MODERATING EFFECT OF DIGITAL LITERACY IN MOBILE BANKING - CUSTOMER SATISFACTION RELATIONSHIP AMONG BANKS IN KANO METROPOLIS

Abstract

This study examined the moderating effect of digital literacy in the relationship between mobile banking and customer satisfaction among retail bank customers in Kano Metropolis, Nigeria. A cross-sectional descriptive survey design was used, and data was collected from 390 customers across three randomly selected banks. Structural equation modeling revealed that digital literacy had a direct positive effect on customer satisfaction and significantly strengthened the influence of mobile banking on satisfaction. These results align with the Technology Acceptance Model and Social Cognitive Theory, highlighting digital literacy as a critical cognitive resource that enhances perceptions of ease, efficiency and reliability in electronic banking use. The study concludes that mobile banking alone cannot sustain customer satisfaction without adequate digital competence. It recommends that banks and financial regulators pair technological upgrades with structured digital literacy initiatives, particularly customer-focused training programs. Enhancing users’ digital capabilities will not only improve satisfaction but also support broader, more inclusive adoption of electronic banking services in emerging economies.