THE EFFECT OF E-BANKING SERVICE ON CUSTOMER SATISFACTION: THE CASE OF SELECTED COMMERCIAL BANKS IN ADDIS ABABA

Abstract

The purpose of the study is assessment of the effect of e-banking service on customer satisfaction the case of selected commercial banks in Addis Ababa. The prime objective of this study was to investigate the electronic banking service dimensions that have effect on customer satisfaction at Dashen bank and Wegagen bank. The study used both quantitative and qualitative research approach using Chi-square and linear regression model for customer satisfaction in electronic banking. To produce this study the researcher designed questionnaire and distributed to 450 respondents. This study used both primary and secondary data to conduct the research. Five point lickert scale questionnaire and interview questions were used to collect primary data of the research selected commercial banks. The secondary data was obtained from published documents such as reports of each bank, related websites, research articles, and organization’s publications relevant to this study of the selected commercial banks. The empirical result shows that service quality dimensions; This study ranked the seven dimensions of customer satisfaction as ease of use, customer support, service security ,service content, performance, safety reliability and transaction efficiency have strong influence on e-banking user’s satisfaction level in the selected commercial banks in Addis Ababa. Challenges of electronic banking operations: national poorly developed telecommunication infrastructure and Lack of infrastructure for telecommunications, internet and online payments impede smooth development and improvements electronic banking operations of the banks. The study recommends a sequence of actions which could be done by the banks and stakeholders. The banks should have to focus on Easy-to-use electronic and also awareness creation programs have to be done redundantly on the existence of e-banking, formal trainings. In addition to these the successful process of E-banking system information communication technology infrastructure, is a major precondition, hence, government, should assist banking sector by investing on information communication technology infrastructure development.