E-BANKING AND CUSTOMER SATISFACTION IN NEPELESE COMMERCIAL BANKS

Abstract

This study investigated customer satisfaction with e-banking services provided by commercial banks in Nepal, focusing on factors such as tangibility, reliability, efficiency, security, and responsiveness. It highlighted that most internet banking services in Nepal were unreliable, with limited awareness and accessibility, particularly in rural areas. Illiteracy further restricted internet use to individuals with some level of education. The research aimed to analyze these factors, assess customer understanding, and examine the relationship between e-banking factors and customer satisfaction, considering socio-demographic variables. A descriptive design was employed, utilizing a structured questionnaire distributed to e-banking customers in Kathmandu through convenience sampling. Data were collected from 200 respondents and analyzed using SPSS software, revealing significant findings. The Cronbach’s alpha test confirmed the reliability of variables, with all scoring above 0.7. Descriptive and inferential statistics, including correlation and regression analyses, were used to evaluate the data. The study found a positive perception of security protocols among customers, emphasizing the need for banks to maintain and enhance security measures. Mixed responses were observed regarding ATM locations, epayment services, and transaction safety, suggesting areas for improvement. Significant correlations were found between tangibility, efficiency, and responsiveness, indicating their importance in customer satisfaction. However, reliability, security, and customer satisfaction itself did not significantly impact overall satisfaction in this model. The regression model highlighted responsiveness and efficiency as crucial factors, suggesting that focusing on these areas could enhance customer satisfaction. This study provided valuable insights for Nepalese banks to improve e-banking services, informing future research and alerting bankers to potential challenges. It underscored the importance of customer-centric strategies in the evolving landscape of internet banking in Nepal.