Impact of Electronic Banking on Customer Satisfaction

The rapid changes in business operations in contemporary times in the form of technological improvement require banks in Nigeria to serve their customers electronically. Traditionally, banks have been in the forefront of harnessing technology to improve their products and services. The banking industry and its environment in the 21st century is highly complex and competitive and therefore the need for information and communication technology to take center stage in the operations of banks. Electronic banking is critical in the transformation drive of banks in areas such as products and services and how they are delivered to customers. Thus, it is seen as a valuable and powerful tool in the development, growth, promotion of innovation and enhancing competitiveness of banks. Given the significant role of electronic banking in the developmental drive of banks, information technology has been found to lead to improvement in business efficiency and service quality and hence attract customers as well as retain them.


INTRODUCTION
The rapid changes in business operations in contemporary times in the form of technological improvement require banks in Nigeria to serve their customers electronically. Traditionally, banks have been in the forefront of harnessing technology to improve their products and services. The banking industry and its environment in the 21st century is highly complex and competitive and therefore the need for information and communication technology to take center stage in the operations of banks [1]. Electronic banking is critical in the transformation drive of banks in areas such as products and services and how they are delivered to customers. Thus, it is seen as a valuable and powerful tool in the development, growth, promotion of innovation and enhancing competitiveness of banks [2]; [3]. Given the significant role of electronic banking in the developmental drive of banks, information technology has been found to lead to improvement in business efficiency and service quality and hence attract customers as well as retain them [4]. According to [5], Electronic banking contributes significantly to the distribution channels of banks such as automated teller machine (ATM), Phonebanking, Tele-banking, PC-banking and now internet banking [6]. In addition, transfer of funds, viewing and checking savings account balances, paying mortgages, paying bills and purchasing financial instruments and certificates of deposits processes have improved significantly as a result of internet banking [7]. This implies that, Electronic banking has resulted in efficiency in service delivery in the banking sector because customers can transact business from one side of the country to another and from both long and short distance. Other scholars argued that, electronic banking has transformed traditional banking practices to the extent that it has been found to create a paradigm shift in marketing practices resulting in positive performance in the banking sector [8]; [9]. This shows that the delivery of efficient and quality service is facilitated by information technology. Similarly, [10] indicated that electronic banking provides an important channel to sell products and services of banks and is perceived to be a necessity for banks to be successful.
Therefore, service quality and efficiency in the banking industry has increased tremendously worldwide in the world due to the integration of information technology into banking operation. The present study seeks to investigate the extent to which the electronic banking concept has impacted on customer satisfaction in Commercial Banks.
LITERATURE REVIEW This chapter gives an insight into various studies conducted by outstanding researchers, as well as explained terminologies with regards to impact of electronic banking on customer satisfaction. The chapter also gives a resume of the history and present status of the problem delineated by a concise review of previous studies into closely related problems.

Theoretical Framework
There are a number of theories surrounding the satisfaction and service paradigm. Many theories have been used to understand the process through which customers form satisfaction judgments. The theories can be broadly classified under three groups: Expectancy disconfirmation, Equity, and Attribution. The expectancy disconfirmation theory suggests that consumers form satisfaction judgments by evaluating actual product/service. Four psychological theories were identified by Anderson that can be used to explain the impact of expectancy or satisfaction: Assimilation, Contrast, Generalized Negativity, and Assimilation-Contrast.3Some of the theories are discussed in this chapter.

Assimilation Theory
Assimilation theory is based on [11] dissonance theory. Dissonance theory posits that consumers make some kind of cognitive comparison between expectations about the product and the perceived product performance. This view of the consumer post-usage evaluation was introduced into the satisfaction literature in the form of assimilation theory. According to [12], consumers seek to avoid dissonance by adjusting perceptions about a given product to bring it more in line with expectations. Consumers can also reduce the tension resulting from a discrepancy between expectations and product performance either by distorting expectations so that they coincide with perceived product performance or by raising the level of satisfaction by minimizing the relative importance of the disconfirmation experienced.

