Development of the Digital Banking Customer Retention Model (DBCRM) through the Evaluation of Service Dimensions: The Case Study of Lloyds Bank, United Kingdom

Abstract

Technology is a change agent in the banking industry in order to transition conventional banking towards digital banking. To be successful in digital banking, both positive and negative effects need to be studied. Furthermore, significant dimensions need to be identified to provide better digital services and to retain customers. Nine digital banking effects: accessibility, usefulness, ease of use, availability, efficiency & effectiveness, reliability, responsiveness, cost effectiveness and security have been discussed from the customer satisfaction, loyalty and retention perspectives by reviewing the existing literatures. To collect the data, to apply and test how these service dimensions, particularly, impact customer retention, customers of Lloyds bank plc in the United Kingdom have been selected. Data analysis using Binary Logistic Regression has resulted key factors: less cost-effectiveness, less availability, less accessibility and less security which impact customer switching intention in Lloyd’s bank. Therefore, Digital Banking Customer Retention Model (DBCRM) was introduced with the appropriate recommendations to enhance the customer retention.