Impact of Digital Banking Service Quality on Customer Satisfaction in Nepalese Commercial Banks: Evidence from Chitwan

Abstract

The high pace of digital banking development in Nepal has predisposed the necessity to comprehend the impact of the quality of the services on customer satisfaction, especially in the developing urban environment like Chitwan. Although the adoption has been increasing, the issues of reliability, security, and usability of the system are still in question, and empirical research is required. This paper explores how the dimensions of customer satisfaction of Nepalese users of a commercial bank relate to digital banking service quality through the reliability, security, responsiveness, ease of use, and personalization dimensions. The quantitative and cross-sectional design was adopted, where primary data were collected on 363 digital banking users by using structured questionnaires. The data was studied with the SPSS tool, descriptive statistics, correlation, and multiple regression methods. The results have shown that the reliability, security, ease of use, and personalization have a strong positive impact on customer satisfaction, and responsiveness is not significant. Security and ease of use turn out to be the most powerful predictors and the importance of trust and system usability in digital banking settings should be noted. The research adds to the literature on service quality and technology adoption by highlighting the prevalence of technology aspects over the conventional service aspects. In practice, this implies that banks are to focus on cybersecurity, system availability and user-friendly interfaces to promote customer satisfaction and remain relevant in the changing digital financial landscape in Nepal.