ASSESSMENT OF EFFECT E-BANKING SERVICE IN CUSTOMER SATISFACTION IN COMMERCIAL BANK OF ETHIOPIA SELECTED CITY BRANCHES

Abstract

The present study aimed at assessing the effect of e-banking services on customer satisfaction in Commercial Bank of Ethiopia selected city branches. The study used both quantitative and qualitative research approach and the study has employed descriptive research design to see satisfaction of e-banking users. Primary data were collected by using 5-point Likert-scale questionnaire distributed to customers and unstructured interview conducted with Customer Service Managers of Commercial Bank of Ethiopia. A total of 180 questionnaires were filled and returned by the customers who were conveniently selected. The analysis is made by making use of descriptive statistic and frequency. The empirical result shows that customers’ level of awareness on the e-banking service is low, the existence of language problem, the unfriendliness of the system, lack of trust on the technology, lack of employees’ knowledge and skill, and also security risk. The major problem faced by Commercial Bank of Ethiopia in relation to e-banking is the frequent network failure due to power interruption and lack of ICT knowledge from customers end and the lack of trust they have on this technology which doesn’t involve cash movement. Thus, Commercial Bank of Ethiopia should attempt to strengthen this service by preparing different media channels to increase awareness and understanding of the service. They also need to increase the confidence of their customers as well as developed skills and knowledge of customers in using e-banking.