Abstract

In today’s digital era, online banking has revolutionized the banking industry, offering unparalleled convenience and flexibility to customers, thereby advancing financial inclusion. Previously underserved populations, such as those in rural areas or lacking transportation access, now enjoy banking services via smartphones. However, the growing frequency and complexity of online banking present usability challenges, including limited merchant options and technical glitches in payment transactions. Issues like One Time Passwords (OTPs) and service charges particularly affect Generation X users, who have witnessed the digital era's emergence. Despite digital advancements, many in this demographic struggle with online banking. To tackle this, the study advocates for assessing online banking service quality in the Philippines using the SERVQUAL model and Structural Equation Model (SEM) analysis to identify areas for improvement. Eliminating errors is paramount for enhancing customer satisfaction. Additionally, the study seeks to uncover factors influencing customer service quality, providing actionable recommendations for improvement.