Contrast Theory
Contrast theory was first introduced by [13]; [14] define contrast theory as the tendency to magnify the discrepancy between one"s own attitudes and the attitudes represented by opinion statements. Contrast theory presents an alternative view of the consumer postusage evaluation process than was presented in assimilation theory in that post-usage evaluations lead to results in opposite predictions for the effects of expectations on satisfaction. While assimilation theory posits that consumers will seek to minimize the discrepancy between expectation and performance, contrast theory holds that a surprise effect occurs leading to the discrepancy being magnified or exaggerated.
According to the contrast theory, any discrepancy of experience from expectations will be exaggerated in the direction of discrepancy. If the firm raises expectations in his advertising, and then a customer"s experience is only slightly less 94 than that promised, the product/service would be rejected as totally un-satisfactory. Conversely, underpromising in advertising and overdelivering will cause positive disconfirmation also to be exaggerated.

Negativity Theory
This theory developed by [15] suggests that any discrepancy of performance from expectations will disrupt the individual, producing "negative energy". Negative theory has its foundations in the disconfirmation process. Negative theory states that when expectations are strongly held, consumers will respond negatively to any disconfirmation. "Accordingly dissatisfaction will occur if perceived performance is less than expectations or if perceived performance exceeds expectations. This theory developed by [16] suggests that any discrepancy of performance from expectations will disrupt the individual, producing "negative energy." Affective feelings toward a product or service will be inversely related to the magnitude of the discrepancy.

Disconfirmation Theory
Disconfirmation theory argues that "satisfaction is related to the size and direction of the disconfirmation experience that occurs as a result of comparing service performance against expectations".42 Szymanski and Henard found in the meta-analysis that the disconfirmation paradigm is the best predictor of customer satisfaction.43 [17] cites Oliver"s updated definition on the disconfirmation theory, which states "Satisfaction is the guest"s fulfilment response. It is a judgement that a product or service feature, or the product or service itself, provided (or is providing) a pleasurable level of consumption-related fulfilment, including levels of under-or over-fulfilment".

The Concept Of Electronic Banking
The concept of electronic banking has been defined in many ways; [18] defines electronic banking as the delivery of banks" information and services by banks to customers via different delivery plat forms that can be used with different terminal devices such as personal computers and mobile phone with browser or desktop software, telephone or digital television. According to [19] electronic banking defined as any use of information and communication technology and electronic means by a bank to conduct transactions and have interaction with stakeholders. [20] also defined electronic payment as a system of payment whereby transaction takes place electronically without the use of cash. [21] defined electronic banking (e-banking) is nothing but e-business in banking industry. E-banking is a generic term for delivery of banking services and products through electronic channels, such as the telephone, the internet, the cell phone, etc. The concept and scope of e-banking is still evolving. It facilitates an effective payment and accounting system thereby enhancing the speed of delivery of banking services considerably [22]. [23] argues that electronic banking is a product of e-commerce in the field of banking and financial services. In what can be describe as business to consumer domain for balance enquiry request for cheque books recording stop payment instruction balance transfer instruction account opening and other forms of traditional banking service. Banks are also offering payment services on behalf of their customer who shop indifferent eshops. In simple words, e-banking implies provision of banking products and services through electronic delivery channels. Electronic banking has been around for quite some time in the form of automatic teller machines (ATMs) and telephone transactions. In more recent times, it has been transformed by the internet -a new delivery channel that has facilitated banking transactions for both customers and banks [24].

Types Of E-Banking
There are many electronic banking delivery channels to provide banking service to customers. Among them ATM, POS, Mobile banking and internet banking are the most widely used and discussed below.

ATM
Automated Teller Machine (ATM) is a machine where cash withdrawal can be made over the machine without going in to the banking hall. It also sells recharge cards and transfer funds; it can be accessed 24 hours/7 days with account balance enquiry [19].

Internet Banking
Internet banking allows customers of a financial institution to conduct financial transactions on a secure website operated by the institution, which can be a retail or virtual bank, credit union or society. It may include of any transactions related to online usage. Banks increasingly operate websites through which customers are able not only to inquire about account balances, interest and exchange rates but also to conduct a range of transactions. Unfortunately, data on Internet banking are scarce, and differences in definitions make cross-country comparisons difficult [17].

POS
Point of sale (POS) also sometimes referred to as point of purchase (POP) or checkout is the location where a transaction occurs. A "checkout" refers to a POS terminal or more generally to the hardware and software used for checkouts, the equivalent of an electronic cash register. A POS terminal manages the selling process by a salesperson accessible interface. The same system allows the creation and printing of the receipt. Because of the expense involved with a POS system, the eBay guide recommends that if annual revenue exceeds the threshold of $700,000, investment in a POS system will be advantageous. POS systems record sales for business and tax purposes. Illegal software dubbed "zappers" is increasingly used on them to falsify these records with a view to evading the payment of taxes [15].

