Variations Between Physical Banking and Internet Banking Usage amid COVID-19 Pandemic

Abstract

The usage of banking functions through Internet is comfortable and time saving process, since the usage rates of different banking functions through Internet banking mechanism are very low. The present study aims to evaluate the variations between physical banking and internet banking and explores the problems faced by banking customers in using internet banking amid the COVID-19 pandemic. The primary data for the present study were collected from banking customers, who were identified on a random basis from three different areas of the Union Territory of Jammu and Kashmir. The total sample size was 1,200, comprising a breakup of 400 for each of the sampling areas of central Kashmir, south Kashmir and north Kashmir. Internet banking adoption is changing the physical usage of non-financial products and financial products worldwide. Today, a click of the mouse and mobile banking offer a lot of transactions regarding electronic non-financial products and electronic financial products. Still, the adoption rates of these products are very low. The present study has examined the situation of electronic banking adoption amid the COVID-19 pandemic, and hence, it is found that maximum number of customers are non-users of electronic non-financial products and electronic financial products. Amid the pandemic, the reason for non-usage of technology banking by a majority of customers was lack of awareness, technological barriers and security concerns. They also used physical banking activities and did not follow social distancing as suggested by the Government of India during March 2020. Therefore, it is the basic responsibility of the banking industry to motivate their customers and address their concerns regarding the usage of electronic non-financial products and electronic financial products, as the maximum number of banking customers are non-users of electronic non-financial products and electronic financial products. If the banking industry will address the concerns of banking customers regarding the usage of technology banking, then only a country like India with a huge population can have technological banking and environment-friendly banking and can face situations like the COVID-19 pandemic in future.