IMPACT OF E-BANKING ON SERVICE QUALITY AND CUSTOMER SATISFACTION IN SELECTED PRIVATE COMMERCIAL BANKS IN BANGLADESH

Abstract

Introduction Online banking has influenced Bangladesh banking sector in a tremendous way. The application of bank products and services with the help of internet is called online banking. Integration of telecommunication instruments and tradition banking is called e-banking. Online banking has brought a great change in Bangladesh banking sector. Because of turbulent environment, Bangladeshi banks have been dynamic to meet this trend. The emergence of online banking has been making the banking practice easier since its conception in Bangladesh. The concept has moved Bangladeshi banks to a new height; they can compete favorably with another bank's world over. The banking industry believes that by adopting the new technology, Online banking, the banks will be able to improve customer service level and tie their customers closer to the bank. There are still some challenges of online banking in Bangladesh such as fraud, long waiting days for reversal of failed transactions, long queues and so on [1]. This study's objectives were-(i) to determine the effect of e-banking on customer satisfaction in selected banks of Bangladesh, (ii) to examine the effect of online banking products on service quality, customer satisfaction and (iii) to assess the challenges affecting e-banking [2]. Null Hypotheses were raised in line with the objectives of this research. There is no significant relationship between online banking, service quality delivery and customer satisfaction. E-payment remains the most widely used in the online banking solutions. Literature Review Some researchers conducted a study on online banking product and service in Bangladesh. Their findings showed that all the banks have at least one particular form of electronic service among e-banking service, online banking service and online banking [3]. Though various online banking systems have been implemented and accepted by the customer; e-payment remains the most widely Abstract Background: Electronic banking (e-banking) is an important tool for all banks to survive in the competitive banking industry in Bangladesh. The study was designed to investigate the impact of online or e-banking in Bangladesh. There appear a few extensive studies on e-banking practices has been conducted in Bangladesh. But no comprehensive study has yet been conducted especially on impact of e-banking on service quality and customer satisfaction in Bangladesh. The main objectives of the study are to find out the impacts of e-banking products on service quality and customer satisfaction and access the challenges affecting e-banking. Methods and Findings: The sample consisted of 379 out of 66895 client's feedback were selected purposively from various commercial banks in Bangladesh. Standard questionnaires and interview methods were made in collecting data. Descriptive statistics was adopted in analyzing the data from the respondents. In addition, for analyzing data suitable statistical tools Statistical Package for Social Science (SPSS) were used. The results revealed that there is a significant relationship between quality of service and customer satisfaction. Conclusions: The paper concludes that e-banking has a positive impact on the quality of service in the Bangladesh banking sector, but not on customer satisfaction. The study suggests that staff training, and development should be enhanced in the banking industry in order to render quality and timely services to their customers.