Impact of Digital Banking on Customer Satisfaction: Case of ABC Bank PLC

Abstract

As a result of growing restrictions and competitive pressures, banks have been pushed to deleverage and explore alternate sources of value. This study has been conducted in order to investigate the influence of digital banking on customer satisfaction case of ABC Bank PLC in Sri Lanka (Name will be stated anonymous due to private and confidential reasons). The objectives that guide the study are, determining the service quality factors that influence customer service, to establish the significance of those identifies factors (convenience, reliability, responsiveness, cost, security) on customer satisfaction. In order to attain this goal, the study was conducted among the digital banking customers of ABC Bank with a sample size of 100 users using the Convenient Sampling method. Data was collected through close-ended questionnaires and analyzed using SPSS package. Findings shows that convenience, reliability, responsiveness, cost and security are the main factors affecting the customer satisfaction of online banking customers with a positive relationship. Further, it was evident that reliability is the most influencing variable for the customer satisfaction of online banking customers and responsiveness is the least influencing variable. Study recommends that the ABC bank should further invest on digital banking technology to decrease the incidences of failed transactions and transactional mistakes in ATMs, mobile banking, and POS terminals while improving the security and privacy issues of the digital banking customers in Sri Lanka.