The IUP Journal of Bank Management
Understanding the Drivers of E-Banking Adoption for Enhanced Customer Engagement

Article Details
Pub. Date : Aug, 2023
Product Name : The IUP Journal of Bank Management
Product Type : Article
Product Code : IJBM020823
Author Name : Supreet Sandhu
Availability : YES
Subject/Domain : Finance
Download Format : PDF Format
No. of Pages : 22



Financial technology (fintech) has seen significant growth and development in recent years. In the banking sector, understanding the interaction between customers and technology is critical for effective implementation of e-banking services. Given its low usage, the present study intends to investigate the factors important for enhancing e-banking services. Differences in the perceptions of two groups of customers-heavy users and light users of e-banking services-are also examined. The study employed survey method to collect data from bank customers in India. The results of discriminant analysis showed that only 'performance expectancy', 'information content', and 'selfinterest' are significant differentiators of heavy and light users of e-banking services. The findings reveal that factors for initial adoption or behavioral intentions are different from continual use post adoption of e-banking services. So, the banks, while formulating strategies and restructuring their operations, should focus more on performance, information, and entertainment to elicit more users and their usage. These factors would enhance customer engagement in e-banking, increase its usage and earn returns to banks. Policymakers can also design their economic programs and channelize public resources accordingly to achieve a cashless economy.


Service technologies have radically reordered the competitive environments, consumer dynamics and operational opportunities in many industries. The success and effectiveness of these technologies depend upon the way these are implemented or adopted (Berger, 2003). Understanding the interaction between people and technology is critical for the effective implementation of technology-driven programs initiated by businesses as well as policymakers. These interactions involve both rational and emotional factors (Dadayan and Ferro, 2005). Technology has become deeply integrated into every aspect of banking operations, from front-end services to back-end processes. It has revolutionized the banking industry, making it more efficient and accessible. Banks are leveraging the Internet and mobile apps to provide access to various banking services, popularly known as e-banking services. Customers experience