Abstract
Online banking is one of the main functions of modern banking in existing banking operations across the globe. Online banking operations improve the performance of the banking industry and helps customers to reduce their transaction costs. This study aims to investigate the relationship between online banking services offered by Al Rajhi Bank, National Commercial bank and Riyadh Bank. Various dimensions such as movable, tangible assets, reliability, responsiveness and empathy as determinants of customer satisfaction have been used. These dimensions are based on the SERVQUAL model developed by Han and BEC (2004). The reliability and validity of the dimensions were examined by the alpha value of the Cronbach test. The value of this test is 0.74, representing a good internal scale consistency. Descriptive statistics and dichotomous l ogistic regression model have been used to study the relationship various dimensions and customer satisfaction. The sample size is consisting of 100 customers. Purposive sampling technique was used to select customers who familiar with online banking. Thus various university students were selected from the Kingdom of Saudi Arabia in Riyadh. The names of these universities are: King Saud University, University of Islamic Imam Muhammad Bin Saud and Prince Sultan University. The study shows that the selected dimensions; tangible, reliability, responsiveness and empathy are important determinants of overall satisfaction of the customer, but with different levels. Moreover, the study shows that tangible property and reliability to improve most influential dimensions of the overall probability of the customers satisfaction with the rest of the dimensions proposed in this study.
Highlights
Web-oriented services have brought novel changes in all sectors of a modern economy in the banking sector
Online banking services are an interesting alternative to the information store service to visit or telephone call centers to increase the number of clients (Kenova P, 2006)
The study aims to investigate the relationship between online banking services provided by different banks in Riyadh (Saudi Arabia) namely; Al- Rajhi bank, National commercial bank and Riyadh bank- Riyadh to gauge how efficiently these banks provide online banking facilities to their corresponding clients? Different dimensions such as; tangibles, reliability, responsiveness, and empathy have been taken as determinants of customer satisfaction
Summary
Web-oriented services have brought novel changes in all sectors of a modern economy in the banking sector. Perhaps the banking industry is more competitive, innovative and customer oriented than any other industry in the services sector. The customers benefit from this technology having easy access to financial services and reduction in transaction cost (Yang, 2004). The provision of online quality services to the banking customers plays a vital role to maintain or enhance customer satisfaction. The facility of internet banking to the customers is considered as a competitive necessity. The banks assure quality online services to their customers in order to enable them to enjoy the latest wide range of financial facilities with minimum transaction cost The success or failure of any business entity including the banking sector depends on their corresponding customers' satisfaction. Increasing customer satisfaction will yield material benefits such as higher market shares, more profit and non-material benefits such as good reputation, confidence of the customers, good will etc
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