Customers' perceptions of electronic banking delivery channels in Zimbabwe: A case of CBZ Bank (2013)

Abstract

The increased competition for customer’s deposits as a result of the financial sector liberalization and the advent of technology based systems has led banks to adopt electronic banking. Literature argues that the introduction of electronic banking allows banks to attract new customers, retain the existing ones, reduce operational costs and offer improved service. However, realization of these net benefits from investment in electronic banking entirely depends on adoption and usage by customers. Indeed, usage is conditioned by customers’ perceptions of attributes of the electronic banking system. Studies note that despite the low transaction cost and convenience offered through the electronic banking, most banks continue to experience long queues in their branches irrespective of the time of month. Thus, this study seeks to investigate how CBZ Bank customers’ perceive electronic banking. The study proposed that CBZ Bank customers have a negative perception of electronic banking.

The study used a structured questionnaire to collect data from 237 CBZ Bank customers. The response rate for the study was 79 percent. Empirical findings from the study showed that there is low usage of electronic banking among CBZ Bank customers and the most of the customers prefer to use the traditional brick and mortar banking. The results also showed that the main services used by CBZ Bank customers on electronic banking platform are balance inquiry and mini -statement requests. The study identified perceived security, perceived trust, perceived usefulness and attitude, perceived cost, perceived convenience, brand reputation, contact, perceived quality of service and perceived efficiency as factors that affect customers’ adoption of electronic banking. The study accepted the proposition that CBZ Bank customers have a negative perception of electronic banking. The study concluded that there is low usage of electronic banking and customers conduct their real financial transactions through branch banking. The study recommended that there is need for CBZ Bank to raise awareness and train staff on the usefulness, benefits and convenience of electronic banking to improve usage. The suggested area of future research is to conduct a similar study at industry level so that findings can be generalized across the industry.