The Impact Of Electronic Banking System On Customer Satisfaction: The Case Of Selected Commercial Banks Found In Holeta Town

Abstract

The study was conducted to examine the impacts of electronic banking system on customers’ satisfactions in the case of selected commercial banks found in Holeta town. Hence, electronic banking services to customer satisfaction is a key problem in the study area; most of the sampled respondents of the town were not satisfied to the services. To identify the problem, primary sources and methods of data collection through survey questionnaire was carried out. Both descriptive and econometrics analysis were employed to meet the objective of the study. The results from the descriptive analysis indicated about most of the respondents of the study were relatively unsatisfied to the services. Accordingly, internet and electric power problem, in-proper functioning of Automated Teller Machine, ignorance of staff and untrained agent banking and staff were the major problem of electronic banking services in the study area. Furthermore, binary logistic regression model was employed to analysis the impacts of electronic banking services on customer satisfaction. The results revealed that education of the respondent, reliability of the services, tangibility of the services, age of the respondents, and experience of the respondents to use electronic banking services were strongly and positively related to customers satisfactions to electronic banking services; while assurance of the services and sex being female of the respondents had a negative impact on customers satisfactions. Accordingly, the study recommends that expansion and intensification combination of interventions aim at enhancing different opportunity in the town such as promoting education, and provision of awareness formation on the use of electronic banking services should also be emphasized in Holeta town