Fintech Service Quality of Saudi Banks: Digital Transformation and Awareness in Satisfaction, Re-Use Intentions, and the Sustainable Performance of Firms

Abstract

The present study examined the effects of the service quality regarding fintech and customer satisfaction on the sustainable bank performance, with digital transformation and digital awareness as the mediator and moderator in the Saudi Arabian banks. Using an online survey questionnaire, data were collected from 306 customers and an equal number of customer care officers, resulting in a 62.58% response rate. The findings revealed that the tangibles, reliability, and empathy about the fintech services significantly influence customer satisfaction. However, assurance and responsiveness did not significantly influence customer satisfaction. The results also showed that customer satisfaction regarding fintech services significantly and positively influences the intention to re-use fintech services, indicating the centrality of maintaining a high customer satisfaction for retention. Interestingly, while the intention to re-use fintech was directly linked to the sustainable performance of banks, the direct impact of digital transformation on the performance was not significant. Additionally, digital awareness about using fintech services significantly and positively influences the sustainable bank performance. The study also tested the moderating effect of digital awareness between customer satisfaction and sustainable performance, but the relationship was not significant. By offering the study’s novel findings, this research underscores the implications of fintech adoption and its quality dimensions on bank performances in the Saudi context.

1. Introduction

The use of fintech in the banking industry has significantly transformed the world economy [1]. It has had the effects of improving both bank performances and customer experiences. Although its influence is a need of the global world, the repercussions of this technological revolution take on very different forms in each society and culture, as seen in Saudi Arabia [2]. According to the findings of a study that compared the adaptation of financial technologies in the Islamic banking sectors of Malaysia and Saudi Arabia [2], the use of these technologies needs to agree with Shariah. In addition, it is vital to analyze and address unique enabling variables in the Saudi environment to stimulate innovation in financial technology services [3]. Furthermore, Saudi Arabia’s adoption of financial technology and its impact on financial intermediation presents a more successful digital model compared to other Gulf economies [4]. This highlights the importance of regional nuances in successfully incorporating financial technology into traditional banking systems.

In the age of digital transformation, the banking sector has undergone significant changes with the rise of financial technology, commonly referred to as fintech [1,5,6,7]. The service quality becomes a good predictor of customer engagement and satisfaction as banks make the transition into the digital age [8,9,10]. The service quality, including tangibles, reliability, responsiveness, assurance, and empathy, is crucial in earning trust and guaranteeing ongoing customer loyalty [11,12,13]. The tangibles, reliability, responsiveness, assurance, and empathy characterize the service experience in order to measure the service quality [2]. Alongside these advances is the role that fintech plays in redefining consumer satisfaction and experiences, hence driving or inhibiting the behavioral intents of customers to continue or stop their use of a service [14,15]. Unfortunately, digital transformation has always been neglected in the banking industry (e.g., toward choosing fintech) in order to change customers’ behaviors towards achieving a sustainable performance. In addition, digital awareness was not properly given to Saudi customers; therefore, this study particularly boosts a bank’s sustainable performance via the fintech service quality with the factors digital transformation and awareness.

Moreover, the ability of organizations, particularly those in the banking industry, to adapt to and survive amidst technological upheavals is crucial to their long-term relationships [16,17]. This is especially true in the banking industry. When discussing the performance of companies in this context, “sustainable performance” refers to their capacity to assure long-term sustainability, resilience, and relevance in an economy that is becoming increasingly digital [18,19]. Additionally, the relationship among digital transformation, behavioral goals about fintech, and performance has yet to be thoroughly investigated [20]. In addition, the influence of digital awareness, which is becoming an increasingly important aspect in the modern information age, still needs to be researched as a possible moderating force. In the modern era of digital technology, Saudi banks risk misaligning their objectives, misallocating their resources, and missing out on possible avenues for growth and consumer involvement if they do not have this understanding [2].

The Saudi banking fintech industry has grown and transformed due to the digital transformation and financial technology integration. A major research gap is Saudi Arabia’s fintech innovation is enablers and barriers. For example, Makki and Alqahtani [3] used a hybrid approach to enhance fintech awareness in the Kingdom of Saudi Arabia, but more research is needed on fintech companies’ regulatory, technological, and market barriers. Its cultural and regulatory differences from other global markets make the Saudi market better positioned regarding challenges and opportunities [11]. Khan and Abdulrahman [11] showed the findings on fintech’s impact on financial mediators between Saudi Arabia and other GCC economies, which emphasizes the need to contextualize fintech growth and challenges in the Saudi regulatory and economic ecosystems.

In addition, Abad-Segura et al. [21] examined the role of digital transformation in higher education. Ali and Raza [22] and Fianto et al. [10] examined the effects of service quality dimensions on customer satisfaction in Islamic banking. Gil-Gomez et al. [23] introduced the customer relationship management process with the digital transformation to sustainable innovation. Hanafizadeh and Khedmatgozar [24] examined the mediating roles of the factors of perceived risk on the effects of customer awareness regarding the adoption of Internet banking in Iran. Unfortunately, no study was found to measure the service quality of fintech with the factors digital transformation and awareness in order to achieve a sustainable performance. The resource-based view (RBV), which holds that digital resources drive performance, is supported by Al-qararah et al. [25] using an empirical analysis of fintech infrastructure, showing a clear relationship between the technological infrastructure and having a competitive advantage. The exploration of the European fintech industry’s relationship with bank-affiliated VCs by Turki and Nahidi [26] also emphasizes the significance of employing strategic resources in the digital transformation towards sustainability. Therefore, these previous works strongly contribute to the background of this study.

