THE LEVEL OF CUSTOMER SATISFACTION TOWARDS E-BANKING SERVICES OF

BANKS IN DIPOLOG CITY

RRL

I. Definition of E-Banking

Electronic banking or e-banking, often known as online, cyber, and virtual banking, allows
consumers to conduct transactions electronically in the internet to accomplish various
transactions such as account assessment and transaction execution from any location at any time.
Customers can use E-banking to buy and sell goods and services over the internet by transferring
real money. Financial institutions and customers can use Internet banking to access their
accounts, transactions, and information on financial products and services. It offers numerous
services such as online payment, online fund transfer, online stock trading, and online shopping
using an internet platform for various banking transactions. In the banking industry, the use of
the internet as a delivery channel for banking services is on the rise. A strong banking industry is
sometimes referred to as an economy's lifeline. Banks began providing diverse services linked to
cash deposits and cash withdrawals through electronic means as a result of e-banking, which
changed the way clients banked dramatically and quickly. The majority of banking nowadays
takes place while you are sipping coffee or on the phone. ATMs are right outside your door.
Banking services are available around the clock. In your wallet, you have more plastic cards than
money notes. More recently, E-Banking, or the distribution of financial services via electronic
systems, has spread among customers due to rapid improvement in IT and through competition
between banks  All banks strive to have a pleased customer base, thus they devote significant
resources to determining which service quality aspects have a big impact on the E-banking
services they provide.

E-banking services, according to Lustik (2004), are a variety of e-channels for conducting
banking transactions via the Internet, telephone, television, mobile phone, and computer. As
technology evolves and improves, banking consumers' demands and expectations for service are
growing. These days, the customer wants to operate and do his or her banking transactions at any
location without going to the bank, at any time without being limited to the bank’s working
hours, and to do all his or her payments (purchasing, bills, stocks, etc.) in a fast, cost-effective,
and convenient to them.

Many elements influence the expansion of E-banking in a country, including dependability,

efficiency, security and privacy, website design, ease of use, responsiveness, and
communication, among others. This study focuses on E-Banking customer satisfaction and the
impact of service reliability, security and privacy, website design, and responsiveness and
communication on banking clients' views of service quality.
II. Dimensions of the Customer Satisfaction

According to the marketing literature, there is no uniform theoretical path among marketing
researchers for establishing the dimensions and metrics that can be used to measure customer
experience (Zhang et al., 2017). Meanwhile, it appears that the banking industry is the most
active in terms of testing and measuring client experiences, although these projects and opinions
remain divided on the dimensions by which the customer experience may be defined (Bennett &
Molisani, 2020). Regardless of differences of opinion, creating or improving a superior customer
experience in the banking sector is linked to rethinking strategic thinking about customer
expectations (Marous, 2020).

According to Asiyanbi & Ishola (2018), the degree of satisfaction in the banking sector customer
increases when using E-Banking services. They derive an easier formula and conclude that
greater customer satisfaction immensely depends on receiving a better and higher quality service.
In order to be ahead, banks offer an e-banking service strategy to gain a competitive advantage in
providing superior quality in this service delivery platform (Amin, 2016). It is known that if
consumers receive interactive quality services over an e-banking website, they will again re-use
this website and recommend others to use it for availing banking services. As such, banks must
continuously provide quality services to customers. Thus, service quality and customer happiness
are frequently influenced by reliability, responsiveness, website design, and trust, all of which
have a direct impact on a customer's readiness to buy. Similarly, Saccani and Rapaccini (2014)
found that the E-Banking service quality directly linked with reliability features a significant
effect on the degree of customer satisfaction. Within the platform of e-services, consistency in
providing quality services, availability of error-free services, and precision in delivering
promised services influence customers to remain with service providers and a well-timed
transaction processing and a precise billing system are the key success factors of e-banking
which helps to retain customers with this platform (Shankar & Kumari , 2016).

