DIGITAL TECHNOLOGY AND CUSTOMER LOYALTY IN THE BANKING SECTOR IN BENIN CITY

The rapid advancement of digital technology has significantly transformed the banking sector, with financial institutions increasingly leveraging digital platforms to enhance service delivery, improve customer experiences, and foster long term relationships. This study examines the relationship between digital technology and customer loyalty in the banking sector, focusing on Zenith Bank in Benin City, Nigeria. Despite substantial investments in digital banking solutions such as mo bile applications, internet banking, automated teller machines (ATMs), and AI driven customer support systems, challenges such as service reliability, security concerns, and limited customer awareness persist, affecting customer retention. This study employs a quantitative research approach to assess how key digital banking factors including accessibility, service quality, security, and customer awareness influence customer loyalty. A structured survey was administered to customers of Zenith Bank in Benin City, and the collected data was analyzed using statistical techniques to identify significant relationships. Findings indicate that while digital banking enhances convenience and accessibility, issues such as security concerns and system downtimes negatively impact customer loyalty. Moreover, customer awareness and trust in digital platforms play a critical role in determining long-term engagement with digital banking services.