AN INVESTIGATION OF THE RELATIONSHIP BETWEEN DIGITAL BANKING AND CUSTOMER SATISFACTION IN SERVICE INDUSTRY IN CAMEROON

CHAPTER ONE

INTRODUCTION

Background of the Study

 The introduction of digital banking into the Cameroonian service industry over the past decade has diversified and revolutionized the sector by offering consumers various choices for accessing banking services. Consequently, digital banking has enhanced customer satisfaction by transforming the consumption patterns of bank users through the adoption of mobile banking applications, phone banking, and other internet-based banking services (Gomachab & Maseke, 2018). Since customer service is a two-way process, the use of digital banking in Cameroonian service sector has also improved the level of feedback received from users, thereby enhancing the overall customer experience. More importantly, digital banking has reduced the level of human interaction in banking operations, thus saving time and money for consumers. Due to the competitive nature of modern-day banking, customer satisfaction has become more crucial than ever, with various organizations pushing the frontiers of service delivery to stay ahead of the competition (Rahimi & Kozak, 2017). In the Cameroon, for instance, customer satisfaction has garnered significant attention recently due to the fierce competition observed among service industries over the past decade. Furthermore, various organizations in Cameroon have engaged in introducing multiple digital banking resources to improve the delivery of services, thereby enhancing the customer experience for their clients. Moreover, most organizations in  Cameroon have prioritized customer satisfaction to the extent that it has become a major corporate objective, which they strive to achieve through their customer service departments (Farayibi, 2016). Additionally, in the majority of customer satisfaction literature, satisfaction has been measured based on the suitability of a banking service or product and its ability to meet customer needs (Zameer et al., 2018). Olorunniwo et al. (2016) also indicate that customer satisfaction can be measured using customers’ perceptions of service efficiency, value, and convenience. Typically, customers can be satisfied by the quality and reliability of a product or service delivered through the existing delivery channels adopted by the organization (Oliver, 2019). Implicitly, customer service departments have become the channels through which these products and services are delivered and monitored. However, this enables organizations to determine the satisfaction levels of their clients through the various feedback received (Oliver, 2019). Furthermore, the competitive nature of organizations in the service sector of Cameroon, as indicated above, has necessitated the need for them to continuously monitor their product and service delivery channels to ensure customer satisfaction. However,  a recent customer service survey, Helmrich (2017) indicates that customers play a major role in building business reputation. Therefore, it is crucial for organization to demonstrate awareness and address customer concerns appropriately through the use of digital banking. By doing so, there is also a tendency to attract prospective customers through reviews from existing customers (Nunan et al., 2018). Several other authors in the field of digital banking argue that digital banking can focus employees’ customer-focused engagement behavior efforts and capabilities on delivering quality service that enhances customer satisfaction (Setia et al., 2018; Trainor et al., 2019). Thus, digital banking, which includes the use of social media, mobile applications, and company review websites, can influence the relationship between employees’ customer-focused engagement behavior and customer satisfaction in the service industry (Trainor et al., 2019). Therefore, a survey will be conducted in order to investigate the relationship between digital banking and customer satisfaction in service industry in Cameroon.

1.2 Statement of the Problem

Digital modernization is giving the traditional service industry a second chance to deepen customer satisfaction and loyalty, driving long-term relationships and profitability. This approach also embraces the potential to meet consumers’ expectations and bring the service experience back to the forefront. How customers perceive their service providers, the quality of services they receive, and whether these providers deliver on their promises is a matter worth examining. Digital service channels improve customers’ access, facilitate the offering of more services, increase customer loyalty, attract new customers, provide services comparable to those offered by competitors, and reduce customer attrition. Customer satisfaction in the service industry remains a challenge in many parts of the world, and Cameroon is no exception. Hence, it is in the light of these that the study seeks to investigate the relationship between digital banking and customer satisfaction in service industry in Cameroon.

 1.3  Objectives of the Study

The main purpose of this study is to investigate the relationship between digital banking and customer satisfaction in service industry in Cameroon.Specifically, the study will;

1.Identify the digital banking services adopted by service industry in Cameroon.

2.Assess the impact of digital banking on customer engagement and loyalty in the service industry

3.Investigate how digital banking services have improved the customer experience in the service industry

1.4  Research Questions

The following questions have been prepared for the study:

What digital banking services have been adopted by the service industry in Cameroon?

What is the impact of digital banking on customer engagement and loyalty in the service industry in Cameroon?

How have digital banking services improved the customer experience in the service industry in Cameroon?

1.5 Research Hypotheses

H0: There is no significant relationship between digital banking and customer satisfaction in service industry in Cameroon.

Ha: There is a significant relationship between digital banking and customer satisfaction in service industry in Cameroon.

1.6 Significance of the Study

The results of this study will offer valuable insight for regulations guiding digital banking, ensuring that they promote innovation while effectively addressing dangers such as cybersecurity threats and financial crime. Furthermore, the study will aid bank management in formulating suitable training initiatives and support structures to facilitate workers' adjustment to the digital revolution. Ensuring that personnel are adequately trained to effectively manage and run digital banking services in order to ensure optimal performance and service quality. Moreover, subsequent researchers will use it as a literature review. This means that other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard to the relationship between digital banking and customer satisfaction in service industry in Cameroon.

1.6 Scope of the study   

The scope of this study is boarded on the relationship between digital banking and customer satisfaction in service industry in Cameroon. Empirically, this study will identify the digital banking services adopted by service industry, assess the impact of digital banking on customer engagement and loyalty in the service industry and investigate how digital banking services have improved the customer experience in the service industry

Geographically, the study will be delimited to service industry in Yaoundé , Cameroon.

1.7 Limitation of the study

In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed. More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.

 1.9 Definition of Terms

Digital banking services: encompass various electronic methods used by customers to conduct banking transactions. 

Mobile Banking: a mobile app to perform banking transactions.

Customer satisfaction: the degree to which a company's products or services meet or exceed the expectations of its customers.