Vol.04, Issue 02, February 2019, Available Online: www.ajeee.co.in/index.php/AJEEE AN ANALYTICAL REVIEW OF CUSTOMER SATISFACTION WITH INTERNET BANKING
IN INDIA
Abstract:- This paper presents an exhaustive review of literature on the current developments in internet banking. It provides an overview of the changes as well as the ongoing research on internet banking. To identify relevant works, research databases were searched using 11 keywords. Only research papers on internet banking published in the last 15 years (2002–2016) were selected. The selected articles were further refined on the basis of country of origin, journal type, and research methods used for data analysis.
Finally, 51 papers were selected on the basis of specific inclusion criteria for further analysis. These papers were grouped by research themes, and customer satisfaction with internet banking was identified as the most common theme.
Keywords: Adoption; customer satisfaction; e-service quality; internet banking; trust.
1. INTRODUCTION
Globally, the financial services sector has witnessed considerable changes in the last few years. One such significant change is the adoption of self-service technologies (SSTs) by banking organizations to reduce their operational costs (Loonam and O’Loughlin 2008). The use of telecommunication and information technology (IT) in banking began in the 1990s, with some American banks launching their e-banking services as early as 1992 (Sikdar, Kumar, and Makkad 2015). Since then, the emergence of e-banking has revolutionized the banking sector (Yang 2009; Ariff et al.
2013).
Today, banks are being replaced by mobile phones, tablets, and laptops.
Changing socioeconomic trends and advances in SSTs have enabled a vast number of people to access banking services. Customers are willing to pay a price for these services provided that they are assured of convenience and better turnaround time (Pandey, Mehta, and Roy 2017). Customers use online banking services to pay utility bills, check balances, transfer money, download bank statements, and order checkbooks (Yang 2009). Banks have come to resemble
technological achievements in different aspects of internet banking.
Specifically, the objectives of this study are as follows:-
1. Identify and understand the dominant themes of research on internet banking.
2. Determine the variables affecting adoption of, continued use of, and resistance to internet banking.
3. Analyze the antecedents and consequents of customer satisfaction in internet banking.
The rest of the paper is organized as follows. The next section summarizes previous literature reviews on internet banking with an objective to provide continuity to the research. Subsequently, we present the methodology adopted for conducting this review. The findings are described in the discussion section and, finally, we present the conclusions, limitations, and future directions for research.
2. PREVIOUS LITERATURE REVIEWS Seth, Deshmukh, and Vrat (2005) critically analyzed 19 service quality models in their review (1984 to 2003), published in the International Journal of Devadutta Indoria
Assistant Professor in Commerce, V. Dev (Govt) Autonomous College, Jeypore, Dist. Koraput, Odisha
Vol.04, Issue 02, February 2019, Available Online: www.ajeee.co.in/index.php/AJEEE customer satisfaction model (Oh 1999),
the antecedents and mediator model (Dabholkar, David Shepherd, and Thorpe 2000), the internet banking model (Broderick and Vachirapornpuk 2002), and the model of e-service quality (Santos 2003).
Ladhari (2010) reviewed studies on measurement scales developed for e- service quality published between 2001 and 2008. The paper summarized the methodological challenges in developing e-service quality scales (26 research papers), which were related to sampling methods, industries, item generation and purification, data analysis, and scale reliability and validity. The key dimensions of e-service quality were identified as reliability/ fulfillment, ease of use, responsiveness, privacy/security, information quality/ content, and web design.
3. RESEARCH METHODOLOGY
Data collection for the literature review was completed in two phases: primary filtration and classification of articles vis- _a-vis inter-rater reliability.
3.1 Phase 1: Primary filtration
To investigate internet banking from a multidisciplinary perspective, we selected journals from various fields, including marketing, consumer behavior, IT, quality assurance, benchmarking, electronic research, business research, and management systems. International conference papers on advances in SSTs, cloud computing, green banking, etc.
were also considered because conference papers are usually indicators of future research to be published in journals (Awasthi and Sangle 2012, Daulatkar and Sangle 2015). To find relevant articles, we searched nine databases: EBSCO, Emerald, Elsevier, Springer, Google
Scholar, JSTOR, Pro Quest, ScienceDirect, and Taylor & Francis.
Eleven keywords were used as search terms: “internet banking,” “online banking,” “adoption of online banking,”
“e-service quality,” “e-customer satisfaction,” “customer satisfaction in banking,” “self-service technologies (SST),”
“trust in internet banking,” “customer loyalty in internet banking,” “website impact on internet banking,” and “service quality models.” A broad search on internet banking yielded 900 articles. For example, we used the advanced search function in Ebsco using a combination of keywords. This yielded 414 research papers. Dissertations for master’s and doctoral degrees were not considered;
articles published in peer-reviewed journals are considered optimal for research purposes (Awasthi and Sangle 2012).
3.2 Phase 2: Classification of articles vis-_a-vis inter-rater reliability
In the second phase, the selected papers were classified into categories based on their research focus. The articles were grouped on the basis of keywords, abstracts, and the topic of research. To ensure accuracy, a panel of three members, consisting of two academicians and a banking expert, was consulted.
