Journal of Humanities and Social Sciences

p-ISSN: 2721-804X, e-ISSN: 2721-8104

Research Article

e-Banking and Customer Satisfaction in Commercial Banks: A Case of Centenary Bank

Main Branch-Mapeera House of Uganda

Tukundane Adonia1, Nabaasa Rodgers1, Val Hyginus Udoka Eze2*

1
Department of Business Administration, Kampala International University. Uganda.
2
Department of Publication and Extension, Kampala International University.

Article History Abstract: This study aimed to investigate the correlation between electronic
Received: banking (e-banking) and customer satisfaction within Centenary Banks.
14.12.2023 Employing a cross-sectional survey design, the research involved 85
participants, from whom a sample of 70 was selected. Data collection was
Revised:
03.01.2024
facilitated through a self-administered questionnaire. Rigorous data
processing and analysis, utilizing relevant statistical software packages, were
Accepted: applied to evaluate the relationships explored in the study. The results
17.01.2024 demonstrated positive and significant associations between e-banking and
customer satisfaction. Moreover, the findings indicated that the model could
*Corresponding Author: only account for a 24.4% variance in service quality. In summary, the study
Val Hyginus Udoka Eze affirmed that independent variables such as e-banking, networking, and
Email: customer perceptions regarding service value were crucial predictors of
[email protected] service quality in Centenary Bank. Based on the conclusions drawn, the study
This is an open access article,
recommends expanding the investigation to encompass factors not initially
licensed under: CC–BY-SA included in the model for a more comprehensive understanding of service
quality at Centenary Bank. Additionally, it suggests that Centenary Bank's
management place significant emphasis on e-banking and networking to
enhance overall service delivery. Furthermore, the recommendation extends
to conducting a longitudinal study to unveil the evolving nature of the subject.
Finally, the model proposed in this study should be applied to explore sectors
beyond the financial domain.

Keywords: Centenary, e-Banking, Finance.

2024 | Journal of Humanities and Social Sciences | Volume. 6 | Issue. 1 | 14-30

Tukundane Adonia, Nabaasa Rodgers, Val Hyginus Udoka Eze.
e-Banking and Customer Satisfaction in Commercial Banks: A Case of Centenary Bank Main Branch-Mapeera House of Uganda.
Journal of Humanities and Social Sciences, vol. 6, no. 1, pp. 14-30, April 2024. DOI: 10.36079/lamintang.jhass-0601.605

1. Introduction
Centenary bank was founded in 1983 as a credit Trust, Centenary Rural Development Trust (CRDT),
by Simeon Lutaakome, Hugh Francis Pulle, Paul Kateregga, Vicent Kirabo Kya Maria, Emmanuel
Mpande and John Ogutu. In 1983, CRDT began to provide financial services to the public. The bank
became a fully licensed commercial bank in 1993 after receiving a license from the bank of Uganda.
As of May 2016, centenary bank, branches alone, centenary bank was arguably the fastest growing
bank in 2008. Not only did the Catholic Church owned bank open five new branches in 2008, it also
started building its new eight-storey headquarters on Kampala Road. Mapeera complex, as it is to be
called, is due for completion in 2010, having been financed by the bank’s own resources. Started in
1983 as a credit trust, Centenary Rural Development Bank (CERUDEB), as it was later to be called,
has since grown into perhaps the biggest indigenous bank with 680,000 customers, 32 branches and
51 ATMS outlets.
In today’s world, customers have very high demands for the financial services organizations are
trying to become more customer-focused [1]. Therefore, for Centenary bank to gain customer
satisfaction through E-banking, it should focus not only on acquiring new customers but also on the
retention of existing customers [2]. E-banking is defined as the automated delivery of new and
traditional banking products and services directly to customers through electronic, interactive
communication channels. E-banking includes the systems that enable financial institution customers,
individuals or businesses to access accounts, transact business, or obtain information on financial
products and services through a public or private network, including the Internet. Customers access e-
banking services using an intelligent electronic device, such as a personal computer (PC), personal
digital assistant (PDA), Kiosk, or Touch Tone telephone. Sharma and Patterson, (1999) assert that
effective communication plays a central role in impacting customers’ perceptions regarding both
technical and functional quality and service value.

