Impact of Internet Banking on Customer Satisfaction
Chapter One
OBJECTIVES OF THE STUDY
The following are the objectives of this study:
- To examine the components of internet banking in Nigeria.
- To examine the impact of internet banking on customer’s satisfaction.
- To determine the factors limiting the use of internet banking by Nigerians.
CHAPTER TWO
REVIEW OF RELATED LITERATURE
Introduction
On-line, real-time banking services have now become a birth right of the customer as the customer demands the flexibility of operating an account in any branch of a bank irrespective of which branch the account was domiciled (BankAway, 2001). Through Internet banking, customers would enjoy sitting in the comfort of their homes and offices and with a PC log onto their banks’ servers and transact banking activities. Banks customers’ taste and desire have begun to raise the stakes of expectation of exceptional services. Customers want to transact their banking transactions at any time and location convenient for their life-style. They want to pay their regular household bills, buy and sell stocks and shares (Carse, 1999). The efficiency, growth and the need to satisfy a growing tech-survey consumer base are three clear rationales for implementing E-banking in Nigeria. The four forces – customers, technology, convergence and globalisation have the most important effect on the Nigeria financial sector and these changes are forcing banks to refocus their activities and relationship with their customers. The success of electronic banking, as agued by many researchers, depends probably on bank service quality, customer preferences and satisfaction. Recent studies found that consumer behaviour is changing partly because of more spare time. The way of use of financial services is characterised by individuality, mobility, independence of place and time, and flexibility (Seitz and Stickel, 2004). Historically, banks have taken the attitude that they will provide customers with the services and products that they, the banks, wish to provide. Buyer power, as evidenced by the increase in wealth and sophistication of the most profitable customers, now dictates that such customers will determine with whom they will bank, which products they will use, what pricing they will accept and which delivery channels they choose to use. Banks not recognising these requirements could rapidly lose between 30-50% of their customers, especially the most profitable customers including the ‘magic’ top10%. It has been proven that the least profitable clients will be the least likely to move. Banks are therefore being forced to adopt a strategy towards their customers that is focused on buyer driven desires. In order to survive both from domestic and the increasing level of global cross-border competition, banks need to change their process of servicing their customers. Firstly, to capture and retain the most profitable customers and secondly to redirect unprofitable customers into service channels which can limit the costs and maximise potential revenues (Mols, 1998). Success in the electronic-banking era is measured in the eyes of the customer. A bank has to profitably meet the needs of customers and continuously improve its ability to do so. It has to be accurate, reliable, helpful and understanding. The goal is not simply to satisfy customers but to positively delight them. The specific things that delight the customer vary from industry to industry and from product to product. But most customers want the same things. According to (Balachandher, 2001), 1. Customers are interested in quality 2. They desire good and effective service delivery 3. They want flexibility so that the specific product or service be obtained 4. They covet value by not wanting to pay a price that exceeds the value received from the product Researches conducted in some countries on customers’ perception of and reaction to electronic banking products and services, and others on customer satisfaction concluded that the few e-banks that face liquidity problem in so-called advanced countries is as a result of the negative perception their customers have of the services. In fact, in some countries, E-banking products and services are not very popular because customers do not consider them as better alternative to traditional banking services (Balachandher, 2001). Worst still, findings of few researches reveal that some customers view these e-developments as nothing to talk about. What are ebanks expected to do? Lustsik (2004) adds that an important factor indicating an urgent need for change is that the Pareto 80/20 rule appears to be no longer valid. Recent analysis shows that instead of 20% of customers generating 80% of profits, 10% of customers are generating over 100% of profits. This of course means that the remaining 90% are unprofitable. Many banks are only just realising that they are unable to measure profitability accurately enough to tell the difference between their profitable and unprofitable business. The tendency at these banks is therefore for all senior managers to claim that their business responsibility area is profitable in the absence of reliable management statistics that can demonstrate otherwise. A fundamental realisation in the context of all these developments is that banking is changing from a seller driven process to a buyer driven process. Thus, the success of E-banking depends squarely on customers’ satisfaction of the e-products and e-services. E-banks need therefore, to make a lot of effort in creating awareness among existing and prospective customers about the benefits of these products and services.
