CHAPTER Ⅰ
INTRODUCTION
The banking industry in Myanmar is one of the essential pillars supporting the
country’s economic transformation. With a history shaped by decades of political
isolation and economic instability, the financial sector has long been underdeveloped
compared to its regional counterparts. For many years, limited access to formal
banking services, strict regulatory environments, and a lack of financial literacy
hindered the industry’s growth. However, in the past decade, Myanmar has witnessed
significant progress toward modernizing its banking sector, driven by both domestic
reforms and the influence of global financial trends. Today, banks in Myanmar are
playing an increasingly important role in expanding access to financial services,
promoting entrepreneurship, and driving digital innovation. The emergence of mobile
banking, particularly mobile wallets such as KBZ Pay has helped bridge the gap
between the unbanked population and financial inclusion. As digital technology
advances, banks are evolving beyond traditional brick-and-mortar institutions into
agile, customer-focused service providers. Despite these improvements, many
challenges remain, such as currency instability, trust deficits among the public, and
the need for stronger regulatory frameworks. Banking is more than just the
management of money it is the heartbeat of a growing economy. It fuels businesses,
supports families, and builds the foundation of future development. As Muhammad
Yunus once said, “Access to capital is not the problem. The real issue is the lack of
inclusive financial systems that serve all people”—a sentiment that deeply resonates
with Myanmar’s current journey in building a more inclusive and modern banking
industry.
Service quality is an important part of every business. It shows how well a
business can meet customer needs and provide good service. If employees have strong
skills and knowledge, they can offer better service and make customers satisfaction.
So, businesses need to understand what service quality means, know the factors that
affect it, and learn how to improve it. These universities teach students the skills and
knowledge needed to provide good service. This helps students succeed in their future
careers and helps businesses become more successful.
Service quality is a vital element in determining customer satisfaction,
especially in today's highly competitive service industries. To evaluate the quality of
service effectively, researchers often rely on five key dimensions: tangibles,
reliability, responsiveness, assurance, and empathy. These dimensions provide a
structured way to understand how customers perceive a service from the physical
environment and appearance to the trustworthiness and care provided by the staff. By
examining these five aspects, businesses can better identify their strengths and
weaknesses and improve overall service performance to meet or exceed customer
expectations.
Customer satisfaction is a crucial indicator of how well a company’s products
or services meet or exceed customer expectations. It reflects the customer’s overall
experience and perception after using the service. High levels of satisfaction can lead
to customer loyalty, positive word-of-mouth, and long-term business success.
Therefore, understanding and improving customer satisfaction has become a primary
focus for many organizations, especially in competitive service industries.
Taunggyi University is a well-known public university in Shan State,
Myanmar. It was first founded as Taunggyi College on 15 June 1961 and later became
a degree college under Mandalay University. On 17 August 1992, it became an
independent university. There are several faculties such as Arts, Social Sciences,
Education, Law, and Economics. The campus is located in a scenic area of Taunggyi
and has facilities like a library, sports complex, and student union. Students can join
various clubs and enjoy cultural and extracurricular activities. In addition to its
academic offerings, Taunggyi University is committed to practical learning
experiences, organizing field trips and extracurricular activities to enhance students'
real-world skills. This study explores customer satisfaction of Taunggyi University
students.
1.1 Rationale of the Study
This study holds significant value in exploring the usage patterns, trust, and
satisfaction levels of KBZ Pay users in Myanmar, offering insights that can contribute
to the growth and optimization of mobile payment systems. Firstly, in a country where
a substantial portion of the population remains unbanked, mobile payment platforms
like KBZ Pay play a vital role in promoting financial inclusion. Understanding the
extent to which these services reach underserved communities can help identify both
their impact and potential barriers to further inclusion. Secondly, factors such as trust,
security, and service quality directly influence user behavior and satisfaction.
Analyzing these dimensions allows service providers like KBZ Bank to improve user
experience and develop more effective service delivery and marketing strategies.
