The Rapid Growth of Digital Banking Services on Customer Behaviour and Satisfaction in South Africa

1.1 Literature considerations

Scholars believe that in the global banking sector, the progress of technology and the digital transformation of banking companies have become the main development trends [10]. Along with altering consumers’ financial service experiences, digital banking services – including online banking transactions, mobile apps, self-service terminals, and artificial intelligence-driven customer services – have fundamentally changed the competitive landscape of the banking sector. Maintaining a competitive advantage and sustained development depend primarily on customers’ happiness with banks. This increases client lifetime value and impacts direct customer retention, recommendation behaviour, and the likelihood of effective cross-selling.

Thus, there is considerable practical relevance in researching how digital banking services impact client satisfaction [11]. Globally, the encouragement of digital banking solutions has sped up considerably. Reports from 2022 indicate that over 360 million individuals worldwide have started using mobile devices or computers for online banking services, demonstrating the increasing usage of digital banking services [12]. Furthermore, changes in consumer requirements, technological advancements, and pressure from competitors encourage the digital transformation of established banks. One of the primary measures of a bank’s success is customer satisfaction, which is directly related to customer loyalty and the bank’s market share.

Consequently, analysing the link between digital banking services and customer satisfaction enables banks to assess present service performance and direct their future product development and improvement strategy. Many consumers began using online and mobile banking services during the outbreak; a poll revealed that more than 70% of bank clients had increased their use of digital channels for transactions. The challenges encountered by customers in the previous year led to a significant increase in digital appointment scheduling, with 2.6 million individuals planning both in-person and virtual consultations, reflecting a 14% year-over-year growth. Since April 2020, 25% of traffic to the financial centre has been attributed to the company’s bank due to adopting digital banking features [13].

Furthermore, worldwide e-commerce revenues are anticipated to attain $6.4 trillion by 2025, mostly propelled by mobile and social commerce. Digital advertising expenditures are anticipated to exceed $500 billion, with certain forecasts estimating they might reach $1.1 trillion by 2030. Moreover, it is anticipated that more than 50% of substantial transactions would transpire via digital self-service channels. The expansion and widespread acceptance of the internet and online technologies in recent decades have created several opportunities for corporate digitalization and the development of new digital business models [14].

Consequently, enterprises globally are undergoing transformation and reorganization due to the emergence of the Fourth Industrial Revolution (4IR), with banks also being affected. Banking consumer services, including those provided through digital channels such as websites, Internet banking portals, and smartphone applications, are becoming progressively more dependent on technology. Banks may forfeit the value advantages provided by conventional in-person interactions, due to traditional business strategies that require clients to visit a bank office [5].

Furthermore, the distinctive attributes of digital services suggest that customer evaluation techniques differ from those employed in the assessment of tangible products [15]. Consequently, organizations are recognizing that the intangible elements of relationships fostered through digital channels and services are not simply replicated by competitors, thereby offering a sustained competitive advantage [16]. In banking consumer services, value outcomes – actual and perceived – serve as fundamental foundations for the establishment of the firm [5].

A business strategy that addresses varied human traits and values via digital channels is crucial in digitalizing a bank’s customer services [5]. This observation suggests that digital technologies are fundamentally transforming the global banking sector by obscuring the conventional distinctions of product, market, and customer base [17], thus liberating and harmonizing financial systems worldwide [18].

Consequently, in the context of extensive structural transformation and technical advancement, banks often respond to the evolving competitive landscape by pursuing diversification, vertical product differentiation, and consolidation [19]. In some cases, new technology and services may pose a danger to entirely supplant traditional banks. Internet or digital-only banks provide alternative methods for online transactions and banking by offering services solely through online platforms (websites) or smartphone applications, thereby contesting conventional banking models by obviating the necessity for physical bank branches.

Technology has fundamentally transformed the creation, delivery, reception, and utilization of financial products [17], with convenience and economic efficiency positively influencing consumers’ intentions to adopt and continue using international digital-only banks [20]. In light of this and the emergence of the Fourth Industrial Revolution, conventional banks may face heightened challenges in expanding and maintaining their customer base while simultaneously catering to the diverse expectations of consumers through the digitalization of services [21]. The ongoing implementation of novel offline, online, and mobile value-added services is essential for customer pleasure, retention, and perhaps business continuity [19].

