THE IMPACT OF ELECTRONIC BANKING SERVICE ON CUSTOMER SATISFACTION IN ADDIS ABABA: THE CASE OF ATM BANKING ON COMMERCIAL BANK OF ETHIOPIA.

Abstract

This study has been conducted with an objective to asses “The impact of electronic banking service on customer satisfaction in Addis Ababa: The case of ATM banking on commercial bank of Ethiopia.” The analysis of this study was made based on a casestudy on CBE customers in Addis Ababa city. The study was conducted based on data collected from customers and management of the bank through questionnaires and unstructured interview. The questions were focused to evaluate the extent of customersatisfaction regarding ATM services of the bank in five service quality dimensions thatincluded tangibility, reliability, responsiveness, assurance and empathy towards ATMs.Moreover, to achieve the research objective the research adopted anexplanatory researchdesign; using both qualitative and quantitative approach. The designed questionnaireswere distributed to 137 ATM card users of the bank. Source of data was primary; primary data were collected by using 5-point Likert-Scale. The samples were selected from five different branches location by purposively sampling technique. Using SPSS, descriptive statistics is used to analyze the data. The research finding shows that that CBE ATM customer‟s level of satisfaction was positive, even though, customers were not happy with some of ATM attributes like promptness in replacement of lost ATM cards, ATM out of order, return of swallowed ATM card, insufficient number of ATM, inaccessibility of ATM and employee to solve ATM related issues and inconvenience of ATM locations. Moreover, the survey result also implied that the management of the bank to pay attention for training and developing staffs‟ skill in using ATM services in addition to installing the ATM in appropriate and accessible places.