1.1 Background to the Study
Mobile Banking includes using mobile phones where customers of Opay Digital Services used in examining or transferring money to other customers of banks even within the same bank or other financial institution customers in an effort for the bank customer to ensure satisfaction at any point in time. Clients use their smartphones to perform financial transactions through internet in smartphone at any time in Opay digital Services. Mobile Banking is banking "on the move" with the help of a mobile telecommunication gadget. It is likewise called M-Banking or in some instances Short Message Service (SMS) Banking, the term used when balance checks are carried out and transactions are made through a mobile phone. The process starts when a message is transmitted with a mobile phone and it ends up on the bank's IT facilities which after that processes the transaction and gives responses to the originator via the same mobile phone. Smart phones continue to be one of the most convenient means to provide mass market as against branch banking in Opay Digital Services irrespective of your location as long as there is network coverage and provided you have data on your smart phone.
Activities in the bank have changed from the manual methods of providing services to digital banking. In the time past, every transaction in banks was carried out manually in a banking hall over the counter where clients will spend long hours on queues to make deposits or withdraw money. However, after the introduction of e-banking in the Nigeria in 2013, provision of services improved and the rivalry between banks increased significantly (Inegbedion, et al 2020). For instance, Agboola (2006) examined electronic payment systems and tele-banking services in Nigeria. The study disclosed that there was an extremely moderate move away from cash. Some payments are currently being automated and absolute volumes of cash transactions have declined. Many developed nations such as the United Kingdom, Norway, Denmark, Sweden, and lots of others have embraced a modernized state which is cashless and this is promoted via e-banking devices (Inegbedion, et al 2020), unlike Nigeria that is lagging behind.
Issues of security relative to financial transactions have constantly been of utmost worry to every banking customer; the day-to-day news on both the electronic and print media attests to customers' worries. Also, a great deal of financial institution customers throughout the years have been defrauded due to the introduction of e-banking in the banking sector (Ololade & Ogbeide, 2017). Some members of the public have also knowingly or subconsciously rescinded to using e-banking in spite of its attendant advantages. The major issues to bank clients in Nigeria as for digital banking are concerned are network security and the security of the system in regards to personal privacy (Ikpefan et al 2018). Smartphones are now common and a basic aspect of daily life for a large percentage of the world population (Ovia, 2018). Additionally, innovations in mobile finances provide the potential to change the method clients perform financial transactions. Yet lots of banking customers around the world continue to be doubtful regarding the mobile financial services and the levels of security offered with these services (Mittal, 2018).
Previous studies such as Abigael, Sangoro and Philemon (2013) examine the impacts of mobile banking on customer satisfaction with specific interest on Equity bank of Eldoret town while Jane (2015) evaluated the efficiency of mobile banking on client’s satisfaction in banking services with reference to KCB Bank in Morogoro branch. Muhsina and Imran (2015) determine one of the most significant factors of customer satisfaction of mobile banking of second-generation financial institutions. Zohra and Kashif (2011) determine the essential factors of mobile technology adoption which affect customer satisfaction in Pakistan. Adewoye (2013) investigated the effect of mobile banking on service delivery in the Nigeria commercial banks. There is a need to carry this study since no studies from the previous studies have dealt with mobile money banking and customer satisfaction in Nigeria using Opay Digital Services as a case study in Nigeria.
1.2 Statement of the Problem
In the 1970s and 1980s, commercial banks in Nigeria were involved in conventional banking system where the marketing of financial services were carried out manually. There was an absence of 24 hours, seven days service delivery, conveniences and short waiting time. Practically all business transactions like opening of accounts, confirming of account balance, payment and transfer of funds were carried out in the banking hall. All financial institutions run in a competitive environment defined by changes in consumer demands, and uncertain environment. Studies by Ojokuku and Sajuyigbe (2012) and Balogun, Ajiboye and Dusin (2013) have revealed that financial institution automation continues to be the driver that will improve the marketing of financial services in this 21st century, help in getting rid of the drudgery related to manual techniques and change the method of the first-generation banks which was described as arm-chair banking. Likewise, they concurred that financial institution automation provide customers with very easy access to their accounts, reduces cost, convenience and influences client satisfaction positively.
Notwithstanding findings from studies on the advantages of financial institution automation, queues are still seen at ATM booths and banking halls, people barely discuss the accessibility of digital banking products in the Nigerian banking sector. The concern is, is financial institution automation (digital banking) truly meeting customers' satisfaction or pleasure? Likewise, difficulties related to financial institution automation usage cannot be ignored. In a developing nation like Nigeria, internet fraudsters steal customers' information through phishing and pharming. The privacy and security of customers' information gathered and held digitally and transferred via automation devices remain vulnerable, in addition to service inter-change congestion and slow internet connection. This brought a need for a study of this nature to be carried out and examine the level of satisfaction customers derive when going through the above-mentioned processes by using Opay Digital Services as a case study in Nigeria.
1.3 Objectives of the Study
The main objective of this study is to investigate mobile money banking and customer satisfaction in Nigeria using Opay Digital Services as a case study in Nigeria. However, the specific objectives are:
i) To assess the influence of consistency of Opay Digital Services automation factors on customer satisfaction.
ii) To establish the impact of safety of Opay Digital Services automation factors on customer satisfaction.
iii) To determine the effect of quality service enjoyment of Opay Digital Services automation factors on customer satisfaction.
1.4 Research Questions
The following statements were considered to be the research questions for this study:
i) What is the influence of consistency of Opay Digital Services automation factors on customer satisfaction?
ii) What is the impact of safety of Opay Digital Services automation factors on customer satisfaction?
iii) What is the effect of quality service enjoyment of Opay Digital Services automation factors on customer satisfaction?
1.5 Research Hypotheses
The following statements were considered to be the research hypotheses for this study:
i) There is no significant relationship between consistency of Opay Digital Services automation factors and customer satisfaction
ii) There is a significant correlation between safety of Opay Digital Services automation factors and customer satisfaction
iii) There is a significant relationship between quality service enjoyment of Opay Digital Services automation factors and customer satisfaction
1.6 Significance of the Study
The findings of this study will be of immense benefit to:
The management of Opay Digital Services, since it will help identify most of the challenges faced by the bank as well as the complaints tabled by the customers. Solutions will then be proffered on theses identified challenges. This will go a long way to help the bank achieve its corporate objectives.
The bank management and indeed the policy makers of the bank and other financial institutions to be aware of electronic banking system as a product of electronic commerce with a view to making strategic decisions.
This study will also be of benefits to the community and the society by creating awareness on the difference e-banking channels used by the banks and how they work.
The Federal Government of Nigeria on the need to provide basic infrastructures that will help develop, increase the growth and use of mobile banking in Nigeria.
1.7 Scope of the Study
The study was limited to mobile banking, a major concentration of Opay Digital Services when it comes to offering of banking services. Opay Digital Services is a major leading digital bank in Nigeria amongst others that offers a wide range of digital services. We shall have samples from customers who operate accounts with Opay Digital Services. The simple random sampling system will be used to evaluate the samples. Methods of data collection shall include interviews, questionnaire administration, and the direct observation of e-banking service to customer service delivery.
1.8 Limitations of the Study
Just two constraints can be said to be a major limitation to this study. They include:
This study findings cannot be generalized because it is consumer-based research and only one digital bank was covered as a case study.
The study focused only on some technological, behavioral, and attitudinal factors. It left out many customer-specific factors and other psychographic and behavioral factors including cost, perceived value, service quality determinations, which could have provided more significant insight on the innovation adoption process.