Influence of digital banking on customer satisfaction: a case of national bank of Kenya Bungoma county
Abstract
Banks have been forced to deleverage and identify alternative sources of value as a result of increased
regulations and competitive challenges. This has led to the introduction of digital banking where
technology is mostly embraced while carrying transactions. However, customers are still waiting for
this new banking experience, touted as a revolutionary transformation that will bring many new
features, including anytime and anywhere banking, ultra-fast response times, and omnipresent
advisors. This study purposed to investigate the influence of digital banking on customer satisfaction
case of National Bank of Kenya Bungoma County. Four objectives that guided the study: To determine
the influences of speed of transactions, to assess influences of accessibility, to determine influences of
adaptability of digital banking and to establish how affordability of digital banking influences
Customer Satisfaction case of National Bank of Kenya, Bungoma County. The target population for
the study was bank customers and banking staff from National Bank in Bungoma County. The study
utilized a sample size of 417 with 42 respondents being part of the pilot study undertaken. Descriptive
survey design was undertaken. Data was collected using a triangulation of methods including
questionnaires, interview schedules and document reviews. Analysis was undertaken with the aid of
Statistical Package for Social Sciences where both descriptive and correlation analysis were
performed. The findings of the study established that there was a strong positive correlation between
speed of transactions and customer satisfaction(r=0.749, p<0.01), Accessibility of digital banking was
positively correlated with customer satisfaction (r=0.865, p< 0.01), adaptability of digital banking and
customer satisfaction was also correlated (r=0.789, p<0.01) and lastly there was a negative significant
relationship between affordability and customer satisfaction (r= -.216, p<0.01). the study recommends
that there is need by banks to invest more on robust reliable systems to reduce incidents of failed
transactions and transactional errors in ATMs, Mobile banking and POS terminals, need to come up
with an application that can be used to enhance digital banking, facilitation of ICT skills so that
technology can be embraced and lastly there is need to carry out customer satisfaction surveys to
establish how customers are adapting to technology.
1
Publisher
University of Nairobi