atul research paper

8/11/2019 ATUL Research Paper

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Study to analyse customers take on E-banking services

Abstract

The e-banking sector has many players who claim to offer a number of services. A first handsurvey and research was desired as to get to know the use and reaction of customers using e-

banking. The objectives were to find the number of customers who were satisfied by the e-

banking services. The study was done based on data collected from 100 respondents from the

city of Pune who were mostly students, working professionals and housewives aged 18 yearsto 48 years. The questionnaire sought their responses regarding their current e- banking


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transaction returns have been analysed for the purpose of this study. She found that

the share of electronic transaction was on increasing trend as more and more people

use internet nowadays. She also found that e-banking was mostly used by working

professionals in the age bracket of 18-35 years. E-banking is not bound by time and

geographical barriers, making it convenient to use. She concluded that the only way to

connect to customers at any time is through internet applications. Hence, it was beconcluded that e- banking is reaching all sectors and segments of the society making it

more preferred option for banking.

2. Gita K.S and V. malarvizhiconducted a study on acceptance of e-banking among

customers, in June 2011. Their method of research was collecting data from 200

banks customers belonging to 19 commercial banks in the city of Bangalore. And

also survey instrument used was a structured questionnaire. They found that security

is the most important attribute for internet banking customers in India. The selection

of an internet banking service provider is affected by security, reliability and privacy.Security which involves protecting customers from risks of fraud and financial loss

has been another important issue in safe use of the internet.

METHODOLOGY

The topic selected for the study was Analyse customers take on E-banking services. The

topic was selected keeping in mind that with the advancement in technology, lot of

transactions are taking place over the internet using e-banking services. E-banking is

becoming a major part of e-commerce. The sample respondents for the study was stratifiedrandom sampling. The total size of the sample was 100 respondents from the urban sector

including college students, working professionals and housewives. To test the feasibility of

the tool of data collection a pilot study was conducted on 10 respondents. A questionnaire of

8 questions was made and administered. Based on the results, certain modifications were

made and final questionnaire was prepared. Primary data was collected by researchers

themselves by means of a questionnaire. A copy of the sample questionnaire is attached

under Chapter 8 of the Report. Secondary data was collected through the internet, journals.

Hypothesis

Based on the results of the pilot study the following hypothesis were formulated:

1) Use of e-banking services is increasing day by day

2) Dependancy of people on e-banking increased over traditional banking

RESULTS

Table 1: Frequency of use of e-banking services

S No Frequency of Usage Percentage


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1 Daily 19

2 Once or twice a

week

43

3 Once or twice a

month

38

Total 100

Figure 1: Frequency of use of e-banking services

DISCUSSION:

When respondents were asked about the use of e-banking services majority of them (43%)used once or twice a week and 38% used e-banking services once or twice a month. 19% of

the respondents used these services daily. From this it is evident that the people using e-

banking services are increasing day-by-day.

The above results accept hypothesis 1st which states that Use of e-banking services is

increasing day by day

The above result is in correlation with Rimpi Kaur who in May, 2013 also found out that

share of e-banking was on increasing trend as more people use internet now a days.

Table 2: Choice of e-banking services over traditional banking

S No Choice Percentage

1 Yes 77

2 No 11

3 May be 12

19

38

43Daily

Once or twice a

month

Once or twice a week


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Total 100

Figure 2: E-banking over traditional banking

Discussion: When respondents were asked about the choice of e-banking services over

traditional banking services, majority of them (77%) preferred e-banking. Only a few of them

(11%) preferred traditional banking.

The above result accept hypothesis 2ndwhich states that Dependancy of people on e-

banking increased over traditional banking.

Table 3: Bank Preferred for e-banking transactions

S No Bank Name Percentage

1 Axis 12

2 HDFC 20

3 ICICI 26

4 State Bank Of India 23

5 Standard Chartered Bank 01

6 Others 18

12

11

77

May be

No

Yes


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CONCLUSION

Regarding bankers perspectives on e-banking activities of customers, the study reveals that

there are a lot of people who use the e-banking services, but a lot more awareness in Indian

customers regarding use of e-banking services should be inculcated. But, the guidance andpersuasion by bankers does promote the use of such services amongst the customers. There is

greater incidence of e-banking usage among the middle age men (25 to 50 years of age); and

women customers use such services much less frequently. Occupation-wise, the

professionals, followed by business class, make more use of e-banking services. This helps us

in proving both our 1st objective that the e-banking services is gaining popularity. Maximum

number of sampled bankers (57.29 percent, taking very high and high categories together) is

of the view that customers are increasingly switching over from traditional banking to e-

banking. Barely 17% of people are still using the traditional way of banking. This proves the

2nd objective that dependence on e-banking is increasing.

It can be seen that there is still a lot ofperceptual blocking which hampers the growth its the

normal tendency of a human not to have changes work on the old track, thats also one of the

reason for the slow acceptance of internet banking accounts but as the time is changing and

with the passage of time people are accepting technology. This proves our 1st hypothesis that

use of e-banking is increasing day by day. This also proves how the world has been changing

from the traditional banking to modern banking and e-banking has been gaining popularity

slowly washing away the traditional banking. This proves the 2nd hypothesis that the

dependence on e-banking has increased over the e-banking services.

RECOMMENDATIONS

Going through the survey the main problem lies that still customer have a fear of

hacking of accounts and thus do not go on for internet banking. Banks are trying their

level best by providing the best sec uri ty opt ion s to the cus tomers but then to t here i s

lot of factors which betrays a customer from opening an internet bank account. Banks

are providing free internet banking services also so that the customers can be

attracted.

BIBLIOGRAPHY

1. Sharma H. (2011). Banker's Perspective on e-banking, NJRIM, Vol. 1, No. 1, pp. 71-

84.

2. Gurusamy S.(2001). Banking in the New Millennium: Issues, Challenges &Strategies,

Kanishka Publishers & Distrubutors, New Delhi, pp. 1-62.

3. Khan and Sreekumar.(2009). Service quality evaluation in internet banking: an empirical

study in India, Int. J. Indian Culture and Business Management, Vol. 2, No. 1,pp. 30-46

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