ABSTRACT
This research evaluates the customer satisfaction of bank customers a study of (Zenith Bank, First Bank Plc, Guaranty Trust bank Nigeria Ltd) Nigeria. The study adopted the descriptive research design. Using 120 questionnaires distributed to the bank customers of Umuahia Abia State. The study adopted Pearson moment correlation analysis. It was found out that there is a significant relationship between ATM service delivery, POS frequency, internet banking and customer satisfaction. It is recommended that the management of bank should educate their customers on the use of ATM in their transaction and friendly ATM machines should be acquire to improve perceive ease. Bank customers should be made known on the use of POS in their purchases, this will reduce carrying cash around from one place to another.
TABLE OF CONTENTS
Title Page i
Declaration ii
Certification iii
Dedication iv
Acknowledgement v
Table of Contents vi
List of Tables ix
Abstract x
CHAPTER
ONE: INTRODUCTION
1.1 Background
To The Study 1
1.2
Statement Of The Problem 2
1.3
Objective Of The Study 3
1.4
Research Questions 4
1.5
Statement Of Hypotheses 4
1.6
Significance Of The Study 4
1.7
Scope Of The Study 5
1.8
The Assumption Of The
Study 5
1.9
Limitations Of The study 5
1.10 Operational
Definition Of Terms 6
1.11 History
Of Selected Banks 7
CHAPTER
TWO: LITERATURE REVIEW
2.1 Development
In The E-payment Systems In Nigeria 11
2.2 The
Acceptance of E-Banking By Customers In Nigeria 16
2.3 Effect
Of Technology On Banking 18
2.4 Making
The Journey From cash To Electronic Payments 22
2.4.1 Electronic
Payments Toolkit 24
2.5 Theoretical Framework 28
2.5.1 Value
Chain Theory 28
2.5.2
Value Delivery Theory 29
2.6 Empirical
Study 30
2.7 Summary
Of The Review 31
CHAPTER
THREE
RESEARCH
METHODOLOGY 34
3.1 Research
Design 34
3.2 Research
Population 34
3.3 Sample
Size/Sampling Technique 34
3.4
Research Instrument 34
3.5
Psychometric Properties
Of The Research Instrument 35
3.5.1 Validity Of The Research Instruments 35
3.5.2 Reliability
Of Research Instruments. 35
3.6
Administration Of
Instruments 35
3.7
Measurement Of Variables 36
3.8
Sources Of Data
Collection 36
3.9 Model Specification 37
3.10 Method Of Data Analysis 37
3.11
Method For Test Of Hypotheses 38
3.12
Study Area 38
CHAPTER
FOUR
4.0 PRESENTATION AND ANALYSIS OF DATA 39
4.1 Distribution
of Questionnaire and Rate of Returns 39
4.2 Test of Hypothesis 43
CHAPTER
FIVE
5.0 SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary of Findings 47
5.2 Conclusion
47
5.3 Recommendation 47
References 49
Appendix
51
LIST OF TABLES
Table
4.1.1 Distribution
and Retrieval of Questionnaire 39
Table
4.1.2: Respondents
of the socio-economic characteristics 40
Table
4.1.3: Respondent
Opinion on the Key Research Questions 41
CHAPTER ONE
INTRODUCTION
1.1
Background
To The Study
The banking sector is generally coming up
in term of efficient service especially in the area of payments to customers.
This was not the many years ago when the use of cheques, bankers drafts, bills
of exchange and open account methods of payment were more rampant than the use
of electronic payments systems. E-payment employs cash substitutes such as
debit cards, credit cards, electronic funds transfer, direct debits/credits,
internet banking and e-payments systems.
The introduction of technology based
payments systems has done a lot to increase the convenience of bank’s
customers, staffs as well as the society at large (Kelvin, 2012). Today, paying
and receiving money between buyers and sellers are not necessarily done through
raw cash. Such payment can be made using e-payment channels such as ATM,
internet, Point of Sale Terminal (POS), Mobile money solutions and so on and so
forth.
Although, the use of these payment
mechanisms are not totally free from problem often, customers experience delay
in having access to the services provided through this electronic channels
(Olakah, 2012). One principal challenge in the use of (EPC) is power outage.
