Factors Influencing Customer’s Loyalty in the Case of Mobile Banking in Hibret Bank Kality Sheger Branch
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Date
2022-06
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Addis Ababa University
Abstract
Now a days bank users can now conduct banking transactions using mobile banking due to the merging of banking services and mobile technologies. The main goal of this study is to determine whether aspects of mobile banking at Hibret Bank (HB) share company affect customer loyalty. In order to analyze the factor on customer loyalty of the bank in case of mobile banking, the research employed Convenience (perceived usefulness and perceived ease of use), perceived trust, perceived risk, perceived cost, and infrastructure as an independent variable. Data for the study was collected through a closed-ended questionnaire which was distributed to400 respondents and analysis of findings is done based on 348 complete responses. The study employed mean and standard deviationfrom SPSS for analysis. Accordingly, the research has found that customers in the HB perceived that mobile banking service is useful and easy to use. According to the survey questionnaire,88.8% of the respondents are Customers who are using mobile banking services.The multiple regression results showed that all the independent variables: (convenience, trust, risk, cost, and infrastructure) have a significant positive effect on customer loyalty in Hibret Bank Share Company at a 5% level of significance. More importantly, the regression result indicated that(convenience(0.341, p<0.05 ), infrastructure(0.322, p<0.05), and trust(0.227, p<0.05)dimensionswere found to be the first, second, and third significant variables considered for the customer loyalty of Hibret bank. Whereas, among all the independent variables; risk(0.078, p<0.05) is the least contributingto the customer loyalty at Hibretbank.Furthermore, it recommends that the bank needs to make an effort on each variables to gain the loyalty of customer on mobile banking. to further build uployalty with customers, the bank need to continuously make changes on convienece(ease of use and usefulness) by creating awareness. In addition with the collaboration of other govermntal and non- governmental organization upgrading infrastructure and solving the oroblem continuosly. Further more concerning about trust, demonstrate their ability to provide secure value-adding services, their intention to be fair and honest concerning customers’ requirements.
Keywords Customer loyalty, Convenience, Perceived Risk, Trust, Cost, Hibretbank (HB), mobile banking