Divine Word International Journal of Management and Humanities 4(2)(2025) 1506-1523

Research in Management and Humanities

DWIJMH VOL. 4 NO. 2 (2025) ISSN: 2980-4817

Available online at www.dwijmh.org

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ORCID ID: https://orcid.org/0000-0001-6884-3504

The e-banking service quality and customer satisfaction:

Evidence from Dipolog City
Chrishelle Mae A. Canda: Accountant, Jose Rizal Memorial State University, Dapitan Campus,
Dapitan City, Philippines
Leo C. Naparota: Dean, School of Criminal Justice Education and College of Arts and Sciences,
Dipolog City, Philippines

ARTICLEINFO ABSTRACT

This study aimed to determine the e-banking service quality and its effects on the satisfaction of
Article history: customers in the Dipolog City banking sector during the calendar year 2023. It utilized descriptive
survey and correlational research methods. There were three hundred twenty-seven (327) randomly
Received: April 10, 2025
selected respondents in this study. Weighted mean and Spearman Rank-Order Correlation
Received in rev. form. April 30, 2025 Coefficient were the statistical tools used in the study. The e-banking service quality in Dipolog
Accepted May 25, 2025 City is “high”. The e-banking customer satisfaction in Dipolog City is “very high.” The levels of
e-banking service quality and customer satisfaction are largely/highly and positively correlated.
Published: June, 20, 2025
Based on the findings and conclusions of the study, it is recommended that the Bangko Sentral ng
Pilipinas (BSP), the Department of Finance, and the Banking Industry of the Philippines utilize the
Keywords: e-banking, service findings of this study as the basis for formulating a policy that will further improve the level of e-
quality, customer satisfaction, banking service quality and sustain the level of customer satisfaction.
Dipolog City, Philippines
.
© 2025 by the authors. Licensee DWIJMH. This open-access article is distributed under the
JEL Classification: M15 terms and conditions of the Creative Commons Attribution-NonCommercial-ShareAlike 4.0
International License (https://creativecommons.org/licenses/by-nc-sa/4.0/)

Introduction
E-banking, also known as electronic banking, began to take shape in the mid-1970s. This concept
involved conducting financial transactions electronically between individuals, organizations,
companies, and their banking institutions. However, it wasn’t until 1985 and beyond that e-
banking gained significant traction (Worland & Williams, 2015). As a critical component of
modern banking, the use of online and mobile banking has steadily increased worldwide, with
Asian countries leading as the largest market for e-banking. According to global data from
Statista (2017), approximately 20% of the world’s population visits banks in person, meaning
about 80% of the population uses and has access to internet banking.

* Corresponding author. ORCID ID: 0000-0001-6884-3504

© 2025 by the authors. Hosting by DWIJMH. Peer review under
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and Humanities.
 Abun et al.,Divine Word International Journal of Management and Humanities 4(2)(2025) 1506-1523

In the Philippines, e-banking has evolved over time, and its formal recognition as a distinct
category within the banking sector is relatively recent. A key milestone occurred on November
26, 2020, when the Bangko Sentral ng Pilipinas (BSP) approved a framework that officially
classifies digital banks separately from traditional banks. This marked the formal recognition of
digital banks in the Philippine banking industry ("The Philippine banking industry’s digital era
begins," The Manila Times, 2021). The Philippine government’s focus on digitalization and
financial inclusion continues to shape the country’s banking landscape and economic
development. According to Benjamin Diokno, former BSP Governor and former Secretary of the
Department of Budget and Management (DBM), the government’s push for digitalization aims
to reinvent industries, improve public service delivery, create employment opportunities, and
expand access to financial products and services, which is essential for the long-term recovery of
the Philippine economy. Diokno highlighted the importance of service innovation, particularly
commending the development of the country’s first mobile, human-assisted remote banking
service, RCBC Moneybela Barangayan Banking. This service blends physical and digital
elements to provide access to basic banking services, such as deposit account creation, bill
payments, e-load, cash-in/cash-out, micro-insurance, and telemedicine, to previously
underserved communities via sustainable e-tricycles.

