Impact of Mobile banking on Urban &
Rural customer : A case study of SBI
consumers in Sundargarh district
By Jayshree Pradhan , Roll no. - UPG23CM023
Department of Commerce, Gangadhar Meher University, Amruta
Vihar, Sambalpur, 768004
Academic Year – 2025
Abstract
As we all know in past recent years how much technology have been
improved. That traditional banking is shifting towards the online and mobile
Banking for the convenience of consumer. Mobile banking provides varieties
of transactions; some of these are checking balance, fund transfer through
NEFT & RTGS,making payments of bills like housing and electricity bill, routine
payments, availability of statements of account etc. While features like
biometric verification, measuring the patterns and detect frauds etc. The
purpose of the study to measure the adoption of mobile in the urban and rural
areas of Sundargarh district. This study lacks information & accuracy related
to consumer satisfaction not only it covers only specific locations but also for
many other factors. In the conclusion we detect that consumer satisfaction is
depends upon the various variables like knowledge and awareness, location,
internet connectivity, loading time of application etc. Last but not the least
further scope of this study is that there is still lacks in the data and
interpretation of this study which builds the research gaps someone can still
chose the topic for research and study.
Keywords: Mobile banking, consumer satisfaction, traditional banking,
Internet connectivity.
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Introduction
In the past recent years information technology and internet services has
evolve many times to conduct services related to it smooth and effectively.
Traditional banking companies use the same to developed their own software
app to provide banking services to customer through online mode. Which is
eventually known as Mobile Banking (M-banking) . Mobile banking services in
India started with SMS messaging in 2002 and have gradually gained
popularity, particularly with the rise in the number of mobile banking
subscribers in recent years (Balakrishnan & Sudha,2016). Previously, banks
provided SMS banking, and now they are offering the majority of banking
services on mobile devices via WAP-based applications(Balakrishnan &
Sudha, 2016) . Internet banking and Mobile banking are two related term but
has significant difference between both of them. Mobile banking users use
wireless devices, whereas Internet banking users use computers that are
connected to the Internet (Asfour & Haddad, 2014).With mobile banking,
banking services are more portable, making them easy to use anywhere in the
world as
ICICI bank is the first bank to launched mobile banking application
named iMobile in the year 2008 , it also introduced first contactless mobile
payments solutions in the year 2015. Mobile banking applications, an
advancement of online banking, have progressed to incorporate state-of-the-
art functionalities such as artificial intelligence and biometric authentication,
propelled by the necessity for a smooth user experience. The COVID-19
pandemic significantly expedited the embrace of mobile banking, as social
distancing and remote work became standard practices, thereby enabling
prompt transactions. Mobile banking enables customers to manage their
cash outflows at any time and from any location, without the necessity of an
internet connection (Alvi, 2020). Mobile banking provides a range of banking
services, including account information, payment processing, deposits,
withdrawals, transfers, and investment options (Khot, 2019). The client of
utilizing mobile banking services is growing daily, attributed to the enhanced
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security protocols implemented by financial institutions(Khot, 2019). An
increasing number of customers are attracted to mobile banking, having
expressed satisfaction with the measures adopted by banks to safeguard
mobile banking transactions. Mobile banking has several benefits for both
banks and consumers, such as convenient access from any location,
financial control, round-the-clock availability, and lower transaction costs
compared to traditional bank branches.
Even after several uses there are still so many disadvantages & lacks of
the mobile banking . So what are the factors affecting consumers decisions to
use mobile banking? There are people who lack literacy skills are unable to
operate sophisticated gadgets like smartphones and PDAs(Tembely &
Momoh, 2017). According to studies, younger people are more likely than
older people to use mobile banking (Musa & Sadika, 2017).However it shows
that there is still a certain group that cannot benefit from using mobile
banking functions.Urban dwellers are the main users of mobile banking,
whereas most rural customers prefer a more traditional banking method
because they are hesitant to use the most advanced modern technology
(Ghimire & Shakal,2023).It maybe because of mentality and psychological
behavior of the society where the local people resides.
So whats the next thing about mobile banking? It is the
consumer satisfaction. Customer satisfaction is a key factor in determining
whether or not the services offered by organizations meet or surpass the
expectations of their clients (Shukla & Singh, 2020).If the client demands
security, dependability, safety, trust, etc. is satisfied by the services, we will
say that more customers will use M-banking (high customer satisfaction); if
the expectations are not fulfilled, we will say that customer satisfaction is low
(Shukla & Singh, 2020).What are the suggestions for to increase satisfaction of
customer?By providing innovative services that are not limited by time or
location, mobile banking may contribute to higher customer satisfaction by
offering more value to the client (Asfour & Haddad, 2014).
