Connecting Customer Satisfaction and Loyalty to Bank Financial Performance: Insights from PMJDY Account Holders

Abstract

Purpose: The purpose of this research is to investigate the link between bank financial performance and customer satisfaction and loyalty for Pradhan Mantri Jan-Dhan Yojana (PMJDY) account holders in India.

Design/Methodology/Approach: In the context of PMJDY account holders, this study analyses the intricate links between customer happiness, loyalty, and bank financial performance using multivariate methodologies and partial least squares structural equation modelling (PLS-SEM).

Findings: This research bridges a significant gap in the literature on financial inclusion and banking success in India by identifying important linkages between customer happiness and loyalty and their influence on the financial performance of banks servicing PMJDY consumers. The relationship between customer pleasure and bank financial success is partially mediated by customer loyalty.

Originality/Value: The study discusses the often ignored relationship between customer loyalty and happiness and how that relationship affects bank performance, particularly in light of financial inclusion programs like PMJDY. Policymakers and banks may get useful insights from the results about how to improve financial inclusion initiatives and boost profitability by using client retention tactics.