A STUDY ON CUSTOMER SATISFACTION TOWARDS DIGITAL

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A STUDY ON CUSTOMER SATISFACTION

TOWARDS DIGITAL BANKING SERVICES

R.MEENA

Research Scholar

Department of Commerce

St.John’s College of Arts and Science

Affliated to MS University, Tirunelveli

Ammandivilai, Kanniyakumari District

Tamil nadu

Dr.R.RATHIHA

Associate Professor

Department of Commerce

St.John’s College of Arts and Science

Affliated to MS University, Tirunelveli

Ammandivilai, Kanniyakumari District

Tamil Nadu

Abstract

This study is to aims at conducted to evaluate and examine the customer satisfaction towards Digital Banking.

The purpose of this study is also observed and analyses the purpose of using digital banking, reason for banking

digital banking services. We collect data from primary and secondary data collection method. For that we

conduct questionnaire survey by using google form. We collect responds of 200 digital banking user. The study

includes digital banking services in Coimbatore city. For the analyses the data, we have presented by charts

and used percentage method. This study aims to measure the satisfaction levels of users towards the digital

services provided by the bank. The finding of study is established that there is a strong positive relationship

between consumer and digital banking. In some case the consumers are not satisfied with digital banking

services.

Key words: Mobile Banking, Internet Banking, Digital Banking, Customer Satisfaction.

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I Introduction

Banks are not just part of our lives, but have a significant role in our daily lives. Banks always try to

adopt latest technologies to enhance customer experience. Digitalization is not an option for banking industry,

rather it is inevitable. The buzzword in India now a day is creating a cashless economy. The successful

implementation of demonetization, leads the government to implement digital transactions. Digitalization is

the process of converting data into digital format. Digitalization means the adoption of technology. The main

objective of the government of India is make 25 billion digital transactions through multiple facilities.

Digitalization of banking requires platforms like Unified Payment Interface (UPI), Aadhar Pay, Debit Cards

and Immediate Payment Service (IMPS).

Advancement in electronic banking technology has produced innovative means of handling routine

banking transactions. Internet banking is an internet gateway that enables customers to avail different types of

banking services like making bill payments, transferring funds from one account to other, investments in

different financial instruments etc. (Pikkarainen, Karjaluoto, and Pahnila 2004). With the surge in transaction

volumes in the global and local markets the customers have also started adapting and preferring non-

conventional ways of banking (Digital Banking) over traditional banking. An automated delivery of various

banking service products without any direct participation of banks’ employees using either electronic machines

or technology or internet at anytime and anywhere is called Digital Banking.

Digital banking may be viewed as adoption of various existing and emerging technologies by the banks.

In the present scenario, we find ourselves in a digital wonderland, where the milkman accepts wallet payment

without a fuss, a man buys a geometry set worth about Rs. 100 using a credit card and the vegetable vendor

uses QR code based “Scan and Pay” utility. The new innovative digital technologies and futuristic thought

processes have given birth to whole new businesses and social dimensions. Make in India and Digital India is

now the buzzwords to a bright and sustainable industrial and financial progress of our nation. Digital banking

provides solutions to bankers for their short term and long term business and technological requirements. In

the present scenario, factors like enhancing of customer satisfaction, unified customer experiences, faster

output, infinite banking volumes, financial inclusion, operational efficiencies, scale of economy etc. are being

sought by leveraging digital banking technologies. The digital India is the Indian government’s flagship

programme with a vision to convert India into a digitally empowered country. Faceless, paperless, cashless is

requirement of India government. Registration, Invoicing, Payment selection, Payment confirmation are the

important phases of digital payment system. This generally includes three electronic payment instruments like,

cash, cheque and card.

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Digital banking is a new concept in the area of electronic banking. Before the emergence of the concept

of digital banking, electronic banking was being referred to as internet banking or e-banking. There were a few

more indirect banking channels like ATMs, phone-banking, mobile banking etc. However, their aim was to

cover only basic banking service through electronic banking. However, digital banking is very wide concept

and it covers all possible banking service and all alternate banking channels like Automated Teller Machines

(ATM), Point of Sale (POS), Internet Banking, Mobile Banking, Banking through Application, Phone Banking

etc. except branch banking. Digital Banking can also be termed as “Direct Banking Channel”.

Digital Banking is a system which enables banking transactions like transfer of funds, payment of loans

and EMI’s, deposit and withdrawal of cash virtually with the help of internet. It is one among the extended

features which banks provide in addition to the traditional banking. It is the most used feature by the Indian

citizens after the effect of demonetization. There are different types or sectors under digital banking services.

The major services, offered by banks are internet banking, mobile banking, ATM’s, NEFT, PPIs, SMS

Banking, e-cheques, debit and credit cards etc. The first bank in India to offer digital banking was ICICI Bank

in 1996. Since then, a number of other banks have followed this and today most of the banks provide digital

banking services.

