A STUDY ON

CUSTOMER SATISFACTION IN MOBILE BANKING

(With reference of Prabhu Bank Limited)

A Project work Report

By

Bibek Pathak kumal

T.U.Redg. No: 7-2-923-4-2019

Symbol No:

G.M Community College

Bijeshwori, Kathmandu

Submitted to

Faculty of management

Tribhuvan University

Kathmandu

In partial fulfillment of the requirement for the degree

BACHELOR OF BUSINESS STUDIES (BBS)

Kathmandu, Nepal
 Declaration

I hereby declare that the project work entitled “A STUDY ON MOBILE BANKING

’’ submitted to the faculty of Management, Tribhuwan University, Kathmandu is an

original piece of work under the Mr. Achyut Shrestha faculty member, G.M.

Community College Bijeshwori, Kathmandu and is submitted in partial fulfillment of

the requirements for the award of the degree of Bachelor of Business Studies (BBS).

This project report has not been submitted to any other university or institution for

the award of any degree of diploma.

……………………………

Bibek Pathak Kumal

Date:
 Acknowledgements

I would like to express my sincere gratitude and appreciation to my supervisor Achyut

Shrestha of G.M. Community college Bijeshwori, Kathmandu for his guidance, support and
encouragement throughout my research project.

His expertise, insights and feedback have played a role in shaping my research and helping
me attain my goals. Furthermore I would like to extend my thanks to the author whose
work has inspired and influenced my research.

I am thankful to the official website for providing essential sources of information without
it my whole research would have been incomplete.

Lastly I would like to thank my friends who have supported me provided encouragement
and offered feedback during this project.

Bibek Pathak Kumal

G.M. Community College

Date: ………………………….

Thank you
 CHAPTER-I
INTRODUCTION

Initially, the Nepalese banking industry has been competitive and has been observed
that the number of banks is constantly escalating. Due to the pressure from the
environment and to sustain, banking firms are now focusing on efficient
management and optimal use of their resources (predominantly; technology and
employees) and providing superior service to their customers.

Due to increase in competition in banking sector customer service is the key to good
banking system since it is very important to retain the existing consumers while at
the same time the survival o banks depend on acquiring new customers. Therefore
the increase of development and the competition in the banking sector, the
customer is much aware of the services that they want the banking institutions to
offer them expect on the first contact and transact with a particular bank basing on
these services. Since there are numerous banks available, there is also a low
switching cost for the existing consumers as well. Hence, to serve the existing clients
and gain new ones, it has become necessary for banks to increasingly become
customer-oriented.Mobile banking commonly known as m-banking is an extra
service which a bank or other financial institution (BFIs) offers to their clients to
facilitate the operation of various transactions by mobile phone. It is an application
software, instituted by the bank for its clients, to enhance the efficiency of their
banking exercising. Banks have been able to expand the contingent of their
customers due to the adoption of the latest technology the most effective of which is
described as electronic banking.

The organization strategies of Banks called Bricks and Clicks has helped them to
enhance the experience of a customer. Mobile Banking being a drive towards
striving to serve the customer better as the sector become more and more
conscious. M-Banking is indeed a revolutionizing service which has assisted the
financial institutions in getting customer loyalty, their satisfaction and the more
 addition of value in their products and services. M-Banking has also offered a
competitive edge .

Profile of the organization

Prabhu Bank Ltd is an ‘A’ category commercial bank working in Nepal and having its
branches all over the country with its head office at Kathmandu fulfills all the commercial
bank operations. It was established in 2001 AD. The bank has its shares floating in the
Nepal Stock Exchange as an ‘A’ category company.

The Bank aspires to be one the top’s most wanted bank of the industry by meeting the
interest of the stakeholders and also to meet out the total customer satisfaction by
introducing new products and in creating and maintaining a competent and committed
human resources. It focuses all its capabilities on moving forward with more profits on its
balance sheet.

