CUSTOMER’S SATISFACTION TOWARDS MOBILE SERVICES IN

KATHMANDU

A Project Work Report

Submitted By:

Janaki Basnet

Shanker Dev Campus

TU. Reg No. 7-2-39-2155-2020

Exam Symbol No: 700390245

Campus Roll No: 1961

Proposal No: 479

Group: Finance

Submitted To:

Office of the Dean

The Faculty of Management Tribhuvan

University Kathmandu

In Partial Fulfillment of the Requirements for the degree of Bachelors of Business

Studies -Finance (BBS-F)

Kathmandu

June, 2025
 STUDENT DECLARATION

I hereby declare that the project work entitled “CUSTOMER’S SATISFACTION

TOWARDS MOBILE SERVICES IN KATHMANDU ” submitted to the faculty of
Management, Tribhuvan University, Kathmandu is an original piece of work carried out
under the supervision of Mr. Rabindra Bhattarai faculty member, of Shankar Dev
Campus, Kathmandu, and is submitted in partial fulfillment of the requirements for the
award of the degree of Bachelor of Business Studies (BBS). The project work report
hasn’t been submitted to any other university or institution for the award of any degree
diploma.

…………………..

Janaki Basnet

June, 2025
 CERTIFICATE FROM THE SUPERVISOR

This is to certify that the summer project entitled “CUSTOMER’S SATISFACTION

TOWARDS MOBILE BANKING SERVICES IN KATHMANDU.” is an
academic
work done by Janaki Basnet submitted in the partial fulfillment of the requirements
for the degree of Bachelor of Business Studies at Faculty of Management, Tribhuvan
University under my guidance and supervision. To the best of my knowledge, the
information presented by him/her in the summer project report has not been submitted
earlier.

…………………………

Supervisor

Mr. Rabindra Bhattarai

June, 2025
 ENDORSEMENT

We hereby endorse the project work report entitled “COSTUMER’S SATISFACTION

TOWARDS MOBILE SERVICES IN KATHMANDU” submitted by
Janaki Basnet of Shankar Dev Campus, Putalisadak, Kathmandu, in partial fulfillment of the
requirements for the degree of the Bachelor of Business Studies (BBS) for external evaluation.

…………………..… …….……………….

Asso. Prof. Dr. Sanjeeb Kumar Shrestha Asso. Prof. Dr. Kapil

Khanal Research Management Committee Campus Chief

June, 2025 June, 2025
 ACKNOWLEDGEMENT

A project report cannot be finished without the assistance and encouragement of others.
Not the case with this one. At the outset of this report, I want to convey my sincere
appreciation and obligation to everyone who has helped me in this quest. Without their
active direction, support, cooperation, and encouragement, I could not have advanced
with the project.
First and foremost, I would like to thank my professors Mr. Superfor his invaluable
guidance, support, and advice and in helping me throughout the duration of this summer
project. Their constant constructive feedback, and insights were instrumental in shaping
this report.
My sincere appreciation also goes out to the respondents who took the time and effort to
respond to the surveys, without whom this report would not have been possible.
Finally, I would like to extend my heartfelt thanks to my family, who provided me with
their unwavering support, Motivation, and encouragement in every challenge. Thank you
all for your contribution and support.

Janaki Basnet

June, 2025
 TABLE OF CONTENTS

Title page................................................................................................i
Declarations.............................................................................................ii
Supervisor’s Recommendation.............................................................iii
Endorsements.........................................................................................iv
Acknowledgements.................................................................................v
Table of Contents.....................................................................................vi
List of Tablse.............................................................................................vii
List of Figures..........................................................................................viii
Abbreviations..........................................................................................ix

CHAPTER 1: INTRODUCTION............................................................................1
Background of the study.........................................................................1
Introduction ………………………………………………………………
Problem………………………………………………………………….
Objectives …………………………………………………………………
Rationale ……………………………………………………………………
Review ……………………………………………………………………….
Methods ………………………………………………………………………
Limitations ……………………………………………………………………

Chapter II : RESULTS AND ANALYSIS …………………………………………….

Data presentation …………………………………………………………
Analysis of results………………………………………………………..
Findings ………………………………………………………………….

Chapter III : SUMMARY AND CONCLUSION …………………………………..

Summary…………………………………………………………….
Conclusion …………………………………………………………..

BIBLIOGRAPHY ……………………………………………………………….
 LIST OF TABLES

Table 2.1 Gender of Respondents

Table 2.2 Age of Respondents

Table 2.3 Bank preferred by Customers

Table 2.4 Knowledge of Mobile Banking

Table 2.5 Frequency of Use

Table 2.6 Reliability Statistics

Table 2.7 Descriptive Statistics of Price

Table 2.8 Descriptive Analysis of Service Quality

Table 2.9 Descriptive Analysis of Security.

Table 2.10 Descriptive Analysis of Responsiveness.

Table 2.11 Descriptive Analysis of Transaction Speed

Table 2.12 Descriptive Statistics of Customers Satisfaction.

