The IUP Journal of Bank Management
E-Banking or Branch Banking? Preference of Senior Citizens in Kerala

Article Details
Pub. Date :May, 2019
Product Name : The IUP Journal of Bank Management
Product Type : Article
Product Code : IJIT21905
Author Name : Ambili Jayachandran
Availability : YES
Subject/Domain : Finance
Download Format : PDF Format
No. of Pages : 11



E-banking has made lives easier not only for banks, but also for customers. In spite of the various advantages of e-banking, the acceptance level of the same among the senior citizens in Kerala seems to be stumpy relative to branch banking. Kerala’s banking customers, especially the senior citizens, have not yet adopted many of the e-banking services. The study tries to find out the type of banking—branch banking or e-banking—that is most preferred by customers belonging to the 50-plus age group category and the reasons for such preference. Survey method is used for the study and a sample of 400 banking customers belonging to “50-plus” age group is chosen through convenience sampling. The study relies on both primary and secondary data. Branch banking is found to be the most approachable form of banking across all age groups since it offers personalized dealings. The only e-banking service that they prefer is ATM for withdrawing cash.


Branch banks are retail outlets situated away from the head or home offices which carry out banking activities just like the head office. They are specially developed so as to meet the needs of the customers and to have a direct and personal contact with them. The new and fast growing business and consumer needs have made banks to adopt some of the technologies into their work system. Computerization was the first step taken on this behalf. This enabled to cut down a lot of paper work which was time consuming (Afuah and Tucci, 2003). Later on, the internet phenomenon and the need to connect and communicate between banks and their subsidiaries brought about core banking. On the side stream, the banking sector also introduced various financial services for the convenience of banking and banking customers such as credit cards, debit cards, Automated Teller Machines (ATM), Electronic Fund Transfer (EFT), internet banking, mobile banking, Real Time Gross Settlement System (RTGS) and many more. These services are clubbed together and called e-banking.