Technology Based-Service Quality and Customer Satisfaction in the Banking Sector in Uganda: A Case of Pride Microfinance Limited (MDI)

Abstract

The rise of digital channels is transforming the way in which banking services are provided. Globally, banks are exploring the use of self-service technologies to support customers in conducting banking activities without the need for human interaction. This is done through in-branch self-service machines to mobile handsets which can complete financial transactions using a remote encounter. Therefore, technology based services are the banking channels that a customer uses to fulfill their transaction needs without a bank employees’ intervention. In Pride microfinance limited, the technology-based services were implemented to enable customers transact with ease and at their convenience. However, a lot is unknown about the quality of the technology-based services and its impact on consumer satisfaction. Thus, this study explored the technology based-service quality and customer satisfaction in Pride microfinance limited (MDI). Grounded on the literature review, the most frequently used SERVQUAL dimensions were chosen for this study namely; reliability, responsiveness, security, efficiency and fulfilment. The study adopted a mixed method and the unit of analysis was Pride Microfinance customers and branch managers. The sample for quantitative data was 383 customers selected using simple random method. Qualitative data sample was 6 branch managers selected purposively. Pearson product-moment correlation and multiple regression analysis were used to test the correlation and statistical significance of the relationships between the various independent and dependent variables. The study found out that adoption of technology based service quality could result into 49.3% increase in customer satisfaction of Pride Microfinance. Correlations findings indicate that efficiency and fulfillment have a strong association with customer satisfaction, while security, reliability and responsiveness reported moderate associations with customer satisfaction