Mobile Banking
Mobile banking (also known as M-Banking, mbanking) is a term used for performing balance checks, account transactions, payments, credit applications and other banking transactions through a mobile device such as a mobile phone or Personal Digital Assistant (PDA). The earliest mobile banking services were offered over SMS, a service known as SMS banking. Mobile banking is used in many parts of the world with little or no infrastructure, especially remote and rural areas. This aspect of mobile commerce is also popular in countries where most of their population is un-banked. In most of these places, banks can only be found in big cities, and customers have to travel hundreds of miles to the nearest bank. The scope of offered services may include facilities to conduct bank and stock market transactions, to administer accounts and to access customized information [13].

CUSTOMER SATISFACTION
According to [11], satisfaction is an overall customer attitude towards a service provider, or an emotional reaction to the difference between what customers anticipate and what they receive, regarding the fulfillment of some need, goal or desire. [9] defined satisfaction as a judgment following a consumption experience -it is the consumers judgment that a product provided (or is providing) a pleasurable level of consumption-related fulfillment. [7] defined satisfaction as a person"s feelings of pleasure or disappointment resulting from comparing a products perceived performance (or outcome) in relation to his or her expectations.
Satisfaction can be associated with feelings of acceptance, happiness, relief, excitement, and delight. Most research confirms that the confirmation or disconfirmation of preconsumption expectations is the essential determinant of satisfaction. This means that customers have a certain predicted product performance in mind prior to consumption.
During consumption, customers experience the product performance and compare it to their expected product performance level. Satisfaction judgments are then formed based on this comparison. The resulting judgment is labeled positive disconfirmation if the performance is better than expected, negative disconfirmation if it is worse than expected and simple confirmation if it is as expected. In short, customers evaluate product performance by comparing what they expected with what they believe they received.

Customer Satisfaction in E-Banking
During the recent years, the development of e-channels has dramatically changed the rules and operation in the banking industry [4]. [6] mentioned that while the industry has moved instantly to deploy and offer new banking services via echannels for customers and in consequence the e-banking services have boomed promptly .Today, several financial institutions are endeavoring to emphasize customer -oriented services. For this sake, it is crucial to implement new banking services in order to develop and keep better relationships with customers. Hence building up competitive predominance almost depends on customers" satisfaction with banking service. It is recognized that banks gaining higher customer satisfaction will have a conspicuous marketing ascendancy because the higher customer satisfaction is associated with greater revenues, increased cross-sell rations, higher customer retention and bigger market share [14]. A study conducted by [12] examined the impact of customer satisfaction on customers" behavioral responses. The findings of the study indicated that when customers assessed customer satisfaction to be high, they either decided to stay with the existing service provider or subdue their negative behavioral intensions. Customer satisfaction is also found to have strong positive association with word-of mouth communication. The research results confirm prior research and indicate that the customer satisfaction dimensions are not industry specific, but also country specific. The authors suggest developing strategies to enhance behavioral responses to customer satisfaction and prohibit negative ones. Such strategies can include meeting customers desired service levels, preventing service problems from occurring, dealing effectively with dissatisfied customers, solving service problems effectively when they occur and dealing with customer complaints positively.