The fast advancement of technology necessitates the judicious selection of digital platforms and tools to facilitate extensive user adoption, acceptability, and overall success [14]. Nonetheless, an intrinsic risk exists, particularly from a cyber and information security standpoint, when using new technology or solutions. As early adopters accept and mitigate this risk, further pressure may be exerted on competitors to conform [16]. As other important sector players implement analogous technology-first efforts, patterns may emerge, eventually shaping customer expectations.

Notwithstanding the previously mentioned perceived risks, digital-only banks disrupt the conventional banking sector by introducing innovative and cost-effective products, facilitated by reduced operational expenses through outsourcing to affiliates, such as supermarkets, that possess established infrastructure and extensive reach [5, 22]. Utilizing outsourcing for significant infrastructure enables the supply of bank accounts with minimal or no monthly maintenance expenses. Therefore, the emergence of these unforeseen entities in the financial services sector has established a “marketplace without limits” [23]. This indicates that non-traditional entities are progressively seeking new possibilities, allowing them to contest established firms and perpetually altering the landscape of financial services in South Africa [23].

Traditional banking business models, which primarily necessitate client visits to physical branches, are arguably facing challenges. However, due to the recent introduction of the digital-only banking concept in South Africa in 2019, there is a paucity of research literature on the subject from a South African viewpoint. To rectify this deficiency in the current South African research literature, we examine the South African banking sector and assess the developments in digital consumer services provided by a range of conventional, offline banks.

1.2 Global e-commerce

As reported in a LinkedIn post on digital marketing statistics, projected global e-commerce sales are anticipated to reach $6.4 trillion. This expansion is driven by rising internet usage and accelerated connection speeds, particularly in areas such as South Africa, where e-commerce is witnessing significant development.

According to Table 1, digital channels constitute a significant share of total advertising expenditure, with online spending surpassing $790 billion in 2024, as reported by DataReportal. Meanwhile, self-service channels tend to underscore the increasing inclination for easy and on-demand access to information and services [24]. The influence of social media remains a formidable element in digital marketing. In South Africa, individuals are progressively utilizing social media to investigate firms, highlighting the necessity for seamless interaction between social platforms and sales channels [4]. According to Shapo, almost 78% of customers indicate that social media posts affect their shopping decisions.

According to [4], AI-powered bots assess user behaviour instantaneously to enhance conversion rates. As a LinkedIn post on digital marketing data shows, a substantial share of e-commerce sales in 2025 is projected to originate from mobile devices and social media platforms. This underscores the necessity of enhancing online visibility for mobile consumers and utilizing social media for product identification and sales. According to a LinkedIn post on digital marketing data, 76% of mobile searchers in South Africa visit a local company within one day of their search [25]. According to SEO.com, 86% of firms utilize video as a marketing tool, with 92% deeming it a crucial component of their strategy [26].

2.1 Obstacles and prospects

Although South Africa’s digital ecosystem is replete with potential, obstacles remain. The digital gap persists as an obstacle, with rural regions behind metropolitan centres in terms of access and pricing. Cybersecurity dangers intensify with increasing dependence on digital platforms, requiring strong safeguards to preserve confidence [14]. Moreover, changing requirements need that organizations remain adaptable and compliant. South Africa’s digital evolution in 2025 highlights its durability and agility. With over 79% of the population online, a mobile-centric culture, and a flourishing social media landscape, the country has abundant opportunities for enterprises poised to innovate [20]. By adopting these trends and confronting the issues directly, companies may cultivate stronger connections, improve engagement, and attain enduring success in this continuously changing digital landscape.

Concurrent with the development of technologies such as artificial intelligence, big data analysis, blockchain, and cloud computing, established banks have been digitally transformed, generating research requirements for new digital banking models [8, 43]. Extensive technology businesses and fintech startups also provide innovative financial services, thereby creating direct competition for established banks and compelling them to pay more attention to digitizing consumer experiences and services if they want to remain competitive.

The foregoing statistics and trends suggest that the digital transformation of banking companies has become irreversible, as digital technology continues to evolve and consumer needs expand. However, the digital revolution in banking is more crucially related to client pleasure than technological progress. Eriksson von Allmen et al. [44] focused on educated and working women between 25 and 45 years old residing in the Bhilwara region of the research area, 86% used online banking services. The simplicity, dynamism, quick emergency assistance, and low cost of online banking services helped explain their great popularity.

Consumers also believe that Internet banking systems eradicate prejudice against the banks they use. However, e-banking services have several disadvantages, including high transaction volumes and consumer scepticism regarding the relevance of checks. Customer satisfaction is much influenced by dependability, management, responsiveness, and security. This study provides an insightful analysis of consumer satisfaction factors, offering banks guidance on enhancing their digital banking offerings.

