Customer loyalty is a critical determinant of sustainable growth in the increasingly competitive digital banking sector, driven by the rise of AI-powered personalisation. This study examines the influence of perceived usefulness, perceived ease of use, and service quality on customer loyalty, with customer experience as a mediating variable. The research aims to provide a holistic understanding of how functional and experiential factors collectively foster loyalty, addressing gaps in existing literature that often prioritise technological adoption over experiential outcomes. Data were collected via electronically distributed survey questionnaires, employing a purposive sampling technique due to the absence of a complete sampling frame. After distribution, 381 clean responses were retained for analysis from 501 distributed surveys, yielding a response rate of 79.6%. The data were analysed using Partial Least Squares Structural Equation Modelling (PLS-SEM) via SmartPLS 4, which allowed for simultaneous assessment of the measurement and structural models. All 11 hypotheses were supported, confirming significant direct and indirect effects. Perceived ease of use positively influenced perceived usefulness and customer experience, while service quality emerged as the strongest predictor of loyalty. Customer experience significantly mediated the relationships between the independent variables and loyalty. The study offers practical implications for digital banks to enhance user interfaces, personalise services, and improve service reliability to foster loyalty. Theoretical contributions include the integration of the Technology Acceptance Model and SERVQUAL theory within an AI-enabled banking context. Future research should incorporate variables like trust and privacy concerns, explore cross-cultural contexts, and employ longitudinal designs to deepen understanding of loyalty dynamics. This study underscores the necessity of balancing technological innovation with experiential excellence to achieve long-term customer loyalty.
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