is the dream of Government of India to make India digital. As a part of that
all most all the banks in India have started providing banking services through
Digital Banking channel. Digital Banking channels are the channels providing
banking services other than the bank branches like net-banking, mobile banking,
app-banking, phone banking, ATM, POS etc. Customer satisfaction being the key
factor for sustenance and growth in today’s highly competitive financial
market, it becomes very important to maintain highest level of service
standards. To gauge the level of customer satisfaction in the trading banking
SERVQUAL model was used, however in the era of Digital banking, SERVQUAL model
does not fit. The study aims at identifying the constructs of service quality
for the services provided through Digital Banking and their impact on customer
satisfaction. The study also helps to identify the impact of individual
construct on the overall customer satisfaction which allows the management to
identify the areas for improvement and thereby improve customer service in
order to sustain and grow.




spread and improvements in, Internet-based tools have occasioned the radical
changes in the way of companies’ interactions with their customers (Ibrahim et
al, 2006; Bauer et al., 2005; Parasuraman and Zinkhan 2002).  An internet gateway that facilitates
customers to use various categories of banking services starting from making
bill payment to investments in various financial instruments is called internet
banking (Pikkarainen, Karjaluoto, and Pahnila 2004)


banking means automatic service delivery for various banking products to
customers with the use of or electronic machines or technology or internet at
anytime and anywhere without any direct involvement of Banks’ employees at the
time of delivery of services. Digital Banking is also known as internet banking
or E-Banking or Mobile Banking (m-Banking).


India almost all the banks and many of the financial institutes have welcomed
and accepted the change from physical banking to digital banking.   In today’s highly competitive market digital
banking helps them to align their products with the needs of highly demanding
customer needs and also helps banks to reduce cost of providing services
significantly.  As through Digital
banking customers can avail banking services “Anywhere and anytime services”,
it helps customers in development of their business in this highly competitive
and rapidly changing world.


growth of information technologies in the world has been phenomenal. Thanks to
these technologies, banks are being able to reach their customers anywhere at
any time. Compared to banks abroad, Indian banks offering online services still
have a long way to go. For online banking to reach a critical mass, there has
to be sufficient number of users and the sufficient infrastructure in place.
(Megha Jain,)


has become essential for banks to work towards providing more and more
convenient, efficient and effective customer services by finding out innovative
ways in Digital banking. In order to make customer experience better it is
necessary to find out the customers’ perception for the overall service quality
and the level of their satisfaction with the Digital banking services as on
date. Assessment of customer satisfaction and identification of gaps in service
quality will help banks in align their products and services with the
expectations of customers and distinguish themselves in this highly competitive
and customer oriented market and also help them to retain customers as well as
attract new customers.  



banking sector has been entirely changed over a past few years. The banks are
fronting various challenges and several opportunities stand open for them.
Various technological and financial innovations like Automated Teller Machines,
Credit Cards, RTGS, Debit Cards, mobile banking etc. have wholly transformed
the façade of Indian banking. However yet there is a need of more advanced
solutions in order to answer the challenges and converting opportunities into
business by the banks (Karamjit Kaur, Rajneesh). Usage
of the Internet as a new unconventional network of dissemination of banking and
financial services is no more a way  to
attain competitive advantage, but with the initiation of globalization and  stern competition it has become an unavoidable
necessity (Flavian, Torres, & Guinaliu, 2004; Gan, Clemes, Limsombunchai,
& Weng, 2006).


research studies have been conducted on customer attitude and acceptance of
digital banking and they have revealed that there are various elements
affecting the customer’s approach towards digital banking. Consumer’s attitudes
toward online banking are subjective to their familiarity of computer and new
technology (Laforet and Li 2005). Online banking demands possibly the highest
level of customer involvement, as it necessitates the customer to have access
to technology (a computer and an Internet connection) and be updated  with additional technology regularly (Jane et
al, 2004). Customers must have a certain ease with the technology to keep using
it on continuous basis (Servon, and Kaestner 2008).


and accurate electronic banking operations, accessibility and reliability, good
queue management, service personalization, friendly and responsive customer
service and targeted customer service have been identified as six composite
dimensions of electronic service quality (Ibrahim EE, 2006). So far as online
banking adoption is concerned, security, trust and privacy concerns are being
considered as exceptionally significant from the customers’ point of view (Benamati
and Serva 2007). Perceived usefulness, security and privacy are the deciding
factors to accept online banking (Qureshi, T.M., Zafar, M.K and Khan, M.B,
2008). Elements of perceived ease of use and perceived usefulness have the
positive effect whereas the perceived risk has negative effect on the customer
satisfaction for internet banking users (Ajimon George G.S. Gireesh Kumar,
2013).  Efficiency, website design and
privacy are the fundamental elements of internet banking services and there is
a direct relationship between internet banking service quality and customer satisfaction
in banking industry. (Sadaf Firdaus and Rehela Farooqi 2014)




Globalisation and deregulations have
enabled the financial institutions to expand their reach at a global level and
also made the market highly competitive because entry of global players in the
local markets. In the present scenario it simply not possible to for these
financial institutions to compete based on price and they need to concentrate
more and more on quality of services and improvising the customer satisfaction
levels on ongoing basis. Further, internet based services have changed the face
of banking services. In this context the research aims at,


and Examine the elements influencing satisfaction level of customers for
digital banking services of selected retail banks


of relative significance of identified elements on overall customer
satisfaction of digital banking customers



Collection: The
primary and secondary sources of data collected were adopted in this research

Source: Primary data collected through personally administered questionnaire

Source: Secondary data in this research work were collected through books
journals, magazines, and newspapers, Internet website etc.

collection of data bank branches of 4 Public sector, 4 Private Sector and 3
Foreign banks were selected. Co-operative banks were excluded as they cater to
specific segment of customers and are not much in to Digital Banking


Size: Primary
data collected from 102 bank customers using digital baking for more than 6


Techniques: Sample
selection was done through non-probability convenience sampling method.


Sampling Tool
and Technique:


 ? MS Excel




service quality of digital banking was checked on 7 constructs of DIGITAL
BANKING SERVQUAL namely 1) Applicability, 2) Accessibility, 3) Complexity, 4)
Competence, 5) Assistance, 6) Security and 7) Connectivity.  Figure 1 shows the conceptual framework being
used for this study. It displays the impacts of seven key constructs of quality
of services for Digital Banking services on customer satisfaction.