Kotagiri [45] highlighted the significant influence of social media on banks, particularly in areas such as communication, marketing, publishing, and interaction. Local commercial banks in Malaysia engage with their clients on social media sites. In his case study of a commercial bank in the Mekong Delta (Vietnam), ref. [46] uncovered the elements influencing employee engagement and organisational loyalty. The study found, in decreasing order of importance, the following factors affecting the employee retention rate of current clients: pay, work characteristics, work environment, colleagues, and management. In all spheres, the location, degree of service quality, and financial success of a bank significantly affect the opinions of its customers.

Customers typically migrate when the earnings or interest rates that rival banks offer fall short. Likewise, consumers respond similarly to poor service quality and banks with just one branch or branches spread far from the city centre [47, 48]. The evaluation suggests that internet control may be facilitated with the assistance of the financial institution. Ethnic groups believe that the interaction between consumers and banks depends more on the human touch. However, people use web-based finance managers to save time, migrate from cash storage and withdrawal lines, and examine needs on financial institution pages without difficulty. For cash change, most people choose Google Pay.

At the core of online banking, trustworthy performance depends critically on happy consumers [49, 50]. George [51] claims that accessibility, privacy, customer value, trust, and attitude are strongly linked to consumer satisfaction with snapdeal.com in India and lazada.com in Thailand. Trust was crucial for Thai consumers’ sense of value and Indian customers’ level of happiness. Every factor correlates with satisfaction. Thais and Indians’ content speaks to most traits. Though trust and India are closely linked, privacy is not especially favourably associated with India.

Previously thought to be an excellent indicator of consumer loyalty, relationship marketing has been found to correlate positively with customer loyalty. This is so since different banks apply identical forgetting-to-know-customer techniques, while product customisation is rare. Consequently, relationship marketing appears uniform across all banks, and consumers may be unable to switch service providers based on this aspect. Customer relationship management is vital for satisfying consumers in related product and pricing sectors. Enaifoghe [8] claims that the quality of service is primarily influenced by the degree of enthusiasm and emotional reaction.

Furthermore, objective standards are essential for consumers’ intentions and emotions. In general, both directly and indirectly, emotional reactions have significant ramifications for customer intent. The general results of this study show that mediators between the impacts of quality of service on e-WOM and switching intent were consumer attitudes and emotional responses to happiness and excitement. Akintaro and Shonubi claim that a bank’s corporate governance practices help explain its financial success in 2019. Improving these qualities will also help a bank’s capital return. Key elements influencing corporate governance.

2.2 Digital statistics and utilization in South Africa 2025

South Africa’s digital ecosystem is poised for significant advancement into 2025, leveraging the progress of prior years and solidifying its status as a dynamic centre of connection and opportunity. Due to swift developments in internet accessibility, smartphone use, and social media participation, South Africa is set for another year of vigorous growth [52]. This blog article examines the most recent digital statistics and use patterns for our nation in 2025, providing insights into how these figures influence potential for both enterprises and individuals. Gratitude is extended to Meltwater and We Are Social for their essential contributions to the data behind this investigation. The proceeding section examine the principal trends shaping South Africa’s digital future.

2.3 Analysis of digital accessibility and infrastructure in South Africa 2025

As of January 2025, South Africa has 50.8 million internet users, resulting in an internet penetration rate of 78.9%. This is a substantial increase from 2024’s 74.7%, with an addition of 2.6 million people (+5.4%) over the previous year – approximately 7,123 new users entering the digital domain daily [53]. Despite this promising rise, almost 13.6 million South Africans – 21.1% of the population – remain unconnected, underscoring the ongoing struggle to close the digital divide. According to [52],

Internet speeds have experienced significant improvements. According to Ookla, median mobile internet download speeds attained 51.43 Mbps in early 2025, an increase of 1.72 Mbps (+3.5%) from 2024. Fixed internet speeds rose to 48.34 Mbps, reflecting a 6.0% rise over the prior year’s 45.62 Mbps [52]. These improvements indicate a developing digital ecosystem, allowing businesses to offer enhanced online content and seamless user experiences.

