IMPACTS OF INTERNET BANKING TO CUSTOMER SATISFACTION: THE
IMPACTS OF DIGITAL BANKING TO PNB TANJAY BRANCH
Submitted to:
Dr. Benjamin S. Villagonzalo
Submitted By:
Elnas, Mac Joe
INTRODUCTION
Rationale of the study
Through the years, banks have evolve their services in different ways to meet the
satisfaction of their clients. The services evolve in different aspects such as offering
financial needs, offering loans, different investment ideas, etc. this is also to be able to
compete to other banks and to cope up with the emerging technology. Technology is
affecting most of the lives of every individual today, with the use of this, people can now
share their ideas and thoughts which gives a huge impact on both the economic and the
business atmosphere. With this, banks also adopted change with the use and help of
technology and introduces online and internet banking. Since technological developments
in the banking sector have speedup communication and transactions for clients (Booz et
al., 1997), it also make them satisfied since this service gives them full access on their
accounts anywhere they are with the help of internet connection. Internet banking is
fastly growing across the world today. This move was used and adopted by the banks
worldwide to lessen their work, invite more clients in their banks and to meet customer
satisfaction. Customer satisfaction is defined based on the confirmation/disconfirmation
theory that states satisfaction results from a process of comparison where consumers
judge product satisfaction against their expectations about product performance. (Ho,
Chan & Hsu, 1999). Phillip Kotler (2000) defines customer satisfaction as a person’s
feelings of pleasure or disappointment resulting from comparing a product’s
perceived performance or “outcome” in relation to his or her expectations. According
to Hansemark & Albinsson (2004) satisfaction is an overall customer attitude towards a
service provider, or an emotional reaction to the difference between what customers
anticipate and what they receive, regarding the fulfillment of some need, goal or desire.
This gives ideas to the banks on how to serve their clients and gain their trust and assist
them on using this new way of banking without any fear about their funds on risk.
This new and easy way of banking affects the current and new customers of
Philippine National Bank in Tanjay City, Negros Oriental. PNB , being the only
commercial bank in Tanjay City plays a big role in spreading and teaching clients of the
City to adopt and use Internet banking. The customer satisfaction given to clients has
helped the branch attain the award for the whole Negros Oriental area. The focus of the
study is to determine and ascertain how the branch attained this award in the city and to
know how Internet Banking affects the production and branch operations that leads to
customer satisfaction
Statement of the Problem
The study was conducted to know how PNB Tanjay branch attained the award in the
enrollment of Internet Banking and to determine the factors they used to gain this
customer satisfaction and trust from their clients. The research study attempted to
ascertain the answers for the following questions:
1. How does the new accounts clerk able to enroll clients in Internet Banking?
2. What are the risk and complains from clients they have encountered?
3. How can this factors help the branch operations without the risk to lessen customer
satisfaction.
HYPHOTHESIS
1. How does the new accounts clerk able to enroll clients in Internet Banking?
The new accounts clerk has a high knowledge and experienced about Internet Banking
and its operations.
2. What are the risk and complains from clients they have encountered?
The risk of losing their money due to fraudulent acts online the complain that they do not
know how to use it.
3. How can this factors help the branch operations without the risk to lessen customer
satisfaction.
It will lessen the burden in branch operations but still be able to have the customer
satisfaction.
SIGNIFICANCE OF THE STUDY
The research study aims to evaluate the impacts of Internet Banking to the clients of
PNB Tanjay branch and the customer satisfaction they have. Through this study, we can
identify the contributing factors the branch have and the effects of this with their branch
operations and customer satisfaction.
For the other branches, the tips and informations gathered will help them in their
branches to achieve the ratings Tanjay Branch attained with the help of Internet banking
and will help them in the burden of bank operations everyday.
This study is significant for the bank and for the future researchers who have the
same interest of the study. The outcome of the study will give readers the impacts and
benefits of Internet Banking to bankers and the customers.
