Banking Users’ Adoption Of E-Banking Services In Bihar

Purpose: To explore the demand and adoption of e-banking services in Bihar Demand/Methodology/Approach: The survey was conducted for 2 months using questionnaire made with four point Likert scale options with ten attributes tested. Every third bank customer that visited commercial banks to deal with any transactions is selected for the survey. Around 324 respondents were surveyed. The Demographic variables influence the usage of e-banking; the relationships between various demographic variables are tested with one-way analysis of variance (ANOVA). A reliability analysis is carried out to check for the underlying dimension of the success factors generated through factor analysis. Findings: Results indicate about the adoption of e-banking services in Bihar. Privacy and security are the major point of dissatisfaction of customers which have significantly impacted users’, for the time being customers are satisfied with the network availability and access to account. Rural areas are in much concern than the urban areas in terms of trust issues, lack of information and also the service availability. Lack of literacy rate is also the major reason for dissatisfaction in the adoption of e-banking services in rural areas. This paper also indicates the adoption rate of e-banking services with respect to different segmentation of income level, age group, education level. The results are expected to provide a concrete contribution in the area of retail banking and in understanding consumer behaviour in the state of Bihar using banking services.