Being in the banking industry for more than two decades, Prabhu bank which is established
in 2002 realizes the increasing competition in banking sector. Customer satisfaction has
been aspired to be total by the management of the bank along with other attributes.
Siddhartha bank is positioned in such way that they want to become one of the most
challenging banks of the industry satisfying its interested stakeholder and at the same time
want to give total satisfaction to the customer by offering new products.
Objective

The objective of the research will be to examine the customers’ satisfaction with mobile
banking offered by different banks. The real intent therefore is whether the bank has
justified its ability to be a bank that rightly is interested in customers growing competition.
Among the steps incorporated by banks in relation to technology in the field of customer
service, is introduction of Mobile Banking (M-banking). Besides, this research will seek to
establish the extent of customer satisfaction with a view of the mobile banking services
offered by the bank by use of m-banking; also, it will seek to establish the main Variables
Which the Bank can Address to enhance the level of Customer Satisfaction in Terms of the
Mobile Banking Services.

The major objectives of the research are as follows:The major objectives of the research are
as follows:

a. In order to determine the efficiency of the process of banking services through Prabhu
bank.

b. To identify the variables that influence customers’ satisfaction on the mobile banking
services.

c. To determine the present level of customer satisfaction on the use of mobile banking
Rationale

Mobile banking has become one of the most significant innovations in the sphere of
financial services. Being able to carry out banking transactions at any given time and from
the comfort of one’s hands, makes it very convenient for the users while on the other side
cutting a lot of operational costs for the financial institutions. The mobile banking
applications have the feature of user interfaces and personalized services and therefore
enhance the flow of the customer relation. In addition, mobile banking is useful in
extension of financial services to the groups that may be out of reach of the usual banking
services. Real-time payments, transfers, and other operations are possible; this feature
matches the speed of the modern world. Being able to solve issues related to the digital
transaction, elements of security, for example, biometric authentication or data encryption,
make mobile banking safer than the traditional one. Further, the immense mobile banking
transactions and usage data gathered offer positive change or improvements where bank
services and new products can better suit the customers’ needs and wants. Thus, given the
continuous development of technology, mobile banking is expected to create even greater
shifts in banking systems what makes it a vital instrument for consumers and financial
institutions in modern environment.
Review

Customer satisfaction can be different according to both product and services and the
experience as well as their expectations. This is a very personal look that gets changed a lot
by what customers hope for. Customer satisfaction with what they buy or use can change
based on the situation and type of good and services. A customer might be happy with a
product or service, an experience, making a buy choice, by talking to salesman. They can
also like the things they do in stores that help them and any detail of these anywhere above
mentioned.

Customer satisfaction is a very personal view that changes a lot based on what each person
expects. Some definitions come from watching that people feel good or bad depending on
whether their expectations for service or product are met.

Mobile Banking can be described as a technique that provides financial services to the
people of both the urban and the rural society in a delicate manner. That is, mobile banking
can be described as “a banking transaction that is executed through the handset of the
mobile phone”. The spirit of the service is not to annihilate the banking industry but those
people who are shaded by Banking Service for the absence of Banking amenities contingent
and enriches life. But, identifying specific characteristics of mobile banking services, and
how the banks may bring the proper relationship with customers via mobile banking
services is significant for the advancement of mobile banking. Thus, the emphasis in this
research is made to measure customer satisfaction in the given area – the services offered
by mobile application in banking.

Looking at the advancement made in the last ten years, technology has been self-improving
itself by the incorporation or otherwise by replacing other technologies as the days go by.
By developing this technology the banking industry has been affected in a big way. On the
other hand, service in the banking too has undergone many changes right from the early
eighties when telephone banking and computer banking emerged and continue to translate
towards the banking though ATM and internet banking concepts.

Methods

The field observation and respondent based structured interview have been used for this
research. Therefore, this report utilizes the methodology intended to fulfil the goals of this
research work.

