Examining the Effect of E-Banking Services on Customer Satisfaction in Deposit Money Banks in Adamawa State Capital, Nigeria

Abstract

tools that give the chance to utilize the internet to improve business transactions that cause customer satisfaction. Furthermore, the authors state that e-banking involves the procurement of data or services by a bank to its clients using a computer. Whereas, Daniel (1999) discourses that e-banking involves a more erudite service that provides customers with the chance to get access to their accounts and carry out financial transactions (transfer money to settle liabilities, pay bills, and buy items online, etc.) using the internet, all to ensure that the needs of customers are satisfied. Abstract: This study examined the effect of e-banking services on customer satisfaction in deposit money banks in Adamawa State capital. Three deposit money banks (First Bank, Guaranty Trust Bank, and United Bank for Africa) operating in Yola were selected for this study. The independent variable is e-banking services that are represented by Internet banking, Automated Teller Machine Service (ATM), Short Message Service (SMS) banking, and mobile banking. The convenience sampling technique was used to select 150 customers of the three sampled banks. 150 Questionnaires were distributed to the respondents where 115 were found valid and used for analysis purposes. With the aid of the statistical package for social sciences (SPSS) version 20, the data were analyzed using descriptive statistics, correlation, and multiple regression. From the regression result, internet banking and ATM service have a significant positive effect on customer satisfaction in the selected deposit money banks in Adamawa State capital. But SMS banking has an insignificant positive effect on customer satisfaction, while mobile banking has an insignificant negative effect on customer satisfaction of the sampled banks. Hence, the study recommends that management of deposit money banks in Nigeria, specifically in Adamawa State capital (Yola) should do everything possible to ensure that internet banking and ATM service are in addition provided to customers effectively. In a study by Isobor et al e-banking was found to improve both customers' satisfaction and caused economic growth in Nigeria. For the study, the authors selected customers (who were as well the respondents) based on electronic banking and their use of the banks' electronic services. Out of the 107 questionnaires retrieved from the respondents, only 100 were useable and used for analysis. For testing the hypothesis developed in the study, a statistical parametric test called Paired Sample t-test was employed to test the significance through the use of the SPSS statistical package. The study recommends adequate legislation on all aspects of e-banking that both the operators of the system and the public can be adequately should or no motivate their to take advantage of e-banking