The Impact of Technology Based Self Service Banking Service Quality on Customer Satisfaction: a Case Study of the Nigerian Banking Sector
CHAPTER ONE
Objectives of the Study
The general purpose of the research is to study the impact of TBSSB service quality on customer satisfaction; the specific objectives of this study are as follows:
- To determine the influence of the associated factors of TBSSB quality service on consumer satisfaction by using the five dimensions of service quality
- To establish a relationship among the dimensions and study the impact of TBSSB on customer satisfaction among banks in Nigeria
CHAPTER TWO
- Literature Review
- Introduction
This chapter presents the literature on the impact of TBSSB on customer satisfaction. Service quality and TBSSB are of central importance in this study. This literature review focuses on the topics of customer service quality, technology self-service, customer satisfaction, the historical evolution and development of the Nigerian banking sector. The Attribute Based Model and the Discrepancy Theory will be used to analyze the data. The research on customer satisfaction was also discussed.
Brief Historical Evolution and History of Banking in Nigeria
The Nigerian banking industry can be observed to have emerged through the colonial era, with the formation of a colonial bank called the African Bank Corporation (ABC) in 1892 (Toluwani, & Soasan, 2010). The colonial bank started operation of business as a result of the merchant population’s banking operations which commenced in Lagos in the year 1894. In 1990 a new branch was opened in Calabar. The bank was functioned by England during the foreign era before its establishment in Lagos, Nigeria. The emergence of commercial banks and later the deregulation of the Central Bank of Nigeria brought about computerization and digitization of banking in Nigeria (Oluduro, 2015).
This transformation resulted in the use of technology in the delivery of their service and operation to customers. In 1986, massive development, growth, transformation, and physical adjustment brought about changes into the year 1991.The first commercial indigenous bank was the First Bank of Nigeria (FBN).We know that the Foreign Bank was established later in 1925, to become the Barclays Bank of the Dominion Colonies Overseas (DCO) (Ikpefan, 2006). By the year 1991 the total number of commercial and merchant banks had increase to one hundred and twenty one. This is made up of Sixty six commercial banks and fifty five merchant banks in Nigeria.
The Federal Government of Nigerian by then licensed twenty new banks in the year 1991 to commence full operations as a result of the deregulation of some commercial banks (Ofoegbu & Iyewumi, 2013). In addition, between the year 1994 and 2003, there was a strong deregulation of
the commercial bank because of the loss of wealth in public confidence in the system and challenging monetary management by the year 2004 (Zontangos & Anderson, 2004). Also by then there was merger and acquisition, which resulted into the reduction of commercial banks from 89 to 25. This arose from the policy which affected the commercial banks with a capital below 25 billion have had to merge. By the year 2004, there was a policy order from CBN that banks need to jerk up their capital paid up. A lot of commercial banks resisted the change, but the orders were irreversible (Oluduro, 2015). By the year 2006, there was only twenty five commercial bank in the country due to the major shake up country policy by the central bank of Nigeria.
Customer Quality Service and TBSSB
Customer service quality, which means ensuring customer satisfaction at all times, has become a major factor of consideration in determining the success and growth of organizational enterprise (Djajanto, Nimran, & Kumadji, 2014). Service quality refers to the general evaluation of service delivered through electronic channels, such as the Internet, telephone lines and or automated services. Santos (2003) examines the relationship between service quality, customer satisfaction and self-service technology. Similarly, Dabholkar, Michelle, and Lee (2003) assessed the use of self-service technology and found that customers have begun to accept the new way of accessing various e-services including banking services.
In addition Meuter, Ostrom, Roundtree, and Bitner (2000) reported an increase in the number of financial institutions that were using self-service and other service technology such as Automated Teller Machines (ATM), telephone and internet banking, as well as mobile application banking. All of these could be utilized on various independent platforms to meet the customers’ needs without support from the bank staff. Another impact of technology self-service on customers satisfaction was reported by Zameer, Tara, Kausar, and Mohsin (2015). In their case they found that the corporate image had an effect on customers’ perceived value of the service. This encouraged the banking sector to pay more attention to their customer’s perceived value by improving their service quality. Adewoye (2013) on his part focuses on mobile banking which he believes provides positive influence on service delivery at retail banks in Nigeria.
Technology service quality has been looked at by Akinyele and Olorunleke (2010) as enhancing the affiliation between service quality, customer satisfaction and financial performance in electronic banking. The study aimed at testing some serious attitudinal factors influencing customer intention to use TBSSB. Parasuraman, Zeithaml, and Malhotra (2005) construct a framework called “means-end”, which they used as a theoretical foundation that conceptualizes, constructs, and refines the Test Divers Item scale which measures electronic service quality.
CHAPTER THREE
- Methodology
- Introduction
This part provides the detailed description on how the research was conducted. The chapter explains the survey design, methodology, and also gives the population, sampling design, the techniques and the idea behind the research.
Research Design
This section presents a survey research design because survey provides a means for both quantitative and qualitative approach for the study. This research design is applied because it is suitable in helping us accomplish the overall understanding of the research question. The research design provides the blueprint for the research.
