Digitalization of banking activities in the E-COMMERCE market: new opportunities for the development of the credit and financial sector at the present stage

Innovation and technological advancements are transforming every sector of the economy, and studying their impact on the banking sector is highly relevant in the context of digitalisation. The rapid evolution of technologies has led to major changes in the way banking services are delivered, reshaping the expectations and behaviour of both customers and financial institutions. One of the most notable innovations emerging from technological advances is digital banking services. The purpose of this article was to examine the concept of digital banking services by analysing their history, types, benefits and challenges, and to contribute to the academic literature by providing a comprehensive overview of how they are transforming the modern banking environment. To achieve the set goals, qualitative analysis, generalisation, and systematisation methods were used. This study revealed that applying the latest innovative technologies to traditional banking services digitises and automates them, improves their accessibility, makes them more convenient for customers, increases transparency and efficiency, and reduces costs for both banks and customers. However, in addition to their countless benefits, digital services also come with many challenges, such as privacy, security, and technical issues. The study highlighted the importance of banks and financial institutions addressing these challenges, as failure to do so could undermine trust in digital systems. Furthermore, regulatory bodies should take measures on digital services to ensure financial stability, avoid illegal activities, protect customers and banks from security issues, and prevent unwanted risks and problems for the whole financial sector. The demographic analysis part of the study explored the number of digital banking users worldwide and the factors influencing their adoption of digital services. The findings of this study can be used as a guide by banks and financial institutions in implementing innovative technologies.

The Covid-19 pandemic has created an opportunity for Vietnam to digitalize economy faster in many industries, especially banking service. Hence, this research paper aims to discovery the main determinants affecting the digital banking service adoption of Vietnamese people during the Covid-19 time. Conducting an online survey with 513 respondents during the social distancing period owing to the 4th wave of corona virus spreading in Vietnam, the researchers analyze the role of Covid-19 as a reason to create a dilemma situation pushing people to choose digital banking services to keep them be safe in the pandemic. Basing on the theory of consumer behavior models, the study indicates five determinants which influence the adoption of digital banking services in Vietnam in the context of Covid-19 spreading, as follow: banking service safety, online shopping preference, recommendation, bank marketing and acceptant of perceived risk. Basing on the results of data analyzation, the affection of banking service safety and online shopping preference contributes significantly to the rise of digital banking service adoption during the corona pandemic. And to be avoiding to the threat of covid-19 infected, people surveyed intend to accept the risk caused by digital banking services. These findings can contribute to understanding consumer behavior under the affection of situation (such as disaster or pandemic) comprehensively, help Vietnamese banks to build stronger strategies to enlarge their digital banking service market shares.KeywordsDigital bankingDigital banking serviceCovid-19 pandemic

Extensive use of technology in the banking sector has redefined the role of a modern banker and banks are not mere purveyors of credit but providers of a number of hi-tech services at the doorsteps of customers anytime, anywhere, and anyhow. The banking industry is currently witnessing healthy competition to adopt new technology. With the advent of Information Technology and its massive application in banking, the delivery of banking services has become more electronic and online. The demand for internet banking (IB) is necessitated by the growing e-commerce transactions and the paradigm shift in banking led by technology. From the perspective of both users and providers‘, IB is cost-effective, quick, and convenient. IB as a medium of delivering banking services is gaining acceptance from customers and is fast catching up in India particularly in Kerala with almost all the banks offering IB services to their customers. Customers are realizing the comfort of accessing banking services from home and as a result, a number of bank customers have already adopted IB or are on the threshold of adopting it. At the same time, we cannot ignore the various kinds of risks hidden in the IB services. Not only the technological factor but also the social, demographic, and even geographical factors also influence us for being digital. As a result of the currency demonetization from 8th November 2016, the demand for digital banking services has been increased. This is mainly because of the unexpected financial crisis that emerged due to currency demonetization. So it led to a new digital revolution in the field of the banking industry. Comparing to conventional banking services digital banking will provide a different experience to its customers. As a result of currency demonetization, many of the consumers were forced to adopt digital banking services. Hence this descriptive study is trying to reveal the great risk perceived by the banking customers in the banking services and the wild adoption of digital banking as a result of currency demonetization by taking samples from state bank of India and Kerala Gramin bank customers. This study sheds light on different aspects of consumers’ perceived risk to analyze the influence of total perceived risk and consumers’ willingness to embrace innovation on digital banking services adoption.

