Customers satisfaction with digital banking channels: the case of the Lebanese banking sector

Abstract

Purpose: The purpose of this research is to study the extent of adoption of DBCs, benefits of usage and service quality and their impact on the overall satisfaction with DBCs, in order to measure the satisfaction of digital technologies in the Lebanese banks, and to learn from this research if adopting digital channels would be beneficial or not for the Lebanese banks in different aspects. Design/methodology/approach: This research adopts a deductive approach, by using the data collected in statistical techniques to obtain significant results. The data was collected using a survey research strategy, the sample was selected using a random probability sampling method that represents the whole population ensuring a diverse sample of 315 participants. Findings: The findings show a positive relationship using Spearman’s correlation with the extent of adoption of DBCs as MB (0.544), IB (0.533), CC (0.528), ATM (0.455) and E-branches (0.440). We also found, a positive impact using multiple linear regression from the benefits of using DBCs by 45.4% and service quality by 80.2% on overall satisfaction with DBCs, with supporting studies that align with our results in the literature review. Research limitations: The limitations encountered while conducting this research, are the economic crisis in Lebanon that impacted the banking sector, followed by a pandemic which affected the banking sector’s activity. Also, the large volume of transactions and dependency on digital banking channels during the last year caused by multiple day closures of banks branches, have impacted the user experience for some bank customers while using the DBCs. Practical implications: The contribution in decision making on digitalization in the banking sector, serving as guidance to executives in banks, impacting banks strategies, and long-term goals. Finally, as an implication to the Lebanese banking sector, regulatory bodies and the Lebanese central bank should empower banks by providing a digital banking infrastructure, legalizing and regulating digitalization. Originality/value: This topic is one of the few studies conducted in the Lebanese banking sector, highlighting six digital banking channels offered by Lebanese banks. it will show how the industry is coping and embracing the dynamic changes of technology by measuring overall satisfaction with DBCs.