Secretary Diokno’s focus on innovation aligns with the Philippine government’s broader thrust
for digital transformation, which is reflected in initiatives like the eGov PH project. This
initiative, which began with the creation of the National Computer Centre in 1971, aims to
simplify transactions between the government and citizens by integrating various government
sectors into a one-stop online platform. The eGov PH mobile application reduces economic costs
for citizens and enhances convenience in government services ("Evolution of e-government in
the Philippines," n.d.).

The Philippine government's ongoing digitalization efforts are creating a dynamic landscape for
the banking industry, fostering innovation, accessibility, and financial inclusion. To remain
competitive and meet the evolving needs of customers, banks must adapt to these changes by
exploring new methods of delivering banking services (Puriwat & Tripopsakul, 2017).
Leveraging the benefits of digital technology, such as line-based and mobile internet
connectivity, both public and private sectors in the Philippine banking industry have either
enhanced or launched new online platforms.

The primary objective of this research was to investigate the impact of e-banking service quality
on customer satisfaction within the Dipolog City banking sector. Studies by Hammoud et al.
(2018) and Ismail Hussien & Abd El Aziz (2013) demonstrated a significant and positive
relationship between e-banking service quality and customer satisfaction, highlighting the
importance of this relationship. Additionally, Puriwat and Tripopsakul (2017) provided evidence

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that electronic service quality significantly enhances mobile banking customer satisfaction and
loyalty.

Previous studies on this topic mainly employed qualitative approaches and were limited to
customers of private banks. In Dipolog City, both private and government sector banks have
adopted e-banking services to improve customer satisfaction by reducing waiting times, issues,
and costs. This study aims to address gaps in the existing literature regarding e-banking service
quality and customer satisfaction, a topic that has recently gained attention in other research
disciplines (Puriwat & Tripopsakul, 2017; Hammoud et al., 2018; Romero et al., 2022). By using
a quantitative approach, this research seeks to bridge the methodological gap and determine the
significant relationship between e-banking service quality and customer satisfaction.

Literature review
E-banking service quality
Technology improvements in the banking sector have given rise to e-banking services, which
give customers absolute control over their account in terms of receipt and payment (Sathiyavany
& Shivany, 2015). Singh (2023) defined e-banking as the practice of providing banking services
to clients electronically, either at their place of business or house. E-banking has three
distinguishing features: self-service technology, the absence of a human interface, and the
modernization of operations (Omofowa et al., 2021). Due to quick advancements in worldwide
technology, e-banking financial services have proliferated among clients and banks' long-term
management capabilities (Asare & Sakoe, 2015), while intensifying the competition among banks
(Hammoud et al., 2018). According to Drigă and Isac (2014), the banking industry has been more
competitive in recent years, and banks are adopting unique tools and approaches to maintain
customer retention and satisfaction, with e-banking being one of them.

Technology development, particularly in the area of e-banking, is shifting the way banks operate
and conduct transactions. E-banking has created changes of trade volume; the interconnection
between banks, firms, and customers has levered business transaction from the domestic to the
international landscape; therefore, the relationship has encouraged the ongoing revolution within
the banking industry (Omofowa et al., 2021). The technological innovation has also leveled the
playing field in the banking industry by creating value for both banks and customers in that it
enables customers to perform banking transactions without having to visit a physical bank. These
innovations include internet banking, mobile banking, automated teller machines (ATMs), POS
terminals (point of sale), and any online banking service popularly referred to as e-banking
(Khan, 2017).
Efficiency
An e-banking system that is efficient and easy to navigate contributes to overall customer
satisfaction. The study of Hammoud et al. (2018) considered efficiency as among the dimensions

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related to e-banking service quality. Conducted in the Lebanese banking sector, the study stated
that website efficiency is the key to measuring the quality of internet banking service, showing
that there is a significant positive trend between efficiency and customer satisfaction. A study
was also conducted by Shanmugam and Chandran (2022) in Chennai City, Tamil Nadu, India,
which showed that commercial banks compete by using the research and development wing of
the service quality dimensions to provide speedy electronic banking services at the lowest cost.
This further shows that efficiency is viewed by commercial banks' as initiatives for enhancing
game service quality to provide the highest level of satisfaction for their stakeholders.