Sources of Data

Collection of data refers to the methods that are used to get necessary information from the
units under investigations: data collection methods differ from the characteristics, object
and breadth of inquiry.

I. Primary data: Primary data is the information collected by investigators. The data
is therefore original in nature. These types of data are captured during surveys and
inquires that government, some individual’s, institution or research bodies conduct.

a. Survey and questionnaires with mobile banking users.

b. Observation on mobile banking transaction.
c. Focus Group Discussions ..

II. Secondary Data: Secondary data refers to the data that has been collected by a
third party for some other purpose. It is information that other researchers,
organizations or sources have previously collected.

a. Accessing reports and publications from government agencies.

b. Academic journal articles and papers in industry publications.

Limitation

Followings factors have limited the scope of this study:-

 1. In primary data collection methods, sample size is limited.
2. Bias in self-reported data from surveys and questionnaires.
3. Incomplete secondary sources.
CHAPTER-II
RESULT AND ANALYSIS

Data presentation
This study focused on the impact of internet services in our society with particular
reference to Prabhu Bank Limited. To begin with, the study sought to determine major
factors influencing customer satisfaction. Then after finding significant facilities that
contribute to overall customer satisfaction. The other goal was to compare the employee
and customer satisfaction levels.

The final goal was to compare the customer and employee evaluation of mobile banking
industry. In this chapter, the research data collected for analysis and interpretation was
analyzed. Beginning with demographic variables, then the research questions that are
structured to guide the study. The first section of the chapter explored demographic
characteristics involving sex, level of education and years with the company in
respondents. The second section presented the results of findings in relation to what has
been investigated.

a. Response

Rate a total of 110 people selected out of 400 people who use mobile banking in a week as
the sample. Out of this sample 99 people were able to respond to the questionnaires
provided, making the response rate 90 percent of the population.

b. Characteristics of respondents

The study collected information on different characters of respondents. Detailed results on

each of the characters are presented.
Table 1

Age of Respondents
Age Frequency percentage
18-24 40 40.40
24-30 25 25.25
30-36 21 21.21
36 and Above 13 13.13
Total 99 100

frequency
45
40
35
30
25
20
15
10
5
0
18-24 24-30 30-36 36 Above

frequency

Figure 1 Age of Respondents

The table 1 and figure 1 showed that, respondents within the age of 18 - 24 years were 40
representing 40.40 percent. This was followed by 24 - 30 year group representing who
were 25 representing 25.25 per cent of the respondents, 21 respondents representing
21.21 per cent were between the ages of 30 to 36 years. The age 36 years and above were
11 representing 10.19 per cent of the respondents.

Table 2
Gender of Respondents
Gender Frequency Percentage
Male 56 56.56
Female 43 43.43
Total 99 100

frequency
60

50

40

30

20

10

0
Male Female

Sales

Figure 2: Gender of Respondents

The table 2 and figure 2 shows that among 99 of the respondents representing 56.56%
were men while 45.43% were female.

Table 3
Education Level
Education level Frequency Percentage
Primary Education 7 7.07
Ordinary Level Education 30 30.30
Advance Secondary 12 12.12
Education
Certificate Holders 5 5.05
Diploma Holders 15 15.15
First Degree Holders 20 20.20
Second Degree Holders 10 10.10
Total 99 100

Educational Level
30

20

10

0
on on s s s s
er er er er
ati ati old ld ld ld
uc uc H Ho Ho Ho
Ed E d t e a ee ee
el ar
y ca om gr gr
ev nd tifi pl e e
y L r Di tD D
r co Ce rs nd
na Se Fi co
rdi e d S e
O nc
dva
A

Frequency

Figure 3: Educational Level

The table 3 and figure 3 showed that, Respondents had different levels of education
including Primary Education, Ordinary Level Education, Advanced Secondary Education,
Certificate Holders, Diploma Holders, First Degree Holders and Second Degree and above.

