Effect of Internet Banking on Service Quality among Commercial Bank Customers: Evidence from Rwanda

International Journal of Research and Innovation in Social Science (IJRISS) | Volume V, Issue VIII, August 2021 | ISSN 2454–6186

Effect of Internet Banking on Service Quality among Commercial Bank Customers: Evidence from Rwanda

Annet Murerwa¹, Thomas K Tarus^2
1Masters student, Graduate School. University of Kigali-Rwanda
²Lecturer, Graduate School, University of Kigali-Rwanda

Abstract: With the development of information technology, customers increasingly expect higher services in this information era. Despite the upsurge in internet banking users, the customer acceptance of internet banking has not yet reached the expected levels. The general objective of the study was to examine the effect of internet banking on quality service. The study was guided by Technology Acceptance Model. Explanatory research design was adopted while the study sample size was 149 customers. The study utilized questionnaire as a data collection instrument and analyzed using inferential statistics. The results revealed that internet banking had a positive and significant effect on quality services (β= 0.286, p<0.05). Thus, the study concluded that the predictor variable enhance service quality in the organization offered to their customers. The research added new knowledge on how internet banking to the service quality and also forms a foundation for further research. The study suggests that banks need to adopt electronic systems in all their banking systems and services that are involved in the economy.

Keywords: Customers, Electronic Banking, Internet Banking, Service Quality and Technology Acceptance Model.

I. INTRODUCTION

The technological innovation of electronic channel of service delivery has brought in a level playing field for businesses by eliminating geographical, regulatory, and industrial barriers (Zafar et al., 2021). Banking services are important in human being’s life. Of late, banks have been undergoing operational difficulties owing to the ever changing technology and expectations of the bank customers. As a result, to provide efficient customer services, banks have used technology as a tool to deliver financial services. The competitions are increasing in the banking sectors and customer expectations towards banking services have also increased. In the dynamically changing banking sector, product variation is difficult as most banks offer similar services. Hence, it becomes essential for the banks to differ from other banks by means of service quality (Stamenkov and Dika, 2015) to enhance customer fulfillment. Prior studies found that almost all the banks in India use internet banking as a delivery channel and strategic tool for business development (Safeena et al., 2013). Prior studies have found the benefits of net banking usage and highlighted that internet banking service is beneficial for banking sectors and customers (Vetrivel et al., 2020).

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