Digital Banking Services of Cooperative Banks in Ernakulam District

Abstract

Digital banking services have also been an essential part of the Indian banking industry, especially for cooperative banks, which have adapted to the new financial systems dominated by technology. This paper discusses the efficiency of digital banking services in cooperative banks in Ernakulam District in terms of the levels of adoption, customer satisfaction, perceived security issues and measures of improvement. A mixed-methods research design was employed, and primary data were collected from 250 customers using a structured questionnaire on a 5-point Likert scale. IBM SPSS Statistics Version 26.0 was used for statistical analysis, including ANOVA, multiple regression, Pearson correlation, and reliability analysis. The ANOVA results for Objective 1 yielded an F-value of 0.74 and a p-value of 0.389 (p > 0.05), indicating that, despite positive adoption behaviour among customers, the relationship between the quality of digital banking services and adoption is not significant. In Objective 2, the multiple regression analysis indicated that the relationship between adoption-related service factors and customer satisfaction is high, with an R = 0.754 and R2 = 0.568, meaning that 56.8 % of the change in customer satisfaction is accounted for by services meeting expectations and service reliability. Pearson correlation analysis of Objective 3 indicated that security concerns were negatively related to adoption (r = -0.589) and customer satisfaction (r = -0.563). That adoption was positively related to customer satisfaction (r = 0.684), supporting the notion that perceived security threats significantly affected usage. On Objective 4, the Reliability analysis showed that the items have high internal consistency, with correct item-total correlations of 0.731 and Cronbach's Alpha of 0.798 when an item or items are deleted, confirming the reliability of the improvement measures.