Abstract

This exploratory study aimed to examine the impact of electronic banking on customer satisfaction delivery in three selected branches of banks in the Buea community. A purposive sampling strategy was used to select 69 customers and 29 staff from the three selected banks. The primary data collection tool was a questionnaire, and the data was analyzed using basic statistical tools in the SPSS software.

The study revealed that customers still prefer conducting their banking transactions in the physical banking halls despite long queues, primarily due to difficulties associated with accessing electronic banking products. However, the analysis also indicated that customers were highly aware of the various electronic banking platforms offered by their respective banks. Despite the challenges associated with electronic banking, the majority of respondents reported high patronage of these services, particularly with the use of ATM machines.

One significant challenge identified was the lack of customer knowledge regarding the use of electronic banking services. Based on the findings, the study recommended that banks should embark on extensive customer education regarding the benefits and usage of electronic banking products and services. Additionally, the widespread placement of ATM machines in strategic locations was suggested.

CHAPTER ONE

Introduction

1.1 Background of the Study

Traditionally, banking operations involved customers depositing and withdrawing money from financial institutions. However, with the advancement of information and communication technology, electronic banking has emerged as a key component of banking services. Electronic banking allows banks to provide data and services to customers through computer systems. It offers convenience and efficiency in banking transactions, leading to increased customer satisfaction.

Electronic banking services have become essential for banks worldwide, as they provide a competitive advantage by reducing operational costs and meeting customer needs. In both developed and developing countries, banks have incorporated electronic banking services into their operations. This trend has been driven by the globalization of business and the increasing reliance on information technology.

In Cameroon, electronic banking is gaining prominence, with major national and international banks adopting information and communication technology in their operations. Banks have realized that the banking of the future relies heavily on electronic banking transactions. Traditional paper-based transactions are being replaced by electronic-based transactions, such as telephone banking, ATMs, internet banking, and mobile banking.

However, despite the availability of electronic banking services, customers in Cameroon still prefer conducting their transactions in physical banking halls, leading to long queues and congestion. This raises questions about why customers continue to prefer traditional banking methods over electronic banking, and the factors influencing their satisfaction with electronic banking services.

1.2 Problem Statement

The problem addressed in this study is the persisting preference of customers for physical banking halls over electronic banking services, resulting in long queues and congestion in banks in Buea, Cameroon. Despite the efforts of banks to encourage the use of electronic banking through transactional charges and incentives, customers continue to show reluctance towards adopting electronic banking methods.

The research aims to investigate the reasons behind this customer preference for physical banking, assess the level of awareness among customers regarding electronic banking services, determine the extent of customer patronage of electronic banking, and examine the benefits and challenges associated with electronic banking in relation to customer satisfaction.

1.3 Research Questions

The study is guided by the following research questions:

1. Why do customers prefer physical banking halls over electronic banking?
2. What is the level of awareness among customers regarding electronic banking services?
3. To what extent do customers patronize electronic banking services?
4. What are the benefits and challenges associated with electronic banking in relation to customer satisfaction?

1.4 Objectives of the Study

The main objective of this study is to investigate the impact of electronic banking on customer satisfaction. The specific objectives are as follows:

1. Assess customers’ preference between physical banking halls and electronic banking and its impact on customer satisfaction.
2. Determine the level of awareness among customers regarding the various electronic banking services and its impact on customer satisfaction.
3. Measure the extent of customer patronage of electronic banking services and its impact on customer satisfaction.
4. Examine the benefits and challenges associated with electronic banking and its impact on customer satisfaction.