Role of Internet in Value Creation of Banking Services: A Study on Private Commercial Banks (PCBs) in Bangladesh

Abstract

Purposes: The main purpose of this study is to determine how Banking services is creating values for customers through Internet and why people use or do not use Internet Banking systems of Private Commercial Banks (PCBs) of Bangladesh. Methodology: For understanding role of internet in value adding services of banking industry especially in PCBs in Bangladesh, a conveniently sampled survey was conducted over 157 educated customers of PCBs at the urban areas of Sylhet. Data were collected from the respondents personally through a structured questionnaire. For analysing statistical significance of the collected data, statistical tool SPSS is used. Major Findings: Among all this customers, only 48 respondents use Internet Banking in their personal banking transactions. Majority of the respondents are 20 – 35 years old and most of them are male. Most of the users of Internet Banking are from private services. By analysing collected data, the derived findings is that though Internet banking is creating more values but it is not adopted by the significant portion of the customers because of some risks and concerns associated with it. Some customers think that it is expensive and not secured enough. However, I-Banking service provider’s banks should take more meaningful promotional strategies to convince customers about the advantages of I-Banking by which all types of banking transactions can be conducted. Type: Research Paper