Cyber Security Measures as Determinants of Customers' Loyalty: Evidence from the Nigerian Banking Industry
Article Sidebar
Main Article Content
Abstract
With the expansion of the digital presence of financial institutions, the complexity and intensity of cybercrime has increased, forcing banks to implement more resilient security systems to protect confidential information of their customers and maintain the confidence level among the participants of the financial ecosystem. Hence, cyber security measures as determinants of customers' loyalty: evidence from the Nigerian banking industry was investigated. Specifically, it examined the effect of biometric verification, multi-factor authentication, security awareness campaigns on customer loyalty in Nigeria banking industry. Descriptive survey was adopted using questionnaire to examine a sample of 377 active customers of the selected five banks in Kwara State. The obtained data was analyzed using PLS-SEM through SmartPLS. Findings revealed that multi-factor authentication has the strongest effect on customer loyalty (β = 0.385, t = 10.312, p < 0.001), followed by security awareness campaigns (β = 0.288, t = 5.036, p < 0.001), and biometric verification (β = 0.256, t = 4.333, p = 0.001). It concluded that cyber-security measures is significantly vital for customer loyalty in Nigerian banking industry. It therefore strongly recommended that Nigerian banks should prioritize cybersecurity especially by focusing strongly on multi-factor authentication as the cornerstone of its cybersecurity strategy. This should include implementing tokenized access and adaptive authentication systems bank-wide.
Article Details
This work is licensed under a Creative Commons Attribution 4.0 International License.
References
Abbas, A., & Sallal, Z. (2025). Hybrid biometric authentication for banks security improvements. Journal of Discrete Mathematical Sciences and Cryptography. https://doi.org/10.47974/jdmsc-2030.
Adejumo, A., & Ogburie, C. (2025). The role of cybersecurity in safeguarding finance in a digital era. World Journal of Advanced Research and Reviews. https://doi.org/10.30574/wjarr.2025.25.3.0909.
Afiyah, E., Rizan, M., & Usman, O. (2025). Analysis of Mobile Banking Usage in Increasing Customer Trust and Loyalty. Journal of Economics, Management and Trade. https://doi.org/10.9734/jemt/2025/v31i11268.
Asmar, M., & Tuqan, A. (2024). Integrating machine learning for sustaining cybersecurity in digital banks. Heliyon, 10. https://doi.org/10.1016/j.heliyon.2024.e37571.
Ayinaddis, S., Taye, B., & Yirsaw, B. (2023). Examining the effect of electronic banking service quality on customer satisfaction and loyalty: an implication for technological innovation. Journal of Innovation and Entrepreneurship, 12, 1-18. https://doi.org/10.1186/s13731-023-00287-y.
Badrinarayanan, V., & Ramachandran, I. (2024). Relational exchanges in the sales domain: A review and research agenda through the lens of commitment-trust theory of relationship marketing. Journal of Business Research. https://doi.org/10.1016/j.jbusres.2024.114644.
Bajwa, I., Ahmad, S., Mahmud, M., & Bajwa, F. (2023). The impact of cyberattacks awareness on customers' trust and commitment: an empirical evidence from the Pakistani banking sector. Inf. Comput. Secur., 31, 635-654. https://doi.org/10.1108/ics-11-2022-0179.
Boorugupalli, K., Kulkarni, A., Suzana, A., M, D., Ponnusamy, S., & S., K. (2025). Cybersecurity Measures in Financial Institutions Protecting Sensitive Data from Emerging Threats and Vulnerabilities. ITM Web of Conferences. https://doi.org/10.1051/itmconf/20257602002.
Brown, J., Crosno, J., & Tong, P. (2019). Is the theory of trust and commitment in marketing relationships incomplete? Industrial Marketing Management. https://doi.org/10.1016/j.indmarman.2018.10.005.
Buhler, R., De Oliveira Santini, F., Ladeira, W., Rasul, T., Perin, M., & Kumar, S. (2023). Customer loyalty in the banking sector: a meta-analytic study. International Journal of Bank Marketing. https://doi.org/10.1108/ijbm-08-2023-0484.