Reliability
Apornak (2017) defines the reliability dimension as a component of a study devoted to the
examination and assessment of the information system by IT experts both inside and outside the
financial sector. In their scientific study titled "Service quality and customer satisfaction in
private banking" at the University of Huánuco, Peru, Aranda et al. (2020) determined that
reliability is a very important factor in achieving a positive impact on customers, as loyalty and
a lasting relationship with users depend on it. Reliability also enhances customer loyalty to e-
banking (Alvarez-Garcia et al., 2019) and has a positive and crucial influence on customer
satisfaction (Pakurár et al., (2019). A reliable system ensures efficient transaction processing,
timely access to information, and consistent service delivery (Hammoud et al., 2018).
Security and privacy
Security and privacy has a positive and significant effect on customer satisfaction with reliability
being the dimension with the strongest impact (Hammoud et al., 2018). Mwiya et al. (2022)
indicated that security, website attributes, privacy, responsiveness, efficiency, fulfillment, and
reliability are indeed relevant to electronic service quality, and they affect customer satisfaction
positively. Privacy and security are the strongest significant predictors of customer satisfaction
and loyalty (Yohannes, n.d.). In line with this, other researchers also revealed that there is a
statistically significant association between the service quality dimension and customer
satisfaction concerning e-banking services (Sharma et al., 2020).

Responsiveness and communication

According to Raza et al. (2020), responsiveness-oriented responsibility is one of the most crucial
criteria for assessing service quality in the banking industry. Responsiveness is a factor in
responding to consumer needs; this can be in the form of being swift in managing guarantees,
returning goods, and refunds (Hansopaheluwakan, 2021). The study of Avania and Widodo
(2022) also found that e-banking enhances overall service quality by providing quick access to
account information, transaction history, and other services. The availability of e-banking
services has the potential to boost income, lower usage and operating expenses, decrease late
payments, expedite customer service, and offer service that is more responsive.

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Communication entails the interchange of important, timely data between purchasers and
vendors, both formal and informal. "Personalized letters, direct mail, website interactions, other
machine-mediated interactions, e-mail, or in-person communication with service personnel
before, during, and after service transactions" are all forms of communication. During the pre-
selling, selling, consuming, and post-consuming stages, communication has emerged as an
interactive dialogue between the corporation and its clients. The communication description also
includes communication between the client and the service provider (Qasem & Alhakimi, 2019).
All service quality dimensions, including responsiveness and communication positively and
significantly influence customer satisfaction. In other words, when Internet banking services
exhibit high responsiveness and effective communication, customers tend to be more satisfied
with their online banking experience (Raza et al., 2020).

Customer satisfaction
Satisfaction is the sense of contentment that arises when the benefits derived from goods or
services align with the initial expectations of customers. Customers, who feel that their needs are
satisfied by the company, will tend to repeat their transactions at a later date in the same place,
and if this is well maintained,a sustainable competitive advantage will be created. (Worland &
Williams, 2015)According to Kotler and Keller (2016), satisfaction is a person's feeling of
pleasure or disappointment resulting from comparing the product's perceived performance (or
results) with expectations. That is, if it exceeds expectations, consumers are satisfied or happy.
The study of Beyene (2019) found a significant positive relationship between service quality and
customer satisfaction. The study suggests that improving service quality can enhance overall
customer satisfaction, leading to increased loyalty and positive word-of-mouth.