By incorporating the trust variable as a mediator in the relationship between perceived ease of use and perceived usefulness of using digital banking services on intention to use digital banking services and location—research in the special region of Yogyakarta—this study aims to analyze banking customers’ tendencies to use digital banking services using the technology acceptance model (TAM) theoretical approach. This research’s type and source of data is quantitative with primary data. Questionnaires were distributed as part of a survey procedure to collect data for this study. Using sample data from 208 respondents and the structural equation model (SEM) analysis tool, he concluded that while users’ perceptions of the usefulness and ease of use of digital banking services have no bearing on each other, their perceptions of the ease of use of these services has a significant impact on their trust in them. It has a significant impact on user trust in digital banking services, which in turn has a significant impact on users’ intention to use digital banking services; perceived ease of use of digital banking services has no significant impact on users’ intention to use digital banking services; on the other hand, perceived usefulness of digital banking services has a significant impact on users’ intention to use digital banking services; trust in digital banking services mediates the relationship between users’ intention to use digital banking services and perceived ease of use of digital banking services. Keywords: perceived ease of use, perceived usefulness, trust, intention to use, digital bank

Many businesses, including the banking sector, have been impacted by the spread of digital technology to change their business plans, procedures, goods, and services to better serve their clients and enhance their operations. Most crucially, because digital technology platforms enable new business models, traditional product and service creation are no longer necessary. Additionally, the institution is creating operational strategies through digital transformation to help it successfully compete and adjust to the new working environment. Customers currently access financial products and services through automated teller machines, internet banking, and mobile banking. Employing the quantitative research approach, this study seeks to analyze the nexus between perceived usefulness, perceived self-efficacy, perceived ease of use and continuance usage intention towards digital banking services. Empirically, the Smart PLS approach was utilized to examine the relationship between the antecedents (perceived self-efficacy and perceived ease of use) and continuance usage intention towards digital banking service, through the intervening impact of perceived usefulness. 487 data points were collected from customers across the various regions in Ghana. The results suggest that perceived self-efficacy and perceived ease of use have a favourable impact on continuance usage intention towards digital banking services. Most importantly, perceived usefulness emerged as a favourable mediator on the perceived self-efficacy - continuance usage intention relationship as well as perceived ease of use – continuance usage intention affiliation. This study is not only providing beneficial theoretical implications for digital transformation research and the enhancement of continuance usage intention towards digital banking services. It also creates an awareness of the contribution of perceived self-efficacy and perceived ease of use towards digital banking services continuance as well as providing guidelines on the need to concentrate on investing in digital technologies within the banking sector. Further, the survey helps organizations reconsider their digital expertise when designing digital banking service platforms.

We examine how external pressures and technological adoption impact environmental sustainability performance (ESP) in Chinese banks. Using the Stimulus-Organism-Response (SOR) framework and Institutional Theory, we explore how industry and stakeholder pressures drive the adoption of artificial intelligence (AI) and digital banking services, and how these technologies influence sustainability outcomes. Data were collected from Chinese bank employees via the WJX online platform. The analysis employs partial least squares-structural equation modeling (PLS-SEM) to examine direct and indirect effects, along with necessary condition analysis (NCA) to assess necessary conditions for achieving ESP. Our findings confirm that both industry and stakeholder pressures significantly promote AI adoption and digital banking services. Notably, AI adoption exerts a stronger influence on ESP compared to digital banking services. Our results confirm that AI adoption mediates the link between external pressures and sustainability outcomes, while digital banking services only mediate the relationship between industry pressure and ESP. The NCA findings further identify industry pressure and AI adoption as necessary conditions for improving ESP. This study contributes to the engineering management literature by integrating external pressures, AI adoption, and sustainability in the banking sector and provides practical insights for policymakers and bank managers to enhance their environmental sustainability strategies.

In the contemporary banking environment, digital banking has fundamentally transformed the traditional banking structure. Customers increasingly seek alternatives that eliminate the need for physical visits to bank branches for executing financial transactions. Digital banking has redefined conventional banking operations by introducing innovative dimensions to service delivery. The term “digital banking” refers to the execution of banking activities through electronic communication channels and online platforms. It not only enhances customer convenience but also significantly reduces paper usage, particularly in services such as demand drafts, pay slips, and cheque leaves. As a result, customers can access standard banking services anytime and anywhere, 24×7 throughout the year, without visiting a bank branch.Digital banking offers a wide range of products and services, including POS terminals, internet and mobile banking, electronic fund transfers, bill payments, e-wallets, e-cheques, and UPI-based payment mechanisms. A review of existing literature reveals a research gap concerning new digital banking services and their impact on customer satisfaction, with special reference to Thiruvarur District. Hence, the present study plays a crucial role in addressing this gap.The study is based on primary data collected through a structured questionnaire using the purposive sampling method to assess customer satisfaction among private sector bank account holders in Thiruvarur District. Based on various sources, five new digital banking services—namely Digital Chatbots, Digital Wallets, Digital Card Management, Digital Payment Applications, and Digital Insurance—were identified as commonly used services and were considered for measuring customer satisfaction. The collected data were analyzed using correlation and regression techniques with the help of SPSS (Version 20). The findings reveal that new digital banking services have a significant and positive impact on customer satisfaction. Since each of these services is positively associated with customer satisfaction, the study provides empirical evidence that new digital banking services are a vital component in enhancing customer satisfaction. By incorporating the most recent digital banking services, this research offers valuable academic insights and contributes to the development of a contemporary research model in the field of digital banking.

