Abstract

The study was an exploratory study aimed at understanding the effect of electronic banking on customer satisfaction delivery in three selected branches of three banks in the Buea community.

Purposive sampling strategy was adopted to select 69 customers as well as 29 staff of the three selected banks.

The Effect of Electronic Banking On Customer Satisfactory Delivery in Buea

The questionnaire was used as the principal tool for data collection. With the aid of the SPSS windows software the data was analyzed using basic statistical tools such as frequencies and percentages.

The study among other things brought to the fore that customers prefer to transact business in the halls in spite of the long queues largely because of the difficulty associated with accessing e-banking products.

The data analysis also showed that customers of the selected banks were highly aware of the various e-banking platforms available at their respective bank.

The study revealed that in spite of the difficulties associated with the use of e-banking products, majority of the respondents highly patronize these services.

This was particularly the case with the use of ATM machines as respondents alluded.

However, ignorance on the part of the customers regarding the use of e-banking services was a huge challenge.

The study, based on the findings recommended among other things that most (customer) education regarding the usage/ advantages of e-banking products and services should be embarked by the banks.

Also, the researcher suggested that there should be a widespread citing of ATM machines around vantage points.

CHAPTER ONE

INTRODUCTION

1.1. Background to the Study

Timothy (2012) posits that decades back banking was a simple business; consumers were not keeping money homes but rather saved their money and received their money from financial institutions from banks.

When customers open a savings account, they get accounts to book from the bank with which the account would be operated; and when it is a current account, they get cheque books for the comparative reason. Today, the banking industry has moved into a time of menu-driven ultra-generous specialized software undertakings called banking applications.

These applications can do basically every single banking capacity depending intensely on data accumulation, stockpiling, and transfers and processing.

The use of electronic banking products and services to banking operations has turned into a subject of key significance and concerns to all banks.

In any case, it ought to be understood, that electronic banking service came out of Information and Communication Technology that made it feasible for service providers and their customers in developing economies to enjoy the services that is also enjoyed in the developed countries.

Electronic banking services have given banks the chances to inspire clients which urge them to continue banking with them.

Today, it is hard to see a bank in the nation that does not offer one type of electronic banking service or the other, even banks in the most remote parts of the world.

Information and communications technology has become a vital asset that has transformed many areas of life including business and commerce.

Information systems are used in business to facilitate new products and create market opportunities.

Developed and developing areas of the world are now using internet banking services as a competitive strategy as noted by (Garau, 2002).

Banking has been one of the services that provide the opportunity to use the internet to enhance business transactions that engenders customer satisfaction.

The term electronic banking was defined by Allen et al (2001) to mean the procurement of data or services by a bank to its clients by means of a computer. A more sophisticated service is the particular case that furnishes clients with the opportunity to get access to their accounts and execute transactions and to buy item online by means of the internet (Daniel, 1999).

The competitiveness in the banking industries has called for the need to bringing on board the electronic platform into industries around the world.

For example, four Thai banks chose to implement, investigate, analyze and endeavour to present Internet banking service as an intend to decrease holding up time, lapses, costs, and enhance customer service backing 1997.

Their internet banking services permit clients to access and inquire about their own particular accounts and perform basic transactions by means of the Internet from their PCs at their workplace and home whenever the timing is ideal time.

Additionally, so as to lower cost and keep up business sector authority, bank leaders in Iran have profited by unrivalled services quality and information technology infrastructures.

In Africa, electronic banking is starting to pick up its roots over the mainland.

For instance, Madueme, (2009) compose that with globalization, Nigerian banks must choose the option to embrace electronic banking services to upgrade successful service conveyance that rises above to customer satisfaction, on the off chance that they truly need to stay in the business race, not to mention be beneficial and once more, the late merging activity in Nigerian banking division has drawn the consideration of numerous banks to the utilization of different mechanical gadgets in advancing/accomplishing better customer service conveyance that ensured customer satisfaction that interprets into expansion benefit and higher rate of profitability.