CHAPTER THREE
RESEARCH METHODOLOGY
INTRODUCTION
In this chapter, we described the research procedure for this study. A research methodology is a research process adopted or employed to systematically and scientifically present the results of a study to the research audience viz. a vis, the study beneficiaries.
RESEARCH DESIGN
Research designs are perceived to be an overall strategy adopted by the researcher whereby different components of the study are integrated in a logical manner to effectively address a research problem. In this study, the researcher employed the survey research design. This is due to the nature of the study whereby the opinion and views of people are sampled. According to Singleton & Straits, (2009), Survey research can use quantitative research strategies (e.g., using questionnaires with numerically rated items), qualitative research strategies (e.g., using open-ended questions), or both strategies (i.e., mixed methods). As it is often used to describe and explore human behaviour, surveys are therefore frequently used in social and psychological research.
POPULATION OF THE STUDY
According to Udoyen (2019), a study population is a group of elements or individuals as the case may be, who share similar characteristics. These similar features can include location, gender, age, sex or specific interest. The emphasis on study population is that it constitutes of individuals or elements that are homogeneous in description.
This study was carried to examine impact Of Internet Banking On Customer Satisfaction. Selected banks in Lagos state form the population of the study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
INTRODUCTION
This chapter presents the analysis of data derived through the questionnaire and key informant interview administered on the respondents in the study area. The analysis and interpretation were derived from the findings of the study. The data analysis depicts the simple frequency and percentage of the respondents as well as interpretation of the information gathered. A total of eighty (80) questionnaires were administered to respondents of which only seventy-seven (77) were returned and validated. This was due to irregular, incomplete and inappropriate responses to some questionnaire. For this study a total of 77 was validated for the analysis.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
Introduction
It is important to ascertain that the objective of this study was to ascertain impact Of Internet Banking On Customer Satisfaction. In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges of impact Of Internet Banking On Customer Satisfaction
Summary
This study was on impact Of Internet Banking On Customer Satisfaction. Three objectives were raised which included: To examine the components of internet banking in Nigeria, to examine the impact of internet banking on customer’s satisfaction and to determine the factors limiting the use of internet banking by Nigerians. A total of 77 responses were received and validated from the enrolled participants where all respondents were drawn from selected banks in Lagos State. Hypothesis was tested using Chi-Square statistical tool (SPSS).
Conclusion
This study aimed to examine the impact of E-Banking service quality on customer satisfaction in the Lebanese banking sector. Similar studies had been done for other countries and markets, as was shown in the literature review; however, none to the authors’ knowledge had been done in the Lebanese banking sector. The study followed the quantitative approach where a survey was distributed among bank clients in Lebanon and the data were analyzed using SEM with AMOS. Findings suggest that the four hypotheses in this study were supported by the data, and the m contribution of this study was that reliability, as a service quality variable, was the main predictor of customer satisfaction in this particular market. With E-Banking services still relatively new to Lebanon and, consequently, still below full development and usage, the results of this study will contribute to a better understanding of what and how Lebanese banks may leverage advancement in information technologies to develop services that meet the expectations of Lebanese customers. To further extend this research, it is recommended that ways to increase the reliability of “E-Banking” service be investigated, particularly within the Middle East. Moreover, the meaning of “reliability” may differ across countries even within the region, which warrants a careful investigation of this construct, and others, in multiple cultural contexts.
Recommendation
Much need to be done in the area of creating awareness about the availability of electronic banking products and services, how they operate and their benefits. Banks should organise public exhibitions and talk shows and make products accessible to all customers. In addition, they should improve their service delivery to justify the benefits of electronic banking products and services. This way, customers’ interest would be aroused. Banks should try to win customers’ confidence by providing adequate security of transaction back up of critical data files and alternative means of processing information. They should also ensure good connectivity and power base that will enable them serve customers faster and more conveniently. The banks should ensure that at no time should service cease as a result of network problem
References
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