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Digital Banking Services:Customer Perspectives

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© 2018 JETIR December 2018, Volume 5, Issue 12 www.jetir.org (ISSN-2349-5162)

Digital Banking Services: Customer Perspectives

1
A.Pappu Rajan , 2G.Saranya
1
Associate Professor,2Research Associate

1
Department of Management Studies, St. Joseph’s Institute of Management,
1
St. Joseph’s College(Autonomous), Tiruchirappalli, Tamil Nadu, India

Abstract : Digital Banking is a generic term for development of banking services and delivering products through electronic
channels, such as the Automated Teller Machines, the telephone, the internet, the mobile phone. Customers are still waiting for new
fastest banking services but India is developing in Technology enabled banking service in a revolutionary transformation that will
bring many new features, including anytime, anywhere, ultra-fast response times in banking transaction. The overall objective of
the study is to identify the factors influencing of digital banking on customer satisfaction. This research also identifies the factors
to taking the development in terms of level of accessibility, adaptability, affordability and efficiency in the usage of digital banking
services. Descriptive study is applied with a sample size of 100. Data was collected using questionnaire method. Analysis was done
through SPSS using for univariate, bivariate and multivariate techniques. The study recommends that there is need by banks to invest
more on robust reliable systems to reduce incidents of failed transactions and transactional errors in ATMs, Mobile banking and POS
terminals, need to come up with an application that can be used to enhance digital banking, facilitation of ICT skills so that
technology can be embraced and lastly there is need to carry out customer satisfaction surveys to establish how customers are
adapting to technology. The paper discusses the relevant few review of literature, research methodology of this study, research
analysis, research finding and conclusion of this study.

IndexTerms - Banking Services, Technology in banking

I. INTRODUCTION

Banks in India have witnessed a radical change from conventional banking to digital banking. Today they are poised for digital
banking at a rapid pace. The buzzword in India today is creating a cashless economy and their future. The conventional way of banking
services in India was slow, not cost-effective and created barriers to rapid economic growth.
The introduction of digital banking has revolutionized the banking sector with various recent updated modernizing technology. The
Computer world has changed different new technology such cloud computing, grid computing, Mobile computing, IoTs, Machine
learning and Artificial Technology.
1.1 Bank : It is a financial institution that accepts deposits from the public and creates credit. Lending activities can be performed
either directly or indirectly through capital markets.
1.2 Customer Satisfaction: It is a term frequently used in marketing. It is a measure of how products and services supplied by a
company meet or surpass customer expectation. Customer satisfaction is defined as the number of customers, or percentage of total
customers, whose reported experience with a firm, its products, or its services exceeds specified satisfaction goals.
1.3 Digital Banking: It is further defined as delivery of banking products and services to customers through electronic channels.
Digital Banking is also known as Electronic Banking, Cyber Banking, Home Banking, or Virtual Banking and includes various
banking activities that can be conducted from anywhere.
1.4 Research methodology: It is the specific procedures or techniques used to identify, select, process, and analyse information
about a topic.
1.5 Technology: It is the collection of techniques, skills, methods, and processes used in the production of goods or services or in
the accomplishment of objectives, such as scientific investigation.
1.6 Online Banking: It is an electronic payment system that enables customers of a bank or other financial institution to conduct a
range of financial transactions through the financial institution's website. The online banking system will typically connect to or be
part of the core banking system operated by a bank and is in contrast to branch banking which was the traditional way customers
accessed banking services.
2.REVIEW OF LITERATURE
Sikdar and Makkad (2013) in this study discussed on Internet Banking in India – a perspective on benefits and challenges involved
suggested that commercial banking activities over the long haul can be significantly streamlined by limiting the branch based
connections with the customers, empowering the banks to centre around coordinate offering and different exercises requiring higher
spotlight with respect to commercial banks.
Trivedi and Remedios (2014) this research explained the Impact of Internet banking on customer retention plainly demonstrate that
internet banking holds customers. On the off chance that the bank intends to expand the customer base of internet banking they
should concentrate more on service quality, responsiveness, protection and security, affirmation and dependability elements of
internet banking. All the more ever the bank ought to be more mindful to make their internet banking service greater quality full
for their customers.