Customer satisfaction is when online products and services exceed customer expectations and
exceed consumer satisfaction after comparing previous purchase experiences and can also exceed
online purchasing experiences (Junardi, 2019). Customers' e-satisfaction is defined as the
customer's contentment with respect to his or her prior purchasing experience with a given
electronic commerce firm (Tharanikaran et al., 2017). In other words, e-satisfaction is described
as customer satisfaction that comes from a previous real purchase experiences with certain
electronic companies (Hansopaheluwakan, 2021). Customer satisfaction is regarded as the most
important factor in an organization's competitiveness. Customer happiness has become a
significant consideration for businesses that provide services online. Customer satisfaction is a
concept that is much broader than just assessing the quality of services, but is also influenced by
other factors, namely: product quality, price, situational factors,and personal factors of the
consumers themselves (Josua et al., 2017).

Conceptual framework
The conceptual framework is presented in Figure 3. First, the independent variable which is the e-banking
service quality with indicators categorized into efficiency, reliability, security and privacy, and
responsiveness and communication. Second, the dependent variable is the customer satisfaction.

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INDEPENDENT VARIABLE DEPENDENT VARIABLE

E-Banking Service Quality

• Efficiency
• Reliability Customer Satisfaction
• Security and privacy
• Responsiveness and
Communication
Hammoud, J., Bizri, R. M., & El Baba, I. (2018) Hammoud, J., Bizri, R. M., & El Baba, I. (2018).

Figure 1: the framework reflects a correlation between e-banking service quality and customer
satisfaction. The study intends to examine the influence of e-banking service quality and
customer satisfaction.

Statement of the problem

This study aimed to determine the e-banking service quality and its effects on the satisfaction of
customers in the Dipolog City banking sector during the calendar year 2023. Specifically, it
sought to answer the following questions:

1. What is the respondents’ perceived level of e-banking service quality in terms of:
2.1 efficiency;
2.2. reliability;
2.3 security and privacy; and
2.4 responsiveness and communication

2. What is the respondents’ perceived level of satisfaction?

3. Is there a significant relationship between the perceived level of e-banking service quality
and the perceived level of satisfaction of the respondents?

Hypothesis
Numerous studies have demonstrated the significant influence of e-banking service quality and
the perceived level of satisfaction (Hammoud, J., Bizri, R. M., & El Baba, I. 2018; Sharma, Singh,
& Singh, 2020; Juwitasary, Christian, Putra, Baskara, & Firdaus, 2020) . Building on this
research, the current study seeks to explore the effect of e-banking service quality on customer
satisfaction.
Scope and delimitation of the study
This study is limited to determining the e-banking service quality and customers’ satisfaction of
the banking sectors in Dipolog City during the calendar year 2023. The respondents of the study
were limited to the 327 randomly selected customers of e-banking in Dipolog City, Zamboanga

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del Norte. The respondents came from various regions across the Philippines and outside the
country. The researcher also limited its scope to four indicators of e-banking service quality as
independent variables, namely, efficiency, reliability, security and privacy, and responsiveness
and communication. Other descriptors of e-banking service quality and customers’ satisfaction
may exist, but this study focused on the ones listed above. Furthermore, the customer satisfaction
as the dependent variable in this study were limited to five (5) items.

Research methodology
This study employed survey and correlational research methods. The survey method was used to
collect data through a questionnaire, profiling respondents' demographics, perceived E-banking
service quality, and customer satisfaction (Creswell & Guetterman, 2019). Correlational analysis
was then conducted to examine the statistical relationship between E-banking service quality and
customer satisfaction (Bhat, 2019).
Research design
This study utilized a quantitative, non-experimental research design, specifically employing
descriptive survey and correlational approaches. The descriptive survey design was used to gather
data on respondents’ demographic profiles, perceptions of E-banking service quality, and levels
of customer satisfaction. Meanwhile, the correlational design examined the statistical relationship
between E-banking service quality and customer satisfaction, without manipulating any
variables. This design was appropriate for identifying patterns and associations between variables
in a real-world setting.

