Usage based upon reasons: the case of electronic banking services in India

The purpose of this paper is to determine factors influencing customers’ usage of electronic banking (e-banking) services.

A survey was conducted to collect information from bank customers regarding their perceptions about e-banking services and their demographics. Multiple regression analysis is used to test the hypothesised relationships.

E-banking usage is found to be high for female, more educated, younger, and middle income customers. Among the 11 perceptual variables studied, only six variables, namely: information, performance, self-interest, service quality, satisfaction, and experience are found to be significantly and positively associated with e-banking usage.

This study identifies factors which may be focussed on by bankers during the formulation of their operations and marketing strategies to provide the best e-banking experience to their customers, enabling bankers to augment bank profitability through the strategic use of technologies.

Past studies have seldom examined the combined influence of demographics and other factors on e-banking services usage in the context of developing countries. Most of the earlier studies have considered single service or examined the adoption as only a binary variable.