SCMS Journal of Indian Management, July-September 2023 5 Quality Delivery to Augment Customer Contentment: An Empirical Evidence of Co-Operative Bank of Oromia, Ethiopia Dr. P. Karthika Associate Professor, College of Business and Economics, Kebri Dehar University, Ethiopia. Email: karthi.nathan21@gmail.com Professor. Dr. M. Karthikeyan Dept. of Cooperatives, College of Business & Economics, Wollo University, Dessie, Ethiopia. Email: mkeya2003@gmail.com Mr. Abduselam A. Mohamed Assistant Professor of Agricultural Economics Vice President for Academic Affairs Kebri Dehar University, Ethiopia. Email: abdisalan654@gmail.com A b s t r a c t This research paper investigates the Fintech adoption by the Co-operative Bank of Oromia (CBO), handling risk and cyber security issues in practicing Fintech applications, and the effect on service quality delivery to enhance customer contentment. The CBO was selected purposively, and the survey method was adopted to elicit information on service quality dimensions and customer contentment. Sixteen (16) employees from the Digital Banking Operations unit were interviewed, and 600 customers from 10 branches of 5 operational districts were also the respondents. Descriptive statistics and the econometric model Ordered Logit were employed to analyse the data collected using a semi-structured questionnaire. The results indicate that the adoption of Fintech in banking operations and customer services by the CBO, like mobile banking, ATM, internet banking, and, to some extent, online customer support services, has improved the image of the CBO. Risks and cyber security issues are found, and the bank is trying to solve them to the maximum extent possible. As for service quality delivery, there has been an improvement in all dimensions of service quality compared to traditional banking, i.e., after the adoption of financial technology in banking operations and customer services. The authors have advocated a “Banking Service Quality Recovery Strategy Model” (BSQRSM) to deliver better services to augment customer contentment. Keywords: Co-operative Bank of Oromia, Customer Contentment, Fintech, Ordered Logit, Service Quality A Quarterly Journal SCMS Journal of Indian Management, July-September 2023 6 1. Background of the Study Fintech, a term combining financial services and digital technology, refers to the rapid technological innovation that has transformed the financial services industry with new business models, products, services, and delivery channels (Ascarya & Ali, 2022). Fintech is a significant innovation in the financial sector and is quickly expanding, which is widely acknowledged (Lee & Shin, 2018). This was due to a decreased trust in traditional financial service providers, which increased the market appetite for alternative financial services. The majority of Fintech is being driven by technological advances such as increased infrastructure availability, accessibility, and affordability (Internet, mobile technology, and sensor systems). According to Lee and Shin (2018), payment, wealth creation and management, crowdfunding, peer-to-peer (P2P) lending, insurance services, and capital markets are among the six emerging Fintech business models. Fintech and the Internet of Things (IoT) are both widely recognized as examples of new technology. Fintech is giving birth to a slew of new products and services, such as accounting systems, that aim to provide more efficient and user-friendly versions of existing financial mechanisms (Nakashima, 2018). Fintech has significantly increased financial inclusion globally (Smith, 2022). This has particularly benefited individuals in developing countries who previously lacked access to basic banking services (Jones, 2022). Fintech advancements have revolutionised payment systems, making transactions more efficient and secure for consumers and businesses (Brown, 2023). These findings underline the transformative impact of fintech on the global economy and the need for traditional financial institutions to continually adapt and embrace technological advancements (Smith, 2022; Brown, 2023). From online banking and mobile payment apps to roboadvisors and blockchain technology, Fintech has reshaped the landscape of the financial industry. With its ability to streamline processes, improve efficiency, and enhance user experience, Fintech has become a driving force behind the digital transformation of financial services. As a result, traditional financial institutions are now faced with the challenge of adapting to this rapidly evolving industry or risk becoming obsolete. The co-operative banking models of Germany, France, the Netherlands, and Italy are representative models and played a big role in pushing the development of trade, small industries, and agricultural activities. Co-operative banks act as co-operative and credit institutions which provide financial services to their members. Its governance is based on participatory and democratic decision-making by its members. Co-operative banks connect with local producers, customers, and economic agents and provide services to specific sectors (European Association of Co-operative Banks (EACB, 2004). Co-operative banks follow the Specialist Banking model, which provides the necessary functions to support the real economy in a competitive and globalized environment. These banks supply credit to small and medium-sized enterprises (SMSEs) and households (International Monetary Fund, 2010). Co-operative banks play a significant role in the financial systems of various countries. These banks are vital sources of credit intended for individuals and small and medium-sized businesses, as well as a secure place for deposits. A non-profit orientation focuses on maximizing member benefits and the sustainability of financial co-operatives. That was especially true during the world economic crisis, when co-operative banks continued to lend money to their members, whereas many commercial banks limited credit to households and businesses. The structural and behavioural characteristics of financial co-operatives are the overarching themes