A STUDY ON CUSTOMER SATISFACTION ON INTERNET (E) … · The paper includes an analysis of...

A STUDY ON CUSTOMER SATISFACTION ON INTERNET (E) BANKING

Sitadevi Ratanchand Nahar Adarsh College

INTRODUCTION:

Customer satisfaction on internet (E) Banking:

A customer satisfaction is an ambiguous and abstract concept. Actual manifestation of the state of satisfaction

will vary from person to person, product to product and service to service. The state of satisfaction depends on

a number of factors which consolidate as psychological, economic and physical factors. The quality of service

is one of the major determinants of the customer satisfaction (Parasuraman, Zeithaml and Barry, 1985; 1998;

Cronin and Taylor, 1994; Gronroos, 1984; Zeithaml, Parasuraman, and Malhotra, 2000; Schefter and

Reichheld, 2000; Gommans, Krishnanand Scheffold, 2001; Yoo and Donthu, 2001 and Loiacono, Watson

and Goodhue, 2002). Many researchers and experts mentioned that, service quality can be enhanced by using

advanced information and communication technology (ICT). Today, almost all banks in are adopted ICT as a

mean of enhance service quality of banking services. They are providing ICT based e-services to their

customers which is called as e-banking, internet banking or online banking etc. It brings connivance, customer

centricity, enhance service quality and cost effectiveness in the Kumbhar V. M.

Introduction of internet (e) banking:

Electronic banking is defined as the automated delivery of new and traditional banking products and services

directly to customers through electronic, interactive communication channels. E-banking includes the systems

that enable financial institution customers, individuals or businesses, to access accounts, transact business, or

obtain information on financial products and services through a public or private network, including the

Internet. E-Banking is also called Internet banking, on-line banking or PC banking. E-Banking may include

ATMs, wire transfers, telephone banking, electronic funds transfers and debit cards. Nowadays, internet

banking sites process customer service inquiries, allow transactions from one account to another, take loan

applications, open new accounts etc. Some provide commercial services and others are full service banks

rushing to get there. In addition to the rapid deployment of electronic bank „branches‟ an entire financial

community has suddenly appeared, offering most and financial service a customer could want. New forms of

money are being coined to pay for transactions, and untraceable payment protocols are being tested and

marketed. As fewer and fewer bank customers visit banks, more and more are using ATMs, home banking

terminals and the internet to do their financial business. This „charge‟ to the internet is an offensive, aggressive

strategy to capture a large share of the financial services market. It is supported by speed of light,



telecommunications, powerful, inexpensive computers and secure encryption. This charge to the internet is

increasing the number of competitors in the market. Technology has introduced new ways of delivering

banking to the customer, such as ATMs and internet banking. Hence, banks have found themselves at the

forefront of technology adoption for the past three decades. Banks began at to look at e-banking as a means to

replace some of their traditional bank functions, e-banking products/services like ATM and electronic funds

transfer were a source of differentiation of banks that utilized them. The evolution of the e-banking industry

can be traced to the early 1970s. Banks began to look at e-banking as a means to replace some of their

traditional bank functions, for 2 reasons. Firstly, branches were very expensive to set up and maintain due to

the large overheads associated with them. Secondly e-banking product/services like ATM and electronic fund

transfer were a source of differentiation for banks that utilized them. Being in a fiercely competitive industry,

the ability of banks to differentiate themselves on the basis of price is limited. Technology has introduced new

ways of delivering banking to the customer, such as ATMs and Internet banking. Hence, it is imperative for

banks to align their strategies in response to changing customers‟ needs and developments in technology.

This study is designed to evaluate electronic banking, more commonly known as e-banking as a strategy and

related methods adopted by selected commercial banks in Botswana to improve the customer satisfaction,

which plays a major part in the service industry. This research involves the study of four commercial banks in

Botswana, these being – Standard Chartered Bank, First National Bank, Barclays Bank and Bank of Baroda.

All these banks are providing e-banking services to their customers. The usual E-banking services provided by

banks are account management; bill payment and presentment; new account opening; consumer wire

transfers; investment/brokerage services; loan application and approval; account aggregation; cash

management ; small business loan applications, approvals, or advances; commercial wire transfers; business-

to-business payments; employee benefits/pension administration etc.

The paper includes an analysis of customers‟ perception towards e-banking services, the quality of e-banking

services provided by the banks and the constraints in achieving customer satisfaction. The focus of the paper

particularly on four delivery channels namely: Automated Teller Machine (ATM), internet banking, tile-

banking and manual banking. The main focus is done on internet banking as it is the delivery channel that

seems to be slowly growing in Botswana after the ATM delivery channel. The study also recommends the

possible and practical additional measures the banks should take in order to achieve maximum customer

satisfaction.



Customers are not entirely satisfied with the quality of service provided by commercial banks in Botswana.

Queuing time is considered reasonable at ATMs but too long in banking halls (The survey on the quality of

banking services – 2000 by Bank of Botswana as reported in the Botswana Gazette). Part of the dissatisfaction

of customers‟ stems from the fact that customers are not aware and knowledgeable about the full range of e-

banking services provided by banks. The decline in the quality of banking services may be attributed to the fact

that there has been an increase in the volume of banking transactions. It is often reported that the grievance

redressed machinery in the banks are not adequate enough to address the issues to the Full satisfaction of the

customers. Therefore, this is a clear-cut indication that commercial banks have to put in more effort into e-

banking services to improve the satisfaction of their customers. The problem presented is to identify where the

delivery channels are lacking in providing satisfaction to customers and what can be done to resolve this

problem.

A research based on electronic banking was chosen because by general observation it was noted that many

people are not very much aware of electronic banking and its services which should not be the case

considering the usefulness and importance of e-banking in this date and time. Thus, in order to promote e-

banking services by making customers more aware of them and determining and highlighting to banks their

shortcomings or problem areas, this research was conducted. This research is a combination of exploratory and

descriptive research as an effort was made to first gain some basic knowledge on e-banking through study of

previous research on e-banking (literature review) and general observation. Also, efforts were made to describe

customers‟ perceptions on internet banking, manual banking, ATM banking and tile-banking by gauging their

perceived importance on these services and their ratings on e-banking services. Also, the research was made

descriptive through the interviews conducted, especially, of the bank staff as information on their attitudes

about e-banking and virtual banking was obtained. This research study considers two main factors: electronic

banking and customer satisfaction. Here we can assume independent variable as electronic banking and the

dependent variable as customer satisfaction. Hypothetical tests conducted to determine how electronic banking

(independent variable) affects customer satisfaction (dependent variable).

It is presumed that e-banking preference is affected by factors such as occupation type and age group thus

these factors are paid importance to and are linked to e-banking to determine whether they really do have an

impact on e-banking. Thus, the objectives established revolved around, age group, occupation type, bank

accounts maintained by customers; internet banking, ATM banking, tile-banking, manual banking. It should

be noted that some of the objectives are created to facilitate testing of the following quarries such as the



advantages and disadvantages that banks face as a result of virtual banking competition; the percentage of

respondents preferring electronic or manual banking; derive statistics to show preference of type of banking

according to age group and occupation type; determine the average frequency of ATM, tale-banking and

internet banking services; usage monthly by bank customer; determine the average time taken by a bank

customer in an ATM; investigate the percentage of respondents willing and not willing to pay higher for e-

banking services; to rank the four e- banking delivery channels according to customer preference; to determine

the average ratings of e-banking services according to different bank and to determine the average ratings of

each e-banking service offered. So far there is no available study on this area in Botswana, as pioneer; this

study nodoubtly enhance the existing research. Hence, Singh et al., (2000) suggested future research avenues

include validating their studies on a set bank in different geographical regions as a case study, in order to

confirm its level of representativeness.

