Unveiling the Dynamics of E-Banking: A Comprehensive Analysis of Strategic Choices, Service Quality and Customer Satisfaction

Chidinma Esther Eze1, *Val Hyginus Udoka Eze2 and Ugwu Jovita Nnenna2

1Department of Education Foundations, Kampala International University, Uganda

2Department of Publication and Extension, Kampala International University, Uganda

*Corresponding Author: Val Hyginus Udoka Eze,, Kampala International University, Western Campus, Ishaka, Uganda

(ORCID: 0000-0002-6764-1721)


This article presents a thorough analysis of strategic decisions in the dynamic realm of electronic banking (e-banking), encompassing ATMs, Internet banking, and mobile banking. Examining varying levels of e-banking sophistication, it explores strategic choices faced by banks, considering critical factors influencing decision-making. Drawing from existing literature, the study delves into dimensions of e-banking service quality, emphasizing the absence of a universally applicable model. The research advocates further exploration for a standardized measurement framework. Additionally, it investigates the evolving role of the Internet in altering customer participation in service delivery, stressing nuanced understanding of service quality. Customer satisfaction is identified as pivotal, with the study establishing a direct link between service quality dimensions and long-term customer relationships. The article also explores perceived service value, highlighting its independent contribution to customer loyalty. Overall, it offers insights into strategic choices in e-banking, emphasizing seamless integration of electronic channels and customer-centric approaches for enhanced service quality and satisfaction in the evolving landscape.

Keywords: E-banking, Uganda, Customer satisfaction, Service Quality


In the dynamic landscape of modern banking, electronic banking (e-banking) has emerged as a pivotal focal point for financial institutions, revolutionizing the way they deliver services and engage with customers. This article provides a meticulous analysis of the strategic choices faced by banks as they navigate the rapidly evolving realm of e-banking. Encompassing a diverse array of electronic channels, including ATMs, Internet banking, and mobile banking, e-banking has become instrumental in enhancing customer services and optimizing operational efficiency. This comprehensive study delves into the varying degrees of e-banking sophistication, shedding light on the strategic decisions banks confront when adopting electronic channels. By drawing on existing literature, the article explores the dimensions of e-banking service quality, recognizing the elusive nature of a universally applicable model [1][2][3]. Emphasizing the need for further investigation, the research advocates for the development of a standardized measurement framework to comprehensively assess e-banking service quality. Addressing the evolving role of the Internet in shaping customer participation, the article underscores the necessity for a nuanced understanding of service quality within this dynamic context. Central to this exploration is the crucial aspect of customer satisfaction, establishing a direct link between service quality dimensions and the fostering of long-term customer relationships. The findings presented here highlight the impact of service quality on customer loyalty, positioning customer satisfaction as a strategic imperative for financial institutions in the e-banking landscape. Moreover, the article examines the concept of perceived service value in the context of e-banking, identifying it as a key antecedent to satisfaction and behavioral intentions. Even in cases where overall satisfaction may vary, perceived value emerges as an independent contributor to customer loyalty. These insights emphasize the need for financial institutions to adapt their strategies in the ever-evolving e-banking landscape, ensuring a seamless integration of electronic channels while prioritizing customer-centric approaches to enhance overall service quality and satisfaction [4][5][6][7]. In essence, this article serves as a valuable resource offering profound insights into the strategic choices faced by banks in the realm of e-banking. By exploring the intricate interplay between service quality, customer satisfaction, and perceived service value, it provides a roadmap for financial institutions to navigate and thrive in the dynamic landscape of electronic banking. This paper examines the strategic choices made by banks in adopting e-banking services and explores the evolving landscape, considering both established and emerging players.


In conclusion, this paper serves as a valuable resource offering profound insights into the strategic choices faced by banks in the realm of e-banking. By exploring the intricate interplay between service quality, customer satisfaction, and perceived service value. It also provides guidance for financial institutions to navigate and excel in the rapidly evolving landscape of electronic banking.


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CITE AS: Chidinma Esther Eze, Val Hyginus Udoka Eze and Ugwu Jovita Nnenna (2024). Unveiling the Dynamics of E-Banking: A Comprehensive Analysis of Strategic Choices, Service Quality and Customer Satisfaction. NEWPORT INTERNATIONAL JOURNAL OF CURRENT RESEARCH IN HUMANITIES AND SOCIAL SCIENCES 4(1):1-7.