| Abstract: | Despite the rapid advancement of electronic banking (e-banking) services in Ethiopia, Wegagen
bank appeared to lag behind in fully leveraging these technologies to enhance customer
satisfaction. The main objective of this study was to investigate the effects of electronic banking
service on the customers’ satisfaction in Wegagen Bank in Addis Ababa. The researcher
specifically focused on assessing the current practices and extent of adoption of e-banking
services in WB, the effects of electronic banking services on the customers’ satisfaction and
assessing the relationship between the-banking service and customers’ satisfaction. To attain the
objectives, mixed research methods (quantitative and qualitative) were employed. Accordingly,
three data-gathering instruments (questionnaire for WB customers, interview for both WB
workers and customers, and document analysis) were used to collect data. Based on their large
number of customers, three WB branches (Stadium, Lideta and Abnet) were chosen as study
areas. From these selected three WB branches 345 customers were selected as respondents using
a purposive sampling technique. Additionally, from these branches, three workers (one from
each branch) and five customers were also purposely selected for the interview. The data were
categorized and analyzed using descriptive statistics (percentage, mean, Standard Deviation,
Pearson correlation and linear regression) for quantitative data, and thematic content analysis
with qualitative data. The main findings are: the bank has moderate (Grand mean score= 3.38)
practice of e-banking service and the customers have better habit of using the service in WB. On
the other hand, availability of internet/wifi (µ=3.6), speed and modernity of systems (µ= 3.59)
and availability of materials (µ= 3.58) are the main challenges customers face to have e-banking
services. As Pearson correlation coefficient(r) (.083) indicates, there is very weak positive
relationship between e-banking practice and customers’ satisfaction, and this implies that the
bank needs maximum effort to enhance its customers’ satisfaction in e-banking services in
conclusion, Wegagen bank has a valuable experience of facilitating convenient, prompt and
extra-expense saving e-banking service though there are challenges like system reliability, ease
of use and service speed that hinder customers to have high satisfaction in the e- banking service
However, such challenges might cause the insignificant but positive correctional relationship
between e-banking service and customers’ satisfaction. Accordingly, recommendations for
concerned bodies have been forwarded based on the drawn conclusions. |