II Objective of the study

1. To study on level of awareness towards customers in Digital banking.

2. To identify the level of customer satisfaction by the usage of Digital banking Services.

3. To identify the problems are faced by the customers in Digital banking Services.

Scope of the study

 A Study on customers opinion towards Digital Banking Services with reference selected commercial

banks

 The Commercial Banks Provide various utility Service of Digital Banking facilities to their Customers

 The purpose of this study is to analyze the satisfaction level of customers towards digital banking

services

 The research will cover the customer opinion on digital banking services which will be helpful for

further development and growth of banking industries.

Methodology

Both Primary data and secondary data have been used for data collection. Primary data have been

collected through interview schedule and through observation the secondary data are collected from research

journals, articles, and websites.

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Sampling Design

Research design constitutes the blue print for the collection, measurement and analysis of data. The

present study seeks to identify the extent of customer’s satisfaction towards digital banking. By using

convenient and random sampling method, 200 respondents were considered for the study. For the purpose of

survey, digital banking users from different areas in Coimbatore were consulted.

Sample Size

It indicates the numbers of people to be surveyed. Though samples give more reliable results than small

samples but due to constraint of time and money, the sample size was restricted to 200 respondents. The

respondents belong to different income group and profession.

Statistical Tools used for Data analysis

The statistical tools used are percentage analysis and Garrett Ranking method and 5 point scaling techniques.

III Review of Literature

Ameme B., & Wireko.J (2016) claimed in his research that in today’s competitive world where technology

plays a very important role and if we talk about banking sector industry there is a positive relationship between

technology and customer satisfaction. They also stated that satisfaction of customer is not merely introducing

if the bank wants to become the market leader in the competitive environment it must use the innovation

approach in all the aspects like products and services. Also, there is a significant relationship between

technological innovation and cost. As the innovation increase the cost is also increase.

IV DATA ANALYSIS AND INTERPRETATION

Gender wise Classification

Gender is a range Of Physical, Mental, And Behavioral Characteristics Distinguishing Between Masculinity

and Femininity. It is one of the important determinants which decide about the capacity of the people having

relationship with banks. The Gender-Wise Distribution of the Sample Respondents are given below in Table

1.1

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Table 1.1

Gender-Wise Classification

S.No

Gender

Frequency

Percentage

Male

104

Female

TOTAL

200

100

Source: Primary Data

Figure 1.1 Indicates That The Male Respondents Constitute 52 Per Cent While The Female

Respondents Constitute 48 Per Cent Of The Sample Population. So, It Is Observed That In Most Of The Indian

Families, Males Are The Head Of The Family Who Deals With Financial Transactions Of Their Families And

Hence They Are Exposed To Digital Banking Services

Age wise Classification

Age Is One Of The Decisive Factors That Decide The Nature Of Any Venture. Thus, It Helps To Determine Which Age

Group Customers Are Highly Aware Of Digital Banking Services. The Age Composition Of The Respondents Are Given

In Table 1.2

TABLE 1.2

Age Wise Classification

S.No

Age

Frequency

Percentage

Below 20 Years

43.5

21-25 Years

26-30 Years

Above 31 Years

17.5

Total

200

100

Source: Primary Data

Table 1.2 reveals that 43.5 Percent (87) of the sample respondents are below the age group of 20 years

and 24 Percent (48) are in the age group of above 21-25 years.15 Percent (30) of the Sample Respondent are

in the age group of 26-30 years.17.5 percent (35) of The Sample respondents are the age 31 years. It is inferred

that the youngsters are mostly using Digital Banking Services. Because, they have more knowledge about

technological development.

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Duration of Availing Digital Banking

Duration means the period of time during which something exists. People use particular product or

service for a long time If they are satisfied. In this study duration of using Digital Banking Services is gauged

and presented.

Table 1.3

DURATION OF AVAILING DIGITAL BANKING

S.No

Usage Time

Frequency

Percentage

Less Than 6 Month

6 To 12 Month

13 To 24 Months

Above 24 Months

TOTAL

200

100

Source: Primary Data

Table 1.3 Indicates that Majority of the 30percent (60) of the sample respondents are using digital banking

services less than 6 Months and least (22 percent) of the sample respondents (44) were using Digital Banking

Services from 13 to 24 months.

Problems in Digital Banking Services

Every industry is digitizing, and the banking industry is working hard to cope. Although electronic

banking is becoming more popular today. It is good to know that digital banking services are still facing several

challenges. however, it should not go without mentioning that there are some profitable opportunities in digital

banking. Garrett’s Ranking Technique is used to rank the problems are faced by the respondents While Using

Digital Banking Services and it is presented in the table 1.4

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Table 1.4

Challenges are faced by the Digital Banking Services

S.No

Factor

Total

Innovative

Technology

200

Availability of 24/7

Banking Services

200

Technology

Upgradation

200

Avoid standing in

Queues

200

Cashless transaction

200

Safety And Secure

200

Cash Back/Promo

Coral Offers

200

Source: Primary Data

Rank Given By The Respondents

S.NO

Awareness

Total

Rank

Innovative

Technology

3432

1650

1767

1100

1161

714

630

10454

52.27

Availability of

24/7 Banking

Services

1872

1980

2622

1650

1462

476

399

10461

52.31

Technology

Upgradation

2652

3168

1596

1250

1032

680

1197

11575

57.88

Avoid Standing

in Queues

2184

2442

1767

1750

1118

680

483

10424

52.12

Cashless

Transaction

1716

1188

1254

1950

1720

1394

378

9600

48.0

Safety and

Secure

2574

1386

1539

1450

989

714

966

9618

48.09

Cash

Back/Promo

Coral Offers

2262

2112

1596

1200

1591

989

441

10188

50.94

Source: Primary Data

The Table 1.4 reveals that the Customer’s Problems Towards Digital Banking. In this regard, The

