Does usage level of online services matter to customers’ bank loyalty?

Purpose – This paper aims to evaluate the relationship between the customer’s relative usage levels of online banking services and bank loyalty, and to examine the effect of customer satisfaction with the quality of online banking services and services’ convenience in this relationship. This study proposes a conceptual framework, integrating these factors. Design/methodology/approach – Data were collected from among traditional banks’ customers. The study uses a factor analysis method following path analysis, using AMOS 19 and structural equation modeling. Findings – The findings show a significant, direct and negative relationship between the relative usage level of online banking services and bank loyalty. However, a positive relationship was found to exist between bank loyalty and customer satisfaction with online service quality. An indirect positive relationship was also found to exist between services’ convenience through satisfaction with online banking service quality. Practical implications – The findings advance the idea that computer technology mediation reduces human interaction, and so may detract from customer loyalty. Service policy makers should invest in relation-based attachments with their online customers, enhance satisfaction with online quality service and sustain customer loyalty. Originality/value – Examination of the effect of variables related to online bank services usage and bank loyalty. This study contributes more value by understanding the effect of customers’ usage level of online services.