DEPOSIT BEHAVIOR TOWARDS DIGITALIZATION IN THE BANKING SECTOR

As digitalization continues to transform the banking sector, understanding the factors that influence customers’ deposit behavior in the digital era becomes outstanding for banks and financial institutions. This study investigates the impact of Digitalization (convenience, reliability, security, user-friendliness, and self-efficacy) as independent variables on deposit behavior, the dependent variable, in the context of digitalization. Primary data was collected from respondents in Butwal Sub-metropolitian city using a structured questionnaire. This study has developed a conceptual model to examine the significant factors that influence deposit behavior. Using a multiple regression analysis, the data was analyzed from a convenience sampling technique, having 216 sample of banking customers to examine the relationships between the identified factors and deposit behavior. The results revealed significant relationships between reliability and self-efficacy, and deposit behavior, indicating their pivotal roles in shaping customers’ preferences when it comes to depositing money through digital channels. Surprisingly, security, convenience and user-friendliness showed an insignificant relationship with deposit behavior, suggesting that while important for overall digital banking adoption, they might not be the primary drivers influencing deposit behavior specifically. By understanding the factors that drive deposit behavior, banks can customize their offerings to meet customer expectations, ultimately encouraging a more consistent and satisfactory digital banking experience. Further research is recommended to explore additional factors and conduct more comprehensive analyses to gain a holistic understanding of customers’ behavior in the dynamic landscape of digital banking.