IMPACT OF E-BANKING ON CUSTOMER SATISFACTION (A CASE STUDY OF FIRST BANK OF NIGERIA PLC ZARIA)

ABSTRACT

This project is designed to genuine the E-banking and customer’s satisfaction. A case study of First Bank of Nigeria. The main objective of the study is to assess the impact of E-banking on Customer’s Satisfaction. The explanatory method was used in this project and data were collected by means of questionnaire, personal interview and personal observation find made revealed that E-banking satisfied customer through the use of online fund transfer, and that First Bank satisfied it’s customer through Automated Teller Machine (ATM) the researcher therefore recommends that First Bank of Nigeria (FBN) should train and retain computer operator, and also banking system should be managed by competent operation to satisfy it’s customer.

 

 

 

 

 

 

 

 

Table of Contents

TITLE PAGE.. i

DEDICATION.. 1

APPROVAL PAGE.. 2

DECLARATION.. 3

ACKNOWLEDGEMENT.. 4

ABSTRACT.. 5

CHAPTER ONE.. 8

1.0     INTRODUCTION.. 8

1.1       BACKGROUND TO THE STUDY.. 8

1.2      STATEMENT OF THE PROBLEM… 9

1.3      OBJECTIVE OF THE STUDY.. 9

1.4      RESEARCH QUESTIONS. 9

1.5      STATEMENT OF HYPOTHESIS. 9

1.6      SCOPE OF THE STUDY.. 10

1.7      LIMITATION OF THE STUDY.. 10

1.8      DEFINITION OF TERMS. 11

CHAPTER TWO.. 12

LITERATURE REVIEW… 12

2.0     INTRODUCTION.. 12

2.1      LITERATURE REVIEW… 12

2.2      THEORETICAL FRAMEWORK.. 16

2.3      CONCEPTUAL FRAMEWORK.. 20

CHAPTER THREE.. 23

RESEARCH METHODOLOGY.. 23

3.0     INTRODUCTION.. 23

3.1      RESEARCH METHODOLOGY.. 23

3.2      RESEARCH DESIGN.. 23

3.3      SOURCES OF DATA COLLECTION.. 24

3.4      POPULATION OF THE STUDY.. 24

3.5     METHOD OF DATA COLLECTION.. 24

3.6     METHOD OF DATA ANALYSIS.. 25

3.7      SAMPLE SIZE AND SAMPLE TECHNIQUES. 26

3.8     JUSTIFICATION OF METHOD USED.. 27

CHAPTER FOUR.. 29

DATA PRESENTATION AND ANALYSIS. 29

4.0     INTRODUCTION.. 29

4.1      PRESENTATION AND ANALYSIS. 29

4.2      HISTORICAL BACKGROUND OF FIRST BANK OF NIGERIA.. 29

4.3      STRENGTH, WEAKNESS, OPPORTUNITIES AND THREAT OF FIRST BANK OF NIGERIA   30

4.4      ELECTRONIC BANKING AND CUSTOMERS SATISFACTION.. 32

4.5      PERFORMANCE OF FIRST BANK OF NIGERIA.. 32

4.6      PROBLEM OF THE FIRST BANK.. 34

4.7      PROBLEMS ENCOUNTERED IN THE APPLICATION OF COMPUTER ONLINE   35

4.8     TEST OF HYPOTHESIS. 40

4.9      DISCUSSION OF FINDINGS. 45

CHAPTER FIVE.. 46

SUMMARY, CONCLUSION AND RECOMMENTATION.. 46

5.0      SUMMARY.. 46

5.1      CONCLUSION.. 46

5.2      RECOMMENDATION.. 47

BIBLIOGRAPHY.. 49

APPENDIX.. 51

QUESTIONNAIRE.. 52

 

 

 

 

 

INTRODUCTION:- INTRODUCTION

1.1       Background to the Study

Customer satisfaction is a measure of how products and services supplied by a company meet or surpass customer expectation. Customer satisfaction is also defined as the number of customers, or percentage of total customers, whose reported experience with a firm, its products or its services (ratings) exceeds specified satisfaction goals.  And yet another definition of customer satisfaction is  it refers to the extent to which customers are happy with the products and/or services provided by a business. Further definition of customer satisfaction is it is a term generally used to measure a customer’s perception of a company’s products and/or services. It’s not a straight forward science however, as customer satisfaction will vary from person to person, depending on a whole host of variables which may be both psychological and physical. The usual measures of customer satisfaction involve a survey with a set of statements using a Likert Technique or scale.

Technology is making a tremendous  impact upon service companies  in general and the financial  services  sector is no exception. The application of information and communication technology concepts, techniques, policies and implementation strategies to banking services has become a subject of fundamentals importance and concerns to all banks and  indeed a prerequisite for local and global competitiveness in banking industry. As a result of this technological improvement business environment in financial sector is extremely dynamic and experience rapid changes and demands banks to serve their customer electronically. The evolution of e-banking started from the use of Automatic Teller Machine (ATM) and Finland is the first country in the world to have taken a lead  in  e-banking .  E-banking has been widely used in developed countries and in developing countries like Nigeria economies; however, the spread of  e-banking is much limited.  As suggested by Claessens, Glaessner and Klingebiel, developing Like Nigeria  have an advantage as it  can learn from the experience of advanced economies . Today, almost all banks  in Nigeria are adopting electronic banking as a means of enhancing service quality of banking services. They are providing electronic banking to their customers to increase customers’ satisfaction in banking service.

1.2      Statement of the Problem

E-banking was adopted by banks so as to improve their service delivery, decongest queues in the banking hall enable customers withdraw cash 24/7, aid international payment and remittance, track personal banking transaction request for online statement, or even transfer deposit to a third party account. Despite the effort of banks to ensure that customers as regards, malfunctioning Automated Teller Machine (ATMs), network downtime, online theft and fraud, non-availability of financial service, payment of hidden cost of electronic banking like short message service (SMS), for sending alert, mandatory acquisition of ATM cards non-acceptability of Nigerian cards for international transaction amongst others. This study looks at the problems of e-banking on customer service delivery, its impact on the customer and possible solutions to problems encountered based on the outcome of the study.

1.3      Objective of the Study

General objectives: To assess and examine the impact of e-banking on customers’ satisfaction in First Bank of Nigerian Plc Zaria.

Specific objectives:

  • To describe the age, gender, marital status, occupation and educational status of e-banking users in the city specifically.
  • To see the relationship of customers satisfaction in e-banking than ordinary banking service with age, occupation and education.
  • To assess the level of customer understanding of e-banking customers and does it has reduced cycle time for customers.
  • To know customers responses related employees relationship after using e-banking and e-banking impacts on controlling their movement on their accounts.
  • To know customers understanding about the fee charged and do they get the service 24/7.
  • To see if e-banking service has reduced the visits of branches for customers.
  • To list the major challenges and opportunities of e-banking from customers point of view.
  • To suggest necessary actions that should be considered by the commercial banks in order to increase the impact of e-banking on customer satisfaction.

1.4      Research Questions

The following research questions are formulated for the benefit of this study:

  1. What are the impacts of e-banking on customers’ satisfaction in the first bank of Nigerian Plc?
  2. Does increment of customers’ satisfaction in banking service is related to e-banking?
  • Does satisfaction in e-banking services related to age, occupational and educational status in the city?
  1. What is the level of understanding of customers about e-banking?
  2. How customers see the challenges and opportunities of e-banking in the city?
  3. Do customers know that there is a fee charged for getting e-banking services?
  • Does e-banking service help customers’ more than ordinary banking in controlling their accounts movements?
  • How customers see their relationship with employees after they have started e-banking service?