2Assistant Professor, Department of Statistics, Comilla University, Comilla
3Assistant Professor, Department of General Educational Development, Daffodil International University, Dhaka, Bangladesh
4Assistant Professor, Department of Real Estate, Daffodil International University, Dhaka, Bangladesh
Key word: E-banking; Online Banking; Consumers’ Satisfaction;
Extensive research has been done in Bangladesh on ecommerce issue Azam, [2], computer usage Azam, [3], Internet usage Awal, [4], telephone and electronic banking Bakta et al., 2007]. Even though there is huge demand from the business community as well as the retail customers especially the city consumers, E-banking in Bangladesh is still in infancy. Nonetheless e-banking is being slowly but surely getting recognition in Bangladesh. We can hope that E-banking can start to give positive profit on banks objectivity Siddik et al, [13].
But there seem to be several vital challenges and issues faced on the road of development of e-banking. Security concern is being the main concern of them all Baten,[8]. There have been studies done in Bangladesh in regards on various e-banking services like Hasan et al., 2010 which conveyed the significant gaps in existing knowledge about the internet banking. According to Redwanuzzaman & Islam [12], the challenges in regards of e-banking for Bangladeshi banks are for the most parts quadruple. First and the biggest challenge of e-banking is the complex and ever changing demand of the customers. The challenging part of banking resides in the increased amount of customers’ expectations, E-channels specific marketing, security risks, technological challenges, and winning customer trust. Since 2001 E-banking services have started its journey in Bangladesh. Still Bangladesh is yet to reach the expected level in global banking system. So right now the most needed task is to upgrade the banking system. Huda & Chowdhury, [9] has showed in their paper that there is an excellent opportunity for the e-banking to in Bangladesh. So this paper focused to determine the present scenarios of e-banking sectors in Dhaka city, Bangladesh and at the same time to identify the benefits and challenges faced by the consumers. Also to know their overall satisfaction level on Electronic banking system.
Different statistical methodologies have used to examine the relationships between the explanatory and the outcome variables. Bivariate analysis: As our data is categorical type, we have used cross-tabulation and chi-square test to examine the relationships.
Multivariate analysis: Our dependent variable is Dichotomous which is the use of any e-banking facilities and independent variables are categorical, so we have applied logistic regression analysis to examine the relationship. Logistic Regression Model: Binary logistic regression model is used not only to identify the contributing factors but also to predict the probability of success that is probability of occurring the event.
ATM card is dominating over other facilities in case of usage by the consumers. Approximately 84% of the total respondents use ATM card for their different necessities, 47.5% of the total respondents use Debit card and 25.5% of them use online banking, while we found that 21.6 % use credit cards. Phone banking, mobile banking and SMS banking has the lowest percentage of user’s figure 3.2.
Different e-banking provide different transaction facilities to make the financial complication a lot easier in everyday life. From our analysis we found that, the most frequently done transaction through ATM, debit and credit card is money withdrawal (Table 3.2), while people mostly use online banking for balance inquiry (53.8%) table 3.2.
Income level |
Total user in each Income Level (%) |
User of E-banking facilities (%) |
||||||
ATM card |
Debit card |
Credit card |
Online banking |
Phone banking |
Mobile banking |
SMS Banking |
||
Less than TK. 15000 |
17.9 |
16 |
4.7 |
0.0 |
0.9 |
0.9 |
0.9 |
0.5 |
TK. 15000- TK. 30000 |
31.1 |
26.4 |
16 |
4.2 |
7.5 |
3.8 |
1.4 |
1.9 |
TK. 30001- TK. 45000 |
22.4 |
18.4 |
11.8 |
5.2 |
7.1 |
0.0 |
2.4 |
0.0 |
TK. 45001- TK. 60000 |
11.3 |
10.4 |
8.5 |
6.1 |
3.8 |
0.9 |
0.9 |
1.9 |
Above TK. 60000 |
17 |
12.7 |
8.0 |
9.4 |
7.5 |
1.9 |
0.5 |
0.5 |
E-banking (Usage %) |
Transaction (%) |
Make payment (%) |
Balance inquiries (%) |
Transferring fund (%) |
Withdrawal (%) |
Making deposit (%) |
ATM Card (83.4%) |
Never Rarely Sometimes Frequently |
44.9 16.2 23.1 15.7 |
5.6 14.8 44.0 35.6 |
52.3 13.9 25.0 8.8 |
8.3 9.3 25.0 57.4 |
46.3 19.4 26.4 7.9 |
Transaction (%) |
Make payment (%) |
Balance inquiries (%) |
