The linkage of internet banking and customer satisfaction in commercial banks in Kenya

Abstract

From the banks' viewpoint, use of Internet banking is expected to lead to cost reductions and improved competitiveness. This service delivery channel is seen as powerful because it can retain current Web-based customers who continue using banking services from any location. Moreover, Internet banking provides opportunities for the bank to develop its market by attracting a new customer base from existing Internet users. It means that banking services such as services introduction, loan application, account balance inquiry, and fund transfer are provided by a bank through the Internet. This study therefore sought to determine the linkage between Internet banking and customer satisfaction in commercial banks in Kenya. This study employed a survey method of design. The study targeted 42 respective heads of Internet banking departments and 42 corporate customers of commercial banks who use Internet banking. Primary data was collected using self-administered questionnaires. The data collected from this study was mainly presented through the use of summarized percentages, proportions and tabulations and other data presentation tools in all the sections of the questionnaires. From the findings, the study found that Internet banking was used by commercial banks .• in Kenya. This was mainly because marketing staff of the bank had been helpful in communication in regards to the Internet banking services to customers, senior management and staff of the bank encouraged use of Internet banking services. Customers find Internet banking useful to them, it also made them to be more skillful, it makes their banking obligations and duties more interesting and more enjoyable and also it increases their satisfaction with the services of the bank. The study therefore recommends that for effective usage of Internet banking in commercial banks in Kenya, customers should be assured of maximum security in Internet banking services, and also assured that there is a legal recourse in case of any fraud in their account through Internet banking. Customers should also be given the skills on how to use the technology and be made aware of the advantages of using the Internet banking versus the human teller.