What attracts me or prevents me from using AI-enabled neo-banking services? Unveiling the nexus between service quality and customer loyalty

Purpose Neo-banking has revolutionized the financial system by increasing productivity and knowledge generation, and it has enhanced innovation using artificial intelligence (AI). Accordingly, this research examines the factors affecting the service quality of AI-enabled neo-banking services and their impact on online brand experience, customer trust and customer loyalty in an emerging economy such as India. Design/methodology/approach A “cross-sectional design” was employed to collect primary data from 439 consumers through a “self-administered survey questionnaire.” The research used the “partial least squares-structural equation modeling (PLS-SEM)” to analyze the data. Findings This article provides a robust research model in which personalization, responsiveness and website design significantly influence service quality, while perceived risk insignificantly influences service quality toward AI-enabled neo-banking services. Interestingly, service quality substantially impacts online brand experience, customer trust and customer loyalty. Additionally, online brand experience and customer trust substantially impact customer loyalty towards AI-enabled neo-banking services. Practical implications This article provides a practical foundation for risk professionals, bank managers, regulators, IT developers, Fintech companies and financial intermediaries planning to develop or invest in similar AI-enabled neo-banking services. In addition, this research unravels deeper structures in neo-banking, which assist in the success of government goals for the digitalization of India. Originality/value This article presents a unique research model by integrating theoretical perspectives to investigate the effect of neo-banking service quality on online brand experience, customer trust and customer loyalty, largely unexplored in the earlier literature. The research is uniquely located in information and technology by recognizing the main barriers to adopting AI-enabled neo-banking services in an emerging economy.