Dimensionality of Customers’ Loyalty towards Digital Banking Services in Calabar Metropolis
A Principal Component Analysis
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Abstract
This study investigated the key dimensions influencing customer loyalty towards digital banking services in Calabar Metropolis, in response to the growing prominence of digital banking in Nigeria. Using a cross-sectional survey design, data were gathered from 366 digital banking users selected through purposive sampling across major commercial banks. Principal Component Analysis (PCA) revealed six core dimensions of customer loyalty: customer satisfaction, digital banking value proposition, perceived service quality, digital banking excellence, holistic digital banking experience, and customer-centric digital banking. These findings highlight the pivotal role of reliability, trust, convenience, innovation, and personalized service delivery in cultivating loyalty among digital banking users. The study’s implications suggest that financial institutions must invest in consistent service quality, adopt technological innovations, and implement user-focused strategies to enhance customer retention. Strengthening these loyalty drivers can provide a competitive edge in Nigeria’s evolving digital financial landscape. The study recommends broader research at the national level to validate these findings across different regions and enhance their applicability.
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