Impact of Electronic Banking on Customer Satisfaction of Nepalese Commercial Banks

Abstract

To compete with the global developments and improve the quality of service delivery, it is in no doubt that banks have invested much on technology, and have widely adopted electronic and telecommunication networks for delivering a wide range of value added products and services. However, the integration of customers into electronic banking is far from been realized. The general aim of the study was to determine the impact of electronic banking on customer satisfaction of commercial banks of Nepal. The study adopted a descriptive survey research design. The sample size was drawn from only two lead commercial banks of Nepal due to the large number of e-banking register customers. So random sampling technique was used to select a sample size of 150 respondents. Primary data was collected using structured questionnaires addressed to the participants. The researcher conducted initial data analysis using descriptive statistical measures. The study also conducted a regression analysis to establish the relationship between the study variables. From the findings, the study concluded that quick response of internet banking impact customer satisfaction to a great extent. In addition, many customers use internet banking because it is easy to use and time saving. The study further concludes that secrecy and privacy of internet banking has relatively low impact on customer satisfaction. The study also concludes that mobile banking is cost saving and easy bill payment option system affects customer satisfaction to a great. Further, the study concluded that ease of access of ATM and useful in urgency of cash affects customer satisfaction to a great extent. In addition, convenient location of ATM booths and ATM always found in working order have low impact on customer satisfaction. Finally, it was clear that ATM banking has the highest impact on Customer satisfaction followed by mobile banking while internet banking had the least impact on customer satisfaction. Banking institutions should enhance their internet banking to make it flexible, fast and easy to use. Management of banking institutions should enhance application of mobile banking to increase satisfaction of their customers. Key Words: E-banking, customer satisfaction, internet banking, automated teller machines, mobile banking.