The number of users of digital banking services has grown in recent decade, since digital banking services are being done easier, faster and at lower cost than banking services performed in a traditional face-to-face manner. Banks should work on enhancing their digital services according to their demand and conveniently improve customer experience especially for unbanked younger generations. The aim of this paper is to reveal student’s perception of digital banking services in Serbia. Research has been conducted via empirical survey in the form of an online questionnaire, with the descriptive statistics applied. The results showed diverse pattern of digital banking engagement with the largest proportion of students specifying that they use DBS at least once per week. When they did use banking services, most often they used them for money transfer and paying bills, emphasizing the vital role of digital platforms in facilitating financial transactions. Overall students’ satisfaction with DBS is on the high level, and students appreciate technologies development of banking offerings. The results of this research could be used by banks to reveal students’ perception on digital banking service, and to help them create adequate digital services and pivot their business models in that direction.

E-Banking is being grownup speedily in Bangladesh. The recent exceptional advancement in data technology and smartphones’ convenience has brought important changes in banks’ services in Bangladesh. Notably, banks are presently competitory to supply complete banking services via smartphones or through on-line platforms. Such digital banking services cut back long queues within the bank’s counter to withdraw cash/ to deposit cash to their accounts. However, very little is thought concerning security and customers’ feedback concerning such services, that is investigated during this paper. a lot of significantly, this paper tried to look at E-banking’s current standing, potential future opportunities, and challenges, notably in Bangladesh. To serve our functions, we have a tendency to interviewed one hundred fifty folks directly connected with such digital banking services, as well as bankers, users, and alternative people. Our study finds many barriers in E-banking service channels, as well as technological breakdown, infrastructural limitations, temporal arrangement problems, legal risks and name risks, etc. Our analysis conjointly finds that customers are not equally pleased with digital services, and that they demanded to scale back the extent of uncertainty related to digital banking services.

PurposeIn this paper, the authors investigated the impact of quality digital banking services delivered during the COVID-19 pandemic on customers' satisfaction and retention intentions.Design/methodology/approachThis study combined constructs drawn from the E-S-QUAL and BSQ models to measure the impact of digital banking services on subscribers of digital banking services in Ghana. The study utilized structural equation modeling with partial least squares (PLS-SEM) to analyze 395 responses.FindingsResults revealed a significant direct effect between digital banking services satisfaction and customer retention decision. The results also revealed that digital banking services quality dimensions such as ease of use, efficiency, privacy/security and reliability impact customers' satisfaction and retention intentions.Research limitations/implicationsDigital banking service portfolios and their quality dimensions vary among banks. This offers an opportunity for banking institutions and other non-bank financial service providers to be wary of the impact of quality service delivery on customers' decisions. This paper makes significant theoretical contributions and practical implications on the relevance of quality digital banking services in customers' retention strategies for competitive advantage.Originality/valueThis study has underlined the significance of quality digital banking services in developing countries. The study underscored the need for banking and non-bank financial institutions to embrace the much-anticipated quality service demanded by customers and the need for continuous service improvement relative to the growing deployment of financial technologies.

Advancements in technology and emerging digital trends are driving the expectations of bank clients. With the development of new, innovative technologies, the banking sector has started creating new products and services and looking for new channels through which to offer those services in a way that meets customers’ uplifted expectations. The aim of this paper is to explore several aspects of digital banking services, analyze user expectations, evaluate risks, and gauge how customers’ expectations and perceived risks affect their satisfaction with these services. For that purpose, an empirical survey was conducted using an online questionnaire, obtaining 535 valid responses. This research showed that bank clients identified digital banking services as the most important factor when choosing a bank. Furthermore, the results of the study revealed which perceived characteristics and expectations of digital banking services create the highest levels of customer satisfaction in using digital banking services, and what types of perceived risks of using digital banking services should be mitigated.