2.4 Trends and statistics of social media usage in South Africa 2025

As of January 2025, South Africa’s social media environment is flourishing, with 26.7 million active user accounts, representing 41.5% of the population. This indicates an increase of 700,000 users (+2.7%) since early 2024, maintaining the rising trend observed in prior years [53]. Among persons aged 18 and older, 59.9% engage in social media, with a nearly equal gender distribution: 48.7% female and 51.3% male. Significantly, 52.6% of the internet user demographic interacts with at least one platform, underscoring the essential significance of social media in everyday digital existence [53].

2.5 Factors influencing customers’ adoption of digital banking

Numerous research studies have investigated the factors influencing consumers’ acceptance of digital banking products [54–57]. Alalwan et al. (2016) found that customers’ intention to use digital banking is mainly determined by perceived utility, simplicity of usage, and trust. Furthermore, demographic elements like age, education, and income impact consumers’ behaviour towards digital banking [58]. Digital banking has changed consumers’ channels of choice. The Technology Acceptance Model (TAM) has been utilized to examine customers’ intentions to transition from conventional banking channels to digital platforms.

Research by [59] has shown that the perceived value and ease of use significantly influence consumers’ propensity to move to digital channels. The convenience and accessibility of digital banking are among the most often mentioned benefits. Consumers value the ability to handle banking tasks anywhere and at any time. Studies by [60] show a favourable link between consumer happiness and the convenience of digital banking. Although digital banking offers convenience, concerns have been raised about the quality of customer care and support. Research by [61] indicates that consumers’ satisfaction levels are greatly influenced by how responsive they perceive digital banking systems to be.

Security issues significantly impact customer satisfaction with digital banking. Customers’ trust in digital banking services was much influenced by their view of the security policies in place [62]. Digital banking systems can offer tailored discounts and loyalty programs to enhance consumer engagement and loyalty. Studies by highlighted the effectiveness of loyalty programs in retaining customers and increasing satisfaction levels.

The factors influencing digital banking enable one to better manage client connections through data analytics and tailored services. Studies by [63] highlight how tailored services enhance consumer retention and satisfaction. Alalwan et al. [64] examined the factors driving Jordanians’ inclination to use mobile banking. According to the study, customers’ inclination to utilise mobile banking services was much impacted by perceived usefulness, simplicity of use, trust, and perceived security. The study emphasized the importance of robust security measures and user-centric design in encouraging consumers to adopt mobile banking.

Alalwan et al. [65] conducted a cross-cultural analysis examining the elements that impact confidence in the acceptance of mobile banking. According to the study, client trust in mobile banking was much enhanced by perceived security, privacy issues, and institutional trust. The survey highlighted the need to create a safe and reliable environment where consumers can utilise mobile banking tools. Examining mobile banking uptake in the United States [66], developed a unified theory of technology acceptance, usage, and apparent risk application.

Perceived usefulness, perceived ease of use, perceived danger, and social influence affected consumers’ inclination to utilise mobile banking. The study highlighted the need to understand the potential risks associated with mobile banking to promote its acceptance. With an eye on trust, perceived risk, and privacy issues, ref. [67] examined mobile banking uptake and consumers’ behavioural intention. According to the study, consumers’ desire to use mobile banking was negatively influenced by perceived risk and privacy issues; trust, however, favourably influenced adoption.

The study emphasized the importance of effective risk-reduction techniques and privacy protection in fostering consumer confidence in mobile banking services. Liao et al. [68], investigated how the acceptance of mobile banking services changed about technical readiness. Technical readiness, perceived utility, and perceived simplicity of use positively impacted customers’ inclination to use mobile banking. According to the study, one of the main determinants of mobile banking acceptance is the customer’s openness to technology. With trust as a mediator and gender functioning as a moderating factor, [69] examined the impact of online banking on consumer satisfaction.

2.6 The role of trust in customer satisfaction in digital banking

The study revealed that trust significantly impacts customer happiness with online banking. The effect of trust on satisfaction differed depending on male and female consumers. The study emphasized the importance of trust-building strategies in enhancing client satisfaction. Ramli et al. [70], offered empirical data on mobile banking acceptance in a developing nation. Key elements determining consumers’ inclination to utilise mobile banking include perceived utility, simplicity of use, and trust. The study highlighted the importance of perceived value in increasing consumer adoption in emerging countries.

Ruizalba and Izquierdo-Yusta [71] empirically investigated digital banking, customer experience, and service quality in the Spanish banking industry. According to the study, consumer experience and happiness improved in response to the quality of digital banking services. The survey highlighted the need to provide excellent digital banking solutions to enhance client satisfaction. With experience guiding the relationship, ref. [72] looked into the influence of perceived value and perceived trust on mobile banking loyalty. The study revealed that experience significantly impacted perceived value and trust, ultimately influencing mobile banking loyalty.

