Does SERVQUAL Remain A Reliable Approach to Understanding Customer Satisfaction in Indian Digital Banking?

The rapid expansion of digital banking in India has prompted renewed evaluation of traditional ‎service quality frameworks. Among these, SERVQUAL (Service Quality), comprising five ‎dimensions—Reliability, Responsiveness, Assurance, Empathy, and Tangibles, has long ‎served as a benchmark for measuring customer satisfaction. However, its suitability for ‎technology-driven environments remains debated. This study critically examines whether ‎SERVQUAL continues to be a reliable and valid framework for assessing customer satisfaction ‎in Indian digital banking. Based on survey data from 330 active e-banking users, the study ‎employs descriptive statistics, correlation analysis, multiple regression, Confirmatory Factor ‎Analysis, and Structural Equation Modelling to validate the model. Results reveal that all five SERVQUAL ‎dimensions significantly influence satisfaction, with Empathy, Assurance, and Reliability ‎emerging as dominant predictors. Tangibles and Responsiveness, though significant, exert ‎comparatively weaker effects. The CFA confirms construct validity, while SEM demonstrates ‎robust path relationships, supporting SERVQUAL’s continued relevance in the digital context. ‎Theoretically, this study reinforces SERVQUAL’s adaptability to technology-mediated ‎environments, while practically offering insights for Indian banks to prioritise trust-building ‎dimensions over functional aesthetics. Policy recommendations include strengthening digital ‎security standards, promoting customer education initiatives, and encouraging regulatory ‎alignment under the Reserve Bank of India. By validating ‎SERVQUAL in a highly dynamic market, this research establishes the model as an adaptive ‎and enduring tool for evaluating service quality in the era of digital transformation‎.