Customer satisfaction towards e-banking services offered by NEPAL SBI Bank LTD

A Case Study of Nepalese Commercial Bank

Research Paper (postgraduate), 2019

16 Pages, Grade: A


Table of Contents

1.1 Context Information
1.2 Statement of Problem
1.3 Objectives of the study
1.4 Limitations of the study
1.5 Theoretical framework

2.1 Research Design
2.2 Population and Sample size
2.3 Data collection procedure
2.4 Methods of Data analysis

3.1 Respondent’s Profile
3.2 Data Presentation and Analysis
3.2.1 Customers satisfaction towards e-banking products (EBP)
3.2.2 Customer satisfaction towards Website Design (WD)
3.2.3 Customer satisfaction towards Security and Privacy (SP)
3.2.4 Customer satisfaction towards Perceived ease of use (PEU)
3.2.5 Customer satisfaction towards their computer self-efficacy (CSE)
3.2.5 Customer satisfaction towards Perceived cost/charge (PC)
3.2.6 Customer satisfaction towards Response of bank (Responsiveness) – (R)
3.2.7 Customer satisfaction level (CS)
3.2.8 Average Mean and CV analysis of Level of Customer Satisfaction towards e-banking services of Nepal SBI Bank Ltd. (NSBL)

5.2 Action Implications:
5.3 Practical Implications
5.4 Research Implications



When we talk about the banking sector, what matters the most are the customers and so what they perceive about the bank and their services itself becomes key to its growth.

This study aims to analyze the level of satisfaction of customer, their agreeableness towards e-banking services offered by Nepal SBI bank. In this study, 75 respondents from the bank were taken. After analyzing the results of the questionnaire, the researcher concludes that the customer using e-banking services are satisfied in terms of the e-banking products, perceived ease of use, website design, security and privacy, perceived cost, responsiveness, computer self-efficacy. However, during analysis the researcher came to know that still a lot of customers especially adult citizen of SBI bank are not aware about the e-banking services. Hence, major steps should be taken to make them aware about various e-banking channels through publicity and advertisement. The bank should educate the customer about the usage of e-banking services and also about their advantages.

Keywords: e-banking services, customer satisfaction

Paper Type: Research Paper


1.1 Context Information

Electronic banking (e-banking) is defined as the automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels. E-banking includes the systems that enable financial institution, customers, individuals or businesses, to access accounts, transact business, or obtain information on financial products and services through a public or private network, including the Internet. E-Banking is also called Internet banking, on-line banking or PC banking. E-banking includes ATMs, wire transfers, telephone banking, electronic funds transfers and mobile transfer using various banking apps and credit cards. Nowadays, internet banking sites process customer service inquiries, allow transactions from one account to another, take loan applications, open new accounts etc. In addition to the rapid use of electronic bank branches an entire financial community has suddenly offering most and financial service. As customers are visiting banks, more and more are using ATMs, home banking terminals and the internet to do their financial business. It is supported by speed of telecommunications, powerful, inexpensive computers and secured encryption. This charge to the internet is increasing the number of competitors in the market. Technology has introduced new ways of delivering banking to the customer, such as ATMs and internet banking.

Banks have traditionally been in the forefront of harnessing technology to improve their products, services and efficiency. They have, over a long time, been using electronic and telecommunication networks for delivering a wide range of value added products and services. The delivery channels include direct dial – up connections, private networks, public networks etc and the devices include telephone, Personal Computers including the Automated Teller Machines, etc. With the popularity of PCs, easy access to Internet and World Wide Web (WWW), Internet is increasingly used by banks as a channel for receiving instructions and delivering their products and services to their customers. This form of banking is generally referred to as Internet Banking. The tremendous advances in technology and aggressive use of information technology has brought paradigm shift in banking operations. The banking technology has emerged as a strategic resource for achieving higher efficiency, control of operations, productivity and profitability. For customers, it is the realization of their anywhere and anytime banking dream. This has promoted the banks to embrace the technology to meet the increasing customer expectation. Today, banks are already loosing enormous amounts through cheques and credit card fraud. The security solutions of the future are the major concern for banks. If customers distrust the security it may create multiple problems. Banks will find it hard to launch Internet banking services if demand is low because of security doubts. Though the banks themselves believe that the security levels for bank transactions over the internet are sufficient, they also believe that their customers distrust existing security solutions, primarily because they are software based.

SBI began to look at e-banking as a means to replace some of their traditional bank functions. This study involves the study of Nepal SBI bank. This research study considers two main factors: electronic banking and customer satisfaction. The paper includes an analysis of customers’ awareness towards e-banking services, the quality of e-banking services provided by the SBI and the hurdles in achieving customer satisfaction. Here we can assume independent variable as electronic banking and the dependent variable as customer satisfaction. It is presumed that e-banking preference is affected by factors such as occupation type and age group and these factors are considered important to and are linked to e-banking to determine whether they really do have an impact on e-banking (Babu, June 10, 2017).