Meaning of internet (e) banking:

Internet (e) banking is one of the truly widespread avatars of E-commerce the world over.

Various authors define E-Banking differently but the most definition depicting the meaning and

features of E-Banking are as follows:

1. Banking is a combination of two, Electronic technology and Banking.

2. Electronic Banking is a process by which a customer performs banking Transactions

electronically without visiting a brick-and-mortar institutions.

3. E-Banking denotes the provision of banking and related service through Extensive use of

information technology without direct recourse to the bank by the customer.

Need for internet (e) banking:

One has to approach the branch in person, to withdraw cash or deposit a cheque or request a

statement of accounts. In true Internet banking, any inquiry or transaction is processed online

without any reference to the branch (anywhere banking) at any time. Providing Internet banking

is increasingly becoming a "need to have" than a "nice to have" service. The net banking, thus,

now is more of a norm rather than an exception in many developed countries due to the fact that

it is the cheapest way of providing banking services. Banks have traditionally been in the



forefront of harnessing technology to improve their products, services and efficiency. They have,

over a long time, been using electronic and telecommunication networks for delivering a wide

range of value-added products and services. The delivery channels include direct dial – up

connections, private networks, public networks etc and the devices include telephone, Personal

Computers including the Automated Teller Machines, etc. With the popularity of PCs, easy

access to Internet and World Wide Web (WWW), Internet is increasingly used by banks as a

channel for receiving instructions and delivering their products and services to their customers.

This form of banking is generally referred to as Internet Banking, although the range of products

and services offered by different banks vary widely both in their content and sophistication.

History of internet (e) banking:

The precursor for the modern home online banking services were the distance banking services

over electronic media from the early '80s. The term online became popular in the late '80s and

refers to the use of a terminal, keyboard and TV (or monitor) to access the banking system using

a phone line. „Home banking‟ can also refer to the use of a numeric keypad to send tones down a

phone line with instructions to the bank. Online services started in New York in 1981 when four

of the city‟s major banks (Citibank, Chase Manhattan, Chemical and Manufacturers Hanover)

offered home banking services using the videotext system. Because of the commercial failure of

videotext these banking services never became popular except in France where the use of

videotext (Minutely) was subsidized by the telecom provider and the UK, where the Preset

system was used.

The UK‟s first home online banking services were set up by the Nottingham Building Society

(NBS) in 1983 ("History of the Nottingham" Retrieved on 2007-12-14.). The system used was

based on the UK's Preset system and used a computer, such as the BBC Micro, or keyboard (Tan

data Td1400) connected to the telephone system and television set. The system (known as 'Home

link') allowed on-line viewing of statements, bank transfers and bill payments. In order to make

bank transfers and bill payments, a written instruction giving details of the intended recipient had

to be sent to the NBS who set the details up on the Home link system. Typical recipients were

gas, electricity and telephone companies and accounts with other banks. Details of payments to

be made were input into the NBS system by the account holder via account holder. BACS was



later used to transfer the payment directly. Stanford Federal Credit Union was the first financial

institution to offer online internet banking services to all of its members in Oct, 1994

Evolution of internet (e) banking:

The story of technology in banking started with the use of punched card machines like

Accounting Machines or Ledger Posting Machines. The use of technology, at that time, was

limited to keeping books of the bank. It further developed with the birth of online real time

system and vast improvement in telecommunications during late1970‟s and 1980‟s.it resulted in

a revolution in the field of banking with “convenience banking” as a buzzword. Through

Convenience banking, the bank is carried to the doorstep of the customer. The 1990‟s saw the

birth of distributed computing technologies and Relational Database Management System. The

banking industry was simply waiting for these technologies. Now with distribution technologies,

one could configure dedicated machines called front-end machines for customer service and risk

control while communication in the batch mode without hampering the response time on the

front-end machine.

Intense competition has forced banks to rethink the way they operated their business. They had

to reinvent and improve their products and services to make them more beneficial and cost

effective. Technology in the form of E-banking has made it possible to find alternate banking

practices at lower costs. More and more people are using electronic banking products and

services because large section of the banks future customer base will be made up of computer

literate customer, the banks must be able to offer these customer products and services that allow

them to do their banking by electronic means. If they fail to do this will, simply, not survive.

New products and services are emerging that are set to change the way we look at money and the

monetary system.

Usage of internet (e) banking:

The rise in the e-commerce and the use of internet in its facilitation along with the enhanced

online security of transactions and sensitive information has been the core reason for the

penetration of online banking in everyday life. According to the latest official figures from the

office of National Statistics ( ONS 2007) indicate that subscriptions to the internet has grown



more than 50% from 25 million in 2005 to 45million in 2007 in India. It has also been estimated

that 60% of the population in India use internet in their daily lives. The fundamental shift

towards the involvement of the customer in the financial service provision with the help of the

technology especially internet has helped to reduce the costs of financial institutions as well as

helped clients use the service at anytime and from virtually anywhere with access to an internet

connection. The use of electronic banking has removed personnel that facilitate the transactions

and has placed additional responsibilities on the customers to transact with the service. The

computerization of the banking operations has made maximum impact on:

1) Internal Accounting System

2) Customer service

3) Diversification of system

Internet (e) banking versus traditional banking:

In spite of so many facilities that Internet banking offers us, we still seem to trust our traditional

method of banking and is reluctant to use online banking. But here are few cases where Internet

banking will turn out to be a better option in terms of saving your money. Stop payment' done

through Internet banking will not cost any extra fees but when done through the branch, the bank

may charge you Rs 50 per cheque plus the service tax. Through Internet banking, you can check

your transactions at any time of the day, and as many times as you want to. On the other hand, in

a traditional method, you get quarterly statements from the bank and if you request for a

statement at your required time, it may turn out to be an expensive affair. The branch may charge

you Rs 25 per page, which includes only 30 transactions. Moreover, the bank branch would take

eight days to deliver it at your doorstep. If the fund transfer has to be made outstation, where the

bank does not have a branch, the bank would demand outstation charges. Whereas with the help

of online banking, it will be absolutely free for you. As per the Internet and Mobile Association

of India's report on online banking 2006, "There are many advantages of online banking. It is

convenient, it isn't bound by operational timings, there are no geographical barriers and the

services can be offered at a miniscule cost."



Impact of internet (e) banking on traditional services:

One of the issues currently being addressed is the impact of e-banking on traditional banking

players. After all, if there are risks inherent in going into e-banking there are other risks in not

doing so. It is too early to have a firm view on this yet. Even to practitioners the future of e-

banking and its implications are unclear. It might be convenient nevertheless to outline briefly

two views that are prevalent in the market. The view that the Internet is a revolution that will

sweep away the old order holds much sway.

Arguments in favor are as follows:

1. E-banking transactions are much cheaper than branch or even phone transactions.

2. E-banking gives consumers much more choice. Consumers will be less inclined to remain

loyal.



Diagram of internet (e) banking system:

Types of internet (e) banking:

Understanding the various types of Internet banking will help examiners assess the risks

involved. Currently, the following three basic kinds of Internet banking are being employed in

the marketplace.