Table 4
Period of Service with the Bank
 Period Frequency Percentage
Less than 3 years 21 21.21
3-5 years 32 32.32
6-8 years 38 38.38
9 and Above years 8 8.08
Total 99 100

40
35
30
25
20
15
10
5
0
Less than 3 years 3-5 years 6-8 years 9 and Above years

Frequency

Figure 4: Period of Service with the Company

Table 4 and figure 4 shows that The study also measured the time respondents had
received services from company, which are; less than three years, between three to five
years period, six periods to eight periods as well for above nine times in a period.

Table 5
Factors Affecting Customer Satisfaction
 Customer satisfaction Frequency Percentage
factors
Quality of service 31 31.31
Speed 22 22.22
Reliability 14 14.14
Cost 10 10.10
Accessibility 12 12.12
Customer support 10 10.10
Total 99 100

35

30

25

20

15

10

0
Quality of Speed Reliability Cost Accessibility Customer
service Support

Frequency

Figure 5: Factors Affecting Customer satisfaction

The table 5 and figure 5 depicts that some factors influencing the level of customers’
satisfaction were analyzed. Factors which are mostly responded by respondents are as
follows- these features include the quality of service, speed, reliability, cost, accessibility
and customer support.

Table 6
Factors for Mobile Banking
 Mobile Banking Frequency Percentage
Factor
Security 10 10.10
Convenience 12 12.12
Low cost 16 16.16
Time Saving 20 20.20
Privacy 24 24.24
Accessibility 17 17.17
Total 99 100

Frequency
27.5
24
22.5 20
Mobile banking factors

16 17
17.5
12
12.5 10
7.5

2.5
Security Convenience Low cost Time saving Privacy Accessibility
Frequency 10 12 16 20 24 17

Frequency

As it is reflected in the table 6 and in the figure 6. There are certain reasons, which may
contribute to the usage of mobile banking in various regions of the country; The study
described some of the factors, which may make some users to turn to the mobile banking,
such as Security, Convenience, Low Cost, Time Saving and Privacy.

Table 7
Management views on Customer Satisfaction

Management Views Frequency Percentage

Very satisfied 15 30
Satisfied a little 17 34
Normal satisfaction 13 26
Less satisfaction 5 10
Not satisfied at all 0 0
Total 50 100

Frequency
17
17
15
15
13
13
11
9
7
Axis Title

5
5
3
1 0
Very satis- Satisfied a Normal sat- Less satis- Not satisfied
fied little isfaction faction at all

Fre- 15 17 13 5 0
quency

The table 7 and figure 7 implies that the study wanted to know from both the management
and customers; are the customers satisfied with the services offered through the mobile
banking and what does the management perceive of the satisfaction level of the customers
on the services they offer. The perception of how the management responded to their
customers needs on the mobile banking service.
Table 8:Customer views on Customer Satisfaction

Customers views Frequency Percentage

Very satisfied 25 51.02
Satisfied a little 14 28.57
Normal satisfaction 10 20.41
Less satisfaction 0 0
Frequency
Not satisfied at all 0 0
27.5
Total 25 49 100
22.5

17.5
14
Customers views

12.5 10
7.5

2.5 0 0
Very satisfied Satisfied a lit- Normal satis- Less satisfied Not satisfied
tle faction at all
Fre- 25 14 10 0 0
quency

Table 8 and figure 8 shows the response from the customers themselves on the
perception of how customers are satisfied with mobile banking service.

Table 9: Management Views on Mobile Banking

Mobile banking Frequency Percentage

improvement
Improved a lot 22 44
Improved a little 15 30
Normal improvement 13 26
Diminished a little 0 0
Diminished a lot 0 0
Total 50 100
Table 10
Customer views on Mobile banking
Mobile Banking Frequency Percentage
Improvement
Improved a lot 25 51.02
Improved a little 14 28.57
Normal improvement 10 20.41
Diminished a little 0 0
Diminished a lot 0 0
Total 49 100