2. Literature Review
Electronic banking has experienced explosive growth and has transformed traditional practices in
banking [3]. According to [4], E banking has become an important channel to sell the products and
services and is perceived to be necessity in order to stay profitable. A perception is formed as a result
of interpreting the experience. There is a growing interest in understanding the users’ experience [5],
as it is observed as a larger concept than user satisfaction. From this perspective, assessing the user
experience is essential for many technology products and services [6]. According to [7], noted that the
challenge to expand and maintain banking market share has influenced centenary bank to invest more
in making better use of the Internet. They suggest that the banks that fail to respond to the emergence
of e-banking in the market are likely to lose customers and that the cost of offering e-banking services
is less than the cost of keeping branch banking.
According to [8] the introduction of E-banking services may change crucially the way centenary
bank builds and maintains its customer relationships. The increased use of the Internet in the future
will increase the expectations and perceptions of customers, thus increasing customer satisfaction. In
addition, delivering high quality services is a way centenary bank manages to improve its customer
relationships. Delivering high quality services is a prerequisite for achieving customer satisfaction and
only through customer satisfaction can centenary bank gain more and loyal customers [9]. Because of
the highly undifferentiated products and services that financial organizations, and specifically
centenary bank offers, customer satisfaction becomes main tool for competing in today’s banking
marketplace [10] [11].
In general, because of the higher profits and higher customer retention to which centenary bank
leads, high-quality services and customer satisfaction are believed to provide centenary bank with
competitive edge in the marketplace [12]. From the mentioned above, it becomes obvious that
customer satisfaction is essential for surviving in the highly competitive banking environment [13].
This leads to the fact that a good understanding of the attributes that customers use to judge service
quality is necessary in order for centenary bank to be able to monitor and enhance its service
performance and improve its overall service quality. It is evident that centenary bank exhibits
weaknesses in communication where the major medium of communication/ provision of information
and handling customers’ queries is through the helpdesk attendants who are in most cases
overwhelmed by the number of customers and hence compromise the services of the bank. This
explains the delays in addressing customer complaints which have greatly hindered the effective flow
of information between the management of the bank and the customers which forced centenary to

16
Tukundane Adonia, Nabaasa Rodgers, Val Hyginus Udoka Eze.
e-Banking and Customer Satisfaction in Commercial Banks: A Case of Centenary Bank Main Branch-Mapeera House of Uganda.
Journal of Humanities and Social Sciences, vol. 6, no. 1, pp. 14-30, April 2024. DOI: 10.36079/lamintang.jhass-0601.605

adopt e-banking. The banks’ embracement of e-banking and networking meant that there was going to
be efficient and effective service delivery. For instance, all public servants’ salaries are by law
supposed to be paid through the Electronic Funds Transfer (EFT) which credits peoples’ accounts
within a day or two. But this has not been the case ever since the implementation of the EFT salary
payment system. There are delays at the EFT file verification stage by the Bank of Uganda and where
the files are authorized by BOU and still contain problems with particular accounts, all the people to
be paid have to wait until the problem is cleared which takes long.
Despite the advancement of e-banking and customer satisfaction in the commercial banking sector,
there still remain questions on whether this advancement will help to improve service quality in terms
of delivery time, reliability, security, effectiveness and efficiency. Long queues, congested banking
halls and various complaints in newspapers about poor services from the banks reveal evidence that
there is a gap somewhere (The Daily Monitor dated March 22nd 2007). Additionally, various
complaints in the customer suggestion boxes at the banks show that e-banking and networking are
integral parts of the whole service delivery of the banks so as to cause efficiency and effectiveness
during service delivery. In line with rendering quality and acceptable services, most banks in Uganda
are gearing towards investing large sums of money in Information and Communication Technology.
Centenary Bank, Stanbic Bank, DFCU Bank and other commercial banks of Uganda are at the
forefront of the use of IT in rendering services to their customers. They also seek the challenges
involved in e-banking and best industrial practices and the approach to implementing them in the
Ugandan banking system. While the rapid development of information technology has made some
banking tasks more efficient and cheaper, technological investments are taking a large share of bank’s
resources thus customer satisfaction. Banks need to manage the costs and risks associated with e-
banking hence it is important that e-banking innovations are made through sound analysis of the risks
and costs associated so as to avoid customer dissatisfaction in commercial banks. Customer
satisfaction is directly related to the efficiency and effectiveness of e-banking but tight controls and
standards are needed to prevent losses associated with e-banking. The banks have to balance these
variables in order not to impair their overall prosperity. This is only possible if the use of e-banking in
Centenary Bank is understood by customers. this has encouraged the researcher to carry out research
on E-banking and customer satisfaction in commercial banks of Uganda using Centenary Bank's main
branch as a case study.
This study sought to examine the relationship between e-banking and customer satisfaction in
centenary banks.
Conceptual Framework
The conceptual framework was developed for the study of independent and dependent variables.
The model shown in the figure below examines the relationship between e-banking, networking,
customer satisfaction and service quality. E-banking plays a big role in connecting the service to the
consumer in such a way that service quality is attained. According to [14], networking is positively
related to perceived Value. Authors in [15] recognized a perceived value as independent contributors
to service quality.

Figure 1. Conceptual Framework [14] [16]-[21]

3. Methodology
3.1. Research Design
This provided a detailed outline of how an investigation took place. It typically included how data was
collected, what instruments were employed, how the instruments were used and the intended means
for analyzing data collected [22]. Both qualitative and quantitative approaches were used. Case study

17
Tukundane Adonia, Nabaasa Rodgers, Val Hyginus Udoka Eze.
e-Banking and Customer Satisfaction in Commercial Banks: A Case of Centenary Bank Main Branch-Mapeera House of Uganda.
Journal of Humanities and Social Sciences, vol. 6, no. 1, pp. 14-30, April 2024. DOI: 10.36079/lamintang.jhass-0601.605

method was useful for trying to test theoretical models by using them in real world situations [23].
This method was preferred because it was an ideal method that eased the collection of information
from the respondents at both individual and group levels. The researcher used cross sectional design
and findings were displayed and described in table form with figures in percentage form.