Table 2.13 Correlations between customer satisfaction and factors affecting it. 20

Table 2.14 Model Summary

Table 2.15 Coefficients of regression equation

 ABBREVIATION

NRB Nepal Rastra Bank

BBS Bachelor of Business Studies
ICT Information and Communication Technology
ATM Automated Teller Machine
M-Banking Mobile Banking
SPSS Statistical Package for the Social Sciences
R² Coefficient of Determination (R Square)
SEE Standard Error of Estimate
FDI Foreign Direct Investment
GDP Gross Domestic Product
TU Tribhuvan University
1.1 Background of the Study
In recent years, the banking industry in Nepal has undergone significant technological
transformation, especially with the rise of mobile banking services. With the increasing
penetration of smartphones, internet access, and digital literacy, customers now expect fast,
secure, and convenient banking solutions. Mobile banking allows customers to perform
financial transactions such as fund transfers, bill payments, balance inquiries, and mobile
top- ups using a smartphone application, without the need to visit a physical bank branch.
In Kathmandu, being the capital city and a commercial hub of Nepal, the use of mobile
banking services has seen a rapid rise. Almost every commercial bank, as well as
development banks, have launched their mobile banking platforms to provide better service
and enhance customer experience. This has led to intense competition among banks to
satisfy and retain their customers through better mobile banking facilities.
However, while the adoption of mobile banking has grown, the level of customer
satisfaction varies based on several factors like ease of use, app performance, transaction
speed, customer support, security features, and trust. Understanding these factors and
measuring customer satisfaction is crucial for banks to improve their services and remain
competitive in the digital era.
Hence, this study focuses on exploring and analyzing the level of customer satisfaction
towards mobile banking services among users in Kathmandu. The findings of this research
will help banks identify strengths and weaknesses in their mobile banking systems and offer
insights for future improvements.

Introduction
In the modern era of digitalization, the banking sector has witnessed remarkable changes due
to the adoption of information and communication technology. One of the most significant
developments is mobile banking, which enables customers to perform various banking
transactions conveniently through their smartphones. It has revolutionized the traditional
banking experience by offering 24/7 access to financial services, reducing the need for
physical visits to bank branches.
In Nepal, particularly in Kathmandu, the adoption of mobile banking services has rapidly
increased in recent years. Almost all commercial and development banks now offer mobile
banking applications to meet the growing expectations of tech-savvy customers. These
services include checking account balances, transferring funds, paying utility bills,
recharging phones, and more.
As the number of mobile banking users continues to rise, customer satisfaction has become a
critical area of focus for banks. Satisfied customers are more likely to continue using the
service, recommend it to others, and remain loyal to the bank. On the other hand,
dissatisfaction can lead to complaints, service discontinuation, and negative publicity.
Therefore, evaluating customer satisfaction helps identify the strengths and weaknesses of
the service and guides banks in improving their digital offerings.
This study aims to assess the level of customer satisfaction towards mobile banking services
in Kathmandu. It will explore key factors influencing satisfaction such as app usability,
transaction reliability, security, convenience, and customer support. The findings will be
valuable for banks seeking to improve their mobile banking platforms and enhance customer
experience.

Problems of the Study

Despite the rapid expansion of mobile banking services in Kathmandu, users face several
challenges that affect their overall satisfaction. One of the primary issues is the frequent
occurrence of technical glitches such as app crashes, slow response times, and transaction
failures, which often cause frustration and reduce trust in the service. Security concerns are
also significant, as many customers worry about the safety of their personal and financial
information, fearing hacking or unauthorized access. Additionally, some mobile banking
applications have complex interfaces that are difficult to navigate, particularly for users who
are less familiar with technology. Another major problem is the limited availability and
responsiveness of customer support, which leaves many users without timely assistance
when they encounter issues. Network connectivity problems in certain parts of Kathmandu
further hamper the smooth use of these services. Moreover, a lack of awareness about the
full range of mobile banking features limits how much customers utilize the service. Users
also face constraints such as transaction limits and hidden charges, which discourage them
from fully engaging with mobile banking. Lastly, despite growing digital adoption, a trust
deficit remains among some users who continue to prefer traditional banking methods due to
concerns about reliability and security. Addressing these problems is essential for banks to
enhance customer satisfaction and increase the adoption of mobile banking in Kathmandu.
1.5 Research Questions
The study aims to answer the following key questions:
1. What is the current level of customer satisfaction towards mobile banking services in
Kathmandu?
2. Which mobile banking features are most frequently used by customers?
3. How do customers perceive the ease of use, security, speed, reliability, and customer
support of mobile banking services?
4. What are the common problems or challenges faced by customers when using mobile
banking?
5. Do demographic factors such as age, gender, and education influence customer
satisfaction levels?
6. What suggestions do customers have to improve mobile banking services?

1.3 Objectives of the Study

The main objective of this study is to assess the customer satisfaction level regarding mobile
banking services provided by various banks in Kathmandu.
General Objective:
 To examine the overall level of customer satisfaction towards mobile banking
services in Kathmandu.
Specific Objectives:
1. To identify the most commonly used mobile banking features by customers in
Kathmandu.
2. To analyze customer satisfaction in terms of usability, security, speed, reliability, and
service support.
3. To evaluate how demographic factors (age, gender, education, etc.) influence
satisfaction levels.
4. To explore the challenges and problems faced by users while using mobile banking
services.
5. To provide suggestions for banks to improve their mobile banking services based on
customer feedback.
 1.4 Rationale of the Study
In today’s digital age, the banking industry is evolving rapidly with the help of mobile
technology. Mobile banking has emerged as a powerful tool to enhance customer
convenience by providing banking services at the fingertips. In Nepal, especially in
Kathmandu, mobile banking usage has significantly increased due to the availability of
smartphones and internet access.
Despite the growing popularity, not all customers are equally satisfied with the mobile banking
services offered by banks. Factors such as security concerns, technical issues, slow response
time, and lack of user-friendliness may impact the user experience. Understanding how
customers perceive and experience these services is crucial for banks to maintain their
competitive edge and retain customers.
This study is important because it helps:
 Banks understand the actual needs and expectations of their mobile banking users.
 Identify the key factors affecting satisfaction and dissatisfaction.
 Provide practical insights and recommendations for improving the quality of mobile
banking services.
Moreover, there is limited research in Nepal focusing specifically on customer satisfaction in the
context of mobile banking. Therefore, this study will contribute to the existing literature and
serve as a useful reference for bankers, developers, researchers, and policymakers.

