CUSTOMER TRUST IN E-BANKING DURING COVID-19 PANDEMIC IN BANGLADESH
Keywords:
E-Banking, Trust, Customer Satisfaction, Structure Equation Model, Bangladesh
Abstract
The purpose of this study is to determine the trust that E-Banking customers possess regarding the effect of customer satisfaction, which depends on the E-Banking infrastructure facility and E-Banking Communication environment. Using stratified random sampling in randomized block design, the response to a survey questionnaire has been obtained from 400 respondents via E-mail and hand-to-hand to know their opinion. Structure Equation Model (SEM) with Kolmogorov Smirnov Test, Shapiro Wilk Test, Mann-Whitney Test, Kruskal-Wallis Test, and Least Significant Difference (LSD) tests are used to determine the factors that affect E-Banking customer trust. It is observed, from this study, that an increased E-Banking communication environment, leads to the enhancement of customer satisfaction, as there is a positive significant relationship. Result also shows bachelor's degree and master's degree holder customers exhibit more trust in the E-Banking process than the customers with a lower level of education. Customers who started e-banking transactions during Covid-19 own more trust value than the customers who started transactions before the pandemic. So, the growth of E-Banking transactions may contribute positively to ensuring sound health in the future and especially in any pandemic situation.
JEL Classification Codes: G21.
References
Ashraf, M. A., Alam, M. M. D., & Noor, M. S. I. (2010). The Influence of Privacy and Trust on the Adoption of Internet Banking in Bangladesh. Malaysian Management Journal, 14, 33–48. Retrieved from https://www.e-journal.uum.edu.my/index.php/mmj/article/view/8965
Bhattacherjee, A. (2002). Individual trust in online firms: Scale development and initial test. Journal of management information systems, 19(1), 211-241. https://doi.org/10.1080/07421222.2002.11045715
Chen, M., Chen, S., Yeh, H., & Tsaur, W. (2016) The Key Factors Influencing Internet Finances Services Satisfaction: An Empirical Study in Taiwan. American Journal of Industrial and Business Management, 6, 748-762. https://doi.org/10.4236/ajibm.2016.66069
Cranor, L. F. (1999). Internet privacy. Communications of the ACM, 42(2), 28-38. Retrieved from https://dl.acm.org/doi/fullHtml/10.1145/293411.293440
Dwyer, C., Hiltz, S., & Passerini, K. (2007). Trust and privacy concern within social networking sites: A comparison of Facebook and MySpace. AMCIS 2007 proceedings, 339. Retrieved from https://aisel.aisnet.org/amcis2007/339/
Goudarzi, S., Ahmad, M. N., Soleymani, S. A., & Hosseini, N. M. (2013). Impact of Trust on Internet Banking Adoption : A Literature Review. Australian Journal of Basic and Applied Sciences, 7(7), 334–347. Retrieved from http://ajbasweb.com/old/ajbas/2013/may/334-347.pdf
GVU. (1997). GVU’s WWW User Surveys. Retrieved from https://www.cc.gatech.edu/gvu/user_surveys/survey-1997-10
Hammoud, J., Bizri, R. M., & El Baba, I. (2018). The impact of e-banking service quality on customer satisfaction: Evidence from the Lebanese banking sector. Sage Open, 8(3), 2158244018790633. https://doi.org/10.1177/2158244018790633
Hasan, A. H. M. S., Baten, A., Kamil, A. A., & Parveen, S. (2010). Adoption of e-banking in Bangladesh: An exploratory study. African Journal of Business Management, 4(13), 2718–2727. Retrieved from https://academicjournals.org/journal/AJBM/article-full-text-pdf/16DFCC123960
Hoque, S. M. S. (2012). Factors Affecting Internet Banking Behavior in Bangladesh: An Analysis on the Perspective of Gender and Educational Background. The Jahangirnagar Journal of Business Studies, 2(1). Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2286039
Islam, M. A., & Ahmed, M. I. (2020). Individuals ’ Behavioural Intention to Adopt Internet Banking System in Bangladesh- An Approach to Extend Technology Acceptance Model. International Journal of Progressive Sciences and Technologies(IJPSAT), 24(1999), 520–532. Retrieved from http://ijpsat.es/index.php/ijpsat/article/view/2502
Lee, M. K., & Turban, E. (2001). A trust model for consumer internet shopping. International Journal of electronic commerce, 6(1), 75-91. https://doi.org/10.1080/10864415.2001.11044227
Lim, E. T., Tan, C. W., Cyr, D., Pan, S. L., & Xiao, B. (2012). Advancing public trust relationships in electronic government: The Singapore e-filing journey. Information Systems Research, 23(4), 1110-1130. https://doi.org/10.1287/isre.1110.0386
Mohiuddin, G. (2015). Present Status of E-Business and E-Banking in Bangladesh: A Study on Some Selected Commercial Banks of Chittagong City. International Letters of Social and Humanistic Sciences, 43, 35–47. https://doi.org/10.18052/www.scipress.com/ilshs.43.35
Mohiuddin, M. (2014). Trend and Development of E-Banking: A Study on Bangladesh. IOSR Journal of Business and Management, 16(5), 16–24. https://doi.org/10.9790/487x-16521624
Muhammad, M., & Munir, M. (2017). An Empirical Study on Risks and Benefits of E-banking in Context of Employee Satisfaction in Rajshahi Division, Bangladesh. Journal of Social Sciences, 3(3), 149–156.
