Examining the Role of Emerging Banking Technologies in Shaping Customer Financial Well-being: The Integration of the Expectation Confirmation Model

Abstract

The intensive development of digital technologies has changed the banking business in such developing economies as Pakistan, where AI-based and chatbots are increasingly introduced into customer services. The paper examines these new technologies and their impact on the financial well-being of customers through the Expectation Confirmation Model (ECM). Specifically, it investigates the role of expectation confirmation, perceived usefulness, and satisfaction in financial confidence, control, and financial health in general. The users of the digital banking services in the major urban centers in Pakistan were surveyed on a quantitative basis, and the hypothesized relations were examined using Structural Equation Modeling (SEM) with SmartPLS. The results indicate that expectation confirmation, perceived usefulness, and satisfaction have a strong positive effect on the financial well-being due to the availability of services, facilitating informed decision-making, and confidence of the customers in online platforms. The paper expands ECM into the context of AI-based banking and offers practical implications for financial institutions, technology developers, and policy-makers who intend to maximize AI banking solutions to maximize customer satisfaction, trust, and sustainable financial well-being.