IMPACT OF ELECTRONIC BANKING ON CUSTOMER SATISFACTION
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IMPACT OF ELECTRONIC BANKING ON CUSTOMER SATISFACTION
INTRODUCTION
1.1. BACKGROUND OF THE STUDY
The rapid changes in corporate operations in modern times, as a result of technological advancement, necessitate that banks in Nigeria serve their customers electronically. Banks have traditionally been at the forefront of leveraging technology to better their products and services.
The banking sector and its environment in the twenty-first century are increasingly complex and competitive, necessitating the incorporation of information and communication technologies into bank operations (Stevens, 2002).
Electronic banking is crucial in banks’ transformation efforts in areas such as product and service delivery to clients. As a result, it is regarded as a valuable and powerful tool for bank development, growth, innovation promotion, and competitiveness enhancement (Gupta, 2008; Kamel, 2005).
Given the importance of electronic banking in bank development, information technology has been shown to boost business efficiency and service quality, attracting and retaining consumers (Kannabiran & Narayan, 2005).
Electronic banking, according to Chang (2003), adds greatly to bank distribution channels such as automated teller machines (ATM), phone banking, telebanking, PC banking, and now internet banking.
Furthermore, internet banking has substantially eased the operations of transferring cash, seeing and checking savings account balances, paying mortgages, paying bills, and acquiring financial instruments and certificates of deposit (Mohammed et al., 2009).
This means that electronic banking has resulted in increased efficiency in banking service delivery because clients can transact business from one side of the country to the other and from both long and short distances.
Other academics suggested that electronic banking has revolutionised traditional banking practises to the point where a paradigm shift in marketing practises has resulted in favourable performance in the banking sector (Gonzalez, 2008; Maholtra & Singh, 2007).
This demonstrates how information technology facilitates the delivery of efficient and high-quality services. Similarly, Christopher et al. (2006) stated that electronic banking provides an important channel for banks to promote their products and services and is viewed as a necessary for banks to succeed.
As a result of the integration of information technology into banking operations, service quality and efficiency in the banking business have grown dramatically around the world.
The purpose of this study is to determine the extent to which the electronic banking concept has influenced customer satisfaction in commercial banks.
1.2. STATEMENT OF THE PROBLEM
All banks compete with one another to attract consumers in many ways, such as by providing convenient, accessible, and acceptable services or/and products.
One of the most essential of these services is electronic banking, which has greatly increased the gap between customers and banks (Almazari and Siam, 2008).
Banks adopted e-banking to improve service delivery, decongest banking hall queues, allow customers to withdraw cash 24 hours a day, aid international payment and remittance, track personal banking transactions, request an online statement, or even transfer deposit to a third party account.
Despite banks’ efforts to ensure that customers reap the benefits of e-banking, the bank receives customer complaints about malfunctioning Automated Teller Machines (ATMs), network downtime,
online theft and fraud, non-availability of financial services, payment of hidden costs of electronic banking such as SMS for sending alerts, mandatory acquisition of ATM cards, and non-acceptance of Nigerian cards for international transactions.
The purpose of this study is to determine why these problems emerge and, in most cases, continue, and to give suggestions based on the findings.
1.3. OBJECTIVES OF THE STUDY
The study’s overarching goal is to look into the influence of electronic banking on customer satisfaction at Guarantee Trust Bank plc. The study, on the other hand, aims to:
Identify GTB’s electronic banking services and how clients use them.
To assess the impact of electronic banking on customer value.
Examine the influence of electronic banking on service delivery; Determine the level of satisfaction of consumers with service delivery following the introduction of electronic banking services.
Determine the advantages of using e-banking services for clients.
Determine the obstacles to the effective adoption of an electronic banking system in Nigeria.
1.4. RESEARCH QUESTIONS /HYPOTHESIS
The study will test the following questions based on the research objectives:
1. What are Guaranty Trust Bank Nig Plc’s electronic banking products?
2. Has the advent of e-banking had a substantial impact on Guaranty Trust Bank Nig Plc’s service delivery?
3. Has e-banking improved service delivery at Guaranty Trust Bank Nig Plc?
4. What are the potential solutions to Nigeria’s e-banking challenges?
5. Given the use of electronic banking services, how satisfied are bank customers?
1.5. TO BE TESTED HYPOTHESIS
Based on the study problem, the following hypotheses will be tested:
H0: Electronic banking products and services have not boosted client satisfaction much.
HA: Electronic banking products and services have increased consumer satisfaction tremendously.
1.6. RELEVANCE/SIGNIFICANCE OF THE STUDY
The introduction of electronic banking has had an impact on service delivery in the service industry. Many banks are gradually transitioning away from traditional banking practises and incorporating electronic technologies into their service delivery.
The findings of this study will be extremely beneficial to the management of GTB Bank Nigeria Plc, as they will aid in identifying the majority of the bank’s difficulties as well as client complaints.
The highlighted difficulties will subsequently be addressed with solutions. This will assist the bank achieve its stated goals and, in the long run, increase shareholder wealth.
Furthermore, the study would provide bank executives and policymakers with knowledge of the electronic banking system as a result of electronic commerce, allowing them to make strategic decisions.
1.7. LIMITATIONS OF THE STUDY
During the study, there were certain limitations.
Respondents were too busy to read the questions properly and tick the answer merely to complete the survey quickly, therefore there is no guarantee that the data collected is 100% true, and so the researcher evaluated level of importance while analysing.
In most cases, I had to ask responders questions in their native language.
1.7 A corporate profile as a preview of the organisation A brief overview of Guarantee Trust Bank Plc
1.8 DEFINITION OF TERM
Electronic banking: The definition of e-banking varies between studies, in part because electronic banking refers to several types of services through which a bank’s customers can request information and perform most retail banking services via computer, television, or mobile phone (Lustsik, 2004).
Electronic banking is defined as a bank’s provision of information or services to its customers, as well as an electronic connection between the bank and the consumer in order to arrange, manage, and control financial transactions (Karjaluoto, 2002).
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