Customer Loyalty in Mobile Banking : findings from the millennial generation

Abstract: The purpose of this study is to investigate and explain the underlying factors that contribute to the creation of loyalty within the area of mobile banking, and their relative importance. The study is limited to the Swedish market and members of the millennial generation. To acquire the wanted primary data, this study adopted a survey strategy, where responses from 153 current and former university students were collected. Following the survey, an exploratory factor analysis was conducted, and ultimately a multiple linear regression analysis to reveal what factors that predicts loyalty. Findings show that Relationship Quality (Commitment/Satisfaction/ Trust) has a positive impact on mobile banking loyalty and is thestrongest determinant. A lower level of Perceived Risk also has a positive impact on mobile banking loyalty. A Net Promotor Score of 1.4 percent indicate low loyalty among millennial mobile banking customers. This study contributes to the bank marketing theory by being one of the first studies that investigate which factors that directly influence loyalty among mobile banking customers. Since millennials is the next working generation it is crucial for banks to understand how loyalty in this generation is created. As the study is focused on Swedish millennials, applicability to the general population is limited.