The correlation between Zigama Credit and Savings Bank’s (CSS) online financial services and customer satisfaction

1David Nyambane and 2Rutsimba Emmanuel Kazungu

1Faculty of Business and Management, Kampala International University, Western Campus, Uganda.

2Faculty of Business and Public Administration of Mount Kenya University Kenya.


The study titled Enhancing Customer Satisfaction through Online Financial Services in Rwanda utilized a questionnaire survey to collect data from a target population of 72,000 Sigma Credit and Savings Bank members. The sample size of 99 was determined using Slovene’s formula. Data were acquired through self-administered questionnaires and presented via tables and pie charts. The questionnaire design ensured accurate measurement, consistency, and reliability of the gathered information. Regarding the first research objective focusing on the benefits of online banking at Zigama Credit and Savings Bank, out of 93 respondents, the study discovered that various factors contributed to the appeal of online banking. Specifically, 10.4% preferred the accessibility and abundance of smartphone applications, 7.3% valued money management control, 6% appreciated the convenience and time-saving aspect, 12.5% checked their account balance, 6.2% utilized fund transfers, bill payments, and ATM locating services, and 13.5% managed investments through online platforms. Additionally, respondents highlighted aspects such as a speedy loan process, simplified documentation, low processing fees, competitive interest rates, minimal repayment charges, transparent feedback, easy disbursement, and access to insurance facilities as crucial for their satisfaction. The study indicated a direct correlation between the increase in online services (by 75%) and a parallel increase (75.0%) in customer satisfaction. Regression analysis established an equation: Customer Satisfaction = 0.656 + 1.134. Online Banking, suggesting that a unit increase in online banking services corresponded to a 1.134 increase in customer satisfaction within ZIGAMA CSS.

Keywords: Online financial services, Customer satisfaction, Zigama Credit and Savings Bank, Internet banking, Transparency feedback.


For the past two decades, the banking sector has chosen a new service channel based on the progress of information technology in different countries all over the world. This has led to the development of banks, and the utilisation of new alternative distribution channels (credit card, Automatic Teller Machine (ATM) and the ATM networks; telephone banking; and Personal Computer (PC) banking to reach their customers. In addition, customers’ transaction and communication abilities have been fostered by the developments of information technology since Information technology enabled electronic channels to perform many banking functions that would traditionally be carried out over the counter [1]. One of the most recent channels of distribution to be used in financial service organizations is online banking; this method was established in the mid-1990s, thereafter steadily becoming more important. The term electronic banking refers to “the provision of information or services by a bank to its customers, via a computer or television”[2]. A more developed service provides customers with the opportunity to gain access to their accounts and execute transactions or buy products online via the Internet [3].  Access is fast, convenient, and available round the clock, whatever the customer’s location. consequently, banks can provide services more efficiently and at substantially lower costs” Online banking also makes it easier for customer to banks’ services and products, can increase competition among banks, and allows banks to penetrate new markets and thus expand their geographical reach. Some even see online banking as an opportunity for countries with underdeveloped financial systems to leapfrog developmental stages [4]. Online banking has emerged as a significant and rapidly growing component of the world economic exchange. Through online Banking, the world economic exchange has been reduced to a tiny global village in terms of its information capacity and the sources it holds which can be accessed by anybody from anywhere in the globe through the use of the medium of online commerce namely the internet and some other electronic devices. Online Banking does not only encompass the way you shop over the Internet but also the ways you carry out banking transactions [5]. A few years ago, banks started to offer their service on the Internet, in addition to the traditional services in the branch. This allowed customers, more independence in the choice of where and when to bank, as they were not bound to opening hours. Electronic Banking has revolutionized the way business is transacted by globalizing the business enterprise. Multinationals, small and medium-scale industries no matter their geographical locations are all beneficiaries of online banking. It encompasses all kind of commercial transaction that is conducted on an electronic medium, mostly through the Internet [6]. Online banking links businesses to customers no matter their geographical location. It allows companies to make new business contacts from different global business alliances, test near products and services, and make market research and other enquiries all at a minimal cost both financial and otherwise. As an increasing number of Rwandan banks look at innovative ways, such as Online banking, to make a customer’s banking experience more convenient, efficient, and effective, it becomes even more important to ascertain the customers’ perception of the overall service quality and their satisfaction with the current online banking services. Measuring customer satisfaction can provide banks with useful information about customer loyalty and retention, and also help them devise effective strategies to use efficient customer service as a distinguishing factor in this heavily customer-oriented service industry. Financial services are increasingly using technology in their transactions to be more competitive, convenient to customers and reduce costs [7]. Furthermore, the banking industry tends to develop and foster longer-term relationships compared with many other industries and therefore is appropriate to be examined from a relationship marketing perspective. Electronic banking has opened a new avenue to make a distinction between banks and deliver a superior service compared to competitors.  It involves the use of the Internet by customers to get in touch with their banks check their accounts and carry out banking transactions anywhere they are [8]. The migration to Internet banking has greatly influenced the distribution policies of banks and the mode of interaction with the banking and service experience for customers.

