Assessing the Impact of Digital Banking Service quality on Customer Satisfaction: A Study of Selected Branches of A bay Bank S.C.
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Date
2025-10-26
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Addis Ababa University
Abstract
Despite technological advancements in digital banking, financial institutions continue to face challenges in ensuring customer satisfaction. In Ethiopia, research on digital banking service quality has produced inconclusive findings, particularly concerning cultural and behavioral aspects within financial institutions. This study aimed to assess the impact of digital banking service quality on customer satisfaction at selected branches of Abay Bank S.C. in Addis Ababa. The study investigated six independent variables reliability, responsiveness, assurance, empathy, tangibility and security & privacy with customer satisfaction as the dependent variable. A quantitative approach was adopted, using descriptive and explanatory research designs. Data were collected throughstructured 5-point Likert scale questionnaires distributed to 384 digital banking customers, with 339 valid responses analyzed. Using SPSS Version 26, the study applied descriptive and inferential statistics, including multiple linear regression analysis. The findings indicated that customers were generally moderately to highly satisfy with Abay Bank’s digital services. Among
quality dimensions, Assurance (β = 0.252) and Security & Privacy (β = 0.217) had the most significant positive impact on customer satisfaction, followed by Empathy, Tangibility, Responsiveness, and Reliability.. The overall model was statistically significant (R² = 0.800, F = 221.545, p < 0.001), explaining 80% of the variance in customer satisfaction. The study concludes that
digital banking service quality significantly affects customer satisfaction, especially in the areas of assurance and security and privacy, with moderate contributions from other service dimensions.
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Keywords
Service Quality, Customer Satisfaction, Digital Banking