Customer Perceptions of Online Banking Service Quality

Abstract

South Africa has one of the leading banking infrastructures compared to the rest of Africa The South African banking industry currently faces several strategic changes with significant consequences for untapped markets. Among the strategic changes is the provision of online banking services. This study provides an insight of customer perceptions of technology-based banking service quality in a developing country. A structured questionnaire relating to online banking service quality was administered to two hundred Internet banking customers in the Gauteng province of South Africa. One hundred and eighty (n=180) completed questionnaires were received. Using a factor analysis procedure seven factors that influence customer perception of online banking service quality were extracted. These factors were assurance, responsiveness, ease of use, accessibility, fulfilment, speed and accuracy, and contact. The results show that periodic measurements of the levels of online banking service quality should become an integral part of any bank`s effort and strategy in improving service quality levels. In this regard an understanding of the dimensionality and relative importance of the service attributes of online banking service quality is of crucial importance to banks.

DOI: 10.5901/mjss.2014.v5n2p587