Determinants of Customer Loyalty in the Banking Sector: A Literature Study

Abstract

Introduction: Internal variables such as organizational policies and institutional structures that influence service behavior have received little attention in empirical studies. This lack of integration creates a conceptual gap and hinders the formulation of a holistic and effective loyalty strategy.

Objectives: This study aims to identify and synthesize empirical findings related to internal factors influencing customer loyalty in the banking sector, thereby addressing the conceptual gap and contributing to the development of a comprehensive loyalty strategy.

Methods: The study employs a Systematic Literature Review (SLR) approach. Data were collected from English-language scientific articles published between 2020 and 2025, indexed in reputable databases such as Scopus, ScienceDirect, SpringerLink, and Emerald Insight. A thematic analysis was conducted and presented narratively to explore the patterns and interrelationships among internal variables affecting customer loyalty.

Results: The review reveals that customer loyalty in the banking sector is influenced by three key internal factors: service quality, organizational structure, and internal policies. Service quality dimensions such as reliability, responsiveness, empathy, and assurance are critical in fostering customer satisfaction and loyalty across both traditional and digital platforms. Furthermore, adaptive and collaborative organizational structures, along with transparent internal policies, significantly enhance customer trust and experience.

Conclusions: Internal factors play a vital role in shaping customer loyalty in the banking sector. Strengthening service quality, optimizing organizational structures, and ensuring transparent internal policies are essential for building long-term customer relationships and formulating effective loyalty strategies.