of the first part of this review. This section examines the origins and spread of financial co-operatives, the business model, network arrangements, relationship banking, tax treatment, balancing member interests, and the regulatory framework. The second part is about performance and contribution to the real economy, and this part considers mergers, acquisitions, benefits and failures, efficiency and sustainability of Fintech, and the role of financial co-operatives in the real economy. The emergence of Fintech has significant benefits for the cooperative industry, as it offers products and services similar to banks but focuses on co-operative members. This sector can catalyze the economy of co-operative members, contributing to the national economy if they have access to good products and services (Karthika et al., 2022). Service Quality of a bank is often shown through service delivery. Service provided in a bank with high content is heterogeneous, as their performance often varies from customer to customer, from place to place, and from day to day. The services that satisfy and surpass the customer's expectations will compel the customer to use the bank's services again. Moreover, customer's dissatisfaction with the services leads to huge losses in the market. In order to avoid this, the banks should fulfil the requirements and expectations of the customers as precisely as possible and A Quarterly Journal SCMS Journal of Indian Management, July-September 2023 7 serve well to satisfy the customers. It is important to focus on the quality of the banking industry, which contributes more to financial institutions in terms of revenue and image of the country. One of the pillars of a shared economy, community banks, are facing a significant challenge as digitalization transforms the face of modern banking. Co-operative banks are quickly embracing technology to remain relevant, creating a commercial opportunity for top IT service providers (Pramanik & Bhakta, n.d.). Therefore, the study of Fintech application, use, and upshot of service quality to augment customer contentment must be probed. Such a scenario calls for a thorough study of the banking industry and research on a list of selected branches of the Cooperative Bank of Oromia, Ethiopia. 2. Statement of the Problem The financial sector is facing one of its most difficult challenges in recent years. Banks are being forced to close branches and begin charging customers due to the availability of free money. In terms of branches, they will increasingly focus on providing greater benefits to customers rather than transactions. Institutions will need to raise a lot of awareness in this area. The adoption of Fintech cannot be avoided by the bank in the current scenario. Banks are faced with the dilemma of cutting costs (operating costs, branch network, and staff) while increasing their investment in technology to address the digital transformation. These difficulties, combined with new challenges, pose a threat to their profit and loss statements (European Economic & Social Committee, 2017). Though the co-operative banks survived the international financial crisis in 2008, today, they are facing the problems of meeting new capital requirements and reaching targeted profit margins in the fintech ecosystem. The European Union encourages larger banks, recognizes excess capacity in the banking industry, and suggests mergers. The real challenge of digitalisation now lies in how it affects customer behaviour and satisfaction. For co-operative banks, this is a continuous process of adapting to the digital revolution while maintaining personal relationships with customers, who are the true source of sustainable development. The overarching message is that digitalization represents an opportunity to promote the co-operative banking model. In light of the aforementioned, it is clear that there is still a solid foundation for conducting research to test the influence of Fintech adoption on service quality and customer satisfaction. This research has also examined how these constructs relate to customers' perceptions of risks and cyber security issues, Fintech application and usage, service failure, and strategies to increase customer satisfaction. 3. Review of Related Literature Fintech innovations may facilitate new business models, processes, products, or applications, having a major impact on financial services and institutions (Financial Stability Board (FSB), 2017). Arner et al. (2017) state, "Despite the lengthy history of the relationship between finance and technology, the fintech phase, which began in 2008, is welldefined by who provides goods and services, not by goods and services actually delivered.” In the most recent era, new entrants are using technology to offer financial services to customers without intermediation (Consumers International, 2017). Bank for International Settlements (2018) states that the newest fintech providers are payment, clearing and settlement industries (peer-to-peer transactions, mobile wallets and digital currencies) followed by deposit, credit and capital raising industries (mobile banks, crowdfunding and credit scoring) (Frost et al., 2019; Frame et al., 2019; Stulz, 2019; Thakor, 2020). Fintech has different effects on co-operative financial organizations. First, a number of FinTech businesses have now been effective in scaling a relationship banking system, which could eventually reduce the advantage of relationships and soft information acquisition enjoyed by small, local financial co-operatives (Lin et al., 2013). Peer-to-peer lending activities in the US entered into the areas where traditional banks with assets of more than $50 billion are underserved in highly concentrated markets with fewer branches (Jagtiani & Lemieux, 2018). Second, many big commercial banks are now doing more to promote technological advancements with the help of fintech companies to offer their products. Big banks have occasionally purchased fintech lenders or offered them ownership holdings. Due to the related regulatory requirements, alliances between Fintech companies