Chapter 2: Review of Literature

A review of literature is essential to understand the theoretical background, previous research
findings, and current trends related to mobile banking and customer satisfaction. This
section helps to identify the research gap and build a foundation for the present study.

2.1 Concept of Mobile Banking

Mobile banking refers to the use of mobile devices like smartphones to perform banking
activities such as fund transfers, bill payments, account inquiries, and more. It allows
customers to access banking services anytime and anywhere, increasing convenience and
reducing reliance on physical branches.
According to the Nepal Rastra Bank (NRB), mobile banking services in Nepal have seen
remarkable growth in recent years due to improved internet access, increased smartphone
usage, and awareness among the public.
2.2 Customer Satisfaction in Banking
Customer satisfaction is the extent to which a service meets or exceeds a customer’s
expectations. In banking, it is a key determinant of customer loyalty, retention, and overall
success. A satisfied customer is more likely to continue using a service and recommend it to
others.
Kotler and Keller (2016) define customer satisfaction as "a person’s feeling of pleasure or
disappointment resulting from comparing a product’s perceived performance to
expectations."

2.3 Factors Influencing Customer Satisfaction in Mobile Banking

Several studies have identified various factors that influence customer satisfaction in mobile
banking, including:
 Ease of use: The simplicity of navigating and operating the mobile banking app.
 Security and privacy: Measures to protect user data and transactions.
 Speed and efficiency: How quickly transactions are processed.
 Service reliability: The app's stability and error-free performance.
 Customer support: Availability and helpfulness of assistance when issues arise.
Studies such as Laukkanen & Pasanen (2008) and Amin et al. (2007) found that perceived
ease of use and security were among the top factors influencing user satisfaction in mobile
banking.

2.4 Previous Studies in the Nepalese Context

Several research projects have been conducted in Nepal to understand digital banking trends,
but only a few focus specifically on customer satisfaction in mobile banking. Some notable
studies include:
 Shrestha (2020): Found that trust, app design, and responsiveness were key drivers of
satisfaction among Kathmandu users.
 K.C. and Bista (2021): Highlighted that younger users tend to be more satisfied due
to higher digital literacy.
 NRB Reports: Show increased transaction volume in mobile banking, but also
identify ongoing issues like system failures and cyber-security risks.
 2.5 Research Gap
While some studies have explored mobile banking usage in Nepal, very few have specifically
focused on evaluating customer satisfaction in Kathmandu, where mobile banking
penetration is the highest. This study aims to fill this gap by assessing satisfaction across
various dimensions and providing actionable insights for service improvement.

1.6 Limitations of the Study

Although this study attempts to explore and analyze the satisfaction level of mobile banking
users in Kathmandu, certain limitations exist which may affect the scope and generalizability
of the findings. The main limitations are as follows:

1. Limited Sample Size:

Due to time and resource constraints, only a small number of respondents could be surveyed,
which may not fully represent the views of all mobile banking users in Kathmandu.
2. Geographical Limitation:
The study is focused only on users within Kathmandu Valley, so the findings may not
apply to users in rural areas or other parts of Nepal.
3. Time Constraint:
The research was conducted within a limited time frame as part of the academic
schedule, which restricted deeper exploration of some issues.
4. Use of Convenience Sampling:
Since the study used a non-probability (convenience) sampling method, there is a
chance of sampling bias, and the findings may not be statistically generalizable.

CHAPTER II

CHAPTER RESULTS AND ANALYSIS

The main goal of this chapter is to present the study’s major findings and to contribute to
decision-making. It helps to determine whether the study’s primary goal has been
achieved. This chapter help in the analysis of several independent factors that either
directly or indirectly affect customer satisfaction. With the help of SPSS version 23, the
descriptive
approach, correlation analysis, and regression analysis were used to analyze various
variables.

Respondents Profile
In general respondents can refer to individuals who are asked to participate in a research
study or survey. Their profiles can vary depending on the nature of the study, but typically
include characteristics such as age, gender, ethnicity, education level, income, location and
other relevant demographic or psychographic factors that are important to the research
objectives. Here, in this study information of gender and age group of respondents are used
to develop insights for research findings.

Gender of Respondents
Table 2.1 Gender of Respondents

Frequency Percent
Male 59 59
Female 41 41
Total 100 100
(Source: Field Survey, 2024)

From the table 2.1, we can see that from 100 respondents, 59 were male respondents and 41
were female respondents.

2.1.1 Age of respondents

Table 1.2 Age of respondents

Frequency Percent
Below 20 1 1.0
20 to 30 71 71.0
30 to 40 19 19.0
Above 40 9 9.0
Total 100 100.0
(Source: Field Survey, 2024)

Table 2.2 shows that there were 1 respondent below 20 years age group,71 respondents
between 20 to 30 age group,19 respondents from 30 to 40 age group and 9 respondents
were from above 40 years age group out of 100 respondents.

2.1 Frequency Analysis

Frequency analysis is a part of descriptive statistics. In statistics, frequency is the number of
times an event occurs. Frequency analysis is an important area of statistics that deals with
the number of occurrences (frequency) and analyzes measures of central tendency,
dispersion, percentiles, etc.

