Beyond Clicks and Codes: Decoding Customer Satisfaction in India's Digital Banking Era

Abstract

Introduction of fintech practices in banking sector along with high smartphone adoption and government initiatives like Unified Payments Interface (UPI) and Digital India has indeed brought an enormous revolution in Indian banking sector. Digital banking is convenient, the bank is accessible and being efficient but the challenges remain that the customer experience will be seamless, that the bank is secure and that the bank offers personalized financial service. Using the examples of 500 respondents in India, this study empirically investigates what the key factors are that have an impact on customer satisfaction in digital banking.

What stands out is that ease of use (4.2/5) and security (3.8/5) are the two most important drivers of satisfaction, but customer support (3.5/5), personalization (3.6/5) can still be improved. Over 90% (of total digital payments volumes) are transacted in UPI and the trustability of UPI payments (especially towards merchants) is not as good as cards. Although almost every bank has embraced digital banking, 67 percent of respondents choose traditional banks because of fraud risks and fear of data privacy. The study would emphasize that the user engagement and retention rates can benefit a lot from personalized financial services, AI based security measures and faster dispute resolution.

The research airs the need to use AI-enabled fraud detection and tighten up security framework while enhancing customer service to develop lasting trust of consumers in digital banking. The insights offered here are very useful to banks, fintechs and policymakers to help make digital banking adoption secure while addressing user demands, creating the secure and customer-centric digital financial ecosystem in India.