Abstract:
The main purpose of this study is to investigate E-Banking and its effect on customer satisfaction.
This study was conducted on customers of CBE, DB, AIB, UB, and BOA under Arba Minch city
branches In connection to this, structured questionnaire have been distributed to 100 selected
samples but analysis was made based on the data collected from 98 respondents. Analysis and
interpretation of the data was conducted by using descriptive and inferential statistical tools with
the help of SPSS. According to the regression output the fulfillment and system availability were
negatively related and statistically significant with customer satisfaction. Efficiency,
compensation and contact were positively related to customer satisfaction and statistically
significant. And responsiveness statistically insignificant and has no contribution to customer
satisfaction. All of these seven independent variables make 83.6% of the contributions for
customer satisfaction in the Private and public commercial banks under Arba Minch city
branches. The commercial banks should understand that the contributions of these variables are
collectively significant to enhance and add values for customer satisfaction in their bank. In
addition to this, the study identified challenges for the growth of e-Banking system. This were;
poor telecommunication infrastructure, lack of regulatory framework, lack of technical support,
lack of well-trained personnel, fear of cybercrime and security issue, frequent power interruption
were the main challenge for the growth of E-banking system.
