METROPOLITAN JOURNAL OF BUSINESS & ECONOMICS (MJBE)
ISSN 1813-4238
Vol. 2 Issue 5, August - 2023, Pages: 120-140
ELECTRONIC BANKING AND CUSTOMER SATISFACTION IN CENTENARY RURAL
DEVELOPMENT BANK, UGANDA
1 Asiimwe Babrah, 2 Dr Arinaitwe Julius, 3 Dr Ariyo Gracious Kazaara, Dr Omedo
Vincent
1, 2, 3, 4 Metropolitan International University
ABSTRACT
The study aimed at electronic banking and customer satisfaction in centenary rural
development bank, Uganda and it was guided by the following objectives; To
establish the relationship between e-funds transfer and customer satisfaction of
Centenary Bank, to examine the relationship between telephone banking and
customer satisfaction of Centenary Bank and to assess the relationship between
internet banking and customer satisfaction of Centenary Bank. The study population
consisted of 215 respondents (Centenary Bank human resource manual, 2015). These
consisted of 10 administrative bank managers and 120 lower bank officials using main
branch (Mapeera Building) and 85 customers. The administrators were chosen
because they were in charge of overseeing the implementation of the electronic
banking in the bank.
Findings of the study shown a moderate linear relationship (Multiple R = .188)
between internet banking and customer satisfaction of Centenary Bank. Going by the
adjusted R Square, it was shown that internet banking account for 16.7% change in
customer satisfaction of Centenary Bank. These findings were subjected to an ANOVA
test, which showed that the significance (Sig F = .001) of the Fishers ratio (F =
16.958) was greater than the critical significance at .05. Hence, the findings were
accepted. Trust building among the customers should be a major concern for
Centenary Bank while improving the usefulness of the system. In order to enhance
trust in internet banking, trust-creating activities must be continuously pursued.
Centenary Bank managers should develop a system that provides up to date and
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relevant financial information with good user interface consistency in order to
enhance trust. To counter the legal threat and security posed to net banking and e-
commerce, the necessary legal codes backing the industry must be established; this
will enhance the growth of the industry.
Key words: electronic banking, customers, banking industry and customer
satisfaction
Background of the Study
"World Payments Report (2017)" from a global perspective From 2015 to 2017, the
financial institution began to realize the unexpected consequences of the crisis. This
has led to some of the most difficult times in the financial industry. Consumer
confidence, which has been greatly affected by the negative effects of the financial
crisis, affects acceptance (Gracious, 2023). The decline in economic growth may be
affected by the growth of 1,000 banks around the world ("World Payments Report",
2017). The best growth rate for banks is expected to be 2.7% after falling twice in
the pre-crisis period from 2015 to 2017.
Another issue noted is impact and impact that impacts profitability and must be
managed to minimize and improve. Risk management achieved stability in the pre-
crisis period and grew by 3.8% between 2015 and 2017 (World Payments Report,
2017). This gives confidence to bank customers who need good financial services
(Eastburn & Sharland, 2017). The benefits of globalization and technology, especially
information technology (IT), have led to fast and timely fulfillment of customer
needs in international trade.
The entry and use of IT in the global economy grew 3.8% between 2015 and 2017,
generating a profit of US$63.6 billion (World Payments Report, 2017).
was defrauded for $135,000 which is approximately 250 Ugandan million shillings. In
addition, Centenary Bank continues to have problems with electronic banking fraud.
For example, criminals entered bank records in 2015, which showed that 10 billion
shillings were transferred electronically from the accounts of several customers to a
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special account at the Centenary Bank branch in Iganga (East African Business Week,
September 29, 2016). However, currently, stress does not translate into customer
satisfaction (Services et al., 2023). It seems that e-banking, such as e-transfer,
telephone banking and internet banking, is still being questioned.
Issue Statement No.
The emergence of electronic banking has had a major impact on the adoption of
international banking.
Centenary Bank in Uganda was one of the first banks to adopt electronic banking in
the form of ATMs, phones, credit cards and the web (Ansebo & Gaywala, 2022). These
measures are taken to improve various aspects such as customer satisfaction, repeat
purchases and loyalty to consumers in the form of increased customer referrals
(Nelson, Christopher, Teddy et al., 2022). However, this is not the case, and
Centenary Bank's customer satisfaction is still high, as evidenced by the progress in
the banking lobby, increased product complaints from users, ATM theft, congestion
and other indicators of customer dissatisfaction (Polikarp et al., 2023). ).