Another research gap is Saudi Islamic banking customers’ perceptions and adaptability to fintech solutions. Oladapo et al. [2] compared Malaysia and Saudi Arabia to examine customers’ fintech adaptability perceptions in the Islamic banking sector and found significant differences. Understanding these research gaps is essential for developing fintech solutions that meet Saudi customers’ expectations and ethical standards, improving customer satisfaction and loyalty in this rapidly changing sector [7,10]. Addressing these gaps will add to the fintech and Islamic banking literature and give Saudi Arabian fintech ecosystem practitioners actionable insights. As a result, the digital revolution in banking has transformed how customers interact with the many aspects of financial services [2]. This research, which takes place against the backdrop of Saudi Arabia’s ongoing digital transformation, attempts to explain the relationship between the quality of fintech services, customer happiness, behavioral intentions, digital transformation, and the sustainability of businesses. In doing so, it hopes to provide practical implications for the financial institutions in Saudi Arabia to become better prepared for the future. Finally, the study offers the following research objectives:

• To examine the influence of the fintech service quality (including tangibles, assurance, responsiveness, reliability, and empathy) on customer satisfaction in the Saudi banking sector;
• To measure the effects of customer satisfaction and fintech behavioral intentions on a firm’s sustainable performance in the Saudi banking sector;
• To examine the mediating role of digital transformation between fintech behavioral intentions and a firm’s sustainable performance in the Saudi banking sector;
• To examine the moderating role of digital awareness on customer satisfaction and a firm’s sustainable performance in the Saudi banking sector.

This study put the background of the study, research gaps, problem statement, and research objectives in the Introduction section. Second, the study discusses the literature reviews and then develops the research hypotheses by using the resource-based view (RBV) theory. Third, the study discusses and justifies the use of the research methodologies for this study. Fourth, the study presents the findings of the research from the survey data. Fifth, the study discusses the findings and demonstrates the consistency of the findings with the previous literature. Finally, the study concludes the findings with the implications, limitations, and future directions.

2. Literature Review and Theoretical Framework

2.1. Resource-Based View (RBV) Theory

According to Kozlenkova et al. [27], the resource-based view (RBV) framework emphasizes the significance of the internal resources in achieving a sustainable competitive advantage. According to Wonglimpiyarat [6], a systemic approach is essential in the financial technology business to rationalize operations and exploit opportunities. This echoes the RBV’s emphasis on making the most of the unique resources of each firm to maximize its performance. The perspective of the RBV is aligned with the implementation of technology transformations such as digital and fintech technologies. According to Vial [28], businesses should comprehend the necessity of digital transformation and the myriad of ramifications it has for the company.

The standard of service provided by fintech banking is another significant factor in this change. In a previous study, Oladapo et al. [2] emphasized the importance of implementing fintech solutions in the Islamic banking industry. This finding suggests that the standard of these technological solutions should be such that they meet the specific requirements of a wide variety of consumer groups. This is in line with the findings of Erevelles et al. [29], who discussed how big data consumer analytics are reshaping marketing and emphasizing the critical role that high-quality technical solutions play in comprehending and more effectively catering to customers’ requirements. Lin and Wu [30] studied the importance of dynamic capabilities under the RBV framework, which suggests that the ability to adapt and reconfigure internal resources, particularly with the changes in the technological landscape, substantially affects a company’s performance.

Previous studies also delve into the dynamics of fintech using the RBV theory. For example, Al-qararah [25] empirically investigated the influence of fintech infrastructure on the competitive advantage and overall performance, emphasizing the strategic role of technology in financial sectors. On the other hand, Turki and Nahidi [26] explored the potential benefits fintech firms might derive from institutions with venture capitalists that are associated with banks, providing insights into collaborative finance avenues.

2.2. Fintech Service Quality and Customer Satisfaction

The integration and use of financial technologies (particularly “fintech”) have been at the end of the change in the banking sector worldwide [6]. It is widely held that the factors of fintech significantly contribute to the improvements in customer satisfaction, particularly in developing countries such as Saudi Arabia. The intention to embrace mobile banking apps was also highlighted by Kamdjoug et al. [31], who emphasized the significance of a user-friendly design and interface as crucial, tangible sources. In addition, the terms “competence”, “courtesy”, “credibility”, and “security” are frequently used while discussing assurance in the financial technology. Alzahrani et al. [32] highlighted, using the DeLone and McLean information system success model, how user assurance in digital libraries (analogous to digital banking platforms) contributes to a sense of accomplishment and success. In addition, Paul et al. [8] emphasized the direct relationship between the factors of service quality, which includes all the factors of assurance, and the level of customer satisfaction in both the private and public banking sectors.

Digital transformation and awareness boost bank performances in developed nations. For example, US and European banks use blockchain, AI, and big data analytics to streamline operations, mitigate risks, and improve customer experiences, boosting their performance [28]. However, emerging markets have prioritized fintech adoption and mobile banking integration to increase financial inclusion and bank performances. Studies in Saudi Arabia and Malaysia show how fintech innovations in Islamic banking improve customer satisfaction and bank performance. For example, mobile banking and payment services like M-Pesa have transformed the banking sector in Africa, improving financial inclusion, customer satisfaction, and bank performance [31]. The responsiveness of fintech solutions refers to the capacity of these solutions to cater to the requirements of their respective customers swiftly. Hammoud et al. [9] researched the quality of e-banking services in the Lebanese market. This opinion was mirrored by Harb et al. [15], who emphasized the significance of the responsiveness of digital banking channels, particularly in times of uncertainty, in increasing customer satisfaction.

It is also essential for there to be empathy, which refers to the individualized care and attention that banks give to their customers through the use of fintech. The researchers Sun et al. [33] looked at this aspect through the lens of social capital, and their findings suggested that user satisfaction with IT service delivery significantly relies on the service’s perceived level of empathy for the user. According to Fianto et al. [10], in the context of the Indonesian Islamic banking sector, the quality of the mobile banking service, especially its display of empathy, directly impacted the degree to which customers were satisfied. Ali and Raza [22] found that the factors of service quality significantly enhance customer satisfaction. Fianto et al. [10] also tested the impacts of the factors of service quality in online banking on customer satisfaction. Hammoud et al. [9] also examined the effect of the e-banking service quality on customer satisfaction. Based on the literature reviewed, the study develops the following research hypotheses:

H1. 

Fintech tangibles significantly and positively influences customer satisfaction in the Saudi Arabian banking sector;

H2. 

Fintech assurance significantly and positively influences customer satisfaction in the Saudi Arabian banking sector;

H3. 

Fintech responsiveness significantly and positively influences customer satisfaction in the Saudi Arabian banking sector;

H4. 

Fintech reliability significantly and positively influences customer satisfaction in the Saudi Arabian banking sector;

H5. 

