An Investigation of the Impact of Technological Advancements in Financial Services on Customer Experience in Selected Commercial Banks in Zambia

Abstract

This study investigated the impact of technological advancements in financial services on customer experience within selected commercial banks in Zambia. The research was motivated by the rapid expansion of digital banking platforms in the country, particularly internet banking, mobile banking, and Automated Teller Machines (ATMs), and the continuing concerns regarding customer satisfaction, system reliability, digital literacy, and security. Data was collected using a structured questionnaire on a 5-point Likert scale and Key-Informant Interviews. Data was analyzed using SPSS to generate descriptive statistics, correlations, and regression outputs that establish the predictive effect of each technological advancement on customer experience as from 400 bank customers drawn from Access Bank and Zambia National Commercial Bank in Luapula province and First National Bank as well as Zambia Industrial Commercial Bank in Lusaka city. The study also sampled 7 fintech experts from the four commercial banks, Bankers Association of Zambia, Ministry of Finance, and Zambia Information and Communications Authority. The results showed that correlation analysis shows strong associations between internet-banking/mobile banking challenges and overall perceived difficulty, with ATM issues secondary yet notable. Technological advancements have transformed the landscape of financial services, particularly in developing economies such as Zambia. The proliferation of mobile banking, internet banking, and ATMs has redefined customer experience, service delivery, and operational efficiency in commercial banks. However, understanding the complex interplay between technology adoption, customer familiarity, perceived service quality, and actual usage remains a challenge. To address this gap, this synthesis proposed a new theoretical framework – the Integrated Customer-Centric Technology Adoption and Service Quality (ICTASQ) Model for Financial Services in Zambia – by integrating the Technology Acceptance Model (TAM) (Davis, 1989), Familiarity Theory, Contrast Theory, SERVQUAL (Parasuraman, Zeithaml, and Berry, 1988), and the Unified Theory of Acceptance and Use of Technology (UTAUT) (Venkatesh et al., 2003). This model is grounded in empirical findings from this study which investigated the impact of technological advancements on customer experience in selected commercial banks in Zambia, drawing on data from bank customers, customer service managers, and Fintech experts in Lusaka and Luapula provinces. In synthesis, objectives converge: challenges persist, but advancements drive positive experiences, amplified by supportive regulation. Collectively, the findings revealed a nuanced landscape in which government policies and regulatory frameworks significantly influence customer experience in digital banking, but with varying degrees of impact. Security and compliance measures are the most potent drivers, followed by the effectiveness of complaint-redress mechanisms and, to a lesser extent, regulatory awareness.