3.2. Target Population

The population of the study comprised of 85 respondents from centenary bank that is operational in
the banking sector. The target population of the study was from corporate and non-corporate
customers, a bank manager and assistant manager, Head of IT and loans departments, and customer
care staff were selected to constitute the respondents of the study basing on their frequency of the use
of E-banking and networking.

3.3. Sample Size

Sometimes it is difficult to include the whole population in research therefore a researcher selected a
portion from the population known as sample of 70 respondents to represent the entire population of
the study. The Slovene’s formula was used to come up with appropriate sample size to use in the
study.
Slovene’s Formula states that, given a population, the minimum sample size is given by (Equation
1):

(1)

where,
n= the sample size
N=total population of respondents, that is 85
α=the level of significance, that is 0.05

n = 70

A sample size of 70 respondents were used in the study.

3.3. Sampling Techniques

The researcher used both probability and non-probability sampling methods and in particular
purposive or stratified sampling and simple random sampling were used to select sample population.
In stratified sampling, the researcher divided the population of none and corporate customers into sub
populations. Then simple random sampling was used to select a sample independently from each sub-
population especially customers of centenary bank who are perceived to have information suitable for
the study.

3.4. Data Collection Methods

Closed ended questionnaire was designed to suit the objectives of the study. The approved
questionnaire was hand delivered to the respondents of centenary bank main branch by the researcher.
The researcher designed a questionnaire on e-banking and customer satisfaction in centenary bank on
5point scale rating. Therefore, a 5 point Likert scale self-administered questionnaire comprising of
statements and responses ranging from 1=Strongly Agree to 5=Strongly Disagree were formulated.
Questionnaire was designed to capture all the aspects of the objectives of the study.

3.5. Interview Method

This is face to face interaction between the researcher and respondents where the researcher asked
questions and recorded responses from respondents. This enabled the researcher to help respondents
against confusing items or questions where respondents would not have understood a question (s)
thereby obtaining relevant responses.

18
Tukundane Adonia, Nabaasa Rodgers, Val Hyginus Udoka Eze.
e-Banking and Customer Satisfaction in Commercial Banks: A Case of Centenary Bank Main Branch-Mapeera House of Uganda.
Journal of Humanities and Social Sciences, vol. 6, no. 1, pp. 14-30, April 2024. DOI: 10.36079/lamintang.jhass-0601.605

3.6. Validity of Instrument

Validity of the instrument was obtained through the development of the scales with the help of the
experts in the field using the Content Validity Index (CVI). This confirmed the dimensions of the
concept that was operationally defined, to ensure appropriateness of results [24].

3.7. Reliability of Instrument

The reliability of the questionnaire was improved through pre-testing of pilot samples both from staff
and clients. This enabled the re-phrasing of some questions. All alpha reliabilities (α) for all scales are
expected to score above 0.5 so as to meet the acceptance standards for research according to [25].

Table 1. Reliability Coefficients

Variable Cronbach Alpha Value

E-Banking 0.62
Networking 0.80
Customer satisfaction 0.84
Perceived value 0.70

Table 1 displays the reliability indices/coefficients for all constructs used in the study. All alpha
reliabilities (α) for all scales were above 0.6, ranging from 0.62 to 0.84 therefore meeting acceptance
standards for research [25].

3.8. Data Processing and Analysis

Data from the field was compiled, sorted, edited and coded to have the required quality, accuracy and
completeness. Then entered into the computer using the Statistical Package for Social Sciences (SPSS
v. 16.0) for analysis. The data was analyzed according to the research questions. Cross tabulations
were used to describe sample characteristics; the Pearson Correlation coefficient was used to establish
the relationship between the study variables. The regression analysis was used to establish the
combined effect of study variables on independent and dependent variables.

3.9. Ethical Considerations

The respondents were protected by keeping the information given confidential and where there is a
need to reveal, consent would first be sought and obtained. The questionnaire did not disclose the
details of respondents for the issue of privacy and secrecy. After the collection of data, questionnaire
was destroyed to avert leakage of information.
Limitations of the study, are:
1. Respondents withholding information due to fear of being victimized but however, the
researcher convinced the respondents that the information would be kept.
2. Unwillingness of respondents to fill out the questionnaire. The researcher tried to be in
constant touch with the respondents and made sure reminders could be sent to them to fill out
the questionnaire.
3. Respondents have a view of not obtaining any direct benefit from the research results. The
researcher tried his level best to convince the respondents to spare some little time to answer
the questions.

4. Finding and Discussions

4.1. Finding
 Sample Characteristics
To present sample characteristics, frequency tabulations were used to indicate variations of
respondents based on gender, level of education, tenure and age group. The sample characteristics
were presented based on the responses from the respondents.