2.1.1 Frequency Analysis of Bank Preferred by Customers

Table 2.3 Bank preferred by Customers

Bank Preferred by Customers Frequency Percent

Global IME Bank 12 12
NMB Bank 26 26
NIC Asia Bank 11 11
Others 51 51
Total 100 100
(Source: Field Survey, 2024)

Table 2.3 shows that 12 respondents are users of Global IME Bank, 26 use NMB Bank, 11
uses NIC Asia Bank whereas 51 respondents prefer other Bank’s mobile banking services.
 2.1.2 Frequency Analysis of Knowledge of Mobile Banking
Table 2.4 Knowledge of Mobile Banking

Knowledge of Mobile Banking Frequency Percent

Bank leaflets/Advertisements 21 21
Internet 37 37
Family/Friends 41 41
Newspapers/Magazines 1 1
Total 100 100
(Source: Field Survey, 2024)

Table 2.4 shows that out of 100 respondents, 21 users knew about mobile banking services
from Bank leaflets/Advertisements, 37 respondents from Internet, 41 respondents from
family/friends and only 1 from newspapers/magazines.

2.1.1 Frequency Analysis of Use

Table 2.5 Frequency of Use

Frequency of use Frequency Percent

Rarely 10 10
Occasionally 16 16
Monthly 12 12
Weekly 28 28
Daily 34 34
Total 100 100
(Source: Field Survey, 2024)

Table 2.5 shows the frequency of how often customers use the mobile banking services. Out
of 100 respondents, majority of customers uses mobile banking services on daily basis
i.e.,34 respondents. Similarly. 10 respondents use it rarely,16 of them uses occasionally, 12
respondents use it monthly, and 28 respondents use it weekly.

2.2 Reliability Test

Table 2.6 Reliability Statistics
Cronbach's Alpha No of Items
.804 21
(Source: Field Survey,2024)
The Table 2.6 shows that Cronbach’s Alpha is 0.804. So, there is no any problem to use
these instruments to continue this study.

2.1 Descriptive Analysis

Descriptive analysis deals with the summaries of the sample data. It consists of the mean,
median, standard deviation, frequency distribution, and percentage distribution. To examine
the relationship between the dependent and independent variables, respondents were
questioned using a 5-point Likert scale, with 1 denoting strongly disagree, 2 disagree, 3
neutral, 4 agree, and 5 strongly agree. In the questionnaire, the independent variables are the
price, service quality, transaction speed, responsiveness, and security, whereas the
dependent variable is the degree of customer satisfaction.

Beside this age and gender are taken as a demographic variable where 41 were female
respondent and 59 were male respondent. Among the 100 respondents, there were 1
respondent below 20 years age group,71 respondents between 20 to 30 age group,19
respondents from 30 to 40 age group and 9 respondents were from above 40 years age
group.

2.1.1 Descriptive Analysis of Price

Table 2.7 Descriptive Statistics of Price

Statements SD D N A SA M S.D.

PRICE [Mobile banking service fee

is expensive for me.] 3 20 38 33 6 3.19 0.929
PRICE [It is economical to me
more than other services provided
by bank.] 0 3 43 51 3 3.54 0.61
PRICE [Its service is proportional
to its price.] 0 11 44 42 3 3.37 0.72
(Source: Field Survey,2024)

Table 2.7 shows the descriptive analysis of Price. It provides information about opinions on
the statement that “Mobile banking service fee is expensive for me”. The responses are
distributed among five options, with a higher number of neutral responses. The mean is
3.19, suggesting that on average, the respondents tend to agree with the statement that
mobile banking service fees are expensive for customers. The standard deviation of 0.929
indicates variability in the responses, with some strongly agreeing or disagreeing and others
having a more moderate view. Overall, the analysis shows a range of opinions on the
statement.

Likewise, from the analysis of the statement “It is economical to me more than other
services provided by the bank.”, majority of respondents (51%) agree that mobile banking is
more economical to them than other services. Only a small percentage of respondents
strongly disagree or disagree with this statement. Furthermore, the mean value of the
responses is 3.54, indicating that, on average, respondents agree that mobile banking is
more economical to them than other bank services. The standard deviation is 0.61 indicates
that the responses are relatively tightly clustered around the mean, with little variability in
opinions.

Similarly, the analysis of responses to the statement “Its service is proportional to its price.”
Indicate that most respondents are neutral and agree (44% and 42%, respectively) with the
statement. The mean of the responses is 3.37, which is closer to the neutral option. The
standard deviation of 0.72 suggest that while there is general

consensus among respondents, there is some variability in their opinions. Overall, the
respondents believe that mobile banking services are proportional to their price.

2.1.2 Descriptive Analysis of Service Quality

Table 2.8 Descriptive Analysis of Service Quality

Statements SD D N A SA M S.D.

Service [Mobile banking

application 11 48 27 13 1 2.45 0.892
is complex to use.]
Service [It is always available
for 3 11 17 59 10 3.62 0.919
me.]
Service [It makes me
comfortable 4 11 28 48 9 3.47 0.948
to communicate
(Source: Field Survey, 2024)

Table 2.8 shows the descriptive analysis of Service Quality. For the statement “Mobile
 banking application is complex to use.”, 11% of respondents strongly disagree, 48%
disagree,27% are neutral, 13% agree, and 1% strongly agree. The mean response is 2.45
indicating that on average, respondents tend to disagree that the mobile banking
application us complex to use. The standard deviation of 0.892 suggests that opinions are
relatively consistent among, with a majority disagreeing or being neutral.

For the statement” Mobile banking is always available for me.”, 3% of respondents strongly
disagree, 11% disagree, 17% are neutral, 59% agree, and 10% strongly agree. The mean
response is 3.62 indicating that on average, respondents agree that mobile banking services
are always available for them. The standard deviation of 0.919 suggests that opinions vary
somewhat among respondents, but majority agree that mobile banking services are always
available.

