The Effect of Digital Banking Service Quality on Customer Satisfaction in Selected Branches of Awash Bank in Addis Ababa City Administration

Abstract

This research examined the effect of digital banking service quality on customer satisfaction in selected branches of Awash bank in Addis Ababa. To achieve the objectives of this study, data was collected through questionnaire from a sample of 387 customer of the bank. These respondents were selected using cluster and convenience sampling method. The data collected from the questionnaire were analyzed using Statistical tools such as mean, standard deviation, correlation, and multiple regression analysis. The results of this study indicate that, all the five service quality dimensions (tangibility, reliability, assurance, empathy and responsiveness) have positive and significant relationship with customer satisfaction. The finding of this study also indicates that customers were most satisfied with the information available in the website, friendly and easy use of the digital banking and Safety & protection) mechanism. On the contrary, customers were less satisfied with accuracy of data in digital banking and the up to date information in the bank. Furthermore, the service quality dimensions (tangibility, reliability, empathy and responsiveness) significantly explain 54 % of the variations in customer satisfaction in Awash Bank S.C. Assurance service dimension was considered as one of the most important factors influencing customer satisfaction in Awash Bank. Finally, the study suggests that Awash bank tries to work hard in addressing service empathy and other quality service dimensions so that they can retain their customer and attract even new custom