ASSESSING THE IMPACT OF CORE BANKING SYSTEM ON CUSTOMER SATISFACTION IN SOME SELECTED COMMERCIAL BANKS WOLKITE TOWN

Abstract

Financial institutions across the globe are re-examining how they meet their customer satisfaction and developing plan needed to align them strategically to remain competitive & Profitable in the future. Core banking service has networking of branches which enables customers to operate and manage their accounts and avail themselves of banking services from any branches of banks irrespective of the branch with which they maintains their accounts. Customer Satisfaction leads organization to gain loyalty and achieve the desired objectives. Formerly commercial banks use manual & Obsolete technologies. This becomes cause for customer dissatisfaction on day to day financial institution service quality. Therefore this research focus on recognizing the impact of Core banking system on Customer Satisfaction at some selected commercial banks which is commercial bank of Ethiopia, Nib international bank, Abyssinia bank & Debub global bank. The main objective of this study is to assess the impact of Core banking on Customer satisfaction in Commercial banks. As ample of 398(three hundred ninety eight) customers were selected using probability sampling technique and among these 360(three hundred sixty) was collected. Questionnaire & interview was used to collect primary data for the study and data was analyzed using descriptive statistics and inferential statistics. The result of this study shows that, there was significant relationship between core banking & customer satisfaction and also there was significant relationship between service quality & customer satisfaction. From the service quality dimensions; reliability, empathy & tangibles are positive and significant impact on customer satisfaction & the remaining assurance, responsiveness are positive but insignificant impact on customer satisfaction. Thus it is suggested that application of Core banking technologies and service quality on Commercial banks have many contributions regarding Customer satisfaction.