Influence of digital banking on customer satisfaction: a case of national bank of Kenya Bungoma county

Abstract

Banks have been forced to deleverage and identify alternative sources of value as a result of increased regulations and competitive challenges. This has led to the introduction of digital banking where technology is mostly embraced while carrying transactions. However, customers are still waiting for this new banking experience, touted as a revolutionary transformation that will bring many new features, including anytime and anywhere banking, ultra-fast response times, and omnipresent advisors. This study purposed to investigate the influence of digital banking on customer satisfaction case of National Bank of Kenya Bungoma County. Four objectives that guided the study: To determine the influences of speed of transactions, to assess influences of accessibility, to determine influences of adaptability of digital banking and to establish how affordability of digital banking influences Customer Satisfaction case of National Bank of Kenya, Bungoma County. The target population for the study was bank customers and banking staff from National Bank in Bungoma County. The study utilized a sample size of 417 with 42 respondents being part of the pilot study undertaken. Descriptive survey design was undertaken. Data was collected using a triangulation of methods including questionnaires, interview schedules and document reviews. Analysis was undertaken with the aid of Statistical Package for Social Sciences where both descriptive and correlation analysis were performed. The findings of the study established that there was a strong positive correlation between speed of transactions and customer satisfaction(r=0.749, p<0.01), Accessibility of digital banking was positively correlated with customer satisfaction (r=0.865, p< 0.01), adaptability of digital banking and customer satisfaction was also correlated (r=0.789, p<0.01) and lastly there was a negative significant relationship between affordability and customer satisfaction (r= -.216, p<0.01). the study recommends that there is need by banks to invest more on robust reliable systems to reduce incidents of failed transactions and transactional errors in ATMs, Mobile banking and POS terminals, need to come up with an application that can be used to enhance digital banking, facilitation of ICT skills so that technology can be embraced and lastly there is need to carry out customer satisfaction surveys to establish how customers are adapting to technology. 1