 Gender Distribution of the Respondents

Frequency tabulation was used by the researcher to present the gender distribution of the respondents.
Table 2 presents the results.

19
Tukundane Adonia, Nabaasa Rodgers, Val Hyginus Udoka Eze.
e-Banking and Customer Satisfaction in Commercial Banks: A Case of Centenary Bank Main Branch-Mapeera House of Uganda.
Journal of Humanities and Social Sciences, vol. 6, no. 1, pp. 14-30, April 2024. DOI: 10.36079/lamintang.jhass-0601.605

Table 2. Gender Respondent Distribution

Frequency Percent Cumulative Percent

Valid Male 30 42.9 42.9
Female 40 57.1 100.0
Total 70 100.0

The gender responses of the respondents revealed that 42.9% were male whereas, 55.9% were
female. From the results it is clear that the female were more responsive compared to their male
counterparts.

 Level of Education Distribution of the Respondents

Frequency tabulation was used by the researcher to present the level of education distribution of the
respondents and the results are presented in Table 3.

Table 3. Level of Education

Frequency Percent Valid Percent Cumulative Percent

Valid University 48 68.6 68.6 68.6
Secondary 10 14.3 14.3 82.9
Tertiary 12 17.1 17.1 100
Total 70 100.0

From the results in Table 3, the majority of the respondents had attained a university level of
education (68.6%) whereas, the proportion of those who had attained a secondary level of education
(14.3%) and those who had attained a tertiary level of education (17.1%).

 Level of Age Group Distribution of the Respondents

Frequency tabulation was used by the researcher to present the age group distribution of the
respondents and Table 4 presents the results.

Table 4. Age Group

Frequency Percent Valid Percent Cumulative Percent

Valid 25 & below 6 8.6 8.6 8.6
26-35 18 25.7 25.7 34.3
36-45 38 54.3 54.3 88.6
46+ 8 11.4 11.4 100
Total 70 100.0

According to the results in Table 4 above, 8.6% of the respondents were in the 25 years and below
age group, 25.7% belonged to the 26-35 years’ age group, 54.3% belonged to the 36-45 years’ age
group and 11.4% belonged to the 46 years and above age group. The results indicated that the
majority of the respondents belonged to the 26-35 years’ age group.

 Period Worked Distribution of the Respondents

Frequency tabulation was used by the researcher to present the tenure distribution of the respondents
and Table 5 presents the results.
The results in Table 5 show that the bulk of the respondents had worked for the institutions for a
period 4 years and above (71.4%), followed by those who had worked for a period ranging from 2-4
years (17.1%) and 11.4% had worked less than 2 years.

20
Tukundane Adonia, Nabaasa Rodgers, Val Hyginus Udoka Eze.
e-Banking and Customer Satisfaction in Commercial Banks: A Case of Centenary Bank Main Branch-Mapeera House of Uganda.
Journal of Humanities and Social Sciences, vol. 6, no. 1, pp. 14-30, April 2024. DOI: 10.36079/lamintang.jhass-0601.605

Table 5. People Worked for the Institution

Frequency Percent Valid Percent Cumulative Percent

Valid Below 2 yrs 8 11.4 11.4 11.4
2-4 yrs 12 17.1 17.1 28.5
Above 4yrs 50 71.4 71.4 100
Total 70 100.0

 Factor Analysis
Factor analysis was done to extract factors that measured E-banking, Networking, perceived value and
service quality using principle component analysis and varimax rotation methods.

Table 6. Rotated Component Matrix for E-Banking

Component
Perceived Perceived System
Usefulness Ease of Usage
Use
Using E-banking will improve the quality of the work my bank does .816
Using E-banking will give my bank greater control over work schedules .707
E-banking will enable our bank to accomplish tasks more quickly. .895
E-banking will support critical aspects of staff jobs .788
Using E-banking will increase staff productivity .620
Using E-banking will improve my bank performance .810
Using E-banking will allow my bank to accomplish more work than would .707
otherwise be possible.
Using E-banking will enhance my bank’s overall effectiveness. .806
Using E-banking will make it easier to pay my utility bills. .789
Overall, I feel that E-banking will be useful in my life. .770
I find E-banking cumbersome to use .836
Learning to use E-banking functions and services will be easy for me. .814
Interaction with and use of E-banking will be difficult. .746
I find it easy to use E-banking to do what I want to do. .622
E-banking will be rigid to operate for the bank staff. .820
It will be easy for me to remember how to perform access what service I .783
want using E-banking
Interacting with E-banking will require a lot of mental effort. .788
My interaction with E-banking will be clear and understandable .773
I feel that it will take a lot of effort to become skilful at using E-banking .791
technologies.
Overall, I feel that the Mobile Phone- Commerce will be easy to use. .881
Each week, I use the bank systems in performing my job tasks. .701
I have been using E-banking for a very long time now. .899
I have sufficient knowledge on how to operate the functions of E-banking .730
I really enjoy learning new E-banking functions. .896
Generally, I give more E-banking advice to other people than I receive. .710
I find E-banking extremely easy to use. .770
I find it so easy to save and edit entries in using E-banking .621
I do not need any help when E-banking. .635
Eigen values 5.799 4.768 4.086
Variance % 27.793 21.201 19.866
Total 27.793 48.994 68.860
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization. a Rotation converged in 6 iterations.

