Automated Money Transfer Services and Customer Service Quality in Equity Bank in Nakuru Town, Kenya
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With the banking innovation of the technology of e-banking to enhance banking products and service, numerous studies have been done focusing on its efficiency and profitability. However, its effect on customer service quality is still misunderstood. It is accepted for a fact that delivery of service in banking can be said to be efficient only when the underlying operations are equally efficient. And such confidence in efficiency can only arise in as far as the user‟s experience for these products and services has been evaluated. The aim of the study was assess the effect of automated money transfer services on customer service in Equity Bank in Nakuru Town. The study was guided three main objectives, namely: to assess the effect of M-PESA, Electronic Funds Transfers, and Automated Teller Machines on customer service in Equity bank. The study adopted modernization theory and the innovation diffusion theory to understand the conceptual issues. The research adopted a descriptive survey design and used simple random sampling to select the sample size for Equity staff. And for customers and bank employees in the customer service department, purposive sampling technique was used. The study used a sample size of 379 respondents. Questionnaires were used to collect data for the study. All the three money transfer services (Mpesa services, EFT and ATMs) studied had a positive effect on customer service at Equity Bank. The study recommended that commercial banks management should consider; tailoring their money transfer options to the MPESA service option considering the fact that this was the most preferred option due to its convenience and speed; raising customer awareness on the advantages of the EFT money transfer service; and enhancing the quality offered by ATMs money transfer service. The management of Equity bank will use such information to gauge the effectiveness of automated money transfers as payment systems.