Digital Service Quality and Customer Experience in Rural Banking: Evidence from State Bank of India

Abstract

 The rapid advancement of the digital environment has brought an altogether new revolution in the banking scene in India; but the rural segment faces its own challenges due to lack of infrastructure and education. This current study seeks to examine the structural impact of four key elements of digital service quality including Ease of Use, Reliability, Security & Privacy, and Service Availability on the overall customer experience of customers of State Bank of India (SBI) rural branches in the district of Ernakulam, Kerala. Descriptive research method is employed to collect primary data from the target sample consisting of 384 rural customers of SBI digital services using a well-defined survey instrument. Analysis of data was carried out using the SPSS and AMOS statistical tools. Empirical results of multiple linear regression analysis indicate that all four constructs have a positive impact on customer experience (p < 0.05). The regression model demonstrated robust structural validity (F (4, 379) = 13.611, p < 0.001), accounting for 12.6% of the total variance in customer experience (R2 = 0.126). Ease of Use emerged as the dominant independent predictor (β = 0.229), followed by Security & Privacy (β = 0.168), Reliability (β= 0.147), and Service Availability (β = 0.145). Furthermore, an independent samples t-test revealed no statistically significant variance in customer experience across gender profiles (t (382) = 0.664, p = 0.507), validating equal efficacy of the platform for users regardless of gender. The present study reveals that customer satisfaction for those from the rural areas depends on the friendly nature of interface mechanics, security in the process of transaction, and availability of connectivity. In this regard, it is suggested that the SBI should improve usability of its applications, enhance linguistic customization, strengthen data protection technologies, and ensure system availability to maximize rural customer experience.