21
Tukundane Adonia, Nabaasa Rodgers, Val Hyginus Udoka Eze.
e-Banking and Customer Satisfaction in Commercial Banks: A Case of Centenary Bank Main Branch-Mapeera House of Uganda.
Journal of Humanities and Social Sciences, vol. 6, no. 1, pp. 14-30, April 2024. DOI: 10.36079/lamintang.jhass-0601.605

Factors with Eigen values greater than 1 were extracted. Eigen values measured the amount of
variation in the total sample accounted for by each factor. Kaiser criterion “The Kaiser Rule” is to
drop all components with Eigen values under 1.0 and the Kaiser criterion is the default in SPSS and
most computer programs [26].
Table 6 shows that, perceived usefulness, perceived ease of use and system usage components in
the matrix are the true measures of E-banking in the given order. Total variance in E-banking
explained by these components was 68.86%. This also serves a confirmatory test for the validity and
reliability of the questionnaire as seen in chapter three.

Table 7. Rotated Component Matrix for Networking

Component
Cohesion Diversity
In our organization, networking serves as a transitional stage to help our .722
organizations to become leaner,
Networking has helped our organization to become more innovative .720
Networking has helped our organization to become more responsive .883
Through networking, our organization is able to target and focus .736
marketing approaches
One-on-one marketing strategies, through networking are custom-tailored, .714
high-quality interactions between company and client.
Through networking we are able to seek out potential clients .646
Through networking we are able to reveal what clients are like .679
Through networking we are able to satisfy customer needs .685
Networking is attributed to changing the way the bank uses computers and .653
sophisticated communication technology.
In our bank, the success of corporate strategies is dependent on data .678
communication networks
In our bank, the success of corporate strategies is dependent on the value- .602
added services networks provide.
Through networking our organization has been able to grow .831
Through networking we are able to demonstrate how important customers .801
are to the bank.
In our bank, we support operations with lean, flexible networks .799
Through networking we have been able to offer timely services to .730
customers
Through networking we have been able to offer services more cost- .696
effectively
Through networking we have been able to offer services in an integrated .650
manner to make information available throughout the bank
In our bank, we use networking techniques to eliminate routine tasks .650
At the bank, networking aims at structuring the system’s environment to .788
optimal location.
Networking has made a strong impact on our bank’s use of information .670
(communication) technology.
Networking enables information systems and peripherals to be accessible .530
by everyone in a cost-effective way.
In our bank, advances in networking are making it easier and more .512
practical for our bank to forge strategic marketing and information
technology alliances.
Eigen values 2.705 2.120
Variance % 24.593 29.271
Total 24.593 53.864
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization. a Rotation converged in 6 iterations.

Table 7 shows that, cohesion and diversity components in the matrix are the true measures of
Networking in the given order. Total variance in Networking explained by these components was

22
Tukundane Adonia, Nabaasa Rodgers, Val Hyginus Udoka Eze.
e-Banking and Customer Satisfaction in Commercial Banks: A Case of Centenary Bank Main Branch-Mapeera House of Uganda.
Journal of Humanities and Social Sciences, vol. 6, no. 1, pp. 14-30, April 2024. DOI: 10.36079/lamintang.jhass-0601.605

53.9%. This also serves a confirmatory test for the validity and reliability of the questionnaires as seen
in chapter three.

Table 8. Rotated Component Matrix for Perceived Service Value

Component
Acquisition Transaction
Considering the quality of services offered by the bank, the salaries .831
they are paid could be appropriate.
My bank values its customers .801
As a result of valuable service delivery by my bank, I am willing to .799
remain a customer of the bank
Am likely to receive value for the services I pay for. .730
My bank is always willing to offer its services for value .696
Compared to the bank charges, the services the bank offers are of .650
value.
Beyond saying my bank offers valuable services. .650
I value the relationship with my bank .788
There is value in the collaborations with my bank .730
In my transactions with my bank, I ensure that the value for money .743
My bank delivers valuable services to customers .711
Value is the driving force behind all my transactions with the bank .689
Eigen values 2.359 1.836
Variance % 15.214 11.841
Total 49.841 61.682
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization. a Rotation converged in 6 iterations.

Table 8 shows that, acquisition and transaction components in the matrix are the true measures of
perceived service value in the given order. Total variance in perceived service value explained by
these components was 61.7%. This also serves a confirmatory test for the validity and reliability of
the questionnaires as seen in chapter three.
Table 9 shows that, reliability, responsiveness, assurance, empathy and tangibles components in
the matrix are the true measures of service quality in the given order. Total variance in service quality
explained by these components was 69.8%. This also serves a confirmatory test for the validity and
reliability of the questionnaire as seen in chapter three.

