Understanding Service Quality, Customer Satisfaction and Banking Behaviour from an E-Banking Perspective: An Empirical Approach

Digital innovation is redefining industries and changing the way businesses function. Digitisation and innovative technologies are creating unprecedented disruption in the banking sector. In the conundrum of technological advancements, E-banking has evolved into one of the most critical banking services that, when effectively implemented, may improve customer contentment while also providing banks with a competitive advantage. In this context, the study empirically evaluates the number and types of e-banking services used by customers of different banks and their satisfaction after using the technology-based services based on service quality dimensions like Ease/Convenience of use, reliability, security, responsiveness and personalisation. The study further examines the relationship between customer satisfaction, their behavioural intentions and change in their banking habits on using the e-banking services to gauge its impact on the banking industry. Primary data was collected from 200 respondents across PAN India using a structured questionnaire, explicitly targeting regions where e-banking services are not fully embraced. A random sampling technique was used to gather responses. Data interpretation was made using graphs and tables. Whereas data analysis was performed using statistical tools such as multiple regressions and univariate regressions to determine the impact of e-banking service delivery on the customers' satisfaction with banks. The study exhibited that service quality has a favourable influence on customer satisfaction and that there is a positive association between customer satisfaction and behavioural intention. On the contrary, given data constraints, the study could not empirically establish the relationship between customer satisfaction and banking habits. Thus, we conclude that the relative importance of service quality dimensions can help the banking industry focus on enhancing customer satisfaction and bringing desirable changes in customers' behaviour.