A Nonparametric Approach to the Prioritization of Customers’ Online Service Adoption Dimensions in Indian Banks

Abstract

Online banking service adoption depends on the Internet exposure and the customer’s preparedness and individual’s attitude. There may be numerous dimensions that can influence in the adoption of online banking services both Internet and mobile banking. However, it is very much essential to calculate the perception of the customers on what they are expecting from the service adoption. This paper proposes a methodology that prioritizes the parameters related to service adoption for the Indian banking industry grounded on a survey administered on the bank account holders. This paper examines the factors which influence the attitude of the customers in adopting the technologically driven banking modes for their day-to-day transactions. In this study, we have attempted to find the most important factors such as technology, perceived security, regulatory, customer orientation, attitude, perceived benefits and perceived service quality by following an exploratory factor analysis (EFA). The study tried to find the precedence list of factors by using nonparametric approaches such as ridit approach and Kruskal-Wallis method. The findings of the study will give the Indian banks in designing the attitude change strategies for wider adoption of their various online banking applications among their customer base.