Consumer Behavior of Online Banking in Bangladesh

The quest to embrace new technology to gain advantage in the market gives the bank a new shape called online bank. It has been using worldwide as a delivery channel to meet, acquire new customers and retain existing customers. This wind of change is also blowing over Bangladesh. Now apart from 3 foreign banks, 23 out of 37 local commercial banks are online and 10 banks are in process to become online. But success of an online bank or e-bank does not solely depend on providing online Services; they have to understand the "existing and potential clients", their demography and behavior. This study attempts to understand the behavior of consumers of online banks. For this purpose 300 online bank’ consumers (involved only in personal banking) were interviewed with a structured questionnaire. In addition to that bank personnel were interviewed to get information on what online services they offer. This study ﬁnds that the "existing and potential clients" ages from 21 to 35 years where an overwhelming majority (84%) uses online services and among all the services ATM and POS are mostly used by the online services users. This paper is expected to help the existing and upcoming online banks in understanding the behavior of the "existing and potential clients" and suggest different strategies to better manage the online services.

Keywords: Consumer Behavior, Online Banking, E-Banking, POS, ATM, Consumer Demography

Suggested Citation: Suggested Citation

Mia, Mohammad Abdul Hannan and Rahman, Mohammad Anisur and Debnath, Nitai Chandra, Consumer Behavior of Online Banking in Bangladesh (December 1, 2007). Journal of Business Studies, Faculty of Business Studies, University of Dhaka, Vol. 28, No. 2, December, 2007, Available at SSRN: https://ssrn.com/abstract=2371120