The Impact of Electronic Banking on Customer Satisfaction: The Case of Commercial Bank of Ethiopia

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Date

2019-06

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Addis Ababa University

Abstract

The study examined Factors that affecting E-banking satisfaction in commercial bank of Ethiopia. A total of 340 questionnaires for customers and 67 for employee at e-payment department were properly filled and returned and two interviews questions are prepared and asked for two managers and one team leaders of e-payment were conducted and also random sampling were employed. Both primary and secondary data was collected for the purpose of this study. Primary data were collected using likert scale based questionnaires. After the collection of raw data, classification and tabulation was done by the researcher to make it ready for the analysis. And the data was analyzed using descriptive statistics. (Correlation analysis& multiple regression models) and secondary data also used like bank manual, annual reports and different books related to Ebanking were used. The empirical findings show that service quality dimensions (reliability, assurance, responsiveness, empathy and tangibility) have significant relationship with customer satisfaction e-banking. Except Tangibility service quality dimensions (reliability, assurance, responsiveness & empathy) have positive and significant impact on customer satisfaction in e-banking of commercial bank of Ethiopia. The basic challenging problems faced by commercial banks of Ethiopia in relation to E-banking are insecurity, erratic power supplies, as well as difficulty in transacting business electronically were the main challenges associated with electronic Banking. Also Infrastructure (telecommunication and power), lack of centrally followed country initiative in similar manner with other African countries, strong cash habit, technology phobia, lack of trust on it and lack of Merchants’ willingness in relation with POS service are external challenge. Poor employee awareness in terms of service delivery, maintenance support and lack of a comprehensive performance measurement system are internal challenges Finally in the last part of the study recommendation of the study is presented

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Keywords

Customer satisfaction, E-banking, SERVQUAL model

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