THE EFFECT OF MOBILE BANKING ON CUSTOMER SATISFACTION:
THE CASE OF ZANACO KITWE
BY
KIZIT0 ZULU
A Dissertation Submitted to the School of Business in Partial Fulfilment of the
Requirements for the Bachelor’s Degree in Business Administration of the Copperbelt
University
CERTIFICATION
We, the undersigned, certify that we have read and hereby recommend for acceptance by the
Copperbelt University, a Thesis entitled, The Effect of Mobile Banking on Customer
satisfaction, The Case of Zanaco Kitwe, in partial fulfilment of the requirements for the award
of the bachelor’s degree in Business Administration of the Copperbelt University.
___________________________
Project Supervisor
___________________________
Course Coordinator
____________________________________________________
DEAN COPPERBELT UNIVERSITY SCHOOL OF BUSINESS
DECLARATION AND COPYRIGHT
I, Athuman Shaban, declare that this proposal is my own original work and that it has
not been presented and will not be presented to any other university for a similar or
any other degree award.
Signature ___________________________
Date________________________________
©
This proposal is a copyright material protected under the Berne Convention, the
Copyright Act 1999 and other international and national enactments, in that behalf,
on intellectual property. It may not be reproduced by any means in full or in part,
except for short extracts in fair dealings, for research or private study, critical
iii
scholarly review or discourse with an acknowledgement, without the written
permission of Mzumbe University, on behalf of the author.
ACKNOWLEDGEMENT
I am deeply grateful to my supervisor Mr. John Saburi, for all the time taken to
correct and guide the process of the research, my family for their courage and the
Almighty God for guiding and seeing me through all the struggles of my studies
which would have been rather difficult without such support. Also All the people
who took their time to fill my questionnaire, I am most thankful.
iv
DEDICATION
This study is dedicated to all women who had been struggling to break gender
inequality and to my sweet wife and children. You have been an inspiration to me
through your hard work, your commitments, your love for me and community, and
wisdom.
Thank you.
CHAPTER ONE
INTRODUCTION
This study will analyse the effect of mobile banking on customer satisfaction. This chapter
consists of the background, the problem statement, scope of the study, main objective, specific
objectives, research questions, significance of the study and the limitations to the study.
1.1 Background
Financial systems in Zambia has passed through different phases from the colonial times, postindependence and to date. At the time of independence, branches of foreign commercial banks
were denominating the banking system. The banks established locally to finance external trade
rather than developing local activities. However, the effect of their establishment was able to
stimulate at least certain sectors of local enterprise as traders and settlers deposited the proceeds
of their exports in local accounts.
1.2 Problem Statement
The introduction of mobile banking by banks in Zambia was received by its customers with
great enthusiasm that will iron out all the existing customers banking problems and in so doing
raise customer satisfaction levels. The bank thought that the system would make life easy for
the customers who would spend less time in queues. However many customers have received
mobile banking with mixed feelings. This raises questions like; does the introduction of mobile
banking process have an effect on customer satisfaction? In the past, the thinking of customers
‘was that the banking system was only for safe keeping of their money and accruing interest
on their savings. However, the present day customers’ demands have shifted from just safety
of money to how banks deliver their services. The reason is that the present day customer
requires efficient, fast and convenient services. Despite the introduction of mobile banking
services, long queues in banks are still witnessed. Thus, the study again seeks to investigate
whether mobile 2 banking has effect on customer satisfaction, whether customers not being
satisfied by unreliable services offered by the bank and associate mobile networks cause long
queues.
1.3 Scope of the Study
The study will be limited to Zambia National Commercial bank (ZANACO) customers of the
city of Kitwe.
1.4 General Objective The general overall objective of the study is to find out whether mobile
banking has effects on customer satisfaction.
1.5 Specific Objectives
 Finding out the leading factors affecting customer satisfaction.
 Identifying important elements of mobile banking which determine the overall customer
satisfaction.
