Understanding Consumer Challenges and Bank Strategies in the Adoption of E-Banking: A Psychosocial Perspective in the Covid-19 Era

Abstract

The COVID-19 pandemic fueled digital banking adoption in India. The relevance of traditional banking has diminished as consumers have chosen safer and more contactless options. This rapid shift exposed psychological barriers, including trust deficits, emotional disconnection, and perceived technological complexity. Despite banks investing in security upgrades and user education, gaps remain in aligning these efforts with evolving consumer sentiments. This study examines the dual challenge of functional efficiency and emotional trust in the adoption of e-banking. Guided by two key objectives — identifying consumer challenges and assessing psychological shifts both before and after the pandemic — the survey was conducted online with 210 respondents. Using descriptive statistics and pairedsamples t-tests in SPSS, the study analysed 10 variables, including trust, convenience, emotional response, and perceived control. Findings reveal statistically significant changes in experience, convenience, confidence, social influence, emotional reactions, user control and future intent post-pandemic. However, emotional adaptation did not fully translate to satisfaction. Key issues include functional dissatisfaction, perceived control and trust. The study concludes that while banks have advanced in usability and security, emotional-functional dissonance still limits user loyalty and engagement. Banks must embed empathy, transparency and user empowerment into their digital strategies. Future research should adopt longitudinal designs and focus on vulnerable populations for a more comprehensive understanding.