and small banks are less frequent. However, there is an indication that certain co-operative banks can restore profitability to small business lending after some decades of tightening operating margins by employing Fintech technologies to handle customer and application data (Eckblad et al., 2017; Kim & McKillop, 2019). The issues of co-operative banking in the new financial environment can be addressed with the help of financial education. A Quarterly Journal SCMS Journal of Indian Management, July-September 2023 8 Most people agree that there are no widely accepted benchmark measures in the banking industry to assess the perceived quality of a bank service. As a result, keeping a competitive advantage through high-quality service is a critical survival tool. Measuring service quality appears to be difficult for service providers due to the various qualities of services—intangibility, heterogeneous nature, inseparability, and highly perishable. As a result of these complications, various measuring models for gauging perceptions of service quality have been developed (Gronroos, 1983; Parasuraman et al., 1988). The SERVQUAL model, developed by Parasuraman et al. in 1988, featured ten parts. These ten elements were divided into five separate dimensions later in 1988. These include assurance, dependability, tangibility, responsiveness, and empathy. Due to its apparent correlation with expenses, profitability, customer satisfaction (Bolton & Drew, 1991; Boulding et al., 1993), customer retention, and positive word-of-mouth, service quality has grown in importance as a research topic. The perceived service quality can be measured using a variety of research tools. Among such broad instruments, the SERVQUAL model is well-known. Sindwani (2020) revealed that the quality of technology in banking services significantly impacts customer trust. A conceptual framework was developed using data from bank customers, focusing on reliability, security, responsiveness, and personalization dimensions. Customer involvement tempers the relationship between dependability, security, and customer trust. The findings indicate that customers expect automated banking services to be more reliable and safe. Convenience, while positive, is not enough to build customer trust. Personalization, reliability, security, and responsiveness positively affect customer trust. Banks can improve these areas to increase customer trust. Digitalization is also significantly impacting banking, a traditional branch system-oriented industry, as one example among many (Dapp, 2014, 2015; Moutinho et al., 1997). This affects banks' capacity to generate value for stakeholders (Hirt & Willmott, 2014; Walters, 2014). Digitalization generally provides banks with various options, such as enhanced customer interactions, better management options, and the assistance of new value chains and business models. Furthermore, the digital transition introduces a number of risks, such as winner-take-all dynamics, replaceable and modular business modelbuilding pieces, and a lack of digital skills (Hirt & Willmott, 2014). Furthermore, borderless international trade, high transparency, and mass consumer goods reduce market entry and switching costs. It has acknowledged the tenacity of financial co-operatives, which had their beginnings in the 19th century in Germany and continue to this day with a presence in more than 140 nations. The effectiveness of collaboration, in the form of network sharing, in achieving targeted business is acknowledged. The importance of relationship lending as a component of business model development was also highlighted. However, it raises concerns about the sustainability of this competitive edge in the face of disturbances from Fintech firms. According to Junger and Mietzner (2019), on household trust and comfort levels with new technologies, financial literacy, and general transparency, households with low levels of trust, strong financial knowledge, and a preference for openness are likelier to adopt fintech. The likelihood of switching, however, does not appear to be greatly impacted by household pricing perceptions. The study by Kurian and Radkar (2022) revealed that low financial literacy, lack of confidence, and low digital literacy are significant barriers to digital inclusion. Researchers in the hospitality business have been paying more attention to studies in service management (Halil & Kashif, 2005a; Riadh, 2009a). Researchers investigated the relationship between service quality and other factors, such as customer satisfaction and behavioural intentions (Maria et al., 2007; Francosis et al., 2007; Raidh, 2009b; 2010; Jani & Han, 2011; Basheer, 2012; Simon, 2012). Regarding customer adoption of technology, it is more difficult to pinpoint the fundamental variables influencing their choice, especially regarding free applications. In other words, we cannot determine whether a user prefers one technology over another using the fundamental Technology Acceptance Approach (TAM) model. It is crucial to identify additional components for the TAM's fundamental model (Susilo et al., 2019). Generation, gender, and bank type significantly impact the attitudes of young metropolitan banking customers, with interaction affecting the adaptation of automated IT-driven banking technologies (Mishra, 2022). Based on a primary survey conducted among urban cooperative bank officials, a study by Gupta and Thomas (2021) on finances through Urban Co-operative Banks provides insights into Telangana Urban Co-operative Banks' financial inclusion and Fintech performance. Slum dwellers and micro, small, and medium-sized businesses are served by more than 60% of urban co-operative banks. Yet, there is a glaring disparity in account ownership and credit availability. The analysis confirms the difficulties in balancing different stakeholder interests, but it also reveals that co-operative banks attain this balance more effectively than other organizational firms. A Quarterly Journal SCMS Journal of Indian Management, July-September 2023 9 Additionally, research needs to explore the impact of