For the statement “It makes me comfortable to communicate with the bank.”, 4% strongly
disagree, 11% disagree, 28% are neutral, 48% agree, and 9% agree. The mean response is
3.47, indicating that on average, respondents agree that mobile banking service makes them
comfortable to communicate with the bank. The standard deviation of 0.948 suggests that
opinions vary somewhat among respondents, with a significant portion being neutral, but the
majority agree that mobile banking service makes them comfortable to communicate with
the bank.
 2.1.3 Descriptive Analysis of Security
Table 2.9 Descriptive Analysis of Security

Statements SD D N A SA M S.D.

Security [Mobile banking is secure

and safe.] 2 13 23 56 6 3.51 0.87
Security [I am not afraid to disclose
credit card and account details on
the
internet.] 16 26 34 21 3 2.69 1.07
Security [I prefer to go to bank for my
banking business due to the security
reasons.] 5 27 42 24 2 2.91 0.889
(Source: Field Survey,2024)

Table 2.9 shows the descriptive analysis of Security. For the statement “Mobile banking is
secure and safe.”, the responses show that the majority of the respondents (56%) agree that
mobile banking is secure and safe. The mean score of 3.51 suggests that respondents, on
average, tend to agree with the statement. The standard deviation of 0.87 indicates that the
responses are fairly tightly clustered around the mean, indicating a relatively high level of
agreement among the respondents.

For the statement ‘I am not afraid to disclose credit card and account details on the
internet.”, the responses show the majority of the respondents are neutral and either disagree
or strongly disagree with the statement, indicating that they are indeed afraid to disclose
such information on the internet. The mean 2.69 suggest that, on average, respondents tend
to disagree with the statement. The relatively high standard deviation of 1.07 suggests that
there is a wide range of responses with some respondents strongly disagreeing and others
strongly agreeing with the statement.

For the statement “I prefer to go to bank for my banking business due to security reasons.”,
the responses show that a significant proportion of the respondents (27%) disagree with the
statement, indicating that they do not prefer to go to the bank for security reasons. However,
majority of the respondents are neutral and agree with the statement, suggesting that security
concerns do play a role in their banking decisions. The mean of 2.91 indicates that, on
average, respondents tend to agree with the
statement, while standard deviation of 0.889 suggests that the responses are fairly clustered
around the mean.

2.1.4 Descriptive Analysis of Responsiveness

Table 2.10 Descriptive Analysis of Responsiveness

Statements SD D N A SA M S.D.

Responsiveness [My bank always

supports its mobile banking users.] 1 4 30 60 5 3.64 0.689
Responsiveness [My bank provides
required information to its mobile
banking users. ] 0 2 22 68 8 3.82 0.593
Responsiveness [My bank responses
quickly to our complaints about
mobile banking.] 2 19 33 45 1 3.24 0.842
(Source: Field Survey, 2024)

Table 2.10 shows the descriptive analysis of responsiveness. The first statement “My bank
always supports its mobile banking users.”, suggests that most respondents (60%) agree that
their bank supports its mobile banking users. The mean 3.64 indicates a slightly positive
attitude towards the statement. However, the standard deviation of 0.689 suggests that
responses are moderately dispersed, indicating that some respondents may have had
different experiences with their bank’s mobile banking support.

The second statement “My bank provides required information to its mobile banking users.”
Suggests that a majority of respondents (68%) agree that their bank provides required
information to its mobile banking users. The mean is 3.82 which indicates a relatively
positive attitude towards the statement. The standard deviation of 0.593suggests that the
respondents were slightly dispersed, indicating that some respondents may have had varying
experiences with their bank’s provision of mobile banking information.

The third statement “My bank responses quickly to our complaints about mobile banking.”,
suggests that a majority of respondents (45%) agree to it. However, the mean of 3.24
indicates a slightly negative attitude towards the statement. The standard
deviation of 0.842 suggests that the responses were quite dispersed, indicating that
respondents may have had very different experiences with their bank’s responsiveness to
mobile banking complaints.

2.1.5 Descriptive Analysis of Transaction Speed

Table 2.11 Descriptive Analysis of Transaction Speed

Statements SD D N A SA M S.D.

Transaction Speed [The

transactional speed of mobile
banking is always
strong.] 2 19 20 57 2 3.38 0.885
Transaction Speed [It saves my
time.] 1 0 8 61 30 4.19 0.662
Transaction Speed [Its speed makes
me easier to do banking
transactions.] 1 2 13 61 23 4.03 0.731
(Source: Field Survey,2024)

Table 2.11 shows the descriptive analysis of transactional speed. The first statement “The
transactional speed of mobile banking is always strong.”, suggests that a majority of
respondents (57%) agree to this statement. The mean of 3.38 indicates a slightly positive
attitude towards the statement, but the standard deviation of 0.885 suggests that responses
were moderately dispersed, indicating that some respondents may have had different
experiences with mobile banking transaction speed.

The second statement “It saves my time.”, suggests that majority of respondents (61%)
agree to this statement. The mean 4.19 indicates a relatively positive attitude towards the
statement. The standard deviation of 0.662 suggests that the responses were slightly
dispersed, indicating that some respondents may have had different experiences with mobile
banking’s time-saving potential.

The third statement “Its speed makes me easier to do banking transactions.”, suggests that a
majority of respondents (61%) agree to this statement. The mean of 4.03 indicates a
relatively positive attitude towards the statement. The standard deviation of 0.731 suggests
that the responses were moderately dispersed, indicating that some
respondents may have had different experiences with mobile banking transaction speed
and ease of use.