Fintech empathy significantly and positively influences customer satisfaction in the Saudi Arabian banking sector.

2.3. Customer Satisfaction and Intention to Re-Use Fintech

The shift toward financial technology has prompted a deluge of research on how it is incorporated and used in various sectors. In their study on mobile banking, Febrian et al. [34] postulated a strong relationship between the benefits that were supplied, customer satisfaction, and the re-use intention of the service, with customer satisfaction and trust as the variables that mediated the relationship. In addition, Ugwuanyi and Idoko [14] conducted a study on the effects of the qualities of self-service technologies.

In addition, Kim et al. [35] researched the hospitality industry and found that guest satisfaction with smartphone applications was directly and significantly related to the guests’ plans to re-use the technology. Similarly, Wiastuti et al. [36] investigated food delivery applications. They found that the application features significantly affected the degree to which customers were satisfied and their desire to re-use the service again. Oladapo et al. [2] also measured the fintech adaptability based on customer perceptions. Shin [37] also examined the effect of customer satisfaction on the intention to use digital banking in Korea. Based on the literature review, the study develops the following research hypothesis:

H6. 

Customer satisfaction significantly and positively influences the intention to re-use fintech in Saudi Arabian banking sector.

2.4. Intention to Re-Use Fintech and Sustainable Performance of Banks

The global shift toward sustainability is gaining steam. Many studies have highlighted the essential impact that customer satisfaction and experience play in deciding the desire to re-use digital banking services [34,36,37]. Febrian et al. [34] shed light on the inter-relationship among the advantages provided, the customer satisfaction, and the intention to use mobile banking in the shift towards higher sustainability. Shin [37] found that the degree to which a customer is satisfied plays a significant mediating role in the connection between the customer experience and the intention to re-use digital banks in the Korean setting. This narrative was reinforced by Wiastuti et al. [36], who demonstrated the key impact that application qualities play on customer satisfaction and, as a result, their intention to re-use it within the context of the food delivery industry. Using the RBV theory, Lin and Wu [30] also found that the digital capabilities of customers significantly influence the sustainable performance. Kamdjoug et al. [31] also examined the effect of the intention to use mobile banking on the banking performance.

It is possible to view the fintech revolution, particularly in the banking industry, as a factor that drives the overall systemic transformation. Wonglimpiyarat [6] presented a holistic viewpoint on the fintech banking business, emphasizing the industry’s potential for a revolutionary change. Because technological integration in banking delivers more than just operational efficiency, this systemic revolution naturally resonates with the idea of sustainability [2,3]. In addition, Yan et al. [1] intertwined the prospects of insurtech and fintech while highlighting the potential for their enablement in the banking and insurance industries, respectively [1]. There is a dearth of studies, but the study operationalizes a hypothesis based on some evidence:

H7. 

The intention to re-use fintech significantly and positively influences a bank’s sustainable performance in the Saudi Arabian banking sector.

2.5. Customer Satisfaction and Sustainable Performance of Banks

Several studies have highlighted the impact of the quality of digital banking services on customer satisfaction which, in turn, strengthens the sustainable performance. For instance, Harb et al. [15] found a direct effect on consumer satisfaction and the use of digital banking channels, particularly during times of uncertainty. In addition, Shahid Iqbal et al. [38] underlined that the quality of the service provided by banking technologies, a crucial factor in digital banking, directly impacts customer satisfaction and loyalty. Shin [37] researched the digital banking industry in South Korea and reported that customer satisfaction plays an essential part in the decision to utilize digital banks. Similar discoveries have been reported by Febrian et al. [34], who argued that the benefits supplied by mobile banking and the entire customer experience influenced the re-use intentions through pathways of customer satisfaction and trust. These researchers found that customers were more likely to re-use a service if they were satisfied with it. This argument was given additional credence by Ugwuanyi and Idoko [14], who demonstrated that the characteristics of self-service technologies considerably impacted the overall banking experience and, consequently, the re-use intentions.

The banking industry is not an exception. It was hypothesized by Lo Presti et al. [39] that the implementation of digital technologies in healthcare systems encourages sustainable practices and improves engagement, which hints at the possibility of similar dynamics occurring in the banking industry. In addition, Bonn, Cronin, and Cho [40] have shown that sustainable practices considerably alter consumers’ behavioral intentions through their research on organic wine suppliers. In addition, using similarities from sustainable consumption behaviors, Wang et al. [19] suggested that various factors, including trust and satisfaction, impact sustainability-oriented decisions among consumers. Waqas et al. [41] and Junejo et al. [42] examine the effect of customer satisfaction on the sustainable performance in the Chinese manufacturing industries. Finally, the study offers a research hypothesis:

H8. 

Customer satisfaction significantly and positively influences a bank’s sustainable performance in the Saudi Arabian banking sector.

2.6. Mediating Role of Digital Transformation

In the most recent literature, “digital transformation”, often known as incorporating digital technology into all facets of a business, has emerged as one of the most important study topics [20]. According to Westerman, Bonnet, and McAfee [43], the strategic adoption of digital technologies that align with business objectives is the most important factor in determining whether a company succeeds in the modern world. As Mithas, Tafti, and Mitchell [44] point out, this digital transformation has a significant bearing on a company’s strategic decisions, and mainly when those decisions are evaluated in the light of the competitive environment in which the company operates. Similarly, Warner and Wager [20] contend that for a business to be successful in today’s digital world, it must cultivate dynamic capabilities. According to Evans et al. [45], implementing such sustainable business models is necessary for the modern corporate landscape to generate long-term value. This is supported by the findings of Abad-Segura et al. [21], who investigated the sustainable management of digital transformation in the context of higher education. Abad-Segura et al. [21] found that digital transformation enhances sustainable performance. Gil-Gomez et al. [23] also explored that the digital transformation significantly improves the sustainable performance.

The fast adoption of fintech and e-banking solutions has transformed service delivery and consumer contact, particularly in the banking industry. In their study, Hammoud et al. [9] highlight the significant impact of the e-banking service quality on customer satisfaction in the Lebanese banking sector. Additionally, they hint at the possible consequences for customer retention and long-term sustainability. The research conducted by Zameer et al. [12] and Khan and Fasih [11] provides further support for this viewpoint by demonstrating a direct link between a high service quality and high levels of customer satisfaction, as well as brand loyalty, in the banking industries of Pakistan. Based on the literature, the study offers a research hypothesis:

H9. 

