IGBINEDION UNIVERSITY OKADA, EDO STATE

IMPACT OF E- BANKING ON CUSTOMER SATISFACTION

IN THE NIGERIA BANKING SECTOR: A Case Study of First
Bank Plc , Uromi.

OFONMHAN , LYDIA OBOH

PG/ 22/0260271/BMS
 ABSTRACT
 The study investigated the impact of e - banking on customer satisfaction in the Nigeria banking
sector . And the study was also aimed at examining the factors influencing customers’ satisfaction
in electronic banking services and establish the relationship between electronic banking services
and customer satisfaction.
 The research sought to investigate the factors influencing customers’ satisfaction of e-banking
services , the relationship between e- banking services and customer satisfaction and analyse the
level of customer satisfaction of e- banking service in first bank Plc.
 Regression results were used to test Hypotheses 1- 2.
 The study reveals that unavailablity of cash in automated teller machine and double traansaction in
mobile baking due to network issues are factors influencing customers’ satisfaction negatively.
 Banking serviceds can be accessed anywhere with the process of electronic banking which makes
satisfaction well developed.
 The research recommends among other things that in satisfying its customers,banks should always
endeavour to load their ATM.
 BACKGROUND OF THE STUDY
1 E- banking the 21st century has become widespread and its effect inevitable, An outstanding development in the
adoption of information and communication technologies (ICT)in providing banking products and services.
2 Genevive and Anyanwaokro (2017) stated that the manuel operations caused very slow and inefficient performance of
the banks in Nigeria and technology has affected the performances of all Nigerian banks in the previsions time.
3 This century has been associated with the availability of dynamic customers whose the interest is targeted on banking
service, improved regulation, and high profitability. The electronic means of payment is a way of carrying out finnancial
transactions with the use of mobile or internet in order reduce the huge risk involved in carrying physical cash or paper
cheque.
4 Singh and kaur (2013) stated that the impact of technology on banks is not limited to the financial services industry,
application of information and communication technology polices, processes, policies, and implementation methods in
the banking services has become a critical and timely issue for all banks, as well as a necessary prerequisite for global
and regional banking competitiveness.
5 Online banking service are now being used as a strategies tool in developed and emerging areas of the world(AI-
dmour, 2019) , competitiveness in the banking sector has called for an increase industries around the world on board the
electronic network.
 STATEMENT OF PROBLEM
 Customer satisfaction determines the successes or failure of a business
in order to be competitive in the marketplace, banks need to satisfy their
customers.

 Such challenges may include non-commitment of customers as a result

of poor services in electronic banking, And poor electronic banking
services can be equally affect the loyalty of customer by reducing their
willingness to continue to patronise the bank’s product or services.
 Though this problem has been common in the Nigeria banking
enviroment, there have not been adequate studies to determines other
factors and their efforts in influencing customer satisfaction in Nigeria
banks.
 OBJECTIVES OF THE STUDY
The general objective of this study is to find out the effects of e- banking on customer
satisfaction using first bank Plc, Uromi, Edo state as a case study. The specific
objectives are to :
a) examine if there are significant factors influencing customers satisfaction in
electronic banking services;

b) To establish the relationship between electronic banking services and customer

satisfaction;
 SCOPE OF THE STUDY
The study focuses on the impact of e-banking on customer
satisfaction in the Nigeria banking sector in first bank plc,
Uromi.
 The researcher concentrated on electronic banking as a
independent variable.
 The study will use customer satisfaction as a dependent
variable, and the research centred on customers of first bank in
Uromi
 primary data was collected using self- administered,
structured questionnaira both open and closed ended.
 LIMITATIONS OF THE STUDY
• it was also limited by financial challenges and climatic conditions such
as constant rainfall, that disrupted movements to the areas for sourcing
of data.
• Bad condition of roads with all the security threats were a big issue to
contend with
• Insufficient time was another factor ,there was not enough time to
devote to the research project.
 RESEARCH QUESTIONS

• The study by the following research questions:

• what are the factors influencing customers’ satisfaction in
electronic banking services?
• What is the relationship between electronic banking services
and customer satisfaction?
 RESEARCH HYPOTHESES

This research is being guided by the following hypotheses:

Ho : There are no factors significantly influencing
1

customer satisfaction with e- banking.

