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Top1. Introduction
The advancement of information communication technology (ICT) profoundly affecting the daily operation of every individual across the world. Since the introduction of electronic banking, the banking service has shifted the bricks and mortar service to electronic and banking terminologies that are changed to e-banking, e-finance, e-payment, financial technology (fintech), etc. Fintech is originally derived from finance and technology, which defined as the way of delivering financial services through technology channels (Milian, Spinola, & Carvalho, 2019). Fintech categorized as “sustainable fintech” and “disruptive fintech,” which shows the former, is more applied for conventional banking services while the latter indicates the new financial products in a more simple and convenient way of delivering services (Christensen & Raynor, 2003). The adoption of electronic banking by bankers resulted in an efficient operation of their internal business besides increasing their customers’ satisfaction. Using electronic banking like internet banking, mobile banking, ATM and others believed that increasing the quality of services (Ariffa et al., 2012; Felix, 2017). E-finance is the process of delivering financial services through electronic media like personal computers, mobile phones, machines, and other devices by using remote access connections; internet and messages. Since the electronic services allow customers to access their bank account for financial services at anytime from anywhere, it would increase their satisfaction compared to traditional bank branch services. It is believed the e-finance service is convenient for customers and minimizes the costs of accessing financial services.
Authors believe that customer satisfaction is the function of service quality (Alhaliq & Almuhirat, 2016). Customer satisfaction usually comes after their evaluation of services they were delivered. Therefore, the quality of service they consumed or tested obviously results in satisfaction. In different sectors including the banking industry researchers were confirmed there is a positive and direct relationship between service quality and customer satisfaction. Some researchers in internet banking services (Seyal & Rahim, 2011; Sousa & Voss, 2012) examined the effect of service quality on customer satisfaction. However, few studies were related to service quality with customers’ e-loyalty particularly in the banking sector loyalty (Yaya, Marimon, & Casadesus, 2013; Xue, Hitt, & Chen, 2011). Moreover, since in delivering electronic-based financial services there is no interaction between bankers and customers, it is expected that customers face problems during using the banking technologies. During such a problematic time, customers may request the bank office for recovering the error. However, previous studies were failed to study the recovery service quality due to insufficient sample size, who encountered problems (Parasuraman, Zeithaml, & Malhotra, 2005). In this particular study bank customers who had experienced a problem while using the banking technology were included and studied the effect of recovery service quality on their e-loyalty of the technology.
Methodologically this study overcomes the limitation of implementing a formative model instead of using only reflective models (Collier & Bienstock, 2009). Authors claim that using a second-order model by using formative variables reveals more detail results compared to the first-order model (Randolph, 1998; Thompson, 1990). Though previous studies were examined e-service quality models for e-finance and related e-commerce platforms (Akinci, Atilgan-inan, & Aksoy, 2010; Yarimoglu, 2015), they were failed to study the effect of e-finance service quality on customers’ satisfaction and their e-loyalty. Therefore, this study was aimed two issues; firstly, it confirms the effect of purely electronic-based financial services quality on bank customers’ satisfaction and e-loyalty, and secondly, it measures the mediating role of customer satisfaction of e-finance service quality on bank customers’ e-loyalty of using the banking technology in future.