A Study on Perception of Customers towards Online Banking Services Provided by Banks

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Sarishma Sharma1 and Avneet Kaur2 (School of Business Studies, Punjab Agricultural University, Punjab1 and Chandigarh Group of Colleges, Jhanjeri, Mohali, Punjab2)

This research was carried out to study the perception of customers towards online banking services. There are several dynamics affecting the perception of customers towards online banking services. In this study, those factors as well as hurdles faced while using online banking services were studied in detail. The data was collected from 100 respondents with the help of a structured questionnaire. Statistical techniques such as correlation analysis and factor analysis were used for analysing the data. Clustering was done to identify the respondents belonging to various clusters. The results point out that educational qualification and income does not significantly affect online banking intensity. It was also observed that the main purpose of using online banking services was for viewing transaction details, transferring money and checking account balance. The main hurdles while banking online includes the absence of touch and feel, fear of cybercrimes and anticipated fear of impairing with the important information. Factor analysis revealed that there are five factors which are recognised by customers while using online banking services. These are accessibility from home, website related issues, time and cost related issues, lack of personal touch and feel and quality of service. Out of these factors, accessibility from home, website related issues and quality of service significantly affects the satisfaction level of customers towards internet banking services.