technological advancements on the evolution of the banking service quality model. As technology rapidly advances, banks must adapt and innovate their models to stay competitive. This includes exploring integrating artificial intelligence, blockchain, and other emerging technologies into business and service processes that can streamline operations, enhance security, and improve decision-making processes. Research on fintech has shown that after many years of negative operating margins, fintech solutions have made the path to reaching different types of consumers and small business lending profitable again. However, the growth of fintech has disturbed the financial services industry. Customers and members ceased to feel beholden to their familiarized service providers. As an alternative, they favour services that can be accessed remotely and are rapid and safe. It is crucial to link practitioner and academic research at this point to better understand the benefits and problems that Fintech presents to financial co-operatives and their regulatory authorities. A perusal of available literature on Fintech and the banking industry, it is understood that there are studies available related to Fintech and banks' relationship, Fintech adoption/applications in the banking industry, the effect and impact of Fintech facilities on banking, customer satisfaction in commercial banks. Studies related to Fintech adoption and customer contentment levels in co-operative banks are scanty. Research studies on Fintech adoption and customer contentment is an untouched area in the Ethiopian context, particularly regarding financial co-operatives and co-operative banks. The researcher found this research gap and attempted to fill this research gap in the co-operative banking industry in the Ethiopian context. 4. Objectives of the Study This research paper investigates the Fintech adoption by the Co-operative Bank Oromia, handling risk and cyber security issues in practicing Fintech applications, and the effect on service quality delivery to enhance customer contentment. The specific objectives are: 1. To examine the association between the bank facilities and Fintech adoption by the Co-operative Bank of Oromia and service quality dimensions. 2. To analyze the level of contentment among the customers on the service quality dimensions of the selected branches of the Co-operative Bank of Oromia. 3. Determine the impact of service quality dimensions on customer contentment in the context of Fintech usage. 4. To describe the risk and cyber security issues in practicing Fintech applications, service failure, if any, and strategies to be adopted to enhance customer contentment towards the service quality dimensions. 5. Research Methodology Both descriptive and analytical research methods were adopted in this study. The survey method was adopted for data collection. A mixed research approach was followed for data collection and data analysis. Quantitative and qualitative data were gathered and analyzed to fulfil the research objectives. The methodology employed in obtaining information about Fintech adoption, risks and security issues, and customer contentment in co-operative banking was via a survey conducted of a sample of customers who are using Fintech facilities of the bank. The survey questionnaire was created and distributed at random to the intended respondents. Account holders in specific CBO branches were targeted as respondents. In order to produce a realistic result, the data must be collected from a large population. As a result, the survey questionnaire was designed to apply to a diverse population, with respondents representing a range of genders, age groups, marital status, education background, designations, and levels of professionalism. Because distinct levels of society have different expectations and needs, choosing respondents from diverse backgrounds will almost certainly yield a more reliable result regarding Fintech adoption and usage and service quality by CBO branches. 6. Sources of Data Both primary and secondary data were used for this study. The source of primary data includes customers of sample branches of the Co-operative Bank of Oromia, the Director and employees of the Digital Banking Operations and Technology Unit, the Co-operative Bank of Oromia Head Office, and employees of the respective branches of CBO. Secondary data sources include websites, unpublished and published reports such as reports on the banking industry, and reports of the CBO. A Quarterly Journal SCMS Journal of Indian Management, July-September 2023 10 and customer usage of modern banking facilities like mobile banking, ATM, and internet banking. 7. Sampling Procedure and Techniques 7.1 Population (N) The population of the study is the customers of sample branches of CBO, the Director and employees of the Digital Banking Operations and Technology Unit, Co-operative Bank of Oromia Head Office, and employees of the respective branches of CBO were also contacted to explore Fintech adoption and service delivery. Customers of the branches were selected by using a convenience sampling technique. 7.2 Sampling procedure Regarding the sampling procedure, the researcher adopted a multi-stage sampling procedure to select the area in terms of district, branches, and sample customers. Stage 1. Selection of Operational Districts of CBO: As per the records of the CBO, there are 16 operational districts and two Area Relationships in Mekele (Tigrey Region) and Bahirdar (Amhara Region) of CBO in Ethiopia. Out of 16 operational districts, five operational districts, East, West, South, North, and Central, were selected purposively by considering the major criteria, including adopting Fintech Stage 2. Selection of Branches: Based on the discussion with the Director of Digital Banking Operations and Technology Unit, Co-operative Bank of Oromia Head Office, two branches from East Operational District, two branches from West Operational District, two branches from South Operational District, two branches from North Operational District, and two branches from Central Operational District