Transferring fund (%) |
Withdrawal (%) |
Making deposit (%) |
|
Debit Card (47.5%) |
Never Rarely Sometimes Frequently |
36.6 24.4 27.6 11.4 |
6.5 15.4 50.4 27.6 |
48.8 20.3 27.6 3.3 |
1.6 7.3 30.9 60.2 |
38.2 17.1 32.5 12.2 |
Transaction (%) |
Make payment (%) |
Balance inquiries (%) |
Transferring fund (%) |
Ordering check (%) |
Pay certain bill (%) |
|
Online Banking (25.5%) |
Never Rarely Sometimes Frequently |
20 23.1 29.2 27.7 |
4.6 10.8 30.8 53.8 |
24.6 30.8 32.3 12.3 |
47.7 29.2 16.9 6.2 |
33.8 27.7 26.2 12.3 |
Transaction (%) |
Balanceinquiries (%) |
Detailed account information (%) |
Pay certain bill (%) |
Order statement (%) |
ATM deactivation (%) |
|
Phone Banking (6.9%) |
Never Rarely Sometimes Frequently |
5.6 22.2 38.9 33.3 |
5.6 22.2 55.6 16.7 |
44.4 33.3 11.1 11.1 |
33.3 38.9 22.2 5.6 |
55.6 16.7 27.8 0.0 |
Transaction (%) |
Transferring fund (%) |
Withdrawal (%) |
Making deposit (%) |
|||
Mobile Banking (5.8%) |
Never Rarely Sometimes Frequently |
53.3 6.7 13.3 26.7 |
33.3 20.0 20.0 26.7 |
46.7 26.7 13.3 13.3 |
||
From this study we wanted to find the overall satisfaction of the consumers on e-banking facilities and we found that debit card has made the consumers satisfied (8.05 out of 10). Mean satisfaction level for Debit, online and mobile banking are pretty close (8.05, 7.95, 7.93 respectively). Lowest satisfaction goes for SMS banking which is just below 7.20 figure3.4.
In our analysis we found ATM, Debit, Credit and online Banking are the frequently used Electronic Banking facilities. We have done logistic regression model for these four facilities to see the actual probability of success or relation with the factors like education, occupation, and income table 3.5.
Facilities |
Strongly agree (%) |
Agree (%) |
Neither Agree nor disagree (%) |
Disagree (%) |
Strongly disagree (%) |
*Using e-banking is easy for the consumer |
25.9 |
64.5 |
5.8 |
1.9 |
1.9 |
*Privacy of e-banking |
14.3 |
62.5 |
16.6 |
5.8 |
0.8 |
*Accuracy of e-banking |
13.1 |
61.4 |
17.8 |
6.6 |
1.2 |
*Easiness of secure transaction |
20.8 |
59.1 |
14.7 |
4.2 |
1.2 |
*e-banking gives more control over account |
16.6 |
52.9 |
17.4 |
11.6 |
1.5 |
*Users feel comfortable using e-banking |
22 |
68 |
8.1 |
1.9 |
- |
*e-banking service quality is satisfactory |
13.5 |
62.2 |
13.5 |
9.3 |
1.5 |
Impacts |
Strongly Agree (%) |
Agree (%) |
Neither Agree nor disagree (%) |
Disagree (%) |
Strongly agree (%) |
e-banking saves time on consumers’ life |
47.5 |
47.5 |
3.5 |
0.8 |
0.8 |
No need to stand on a queue anymore |
45.5 |
4.1 |
6.2 |
5.4 |
1.2 |
e-banking simplifies the financial complications |
23.2 |
64.9 |
9.7 |
1.9 |
0.4 |
Users don’t need to go to bank anymore |
19.7 |
35.1 |
16.6 |
23.9 |
4.6 |
e-banking makes life easier with the facilities |
28.6 |
62.2 |
6.2 |
1.9 |
1.2 |
Willingness to pay has increased than before |
15.4 |
58.7 |
18.5 |
5.8 |
1.5 |
Paying bill is easier due to e-banking |
27.4 |
62.2 |
8.9 |
0.8 |
0.8 |
Carrying cash seems to be more hassling now |
27 |
61.8 |
6.6 |
3.9 |
0.8 |
People tend to spend more due to easiness of banking through E-banking |
16.2 |
52.9 |
17.4 |
12.4 |
1.2 |
e-banking can’t do everything as employee can do |
12 |
49.4 |
19.3 |
18.5 |
0.8 |
Mistakes are more likely to occur in e-banking |
4.6 |
35.5 |
21.6 |
33.6 |
4.6 |
Table 3.5: Logistic Regression estimates of ATM card on some selected covariates |
|||||||
Variables |
S.E. |
p-value |
OR |
||||
Education level |
|||||||
Secondary (r) |
.032* |
||||||
Higher secondary |
-2.672 |
0.534 |
.009* |
0.691 |
|||
Graduate |
2.098 |
0.534 |
.009* |
8.153 |
|||
Masters & above |
0.943 |
0.534 |
0.099 |
1.903 |
|||
Occupation |
|||||||
Gov. Service (r) |
0.216 |
||||||
Others |
-0.281 |
0.714 |
0.693 |
0.755 |
|||
Student |
1.122 |
0.83 |
.006* |
3.071 |
|||
Business |
-0.193 |
1.133 |
.005* |
0.824 |
|||
Private jobs |
0.439 |
0.801 |
0.583 |
1.552 |
|||
Income level |
|||||||
< TK. 15000 (r) |
0.442 |
||||||
TK. 15000- TK. 30000 |
1.706 |
0.147 |
.007* |
5.504 |
|||
TK. 30001- TK. 45000 |
0.628 |
0.311 |
.002* |
1.873 |
|||
TK. 45001- TK. 60000 |
1.524 |
1.121 |
0.174 |
4.589 |
|||
> TK. 60000 |
0.973 |
1.042 |
0.35 |
2.647 |
From table 3.5, it is observed that graduate consumers are significantly (p value=.009) 8 times more likely to use ATM cards (OR=8.153) than those who only pass secondary levels. Again students are 3 times more likely to use ATM cards (OR=3.071) than those who are in government jobs. From income level, we see that, consumers’ having 15000-30000 TK income are significantly (p value=.007) 5 times more likely to use ATM card (OR=5.504) than those who earn less than 15000 TK table 3.6.
