Materials Today: Proceedings xxx (xxxx) xxx

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Materials Today: Proceedings

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A study on effect of various demographic factors on preference of

consumers towards online banking usage
Vijesh Chaudhary a,⇑, Meeta Mandaviya b, Husam Salah Sameen c, Jnaneshwar Pai Maroor d,
Anupama Bharti e
a
Central University of Himachal Pradesh, India
b
Marwadi University, India
c
Business Administration, Bilad Alrafidain University College, Diyala, Iraq
d
Department of Business Administration (JKSHIM), NMAM Institute of Technology, Nitte, India
e
Department of Sociology and Social Work, Himachal Pradesh University, Shimla, India

a r t i c l e i n f o a b s t r a c t

Article history: This paper tries to identify the significant impact of various demographic factors of consumers on the
Received 23 March 2021 preferences towards the selection of online banking in day to day life. For that the primary research
Received in revised form 5 April 2021 was conducted by designing the structure questionnaire by asking different open ended and close ended
Accepted 16 April 2021
questions to the consumer for the usage of online banking. The findings of the paper is that majority of
Available online xxxx
the consumer belongs to the male having the basic educational qualification of graduation or post-
graduation. There is significant difference among few demographic factors with the preferences of con-
Keywords:
sumer towards the online banking. The statistical tools applied for these are frequency distribution,
Demographic factors of consumer
Online banking
crosstab and chi square test.
Frequency of usage Ó 2021 Elsevier Ltd. All rights reserved.
Annual income Selection and peer-review under responsibility of the scientific committee of the 1st International Con-
Occupation of consumer ference on Computations in Materials and Applied Engineering – 2021.

1. Introduction 2. Literature review

The reputed dominant role of usability attributes (e.g., utility
and ease of use) in predicting customer acceptance of a technolog-
ically driven innovation (e.g., online banking — OB) is reexamined
using an expanded framework that, in addition to usability, incor-
porates the social and psychological dimensions of the adoption
method. In addition, given that OB has been around for nearly a
decade, it is past time to refresh the profile of potential adopters.
The findings highlight the importance of social factors as predictors
of potential OB adopters, while the demographic profile of prospec-
tive OB adopters differs significantly from that of current OB users.
Possible theories are explored, as well as the implications for
clinicians and possible research proposals. The banking sector
has become highly volatile and competitive around the world, as
demonstrated by a cumulative trend toward internationalization,
mergers, takeovers, and banking industry alliances. A variety of
non-banking firms are also making inroads into the banking
industry by providing financial products and services.Fig. 1
⇑ Corresponding author.
E-mail address: vijesh1chaudhary@gmail.com (V. Chaudhary).
Malhotra and Singh [5] showed the ratio of preference for new
technology in banking i.e. online banking with the factors like age
group of customers of bank, ownership of bank, intensity of the
transactions and many more. Banks can increase their market
share by providing online banking facilities easily accessible with
accuracy of transactions and upgraded security level. Gounaris
and Koritos [1] studied the internet banking adoption with the help
of consumer personal characteristics and extended innovation
attributes framework. The adaptability of internet banking was
studied with help of usability attributes. And the study also
focused on other factors mainly social and psychological aspects
that had a significant impact in adoption of internet banking.
Sharma and Sharma [12] analyzed the consumers’ perspectives
pertaining to online banking. There has been technological
advancement in the area of financial services replacing the tradi-
tional methods. Though online banking provides the ease of acces-
sibility but still there are few hurdles that have to be faced while
using or providing online banking services. Proper and appropriate
strategies have to be formulated to enhance the customer loyalty,
retain them and increase the market share.

https://doi.org/10.1016/j.matpr.2021.04.560
2214-7853/Ó 2021 Elsevier Ltd. All rights reserved.
Selection and peer-review under responsibility of the scientific committee of the 1st International Conference on Computations in Materials and Applied Engineering – 2021.

