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E-Banking and Its Effects on Customers

Author: Berfin Gedlaç

Date of Publication: 07/12/2022

As known, not so long ago people had to go to bank offices to deal with typical financial needs. This is because there was no alternative way to do so. Unfortunately, this caused long queues and long transaction processes. But with developed technology, banks are now on our smartphones. Thanks to E-Banking, nowadays, banking operations are easy to reach and fast to do transactions. At this point, technology improves service quality and increases productivity while reducing the cost of banking operations. On this basis, we can say that E-Banking strengthens the banking sector.

Sectoral View

Since we all believe that e-Banking has a good impact on the banking sector, can we also say that customers are now happy? Of course, there is still room for improvement. Technology is still evolving. When we think about how it got into the banking sector, we can see 4 points clearly:

1. Internet Banking

It’s the fastest developing area in this list. Transactions take place through the internet itself. In addition, electronic devices have a big role in this one.

2. Automatic teller machine (ATM)

These started the E-Banking industry. Finland is the first country to embrace this idea. Thanks to this modern machine, customers can have access to money and do transactions 24/7.

3. Smart Cards

It is still an inspiring thing for a piece of plastic to have all your information and money in it. That way, you can carry money without having cash and use it anytime, anywhere.

4. Electronic Fund Transfer

This simplifies the transactions between accounts. In fact, it can be done at a bank office too but, electronics make it easier.

Literature Survey

From a technological perspective, things look good. However, what we should focus on is the customers' perspective. There are several parameters when it comes to interactions of this technology with people. For example, Ranaweera and Neely (2003) and Asiyanbi and Ishola (2018) support that only the quality of e-Service is the main step of customers' satisfaction. Similarly, Jain and Gupta(2004) suggest that receiving a better and higher quality of service is the most important thing for customers' satisfaction. Meanwhile, Zhou (2004) states that the E-Banking service quality related to reliability has a significant effect on customers' satisfaction. Also, for Parasuraman, Zeithaml, and Berry (1985), speed in performing E-Banking services is an important factor in customers' satisfaction.

Transactions with high importance can be made by the banks, to ensure full security for the customers.

So far, it worked as it can. Nevertheless, there are some suggestions that can work out better for the industry. As an example of that, transactions with high importance can be made by the banks, to ensure full security for the customers. Moreover, youth and especially the elders can be educated about the dissemination of e-Banking and security. Last, banks can provide detailed literature about e-Banking products and services to facilitate the process. Therefore, we can admit that technology helps the banking sector to increase customers' satisfaction. So, thanks to the evolving world, it can go further.


Reference List:

  1. "IMPACT OF E-BANKING ON CUSTOMER SATISFACTION” by Amith Kumar Reddy, Dr. Megharaja (2021).

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