Research paper on internet banking in india

Internet banking: a review (2002–2016)

Demographic profile of the respondents. Table 2. Frequency of internet banking usage. Table 3. Descriptive statistics of variables.

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Table 4. The dimensionality of the e-service quality of internet banking scale obtained through exploratory factor analysis was examined using confirmatory factor analysis. Confirmatory factor analysis CFA was conducted to examine whether the measurement items of e-service quality of internet banking loaded by the pattern revealed in the exploratory factor analysis. The CFA, also known as the measurement model, is used to assess the overall validity of. Table 5. Factor loadings. Using CFA, the measurement model is assessed for unidimensionality, reliability, and validity.

The measurement model consists of three factors: responsiveness, efficiency and perceived credibility. These factors are measured using 14 measurement items indicators , which are derived from the exploratory factor analysis. The model fit-indices are presented in Table 6. The root-mean-square residual RMR represents the square root of the difference between the residuals of the sample covariance matrix and the hypothesized covariance model.

The RMR value Table 6 is 0. The CFI value obtained is 0. Table 6. The model fit indices in Table 6 exceeded the common acceptance level of the fit statistics. Hence, it is confirmed that the measurement model adequately fit the data and established the three-factor structure of the e-service quality of internet banking. After establishing the fit of the measurement model, the next step is to assess the unidimensionality of the three factors and establish the reliability and validity of a three-factor e-service quality of internet banking model.

The factors constructs having unidimensionality with the measurement items load significantly on the underlying constructs. The unidimensionality is thus established [64]. The reliability of the e-service quality dimensions is assessed by computing the composite reliability CR of each of the latent constructs factors.

The recommended value for the composite reliability coefficient is above 0.

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The composite reliability obtained for the three factors of e-service quality, namely, responsiveness, efficiency, and perceived credibility are 0. The average variance extracted AVE is a complementary measure to the composite reliability, reflecting the overall amount of variance in the indicators accounted for by the latent construct [54]. The AVE value of a construct should exceed 0.

The validity of the measurement model is established by estimating the convergent validity and discriminant validity. The convergent validity of the measurement model is estimated using the composite reliability of each construct and. Table 7. Confirmatory factor analysis CFA results of e-service quality of internet banking.

From the Table 7 , it is found that the composite reliability of all three constructs was above the recommended value of 0. The convergent validity is there by established for the three-factor structure of e-service quality of internet banking. The discriminant validity can be assessed by comparing the shared variance between the constructs and the average variance extracted from the individual constructs [65]. The CFA results reveal that the shared variance between the factors was lower than the average variance extracted from the individual factors.

The discriminant validity is thus established. The e-service quality of internet banking is perceived to be an antecedent of customer satisfaction with internet banking. This study identified the e-service quality dimensions of internet banking comprising of responsiveness, efficiency and perceived credibility.

Multiple regression analysis is performed to test the relationship between e-service quality dimensions and customer satisfaction with internet banking. The result is presented in the following table Table 8. The R 2 value is 0. Table 8. Multiple regression analysis with customer satisfaction with internet banking as dependent variable.

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The responsiveness dimension has the highest impact on customer satisfaction since the standardized beta coefficient of responsiveness shown in Table 8 has the highest value, followed by efficiency and perceived credibility. The internet banking quality dimensions that emerged from the current study did not factor out the original dimensions adopted by [25] , except for the perceived credibility dimension.

Three new factors resulted from the research data analyzed in the present study. The results confirm that responsiveness, efficiency and perceived credibility are distinct dimensions of service quality in internet banking in India. These dimensions are consistent with the past e-service quality dimensions [12] [24] [32] and also consistent with past internet banking e-service quality studies [2] [25] [28] [29] [35] [36] [41].

The study also found that there is a positive relationship exists between e-service quality dimensions and customer satisfaction with internet banking. This result is consistent with prior research that explored the relationship between e-service quality and customer satisfaction [27] [28] [31] [34] [42].

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The proposed model is evaluated using SEM and found to be consistent with an acceptable degree of model fitness. Further, these issues should also be compatible with the existing laws, particularly the Information Technology Act, Thus by following the above steps, the Indian bankers can pave the way for the successful introduction and popularizing the new concept of Internet banking on a large scale. Customers were satisfied with e-banking due to its cashless nature, cash accessibility, saves time from bank visitation and seamless transactions. Internet banking is a cost-effective delivery channel for the modernized financial institutions.

All three dimensions have a significant positive impact on customer satisfaction. The three dimensions together explained Among the dimensions, responsiveness has the most substantial impact, followed by efficiency and perceived credibility. Internet banking customers ranked responsiveness as the highest since customers interact with the bank in an online environment, where they are exposed to many fraudulent activities. Customers expect their banks to handle such situations and get prompt customer service during banking hours, as well as post-transactions. This finding implies that banks should improve the service quality of internet banking with a secured website, easy to follow instructions, user-friendly interface and prompt response to the customers.