1. Informational:

This is the basic level of Internet banking. Typically, the bank has marketing information about

the bank‟s products and services on a stand-alone server. The risk is relatively low, as

informational systems typically have no path between the server and the bank‟s internal network.



This level of Internet banking can be provided by the banks or outsourced. While the risk to bank

is relatively low, the server or web site may be vulnerable to alteration. Appropriate controls

therefore must be in place to prevent unauthorized alterations to the bank‟s server or web site.

2. Communicative:

This type of Internet banking systems and the customer. The interaction between the bank‟s

system and the customer. The interaction maybe limited to electronic mail, account enquiry, loan

applications, or static file updates (name and address change). Because these servers may have a

path to the bank‟s internal networks, the risk is higher with this configuration than with

informational systems. Appropriate controls need to be in the place to prevent, monitor, and alert

management of any unauthorized attempt to access the bank‟s internal networks and computer

systems. Virus controls also become much more critical in this environment.

3. Transactional:

This level of Internet banking allows customers to execute transactions. Since a path typically

exists between the server and the bank or outsourcer‟s internal network, this is the highest risk

architecture and must have the strongest controls. Customer transactions can include accessing

accounts, paying bills, transferring funds etc.

Features of internet (e) banking:

1. Transactional:

Performing a financial transaction such as an account to account transfer, paying a bill or

applications like applying for a loan, new account, etc.

i) Electronic Bill Presentment and Payment (EBPP):

a. Funds transfer between customers own checking and savings accounts, or to

another customer‟s account.

b Investment purchase or sale.



c. Loan application and transactions such as repayments.

2. Non-transactional:

Online statements, Check links, Chat, Co-browsing etc. Financial Institution Administration-

features allowing financial institutions to manage the online experience of their end users.ASP/

Hosting Administration – features allowing the hosting company to administer the solution

across financial institution.

Advantages internet (e) banking:

1. Convenience:

Unlike your corner bank, online banking sites never close; they‟re available 24hours a day, seven

days a week and they‟re only a mouse click away. With pressures on time and longer travelling

periods, more and more people find it tiresome waiting in queues. People want flexibility, and

Internet banking offers just that.

2. Ubiquity:

If you‟re out of state or even out of the country when a money problem arises, you can log on

instantly to your online bank and take care of business, 24\7.

3. Transaction speed:

Online bank sites generally execute and confirm transactions at or quicker than ATM processing

speeds.

4. Efficiency:

You can access and manage all of your bank accounts, including IRA‟s, CDs, even securities,

from one secure site.



5. Effectiveness:

Many online banking sites now offer sophisticated tools, including account aggregation, stock

quotes, rate alert and portfolio managing program to help you manage all of your assets more

effectively. Most are also compatible with money managing programs such as quicken and

Microsoft money.

6. Cheaper alternative:

With increasing competition, it seems to be the cost factor that is driving banks to offer the

facility. The Internet is still a very cheap alternative to opening a physical branch, and most of

the push seems to be coming from the supply side. The costs of a banking service through the

Internet form a fraction of costs through conventional methods.

7. From snob value to necessity:

A couple of years ago, there was a belief even among bankers that customers opening new

accounts wanted the online banking facility, just to "feel good" and very few of them actually

used the services. Today, bankers believe that the trend from `nice to have' is changing to `need

to have'. The "snob value" of banking with an organization that could offer service on the

Internet has given way to a genuine necessity, he feels. "It all depends on how busy a person is."

Disadvantages of internet (e) banking:

1. Start-up may take time:

In order to register for your bank‟s online program, you will probably have to provide ID and

sign a form at a bank branch. If you and your spouse wish to view and manage their assets

together online, one of you may have to sign a durable power of attorney before the bank will

display all of your holdings together.

2. Learning curves:

Banking sites can be difficult to navigate at first. Plan to invest some time and\or read the

tutorials in order to become comfortable in your virtual lobby.



3. Bank site changes:

Even the largest banks periodically upgrade their online programs, adding new features in

unfamiliar places. In some cases, you may have to re-enter account information.

How internet (e) banking can ease your life:

Indian banks are trying to make your life easier. Not just bill payment, you can make

investments, shop or buy tickets and plan a holiday at your fingertips. In fact, sources from ICICI

Bank tell us, "Our Internet banking base has been growing at an exponential pace over the last

few years. Currently around 78 per cent of the bank‟s customer base is registered for Internet

banking." To get started, all you need is computer with a modem or other dial-up device, a

checking account with a bank that offers online service and the patience to complete about a one-

page application--which can usually be done online. You can avail the following services.

1. Bill payment service:

Each bank has tie-ups with various utility companies, service providers and insurance

companies, across the country. It facilitates the payment of electricity and telephone bills, mobile

phone, credit card and insurance premium bills. To pay bills, a simple one-time registration for

each biller is to recompleted. Standing instructions can be set, online to pay recurring bills,

automatically. One-time standing instruction will ensure that bill payments do not get delayed

due to lack of time. Most interestingly, the bank does not charge customers for online bill

payment.

2. Fund transfer:

Any amount can be transferred from one account to another of the same or any another bank.

Customers can send money anywhere in India. Payee‟s account number, his bank and the branch

is needed to be mentioned after logging in the account. The transfer will take place in a day or

so, whereas in a traditional method, it takes about three working days. VIJAYA Bank says that

online bill payment service and fund transfer facility have been their most popular online

services.



3. Credit card customers:

Credit card users have a lot in store. With Internet banking, customers can not only pay their

credit card bills online but also get a loan on their cards. Not just this, they can also apply for an

additional card, request a credit line increase and God forbid if you lose your credit card, you can

report lost card online.

4. Railway passes:

This is something that would interest all the aim junta. Indian Railways has tied up with

VIJAYA Bank and you can now make your railway pass for local trains online. The pass will be

delivered to you at your doorstep.

5. Investing through Internet banking:

Opening a fixed deposit account cannot get easier than this. An FD can be opened online through

funds transfer. Online banking can also be a great friend for lazy investors. Now investors with

interlinked demit account and bank account can easily trade in the stock market and the amount

will be automatically debited from their respective bank accounts and the shares will be credited

in their demit account. Moreover, some banks even give the facility to purchase mutual funds

directly from the online banking system. So it removes the worry about filling those big forms

for mutual funds, they will now be just a few clicks away. Nowadays, most leading banks offer

both online banking and dime account. However if the customer have there demit account with

independent share brokers, then need to sign a special form, which will link your two accounts.

6. Recharging your prepaid phone:

Now there is no need to rush to the vendor tore charge the prepaid phone, every time the talk

time runs out. Just top-up the prepaid mobile cards by logging in to Internet banking. By just

selecting the operator's name, entering the mobile number and the amount for recharge, the

phone is again back inaction within few minutes.



7. Shopping at your fingertips:

Leading banks have tie ups with various shopping websites. With a range of all kind of products,

one can shop online and the payment is also made conveniently through the account. One can

also buy railway and air tickets through Internet banking.

Internet (e) banking in India:

The Reserve Bank of India constituted a working group on Internet Banking. The group divided

the internet banking products in India into 3 types based on the levels of access granted. They

are:

1. Information Only System:

General purpose information like interest rates, branch location, bank products and their features,

loan and deposit calculations are provided in the banks website. There exist facilities for

downloading various types of application forms. The communication is normally done through

e-mail. There is no interaction between the customer and bank‟s application system. No

identification of the customer is done. In this system, there is no possibility of any unauthorized

person getting into production systems of the bank through internet.

