Core Banking System Upgrades and Customer Satisfaction in Selected Quoted Deposit Money Banks

Abstract

This study examines the effect of Core Banking System (CBS) upgrades on customer satisfaction in selected quoted deposit money banks in Nigeria. Despite substantial investments in CBS upgrades, empirical evidence on their customer-facing impact remains limited. Using a descriptive cross-sectional survey design, data were collected from 361 bank customers and analyzed using multiple regression. CBS upgrades were operationalized through transaction speed, digital functionality, system reliability, security and trust, ease of use, and data accuracy. The results show that CBS upgrades have a positive and significant effect on customer satisfaction, with the model explaining a high proportion of variance (R² = 0.831). Data accuracy and notifications emerged as the strongest predictor, followed by ease of use across channels, system reliability, and security and trust, while transaction speed was
significant but weaker. Digital functionality was not statistically significant.The findings indicate that customers prioritise accuracy, usability, reliability, and trust over expanded digital features. The study concludes that CBS upgrades must deliver tangible service
improvements to enhance customer satisfaction and recommends that banks prioritise system performance dimensions that directly shape user experience.