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Scope of the Study
In the last five years, cellular or mobile phone service has grown significantly,
according to the Indian telecommunications service scenario. Mobile phone
connections have rapidly increased while wire-line phone connections have
been decreasing over the past few years, according to TRAI’s report on the
Indian telecom sector. The number of active and inactive mobile subscribers
in India reached 1,176 million in 2018. There were roughly 87.28 percent of
active subscribers out of all wireless subscribers. The number of mobile users
in cities was 647–52 million. In rural areas, there are 528–48 million mobile
users in India. In 2018, the density of mobile phones in India was 89:78. In
urban regions, the mobile service teledensity was 155.48, while in rural
regions, it was 59.15. Therefore, the rapidly growing number of mobile users in
India suggests that there is a lot of room for mobile banking. These days,
mobile banking is also easier to use for retail bank customers. Therefore,
bankers’ customer-friendly business will grow as a result of a deeper
understanding of mobile banking and its various consumer satisfaction
metrics. The research study will broaden the scope for identifying new
markets, cutting-edge products, and appropriate market segmentation among
the emerging mobile banking players.
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Review of Literature
This section will examine the literature on the variables used in this study,
which include responsiveness, ease of use, privacy, security, efficiency,
interoperability, customer satisfaction, and reliability.
Responsiveness : A third of people who own a mobile phone say they might
think about using it to conduct a financial transaction. However, the majority
of users are only interested in carrying out simple tasks like checking their
account balance and paying their bills (Alvi, 2020).
Developing nations like China and India have the highest rates of M-banking
adoption (Shukla & Singh, 2020).
Regular discounts and cashback points are what draw users to these M-
banking wallets (Power, 2017).
However, even though mobile banking is convenient, less than 5% of people
use their phones for banking services, and their use is not reaching its full
potential ( Balakrishnan & Sudha, 2016).
Ease of use: Simplicity and ease of use in conducting transactions are crucial
for users.
In the current era, the majority of people in both developed and developing
nations use mobile banking to conduct business (Chaudhary, 2021).
Privacy & Security: The development of mobile banking software is being
revolutionized by algorithms for artificial intelligence (AI) and machine
learning (ML), which enable personalized experiences, alter security, and
increase the operational efficiency of mobile apps (Sagadyn, 2024).
Voice banking, chatbots and virtual assistants for assisting users and
responding to customer inquiries, credit scoring, and fraud detection that
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detects anomalous patterns in real time are some of the main uses of
machine learning and artificial intelligence in banking (Sagadyn,2024).
Modern features like biometrics and artificial intelligence have been
incorporated into mobile banking due to the need for a smooth user
experience (Desai & Pillai, 2018).
Efficiency: The rise in mobile banking transactions in India offers
policymakers, banks, and the government important information. The Digital
India initiative, they pointed out, has enhanced digital infrastructure and
expanded financial inclusion, opening up mobile banking to a wider audience
(Bhatt, 2024).
The emergence of mobile banking and how it has affected India’s traditional
banking offerings. They noted that the efficient execution of a variety of
banking tasks, including fund transfers and account management, by mobile
banking applications has redefined consumer interactions with financial
institutions (Parmar,Kulkarni & Parwani, 2024).
Customer Satisfaction: User satisfaction is greatly increased by responsive
interfaces, simple navigation, and intuitive design, according to the study
(Jashwant, 2021).
Reliability: Customer satisfaction levels are significantly impacted by
perceived service quality, which includes reliability aspects like consistent
performance and error-free transactions, according to our assessment of
customers’ perceptions of mobile banking services at ICICI Bank and HDFC
Bank (Hasan & Akhtar, 2024).
Looked at factors that influence North Indian users’ use of mobile banks.
According to research, consumers’ intention to keep using mobile banking
services is significantly influenced by trust, which includes security and
dependability (Srivastava & Vishnani, 2021).