2.1.6 Descriptive Analysis of Customers Satisfaction

Table 2.12 Descriptive Statistics of Customers Satisfaction

Statements SD D N A SA M S.D.

Customer Satisfaction [I am satisfied

with service quality of my mobile
banking.] 0 7 18 69 6 3.74 0.676
Customer Satisfaction [The transaction
speed of my mobile banking service is
satisfactory.] 0 6 16 74 4 3.76 0.622
Customer Satisfaction [I am satisfied
with price charged by bank for my
mobile banking service.] 2 24 28 42 4 3.22 0.927
Customer Satisfaction [I am satisfied
with responsiveness of my mobile
banking service.] 0 8 29 60 3 3.58 0.684
Customer Satisfaction [The security
system of my mobile banking service is
satisfactory.] 1 6 32 53 8 3.61 0.764

Customer Satisfaction [I will

recommend mobile banking for others.] 0 1 17 60 22 4.03 0.658
(Source: Field Survey, 2024)

Table 2.12 shows the descriptive analysis of Customers Satisfaction. The Mean and
S.D for the first question “I am satisfied with service quality of my mobile banking.” is 3.74
and 0.676 respectively. The mean and S.D for the second question “The transaction speed of
my mobile banking service is satisfactory.” is 3.76 and 0.662. The mean and S.D for the
third question “I am satisfied with responsiveness of my mobile banking service.” is 3.22
and 0.927. The mean and S.D for the fourth question “I am satisfied with responsiveness of
my mobile banking service.” is 3.61 and 0.764 respectively. The mean and S.D for the fifth
question “I will recommend mobile banking for others.” is 4.03 and0.658 respectively.
Based on the above table we can analyze the customer satisfaction levels with various
aspects of their mobile banking services as follows:

i. Service Quality: Most customers (69%) agree that they are satisfied with the
service quality of their mobile banking. The percentage of customers who
either disagree or strongly disagree with the statement is very low (7% and
0%, respectively). This indicates that the bank is delivering satisfactory service
quality to its customers.
ii. Transaction speed: A large proportion of customers (74%) find the transaction
speed of their mobile banking services satisfactory. The percentage of
customers who either disagree or strongly disagree with the statement is very
low (6%, 0%, respectively). This suggests that the bank is providing a fast and
efficient mobile banking service.
iii. Price: A significant proportion of customers (42%) agree with the price
charged by the bank for their mobile banking services. However, a
considerable number of customers either disagree or have a neutral opinion
about the pricing strategy (24%, and 28%, respectively). This suggests that the
bank may need to review its pricing strategy to ensure that it is perceived as
reasonable by the majority of customers.
iv. Responsiveness: Most customers (60%) find the responsiveness of their
mobile banking services satisfactory. The percentage of customers who either
disagree or strongly disagree with the statement is very low (8% and 0%,
respectively). This indicates that the bank is providing prompt and efficient
customer service to its mobile banking customers.
v. Security: A majority of customers (53%) agree that the security system of
their mobile banking services is satisfactory. However, a significant
proportion of customers have a neutral opinion about the security system
(32%), indicating that the bank may need to improve its security measures to
ensure that customers feel more confident about using their mobile banking
services.
vi. Recommendation: A larger proportion of customers (60%) agree that they
would recommend mobile banking services to others. However, a significant
proportion of customers either disagree or have a neutral opinion about
recommending mobile banking to others (1% and 17%, respectively). This
 suggests that the bank needs to work on improving customer satisfaction levels
to ensure that customers become more likely to recommend their mobile banking
services to others.
Overall, the analysis suggests that the bank is performing well in terms of service
quality, transaction speed, and responsiveness of mobile banking services.
However, the bank may need to focus on improving pricing strategies,
security measures, and overall customer satisfaction levels ensure that
customers are more likely to recommend their mobile banking services to
others.

2.7 Correlation Analysis

Table 2.13 Correlations between customer satisfaction and factors affecting it

SQ P TS R S CS
SQ 1 0.137 .333** .260** 0.184 .365**
0.174 0.001 0.009 0.067 0
P 1 .350** 0.013 -0.172 0.121
0 0.897 0.086 0.23
TS 1 .358** 0.007 .524**
0 0.943 0
R 1 .365** .578**
0 0
S 1 .259**
0.009
CS 1
** Correlation is significant at the 0.01 level (2-tailed).

(Source: Field Survey, 2024)

In Table 2.13 there are five Pearson correlation analyses provided, each examining the
between a different independent variable and customer satisfaction.

In the first analysis, service quality and customer satisfaction are positively correlated with a
correlation coefficient of r = 0.365, which indicates a moderate positive relationship. The p-
value is 0.000, which is less than the significance level of 0.01(2- tailed), indicating that the
correlation is statistically significant. Therefore, we can say that there is a significant
positive relationship between service quality and customer satisfaction.In the second
analysis, price and customer satisfaction are positively correlated with acorrelation
coefficient of r = 0.121, which indicates a weak positive relationship.
However, the p-value is 0.230, which is greater than the significance level of 0.01(2-
tailed), indicating that the correlation is not statistically significant. Therefore, we cannot
conclude that there is a significant relationship between price and customer satisfaction.

In the third analysis, transaction speed and customer satisfaction are positively correlated
with a correlation coefficient of r = 0.524, indicating a moderate positive relationship. The
p-value is 0.000, which is less than the significance level of 0.01(2- tailed), indicating that
the correlation is statistically significant. Therefore, we can say that there is a significant
positive relationship between transaction speed and customer satisfaction.

