A Study on Customer Satisfaction Towards Digital Banking (with Special Reference to Coimbatore City)

Abstract

Digital banking has transformed the way banking services are delivered to customers. With the rapid advancement of technology and increasing internet penetration, banks have introduced various digital platforms such as mobile banking, internet banking, UPI services, and digital wallets to enhance customer convenience. This study aims to analyze the level of customer satisfaction towards digital banking services in Coimbatore city. The research focuses on factors such as ease of use, security, accessibility, service quality, and reliability of digital banking platforms. The findings indicate that customers prefer digital banking due to convenience, time savings, and easy transaction facilities. However, concerns regarding security, technical errors, and lack of digital awareness among certain users still exist. The study suggests that banks should improve security measures, enhance digital literacy programs, and provide better customer support to improve satisfaction levels.

Introduction

The banking sector has experienced major changes with the growth of digital technology, shifting from traditional branch-based services to digital banking platforms such as internet banking, mobile banking apps, ATMs, and online payment systems. In India, the adoption of digital banking has increased due to widespread smartphone use, internet access, and government initiatives promoting digital payments. Services like Unified Payments Interface have made banking faster and more convenient.

The study focuses on customer satisfaction with digital banking services in Coimbatore city. As a growing commercial center in Tamil Nadu, Coimbatore has seen increasing use of digital banking among customers. Many banks provide services such as internet banking, mobile banking applications, UPI payments, and online fund transfers like NEFT, RTGS, and IMPS.

The research used a descriptive research design, collecting primary data from 100 customers through questionnaires and analyzing the data using percentage analysis and simple statistical tools. Findings show that most customers prefer mobile banking and UPI for daily transactions because they save time and provide convenience. Overall customer satisfaction with digital banking services is positive due to their speed and accessibility.

However, some challenges still exist, including security concerns, technical issues, and difficulty for elderly customers in using digital platforms. The study suggests improving cybersecurity measures, increasing awareness programs for digital banking literacy, offering 24/7 customer support, making mobile apps more user-friendly, and regularly updating systems to avoid technical problems.

Conclusion

Digital banking has become an essential part of modern banking services. It provides convenience, speed, and flexibility for customers to perform financial transactions without visiting bank branches. The study reveals that customers in Coimbatore city are increasingly adopting digital banking services due to their efficiency and accessibility. However, banks must address issues related to security, technical reliability, and digital awareness to further improve customer satisfaction. By enhancing technological infrastructure and customer support services, banks can strengthen the adoption and effectiveness of digital banking in the future.

References

[1] Ramanathan, R. (2016). Customerperception towards digital banking services. International Journal of Banking and Finance, 8(2), 45–52. [2] Singh, S., & Rana, R. (2017). Study of consumer perception of digital banking services. International Journal of Management Research and Business Strategy, 6(3), 45–52. [3] Sharma, G. (2019). Customer satisfaction towards mobile banking services. Journal of Internet Banking and Commerce, 24(1), 1–10. [4] Kothari, C. R. (2014). Research Methodology: Methods and Techniques (2nd ed.). New Age International Publishers. [5] Reserve Bank of India. (2022). Report on Trends and Progress of Banking in India. Retrieved from https://www.rbi.org.in [6] Indian Banks\' Association. (2021). Digital Banking in India: Opportunities andChallenges. Mumbai. [7] Gupta, S. (2018). Impact of digital technology on banking sector in India. International Journal of Scientific Research and Management, 6(5), 320–326. [8] Natarajan, K. (2020). Growth of digital payment systems in India. Journal of Financial Services, 12(2), 75–82.

Copyright

Copyright © 2026 Sanmuganathan M, Dr. R. Kavithamani. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.