Effect of Electronic Banking on Service Satisfaction to Customers of Financial Institutions in Rwanda

Abstract

The study is about the effect of electronic banking on service satisfaction to customers of financial institutions in Rwanda. It was conducted as a case study of Equity Bank (Rwanda) PLC. The objectives of the study were to determine the level of satisfaction among e-banking customers, and to establish the relationship between level of e-banking and level of service satisfaction. The study used a case study design in which primary data was collected from 384 sampled e-banking customers of Equity Bank (Rwanda) PLC. The study initially applied purposive sampling method to ensure that only e-banking customers who had been using the service between 2020 and 2023 are the ones selected, and thereafter randomly selected the desired sample size. The sample size was determined using the Morgan and Krejcie (1970) sample size determination table. Data was collected using a semi-structured questionnaire which was administered to the sampled customers, and an interview guide which was administered to Key Informants from Equity Bank (Rwanda) PLC. Quantitative data was analyzed using Microsoft Excel spreadsheet, while the qualitative data was analyzed using a master table of the content method. The results of the study indicated that most e-banking customers (60%) were moderately satisfied with e-banking services. The results also showed that there was no change in level of satisfaction with increasing duration of use of the e- services. The study therefore concludes that the level of service satisfaction is moderate, and there is no relationship between level of e-banking and level of satisfaction. The study recommends that much as most customers are moderately satisfied, the bank needs to enhance the quality of its service delivery in order to attain a very high level of satisfaction by all its customers. This is also supported by the absence of relationship between level of banking and level of service satisfaction in which case quality of service delivery becomes the key driving factor for level of satisfaction.