The Impact of E-Banking on Customer Satisfaction in Buea Case of Eco-Bank Buea Branch
Department: Banking and Finance
No of Pages: 61
Project Code: BFN3
References: Yes
Cost: 5,000XAF Cameroonian
: $15 for International students
ABSTRACT
Despite
the stringent evaluation and monitoring strategies put in place by microfinance
and banks to ensure all satisfaction of their customers as long as bank
services is concern, there are still gaps to fill as customer satisfaction is
concerned.
This
study was conducted to investigate the impact of e-banking on customers’
satisfaction on the banking industry case of Eco bank Buea branch. The study
was built around three specific objectives/research questions, hypothesis
stated in both null and alternative form.
This
study employed survey research design with a total population of 50 customers
of Eco Bank Buea branch. The study also makes use of purposive sampling
techniques, using a questionnaire as an instrument for data collection.
The
study found out that E-banking service are very expensive to used, bank
provides training session to train their customer as regards to the used of
e-banking, e-banking transaction are fast and reliable.
The
results show that the p-values obtain for E banking (0.002), security/privacy
(0.001) Access to e-banking services (0.004) and for the regression
coefficients are also lower than the alpha level of significant of 5% specified
in SPSS for the analysis except for E banking, security/privacy, access to
e-banking service.
The
study conclude that e banking has a significate effect on customer satisfaction
in the banking industry. Hence, this
study recommends that the management should Increase training their customer on
e-banking service by so doing it will go a long way to increase their
effectiveness and efficiencies in turn high customer satisfaction.
CHAPTER ONE
INTRODUCTION
1.1 Background to Study
Telephones
and Televisions are used daily by many; alongside these media the internet has
become more important and useful for an increasing number of people. The
internet has existed since the early 1960s but most of that time it was only
accessible by the government and for scientific purposes.
By
the mid-1990s, as web interfaces improved, it became available to the public
and E- commerce became possible by early 1990s when the internet was open to
commercial used. E- banking on a 24/7-time scale has become very important to
all it users to trace and track their transactions as they occur and to ensure
their account statues and stability.
Thus,
it has become very important to have banks that can serve, support and work
with e-commerce companies and consumer’s 24/7.They provide banking services and
systems that that connect to e- commerce websites allowing customers to check
their transactions online, allow businesses to attain their goals, and allow
customers to move money around to accomplish their financial transactions.
Electronic
banking therefore is a process by which a customer may perform banking
transactions electronically without visiting a financial institution.
Electronic banking (e-banking) is the newest delivery channel of banking
services.
The
definition of e-banking varies amongst researchers partially because electronic
banking refers to several types of services through which a bank's customer can
request information and carry out most retail banking services via a computer,
television or mobile phone.
Burr,
1996, for example, describes it as an electronic connection between the bank
and customer in order to prepare, manage and control financial transactions.
The latest update one banking involves Digital Account Opening, P2P payments,
Video Collaboration/Marketing, Cloud Computing, and Application Programming
Interfaces (APIS).
Banks
operate in a strategic information system environment which indicate that they
are information-intensive and highly dependent on the information
technology as their as their core
technology.
The
development in the information technology have had an enormous effect on the
development of more user-friendly banking services and increase the transaction
and communication speed between banks and customers.
ATM
allow customers to deposit money, withdraw cash, request a balance and pay
bills at any time. ATM services not only provide convenience for customers, but
also decrease operating costs for the bank.
The next technology developed by banks was telephone banking which was firstly introduced by Seattle First National Bank in the United State(US) in the late 1970s.
Telephone banking is more cost-effective than ordinary branch and the
process increases customer convenience as well as expanding access to a wide
variety of services for customers. However, electronic banking lacks visual
verification and customers cannot perform self-banking services.
Internet
banking emerges in 1990s and was first launched by the Wells Fargo bank in the
US. There is a wide agreement that the channel has had a substantial impact on
the bank markets. From the view point of the bans, internet banking helps banks
to maintain economic growth through reducing the operation and fixed costs
updating.
Moreover,
when e banking was introducing took steps to Implement e banking services in
the mid-1990s, many consumers world-wide were hesitate to conduct monetary
transactions over the web.it took a widespread adoption of e banking over the
world such as Amazon.com and eBay, before the idea of e banking become
practical and adoptable in some of the society.
Electronic
banking in Cameroon is fast catching up with the modernizing pace. The
adaptation Digital Account Opening, P2P payments, Video Collaboration/
Marketing, Cloud Computing, and Application Programming Interfaces (APIS) is
rapidly consuming banks in Cameroon.
Though
it is relative new in Cameroon the craze that it has built for the past years
in most of the develop countries has made Cameroonians to acquainted with the
products as a whole.
1.2. Problem statement
The
use of technology forms the backbone for better results in banking. This is
articulated in the HSBC report of 2000, which stated that benefits from
technology are more than three time is cost.
Today’s
banking situation demands continuous innovation in order to meet the yearnings
and aspirations of the ever-demanding customers. Hence banks need to roll out
new product and services quickly and effectively, using latest cutting edge
technology
In
this light, E-banking was adopted by banks so as to improve their services
delivery; decongested queues in the banking hall, enable customers withdraw cash
24/7, aid international payment and remittance, track personal banking
transaction, request for online statement or even transfer deposits to a third
party account.
Despite
the effort of banks to ensure that customers reap the benefits of e banking, the
bank is met with complaints from customers as regards, to malfunctioning of
Automated Teller Machines (ATMs),
Network
downtown, online theft and fraud, non-availability of financial service,
payment of hidden cost of electronic banking like short message services (SMS)
for sending alert, mandatory acquisition of ATM cards, non-acceptability of
Cameroonian cards for international transaction amongst others.
At
the end of everything the main problem here is: are customers really enjoying
these services given the above outlined shortcomings?
Related
to this problem, empirical evidence implies that customers’ patronage for and
reaction to a particular product depend on their level of understanding of what
the product can do and what they stand to benefit from there. In this
connection, it is relevant to find out the customer’s perception on e-banking.
1.3 Research question
- The main question was what the effect of E banking on customer satisfaction in the banking industry case of Eco bank Buea?
Specific research
questions
- What is the impact of security/privacy on customer satisfaction in in the banking industry case of Ecobank Buea?
- What is effect access to e-banking services on customer satisfaction in the banking industry case of Ecobank Buea?
- What are some of the challenges faced by e banking in the banking industry case of Ecobank Buea?
1.4 Objectives of the
study
- The main objective of this study was to investigate the impact of e-banking on customers’ satisfaction in the banking industry case of Ecobank Buea
Specific objectives
- To examine the impact of security/privacy on customer satisfaction in in the banking industry case of Ecobank Buea.
- To investigate the effect of access to e-banking services on customer satisfaction in the banking industry case of Ecobank Buea?
- To find out some of challenges faced by e-banking service
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