A conceptual framework for measuring e-Banking service quality and customer satisfaction: Integrating SERVQUAL and TAM in the context of Nepal

Ram Paudel; Laba Kumar Shrestha; Rajesh  Paudel

doi:10.55942/jebl.v4i3.539

Authors

Ram Paudel American Management University
Laba Kumar Shrestha American Management University
Rajesh Paudel Padmashree College, Kathmandu, Nepal

DOI:

https://doi.org/10.55942/jebl.v4i3.539

Keywords:

e-banking, SERVQUAL, technology acceptance model (TAM), customer satisfaction, trust, digital banking, service quality

Abstract

This conceptual paper develops a comprehensive framework of the analysis of the service quality and customer satisfaction in the e-banking industry of Nepal by modifying the SERVQUAL model with the Technology Acceptance Model (TAM). Despite the spread in e-banking adoption, especially in urban areas, the quality of digital services is still uneven, and it can be explained by the lack of infrastructure, digital literacy, and the existing security issues. The suggested framework integrates five fundamental SERVQUAL dimensions, i.e., reliability, responsiveness, assurance, tangibles, and empathy with TAM constructs, such as trust, perceived usefulness, and perceived ease of use. The trust is set as a mediating variable, and the access to digital infrastructure is appointed a contextual moderator. The purpose of the study is to provide a formal foundation of further empirical verification, using, say, the structural equation modelling. The proposed framework provides a theoretical approach to improving the digital banking strategy and creating user trust and thus can enhance inclusive financial participation in developing economies like Nepal

References

Aboobucker, I., & Bao, Y. (2018). What obstruct customer acceptance of internet banking? Security and privacy, risk, trust and website usability and the role of moderators. The Journal of High Technology Management Research, 29(1), 109–123. https://doi.org/10.1016/j.hitech.2018.04.010

Adhikari, K. P. (2019). Determinants of e-banking in Nepal. Management Dynamics, 22(2), 89–94. https://doi.org/10.3126/md.v22i2.30241

Adhikari, U., & Gyawali, S. (2023). Customer satisfaction of service quality: Assessing mobile banking practices. Journal of Tilottama, 1(1), 125–139. https://doi.org/10.3126/jtilottama.v1i1.64561

Alawneh, A., Altaany, F., & Azzam, A. (2013). A study and a modified instrument for investigating e-banking quality dimensions. Journal of E -Technology , 4(1), 15–27.

Amin, M. (2016). Internet banking service quality and its implication on e-customer satisfaction and e-customer loyalty. International Journal of Bank Marketing, 34(3), 280–306. https://doi.org/10.1108/ijbm-10-2014-0139

Balbin-Romero, G., Carrera-Mija, E., Serrato-Cherres, A., & Cordova-Buiza, F. (2022). Relationship between e-banking service quality based on the e-SERVQUAL model and customer satisfaction: A study in a Peruvian bank. Banks and Bank Systems, 17(4), 180–188. https://doi.org/10.21511/bbs.17(4).2022.15

Banstola, A. (2007). Prospects and challenges of e-banking in Nepal. The Journal of Nepalese Business Studies, 4(1), 96-107.

Chhetri, A. D. (2024). Customer satisfaction and perceived service quality in Nepal’s banking sector. Journal of Balkumari College, 13(1), 49–56. https://doi.org/10.3126/jbkc.v13i1.69499

Dongol, P., & Khadka, S. (2024). Determinants of customer satisfaction in Nepalese banking sector. Sadgamaya, 1(1), 12–16. https://doi.org/10.3126/sadgamaya.v1i1.66880

Gaudel, D. (2021). Users’ satisfaction of e-banking services in Nepal. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.3850674

Gautam, D. K., & Sah, G. K. (2023). Online banking service practices and its impact on e-customer satisfaction and e-customer loyalty in developing country of South Asia-Nepal. SAGE Open, 13(3). https://doi.org/10.1177/21582440231185580

Hizam, S. M., & Ahmed, W. (2019). A conceptual paper on SERVQUAL-framework for assessing quality of internet of things (IoT) services. International Journal of Financial Research, 10(5), 387–397. https://doi.org/10.5430/ijfr.v10n5p387

Jibril, A. B., Pobee, F., Gochhait, S., & Chugh, R. (2024). Breaking boundaries: Unveiling hurdles in embracing internet banking services in sub- Saharan Africa. Cogent Economics & Finance, 12(1). https://doi.org/10.1080/23322039.2024.2330436

