The influence of Digitalization on Customer Satisfaction: a Comparative Study on three Commercial Bank Customers in Ethiopia

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2026-01-01

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A.A.U

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The objective of this research is to examine the impact of digitalization on customer satisfaction within commercial banks in Ethiopia. The study utilized an explanatory research design to explore the relationships between the variables under investigation. The target population comprised customers from various branches of the three selected commercial banks. A random sampling technique was employed to select the sample, and data was gathered from respondents using a structured questionnaire. The responses were analyzed using descriptive statistics, with SPSS (Statistical Package for the Social Sciences) as the analytical tool. The findings revealed that robust security measures, the speed and efficiency of digital transactions, and reduced waiting times for information and support positively influence customer satisfaction. A sample size of 384 was determined, and primary data were analyzed. Multiple linear regression analysis was conducted to evaluate both the collective and individual effects of the independent variables on the dependent variable, which is customer satisfaction. The results indicated that factors such as ease of use, personalization, speed and efficiency, Omni channel access, security, service quality, and customer experience were significant predictors of customer satisfaction. The model yielded an R-squared value of 0.687, signifying that it accounted for 68.7 percent of the variance in customer satisfaction. The findings suggest that banks should prioritize enhancing their focus on security issues and data privacy, as highlighted by respondents. Customers are increasingly demanding higher levels of control, security, and privacy from the banking sector elements that significantly influence their satisfaction with banking services. Keywords: Commercial banks, SPSS, Digitalization

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