Transformative Banking Services and Clients’ Financial Well-Being Among Semi-Urban Bank Clients

This study examined the relationship of banking service quality and transformative banking services with the financial well-being of semi-urban bank clients in Tandag City, Surigao del Sur, Philippines. Using a quantitative descriptive-correlational research design, the study gathered data from 391 clients of selected government, commercial, rural, and savings-oriented banks. Banking service quality was measured using the SERVQUAL dimensions of reliability, responsiveness, assurance, empathy, and tangibility, while transformative banking services were assessed in terms of accessibility and inclusiveness, digital banking availability and usability, transparency and fairness, and customer empowerment and financial education. Clients’ financial well-being was measured through financial security, ability to meet financial obligations, confidence in managing finances, and future financial outlook. Data were analyzed using frequency, percentage, weighted mean, Spearman’s rho, and hierarchical multiple regression. Findings showed that respondents were mostly young adults, female, college-level, employed, lower-income clients, and had moderate banking experience. Banking service quality and transformative banking services were both rated very high, while clients’ financial well-being was rated high. Spearman’s rho revealed significant positive relationships between all banking service quality dimensions and financial well-being, and between all transformative banking service dimensions and financial well-being. Regression results showed that customer empowerment and financial education, accessibility and inclusiveness, digital banking availability and usability, and student employment status significantly predicted clients’ financial well-being. Customer empowerment and financial education emerged as the strongest predictor. The study concludes that clients’ financial well-being is strengthened when banking services are not only reliable and secure but also accessible, digitally usable, inclusive, and educationally empowering.

banking service quality, transformative banking services, financial well-being, digital banking, financial inclusion, semi-urban clients, Philippines

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