Digital transformation significantly and positively mediates the relationship between the intention to re-use fintech and a bank’s sustainable performance in the Saudi Arabian banking sector.

2.7. Moderating Role of Digital Awareness

According to Nayal et al. [18], sustainable development strategies are essential when determining the performance of sustainable supply chain firms, particularly in this digital age. In addition, Zouari and Abdelhedi [7], who researched consumer satisfaction in the Islamic banking sector during the digital era, provide evidence that lends credence to this point of view. On the other hand, digital awareness refers to an individual’s or organization’s grasp and utilization of digital tools and platforms [46]. In the financial services field, Scott et al. [5] researched the effect that digital awareness, such as the implementation of SWIFT, has had over time on the sustainable performance of banks. Similarly, Khin and Ho [47] underlined that digital technology and the technological capacity can influence the organizational performance, mainly when digital innovation is an intermediate between the two. Khin and Ho [47] found that digital technology and the technological capability significantly and positively increase the organizational performance. Muthuswamy and Nithya [46] also examined the effect of digital awareness on the organizational performance.

Therefore, previous studies demonstrate that there is a definite correlation between digital awareness and increased performance outcomes within the context of the Saudi Arabian banking sector. This further solidifies the mediating role that digital awareness plays. In their study, Muthuswamy and Nithya [46] explore the cyber domain and highlight the significance that cybersecurity plays in impacting people’s performance in digital workplaces. Finally, the study offers a research hypothesis:

H10. 

Digital awareness significantly and positively mediates the relationship between the intention to re-use fintech and a bank’s sustainable performance in the Saudi Arabian banking sector.

Finally, the study develops a theoretical framework based on evidence from the literature (Figure 1).

3. Research Methods and Data Collection

3.1. Research Design

In light of understanding complex relationships and mediating and moderating effects, the study adopted a cross-sectional design frequently used in service quality and customer satisfaction assessments [12]. This design offers the advantage of capturing insights and drawing patterns at a specific point in time. Considering the dynamism and rapid evolution of fintech and digital banking ecosystems, a snapshot approach was considered optimal. The online survey method was deemed most effective given the context of digital banking, fintech adoption, and the prevailing conditions that favor online data collection [16].

Survey-based quantitative research is used because it justifies empirical data from a large sample for generalizability and statistical analysis. Survey research methods are efficient and effective at gathering standardized data from diverse populations, according to Fowler [48]. Dillman et al. [49] also note that quantitative methods can test hypotheses and establish patterns in human behavior, making them ideal for understanding digital transformation trends, as discussed by Vial [28].

3.2. Sample Size and Data Collection

Quantitative survey research offers statistically valid results, enabling generalization to larger populations [48]. Surveys provide a structured approach to collecting standardized respondent data, ensuring consistency and reliability [48]. Their scalability allows for capturing diverse perspectives across a broad audience [49]. Moreover, the quantitative analysis of survey results facilitates objective assessments and hypothesis testing [50]. Therefore, the study uses a quantitative research method by using a survey questionnaire method.

The information about customers was obtained from the banks to ensure that the customer data will not be misused. However, the information about customer-care officers was obtained from the same bank where the data were collected. A permission letter was dropped in front of the respondents to ensure that data were kept confidential. The study targets those customers who experienced digital banking and were doing digital banking using different banking applications. As well, the study targets customer-care officers who were dealing with digital online banking services to their customers. Email and WhatsApp contacts were obtained for customers and customer-care officers by visiting the bank branches physically. In this way, the study collected the data using an online survey questionnaire. The study targets the customers and customer-care officers from the same banks to pair the sample size.

The study conducted an online survey questionnaire. The researcher prepared an online survey questionnaire and sent links to 489 customers and 489 customer-care officers in Saudi banks. The selection of the sample size was based on the criteria of Comrey and Lee [51], who suggested that a 400 and above sample size is excellent for a survey method. The study targeted a sample size of 489, and the data were collected from customers and banking staff in Saudi Arabia. The survey questionnaire was divided into 3 sections: the1st section for the demographic information; the 2nd section for customers who responded to fintech service quality and its dimensions (tangibles, responsiveness, assurance, reliability, and empathy), customer satisfaction, intention to re-use fintech, digital awareness, and digital transformation; and a 3rd section for banking staff who responded to the bank’s sustainable performance. A sample size of 489 was utilized, constituting both banking customers and customer care officers in Saudi Arabian banks. A dual-respondent approach strengthens the study’s durability and credibility [9]. The study employed an online survey methodology. Given the increasing global trend toward digital research approaches and their proven efficacy in gaining diverse and rapid feedback [17], an online survey was deemed suitable. The survey responses were collected on different dates to account for the variability in the response time and to respect the availabilities of the respondents. The researcher received 117 responses from customers and 39 responses from banking staff on 12 May 2023. The response rate was very low, so the researcher sent reminders to the respondents, so he received 178 more responses from customers and 223 additional responses from customer-care officers. Again, after sending reminders, the researcher received an additional 11 responses from customers and 28 responses from customer-care officers, so the response ratio was 306:301. To equalize the survey responses, the researcher then personally visited banks in Saudi Arabia and collected 5 more responses, so the ratio was 306:306 and the response rate was 62.58%.

3.3. Measurement Scales and Literature Support

The survey questionnaire was structured into three sections; it gathered demographic information to ascertain the background knowledge and potentially identify demographic patterns in the responses, a common practice in studies of similar nature. Being reserved for customers, it delved into the fintech service quality. Drawing on Hammoud et al. [9], the fintech service quality, including 3 items for tangibles, 3 items for assurance, 4 items for responsiveness, 5 items for empathy, 5 items for reliability, and 3 items for behavioral intention were adapted from the study of Ali and Raza [22]. The research incorporated 3 items related to customer satisfaction from Lai [52]. The items assessing the firm’s sustainable performance were adapted from the study of Yan et al. [1], utilizing 5 of their measures. The evaluation of the level of digital transformation was based on 3 items from the study by Rodríguez-Espíndola et al. [53]. Additionally, 4 digital awareness measures were drawn from Hanafizadeh and Khedmatgozar’s [24] work. All measurement scales were measured using a 5-points Likert scale ranging from 1 = strongly disagree to 5 = strongly agree. The Likert scale method, commonly utilized in behavioral studies [13], was employed to ensure uniformity and ease of interpretation.

