USING ALTERNATIVE FINANCIAL CHANNELS AND CUSTOMER SATISFACTION IN NEPALESE FINANCIAL INSTITUTIONS

Abstract

Digital banking services play a crucial role in enabling commercial banks to create and provide innovative products and services while also adapting and restructuring their internal processes in response to external changes. This study aimed to evaluate the effectiveness of digital banking strategies among commercial banks in Nepal. A descriptive and causal research design was utilized, focusing on the 20 commercial banks operating in the country. Primary data was collected through self-administered questionnaires, and descriptive statistics were employed for data analysis. The study assessed the performance and impact of digital banking strategies using regression analysis. The findings indicated a significant positive relationship between ATM services and overall performance, while consumer satisfaction showed a weak correlation with internet banking. Notably, a strong positive correlation was found at the 1% significance level, particularly between mobile banking and customer satisfaction. Additionally, a significant positive correlation exists between satisfaction and the point scale. The regression analysis results indicated a linear relationship between customer happiness and ATMs, mobile banking, and points on the scale. ATMs significantly enhance customer satisfaction. Furthermore, the points on the scale had a minor positive effect on customer satisfaction. In contrast, internet banking had a positive but insignificant impact, while mobile banking showed a negative and insignificant relationship with customer satisfaction.