The study emphasized the importance of consistently providing value and fostering client loyalty in mobile banking through trust-building measures. Wang et al. [73] looked empirically at mobile banking acceptance in China. The customer’s inclination to utilise mobile banking was found to be significantly influenced by perceived risk, simplicity of use, and utility [74, 75]. The study emphasized the need for risk-reducing strategies to promote the adoption of mobile banking. Ultimately, the literature study shows that elements such as perceived utility, simplicity of use, trust, perceived security, privacy concerns, and perceived risk influence consumers’ inclination to use mobile banking services.

Digital banking can enhance consumer behaviour and satisfaction by employing a user-centric design, robust security policies, and effective risk-reduction techniques. Developing trust and offering first-rate digital banking solutions also depend on fostering client loyalty and promoting the long-term adoption of mobile banking. These data allow financial institutions to maximise digital banking products and provide a more customer-centric, fulfilling banking experience.

3.1 Instrument: Survey questionnaire

This qualitative research approach uses semi-structured questionnaires to collect data from selected individuals. The study randomly assigned 20 working individuals who answered an open-ended question that elicited insightful comments and replies about the following elements influencing consumers’ choices to engage in internet banking. The questionnaires were distributed via email and social media, including WhatsApp messenger. In qualitative research, a survey questionnaire is a set of open-ended questions to collect thorough, descriptive participant responses. It enables researchers to explore their ideas, feelings, and experiences on a topic in their own words rather than relying on predefined answer choices; essentially, it aims to gain deeper insights through rich, narrative data.

In this study, 20 working individuals participated in a questionnaire survey that provided insightful comments and responses regarding the following elements influencing consumers’ decisions to engage in internet banking. The online qualitative survey questions do not always allow researchers to investigate or clarify participant replies. Hence, the researcher may find the data from these responses ambiguous or cryptic. While the data were less comprehensive, there was generally more of it to offset, as online surveys may gather more replies in a given amount of time than face-to-face and phone survey methods [76].

Table 2 (see Table 2) presents the strength of the research instrument adopted in collecting the primary data for the study from the selected participants.

Table 3 (see Table 3) presents the weaknesses and limitations of the research instrument adopted in collecting the primary data for the study from the selected participants. The study also utilized secondary data sources to lend credence to the primary data collected through the survey, thereby underpinning the research approach [65]. This comprised an extensive literature review, compiling and evaluating current data, conducting data analysis to derive insights, and interpreting the data to investigate the effect of digital banking on consumer behaviour and satisfaction. Using secondary data, this method aimed to provide insightful analysis of consumer preferences, behaviour, and satisfaction levels in the digital banking environment. It offers proper direction for financial institutions to enhance their digital banking offerings and increase customer satisfaction.

3.2 Data presentation

The study presents and analyses the data thematically based on adopting digital banking and customer satisfaction. The rise in the popularity of digital banking has changed consumer interaction with financial institutions. The main objectives of this part of the research study are to examine the adoption trends of digital banking among various client categories, investigate the reasons behind its acceptance, and comprehend the development rate and adoption patterns over time.

3.3 Qualitative data analysis

4.1 Factors influencing the adoption of digital banking

The section below presents the factors influencing the adoption of digital banking among different customer segments. Findings from the data collected through the survey show that numerous factors influence the adoption of digital banking, which vary across various customer segments. Some of the key factors include the following;

4.2 The adoption of digital banking.

Table 6 (see Table 6) indicates that the consumers who are most inclined to embracing digital banking services are more tech-savvy and easily use digital platforms with the adoption of digital banking. The findings show that in banking, digital adoption integrates and utilises digital technology and solutions to increase overall efficiency, simplify processes, and enhance client experiences, ultimately improving the banking sector. In line with [4, 6], the adoption of digital channels and technologies, such as mobile banking applications, online account management systems, customer service chatbots, and digital payment solutions, is a key factor influencing digital banking [7–9]. Findings show that banks can provide consumers with easy and accessible financial services, offer self-service alternatives, and offer tailored experiences based on data-driven insights by adopting digital technologies. In line with [1], digital adoption in banking is a transformative journey to meet the shifting expectations of tech-savvy consumers, inspire creativity, and help banks stay competitive in the rapidly evolving financial landscape.