2015;
Centenary Bank customers reportedly lost more than 800 million UGX due to fraud
using ATMs (New Vision, 23 March 2016). Also, the Sh200 million UGX was stolen by
foreigners who did their best to get the password and the bank had to pay losses
(Centenary Bank Annual Report, 2015). In 2016, hackers hacked the bank's database
and created documents showing the electronic transfer of Sh10 billion from various
customer accounts to a specific account at the Iganga Centennial Bank branch
(Christopher et al., 2022). As further confirmation of the problem, customers may
also hear complaints about lines/questions, lack of communication and negative
questions.
These are all signs of low customer satisfaction (Daily Monitor, September 2, 2016).
To address this, Centennial Bank has implemented procedures to prevent complaints
and improve operations; but the problems persist. Therefore, failing to examine this
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issue will cause fewer customers to use Centenary Bank and will directly affect the
bank's income and profitability (Annet et al., 2023). Therefore, in this context, the
researchers chose to use the Commercial Bank of Uganda and Centenary Bank as a
case study to examine whether e-banking is related to people's consumer
satisfaction.
Objectives of the Study
• To establish the relationship between e-funds transfer and customer
satisfaction of Centenary Bank.
• To examine the relationship between telephone banking and customer
satisfaction of Centenary Bank.
• To assess the relationship between internet banking and customer satisfaction
of Centenary Bank.
Research Questions
• What is the relationship between e-funds transfer banking and customer
satisfaction of Centenary Bank?
• What is the relationship between telephone banking and customer satisfaction
of Centenary Bank?
• What is the relationship between internet banking and customer satisfaction
of Centenary Bank?
Hypotheses
• There is a relationship between e-funds transfer banking and customer
satisfaction of Centenary Bank.
• There is a relationship between telephone banking and customer satisfaction
of Centenary Bank.
• There is a relationship between internet banking and customer satisfaction of
Centenary Bank.
Methodology
Research Design
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This study adopted a correlation research design (Saris and Revilla, 2015). A
correlation research design refers to a quantitative research design involves two or
more quantitative variables from a similar group of subjects and it established the
relationship between the two variables as to whether they have anything in common
(Sekaran, 2016). Theoretically, any 2 quantitative variables could correlated (Amin,
2016). A correlation research design that was used in the study enabled the
researcher to find out the relationship between the studies variables (Sekaran,
2016). In addition, the study used a triangulation approach that included both
qualitative and quantitative approaches.
Study Population
The study population consisted of 215 respondents (Centenary Bank human resource
manual, 2015). These consisted of 10 administrative bank managers and 120 lower
bank officials using main branch (Mapeera Building) and 85 customers. The
administrators were chosen because they were in charge of overseeing the
implementation of the electronic banking in the bank. The lower bank officials were
chosen because they were aware of what took place in the bank and the impact of
the electronic banking on the bank performance. The customers were selected
because they were expected to express their taste and experiences of using
electronic banking at Centenary Bank.
Determination of the Sample Size
The researcher could not be able to access all the category of population, population
size, sample size, and Sampling techniques because of the time and resources.
Sampling tables were used and the sample determination were also be used, as
reflected in table below
Table 1: Sample size of Respondents and Sampling Technique
Category of Population Sample Size Sampling Technique
population size
Administrative staffs 10 5 Purposive Sampling
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Bank lower officials 120 92 Simple Random
Sampling
Customers 85 75 Purposive Sampling
Total 215 172
Source: Primary data (2015)
Sampling Techniques
The study was conducted using purposive and simple random sampling techniques.
Purposive sampling was used to select the administrative staff and customers as they
were key figures in relation to their knowledge of the matter that were studied
(Sekaran, 2016). Simple random sampling allowed equal representation of other
respondents to be part of the study as suggested by Mugenda and Mugenda (2017) and
these included the bank lower officials. The study respondents was divided up into
categories as described in table 1 above.
Data Collection Methods
Data was collected from primary sources. Qualitative and quantitative methods were
used in the collection of data. Primary data was collected using self-administered
questionnaires and interviews.
Data Analysis
Data analysis involved arranging, sorting and organizing data and later attached
meaning to create a sensible meaning that reflects the findings Patton (2017). The
study involved both quantitative and qualitative data and each analyzed in its form
as shown below.
