Examining the Impact of Service Quality Dimensions on Customer Satisfaction on Digital Banking: an Empirical Study of Abyssinia Bank, Addis Ababa, Ethiopia
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Date
2026-01-02
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Addis Ababa University
Abstract
Digital banking is transforming the financial landscape globally, and Abyssinia Bank in Ethiopia stands at the forefront of this change. This research investigated customer experiences with digital banking services at Abyssinia Bank in Addis Ababa, collecting data from 359 customers. This study explores the impact of service quality dimension’s reliability, responsiveness, assurance, and empathy on customer satisfaction in digital banking services. The study found that consistent system performance and quick problem resolution were the strongest drivers of customer satisfaction, while security assurances and personalized service had a surprisingly limited impact. Frequent technical issues, especially during peak times, along with delayed transaction processing and insufficient status updates, led to significant customer frustration. These findings suggest that Ethiopian banking customers prioritize functional reliability over emotional connection in digital channels. The study offers actionable insights for digital banking strategy development in emerging African markets, indicating that investments in technical infrastructure and operational efficiency may yield greater customer satisfaction returns than enhanced security features or relationship-building initiatives
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Digital banking, customer satisfaction, reliability, assurance, empathy, Abyssinia bank