Abstract:
Electronic banking service is the most inventive services offered by the banks and affects
customer satisfaction significantly. To this end, the main objective of the study was to assess EBanking Practices and Its Effect on Customer Satisfaction at Commercial Bank of Ethiopia
(CBE) in Debre Berhan Town. The total sample respondents were 343 customers drawn from 4
branches of the bank. The study employed simple random sampling method to select the
respondent. The study used primary and secondary data sources. The study employed both
descriptive and inferential methods of data analysis. The study found that E-banking helps more
for the customers than ordinary banking by making life easy, reduces long queue in the banking
activity, convenience, ease of use, minimizes the risk of carrying cash, reduce transaction costs and
providing real time information about banking activity; the bank has faced problem related with
infrastructure like power interruption, Low level of internet penetration/frequent network
interruption and poorly developed infrastructure, Lack of suitable legal and regulatory
framework, fail to perform the transaction efficiently, and unavailability of competent and skilled
employee in using e banking; majority of the customers agreed that the different e-banking
services are enough; provides 24/7 service, the services are reliable enough that you don’t need
to carry cash wherever you go, delivers the service exactly as promised, service are user
friendly, contains full banking services, and making transactions through them is safe and also
has clear transaction safety policies; and the convenience, reliability, easy to use, fulfillment and
secured the e-banking service have significant and positive impact on customer satisfaction.
Therefore, to exploit the benefits e-banking, the bank should have react on the problem faced by
the customer, and the banks should focus to deliver e-banking service to customers which can
easily be accessible, convenience, easy to use, reliable, secured and which in turn maximize the
satisfaction of customers.
