Skip to main content

Issues and Challenges of Digital Banking System

  • Conference paper
  • First Online:
Proceedings of Second International Conference on Intelligent System (ICIS 2023)

Part of the book series: Algorithms for Intelligent Systems ((AIS))

Included in the following conference series:

  • 57 Accesses


The evolution of digital banking, significantly propelled by recent technological advancements and the COVID-19 pandemic, marks a transformative era in the financial sector. This paper delves into the ways digital innovations such as AI, big data, and cloud computing are revolutionizing banking by enhancing efficiency, security, and accessibility, thereby fostering financial inclusion and economic reform. It navigates through various challenges including security risks, service availability, customer support, and regulatory compliance, while also examining the integration and impact of emerging technologies. A comparative analysis of the adoption and challenges of digital banking in both developed and developing economies is presented, with a focus on the effectiveness of multiple criteria decision-making (MCDM) techniques in refining banking services. The findings offer crucial insights for banking sector managers and policymakers, highlighting the importance of adaptive strategies for the secure and inclusive growth of digital banking in a constantly evolving global landscape.

This is a preview of subscription content, log in via an institution to check access.

Access this chapter

Institutional subscriptions


  1. Alam, M.J., Jesmin, F., Faruk, M., Nur-Al-Ahad, M.: Development of E-banking in Bangladesh: a survey study. Financ. Mark. Inst. Risks 5(2), 42–51 (2021).

  2. Alkhowaiter, W.A.: Digital payment and banking adoption research in Gulf countries: a systematic literature review. Int. J. Inf. Manag. 53, 102102 (2020).

  3. Asbaş, C., Tuzlukaya, Ş.: Cyberattack and cyberwarfare strategies for businesses. In: Conflict Management in Digital Business, pp. 303–328. Emerald Publishing Limited (2022)

    Google Scholar 

  4. Aziz, K.A., Jabar, M.A., Abdullah, S., Nor, R.N.H.: Challenges from the disastrous COVID-19 pandemic: exposure to opportunities for branchless banking in Malaysia. Bull. Electr. Eng. Inform. 11(4), 2339–2347 (2022).

  5. Chauhan, S., Akhtar, A., Gupta, A.: Customer experience in digital banking: a review and future research directions. Int. J. Qual. Serv. Sci. 14(2), 311–348 (2022)

    Google Scholar 

  6. Cheng, L.C., Sharmayne, L.R.: Analysing digital banking reviews using text mining. In: Proceedings of the 2020 IEEE/ACM International Conference on Advances in Social Networks Analysis and Mining, ASONAM 2020, pp. 914–918 (2020).

  7. Choi, Y.: Digital Banks: Lessons from Korea. World Bank Group, 2. (2020)

  8. Dimitrova, I., Öhman, P., Yazdanfar, D.: Barriers to bank customers’ intention to fully adopt digital payment methods. Int. J. Qual. Serv. Sci. 14(5), 16–36 (2022)

    Google Scholar 

  9. Egala, S.B., Boateng, D., Mensah, S.A.: To leave or retain? An interplay between quality digital banking services and customer satisfaction. Int. J. Bank Mark. 39(7), 1420–1445 (2021)

    Article  Google Scholar 

  10. Gautam, K.P., Sharma, D.: Fintech and digital transformation in the era of industry 5.0: where does Bhutan stand? Asian J. Econ. Financ. Manag. 7(3), 21–27 (2022).

  11. Gerrard, P., Barton Cunningham, J.: The diffusion of Internet banking among Singapore consumers. Int. J. Bank Mark. 21(1), 16–28 (2003).

    Article  Google Scholar 

  12. Hussein, A.S., Sumiati, S., Hapsari, R., Abu Bakar, J.: Bank 4.0 experiential quality and customer loyalty: a serial mediating role of customer trust and engagement. TQM J. (2022)

    Google Scholar 

  13. Iwashita, N.: Why fintech is not changing Japanese banking. Asian Econ. Policy Rev. 17(2), 297–310 (2022).

    Article  Google Scholar 

  14. Jhuremalani, A., Potter, R., Lushington, K., Lowies, B.: COVID-19: financial well-being of older Australians in times of crisis. Australas. J. Ageing 41(3), 440–447 (2022).

    Article  Google Scholar 

  15. Jünger, M., Mietzner, M.: Banking goes digital: the adoption of FinTech services by German households. Finance Res. Lett. 34 (2020).

  16. Kaur, N.: FinTech Evolution to Revolution in India—From Minicorns to Soonicorns to Unicorns, pp. 1–6 (2021)

    Google Scholar 

  17. Kazmi, S.S.A., Hashim, M.: E-banking in Pakistan: issues and challenges. Int. J. Acad. Res. Bus. Soc. Sci. 5(3), 50–54 (2015).

