A study from customers' perspectives

COMPARATIVE STUDY ON E-BANKING SERVICES BETWEEN NATIONALIZED AND PRIVATE BANKS IN

TRICHIRAPALLI DISTRICT (A study from customers’ perspectives)

Thesis submitted to the

BHARATHIDASAN UNIVERSITY, TIRUCHIRAPPALLI in partial fulfillment of the requirements for the award of the degree of

DOCTOR OF PHILOSOPHY IN COMMERCE

Submitted by

N. MAHESWARI

Under the Guidance of Dr. S. JOSEPH XAVIER M.Com., MBA, M.Ed., M.Phil., Ph.D.,

POST GRADUATE AND RESEARCH DEPARTMENT OF COMMERCE ST. JOSEPH’S COLLEGE (AUTONOMOUS)

(Nationally Re-Accredited with A+ Grade & College with Potential for Excellence)

Tiruchirappalli – 620 002, Tamil Nadu, South India

AUGUST 2011

Dr. S. JOSEPH XAVIER M.COM., MBA, M.Ed., M.Phil., Ph.D.,

Associate Professor & Research Advisor in Commerce

St. Joseph’s College (Autonomous)

Tiruchirappalli – 620 002, Tamil Nadu, South India.

AUGUST 2011

CERTIFICATE

This is to certify that the thesis entitled “COMPARATIVE STUDY ON

E-BANKING SERVICES BETWEEN NATIONALIZED AND PRIVATE BANKS

IN TRICHIRAPALLI DISTRICT (A study from customers’ perspectives)” is a

bonafide record of research work carried out by Mrs. N.MAHESWARI, under my

direct guidance and supervision and that the thesis has not formed basis

previously for award of any degree or diploma, fellowship or associate ship or

any other similar title to the candidate.

Dr. S. JOSEPH XAVIER

(Research Advisor & Guide)

N. MAHESWARI Assistant Professor of Commerce,

St.Joseph’s College, (Autonomous)

Tiruchirappalli – 620 002, Tamil Nadu, South India.

AUGUST 2011

DECLARATION

I hereby declare that the thesis entitled “COMPARATIVE STUDY ON

E-BANKING SERVICES BETWEEN NATIONALIZED AND PRIVATE BANKS

IN TRICHIRAPALLI DISTRICT (A study from customers’ perspectives)”

embodies the results of my research work carried out under the guidance and

supervision of Dr. S. JOSEPH XAVIER M.COM., MBA, M.Ed., M.Phil., Ph.D,

Associate Professor & Research Advisor in Commerce and that I have not

submitted the above thesis to any University for any degree or diploma,

fellowship or associateship or any other similar title previously.

N. MAHESWARI

ACKNOWLEDGEMENT Primarily I submit my humble thanks to the Almighty who has been

graciously guiding me with his choicest blessings in every step I have trodden.

It was my proud privilege and prerogative to express my profound

feelings of gratitude to my honorable guide and Research Advisor

Dr. S. Joseph Xavier, M.COM., MBA, M.Ed., M.Phil., Ph.D., Associate

professor of commerce and Head of Department of Business Administration,

St.Joseph’s College, Trichy for his unrelenting support, able guidance and

scholarly inspiration in the course of this research work. The oozing confidence

and encouragement which he instilled in me towards right perspectives

persuaded me to pursue the research and made the whole process successful.

He had been a good advisor and philosopher.

I owe a deep debt of gratitude to Dr. Sekar, Principal Urumu

Dhanalakshmi College, Kattur, Trichy, Tamil Nadu, for his help in joining PhD

work.

I am grateful to Dr. Meena, Vice Chancellor, Bharathidasan University, for

her constant motivation in pursuing my Ph D.

I also appreciate the Doctoral Committee member Dr. R. Lalitha, Reader,

Department of Commerce, Seethalakshmi Ramasamy College, Tiruchirappalli for

her critical comments, which enabled me to notice the weaknesses of my

dissertation and make the necessary improvements according to her comments.

I sincerely thank Dr. Fransis Gnanasekaran, The Head, Department of

Commerce for his valuable suggestions on various occasions and the faculty

members in the department of commerce for their valuable help on various

occasions.

I wish to place on records my gratitude to Rev. Father. Sebastin, Principle

and Head, St.Joseph’s college. Trichirappalli for his encouragement.

I am very happy to acknowledge with a deep sense of gratitude

Rev. Dr. Albert Muthumalai SJ, Secretary, St. Joseph’s College, Tiruchirappalli

for his unconditional support.

I am very grateful to Rev. Dr. B. John Bosco SJ, Director, and

Prof. M. Dorairajan, Librarian, Fr. Arruppe Library, St.Joseph’s Colllege, Trichy

for the wonderful opportunity created for me to collect necessary information

related to my research.

I sincerely register my appreciation and thanks to Mr. Jesus Raja for his

support in completion of my thesis

A special gratitude is devoted to my husband for his never-ending

support. His understanding and his love encouraged me to work hard and to

continue pursuing a Ph.D. He always lets me know that he is proud of me, which

motivates me to work harder and do my best. My sincere thanks to my family

members who supported and motivated in my studies.

