Abstract

The basic aim of this research is to examine the effect of digital services on customer satisfaction in NFC bank in Buea .The study is guided by 3 specific objective which are to investigate the effect of online banking on customer satisfaction, to assess the effect mobile banking on customer satisfaction, to evaluate the effect of biometric login on customer satisfaction. This study adopted a descriptive research de sign.

The primary data used for this study was obtained directly from respondent customer through the administration of structure questionnaires to NFC bank. The data was analyzed by using the both quantitative and qualitative measures. Result obtain from finding showed that mobile banking and biometric banking has no effect on customer satisfaction of NFC bank in Buea.

These result is in line with the work of Paluku, (2016),Result obtained on mobile banking indicating that a strong and positive correlation exist between biometric banking and customers satisfaction .Meaning that biometric login has an effect on customer satisfaction .The result concluded that digital services had a strong positive effect on customer satisfaction.

The recommendations from this findings is that mobile banking and biometric login should be implemented so as to create customer satisfaction in NFC bank and online since banking was seen to have negative and insignificant effect on customer satisfaction should be avoided in the bank.

CHAPTER ONE

 INTRODUCTION

1.1 Introduction

The study is organized in to five main chapters. The first chapter which is chapter one deal with introductory part which covers the background of the study, statement of problem, objectives of the study, hypotheses of the study, scope of the study, significant of the study and lastly operational definition of terms. Chapter is literature review which is further subdivided in to conceptual literature, theoretical literature and empirical literature. Chapter three is the methodology which captures the research design, area of the study, data collection, population, sampling, sample size, instruments, data analysis and ethical considerations. Chapter four discuss the findings and analysis of data. The last chapter presents summary, conclusion and recommendation drawn from the findings.

1.1 Background of the study

Digital services in banking refers to a bank that operates online and provides its customers the services that were previously available only at a bank branch. It involves the digitalization of all traditional banking products, processes and activities to serve customers through the online channels.

They include all traditional banking services like mobile phones, computers, and compatible smart devices, without the need for a customer’s presence in the bank branch. Globally, the customer satisfaction of an industry depends on how the digital space are well placed. The history of banking is that till the industrial error, banking services were rendered on manual basic characterized by; ledger keepers at back office, cashiers providing front desk service, ledger cards, cash registers among others. This is not only tedious, but also strenuous and slow besides providing inaccurate and unreliable information on a regular basis because of the human error. The limitations of the manual banking highlighted above in most cases results to customer complaints, slowness in service provision long queue and high operational costs etc. These limitations reduce reliability of financial services as regards to accuracy and completeness. Relying to such information results into managers making decisions that leads to cost and administrative problems as evident by the closure of banks like; Co-operative bank, International credit bank and Trans-African bank. This is because manual records had been altered by back staff to defraud it.

The above manual unreliable service provision gave rise to technological means of efficient and fast way of serving customers giving rise in demand of banking services. This saw the emergence and the use of digital services inventions like; telephones banking, internet banking, ATM’s etc. ATMS is the abbreviation of Automated teller machine which acts as a teller in a bank who takes and gives money over the counter.

ATMs are placed only inside of near the premises of the bank, but also locations like shopping centers, airports, groceries stores, gas stations restaurants or any other places where large number of people may gather. Telephone banking also refers to services provided by banks or other financial institutions that enables customers to perform over the phone a range of financial transactions which do not involve cash or financial instruments such as cheques.

Also internet or online banking which allows a user to conduct financial transactions via the internet. It can also be referred to as web banking and provides almost every service traditionally available through a local branch including deposits, transfers, and online bill payments. Virtually every banking institution has some form of online banking, available on desktops and through mobile apps.

Some of these digital services includes cash withdrawals, balance enquiry, bill payments, cash and cheque deposit, savings and on 24 hours basis thus with the appearance of digital services, some limitations have been resolved.

These innovations embraced by the government of Cameroon coupled with the hard work of the players in the financial sector, Commercial bank Cameroon (CBC) licensed by the bank Central Bank of Central African States inclusive has seen an increase in the enrolment of bank ATM and other Digital services as evident by the long queue at most banks and ATM service points all over the country.

1.3 Problem Statement.

The introduction and use of Digital system of banking has received different perceptions. One if the views is that, it may have really created customer satisfaction for bank clients, and the other is that it may have despite all the merits of Digital banking, brought complaints from customers of shortfalls on the use of the system such as; limited knowledge on the use of the systems, long queue at ATM service points, slow mobile connection and breakdowns, fraudulent transactions and its operation in just a few languages.

Some of these challenges can be elaborated below; In terms of security, it is one of the first things that comes into one’s mind when keeping money is mentioned anywhere. It is, however, sad to say that hackers are still giving financial institutions a run for their money. Therefore, some customers are not willing to take any chances

Although many people are embracing digital banking, there is still a good portion of people who don’t trust it. Also, some people are not convinced about digital banking unless they have proof that a bank exists in brick and mortar form. This makes it hard for digital banking to become completely digitized. Many people don’t know it, but most banking systems use COBOL programming language. This has been around for more than 60 years and was not meant to suit the kind of technology that is available today. Upgrading these banking systems and install suitable ones usually takes so much time while the demand for seamless digital banking is on the rise

Several non-financial institutions offer services very similar to what digital banking is expected today. Social media platforms like Facebook, for example, have made it possible for users to send money directly to someone’s bank account. Because they are not restricted by any rules as seen with financial institutions, it is hard for these financial institutions to cope.

To begin with, social media platforms, for example, have a large fan base. For banking to be fully digitized, it means that both the banking system and employees will have to undergo a cultural shift. However, it is good to know that unlike other businesses, banks have a unique way of departmentalization, and this greatly influences the level of technology to be used. While some departments will benefit from a digital banking system, some departments will have to lay off some employees. Also, employee training may be required.

With the demand for digital banking on the high, some banks are desperate to take the leap and adopt digital banking. However, most banks are not quickly adopting digital banking because they don’t know which kind of system will work correctly. Some prefer purchasing such systems because they want to work with a system that has been tested. Others prefer having a system built specifically for them.

Don’t forget that both kinds of systems have their pros and cons. It is therefore against this background that the researcher was prompted to investigate and find out the effect of Digital services on customer satisfaction of commercial banks in Cameroon.

1.4 Research Questions

1.4.1 Main Research Question

What is the effect of Digital services on customer satisfaction of commercial banks in the Buea?

1.4.2 Specific Research Questions

1. To what extent does online banking affect customers’ satisfaction with commercial banks in Buea?
2. How does mobile banking affect customer satisfaction with commercial banks in Buea?
3. What is the effect of biometric login on customer satisfaction of commercial banks in Buea?

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