ASSESSMENT OF ELECTRONIC PAYMENT SYSTEM PERFORMANCE AND ITS EFFECT ON CUSTOMER SATISFACTION (THE CASE OF COMMERCIAL BANK OF ETHIOPIA)

Abstract

Commercial bank of Ethiopia is one of the significant contributors to the economic growth and development of Ethiopia. This research work intends to investigate the effect of E-payment system variables on customer satisfaction in Commercial Bank of Ethiopia. In addition the research investigates major challenges encountered by the bank in delivering the service that may reduce the level of customer satisfaction in using the technology. Based on literature four quality dimensions (automatic teller machine, mobile banking, internet banking, and CBE birr) have been selected as forecasters of customer satisfaction in E-payment. The study adopted quantitative and qualitative research approach. Data were gathered through already tested questionnaire from 399 CBE E-payment users in Addis Ababa. The samples were selected from five special branches by purposive sampling technique. The data was gathered through 5-point likert scale and analyzed with the help Statistical Package for Social Science (SPSS) version 25. To test the relation between e payment satisfaction and the selected variables, descriptive statistics and regression analysis was used. The result shows that the product of e payment (automatic teller machine, mobile banking, internet banking, and CBE birr) have strong relationship on e payment customer satisfaction in CBE. More over the finding reveals customer satisfaction in using e payment has a relation with age and educational level. The major challenges that the bank faced in providing the service are; service broken due to internet connectivity and electric power problem, lack of Information and Communication infrastructures and lack of customer awareness in using the technology. Therefore CBE need to satisfy these dimensions (automatic teller machine, mobile banking, internet banking, and CBE birr) by all means in order to achieve customer satisfaction in e payment. In order to sustain customer satisfaction, CBE should work with concerned government bodies (Ethio-telecom & Electric power corporations). In addition to government support the bank should strive along with all banks in Ethiopia with the help of Bankers association so as to have dedicated infrastructure to financial institutions in the country.