Does Digitalization Create Customer Loyalty? An Applied Study Using the SERVQUAL Model to Measure the Impact of Banking Digitalization on Customer Satisfaction and Loyalty in Iraqi Banks

This paper aims to answer whether digitalization leads to customer loyalty in Iraqi commercial banks through applying the SERVQUAL model for investigating the influence of service quality on satisfaction and loyalty. It is based on SERVQUAL, but it is tailored to the Iraqi context, taking into consideration factors such as Arabic interface usability and infrastructure problems of Iraq, for example, electricity power cuts. Data Link: Data were collected through the use of a structured questionnaire from 420 digital banking users in four major cities. The results of factor analysis supported the validity of the adapted SERVQUAL constructs. The regression results indicate that customer satisfaction (β = 0.72, R² = 0.52) and customer loyalty (β = 0.78, R² = 0.61) significantly depend upon the digital service quality. Mediation analysis supported the mediating role of satisfaction (β = 0.43, p < 0.001). "Have a love for is the catalyst of loyalty,” was written in a note. Its findings highlight the need for digital platforms that respect local contexts and greater resilience infrastructure. The findings of this study both validate the SERVQUAL model on a digital banking environment and help explain customer behavior in developing countries with practical implications to address how loyalty can be improved through the quality of digital services.