Online Banking Service Quality and Customer Satisfaction (A Case Study of Select Private Sector Banks in Chennai City)


  • T. S. Santhi
  • M. Jaya


Technology capsized the life style of a common man to an unpredictable extent.  Days are gone where a customer has to stand in a queue to pay or withdrew or raise a query for the banking transactions.  Today, thanks to the modernization of technology which facilitate the banking operations at the finger tip.  Fund transfers, service bill payments, insurance payments, mobile recharges, payment to various services, receipt from various vendors are done with ease by the online transactions provided by banks.  This study travels into the attitude of the customers who uses the online mode for banking operations and makes a maiden effort to measure the customer satisfaction derived through online operations of the banks.  The online service quality has been measured based on the parameters namely E Modus, E Content, E Security, E support, E Technology and E Appearance.

 The perception analysis has been applied to measure the perception on the online banking service quality of private sector banks.  The correlation analysis was applied to understand the linear association between the variables of perception.  The multiple regression analysis was applied to measure the relationship between the online service quality parameters and customer satisfaction. The R square value indicates that more than 79 per cent of variation in the customer satisfaction is explained by online service quality parameters with a strong and positive relationship between the customer satisfaction and the online service quality parameters.  Among the parameters, E security, E support, E technology significantly influences the customer satisfaction than the other parameters.  It is interesting to note that consumer consider security as their prima facie for the satisfaction of the service derived from a bank.  The e support and e technology occupied the second and third satisfiers respectively.