Electronic Banking and Customer Satisfaction in Commercial Banks Case Study: Centenary Bank Mbarara Branch

Abstract

This study was about electronic banking and customer satisfaction. The widespread availability of electronic banking is expected to affect the mixture of financial services produced by banks, the manner in which banks produce these services and the resulting financial performances of these banks. An extreme view speculates that the Internet will destroy old models of how bank services are developed and delivered. This study was guided by three research objectives which were; to find out the effect of ATM services,mobile banking,internet banking on customer satisfaction within commercial banks.

The researcher used a case study design to find out the necessary information on electronic banking and customer satisfaction. The case study was Centenary bank, Mbarara branch in Mbarara Municipality in Mbarara district in western Uganda. The study population mainly consisted of electronic banking customers of Centenary bank. A sample size of 75 respondents was used in the study. The researcher used simple random sampling and purposive sampling method to arrive at the respondents who participated.The researcher used descriptive statistics from SPSS to analyse the data and deferential data from regression to come up with the effects of electronic banking on customer satisfaction.

It has been found out that ATM services have a positive and insignificant effect on customer satisfaction indicated by Adjusted R squared 0.008 (0.08%) ,Mobile banking there has a positive and significant effect on customer satisfaction indicated by Adjusted R squared 0.128 (12.88%),that Internet banking has r squared of 0.008 which lead to a negative and significant effect on customer satisfaction indicated by adjust ted R square being -0.006 and the multiple regression results of ATM services, Mobile banking and Internet banking, in relation with customer satisfaction with the adjusted R squared of 0.116 (11.6%) and this therefore means that ATM services, Mobile banking and Internet banking have a positive and significant effect on electronic banking and customer satisfaction.

The study recommends banks to employee highly qualified technical staff to handle the needs of the customers in terms of electronic banking, install a strong software requirement to effectively run the electronic banking system and also put emphasis on the use of electronic banking services. In conclusion, from the study conducted, it was found out that Electronic Banking has a positive and insignificant effect on Customer satisfaction in Commercial banks and therefore any change on Electronic banking services, customer satisfaction will also be affected

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