Abstract
The use of core banking System in the various banks is drastically changing the way banking activities are being organized. Almost all banks in Ethiopia are in the process of transforming their banking systems to the modern technology in which they can offer efficient and globally competent services to their customers and get customers satisfaction in return. This study aimed to assess the effects of core banking system on customer satisfaction in commercial bank of Ethiopia. Stratified and convenient sampling techniques were used in the selection of each respondent from the commercial bank of Ethiopia. Conveniently 400 customers were selected and structured questionnaire and interview was used to collect relevant data for the research. The data gathered through the questionnaire was analyzed by using Statistical Package for Social Science (SPSS). The result of the study indicated that core banking information technology system indeed has a positive significance impact on customer satisfaction of commercial bank of Ethiopia. The Multiple linear regression analysis also showed a positive coefficient and adjusted R 2 was 89.1%, which simply mean that there is significant and strong positive relationship between core banking system and customers’ satisfaction. In general, core banking Information Technology system has positively impacted on customer satisfaction of commercial bank of Ethiopia. Finally, it’s suggested that commercial banks in Ethiopia needs to continue to explore and implement sustainable business linkages and collaborations with core banking system. Keywords: Core banking system, customer satisfaction, Commercial Bank of Ethiopia, electronic service quality, electronic recovery service quality DOI: 10.7176/IKM/11-2-02 Publication date: March 31 st 2021
Highlights
Information and Communication Technology (ICT) is responsible for the change taking place globally
Rono (2012) The purpose of his study was to: determine factors leading to replacement of core banking systems in commercial banks in Kenya; establish the challenges that commercial banks in Kenya encounter in the process of core banking systems replacement; and determine the effect of core banking systems replacement on bank performance and the Findings indicated that replacing core systems has a significant positive effect on financial performance
The study was conducted to examine the effect of the application of core banking on customer satisfaction selected branch
Summary
Information and Communication Technology (ICT) is responsible for the change taking place globally. As a result of the prevailing advancement in information and communication technology, the banking industry worldwide is operating in an unparalleled kind of competition backed up by modern information and communication system. (Bhaskar & Tewodros, 2011)“Technology has opened up new markets, new products, new services and efficient delivery channels for the banking industry. Core banking system (CBS) has been effective in bringing about a radical change in the field of banking. CBS simplify their banking operations by allowing them to conduct common frequently used banking transactions without visiting bank’s branches, saving a lot of time. CBS provides for online banking, Mobile banking and ATM services on 24/7 basis to customers so that a customer need not visit a bank for his banking needs (Biniyam & Birhane, 2018)
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