Digital Banking Service Quality: The Modified E-Servqual Model & Importance-Performance Analysis (IPA)

Technology is reshaping the digital financial ecosystem and the future of Internet banking. The banking sectors are attempting to emphasize service quality as a way to boost customers’ willingness to adopt digital banking. This study inspects e-banking customer satisfaction by utilizing the underlying dimension of e-service quality and aims to determine the gap between perceived and expected service quality value along with an importance-performance analysis to examine the priority scale of service quality attributes on Generation Z’s satisfaction rate with digital banking. As a result, it promises to help the Internet banking industry in decision-making for creating long-term client relationships and obtaining a competitive advantage in the market. This research obtained a total of 397 Indonesian e-banking clients by using a structured questionnaire. The findings reveal that users’ perception of online banking services is satisfied, i.e., valued at 3.96 out of a possible score of 5.00, or 79% level of satisfaction. Nevertheless, users expected to be very satisfied with the digital banking service, scoring 4.21 or 84% satisfaction. As a result, the gap proved to be −0.25. As a way forward, the importance performance graphic distributes Reliability, Personal Needs, User Friendliness, Efficiency, Site Organization, Responsiveness, and Privacy, which need to be enhanced.