The locale of the study

The respondents of the study were randomly selected customers of e-banking in Dipolog City,
Zamboanga del Norte. The respondents came from various regions across the Philippines and
outside the country.
Population
The respondents of the study were 327 randomly selected customers of e-banking in Dipolog
City, Zamboanga del Norte. The respondents came from various regions across the Philippines
and outside the country.
Data gathering instruments
The researcher gathered data through a questionnaire to profile the respondents' demographic
variables, including the level of E-banking service quality and customer satisfaction. A
correlational analysis was performed to determine the significant relationship between E-banking
service quality and customer satisfaction.

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Data gathering procedures

The researcher secured permission and clearance from the Dean of the graduate school and the
Ethics Committee of Andres Bonifacio College. The researcher also distributed an informed
consent form to the individual respondents along with the research questionnaires.
Confidentiality was ensured and the respondents’ identities were protected. Designated
customers’ representatives assisted in this process.
Ethical approval
The study underwent an ethical review and was approved to proceed, as it did not involve any
sensitive issues.

Statistical treatment of data

The data gathered from the questionnaires were encoded and analyzed using statistical tools.
Descriptive statistics, including frequency, percentage, mean, and standard deviation, were used
to summarize respondents’ demographic profiles, the level of E-banking service quality, and
customer satisfaction. To determine the relationship between E-banking service quality and
customer satisfaction, the study employed Pearson Product-Moment Correlation Coefficient
(Pearson r). This inferential statistical tool measured the strength and direction of the linear
relationship between the two variables. A significance level of 0.05 was set to determine the
statistical significance of the results.

The following ranges of values with their descriptive interpretation will be used:
E-Banking Service Quality
Scale Range of Values Description Interpretation
5 4.21-5.00 Strongly agree Very High
4 3.41-4.20 Agree High
3 2.61-3.40 Somewhat Agree Average
2 1.81-2.60 Disagree Low
1 1.00-1.80 Strongly Disagree Very Low

Customer Satisfaction
Scale Range of Values Description Interpretation
5 4.21-5.00 Strongly agree Very High
4 3.41-4.20 Agree High
3 2.61-3.40 Somewhat Agree Average
2 1.81-2.60 Disagree Low
1 1.00-1.80 Strongly Disagree Very Low

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Data presentation and analysis

The data are presented following the statement of the problems of the current study. The study
aimed to answer the following questions:

1. What are the respondents’ perceived level of e-banking service quality in terms of:
1.1 efficiency;
1.2. reliability;
1.3 security and privacy; and
1.4 responsiveness and communication

Table 1. Perceived level of e- banking service quality in terms of efficiency

A. Efficiency Mean SD Description Interpretation
1. The use of E-Banking services
4.61 0.57 Strongly Agree Very High
are time saving.
2. The service delivered through
4.47 0.60 Strongly Agree Very High
the E-Banking services is quick.
3. I can complete quickly any
transaction through the E- 4.35 0.67 Strongly Agree Very High
Banking service channels.
4. I found that E-Banking service
4.47 0.65 Strongly Agree Very High
is easy to use.
5. E-Banking services are
4.22 0.82 Strongly Agree Very High
provided in various languages
6. Learning to operate the E-
4.29 0.73 Strongly Agree Very High
Banking system is easy for me.
7. My interaction with the E-
Banking system is clear and 4.35 0.67 Strongly Agree Very High
understandable
8. I find the E-Banking system to
4.44 0.66 Strongly Agree Very High
be flexible to interact with.
Overall 4.40 0.53 Strongly Agree Very High
Source: Hammoud, J., Bizri, R. M., & El Baba, I. (2018)

