Effect of Electronic Banking Service Quality on Customer Satisfaction: The Case of Hibret Bank S.C.

Abstract

E-banking is a product designed for the purposes of online banking that enables the customer to have easy, safe and efficient electronic access and service that enables the customer to access their bank account and to carry out online banking services, 24 hours a day, and 7 days a week. Providing high quality service is the key to attain customer satisfaction. The main purpose of this study is to assess the effect of E-banking service quality on customer satisfaction of Hibret Bank. The study used quantitative research approach and employed linear regressions models for the Customers Satisfaction on Electronic Banking and regression were used to see the relationship between independent variables reliability, transaction efficiency, service security, user-friendliness, service performance and customer control on transaction/ customer control on transaction/ personalization with satisfaction of e-banking users. Primary data were collected by using 5-point Likert-scale questionnaire and the study participants were selected using a convenient sampling technique. From 396 questionnaires, 363 of them were properly filled and returned. The mean result revealed that customers satisfaction with the service dimensions of user-friendliness and service security is good and their satisfaction on service reliability, transaction efficiency, service performance and customer control on transaction/ personalization are moderate. The finding from the correlation between dependent and independent variables along with the casual effect result revealed that there is a positive and significant relationship between the service quality dimensions and customer satisfaction. Reliability, Transaction efficiency, User-friendliness/ease of use, service security and Customer control on transaction/ personalization are found to have a moderate correlation with customer satisfaction. While the service dimension service Performance, has a weak correlation with customer satisfaction. The finding from the regression result also indicates service reliability, transaction efficiency, service security, user-friendliness, service performance and customer control on transaction/ personalization have a statistical significance on customer satisfaction. Thus, management bodies of Hibret bank should strive to strengthen these service dimensions.