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 has become a catalyst for enhancing customer service quality across the banking sector. First Bank of Nigeria, with its longstanding reputation, has embraced a range of digital initiatives designed to improve customer interactions and streamline service delivery. These initiatives include the deployment of online customer service platforms, artificial intelligence–driven chatbots, and integrated mobile applications that provide real-time assistance and personalized banking experiences (Nwankwo, 2023). The shift toward digital channels is driven by a desire to reduce service latency, increase transaction transparency, and offer a seamless banking experience that meets the evolving expectations of tech-savvy customers.
In recent years, digital channels have transformed traditional customer service models by enabling 24/7 access to financial support and reducing the reliance on physical branch visits. First Bank of Nigeria’s investment in digital infrastructure aims to resolve common issues such as long waiting times, inconsistent service quality, and communication barriers that have historically plagued the banking industry (Adeleke, 2024). The bank’s customer service strategy now integrates digital feedback systems, enabling continuous monitoring and improvement of service quality based on real-time customer input. Such innovations are crucial in an era where customer satisfaction is closely linked to digital accessibility and responsiveness.
Despite these advances, challenges remain in ensuring that digital transformation translates into consistently high service quality. Factors such as system downtimes, cybersecurity concerns, and varying levels of digital literacy among customers can adversely affect the overall customer experience (Chinwe, 2025). Moreover, the transition to digital platforms necessitates significant investments in technology and staff training, and the effectiveness of these investments is still under evaluation. This study, therefore, seeks to assess the impact of digital transformation on customer service quality at First Bank of Nigeria, examining both the benefits and the obstacles encountered in the digital journey.
Statement of the Problem
While digital transformation has the potential to revolutionize customer service in banking, First Bank of Nigeria faces several challenges that impede the full realization of its benefits. Despite substantial investments in digital platforms, instances of system downtimes and cyber threats continue to disrupt customer service operations, leading to frustration and diminished trust among clients (Okafor, 2024). Moreover, the rapid shift toward digital channels has exposed a gap in digital literacy among certain customer segments, particularly in rural and semi-urban areas, where clients may not fully utilize or even understand the new digital services available. This digital divide results in an uneven customer experience, with technologically adept users enjoying superior service quality while others struggle to adapt.
Additionally, the integration of digital tools into customer service processes has led to challenges in maintaining a personal touch—a factor that many customers still value. Automated responses, though efficient, sometimes fail to address complex customer inquiries adequately, leading to dissatisfaction (Ibrahim, 2025). The bank’s efforts to balance automation with personalized service have encountered operational hurdles, such as ensuring seamless transitions between digital and human-assisted support. These issues not only impact customer satisfaction but also have broader implications for the bank’s reputation and competitive positioning in a rapidly digitalizing market.
The problem, therefore, centers on determining whether the digital transformation initiatives at First Bank of Nigeria have effectively improved customer service quality and identifying the barriers that continue to hinder optimal service delivery. This study aims to dissect these challenges, providing insights into the relationship between digital investments and service outcomes, and suggesting strategies for overcoming the identified limitations.
Objectives of the Study
– To evaluate the effect of digital transformation on the quality of customer service at First Bank of Nigeria.
– To identify key barriers affecting the effective delivery of digital customer service.
– To recommend strategies for enhancing customer satisfaction through optimized digital service channels.
Research Questions
– How has digital transformation impacted the quality of customer service at First Bank of Nigeria?
– What are the main challenges hindering the effectiveness of digital customer service platforms?
– What measures can be implemented to improve the balance between automation and personalized support?
Research Hypotheses
– H₁: Digital transformation is positively associated with improved customer service quality.
– H₂: System downtimes and cybersecurity concerns negatively affect customer satisfaction.
– H₃: Enhanced digital literacy among customers leads to higher satisfaction with digital services.
Scope and Limitations of the Study
This study focuses on First Bank of Nigeria’s digital customer service operations. Data will be obtained from customer surveys, digital usage analytics, and internal performance reports. Limitations include technological variability and customer demographic diversity.
Definitions of Terms
• Digital Transformation: The integration of digital technology into all aspects of customer service.
• Customer Service Quality: The standard of service provided to customers, including responsiveness and efficiency.
• Digital Literacy: The ability to effectively use digital tools and platforms.
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