Pavlou, P. A., & Gefen, D. (2004). Building effective online marketplaces with institution-based trust. Information systems research, 15(1), 37-59. https://doi.org/10.1287/isre.1040.0015
Redwanuzzaman, M., & Islam, M. A. (2013). Problematic Issues of E-Banking Management in Bangladesh. Asian Business Review, 3(1), 26-30. https://doi.org/10.18034/abr.v3i1.99
Sadekin M. S., & Shaikh M. A. H. (2016). E-Banking Practice in Bangladesh: Comparative Study on Male and Female Users. International Journal of Business and Economics Research, 5(3), 71-74. https://doi.org/10.11648/j.ijber.20160503.16
Sadekin, M. S., Shaikh, M. A. H. (2015). Current Status of E-Banking Practices in Bangladesh. Scholar Journal of Business and Social Science, 1(1) 53-64. Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2724338
Sadekin, M. S., Mukta, S. N., & Shaikh, M. A. H. (2019). Customers’ trust on e-banking system in Bangladesh. International Journal of Economics, Finance and Management Sciences, 7(6), 178-186. https://doi.org/10.11648/j.ijefm.20190706.11
Shahriar, S. (2014). Acceptance of Internet Banking in Bangladesh: Evidence from Bangladesh. In International Conference on Business, Law and Corporate Social Responsibility (ICBLCSR'14) Oct (pp. 1-2). https://doi.org/10.15242/icehm.ed1014028
Skvarciany, V., & Jurevičienė, D. (2018). Factors influencing individual customers trust in internet banking: Case of Baltic states. Sustainability, 10(12), 4809. https://doi.org/10.3390/su10124809
Syed, S. (2011). Impact of user IT and Internet skills on online banking, input to innovative banking strategies. International Journal of Social Sciences and Humanity Studies, 3(1), 477-486. Retrieved from https://dergipark.org.tr/en/pub/ijsshs/issue/26221/276204
Warren, S., & Brandeis, L. (1989). The right to privacy. In Killing the Messenger (pp. 1-21). Columbia University Press. https://doi.org/10.7312/gold91730-002
Weiss, S. (2009). Privacy threat model for data portability in social network applications. International journal of information management, 29(4), 249-254. https://doi.org/10.1016/j.ijinfomgt.2009.03.007
Bhattacherjee, A. (2002). Individual trust in online firms: Scale development and initial test. Journal of management information systems, 19(1), 211-241. https://doi.org/10.1080/07421222.2002.11045715
Chen, M., Chen, S., Yeh, H., & Tsaur, W. (2016) The Key Factors Influencing Internet Finances Services Satisfaction: An Empirical Study in Taiwan. American Journal of Industrial and Business Management, 6, 748-762. https://doi.org/10.4236/ajibm.2016.66069
Cranor, L. F. (1999). Internet privacy. Communications of the ACM, 42(2), 28-38. Retrieved from https://dl.acm.org/doi/fullHtml/10.1145/293411.293440
Dwyer, C., Hiltz, S., & Passerini, K. (2007). Trust and privacy concern within social networking sites: A comparison of Facebook and MySpace. AMCIS 2007 proceedings, 339. Retrieved from https://aisel.aisnet.org/amcis2007/339/
Goudarzi, S., Ahmad, M. N., Soleymani, S. A., & Hosseini, N. M. (2013). Impact of Trust on Internet Banking Adoption : A Literature Review. Australian Journal of Basic and Applied Sciences, 7(7), 334–347. Retrieved from http://ajbasweb.com/old/ajbas/2013/may/334-347.pdf
GVU. (1997). GVU’s WWW User Surveys. Retrieved from https://www.cc.gatech.edu/gvu/user_surveys/survey-1997-10
Hammoud, J., Bizri, R. M., & El Baba, I. (2018). The impact of e-banking service quality on customer satisfaction: Evidence from the Lebanese banking sector. Sage Open, 8(3), 2158244018790633. https://doi.org/10.1177/2158244018790633
Hasan, A. H. M. S., Baten, A., Kamil, A. A., & Parveen, S. (2010). Adoption of e-banking in Bangladesh: An exploratory study. African Journal of Business Management, 4(13), 2718–2727. Retrieved from https://academicjournals.org/journal/AJBM/article-full-text-pdf/16DFCC123960
Hoque, S. M. S. (2012). Factors Affecting Internet Banking Behavior in Bangladesh: An Analysis on the Perspective of Gender and Educational Background. The Jahangirnagar Journal of Business Studies, 2(1). Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2286039