Please cite this article as: V. Chaudhary, M. Mandaviya, Husam Salah Sameen et al., A study on effect of various demographic factors on preference of con-
sumers towards online banking usage, Materials Today: Proceedings, https://doi.org/10.1016/j.matpr.2021.04.560
V. Chaudhary, M. Mandaviya, Husam Salah Sameen et al.
Fig. 1. Consumer Behaviour Matrix.
Chawla and Sehgal [9] examined the awareness of customers
and satisfaction level regarding online banking of internet banking
users. The examination was conducted to probe the awareness per-
taining to online banking and usage of its services and to ascertain
the satisfaction level. According to the analysis age had a signifi-
cant impact for choosing the facilities. Also gender played an
important role for using the services as per the study.
3. Research methodology identification of problem
The basic problem that this study has tried to identify the prob-
lem is that the Preferences of consumer towards the online bank-
ing and in this process what are the difficulties and encounters
that have been confronted by them in the market to actual usage
to provide fast financial evolution by making prompt money trans-
fer with refuge and safety.
4. Scope and significance of the study
The study mainly aims at to try to find out the Preferences of
consumer towards the online banking facility usage from the dif-
ferent set of users to study their estimation and consciousness
amongst them to the online banking facility. The study has also
tried to find out is there any prejudice or influence towards the
usage of online banking ability by looking at the various demo-
graphic factors.
5. Objectives of the study
1. To study the various Demographic factors of the consumers
using Online Banking in
2. To check the significant association between the demographic
profile of consumer and Preferences of Consumer towards dif-
ferent features used by them.
6. Significance of the study
The study will help to find out the most important factors which
has the significant impact on the usage of online banking facility at
the same time it also help to identify the significance association
amongst the various demographic profile of consumers and Prefer-
ence of consumer for the usage of online banking.
7. Variable of the study
Preference of consumers towards online Banking facility i.e.
Accuracy, Accessibility, Control, Ease of Usage, Economical,
2
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Effectiveness, Flexibility, etc. Various demographic profile of a con-
sumer like Age, Gender and Education.
8. Limitation of the study
1. Not all the consumer are ready to reveal the information related
to the banking transaction.
2. This study is restricted towards limited geographical locality so
it cannot generalized at all.
3. This study is limited to only limit to certain parameters i.e. Only
Preferences of consumers towards online banking.
9. Data analysis and interpretation
From the above Table 1 it can be see that majority of the respon-
dents who are using the online banking belongs to the 21–30 years
and 31–40 Years of Age which is almost 85% of the total
respondents.
From the Table 2, it can be interpreted that, Male are 57% and
Female are 43% out of the total respondents of the consumer for
online banking usage.
From the above Table 3 it can be seen that majority of the con-
sumer who are using online banking belongs to the Graduation and
Post-Graduation category which indicates that mainly the edu-
cated users are preferring this mode.
10. Significant association between the demographic factors
and Preferences of consumer towards online banking
From the above Table 4 of Chi Square between the Age and Pref-
erence of Consumers towards online banking, the significance
value of duration of usage and Number of time use have the P value
less than 0.05 which means we need to reject the null hypothesis
which indicates the significant association between the age and
those preferences of consumers. Rest all preferences have P value
greater than 0.05 which means we fail to reject the Null Hypothesis
and there is no significant association between the age and Prefer-
ences of consumers towards online banking.
From the above Table 5 of Chi Square between the Gender and
Preference of Consumers towards online banking, the significance
value of Type of bank used and Number of time use have the P
value less than 0.05 which means we need to reject the null
hypothesis which indicates the significant association between
the age and those preferences of consumers. Rest all preferences
have P value greater than 0.05 which means we fail to reject the
Null Hypothesis and there is no significant association between
the Gender and Preferences of consumers towards online banking.
V. Chaudhary, M. Mandaviya, Husam Salah Sameen et al. Materials Today: Proceedings xxx (xxxx) xxx

Table 1
Age of Consumer.

Age
Frequency Percent Valid Percent Cumulative Percent
Valid less than 20 years 4 2.6 2.6 2.6
21–30 Years 106 69.7 69.7 72.4
31–40 Years 24 15.8 15.8 88.2
41–50 Years 11 7.2 7.2 95.4
51–60 Years 4 2.6 2.6 98.0
Above 60 Years 3 2.0 2.0 100.0
Total 152 100.0 100.0

(Sources: SPSS Output)

Table 2
Gender of Consumer.

Gender
Frequency Percent Valid Percent Cumulative Percent
Valid Female 64 42.8 42.8 100
Male 86 57.2 57.2 57.2
Total 151 100.0 100.0

(Sources: SPSS Output)

Table 3
Education of Consumer.

Frequency Percent Valid percent Cumulative Percent

Valid Schooling 3 2 2 2
Graduation 35 23 23 25
Post-Graduation 74 48.7 48.7 73.7
Professional Course 29 19.1 19.1 92.8
Others 11 7.2 7.2 100
Total 152 100 100

(Sources: SPSS Output)

Table 4 Table 6
Chi Square of Age and Preference of Consumer. Chi Square of Education and Preference of Consumer.