3.4. Data Analysis

Tools such as the Statistical Package for the Social Sciences (SPSS version 26) and structural equation modeling (SEM) [54] were utilized to perform the subsequent data analysis. The statistical package SPSS was utilized for the preliminary study due to its extensive descriptive and inferential capabilities [23]. Additionally, Ringle et al. [55] suggested that PLS-SEM ensures a higher validity and reliability and higher regression coefficients to test the research hypotheses. The stated hypotheses were tested with the assistance of structural equation modeling (SEM). This method has garnered much praise for its capacity to analyze intricate connections. The study used SEM in Smart PLS 4 to test the validity and reliability and then test the research hypotheses [55]. Initial measures included determining the reliability and validity of the survey instrument. The entirety of the analysis was continuously rooted in the insights that were supplied by the academic frameworks that were mentioned.

4. Results of the Study

4.1. Demographic Information

Table 1. Demographic information.

Category	Option	Frequency	Percent	Valid Percent	Cumulative Percent
Fintech apps	Online mobile applications	164	53.6	53.6	53.6
	Tahweel Al Rajhi/STC Pay/Money Express	142	46.4	46.4	100.0
Position level	Lower-level management	77	25.2	25.2	25.2
	Middle-level management	202	66.0	66.0	91.2
	Top-level management	27	8.8	8.8	100.0
Gender	Man	269	87.9	87.9	87.9
	Woman	37	12.1	12.1	100.0
Online banking experience	Less than 1 year	24	7.8	7.8	7.8
1–3 years	112	36.6	36.6	44.4
4–6 years	99	32.4	32.4	76.8
More than 6 years	71	23.2	23.2	100.0
Education	Less than 12 years	4	1.3	1.3	1.3
	14 years	56	18.3	18.3	19.6
	16 years	210	68.6	68.6	88.2
	18 years and above	36	11.8	11.8	100.0

provides an insightful overview of individuals’ demographics. Regarding fintech applications, a majority (53.6%) prefer online mobile applications. However, a significant percentage (46.4%) lean towards specific applications like Tahweel Al Rajhi, STC Pay, and Money Express. In the context of position levels, middle-level management dominates the group with 66%, indicating that most survey or data set respondents are at this level in their professions. Lower-level management follows at 25.2%, while top-level management makes up a smaller percentage at 8.8%. Gender-wise, there is a significant skew towards male respondents, who comprise 87.9% of the sample. Female respondents account for only 12.1%. The majority (36.6%) have an experience range of 1–3 years. Those with 4–6 years and those with more than 6 years have a close number at 32.4% and 23.2%, respectively. A small fraction (7.8%) have less than a year’s experience.

Lastly, regarding education, a significant majority (68.6%) have completed 16 years, suggesting a bachelor’s degree. Those with 18 years and above indicate the completion of postgraduate studies, make up 11.8%. Those with 14 years may represent the completion of an associate degree or some college courses, accounts for 18.3%. A mere 1.3% have less than 12 years of education. The dominance of the 16 years category indicates that most respondents are well educated, holding at least a bachelor’s degree. Finally, Table 1 showcases a group that is mainly men, middle management, educated (primarily to bachelor’s level), with a decent experience in online banking, and a slight preference for generic fintech apps over specific ones.

4.2. Assessment of Measurement Model

Using the threshold criteria from the previous studies, the study concludes the findings of

Table 2. Validity and reliability.

Scales	Items	Factor Loadings	Cronbach Alpha	Composite Reliability	AVE
Assurance			0.790	0.877	0.704
	ASS1	0.862
	ASS2	0.844
	ASS3	0.811
Bank’s sustainable performance			0.860	0.899	0.641
	FSP1	0.834
	FSP2	0.776
	FSP3	0.802
	FSP4	0.800
	FSP5	0.791
Customer satisfaction			0.751	0.857	0.667
	CS1	0.816
	CS2	0.828
	CS3	0.806
Digital awareness			0.841	0.893	0.676
	DA1	0.766
	DA2	0.867
	DA3	0.816
	DA4	0.838
Digital transformation			0.789	0.877	0.704
	DT1	0.792
	DT2	0.839
	DT3	0.882
Empathy			0.897	0.925	0.711
	EMP1	0.726
	EMP2	0.886
	EMP3	0.873
	EMP4	0.882
	EMP5	0.839
Intentions to re-use fintech			0.723	0.844	0.645
	FBI1	0.815
	FBI2	0.864
	FBI3	0.725
Reliability			0.778	0.857	0.599
	REL1	0.763
	REL2	0.769
	REL3	0.763
	REL5	0.800
Responsiveness			0.837	0.891	0.673
	RES1	0.739
	RES2	0.849
	RES3	0.836
	RES4	0.851
Tangibles			0.704	0.790	0.560
	TAN1	0.732
	TAN2	0.789
	TAN3	0.810

Note: AVE = average variance extracted.

by testing convergent validity and reliability. The study runs a series of algorithm techniques, because some items were lower than 0.70, so they were deleted from the model due to validity and reliability issues. For robust convergent validity, the factor loadings of each item should be above 0.7 [54]. Observing Table 2, all the items meet this criterion, with factor loadings greater than 0.7, which indicates good convergent validity. Additionally, the AVE should be above 0.5 [55]. In Table 2, all the scales have AVE values above 0.5. This further supports the presence of robust convergent validity.

On the other hand, for good reliability, Cronbach alpha and composite reliability (CR) should be above 0.7 [23]. From the data, all scales in Table 2 meet this criterion, with values ranging from 0.704 to 0.897, suggesting a strong reliability. Meanwhile, the CR should be above 0.7 [54]. All scales in Table 2 have CR values exceeding this threshold, suggesting an excellent reliability.