Quantitative data analysis
The data was sorted as per its allocated codes and will be entered into a statistical
package known as E-views to generate both descriptive and inferential statistics that
will create the mean, mode and median, the implications in the study (Nelson et al.,
2023)
Qualitative data analysis
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Through use of content and thematic analysis, qualitative data was analyzed and the
findings were related to the study objectives and findings using Statistical Package
for Social Scientists (SPSS) (Nelson, Christopher, & Milton, 2022). The verbatim
captions was tabulated in shorter sentences and pulling out key words that explained
a certain phenomenon (Sekaran, 2016). These key words were used by the researcher
to explain the occurrences that the study found out to answer the concerns that
were raised in form of study objectives and answering the research questions.
RESULTS
Findings on customer satisfaction in Centenary Bank
To understand the level of perceived customer satisfaction in Centenary Bank,
questionnaires were used to capture responses and the findings are presented in
table 4.2 below:
Table 2: Descriptive Statistics on customer satisfaction in Centenary Bank
Percentage responses (%) Std.
1 2 3 4 5 Mean Deviation
The biggest number of
Centenary Bank
clients have come as a 5.2% 11.8% 5.2% 42% 35.5% 3.73 .700
result of improved banking
technology.
I have been banking with
centenary for
a relatively longer period 2.6% 3.9% 7.8% 59% 26.3% 4.00 .689
of time
Centenary Bank clients are
very much
determined to stay banking 1.3% 1.3% 31.5% 61.8% 3.9% 4.02 .507
with the bank
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Centenary Bank has created
a big clientele for the last 1.3% 1.3% 3.9% 71.8% 21.5% 4.07 .497
five years
Centenary bank is a 0% 0% 7.8% 50% 42.2% 4.11 .640
convenient bank
The bank’s market share
has improved for the last 0% 0% 2.6% 50% 47.3% 4.37 .639
five years
A number of referrals from
old clients have been
0% 0% 21.5% 37% 41.3% 4.43 .666
witnessed in centenary
bank.
The clientele of centenary
bank has been increasing 14.4% 9.2% 36.8% 28.9% 7.8% 4.44 .467
each and every year
Source: Primary data
Key
1=Strongly Disagree, 2=Disagree, 3=Not sure, 4=Agree and 5=Strongly Agree
The results in table 2 above showed that the mean of all the identified concepts
under customer satisfaction was above 3.5. This was based on the Likert 5 point scale
scores as shown on the key of the table. This thus, statistically meant that the
customer satisfaction of Centenary Bank was very promising. Among the items that
had means above 3.5 included; The clientele of centenary bank had been increasing
each and every year (4.44); A number of referrals from old clients have been
witnessed in centenary bank (4.43); The bank’s market share has improved for the
last five years (4.37); Centenary bank is a convenient bank (4.11); Centenary Bank
had created a big clientele for the last five years (4.07); Centenary Bank clients
were very much determined to stay banking with the bank (4.02); I have been
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banking with centenary for a relatively longer period of time (4.00); The biggest
number of Centenary Bank clients had come as a result of improved banking
technology (3.73).
The above findings suggested that Centenary Bank had a number of referrals, high
customer retention, positive word of mouth and customer loyalty was ranked high.
These were good indicators of prevailing customer satisfaction in Centenary bank
since the bank is reportedly convenient, increased market share of the bank,
increasing clientele annually.
Table 2: Descriptive Statistics on prevalence of E-Funds transfer in Centenary
Bank
Items Std
1 2 3 4 5 Mean Deviation
I.T Security at Centenary Bank
is not comprised by E-funds 1.3% 1.3% 3.9% 61.8% 31.5% 4.03 1.604
transfer
Centenary Bank has e-cheque
services available to all 0% 3.9% 9.2% 61.8% 25% 4.09 1.282
customers in this branch
Centenary Bank has both credit
3.9% 2.6% 6.5% 53.9% 34.2% 4.11 1.195
and debit cards for its clients
Inter-banking technology of 5.2% 5.2% 11.8% 42% 35.5% 4.18 1.506
Inter-switch is very efficient,
effective and convenient to all
customers.
Cashless banking is part of the
arrangements in Centenary 2.6% 3.9% 7.8% 59% 26.3% 4.21 1.926
Bank
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Centenary Bank has an
arrangement of
swapping money from one 0% 0% 2.6% 47.3% 50% 4.25 1.886
account to the other
Cases of bank fraud have
reduced as a result of 9% 6% 10.5% 45% 28.5% 4.30 1.165
introduction of technology.
