Purpose: This study investigates how the relationship between dimensions of digital banking services and customer satisfaction differs between public and private banks in India, filling a methodological void in comparative banking research.

Design/methodology/approach: The cross-sectional survey, which consisted of 450 digital banking users, was evenly distributed between public and private sector banking clients (225 from each group) and tested by means of the Partial Least Squares Structural Equation Modeling (PLS-SEM) with Multi-Group Analysis (MGA). Measurement invariance was confirmed via the MICOM approach. The five constructs that form digital service quality include Reliability, App/Website Design, Privacy and Security, Responsiveness, and Assurance and were used as antecedents to Customer Satisfaction, which is a predictor of Customer Loyalty.

Findings: All five dimensions of service quality proved to be a significant predictor of Customer Satisfaction (β = 0.18–0.24, p < .001, R² = .43). Customer Satisfaction was a significant predictor of Customer Loyalty (β = 0.57, p < .001, R² = .33), with the mediator effect being proven for all five dimensions. The results from multi-group analysis suggested that the effect of App/Website Design on Customer Satisfaction was higher in case of the private bank customers, while the effect of Privacy and Security was higher in case of public banks.

Originality/value: The study makes use of a valid PLS-SEM, digital banking service quality framework (EBSQ), and invariance tested multigroup analysis (MGA) for generating insights on digital banking service quality in India specific to ownership.