An Evaluation of E-Banking Services on Customer Satisfaction: Case of National Bank of Kenya

Abstract

E-banking is the remote delivery of new and traditional banking products and services through electronic channels. It allows customers to conduct financial transactions on a secure website which can be retail or virtual bank. This research sought to provide empirical evidence regarding satisfaction of customers with e- banking and provide recommendations. It evaluated customer satisfaction with e-banking service at National Bank of Kenya. The study was guided by the following specific objectives; investigation of e- banking web design influence on customer satisfaction in the banking industry; exploration of e-banking customer service influence on customer satisfaction in the banking industry; assessment of e-banking assurance on customer satisfaction in the banking industry and examination of preferential treatment of e-banking effect on customer satisfaction in the banking industry. The theoretical literature review evaluated e-banking and customer satisfaction based on various authors which sought to evaluate: if the web design was designed and ensured easy navigation, the layout was attractive and the design provided links to other sites; in the customer service, if e-banking services provided were accurate, the hyperlinks were valid, the web page loaded quickly and there was prompt responses to e-mails; on assurance, if there was security and privacy, confidence to adopt e-banking services by the customers and feeling of relieve by customers to transact; on preferential treatment, if the customer had a feeling of status using the e-banking service and the customer was offered preferential rates on e-banking. In addition, some of the theories of customer satisfaction were evaluated which are; the contrast theory, assimilation theory and disconfirmation theory. The intervening variables of e-banking towards customer satisfaction were evaluated which are: network access which entails if the network strong or weak, is the backup network compatible; the government policy in terms cybercrime laws and the various taxes charged on the e-banking services. In addition, the concept of customer satisfaction and the entailment of e-banking were evaluated. The study sought to establish if the customer was satisfied with e-banking. To achieve the objectives the disconfirmation theory of customer satisfaction was used. A descriptive research design was used to provide reliable and adequate data analysis. The researcher used primary as well as secondary source data. A face and content validity was carried out in addition to the reliability test of the questionnaires. An in depth analysis of data was done by use of SPSS version 20.0 which was be used to establish frequencies, means, standard deviation, multiple regression and standard error mean in measuring of factors of customer satisfaction employed. Ethical issues were taken into consideration by the researcher when dealing with the institution and respondents. The findings were presented in Tables and illustrated in Figures and interpreted in sections focusing on each of the research. The study was meant to help the bank in strategizing new ways in coping with the rapid changing technology so as to survive in the current market which has attracted many competitors. From the study it was found that more customers were satisfied with most dimensions of e-banking service in NBK. Assurance was the highest priority of the customers in engaging in online transaction of e-banking. The study also found that, collectively e-banking factors adopted by the researcher predicted Overall customer satisfaction in the e-banking service.

Key Words: E- Banking services on customer satisfaction, National Bank of Kenya