Effects of Mobile Banking On Customer Loyalty among USIU-Africa Graduate Students

Abstract

The objective of this project was to examine the effects of mobile banking on customer loyalty among USIU-Africa graduate students. For a comprehensive analysis of this subject matter, the project was guided by several objectives related to the topic. The specific objectives for the project included: to examine the effect of speed of response of mobile banking on customer loyalty among the United States International University-Africa graduate students. To determine the effect of ease of product use of mobile banking on customer loyalty among the United States International University-Africa graduate students. To examine how reliability of mobile banking services affect customer loyalty among the United States International University-Africa graduate students. The study adopted a descriptive research design employing a quantitative approach solely. The target population comprised of USIU-Africa graduate students from three different graduate degree programs whereby a sampling frame of 2,068 students was obtained. From the target population, a sample of 335 respondents was attained using Yamane formula. For data collection, a closed-ended questionnaire was administered for the gathering of primary data. The collected data, including both inferential and descriptive statistics, was then analyzed by use of the statistical package for social sciences (SPSS) Version 22. The data was then presented using tables and figures hence allowing for ease of interpretation of the analyzed data. The research findings demonstrated that the speed of response of a mobile banking application significantly influences a customer’s choice of an application or the consistency of using the application. Specifically, the time taken before transaction as well as the time taken before the provision of services substantially influenced mobile banking application usage. The level of assistance offered also greatly influences a customer’s frequency of using a mobile banking application. The design of the mobile banking application also significantly affected the level of customer loyalty and the presentation of user navigation features influenced the customers’ selection and continued use of a given mobile banking application. The research findings showed that that ease of product use influences the choice and consistent use of an application. Some of the attributes of ease of product use of a mobile banking application that mainly affect customer loyalty are the ease of recognizing the application on the phone, clear and concise presentation of information, text legibility, and readability, and the effort exerted in the understanding of the various services presented within the application. On the reliability of mobile banking services effect on customer loyalty among the United States International University-Africa graduate students it was noted that the various features linked to mobile banking services’ reliability affected their constant use of certain mobile banking applications. The consistency of the mobile banking application to function as expected, the availability of simple and easy to follow instructions and transaction functions, the application’s ability to allow completion of transactions, and the provision of privacy and security, were the highly ranked attributes that determined a user’s choice and consistent use of a specific mobile banking application. The study concluded that there was significant relationship between speed of response and increased customer loyalty levels. The capacity of a mobile banking application to respond to customer requirements in a flexible and timely manner also greatly affect customer loyalty. It was concluded that the perceived ease of product use in mobile banking greatly affected the customers’ selection and continued use of the given application. Therefore, the ease of mobile banking application use is a critical determinant of customer loyalty. It was concluded that mobile banking services’ reliability affected customer loyalty in multiple ways and the element of trust among the customers influenced the degree of customer loyalty. The study recommends that for the enhancement of the speed of response and customer loyalty, mobile banking applications should also be quick in resolving issues encountered during transactions and processing customer complaints. The study recommends the constant testing of the ease of mobile banking application used by institutions to ensure that the customers can deem them as simple to exploit or operate in search of the desired financial objectives. The project recommends the consideration of the provision of convenience in mobile banking application before the launch and during an application’s lifecycle. Institutions can offer their customers convenience by ensuring that the applications function as expected.