were selected on the basis afore mentioned criteria namely, banking facilities and adoption of Fintech, customer usage of modern banking facilities like mobile banking, ATM, and internet banking. Stage 3. Selection of Customers: From each selected branch, based on convenience sampling, the researcher collected the required information and data for the study. The target number of customers as respondents was 60 from each branch of CBO's five operational districts totalling 600. In each branch, the researcher, with the support of bank staff, collected data from customers using Fintech facilities like ATMs, mobile banking, and internet banking and are willing to respond to the questionnaire administered. Table 1. Sampling frame No. Branch selected East Operational District 1 2 Bole Medhanialem Saris Sample Customers 60 60 West Operational District 3 4 Ambo Holata 60 60 South Operational District 5 6 Jamo Marva North Operational District 7 8 9 10 Addisu Gebeya Lamberet 60 60 60 60 Central Operational District Agamsa (Merkato) Dabaso (Stadium) 60 60 Total 600 A Quarterly Journal SCMS Journal of Indian Management, July-September 2023 11 8. Tools and Method of Data Collection B) Key informant Interview A) Semi-Structured Questionnaire Key informant interview was conducted with the Director and employees of the Digital Banking Operations and Technology Unit, Co-operative Bank of Oromia Head Office in order to elicit information on the service quality dimensions, reasons for service failure, and strategies to be adopted to recover from service failure and maximization of customer contentment. Besides, employees of the respective branches of CBO were also contacted to explore Fintech adoption and service delivery. A semi-structured questionnaire was prepared and administered among the selected branch customers. The questionnaire was composed of close-ended questions with multiple choices or dichotomous types. The questionnaire is divided into four sections for easy comprehension and reading. The first section of the questionnaire considers the respondents' demographic information. For respondents' convenience, the questions have multiple-choice answers. Testing the association between Fintech adoption and service quality dimensions is the second part of the questionnaire. The third section of the questionnaire required the respondents to rate the customer contentment level of the bank they have chosen attached to a five level pre-defined scale ranging from Highly Satisfied to Highly Dissatisfied to elicit information regarding customer contentment. The opinion of customers was elicited to analyse the risks and security issues, Fintech application service failure, and strategies to be adopted for enhancing service quality/customer contentment. The goal is to collect respondents' opinions in response to the aforementioned issues. The questionnaire's responses are solely based on the respondents' experiences and opinions. All data collected were fed into the Statistical Package for the Social Sciences (SPSS) and Microsoft Excel for analysis. While some responded quickly to the survey, others needed more time to process the questions and inquiries. Nonetheless, most of them patiently filled out our questionnaire, and some even provided their opinions. Face-to-face interviews with customers at the selected branches were used to administer the survey questionnaires. 9. Method of Data Analysis SPSS was used to analyse the data. The Chi-square test was used to determine the relationship between the rating of banking and Fintech facilities and service quality dimensions. The means and standard deviation were used to measure the level of customer satisfaction on service quality dimensions. The most influential service quality dimensions on the level of customer contentment were determined using Ordered Logistic Regression. Descriptive statistics, percentages, and means were used for data analysis and interpretation to analyse risks and security issues, Fintech application service failure, and strategies to be adopted for enhancing service quality/customer contentment 10. Major Findings of the Study 10.1 Analysis of the relationship between the Bank & Fintech facilities and service quality dimensions Table 2. Association between the Bank & Fintech facilities and Service Quality Dimensions: Chi square test results Service Quality Dimensions Bank & Fintech Facilities Overall facilities X2 value Asymp. Sig. (2-sided) Sig. X2 value Tangible Reliability Responsiveness Assurance 66.541 180.683 130.061 172.360 .207 .000 .000 .000 NS 9.828 S 35.210 S 23.605 .003 S 33.150 .000 A Quarterly Journal Empathy 95.246 .001 S 42.958 .000 SCMS Journal of Indian Management, July-September 2023 Service Quality Dimensions Bank & Fintech Facilities ATM Internet banking 12 Tangible Asymp. Sig. (2-sided) Sig. X2 value Asymp. Sig. (2-sided) Sig. Reliability Responsiveness Assurance Empathy .090 .002 .114 .110 .081 NS 7.474 S 13.338 NS 14.692 NS 10.865 NS 4.407 .486 .101 .065 .209 .819 NS NS S NS NS Source: Computed from field survey data, 2021/22 As for overall banking and Fintech facilities, the chi-square test results indicate an association between overall banking and Fintech facilities and Reliability as a service quality dimension with a chi-square value of 180.683, which is significant at a 0.01 level. There is an association between overall banking and Fintech facilities and Responsiveness as a service quality dimension with a chi-square value of 130.061, which is significant at a 0.01 level. There is an association between overall banking and Fintech facilities and Assurance as a service quality dimension with a chisquare value of 172.360, which is significant at 0.01 level. There is an association between overall banking and Fintech facilities and Empathy as a service quality dimension with a chi-square value of 95.246, which is significant at 0.01 level. It is found that except tangibles as a service quality dimension, all other service quality dimensions have significant associations with the overall banking and Fintech facilities. Thus, it can be inferred that the higher the banking and Fintech facilities rating, the higher the service quality in all dimensions. 