THE IMPACT OF INTERNET BANKING SERVICE QUALITY

ON CUSTOMER SATISFACTION

(A case study of Barclays and UBL banks from 2008-2010)

GULMEENA KAKARMBA- 0910-18SUPERVISED BY: MISS SHABINA SHEIKH

CONTENTS

Introduction Purpose of the research Problem definition Research question Scope of study Objectives

CONT:

Hypotheses Research design Research methodology Questionnaire instrument Analysis of research Tentative schedule of study References

INTRODUCTION:

Online banking is an Internet based service enabling people to do financial transactions, account management, and so on.

Internet banking has made it possible for customers to conduct their banking transactions anytime and anywhere, as well as faster as compared to traditional services offered by banks.

Online banking has been regarded as the most important way to reduce cost and maintain or enhance services for consumers.

CONT: Mols (2000) contends that internet banking may

bring a dramatic transformation in the way banks build and maintain close relationships with customers .

In surveying consumers’ adoption of internet banking, Sathye (1999) found that 70% of customers expressed their concerns on security.

Sathye (1999) found that lack of awareness and benefits of internet banking were standing out the major barriers to the adoption and satisfaction of internet banking.

CONT:

o Internet banking is beneficial both for banks and users.

o Online banking is time saving (Qureshi et al, 2008).

o Pakistan has been among the late entrants into e-banking. The first ATM switch was setup in 1999 and in 2000 Internet Banking was introduced (Ahmed, 2006).

PURPOSE OF THE RESEARCH :

The purpose of this research is to provide a better understanding on how internet

banking is evolving in Pakistan.

PROBLEM DEFINITION

RESEARCH QUESTION:

What are the service quality dimensions in internet banking and how do they affect customer satisfaction?

SCOPE:

A sample of 800 customers is randomly selected from Barclays and UBL banks as follows:

No. of customers

BARCLAYS UBL

Users of internet banking

100 100

Non users of internet banking

200 400

Total no. 300 500

OBJECTIVES:

To assess the level of awareness of internet banking among customers of UBL and Barclays bank

To assess the level of customer satisfaction with internet banking service quality in Pakistan taking the customers of Barclays and UBL banks into account.

To determine the most salient internet banking service quality dimensions which have the greatest impact on customer’s satisfaction.

To explore the ways of increasing customer satisfaction level with internet banking.

HYPOTHESES:

H1: Awareness about IB has a positive effect on intention to use IB

H2:Good service quality has a positive effect on customer satisfaction with internet banking

H3: Security is the most considerable factor that affects the satisfaction level.

RESEARCH DESIGN

Research Question & Problem

Select Scope

Design Study Questionnaire

Gather Data

analyze DataFindings

review

RESEARCH METHODOLOGY:

QUESTIONNAIRE INSTRUMENT

Parameters & Variables for Questionnaire are: Parameters: customer adoption and

customer satisfation

Variables: Customer adoption of internet banking Customer satisfaction with internet banking Customer satisfaction related to service quality

ANALYSIS OF RESEARCH:

Secondary SourcePrimary Source

Tertiary Source

Quantitative dataQualitative

Data

Interval scale

Descriptive statistics

InferentialStatistics

Data

CONT:

Descriptive statistics (mean, variance, standard deviation) is used for summarizing the data.

Inferential statistics(t-testing) is used for proving and disproving hypotheses.

TENTATIVE SCHEDULE:

Literature Review

Design Questionnaire

Gather Data &

literature Review

Analyze data

Report Writing

1 3 7 11months

5 9

REFERENCES Sathye, M., 1999, “Adoption of Internet banking by

Australian consumers: an empirical investigation”, International Journal of Bank Marketing, Vol. 17 No. 7, pp. 324-334.

Shih, H., 2003, “An empirical study on predicting user acceptance of e-shopping on the web”, Information & Management, Vol. 41, pp. 351-368.

Mols n.p. (2000) “the internet and banks strategic distriution channel decisions”, international journal of bank marketing, vol:17, no.6 pp.295-300

Ahmed, A. (2006), “Policies & Regulations for Expanding e-banking to the Poor”, The First Micro Finance Bank Ltd, 24 (1), pp. 1-8.

Jayawardhena, C. and Foley, P. (2000), “Changes in the banking sector: the case of Internet banking in the UK”, Internet Research: Electronic Networking Applications and Policy, Vol. 10 No. 1,pp. 19-30.

CONT: http://www.barclays.pk/internetbanking/index.html http://en.wikipedia.org/wiki/Online_banking http://www.transactmoney.com/transaction-articles/internet-

banking-services.htm https://www.ubl.com.pk/services/net_banking/ http://www.buzzle.com/articles/internet-banking-

problems.html

THANK YOU VERY MUCH

QUESTIONS ARE REQUESTED!!!