This study focuses on the positivist approach in line with deductive method. The deductive method deals with the theory testing in a quantitative study (Creswell, 2014). “Positivist entails a belief based on assumption patterns (trends), the method and cause, effect applicable to the social science, with observable social reality which would produce generalization similar to those produced by natural scientists”(Rahi, 2017, pp. 2126-6359). The model is placed at the opening of the study, with the aim of testing or confirming it in the research. It is important for a researcher to clearly state which design and method is being used in his/her study. In a positivist study approach, the truth rises from the communication between an observed fact and a claim.
CHAPTER FOUR
Research Data Presentation and Analysis of Result
This chapter deals with the data analysis and presentation of the results and findings. This Includes, sections on the statistical analysis tool, demographic classification, measurement model, reliability, composite reliability, validity, convergence validity and discriminant validity. Determination of path coefficient, structural relevance relationship, regression analysis, hypothesis testing and determination of the effect size F2.
CHAPTER FIVE
- Summary Recommendation and Conclusion
- Summary
In the previous chapter the data obtained were analyzed and presented. This chapter presents the research question that was answers and the conclusion was drawn from it. Finally the recommendation and the future research opportunities will be address.We sought to investigate the impact of Technology Based Self-Service Banking service quality on customer satisfaction in Nigeria. There are a total number of 24 indicators influencing the TBSSB service quality, and customer satisfaction, which are considered for the purpose of this research. The study conducted research on 248 customers of TBSSB in selected banks, using a structured questionnaire survey. The analysis was carried out in order to determine the impact of TBSSB quality service, on customer satisfaction.
Structural Equation Modeling Partial Least Square (SEM-PLS) was used to test the theory as well as the hypothetical variables. We investigated the association and the impact on the TBSSB service quality on customer satisfaction. The result of the hypotheses association testing shows that speed of delivery and reliability of TBSSB service quality, have significant impact on customer satisfaction. Also, in the determination of relevance impact of exogenous variable (predictor) on endogenous variable, the result of the F2 test of relevance impact shows that “speed of delivery, convenience and efficiency” have a small impact on customer satisfaction while reliability has medium impact and security has a large impact on that endogenous variable.
These research findings are important contributions to financial institutions, in decisions concerning aspects of TBSSB, such as customer satisfaction, retention, which will ultimately influence customers’ uptake of the TBSSB option. The Reliability and Security aspect of the technology would ensure further gains and profitability in financial sector. The findings of this research are consistent with the findings by Bebli (2010), that speed of delivery, ease of use, reliability all positively correlated and significant. Fernandes and Pedroso (2016) also shows service attributes positively impact user perception of service quality, the work conclude that speed of delivery using the service and ease of user as the important attributes.
Recommendation and Future Research
The study has significant implications for managers and staff of the banks visited. There is need for improvement in their service with speed of delivery and efficiency of technology which this study finds influences customer satisfaction. It is also prudent for financial institutions to inspire the customer to use and deeply maintain their operation with the technology service TBSSB. The study also recommends faster and reliable distribution of transaction in order to maintain goodwill, efficiency and productivity for the financial institution. This research focuses mainly on the technology self-service banking quality service.
There are however related influences which impact equipment and technology service investment, which the future researcher can study by corroborating attributes that consumers used to measure the quality in technology banking. Therefore, further study should research technology based service such as electronic bank transfer, e-commerce and security issues. Finally, focus should also be placed on how culture affects implementation of TBSSB in certain geographical locations.
Conclusion
From the findings of the research we can conclude that speed of delivery and reliability has significant influence on customer satisfaction among others variables. Also in terms of relevant impact convenience, efficiency and speed of delivery as service dimension of TBSSB has small impact on customer satisfaction while reliability seen as having medium degree of impact on customer satisfaction while security has a large impact on the customer satisfaction.
REFERENCES
- Abd, R., Aziz, E., Pacha, S., & El, J. A. (2014). ATM , Internet Banking and Mobile Banking Services in a Digital Environment : The Egyptian Banking Industry, 90(8), 45–52.
- Adewoye, J. (2013). Impact of mobile banking on service delivery in the Nigerian commercial banks. International Review of Management and, 333–344. Retrieved from http://search.proquest.com/openview/338295f2562cc380b99b4eda0d2de6fb/1?pq- origsite=gscholar
- Adewoye, J. O. (2013). Impact of Mobile Banking on Service Delivery in the Nigerian Commercial Banks. Internation Review of Management and Business Research, 333–344.
- Akinyele, S. T., & Olorunleke, K. (2010). Technology and Service Quality in the Banking Industry: An Empirical Study of Various Factors in Electronic Banking Services.
- International Business Management, 4(4), 209–221.
- Amherst, M. (2007). Predicting and changing behavior : A reasoned action approach, (June 2014).
- Anol Bhattacherjee and G. Premkumar. (2011). Theoretical Model and Longitudinal Test Article in Belief and Changes Understanding Information Attitude Toward Tech nology A Theoretical Usage : Model and Longitudinal, 28(2), 229–254.
- Arasli, H., Turan Katircioglu, S., & Mehtap‐Smadi, S. (2005). A comparison of service quality in the banking industry. International Journal of Bank Marketing, 23(7), 508–526. https://doi.org/10.1108/02652320510629881
- Ardabili, F. S., Daryani, S. M., Molaie, M., Rasooli, E., & Kheiravar, M. H. (2012). Importance of mutual relations on customer satisfaction in industries with no/low direct contact with customers. African Journal of Business Management, 6(29), 8637–8643. https://doi.org/http://dx.doi.org/10.5897/AJBM11.2984