Islam, M. A., & Ahmed, M. I. (2020). Individuals ’ Behavioural Intention to Adopt Internet Banking System in Bangladesh- An Approach to Extend Technology Acceptance Model. International Journal of Progressive Sciences and Technologies(IJPSAT), 24(1999), 520–532. Retrieved from http://ijpsat.es/index.php/ijpsat/article/view/2502
Lee, M. K., & Turban, E. (2001). A trust model for consumer internet shopping. International Journal of electronic commerce, 6(1), 75-91. https://doi.org/10.1080/10864415.2001.11044227
Lim, E. T., Tan, C. W., Cyr, D., Pan, S. L., & Xiao, B. (2012). Advancing public trust relationships in electronic government: The Singapore e-filing journey. Information Systems Research, 23(4), 1110-1130. https://doi.org/10.1287/isre.1110.0386
Mohiuddin, G. (2015). Present Status of E-Business and E-Banking in Bangladesh: A Study on Some Selected Commercial Banks of Chittagong City. International Letters of Social and Humanistic Sciences, 43, 35–47. https://doi.org/10.18052/www.scipress.com/ilshs.43.35
Mohiuddin, M. (2014). Trend and Development of E-Banking: A Study on Bangladesh. IOSR Journal of Business and Management, 16(5), 16–24. https://doi.org/10.9790/487x-16521624
Muhammad, M., & Munir, M. (2017). An Empirical Study on Risks and Benefits of E-banking in Context of Employee Satisfaction in Rajshahi Division, Bangladesh. Journal of Social Sciences, 3(3), 149–156.
Pavlou, P. A., & Gefen, D. (2004). Building effective online marketplaces with institution-based trust. Information systems research, 15(1), 37-59. https://doi.org/10.1287/isre.1040.0015
Redwanuzzaman, M., & Islam, M. A. (2013). Problematic Issues of E-Banking Management in Bangladesh. Asian Business Review, 3(1), 26-30. https://doi.org/10.18034/abr.v3i1.99
Sadekin M. S., & Shaikh M. A. H. (2016). E-Banking Practice in Bangladesh: Comparative Study on Male and Female Users. International Journal of Business and Economics Research, 5(3), 71-74. https://doi.org/10.11648/j.ijber.20160503.16
Sadekin, M. S., Shaikh, M. A. H. (2015). Current Status of E-Banking Practices in Bangladesh. Scholar Journal of Business and Social Science, 1(1) 53-64. Retrieved from https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2724338
Sadekin, M. S., Mukta, S. N., & Shaikh, M. A. H. (2019). Customers’ trust on e-banking system in Bangladesh. International Journal of Economics, Finance and Management Sciences, 7(6), 178-186. https://doi.org/10.11648/j.ijefm.20190706.11
Shahriar, S. (2014). Acceptance of Internet Banking in Bangladesh: Evidence from Bangladesh. In International Conference on Business, Law and Corporate Social Responsibility (ICBLCSR'14) Oct (pp. 1-2). https://doi.org/10.15242/icehm.ed1014028
Skvarciany, V., & Jurevičienė, D. (2018). Factors influencing individual customers trust in internet banking: Case of Baltic states. Sustainability, 10(12), 4809. https://doi.org/10.3390/su10124809
Syed, S. (2011). Impact of user IT and Internet skills on online banking, input to innovative banking strategies. International Journal of Social Sciences and Humanity Studies, 3(1), 477-486. Retrieved from https://dergipark.org.tr/en/pub/ijsshs/issue/26221/276204
Warren, S., & Brandeis, L. (1989). The right to privacy. In Killing the Messenger (pp. 1-21). Columbia University Press. https://doi.org/10.7312/gold91730-002
Weiss, S. (2009). Privacy threat model for data portability in social network applications. International journal of information management, 29(4), 249-254. https://doi.org/10.1016/j.ijinfomgt.2009.03.007
Published
2022-07-14
How to Cite
Chowdhury, M. S. A., Islam, M. S., Haque, M. S., Chowdhury, M. S. R., & Hossain, M. E. (2022). CUSTOMER TRUST IN E-BANKING DURING COVID-19 PANDEMIC IN BANGLADESH. Indian Journal of Finance and Banking, 10(1), 45-53. https://doi.org/10.46281/ijfb.v10i1.1772
Section
Regular Research Article/ Short Communication Article
Copyright (c) 2022 Md. Shahnur Azad Chowdhury, Md. Shahidul Islam, Md. Shariful Haque, Mohammad Shyfur Rahman Chowdhury, Mohammad Emdad Hossain
This work is licensed under a Creative Commons Attribution 4.0 International License.