    Article  Google Scholar 

  18. Khatoon, S., Zhengliang, X., Hussain, H.: The mediating effect of customer satisfaction on the relationship between electronic banking service quality and customer purchase intention: evidence from the Qatar banking sector. SAGE Open 10(2) (2020).

  19. Larsson, A., Viitaoja, Y.: Building customer loyalty in digital banking: a study of bank staff’s perspectives on the challenges of digital CRM and loyalty. Int. J. Bank Mark. 35(6), 858–877 (2017)

    Article  Google Scholar 

  20. Lee, E.: Digital financial inclusion: observations and insights from Hong Kong’s virtual banks. Law Contemp. Probl. 84(1), 95–113 (2021)

    MathSciNet  Google Scholar 

  21. Mahapatra, P., Singh, S.K.: Artificial intelligence and machine learning: discovering new ways of doing banking business. In: Artificial Intelligence and Machine Learning in Business Management, pp. 53–80. CRC Press (2021)

    Google Scholar 

  22. Maharjan, M.: System architecture for social security cash transfer through branchless banking in Nepal, pp. 60–64 (2015)

    Google Scholar 

  23. Mastran, S.: Opportunities and challenges of online banking in Nepal. The Batuk 7(2), 37–51 (2021).

    Article  Google Scholar 

  24. Mbama, C.I., Ezepue, P., Alboul, L., Beer, M.: Digital banking, customer experience and financial performance: UK bank managers’ perceptions. J. Res. Interact. Mark. 12(4), 432–451 (2018)

    Google Scholar 

  25. Mir, R.A., Rameez, R., Tahir, N.: Measuring Internet banking service quality: an empirical evidence. TQM J. 35(2), 492–518 (2022)

    Article  Google Scholar 

  26. Pio, P.G., Sigahi, T., Rampasso, I.S., Satolo, E.G., Serafim, M.P., Quelhas, O.L., Filho, W.L., Anholon, R.: Complaint management: comparison between traditional and digital banks and the benefits of using management systems for improvement. Int. J. Product. Perform. Manag. (2023)

    Google Scholar 

  27. Pham, T.T.: What is the future of the bank branch in the midst of the 4.0 industrial revolution? Answers from Vietnam. (2022)

  28. Rahman, A., Abedin, M.J.: The Fourth Industrial Revolution and private commercial banks: the good, bad and ugly. Int. J. Organ. Anal. 29(5), 1287–1301 (2021)

    Article  Google Scholar 

  29. Rathnaweera, L., Karunasena, A.: Influencial factors of adopting digital banking by users in western province of Sri Lanka, pp. 132–137 (n.d.)

    Google Scholar 

  30. Rathnayake, N.D.N.B.: The era of the transition—from traditional to digital banking. In: Transformation for Sustainable Business and Management Practices: Exploring the Spectrum of Industry 5.0, pp. 41–55. Emerald Publishing Limited (2023)

    Google Scholar 

  31. Rod, M., Ashill, N.J., Shao, J., Carruthers, J.: An examination of the relationship between service quality dimensions, overall internet banking service quality and customer satisfaction: a New Zealand study. Mark. Intell. Plan. 27(1), 103–126 (2009).

    Article  Google Scholar 

  32. Santos, A.A.D., Ponchio, M.C.: Functional, psychological and emotional barriers and the resistance to the use of digital banking services. Innov. Manag. Rev. 18(3), 331–348 (2021)

    Article  Google Scholar 

  33. Sarel, D., Marmorstein, H.: Marketing online banking services: the voice of the customer. J. Financ. Serv. Mark. 8, 106–118 (2003)

    Article  Google Scholar 

  34. Tn, N., Shailendra Kulkarni, M.: Zero click attacks—a new cyber threat for the e-banking sector. J. Financ. Crime (2022)

    Google Scholar 

Download references

Author information

Authors and Affiliations


Corresponding author

Correspondence to Sarita Kumari Singh .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and permissions

Copyright information

© 2024 The Author(s), under exclusive license to Springer Nature Singapore Pte Ltd.

About this paper

Check for updates. Verify currency and authenticity via CrossMark

Cite this paper

Singh, S.K., Pattnaik, P.K., Samanta, S. (2024). Issues and Challenges of Digital Banking System. In: Tavares, J.M.R.S., Pal, S., Gerogiannis, V.C., Hung, B.T. (eds) Proceedings of Second International Conference on Intelligent System. ICIS 2023. Algorithms for Intelligent Systems. Springer, Singapore.

Download citation

Publish with us

Policies and ethics