Personal Internet Banking Customer Loyalty Factors Research

With the improving of the internet using environment, the booming of the e-business market and the full opening of the financial industry, online banking, across financial industry and e-commerce, has become the strong weapon for domestic banks and foreign banks to compete in China. China's personal online banking is still on the early stage of development and has possessed its own customers. Then, it should consider how to retain these customers and encourage them to persuade others to use the online banking. As a newly emerging service channel, we doubted whether the degree of e-banking's integration with traditional channels would affect the consumption experience of customers. In addition, would online banking, also as the product of the internet age, gain some benefits from helping other companies of e-business make online payments?This paper attempted to find out the factor affecting the customer loyalty to personal online banking, to study on the impact of service quality and product category of online banking and its cooperation with offline banking and other companies of e-business on these antecedent factors, and to build a customer loyalty model for personal online banking.Firstly, the literature review on personal online banking showed previous researches had focused on introduction stage of online banking and less emphasized on customer retaining, focused on service of online banking itself and less emphasized on the relationship between it and its related entities. Then, we reviewed mature concepts as service quality, customer satisfaction, switching costs and customer loyalty, involved in this study.Secondly, the model was tested through empirical study, demonstrating that customer satisfaction and switching costs would have significant influences on customer loyalty, as well as online-banking's service quality, product integration, integration with offline banking on satisfaction and product integration and alliance with other e-business companies on switching costs.Last, according to the results of the empirical study, we suggested that China's personal online banking should combine the service quality improvement with the product development and integrate with offline banks as well. Thus, they would retain their customers. We also tried to analyze the reason why the online banking's alliance with other companies of e-business didn't significantly influence customer perceived switching costs.