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Manivannan (2017) author stated in this study on usage of Digital Banking and the customer centric banking. They are Internet,
Wireless gadgets, ATM's, Mobile payment wallets and different digital applications. These offices are broadly given by all the
banking organizations. The study concluded industry looking preferences a customer centric banking industry.
3. RESEARCH METHODOLOGY
3.1 Formulation of Research
Customer satisfaction is one of the factor for the long term success of any organization. In customer role is most important than
other in all business. Customer demands and expectations are threat in financial services in banking and the same time these days’
consumers are increasingly developing relationships with multiple providers. Competitors from adjacent industries and financial
technology startups are now flooding the market with innovative, technology-driven deviations from the traditional banking mode.
Digital modernization, is giving traditional banks a second chance to deepen customer satisfaction and loyalty, driving long-term
relationships and profitability with the approach. Digital banking channels improve customers’ access, facilitate the offerings of
more services, attract new customers, provide services offered by competitors and reduce customer attrition. So digital banking is
most need for banking services in the business world. Hence developing the technology in banking sector is very essential to attract
the customers therefore enhancing the technology in customer point of view is also very essential. Therefore, researcher is taken
this research for main objective of services required to improve the technology and develop in banking. The purpose of the study is
to analyse the impact of digital banking services and reasons for choosing internet banking, satisfaction of customers towards digital
banking and find out the problems encountered by the customers. This research problem also focuses on analysing the level of
accessibility, adaptability, affordability, accuracy, reliability and efficiency in the usage of various digital banking services.
3.2 Scope of this Research
The recent digital banking innovative services are electronic payment, electronic banking, mobile banking, Automated Teller
Machines, Electronic Clearing Services, National Automated Clearing House, Credit and Debit Cards, Immediate Payment Service
(IMPS), National Electronic Funds Transfer (NEFT), Prepaid Payment Instruments (PPIS), Unified Payments Interface (UPI),
Social Media Banking. In this numerous technology development business world required critical evaluation and examination of
digital banking services in respect of customer satisfaction and to find new strategy to adopt or develop the technology and systems.
In Digital India now days Government is taking initiation of digital services in banking like ACH, online, wire transfer and mobile
money transfer therefore this study is most essential for improving services of bank. Though a number of research study already
has taken this research area , researcher has done this research to taking the development in terms of level of accessibility,
adaptability, affordability and efficiency in the usage of digital banking services in customer perspective and to this study focuses
on Digital banking - a technology driven banking that involves E- banking, Digital wallets like PayPal, Mobile banking, ATMs,
RTGS and POS terminals which influences customer satisfaction which is a measure of how a customer responds having used in
digital banking platforms that makes them remain loyal to the bank, or lead to increase in the numbers of customers using the
various digital channels platforms to do their banking. In current business world in digital scenario of all business and specially
technology enabled banking services are having numerous development of technology like cloud computing, mobile computing,
IoTs, financial analytics so the research in technology based banking services are having major scope in business research.
3.3 Research Objectives
To analyse the factors influencing usage of technology in banking services.
To identify and analyse the impact of technology in banking services in term of accessibility, adaptability, affordability, efficiency
in customer perspectives.
3.4 Research Design
The study is type of descriptive study. The questionnaire method was used to collect data for analysis. The questionnaire has
demographics variables and other variables are used to identify customer satisfaction level in accessibility, adaptability,
affordability, efficiency in banking services. Simple random sampling was used by the researcher. The sample size of this study is
100. Questionnaire method was used to collect the primary data for this study. The questionnaire was divided in three sections.
Section A gathered demographic data regarding respondents such as gender, age, and academic qualification. Section B deals with
questionnaire related to speed of transaction, section C deals with questionnaire related to accessibility, Section D deals with
questionnaire related to adaptability, Section E deals with questionnaire related to affordability, section F deals with questionnaire
related to efficiency, section G deals with questionnaire related to ease and convenient banking, section H deals with questionnaire
related to accuracy and I deals with questionnaire related to reliability respectively.
Descriptive data analysis entailed counts, percentages, cross tabulations and measures of central tendencies. T test, Anova, Chi-
Square were used for analysis the relationship among variables.
4.0 RESEARCH DATA ANALYSIS AND INTERPRETATION

