Impact of digital complaint management system on banking customer satisfaction: Evidence from Kathmandu valley, Nepal

Abstract

This study investigates the impact of Digital Complaint Management Systems (DCMS) on customer satisfaction in the banking sector. The research employed a combination of descriptive and explanatory research approaches. Primary data were gathered from 401 respondents in Kathmandu Valley using purposive sampling. SmartPLS 4.0, along with Microsoft Excel, was used for data analysis. Findings show that an effective complaint management system, customer commitment, customer expectations, and customer trust boost satisfaction in banks. Results also found that employee behavior does not mediate the relationship between these variables and customer satisfaction. The R² result of 0.546 suggests that the model accounts for 54.6% of the variation in customer satisfaction. This study also found that data privacy/security is the main obstacle that hinders the adoption of DCMS. For this reason, the study recommends strengthening data protection and security for effective adoption in Nepal.