THE ROLE OF E-BANKING SERVICE QUALITY ON CUSTOMER SATISFACTION 􀀀A CASE OF COMMERCIAL BANK OF ETHIOPIA

Abstract

The introduction of electronic banking into the banking sector is to bring customer satisfaction thereby to enhance the banks’ profitability and service excellence. In today’s competitive environment delivering high-quality service is the key to a sustainable competitive advantage and to maintain existing customers and to convince new ones as well. The Commercial Bank of Ethiopia has been working by executing different strategies to expand its banking service and implementing different products and service channels to increase its customer satisfaction. The main objective of the research was to assess the role of e-banking service quality on customers’ satisfaction by using the five service quality dimensions (tangibility, reliability, responsiveness, assurance, and empathy) of SERVQUAL model in Commercial Bank of Ethiopia. A sample of 120 E-payment users was taken in four CBE branches. The questioner was developed based on five dimensions of SERVQUAL model. The Interview was conducted with branch managers, E-payment officers and Epayment team leader and managers. In the methodology part, the collected data are analyzed using a descriptive statistical tool and also to analyze the effect relationship, regression analysis was implemented using STATA 14.2 and SPSS 23. The major findings of this study were tangibility and empathy of e-banking has been significant factor on customer satisfaction. The researcher concludes that there was a linear relationship between e-banking service quality dimensions and customer satisfaction. The bank must strive to fill the gaps between customers’ expectation and perception in order to retain the current customer and attract new customers as well .There is the need to create awareness and educate majority of the banking population or users on e-banking especially in mobile and internet banking as a recommendation.