The Effect of E-banking Services on Customer Satisfaction: The Case of Selected Commercial Banks in Ethiopia

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Addis Ababa University


Today almost all banks in Ethiopia are adopting e banking service system as a means of enhancing their service quality and customers satisfaction. This time customers are also evaluating their banks in the light of e service era. Therefore Banks should provide the level of e – banking service quality demanded by customers. . This paper examined “The effect of e - banking services on Customer satisfaction: The case of selected commercial banks in Ethiopia”. To do so it used the conceptual model that measures the effect of e banking service quality dimensions on customer satisfaction that developed by Rangsan N. & Titida N. (2013) which used six dimensions (reliability, transaction efficiency, customer support, service security, ease of use & performance).The instrument measured e – banking service performance by using thirty one indicators that belong to the six e – banking service quality dimensions. The instrument was tested for reliability and validity before the questionnaire was distributed to 385 customers of the selected commercial banks of Ethiopia ( Commercial bank of Ethiopia, Dashen Bank, United Bank & Cooperative Bank of Oromia), in their Addis Ababa branches. In this quantitative survey, Hypothesis was tested to find out whether the e – banking service quality dimensions had a significant effect on customer satisfaction. The results indicated that all the dimensions had a significant effect on customer satisfaction except customer support & performance. Also the regression analysis indicated the two most dominant service quality dimensions from among the six dimensions to be transaction efficiency followed by reliability. The finding of this study is important to help the banks’ managers focus their attention on the e - banking service quality dimension that matters most to customers.



E banking service system, service quality, Customer Satisfaction