Expectation and Perception of Internet Banking Service Quality of Select Indian Private and Public Sector Banks: A Comparative Case Study

Introduction

Customer satisfaction is a serious issue for the success of any organization. Service quality is the main indicator to measure the client satisfaction. The relation between expectations and perceptions are very important in business especially in service industry to identify the service quality. In modern business environment, providing high service quality is the major key for a sustainable competitive advantage. Being a service industry catering to the millions of customers, banks are constantly offering new products to satisfy their diverse client bases with varied tastes and preferences. In recent years, internet banking is one of the facilities are offering to their clients to ensure client satisfaction along with improved business. The internet banking or online banking is a win-win solution for both the banks and their clients. The clients are advantaged because of the convenience, flexibility and literally 24-hour banking solutions in their hands and the banks get benefitted because of lower operating costs, wider geographical reach and reduced client pressure on their branches. Present status of Indian commercial banks demonstrates that maximum amount of branches is computerized and with CBS (Core Banking Solution). Commercial banks working in rural areas also providing most of internet banking services like mobile banking, NEFT, RTGS, ATM, credit cards, POS etc. Basically e-banking includes all non-traditional and electronic means of banking such as ATM, internet banking (IB), mobile banking, banking through credit cards and debit cards etc.