Mobile Banking and Consumer Satisfaction: Evidence from Nigeria

Abstract

Mobile phones have created a platform to expand commercial transactions in a very easy manner and have created a wide array of business opportunity through the expansion of wireless communication. These developments facilitate business transactions, trading and purchasing of goods and services without much effort. Hence, it is clear that mobile banking would be an astrictive way of providing banking services and it also could contribute to the development of the nation through promotion of better financial services. However, determining the characteristics of mobile banking services and how banks could achieve a proper relationship with customers through mobile banking is vital for development of mobile banking. The study thus undertakes an empirical analysis to examine the effect of mobile banking services on customer satisfaction in Nigeria using Nasarawa metropolitan city in Nigeria as a study. Ordinary Least Square(OLS) regression method was employed to examine how mobile account balance updates, mobile funds transfer and transaction, and mobile bill payments has influenced ease of use, privacy and convenience. The findings from the analysis showed that mobile balance updates and mobile bill payments do not have have a significant effect on privacy/security and convenience due to network out of order problems and inadequate awareness on how customers could use their phones to perform simple banking operations. Customers were found to be satisfied with the use of mobile fund for transfer which was found to have a significant relationship with ease of usage. Suggestive from the analysis therefore are that bankers should consider raising consumer awareness and acceptance of new technology-based mobile banking services more through advertising and promotion rather than word-of-mouth communication. Security, trust and reliability should also be focused by the banks by enhancing security of transactions, ensuring proper network system and timely and timely service provision.