Impact of Internet Banking Service Quality on Customer Satisfaction

Purpose: To add to the existing knowledge in the electronic banking field of study. To help the banks and policy makers have a better understanding of the internet banking dimensions and their contributions towards customer satisfaction. Especially since not much research has been done in this regard in India which has become the hub of e-banking development after the recent demonetization by the present government, enabling people to go cashless and enhance a digi economy. Design/Methodology/Approach: An exploratory survey with the help of a Likert based questionnaire was conducted to investigate the impact of Internet Banking service quality on customer satisfaction in New Delhi. Judgmental and convenience sampling was used and various kinds of internet banking customers were approached in New Delhi. Data were collected from a sample of 194 internet banking customers. Findings: The result implicated that the internet banking service quality dimensions have a significant impact on the customer satisfaction of internet banking customers. Each of the dimension namely efficiency, system availability, fulfillment, privacy, contact, responsiveness and contact individually contribute 70% to the overall customer satisfaction in internet banking. Originality/value: The paper provides empirical evidence to show that the internet banking service quality dimensions area an important factor to satisfy the customers since each of them is positively related to customer satisfaction. This paper has extended the e-service quality model of eS-qual-eRec-Squal by zeithaml et al. to the banking sector to cater to its needs according to its demands and requirements. Research limitations: The research has contributed to an understanding of the importance of various dimensions that internet banking service quality comprises of and how the impact customer satisfaction. The paper lays a foundation to future research which must not be limited to one geographical area of India but should take into study the other areas where internet banking is widely being adopted given the new economy scenario of India. Practical implications: The research will help the managers of the banks and the policy makers to focus on these factors that tend to have a dominating impact on satisfying the customers. This will result in a better internet banking service quality provided by the banks and that in turn will help retain the existing customers and also gaining the new ones.