Electronic Banking Strategies and their Impact on Customers’ satisfaction: Empirical Evidence from Palestine رسالة ماجستير

Abstract

Digital banking could be a new era for banks in Palestine. Electronic banking services have become an essential part of the banking services in most of the banks in Palestine, along with the traditional banking represented by the physical branches. With time passing, more banks in Palestine are moving towards Electronic Banking services by: utilizing the advancement in the Information and telecommunication technology, enhancing the customer experience and satisfaction, and increasing the efficiency of the banking services, since electronic banking services could be available 24/7, with no restrictions on the working hours, and at the same time minimizing the operational cost. This study examines the relationship between electronic banking services in Palestine, and customer satisfaction in using it. The study main question is: “What is the impact of the electronic banking strategies on customers’ satisfaction in Palestine banking sector?” The study uses a methodology to answer this question, which contains two major components: a) A survey designed that targeted 347 banks’ customers in 8 banks in Palestine, those are having at least one Electronic banking services and are using it. Includes five main parameters, which could be influenced on the customers’ satisfaction b) Direct interviews on the bank's future strategies towards Electronic banking services and the reasons behind following these strategies with the Top management of two major banks in Palestine (Arab Bank and Bank of Palestine). With introducing the Third generation of wireless internet (3G) service in Palestine, the internet became easier to access and available all the time. Along with the availability of traditional wireless network in the bank itself, the banking systems in Palestine are moving quickly toward digitalization, which has been approved by the bank's strategies since many years ago. This study finds several interesting findings, one of these findings is the significant positive relationship between electronic banking strategies (Electronic banking services) and customer satisfaction in using these services. Thus, the study null hypothesis was rejected and the alternative hypothesis was accepted. This finding will be guiding the banks in Palestine to build further strategies, which electronic banking services consider as an essential part of them, to be able to survive, compete and advance in the coming years. And to achieve one of their top objectives by attracting and keeping their customers for life.