This study considers the effects of service quality on customer loyalty in Pakistan banks, where customer satisfaction is thought to mediate the relationship. Because the financial sector is highly competitive, knowing how excellent service encourages loyalty is essential for keeping customers. Researchers used surveys and interviewed 400 users of internet banking in Pakistan by distributing questionnaires using convenience sampling. To determine if satisfaction and loyalty are affected by service quality, the study assesses five main factors of service quality: reliability, assurance, responsiveness, empathy and tangibility. Study results reveal that all service quality parts improve customer satisfaction, especially responsiveness, assurance and empathy. These results support the idea that service quality helps to form loyalty and satisfaction partially sits in between them. As a result, banks have to make sure customers are emotionally satisfied which is equally essential for keeping them loyal. The lessons from the study allow banking managers to focus on responsiveness, assurance and empathy which can build better relationships with their customers. Trusting a business calls for dependable outcomes and continued reliability. These approaches are especially important in Pakistan’s growing digital banking industry, as customer expectations are increasing fast. In future studies, considering corporate image, trust and cultural elements along with the existing variables might give us a better picture of loyalty factors. Insights may also be obtained from comparing how Islamic banks differ from conventional banks or banks in different locations. As a result, this study adds to the dialogue on service management in emerging markets by stressing the link between solid operations and how customers feel, both factors play a role in retaining customers.
Mahmood et al. (2025) studied this question.