Exploration of Reliability and Security of E- Banking: Selected Urban Cooperative banks

Abstract

The rise of E-banking has introduced unprecedented convenience and accessibility for users, transforming traditional banking operations into efficient online experiences. However, this shift brings challenges, particularly in terms of security and reliability, as users now expect robust protections for their financial data and consistent, dependable service. This study investigates the perceptions of security and reliability in digital banking among 290 urban cooperative banking customers. Using factor analysis, we explore key dimensions of e-banking services, focusing on elements like encryption, biometric security, and trust in transaction reliability. The analysis identified two primary factors: security and reliability, each with distinct contributions to overall user satisfaction. The factor loadings revealed that users had mixed confidence in encryption technologies and data privacy measures, with some expressing high levels of satisfaction, while others indicated significant concerns. Additionally, reliability emerged as a critical factor, with findings indicating that a notable portion of customers were dissatisfied with the timeliness and trustworthiness of e-banking services. For data collection, a structured survey measured responses on a five-point Likert scale, assessing variables such as trustworthiness, encryption effectiveness, privacy maintenance, and personal security practices. Through the use of descriptive and factor analysis, we quantified customer sentiments and identified patterns in user satisfaction. The results suggest that while there is moderate confidence in digital banking security, the reliability of service delivery remains an area for improvement. Banks should consider addressing these findings by enhancing transparency in their security protocols and strengthening service consistency to better meet user expectations in digital banking environments.