Table 1.0 – Descriptive Analysis

Attributes Standard Deviation

Mobile Banking
.502
E-Banking .498

POS Terminals .197

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ATM .488

Telebanking .219

Digital Alerts .416

Once a day 0.2727

Two or more times a day 0.488

Once a week 0.465

Two or more times a week 0.409

Mobile Banking 0.502

E-banking 0.492

Mobile Money 0.327

Fund Transfers 0.429

Plastic Money 0.197

Faster log in facility 0.845

Performance of E-Cards 0.730

Transfer of funds ( NEFT, RTGS) 0.784

Clearing services ( ECS- credit/ debit) 0.798

ATM services 0.709

Internet Banking Services 0.820

Telephone Banking Services 0.813

Mobile Banking Services 0.837

24 Hrs Services 0.744

Information provided on
0.828
Bank Website
Up to date content
0.740
Process of Transactions
0.844
Wide range of products and
0.871
services provided
Problem solving through 0.790
instant information
Bank insists on error free 0.770
transaction records
Electronic bill payments 0.757

Service charges 0.847

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The table 1.0 shows how the speed of transactions adaptability, affordability, efficiency, accuracy, reliability are influenced
Customer Satisfaction
Null Hypothesis: There is no significant difference between gender and selected attributes in digital banking services in customer
perspective.
Alternate Hypothesis: There is significant difference between gender and selected attributes in digital banking services in customer
perspective.
Table 2.0 Attributes - Customer Satisfaction – Banking Services
Attributes / Factors Gender Mean S.D T value P value

Speed of Male 5.8615 2.73791 1.312

.014
transaction Female 5.1714 2.00713 1.438

Accessibility Male 17.3077 2.06854 .175

.714
Female 17.2286 2.31473 .169

Adaptability Male 12.3538 1.80651 1.104

.862
Female 11.9429 1.71401 1.122

Affordability Male 13.9692 1.26206 .520

.178
Female 13.8286 1.33913 .511

Efficiency Male 7.5846 2.38414 -.283

.075
Female 7.7143 1.74173 -.311

Ease and Male 8.0308 2.37151

.490 .288
convenient Female
7.8000 1.98227 .518
banking

Accuracy Male 9.0462 3.03846 -.628

.258
Female 9.4571 3.27506 -.614

Reliability Male 7.8769 2.45273 .582

.424
Female 7.5714 2.59281 .573

Overall Use of Digital Male 82.0308 9.69853 .691

Banking Services .341
Female 80.7143 7.78978 .738

Table 2.0 shows the descriptive statistics of the various factors of digital banking services. From the table 2.0 it is understood that
the customers are neutral on the variables indicating the speed of transaction based on the standard deviation of the respondents
which is 2.5177. The customers are neutral on the variables indicating the accessibility based on the standard deviation of the
respondents which is 2.14655. The customers are neutral on the variables indicating the adaptability based on the standard deviation
of the respondents which is 1.77693. The customers are dissatisfied on the variables indicating the based on the standard deviation
of the respondents which is 1.28456. The customers are satisfied on the variables indicating the efficiency based on the standard
deviation of the respondents which is 2.17263. The customers are satisfied on the variables indicating the ease and convenient
banking based on the standard deviation of the respondents which is 2.23550. The customers are highly satisfied on the variables
indicating the accuracy based on the standard deviation of the respondents which is 3.11301. The customers are satisfied on the
variables indicating the reliability based on the standard deviation of the respondents which is 2.49385. From this it is understood
that the speed of transaction is not very much attractive and reliability is considered to be most effective factor with respect to digital
banking services. The overall use of digital banking services 81.57. The standard deviation is 9.057 where the deviation is consistent.
From the table 2.0 the comparison of P value shows there is no relationship between gender and the corresponding attributes or
factors in term of customer satisfaction therefore null hypothesis is accepted.
5.0 FINDINGS AND SUGGESTIONS
 On speed of transactions, it was revealed that mobile money was the most frequently using digital channel. ATM services
were considered not to be speedy thus was the major area that needed to be addressed by majority of the respondents.