2. Electronic Information Transfer System:

The system provides customer-specific information in the form of account balances, transaction

details, and statement of accounts. The information is still largely of the 'read only' format.

Identification and authentication of the customer is through password. The information is fetched

from the bank's application system either in batch mode or off-line. The application systems

cannot directly access through the internet.

3. Fully Electronic Transactional System:

This system allows bi-directional capabilities. Transactions can be submitted by the customer for

online update. This system requires high degree of security and control. In this environment, web

server and application systems are linked over secure infrastructure. It comprises technology

covering computerization, networking security.



It includes the followings:

ATM

Debit cards

Smart cards

Mobile banking

4. DRIVERS OF CHANGE:

Advantages previously held by large financial institutions have shrunk considerably. The Internet

has leveled the playing field and afforded open access to customers in the global marketplace.

Internet banking is a cost-effective delivery channel for financial institutions. Consumers are

embracing the many benefits of Internet banking. Access to one's accounts at anytime and from

any location via the World Wide Web is a convenience unknown a short time ago. Thus, bank‟s

Internet presence transforms from 'brochure ware' status to 'Internet banking „status once the

bank goes through a technology integration effort to enable the customer to access information

about his or her specific account relationship. The six primary drivers of Internet banking

includes, in order of primacy are:

Improve customer access

Facilitate the offering of more services

Increase customer loyalty

Attract new customers

Provide services offered by competitors

Reduce customer attrition

5. Investing through Internet banking:

Opening a fixed deposit account cannot get easier than this. An FD can be opened online through

funds transfer. Online banking can also be a great friend for lazy investors. Now investors with

interlinked demit account and bank account can easily trade in the stock market and the amount

will be automatically debited from their respective bank accounts and the shares will be credited

in their demit account. Moreover, some banks even give the facility to purchase mutual funds



directly from the online banking system. So it removes the worry about filling those big forms

for mutual funds, they will now be just a few clicks away. Nowadays, most leading banks offer

both online banking and demit account. However if the customer have there demit account with

independent share brokers, then need to sign a special form, which will link your two accounts.

6. Recharging your prepaid phone:

Now there is no need to rush to the vendor tore charge the prepaid phone, every time the talk

time runs out. Just top-up the prepaid mobile cards by logging in to Internet banking. By just

selecting the operator's name, entering the mobile number and the amount for recharge, the

phone is again back inaction within few minutes.

7. Shopping at your fingertips:

Leading banks have tie ups with various shopping websites. With a range of all kind of products,

one can shop online and the payment is also made conveniently through the account. One can

also buy railway and air tickets through Internet banking.

The Indian scenario Indian banks on web:

The banking industry in India is facing unprecedented competition from non-traditional banking

institutions, which now offer banking and financial services over the Internet. The deregulation

of the banking industry coupled with the emergence of new technologies, are enabling new

competitors to enter the financial services market quickly and efficiently. Indian banks are going

for the retail banking in a big way. However, much is still to be achieved. This study that was

conducted by students of IIML shows some interesting facts:

Throughout the country, the Internet Banking is in the nascent stage of development

(more than 50 banks are offering varied kind of Internet banking services).

In general, these Internet sites offer only the most basic services. 55% are so-called

'entry level' sites, offering little more than company information and basic marketing



materials. Only 8% offer 'advanced transactions' such as online funds transfer,

transactions & cash management services.

Foreign & Private banks are much advanced in terms of the number of sites &their

level of development.

Emerging challenges of internet (e) banking:

Information technology analyst firm, the Meta Group, recently reported "financial institutions

who don't offer home banking by the year 2000 will become marginalized." By the year of 2002,

a large sophisticated and highly competitive Internet Banking Market will develop which will be

driven by:

Demand side pressure due to increasing access to low cost electronic services.

Emergence of open standards for banking functionality.

Growing customer awareness and need of transparency.

Global players in the fray.

Close integration of bank services with web based E-commerce or even

disintermediation of services through direct electronic payments (E- Cash).

More convenient international transactions due to the fact that the Internet along with

general deregulation trends eliminates geographic boundaries.

Move from one stop shopping to 'Banking Portfolio' i.e. unbundled product purchases.

Certainly some existing brick and mortar banks will go out of business. But that‟s

because they fail to respond to the challenge of the Internet. The Internet and its

underlying technologies will change and transform not just banking, but also all

aspects of finance and commerce. It represents much more than a new distribution

opportunity. It will enable nimble players to leverage their brick and mortar presence

to improve customer satisfaction and gain share. It will force lethargic players who are

struck with legacy cost basis, out of business-since they are unable to bring to playing

the new context.



RESEARCH DESIGN:

MEANING:

A research design is a conceptual structure within which the research would be conducted. It

informs what, where, when, how much, by what means a research study is to be conducted.

According to C. Stellic and others, “A research design is the arrangement of conditions for

collection and analysis of data in a manner that aims to combine relevance to the research

purpose with economy in procedures.” Thus research design is a blue print for the collection,

measurement and analysis of data. The research design indicates the outline of the whole

research process starting from the formulation of hypothesis and its operational implication to

the final analysis of the data.

A research design is divided into following parts:

1. The sampling design:

It states the method of sampling to be used and number of sample to be selected.

2. The observational design:

This indicates the process and situation in which the observations are to be made.

3. The statistical design:

It deals with how the collected data are to be edited and organized.

4. The operational design:

This is concerned with the techniques by which the procedure specified in the sampling,

statistical and observational designs are carried out.

Research:

In a common sense we may say that research is a scientific and systematic search for pertinent

information on a specific concept or fact. It is simply answers to questions or solution to



problems. It explains the unexplained phenomena and modifies the existing knowledge. The

search for knowledge can be done in two ways.

1. Crude or arbitrary method:

The knowledge acquired through crude method is based upon beliefs and assumption. The

generalizations made are not tested. It is based on faith or tradition.

2. Scientific method:

It is systematic, controlled, empirical and critical investigation of hypothetical proposition about

the presumed relations among natural phenomena.

Definition of research:-

“Systematized effort to gain new knowledge”

Redman and Mory

Characteristics of research:

Research is systematic, controlled and critical investigation of facts.

It is purposive.

It is logical and objective.

It uses scientific methods for investigation.

It is based on empirical evidence.

It takes into account observable experiences.

It is directed towards development of new propositions or theories.

Its aim is to find out answers to specific questions and solution to problems.

Its findings are testable or it possesses reliability.

Its objective is not simply to find out answers to questions but to bring social

development.

Objectives of research:



The chief objective of research is to find out the hidden truth and the facts which have not been

discovered. The main objectives of research can:

To provide new knowledge to human society.

To establish new theories and generalizations.

To verify and test existing facts.

To unveil the mysteries of nature.

To helping in future prediction.

To analyses the relationship between variables.

To find out solutions to social problems.

To develop quality of human life.

To bring total national development.

To develop new tools, concepts and theories.