In the fourth analysis, responsiveness and customer satisfaction are positively correlated
with a correlation coefficient of r = 0.578, indicating a strong positive relationship. The p-
value is 0.000, which is less than the significance level of 0.01(2- tailed), indicating that the
correlation is statistically significant. Therefore, we can say that there is a significant
positive relationship between responsiveness and customer satisfaction.

In the fifth analysis, security and customer satisfaction are positively correlated with a
correlation coefficient of r = 0.259, which indicates a weak positive relationship. The p-
value is 0.009, which is less than the significance level of 0.01(2-tailed), indicating that the
correlation is statistically significant. Therefore, we can say that there is a significant
positive relationship between security and customer satisfaction, although the strength of the
relationship is weak compared to the other factors analyzed.

2.8 Regression
Table 2.14 Model Summary

Adj. RStd. Error of

Estimate F Sig.
Model R R Square Square
1 .689a 0.475 0.447 2.44564 17.034 .000b
a Predictors: (Constant), Security, Transaction Speed, Services, Price, Responsiveness
(Source: Field Survey,2024)

The table 2.14 presents a model summary of a regression analysis of relationship between
customer satisfaction and five independent variables: price, service quality, security,
responsiveness, and transaction speed.
The multiple R value of 0.689 suggests a moderate positive linear relationship between the
independent variables and customer satisfaction. The R-squared value of
0.475 indicates that approximately 47.5% of the variability in customer satisfaction can be
explained by the five independent variables included in the model. The F-value of 17.034
with a significance level of 0.000 indicates that at least one of the independent variables has
a significant effect on customer satisfaction. This implies that the overall model is
statistically significant in predicting customer satisfaction.

Table 2.15 Coefficients of regression equation

Variables Unstandardized Coefficients t Sig.

B Std. Error Beta
(Constant) 3.599 2.8 1.285 0.202
Service 0.27 0.163 0.135 1.655 0.101
Price -0.018 0.209 -0.007 -0.086 0.932
Transaction Speed 0.589 0.153 0.342 3.84 0
Responsiveness 0.71 0.16 0.389 4.446 0
Security 0.167 0.157 0.088 1.065 0.29
Dependent Variable: Customer Satisfaction

The finding from the Table 2.15 shows that customer satisfaction explained by service
(p=0.1.1), price (p=0.932), transaction speed (p=0.000), responsiveness (p=0.000) and
Security (p=0.290). It reveals that the transaction speed and responsiveness as the major
predictors of customer satisfaction whereas, service, price and security are not as much
statistically significant predictors at 5% level at the significant.

2.9 Major Findings

2.9.1 Findings

The study found that most respondents were male, with 59 males and 41 females participating.
The majority of the respondents, 71%, were aged between 20 and 30 years, followed by 19% in
the 30-40 age group, 9% above 40 years, and only 1% below 20 years. When asked about how
they learned about mobile banking services, 41 respondents cited family or friends as their source,
37 from the internet, 21 from bank leaflets or advertisements, and only 1 respondent from
newspapers or magazines. In terms of usage frequency, 34% of respondents reported using mobile
banking services regularly, 28% used them weekly, 16% occasionally, 12% monthly, and 10%
rarely. The study also revealed a strong positive relationship between service quality and
customer
satisfaction. Similarly, price charged for mobile banking services was found to have a favorable
impact on customer satisfaction. Transaction speed and responsiveness were identified as
significant factors positively influencing satisfaction levels. Furthermore, most customers
perceived mobile banking services as secure and safe to use. Although banks perform well in
transaction speed and responsiveness, the study suggests the need for improvement in service
quality, pricing policies, security measures, and overall customer satisfaction to encourage more
recommendations of mobile banking services. Finally, statistical analysis showed that transaction
speed and responsiveness are major predictors of customer satisfaction, whereas service quality,
price, and security were not statistically significant at the 5% significance level.
(Asfour & AL-Haddad, 2014) “Effect of mobile banking on boosting customer satisfaction”,
privacy has the greatest influencing power among dependability, accessibility, privacy,
efficiency, security, ease of navigation, and flexibility while transaction speed and
responsiveness are more significant in this study.

Similarly, according to the study of (Gomachab, 2018) “The influence of mobile banking
on customer satisfaction.” reliability was the most significant factor, while cost was the
least significant factor among correctness, security, convenience, responsiveness,
usefulness, transaction speed, cost, and reliability.

Moreover, according to (Khan, Lima, & Mahmud, 2018) “Understanding the service quality
and customer satisfaction of mobile banking in Bangladesh: Using a structure model.”
tangibility has least impact on customer satisfaction while dependability and responsiveness
are main determinants.

