| Title : | Impact of online on customer satisfaction and firm performance in Nepalese commercial banks | | Material Type: | printed text | | Authors: | Arya Shakya, Author | | Publication Date: | 2016 | | Pagination: | 68p. | | Size: | GRP/Thesis | | Accompanying material: | 4/B | | General note: | Including bibiolography | | Languages : | English | | Descriptors: | Customer satisfaction
Banks
Banks and banking
Customer services
| | Keywords: | 'online banking banking banks customer satisfaction nepal customer relations' | | Class number: | 332.170 | | Abstract: | Internet banking is any inquiry or online transaction process, without any reference to the branch at any time. It involves use of internet for delivery of banking products and services (Deyong et al., 2007). Once the branch offices of banks are inter-connected through terrestrial or satellite links, there will be no physical identity for any branch. It will be a borderless entity permitting anytime, anywhere and anyhow banking. Internet banking is the act of conducting financial intermediation on the internet (Ramya et al., 2013). It is that process whereby the customers are able to access, control and use their account over the internet. Online banking is one of the fastest growing banking practice now days (Khan, 2007).
In Nepalese context, current trend in private banking has been the changed from traditional branch banking to more stand-alone banking. In other words, a move towards using electronic delivery channels such as the internet, telephone and mobile phones has been increasing day by day (Yadav, 2004). Commercial banks operating in Nepal are consequently put into lot of pressures due to increase in competition (Banstola, 2007). Different strategies are formulated to retain the customer and the key of it is to increase the service quality level. Limited knowledge and resources on the customers side was regarded as major barrier faced by the banks for the development and widespread coverage of internet banking technology. Beside this, the information provided by the banks to its customers was not adequate and customers that are aware of the facility are not attracted towards utilizing it for their day-to-day transaction (Khatri and Upadhya-Dhungel, 2012).
This study has used primary and secondary sources of data to analyze the impact of online banking services on customer satisfaction and bank performance. The primary sources of data have been used to assess the opinion of respondents to examine present status and role of online banking in the banking performance. Secondary data have been collected from annual report of banks and supervision report of Nepal Rastra bank. The study was conducted in Kathmandu valley and 145 questionnaires survey has been accomplished for the study purpose. Frequencies of responses, percentages and ranking have been used to analyze the primary data while descriptive statistics, correlation analysis and regressions have been carried out to examine the secondary data.
This study found that satisfaction is positively related to ROA and ROE indicating that higher satisfaction to customer would lead to improved financial performance of the banks. Ease of use as an online banking variable is found to be positively related to ROA and ROE indicating satisfaction in ease of use for online banking leads to increased ROA and ROE of the Nepalese commercial banks. The positive correlation of usefulness of the online banking indicate that increased usefulness of the online banking to the customer leads to increased financial performance of the commercial banks in Nepal. The positive correlations of security in online banking with ROE indicate that return on equity of the bank increases if bank became able to increase security in online banking. Responsiveness is found to be positively related to ROA and ROE which indicates that if employees provide good response to customers complains and queries on online banking services, bank can increase financial performance; ROA and ROE. The regression result of return on assets (ROA) revealed that increased customer satisfaction increases the return on assets (ROA). Similarly, increased security in online banking and increased usefulness to the customer increases the bank performance as indicated by ROA. The regression analysis of the dependent variable (ROE) indicates that increased level of satisfaction to the customer increase the return on equity. Similarly, increased usefulness and security in online banking help to improve the banking performance as indicated by return on equity.
This study concluded that customer satisfaction in online banking has positive impact on bank performance of the Nepalese commercial bank. The improvement in online banking determinants such as ease of use, usefulness, security, responsiveness and efficiency leads to increased ROA and ROE of the commercial banks of Nepal. Further, friendly behavior of employees towards the customers query leads to increase the financial performance of the banks.
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Impact of online on customer satisfaction and firm performance in Nepalese commercial banks [printed text] / Arya Shakya, Author . - 2016 . - 68p. ; GRP/Thesis + 4/B. Including bibiolography Languages : English | Descriptors: | Customer satisfaction
Banks
Banks and banking
Customer services
| | Keywords: | 'online banking banking banks customer satisfaction nepal customer relations' | | Class number: | 332.170 | | Abstract: | Internet banking is any inquiry or online transaction process, without any reference to the branch at any time. It involves use of internet for delivery of banking products and services (Deyong et al., 2007). Once the branch offices of banks are inter-connected through terrestrial or satellite links, there will be no physical identity for any branch. It will be a borderless entity permitting anytime, anywhere and anyhow banking. Internet banking is the act of conducting financial intermediation on the internet (Ramya et al., 2013). It is that process whereby the customers are able to access, control and use their account over the internet. Online banking is one of the fastest growing banking practice now days (Khan, 2007).
In Nepalese context, current trend in private banking has been the changed from traditional branch banking to more stand-alone banking. In other words, a move towards using electronic delivery channels such as the internet, telephone and mobile phones has been increasing day by day (Yadav, 2004). Commercial banks operating in Nepal are consequently put into lot of pressures due to increase in competition (Banstola, 2007). Different strategies are formulated to retain the customer and the key of it is to increase the service quality level. Limited knowledge and resources on the customers side was regarded as major barrier faced by the banks for the development and widespread coverage of internet banking technology. Beside this, the information provided by the banks to its customers was not adequate and customers that are aware of the facility are not attracted towards utilizing it for their day-to-day transaction (Khatri and Upadhya-Dhungel, 2012).
This study has used primary and secondary sources of data to analyze the impact of online banking services on customer satisfaction and bank performance. The primary sources of data have been used to assess the opinion of respondents to examine present status and role of online banking in the banking performance. Secondary data have been collected from annual report of banks and supervision report of Nepal Rastra bank. The study was conducted in Kathmandu valley and 145 questionnaires survey has been accomplished for the study purpose. Frequencies of responses, percentages and ranking have been used to analyze the primary data while descriptive statistics, correlation analysis and regressions have been carried out to examine the secondary data.
This study found that satisfaction is positively related to ROA and ROE indicating that higher satisfaction to customer would lead to improved financial performance of the banks. Ease of use as an online banking variable is found to be positively related to ROA and ROE indicating satisfaction in ease of use for online banking leads to increased ROA and ROE of the Nepalese commercial banks. The positive correlation of usefulness of the online banking indicate that increased usefulness of the online banking to the customer leads to increased financial performance of the commercial banks in Nepal. The positive correlations of security in online banking with ROE indicate that return on equity of the bank increases if bank became able to increase security in online banking. Responsiveness is found to be positively related to ROA and ROE which indicates that if employees provide good response to customers complains and queries on online banking services, bank can increase financial performance; ROA and ROE. The regression result of return on assets (ROA) revealed that increased customer satisfaction increases the return on assets (ROA). Similarly, increased security in online banking and increased usefulness to the customer increases the bank performance as indicated by ROA. The regression analysis of the dependent variable (ROE) indicates that increased level of satisfaction to the customer increase the return on equity. Similarly, increased usefulness and security in online banking help to improve the banking performance as indicated by return on equity.
This study concluded that customer satisfaction in online banking has positive impact on bank performance of the Nepalese commercial bank. The improvement in online banking determinants such as ease of use, usefulness, security, responsiveness and efficiency leads to increased ROA and ROE of the commercial banks of Nepal. Further, friendly behavior of employees towards the customers query leads to increase the financial performance of the banks.
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