Human beings when they are offered a good and quick service, they feel satisfied. Traditional banking systems had inconveniences like transactional errors while recording in their books, time to be spent in the queue waiting to be served, theft done to some of the customers after withdrawal, unfriendly communication between bank employees and customers, and the frontline staff being too slow. Therefore, electronic banking provides a better way of solving such problems that could affect the satisfaction of customers. In Rwanda banking services are still a challenge for a large part of the population; electronic banking will help banks improve the quality of their service delivery by speeding up transactions and this will be a better way to attract new customers and retain existing ones hence online banking is a competitive advantage. Therefore, this research was conducted at Zigama Credit and Savings Bank as a sample of all other banks aimed at measuring the impact of Internet banking on customer satisfaction. Based on the research topic this study intends to give evidence that customer satisfaction is a result of online banking.


In relation to the first research question the benefits of online banking system methods employed by Zigama Credit and Savings Bank.  The benefits of using Internet banking and ATMs in Zigama Credit and Savings Bank are access and plentiful applications for smartphones, Control of money, convenience and time saved, account balance,6.2 transfer funds, pay bills locate ATMs and manage investments. The benefits of using mobile banking in Zigama Credit and Savings Bank are access and plentiful applications for smartphones, Control of money, Convenience and time saved, checking account balance, Transfering funds, paying bills locating ATMs and managing investments. The benefits of using Internet banking and ATMs in Zigama Credit and Savings Bank are immediate access, safety and security, payments and transfers, and fast track of applications. This is especially important when comparing companies located in different countries, as they might otherwise be using different rules and methodologies to prepare their statements. This increase in comparability has helped investors better determine where to invest their money. It is believed that investors and other users of Zigama Credit and Savings Bank’s automated services benefit from automated services by reducing the cost of investments and increasing the quality of the information provided. The second research objective is factors that enhance electronic banking at Zigama Credit and Savings Bank.  The study shows that most respondents said that the Speedy process of the loan, One-time document, Simple process, Low processing fees, Low-interest rate, Low repayment charge, transparency feedback, Easy disbursement process and insurance facility. Therefore, the services offered by ZIGAMA CSS have a significant contribution to the success of the business through the above benefits, that the customers get from ZIGAMA services. The third research question, the challenges of online banking at Zigama Credit and savings bank. The study concluded that Skills of using Machines, System breakdown, Customers’ claims, Low technology, Bank expenditures, Language, Level of customers’ literacy and Technological skills are among of challenges of online banking at Zigama Credit and Savings Bank. Hence, Zigama CSS sped up the sensitization campaign of the Rwandan people to contribute to the promotion of using online banking. Therefore, control, monitoring and evaluation are needed so that the number of challenges can be reduced. According to the fourth research question, the study used both the Pearson correlation coefficient and regression analysis and found that there is a positive relationship between online banking and customer satisfaction in ZIGAMA CSS. Therefore, online banking is one of the main dimensions of the performance of the business and is widely seen to be determined by other external factors. This research concluded that online banking services are key to the success of the business and customer satisfaction. The online banking services have an important influence on the priorities set by the customers. Managers and customers have different attitudes about particular types of services. 


According to the findings of the study, satisfaction differences should exist among different income groups and that, generally, higher income groups tend to be more satisfied with online banking than lower income groups. One possible explanation is that it might be that banking staff tend to pay more and closer attention to the needs and wants of higher-income customers of the banks than those customers who earn lower. To attain sustainable customer satisfaction, ZIGAMA CSS should continue to analyze the challenges faced by customers in the use of several online services delivered by ZIGAMA CSS. ZIGAMA CSS should also assess the drivers and mechanisms that should influence the satisfaction of customers. Basing on the findings and interpretations as well as the theoretical aspects presented in the literature review this research recommends ZIGAMA CSS to speed up the sensitization campaign of the Rwandan people to contribute to the promotion of a reading culture of its financial information. This research also recommended that individuals are considered a very important requirement to the operation and the procedures in every information system, so ZIGAMA CSS have to improve the skills of the employees working in the department of online banking.

Suggestions for further study

This study focused on online banking only, hence the following areas are suggested for further research; the role of automated services in the development of financial institutions, Access to online services and performance of commercial banks, and the role of automated services in reducing the collapsing of financial institutions. Therefore, future researchers should focus on; commercial bank online services and economic growth, commercial bank online services and the welfare of citizens, and then commercial bank online services and its performance.


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CITE AS: David Nyambane and Rutsimba Emmanuel Kazungu (2023). The correlation between Zigama Credit and Savings Bank’s (CSS) online financial services and customer satisfaction. INOSR ARTS AND HUMANITIES 9(2):60-73.