Customer loyalty towards online banking in Malta

Abstract

Internet banking is becoming increasingly significant. This is because most people are now making use of the internet as their main channel when interacting with their bank. Thus, this may create both possibilities and risks to the bank. It became important for banks to adapt to this new technology in order for them to build and retain loyal customers. One of the challenges faced by online banks is service quality. Therefore, when a bank provides its customers with good quality service it will gain customer trust, which will lead to customer satisfaction and loyalty. Banks providing online banking should, continuously strive to add or improve their online services. The purpose of this dissertation is to get a better understanding of customers' loyalty towards online banking in Malta. This was mainly attained through interviews with two banks in Malta that offer online banking and through questionnaires, which were conducted to investigate online customer loyalty. In conclusion of this study, one can say that online customer loyalty is essential for banks to withstand stiff competition. Both, bank representatives mentioned that customer loyalty is important. From, the questionnaires conducted most of the customers seem to be satisfied with their bank online services and do not plan to change supplier. These customers are considered to be loyal towards their online bank.