In the recent years the way to do banking has changed. Internet banking has grown and a lot of niche banks working mainly with the Internet as a medium has entered the Swedish bank market. How to keep the customer loyal online in a very competitive environment has become a main question for the banks.

The aim of this dissertation is to test what factors impact bank customer loyalty in an online environment. A positivistic research philosophy, a deductive research approach, an explanatory purpose and a quantitative research method are adopted for the research.

It was found that customer satisfaction, corporate image and brand reputation and generation are factors that impact bank customer loyalty online. Switching costs, perceived service value and commitment show tendencies to impact bank customer loyalty online.

Since little research has been done on the topic bank customer loyalty, this dissertation may be of interest for researchers on customer loyalty and also for research on online loyalty for service companies. Moreover, the findings can be used as guidance for banks that want to develop their online banking and want to make sure they do everything possible to have loyal customers.