ADOPTION AND USAGE FREQUENCY OF DIGITAL BANKING SERVICES AMONG URBAN CONSUMERS IN GUJARAT

Abstract

The evolution of digital technology has significantly redefined the banking scenario in India, making e-banking an essential service channel for customers. This study examines the utilization of e-banking services among 640 customers from four major cities in Gujarat, covering both public and private sector banks. The research evaluates consumer usage behavior across eight key online services, including mobile recharge, utility bill payments, online ticket booking, shopping, money transfer, and investment activities. The mode of access, number of bank accounts, and perceived security of e-banking services are also analyzed to determine the level of digital banking adoption. The findings indicate that services such as mobile recharge, electricity bill payments, money transfers, and online shopping are widely used, particularly through mobile-based platforms. However, lower engagement is noted for telephone bill payments and air ticket bookings, primarily due to limited requirements or lack of awareness. Private sector bank customers display a higher inclination toward e-banking utilization compared to those of public sector banks. Despite the growing reliance on digital transactions, nearly one-third of respondents still perceive e-banking as insecure, indicating a need for enhanced digital security measures and awareness programs. The study concludes that while e-banking adoption in Gujarat shows promising progress, further improvements in technological support, customer education, and trust-building initiatives are necessary to enhance user experience and promote inclusive digital banking growth.