Centenary Bank ATMs are
0% 10.5% 25.5% 36% 27% 4.31 1.76
always working 24hrs
Centenary Bank has enough
3% 3% 22.5% 40.5% 30% 4.37 1.309
ATMs that can serve all clients
Source: Primary data
Key
1=Strongly Disagree, 2=Disagree, 3=Not sure, 4=Agree and 5=Strongly Agree
From table 4.3 above, the mean of all the concepts identified is above 3.5.
Statistically, this is an implication that Centenary Bank had E-Funds transfer services.
The items that confirmed the above statistical claim included; Centenary Bank had
enough ATMs that can serve all clients (4.37); Centenary Bank ATMs are always
working 24hrs (4:31); Cases of bank fraud have reduced as a result of introduction of
technology (4.30); Centenary Bank has an arrangement of swapping money from one
account to the other (4.25); Cashless banking is part of the arrangements in
Centenary Bank (4.21); Inter-banking technology of Inter-switch is very efficient,
effective and convenient to all customers (4.18); Centenary Bank has both credit and
debit cards for its clients (4.11); Centenary Bank has e-cheque services available to
all customers in this branch (4.09); I.T Security at Centenary Bank is not comprised
by E-funds transfer (4.03).
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The above statements implies that Centenary Bank had credit card system for its
clients which has made it easy for a person to borrow and return money in time. The
Bank’s ATMs are always working 24hrs and these have made it easy for the bank to
increase on deposits made in the bank; Centenary Bank has an arrangement of
swapping money from one account to the other which has increased on cash available
in the bank and this was financially called liquidity. It can also be deduced that
Centenary Bank has enough ATMs that can serve all clients and these have reduced on
our operating costs.
Correlation results for E-Funds transfer and customer satisfaction
The first hypothesis stated, “There is a significant relationship between E-funds
transfer banking and customer satisfaction of Centenary Bank.” Spearman correlation
coefficient (r) was used to test the hypothesis. Table 7 presents the test results.
Regression results for E-Funds transfer and customer satisfaction
A further analysis was conducted using a regression to determine the relationship of
E-funds transfer banking services on customer satisfaction in Centenary Bank.
Findings are presented in Table 4.5, accompanied by analysis and interpretation.
Findings on adoption of Telephone Banking in Centenary Bank
To examine the relationship between telephone banking and customer satisfaction of
Centenary Bank, questionnaires and interview guides were used and the responses
were sought and presented as follows.
Table 3: Descriptive Statistics on telephone banking in Centenary Bank
Items Std
1 2 3 4 5 Mean Deviation
A customer can easily know
every kind of information
he/she needs by merely 17.1% 9.2% 34.2% 26.3% 21% 2.58 1.021
calling in the bank especially
if he/she has the bank codes
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Wireless banking has 25% 22.3% 26.3% 23.6% 6.5% 3.09 1.181
increased in Centenary Bank
financial services
Centenary Bank is installed on
with a computers information
11.8% 13% 5.2% 47.3% 22.3% 3.54 1.700
system that help the tellers in
their work
The bank provides 13% 7.8% 13% 38% 27.6% 3.55 1.689
information update about the
bank through SMS
A customer can now easily
check his/her bank account 7.8% 22.3% 2.6% 42% 25% 3.55 1.507
using his/her phone
A customer can now withdraw
his/her finances using his/her 15.7% 10.5% 0% 51.3% 22.3% 3.55 1.497
phone from the bank
Interactive Voice Response is
part of the banking services in 5.2% 21% 3.9% 35.5% 26.3% 3.58 1.578
Centenary Bank
Centenary Bank has in place
mobile banking for distant 14.4% 6.5% 11.8% 34.2% 30.2% 3.64 1.493
and busy customers
Centenary Bank has smart 7.8% 14.4% 9.2% 28.9% 36.8% 4.58 1.467
card systems in place
Tele-banking in Centenary
Bank allows customers to pay 0% 3.9% 5.2% 40.7% 50% 4.59 4.18
all their monthly bills
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With Centenary Bank, a
customer can now bank his
money using a cell-
phone at home 3.6% 4.8% 13.3% 32.4% 48% 4.63 2.823
Source: Primary data 2019
Key
1=Strongly Disagree, 2=Disagree, 3=Not sure, 4=Agree and 5=Strongly Agree
The results in table 3 below revealed that the means for most of the items were
above 3.5. It was found out that out of the 10-items that were introduced to
respondents, 8-items were indicated with a data mean above 3.5 and 2-items had
data means below 3.5. Based on the scale of 1-strongly disagree to 5-strongly agree,
any data mean of above 3.5 indicates existence of the variables understudy. This
thus, statistically means that telephone banking so far incorporated in Centenary
Bank. Among the items that had means above 3.5 included; With Centenary Bank, a
customer can now bank his money using a cell-phone at home (4.63); Tele-banking in
Centenary Bank allows customers to pay all their monthly bills (4.59); Centenary
Bank has smart card systems in place (4.58); Centenary Bank has in place mobile
banking for distant and busy customers (3.64); Interactive Voice Response is part of
the banking services in Centenary Bank (3.58); A customer can now withdraw his/her
finances using his/her phone from the bank (3.55); A customer can now easily check
his/her bank account using his/her phone (3.55); The bank provides information
update about the bank through SMS (3.55); Centenary Bank is installed on with a
computers information system that help the tellers in their work (3.54).
