THE IMPACT OF FINTECH ON CUSTOMER SATISFACTION IN BANKING SECTOR OF BANGLADESH

Author: Mosfiqur Rahman

ABSTRACT

The impact of fintech on Customers satisfaction in Banking Sector in Bangladesh is explored in this study through the lens of innovation and technology, adoption of fintech, perceived value and customer’s trust. A structured questionnaire was used for the survey which involved 250 bank customers in Bangladesh who are active and using fintech services. The analysis of the data carried out using structural equation modeling (SEM). The results show that trust has a significant influence on customer satisfaction with the fintech services, p< .001, β= 0.896, suggesting that customers’ trust in fintech services security and reliability is the most influential variable in determining their satisfaction with fintech services. The perceived value is also evident as it has a significant positive impact (β = 0.160, p < .001) on customer satisfaction. The innovation and technology score (β = 0.053) and the score for usage of fintech (β = 0.041) are both statistically significant but have low scores, suggesting that the impact of these factors is likely to have impact on satisfaction. Based on the findings, it is clear that technological sophistication is not enough to attract people’s satisfaction; the banks need to focus more on trust measures as people depend on their banking institutions which can be developed via secure, transparent and reliable fintech systems, and improve perceived value in nature through measurable value giving to the end customers.

Keywords: Fintech, customer satisfaction, trust, perceived value, banking sector, Bangladesh.

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