Impact of Internet Banking on the Customer Satisfaction: Evidence from the Indian Banking Sector

Abstract

Internet Banking is about using the infrastructure for digital age to create opportunities, both in local & global market. IT enables the considerable lowering of transaction cost and the creation of new types of banking opportunities that address the obstacles of time and distance. Banking opportunities are local, global and immediate in internet banking. Internet banking is an online payment system that enables customers of a bank or other financial institutions to conduct a range of financial transactions through websites of financial institutions. Internet banking has many advantages over other traditional banking delivery methods. Internet banking provides banks with an increased customer base, cost savings, mass customization, product innovations, improved marketing, and communication, the ability to develop non-core businesses, and the ability to offer services regardless of geography and time constraints, viewing account balances, recent transactions, ordering cheque books and many more. With the development of new technology, Internet banking is expected to become a major banking method for customers. Internet banking reduces costs by providing customers with another means of accessing their accounts without physically visiting a bank. The main purpose of this study is to analyze various online facilities provided by major public and private banks in India and to measure their impact on customers in terms of customer satisfaction.