Electronic Banking and Customer Satisfaction in Centenary Rural Development Bank, Uganda

Abstract

The study examined the relationship between electronic banking and customer satisfaction in Centenary Bank. The following objectives were aimed at: to establish the relationship between e-funds transfer and customer satisfaction of Centenary Bank; to examine the relationship between telephone banking and customer satisfaction in Centenary Bank and to assess the relationship between internet banking and customer satisfaction in Centenary Bank. The study used a correlation research design employing both quantitative and qualitative approaches. A total of 215 participants were sampled to select 172 respondents. The study findings revealed a significant relationship between E-funds transfer banking and customer satisfaction in Centenary bank (r=0.669, P=0.022). Secondly, a significant relationship between telephone banking and customer satisfaction in Centenary bank was found out (r=0.544, P=0.039). Lastly, findings indicated that internet banking has a negative relationship with customer satisfaction of Centenary Bank (r= -0.276, P=0.041). It was concluded that there is a significant relationship between a combination of E-funds transfer, telephone banking, internet banking and customer satisfaction at Centenary Bank. Thus, it was recommended that for purposes of promoting e funds towards finance performance, building trust with the customers would be important for Centenary Bank while improving the usefulness of electronic banking. In courtesy to achieve more with telephone banking on financial performance, it is imperative that Centenary Bank ensure security and privacy are in place to monitor and evaluate the usage of the implemented technologies. Lastly, on internet banking and the customer satisfaction of Centenary Bank, the bank needs to make sure that awareness about internet banking is created in the public through massive advertisement on radios, televisions and newspapers.