Mobile Banking Service Quality and Customer Loyalty: Sequential Mediation of Customer Trust and Perceived Risk through Customer Satisfaction

The study examines the effects of mobile banking service quality on customer loyalty through perceived risk, customer trust, and customer satisfaction. An explanatory research design with a quantitative approach was used. Data were collected from mobile banking users of the Commercial Bank of Ethiopia in Afar region using convenience sampling technique. PLS-SEM was employed to assess both measurement and structural models. Mobile banking service quality reduces perceived risk and strongly increases customer trust. Customer satisfaction is the strongest predictor of loyalty. Simple mediation results show significant indirect effects through perceived risk, trust, and satisfaction. The sequential mediation confirms that trust and satisfaction form powerful pathway to loyalty. Banks should prioritize trust building and service quality improvements to enhance customer satisfaction and loyalty. The study integrates perceived risk and customer trust as dual mediators to explain customer loyalty in mobile banking service quality.