Globalization and deregulations have increased competition in the market places. The increased competition, in turn, calls for that organizations continuously increase their productivity and decrease their costs. Investments in information technology are one important means to increase productivity and decrease costs. The service industries are mostly customer driven and their survival in competitive environment largely depends on quality of the service provided by them. In this context, quality of service furnished by banks is very important and profitability of their business is closely connected to the quality of service they render. E-banking is a new delivery channel for banks in India. However, the service quality in e-banking from customer's perspective needs thorough analysis to find out the determinants for success and growth of new channel of delivery in India so that useful guidelines for bankers can be extracted. In this study the paper aims at identifying the important parameters crucial for service quality in e-banking from customer's perspective. The study identifies various dimensions and characteristics of service quality in e-banking and explores various aspects of customer satisfaction in relation to the traditional and e-service quality. A valid mathematical model is proposed to assess the overall service quality using regression analysis. The results show that customers are satisfied with quality of service on four dimensions such as reliability, accessibility, privacy/security, responsiveness and fulfilment. The statistical analysis on these dimensions concludes that banks providing internet banking facilities are reliable but have to improve a lot on user friendliness.
E-banking, Service quality, customer's perspective, principal component analysis
