Mobile Banking Service Quality and Customer Retention among Commercial Banks’ Customers: An Empirical Evidence from Southeast Nigeria

Abstract

In the era of a cashless economy, customers now emphasize banking services that are convenient, reliable and responsive. Mobile banking (m-banking) is among the latest in a series of recent mobile technological wonders. This research is aimed at investigating the effect of mobile banking service quality on customer retention among commercial banks customers in Southeast, Nigeria. The study examined the effect of reliability, responsiveness, information quality, privacy issues and system quality on customer retention. The study used an explanatory research design method using quantitative approach. The sample, consisting of 400 respondents was drawn from a cross-section of commercial banks customers with mobile banking access in Southeast Nigeria. From the 400 copies of questionnaire distributed 395 were returned valid and useful for the final analysis study used Pearson’s Correlation Coefficient to measure the relationship between mobile banking service quality and customer retention. Then regression analysis was used to estimate the cause-and-effect relationship between the variables of the mobile banking service quality and customer retention. The result showed that a positive effect for responsiveness, systems quality, and information quality on customer retention while privacy and reliability of mobile banking service quality was not significant. Among all, responsiveness, system quality and information quality have a significant effect on customer retention while reliability and privacy issues do not affect customer retention in mobile services. Therefore, to increase customer retention, the bank management should implement programs that support awareness creation, customer satisfaction, brand image and reputation by continuously assessing the service quality and delivery of mobile banking services provided to their customers, and also provide an adequate set of security components of mobile banking that protects customer’s bank details from fraud.