EFFECT OF MOBILE BANKING STRATEGY ON CUSTOMER SATISFACTION: A CASE OF COMMERCIAL BANKS IN ONGATA RONGAI
Abstract
The study sought to establish the effects of mobile banking as a strategy for customer satisfaction in commercial banks at Ongata Rongai Kenya. The study was guided by two specific objectives: to establish how convenience of mobile banking influences customer satisfaction on commercial banks in Ongata Rongai and to ascertain the extent to which cost effectiveness of mobile banking influences customer satisfaction on commercial banks in Ongata Rongai. The study adopted a descriptive research design. The population of the research consisted of the all customers from the commercial banks in Ongata Rongai. A sample size of 150 customers were selected through simple random sampling. The study used primary data. The data was collected through the use of structured questionnaires. Statistical Package for Social Sciences (SPSS) was used in the analysis of data and results were presented on frequency tables to show how the responses for the various variables and indicators posed to the respondents. The data was analyzed by use of descriptive and inferential statistics. Descriptive statistics produced frequencies, trends, means and percentages while inferential statistics produced regression and correlation results which showed the relationship among the variables. The study findings indicated that mobile banking had an influence on customer satisfaction. Banking through the internet and mobile devices has emerged as a strategic resource for achieving higher efficiency, control of operations and reduction of cost by replacing paper based and labor intensive methods with automated processes thus leading to higher productivity, profitability and customer satisfaction. The study concludes that there has been tremendous increase in the online banking uptake in commercial banks in Kenya given that majority of the respondents had used mobile or online banking. This increase in mobile banking incomes may be as a result of increased innovations and increased use of mobile phones among customers which further has increased customer satisfaction. The study recommends banks to continue embracing innovativeness since innovation is highly critical for the banks survival and sustainability. There is need for banks to invest in state of the art technology and regular training of their staff to enhance employee skills. The bank should constantly find out customer requirements and conduct benchmarking on best practice.
Key Words: Convenience, Cost Effectiveness, Mobile Banking, Customer Satisfaction
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DOI: http://dx.doi.org/10.61426/sjbcm.v3i4.347
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