The data exhibits strong convergent validity based on the factor loadings and AVE values for each scale. All factor loadings are above the recommended 0.7 thresholds, and the AVE values for all constructs exceed the suggested value of 0.5. The reliability of the scales is also very promising. Both the Cronbach alpha and CR values for each scale surpass the accepted threshold of 0.7, signaling that the scales are reliable. Finally, the scales used in Table 2 show strong evidence of convergent validity and reliability based on the threshold criteria set by Abad-Segura et al. [21], Henseler et al. [54], Ringle et al. [55], and Gil-Gomez et al. [23]. Finally, the study meets the acceptance of convergent validity and reliability.

The cross-loadings in

Table 3. Cross-loadings.

Items	1	2	3	4	5	6	7	8	9	10
ASS1	0.862	0.439	0.363	0.406	0.402	0.434	0.401	0.520	0.557	0.509
ASS2	0.844	0.512	0.349	0.432	0.431	0.446	0.490	0.453	0.584	0.557
ASS3	0.811	0.472	0.337	0.494	0.427	0.525	0.473	0.509	0.662	0.471
CS1	0.285	0.425	0.816	0.379	0.482	0.373	0.377	0.376	0.254	0.407
CS2	0.354	0.517	0.828	0.479	0.458	0.490	0.435	0.451	0.374	0.409
CS3	0.376	0.489	0.806	0.441	0.582	0.442	0.425	0.455	0.444	0.431
DA1	0.360	0.462	0.358	0.766	0.385	0.469	0.375	0.480	0.444	0.360
DA2	0.541	0.618	0.467	0.867	0.546	0.515	0.551	0.554	0.582	0.498
DA3	0.375	0.564	0.424	0.816	0.428	0.496	0.488	0.454	0.443	0.351
DA4	0.442	0.638	0.491	0.838	0.516	0.521	0.539	0.527	0.491	0.447
DT1	0.457	0.465	0.615	0.522	0.792	0.446	0.447	0.498	0.508	0.453
DT2	0.403	0.528	0.503	0.450	0.839	0.343	0.526	0.449	0.375	0.454
DT3	0.406	0.544	0.466	0.487	0.882	0.329	0.554	0.477	0.376	0.487
EMP1	0.450	0.480	0.385	0.443	0.349	0.726	0.445	0.482	0.395	0.409
EMP2	0.484	0.521	0.460	0.548	0.358	0.886	0.432	0.450	0.484	0.391
EMP3	0.456	0.476	0.461	0.551	0.343	0.873	0.401	0.423	0.493	0.369
EMP4	0.504	0.553	0.510	0.532	0.438	0.882	0.517	0.516	0.486	0.426
EMP5	0.452	0.482	0.434	0.485	0.356	0.839	0.414	0.441	0.448	0.324
FBI1	0.339	0.556	0.391	0.437	0.531	0.404	0.815	0.435	0.314	0.404
FBI2	0.563	0.680	0.448	0.588	0.561	0.489	0.864	0.526	0.482	0.522
FBI3	0.383	0.611	0.378	0.407	0.362	0.361	0.725	0.326	0.318	0.375
FSP1	0.506	0.834	0.485	0.576	0.426	0.502	0.635	0.551	0.540	0.498
FSP2	0.439	0.776	0.444	0.521	0.408	0.493	0.656	0.506	0.401	0.451
FSP3	0.418	0.802	0.480	0.593	0.462	0.506	0.562	0.490	0.487	0.451
FSP4	0.407	0.800	0.508	0.557	0.591	0.435	0.615	0.438	0.427	0.453
FSP5	0.491	0.791	0.433	0.559	0.565	0.452	0.607	0.522	0.548	0.536
REL1	0.493	0.549	0.437	0.462	0.482	0.459	0.437	0.763	0.466	0.560
REL2	0.370	0.445	0.385	0.516	0.387	0.391	0.426	0.769	0.399	0.427
REL3	0.447	0.420	0.347	0.447	0.372	0.424	0.383	0.763	0.474	0.435
REL5	0.501	0.507	0.445	0.476	0.485	0.418	0.424	0.800	0.547	0.564
RES1	0.500	0.402	0.336	0.460	0.307	0.396	0.362	0.419	0.739	0.419
RES2	0.572	0.536	0.366	0.456	0.455	0.464	0.395	0.547	0.849	0.453
RES3	0.641	0.547	0.337	0.517	0.415	0.464	0.425	0.504	0.836	0.522
RES4	0.625	0.484	0.408	0.528	0.433	0.473	0.362	0.530	0.851	0.497
TAN1	0.345	0.440	0.303	0.339	0.417	0.275	0.450	0.333	0.317	0.632
TAN2	0.549	0.451	0.408	0.402	0.405	0.401	0.444	0.600	0.499	0.789
TAN3	0.460	0.457	0.419	0.398	0.433	0.337	0.352	0.495	0.459	0.810

indicate the discriminant validity when each item loads more heavily on its respective construct than on other constructs [54]. The data show that most items have higher loadings on their designated scales compared to off-diagonal values. Overall, the discriminant validity appears to be a generally accepted value.

Table 4. Fornell–Larcker criteria.

	1	2	3	4	5	6	7	8	9	10
Assurance	0.839
Bank’s sustainable performance	0.565	0.801
Customer satisfaction	0.417	0.587	0.817
Digital awareness	0.528	0.701	0.534	0.822
Digital transformation	0.500	0.613	0.622	0.576	0.839
Empathy	0.556	0.596	0.536	0.609	0.439	0.843
Intentions to re-use Fintech	0.541	0.768	0.507	0.601	0.610	0.525	0.803
Reliability	0.589	0.626	0.526	0.614	0.563	0.547	0.541	0.774
Responsiveness	0.714	0.600	0.443	0.598	0.493	0.549	0.469	0.612	0.820
Tangibles	0.611	0.596	0.509	0.508	0.554	0.455	0.545	0.648	0.577	0.748

presents the Fornell–Larcker criterion for assessing the discriminant validity. The diagonal values, representing the square roots of the AVEs, are greater than the off-diagonal values in their corresponding rows and columns, suggesting a satisfactory discriminant validity. This is consistent with Henseler et al. [54], who argue that constructs should have more in common with their indicators than with any other construct’s indicators.

4.3. Assessment of Path Model

Based on the provided results from the regression analysis for each hypothesis (

Table 5. Direct, mediating, and moderating regression effects.