4.3 Patterns of digital banking adoption

The research report examines the rising rate and trends of digital banking acceptance over time to identify its direction and relevance in the financial sector. Analysing past data and patterns helps the researcher understand the speed and extent of adoption.

Table 7 (see Table 7) shows the patterns of digital banking adoption.

The study indicates that the use of digital banking services (DBS) has transformed the traditional concept of conventional banking in the rapidly evolving modern world. Contemporary artificial intelligence-incorporated technology made it feasible. This was done to satisfy consumers’ ever-rising needs by utilising more convenient and time-saving technology applications [10, 12, 44]. This theme identifies and evaluates the elements influencing the acceptance of digital banking solutions. The study report compares adoption rates across various areas or among different demographic categories to understand the impact of digital banking adoption.

4.4 Customer behaviour in digital banking

With unmatched accessibility and ease, the introduction of digital banking has transformed consumer interaction with financial institutions. In line with [3], the findings noted that with an eye on transactional behaviour, digital engagement [56], and the effects of user experience and interface design on customer behaviour, this research study explores customer behaviour in the digital banking environment.

Table 8 (see Table 8) encapsulates essential behavioural patterns and preferences that impact customer adoption of digital banking. It emphasises simplicity, security, and user-friendliness as key motivators, while confidence in the bank’s reputation and the availability of customer assistance are crucial for maintaining engagement. The research indicates age disparities, with younger cohorts exhibiting elevated adoption rates attributed to technical proficiency and a desire for mobile solutions. Moreover, financial incentives such as reduced fees and enhanced interest rates, in conjunction with new features like budgeting tools, foster favourable client perceptions. The table demonstrates how a synergy of functional advantages, trust, and technical accessibility influences customer behaviour about digital banking.

4.5 Transactional behaviour

This part examines the kinds and frequency of online transactions. The results show that digital banking systems enable consumers to handle various transactions easily and quickly. Analysing transactional activity helps the research study understand consumer preferences and patterns while using digital channels for banking operations [13, 56].

This table (As seen in Table 9) illustrates trends in customer engagement with digital banking for transactional activities. It generally encompasses information on the frequency and categories of transactions executed, including fund transfers, bill payments, and mobile top-ups. Research frequently indicates that consumers choose digital channels for regular and time-critical transactions because of their rapidity, convenience, and round-the-clock accessibility. Elevated transaction volumes on mobile and internet platforms signify a transition from conventional branch-based banking. The table may also reveal demographic or income disparities, indicating that younger and higher-income consumers engage in digital transactions more frequently. The data indicates an increasing dependence on digital banking for routine financial transactions, underscoring its contribution to improved customer satisfaction and operational efficiency.

4.6 Digital engagement

This section examines consumer interaction with digital banking platforms and uses several features (see Table 10). Ref. [20, 5] noted that many digital banking system tools and features help consumers properly manage their money. How consumers interact with these elements determines their preferences and needs.

4.7 The experience and interface design of the user

The study looked at customer behaviour regarding the user interface and experience. The results show that in digital banking, client behaviour is strongly influenced by interface design and user experience [55] (See Table 11). A well-designed, simple interface may raise customer satisfaction and inspire ongoing involvement.

4.8 Services and features

This section examined the most sought-after digital banking services and features to gain a better understanding of consumers’ needs. Modern consumers can find a wide range of services and features on digital banking platforms to meet their needs [14, 21, 54]. Finding the most demanded features and services helps one understand consumer expectations and priorities (See Table 12).

4.9 Channel preferences

In line with [45], it is important to examine consumer preferences for particular digital channels – such as mobile apps against web browsers – as consumers interact with digital banking across several channels, and their choices of specific platforms might affect their happiness and involvement.

This table (Table 13) delineates the favoured channels via which clients engage with digital banking services, including mobile applications, online banking, automated teller machines, and in-person branch visits. The research indicates a significant preference for mobile banking applications, particularly among younger groups, owing to their convenience and user-friendliness. Internet banking continues to be favoured for intricate transactions, whilst ATMs retain their significance for cash withdrawals. Branch visits have markedly decreased, indicating a transition to digital-first interactions. These choices underscore the necessity of optimising mobile and internet platforms to align with increasing client expectations and augment happiness.

4.10 Personalization

In this section, the study examines the role of personalized recommendations and offerings in shaping customer preferences. In line with the research findings, ref. [59] indicated that increasing client involvement and happiness depends heavily on personalization. The study believes that customizing services to meet specific consumer demands in digital banking relies on an understanding of the impact of personalized suggestions and offers (See Table 14).

