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A Nonparametric Approach to the Prioritization of Customers’ Online Service Adoption Dimensions in Indian Banks

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Data Engineering and Communication Technology

Part of the book series: Advances in Intelligent Systems and Computing ((AISC,volume 1079))

Abstract

Online banking service adoption depends on the Internet exposure and the customer’s preparedness and individual’s attitude. There may be numerous dimensions that can influence in the adoption of online banking services both Internet and mobile banking. However, it is very much essential to calculate the perception of the customers on what they are expecting from the service adoption. This paper proposes a methodology that prioritizes the parameters related to service adoption for the Indian banking industry grounded on a survey administered on the bank account holders. This paper examines the factors which influence the attitude of the customers in adopting the technologically driven banking modes for their day-to-day transactions. In this study, we have attempted to find the most important factors such as technology, perceived security, regulatory, customer orientation, attitude, perceived benefits and perceived service quality by following an exploratory factor analysis (EFA). The study tried to find the precedence list of factors by using nonparametric approaches such as ridit approach and Kruskal-Wallis method. The findings of the study will give the Indian banks in designing the attitude change strategies for wider adoption of their various online banking applications among their customer base.

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Author information

Authors and Affiliations

  1. Department of Mathematics and Humanities, Mahatma Gandhi Institute of Technology, Hyderabad, Telangana, 500030, India

    Kishor Chandra Sahu & J. Kavita

Authors
  1. Kishor Chandra Sahu
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  2. J. Kavita
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Corresponding author

Correspondence to Kishor Chandra Sahu .

Editor information

Editors and Affiliations

  1. Professor & Head, Department of Computer Science & Engineering, CMR Technical Campus, Hyderabad, India

    K. Srujan Raju

  2. Faculty of Applied Informatics, Tomas Bata University in Zlín, Zlín, Czech Republic

    Roman Senkerik

  3. Stanley College of Engineering and Technology, Hyderabad, Telangana, India

    Satya Prasad Lanka

  4. Department of EEE, Stanley College of Engineering and Technology, Hyderabad, Telangana, India

    V. Rajagopal

Appendix

Appendix

Online service adoption dimensions

Item

Variable

COF1

I need to be instructed on how to use online banking

COF2

Toll free lines are needed for customer service

COF3

I get the latest information about the new products and services offered by the bank through online banking applications

COF4

I believe that my bank educates its customers about the risk of any unauthorized transactions

COF5

I get adequate utility services (like tax, credit card bill payments, insurance premium) through the online banking applications

ATT1

My lifestyle influences me to use online banking

ATT2

I believe that I have control over the transactions conducted using online banking service

ATT3

Recommendations from family and friends motivate me to use online banking

ATT4

I use online banking to manage my bank account

ATT5

I use online banking to transfer

ATT6

I believe online banking improves my payment and task efficiency

PB1

I find online banking easy to use

PB2

Online banking gives me the flexibility to conduct banking transactions 24×7

PB3

I find online banking to be more advantageous than traditional banking

TF1

I get adequate opportunities to try out different banking operations in online banking

TF2

I’m considering to subscribe to a mobile or internet banking service in the near future

TF3

I believe the data transfer speed over the network is an important factor for internet and mobile banking

TF4

I expect the easy navigation of online banking application

PS1

I trust online banking platform to perform transactions

PS2

While performing banking transactions, there is a risk of losing personal information

PS3

I feel online banking is prone to virus attack

PS4

Information related to the banking transactions will not be lost during an online transaction

RF1

My Bank’s basic online banking system utilization fee is reasonable and economic

RF2

The system services, though include inter-bank and intra-bank account transfer fees, does not affect adoption intention

RF3

Inter-bank and intra-bank transaction fee is more advantageous than ATM and over-the-counter transactions

PSQ1

I believe that my bank processes my transactions accurately

PSQ2

I believe that my bank processes my transactions timely

PSQ3

I believe that online banking services provided by my bank are compatible for interbank transactions

PSQ4

The overall quality of online banking service offered by my bank is very important for all my banking needs

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Sahu, K.C., Kavita, J. (2020). A Nonparametric Approach to the Prioritization of Customers’ Online Service Adoption Dimensions in Indian Banks. In: Raju, K.S., Senkerik, R., Lanka, S.P., Rajagopal, V. (eds) Data Engineering and Communication Technology. Advances in Intelligent Systems and Computing, vol 1079. Springer, Singapore. https://doi.org/10.1007/978-981-15-1097-7_18

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