Customer satisfaction and quality are linked (Anouze et al., 2019). E-banking (Sardana &
Singhania, 2018) plays a more important role in the banking industry's development by
increasing client satisfaction levels through reliability and tenability (Al-Zadjali et al., 2015).
Customer satisfaction is critical in all industries, but especially in the service industry (Pooya et
al., 2020; Tseng & Wei, 2020). Customer satisfaction is measured by the number of people who
pay for goods or services and use their services (Ling et al., 2016). Client opinions and
preferences for service quality have a significant impact on the bank's success (Gupta & Bansal,
2012). High-tech electronic banking, business performance, and customer objectives are all
linked to customer satisfaction. When the consumer is satisfied, the business's performance
improves, and the company can grow. Satisfaction is strongly linked to service quality. Because
the benefits of competing services can easily be quantified, online banks must appear to be more
concerned about customer perceptions of online banking services. According to Toor et al.
(2016), "customer satisfaction is the support of the absolute successes of the quality revolution,"
which is mostly dependent on customers' awareness of total service quality (Husnain & Akhtar,
2016).

III. Advantage of E-banking as to Convenience

According to Rezapour & Peykani (2017) and Raviadaran et al. (2019), convenience embodies
the first dimension in measuring the customer experience and the main motive or justification
from which customers base most of their online purchasing transactions. Undoubtedly, Internet
has contributed to removing the barrier of space and time in providing services. Many factors
influence customers' opinions toward using E-services in the banking industry. The ease and
speed with which banking activities can be completed to get services are at the forefront of these
issues (Boshkoska & Sotiroski, 2018). The capacity to access and benefit from E-banking
services at any time during the week, within 24 hours, is referred to as convenience (Khrais,
2017). It is well known that electronic or digital banking services have made unrelenting efforts
to simplify the conduct of financial transactions through the use of artificial intelligence
techniques (Hamakhan, 2020). However, creating a better or entirely new experience does not
stop at not using paper, but also includes a quick and effective response to customer needs and
changes in behavior (Lakshmi, 2020). As a result, banks should try to establish capacities that
allow them to provide consumers with quick services and streamlined procedures when opening
accounts, transferring funds, and making payments through numerous channels (Team, 2015;
Anouze & Alamro, 2020). So, a customer's experience on satisfaction with banking services that
is comfortable in terms of lowering effort and time, as well as removing difficult procedures for
receiving the service, will improve value concepts and inevitably result in a strong preference for
the concerned bank (Feyen et al., 2021).

IV. Challenges in Security and Privacy

Customers can now conduct financial transactions with the press of a button through Internet-
based applications and programs, but the banking industry still faces security and privacy
concerns (Lukic, 2015; Vimala, 2016). Many clients are concerned about their security when
doing financial transactions over the Internet, despite the banking industry's rigorous security
procedures (Oecd, 2020). Previous study has shown that security and privacy concerns are a big
barrier to buying and selling in an open and oversight-weak environment like the Internet
(Abbasi et al., 2017). In this context, reports show that the frequency of hacker, theft, and
privacy breach attacks against a group of global websites has increased in the last few years
(Kesharwani & Bisht, 2012). Despite the advantages that are specific to E-banking services, a
large segment of the population still avoids using these services due to security and privacy
concerns. As a result of the clients' negative emotions, the lack of attention to that dimension
may result in material loss (Salihu et al., 2019). As a result, banks' ability to create an E-banking
environment that prioritizes security and privacy will definitely pave the way for the
development of solid and long-term customer connections (Lallmahamood, 2007; Jain &
Sarupria, 2020).

V. Challenge in Service Recovery

In the sphere of E-services, service recovery is regarded a fundamental feature in the process of
creating a positive customer experience. Particularly after many banks understood that E-services
are no longer a competitive advantage, but rather a requirement that must be met in order to
survive in the digital age. On the other side, banks' efforts to use technology to provide services
contributed to the failure of many of the electronic systems that were implemented (Mathew et
al., 2020). Even though the electronic and digital communities have a high level of efficiency
and accuracy in completing financial transactions, the possibility of an error resulting in service
failure cannot be ruled out. This error may occur as a result of the customer's limited knowledge
in entering information for forms of E-service applications and software on his phone or personal
computer, and in some cases, the error is related to the electronic system approved (Reis et al.,
2018; Zhu et al., 2021). Service failure has negative consequences on customer attitudes and
satisfaction, as well as E-word of mouth (E-WOM) towards the bank (Keramati et al., 2018). As
a result, effective mechanisms for service failure recovery must be adopted, focusing on
addressing possible errors through procedures that are simple and do not drain the customer's
time (Mansori et al., 2014).
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