FACTORS INFLUENCING CUSTOMER SATSIFACTION IN THE USE OF ELECTRONIC BANKING

Abstract

This study examined the effect of e-banking services on customer satisfaction. Specifically, the study was constructed under three objectives namely; to determine the level of using e-banking services among customers, to identify factors that influence the satisfaction level of the customers, and to examine the relationship between factors influencing the usage of e-banking services and customer satisfaction. The study was conducted at the NMB branch located in Tabora town. The study used a quantitative approach adopting a cross-sectional design in data collection, analysis, and presentation. A sample of 100 respondents was selected using the purposive sampling method to capture the targeted respondents from specified categories. Questionnaires and interview guides were used as data collection instruments. Findings revealed that ATM service was the most frequently used service compared to the rest of the e-banking services, followed closely by Internet banking and credit card and mobile banking. Results also disclosed that reliability, flexibility, accessibility, and security and privacy were factors that influenced customer satisfaction. In addition, these factors were found to have an extremely strong effect on a dependent variable explaining 85% of customer satisfaction. The study recommended that critical infrastructure like power; security, and telecommunication should be strengthened to ensure the effective implementation of electronic banking applications in Tanzania. The banks should also train and retrain their staff to ensure that they keep up with the dynamism of information technology.