An Empirical Investigation on the Effect of Digital Banking on Customer Satisfaction: A Case of Absa Mutaba Branch-Lusaka

Abstract

This study examined how digital banking affects customer satisfaction at Absa Bank's Mutaba Branch in Lusaka, Zambia. Even though the bank has been promoting digital options, many customers haven't switched over. The researchers surveyed 150 customers to find out how much they knew about digital banking, how often they used it, and how happy they were with the bank's current services. Almost all the customers (99.1%) were aware of the bank's digital channels, but the most popular service was mobile money (58.3%). While a good portion of the customers (43.9%) expressed satisfaction with the overall service, some were worried about security, how long it takes to resolve complaints, and the lack of face-to-face interaction. The study concludes that these concerns are causing customers to be unhappy with the bank's emphasis on digital banking. However, the customers also recognize that digital banking could improve their experience. To address this, the researchers recommend that the bank provide more education about digital banking and its benefits, improve security and complaint response times, and maintain a physical branch location for customers who are not comfortable with digital banking or prefer in-person service. This study helps us understand how customers behave when adopting digital banking and highlights the importance of addressing their concerns while promoting these new technologies.