However, on the other hand, some of the respondents indicated that telephone
banking has not ably improved on customer satisfaction of Centenary Bank. For
instance, some of the items that confirm such a claim included; Wireless banking has
increased in Centenary Bank financial services (3.09); a customer can easily know
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every kind of information he/she needs by merely calling in the bank especially if
he/she has the bank codes (2.58). 46% of the interviewees still in congruence
indicated that Centenary Bank has smart card systems in place which has expanded
bank’s assets. 42% said that a customer can now withdraw his/her finances using
his/her phone from the bank and this has increased on bank’s net interest margin.
Correlation results on Telephone Banking and Customer Satisfaction
To test if telephone banking affects customer satisfaction in Centenary Bank, a
spearman rho correlation coefficient was done by the study and the results are
shown in table above.
Regression results for telephone banking and the customer satisfaction
Further analysis was conducted using a regression to determine the extent to which
telephone banking affect customer satisfaction of Centenary Bank. Findings are
presented in Table 4.8, accompanied with an analysis and interpretation.
Table 4: Model summary
Unstandardized Standardized
Model Coefficients Coefficients t Sig.
B Std. Error Beta
1 (Constant) 1.181 .347 3.401 .001
Telephone banking .669 .086 .315 3.263 .002
Dependent variable: customer satisfaction
R square F-
.356 a 125.666
statistics
Adjusted R Square .290 Sig. 0.01
Findings in Table 3 show a strong linear relationship (Multiple R = .656) between
telephone banking and customer satisfaction of Centenary Bank. Going by the
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adjusted R Square, it is shown that telephone banking account for 29% change in
customer satisfaction of Centenary Bank. These findings were subjected to an ANOVA
test, which showed that the significance (Sig F = .001) of the Fishers ratio (F =
125.666) was less than the critical significance at .05. Hence, the findings were
accepted.
Findings on adoption of Internet banking in Centenary Bank
To understand whether Centenary Bank had adopted internet banking, responses
from respondents were captured using questionnaire and interview guides and are
presented as follows:
Table 5: Descriptive Statistics on adoption of internet banking in Centenary Bank
Items Std
1 2 3 4 5 mean Deviation
The bank provides information
update about the bank
10.5% 14.4% 30.2% 26.3% 18.4% 3.28 1.331
through email alerts to its
customers
The bank’s website is 7.8% 17.1% 28.9% 27.6% 18.4% 3.33 1.141
operational 24hrs a day
Customer can now print their
10.5% 13% 31.5% 22.3% 22.3% 3.42 1.133
account statement online
Centenary Bank Allows intra-
Banks Account to Account 13%
15.7% 3.9% 39.4% 19.7% 3.54 1.107
Transfer using internet
Centenary Bank also allows to
9.2% 10.5% 11.8% 43.4% 25% 3.57 .588
download account transactions
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using your email
Our internet banking is free 21% 21% 6.5% 38% 13% 3.70 .506
from security risks
I have heard no account
compromised in
6.5% 6.5% 7.8% 50% 28.9% 4.01 .483
Centenary Bank through
internet
All bank services can be 3.9% 3.9% 7.8% 52.6% 31.5% 4.12 .464
accessed online
There are no problems in
networks regarding internet 2.6% 2.6% 6.5% 53.9% 34.2% 4.14 .433
banking
It is easy to make third party
payments and others bills 0% 5.2% 16.6% 44% 33.1% 4.22 .476
online in Centenary Bank
Source: Primary data
Key
1=Strongly Disagree, 2=Disagree, 3=Not sure, 4=Agree and 5=Strongly Agree
The results in table 5 above revealed that the means for most of the items were
above 3.5. It was found out that out of the 12-items that were introduced to
respondents, 7-items were indicated with a data mean above 3.5 and 3-items had
data means below 3.5. Based on the scale of 1-strongly disagree to 5-strongly agree,
any data mean of above 3.5 indicates existence of the variables understudy. This
thus, statistically means that internet banking had been adopted by Centenary Bank.
