A Comprehensive Assessment of Customer Engagement in Digital Banking Services in Afghan Banks
A Mixed-Methods Study of Digital Banking Adoption, Engagement, and Financial Inclusion in Afghanistan
Abstract
Digital transformation has significantly reshaped banking systems worldwide; however, the adoption and utilization of digital banking services in Afghanistan remain constrained by infrastructural limitations, low digital literacy, and security concerns. This study investigates customer engagement with digital banking services across ten major Afghan commercial banks using a mixed-methods research design. Quantitative data were collected from 401 banking customers through structured questionnaires, while qualitative data were obtained through semi-structured interviews with branch managers and information technology managers. Reliability analysis demonstrated excellent internal consistency of the measurement scale (Cronbach’s α = 0.95). Exploratory Factor Analysis revealed a single-factor structure explaining 66% of the variance in digital banking engagement. Descriptive findings indicated that online and mobile banking services were the most frequently used digital channels. Comparative analyses showed that male respondents, urban residents, and customers with higher educational attainment reported significantly greater engagement with digital banking services. Multiple regression analysis identified education level and urban residence as significant predictors of digital banking engagement. Qualitative findings reinforced the quantitative results by highlighting ease of use, trust, service availability, and infrastructure quality as major determinants of engagement. Key barriers included limited internet access, inadequate digital literacy, and concerns regarding cybersecurity and system reliability. The study recommends strengthening digital infrastructure in rural areas, enhancing cybersecurity frameworks, promoting digital literacy initiatives, and establishing minimum digital banking service standards. The findings contribute to the growing literature on digital financial inclusion in developing economies and provide practical implications for policymakers, banking institutions, and development partners seeking to improve digital banking adoption and customer engagement in Afghanistan.
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