The impact of digital transformation on customer service quality in banking: a case study of First Bank of Nigeria
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Background of the Study
Digital transformation is fundamentally reshaping customer service paradigms in the banking industry. First Bank of Nigeria, one of the country’s oldest and most reputable financial institutions, has aggressively adopted digital technologies to enhance its customer service quality. Over the period 2023 to 2025, the bank has introduced a range of digital platforms—from mobile banking applications and online chat services to AI-driven customer support—that aim to deliver faster, more efficient, and personalized services (Afolabi, 2023; Okeke, 2024). These innovations have been particularly impactful in addressing the traditional challenges associated with physical branch limitations, long waiting times, and operational inefficiencies.
The digital transformation process has enabled First Bank to offer round-the-clock support, streamline complaint resolution processes, and provide tailored financial advice based on customer data analytics. Enhanced digital channels have led to improved responsiveness, higher customer engagement, and an overall elevation in service satisfaction levels. Additionally, the bank’s use of artificial intelligence and machine learning has optimized query management and facilitated proactive customer outreach (Ibrahim, 2025). This shift is critical in today’s competitive banking landscape, where customer service quality often serves as a key differentiator.
Despite these advancements, there remain challenges in achieving consistent service quality across all digital touchpoints. Issues such as cybersecurity, data privacy, and occasional system downtimes have raised concerns among customers. Furthermore, while digital channels offer convenience, not all customers are equally adept at using them, leading to disparities in service experience. This study will examine how digital transformation has influenced customer service quality at First Bank of Nigeria, focusing on both the positive outcomes and the operational challenges that accompany the adoption of digital tools in banking.
Statement of the Problem :
Although digital transformation has largely enhanced customer service quality at First Bank of Nigeria, several challenges still impede its full potential. One major problem is the digital divide among the bank’s diverse clientele. While younger and tech-savvy customers embrace digital channels, older or less digitally literate clients often encounter difficulties in navigating these platforms, resulting in inconsistent service experiences (Chukwu, 2023). Moreover, system outages and cybersecurity concerns have periodically disrupted digital services, undermining customer trust and satisfaction.
Another issue is the complexity of integrating multiple digital platforms into a seamless customer service experience. The bank’s diverse array of digital tools—each with its own interface and functionality—can sometimes lead to fragmentation, causing delays and inefficiencies in addressing customer queries. Additionally, while data analytics have improved service personalization, there remains a challenge in ensuring data accuracy and protecting sensitive customer information (Okeke, 2024). These factors contribute to a scenario where the intended benefits of digital transformation are not fully realized, and customer service quality can fluctuate based on the digital channel used.
The study seeks to identify and address these challenges by evaluating the impact of digital transformation on overall customer service quality. It aims to investigate the extent to which digital channels enhance service delivery, explore the underlying causes of service inconsistency, and recommend strategies to ensure a more uniform and secure digital customer experience across all platforms.
Objectives of the Study:
- To assess the impact of digital transformation on the quality of customer service at First Bank of Nigeria.
- To identify challenges that hinder consistent service quality across digital channels.
- To propose strategies for enhancing the integration and reliability of digital customer service platforms.
Research Questions:
- How has digital transformation affected customer service quality at First Bank of Nigeria?
- What are the primary challenges faced by customers in using digital banking platforms?
- How can the bank improve the integration and performance of its digital customer service systems?
Research Hypotheses:
- H1: Digital transformation has significantly improved customer service responsiveness at First Bank of Nigeria.
- H2: Variations in digital literacy among customers negatively impact the overall quality of digital service delivery.
- H3: Enhanced system integration and cybersecurity measures will lead to higher customer satisfaction levels.
Scope and Limitations of the Study:
This study focuses on the digital customer service initiatives at First Bank of Nigeria between 2023 and 2025. Limitations include potential technological disruptions and varying levels of digital proficiency among customers.
Definitions of Terms:
- Digital Transformation: The process of integrating digital technology into all areas of business to fundamentally change how services are delivered.
- Customer Service Quality: A measure of how well a company’s services meet or exceed customer expectations.
- Digital Literacy: The ability to effectively use digital tools and platforms.
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