article · International Journal of Bank Marketing
Banking environments face growing competition and volatility, making innovation an increasingly critical strategic focus. An investigation of 450 commercial bank customers in Ghana evaluates how service innovation interacts with service delivery, customer satisfaction, and loyalty. Using partial least squares structural equation modelling to assess customer responses, the findings reveal that service innovation exerts a direct influence on both service delivery standards and customer satisfaction levels. Additionally, the analysis demonstrates a positive relationship between effective service delivery, customer satisfaction, and bank customer loyalty. Overall, the evidence provides theoretical support for financial institutions adopting innovative techniques within their service provision, showing that modernised delivery mechanisms play a central role in strengthening customer retention within emerging banking markets.
In competitive financial markets, retaining customers requires more than traditional services. Understanding how service innovation drives better delivery and higher customer satisfaction helps financial institutions design services that keep clients loyal. For emerging economies, these findings underline the necessity of investing in service innovation to build resilient, customer-focused banking operations that can withstand sector volatility.
The findings offer actionable insights for commercial bank managers, retail banking teams, and financial service designers seeking to boost customer retention. While the study provides empirical evidence rather than a finished commercial product, it functions at an applied research stage that directly informs operational service design, digital service adoption strategies, and customer experience frameworks in emerging market banking sectors.
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Purpose The concept of innovation is gaining ground steadily in the context of an increasingly competitive and highly volatile banking sector. The purpose of this paper is to find out the role of service innovation (SI) in the relationship between service delivery (SERVD), customer satisfaction (CSAT) and loyalty in the banking sector of Ghana. Design/methodology/approach Drawing from banking and marketing literature, a conceptual framework was developed and tested using data from 450 sampled customers of commercial banks in Ghana. The data were analyzed using partial least squares structural equation modeling. Findings The findings indicate that SI has direct influence on SERVD and CSAT. Again the findings revealed a positive relationship between SERVD, CSAT and bank customer loyalty. Research limitations/implications This study offers theoretical support for the adoption of innovative techniques in service provision and delivery. Originality/value This paper provides an initial study into innovation management in financial services context in an emerging economy.
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DOI: 10.1108/ijbm-06-2018-0142
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