The use of information and communications technologies (ICTs) have changed the way of conducting business transactions and meeting the growing demands of customers for most organizations (Mimako, Gyamfi and  Wandaogou, 2013). The use of ICTs has brought in new products, service market opportunities and developing more information systems that are business oriented and support management processes such as planning, controlling and co-ordination (Liao and Cheung, 2002; Liao and Cheung, 2008). One of the areas ICT has gained growing significance is in the banking sector where financial institutions seek to be more competitive, increase customer base, reduce transaction costs, improve the quality and timeliness of response, enhance opportunities for advertising and branding, facilitate self-service and service customization, and improve customer communication and customer relationship management (Garau, 2002).

Technology is making a tremendous impact upon service companies in general and the financial services sector is no exception (Worku, Tilahun and Tafa, 2016). The application of information and communication technology concepts, techniques, policies and implementation strategies to banking services has become a subject of fundamentals importance and concerns to all banks and indeed a prerequisite for local and global competitiveness in banking industry. As a result of this technological improvement business environment in financial sector is extremely dynamic and experience rapid changes and demands banks to serve their customer electronically (Worku et al., 2016).

E-banking have been widely used in developed countries and in developing economies; however, the spread of e-banking is much limited. As suggested by Claessens, Glaessner and Klingebiel (2000), developing countries in general have an advantage as they can learn from the experience of advanced economies.

During the recent years, the development of e-channels have dramatically changed the rules and operation in the banking industry

(Gunasekaran and Love, 1999; Worku et al., 2016). Aladwani mentioned that while the industry has moved instantly to deploy and offer new banking services via e-channels for customers and in consequence the e-banking services have boomed promptly (Aladawani, 2001).

Today, several financial institutions are endeavoring to emphasize customer–oriented services. For this sake, it is crucial to implement new banking services in order to develop and keep better relationships with customers. Hence building up competitive predominance almost depends on customers’ satisfaction with banking service. It is recognized that banks gaining higher customer satisfaction will have a conspicuous marketing ascendancy because the higher customer satisfaction is associated with greater revenues, increased cross-sell rations, higher customer retention and bigger market share (Gonzalez, Quesada, Picado, and Eckelman, 2004).

Today, almost all banks are adopting electronic banking as a means of enhancing service quality of banking services. They are providing electronic banking to their customers to increase customers’ satisfaction in banking service (Worku et al., 2016).

The evolution of e-banking started from the use of Automatic Teller Machine (ATM) and Finland is the first country in the world to have taken a lead in e-banking (Mishra and Kiranamai, 2009).

But it should be realized that electronic banking services is a brain child of Information and Communication Technology (ICT) that made it possible for service providers and their customers in developing economies to enjoy a good semblance of the services enjoyed in the developed societies (Ogunlowore and Oladele, 2014). Electronic banking services have afforded banks the opportunities to impress customers which encourage them to keep coming back. Today, it would be difficult to see any bank in the country that does not render one form of electronic banking service or the other, even banks in the most remote parts of the world.


Prominent change in global commercial behaviours has improved customer demand of banking services. This revolution has set a motion in the banking sector for the provision of a payment system that is compatible with the demands of the electronic market (Balachandher, Vaithilingam, Norhazlin, & Rajendra, 2001). Thus, with rest of the world, Nigerian consumers are on the quick move to digital banking and no doubt that automation of banking procedures has unlocked new door of prospects for banking sector. In order to satify customers the organizations always look at the continuous improved methods of serving their clients better than their competitors, with the large pool of customers, there is demand for instant response and solution to the customers problem without neccesarily interfacing with the employees’ of the company there comes the need for modern technological ways of attending to the customers electronically. It is as the result of the above statement that electronic-banking has gained a solid ground in the banking industry for customers’ service.

The researchers’ careful observation of the GTBank customerts’ use of e-banking facilities has shown  customers reaction of the electronic banking services in different perspective which potrait a picture that they are loyal (disloyal), retain (one off transaction) and the quality of service is ok (not ok) .   It is to this effect that the researcher seeks to determine the “effect of e-banking on customer satisfaction in the GTBank Nig Plc. Makurdi branch.



The main objective of the study is to determine the effect of e-banking on customer satisfaction in GTBank, Nig. Plc. Makurdi branch. The specific objectives are to;

  1. determine the effect of e-banking on customer loyalty in Guaranty Trust Bank Plc
  2. determine the effect of  e-banking on service quality of  Guaranty Trust Bank Plc
  3. examine the relationship between e-banking and customer retention  in Guaranty Trust Bank Plc


The research questions for the study are;

        i.            to what extent does e-banking affect customer loyalty in Guaranty Trust Bank Plc

      ii.            what is the effect of  e-banking on service quality of  Guaranty Trust Bank Plc

    iii.            what is the relationship between e-banking and customer retention  in Guaranty Trust Bank Plc


The hypotheses for the research work are;

Ho1:     there is no significant effect of e-banking on customer loyalty in Guaranty Trust Bank Plc

Ho2:     there is no significant effect of e-banking on service quality in Guaranty Trust Bank Plc

Ho3:     there is no relationship between e-banking and customer retention in Guaranty Trust Bank           Plc




First the study will be useful for Nigerian commercial banks in order to see the impacts of e-banking on customers’ satisfaction in comparison with the ordinary mortar and brick banking system. Second it helps in understanding what attitude customers’ have towards e-banking and what actions should the banks take in order to benefits from the opportunities and how to overcome the challenges. Third The outcome of this study will be of immense benefit to the management of GTB Bank Nigeria Plc, since it will help identify most of the challenges faced by the banks as well as the complains table by the customers. Lastly, this research will alert bankers of tomorrow’s problems today in order to get the intended customers satisfaction as this service can be said it is at infant stage in the country.


In assessing the impact of e-banking on customers’ satisfaction of Guaranty Trust bank which was chosen because it is the only banks that started to provide at least one electronic banking payment systems to customers in the city. The study will also see whether or not the usage is related to age, educational status and occupation. Last but not least the study will seek to ascertain how customer know about what e-banking means and how they see the challenges and opportunities of e-banking in the city.


e-banking: A method of banking in which the customer conducts transactions electronically via the Internet.

Customer’s satisfaction: Is a marketing term that measures how products or services supplied by a company meet or surpass a customer's expectation.

Customers Retention: This is the ability of a customer to patronize the bank for a repeated time and become more of a stakeholder of the bank and he/she is ready to stay with the bank for a long period of time.