LBEF RESEARCH JOURNAL OF SCIENCE, TECHNOLOGY AND MANAGEMENT

Author(s):Dipesh Gurung, Dr Pramod Parajuli

Abstract:This research evaluates how chatbot integration affects operational efficiency and customer satisfaction in Nepal’s banking sector, using Expectation Confirmation Theory (ECT) as a basis. It investigates the global trend towards digital banking, focusing on how AI-powered chatbots in Nepalese banks influence customer interactions and operational processes. The study fills gaps in existing literature on chatbot effects in banking, setting goals to assess customer expectations, chatbot performance, and the influence on customer satisfaction and trust. It utilizes Partial Least Squares Structural Equation Modeling (PLS-SEM) to explore how these factors interplay and affect trust and corporate reputation, finding that chatbots significantly meet customer expectations, thereby improving efficiency and satisfaction. The findings offer insights for banking practitioners and policymakers on the benefits of chatbots, underscoring their positive role in operational efficiency and customer experience. This research enriches discussions on digital banking transformation, advocating for the strategic use of AI to address the digital age’s challenges and opportunities.

Keywords:Chatbots, Operational Efficiency, Customer Satisfaction, Digital Transformation, Artificial Intelligence, Banking Sector.