Customer Satisfaction Of E Banking Services

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02 Nov 2017

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Dr.A.Abdhul Rahim,M.Com.,M.Phil.,Ph.D

Associate Professor, Department of Commerce and Management, Muslim Arts College Thiruvithancode.

Mr.P.Thanga Durai,M.Com.,M.Phil.

Associate Professor, Vivek College of Commerce, Mumbai-62.

Introduction

The technological development in the banking sector, like information technology, security systems and description models has brought significant changes in modern banking services in India. Many value added services in banking service sector have been introduced to the customer’s satisfaction in this competitive field. Thus in long run, it will pave way for the significant growth in service sector. In olden days, people spent three to four hours for banking transactions. But now customers are being handled with care and caution by providing advanced technology based services without sacrificing the concepts of secrecy and reasonable care. E- Banking has relieved the customers and bankers from tense circumstances and is enabling them to transact using remote banking and virtual banking facilities.

E-banking is one of the most successful online businesses. It allows customer to access their accounts and execute their orders in an easy manner. E- Banking saves individuals and companies’ time and money. Revaluation in the information technology has made the Indian economy steady inroads into the banking institutions and has brought about a significant change in many aspects in the form of computerization of transactions and new delivery channels such as Internet Banking, Mobile Banking, Tele banking, Automated Teller Machine (ATM), Smart Cards, Debit Cards, Credit Cards, E-cheque, Electronic Transfer Fund (ETF), Electronic Clearing Services (ECS), Electronic Data Interchange (EDI) etc.

Through E- banking the following basic transactions can be activated like Balance in the account, Fund transfer, Requests Information, Request for issue of Cheque book, Draft and Payment of utility Bills-Electricity, Water, Telephone etc. In E-banking any inquiry or transaction is processed online without any reference to the branch (anywhere banking) at any time. Providing E-banking is increasingly becoming a ‘need to have’ than a ‘new to have’ services. Thus the e- banking has become the cheapest way to provide banking services.

Statement of Problem

Banks traditionally have been in the fore front of harnessing technology to improve their products, services and efficiency. Now E-banking has become more popular among customers. Most of the banks provide E-banking facility. Online banking provides a convenient and effective way to manage finance that is easily accessible 24 hours. Nevertheless Online banking has certain problems such as how to work the technology, set-up cost, legal issue and lack of personal contact with customers and security and privacy issues. For some people it simplifies life, while for other it is threatening and complex. Therefore in this context it is necessary to study the customer satisfaction towards E-banking services and problems faced by the customers. For the study, data have been collected from a sample of 150 respondents from Kanyakumari District through a structured questionnaire.

Review of literature

Richard Nyangori, Arora and Sumangeeth Singh (2009) conducted a research work with the aim of collecting customer’s opinion regarding the importance of e-banking and adoption levels of various e-banking technologies in India and Kenya. This study highlights the trends of e-banking indication in India and Kenya.

Suresh kumar. A (2008) in his dissertation pointed out that the E services are widely accepted by the bank customers and most of the bank employees, because of its effectiveness in extending online services.

Uma Maheswara Rao and Hymavathi (2010) in their article entitled "Internet banking in India scenario", pointed out that in spite of rapid efforts to offer net banking facilities, the Indian internet system need to overcome many obstacles such as operational risks, security risks, system architecture risks and reputation risks. Though banks are striving to overcome these problems, there is lot to be done towards security problems. They should also be prepared to handle system, disruptions in system, banker’s securities lapses and virus attacks. They should also be familiarizing with proper customer identification devices, information screening techniques and various laws that would guide their customers.

Yuan Xina, Lee Hyung Seole and Kin Sang Young (2010) illustrate the history and explosive growth of e-banking in china. In general, the development of online banking services is still nascent stage in China, with a considerable quantity of potential customer. The study determined that Chinese e-banking transactions tend to comparatively business related and there is a regional difference in adopting internet banking.

Objectives

The study focuses with the following objectives

To find out the awareness of customers regarding various e- banking products.

To know the level of satisfaction and the reasons why customers prefer E-banking.

To identify the problems faced by the customers while using E- Banking services. .

Hypothesis

A comparative analysis has been undertaken with the help of chi square test to test the following null hypothesis

Ho1 There is no significant differences between occupation and time of access of e-banking services.

Ho2 There is no significant difference between monthly income and Frequency of using e- banking.

Ho3 There is no significant difference between Residential status and Reason for selecting e- banking services.

Ho4 There is no significant difference between monthly income and type of account operated by the customers.

Ho5 There is no significant difference between Age and using E- Banking Services.