The banking industry and technology have transformed many facets of our lives. This corresponds to [47] that convenience and efficiency make online banking services a natural component of our everyday life. These services rely on technical developments to enable banks and consumers to exchange information effectively. These online banking services are made possible mainly by the Internet, with its great range of communication and information tools [48]. The Internet has changed the banking and financial sectors, particularly in terms of basic goods and services. The conception of these items, suggested use, delivery, and consumption have changed significantly.

4.11 Effect of online banking in consumer behaviour

The Internet has become a priceless tool, driving development, encouraging creativity, and increasing competition in the banking industry. Changes in distribution channels have fostered the development of banking technology. From the first ATMs, phone banking, telebanking, and PC banking, we have arrived at the age of online banking. Online banking lets companies and people use banking services from their workplaces or homes. Easy access and consistent daily financial transaction processing have helped banks attract a wide spectrum of commercial and retail clients.

Customer happiness becomes increasingly important as technology develops and determines the viability of a bank. 78 defines electronic banking as using computers and telecommunications to execute banking operations without in-person contact. Its other services are automated payroll distribution and retail buying [79]. Higher customer satisfaction results from the efficiency and simplicity of electronic banking [80]. In electronic banking, consumer satisfaction is much enhanced by speed, efficiency, and security [81]. Improving customer satisfaction mostly depends on measuring service quality and always refining the process [82].

To reduce mistakes in electronic banking, [49] argued that digital banking helps to provide time savings, which benefits consumers. This helps consumers, while also allowing the banking industry to lower expenses and increase overall efficiency [83]. Kumar [84] suggests that computerized banking can be designed to offer individualized consumer services, thereby improving satisfaction. Checking bank accounts and making transactions from anywhere at any time helps consumers save time and enhances service delivery through this capability [20, 85]. Moreover, the provision of 24/7 services enhances client satisfaction by allowing them to access financial services at their convenience [85].

The advantages of electronic banking – such as the possibility of making transactions without a physical presence – have driven its dependence [86]. Still, it’s crucial to allay security worries about mobile banking. Strong security mechanisms should be built within the system to safeguard consumer data [87]. Electronic banking has significantly enhanced consumer satisfaction by offering convenience, efficiency, and personalized services. Customer satisfaction has also been enhanced by fewer mistakes and the availability of financial services anywhere, anytime. Still, cybersecurity must be prioritized if consumer data is to remain protected. By addressing these elements, banks can continue to raise customer satisfaction and meet the evolving expectations of their clients.

4.12 Customer satisfaction in digital banking

The viability of any financial service – including digital banking – depends on customer happiness. This section of the research paper compares customer satisfaction in digital banking with that of conventional banking services, measuring overall customer satisfaction with digital banking experiences. It identifies the primary factors influencing customer satisfaction in the digital banking environment. The banking sector has quickly adopted Internet banking as a practical and profitable instrument to produce client value [79]. One of the well-liked offerings that conventional banks supply is to provide internet customers with dependable and faster solutions. As computer technology continues to develop rapidly as a business tool, Internet banking can be utilized to attract more clients to handle financial transactions with associated institutions.

The biggest issue Internet banking presents for providers is that many banks’ clients are not eager to use the available services [63]. This results from the services provided by Internet banking still not meeting their needs. The results indicate that maintaining competitive advantages for banks heavily depends on customer satisfaction. Therefore, this research examines the factors that influence consumer satisfaction with Internet banking. Service quality, online design and content, security and privacy, convenience, and speed are the five key elements that affect client satisfaction with Internet banking [50].

According to this study, client satisfaction with Internet banking is directly related to online design and content, ease of use, and speed. Alternatively, according to the findings of this study, client satisfaction with Internet banking is primarily influenced by site design and content, ease of use, and speed. In digital banking, consumer satisfaction depends on characteristics such as ease, security, customisation, and the overall user experience; studies reveal that these elements significantly affect customer loyalty and satisfaction.

4.13 Services to digital banking

Digital innovative banks are evolving rapidly and have achieved significant societal acceptance and substantial developmental outcomes. Machasio [88] claims that the evolution of the Internet has dramatically challenged established banks and helped online finance flourish. This has also driven conventional banks to use the Internet to increase service efficiency. Given the great efficiency with which Internet information is shared, traditional banks must leverage its benefits to raise the quality of services. Simultaneously, from the standpoint of commercial bank business transformation, [89] Lien et al. (2020) explored how information technology affected conventional commercial banking operations.

