THE EFFECTS OF E-BANKING SERVICES ON CUSTOMER SATISFACTION: A CASE STUDY OF SELECTED DASHEN BANK BRANCHES IN ADDIS ABABA CITY

Abstract

The banking industry has seen substantial change as a result of the rapid development of information and communication technology, especially with the advent of electronic banking (ebanking) services. This study aims to examine the effects of e-banking on customer satisfaction in strategically selected branches of Dashen Bank S.C. located in Addis Ababa, Ethiopia. Using a quantitative method, quantitative data were collected through structured questionnaires distributed to 96 e-banking users across five branches based on using convenience sampling method. The research framework is built on E-S-Qual (E-SERVQUAL) model as developed by the Parasuraman et. al, focusing on key service quality dimensions of efficiency, system availability, fulfillment, privacy, responsiveness, compensation, and contact as independent variables influencing customer satisfaction. The findings analyzed through descriptive and inferential analysis using SPSS, reveal that among the service quality dimensions analyzed, compensation and system availability emerged as the most influential predictors, followed by privacy. Contact showed significant but negative effect, while efficiency and fulfillment demonstrated weaker impacts in the presence of other variables. The study found that system availability, compensation, and privacy significantly enhance customer satisfaction in Dashen Bank’s e-banking, while poor contact channels negatively impact it. Despite strong correlations, efficiency and fulfillment lacked independent significance due to multicollinearity. Recommendations include improving system reliability, strengthening compensation and privacy measures, revamping support channels, and streamlining overlapping functions.