Customer Perspectives on Cybersecurity in Cooperative Banks Manisha Ganpati Patil

Abstract

Cooperative banks in semi-urban and rural areas are increasingly exposed to cyber threats as they adopt digital banking. This study analyzes 400 customer survey responses to assess cyber security preparedness in cooperative banks across Satara, Sangli, and Kolhapur districts. Descriptive statistics reveal that while a majority of customers frequently use digital services and are aware of basic security measures, significant gaps remain in perceived security and communication. For instance, only about half of customers consider internet banking secure, and 14% reported encountering phishing or fraud attempts. Inferential analysis indicates a strong link between user awareness and security outcomes: customers who rated themselves knowledgeable about cyber risks were far less likely to fall victim to fraud (χ²=12.6, p<0.001). A moderate positive correlation was found between cybersecurity knowledge and trust in the bank’s digital security (r=0.29, p<0.05). Regression analysis suggests that proactive customer education by banks is a significant

predictor of customer trust (β≈0.41, p<0.01). Key themes identified include the need for enhanced training and awareness, improved technological safeguards, and robust incident response strategies. The paper concludes with recommendations for cooperative banks to strengthen cyber policies, deploy advanced security technologies, and foster a culture of security awareness to protect customers and build trust in digital banking services.