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Personal touch or convenient tech? An investigation of customer channel preferences in retail banking
Journal article   Peer reviewed

Personal touch or convenient tech? An investigation of customer channel preferences in retail banking

M. Ayyagari and S.K. Parahoo
International Journal of Financial Services Management, Vol.9(2)
2018
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Abstract

In a highly competitive sector like banking, services are provided through multiple channels (e.g. branch services, online, smartphones, and ATMs) to meet varied customer preferences. Despite the recognised importance of these different channels, few studies have investigated the relative contribution each channel makes to customer satisfaction and to relationship continuity. The objective of the present exploratory study is therefore to examine the relative impact of three factors (ATM, face-to-face interaction and tangibles) as independent constructs on customer satisfaction and customer relationship continuity intention. Using a sample of 152 banking customers in Dubai, the study unearthed an important finding that interaction with the customer service representatives (CSRs) was the key determinant of customer satisfaction and continuity intention, while ATMs and branch tangibles did not have a significant effect on these two outcomes. Therefore, the role of CSR is paramount for banks in satisfying and retaining customers. Implications for theory and practice are discussed, and directions for further research are charted out.

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