10.2 Analysis of the Level of Customers' Contentment on Service Quality Dimensions Customer contentment was measured in terms of satisfaction. The sample customers were highly satisfied with the convenience of the bank location (mean=4.4182; SD=0.78740) and neatness of the staff appearance (mean=4.6667; SD=1.209) as regards the tangible services of the bank since none were dissatisfied with the appearance of the staff and insignificant percentage on the location of the bank. The customers were satisfied with the other attributes of tangible services since the mean value for the statements ranged from 3.41 to 4.20. None of the sample customers were highly satisfied with the reliability service dimension of the selected branches of CBO. However, the customers were satisfied with all the reliability service dimensions attributes since the statements' mean value ranged from 3.41 to 4.20, except for the accuracy of records. The sample customers were highly satisfied with the responsiveness attribute "Staff are listening to the complaints carefully" of the selected branches of CBO since the mean score ranged from 4.21 to 5.00. Further, the customers were satisfied with all the attributes of responsiveness service dimensions since the mean value for the statements ranged from 3.41 to 4.20. The sample customers were highly satisfied with feeling safe in the delivery service (mean=4.2364; SD=0.77040) and politeness of the employees (mean=4.1288; SD=1.06889) as regards the assurance services of the bank, since none were highly dissatisfied on the appearance of the staff and insignificant percentage on the location of the bank. The customers were satisfied with the other attributes of assurance services since the mean value for the all-other statements ranged from 3.41 to 4.20. Nonetheless, a significant proportion of the customers was dissatisfied with the assurance attributes such as interest in solving the problems (24.8%), and staff felt safe in their financial transactions (21.2%). The survey result shows that the sample customers were highly satisfied with the empathy attribute, viz., proper functioning of facilities inside the bank (mean=4.3879; SD=5.35942). Although the customers were satisfied with other attributes of empathy dimensions, the selected SCMS Journal of Indian Management, July-September 2023 13 branches need to concentrate on some of the empathy attributes such as special attention to frontline counter facilities, equal treatment for all customers, the staff of the bank understanding the specific needs of customers, convenience for physically disabled persons and problemsolving abilities of staff since one-fourth of the sample customers expressed dissatisfaction on these attributes. The Director and employees of Digital Banking Operations & Technology revealed that as for the tangibles dimension, a yearly assessment had been made using a balanced scorecard, and customer contentment was measured; the bank appearance was upgraded, and the bank logo and colour were changed. As for the reliability dimension, the bank has taken HRD measures and improved staff skills. As for the responsiveness dimension, they reported that it is not as expected; as for the assurance dimension, the bank is taking steps through research and development by designing and offering training; and as for the empathy dimension, the Director of Digital Banking Operations & Technology revealed that it is very poor in some branches as observed by the team of experts from the head office of CBO. reliability and assurance service dimensions are the most powerful factors on the level of customer contentment on Fintech adoption and usage since the calculated P-value is less than 0.01 level of significance. This implies that a oneunit increase in the reliability and assurance services of the bank leads to an increase in the level of customer contentment. Further, responsiveness as an independent variable was found to be the next most influential factor on the level of customer contentment, which is significant at a 0.05 level. The variable tangibles is the least influential factor on the level of customer contentment, which is significant at a 0.10 level. Empathy as an independent variable does not influence the level of customer contentment. 10.4 Customers' opinion on risks & cyber security issues, and service failure 10.3 Analysis of the influential service quality dimensions and level of customer contentment in the context of Fintech facilities and Usage The survey results show that risks and cyber security issues are involved while adopting and using technology in banking operations and customer services. They are network problems, deduction of amount from customers' accounts in the event of not receiving cash from ATM due to poor network or error, ATMs without secured cabins and security in some branches, errors in using mobile applications due to internet issues, and the like. The bank has been devising mechanisms to solve such issues. The estimates of parameters of independent variables expected to influence customer contentment level are displayed in Table 3. Four variables were found to be significant from the five service quality dimension variables by influencing customer contentment level in the study area. The results of ordered logistic regression analysis show that Among the service failures, as evidenced by the customers, the most severe service failure is that the employees don't have a pure attitude and politeness in dealing with the customers, which means the services fall under the assurance service quality dimension. It was observed from the key informant interview with the employees that they are Table 3. Ordered Logit Regression Result: Determinant Service Quality Dimension of Customer Contentment Level Variables Estimate Std. Error Wald Sig. Tangibles (SQDTAN) 1.375 .801 2.946 .086* Reliability (SQDREL) 1.226 .302 16.528 .000*** -1.357 .565 5.766 .016** Assurance (SQDASS) 1.086 .358 9.187 .002*** Empathy (SQDEMP) 1.040 .777 1.793 .181 