Power problem is a monster threatening every business in Nigeria. It may
fluctuate for hours and sometimes not available. These payment systems may
experience failure at any time or malfunction and as a result frustrate
transaction which may be urgent. A common ache in the use of one of the
electronic payment devices known as ATM is the trapping of cards for days by
the terminals thus preventing customers from making transactions until he or
she is able to retrieve his card from the machine. Occasionally, the ATM may
debit a customer’s account without dispensing cash to him or her, such case has
to be reported or the customer accepts liability. Generally, in every
electronic card based payment mechanisms, “server down” is a usual slang,
meaning that there is a network failure. When this occurs, the machine is
temporary unable to function properly or obey instruction given by the
customers at the payment terminals. The development of different electronic
payment systems has helped to enhance the payment of cash in banks up to a
limit of N500, 000 (Five Hundred Thousand Naira only) daily by individual
customers and N3, 000, 000 (Three Million Naira only) for corporate customers
without attracting charges except withdrawal is above the limit stated. The
payment has also promoted efficiency in the clearing of financial instruments
between the banks and Central Bank of Nigeria (2010). Despite the challenges
attributed to the electronic payments devices, the devices have indeed provide
relieve and convenience to the banking public, thereby promoting trade and
commerce and helping to grow the sectors of the economy and for the
satisfaction of customers.
1.2
Statement
Of The Problem
The use of conventional system of payment
in the banking sector had been in use for a long time. This system of banking is outdated
and is characterize with a lot of problems such as time wastage, inconvenience
to customers and so on and so forth. However, the advent of (EPC) in the
banking sector has changed the face of delivery systems, queuing in the banks
has been minimized, confirmation of the validity of transactions by customers
specifically for overseas transactions is almost immediate compare to the past
years, the new system has brought a lot of consciousness to the banking
industry through its simplicity and efficiency in processing and delivery of
customers services unlike in the former system of payments which involves a lot
of documentation and physical presence at the desks of banks managers before
concluding such transactions. Thus, this study will examine the impact of
Electronic Payment Channel (EPC) on customer satisfaction.
1.3
Objective
Of The Study
The study examines the impact of the (EPC)
on customer satisfaction. This is achieved by examining the following specific
objectives:
i.
to ascertain the extent
of relationship between ATM service delivery and customer satisfaction.
ii.
to ascertain the extent
of relationship between point of sale terminal and customer satisfaction.
iii.
to ascertain the
relationship between internet banking saving and customer satisfaction.
1.4
Research
Questions
i.
What is the extent of
relationship between ATM service delivery and customer satisfaction?
ii.
Are the e-payments channels
safe, secured and reliable to transact business by customers?
iii.
What are the extent of
relationship between Point of Sale (POS) terminal and customer satisfaction?
1.5
Statement
Of Hypotheses
The following hypotheses will be stated:
Ho1: There
is no significant relationship between ATM service delivery and customer
satisfaction.
Ho2: There
is no significant relationship between Point of Sale (POS) terminal and
customer satisfaction.
Ho3: There
is no significant relationship between internet banking and customer
satisfaction.
1.6
Significance
Of The Study
This study will help banking sector to be
efficient at all times by improving on the operatives of their electronic
payment channel (EPC) so as to satisfy their teeming customers and contribute
to the growth of economy and national development. The study help to explain
and expatiate the concept and operations of the Automated Teller machine (ATM)
point of sale (POS) and electronic payment channels (EPC) to the readers
especially the students of marketing and business at large. Future researchers
will have a sigh of relief as the study will serve as a base point and or reference
for their great future research endeavours thereby helping them to come out
with very improved and reliable findings.
1.7
Scope
Of The Study
The focus and boundaries of this study is
on the electronic payment channel (instruments) on customers satisfaction and
the efficiency of banking operations. It covered the acceptance of e-banking
instruments by customer of banks in Nigeria. The subject scope is customer
behaviour, the coverage scope customer that use e-payment channels in Abia. The
geographical scope is the First Bank, GTB and Zenith bank customers.
1.8
The
Assumption Of The Study
In the course of this study, the
researcher assumed that the customers of banks are not satisfied with the
efficiency of electronic payment channels (EPC). That the electronic payment
channels are so problematic and unreliable as far as banking services is
concerned.
1.9
Limitations
Of The study
The study was constrained to its scope as
a result of the following reasons:
i.
Abia state was chosen as
a study area to represent the entire nation. The researcher believes that the
findings was used to study the country at large.
ii.
That many channels of
electronic payment systems are not used or readily seen in some areas
especially in the remote areas where infrastructure and facilities are not
available or adequately provided.
iii.
That the electronic
payment channels are not all that famous so most of the information needed are
not easy to come by.
1.10
Operational
Definition Of Terms
The following terms to the researcher’s
conception was explained, for easy understanding.
Ø
Channel:
This is a medium that provide easy access
and usage of any item, services etc.
Ø
Electronic:
This is automation of a process using computer and internet facilities and
technology.
Ø
Points:
This is a terminal through which something is accessed or sent through.
Ø
Global:
This refers to a worldwide reach and coverage.
