Assessment of the effectiveness of electronic banking transactions of bank clients in Tagum City: basis for intervention

Abstract

As the service sector becomes competitive, banks continuously innovate ways to attract customers to invest in their services. Aside from branch expansions, they have also increased their delivery channels through electronic banking, smartcard, mobile, and internet banking (Nazaritehrani & Mashali, 2020). However, many people remain doubtful of the effectiveness of electronic banking and refuse to use it for transactions (Selvanathan et al., 2016). Especially during this pandemic, electronic banking is something that people should consider. This research aims to determine the effectiveness of electronic banking transactions among bank clients in Tagum City. This research is expressed in a quantitative approach using a non-experimental research design. At the end of the study, a proposed action plan is presented to improve the services of the banks in Tagum City. 150 Tagum City bank clients in its barangays with a random distribution were chosen as the respondents of this study. Moreover, to assess the effectiveness of e-banking, the following indicators were used: cost of a transaction, ease of use, and security. Overall, these indicators scored a grand mean of 4.33 and a standard deviation of 0.44, with a "very high" descriptive equivalent. It means that electronic banking transactions among bank clients in Tagum City are very effective. Thereby, to continue the already effective electronic banking transactions in Tagum City, local banks should continually improve their services. Lastly, banks should educate more people about the benefits of utilizing e-banking. Other researchers can also use this study as a basis for a further assessment of electronic banking transactions.