By Damilola Fatunmise
Mobile banking is no longer a novelty; it’s a vital component of modern financial services, especially for younger generations who prioritize convenience and technology.
Understanding the factors that influence customer satisfaction with mobile banking apps is crucial for financial institutions looking to stay ahead in an increasingly digital world.
That’s exactly what Eseoghene Kokogho, Audit Senior Assistant at Deloitte & Touche LLP, helped uncover in her recent research, which was presented at the 2nd Uniben Faculty of Management Sciences International Conference in August 2023.
The conference, themed “Strategic Management Practices and Sustainable Development in a Global Economy,” provided a platform for discussing key factors shaping industries and businesses in today’s global landscape.
Kokogho’s research, co-authored with Dr. Simon Ayo Adekunle, Dr. Osaiga Felix Isibor, and Oghenovo Owigho Okere, tackled a critical question: What drives customer satisfaction with mobile banking apps among university students? The study’s findings offer valuable insights for banks, mobile app developers, and financial service providers looking to optimize their offerings to younger, tech-savvy users.
The Quest to Understand Mobile Banking Satisfaction
Kokogho and her team conducted a cross-sectional survey of 498 Nigerian university students to investigate their satisfaction with mobile banking apps.
The study’s aim was to identify the key factors influencing students’ choices of banking apps and to evaluate how demographic attributes, such as age and gender, impacted their experiences.
Among the banks students preferred were Access Bank, First Bank Nigeria, Guaranty Trust Bank, United Bank for Africa, and Zenith Bank.
The results weren’t just about which banks were the most popular, but also revealed what really mattered to students when choosing a mobile banking platform.
The study found that factors such as perceived usefulness, ease of use, trust, and social influence were the main drivers of satisfaction. However, the demographic variables like age, gender, and previous usage experience didn’t significantly affect the students’ satisfaction levels.
Kokogho explained, “The findings were clear—students care less about who they are or how long they’ve been using banking apps, and more about the quality of the user experience. If the app is useful, easy to navigate, and trustworthy, they’re more likely to stick with it.”
Data Analytics: A Key Tool in Understanding Customer Behavior
Kokogho’s work on this project drew heavily on her skills in data analytics—a field she has been passionate about since her days studying business analytics. With a strong foundation in SQL, Python, R, and Tableau, Kokogho applied these tools to analyze complex data and identify the critical factors driving mobile banking satisfaction.
The study employed advanced statistical tools to assess how different features of the apps—like security, speed, and user interface design—contributed to students’ overall satisfaction. This data-driven approach provided the team with tangible, evidence-based insights that can help banks improve their mobile platforms.
“Data doesn’t lie. It’s not just about intuition or assumptions,” Kokogho said. “Our research revealed that customers value functionality and security above all. It’s not enough for an app to look good; it needs to work smoothly, keep their data safe, and provide real value.”
Kokogho’s ability to leverage data analytics to solve real-world problems is one of her standout skills, making her an essential player in the field of auditing and business analysis. Whether it’s detecting financial irregularities in audits or analyzing customer behavior, Kokogho uses her technical expertise to translate raw data into actionable insights.
The Importance of Trust and Security
One of the most important findings from the study was the role of trust in driving customer satisfaction. As banking transactions increasingly move online, customers need assurance that their financial information is secure. The study found that students who trusted the app’s security features were more likely to be satisfied with the overall service, regardless of other factors.
“Security is paramount,” Kokogho emphasized. “You can have the most user-friendly app, but if it’s not secure, users will abandon it in favor of one they feel is safer. Trust is a critical factor, and banks need to continuously reassure their customers that their personal data is protected.”
Kokogho’s statement aligns with broader industry trends where fintech companies and traditional banks are investing heavily in cybersecurity to meet customers’ growing concerns. As more users move to mobile platforms for banking, securing user data and building trust through transparent practices will become even more critical.
Social Influence and Word-of-Mouth Marketing
Another noteworthy finding of the study was the impact of social influence on students’ choice of mobile banking apps. As digital natives, students are highly susceptible to recommendations from their peers.
Word-of-mouth, whether in person or through online reviews, has a significant effect on which apps students choose to download and use.
Kokogho commented, “In today’s connected world, students rely heavily on their social networks for recommendations. If an app has positive reviews or if their friends endorse it, they’re more likely to try it out. Banks need to think about how to leverage social proof in their marketing strategies.”
Banks can use this insight by encouraging satisfied customers to share their experiences, thereby increasing the app’s visibility and trustworthiness. By integrating social features, such as the ability to share positive feedback directly within the app or on social media, banks can increase user engagement and attract new customers.
Practical Implications and Strategic Recommendations for Banks
From Kokogho’s perspective, the research points to several practical takeaways for banks and financial institutions. For one, promoting the security features of mobile apps is essential to building trust and satisfaction among customers. Banks need to demonstrate their commitment to protecting customer data, perhaps through transparent security practices and regular updates on how user data is handled.
The study also suggests that banks should continue to refine their app designs, focusing on simplicity and functionality. As Kokogho noted, “Students are not looking for complicated features; they want an app that works seamlessly. The easier it is to use, the more likely they are to continue using it.”
Looking to the Future of Mobile Banking
As Kokogho looks to the future, she sees tremendous potential for emerging technologies like artificial intelligence (AI) and machine learning (ML) to further improve mobile banking experiences. By using AI, banks can personalize services for individual users, predict customer needs, and provide proactive support.
“The future of mobile banking lies in personalization,” Kokogho explains. “AI and ML can help banks offer a more tailored experience, predicting customer behavior and proactively addressing issues before they arise.
This level of personalization can lead to a more satisfied customer base and higher retention rates.”
For Kokogho, the intersection of business analytics, auditing, and technology is where the most exciting opportunities lie. Her work in the auditing sector and her research into customer behavior through data analytics exemplify the power of technology to transform industries and improve user experiences.
Conclusion: A Data-Driven Future for Banking
Kokogho’s research on mobile banking satisfaction is more than just an academic exercise—it’s a blueprint for how financial institutions can improve their mobile platforms and enhance customer satisfaction. By focusing on security, ease of use, and customer trust, banks can build stronger relationships with their users and stay ahead of the competition in an ever-evolving digital world.
With her expertise in data analytics and her passion for improving financial services, Kokogho is poised to continue making significant contributions to the banking and audit sectors. As she looks ahead, she’s committed to using technology and data-driven insights to create more personalized, secure, and satisfying experiences for customers around the world.