The effects of digital banking on the banking sector and the evolution of customer loyalty in this context

Digitalization in the banking sector has drastically changed the preferences and expectations of customers. The banking industry adopts digitalization to adapt to changing trends and customers' preferences with technology. To enable banks to operate effectively and efficiently, these newly implemented digital approaches need to be thoroughly evaluated and combined with other inter-institutional measures. Accordingly, a newly created solution for banking institutions should increase the efficiency, security and cost efficiency of banking transactions and enable the highest level of customer service satisfaction. Due to the increasing use of mobile devices and the demand of customers to offer their financial services through these channels, digital banking through mobile phones and the internet is becoming increasingly important in the marketing of banks' services. The change in the dynamics of the banking sector means that banks are no longer dependent only on the results of branch sales. Attracting and retaining customers is extremely important for banks. There are not enough studies on how digital banking affects customer experience and performance of banks. This thesis aims to measure the effects of digital banking on the banking sector and its impact on customer satisfaction and loyalty in this context. The research data were collected by a digital survey and SPSS program was used in the analysis of the data. As a result of the research, it is shown that digital banking helps banks establish lasting bonds with their customers by increasing customer satisfaction and loyalty, while requiring more personalized and creative products and services to meet customer demands. Banks must enhance their technical infrastructure and augment their competitive advantages to sustain client loyalty while transforming the consumer experience through process digitization.