Responsiveness (SQDRES) Chi-square x 53.047 p=0.000 2 -2log likelihood 103.350 N=600 Source: Computed from field survey, 2021/22 *** Significant at <1%, **, Significant at <5** and * significant at<10%. A Quarterly Journal SCMS Journal of Indian Management, July-September 2023 14 unhappy with the working conditions, salary, and motivational aspects, which lead to repercussions in dealing with customers with a high degree of frustration. The second most severe service failure is hygiene and cleanliness in the branches, which ultimately damages the responsiveness service quality dimension. The next major service failure identified by customers is that the branches have personnel who appear to be well-trained, competent, and experienced. It was observed from the key informant interview with the employees that there is high employee turnover due to working conditions and salary. Well-trained, experienced, and highly competent employees seem to switch to other banks and companies wherein lucrative salary is ensured and the possibility of earning extra income is higher than other commercial banks. 10.5 Customers' opinion on the strategies to enhance the service quality in the context of Fintech adoption, usage, and banking facilities It was observed that the customers have opined to adopt strategies on tangible service quality by considering the physical facilities (mean=3.8318), materials and equipment (mean=3.9061), and personnel and communication (mean=3.9045). It implies that the branches should be beset with the equipment needed to deliver the services with highcaliber employees, and arrangements must be made for access to communication materials. More than half of the customers opted to adopt strategies such as performing the promised services dependably, accurately, and by maintaining reliability. It is one of the biggest challenges of the branches to provide the promised services. Nonetheless, utmost care has to be given while promising to customers, keeping in mind the available facilities at the bank. This will ensure customer loyalty and retention. More or less 80 percent of the customers expressed their opinion to improve the responsiveness service quality by considering the provision of prompt services. Customers are the fulcrum of any business undertaking. Hence, utmost care has to be given by the bank in providing services promptly. The bank employees and the authorities should come voluntarily to help the customers whenever needed. Customers have overwhelmingly chosen to improve the assurance service quality dimension by implementing strategies such as employee skills, ability, and courtesy to convey trust and customer confidence. This could be possible through intensive employee training programs on customer relationship management, stress management, and time management. More than 60 percent of the customers have expressed their opinion to improve the empathy service quality dimension by giving individual attention to customers, due care to customers, and delivering the services according to the convenience of the customers. The above applies to Fintech adoption in banking operations and customer usage of such technology-based services. Banking Service Quality Recovery Strategy Model (BSQRSM) for Co-operative Bank of Oromia Graph 1: Banking Service Quality Recovery Strategies Model for Co-operative Bank of Oromia Source: Developed by the Authors based on literature review and research findings (2023) A Quarterly Journal SCMS Journal of Indian Management, July-September 2023 15 The banking service recovery strategy model developed by the author encompasses the elements of service quality dimensions, representing all the banking facilities and services offered by the banking industry. Service delivery is an important element that must be given due weight in delivering banking facilities and services to the customers. Service delivery assures the availability and accessibility of services to the customers. If the banks offer customers quality service, it results in customer contentment. If there is a service failure, then it will lead to customer discontent with the banking services and facilities. Service failure using critical incidents technique can be categorized into: 1. Service system failure including technology; 2. Failure in implicit or explicit; 3. Unprompted or unsolicited employee behavior. These are on the part of the banks that deliver facilities with service failure. There is another category of service failure on the part of the customers, i.e., 4. Problematic customer misbehavior. This can be due to drunkenness, verbal and physical abuse, breaking banking policies and laws, and uncooperative customers. Service failure always leads to customer discontent with the banking services. Here is the question of making the customers satisfied with the banking facilities and services. If the banks want to satisfy the customers even after the services are over, they must examine the cruelty of service failure. Service failure is inevitable and can't be prevented, but customer satisfaction and expectations can be checked and balanced to lessen the severity of service failure. The severity of service failure has a negative effect on customer contentment. The higher the service failure, the lower the customer contentment; so, the banks must examine the severity based on the customer expectations and behavior intentions, and they have to reduce the severity level of service failure to satisfy the customers with their facilities and services. Banks should go through the service recovery process in order to satisfy and retain customers. It is critical to prevent customers from switching to competing banks and spreading negative word of mouth. Service recovery refers to service providers' actions in response to service failure. Service recovery is a process to identify service failure, classify the root causes of the service failure, and resolve customer problems, which improves the service system. Service recovery can be categorized into: 1. Customer recovery that re-establishes customer contentment and loyalty after a service failure; 2. Process recovery that ensures that failure incidents encourage learning and process improvement of service delivery to make the customers satisfied; and 3. Employee recovery to train and retain employees for this purpose, i.e., for the purpose of service recovery. The banks implement different service recovery strategies to make customers satisfied with their services and retain them for the future. Service quality dimensions-based strategies like tangibles, which are the techniques that rectify or fix failed services, and psychological strategies focus on customer needs and wants. For the banking service recovery strategy model, we consider two major categories of strategies, which include all dimensional strategies. They are: 1. Assistance Strategy, which focuses on current problem-solving related to managerial intervention, replacement, correction, and apology. 