AN EVALUATION OF THE INFLUENCE OF DIGITAL BANKING ON CONSUMER BEHAVIOUR

CHAPTER ONE INTRODUCTION 1.1 Background of the Study In recent years, the global business environment has undergone a remarkable transformation, driven largely by the rapid evolution of digital technologies and shifting market dynamics. These forces have compelled organizations to rethink and realign their strategies in order to remain competitive in an increasingly fast-paced and complex world. Central to this transformation are developments in information and knowledge management, which have become key drivers of change, innovation, and strategic solutions (Gartner, 2018; Sarkane, 2019). The contemporary digital era touches every facet of human existence. Computers now play critical roles in inventory management, automate services once carried out by humans, and are even anticipated to control autonomous vehicles (Satell, 2018). In marketing, technological advancements have significantly altered the way businesses approach product development, promotion, advertising, customer engagement, and distribution channels. Innovations such as digital platforms, social media, mobile apps, and business analytics tools have redefined customer relationship management (Adams, 2019). Every industry, regardless of its core operations, is being influenced by these external technological shifts. The financial sector, for example, has experienced considerable disruption through tools like online banking, automated teller machines (ATMs), credit cards, and digital payment systems, which all aim to cater to evolving customer expectations (Brown, 2013). Among these innovations, digital banking stands out as a leading force shaping the future of financial services, integrating communication technologies, electronics, and media into seamless service delivery (Suresh, 2020). The growing popularity of mobile devices has further accelerated the adoption of digital banking, driven by consumer demand for mobility and convenience. This trend has encouraged financial institutions to adopt mobile-based solutions to serve both corporate and individual clients more effectively (Suresh, 2020). Mobile phones have become integral to everyday life, and advancements in mobile banking are now transforming how people handle financial transactions in ways that align with their lifestyles and preferences. Timaru and Buse (2018) describe digital banking as the provision of financial services via mobile communication technologies, encompassing a range of functions such as bank transactions, stock market activities, account monitoring, and tailored financial information. Their research also highlights that many customers are willing to pay extra for the convenience that digital banking offers. The widespread use of mobile devices, a growing population of tech-savvy youth, increasing digital literacy, and the convenience offered by such services have significantly contributed to the adoption and growth of digital banking (Timaru & Buse, 2018). Technological advancements have profoundly influenced consumer behaviour. According to Schiffman and Kanuk (2019), consumer behaviour encompasses the processes individuals engage in when searching for, purchasing, using, evaluating, and disposing of products, services, or ideas to satisfy their needs. Technology now plays a central role in these consumer decisions, from the search for information to the post-purchase experience. For instance, Timaru and Buse (2018) observed that individuals aged 31–40 are 33% more likely to switch banks if mobile financial services are not offered. With technology providing instant access to vast and relevant information, consumers can make more informed decisions. In today’s world, consumers frequently use their smartphones to search for products, read reviews, compare alternatives, and even seek peer validation on social media before engaging with sales agents or visiting physical stores (Brown, 2013). This digital shift presents unique challenges for marketers still dependent on traditional methods of communication. Understanding the dynamics that influence the adoption and use of digital banking becomes essential. These dynamics include the identification of banking needs, the process of information search, evaluation of available alternatives, usage patterns, and brand advocacy (Schiffman & Kanuk, 2009). Moreover, individual characteristics such as personal attitudes toward technology also play a crucial role in determining how digital innovations influence consumer purchasing and consumption behaviours. Consequently, this study aims to examine the effect of digital banking on consumer behaviour, by exploring how this technological innovation reshapes decision-making processes and usage patterns among modern consumers. 1.2 Statement of the Problem The expansion of e-commerce has become a global phenomenon, revolutionizing how individuals and businesses access and utilize financial services. Hamidi (2022) noted that while many rural residents may not necessarily require traditional bank accounts, they still need access to financial services. Due to the urban-centric location of most bank branches, digital banking has emerged as a viable alternative, particularly enhancing the ease and efficiency of financial transactions for people in such regions. According to Smadi and Al-jawazneh (2019), mobile-based financial services are increasingly replacing traditional methods such as debit and credit cards. This digital shift has simplified everyday transactions compared to the past when physical presence, courier services, or travel were required. The rise of digital banking has allowed people to send and receive money internationally without physical limitations, thus enhancing convenience and financial autonomy (Wamuyu & Maharaj, 2011). It is now evident that digital banking technologies have significantly redefined personal financial management. When considering whether to adopt banking services, consumers weigh numerous factors. A number of scholars have explored this phenomenon. Agrawal (2010), for instance, emphasized perceived usefulness as a determining factor, while Hamidi (2022) and Mattila (2016) highlighted the importance of ease of use and cost perceptions, respectively. Furthermore, Wamuyu and Maharaj (2021) identified trust and usage intention as central components influencing consumer acceptance of mobile banking technologies. Given these observations, there remains a critical need to further explore how digital banking shapes modern consumer behaviour, especially as it relates to technology adoption, usage patterns, and satisfaction levels. Therefore, this study seeks to assess the effect of digital banking on consumer behaviour.  1.3  Objectives of the Study The main purpose of this study is to evaluate the Influence of Digital Banking on Consumer Behaviour. Specifically, the study will; i.To examine the digital banking services used by consumers. ii.To evaluate the level of consumer satisfaction with digital banking services. iii.To determine the impact of digital banking services on customer loyalty to their banks. 1.4  Research Questions The following questions have been prepared for the study: i.What digital banking services are used by consumers? ii.What is the level of consumer satisfaction with digital banking services? iii.What is the impact of digital banking services on customer loyalty to their banks? 1.5 Research Hypotheses H0: Digital banking has no significant effect on consumer behavior. Ha: Digital banking has significant effect on consumer behavior. 1.6 Significance of the Study The study will assist bank management in developing appropriate training programs and support systems to help employees adapt to the digital transformation. Ensuring that employees are well-equipped to manage and operate digital banking services for maintaining high performance and service quality. Additionally, the findings will provide valuable insights for banking institutions, since they reveal customers' experiences and the causal relationships between their activity and their interpretation of the bank's perspective and attitudes. This will assist banking institutes in enhancing their systematic digital initiatives.Moreover, subsequent researchers will use it as a literature review. This means that other students who may decide to conduct studies in this area will have the opportunity to use this study as available literature that can be subjected to critical review. Invariably, the result of the study contributes immensely to the body of academic knowledge with regard to the  effect of digital banking on consumer behaviour. 1.7 Scope of the study    The scope of this study is boarded on the Influence of Digital Banking on Consumer Behaviour. Empirically, this study will to examine the digital banking services used by consumers, evaluate the level of consumer satisfaction with digital banking services and determine the impact of digital banking services on customer loyalty to their banks. Geographically, the study will be delimited to some selected banks in Baffoussam, Cameroon. 1.8 Limitation of the study In the course of carrying out this study, the researcher experienced some constraints, which included time constraints, financial constraints, language barriers, and the attitude of the respondents. In addition, there was the element of researcher bias. Here, the researcher possessed some biases that may have been reflected in the way the data was collected, the type of people interviewed or sampled, and how the data gathered was interpreted thereafter. The potential for all this to influence the findings and conclusions could not be downplayed. More so, the findings of this study are limited to the sample population in the study area, hence they may not be suitable for use in comparison to other schools, local governments, states, and other countries in the world.  1.9 Definition of Terms Digital banking services: encompass various electronic methods used by customers to conduct banking transactions.  digital banking: a mobile app to perform banking transactions. Consumer behavior: refers to the actions, decisions, and processes that individuals undertake when searching for, purchasing, using, evaluating, and disposing of products or services.