Technology Upgradation has Been ranked First By the Respondents with the Percentage of 57.88, Availability

of 24/7 Banking Services has been ranked second with a percentage of 52.31. Innovative Technology has been

ranked third with a percentage of 52.27. Avoid Standing in Queues has been ranked Fourth with a Percentage

of 52.12. Cash Back/Promo Coral Offers has been ranked Fifth with a percentage of 50.942. Cashless

Transaction has been ranked Sixth with a percentage of 48. Safety And Secure has been ranked Seventh with

a Percentage of 48.09.

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Customer satisfaction

Digital Banking has been on rise even before the pandemic. The percentage of traditional retail bank

customers are using online and mobile channels only. Banks were required to temporarily close many brick -

and – mortar branches with pandemic linked shut down last year, they attempted to shift the majority of offering

to their digital platforms. Consumers reported lower levels satisfaction with them.

Table 1.5

Level of Satisfaction

S.No

Services

Highly

Satisfied

Moderate

Dis

Satisfied

Highly

Dis

Satisfied

Total

Rank

Difficulties in

Implementation of

Global Technology

(480)

(236)

(78)

(24)

(7)

200

(825)

Necessity of

Internet Services

(195)

(392)

(117)

(38)

(5)

200

(747)

Issues of Security

(180)

(252)

(198)

(52)

(9)

200

(691)

Customer Care

Services

(180)

(284)

(138)

(66)

(14)

200

(682)

Security

Precautions

(210)

(256)

(168)

(42)

(17)

200

(693)

Technical

Difficulties

(280)

(188)

(186)

(36)

(17)

200

(707)

III

Source: Primary Data

The Table 1.5 Shows that the level of satisfaction of the sample respondents. It is evident that, The first

rank is given to difficulties in Implementation of Global Technology because it scored 825 Points, The second

rank is given to Necessity of Internet Services scored 747 and Third Rank is given to Issues of Technical

Difficulties 707 points respectively. Fourth Rank is given to Security Precautions 693 Points. Fifth Rank is given

to Issues of Security which scored 691 points. Finally, sixth rank is given to Customer Care Services Scored

682. Hence, it is analyzed that the Customer Satisfaction provided by the Digital Banking Services.

Limitations of the study

Due to constraints of time and resource, the study is likely to suffer from certain limitations. Sum of these is

mentioned here under so that the findings of the study may be understood in a proper perspective.

 The study is related to Commercial banks only. Co-operative& foreign banks are not included.

 The study is related to Coimbatore only.

 The information given by the respondents might be biased because sum of them might not be interested

to give correct information.

 Customer satisfaction focuses only related to banking services. Other are not covered.

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Findings

 Majority (52%) of the male respondents are using digital banking services.

 Majority (43.5) of the respondents are using digital banking services by the age group of 20 years.

 Majority of the (30) percent peoples were using digital banking services by the month of less than 6

months.

 The level of satisfaction of the sample respondents. It is evident that, The first rank is given to

difficulties in Implementation of Global Technology because it scored 825 Points, The second rank is

given to Necessity of Internet Services scored 747 and Third Rank is given to Issues of Technical

Difficulties 707 points respectively. Finally, sixth rank is given to Customer Care Services Scored 682.

 The Customer’s Problems Towards Digital Banking. In this regard, The Technology Upgradation has

been ranked First By the Respondents with the Percentage of 57.88, Availability of 24/7 Banking

Services has been ranked second with a percentage of 52.31. Cashless Transaction has been ranked

Sixth with a percentage of 48. Safety And Secure has been ranked Seventh with a Percentage of 48.09.

Suggestion

 Most of the people satisfied with Internet banking 24/7

 More aware of Net banking services

 Most of users got benefits while using digital banking services Time saving, Inexpensive and Easy

processing

 Most of users felt prefer Good service, Easy transfer and Good security prefer while choosing Digital

Banking Services.

Conclusion

This study attempted to identify key quality attributes of internet banking services by analyzing internet

banking customers and their comments on banking experience. The finding of this study shows that despite of

many advantages of online banking. People still consider it as an alternative for analyzing their bank records.

Although every bank today provides the facility of online banking but most of people use it only once a month.

The reason is that in case of internet banking interpersonal interaction with customers is seldom possible. The

Banks have to upgrade and constantly think of New Innovative Customized Packages and Services to remain

competitive. Proper training should be given to customer by the bank employees to open an account will be

beneficial secondly the website should user friendly, so that the Customers can easily access to their accounts,

this will retain the customer to use Digital Banking Services.

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