Customers’ Satisfaction with Service Quality of Internet Banking

Advent and adoption of internet by the industries has removed the constraint of time, distance and communication making globe truly a small village. Financial sector being no exception, numerous factors such as competitive cost, customer service, increase in education and income level of customers etc. influence banks to evaluate their technology and assess their electronic commerce and internet banking strategies. Internet banking provides speedier, faster and reliable services to the customers. This study aims to evaluate the service quality of Internet banking from customers’ perspective. This paper is divided into two sections. First section presents the introduction of internet banking, status of internet banking in India, through the literature available in the field. It also includes the review of the various services provided by the banks under the study. Second section presents the results obtained on the basis of the data collected. A structured questionnaire containing 26 quality items is administered to various target groups. Various statistical tools like factor analysis and ANOVA are used accordingly to compile the result. The result shows that customers are more satisfied with quality of service on reliability than the services like accessibility, user-friendliness, security and responsiveness. The study not only prioritises different parameters but also provide guidelines to bankers to focus on the parameters which they need to improve. The study concludes that these factors are the core service quality dimensions for customers’ satisfaction in internet banking.