What Keeps the E-banking Customer Loyal? a Multigroup Analysis of the Moderating Role of Consumer Characteristics on E-loyalty in the Financial Service Industry

At first sight the Internet imposes the ideal medium for carrying out banking activities, due to its cost savings potentials and speed of information transmission. From a technological and cost-driven standpoint it may seem quite logical for banks to shift as many banking activities online as possible. At the same time, the question of how to retain customers' loyalty arises when the relationship between the bank and the user becomes a virtual one. This paper investigates the importance of antecedents of online loyalty such as trust, quality of the Web site, quality of the service and overall satisfaction. Rather than investigating which factors drive customers to use online banking instead of offline banking, this paper addresses the problem of how to keep customers online and loyal to a specific supplier. A survey with more than 2,000 customers of an Austrian online bank was conducted and a structural equation modeling approach was used to gain important insights on how customer retention in the online banking business can be assured. Satisfaction and trust were identified as important antecedents of loyalty. Additionally, the moderating role of consumer characteristics (gender, age, involvement, perceived risk and technophobia) was supported by the data.