 The Relationship between the Study Variables

In this section, the results that address the research objectives are presented and Pearson’s Correlation
Test was used to answer the research questions of the study. Correlation is a technique for
investigating the relationship between two quantitative, continuous variables. Pearson's correlation
coefficient (r) is a measure of the strength of the association between the two variables. The Pearson
correlation coefficient is a measure of the strength of the linear relationship between two variables.
Where the relationship between the variables is not linear, then the correlation coefficient does not
adequately represent the strength of the relationship between the variables. Pearson's r can range from
-1 to 1. An r of -1 indicates a perfect negative linear relationship between variables, an r of 0 indicates
no linear relationship between variables, and an r of 1 indicates a perfect positive relationship between
variables. To investigate the relationship among the constructs a Zero-order correlation table was
generated. The Pearson correlation coefficient (r) was employed to establish the relationship between
e-banking, networking, perceived service value and service quality.
Table 10 shows that to establish the relationship between the study variables (E-banking,
networking and perceived value) and service delivery, Pearson Correlation coefficients were
generated with use of SPSS V17. The correlations revealed the level of strength and significance of
the relationships between the study variables and the independent variable.

23
Tukundane Adonia, Nabaasa Rodgers, Val Hyginus Udoka Eze.
e-Banking and Customer Satisfaction in Commercial Banks: A Case of Centenary Bank Main Branch-Mapeera House of Uganda.
Journal of Humanities and Social Sciences, vol. 6, no. 1, pp. 14-30, April 2024. DOI: 10.36079/lamintang.jhass-0601.605

Table 9. Rotated Component Matrix for Service Quality

Reliability Component
a b c d e
The services of my bank are reliable .722
Customer accounts are serviced regularly to ensure .720
accurate account balances
When the bank promises to do something by a certain .683
time, it does so.
My bank is dependable .736
Information about my bank is easily accessible .714
Am happy with the time it takes to get a service from my .646
bank
Customers are always reminded to pay their loans on time. .479
Customers pay loans in the specified period by the bank .695
The reported complaints are rectified within a short period. .673
My bank has got timely provision of its services .628
My bank tells customers exactly when services will be .866
interrupted.
Customer help desks and suggestion boxes are provided to .809
get feedback from customers
Any disruptions in the services of the bank are .736
communicated to the customers in time
Our bank has put effort in improving the services offered .725
Our bank updates the public if there will be any .688
disruptions in the services
The staff are well informed of the rules and procedures of .631
the bank
Our bank personnel are friendly and help clients .621
Customers are treated well every time they access the bank .769
services
Exceptional treatment is extended to long term customers .728
of the bank
The staff of my bank are always too busy to respond to .628
clients’ requests
My bank has clients’ best interests at heart .735
My bank has convenient operating hours for its staff .735
The account opening form and other documents are very .759
clear
All bank branches are easily accessible for payments .716
My bank has up to date facilities .711
The appearance of the physical facilities of my bank is in .700
line with the services provided.
I receive prompt services from the staff of my bank. .683
My bank gives adequate individual client attention. .673
Eigen values 12.441 8.64 5.799 4.768 2.705
Variance % 19.773 16.343 13.285 11.811 8.593
Cumulative% 19.773 36.116 49.401 61.212 69.805
Extraction Method: Principal Component Analysis.
Rotation Method: Varimax with Kaiser Normalization. a Rotation converged in 6 iterations.

Component:
a = Reliability b = Responsiveness c = Assurance
d = Empathy e = Tangibles

24
Tukundane Adonia, Nabaasa Rodgers, Val Hyginus Udoka Eze.
e-Banking and Customer Satisfaction in Commercial Banks: A Case of Centenary Bank Main Branch-Mapeera House of Uganda.
Journal of Humanities and Social Sciences, vol. 6, no. 1, pp. 14-30, April 2024. DOI: 10.36079/lamintang.jhass-0601.605

Table 10: Relationships between the Variables/Zero Order Matrix

E-Banking Networking Perceived Value Service Quality

E-Banking 1.000
Networking .441** 1.000
Perceived Value .512** .433** 1.000
Service Quality .375** .454** .198** 1.000
** Correlation is significant at the 0.01 level (2-tailed).

 E-banking and Service Quality

Correlation results indicated a significant positive relationship between e-banking and service quality
(r = 0.375**, p<.01). This signifies that when the deployment of banking services and products over
electronic and communication networks directly to customers is effective and efficient, this would
have a positive effect on the quality of services offered by the banks.
Therefore, a unit change in e-banking would enhance service quality by 37.5%.

 Networking and Service Quality

Correlation results indicated a significant and positive relationship between networking and service
quality (r = .454**, p<.01). This is indicative of the fact that the more the operations of the banks are
networked, the more the quality of the services delivered will be improved. This implies that
networking of baking operations highly influences the resultant service quality.

 E-banking, Perceived Value and Service Quality

Correlation results indicated significant and positive relationships between E-banking and perceived
value (r = .512**, p<.01) and between perceived value and service quality (r = .198**, p<.01).
Therefore, when the clients hold favorable perceptions about the value of ebanking, there will enhance
delivery of quality banking services.