	Beta Value	t-Value	p-Value
H1. Tangibles -> customer satisfaction	0.244	3.192	0.001
H2. Assurance -> customer satisfaction	−0.065	0.872	0.383
H3. Responsiveness -> customer satisfaction	0.049	0.616	0.538
H4. Reliability -> customer satisfaction	0.198	3.071	0.002
H5. Empathy -> customer satisfaction	0.327	4.699	0.000
H6. Customer satisfaction -> intention to re-use fintech	0.507	10.459	0.000
H7. Intention to re-use fintech -> bank’s sustainable performance	0.481	9.751	0.000
H8. Customer satisfaction -> bank’s sustainable performance	0.141	2.613	0.009
Intention to re-use fintech -> digital transformation	0.610	16.962	0.000
Digital transformation -> bank’s sustainable performance	0.058	0.988	0.323
H9. Intention to re-use fintech -> digital transformation -> bank’s sustainable performance	0.035	0.969	0.333
Digital awareness -> bank’s sustainable performance	0.285	5.046	0.000
H10. Digital awareness x customer satisfaction -> bank’s sustainable performance	−0.065	2.039	0.042

, Figure 2), we can discuss and conclude the findings as follows:

H1. Tangibles -> customer satisfaction

With a beta value = 0.244, t-value = 3.192, and p-value = 0.001, the effects of tangibles on customer satisfaction are statistically significant and positive. This hypothesis is accepted because the p-value is less than 0.05 (at a 5% significance level). This means that an improvement in the tangibles could enhance customer satisfaction.

H2. Assurance -> customer satisfaction

For this hypothesis, the beta value = −0.065, t-value = 0.872, and p-value = 0.383. The p-value is more significant than 0.05, indicating that assurance does not significantly affect customer satisfaction in this model. Thus, H2 is rejected.

H3. Responsiveness -> customer satisfaction

Having a beta value = 0.049, t-value = 0.616, and p-value = 0.538, the effect of responsiveness on customer satisfaction is not statistically significant at the 5% level. Therefore, H3 is rejected.

H4. Reliability -> customer satisfaction

With a beta value = 0.198, t-value = 3.071, and p-value = 0.002, the hypothesis suggesting that reliability positively influences customer satisfaction is accepted, since the p-value is less than 0.05.

H5. Empathy -> customer satisfaction

For this relationship, the beta value = 0.327, t-value = 4.699, and p-value = 0.000 indicate a significant positive effect of empathy on customer satisfaction. Thus, H5 is accepted.

H6. Customer satisfaction -> intention to re-use fintech

This hypothesis is accepted, because the beta value = 0.507, t-value = 10.459, and p-value = 0.000. Customer satisfaction significantly and positively affects the intention to re-use fintech.

H7. Intention to re-use fintech -> bank’s sustainable performance

With a beta value = of 0.481, t-value = 9.751, and p-value = 0.000, the intention to re-use Fintech significantly and positively affects the sustainable performance of the bank. H7 is accepted.

H8. Customer satisfaction -> bank’s sustainable performance

Given the beta value = 0.141, t-value = 2.613, and p-value = 0.009, customer satisfaction has a statistically significant positive effect on the sustainable performance of the bank, leading to the acceptance of H8.

Intention to re-use fintech -> digital transformation

This relationship is represented by a beta value = 0.610, t-value = 16.962, and p-value = 0.000, suggesting that the intention to re-use Fintech significantly and positively influences digital transformation.

Digital transformation -> bank’s sustainable performance

With a beta value = 0.058, t-value = 0.988, and p-value = 0.323, the relationship is not statistically significant at the 5% level.

H9. Intention to re-use fintech -> digital transformation -> bank’s sustainable performance

For this mediated relationship, the beta value = 0.035, t-value = 0.969, and p-value = 0.333 show no significant effect, leading to the rejection of H9.

Digital awareness -> bank’s sustainable performance

Given the beta value = 0.285, t-value = 5.046, and p-value = 0.000, digital awareness significantly and positively affects the sustainable performance of the bank.

H10. Digital awareness x customer satisfaction -> bank’s sustainable performance

The interaction term has a beta value = −0.065, t-value = 2.039, and p-value = 0.042. This suggests that while digital awareness and customer satisfaction jointly influence a bank’s sustainable performance, the effect is negative. H10 is accepted.

Figure 3 illustrates the moderating effect of digital awareness on the relationship between customer satisfaction and the bank’s sustainable performance. Banks with high digital awareness maintain a consistent, sustainable performance, regardless of customer satisfaction levels. Conversely, banks with a low digital awareness see an increased sustainable performance as customer satisfaction rises. This suggests that high digital awareness can buffer banks from the negative impacts of low customer satisfaction.

4.4. Assessment of Model Fitness

The findings present the R-squared and R-squared adjusted values for different constructs, which provide insights into the explanatory power of the model and the fit with the data. The R-squared values indicate the proportion of variance in the dependent variable that the independent variables in the model can explain [56,57]. The findings showed that the bank’s sustainable performance has the highest R-squared (0.706), suggesting a strong model fit as explained by the behavioral intention and digital transformation. Customer satisfaction and digital transformation have moderate R-squared that values explained by the service quality factors. The intention to re-use fintech has a lower R-squared value (0.257), as explained by the customer satisfaction and digital awareness. Overall, the study showed a good model fitness. The given R-squared values provide a good baseline, but the context, domain knowledge, and model complexity should be considered for the final interpretation [56,57].

5. Discussion

The current era, known as the digital era, is characterized by rapid technological breakthroughs and the subsequent adoption of these technologies in various industries, most notably the banking industry. On the other hand, despite the large number of responses obtained, the overall response rate of 62.58% shows the possibility of non-response bias. Nevertheless, the fact that more replies were collected in person to bring the ratio of customers to banking personnel closer to 1:1 suggests a dedication to preserving a more objective viewpoint. The study’s credibility was significantly improved by using the dual-respondent strategy, which was suggested by Hammoud et al. [9].