Methodology

The research design adopted for the study is descriptive one. It accounts both primary and secondary data. Primary data were collected from 150 customers. Satisfaction levels of customer towards e-banking were collected by preparing an interview schedule. Stratified random sampling method is used for collecting data from customers. Secondary data were collected from books, journals viz. Indian Journal of finance, Economic and Political weekly, Southern Economist, Bank Finance, and Magazines like Business India, Business Week, etc., Newspapers like Economic Times, The Hindu, Business Line and Website.

Tools for Analysis

The primary data were analyzed with the help of Averages, Garret Ranking Method, Chi-square test

Analysis and interpretation of data

The findings of the present study are: 39.33 percent of the respondents belong to 25-35 age groups. 64 percent of the respondents are males. 62.67 percent of the respondents are married. 37.33 percent of the respondents are educated up to College level. 36.67 percent respondent’s occupation is in private sector. 32 percent of the respondents Income level is up to Rs. 10000.

The respondents are equal in number both in urban and rural area.72.67 percent of the respondents have savings account in the banks. 37.33 percent of respondent’s access time is from 6 am to 1 pm. 39.33 percent is using bank accounts for a period of 1-3 years.17.33 percent of the respondents selecting e-banking services because of convenience. 35.33 percent of the respondents get knowledge from friends and relatives about the e-banking services. 75.37 percent of the respondents are using e-banking services only to maintain their banking transactions. 25.33 percent of the respondents are using e- banking facilities daily.

Awareness level

53.33 percent of the respondents is aware about the Internet banking services.78 percent of the respondents is unaware about the Electronic Clearing Services.44.67 percent of the respondents is aware about the Mobile banking services. 57.34 percent of the respondents is unaware about the Electronic Fund Transfer services. 76 percent of the respondents are unaware about the Electronic Data Interchange services. 45.33 percent of the respondents are aware about the Credit card services. 49.33 percent of the respondents were unaware about the Debit card services. 50.67 percent of the respondents were aware about the Smart card services. 52.67 percent of the respondents were aware about the E cheque services. 35.67 percent of the respondents were using e-banking services for the purpose of only online payment.

Reason for preference

An analysis was made to find out of the eight variables which is the most preferred attributes for adopting e-banking services. Garrett ranking method is used and the result is exhibited in table number 1. All time availability is the major reason for preferring e- banking services with a mean score of 58.36. Better and quicker services are ranked second with a mean score of 57.24. Time saving is ranked third with a mean score of 56.71. To know the status of accounts is the fourth reason with mean score of 55.69. Online payment is ranked fifth with a mean score of 55.36. Cost saving is ranked sixth with a mean score of 54.25. Stop payment of Cheque ranked seventh with a mean score of 54.25. Request for issue of cheque, bond, DD etc. is ranked eight with mean score of 47.33.

Problems of E-banking Services

Normally, E- banking customers are facing some problems. The problem perception was analyzed with the help of Garrett ranking technique. The ranks obtained are converted into scores with the help of Garrett ranking table. It is evident from table number 2 that, no access to internet is the major problem of E-banking holders with a mean score of 60.00. In security’s is ranked second vital problem with a mean score of 58.17. Time consuming is ranked third with a mean score of 56.29. Password together ranked fourth with a mean score of 55.43. Network problems ranked fifth vital problem with a mean score of 54.24. Processing time ranked as the sixth problem with a mean score of 54.00. Lack of Operational Knowledge is ranked the last with mean score of 51.81.

The calculated Chi-Square values of all the compared variables are higher than the table value at 5% level of significance, (table- 5) the null hypothesis framed are rejected. Hence it is concluded that their exists relationships among the selected variables namely the occupation and time of access, monthly income and frequency of usage, residential status and reason for selecting e-banking services, monthly income and types of account, age and using of e- banking services.

Suggestions

Familiarizing the customers to new environment by demo version of software on all banks website; this should contain the features and services offered by banks and enable customers to give suggestions for improvements. Provide more services to the customers through e-banking will help more business people to use e-banking. Create a trust in the minds of customers towards security in their accounts and details. Provide information about e-banking at the time of opening of accounts and make aware them as much as possible. Keep at least one employee who is specialized in e banking at every bank to clear the doubts of customers. Customers should be motivated to use e-banking facilities more. Banks should arrange meetings with the customers at least once in a month, for customer’s clarification and feedback from the customers about e-banking services.

Conclusion

The e-banking revaluation has fundamentally changed the business of banking by scaling borders and bringing about new opportunities. In India also, it has strongly impacted the strategy of business for banks by significantly cutting down costs of delivery and transactions. It must be noted that while e-banking provides many benefits to customers and banks, it also aggravates traditional banking risks. Compared to developed countries, India faces many impediments that affect the successful implementation of e-banking initiatives.



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