A Study On The Psychology Of An Indian Customer Towards Digital Banking With Reference To Kachchh Region

Abstract

Background: Digital banking is a result of tremendous changes that are taking place in the field of information technology. It plays an important role in the process of changing a cash-based economy to a digital economy. It includes services like ATM, Mobile banking, Internet banking, UPI (Unified payment interface), Digital wallets, etc. With the help of these services customers as well as banks can perform their tasks faster and in better ways as compared to traditional banking. For customers it’s a door to perform transactions from anywhere at any time whereas for banks it’s a great solution for reducing operational costs. it also helps in achieving environmental goals through reduced usage of paper by providing various banking services online. However, despite of having so many advantages digital banking still has some problems that creates the obstacle in the path of digitization.

Objectives: The objective of this paper is to understand the customer's perception regarding digital banking services as well as the comforts which the user gets while using digital banking services. This research also deals with the everyday obstacles faced by the customers while using digital banking services.

Methods: The study consists of a survey of 500 people of Kachchh district who were using digital banking services. The data was collected using a structured questionnaire which is prepared in hard copy as well as soft copy through Google form for the convenience of people. The analysis of the collected data has been done by using descriptive statistics such as percentages and frequency distribution. The variations of the opinions among various categories are found by applying Mann-Whitney test and Kruskal-Wallis test.

Conclusions: The study found that people are more likely to use digital banking for fund transfer, Mobile/DTH recharge and bill payments. The main reason for using digital banking is to save time, it’s faster services and it’s 24*7 availability. The study concluded that people of Kachchh district face different types of problems and frequency of facing such problems is rare however there are some problems which are often faced by some of the respondents and among them the most often faced problem is unavailability of cash is ATM machine which is the main issue in case of rural areas.