The Interrelationship Between Risk Perception, Customer Expectations and Satisfaction in Digital Banking

Article DOI: https://doi.org/10.57017/jaes.v20.4(90).17

Author(s):

Nagaveni GUDURI K L Business School, Koneru Lakshmaiah Education Foundation, Andhra Pradesh, India
Mohana Krishna IRRINKI K L Business School Koneru, Lakshmaiah Education Foundation, Andhra Pradesh, India
Repalle GIDDAIAH Department of Management Studies, NALSAR University of Law, Hyderabad, India
Reddi Swaroop KOTIGARI Department of Entrepreneurship Education, Entrepreneurship Development Institute of India (EDII), Ahmedabad, India
Venkateswararao PODILE K L Business School, Koneru Lakshmaiah Education Foundation (KLEF), Andhra Pradesh, India

Abstract:

Digital banking has transformed financial services, but customer satisfaction remains influenced by numerous factors such as perceived risks and expectations. While prior research emphasizes trust, usability, and perceived value, limited empirical studies have explored how risk perception and customer expectations jointly shape satisfaction. The present research aims to study the relationship between risk perception, customers’ expectation, and satisfaction in digital banking, and to assess whether customer expectations mediate the effect of risk perception on satisfaction. A descriptive research design was employed, targeting active digital banking users in the Vijayawada–Guntur region. Stratified random sampling selected 285 respondents. Data were collected via a structured online questionnaire using a five-point Likert scale.

Descriptive and inferential analysis, like ANOVA and regression were performed using Microsoft Excel and SPSS. Risk perception significantly impacts satisfaction, primarily through trust- and security-related concerns. Customer expectations favourably impact satisfaction and moderate the relationship between risk perception and satisfaction. Features focusing on convenience like time savings, ease of usability, and flexibility are more satisfaction drivers compared with cost but weak drivers of satisfaction are technical faults and regulatory issues. The study demonstrates that trust, security, and expectation management are key to enhancing customer satisfaction in digital banking. Banks should emphasis on minimising risks, aligning services with customer expectations, and investing in innovation, security, and customer education to foster sustainable adoption and loyalty.

Copyright© 2025 The Author(s). This article is distributed under the terms of the license CC-BY 4.0., which permits any further distribution in any medium, provided the original work is properly cited.

Article’s history: Received 19th of November, 2025; Revised 15th of December, 2025; Accepted 27th of December, 2025; Available online: 30th of December, 2025. Published as article in the Volume XX, Winter, Issue 4(90), December, 2025.

How to cite:

Guduri N., Irrinki, M. K., Giddaiah, R., Kotigari, R.S., Podile, V. (2025). The Interrelationship Between Risk Perception, Customer Expectations and Satisfaction in Digital Banking. Journal of Applied Economic Sciences, Volume XX, Winter, 4(90), 941 – 955. https://doi.org/10.57017/jaes.v20.4(90).17

Conflict of Interest Statement: The authors declare that the research was conducted in the absence of any commercial or financial relationships that could be construed as a potential conflict of interest.

Acknowledgement/Founding: N/A

Data Availability Statement: The data that support the findings of this study are not publicly available due to [reason: privacy, ethical, or legal restrictions], but are available from the corresponding author upon reasonable request.

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