Dorosh, I. (2023). Cyber security and its role in the financial sector: threats and protection measures. Economics. Finances. Law. https://doi.org/10.37634/efp.2023.10.10.
Dubey, R., Altay, N., & Blome, C. (2019). Swift trust and commitment: The missing links for humanitarian supply chain coordination? Annals of Operations Research, 1-19. https://doi.org/10.1007/s10479-017-2676-z.
Elumaro, A., & Obamuyi, T. (2018). Card Frauds and Customers' Confidence in Alternative Banking Channels in Nigeria. European Scientific Journal, ESJ. https://doi.org/10.19044/esj.2018.v14n16p40.
Fatoki, J. (2023). The influence of cyber security on financial fraud in the Nigerian banking industry. International Journal of Science and Research Archive. https://doi.org/10.30574/ijsra.2023.9.2.0609.
Febriawan, M., Lakilaki, E., Ariefandri, D., Saputra, R., Wijaya, P., & Manikam, D. (2024). Assess The Impact Of Cyber Crime Mitigation Strategies On Islamic Banks In Bandar Lampung City. Jurnal Ekuilnomi. https://doi.org/10.36985/0n4h9r29.
Hassan, A., Ewuga, S., Abdul, A., Abrahams, T., Oladeinde, M., & Dawodu, S. (2024). Cybersecurity in Banking: A Global Perspective With a Focus on Nigerian Practices. Computer Science & IT Research Journal. https://doi.org/10.51594/csitrj.v5i1.701.
Iqbal, K., Munawar, H., Inam, H., & Qayyum, S. (2021). Promoting Customer Loyalty and Satisfaction in Financial Institutions through Technology Integration: The Roles of Service Quality, Awareness, and Perceptions. Sustainability. https://doi.org/10.3390/su132312951.
Jafri, J., Amin, S., Rahman, A., & Nor, S. (2023). A systematic literature review of the role of trust and security on Fintech adoption in banking. Heliyon, 10. https://doi.org/10.1016/j.heliyon.2023.e22980.
Johri, A., & Kumar, S. (2023). Exploring Customer Awareness towards Their Cyber Security in the Kingdom of Saudi Arabia: A Study in the Era of Banking Digital Transformation. Human Behavior and Emerging Technologies. https://doi.org/10.1155/2023/2103442.
Junaid, A. (2024). Theory Review: Factors Affecting the Level of Trust and Commitment in the Supply Chains of High-tech Companies. International Journal of Advanced Engineering and Management Research. https://doi.org/10.51505/ijaemr.2024.9303.
Kim, L., Jindabot, T., & Yeo, S. (2024). Understanding customer loyalty in banking industry: A systematic review and meta analysis. Heliyon, 10. https://doi.org/10.1016/j.heliyon.2024.e36619.
Mahadevan, G. (2025). Cybersecurity in Banking and Financial Software Solutions. Economic Sciences. https://doi.org/10.69889/0btn6w55.
Makudza, F. (2020). Augmenting customer loyalty through customer experience management in the banking industry. Journal of Asian Business and Economic Studies. https://doi.org/10.1108/jabes-01-2020-0007.
Mbama, C., & Ezepue, P. (2018). Digital banking, customer experience and bank financial performance: UK customers' perceptions. International Journal of Bank Marketing, 36, 230-255. https://doi.org/10.1108/ijbm-11-2016-0181.
Milan, G., Slongo, L., Eberle, L., De Toni, D., & Bebber, S. (2018). Determinants of customer loyalty: a study with customers of a Brazilian bank. Benchmarking: An International Journal. https://doi.org/10.1108/bij-08-2017-0231.
Mishra, S. (2023). Exploring the Impact of AI-Based Cyber Security Financial Sector Management. Applied Sciences. https://doi.org/10.3390/app13105875.
