With the advent of health risks related to gathering of people, banks among other institutions are relying on e-services to reach out to their customers. These services are directly affected by service failure and recovery. This study examines the relationship between effective service recovery, well-established communication structure, customer satisfaction and customer loyalty, in order to provide a better quality service for the millennial customers. Collected data was analysed using the SPSS software. The results show that there is a significant positive relationship between the following attributes: service recovery and customer loyalty, customer satisfaction and positive word-of-mouth, communication and conflict handling on loyalty.