Building relationship with customers by using technological solutions in commercial banks of Latvia

Purpose – This paper aims to give a short overview on bank/customer relationship experience in the Latvian banking system and the impact of developing technology in banking. Without usage of technology commercial banks cannot provide customers with effective services, but short banking history increases the danger of such a reduced loyalty towards the services supplier. Design/methodology/approach – Literature studies, quantitative surveys combined with in‐depth interviews with bank customers and employees, and experts representing ITC sector. Findings – Satisfaction with services provided is not the only factor influencing customer loyalty level. Customers experiencing a short banking history can be loyal to the service provider due to the lack of financial literacy. A great impact on loyalty level is made by other factors, such as: image, prestige, word of mouth, etc. Research limitations/implications – The sample used for research did not include all 23 commercial banks of Latvia. Further research should be developed to compare customer loyalty levels in the more technologically developed and less technologically developed banks, and additional loyalty‐influencing determinants could be included. Originality/value – An analysis of ITC development in banking side‐effects provides useful information not only for transitional countries but also for developing countries.