Electronic Banking and Customer Satisfaction in Selected Banking Institutions in Mogadishu Somalia

Abstract

The study sought to assess the effect of electronic banking on customer satisfaction of Banks in Mogadishu Somalia. It was guided by three specific objectives that included; to determine the effect of ATM (Automatic teller machine) on customer satisfaction of Banks in Mogadishu Somalia, to establish the effect of electronic funds (EFT) transfer on customer satisfaction of Banks in Mogadishu Somalia and to establish the effect of mobile banking on customer satisfaction of Banks in Mogadishu Somalia. This research employed a cross-section research design to describe the variables and the questionnaire and interview guide were used as the research instruments. Descriptive statistics which were used in this study included frequencies and means and regression analysis was used to evaluate the significant effect of e-banking on customer satisfaction. The findings revealed the following: ATM (Automatic teller machine) significantly affects customer satisfaction of Banks in Mogadishu Somalia, this effect therefore implies that ATM (Automatic teller machine) highly contribute to customer satisfaction of Banks in Mogadishu Somalia, the findings revealed that there is a significant effect electronic funds (EFT) transfer has on customer satisfaction of Banks in Mogadishu Somalia, findings of this study proved a positive significant effect mobile banking has on customer satisfaction of Banks in Mogadishu Somalia. Still the conclusions were that; it is important to ensure that the ATM is established throughout the whole region of Mogadishu Somalia, effective electronic funds (EFT) transfer requires a reporting and review structure to ensure that electronic funds (EFT) transfer services are effectively identified and assessed and that appropriate controls and responses are in place and mobile banking needs an environment that is customer friendly and likely to develop on their contentment. The researcher recommended that: the commercial banks in Mogadishu Somalia should develop a good system to monitor all ATM transactions so that there is effectiveness in electronic banking and ensure to cover loopholes in the system to enhance customer satisfaction in commercial Banks, the bank managers in Mogadishu should develop an effective electronic funds (EFT) transfer system which makes electronic funds (EFT) transfer easy and flexible so as to boost customer satisfaction in commercial Banks. The study contributed to knowledge by observing with financial institutions, technologies like direct deposit, automated teller machines and credit/debit cards have been the key investments and innovation. In a clientele world, the customer is the king so if these technologies are meant to improve on service delivery and satisfaction, electronic banking acquire a better future and was still shown in the recommendations.