Jeyaraj, S. S., Paramasivan, C., Sumathi, M., & Silpa, S. (2024). Navigating digital transformation in banking with cloud computing solutions. Open Journal of Business and Management, 12(06), 4227–4253. https://doi.org/10.4236/ojbm.2024.126212

Joshi, C. (2023). Measuring the relationship between service quality, customer satisfaction and customer loyalty in the banking sector of Nepal. Contemporary Research, 6(2), 52–71. https://doi.org/10.3126/craiaj.v6i2.60248

Jun, M., & Cai, S. (2001). The key determinants of internet banking service quality: A content analysis. International Journal of Bank Marketing, 19(7), 276–291. https://doi.org/10.1108/02652320110409825

Kapoor, N., Kapoor , T., Sisodiya, D. R., & Sushma, J. (2024). Impact of fintech: Revolution in banking and financial industry. 2024 IEEE 4th International Conference on ICT in Business Industry &Amp; Government (ICTBIG), 1–6. https://doi.org/10.1109/ICTBIG64922.2024.10911635

Karmacharya, B. (2022). Impact of Service Quality Dimensions on customer satisfaction in Nepalese financial institutions based on SERVPERF Model. Journal of Nepalese Business Studies, 15(1), 11–26. https://doi.org/10.3126/jnbs.v15i1.50375

Lamichhane, P. (2024). Drivers of service quality and customer satisfaction in Kathmandu Valley. Researcher CAB a Journal for Research and Development, 3(1), 1–15. https://doi.org/10.3126/rcab.v3i1.68418

Limbu, B. (2024). Satisfaction levels of customers with online banking sectors in Nepal (pp. 1–74) [Thesis]. https://urn.fi/URN:NBN:fi:amk-2024060922366

Lutfi, A. (2023). Factors affecting the success of accounting information system from the lens of DeLone and McLean IS model. International Journal of Information Management Data Insights, 3(2), Article 100202. https://doi.org/10.1016/j.jjimei.2023.100202

Malc, D., Dlačić, J., Pisnik, A., & Milfelner, B. (2023). The development of e-banking services quality measurement instrument: MPQe-BS. Sustainability, 15(16), Article 12659. https://doi.org/10.3390/su151612659

Mastran, S. (2021). Opportunities and challenges of online banking in Nepal. The Batuk, 7(2), 37–51. https://doi.org/10.3126/batuk.v7i2.39498

Panwar, P. (2024). Challenges and opportunities of AI in banking sector. Indian Scientific Journal of Research in Engineering and Management, 08(04), 1–5. https://doi.org/10.55041/ijsrem30719

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1985). A conceptual model of service quality and its implications for future research. Journal of Marketing, 49(4), 41-50.

Parasuraman, A., Zeithaml, V. A., & Berry, L. L. (1988). Servqual: A multiple-item scale for measuring consumer perc. Journal of retailing, 64(1), 12.

Rubanov, P. M. (2020). Transformation of the banking sector in the digital era. Mechanism of an Economic Regulation, 4, 110–118. https://doi.org/10.21272/mer.2019.86.11

Sah, G. K. (2023). Consumers’ attitudes and behavioral intentions on internet banking in Nepal. Dristikon a Multidisciplinary Journal , 13(1), 83–96. https://doi.org/10.3126/dristikon.v13i1.56056

Sapkota, N., Paudel, N., Subedi, D. K., Bhattarai, R., & Shrestha, R. (2018). Role of the banking sector. American Scientific Research Journal for Engineering, Technology, and Sciences, 42(1), 75-88. https://www.linkedin.com/pulse/role-banking-sector-swarnam-shanmugam

Shrestha, B., & Agrawal, N. (2023). Influence of digital finance service worth on customer satisfaction in Nepal. Journal of Commerce Management and Tourism Studies, 2(3), 192–198. https://doi.org/10.58881/jcmts.v2i3.106

Subedi, D. P., & Adhikari, S. N. (2023). Impact of e-banking on service quality in Nepalese commercial banks. Nepalese Journal of Management and Technology, 13(2), 41–53.

Subedi, P. P., & Tamang, A. (2023). Factors influencing consumer adoption of online banking in Nepal. The Journal of Nepalese Business Studies, 16(1), 99–111. https://doi.org/10.3126/jnbs.v16i1.62386

Thapa, M. (2023). E-banking services and customer satisfaction with reference to Nepalese banking sector. Journal of Business and Social Sciences, 5(1), 55–68. https://doi.org/10.3126/jbss.v5i1.72446