Internet banking service quality and customer satisfaction at Barclays bank of Kenya

Abstract

Information Technology has emerged to be a strategic resource for attaining efficiency, controls, productivity and profitability and this has caused banks to utilize technology to meet the ever increasing customer expectations. The rapid technological advancements have led to internet as the best channel for provision of banking services and products to its customers and fundamental changes in how companies interact with their customers and supply internet banking services so as to establish and extend their customer relationship. The need to improve customer satisfaction forces financial institutions to introduce a unique technology platform that integrates information flows from other existing channels This master’s project evaluates customer satisfaction with internet banking service quality (ISBQ) in Barclays Bank of Kenya. The research seeks to identify how satisfied the banks customers are with IBSQ and also the influence it has on customer satisfaction. The general objective of this study was to evaluate the relationship between ISBQ and customer satisfaction at the bank. Specifically, the study was to establish the level of ISBQ, the level of customer satisfaction with ISBQ, the influence of ISBQ on customer satisfaction and the influence of customer demographics on internet banking customer satisfaction at BBK. The studies found that, within BBK, more customers were satisfied than dissatisfied with the entire IBSQ dimension items while customer satisfaction was highest for the assurance dimension. The least satisfied quality item was in customer service and the internet banking system’s ability to guide customer to resolve problems. Generally, satisfaction of IBSQ differs among different income groups, but not significantly different according to their gender, age, education and marital status. It was recommended that since BBK has significantly high IBSQ it can be used as a competitive tool to attract potential customers. The banks management need to keep improving the web design of the internet banking portal to make it more navigable, provide sufficient information and make it easier for customers to complete online transactions. Attention should also be focused on the customer service and preferential treatment dimensions items to ensure that there is almost no significant customer dissatisfaction while giving priority to the assurance dimension items in providing internet banking services to its customers. It is equally recommended that customers could be segmented based on distinct income earning groups.