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 On accessibility of digital banking, it was revealed that ability to transact at preferred timing was considered the most
important factor while looking at accessibility. Majority of the respondents believe that accessibility to them is extent to
which a customer or user can obtain a good or service at the time it is needed. With regards to accessibility in using mobile
banking, customers don’t access mobile banking much.
 The bank customers were required to rate the level of efficiency of any digital channel they use. It is incurred that customers
are satisfied with respect to faster log in facility, performance of plastic cards, transfer of funds and clearing services.
 The customers are satisfied with respect to the information and process of transactions are made with accurate details. Also
customers are satisfied with respect to the products and services provided by the bank.
 The effect the bank customers were required to rate the level of reliability of any digital channel they use. it is studied that
customers are satisfied with respect to bill payments, error free transactions, problem solving and service charges.
 On accessibility, it was found that bank customers were aware of what entailed accessibility. The most accessible digital
platform was mobile banking with a feeling that digital banking could be accessed on a moderate extent. Additionally,
having the ability to bank anytime and anywhere and further check balances and access statements could be interpreted as
accessibility. Use of technology was the major barrier towards accessibility as technology was changing very fast without
the bank customers embracing the needed skills to cope with this new phenomenon. The study thus concludes that increase
in accessibility leads to an increase in customer satisfaction.
 On adaptability, it was found that mobile money was the most adaptable digital channel due to the personal touch it offers
to the bank customers. Digital banking was seen as fast and efficient hence adapting to their use was easy. Further from
the customer’s daily transactions, it was concluded that the adaptability to the given digital banking channels was very
high as presented by the daily number of transaction and years that the customers had used digital banking. Bank customers
used different digital banking channels which was an indicator of their adaptability. Most of the digital platforms of
banking used were further reliable however majority of bank customers had failed to adapt to digital banking at one point
in their lives with various reasons given for this failure. Banks try to ensure customers can adapt by passing information
on how to use digital banking lastly the study concludes that there is a significant relationship between adaptability of
digital banking and customer’s satisfaction. With an increase in adaption then customer satisfaction also increases.
 On affordability of digital channels, the study concludes that digital banking channels are affordable. Affordability while
transacting using digital banking is important however there are other considerations to be put in place apart from
affordability. The negative minimal correlation implied that that affordability did not influence on customer’s satisfaction.
It is therefore concluded affordability is not one of the key factors that is looked at while carrying a digital banking
transactions. Customers will transact using any other channel that is fast, accessible and easily adaptable.
 The bank customers were required to rate the level of reliability of any digital channel they use. it is studied that customers
are satisfied with respect to bill payments, error free transactions, problem solving and service charges.

6.0 CONCLUSION
In this research has concluded that accessibility of digital banking is undertaken while considering only persons that are deemed
physically fit in the society. A study needs to be undertaken to determine the influences of accessibility of digital banking amongst
persons living with disabilities. In order to have faster processes in digital banking, there is need by banks to invest more on robust
reliable systems to reduce incidents of failed transactions and transactional errors in ATMs, Mobile banking and POS terminals.
Banks should further automate most services like loan recovery, loan disbursement and introduce queue management systems.
Banks need to come up with an application that can be used to enhance digital banking which will be considered safe and private
in order to boost the operations, availability and accessibility of digital banking. There is further need to facilitate ICT skills so that
technology can be embraced. Through a joined venture with education institutions ICT skills can be impacted through banks
teaching individuals and cooperates on the changing world of banking technologies. There is need to carry out customer satisfaction
surveys to establish how customers are adapting to technology. Suitable techniques should be devised based on what customers
want and not what is convenient for banks. There are many new technology and development came in the business world. The
recent developments are neural networking, zero carbon natural gas, genetic fortune telling, quantum leap, robotics, sensor devices,
business analytics, machine learning, natural Language Process and deep Learning. Therefore, banks are aware of the technology
development as much possible implement the latest technology and create new strategy through them to fulfil the customers need
with fullest services.

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