Brand bank attachment to loyalty in digital banking services: mediated by psychological engagement with service platforms and moderated by platform types

ABSTRACT

Purpose>Various digital banking platforms (website and apps) are offered to bank customers in order to create an experiential service, which is essential in retaining customers and generating brand bank loyalty. The current study aims to examine the dynamics of customer emotional experience generated during digital banking service delivery and investigate the effect of customer psychological engagement with various digital platform types on brand bank loyalty creation.Design/methodology/approach>A conceptual framework was constructed. Data were collected from digital banking customers through a web-based survey conducted via an online Internet panel. It involved 502 participants. The study employs a path analysis method using structural equation modeling.Findings>The empirical results suggest that there are two paths from emotional attachment to bank loyalty a direct path and an indirect path shaped by customer psychological engagement with service platforms. Additionally, it was found that the digital platform (website vs apps) used by the customer determined the magnitude of the impact of emotional attachment to the bank on psychological engagement with service platforms.Practical implications>This research claims that features of digital banking services are sufficient to enhance affective brand responses and maintain long-lasting relationships with customers. Using experiential services and psychologically engaging the customers, this goal can be achieved. Additionally, well designed apps can improve interaction with services and subsequently enhance loyalty.Originality/value>This study facilitates a better understanding of the customer's emotional–psychological state during engagement with digital service delivery. Its novelty and contribution to the literature focus on the notion that the impact of emotional attachment on bank loyalty is mediated by experiential psychological engagement with the digital platform and moderated by the type of digital platform used.