The findings of this research, which focuses on the fintech service quality, customer satisfaction, digital awareness, digital transformation, and sustainable performance assessments of banking customers and employees (i.e., customer care officers) in Saudi Arabia, providing valuable insights consistent with earlier research. According to the findings of this study, the quality of a fintech service and its various dimensions—in particular, the tangibles, reliability, and empathy—play a significant role in determining the degree to which customers are satisfied, but responsiveness and assurance did not. The findings of these significant effects are consistent with previous studies, including Pakurár et al. [13], Paul, Mittal, and Srivastav [8], and Ali and Raza [22]. Alzahrani et al. [32] and Harb et al. [15] also stressed the central role of the digital platform’s quality in assuring the end user’s happiness. These findings support that a superior digital service quality can significantly improve user experiences.

In addition, the study examined the effect of customer satisfaction on re-use fintech technology. The findings are consistent with the findings of Febrian et al. [34] and Lai [52]. In addition, Shin [37] and Kim et al. [35] found a direct correlation between positive customer experiences and the intention to re-use digital platforms. Furthermore, the study found that the intention to use fintech significantly and positively influences a bank’s sustainable performance. The study also examined the effect of the intention to use fintech on sustainable performance and the findings are consistent with the previous study of Ugwuanyi and Idoko [14]. Customer satisfaction also directly and significantly influenced the sustainable performance, and the findings are consistent with Waqas et al. [41] and Junejo et al. [42].

Additionally, digital awareness and transformation have become increasingly relevant in today’s fast-paced digital economy. Both Winarsih et al. [17] and Abad-Segura et al. [21] brought attention to the increasing importance of digital transformation, particularly sustainability. This study further emphasizes the impact of digital awareness among customers, which is in line with the findings of Muthuswamy and Nithya [46], who focused on the implications of employees’ digital awareness on their performance. The fact that these studies came to the same conclusions at the same time lends credence to the significance of digital knowledge and its profound impact on customers and workers.

The sustainable performance was a primary focus of the staff in the banking institution’s examination from their point of view. Previous studies conducted by Pakurár et al. [13], Fianto et al. [10], and Zouari and Abdelhedi [7] have demonstrated that there is a substantial association between the quality of service provided and the level of customer satisfaction in the banking industry. The emphasis that was placed in this study on the replies provided by banking personnel offers a fresh perspective and highlights the significance of internal stakeholders in establishing the sustainable performance and encouraging customer satisfaction.

5.1. Managerial Implications

The findings from the study provide managerial implications for Saudi banking industry executives looking to bolster fintech adoption. Firstly, certain factors have a significant positive impact on customer satisfaction, with “empathy” leading the way, followed by “tangibles” and “reliability.” This suggests that banks should invest in providing empathetic customer support, ensure tangible resources are effective, and prioritize the reliability of their services. Surprisingly, “assurance” and “responsiveness” did not significantly influence customer satisfaction, indicating a potential area of re-evaluation or a shift in customer experiences.

Secondly, customer satisfaction strongly influences the intention to re-use fintech, which, in turn, has a robust impact on the bank’s sustainable performance. Furthermore, the intention to re-use fintech significantly drives digital transformation. While digital transformation on its own does not significantly influence a bank’s sustainable performance, it is evident from the study that a strong foundation in fintech can indirectly support this transformation. Additionally, digital awareness directly correlates with sustainable bank performance. However, the interaction between digital awareness and customer satisfaction negatively influences the performance, suggesting that more than merely being digitally aware is needed; the quality and effectiveness of digital initiatives are paramount. Thus, Saudi banks should foster a culture of continuous fintech innovation and quality improvement to ensure sustainable performance and success in the digital age.

5.2. Conclusions

The study concludes that tangibles, reliability, empathy, and customer satisfaction directly affect the intention to re-use fintech as well as the bank’s sustainable performance, highlighting the importance of service quality and customer satisfaction in fintech adoption and bank sustainability. Empathy has the greatest positive impact on customer satisfaction, emphasizing the importance of understanding and meeting customer needs. The significant positive effect of the intention to re-use fintech on digital transformation and a bank’s sustainable performance suggests that customer loyalty to fintech services drives digital advancement and sustainability in banking. The analysis shows that while digital awareness positively affects a bank’s sustainable performance, it negatively modifies the relationship between customer satisfaction and bank performance, suggesting that higher digital awareness may not always enhance the positive impact of customer satisfaction on the sustainable performance. Although positive, the pathway from the intention to re-use fintech through digital transformation to the sustainable performance of a bank is not statistically significant, indicating that fintech adoption directly affects sustainability more than digital transformation.

The study also concludes the findings with limitations and future directions. Tangibles like a business’s appearance, facilities, and tools positively and significantly affect customer satisfaction. Thus, financial institutions should invest in cutting-edge fintech infrastructure and ensure that its user interfaces, physical facilities, and customer tools meet high standards. Assurance and responsiveness do not affect customer satisfaction in Saudi bank fintech. Thus, managers should prioritize the factors with a significant impact. Customer satisfaction is greatly improved by reliability and empathy. Reliability and empathy boost customer satisfaction. Training bank employees to understand and address customer financial technology questions and concerns should be a priority. Since satisfied customers are strongly correlated with fintech use, meeting customers’ needs is important but balanced.

A financial institution’s sustainable performance is linked to fintech re-use intentions. Financial institutions can expect a better long-term performance if more customers use fintech services. Fintech adoption and integration may lead to long-term growth and sustainability for banks. Digital transformation has little impact. Interestingly, digital transformation has little direct impact on a bank’s sustainability. This implies that performance improvement requires more than a digital transformation. Managers should prioritize product quality, integration, and user experience over digital adoption. The strong correlation between digital awareness and bank sustainability suggests that banks should educate customers about fintech services. Digital awareness directly affects bank sustainability. Campaigns, workshops, and online tutorials may raise awareness of this issue.

Although insightful, the study has limitations. First, the research is limited to Saudi Arabia, which may limit its applicability to other cultures and economies. Second, while strengthening the study’s credibility, the dual-respondent approach introduces potential biases, because customers and banking staff have different perspectives. A non-response bias may also be present due to the study’s 62.58% response rate. Future research should expand the study to other Middle Eastern or global contexts to confirm the findings’ universality. Qualitative studies or case analyses would reveal more about the relationship between digital awareness, customer satisfaction, and sustainable performance in fintech.