The linkage of internet banking and customer satisfaction in commercial banks in Kenya
View/ Open
Date
2009-10Author
Kinyua, Catherine
Type
ThesisLanguage
enMetadata
Show full item recordAbstract
From the banks' viewpoint, use of Internet banking is expected to lead to cost reductions
and improved competitiveness. This service delivery channel is seen as powerful because
it can retain current Web-based customers who continue using banking services from any
location. Moreover, Internet banking provides opportunities for the bank to develop its
market by attracting a new customer base from existing Internet users. It means that
banking services such as services introduction, loan application, account balance inquiry,
and fund transfer are provided by a bank through the Internet. This study therefore sought
to determine the linkage between Internet banking and customer satisfaction in
commercial banks in Kenya.
This study employed a survey method of design. The study targeted 42 respective heads
of Internet banking departments and 42 corporate customers of commercial banks who
use Internet banking. Primary data was collected using self-administered questionnaires.
The data collected from this study was mainly presented through the use of summarized
percentages, proportions and tabulations and other data presentation tools in all the
sections of the questionnaires.
From the findings, the study found that Internet banking was used by commercial banks .•
in Kenya. This was mainly because marketing staff of the bank had been helpful in
communication in regards to the Internet banking services to customers, senior
management and staff of the bank encouraged use of Internet banking services.
Customers find Internet banking useful to them, it also made them to be more skillful, it
makes their banking obligations and duties more interesting and more enjoyable and also
it increases their satisfaction with the services of the bank. The study therefore
recommends that for effective usage of Internet banking in commercial banks in Kenya,
customers should be assured of maximum security in Internet banking services, and also
assured that there is a legal recourse in case of any fraud in their account through Internet
banking. Customers should also be given the skills on how to use the technology and be
made aware of the advantages of using the Internet banking versus the human teller.
Citation
Masters of Business Administration, University of Nairobi (2009)Publisher
University of Nairobi School of Business