Digital Banking in Northern India: The Risks on Customer Satisfaction

The widespread use of digital technologies and the current pandemic (COVID) have fueled the need and call for digital transformation in the banking sector. Although this has various benefits, it is a disruption to the norm to which a bank customer has to become accustomed. This variance means that c...

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Autores principales:	Balijinder Kaur, Sood Kiran, Simon Grima, Ramona Rupeika-Apoga
Formato:	article
Lenguaje:	EN
Publicado:	MDPI AG 2021
Materias:	digital banking customer satisfaction SERVQUAL model risk management service quality digital transformation Insurance HG8011-9999
Acceso en línea:	https://doaj.org/article/43599bf2986d4c418209bbc9af123b59
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spelling	oai:doaj.org-article:43599bf2986d4c418209bbc9af123b592021-11-25T18:56:15ZDigital Banking in Northern India: The Risks on Customer Satisfaction10.3390/risks91102092227-9091https://doaj.org/article/43599bf2986d4c418209bbc9af123b592021-11-01T00:00:00Zhttps://www.mdpi.com/2227-9091/9/11/209https://doaj.org/toc/2227-9091The widespread use of digital technologies and the current pandemic (COVID) have fueled the need and call for digital transformation in the banking sector. Although this has various benefits, it is a disruption to the norm to which a bank customer has to become accustomed. This variance means that customers would have to make some changes to their routine. This can constitute risks in terms of maintaining customer satisfaction at previous levels. These risks are associated with customer retention because a service or product needs to be aligned with customer expectations to avoid them switching to other service providers. Moreover, it can also have an effect on reputation. Offering digital account opening or remote deposits may not satisfy customers; competitive advantage depends on many aspects such as providing a hassle-free, personalized and cyber-secure experience, economic aspects and the needs of the society at large. Therefore, there is a need to understand the intensity of the risk factors that influence customer satisfaction for digitalized banking services and products. To do this, we carried out a structured survey, framed on the five dimensions of the SERVQUAL model, which was sent out to Northern Indian banking customers, to which we received 222 valid responses. We subjected the data received to Structural Equation Modelling using the SmartPLS version 3 application software. Results reveal that digital banking customers in Northern India are genuinely satisfied with the quality of services provided by digital banking. Moreover, ‘reliability’ has the strongest risk factor impact on customer satisfaction, followed by ‘tangibility’ and ‘responsiveness’.Balijinder KaurSood KiranSimon GrimaRamona Rupeika-ApogaMDPI AGarticledigital bankingcustomer satisfactionSERVQUAL modelrisk managementservice qualitydigital transformationInsuranceHG8011-9999ENRisks, Vol 9, Iss 209, p 209 (2021)
institution	DOAJ
collection	DOAJ
language	EN
topic	digital banking customer satisfaction SERVQUAL model risk management service quality digital transformation Insurance HG8011-9999
spellingShingle	digital banking customer satisfaction SERVQUAL model risk management service quality digital transformation Insurance HG8011-9999 Balijinder Kaur Sood Kiran Simon Grima Ramona Rupeika-Apoga Digital Banking in Northern India: The Risks on Customer Satisfaction
description	The widespread use of digital technologies and the current pandemic (COVID) have fueled the need and call for digital transformation in the banking sector. Although this has various benefits, it is a disruption to the norm to which a bank customer has to become accustomed. This variance means that customers would have to make some changes to their routine. This can constitute risks in terms of maintaining customer satisfaction at previous levels. These risks are associated with customer retention because a service or product needs to be aligned with customer expectations to avoid them switching to other service providers. Moreover, it can also have an effect on reputation. Offering digital account opening or remote deposits may not satisfy customers; competitive advantage depends on many aspects such as providing a hassle-free, personalized and cyber-secure experience, economic aspects and the needs of the society at large. Therefore, there is a need to understand the intensity of the risk factors that influence customer satisfaction for digitalized banking services and products. To do this, we carried out a structured survey, framed on the five dimensions of the SERVQUAL model, which was sent out to Northern Indian banking customers, to which we received 222 valid responses. We subjected the data received to Structural Equation Modelling using the SmartPLS version 3 application software. Results reveal that digital banking customers in Northern India are genuinely satisfied with the quality of services provided by digital banking. Moreover, ‘reliability’ has the strongest risk factor impact on customer satisfaction, followed by ‘tangibility’ and ‘responsiveness’.
format	article
author	Balijinder Kaur Sood Kiran Simon Grima Ramona Rupeika-Apoga
author_facet	Balijinder Kaur Sood Kiran Simon Grima Ramona Rupeika-Apoga
author_sort	Balijinder Kaur
title	Digital Banking in Northern India: The Risks on Customer Satisfaction
title_short	Digital Banking in Northern India: The Risks on Customer Satisfaction
title_full	Digital Banking in Northern India: The Risks on Customer Satisfaction
title_fullStr	Digital Banking in Northern India: The Risks on Customer Satisfaction
title_full_unstemmed	Digital Banking in Northern India: The Risks on Customer Satisfaction
title_sort	digital banking in northern india: the risks on customer satisfaction
publisher	MDPI AG
publishDate	2021
url	https://doaj.org/article/43599bf2986d4c418209bbc9af123b59
work_keys_str_mv	AT balijinderkaur digitalbankinginnorthernindiatherisksoncustomersatisfaction AT soodkiran digitalbankinginnorthernindiatherisksoncustomersatisfaction AT simongrima digitalbankinginnorthernindiatherisksoncustomersatisfaction AT ramonarupeikaapoga digitalbankinginnorthernindiatherisksoncustomersatisfaction
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Digital Banking in Northern India: The Risks on Customer Satisfaction

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