ATM Service Quality and Interest-Free Banking Customer Satisfaction at Bank of Abyssinia, Dire Dawa Branch, Ethiopia: An Empirical Investigation

This study's objective was to investigate the influence of ATM service quality on customer satisfaction within the context of Interest-Free Banking (IFB) at the Bank of Abyssinia's Dire Dawa Branch. Using a descriptive and quantitative research approach, data was collected from 318 IFB customers via a structured questionnaire. The data was then analyzed using descriptive statistics and regression analysis to determine relationships between the variables. The key findings revealed that reliability, responsiveness, tangibility, and assurance all had a significant positive effect on customer satisfaction. This suggests that customers' satisfaction increased when they perceived the ATMs to be dependable (reliability), had quick transaction times (responsiveness), were physically well-maintained (tangibility), and felt secure (assurance). In contrast, the study found that service empathy did not have a significant impact on customer satisfaction in this specific context. Based on these findings, it is recommended that the Bank of Abyssinia prioritize continuous improvement in the reliability and responsiveness of its ATM services to align with the Islamic principle of 'amanah' (trust). The bank should also enhance the tangible aspects of the ATM environment to align with 'taharah' (purity). Finally, reinforcing assurance and implementing ongoing customer feedback mechanisms are crucial for building trust and adhering to the Islamic principle of consultation. This research offers valuable insights into customer satisfaction in the growing sector of Islamic banking.

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Publication Details

Journal
International Journal of Finance and Banking Research
Published
2025-10-09
DOI
https://doi.org/10.11648/j.ijfbr.20251105.11
Primary Topic
Customer Service Quality and Loyalty
Type
article
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article

ATM Service Quality and Interest-Free Banking Customer Satisfaction at Bank of Abyssinia, Dire Dawa Branch, Ethiopia: An Empirical Investigation

Abdo Jaldesa, Mubarek Hussen
International Journal of Finance and Banking Research
Customer Service Quality and Loyalty
article

ATM Service Quality and Interest-Free Banking Customer Satisfaction at Bank of Abyssinia, Dire Dawa Branch, Ethiopia: An Empirical Investigation

Abdo Jaldesa, Mubarek Hussen
article en

Abstract

This study's objective was to investigate the influence of ATM service quality on customer satisfaction within the context of Interest-Free Banking (IFB) at the Bank of Abyssinia's Dire Dawa Branch. Using a descriptive and quantitative research approach, data was collected from 318 IFB customers via a structured questionnaire. The data was then analyzed using descriptive statistics and regression analysis to determine relationships between the variables. The key findings revealed that reliability, responsiveness, tangibility, and assurance all had a significant positive effect on customer satisfaction. This suggests that customers' satisfaction increased when they perceived the ATMs to be dependable (reliability), had quick transaction times (responsiveness), were physically well-maintained (tangibility), and felt secure (assurance). In contrast, the study found that service empathy did not have a significant impact on customer satisfaction in this specific context. Based on these findings, it is recommended that the Bank of Abyssinia prioritize continuous improvement in the reliability and responsiveness of its ATM services to align with the Islamic principle of 'amanah' (trust). The bank should also enhance the tangible aspects of the ATM environment to align with 'taharah' (purity). Finally, reinforcing assurance and implementing ongoing customer feedback mechanisms are crucial for building trust and adhering to the Islamic principle of consultation. This research offers valuable insights into customer satisfaction in the growing sector of Islamic banking.

International Journal of Finance and Banking ResearchVol. 11(5)
Dire Dawa University (ET), Bule Hora University (ET)
Openalex Percentile: Top 67%
Customer Service Quality and Loyalty
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