Internet banking is considered as one of the major services introduced by the banking sector recently to improve the satisfaction level of the customers providing more efficient and comfortable services. However, there is no sufficient empirical evidences whether the internet banking service qualities improve the customer satisfaction. Therefore, this study attempted to explore how internet banking service qualities affect the customer satisfaction? The data were collected from the 285 customers who are using internet banking services in Bank of Ceylon, Panadura Branch for the structured questionnaire conducting face-to-face interviews. Data were analyzed using Partial Least Squares-Structural Equation Modelling.
The study tested seven hypotheses between seven dimensions of internet banking service qualities and customer satisfaction. The results revealed that contact, efficiency, system availability and compensation have significant positive impact on customer satisfaction while fulfilment, privacy and responsiveness did not have significant effect on the level of customer satisfaction. Results further revealed that the contact and efficiency are the most effected factors which improve the satisfaction level of the customers who are using internet banking. The empirical evidences helped to understand the relative efficacy of the service qualities of internet banking which will help policy makers to develop quality dimensions to improve customer satisfaction in order to expand the customer retention of banking sector.
Bank of Ceylon, Customer Satisfaction, Internet Banking, Service Quality
