Commercial Banks' Digital Paradigm and Customers Responses in the UAE

Commercial Banks' Digital Paradigm and Customers Responses in the UAE

Muhammad Jumaa (City University College of Ajman, Ajman, UAE)
Copyright: © 2020 |Pages: 12
DOI: 10.4018/IJDA.2020010105

Abstract

One of the central factors influencing the banks in the UAE is the changing needs and perceptions of the customers towards digital banking services. With this significance, the researcher made an attempt to study commercial banks' digital paradigm and customer's responses. Based on this, the volume of business and the customer's top 11 banks were identified for the study. For collecting data from the respondents pretested scheduled questionnaire was used. In order to finalize the number of samples the researcher calculated standard deviation and found the sample size was 350. Collected data was analyzed by the researcher to know the impact of digital banking services and the customer responses. The researcher has done an inferential analysis followed by descriptive analysis. This analyst recognized factors, which were embraced amid the examination included; privacy, reliability, technology, convenience, security, and satisfaction. Among every one of the elements, innovation and accommodation reflected negative connection thinking about negative effect by and large consumer loyalty.
Article Preview
Top

Introduction

Innovation has played an undeniable and progressively critical job in the advancement of the financial business towards digitization. This move to e-banking or digitization carries with it security dangers and solid challenge. Banks are gradually spotting the necessity to actualize, and have begun setting up, new managements that improvement both themselves as far as looking after gainfulness, just as clients by method for giving a superior and increasingly helpful experience. In the Middle East, the UAE has been an early adopter of computerized innovation, bringing about a period of fast mass advanced change in numerous areas, including banking.

While banks keep on concentrating on digitalization, the exploration demonstrates that one of the principle advantages of e-banking is client comfort, particularly over conventional banking. A gulf news survey revealed that 67 percent of UAE bank customers have said that it is simpler to utilize e-banking arrangements than having to actually visit a branch. For sure, the presentation of advanced banking has given clients a simple method to associate with their bank as and when they please. Gone are the days you needed to physically go to your neighborhood office to get a report on your accounts — today. The solid take-up of e-banking in the area unmistakably displays huge open doors for the whole budgetary administrations industry. To be fruitful, banks obviously need to saddle the correct sort of innovation and procedures to give the best mix of accommodation and security for their clients.

Banks are progressively spotting the necessity to actualize, and have begun setting up, innovative administrations that advantage both themselves as far as looking after gainfulness, just as clients by method for giving a superior and increasingly helpful experience. In the Middle East, the UAE has been an early adopter of computerized innovation, bringing about a period of fast mass advanced change in numerous areas, including banking. One of the central factors influencing the banks in UAE is the changing needs and perceptions of the customers towards digital banking services. However, this customer response towards digitization of banking services needs to be studied within UAE. Customer reaction and loyalty shows an important role in the success of any service. Consequently, UAE banks and the managers are in dire need of understanding the views of customers, in order to improve the digitalization and get the acceptance of customers. With these significances the researcher made an attempt to study commercial banks' digital paradigm and customer's responses. To analyze the impact of digital banking initiatives by commercial banks and customers loyalty and reaction towards the banking services in UAE.

Technology has played and is playing a basic and apparently the most essential job in rethinking the money related business. Banks are reacting by offering elective conveyance stations like ATMs, Tele banking, web banking, versatile banking and so forth., Most of the banks have officially executed center financial arrangement (CBS) over all workplaces to give “whenever anyplace” banking in evident sense. Hypothesis of the study was, there is no association between independent variables and the customer responses about the digital banking. There were 23 local and 26 foreign banks were functioning in UAE. Further the researcher stratified in to local and foreign banks. Based on the volume of business and number of customers top 11 banks were identified for the study. For collecting data from the respondents pretested scheduled questionnaire was used. It was tested with 35 respondents and validates the questionnaire. In order to finalize the number of samples the researcher calculated standard deviation and found the sample size was 350. Collected data were analyzed by the researcher to know the impact of digital banking services and the customer responses. First the researcher has done inferential analysis followed by descriptive analysis. This analyst recognized factors, which were embraced amid the examination included; Privacy, Reliability, Technology, Convenience, Security and Satisfaction. Among every one of the elements, innovation and accommodation reflected negative connection thinking about negative effect by and large consumer loyalty. Then again, protection, security and unwavering quality added to positive connection. In any case, confirmation was found to not have any huge commitment towards consumer loyalty. The positive relationship of affirmation factor and ensuing inconsequential relapse likewise means its conceivable concealment by different components at play, which rule its importance.

Complete Article List

Search this Journal:
Reset
Open Access Articles: Forthcoming
Volume 1: 2 Issues (2020): 1 Released, 1 Forthcoming
View Complete Journal Contents Listing