Table 1 highlights the respondents' perceptions of e-banking service quality, particularly in terms
of efficiency. The results show that respondents "strongly agree" with several key aspects of e-
banking, such as the time-saving nature of the service, the speed of transactions, the ease of use,
the flexibility of the system, and the clarity of interactions with the e-banking platform. They also
reported that completing transactions through e-banking channels is quick, learning to use the
system is straightforward, and services are available in multiple languages. Overall, e-banking
service quality in terms of efficiency earned an impressive mean score of 4.40 with a standard

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deviation of 0.53, which translates to a "strongly agree" rating and is interpreted as "very high."
This indicates that, from the respondents' perspective, e-banking service quality in Dipolog City
is exceptionally high. As Hammoud et al. (2018) pointed out, the efficiency of a website is a
critical factor in assessing the quality of internet banking services, as seen in the Lebanese
banking sector.

Table 2. Perceived level of e-banking service quality in terms of reliability

B. Reliability Mean SD Description Interpretation
1. I have high confidence in the E-
4.11 0.76 Agree High
Banking services in the bank
2. E-Banking service is reliable and
4.11 0.77 Agree High
dependable.
3. E-Banking services perform the
service for me right on the first 4.15 0.78 Agree High
time.
4. I have always found E-Banking
4.09 0.81 Agree High
service channels in working order.
5. I prefer using E-Banking
services instead of visiting the 4.27 0.83 Strongly Agree Very High
branch in doing my transactions.
Overall 4.14 0.67 Agree High
Source: Hammoud, J., Bizri, R. M., & El Baba, I. (2018)

Table 2 portrays the perceived level of e-banking service quality in terms of reliability. The data
asserts that the respondents “strongly agree” that they prefer using e-banking services instead of
visiting the branch to do transactions. They “agree” that e-banking services perform the service
right the first time, have high confidence in the e-banking services, service is reliable and
dependable, and have always found e-banking service channels in working order. Overall, e-
banking service quality in terms of reliability yields a mean of 4.14 with a standard deviation of
0.67 which is described as “agree” and interpreted as “high”. This entails that e-banking service
quality in Dipolog City is “high” as perceived by the respondents. This finding is important
because Aranda et al. (2020) stated that reliability is a very important factor in achieving a
positive impact on customers since loyalty and a lasting relationship with users depend on it.
Pakurár et al. (2019) also averred that reliability positively and crucially influences customer
satisfaction.

Table 3 Perceived level of e-banking service quality in terms of security and privacy
C. Security and Privacy Mean SD Description Interpretation
1. E-Banking services do not allow
4.30 0.76 Strongly Agree Very High
others to access my accounts.

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2. E-Banking service provides high

protection for my banking 4.17 0.80 Agree High
transactions.
3. E-Banking service is secured and
3.87 0.92 Agree High
safe from any fraud or hacking.
4. The security devices of the E-
Banking services protect the data 4.15 0.77 Agree High
that are sent by me.
5. E-Banking services offer secure
4.20 0.78 Agree High
personal privacy.
6. I feel secure while making
3.89 0.89 Agree High
transactions through the Internet.
7. My E-Banking site does not share
my personal information with other 4.17 0.80 Agree High
sites.
Overall 4.11 0.71 Agree High
Source: Hammoud, J., Bizri, R. M., & El Baba, I. (2018)

Table 3 presents the perceived level of e-banking service quality in terms of security and privacy.
The data shows that respondents "strongly agree" that e-banking services prevent unauthorized
access to their accounts. Additionally, they agree that e-banking platforms ensure secure personal
privacy, provide robust transaction protection, refrain from sharing personal information, employ
security devices to protect data sent to customers, and make online transactions safe from fraud
or hacking. Overall, e-banking service quality in terms of security and privacy received a mean
score of 4.11 with a standard deviation of 0.71, which is categorized as "agree" and interpreted
as "high." This indicates that, from the respondents' perspective, e-banking services in Dipolog
City offer a high level of security and privacy. This finding aligns with the work of Hammoud et
al. (2018) and Mwiya et al. (2022), who highlighted that factors such as security, privacy,
responsiveness, efficiency, fulfillment, and reliability are crucial elements of electronic service
quality and positively influence customer satisfaction.

