THE DIGITAL BANKING DILEMMA: EVALUATING SECURITY CONCERNS AND CUSTOMER TRUST IN RAJASTHAN’S PRIVATE SECTOR BANKS

Abstract

The role of technology and digitalisation on the entire world has been quite evident from the previous research conducted. However, the prime focus when it comes to India is that of the cyber security issues that prevails all over. The previous literature paid more attention towards the adoption of digital banking among individuals with respect to the effectiveness and efficiency of the process. Using 405 digital banking customers from private banks in Rajasthan, the study extracts the critical factors and identifies the relationships it holds with customer trust. In case of security and privacy, it is seen that the regression model generated is statistically significant with a p-value of less than 0.05. The adjusted R² at 0.537 represents 53.7% variance caused by the independent factors on the levels of security and privacy about digital banking services in private banks. In case of the perception about trust a similar pattern is observed among the customers. The adjusted R² in this case stands at 0.470 which is the level of variance explained by the independent factors. Further investigation shows that the first four challenges namely Un-updated information on the internet sources, making fraud and scam calls, Unauthorized access to the bank account and down server of banks impact on the trust levels of the customers about the security that the bank’s digital banking methods are able to provide.