Title of the study:

“A study on customer satisfaction on internet (e) banking with reference of Vijaya bank

Bangalore”

Statements of the problem:

In the present scenario, the banks are playing an important role in the

Economic development of our country as they helps in encouraging the people to use the internet

(e) banking service. These internet (e) banking service are attracted & make to deposited,

withdrawing, transferring the money without going to the bank. For the purpose of this the bank

has introduced many internet (e) banking service schemes according to the convenience of

people based on the different categories. So, it is felt very much essential to make a study on

these internet (e) banking service schemes that how it influences on the development

of Economy, customer interest, what are the terms & conditions that are to be fulfilled to make

the customer of internet (e) banking under various schemes.



Objectives of the study:

1. To ascertain the problems faced by bank by Public regarding the internet (e) banking.

2. To know the different internet (e) banking services provided by Vijaya bank.

3. To know the strategies used by bank to deliver good quality of services.

4. To suggest ways and means of developing the internet (e) banking service.

5. To know the service charges levied by bank for providing the internet (e) banking facilities

for our customer.

Scope of the study:

In today‟s world, banking services plays on important role in every life of individuals. The

technological advancements in the banking sector have grown rapidly in the last years. This has

led to the birth of new generation banks & competition. The study basically focuses towards the

observation of the operations and performance of Vijaya Bank regarding internet (e)

banking. The study with in its scope has tried to find out the new trends promoted by the Vijaya

Bank regarding internet (e) banking. This study attempts at understanding how Vijaya Bank

functions in its changing scenario and how each department at the head office contributes to the

success. From the management point of view the study helps them to know whether they are

successful with their operations and management student this study helps in getting birds‟ eye

view of latest development and upcoming changes in banking sector.

Limitation of the study:

Every effort has been made to make study complete and has exhaustive as possible, however

the study is not free from the limitations:

1. Some times respondents dislikes to discuses regarding data collection.

2. Time limit for the study.

3. The study is only confined to Vijaya Bank and the performance of other bank these is not

compared with it.

4. Collection of data & study was based purely on observation of the operation of Vijaya

Bank constraint.



Methodology of the study research instruments:

Personal interview was adopted for collecting data from Vijaya Bank regarding internet (e)

banking services for collecting primary data and secondary data is collected through the

following:

1. Annual report stools and the techniques of data:

Analysis and interpretation of data in based on both primary and secondary data.

i). Primary data:

Primary data are the first hand information collected through various methods such as :

Interviews

Observation

Questionnaires

Structured

Un structured

ii). Secondary data:

Secondary data are obtained from text books, magazines, news paper and Annual reports and

Broachers of the bank and official website.



COMPANY PROFILE:

Mission:

"Vijaya Bank mission is to emerge as a prime national banked by modern technology, meeting

customer aspirations with professional banking services and sustained growth contributing to

national development."

Inception:

Vijaya Bank was founded on 23rd October 1931 by late Shri. A.B.Shetty and other enterprising

farmers in Mangalore, Karnataka. The objective of the founders was essentially to promote

banking habit, thrift and entrepreneurship among the farming community of Dashing Kannada

district in Karnataka State. The bank became a scheduled bank in 1958.

Vijaya Bank steadily grew into a large All India bank, with nine smaller banks merging with it

during the 1963-68. The credit for this merger as well as growth goes to late Shri M.Sunder Ram

Shetty, who was then the Chief Executive of the bank. The bank was nationalized on 15th April

1980. The bank has built a network of 1500 branches, 48 Extension Counters and 1500 ATMs,

that span all 28 states and 4 union territories in the country.

Each branch provides effective and efficient services and significantly contributes to the growth

of the individual, and the nation.

History:

Vijaya Bank was established by Sh. Attavar Balakrishna Shetty at Bunts Hostel in Mangalore on

October 23, 1931. Since it was established on Vijayadashami Day, it was named „Vijaya Bank.

The objective was to promote banking habits, thrift and entrepreneurship among the farming

community of Dakshina Kannada district in Karnataka State. The bank became a scheduled

bank in 1958. Vijaya Bank steadily grew into a large All India bank, with nine smaller banks

merging with it during 1963-68. The bank was nationalised on April 15, 1980.

http://en.wikipedia.org/wiki/A._B._Shetty

http://en.wikipedia.org/wiki/Vijayadashami

http://en.wikipedia.org/wiki/Dakshina_Kannada

http://en.wikipedia.org/wiki/Scheduled_banks

http://en.wikipedia.org/wiki/Scheduled_banks

http://en.wikipedia.org/wiki/Nationalised#India



Organization Structure:

The organizational structure of the Bank consists of three tiers viz., Head Office, Regional

Offices and branches. The Head Office of the Bank is located in Bangalore (41/2 M G Road,

Bangalore – 560 001, Phone No. 080 – 25584066, Fax 080 – 25598040,

email: [email protected] , website: ( www.vijayabank.com ). The Bank has also set up 20

Regional Offices to exercise immediate supervision and control over the branches under their

jurisdiction. All Regional Offices are headed by experienced Executives in the Senior/Top

Management Grade. Further, as the extended wings of the Central Inspection Department, the

Bank has set up 9 Regional Inspectorates.

Services branches: In addition to the branches in the field level, the Bank has opened 12 service branches, which

handle the working relating to collection of instruments drawn on branches in these centers and

also attend to clearing functions.

Sl. No. Service Branch(as on 31.01.13) Sl. No. Service Branch (as on 31.01.13)

1 DELHI 7 HYDERABAD

2 BANGALORE 8 MANGALORE

3 KOLKATA 9 AHMEDABAD

4 CHENNAI 10 LUCKNOW

5 MUMBAI 11 MYSORE

6 KOCHI 12 HUBLI

mailto:[email protected]



BRANCHES: The Bank has opened 1151 branches (position as on 31.01.10). The State wise distribution of

branch net work is indicated in Table below:

SNO STATE BRANCHES (as on 31.01.13)

METRO URBAN SEMI URBAN RURAL TOTAL

1 ANDAMAN & NICOBAR 0 0 1 0 1

2 ANDHRA PRADESH 27 36 19 19 101

3 ARUNACHAL 0 0 2 1 3

4 ASSAM 0 9 4 0 13

5 BIHAR 2 5 1 0 8

6 CHANDIGARH 0 3 0 1 4

7 CHATTISGARH 0 4 0 0 4

8 DELHI 37 0 0 0 37

9 GOA 0 0 5 0 5

10 GUJARAT 24 13 8 2 47

11 HARYANA 1 14 4 1 20

12 HIMACHALPRADESH 0 1 3 0 4

13 JAMMU & KASHMIR 0 3 0 0 3

14 JHARKHAND 0 6 1 0 7

15 KARNATAKA 64 77 89 220 450

16 KERALA 0 22 54 6 82

17 MADHYA PRADESH 4 9 0 0 13

18 MAHARASHTRA 56 27 10 1 94

19 MANIPUR 0 1 0 1 2

20 MEGHALAYA 0 2 0 0 2

21 MIZORAM 0 1 0 0 1

22 NAGALAND 0 0 2 1 3

23 ORISSA 0 8 0 0 8

24 PONDICHERRY 0 2 0 0 2



25 PUNJAB 5 12 9 1 27

26 RAJASTHAN 3 15 2 1 21

27 SIKKIM 0 0 1 0 1

28 TAMILNADU 23 27 19 6 75

29 TRIPURA 0 1 0 0 1

30 UTTAR PRADESH 27 38 4 1 70

31 UTTARANCHAL 0 4 1 0 5

32 WEST BENGAL 21 12 2 2 37

TOTAL 294 352 241 264 1151

Product and services:

(A) Deposit Schemes:

Savings Bank.

