article · Future of Business Administration
Artificial intelligence chatbots have become vital tools for enhancing customer experiences in the banking sector. As digital transformation expands, financial organisations seek to understand how the quality of automated chatbot services affects customer retention. Using an empirical approach, researchers surveyed 729 participants online through judgemental sampling and analysed the responses with structural equation modelling. The investigation examined the core attributes of chatbot service quality and their effects on client loyalty, specifically focusing on the mediating function of customer satisfaction. The results confirm that chatbot service quality significantly influences customer loyalty, driven by satisfaction levels. By defining the characteristics of effective automated interactions, the findings show how digital customer service tools can be integrated into loyalty models to help institutions refine their digital communication approaches.
Financial institutions increasingly rely on artificial intelligence to manage routine customer communication. Demonstrating that the quality of chatbot interactions directly shapes customer satisfaction and brand loyalty helps banks justify investments in automated systems. It provides clear evidence that technology design must focus on service excellence rather than simply cutting costs.
The insights apply directly to retail banks and financial technology firms seeking to optimise deployed chatbot software. By focusing on interaction performance, cross-channel integration, and personalisation, organisations can refine existing automated customer service tools. Because the findings are based on consumer responses to current banking tools, this applied research offers near-market guidance for immediate operational adoption.
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The convergence of Artificial Intelligence (AI) and FinTech services has brought about a transformative impact on customer engagement in institutions. AI-powered chatbots have emerged as indispensable tools for enhancing customer experiences within the banking sector. In this era of digital transformation, financial institutions have recognized the vital importance of exceptional service quality and the utilization of chatbots in attracting and retaining customers. Consequently, there is a growing interest in comprehending the role of chatbot service quality in shaping customer loyalty. This study adopts an empirical and descriptive approach, employing a quantitative research method. Data were obtained from 729 respondents through an online survey employing judgemental nonprobability sampling. The gathered data were analysed using Smart PLS- Structural Equation Model (SEM). The study delineates the attributes of AI chatbot service quality and identifies their significant influence on customer loyalty, taking into account the mediating role of customer satisfaction. The findings of this study contribute to the understanding of the relationship between chatbots, customer satisfaction, and loyalty. The study validates the significance of customer satisfaction, enhances the understanding of chatbot effectiveness, explores the unique characteristics of chatbot interactions, and demonstrates how technology-driven customer service can be integrated into loyalty models. Moreover, this study offers practical implications that can guide businesses in optimizing their chatbot strategies. By prioritizing the enhancement of chatbot performance, personalizing interactions, integrating across channels, and monitoring customer satisfaction and loyalty metrics, organizations can elevate customer satisfaction, cultivate loyalty, and achieve positive business outcomes.
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DOI: 10.33422/fba.v3i1.644
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