CHAPTER III: SUMMARY AND CONCLUSION

3.1 Summary of the Study

The present study was undertaken to investigate the level of customer
satisfaction with mobile banking services among users in Kathmandu. With the
growing penetration of smartphones and internet connectivity, mobile banking
has become an increasingly popular channel for accessing banking services. The
study aimed to assess how customers perceive these services in terms of
usability, security, transaction speed, reliability, and customer support. By
gathering primary data
through questionnaires from a diverse group of mobile banking users, the study
sought to identify the strengths and weaknesses of existing mobile banking
platforms and the factors influencing customer satisfaction.
The findings indicate that mobile banking has become an essential service for
many customers in Kathmandu, particularly among the youth and those with
higher educational qualifications. These groups tend to be more comfortable
with technology and are more frequent users of mobile banking. The
convenience of accessing banking services anytime and anywhere was highly
appreciated, with many respondents highlighting the ease of performing
transactions such as fund transfers, bill payments, and balance inquiries. Speed
of transaction processing emerged as a significant factor contributing to
satisfaction, reflecting customers' desire for quick and efficient services.
Despite the positive reception, the study also revealed several challenges that
customers face. Security concerns were prominent, with some users expressing
doubts about the protection of their sensitive information and the risk of cyber
threats. This highlights the need for banks to enhance their security protocols
and increase customer awareness of safety measures. Technical issues such as
app crashes, login failures, and delayed transaction confirmations were
commonly reported, leading to frustration and reduced trust in mobile banking
services. Network instability in some areas further compounds these issues,
indicating infrastructural challenges beyond the banks’ immediate control.
Customer support services were another area of concern. Many respondents felt
that assistance was not always readily available or effective when they
encountered problems. Delays in resolving technical difficulties or answering
queries negatively impacted overall satisfaction. Additionally, the study found
that some users are not fully aware of all the features offered by mobile banking
applications, which limits their ability to utilize these services to the fullest. This
suggests a gap in communication and education that banks need to address.
The demographic analysis highlighted that satisfaction levels are influenced by
factors such as age, education, and frequency of use. Younger and more
educated users demonstrated higher satisfaction, likely due to better familiarity
with technology and digital services. Older customers and those with limited
digital literacy face usability challenges, emphasizing the importance of
designing
mobile banking apps that are accessible and user-friendly for all segments of the
population.
In summary, while mobile banking services in Kathmandu have gained
significant traction and provide considerable benefits, there remain important
areas for improvement. Banks must focus on enhancing the technological
reliability of their platforms, strengthening security measures, and providing
robust customer support. Increasing customer education and awareness about the
full range of mobile banking features is also essential. Addressing these
concerns will not only improve customer satisfaction but also encourage wider
adoption of mobile banking, supporting financial inclusion and the
modernization of banking services in Nepal.
This study contributes to the existing literature by providing empirical data
specific to Kathmandu’s context, helping banks and policymakers understand
user needs and challenges. Future research could explore changes in satisfaction
over time, compare different banking institutions, and investigate the impact of
emerging technologies on customer experiences.

Conclusion of the study

This study was conducted to assess the level of customer satisfaction toward
mobile banking services among users in Kathmandu. With the increasing
adoption of smartphones and internet accessibility, mobile banking has become
an integral part of modern banking services. It provides customers with the
convenience of conducting transactions anytime and anywhere, reducing the
need to visit physical bank branches. The study aimed to understand users’
perceptions, satisfaction levels, and the challenges they face while using mobile
banking platforms.
The findings reveal that mobile banking is widely accepted, particularly among
younger and educated customers in Kathmandu. Most respondents expressed
moderate to high satisfaction, especially valuing the ease of use and the speed of
transactions. These features contribute significantly to customer convenience,
which is a crucial factor in mobile banking adoption. Customers appreciate the
ability to perform banking activities seamlessly, which saves time and effort
compared to traditional banking methods.
However, some concerns remain regarding the security of mobile banking
services. Although many users feel generally secure, there is still anxiety about
potential data breaches, unauthorized transactions, and cyber threats. This trust
deficit highlights the need for banks to strengthen security measures and
improve communication about how customers’ data and transactions are
protected. Furthermore, the study showed that customer support services are
sometimes inadequate or delayed, which negatively affects user satisfaction,
particularly when users face technical issues.
Technical problems such as app crashes, login failures, delayed transaction
confirmations, and network connectivity issues were frequently reported. These
issues emphasize the importance of a reliable technology infrastructure and
timely maintenance of mobile banking platforms. Additionally, a lack of
awareness about the full range of mobile banking features limits some users’
ability to benefit fully from the services, indicating a need for banks to invest in
user education and awareness campaigns.
The demographic analysis revealed that satisfaction varies with age and
education. Younger and more digitally literate users generally have higher
satisfaction levels, while older users or those with limited technological
experience face usability challenges. This suggests that banks should tailor their
mobile banking applications and support services to accommodate the diverse
needs of their customer base.
In light of these findings, it is clear that banks need to focus on improving both
the technological and service aspects of mobile banking. Enhancing user
interface design to make apps more intuitive and accessible will encourage
broader usage and reduce frustrations. Security protocols must be robust and
transparent to build customer trust, while customer support should be responsive
and multi-channeled to effectively resolve user issues. Moreover, collaboration
with technology providers to ensure platform stability and reduce technical
failures is crucial for a smooth banking experience.
This study contributes valuable insights specific to Kathmandu’s mobile
banking environment, filling a gap in existing research. The findings provide
practical guidance for banks seeking to enhance customer satisfaction and
remain competitive in a digital landscape. Future research could explore
longitudinal
 trends in satisfaction, comparisons across different regions or banks, and the
impact of emerging technologies like biometric authentication and artificial
intelligence on mobile banking experiences.
In conclusion, mobile banking holds great potential to revolutionize banking
services in Kathmandu by offering convenience and efficiency. However,
sustained customer satisfaction requires continuous efforts to address security,
technical, and service-related challenges. By prioritizing these areas, banks can
improve their mobile platforms, foster greater customer loyalty, and support
financial inclusion, ultimately contributing to the modernization and growth of
Nepal’s banking sector.

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Appendices
Appendix A: Questionnaire
(Attach a copy of the questionnaire used for data collection here.)
Sample Questions:
1. How often do you use mobile banking services?
o Daily / Weekly / Monthly / Rarely
2. Rate your satisfaction with the following aspects of mobile banking (1- Very
Dissatisfied to 5- Very Satisfied):
o Ease of use
o Security
o Speed of transaction
o Reliability
o Customer support
3. What problems do you face while using mobile banking?
o [Open-ended]

Appendix B: Additional Data Tables or Figures

(Include any extra data tables, charts, or figures that support your analysis but
were not included in the main body.)
xx