Inter-rater reliability was ensured to arrive at the final classification.
Thus, following this process, the articles were classified into the following 14 categories: customer satisfaction in internet banking, technology acceptance, service quality, e-channels, continued use of SSTs, perceived risk in internet banking, trust in internet banking, customer loyalty, website design quality, green banking, cloud computing, IT governance, customer retention, and switch from credit union to internet banking.
Vol.04, Issue 02, February 2019, Available Online: www.ajeee.co.in/index.php/AJEEE
Figure 1. Year-wise distribution of reviewed publications.
4. FINDINGS FROM THE LITERATURE REVIEW
4.1 Year-wise and numerical analysis We analyzed a total of 51 relevant research publications on internet banking: 41 journal articles, 8 conference proceedings, and 2 publications from well-known universities. The publications spanned 15 years—from 2002 to 2016. A year-wise analysis showed that the maximum number of articles was published in 2014 (Figure 1).
4.2 Analysis based on research objectives
Of the 14 categories of research themes specified earlier, the majority of articles pertained to consumer behavior or marketing. Specifically, 14 studies focused on customer satisfaction with internet banking in different countries.
Further, 13 articles studied service quality, while 7 analyzed technological adoption issues in internet banking. Two papers focused on perceived risk in internet banking. Our analysis showed that trust has been extensively studied as an important factor influencing the adoption and use of internet banking. For instance, Goudarzi et al. (2013)
website usability and its impact on customer loyalty and word of- mouth publicity; Cristobal, Flavi_an, and Guinaliu (2007) examined the relationship between website design and e-service quality; and Al-Qeisi et al. (2014) studied website design quality and usage behavior. Without doubt, internet banking is closely linked to new technologies.
Accordingly, Lin and Hsieh proposed a scale to measure the quality of SSTs in 2011. This scale was applied to internet banking by Radomir and Nistor in 2012. Nasri and Charfeddine (2012) applied the technology acceptance model to internet banking. Nagaraju and Parthiban (2015) examined the development of trust in online banking using the cost-saving technique of public cloud computing. Huang et al. (2011) developed a trust model based on IT governance and Control Objectives for Information and Related Technologies (COBIT) in Taiwan. Once internet banking gained momentum in early 21st century, branch banking shifted its focus from retail banking to internet banking.
Similarly, credit unions switched from branch banking to internet banking.
Katuri and Lam (2007) studied this
Vol.04, Issue 02, February 2019, Available Online: www.ajeee.co.in/index.php/AJEEE
Figure 2. Distribution of research methods.
5. CONCLUSIONS
This study reviewed research articles on internet banking published during a span of 15 years (2002 to 2016). The review adopted a multidisciplinary approach, examining literature on internet banking from various fields such as marketing, finance, IT cyber security, cloud computing, and green e-banking. Broadly, studies on the subject suggest that banks should train and help customers access internet banking services as doing so can generate considerable cost savings for the banks.
Further, because internet banking helps banks overcome the practical difficulties of opening branches in remote areas, it allows them to target new geographical regions without heavy financial investment in physical assets.
Good website design, customization, reliability, and faster and accurate task completion can enhance customer satisfaction levels among internet banking users. Banks should focus on providing privacy and security features to boost customer confidence.
Our review indicates that issues such as cyber security, trust, and website design and their effects on customer satisfaction, customer loyalty, customer retention, IT governance and third-party assurance seals, customer tendency to switch, green e-banking, and cloud computing have not been investigated in depth. These avenues present ample scope for further research.
Although customers’ security and risk concerns have been acknowledged, only one research article by littler and
internet banking can be enhanced by allowing customers to experience “trust”
(Goudarzi et al. 2013; Yu, Balaji, and Wei Khong 2015). Huang et al. (2011) examined the trust model and IT governance and highlighted the importance of third-party assurance seals on the security features provided by online banks. Further research should be undertaken on this topic.
Lekakos, Vlachos, and Koritos (2014) explored green e-banking initiatives— a new research area within the banking domain. Nagaraju and Parthiban (2015) developed a secure cloud-based framework for online banking using multifactor biometric fingerprint authentication. Such research on the use of public clouds by online banks can yield promising results: It can lead to better accessibility and safe banking environments for customers in addition to cost savings for the banks.
Our review showed that the majority of research on internet banking has been conducted in Europe and the United States. There is a dearth of research on the subject in countries such as South Africa, Australia, New Zealand, India, and Japan, which could offer important and useful insights.
6. LIMITATIONS AND FUTURE RESEARCH DIRECTIONS
From a research perspective, such a review period can be seen as highly selective. It is likely that relevant studies published before 2002 have been omitted.
Also, we had limited access to conference proceedings and university publications,
Vol.04, Issue 02, February 2019, Available Online: www.ajeee.co.in/index.php/AJEEE these limitations, however, the
observations contained in this review will be valuable to bankers, researchers, and academicians’ worldwide. Given that marketing has become increasingly digital, it is imperative that future studies explore customers’ perception of banking services, taking into account the influence of new-age media.
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