V Platinum Savings Bank Account.

Vijaya Saral Savings.

Current Account.

V Star Savings Scheme.

Term Deposit.

(B) Loans & Advances:

Retail lending schemes.

Loan against securities.

Non fund based facilities.

Advances to agriculture, SSIs and others.

Government sponsored schemes.

Special schemes for women.

(C) NRI Services:



Deposit.

Forex branches.

Ofcnr (b) branches.

Loan remittances.

(D) Remittance collection and facilities:

Forex remittances.

Inland remittances.

Electronic remit tance services .

Inward / Outward col lection inst ruments .

(E) Credit Cards:

Domestic Cards.

Global cards.

Debit cards.

(F) Forex:

FOREX market Information.

Card Rates.

Treasury.

(G) Other Services:

Merchant Banking.

Vijaya Rakshak.

V-Arogya Bima Policy.

Credit Cards.

Mutual Funds.

Leasing.



Hiring.

Purchases.

Share capital:

The share capital of Vijaya Bank is held by government of India and institutional investor such

as mutual funds UTI, Insurance Company. Other finance institution and private corporate bodies,

Indian public NRI s And other commercials banks, Government of India acts as a promoter of

the bank, it assist and guides the bank in times of financial difficulties.

The distribution of share holding as in 31-12-2013

Share holder No. of share

holding

Amount in Rs. Percentag

e (%)

Equity 272666736 2726667360 55.02

Banks & financial institutions 68333343 683333430 13.79

FLL‟S 17591241 175912410 3.55

Private Corporate Bodies 22332276 223322760 4.51

NRI 4614941 46149410 0.93

Govt. 141200 1412000 0.03

General Public 108219989 1082199890 21.84

Others 1451119 14511190 0.29

Total 495538394 4955383940 100

Competitors of vijaya bank:

Canara Bank.

Corporation Bank.

HDFC Bank Ltd.

ICICI Bank Ltd.

Indian Bank.

IndusInd Bank Ltd.



Karnataka Bank.

ING Vysya Bank Ltd.

Syndicate Bank.

State Bank of India.

Janatha corporative Bank.

Future prospect and growth of the company:

Vijaya Bank provides various commercial and retail banking services in India. Its deposit

products include savings, current, demand, and term deposits. The company‟s retail lending

products include home, mortgage, professional, cash, equipment, motor, education, jewel, and

reverse mortgage loans; loans for consumer durables; trade finance; loans to transport operators;

loans against securities; and advances to agriculture, and micro, small, and medium enterprises.

It also offers bank guarantees, foreign exchange and electronic remittance services, credit cards,

General Insurance brokerage, mutual fund products, locker rental, and merchant banking services

comprising depositary participant and online trading services. The company primarily serves

small and medium enterprises, weaker sections, SC/ST beneficiaries, self-help groups, women

beneficiaries, and minority communities. As of November 30, 2010, it had a network of 1,180

branches, 47 extension counters, and 500 ATMS. This bank probably posted the most

disappointing numbers for Q1 in the PSU segment. Its net profit for the period dipped 58% at

Rs.72.22 corer. This can be blamed fairly and squarely on the additional provisioning for NPAs

of Rs.108 corer and MTM losses of Rs.76 corer. The additional provisioning was on account

pensions to the retirees,

which is one-time and non-recurring. Higher interest payout on the savings bank account also

shaved off another Rs.75 corer. NII fell 37% at Rs.343 corer. Gross NPAs stood at 2.83%

(2.32%) but this was mainly on account of the spillover effect of Q4FY11. Net NPAs was at

1.65% (1.35%).With interest rates going up further, the bank is sure to feel the heat some more.

It has set itself a target of maintaining NIMs in the range of 2.7 to 2.8% for FY12, which in

Q1FY12 stood at 2.32%. The Bank has adopted 100% system driven NPL measures and through

this, it aims to contain gross NPAs at a level of less than 2%.Considering all these it‟s a sell at



present levels. Vijaya Bank grew steadily by merging nine smaller banks into it between1963-68.

Shri.Mulki Sunder Ram Shetty, who was the then Chief Executive of the bank is largely credited

[citation needed] with these mergers. The bank was nationalized on April 15, 1980.

Currently, Vijaya Bank employs 12,500 people.[citation needed] The Bank has recently recruited

young workforce to cope up with the changing banking scenario & to compete with the growing

private sector & foreign banks functioning in the country.



DATA ANALYSIS AND INTERPRETATION:

Table:-1

Table showing the age group of the respondent

AGE GROUP OF THE PEOPLE

Age group Number Percentage

18-28 33 24.45%

29-39 42 31.11%

40-50 45 33.33%

51-Above 15 11.11%

Total 135 100%

Data-analysis:

From this table it can be analyzed that majority of the people are the surveyed belong to the age

group of 40-50year that is33.33 percentage (%) followed by the 29-39 age group people that is

31.11 percentage (%).



Graph:-1

Graph showing the age group of the respondent

Interpretation:

From this graph it can be inferred that very few people belong to the age group 51 and above are

surveyed in the present sampling (study).

25%

31%

33%

11%

AGE GROUP OF THE PEOPLE

18-28 29-39 40-50 51-Above



Table:-2

Table showing the gender of the respondent

GENDER OF THE PEOPLE

Gender Number Percentage

Male 102 75.55%

Female 33 24.45%

Total 135 100%

Data-analysis:

From this table it can be analyzed that majority of the people in the survey belong to the male

that is102 in number and 75.55 in percentage (%).



Graphs:-2

Graph showing the gender of the respondent

Interpretation:

From this graph it can be inferred that very less survey belong to female that is 33 in number and

24.45 in the percentage (%).

Male

Female

0 20 40 60 80 100 120

Male Female

Number 102 33

GENDER OF THE PEOPLE



Table:-3

Table showing the education qualification of the respondent

EDUCATION OF THE PEOPLE

Education Number Percentage

Under Graduate 26 19.26%

Graduate 42 31.11%

Post Graduate 40 29.63%

Un Graduate 21 15.56%

Illiterate 6 4.44%

Total 135 100%

Data-analysis:

From the above table it can be said that 29.63 percentage of the total survey belong to the post

graduate that is 40 in number.



Graphs:-3

Graph showing the education qualification of the respondent

Interpretation:

From the above graph shows that the very less survey held on illiterate people that is lesser in

percentage that is 4.44 percentage (%) followed by UN graduate people that is 15.56 percentage

(%).

Under Graduate 19%

Graduate 31%

Post Graduate 30%

Un Gerduate 16%

Illiterate 4%

EDUCATION OF THE PEOPLE



Table:-4

Table showing the occupation of the respondent

OCCUPATION OF THE PEOPLE

Occupation Number Percentage

Profession 14 10.37%

Self Employed 45 33.33%

Govt. Employed 10 7.41%

Household 33 24.45%

Student 30 22.22%

Others 3 2.22%

Total 135 100%

Data-analysis:

From the above table shows that the out of 100% of the total respondent only 33.33 percentage

(%) survey are belong to the self employed people that is45 in number and 2.22in percentage

(%).



Graphs:-4

Graph showing the occupation of the respondent

Interpretation:

From the above graph shows that the less preference going to the other service people that is 2.22

in percentage (%) and 3 in number followed by the govt. employed that is 7.14 in percentage (%)

and 10 in number.

