Customer Retention for Digital Banking: Application of ‘Nudge Theory’
Keywords:Nudge theory, nudge banking, economic behaviour, saving habit, customer loyalty
The aim of this paper is to examine the digital banking habit to achieve customer retention. Applying the ‘Nudge theory’, this paper examines the impact of banks’ inventiveness on changing monetary behaviour of the customers in the commercial banks. While the literature is still young, conclusions may be drawn about 1) the effects and evaluation of the banks’ products and services to nudge customers for saving more to retain customer loyalty and trust, 2) making the customers literate in personal financing knowledge to reduce the fund diversion after taking loan from banks, and 3) boosting repurchase intention of a customer.