Alternative Banking Channels and Customer Satisfaction in Commercial Banks in Nepal

Abstract

This study is to determine the effect of alternative banking channels on customer satisfaction in commercial banks in Nepal. To achieve this, seven commercial banks (NSBL, NBL, Nic Asia, GBIME, NABIL, KBL, and SBL bank) in Nepal were studied. The study design is a survey, which focused on the population of the seven selected commercial banks in Nepal. Three hundred eighty-four (384) respondents were judgmental proportionately amongst customers of the selected banks with the aid of a questionnaire randomly administered. Correlation and regression analysis were employed in testing whether there is a significant relationship between the alternative banking channels and customer satisfaction. The study concludes that an alternative banking channel has a significant positive impact on customer satisfaction in a commercial bank in Nepal. The banking institutions should enhance the application of mobile banking to increase the satisfaction of their customers. They should work hand in hand with major retail outlets and other organizations that use point of sale systems to ensure the cards issued to customers and point of sale banking are useful, reliable, and can work with speed. They should enhance their internet banking to make it flexible, fast and easy to use. They should increase no of ATMs outlet for better customer delivery.