Profession 10%

Self Employed 33%

Govt. Employed 8%

Household 25%

Student 22%

Others 2%

OCCUPATION OF THE PEOPLE



Table:-5

Table showing the people who have bank account

HAVE BANK ACCOUNT

Opinion Number Percentage

Yes 114 84.44%

No 21 15.56%

Total 135 100%

Data-analysis:

From the above table can be said that out of 135 people 114 people have the bank accounts that

is 84.44 percentages (%).



Graph:-5

Graph showing the people who have bank account

Interpretation:

This graph shows the total people that have not a bank account that is 15.56 in percentage (%).

YES 84.44%

NO 15.56%

HAVE BANK ACCOUNT



Table:-6

Table showing the customer interest to update his/her bank account

BANKING SERVICES

Frequent usage Number Percentage

Weekly 42 36.84%

Monthly 39 34.21%

Quarterly 12 10.53%

Yearly 21 18.42%

Total 114 100%

Data-analysis:

From the above table it can be said that 36.84 percentage (%) people are operating his/her bank

account weekly that is 42 in number compared to those people who are operating his account

monthly these are39 in number and 34.21in percentage (%).



Graph:-6

Graph showing the customer interest to update his/her bank account

Interpretation:

This graph shows that customer operating bank account quarterly less in number.

37%

34%

11%

18%

BANKING SERVICES

Weekly Monthly Quarterly Yearly



Table:-7

Table showing the customer interest to mostly used service is used for update his/her bank

account

CUSTOMER INTERESTING TO USE BANKING

SERVICE

Mostly used service Number Percentage

Physically 39 34.21%

Core Banking 42 36.84%

Semi 12 10.53%

None of the 21 18.42%

Total 114 100%

Data-analysis:

It is clearly seen that 36.84 percentage (%) customer are interested to uses core banking services.



Graph:-7

Graph showing the customer interest to mostly used service is used for update his/her bank

account

Interpretation:

This graph is clearly shown that bank should to improve semi banking facility among its

customer.

Physically 34%

Core Banking 37%

Semi 11%

None of the 18%

CUSTOMER INTERESTING TO USE BANKING SERVICES



Table:-8

Table showing the how many customers have heard about internet (e) banking service

HEARD OF E- BANKING

Response Number Percentage

Yes 105 92.11%

No 9 7.89%

Total 114 100%

Data-analysis:

From the above table it can be said that most of respondents in this survey have heard about

internet (e) banking in their life-time.



Graph:-8

Graph showing the how many customer heard internet (e) banking service

Interpretation:

From the above graph it can be inferred that 90% of respondents are aware of net banking.

105

92.11%

9

7.89%

Number

Percentage

0 20 40 60 80 100 120

HEARD THE INTERNET (E) BANKING

No Yes



Table:-9

Table showing the how many customers have internet (e) banking service

INTERNET (E) BANKING FACILITY

Option Number Percentage

Yes 99 86.84%

No 15 13.16%

Total 114 100%

Data-analysis:

From the above table it is clearly seen that out of 135 respondents 99 respondents have availed

internet (e) banking facilities which stood up to 86%.



Graph:-9

Graph showing the how many customers have internet (e) banking service

Interpretation:

From the above graph it can be noted that only 13.4% people have not availed internet (e)

banking facilities which shows that people are using banking facilities.

Number

Percentage

99

86.84%

15

13.16%

INTERNET (E) BANKING FACILITY

No Yes



Table:-10

Table showing customers how frequently use internet (e) banking service

Usage E-banking

Opinion Number Percentage

Very often 40 40.41%

Often 30 30.30%

Seldom 29 29.29%

Total 99 100%

Data-analysis:

From the above table it can be said that is nearly 40.41% of total sample use internet (e) banking

very frequently.



Graph:-10

Graph showing customers how frequently use internet (e) banking service

Interpretation:

From the above graph it can be said that bank should try to attract more customer in using

internet (e) banking facilities at their institution by providing more information about the internet

(e) banking facilities.

41%

30%

29%

number

very often often seldom



Table:-11

Table showing customers how long time using the internet (e) banking service

USING INTERNET (E) BANKING SERVICES

Responses Number Percentage

Not more than 1 year 54 47.37%

From1-3 year's 21 18.42%

From2-6 year's 18 15.79%

More than 6 year's 6 5.26%

Not using 15 13.16%

Total 114 100%

Data-analysis:

From the Above table it can be said that people are being more aware of internet (e) banking

facilities from past 1 year is 47.37%.



Graph:-11

Graph showing customers how long time using the internet (e) banking service

Interpretation:

From the above graph we can say that people are using more internet (e) banking facilities from

past 6 years.

47%

19%

16%

5%

13%

HOW LONG ARE YOU USING INTERNET (E) BANKING SERVICES

Not more than 1 year From1-3 year's From2-6 year's

More than 6 year's Not using



Table:-12

Table showing what type of internet (e) banking service enjoyed by the customer

TYPE OF INTERNET (E) BANKING SERVICE

PROVIDED

Option Weighted avg. Percentage

Normal cash 12 7.23%

ATM 66 39.76%

Debit card 36 21.69%

Credit card 16 9.64%

Normal account 14 8.43%

M-banking 22 13.25%

Total 166 100%

Data-analysis:

From the above table it can be said that more number of people use internet (e) banking for

mainly ATM card transaction.



Graph:-12

Graph showing what type of internet (e) banking service enjoyed by the customer

Interpretation:

From the above graph it can be said that people using credit card normal account transaction are

very few in number that is 10% and 8% respectively.

Normal cash 7%

ATM 40%

Debit card 22%

Credit card 10%

Normal account 8%

M-banking 13%

TYPE OF INTERNET (E) BANKING SERVICE ENJOYING



Table:-13

Table showing what type of internet (e) banking service more attract the customer

Data-analysis:

From the above table it can be said that more customer are using internet (e) banking services

online fund transfer that is 33.34%.

MORE ATTRACT SERVICES


On line shopping 28 28.28%

Bill paying 15 15.15%

On line fund transfer 33 33.34%

Any time banking 23 23.23%

Total 99 100%



Graph:-13

Table showing what type of internet (e) banking service more attract the customer

Interpretation:

From the above graph it can be said that customer using bill paying facilities is very less in

percentage that is 15% respectively.

On line shopping

28%

Bill paying 15%

On line fund transfer

34%

Any time banking

23%

MORE ATTRACT SERVICES



Table:-14

Table showing problem faced by customer in internet (e) banking services

Data-analysis:

From the above table it can be said that nearly 36% of people have not faced any problem while

using the internet (e) banking facilities.

PROBLEM INTERNET (E) BANKING


Several time 36 31.58%

Rare 36 31.58%

Not at all 42 36.84%

Total 114 100%



Graphs:-14

Graph showing problem faced by customer in internet (e) banking services

Interpretation:

From the above conical graph it can be said that people are facing problems while using e-

banking hence bank should try to improve their internet (e) banking facilities.

36

36

42

31.58

31.58

36.84

Several time

Rare

Not at all

PROBLEM INTERNET (E) BANKING

Percentage Number



Table:-15

Table showing type of problem faced by respondents while using internet (e) banking facilities

PROBLEM FACE BY CUSTOMER


Server down 36 50%

Technological 6 8.33%

No internet 12 16.67%

Other 18 25%

Total 72 100%

Data-analysis:

From this table it can be said that 50% of the respondent face the problem of server down.