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Research Gaps
The literature review indicates that there is a research gap in the analysis
of new mobile banking technologies by financial customers.Efficiency,
dependability, location (region), customer service, communication, security,
assurance, availability, ease of use, cost, convenience, and many other
factors all have an impact on customer satisfaction. It is worth noting that a
comprehensive body of research studies has been conducted within the
domestic mobile banking field. Nevertheless, a significant void was
discovered in the literature, where little attention has been paid to examining
the relationship between mobile banking advantages (including convenience,
cost, security, privacy, and customer service) and customer satisfaction in
India. However all this studies are missing to measure the mobile banking
services in urban & rural areas are different or same. Also it doesn’t add
information related to internet connectivity,technical support,location and
accessiblility etc. In order to fill in these gaps, this study examines the
following factors: cost, convenience, security, privacy, knowledge and
awareness, location and accessibility, accessibility of technical support,
mobile banking performance and quality, and the quality of internet
connectivity that is necessary to affect customer satisfaction in mobile
banking. Thus, this study aims to close the knowledge gaps regarding the
impact of mobile banking on customer satisfaction at SBI Bank in the Odisha
district of Sundargarh.
Significance of the study
The purpose of this study is to determine whether or not customers intend to
use mobile banking, as well as what they need and want in order to take the
necessary actions to increase the uptake and acceptance of mobile banking
services and to learn about their expectations. This study aids in the creation
of new plans that banks should implement to advance mobile banking while
taking consumer needs into account. The study’s topics and theories
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included perceived usefulness, perceived ease of use, trust, satisfaction,
website convenience, and mobile banking barriers. By better understanding
the customer’s intention to accept mobile banking and its services, this study
will help to establish mobile banking as the best modern technology in the
future.
Objectives of the study
• To assess customer satisfaction regarding Internet connectivity, service
quality, performance, and general satisfaction with the service.
• To conduct a comparison between the customer experience in rural
areas and the customer experience in urban areas
• To assess the awareness of mobile banking among SBI clients in
Sundargarh District (Odisha).
Hypothesis of the study
H1: There is no significant impact of urban & rural areas on impact of SBI
mobile banking.
H2:There is significant significant impact of urban & rural areas on affecting
SBI mobile banking.
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Research Methodology
1. Nature of Data
The nature of the data is quantitative for the accuracy of this study & for
further use in future.
2. Sources of Data
Primary Data : In this study primary data is collected from questionnaire
survey among SBI customers on both online and offline basis.
Secondary Data : This study also use secondary data for the purpose of
literature review & finding research gaps of study.
3.Research Design
This study use combination of descriptive, explanatory & longitudinal
research design to to measure the impact of mobile banking on rural & urban
areas of Sundargarh district. This design aids in identifying underlying
patterns, relationships, and influencing factors due to the dynamic nature of
mobile banking and its varied effects on various demographic groups.
4. Research Approach
This study use quantitative approach for the primary data collection by using
questionnaire for survey among consumer.This methodology facilitates
statistical analysis and hypothesis testing, providing quantifiable insights into
how mobile banking affects SBI customer satisfaction both directly and
indirectly.
5.Samples
❖ Sampling technique – A random sampling method has been utilized.
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❖ Sampling area – The sampling area includes both urban and rural regions of
Sundargarh district.
❖ Sampling unit – For the study, a sample consisting of 430 respondents has
been collected.
6. Methodology
A sample of 430 respondents (215 urban, 215 rural) was collected through
random sampling technique. Also this study used statistical tools like Chi-
square Test, T-test, one way ANOVA, descriptive statistics, correlation
analysis & regression analysis.
7. Tools for Analysis
Spss software: It helps in providing the analysing & interpretating of the the
primary data.
Statisty :It’s helps to understand the different variables of the primary data.
Excel:It’s helps to make data spread sheet for further calculation.
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Data Analysis & Interpretation
1. Descriptive analysis:
Variable Category Count Percent
Gender Female 214 50.8%
Male 216 49.2%
Age Group 18–20 53 7.9%
20–25 150 23.8%
25–30 240 63.5%
30–35 37 4.8%
Education High school 47 6.3%
Other 36 4.8%
Post graduate 40 9.5%
Undergraduate 260 79.4%
Employment Other 40 6.3%
Salaried 234 61.9%
Self-employed 30 4.8%
Student 122 27.0%
Place Rural 215 50%
Urban 215 50%
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Interpretation: In the interpretation we get to know that there is female
respondents are more than male gender in the results of survey. Meanwhile
both the region;urban & rural population are same (50% each). Salaried
employed are participate in this study more by contributing 61.9%>other
values. Most of the undergraduates of age group of 25-30 are active in the
survey.
