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

Summary/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.

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