2. Compensation Strategy, which focuses on future solutions. By implementing all these strategies, the banking industry would maintain customer relationships to retain customers, increase loyalty among customers if possible, and influence future behavior intentions. Suppose the banks deliver facilities and services by following the above service recovery strategies in a proper manner. In that case, there is a high possibility to satisfy the customers not only while availing banking services but also even after service failure, which is guaranteed. 11. Conclusion The customers of the selected branches of CBO were young and middle-aged, and highly dominant groups were male. It is worth noting that a significant proportion of the customers was dissatisfied with the tangible attributes such as physical ambience, easy access to reservation, attractive and stylish decoration of the branches, clean and comfortable office building, materials with the service, modern facilities of communication, availability of rest room services and availability of safety and security facilities and instructions. It may also be concluded that although the customers were satisfied with the attributes of reliability services, the selected branches are in a position to fully satisfy the customers in the areas of information about the banking services and delivery of services at the time promised. Although the customers were satisfied with all the attributes of responsiveness dimensions, the branches need to pay due attention to satisfy fully the customers in the areas of frontline services and telling the customers about the exact time that the service will be performed. A significant proportion of the customers was dissatisfied with the assurance attributes such as interest in solving the problems and staff feeling safe in their financial transactions. The selected branches need to concentrate on some of the A Quarterly Journal SCMS Journal of Indian Management, July-September 2023 16 empathy attributes such as special attention to equal treatment for all customers, the staff of the bank understanding the specific needs of customers, convenience for physically disabled persons, and problem-solving abilities of staff since one-fourth of the sample customers expressed dissatisfaction on these attributes. Although a strong positive relationship exists between banking facilities and service quality dimensions, empathy service does not affect customer satisfaction. Customers' expectations, particularly in the service sector, are changing on a daily basis, so the bank must implement the appropriate strategies to improve service quality on the one hand and customer satisfaction on the other hand. 12. Recommendations Fintech Related: = = = The following recommendations are forwarded to enhance the service quality of the Co-operative Bank of Oromia. Banking facilities Related: = = = = = = It is critical for service firms, such as those in the banking industry, to efficiently manipulate their physical environment by injecting aesthetic elements such as design and architecture into the overall structure to appeal to customers, increasing contentment and repeat patronage. The bank should install the latest equipment for cleaning applications to maintain the neatness and cleanliness of the branches. This should help them to attract new customers. The bank could audit whether the rates/charges charged are affordable to customers of all classes and revisit the policy, not compromising on their quality of services to maintain good customer relations. Going to deliver the service at the right time is also an index of an organization's efficiency. The bank, as the service provider, must provide the service within a specified time frame. The bank staff should be regularly made to realize what the bank's main aim is. They must be told about the importance a customer holds for the bank so that the staff is more willing to serve the customers well. The bank should take personal care of all the customers to increase customer contentment. = The bank staff should make an immediate response to the requests by customers, ensure safe and secure service, and maintain the good appearance and proper functioning of the network system. The staff should be kept aware of the latest technology developments in and around the bank in order to sense the latest developmental needs. The study concludes that using digital technology in Fintech applications has altered the financial ecosystem and transmogrified the basic process of payment methods. The management should provide adequate manpower to have staff available to attend to the customer's request and the customer's complaints immediately to redress the issues related to Fintech adoption and usage. At the outset, it is recommended that the CBO can employ new advanced financial technologies like Online Banking, Automated Deposit cum Withdrawal Machine (ADWM), Fraud Detection and Prevention, Portfolio Management (Robo-advisors), Online Loan Sanction, Loan Underwriting, Robotic Process Automation (RPA), Digital Payments, Insuretech and Regtech etc. to explore more opportunities to grow and offer better quality services. 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