Factors effecting customer satisfaction of mobile banking in Bangladesh: a study on young users' perspective

Abstract

PurposeIn Bangladesh, the banking companies have huge opportunity to capture market share by properly understanding the critical aspect of customer satisfaction. This paper mainly focuses on young generation as target group to find out their differential perception. This study aims to identify most influencing factors and determine their influencing power on young customer's satisfaction and retention in mobile banking.Design/methodology/approachIt is a quantitative research with self-administered questionnaire as primary data collection instrument. Existing literature and published articles are reviewed as secondary data for hypothesis development. Out of 300 questionnaires, 279 usable questionnaires were returned and these collected data were analyzed by partial least square-structural equation model (PLS-SEM) with the use of Smart_PLS (V 327) to validate the model and test the hypothesis.FindingsThe findings of the research revealed that expense, responsiveness and relative advantage have significant influence while security and convenience have insignificant influence on satisfaction. But they are not directly related with loyalty although satisfaction and loyalty strongly related with each other.Originality/valueAlthough mobile banking is not a new issue in Bangladesh, the use of PLS_SEM to measure young user's satisfaction as the customer of mobile banking is not available in literature. So, this paper is an attempt to fill up this gap. In spite of having some limitation the research provides some practical implication for banks with better strategic insight to design mobile banking services to yield higher customer satisfaction.

Customer Satisfaction and Intention to Use Mobile Financial Services: A Systematic Literature Review

“…Sagib and Zapan (2014) has measured relationship between service quality and customer satisfaction and loyalty in Bangladeshi context and found that reliability and responsiveness, efficiency and convenience have a positive influence on satisfaction. In another study also conducted in Bangladesh context, Jahan and Shahria (2021) reveals that expense, responsiveness and relative advantage have significant influence while security and convenience have insignificant influence on satisfaction. No specific research model or theory employed in their study.…”

“…The International Journal of Bank Marketing placed first with four (04) articles, International Journal of Information Management, Journal of Business Research, and South Asian Journal of Marketing with two (02) articles each, and the rest 48 journals with a single article each. (Alkhazaleh & Haddad, 2021;Boujaddaine & Taqi, 2021;Geebren et al, 2021;Hidayat-ur-Rehman et al, 2021;Himel et al, 2021;Jahan & Shahria, 2021;Lan & Giang, 2021;Metlo et al, 2021;Naruetharadhol et al, 2021;Rabaa'i & AlMaati, 2021;Soekarno et al, 2021) 2020 16 (Adjei et al, 2020;Akhter et al, 2020;Alonso-Dos-Santos et al, 2020;Asnakew, 2020;De Leon et al, 2020;Hassan & Wood, 2020;Khan & Chaipoopirutana, 2020;Le et al, 2020;H. Lee et al, 2020;Omigie et al, 2020;Ryu & Ko, 2020;Saadilah et al, 2020;Samsudeen et al, 2020;Singh & Srivastava, 2020;Tun, 2020aTun, , 2020b 2019 9 (Alwi et al, 2019;Baabdullah et al, 2019;Bhuvana & Vasantha, 2019;De Leon, 2019;Foroughi et al, 2019;Lim et al, Kim et al, 2019;Poromatikul et al, 2019;Sharma, 2019…”

“…During the study period from 2010 to 2022 only 13 studies were conducted with a view to measuring the customer satisfaction of mobile financial service and/or mobile banking services. The majority of the study were conducted in developing countries (Al-Zubi & Al-Gasawneh, 2022;Alkhazaleh & Haddad, 2021;Alwi et al, 2019;Jahan & Shahria, 2021;Metlo et al, 2021;Saadilah et al, 2020;Sagib & Zapan, 2014) and a very few studies from developed regions (Al-Otaibi et al, 2018;Baabdullah et al, 2019;Sampaio et al, 2017). The theory or model used in measuring the customer satisfaction were D&M IS Success Model (Al-Otaibi et al, 2018;Baabdullah et al, 2019;Geebren et al, 2021;Saadilah et al, 2020); SSTQUAL (De Leon et al, 2020); and ACSI (Boujaddaine & Taqi, 2021).…”

The Impact Of Customer Satisfaction On Customer Loyalty Of BCA Mobile Banking

“…In mobile banking services, the responsiveness factor is very important because if the system is able to provide the services needed by customers and assistance appropriately and quickly, the customer will reach the point of satisfaction (Aldiabat et al, 2019). Previous research conducted by (Jahan, 2021) found that responsiveness is the most powerful factor to have a significant impact on customer satisfaction.…”

Identifying key determinants of e-banking during COVID-19 in Bangladesh – Case Study on Chattogram city

“…As a result, according to the Bangladesh Bank 2020-2021 annual report, the percentage of total branches online was 88.45 before the pandemic (during June 2019), and that increased to 95.48 percent at the end of 2021. Few studies in Bangladesh have investigated the e-banking aspects that contributed to customer satisfaction during the pandemic (Sarker et al, 2020;Jahan & Shahria, 2022). Islam and Imran (2020) found that perceived utility, social impact, and perceived enjoyment were all significant predictors of the propensity to use online banking services in Bangladesh.…”