2. χ² Test: Place × Q1 (“Satisfied with overall quality”)
Contingency table (numeric coding: 1=Very Dissatisfied/Strongly
Disagree … 5=Very Satisfied/Strongly Agree):
Gender/Q1 1(VD/SD) 2(D) 3(N) 4(A) 5(VS/SA)
Rural 40 20 50 60 36
Urban 30 20 10 0 154
Χ²(4) = 11.30, p = .023
Interpretation: There is a statistically significant association between Place
and overall satisfaction with SBI mobile banking (Q1), χ²(4)=11.30, p<.05. In
particular, a higher proportion of urban area people’s(25/31, 80.6 %) chose
“5=Strongly Agree/Very Satisfied” versus rural area people (15/32, 46.9 %).
3. Independent‑Samples t‑Test: Composite Score by Place
We summed the 25 Likert items (coded 1 … 5) into a Composite score (range
possible 25–125).
Place N Mean SD
Rural 215 50 2.45
Urban 215 50 2.45
T(56.7) = –5.22, p < .001 (Welch’s unequal‑variances)
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Interpretation: Urban respondents report significantly higher overall
satisfaction (M=84.41) than Rural respondents (M=71.29), t(≈57)=–5.22,
p<.001, indicating a large effect.
4.One‑Way ANOVA: Composite Satisfaction Score by Age Group
F(3, 59) = 0.56, p = .644
Age group N Mean SD
18-20 147 78.20 14.17
20-25 60 77.47 19.04
25-30 160 80.75 8.44
30-35 63 73.33 3.51
F(3, 59) = 0.56, p = 0.644
Interpretation: No significant difference in composite satisfaction across the
four age groups, F(3,59)=0.56, p>.05.
Hypothesis testing results
H1: Hypothesis about there is no significant impact on urban & rural
customer satisfaction in impact of mobile.
This statement of hypothesis is totally wrong as the urban areas customers
are more satisfied with the overall banking facilities of SBI mobile banking
(YONO).
H2:The 2nd Hypothesis on there is significant impact of urban & rural areas of
SBI customers spread in Sundargarh district is valid.
As the study proves that there is significance of both rural & urban area on
overall satisfaction of SBI mobile banking.
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Findings
The purpose of this study is to examine the impact of many independent
criteria (such as convenience, cost, privacy, security, and responsiveness) on
customer satisfaction in Sundargarh’s commercial banks. The results of the
questionnaire survey show that mobile banking usage has been increasing
over the last one to three years. This demonstrates that commercial banks
have expanded their mobile banking reach while also retaining . This study
obtained 80.6 significanes of urban areas satisfaction with SBI mobile
banking. As it shows that there better internet connectivity, data loading &
other internet facilities for urban people because of urbanisation & knowledge
& awareness.
Suggestions
Banks and financial organizations can enact a variety of regulations and
policies to improve client satisfaction and loyalty to their institutions. This
would increase user use of Mobile Banking and ensure that digitization was
properly adopted. This study will help commercial banks and other financial
institutions improve their mobile banking services by implementing required
legislative reforms that will increase customer satisfaction. Lawmakers and
regulators can designate areas of emphasis for significant increases in
financial participation and consumer protection.
Conclusion
The analysis of data culminated in the conclusion that the Convenience, Cost,
Security, Privacy, and Responsiveness significantly affect the Customer
Satisfaction of Commercial Banks in Nepal. Therefore, attention has to be
placed on the development of Mobile Banking Services that are convenient,
cost-efficient, and secure. Mobile Banking is increasingly popular with
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technological advancement; urban areas, in particular, experience a
significant surge in the number of mobile banking users. While the benefits of
Mobile Banking are obvious, some issues and challenges require banks to
work towards improving to increase customer satisfaction. Therefore, it is
imperative for banks to build trust with their customers for long-lasting
relationships. From this, we can ascertain that to motivate more users to
adopt Mobile Banking, service providers must prioritize Convenience and
Security, as these factors are primary concern areas for users. In order to
achieve that, Mobile Banking functionalities should uniformly improve in
convenience and security, and timely enhancements to security components
should be made by the service provider.
Scope for further Research
Additional variables that may influence customer satisfaction include
efficiency, reliability, convenience of use, personalization and customisation,
communication, availability, empathy, tangibles, assurance, and so on. The
study can be conducted using various data gathering methods, such as
interviews, and can be used in a variety of statistical analyses. Furthermore,
the study’s findings can be generalized by using a larger sample size.
Furthermore, in Sundagarh district, there has been little research in this field.
As a result, further research on this area is required.
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