Age * Preferences of Consumer for Online Banking Chi Square P value Education * Preferences of Consumer for Online Chi P
Banking Square value
Age * Type of Bank used 3.232 0.664
Age * Duration of Online Banking 63.489 0 Education * Type of Bank used 7.813 0.099
Age * Mode of Online Banking 3.188 0.671 Education * Duration of Online Banking 7.744 0.805
Age * Number of time Use 33.06 0.005 Education * Mode of Online Banking 3.743 0.442
Age * Frequency of Usage 16.287 0.906 Education * Number of time Use 5.682 0.931
Education * Frequency of Usage 22.316 0.314
(Sources: SPSS Output)
(Sources: SPSS Output)

Table 5
Chi Square of Gender and Preference of Consumer.
Male, having education either graduation or post-graduation, are
Gender * Preferences of Consumer for Online Banking Chi Square P value using online banking for their day to day usage frequently. For
Gender * Type of Bank used 7.007 0.006 which they are giving equal preference to both private and public
Gender * Duration of Online Banking 6.127 0.106 sector banks and mostly using mobile banking as a preference for
Gender * Mode of Online Banking 0.001 0.972
online banking transactions. There is significant association
Gender * Number of time Use 13.065 0.004
Gender * Frequency of Usage 9.035 0.108 between Demographic factors of Online banking consumers and
few preferences towards usage of online banking like Type of Bank
(Sources: SPSS Output)
used, Duration of Online banking and Number of time online bank-
ing used.
From the above Table 6 of Chi Square between the Education and
Preference of Consumers towards online banking, All preferences
have P value greater than 0.05 which means we fail to reject the Null
Hypothesis and there is no significant association between the Edu- CRediT authorship contribution statement
cation and Preferences of consumers towards online banking.
Vijesh Chaudhary: Investigation, Writing - original draft.
11. Findings and conclusions Meeta Mandaviya: Conceptualization, Writing - review & editing,
Supervision. Husam Salah Sameen: Formal analysis, Data cura-
From the study it can be concluded that mostly consumer who tion. Jnaneshwar Pai Maroor: Conceptualization. Anupama
are using online banking are young below 40 years of age, mostly Bharti: Writing - review & editing.
3
V. Chaudhary, M. Mandaviya, Husam Salah Sameen et al.
Declaration of Competing Interest
The authors declare that they have no known competing finan-
cial interests or personal relationships that could have appeared
to influence the work reported in this paper.
References
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and consumer personal characteristics as predictors of internet banking
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[12] N. Sharma, G. Sharma, Customers’ Perspectives Regarding e-Banking: An
Empirical Investigation, IUP J. Manag. Res. 10 (4) (2011).
Materials Today: Proceedings xxx (xxxx) xxx
Further reading
[2] C. Fernandes, R. Awamleh. Diffusion of internet banking amongst educated
consumers in a high income non- OECD country. 2006.
[3] K. Padachi, S. Rojid, B. Seetanah. Analyzing the factors that influence the
adoption of internet banking in Mauritius. In Proceedings of the 2007 Computer
Science and IT Education Conference. pp. 559-574. 2007.
[4] H. Karjaluoto, M. Mattila, T. Pento, Factors underlying attitude formation
towards online banking in Finland, Int. J. Bank Market. 20 (6) (2002) 261–272.
[6] M.G. Salimon, R.Z.B. Yusoff, S.S. Mohd Mokhtar, The mediating role of hedonic
motivation on the relationship between adoption of e-banking and its
determinants, Int. J. Bank Market. 35 (4) (2017) 558–582.
[7] S. Akinci, Sß. Aksoy, E. Atilgan. Adoption of internet banking among sophisticated
consumer segments in an advanced developing country. International journal of
bank marketing. 2004.
[8] I. Bashir, C. Madhavaiah. Consumer attitude and behavioural intention towards
Internet banking adoption in India. 7(1). 2015. 2015. 67–102.
[10] D. Lal, Customer perceptions and satisfaction levels toward internet banking
services of indian banking companies, Scholedge Int. J. Manag. Develop. 2 (6)
(2015) 13–18.
[11] M. Loonam, D. O’loughlin, An observation analysis of e-service quality in
online banking, J. Financ. Servic. Market. 13 (2) (2008) 164–178.