Table 4 Perceived level of e-banking service quality in terms of responsiveness and

communication
D. Responsiveness and
Mean SD Description Interpretation
Communication
1. E-Banking services are available
4.27 0.75 Strongly Agree Very High
24/7.
2. E-Banking services respond
4.06 0.80 Agree High
immediately to clients’ requests.

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3. Help is immediately available if

3.91 0.89 Agree High
there is any problem.
4. E-Banking services provide
4.05 0.77 Agree High
answers to your questions.
5. Bank deals gently with customer
complaints about electronic 4.07 0.79 Agree High
service.
Overall 4.07 0.65 Agree High
Source: Hammoud, J., Bizri, R. M., & El Baba, I. (2018)

Table 4 presents the perceived level of e-banking service quality in terms of responsiveness and
communication. The results reveal that respondents "strongly agree" that e-banking services are
available 24/7. Additionally, respondents "agree" that the bank handles customer complaints
about electronic services with care, responds promptly to client requests, provides timely answers
to questions, and offers immediate assistance if any problems arise. Overall, e-banking service
quality in terms of responsiveness and communication received a mean score of 4.07 with a
standard deviation of 0.65, which indicates a "high" level of service. This suggests that, in
Dipolog City, e-banking services are highly responsive and communicative. This can be
attributed to the availability of reliable internet connectivity in the area, which enables the bank
to promptly address customer concerns and requests. Raza et al. (2020) emphasized that
responsiveness is a key factor in evaluating service quality in the banking industry, while
Hansopaheluwakan (2021) supported this by noting that responsiveness is crucial in addressing
customer needs. Additionally, Avania and Widodo (2022) highlighted that the availability of e-
banking services can boost income, reduce operational costs, minimize late payments through
electronic transfers, speed up customer service, and enhance overall service responsiveness.

Table 5 Summary of the perceived level of e-banking service quality

E-Banking Service
Mean SD Rank Description Interpretation
Quality
A. Efficiency 4.40 0.53 1 Strongly Agree Very High
B. Reliability 4.14 0.67 2 Agree High
C. Security and Privacy 4.11 0.71 3 Agree High
D. Responsiveness
4.07 0.65 4 Agree High
and Communication
Overall 4.18 0.53 Agree High
Source: Hammoud, J., Bizri, R. M., & El Baba, I. (2018)

Table 5 provides a summary of the perceived level of e-banking service quality. The results show
that e-banking service quality in terms of efficiency received the highest rating, followed by
reliability, security and privacy, and responsiveness and communication. This indicates that the

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efficiency of e-banking services in Dipolog City is perceived as "very high," while reliability,
security and privacy, and responsiveness and communication are rated as "high." Overall, the e-
banking service quality in Dipolog City is considered "high," with a mean score of 4.18 and a
standard deviation of 0.53. This finding aligns with the work of Sarande et al. (2022), who also
reported that service quality in banking institutions is high.

2. What is the respondents’ perceived level of satisfaction?

Table 6 Perceived level of customer satisfaction

Customer Satisfaction Mean SD Description Interpretation
1. I am satisfied with the
transaction processing via 4.30 0.67 Strongly Agree Very High
E-Banking services.
2. I think I made the correct
decision to use the E-Banking 4.32 0.69 Strongly Agree Very High
services.
3. My satisfaction with the
4.22 0.77 Strongly Agree Very High
E-Banking services is high.
4. I am satisfied with the bank’s e-
4.27 0.69 Strongly Agree Very High
service quality.
5. Overall, E-Banking services is
4.29 0.69 Strongly Agree Very High
better than my expectations.
Overall 4.28 0.63 Strongly Agree Very High
Source: Hammoud, J., Bizri, R. M., & El Baba, I. (2018)