 Networking, Perceived Value and Service Quality

Correlation results indicated significant and positive relationship between networking, perceived vaue
(r = .433**, p<.01) and the relationship between perceived value and service quality (r = .198**,
p<.01) was found to also be positive. From the results, it is clear that when the consumer’s overall
assessment of the utility of a network based on perceptions of what is received and what is given, this
will greatly influence the delivery of reliable, timely and desired services to the clients.

 Regression Model
Regression analysis includes any techniques for modeling and analyzing several variables, when the
focus is on the relationship between a dependent variable and one or more independent variables.
More specifically, regression analysis helps understand how the typical value of the dependent
variable changes when any one of the independent variables is varied, while the other independent
variables are held fixed. Most commonly, regression analysis estimates the conditional expectation of
the dependent variable given the independent variables. Regression analysis is widely used for
prediction and forecasting, where its use has substantial overlap with the field of machine learning.
Regression analysis is also used to understand which among the independent variables are related to
the dependent variable, and to explore the forms of these relationships. In restricted circumstances,
regression analysis can be used to infer causal relationships between the independent and dependent
variables. Therefore, regression analysis was carried out to examine the extent to which study
variables (e-banking, networking and perceived service value) predict service quality.
According to Table 6, e-banking, networking and perceived service value predict 24.4% of service
quality (Adjusted R Square = .244). The regression model was significant and thus reliable for making
conclusions and recommendations (Sig. <.05). The most significant predictors of service quality were
e-banking (Beta= .253, t= 4.572, Sig. = 0.000) and networking followed by perceived value (Beta=
.106, t= 1.917, Sig. = 0.056). The findings revealed that e-banking, networking and perceived service
value were strong predictors of service quality.

25
Tukundane Adonia, Nabaasa Rodgers, Val Hyginus Udoka Eze.
e-Banking and Customer Satisfaction in Commercial Banks: A Case of Centenary Bank Main Branch-Mapeera House of Uganda.
Journal of Humanities and Social Sciences, vol. 6, no. 1, pp. 14-30, April 2024. DOI: 10.36079/lamintang.jhass-0601.605

Table 11. Prediction Model

Unstandardized Standardized
Coefficients
Coefficients Coefficients t Sig.
Model B Std. Error Beta
(Constant) 2.617 .190 13.763 .000
E-Banking .246 .054 .253 4.572 .000
Networking .310 .042 .389 7.342 .000
Perceived Value .102 .053 .106 1.917 .056
Dependent Variable: Service Quality
R Square = .251
Adjusted R Square = .244
Sig. F Change = .000

4.2. Discussion
 E-banking and Service Quality
The findings revealed a significant positive relationship between e-banking and service quality. This
is in agreement with extant literature which according to [27], posits that service industries are mostly
customer driven and their survival in competitive environment largely depends on quality of the
service provided by them. In this context, quality of service furnished by banking sector is very
important and profitability of their business is closely connected to the quality of service they render.
Here, technology plays a vital role in improving the quality of services provided by the business units.
The financial sector being no exception, numerous factors such as competitive cost, customer service,
increase in education and income level of customers, etc. influence banks to evaluate their technology
and assess their electronic commerce and internet banking (i-banking) strategies. Internet banking
allows banking from anywhere, anytime and is used for transactions, payments, etc. over the internet
through a bank, a credit union or society’s secure website. So, basically, in i-banking a client has one-
to-one interaction with the bank’s website, and in such a situation it is essential on the part of bank to
provide high quality services over the internet. So, in contrast to traditional banking, i-banking
involves non-human interactions between customers and online bank information system.
Customer satisfaction, customer retention and new customer acquisition are the key factors in i-
banking system. This becomes more important since the acquisition costs in online banking exceed
that of traditional offline business by 20%–40% [28]. Providing i-banking is increasingly becoming a
„need to have‟ than a nice to have” service. The i-banking, thus, now is more of a norm rather than an
exception in many developed countries due to the fact that it is the cheapest way of providing banking
services [29]. Internet banking is a new delivery channel for banks in India. The i-banking channel is
both an informative and a transactional medium. However, i-banking has not been popularly adopted
in India as expected [27].

 Networking and Service Quality

According to the findings of the study, a significant and positive relationship between networking and
service quality was observed. According to [30], successful networking can positively influence
career outcomes such as increased job opportunities, job performance, income, promotions, and career
satisfaction, providing access to information, gaining visibility, career advice, social support, business
leads, resources, collaboration, strategy making and professional support. The Author in [31] found
that managers‟ ability to network was the strongest predictor of managerial success, ahead of their
ability to undertake traditional management activities, routine communication and human resource
management. Networking is incorporated into commercial banks and in particular levels of
management and the service delivery channels. According to [32] asserted that there have been many
studies identifying the key service quality factors in the traditional banking environment, where the
interaction between employees and customers is the main communication channel. Another key
factors is the relationship between the staff’s job performance in relate to administrative strategies
[33] [34]. The Author in [32], argued that the categorization of technology-based service delivery
options may be applied across a spectrum of industries that utilize technology in delivering their

26
Tukundane Adonia, Nabaasa Rodgers, Val Hyginus Udoka Eze.
e-Banking and Customer Satisfaction in Commercial Banks: A Case of Centenary Bank Main Branch-Mapeera House of Uganda.
Journal of Humanities and Social Sciences, vol. 6, no. 1, pp. 14-30, April 2024. DOI: 10.36079/lamintang.jhass-0601.605

service to the customer. The first classification in this categorization is based on who uses technology
to deliver what service.

