentions toward Islamic Banking Products in Pakistan: A Study of Religiosity-Based Marketing," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 10(10), pages 1187-1202, October.
    3. Mark Ojeme & Ogechi Adeola, 2023. "The relationship between business and bank: the role of perceived injustice in complaint behaviour," Journal of Financial Services Marketing, Palgrave Macmillan, vol. 28(2), pages 396-409, June.
    4. Ishfaq Ahmed & Waqas Farooq & Tariq Iqbal Khan, 2021. "Customers’ Perceptions and their Responses to Objectives of Islamic Banks – A Three-Wave Investigation," Asian Economic and Financial Review, Asian Economic and Social Society, vol. 11(1), pages 43-56, January.
    5. Mohamed Albaity & Mahfuzur Rahman, 2021. "Customer Loyalty towards Islamic Banks: The Mediating Role of Trust and Attitude," Sustainability, MDPI, vol. 13(19), pages 1-19, September.
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    7. Svenja Damberg & Manfred Schwaiger & Christian M. Ringle, 2022. "What’s important for relationship management? The mediating roles of relational trust and satisfaction for loyalty of cooperative banks’ customers," Journal of Marketing Analytics, Palgrave Macmillan, vol. 10(1), pages 3-18, March.

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