Table 6 illustrates the perceived level of customer satisfaction with e-banking services in Dipolog
City. The data reveals that respondents "strongly agree" with several key statements: they feel
confident in their decision to use e-banking services, they are satisfied with the transaction
processing, and they believe the overall services exceed their expectations. With a mean score of
4.28 and a standard deviation of 0.63, the respondents "strongly agree" that they are "very highly"
satisfied with e-banking services in Dipolog City. This result highlights that the quality of e-
banking services in the city's banking sector is excellent. This finding is particularly significant,
as Josua et al. (2017) emphasized that customer satisfaction is a crucial factor in an organization's
competitiveness.

3. Is there a significant relationship between the perceived level of e-banking service quality
and the perceived level of satisfaction of the respondents?

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Table 7 Test of relationship between the perceived levels of e-banking service quality and
customer satisfaction
E-Banking Service ρ-value Customer Interpretation
Quality and Satisfaction
p-value
p-value 0.558 Large/High Positive Correlation
Efficiency p-value <0.01 Significant
Reliability p-value 0.609 Large/High Positive Correlation
p-value < 0.01 Significant
Security and Privacy p-value 0.590 Large/High Positive Correlation
p-value < 0.01 Significant
Responsiveness & p-value 0.588 Large/High Positive Correlation
Communication p-value < 0.01 Significant
Overall p-value 0.612 Large/High Positive Correlation
p-value < 0.01 Significant
Source: Hammoud, J., Bizri, R. M., & El Baba, I. (2018)

Table 7 portrays the test of the relationship between the perceived levels of e-banking service
quality and customer satisfaction. Using the Spearman Rank-Order Correlation coefficient
(Spearman rho), the result avers that there exists a significantly large/high positive correlation
(ρ=0.612, p=< 0.01) between the levels of e-banking service quality and customer satisfaction.
Thus, the null hypothesis is rejected. This finding indicates that as the level of e-banking service
quality increases the level of customer satisfaction also increases. This further indicates that
customer satisfaction is dependent on the e-banking service quality. This furthermore indicates
that e-banking service quality significantly influences customer satisfaction. This finding is
supported by Sharma et al. (2020) who revealed that there is a statistically significant association
between the service quality dimensions and customer satisfaction concerning e-banking services.
The present finding agrees with the study of Juwitasary et al. (2020), which indicated that there
is a substantial correlation between e-service quality and customer satisfaction which boosts
online shopping transactions by customers and helps businesses compete.

Results and discussion

This study recognizes the connection between Expectation Theory and the Service Quality
Model, with Expectation Theory serving as the conceptual foundation for examining how e-
banking service quality characteristics relate to customer satisfaction. According to Expectation
Theory, customer satisfaction arises from comparing the actual performance of a service or
product with predefined performance standards. The study found a strong and positive correlation
between e-banking service quality and customer satisfaction. This indicates a significant
relationship, where higher levels of e-banking service quality are associated with higher levels of
customer satisfaction, and vice versa. In other words, when e-banking service quality is high,

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customer satisfaction is also high. Conversely, lower levels of e-banking service quality lead to
lower levels of customer satisfaction.

Conclusion
A statistically significant correlation was found between the perceived levels of e-banking service
quality and customer satisfaction, suggesting that e-banking service quality directly influences
customer satisfaction. A closer examination of the relationship reveals a strong and meaningful
connection between the two variables, highlighting their significant and interdependent link.

Authors’ contribution: Conceptualization, research methodology, data gathering and analysis

is performed by the authors.

Conflict of interest statement: All authors declare no conflict of interest.

Ethical review statement: The research is submitted to the ethical review board and approved
for the conduct of the study. It does not involve human-sensitive issues.

Funding: The study is funded by the authors.

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