An Assessment of the Impact of Banking Technology on Customer Trust: A Study of Sterling Bank, Ondo State
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Background of the Study
Advancements in banking technology have reshaped customer experiences and significantly influenced the levels of trust customers place in financial institutions. Sterling Bank in Ondo State has implemented various technological innovations, including mobile banking, biometric security, and real-time transaction monitoring, to foster a secure and user-friendly environment (Fashola, 2023). These technological integrations are designed to enhance transparency, reduce human errors, and offer a more personalized banking experience, thereby directly affecting customer trust.
Customers increasingly rely on technology to interact with their banks, and their perception of security, efficiency, and convenience is closely linked to the technologies deployed. Sterling Bank’s commitment to continuous technological upgrades is evident in its adoption of state-of-the-art systems that aim to protect customer data and ensure swift service delivery (Oluwole, 2024). As digital channels become the primary mode of banking, the interplay between technology and customer trust has become critical. The study investigates how Sterling Bank’s technological innovations influence customer trust, exploring aspects such as system reliability, data privacy, and user experience. By evaluating these dimensions, the research seeks to provide insights into the effectiveness of current technologies in building and maintaining customer trust in a competitive digital banking environment (Akinola, 2025).
Statement of the Problem
Despite significant investments in cutting-edge banking technology, Sterling Bank faces challenges in ensuring that these innovations consistently translate into heightened customer trust. Customers have expressed concerns over occasional security lapses, inconsistent digital experiences, and perceived vulnerabilities in data protection mechanisms (Fashola, 2023). Such issues can erode confidence, particularly when customers compare the bank’s offerings with those of newer, more technologically agile competitors. Furthermore, while advanced technologies promise enhanced efficiency, any technical glitches or prolonged downtimes tend to magnify customer distrust and dissatisfaction.
The problem is further compounded by the rapid pace of technological change, which requires continuous updates and retraining of staff to ensure optimal performance. These challenges raise questions about whether the current technological implementations at Sterling Bank are sufficient to meet customer expectations and sustain long-term trust. This study aims to assess the specific technological factors that influence customer trust and to determine the extent to which existing systems meet the evolving security and usability standards demanded by today’s digital consumers (Oluwole, 2024).
Objectives of the Study
- To assess the impact of banking technology on customer trust at Sterling Bank.
- To identify key technological factors that influence customer perceptions of trust.
- To recommend improvements to enhance technology-driven customer trust.
Research Questions
- What technological features most significantly affect customer trust at Sterling Bank?
- How do system reliability and data security influence customer perceptions?
- What improvements can be made to bolster trust through technological innovation?
Research Hypotheses
- H₁: Advanced security features are positively correlated with increased customer trust.
- H₂: System reliability issues are negatively associated with customer confidence.
- H₃: Regular technological updates enhance overall trust in banking services.
Scope and Limitations of the Study
This study focuses on the technological innovations implemented by Sterling Bank in Ondo State. Limitations include rapid technological evolution, potential sample biases, and external cybersecurity challenges.
Definitions of Terms
- Banking Technology: The tools and systems used to deliver digital banking services.
- Customer Trust: The confidence customers have in the security and reliability of their bank.
- Data Privacy: The protection of customer information from unauthorized access.
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