As the digitalization of financial services increases, it is the customers who benefit, and the banks have more capacity to enhance the experience and digital satisfaction of their target customers. The paper focuses on an important issue of the Vietnamese banking system. It is the process of digital transformation through applying leading fintechs to their core banking platform. Therefore, the main objective of this research is to explore the possible relationship between customer satisfaction with digital banking services and the other observed variables due to the theory of SERVQUAL. This study reaffirms and adds to the measurement scale system of customer satisfaction concepts while experiencing digital banking services. This helps researchers in the banking sector of Vietnam and around the world have a scale to conduct their researches on customer satisfaction. The author also uses quantitative analysis for a random sample survey within the banking network of Northern region of Vietnam (290 samples in total). Descriptive analysis, reliability analysis of scale, exploratory factor analysis, or multiple regression analysis all provide better perspectives on the relationship between customer satisfaction and the digital services that banks are offering. The major findings of the study involve the fact that focusing on minimizing response time to customers' inquiries and individualizing services to each one of them are the things that the digital banks in Vietnam need to do beforehand. To conclude, the roles of tangibles and responsiveness in the digital banking services can only be examined much more thoroughly in the upcoming researches while this one cannot.

In the growing importance of personalized digital services in the banking sector, the integration of personal data through customer data platforms (CDPs) has become a strategic priority. This study explores how personal data privacy influences perceived personalization and operational efficiency in digital banking services, while also investigating the moderating role of local culture. The research is motivated by increasing consumer demands for both personalized services and greater control over personal data. Personal data privacy was conceptualized as a multidimensional construct comprising knowledge, experience, control, willingness to value privacy, and trust. A quantitative method using partial least squares structural equation modeling (PLS-SEM) with 10,000 bootstrapping resamples was employed. The analysis was conducted using SmartPLS version 4.1.1.4, which enables efficient estimation of complex models. Data were collected offline from 200 respondents who are active users of digital banking services from Himbara member banks. The results indicate that personal data privacy has a significant positive effect on both perceived personalization and operational efficiency. Among its dimensions, willingness to value privacy emerged as the most influential. Local culture was found to significantly moderate both relationships, suggesting that cultural context plays a critical role in shaping digital service outcomes. These findings contribute to theory and practice by highlighting the importance of integrating privacy protection and cultural sensitivity in the design of personalized digital banking services.

In the current context, digital banking has completely revolutionized the banking structure as it was before. Now customers are searching for an alternative where they do not need to visit banks to execute their financial transactions. The old banking model has been altered by digital banking, which has given the banking sector new dimensions. The phrase "digital banking" means all the banking activities that are done with the help of electronic communication channels, i.e., online platforms. It not only makes things easier for the clients but also eliminates the use of paper, especially for making demand drafts, pay slips, and cheque leaves. Now, customers can have access to all standard banking activities without physically visiting a bank branch 24x7 for 365 days. Digital banking provides numerous kinds of products and services such as pos terminals, internet and mobile banking, e-transfer of funds, bill payments, e-wallets, e-cheques, UPI payment mechanism etc. Based on the previous review of literature it has been identified that there is no research related to new digital banking services and its impact on customer satisfaction with special reference to Coimbatore city has been done. Therefore, this study has been plays a crucial role in filling up this gap. The data is collected through purposive sampling method; a structured questionnaire was used to conduct a primary survey of customers' satisfaction. Based on the different sources five new digital banking services i.e., Digital Chatbot, Digital Wallet, Digital Card management, Digital Payment application and Digital Insurance commonly used by private sector banks account holders has been identified, which leads to measure the customer satisfaction. Collected Data was analyzed using correlation and regression technique using SPSS (20) software. The findings implicated that new digital banking services have a significant and positive impact on the customer satisfaction. Since each of these is positively associated to the customer satisfaction, the research provides empirical evidence to indicate that new digital banking services are a significant component in satisfying customers. The most recent digital banking services were included in this study, which has given academic insight into a fresh research model.

The banking industry serves as the backbone of any country’s modern economy. So, country’s economic development is mainly based on the banking sector growth. The developments in information technology field positively impact the banking sector’s growth. The main aim of this study is to identify the factors that positively influence the customers to use digital banking services. Based on convenient sampling technique, 120 sample respondents were interviewed in the western zone of TamilNadu (Coimbatore, Namakkal). Factor analysis has been applied to identify the factors that influence the customers to use digital banking services. Some of the factors like actual use of digital banking services, attitude, perceived security, perceived price highly influenced the customers to use digital banking services.