A Serial Mediation Model of Financial Performance of the Banks in Pakistan: Do Customer Services Matter?

Financial performance of the financial institutions has been the critical element for any country economic condition that would be analyze frequently. Hence, the present study examines the impact of banks’ customer services on the banks’ customer satisfaction (CST), banks’ CST impact on banks’ customer loyalty (CL) and banks’ CL impact on banks’ financial performance in Pakistan. The study also examines the moderating role of institutional support among banks’ CL and banks’ financial performance. The study gathered the primary data from the customers and employees of the conventional banks in Pakistan using survey questionnaires. The study also used the smart-PLS to check the data reliability as well as association among the variables. The outcomes indicated that banks’ customer services have a positive association with banks’ CST, banks’ CST have a positive association with banks’ CL and banks’ CL have a positive association with banks’ financial performance in Pakistan. The outcomes also indicated that institutional support significantly moderates among banks’ CL and banks’ financial performance. The study provides the help to the regulators in establishing regulations regarding enhance the financial performance using effective customer services and enhance CST and CL.