The use of electronic banking products or services to banking operations has turned into a subject and concerns to all banks working inside Cameroon and without a doubt a condition for domestic and global competiveness, noted, (Ezeoha, 2006; Ngwa, 2000).

Banks have realized that the banking of tomorrow requires more of electronic banking transactions rather than traditional banking systems.

In other words, the paper based transaction is now being replaced by electronic-based transactions. Whether a bank would be successful or not rely on upon the degree to which it is putting resources into IT and utilizing it as a part of an inventive way.

This territory has been noted to be a noteworthy competitive ground for banks that are working in the post-solidification time.

Telephone banking, Automated Teller Machines (ATMs), internet banking, mobile banking, and network banking and many others are examples of how technology is changing traditional banking now.

1.2 Statement of the Problem

Existing literature posits that electronic commerce gives a competitive advantage for banks by reducing operational cost and provides best satisfaction of customer needs.

For example, Burnham (1996) recounted that in the world of electronic commerce, it is very important that banks should provide electronic banking services in order to survive.

Hence, most banks in developed and some in developing parts of the world are currently offering electronic banking services with different levels of complexity.

It is normal that banks that don’t offer electronic banking services may lose their clients to their competitors (Orr, 1999).

As a result of this emerging trend major national and international banks in Cameroon are embracing and incorporating information and communication technology in their day to day operation.

Gyasiet al, (2013) acknowledge that currently, some banks like United Bank for Africa, BICEC, ECOBANK Cameroon, among others have adopted internet banking platform and a wide range of electronic products and services, some of which allow customers to receive their monthly bank statements via e-mail, online checking of accounts balance, online transfer of funds, the use of electronic cash systems, and for communicating to customers on regarding bank statements, other banks use internet banking services to allow business customers to make inter-bank financial transactions and information sharing.

Competition in the Cameroon banking industry is becoming keener as more and more banking players enter the market. In response, many financial institutions are directing their strategies towards increasing customer satisfaction and loyalty through improved service quality (Abor, 2011).

This has called for a continual strengthening and intensifying electronically based services.

The services include Automated teller machine (ATM), Internet banking, Mobile phone banking, E-switch telephone banking, SMS banking, Home banking, Network banking, Phone banking, Telephone banking, Gsmsim toolkit, Personal computers, Electronic wallet, and many several others.

Even though electronic banking was adopted by banks so as to ease pressure at the banking hall and provide space yet this seem not to have been materialized.

Some banks in Cameroon have instituted measures to deter people from the normal face – to – face banking by imposing some transactional charges on it while making the electronic transactions virtually free if not little charges.

In spite of all these efforts, little has it impacted on the behaviors of many customers and consequently the long queues and congestions exist at the banking hall in Cameroon and for that matter Buea.

The question that arises from the above argument is that why are customers still preferring being in queues and spending more hours in the banking transactions that being at their comfort zone and banking electronically?

It is against this background and other related issues that the researcher attempts to answer in this study by finding out why these problems occur and in most cases persist in the major banks in Buea, Cameroon.

1.3 Research Questions.

The main research question is to find out how satisfactory our customers on electronic banking.

 1) Why do customers prefer the banking halls to electronic banking?

 2) What is the level of awareness of the existence of the various electronic products?

 3) At what level do customers patronize electronic banking satisfaction?

 4)  To investigate the benefits and challenges associated with electronic banking services

1.4 Objectives of the Study

The main objective of this study is to find out the effect of electronic banking on customer satisfaction on delivery. Specifically, the study seeks to;

 1) Assess customers‟ preference between banking in the halls and e-banking and customer satisfaction.

 2) Investigate whether or not customers are aware of electronic service products and customer satisfaction.

 3) Determine the level of customer patronage of electronic banking satisfaction.

 4) Examine the benefits and challenges associated with electronic banking and customer satisfaction.