Communication Strategies as a Catalyst for Trust Building During Banking Mergers: Lessons from Nepalese Bank

Abstract

This study investigates the key determinants of customer satisfaction in the post-merger context of
NIC Asia Bank and Kumari Bank, with a focus on technological innovation, employee competence, and
communication strategies. Drawing on theoretical frameworks such as Expectancy Disconfirmation Theory
and Post-Merger Integration Theory, the study integrates cultural integration as a moderating variable. Using
a stratified random sampling method, data were collected from 500 respondents representing diverse
customer segments. Quantitative analyses, including descriptive statistics, correlation, and regression models,
reveal that employee competence (β = 0.50) is the most significant driver of satisfaction, followed by
communication strategies (β = 0.40) and technological innovation (β = 0.35). Cultural integration (β = 0.20)
amplifies these relationships, enhancing the customer experience during organizational transitions. Findings
highlight significant urban-rural disparities, with urban customers favoring digital banking and rural
customers relying on traditional services. Accessibility challenges were particularly pronounced in rural areas.
This study provides actionable recommendations for banks navigating mergers, emphasizing the need for
improved digital infrastructure, tailored communication, workforce training, and cultural alignment to ensure
sustained customer satisfaction and loyalty. These insights contribute to academic discourse and offer practical
strategies for the financial sector.