Assessing the Impact of Core Banking and Service Quality on Customer Satisfaction: Case of the Commercial Bank of Ethiopia in Bale Robe Town

Abstract

This work aims to assess the effects of core banking and service quality on customer satisfaction in the commercial bank of Bale Robe town in Ethiopia. Stratified sampling technique was used to select a sample of 350 customers; of this number, 310 customers were chosen. A questionnaire consisting of 5-level Likert scale statements was used to collect the primary data of the work. Descriptive and inferential statistics were used for the data analysis. From the findings, there is strong correlation between all service quality dimensions and customer satisfaction in the selected bank. Also, there is strong correlation between core banking and customer satisfaction. The three service quality dimensions: reliability, assurance, and empathy influenced customer satisfaction at the bank positively and significantly; the rest of the two dimensions (responsiveness and tangibility) did not influence customer satisfaction. Core banking also influences customer satisfaction positively and significantly. The bank should concentrate on the two service quality dimensions more to improve customer satisfaction.

Keywords: core banking, customer satisfaction, service quality, Ethiopia.

DOI: 10.7176/RJFA/11-17-05

Publication date:September 30^th 2020