Page 1 of 9
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 04
April 2019
Available online: https://ejbss.org/ P a g e | 55
Analysis of Customer Satisfaction on Online Banking:
A Case Study of Nalanda District of Bihar
Mr. Barun Kumar Jha, Research Scholar, Dept. of Commerce, University of Delhi
Dr. Ashish Kr. Dubey, Associate Professor, LLDIMS, GGSIPU
Abstract:
Banking plays a remarkable role in the Indian Economy not only in independent India but since
the Vedic period. Remarkable performance has been noticed during the Pre Independence, Post
Independence, Post Nationalized period and in the recent times too. In recent years, the banking
industry around the world has been undergoing a rapid transformation. The deepening of
information technology has facilitated better tracking and fulfillment of commitments, multiple
delivery channels for online customers and faster resolution of issues. In India too, the wave of
deregulation in the early 1990s has created heightened competition and greater risks for banks
and financial intermediaries. The success & failure of banking sector like any other service
sector organization depends upon the customer satisfaction of the services. Today, customers
expect highest quality services from banks which, if fulfilled, could result in significantly
improved customer satisfaction levels. This empirical research study mainly focuses on problems
faced by customers in availing the internet banking services and to find out the satisfaction level
of customers with the uses of internet banking services.
Key Words: E- Banking, Online Banking, Financial Services
Page 2 of 9
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 04
April 2019
Available online: https://ejbss.org/ P a g e | 56
Introduction:
Technology has succeeded in making various aspects of life easier for the societies of today
(Rust & Oliver, 1994). More importantly, it has become a fundamental element in improving the
quality of services in general and E-Banking services in particular (Joseph & Stone, 2003). E- Banking service is said to rely on the exchange of information between customers and providers
using technological methods devoid of face-to-face interaction (Darwish & Lakhtaria, 2011).
Today’s world is one with increasing online access to services. One part of this which is growing
rapidly is online banking. Combined with online retailers there is a lot of money changing hands,
directed only by communication over the internet. This is very convenient and the ready access
to the internet in all first-world countries, coupled with the cost savings from closing bank
branches, is driving the deployment and adoption of these services. Purely online transactions,
however, lead to increased risk. None of the normal safeguards of realworld transactions are
present. Conversely, risk to the criminals is a lot lower (the attacker can be in a completely
separate jurisdiction from all the other parties in the transaction) and the retailer sees nothing but
a faceless, nameless connection providing card details. Banks have traditionally been in the
forefront of harnessing technology to improve their products, services and efficiency. They have,
over a long time, been using electronic and telecommunication networks for delivering a wide
range of value added products and services. Penalty due to non-payment of bill is not new to
anyone of us. And quite obviously, who likes the long procedure of writing a cheque, standing in
a long queue and then ensuring that the particular amount is available in your bank account?
Indian banks are trying to make our life easier. Not just bill payment, we can make investments,
shop or buy tickets and plan a holiday at your fingertips.
Review of Literature:
Page 3 of 9
European Journal of Business &
Social Sciences
Available at https://ejbss.org/
ISSN: 2235-767X
Volume 07 Issue 04
April 2019
Available online: https://ejbss.org/ P a g e | 57
V. Raja, Joe A. (2012), “Global e-banking scenario and challenges in banking system”, This
paper is an attempt to explore the various levels of internet banking services provided by banks
using the secondary data. It also compares the traditional banking systems with net banking. It
lists out the various advantages of internet banking and the successful security measures adopted
by different banks for secured banking transactions. It also analyzes how E-banking can be
useful for banking industry during this global financial meltdown.
Mas I., (2011), “Capturing the Potential of M-Payments for the „Unbanked”, This article
discusses the potential of using mobile phones to greatly increase access to financial services in
developing countries, and reviews the main success factors in a mobile banking project.
Alain Y. C., Keng B. O., Binshan L., Boon I. T., (2010) "Online banking adoption: an empirical
analysis" showed that perceived usefulness, trust and government support all positively
associated with the intention to use online banking in Vietnam. Contrary to the technology
acceptance model, perceived ease of use was found to be not significant in this study.
Khan M. S., Mahapatra S. S., (2009), “Service quality evaluation in internet banking: an
empirical study in India” Demographic analysis of data reveals that gender is hardly a bias for
use and evaluation of service quality of i-banking in most of the cases across various categories
of customers. A valid mathematical model is proposed to assess the overall service quality using
regression analysis. The results show that customers are satisfied with quality of service on four
dimensions such as reliability, accessibility, privacy/security, responsiveness and fulfilment, but
least satisfied with the 'user-friendliness' dimension. The empirical findings not only prioritise
different parameters but also provide guidelines to bankers to focus on the parameters on which
they need to improve.
Avinandan M., Prithwiraj N., (2003) "A model of trust in online relationship banking", observed
that shared value is most critical to developing trust as well as relationship commitment.
Communication has a moderate influence on trust, while opportunistic behaviour has significant
negative effect. Also finds higher perceived trust to enhance significantly customers‘
commitment in online banking transaction. An important contribution concerns how trust is