Challanges and Opportunities of E-Banking
The changing financial landscape has brought with it new challenges for bank management and regulatory and supervisory authorities. The major ones stem from increased cross-border transactions resulting from drastically lower transaction costs and the greater ease of banking activities, and from the reliance on technology to provide banking services with the necessary security [20]. While electronic banking can provide a number of benefits for customers and new business opportunities for banks, it exacerbates traditional banking risks. Even though considerable work has been done in some countries in adapting banking and supervision regulations, continuous vigilance and revisions will be essential as the scope of e-banking increases. In particular, there is still a need to establish greater harmonization and coordination at the international level. Moreover, the ease with which capital can potentially be moved between banks and across borders in an electronic environment creates a greater sensitivity to economic policy management. To understand the impact of e-banking on the conduct of economic policy, policymakers need a solid analytical foundation. Without one, the markets will provide the answer, possibly at a high economic cost. Further research on policy-related issues in the period ahead is therefore critical [5]. The primary challenge for banks is to provide consistent service to customers irrespective of the kind of channel they use. The more a bank relies on electronic delivery channels, the greater the potential for reputation risks. There are some serious implications of international e-banking. It is a common argument that low transaction costs potentially make it much easier to conduct cross-border banking electronically. For many banks, cross-border operations offer an opportunity to reap economies of scale.
But cross-border finance also needs a higher degree of cross-border supervision. Such cooperation may need to extend to similar supervisory rules and disclosure requirements (for efficiency and to avoid regulatory arbitrage) and some harmonizing of legal, accounting and taxation arrangements [8]. Major concerns of electronic transactions are the issues of security and privacy. In the developed countries like France, 3 out of 40 purchases on line and the remaining 37 are reluctant to use on line services and the reason is security and privacy which is the major threats to perform online business. It is not only the duty of industry but also the duty of government assuring people to perform secure electronic transactions [17]. When we see the challenges and opportunities of e-banking in Nigeria only 20% of the Nigerian households are connected to IT network and a large number of people are served by one bank branch even compared to other African countries. Un-served market, stable and secure political environment, rapidly growing mobile infrastructure, availability of delivery channels (outlets), safe and sound financial sector are the most important opportunities in Nigeria. Low level of financial literacy of the public, level of readiness and capacity of financial institutions to provide service, infrastructure, insufficient cash flow in rural areas limited potential agents, and presence of a few branches in rural areas are some of the challenges facing the country. Legal and related issues, the importance of looking in to the role of newly emerging third party technical providers, reconsidering pre-paid balance requirements and widening the scope of mobile banking service are also critical [13]. [4] described in Nigerian, among the known common problems which are related to electronic banking few of them are listed below.
1. Lack of banking services through the web or other electronic means such as using mobile phone. 2. Data and network security and privacy. But in recent years the Nigerian government has a grand plan for the improvement of ICT infrastructures hoping for Nigeria to leapfrog into the information age.

Research Questions/Hypothesis
Based on the research objectives, the study will test the following questions: Based on the study problem, this study aims to test the following hypotheses: H0: Electronic banking products and services have not significantly improved customers satisfaction HA: Electronic banking products and services have significantly improved customers satisfaction

Sources of Data
Primary data was obtain through questionnaire while secondary data was obtained through source documents from the internet. The researcher uses both the primary and secondary data in the study. The primary data are collected by the researcher through the use of questionnaire while the secondary data are data collected from CBN electronic banking guideline, annual report of GTBPlc, and CBN annual report etc.

Method of Data Analysis
The statistical mean scores was used to analyze the Livert"s five-point questionnaire while the frequency 10 unit and simple percentage was used to analyze respondents characteristics. The criteria for calculating the mean is:-Mean (x) -∑fx The chi-square test was employed by the researcher to test the significance of the responses from the credit officers of GTBPlc (respondent). The chi square test is performed by defining the numbers categories and observing the number of case falling into each category and knowing the expected number of cases fully in each category, the formulae for the chi-square is:Z2 = (oi-ei)2 Where Z2 = Chi-square 0i = Number of observed case in category i Ei = Number of expected cases in category i K = Number of category, summation runs from 1=1 to 1=K

DATA Data Presentation and Analysis
The data presented below were gathered during field work Bio data of respondents         10 of the respondents representing 18.5 percent were undecided. 5 of the respondents representing 9.3 percent disagree that electronic banking is the safest and fastest means of banking.

Tables based on research questions
4 of the respondents representing 7.4 percent strongly disagree that electronic banking is the safest and fastest means of banking.        Table 9 shows the responses of respondents if they are satisfied with the level of service delivery of electronic banking. 12 of the respondents representing 22.2 percent strongly agree that they are satisfied with the level of service delivery of electronic banking. 18 of the respondents representing 33.3 percent agree that they are satisfied with the level of service delivery of electronic banking.
10 of the respondents representing 18.5 percent were undecided. 10 of the respondents representing 18.5 percent disagree that they are satisfied with the level of service delivery of electronic banking. 14 of the respondents representing 25.9 percent strongly disagree that they are satisfied with the level of service delivery of electronic banking.   .019 a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 10.8.

Conclusion based on the decision rule:
Since the p-value (0.019) is less than the level of significance (0.05). We reject the null hypothesis and accept the alternative which says that electronic banking products and services have significantly improved.

CONCLUSION
The objective of the study was to know if electronic banking products and services have significantly improved customer satisfaction. Finding from the study revealed that electronic banking products and services have significantly improved customer satisfaction (See table 8, 9 and 10 above).