The Impact of Internet Banking on Service Quality Provided by Commercial Banks

Information technology has become the most important factor in the present and future development of banking, influencing business strategies of banks. One of the popular technologies is the internet which has changed operations of businesses. E-developments are rapidly emerging in all financial intermediation and markets but the phenomenon has not been researched in Malawi. This study investigated the impact of internet banking on service quality in one of the commercial banks in Malawi. The study measured service quality attributable to internet banking and explored ways of improving its delivery. The research employed a structured deductive approach in which the IBM and SERVQUAL theories were tested using a descriptive survey of 235 users of internet banking chosen from all the Blantyre branches of the bank. Results revealed that users of internet banking were generally satisfied with quality of service. The users were satisfied with internet banking variables such as security of information, ease of use, site organization, speed of transaction, ability to correct transactions, accessibility, information availability, problem solution and affordability. The study recommends further research to understand implications of internet banking on service quality in all banks in Malawi.