This paper aims to analyse perceptions of online service failure-recovery and customer retention in relation to the creation of satisfactory experiences for both customer and providers in the banking sector. In specific, the negative impacts of service failures and the positive effect of recovery strategies are assessed. Online service failures can have adverse impacts on profitability, and on- and offline service failures are inevitable in the service industry. A number of observations are made with implications for customer and provider experience in the banking sector. The purpose of this paper is to divulge predominant academic insight into a consistent provider-customer interaction and unlocks new perceptions for future academic study by examining the phenomenon from the perspectives of both providers and customers.