An Empirical Investigation on Users' and Non-Users' Perceptions about E-Banking Services in Coimbatore City

Information and communication technology incorporation has entirely changed banking system in worldwide. These changes have been pioneered in India by the new private sector and foreign banks with the aim of creating themselves an opportunity to reach out to a wider customer base, considering their...

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Bibliographic Details
Published inJournal of economic & management perspectives Vol. 11; no. 2; pp. 160 - 170
Main Authors Malarvizhi, V, Geetha, K T
Format Journal Article
LanguageEnglish
Published Mersin International Economic Society 01.06.2017
Subjects
Bank failures
Bank marketing
Banking industry
Banks
Computer science
Customer services
Electronic banking
Hypotheses
Internet access
Mobile commerce
Public sector
Quality of service
Technology Acceptance Model
Coimbatore India
India
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Summary:Information and communication technology incorporation has entirely changed banking system in worldwide. These changes have been pioneered in India by the new private sector and foreign banks with the aim of creating themselves an opportunity to reach out to a wider customer base, considering their limited number of branches. However, the public sector and the old private sector banks which followed traditional banking methods until a few years ago have also realized the benefits that could be reaped through the introduction of technology in their day-to-day operations. Thrust on the usage of Informatiomn Technology (IT) in the financial sector in India was heralded by the report of Rangarajan Committee on Mechanization in Banks in 1984. A system that satisfies users' needs will also boost satisfaction with e-banking, which can be accepted as an indicator of the system's successful operation (Pikkarainen et al., 2004). To improve the efficacy of e-banking services, it is important to study the reasons why people decide to use or not to use the e-banking system. This study throws light on the socio-economic and banking profile of users and non-users of e-banking services, analyzes the factors that influence customers' decisions to use or not to use e-banking services, and suggests strategies to enhance e-banking services and banking performance on the basis of the empirical findings. The data collected from 600 customers selected by adopting purposive sampling technique revealed that users differ significantly from non-users in their perceptions about the service quality of e-banking. Results show that if appropriate measures are taken by banks, technology-enabled banking self-services have the potential to revolutionize the way customers do banking.
ISSN:2523-5338
2523-5338