Graph:-15

Graphs showing type of problem faced by respondents while using internet (e) banking facilities

Interpretation:

From this graph it can be said that 50% of the respondent face the problem of server down hence

bank should improve their network connectivity.

Server down

Technological

No internet

Other

36

6

12

18

50%

8.33%

16.67%

25%

PROBLEM FACE BY CUSTOMER

Percentage Number



Table:-16

Table showing satisfaction level on charges availed on e-banking

Data-analysis:

From the above table it can be said that nearly 57.89% are not satisfied of the charges availed on

internet (e) banking.

CHARGES AVAILING ON INTERNET

(E) BANKING


Yes 48 42.11%

No 66 57.89%

Total 114 100%



Graph:-16

Graph showing charges availed on internet (e) banking

Interpretation:

From this conical graph it can be inferred that most of customer are not satisfied with the charges

charged that is 57.89%.

48

42.11%

66

57.89%

Number

Percentage

CHARGES AVAILING ON INTERNET (E) BANKING

No Yes



Table:-17

Graph showing reach of internet (e) banking facilities in the society

FACILITIES REACH THE SOCIETY


Yes 66 57.89%

No 48 42.11%

Total 114 100%

Data-analysis:

The above table shows that the out of 114 customers 66 customers that is 57.89 percent (%) said

lower class, middle class people are reach the internet (e) banking service.



Graph:-17

Graph showing reach of internet (e) banking facilities in the society

Interpretation:

This graph (chart) shows 48 customer or 42.11 percent (%) customer said that the internet (e)

banking service not reach the lower class, middle class people.

1

2

66

57.89%

48

42.11%

FACILITIES REACH THE SOCIETY

No Yes



Table:-18

Table showing no of respondents suggesting to others people take internet (e) banking facilities

RECCOMENDATION TO OTHERS


Yes 105 92.11%

No 9 7.89%

Total 114 100%

Data-analysis:

From the above table it can be analyzed that 92.11 percent (%) people will suggested to other to

take internet (e) banking facilities.



Graph:-18

Graph showing no of respondents suggesting vijaya bank to others people take internet (e)

banking facilities

Interpretation:

This graph said that the only 8 (eight) percent (%) of total customer are not gives to advise other

people to taking the internet (e) banking facility.

92%

8%

RECCOMENDATION TO OTHERS

Yes No



SUMMARY OF FINDING AND CONCLUSSION:

Finding:

1. Out of the surveyed respondent most of them are male while the female respondents are less.

2. The services are divided into four categories, i.e., internet (e) banking, mobile banking, phone

banking and ATM services.

3. Internet (e) banking services, the most common services offered by the banks are balance

enquiry, mini statement and transaction history.

4. Among the other services most of the customer are simple transaction of internet (e) banking

uses for „monthly bank account statement by e-mails‟, „bill payment‟, „online tax payments‟,

„customer correspondence‟, and „demonstrations of I-banking‟.

5. In phone banking services, 40 per cent customers are using „enquire our account balance’

and 37.7 per cent customers are „statement of account’ during the period under study.

6. Customers use ATM frequently for withdrawal of cash.

7. The results of the study also reveal that all electronic banking services are not equally

important for all the customers, some services are very important and some are less important.

8. The research shows that electronic banking offers number of modes for payment.

9. As the use of Internet is increasing day by day so the internet banking is also rapidly followed

by the customers.



Conclusion:

A customer (sometimes known as a client, buyer, or purchaser) is the recipient of

a good, service, product, or idea, obtained from a seller, vendor, or supplier for a monetary or

other valuable consideration. Customers are generally categorized into two types:

An intermediate customer or trade customer (more informally: "the trade") who is a

dealer that purchases goods for re-sale.

An ultimate customer who does not in turn re-sell the things bought but either passes

them to the consumer or actually is the consumer.

From the study conducted it can be concluded that internet (e) banking in banking sectors has

grown tremendously from past decade and people are being more aware of internet (e) banking

facility nowadays.

http://en.wikipedia.org/wiki/Good_(economics)

http://en.wikipedia.org/wiki/Service_(economics)

http://en.wikipedia.org/wiki/Product_(business)

http://en.wikipedia.org/wiki/Seller

http://en.wikipedia.org/wiki/Vendor

http://en.wikipedia.org/wiki/Distribution_(business)



SUGGESTIONS:

Suggestions:

1. The study suggested to vijaya bank to improve the services of internet (e) banking.

2. To increase safety measure so as to encourage more and more customer to using internet (e)

banking services.

3. To make internet (e) banking easier and understandable for the convenient of the customer.

4. Vijaya bank should advertise about its product and about the bank in television.

5. Vijaya bank should improve its technology as people are facing server down problem very

often.

6. The above mentioned suggestions are completely my individual perspective.



APPENDICES AND ANNEXURES:-

QUESTIONNAIRE

Topic: Customer satisfaction on internet (e) banking

Dear Sir/Madam,

I am a management student taking a study on customer satisfaction on internet (e)

banking. This exercise is a part of the project towards fulfilling the requirements of the

management course. I would be obliged if you could provide me with some of your valuable

time to answer the following questions:-

1. Age Group

1. 18-28 2. 29-39

3. 40-50 4. 51-Above

2. Gender:-

Male Female

3. Education:-

1. Undergraduate 2. Graduate 3. Postgrduate

4. Illiterate 5.Ungraduate

4. Occupation:-

1. Profession 2. Self employed 3. Govt. Employees

4. Student 5. Household 6. Other

5. Do you have a bank account?

1. Yes 2. No



6. If yes. Then how frequently you use it?

1. Weekly 2. Monthly

3. Quarterly 4. Yearly

7. What type of banking services you are interesting to use?

1. Physically 2. Core Banking

3. Semi 4. None of the above

8. Have you heard of the internet (e) banking?

1. Yes 2. No

9. Do you have an internet (e) banking facility?

1. Yes 2.No

10. How frequently you use internet (e) banking?

1. Very often 2. Often

3. Seldom

11. How long are you using internet (e) banking?

1. Not more than 1 year 2. From 1- 3 year 3. From 2-6 year

4. More than 6 year 5. Not using

12. What type of internet (e) banking service you enjoying?

1. Normal cash 2. ATM 3. Debit card

4. Credit card 5. Normal account 6. M-banking

13. Which feature of internet (e) banking service you attract you more?



1. On line shopping 2. Bill paying

3. On line fund transfer 4. Any time banking

14. Do you face any problems in internet (e) banking?

1. Several times 2. Rare

3. Not at all

15. What type of problems you face mainly?

1. Server Down 2. Technological

3. No internet 4.Other

16. Are you satisfied with the charges on availing in internet (e) banking?

1. Yes 2. No

17. “Online banking service is yet out of the reach of middle class and lower class people.”

Do you agree this statement?

1. Yes 2. No

18. Do you suggest to other people to take the internet (e) banking?

1. Yes 2. No



BIBLIOGRAPHY:

Name of the Author Title and edition of the book

B.S. Raman Theory and practice of banking

Pratap Keshari Khatoi Business Research Methods

Website:

www.vijayabank.com

http://ssrn.com/abstract=1011112

http://www.scribd.com/doc/31035235/1

http://www.vijayabank.com/

http://ssrn.com/abstract=1011112

http://www.scribd.com/doc/31035235/1

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