Abstract:
The purpose of the study was to assess effect of digital banking service on customer satisfaction, its
relation with demographic characteristics, and major challenges in digital banking service to satisfy the
customers of commercial bank of Ethiopia in Ambo branches. The objective of the study was to describe
the effect of digital banking service on customer satisfaction along with possible linkage that may exist
between aforementioned variables. To achieve the objectives of study, the study employed descriptive
survey and correlation research design. In the study, quantitative and qualitative method was used. The
data were collected from 370 respondents which were selected by simple random sampling techniques.
Both close and open-ended questionnaire and interview were used for data collection. The data collected
were analyzed using descriptive statistics (mean and SD and inferential statistics (regression,
correlation). The findings regarding the extent to which effect of digital banking service on customer
satisfaction related to service security, ease of use, and reliability indicated that there was high level and
the study revealed that there was significant positive relationship between independent variable and
dependent variable. Based on the analysis of the data, the following conclusions were made: Regarding,
to the effect of digital banking service on customer satisfaction relate to service security, ease of use and
reliability in all the sampled CBE in Ambo branches the average mean score was high. This indicates
that effectiveness was sufficient but the existence of obstacles of good relationship between variables,
lack of good interest, implementation and good attitude which limited the effect of digital banking
service on customer satisfaction in each samples. It was recommended that it is better to develop
relationship between independent and dependent variables in the study area.