Thirdly, research on KBZ Pay contributes to a broader understanding of
Myanmar’s digital economic development. As mobile banking and digital transactions
become increasingly integral to everyday financial activities, insights from this study
can support better policy decisions, investment planning, and technological
innovation. For business owners and merchants, this study shows how KBZ Pay can
be an effective tool to increase sales and improve customer satisfaction. Accepting
KBZ Pay as a payment method can lead to faster transactions, reduced handling of
physical cash, and opportunities to reach more tech-savvy customers. It also enables
small and medium enterprises (SMEs) to participate in Myanmar’s growing digital
economy without the need for complex banking systems.
This study examines KBZ Pay, one of the most prominent mobile payment
systems in Myanmar, by focusing on usage patterns, trust, and customer satisfaction
among students at Taunggyi University. It aims to provide insights into the attitudes
and experiences of student users while assessing the local impact and effectiveness of
KBZ Pay at the regional level. In a country where a large segment of the population
remains unbanked, mobile financial services serve as a crucial tool for promoting
financial inclusion, particularly among tech-savvy university students. Furthermore,
factors such as trust, security, convenience, and service quality play an essential role
in influencing user satisfaction and behavioral decisions. As Taunggyi is considered a
semi-urban area, the findings related to digital financial usage among local students
can support decision-making for businesses, policymakers, and financial institutions
regarding technology investment and service improvement. Therefore, this study
contributes valuable knowledge that can benefit other universities and developing
regions aiming to improve mobile payment adoption and performance. Moreover, the
findings can serve as a valuable reference for similar studies or applications in other
developing countries, particularly in the context of enhancing inclusive, secure, and
customer-centered digital financial services.
1.2 Objectives of the study
The objectives of the study are:
(1) To explore the service quality and customer satisfaction of KBZ Pay Users
in Taunggyi University
(2) To examine service quality on the customer satisfaction of KBZ Pay Users
in Taunggyi University
1.3 Methods of Study
This study focused on customer satisfaction of Taunggyi university students.
Both primary and secondary data were used in the study. The primary data were
collected from 354 respondents out of 3008 students by using a stratified random
sampling method. Sample size was calculated using Yamane's formula with 95%
confidence level (Yamane, 1967). Structured questionnaires were distributed to
selected respondents. Data collection commenced in December 2025. Secondary data
were acquired from the relevant textbooks, previous studies, journals, websites and
other related sources. In this study descriptive statistics was used to describe the
profile of respondents and the perception of the respondents on logistics activities and
organizational performance.
1.4 Scope and Limitations of the Study
This study investigates the usage patterns, user satisfaction, and challenges
related to KBZ Pay among undergraduate students in Zoology, Mathematics,
Economics, and Psychology at Taunggyi University. The scope includes examining
the frequency of use, purposes of usage (such as bill payments, money transfers, and
online purchases), user awareness, and perceived benefits and risks associated with
the mobile payment platform. The study only focused on students from the four
selected majors at Taunggyi University and were not represented the views or
experiences of young adults across Myanmar. Other potential influencing factors such
as socioeconomic background, access to mobile devices or internet connectivity,
digital literacy level, and government digital policies will not be considered.
Therefore, the findings will be limited to the selected variables and the students from
the specified majors at Taunggyi University.
1.5 Organization of the Study
This study is divided into five chapters. Chapter I is an introduction, which
includes rationale of the study, objectives of the study, methods of study, scope and
limitations of the study and the organization of the study. Chapter II covers literature
review related to the concept of service quality, dimension of service quality,
customer satisfaction, findings from the previous studies and conceptual framework
of the study. Chapter III describes overview and customer satisfaction of KBZ pay
users in Taunggyi University. Chapter IV examines the service quality of KBZ Pay
Users in Taunggyi University. Chapter V describes conclusions based on the findings,
along with discussions, suggestions and recommendations, and directions for future
research.