Measuring E-Service Quality and Customer Satisfaction with Internet Banking in India

The objective of this study is to measure the e-service quality of internet banking and the relationship with customer satisfaction in India. This study aims to explore the critical factors of e-service quality of internet banking in India and to measure the customers’ satisfaction of internet banking on the identified e-service quality dimensions. A survey method was carried out to acquire data from 650 respondents from India. Exploratory and confirmatory factor analysis was used to identify the dimensions of internet banking. Multiple Regression Analysis was used to test the relationship with e-service quality dimensions and customer satisfaction of internet banking. The study uncovered three factors of e-service quality, namely, “Responsiveness,” “Efficiency,” and “Perceived Credibility”. “Responsiveness” found to be the most significant predictor of the e-service quality of internet banking. The study also found that there is a positive relationship exists between e-service quality dimensions and customer satisfaction of internet banking. These findings can be used by banks to improve the service quality of their internet banking service and thereby to satisfy their customers. The findings open up many business opportunities to India as well as other Asian countries. The digital payments industry can concentrate on improving the security of the payment systems, gateways, and payment networks. Advanced technologies can be developed to improve the digital payment systems which offer many business opportunities for creating computers, smartphones, and innovation in internet and security software. The study findings can be used by banks to improve the service quality of internet banking and attract more customers towards using this service. The improvement in service quality comprising of responsiveness, efficiency, and perceived credibility automatically leads to the customer satisfaction of internet banking services, which gives competitive advantages to the banks. This study is an attempt to cover both urban and rural population of India to understand the digital mindset by studying the quality perception of internet banking channel.