Morgan, R., & Hunt, S. (1994). The Commitment-Trust Theory of Relationship Marketing. Journal of Marketing, 58, 20-38. https://doi.org/10.1177/002224299405800302.
Mukherjee, A., & Nath, P. (2007). Role of Electronic Trust in Online Retailing: A Re-examination of the Commitment-Trust Theory. Entrepreneurship & Marketing eJournal. https://doi.org/10.1108/03090560710773390.
Mustapha, A., & Sinha, A. (2024). Cyberfraud in the Nigerian Banking Sector: The Techniques and Preventive Measures. International Journal of Innovative Science and Research Technology (IJISRT). https://doi.org/10.38124/ijisrt/ijisrt24aug395.
Nwankwo, C., & Kanyangale, M. (2023). Effect of Cyber Security on Business Sustainability of Listed Microfinance Banks in Nigeria. IJEBD (International Journal of Entrepreneurship and Business Development). https://doi.org/10.29138/ijebd.v6i5.2279.
Ojo, O. (2024). Development of a Three Factor Authentication System for Online Banking. Ajayi Crowther Journal of Pure and Applied Sciences. https://doi.org/10.56534/acjpas.v3i2.114.
Onatuyeh, E., Oghorodi, D., Okpako, E., Ojei, E., Osakwe, G., Chinedu, N., Okoh, S., Odu, V., Chinedu, P., & Nwankwo, W. (2025). Cybersecurity and Business Survival in Nigeria: Building Customer's Trust. African Journal of Applied Research. https://doi.org/10.26437/ajar.v11i1.882.
Oyolola, T., Abubakar, A., Bello, U., & Sani, L. (2023). Electronic customer relationship management and customer retention of deposit money banks in Dutsin-Ma, Nigeria. Journal of Management and Science. https://doi.org/10.26524/jms.13.25.
Panditharathna, R., Liu, Y., De Macedo Bergamo, F., Appiah, D., Trim, P., & Lee, Y. (2024). How Cyber Security Enhances Trust and Commitment to Customer Retention: The Mediating Role of Robotic Service Quality. Big Data Cogn. Comput., 8, 165. https://doi.org/10.3390/bdcc8110165.
Redda, E. (2023). E-banking quality and customer loyalty: The mediating role of customer satisfaction. Banks and Bank Systems. https://doi.org/10.21511/bbs.18(2).2023.15.
Reis, O., Oliha, J., Osasona, F., & Obi, O. (2024). Cybersecurity Dynamics in Nigerian Banking: Trends and Strategies Review. Computer Science & IT Research Journal. https://doi.org/10.51594/csitrj.v5i2.761.
Shankar, A., & Jebarajakirthy, C. (2019). The influence of e-banking service quality on customer loyalty. International Journal of Bank Marketing. https://doi.org/10.1108/ijbm-03-2018-0063.
Uwabor, O., & Ugwuonah, G. (2020). E-Service Quality and Customer Loyalty in Deposit Money Banks in Nigeria. European Journal of Business and Management. https://doi.org/10.7176/ejbm/12-21-04.
Wang, X., Tajvidi, M., Lin, X., & Hajli, N. (2019). Towards an Ethical and Trustworthy Social Commerce Community for Brand Value Co-creation: A trust-Commitment Perspective. Journal of Business Ethics, 1-16. https://doi.org/10.1007/s10551-019-04182-z.
Yen, Y., & Chen, S. (2025). The Triple Pathway to Loyalty: Understanding How Banks' Corporate Social Responsibility Influences Customers via Moral Identity, Service Quality, and Relationship Quality. Sustainability. https://doi.org/10.3390/su17073220.
Zhou, Q., Zhou, Q., Lim, F., Yu, H., Xu, G., Ren, X., Liu, D., Wang, X., Mai, X., & Xu, H. (2021). A study on factors affecting service quality and loyalty intention in mobile banking. Journal of Retailing and Consumer Services. https://doi.org/10.1016/j.jretconser.2020.102424