Bank loyalty in times of crisis: why attachment alone is not enough in a war-torn economy?

PurposeThis study aims to explore how banks might enhance customer attitudinal loyalty in a wartime context, based on emotional attachment and psychological engagement with their digital tools, focusing on Ukraine. In conditions of geopolitical instability, understanding the psychological drivers of loyalty becomes critical for fostering financial systems’ stability.Design/methodology/approachUsing survey data from Ukrainian banking customers, the authors used confirmatory factor analysis and structural equation modeling. Based on a previously validated scale, engagement was modeled as a second-order construct with five first-order dimensions: interaction, visual aesthetics, discovery, identity and civic orientation.FindingsThe results show that emotional attachment does not directly drive loyalty but works indirectly through engagement with digital tools. Visual design and informational discovery emerged as the strongest engagement dimensions, while interaction and civic orientation were weaker. In Ukraine’s wartime context, affective bonds alone are insufficient to sustain loyalty; attachment must be translated into psychological digital engagement to have an effect. These findings remain robust when considering only Ukrainian-headquartered banks or only traditional banks with physical branches, underscoring the central role of digital engagement in maintaining customer loyalty during crisis.Practical implicationsBanks operating in warzones or similarly uncertain environments should prioritize the engagement of customers – in particular, the design and content quality of their digital platforms – to enhance their loyalty. In addition, strengthening the direct psychological and emotional connection with them could offer another lever for improving loyalty. This suggests that while customers may feel proud of or connected to their domestic banks, these sentiments remain largely symbolic unless reinforced by tangible, engaging experiences with digital banking services.Originality/valueThis research provides new insights into banking consumer loyalty under extreme uncertainty, contributing to the literature on customer loyalty and consumer behavior during crisis. It positions digital banking tools not just as a service channel, but as a psychological anchor for customers in times of societal disruption.