ROLE OF ELECTRONIC BANKING SERVICE DELIVERY ON CUSTOMER SATISFACTION IN CASE OF SELECTED COMMERCIAL BANKS IN GURAGE ZONE

Abstract

This study investigates the role of electronic banking on customer satisfaction in commercial banks, specifically, in Gurage zone. The study identifies the attributes of E-banking services that are crucial to customers, and examine the ole of e-banking attributes on customers’ satisfaction in commercial banks. The data is gathered through 5-point Likert scale and analyze with the help Statistical Package for Social Science (SPSS). To test the relation between e-payment satisfaction and the selected variables, descriptive statistics and regression analysis will be usedThe model had a moderate level of explanatory power, with an r-squared value of 0.66, indicating that approximately 66% of the variation in customer satisfaction could be explained by the predictors. The ANOVA results confirmed the overall significance of the regression model, with a highlysignificant F-statistic (F = 147.213, p < 0.001). This suggests that the observed relationship between the predictors and customer satisfaction is highly unlikely to occur by chance alone. In the coefficients, the variables security, availability, ease of use, and responsiveness were found to be statistically significant predictors of customer satisfaction. However, transaction speed (fast transfer) did not show a statistically significant relationship. The study highlights the importance of ensuring secure and reliable electronic banking systems, as well as providing convenient and user-friendly interfaces to enhance customer satisfaction. Additionally, the responsiveness of the banking staff in addressing customer queries and concerns is crucial for driving customer satisfaction. The results of a regression model where the dependent variable is customer satisfaction, and the independent variables are security, availability, ease of use, fast transfer, and responsiveness. The table includes unstandardized coefficients, standardized coefficients (Betas), t-values, and significance levels (Sig.), as well as collinearity statistics (Tolerance and VIF). The study highlights the importance of ensuring secure and reliable electronic banking systems, as well as providing convenient and user-friendly interfaces to enhance customer satisfaction. Additionally, the responsiveness of the banking staff in addressing customer queries and concerns is crucial for driving customer satisfaction. improving security ,enhance availability, enhance user friendliness and fostering responsiveness are indeed crucial aspect for banking sectors to prioritize.