Influence Of Electronic Delivery Services On Customer Satisfaction In Savings And Credit Cooperatives, A Case Of Mwalimu National Sacco, Kenya

Abstract

ICT innovations have tremendously shifted the dynamics of service delivery in financial institutions which have similarly impacted in Savings and Credit Cooperatives. The purpose of this study was to investigate the influence of Electronic Services on customer satisfaction in Savings and credit cooperatives, a case of Mwalimu National Savings and Credit Cooperative. Operations in Sacco’s have tremendously been influenced by changes in technology, services are no longer confined to an office, members access services electronically via Automated Teller Machines, Mobile banking and the Internet channels. Regardless of availability of these channels, members do experience congestion in the banking hall especially during end month and festive seasons due to occasional failure of these electronic services. The objective of this study was to determine how Automated Teller Machines, Mobile banking and the Internet services influence customer satisfaction in Mwalimu National Sacco. The study is hoped to be valuable to members of staff in identifying and sealing gaps in provision of service through the electronic channels and findings may add valuable information for future researchers. The study was guided by Diffusion of Innovation Theory. The population consisted of 267 Mwalimu members who are also employees of the Sacco. Yamane formulae was used to determine the sample of 139 respondents, stratified sampling method was used to select the sample. Closed ended questionnaires were used in data collection. Numerical data was coded and analyzed by means of statistical package for social scientists (SPSS). Descriptive and inferential statistics was used in data analysis. Measures of dispersion specifically mean median, standard deviation, regression statics and Analysis of variance (ANOVA) were used in analysis. The findings of the study indicated that Automated Teller Machine service attribute timely issuance of new cards had a significant influence on customer satisfaction with a mean of 2.602 and standard deviation of 1.066. Mobile banking attribute ease of use had the greatest influence on customer satisfaction with a mean of 1.676 and standard deviation of 0.783 while for internet banking accessibility of service had the great influence on customer satisfaction with a mean of 2.0827 and a standard deviation of 0.649.Recommendations for policy makers included training in cybersecurity for the Saccos as a way of mitigating fraud, increased budget allocation for the ICT to facilitate infrastructure update and thus enhance availability of the electronic services. Amongst ATM, Mobile banking and internet banking services, mobile banking service was the most utilized service by members.