The Moderating Role of FinTech in the Relationship Between Customer Satisfaction and Retention in the Banking Sector

Mousa Ajouz (), Maha Shehadeh, Sara Issa and Haya Nawawra
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Mousa Ajouz: Department of Financial Sciences and Accounting, Palestine Ahliya University, Bethlehem 90907, Palestine
Maha Shehadeh: Department of Financial Technology, Al-Ahliyya Amman University, Amman 19328, Jordan
Sara Issa: Sc. Students’ Research Club, Department of Financial Sciences and Accounting, Palestine Ahliya University, Bethlehem 90907, Palestine
Haya Nawawra: Sc. Students’ Research Club, Department of Financial Sciences and Accounting, Palestine Ahliya University, Bethlehem 90907, Palestine

IJFS, 2025, vol. 13, issue 4, 1-21

Abstract: This study investigates the influence of banking service quality and customer trust on customer retention behavior, considering the mediating role of customer satisfaction and the moderating role of FinTech. In light of the growing digitalization in the banking sector, the study aims to understand how these constructs interact to drive long-term customer loyalty. A quantitative research approach was adopted using data collected through a structured questionnaire administered to banking customers. The relationships among variables were examined using Partial Least Squares Structural Equation Modeling (PLS-SEM), assessing both direct and indirect effects. The results show that banking service quality and customer trust significantly enhance customer satisfaction, which in turn positively influences customer retention behavior. Moreover, satisfaction was found to mediate the relationships between both service quality and trust with retention. FinTech demonstrated a strong direct effect on retention and also significantly moderated the satisfaction–retention link, amplifying its impact when FinTech services are effectively utilized. This study contributes to the relationship marketing literature by introducing FinTech as a novel moderating variable in the satisfaction–retention framework. It offers practical insights for banks aiming to enhance retention by improving service quality, fostering trust, and leveraging digital technologies to strengthen customer relationships.

Keywords: customer satisfaction; customer retention; banking service quality; customer trust; FinTech; PLS-SEM; relationship marketing; digital banking (search for similar items in EconPapers)
JEL-codes: F2 F3 F41 F42 G1 G2 G3 (search for similar items in EconPapers)
Date: 2025
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