Consequently, they believe that utilising information technology to facilitate the digital transformation of conventional commercial banks is suitable for reducing expenses and enhancing efficiency. They also said that the Internet’s electronic information enables digital transformation. Dang et al. [90] developed an assessment methodology for the digital transformation of commercial bank outlets. The model assesses the effect of digital transformation of conventional commercial bank outlets using a thorough assessment approach. Furthermore, the model can efficiently identify issues developing during the digital service transformation of commercial bank smart outlets.

Penney et al. [91], claim that the convenience of utilising electronic statements drives individuals to transition from paper to electronic ones, rather than the detrimental effect of paper on the environment. The survey also revealed that the traceability of electronic statements was key to consumers’ utilisation of mobile apps and online banking platforms to view online declarations. In line with [24, 92] Ismail and Alawamleh (2017) claim that consumers want service providers to offer the most significant labour- and time-saving solutions. If online banking is available at any time, if waiting in line is avoided, the amount of time saved compared to traditional banking, or the simplicity of the login process, convenience may be assessed in several different ways.

The statistical research indicates that the properties of digital banking, including time efficiency, user-friendliness, and flexibility regarding location and timing, result in notable variations in consumer satisfaction levels. The findings indicate that the risks associated with personal and financial data security, inadequate understanding of digital banking, and the potential for fraud contribute to notable disparities in consumer satisfaction levels. Ultimately, the findings demonstrate that the anticipated outcomes of banking service digitization, including an increase in digital goods and services as well as new functions, result in notable disparities in customer satisfaction levels.

4.14 Implications of the study

This study enhances the existing literature on the subject in several ways. Initially, we contribute to the body of knowledge on digital banking services. It also engages in research to comprehend client satisfaction with digital banking services. Furthermore, we thoroughly analysed the hazards linked to digital banking that result in substantial variations in consumer satisfaction levels. Ultimately, we contribute to the study of customers’ expectations of digital banking and their impact on customer happiness. This research has several practical contributions. To enhance client happiness, it recommends how banks can cultivate trust and establish secure processes in digital banking.

It was also noted how bankers can apprise consumers of various opportunities and furnish needed help. Digital infrastructure is a challenge, particularly in developing nations; yet, it is critically important since cost efficiency, time savings, simplicity, and flexibility contribute to enhanced consumer satisfaction. The probable ramifications of the fast expansion of digital banking services on consumer behaviour and satisfaction, emphasizing main stakeholders including bank executives, governmental entities, and policymakers:

1. Bank managers consequences:

• Operational Efficiency: Enhanced dependence on digital platforms diminishes the necessity of physical branches, reducing overhead expenses.

• Customer Insights: Improved data analytics from digital interactions provides profound insights into customer preferences and behaviour.

• Service Innovation: The imperative to always develop and provide seamless, user-centric digital experiences.

• Risk Management: Emerging cybersecurity threats and fraud risks necessitate revised risk assessment and mitigation measures.

• Personnel Modifications: Transition in labour requirements – from conventional banking positions to technologically proficient and customer service jobs.

Strategic Considerations:

• Allocate resources to artificial intelligence and machine learning for tailored services.

• Enhance employee competencies to effectively utilize digital technologies and facilitate online consumer engagement.

2. Government entities consequences:

• Digital Inclusion: It is imperative to provide fair access to digital banking, particularly in rural or underdeveloped regions.

• Infrastructure Development: Heightened need for resilient digital infrastructure (e.g., internet access, mobile networks).

• Consumer Protection: Enhanced obligation to safeguard customers against digital fraud and uphold data privacy.

• Economic Surveillance: Enhanced monitoring of financial activities can facilitate economic planning and tax adherence.

Strategic Factors:

• Advocate for digital literacy initiatives.

• Partner with financial institutions to enhance digital infrastructure.

3. Policymakers consequences:

• Regulatory Frameworks: Rules pertaining to digital banking, fintech collaborations, and data governance must be revised or established.

• Financial Stability: Assess the systemic risks of digital-only banks and fintech disruptors.

• Balancing Innovation and Regulation: Promote innovation while safeguarding consumer safety and guaranteeing market equity.

• Cross-Border Transactions: Address issues about transnational digital banking and money laundering.

Strategic Considerations

• Create flexible regulatory sandboxes for financial experimentation.

• Harmonize digital banking regulations across regions.