P< .05*, r=reference category
From table 3.6, it is observed that, business and private job holders are significantly (p value=.024, .038) 3 times more likely to use debit cards (OR=3.990, and OR=3.942) than those who are in government service table 3.7.
P< .05*,r=reference category
From table 3.7, it is found that, consumers doing private service and business are significantly 8 times and 5 times more likely to use credit cards (OR=8.950 and OR=5.878) than those who are in government service. And also consumers’ who earn more than 60000 TK are significantly 3 times more likely to use credit cards (OR=3.060) than those who earn less than 15000TK table 3.8.
P< .05*, r=reference category
From table 3.8, we observed that, students are significantly 2 times more likely to use online banking (OR=2.341) than those who are in government service.
|
β |
S.E. |
p-value |
OR |
|
Education level |
0.137 |
1.094 |
.004* |
0.872 |
|
Occupation |
0.046 |
0.486 |
.025* |
1.047 |
|
Income level |
-.542 |
.707 |
.008* |
.581 |
|
β |
S.E. |
p-value |
Odds ratio |
|
Education level |
-2.674 |
0.433 |
.008* |
0.069 |
|
Occupation |
.656 |
0.541 |
.003* |
1.927 |
|
Income level |
-2.83 |
1.183 |
.001* |
.059 |
|
β |
S.E. |
p-value |
OR |
|
Education level |
-2.053 |
0.97 |
.899 |
.000 |
|
Occupation |
-.444 |
.532 |
.003* |
0.641 |
|
Income level |
-1.97 |
.960 |
.055* |
0.139 |
Compared to ATM and Debit card, Credit card has a very small number of users in our country. In developing countries like ours, most of the people don’t have the financial capability to use Credit card. The main reason working behind for not using Credit card is ‘I am concerned about the cost of using the system’. Some people reasoned that ‘I don’t see a need for the service’. This statement can be justified by saying that they don’t need cash advances from bank.
After ATM and Debit card, the Online banking service has good number of users. As online banking is a new concept in our country so it’s not even adopted by all the banks yet. Moreover, online banking in our country does not provide all the facilities needed. And for being a new service, not all the people are aware of this service. One of the most powerful reasons for not using online bank we found is ‘I don’t know how to use the system’. Again those who use these facilities face difficulties like low speed, account hack, no availability of network etc. figure 4.1.
The three least used e-banking services are Phone banking, Mobile banking and SMS banking. Phone banking and SMS banking provide limited facilities, which results non interest in using these services. Consumers are not satisfied and even face problems using phone banking figure 4.2.
Most of the respondents think that using e-banking is easy for them. But in case of privacy they have moderate opinion. One of the main objectives is to assess the impact of e-banking on consumers’ lifestyle. To achieve this goal, we have asked the respondents their opinion about some statements. Almost all the users think that e-banking saves time and simplifies their financial complications. It’s free from trouble of manual banking. Users don’t need to think more about the security of their money because of e-banking, they can use different type of cards, and other facilities which simplify their financial complications. Also consumers can perform secure & quick transactions in their accounts but sometimes they get serious trouble on their account like ID theft, account hacking, miss-transaction etc. For these reasons, consumers have mixed opinion on this statement. Most of the respondents think that e-banking makes their life easier using the facilities provided.
E-banking brings the total bank to the consumers’ pocket. Using e-banking users can easily perform banking activities without going to the bank by themselves. Whenever the users go on purchasing they don’t need to worry about running out of money due to the blessings of these Cards. Most of the respondents think that paying bill is easier now due to E-banking as they don’t need to go bank for paying bill. Almost all the users think that carrying cash is more hassling now. For the blessing of different type of cards like ATM, debit & credit card users really don’t need to carry cash with them.
From the study we can conclude that people of Dhaka city is adopting e-banking. And the extent of adoption is increasing day by day. People are now dependent on e-banking for their day to day banking transactions. Although people of this metro city were reluctant to use technology, people seem to get more comfortable to technology now. In order for e- banking to continue to grow, the security and the privacy aspects also need to be improved. Corruption and fraudulence related to e-banking activities must be controlled drastically to improve the image of e-banking. The future of e-banking can be very prosperous if security and privacy issues resolved.
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