The Impact of E-Banking on Customer Satisfaction in Buea Case of Eco-Bank Buea Branch

Saturday, December 3, 2022

The Impact of E-Banking on Customer Satisfaction in Buea Case of Eco-Bank Buea Branch

Department: Banking and Finance

No of Pages: 61

Project Code: BFN3

References: Yes

Cost: 5,000XAF Cameroonian

 : $15 for International students

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Despite the stringent evaluation and monitoring strategies put in place by microfinance and banks to ensure all satisfaction of their customers as long as bank services is concern, there are still gaps to fill as customer satisfaction is concerned.


This study was conducted to investigate the impact of e-banking on customers’ satisfaction on the banking industry case of Eco bank Buea branch. The study was built around three specific objectives/research questions, hypothesis stated in both null and alternative form.


This study employed survey research design with a total population of 50 customers of Eco Bank Buea branch. The study also makes use of purposive sampling techniques, using a questionnaire as an instrument for data collection.


The study found out that E-banking service are very expensive to used, bank provides training session to train their customer as regards to the used of e-banking, e-banking transaction are fast and reliable.


The results show that the p-values obtain for E banking (0.002), security/privacy (0.001) Access to e-banking services (0.004) and for the regression coefficients are also lower than the alpha level of significant of 5% specified in SPSS for the analysis except for E banking, security/privacy, access to e-banking service.


The study conclude that e banking has a significate effect on customer satisfaction in the banking industry.  Hence, this study recommends that the management should Increase training their customer on e-banking service by so doing it will go a long way to increase their effectiveness and efficiencies in turn high customer satisfaction.




1.1 Background to Study

Telephones and Televisions are used daily by many; alongside these media the internet has become more important and useful for an increasing number of people. The internet has existed since the early 1960s but most of that time it was only accessible by the government and for scientific purposes.


By the mid-1990s, as web interfaces improved, it became available to the public and E- commerce became possible by early 1990s when the internet was open to commercial used. E- banking on a 24/7-time scale has become very important to all it users to trace and track their transactions as they occur and to ensure their account statues and stability.


Thus, it has become very important to have banks that can serve, support and work with e-commerce companies and consumer’s 24/7.They provide banking services and systems that that connect to e- commerce websites allowing customers to check their transactions online, allow businesses to attain their goals, and allow customers to move money around to accomplish their financial transactions.



Electronic banking therefore is a process by which a customer may perform banking transactions electronically without visiting a financial institution. Electronic banking (e-banking) is the newest delivery channel of banking services.


The definition of e-banking varies amongst researchers partially because electronic banking refers to several types of services through which a bank's customer can request information and carry out most retail banking services via a computer, television or mobile phone.


Burr, 1996, for example, describes it as an electronic connection between the bank and customer in order to prepare, manage and control financial transactions. The latest update one banking involves Digital Account Opening, P2P payments, Video Collaboration/Marketing, Cloud Computing, and Application Programming Interfaces (APIS).


Banks operate in a strategic information system environment which indicate that they are information-intensive and highly dependent on the information technology   as their as their core technology.


The development in the information technology have had an enormous effect on the development of more user-friendly banking services and increase the transaction and communication speed between banks and customers.


 The revolution of information technology in the banking industry began in the early in1970s, with the introduction of the Automated teller machine(ATM) which was first installed by Barclays bank in the United Kingdom(Uk).


ATM allow customers to deposit money, withdraw cash, request a balance and pay bills at any time. ATM services not only provide convenience for customers, but also decrease operating costs for the bank.


The next technology developed by banks was telephone banking which was firstly introduced by Seattle First National Bank in the United State(US) in the late 1970s. 

Telephone banking is more cost-effective than ordinary branch and the process increases customer convenience as well as expanding access to a wide variety of services for customers. However, electronic banking lacks visual verification and customers cannot perform self-banking services. 



Internet banking emerges in 1990s and was first launched by the Wells Fargo bank in the US. There is a wide agreement that the channel has had a substantial impact on the bank markets. From the view point of the bans, internet banking helps banks to maintain economic growth through reducing the operation and fixed costs updating.


Moreover, when e banking was introducing took steps to Implement e banking services in the mid-1990s, many consumers world-wide were hesitate to conduct monetary transactions over the took a widespread adoption of e banking over the world such as and eBay, before the idea of e banking become practical and adoptable in some of the society.


Electronic banking in Cameroon is fast catching up with the modernizing pace. The adaptation Digital Account Opening, P2P payments, Video Collaboration/ Marketing, Cloud Computing, and Application Programming Interfaces (APIS) is rapidly consuming banks in Cameroon.


Though it is relative new in Cameroon the craze that it has built for the past years in most of the develop countries has made Cameroonians to acquainted with the products as a whole.


 1.2. Problem statement

The use of technology forms the backbone for better results in banking. This is articulated in the HSBC report of 2000, which stated that benefits from technology are more than three time is cost.


Today’s banking situation demands continuous innovation in order to meet the yearnings and aspirations of the ever-demanding customers. Hence banks need to roll out new product and services quickly and effectively, using latest cutting edge technology


In this light, E-banking was adopted by banks so as to improve their services delivery; decongested queues in the banking hall, enable customers withdraw cash 24/7, aid international payment and remittance, track personal banking transaction, request for online statement or even transfer deposits to a third party account.


Despite the effort of banks to ensure that customers reap the benefits of e banking, the bank is met with complaints from customers as regards, to malfunctioning of Automated Teller Machines (ATMs),

Network downtown, online theft and fraud, non-availability of financial service, payment of hidden cost of electronic banking like short message services (SMS) for sending alert, mandatory acquisition of ATM cards, non-acceptability of Cameroonian cards for international transaction amongst others.

At the end of everything the main problem here is: are customers really enjoying these services given the above outlined shortcomings? 


Related to this problem, empirical evidence implies that customers’ patronage for and reaction to a particular product depend on their level of understanding of what the product can do and what they stand to benefit from there. In this connection, it is relevant to find out the customer’s perception on e-banking.


1.3 Research question

  • The main question was what the effect of E banking on customer satisfaction in the banking industry case of Eco bank Buea?

Specific research questions

  • What is the impact of security/privacy on customer satisfaction in in the banking industry case of Ecobank Buea?
  • What is effect access to e-banking services on customer satisfaction in the banking industry case of Ecobank Buea?
  • What are some of the challenges faced by e banking in the banking industry case of Ecobank Buea?


1.4 Objectives of the study

  • The main objective of this study was to investigate the impact of e-banking on customers’ satisfaction in the banking industry case of Ecobank Buea


Specific objectives

  • To examine the impact of security/privacy on customer satisfaction in in the banking industry case of Ecobank Buea.
  • To investigate the effect of access to e-banking services on customer satisfaction in the banking industry case of Ecobank Buea?
  • To find out some of challenges faced by e-banking service

 Check out: Banking and Finance Project Topics with Materials