H0 : There is no significant relationship between

2

electronic banking services and customers’ satisfaction.

 SIGNIFICANCE AND JUSTIFICANCE OF THE STUDY

1. The study is significant in many respect, it will help the management and
other stakeholders of first Bank to understand how best they can use
electronic banking services to meet the needs of customers.

2.It will also help the research to acquire skills of carrying out research and
also provide up- to -data information for practitionersand students in the
retail banking industry for further research.

3. furthermore, the research hope that the outcome of this studywill also
add to the existing liternature in e- banking serving and customer
satisfaction.and the result is equally hoped to help to make useful
recommendations for further studies.
 RESEARCH DESIGN
 The research design study used was Ex-post factor descriptive
research design.
 The population of the study included bank customers of first
bank plc , uromi branch which are 59.
 The data collected for this study was analyzed by using
calcualators and statistical package for social science (SPSS).
 The reliability coefficient of the instrument was determined
using Pearson product Moment Correlation formula (PPMC) .
 A statistician from National Institute of Construction
Technology (NICT) was also using in validating the instrument.
 TABLE 4.1: DEMOGRAPHIC COMPOSITION OF
THE RESPONDENTS
ITEM FREQUENCY PERCENTAGE

Bank customer 52 100%

total 52 100%
2. Gender
Male 28 54%
Female 24 46%
Total 52 100%
3.Age 5 10%
25-34 yrs
35-44yrs 32 61%
45-54 yrs 10 19%
55 yrs and above 5 10%
Total 52 100
 TABLE 4.5:PPMC ON FACTORS SIGNIFICANTLY INFLUENCING
CUSTOMER SATISFACTION WITH E- BANKING IN FIRST BANK PLC.

variable N R Sig.(2tailed) Remark

E-banking 0.36

Customer 50 Accepted
satisfaction

Total 52
 TABLE 4.6 : PPMC ON NO SIGNIFICANT RELATIONSHIP BETWEEN ELECTRONIC
BANKING SERVICE AN D CUSTOMER SATISFACTION IN FIRST BANK PLC.

variable N R Sig. (2 tailed ) Remark

E-banking .038
Customer 50 Accepted
satisfaction
Total 52
 SUMMARY
The findings include:
1. The findings on the factors influencing customers’ satisfication negatively in
electronic banking services on the studied revealed that unavailability of cash
in automated teller machine and double transaction in mobile banking due to
network issues factors influencing customers’ satisfaction negatively.
2. Based on the percentage score recorded, it was found that majority of the
respondents agreed that unavailability of cash in automated teller machine
and double transaction in mobile banking due to network issue.
3. The finding on the relationship between electronic banking services and
customer satisfaction revealed that banking service can be accessed anywhere
with processof electronic banking which makes satisifactionwell developed.
 CONCLUSION

 This study revealed that unavailability of cash in automated teller

machine is the main factor influencing customers’ satisfaction
negatively.
 It is obvious that bank customers are not satisfied whenever they want
to make use of ATM for cash withdrawal and the machine is unable to
dispense cash.
 Nowadays , banking transaction can be done anywhere a customer
finds himself in as much as there is availability of network in that
environment .
 RECOMMENDATIONS
Based on the findings and conclusions of this study, the following
recommendation we are made:
 In satisfying its customers, banks should always endeavor to load their
O00

ATM with enough cash for daily transactions.

 Network is vital in electronic banking services, therefore, banks should
make sure that is steady network in their system for easy internet mobile
banking services..
 Government should subsidies data subscription for easy internet and
mobile banking.
 CONTRIBUTION TO KNOWLEDGE
The study contributes to knowledge in the following ways:

It investigated the effects of electronic banking services

on customers’ satisfaction in banking sector in Nigeria.
it attempted looking at the factors that influence
customers’ satisfaction negatively in electronic banking
services and level of satisfaction by customers'
 This study also will add value to the body of literature
by establishing the relationship between electronic
banking services and customer 'satisfaction.
 SUGGESTIONS FOR FURTHER RESEARCH

for further researches in this area, the following

suggestions were made:
The effect of electronic banking services on
customers’ loyalty and confidence.
Building customers’ commitment on banking services
through electronic banking services in Nigeria
Assessment of electronic banking services in rural
communities in Nigeria.
THANK YOU FOR
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