Document Type

Article

Abstract

The Internet has fundamentally changed the banking industry in South Africa by giving people more immediate control over the management of their finances. This research investigated whether a gap exists between customer expectations of Internet Banking and the satisfaction of these expectations in the virtual environment by South African banking institutions. The research was operationalized by means of a survey amongst internet banking users. The research focused specifically on the way customers of Internet banking sites felt about the service and functionality they received on the Internet and whether their expectations of this banking service were being met. What emerged from the research was that customers were happy with their basic Internet banking experience. What they were not satisfied with, were cost issues and the lack of personalised service. Issues such as speed and more advanced functionality also played a minor part. In addition, Internet banking customers felt there was a lack of integration across banking channels. Overall, the research indicates that basic user expectations are being met by Internet banks in South Africa. However, unless this satisfaction is maintained and extended, banks could possibly lose customers to the already emerging virtual, innovative and more cost-effective alternative banks of the future.

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