Digital transformation and customers’ satisfaction in banking sector: ''A case study of Unguka Bank PLC''

Abstract

This research entitled, Digital transformation and customers‘ satisfaction in banking sector of Rwanda, case study of Unguka Bank Plc, showed that the established digital means in Unguka Bank help customers to use different bank services without having to physically be present at bank premises. The problem statement is about the customers still choosing to use bank services physically at bank premises despite a number of banking digital means already established. This study was guided by specific research objectives which are examining the perception of respondents on the use of digital services in Unguka Bank, evaluating the assurance and security of digital services from Unguka Bank and investigating the effect of Digital transformation on the quality and speed of service delivery that contributes to customers‘ satisfaction in Unguka Bank. Given that descriptive research is used to explain the facts and characteristics of what is being investigated, the researcher conducted a descriptive analysis. About the level of using digital services at Unguka Bank, this study showed that the level of using digital services increase customer satisfaction in UB as perceived by UB employees was enough that the mean values of respondents in these category ranged from 2.51 and 3.25, (Mean 2.63, SD=.519) where the customers perceived that the level of using digital services in UB increase the numbers of customers using e-payment at enough (Mean of 2.61, SD=1.019). About the contribution of digital transformation on the quality and speed of service delivery at UB, the study showed that the Customer receives quick service is positively a significant predictor of customer satisfaction in UB standardized better (β) =.312, P<0.05. The better value tells that one unit increase of customer who receives quick service increase customer satisfaction mean by .312. This is to mean that when customer receives quick service from UB she/he will be motivated to be loyal to the services provider as the other factors remain constant. About the challenges faced by customers while using digital services at UB, the study showed that there is there is correlation between Customers who meet with connection problem and customer satisfaction in UB, Rusizi branch where (R=.755, p<0.05). The determination‘s coefficient is R2=.570 indicating that only 57% of customer satisfaction is accounted for by the Customers met with connection problem when using digital transformation. The correlation between Customers of UB can that can make errors in money transfer and customer satisfaction in UB Rusizi branch was found to be (R=.537, p<0.05). The determination‘s coefficient is R2=.288 indicating that only 28.8% of customer satisfaction variation was explained by customers who make errors in money transfer.