Digital Shift in Banking: A Quantitative Study of Consumer Preferences for Mobile and Traditional Banking in India

Abstract

This paper analyses the customer preferences, determinants of customer satisfaction, their intentions of using mobile and conventional banking and their perceived risks on mobile banking and traditional banking in the Indian context. With the help of a quantitative research design, the data were gathered with the help of the banking customers and were analysed with the help of the reliability tests, correlation and regression analysis. The results show that the majority of customers would like to use a hybrid banking system, a combination of mobile and traditional services. Service quality and convenience are distinguished as the most powerful customer satisfaction predictors, whereas trust does not have much impact and perceived security is not the same among user groups. Satisfaction to customers is identified to have a significant impact on repeat intentions to use it, especially in users of mobile banking. Nonetheless, in certain instances, perceived security issues have a negative influence on the usage intentions, indicating sensitivity to risk in the adoption of digital banking. The analysis finds that banking conduct in India is shifting to a performance based and mixed model where digital efficiency and quality of the service is more important than the traditional factors of trust. The results give guidance to banks to improve the digital service delivery and customer experience.