Evaluating Service Quality of Digital Banking and Its Impact on Customer Satisfaction in Eastern Province of Sri Lanka

Abstract

Aims of the study are to examine how service quality of digital banking influence on customer satisfaction of commercial banks in Eastern Province and to examine whether service quality and customer satisfaction of digital banking of commercial banks varies with demographic factors of the users in the province. The research was conducted with positivist research philosophy stands using deductive approach by quantitative method for collecting and analysing data to gain novel insights. Primary data were gathered through questionnaire from 378 digital banking users in the province. Descriptive statistics, correlation, multiple regression, independent sample t test and oneway ANOVA are used to analyse the data. Results of the study reveals that digital banking service quality and customer satisfaction are higher level. Efficiency and privacy of digital banking services are highly contributed to have higher level of service quality whereas compensation is moderate level. Usefulness and Timeliness are highly contributed to the higher degree of customer satisfaction. It is found that digital banking service quality dimensions namely efficiency, responsiveness, fulfilment, privacy and system availability are positively influenced on customer satisfaction while compensation is not significantly influenced on customer satisfaction. Moreover, the service quality as well as customer satisfaction of digital banking are significantly differed among the groups of monthly income and educational qualification. However, the service quality and customer satisfaction of digital banking are not significantly varied within the categories of gender, age and living district. It is concluded that service quality of digital banking offered by the commercial banks influence on customer satisfaction towards digital banking in the province. Findings are vital to policy makers and management of banks to deliver better digital banking quality services.