Evaluating the Role of Biometric Authentication in Enhancing Banking Service Quality and Customer Satisfaction Through Perceived Security

Abstract

Biometric Authentication has been utilized in an increased number of ways with continual improvements to both security and the efficiency of providing service within the Digital Banking marketplace. The study explores how Effectiveness of Biometric Authentication (EBA), Perceived Security and Fraud Protection (PSFP) and Service Quality & Risk Management (SQRM) work together to create Customer Satisfaction and Trust (CST) within the banking Sector. The methodology applied was a quantitative research design where a sample size of 218 Bank Customers using Biometric Authentication was surveyed utilizing a structured questionnaire that was based on a Five Point Likert Scale. The research method employed included the use of correlation analysis, multiple regression, One-Way ANOVA using SPSS 20. Results indicated high and positive correlations between all variables studied. Multiple regression analysis results indicated that EBA, PSFP and SQRM collectively explained 87.7% of the variance in CST creating a very strong and statistically significant model. Regression analysis indicated that EBA, PSFP and SQRM all collectively play important roles in creating Customer Satisfaction and Trust. One-Way ANOVA results indicated that there are significant differences in the way that customers perceive EBA among different types of banks. However, customers perceived the security, service quality and customer satisfaction and trust to be similar among these types of banks. The findings of the study are supported by the Technology Acceptance Model, Trust Theory, SERVQUAL Model and Expectation–Confirmation Theory emphasizing the combined influence of technology, security and service quality. The study identifies practical applications for banks to expand their use of biometric systems, increase security assurance levels and ensure that their digital banking platforms provide customers with a high level of service so that they may maintain long-term confidence and satisfaction.