 E-banking, Perceived Value and Service Quality

From the findings correlation results showed significant and positive relationships between e-banking,
perceived value and service quality. Service quality has been wildly used to assess the service
performance of various service organizations including banks. According to [35], banks with younger
age, private ownership and lower branch intensity possess high probability of adoption of new
technology. Banks with lower market share also perceive i-banking technology as a means to increase
the market share by attracting more and more customers through this new channel of delivery.
However, the service quality in i-banking from customers’ needs thorough analysis to find out the
determinants for success and growth of new channel of delivery so that useful guidelines for bankers
can be extracted. Perceived value is the result of an evaluation that is based upon the customers’
experience with the service, whereas objective quality refers to a combination of quantified factors
associated with the superiority of materials, the manufacturing process, workmanship, and with design
and aesthetics. The researcher in [36] found quality to be the most important of value. Firms also
focus on achieving customer satisfaction and loyalty by delivering superior value, an underlying
source of competitive advantage [37]. Future intentions are determined in part by perceived value.
The scholar in [15] recognize the potential impact of perceived value but also proposed to view
perceived value as independent contributors to service quality. They state that customers that are less
satisfied may still be loyal on the basis of perceived value.

 Networking, Perceived Value and Service Quality

From the findings, significant and positive relationships between networking, perceived value and
service quality were observed. These finding are consistent with [38] who believes that favorable
service quality perceptions lead to improved value attributions and higher levels of networking
enhanced value. The scholar in [39] viewed value as one of the key linkages between the cognitive
elements of service quality or performance and behavioral intentions, primarily because it
incorporates perceived monetary sacrifice [39].
The scholar in [40], posits that technology has had a remarkable influence on the growth of service
delivery portions. According to [31], the banking industry has been significantly influenced by
evaluation of new technology, the growing applications of computerized network to banking
industries have reduced the cost of transaction and increase the speed of services sustainability [41]
[42]. The nature of financial intermediaries makes banks improve their production technology by
focusing on destination of products. In other words, the evolution of banking technology has been
mainly driven by change in distribution channels [43] [41]. However, it seems natural to consider
progress in banking technology as a reason for market consumer given the nature of network in the
banking sector.

5. Conclusions
In conclusion, the research findings underscore a strong and positive correlation between e-banking
and service quality, indicating that a greater emphasis on electronic banking enhances overall
effectiveness and efficiency in service delivery. Likewise, the study reveals a noteworthy positive
association between networking and service quality, emphasizing that an interconnected staff
environment leads to more effective and efficient service delivery, ultimately contributing to customer
satisfaction. Moreover, the results highlight significant and positive relationships among e-banking,
perceived value, and service quality.
This suggests that increased electronic access to banking services correlates with customers
perceiving higher value in the services provided. Additionally, the research demonstrates similar
positive connections between networking, perceived value, and service quality, affirming that the
interconnectedness of staff workstations influences customers' perceptions of the value of banking
services. When customers perceive value, it encourages the bank to enhance its service delivery.
Furthermore, the study identifies e-banking and networking as the most significant predictors of
service quality, jointly explaining 24.4% of the variance in service quality at Centenary Bank. It is
important to note that other factors not considered in this study account for the remaining 75.6% of
the variance in service quality within the bank.

27
Tukundane Adonia, Nabaasa Rodgers, Val Hyginus Udoka Eze.
e-Banking and Customer Satisfaction in Commercial Banks: A Case of Centenary Bank Main Branch-Mapeera House of Uganda.
Journal of Humanities and Social Sciences, vol. 6, no. 1, pp. 14-30, April 2024. DOI: 10.36079/lamintang.jhass-0601.605

In light of the research findings, the following recommendations were made:

1. The model could only explain 24.4% in variance of service quality in centenary bank, it
recommended that a study be carried out consisting of other factors which were not part of the
model so as to predict service quality.
2. From the findings e-banking was found to be a significant predictor of service quality.
Therefore, the management of centenary bank should embrace e-banking in the delivery of
banking services as this will improve on service delivery and also reduce costs.
3. According to the findings, networking was found to be a strong predictor of service quality.
Therefore, the bank should draw a lot of emphasis on networking bank operations as this will
influence the consumer’s overall assessment of the utility of a network based on perceptions
of what is received and what is given.
4. The researcher recommends that a longitudinal study be carried out so as to study the factual
nature and quality of e-banking, networking, perceived value and service quality because it is
deemed more appropriate.

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