A system allowing individuals to perform banking activities at home, via the internet is online banking. Online banking through traditional banks enable customers to perform all routine transactions, such as account transfers, balance inquiries, bill payments, and stop-payment requests, and some even offer online loan and credit card applications. Account information can be accessed anytime, day or night, and can be done from anywhere. Today, need to improve online banking services in Sri Lankan banking industry have come under limelight due to stiff competition where banks are trying to attain competitive advantage through the provide high quality online banking services.
Researchers have found that significant number of customers are either not aware of Internet Banking Services or do not trust IB as a channel to conduct financial transactions. They have also found that customers may adapt the IB services only if they perceive the technology to be useful. This research paper aims to find out the customers perception to internet banking and also tries to examine whether there is any relation between various demographic variables and customers perception about internet banking.
This study investigates the relationship between online banking and customer satisfaction in the banking industry with a focus on People's bank, Trincomalee district, Sri Lanka. A total of 100 respondents participated in the study. Research questions and objectives were set, alongside the hypotheses that were formulated and tested. Descriptive statistics comprising the simple percentage and tables were used for data presentation and analysis. Pearson product moment correlation coefficient was employed in testing our hypotheses. The study reveals that Information Provision, Reliability, Responsiveness, Efficiency, and Security and Privacy were have effect on customer satisfaction and that there is a positive relationship between Information Provision, Reliability, Responsiveness, Efficiency, and Security and Privacy and customer satisfaction. The researcher concluded by recommending that organizations should focus more attention on Reliability and efficiency, because of its effects on customer satisfaction. To ensure that customer satisfaction level is high, organization must first of all know the expectations of the customers and how they can meet such expectations. Customer satisfaction helps in customer loyalty and retention. It has been discovered that it costs to attract new customer than to retain existing ones. It is also recommended that organizations should welcome suggestions from customers and more programmes should be designed to measure quality of online banking and customer satisfaction.
Online Banking, Customer Satisfaction, Banking Industry
