IMPACT OF E-BANKING SYSTEM ON CUSTOMER SATISFACTION IN NIGERIAN BANKING INDUSTRY(A CASE STUDY OF GUARANTY TRUST BANK)
Abstract
Abstract
The rapid adoption of electronic banking (e-banking) in Nigeria has transformed service delivery, yet its actual impact on customer satisfaction remains underexplored at the individual bank level. This study examines the effect of e-banking systems (internet banking, mobile banking, ATM services, and POS transactions) on customer satisfaction in the Nigerian banking industry, using Guaranty Trust Bank (GTB) Plc as a case study.
Primary data were collected through structured questionnaires administered to 250 randomly selected GTB customers across selected branches in Lagos and Abuja. The instrument measured perceived usefulness, ease of use, reliability, security, responsiveness, and overall satisfaction. Data were analyzed using descriptive statistics, correlation, and multiple regression analysis.
Findings reveal a strong positive relationship between e-banking adoption and customer satisfaction (R² = 0.62, p < 0.01). Mobile banking and internet banking emerged as the strongest predictors of satisfaction due to their convenience and 24/7 accessibility, while frequent ATM downtime and perceived security risks significantly reduced satisfaction levels. The study confirms that system reliability and transaction security are critical mediators in the e-banking–satisfaction nexus.
The research concludes that while GTB’s e-banking platforms have significantly enhanced convenience and reduced queuing time, persistent challenges such as network failures, hidden charges, and cyber-threat concerns continue to erode trust among a segment of users. It recommends sustained investment in infrastructure, real-time system monitoring, enhanced cybersecurity measures, customer education, and seamless integration of digital channels to maximize satisfaction.
This work contributes to the growing literature on digital banking in emerging economies and provides GTB and regulators with evidence-based insights for strengthening Nigeria’s cashless policy
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