Interactional Value Formation in Digital Banking: Exploring Key Precursors and the Role of Customer Emotional Intelligence

Bank interactions require frequent financial exchanges, and digitalization has brought new challenges like complex interfaces, low digital literacy, trust deficits, and spontaneous communication, all of which hinder value formation. To remain competitive, banks must prioritize co-creating value in digital interactions. This paper investigates the dynamics of interactional value formation (IVF) in digital banking, identifies its core precursors, and assesses the influence of customer emotional intelligence (EI) on these interactions. A quantitative study was conducted with 442 digitally active banking customers in southern India. The structural equation modeling technique SmartPLS 4 was employed for analysis. Additionally, a bootstrapping test and slope analysis was used to measure moderation effect. Results indicate that relationship quality and knowledge are strongly related to IVF, however, communication has no impact. EI strengthens the relationship-IVF link but weakens the knowledge-IVF connection, with no moderating effect on communication-IVF. The study is one among the first to test IVF in digital banking interactions in India and observe the moderating role of customers’ EI on the interactions. Future studies can explore the role of employee’s EI and training on interactional outcomes.