Perceived credibility dimension is ranked as the third, by Indian banking customers who show the confidence they feel about their bank about internet banking. The improvement in service quality comprising of responsiveness, efficiency and perceived credibility automatically leads to customer satisfaction with internet banking services, which gives competitive advantages to the banks. In the online environment, the customer expects an accurate response and personalized attention during and following internet banking transactions.

It is imperative to give accurate, friendly and helpful customer service to internet banking users. The banking operations carried through internet banking might vary for individual customers, depending on their needs. Internet banking at present primarily facilitates traditional banking operations. Banks need to provide more comprehensive range of services through internet banking to attract more customers to use internet banking. The internet banking website plays a crucial role in measuring the service quality of electronic banking.

The visual layout and the up-to-date information provided at the website plays a significant role in the quality of electronic banking. Banks need to understand the importance of a good website for the success of internet banking and need to concentrate on the technical functionalities of an e-banking website. Moreover, it is significant for the banks to strengthen the security measures of internet banking continuously. It is also crucial for banks to pay more attention to consumer education and consistently inform customers about security measures and policies about internet banking operations.

The findings of this study are crucial for India as well as for other Asian countries. India is at present moving towards demonetization and a cashless economy. Internet banking was optional for customers before demonetization, but the Government of India is now insisting that every bank link customer account to internet banking in order to be able to offer government services and other subsidies.

The service quality dimensions identified in this study were the most important factors identified by the Indian banking customers. Moreover, the survey respondents were from all parts of India, rather than a specified city or state. To sum up, these respondents represents both rural and urban population of India. As a result, these findings can be used by banks to improve the service quality of their internet banking service and thereby to satisfy their customers.

These findings are distinct compared with other studies, which concentrated on certain cities of India [66] and this study can be used as a guiding force for the digital payment industry after demonetization. The objective of this study was to identify the critical dimensions of the e-service quality of internet banking as perceived by Indian banking customers and their satisfaction with internet banking.

The study found a three-factor solution to the e-service quality of internet banking. The results suggest that responsiveness, efficiency and perceived credibility significantly influenced overall service quality.

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The most significant predictor identified is responsiveness. The study also established a positive relationship between e-service quality dimensions and customer satisfaction. The findings provide practical information useful for improving the service quality of internet banking. It remains to highlight the limitations of the present study and their implications for future research.

Another limitation is that there is a possibility that it has not captured all e-service quality dimensions. Future research can explore otherservice quality dimensions and their applicability toother technology-enabled banking services. Another potential future research area would be measuring the automated service quality and satisfaction of the self-service technologies offered by the banks. The authors declare no conflicts of interest regarding the publication of this paper.

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Organizational Research Methods, 1, Journal of Applied Psychology, 88, Journal of Financial Services Marketing, 13, International Journal of Mobile Communications, 5, Journal of Marketing Research, 18, International Journal of Bank Marketing, 33, Share This Article:. The paper is not in the journal.

Go Back HomePage. DOI: Sindhu Singh. Affiliation s K. Introduction The Internet and wireless technologies have revolutionized the entire world and transformed business. Literature Review 2.

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E-Service Quality Electronic service quality plays a crucial role in attracting and retaining customers in the business to consumer B2C e-commerce environment. E-Service Quality of Internet Banking Internet banking is one of the narrowly defined e-services in the virtual environment. Hypotheses Development Relationship with E-Service Quality and Customer Satisfaction Existing studies have found that there is a positive relationship between service quality and satisfaction [12] [46] [47] [48] [49] [50].

Hence, the following hypothesis is proposed: H1: Internet banking service quality has a positive influence on customer satisfaction with internet banking. Research Methodology This study uses a cross-sectional design, which involved the collection of information from the sample only once. Findings The demographic profile of the respondents Table 1 includes gender, age, education, profession, and income.

A Comparative Study on E–Banking Services at Bangalore City

Transformation is taking in Indian banks from altering the face of banking. The research paper focuses on the way transformation is affecting the banking sector . E-banking is the most pioneering trend among the customers in the present era This particular paper endeavors to explore the sundry online .. To study the challenges faced by Indian banks in adoption of technology and.

Conflicts of Interest The authors declare no conflicts of interest regarding the publication of this paper. Cite this paper Singh, S. Theoretical Economics Letters , 9 , References [ 1 ] Internetworldstats. Please enable JavaScript to view the comments powered by Disqus. TEL Subscription. E-Mail Alert. TEL Most popular papers. History Issue. Frequently Asked Questions. Recommend to Peers. Recommend to Library.

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