1.2 Statement of Problem

The research studies the current level of satisfaction toward e-banking services among the customers of Nepal SBI bank. In traditional banking, the customer has to visit the branch of the bank in person to perform the basic banking operation, viz. account enquiry, fund transfer, cash withdrawals etc. but in E-banking enables customers to perform the basic banking transactions by sitting at their office or home through viewing their account details and perform the transaction through PC, laptops or mobile phones. Unfortunately, most of the customers’ are unaware about e-banking facility. It is due to lack of e-literacy/ lack of knowledge about e-banking. Only few percentages of total customers of Nepal SBI bank use online banking. Likewise, the online banking users are also not confident about the security due to the hackers who hack the banks websites. Among the different problem regarding customer satisfaction are as follow:

- What benefits do customers derive from using e-banking services of Nepal SBI bank?
- Which application of e-banking is mostly preferred by customer?
- What are the major problems of customers while dealing with online banking services?
- Which factor influences the customer satisfaction towards e-banking?

1.3 Objectives of the study

Every research has its own purpose or objective. It is the main aim why the research is being conducted. It reflects the mission of the study that is going to take place. Like every other study, my research work also consists of certain objective. The main objective of the study is to identify the level of customer satisfaction regarding e-banking services of Nepal SBI bank. The other objectives of the study are:

- To know which factor influences customer satisfaction toward e-banking.
- To identify most widely used application of e-banking and reasons for preferring online banking.
- To analyze the problems faced by customer while dealing with online banking services.
- To give feedback and suggestions to improve the service quality of online banking in future.

1.4 Limitations of the study

The limitations of the study are listed below:

- The study is based on primary data also but the respondent chosen are limited and random.
- Some of the respondents were hesitating to provide us true information so, it was difficult to communicate with them.
- Very limited secondary data are found in this topic and mostly based on primary data.

1.5 Theoretical framework

According to (Reeti, 2009), the study frame the relationship between independent factors/variables and customer satisfaction in the Internet Banking. These variables were a refined according to the needs and demands of the banking sector to suit its usage in the study. They are:

- Website Design: It is the degree of ease of navigating through and using the website, website is the site of bank that compensates the customers for problems.
- Perceived cost: Perceived financial cost is the extent to which a person believes that using mobile banking would be costlier. The cost has been found as a major barrier of adoption. The cost incurred includes initial purchase price, equipment cost, subscription charges and transaction cost.
- Security and Privacy: Privacy includes providing security regarding their personal information, data should not be shared and credit card information should be kept secure.
- Perceived ease of use: It is the degree to which a person believes that using a particular system would be free of effort.
- Computer self-efficacy: It refers to one’s perception of his or her ability to use a computer. If the customer believes that they have the required knowledge, skill or ability to operate mobile banking, then there is a higher chance to attempt the service.
- Responsiveness: It refers to effective handling of problems and returns through the site. It is an availability of assistance through telephone or online representatives.

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Methodology refers the steps that will be adopted in this study. The more systematic method gives the more actual results for the study. The method for this study includes research plan and design, description of sample, data collection procedure and data analysis plan. This part also describes various tools that will come handy while doing the study and sample size and population size of study. The methodology used for this research is listed below:

2.1 Research Design

Descriptive research includes surveys and fact-finding enquires of different kinds. The major purpose of descriptive research is description of the state of affairs as it exists at present. The descriptive research design is selected for the study to learn the profile of the respondents, presentation and description of data collection, and describe the customers satisfaction towards e-banking services offered by Nepal SBI bank.

2.2 Population and Sample size

All the individuals of Nepal who are the customer of Nepal SBI bank using e-banking services are taken as the population of the study. Non-probability sampling method has been used to select the sample. The sample selected for the study is on the basis of judgmental and convenience sampling. The method of judgmental sampling has been employed in choosing the samples from banks' customers for primary data collection. Those units or individuals are selected as samples who are the customer of any bank inside Kathmandu. And furthermore, convenience sampling method has been used while selecting the samples. Those individuals are selected as samples, who are interested to participate, nearby, free, have relationship with researcher etc. Samples of the study are not predetermined and pre- informed. Data are collected from the samples by approaching the employees of various organizations and asking them to give their responses.

To collect the data 75 respondents were selected. The researcher has used convenience sampling because the users of e-banking services of one specific bank are difficult to find.

2.3 Data collection procedure

The study is primarily based only on primary sources of data. A survey questionnaire was designed to generate the primary data. A structured questionnaire was developed and distributed to 75 sample respondents who are the customer of Nepal SBI bank. The customers were randomly selected. Likert scale questions and ranking questions were asked in the questionnaire.


Excerpt out of 16 pages


Customer satisfaction towards e-banking services offered by NEPAL SBI Bank LTD
A Case Study of Nepalese Commercial Bank
School of Commerce and Management
Catalog Number
ISBN (eBook)
ISBN (Book)
Authors comment: E-banking is taking a gradual development and will be meeting the targets in the days to come soon.
E-banking, Customer Satisfaction
Quote paper
Sanjeev Pradhan (Author), 2019, Customer satisfaction towards e-banking services offered by NEPAL SBI Bank LTD, Munich, GRIN Verlag,


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