Among the items that had means above 3.5 included; It is easy to make third party
payments and others bills online in Centenary Bank (4.22); There are no problems in
networks regarding internet banking (4.14); All bank services can be accessed online
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(4.12); I have heard no account compromised in Centenary Bank through internet
(4.01); Our internet banking is free from security risks (3.70); Centenary Bank also
allows to download account transactions using your email (3.57); Centenary Bank
Allows intra-Banks Account to Account Transfer using internet (3.54).
Correlation results on internet banking and customer satisfaction of Centenary
Bank:
To test if internet banking had an influence on customer satisfaction of Centenary
Bank, a spearman rho correlation coefficient was done by the study and the results
are shown in Table 4.10 below.
Table 6: Correlation results
Internet
banking Customer
satisfaction
Spearman's Internet banking Correlation
1.000 .276
rho Coefficient
Sig. (2-tailed) . .041
N 149 149
Customer satisfaction Correlation
.276 1.000
Coefficient
Sig. (2-tailed) .041 .
N 149 149
Correlation is significant at the 0.05 level (2-tailed).
Findings show that there was a moderate positive correlation between internet
banking and customer satisfaction. These findings were subjected to a test of
significance (p) and it is shown that the significance of the correlation (p = .041) is
less than the recommended critical significance at 0.05. Thus, the relationship was
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significant. The implication of these findings is that internet banking has a positive
relationship with customer satisfaction of Centenary Bank. The positive relationship
implied that a change in internet banking can contribute to customer satisfaction of
Centenary Bank. The positive nature of the relationship implied that managers in
Centenary Bank needs to ensure that internet banking is fully installed and
implemented if customer satisfaction of Centenary Bank is to improve and vice versa.
Regression results for internet banking and the customer satisfaction of
Centenary Bank
Further analysis was conducted using a regression to determine the influence of
internet banking on customer satisfaction of Centenary Bank. Findings are presented
in Table 7, accompanied with an analysis and interpretation.
Table 7: Model summary
Unstandardized Standardized
Coefficients Coefficients
Model B Std. Error Beta t Sig.
1 (Constant) -.073 1.134 -.064
.94
9
Internet banking .172 .255 .259 2.638
.01
0
Dependent variable: customer satisfaction
R square F
.188 a 16.958
statistics
Adjusted R Square .167 Sig. 0.001
Source: Primary data
Findings in Table 7 show a moderate linear relationship (Multiple R = .188) between
internet banking and customer satisfaction of Centenary Bank. Going by the adjusted
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R Square, it is shown that internet banking account for 16.7% change in customer
satisfaction of Centenary Bank. These findings were subjected to an ANOVA test,
which showed that the significance (Sig F = .001) of the Fishers ratio (F = 16.958) was
greater than the critical significance at .05. Hence, the findings were accepted.
Conclusions
It was established that Centenary Bank has credit card system for its clients which
has made it easy for a person to borrow and return money in time. The Bank’s ATMs
are always working 24hrs and these have made it easy for the bank to increase on
deposits made in the bank; Centenary Bank has an arrangement of swapping money
from one account to the other which has increased on cash available in the bank and
this is financially called liquidity. It can also be deduced that Centenary Bank has
enough ATMs that can serve all clients and these have reduced on our operating
costs. Issues to do with bank fraud were reported to have reduced as a result of ATM;
and by adopting the E-funds transfer, the security of the bank is not compromised
but has increased on number of clients.
Still, it was found out that by adopting e-cheque services, the bank has increased on
its liquidity levels and Centenary Bank has debit cards for its clients which have
increased on the number of clients joining Centenary Bank.
Recommendations
Trust building among the customers should be a major concern for Centenary Bank
while improving the usefulness of the system. In order to enhance trust in internet
banking, trust-creating activities must be continuously pursued. Centenary Bank
managers should develop a system that provides up to date and relevant financial
information with good user interface consistency in order to enhance trust. To
counter the legal threat and security posed to net banking and e-commerce, the
necessary legal codes backing the industry must be established; this will enhance the
growth of the industry.
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