The Influence of Internet Banking on Customer Loyalty: A Case of Stanbic Bank Zimbabwe

Abstract

The study aimed at investigating how internet banking contributes to customer loyalty particularly focusing on Stanbic Bank Zimbabwe. The main objective was to assess the influence of internet banking on customer loyalty at Stanbic Bank Zimbabwe and make recommendations. It was also centred on understanding the commitment of a customer to buying a product and to evaluate the quality of internet banking services offered by Stanbic Bank. In addition, the research aimed to examine the degree of ease of use associated with internet banking, measure the extent to which internet banking is convenient to customers, establish how organizational and technical infrastructure at Stanbic Bank supports internet banking and evaluate the degree to which an individual perceives that important others believe that he or she should use internet banking. This research employed a case study methodology as the main research design. The population were people affiliated with Stanbic Bank and purposive sampling for employees and random sampling for customers. A sample of 100 participants was used which consisted of employees of Stanbic Bank and some customers. The findings indicated that internet banking has ease of use however, locating the link to Internet Banking was a challenge to customers, customers value convenience and efficiency therefore Internet banking is useful. In addition, 66% agreed that Internet banking at Stanbic Bank was of good quality which is a reflection of the sufficiency of the organizational and technical infrastructure and 42% of respondents were in the 31-40 years’ age group which confirms that important others perception of the individual in using Internet Banking was important. The research revealed that a relationship between internet banking and customer loyalty exists even though internet banking is not the only determinant of customer loyalty. However, researchers should understand that link between these variables are moderated by several environmental factors to include but not limited to culture of respondents, contexts and causal order that exists between internet service quality and customer loyalty. On the other hand, the study revealed that efficiency, privacy and website design are the major integral determinants of internet banking services quality. The empirical results show that there is a direct relationship between internet banking service quality dimensions and customer satisfaction in the banking industry. An understanding of the factors, revealed in the study, allows bank managers and policy makers to undeviating efforts and resources most effectively and efficiently to increase the bank business in the long run and encourage new customers to adopt internet banking and to retain the existing ones. The research recommends that the better the quality of the internet banking service, the more customers become satisfied and loyal to the bank, Bank’s management should ensure that, banks expand the services and content customers can access online customers in order to make them loyal. Further, it recommends that it is very important for the bank to improve customer care and services and the bank should also look for other avenues in its operations, apart from improving internet banking quality, which will make customers satisfied.