Electronic Banking Challenges in India: an Empirical Investigation

  • Majid KarimzadehCorrespondent, Syed Nagar
  • Published 2012


Increased competition, changing business environments, globalization and the advancement of Information and Communications Technology are the important factors that have forced Banking and Financial services to change. Demand for financial services is changing rapidly and customer behavior regarding these services is also adapting rapidly. Therefore, with the passing of the traditional banking sector to electronic banking, new strategies have become necessary in order to attract and retain existing customers. Despite enormous pressures for change and investment in Information Technology in the Banking field, if these investments do not work in accordance with the principles of investment, they will fail. This investigation will review available sources and studies conducted in this field, and seek to find out the main factors and challenges posed in the development of electronic banking after a relatively long period of adoption in India. This paper provides a possible six factor model centered upon the following: infrastructure, knowledge, legal-security, socio-cultural, economic and management and banking issues. The results of the study indicate that legal and security, socio-cultural, and management and banking issues are accepted as challenges for the development of e-banking but that there is less awareness regarding new technologies and unsuitable software which are ranked respectively as the highest and lowest obstacles in India.

Cite this paper

@inproceedings{KarimzadehCorrespondent2012ElectronicBC, title={Electronic Banking Challenges in India: an Empirical Investigation}, author={Majid KarimzadehCorrespondent and Syed Nagar}, year={2012} }