 To examine the effect of reliability of mobile banking on customer satisfaction
 To evaluate the effect of access of mobile banking services on customer satisfaction 1.6
Research questions
 What are the leading factors affecting customer satisfaction?
 What are the important elements of mobile banking that determine the overall Customer
satisfaction?
 How reliable is mobile banking and how does this affect customer satisfaction?
 What is the effect of accessibility of mobile banking services on customer satisfaction?
1.7 Significance of the study
This study will be beneficial to different the stakeholders in the banking industry. To the
management of commercial banks, this study will highlight the financial effects of mobile
banking on the performance of their banks. Through the findings of this study, the management
will be able to strategize on how to realize maximum benefits from mobile banking. On the
other hand, the information gathered shall be use by central bank (BOZ) to formulate policies
especially those to do with regulating the mobile banking services in Zambia. The research
findings will add dimension that may help improve policy direction with regard to regulation
of mobile banking as well as factors that spur economic growth. 1.8 Limitation of the Study
No research is free from limitations the following below are the expected constraints to this
research:
 Inadequate research materials and facilities since there are inadequate secondary information
of the problem under study in Zambia.
 Time may not be enough to carry out the research
4 CHAPTER TWO
descriptive research design and quantitative research 200 respondents Bangladesh It has been
revealed that, transaction speed, security & trust, ease of use, accuracy of transaction, system
availability, responsiveness, Convenience and cost effectiveness are the most influential factors
for customer satisfaction. Only nine factors were chosen as the independent variables. Lack of
secondary data available due to inadequate publications on second - generation banking,
6 CHAPTER THREE
3.1 Research Instrument
This research will use a structured questionnaire with closed ended questions to collect
primary data from the customers of Zanaco bank. The closed-ended questions will be
developed on a five point Likert scale ranging from five (strongly agree) to one (strongly
disagree). To ensure validity of the research instruments, the instruments are presented to the
supervisor for checking and piloting. This aided in ensuring that the instrument was well
refined for data collection and eventual analysis. This data collected shall be direct from the
customers, as this will be the fastest and easy way of gathering the information.
3.2 Data collection
Both quantitative and qualitative approaches for collecting data will be used. One
questionnaire will be prepared for the bank customers. Once the questionnaire is structured
effectively, it will then be self-administered to ensure that high levels of accuracy are attained
and accurate data is collected.
3.3 Primary Sources
Primary data is gathered through questionnaire, interviews observation and experimental
studies (Kothari, 2004). This is information gathered directly from respondents and it involves
creating new data. For this research, data will be collected directly from the bank customers,
as this will be the fastest and easy way of gathering the information. 3.4 Secondary Sources
Secondary data is the information or records, which someone has already collected and
analysed. Secondary data may either be published or unpublished data (Kothari 2004).
Secondary data shall be collected from both unpublished and published data such as, articles
from journals, academic books and the internet, which are related to the variables. Other
sources will be company booklets, information manual and web site of the bank etc.
3.5 Target population
Sample size refers to the number of items to be selected from universe to constitute a Sample,
(Kothari, 2004) researchers consider drawing respondents from the population who meet the
test of representation to minimize sampling and bias. This study will be confined to Kitwe town
of the Copper belt Province of Zambia. The target respondents for this study will be 150
customers out of the total population of the bank customers of Zanaco Bank
3.6 Data collection
The research will use both quantitative and qualitative approaches in collecting data. The
questionnaire will be prepared for the bank customers as the respondents. Once the
questionnaire is structured effectively, it will then be self-administered to ensure that high level
of accuracy is attained so that accurate data is collected.
3.7 Data analysis
Analysis is a process of inspecting, transforming, and modelling data with the goal of
highlighting useful information, suggesting conclusions, and supporting decision-making. The
research will first establish that adequate data is collected through the administration of the
above-described instruments. Once ascertained, data duly collected will be analysed using
descriptive statistics.