Does Digital Banking Affect Customer Satisfaction? Evidence from Southwest Nigeria


  • Rasheed Adesoye Yusuf
  • Oluyemi Philip Ologunwa


Mobile banking, Internet banking, Customers satisfaction


There has been a rapid and significant branch office expansion programmes in the banking
industry with a significant increase in the volume of customers’ transactions, which crave for
survival and profitability. This study therefore examined the effect digital banking on customers’
satisfaction among the deposit money banks in Southwest Nigeria. The study employed a survey
research design. The results showed that the deployment of various mobile and internet banking
increases customer satisfaction in the banking sector. The empirical findings indicated that the
implementation of mobile banking and internet banking has substantially and positively
enhanced customers' satisfaction. However, customer satisfaction with mobile banking channel
and internet banking coefficient had a significant positive effect (β = 0.303 (4.90), 0.275 (4.21)
P<0.01) respectively on overall customer satisfaction with financial technology at 1%. The study
therefore concludes that customer satisfaction with mobile banking, and internet banking exerted
a very strong positive effect on overall customer satisfaction with financial technology among
DMBs in the study area. Thus, the study recommends that, deposit money banks should
concentrate more on mobile banking usability with a view to enhancing customer satisfaction
and driving improved bank performance.