1.11
History
Of Selected Banks
First
Bank Nig Ltd
First bank was incorporated in 1894 at
Liverpool as Bank of British West Africa. She opened her first international
branch in Accra Ghana in 1896 and was incorporated locally in Nigeria as the
standard Bank of Nigeria Ltd in 1969. She was listed on Nigerian stock exchange
in 1971. First bank was incorporated as a public liability company on 4th
March 2004. She was one of the first established bank in the nation hence the
name.
First bank is a Nigerian and financial
services firm that have been in the forefront of carrying out banking
operations in the country till date. She is being regarded as one of the
biggest three in Nigeria banks. Others includes union bank plc which recently
had a shake up and united bank of Africa (UBA) etc.
First bank carries out both personal and
corporate banking hence its customers. cut across industrial types and races.
Some of the modern operations or products in banking are credited to the bank.
Some of which are western union money transfer, first mobile, internet banking,
etc. She is the largest retail lender in the nation. Most banks gather funds
from consumers and loan out to large corporations and multi nationals but first
bank plc has created a small market of it’s retail clients by approving loans
to them.
Customers have testified to the expertise
and technological operations of the bank. This can be evidenced as the bank has
survived many transformation processes of the CBN to come out on top.
As at the end of Sept 2013 she has assets
totaling approximately US $21.3 billion (NGN 3.336 trillion). The banks profit
after tax for nine months ending Sept. 2013 was approximately NGN 70.63
billion. Her head office is located at Samuel Asabia House, 35 Marine Lagos and
the current Chairman is Prince Ajibola A. Afonja.
Guaranty
Trust bank Plc
Guaranty Trust Bank plc was incorporated
as a limited liability company licensed to provide commercial and other banking
services to the Nigerian public in 1990. The bank commenced operations in
February 1991, and has since then grown to become one of the most respected and
service focused banks in Nigeria.
In September 1996, Guaranty Trust Bank Plc
became a publicly quoted company and won the Nigerian stock exchange
President’s Merit award that same year and subsequently in the years 2000,
2003, 2005, 2006, 2007, 2008 and 2009. In February 2002, the bank was granted a
universal banking license and later appointed a settlement bank by the Central
Bank of Nigeria (CBN) in 2003.
Guaranty Trust Bank Plc undertook its
second share offering in 2004 and successfully raised over ₦11
billion from Nigerian investors to expand its operations and favourably compete
with other global financial institutions. This development ensured that bank
was satisfactorily poised to meet the ₦25 billion minimum base for banks
introduced by the Central Bank of Nigeria in 2005, as part of the regulating
body’s efforts to sanitize and strengthen Nigerian banks. Post-consolidation,
guaranty Trust Bank Plc made a strategic decision to actively pursue retail
banking. A major rebranding exercise followed in June 2005, which saw the Bank
emerge with improved service offerings, an aggressive expansion strategy and
its vibrant orange identity.
In 2007, the bank entered the history
books as the first Nigerian financial institution to undertake a US $350
million regulation Eurobond issue and a US $750 million Global Depository
Receipts (GDR) offer. The listing of the GDRs on the London stock exchange in
July that year made the bank the first Nigerian company and African bank to be
listed on the main market of the London stock exchange.
In December 2009, Guaranty Trust bank
successfully completed the first tranche of its $200 million corporate bond
targeted at increasing the depth of its operations in West Africa and Europe in
the next couple of years.
In May 2011, the bank successfully
launched a US $500 million bond the first non-sovereign benchmark bond offering
from sub-Saharan African (outside South Africa), to the international community.
The highly successful offering which matures in 2016, went further to show the
international finance community’s believe in the GT Bank brand. As at the end
of 2013 she has assets totaling approximately NGN 242.66 billion. The banks
profit after tax at the end of 2013 was approximately NGN 90.02 billion. The
chairman of the board currently is Mr. Egbert Imomoh.
Zenith
Bank
Zenith Bank was established in May 1990.
It became a public limited company in July 2004, and had a initial public
offering on the Nigerian stock exchange (NSC) on October 21 of that year. Also
in 2004, credit rate agency pitch ratings identified its credit a AA on their
long-term scale. The bank started operation on corporate banking and few
private banking. This made them unique among their contemporaries and
competitors. They have branches nationwide in which Aba is one of them. The
bank has excel in banking operations with good amount of efficiency. As at the
end of 2013 she has assets totaling approximately NGN 110.59 billion. The banks
profit after tax at the end of 2013 was approximately £7.67 million. The
chairman of the board currently is Mr. Omojafor Steve and its group managing
director /chief executive is Godwin Emeliefe.
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