I thank Dr.Fransis Mary for her help in gaining knowledge about the thesis.

I once again thank my research advisor who supported me to fulfill the

dream of my husband.

I thank all the people who have got various spectrum of knowledge and

contributed to my discipline in one fold.

N. MAHESWARI

CONTENTS

Chapter

No. Title

Page

No.

I INTRODUCTION AND DESIGN OF THE STUDY 1

II REVIEW OF LITERATURE 11

III PROFILE OF STUDY AREA AND PROGRESS OF E-

BANKING

119

IV ANALYSIS AND INTERPRETATION 140

V FINDINGS AND SUGGESTIONS 256

BIBLIOGRAPHY

APPENDIX

LIST OF TABLES Table No.

Particulars Page No.

4.1 Gender wise classification of respondents 140

4.2 Age wise classification of respondents 142

4.3 Occupation wise classification of respondents 144

4.4 Education wise classification of respondents 146

4.5 Income level classification of respondents 148

4.6.1 Frequency of using e-banking service for Mobile recharge 150

4.6.2 Frequency of using e-banking service for Payment of

telephone bill

151

4.6.3 Frequency of using e-banking services for Payment of electric

bill

152

4.6.4 Frequency of using e-banking services for Money transfer 153

4.6.5 Frequency of using e-banking services for Railway ticket

booking

154

4.6.6 Frequency of using e-banking services for Air ticket booking 155

4.6.7 Frequency of using e-banking services for Filing of tax

returns

156

4.6.8 Frequency of using e-banking services for Investment and

others

157

4.7 Distribution of respondents of the banks 158

4.8 No of banks the respondents having account 160

4.9 Details of possessing account access to internet 161

4.10 Nature of option of account access 162

4.11 Opinion on the security of financial information available and

managed over internet

163

4.12 E-banking services used by respondents 164

4.13 Frequency of using of e-banking services 166

4.14 Ranking of e-banking services 168

4.15 Opinion of the respondents regarding reliability 169

4.16 Opinion of the respondents with regard to responsiveness 171

4.17 Opinion of the respondents with regard to security 173

4.18 Opinion of the respondents with regard to easy use 175

4.19 Opinion of the respondents with regard to accessibility 177

4.20 Opinion of the respondents with regard to efficiency 179

4.21 Ranking of problem of e-banking services 181

4.22 Opinion and satisfaction level of respondents with regard to

qualities of e-banking services

185

4.23 Difference between nationalized banks and private banks of

the respondents and their e-banking services

188

4.24 Difference between nature of bank of the respondents and the

various problems faced by the respondents of e-banking

channels

191

4.25 Association between age of the respondents and the qualities

of overall e-banking services qualities

196

4.26 Cross tabulation on gender and the qualities of e-banking

services

198

4.27 Association between occupation and the qualities of e-

banking services

200

4.28 difference between educational qualification of the

respondents and the qualities of overall e-banking services

205

4.29 difference between income of the respondents and their

overall e-banking services qualities

209

4.30 Significance of account access through internet and the


215

4.31 Inter Correlations matrix between nature of e-banking

services and overall e-banking services

217

4.32 Inter correlation between various modes of e-banking services

qualities of overall e-banking services

220

4.33 Inter Correlation matrix between modes of services and

various problems of e-banking

223

4.34 Difference between name of bank of the respondents and the

overall e-banking services qualities

225

4.35 Association between no. of bank account of the respondents

and their overall e-banking services qualities

230

4.36 Difference between name of bank of the respondents and

their nature of e-banking services

232

4.37 Difference between occupation of the respondents and the

nature of e-banking services

235

4.38 Difference between occupation of the respondents and their

various problems faced in e-banking services

239

4.39 Difference between name of bank of the respondents and

their various problems faced in e-banking services

244

4.40 Inter Correlations Matrix between qualities of e-banking

services and overall qualities of e-banking services

251

4.41 Inter Correlations matrix between nature of e-banking services 253

4.42 Inter Correlation between problems of e-banking services 254

LIST OF CHARTS

Chart No. Charts Page No.

4.1 Gender wise classification of the respondents 141

4.2 Age wise classification of the respondents 143

4.3 Occupation wise classification of the respondents 145

4.4 Education wise classification of the respondents 147

4.5 Income wise classification of the respondents 149

4.6 Distribution of respondents of the banks 159

CHAPTER – I INTRODUCTION AND DESIGN OF THE STUDY

INTRODUCTION Technology in Indian banking has evolved substantially from the days of

back office automation to today's online, centralized and integrated solutions.

Banking is now no longer confined to the branches where one has to approach

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

statement of accounts. With the expansion of internet usage, e-banking has

become one of the most revolutionized components of today’s economic growth.

E-banking is powerful value added tool to attract new customers and retain the

existing ones. With the proliferation of internet and computer usage, the

electronic delivery of e-banking service has become ideal for banks to meet

customer expectations. Besides it helps in eliminating costly paper handling and

teller interaction in the increasingly competitive banking environment. The

potential competitive advantage of e-banking lies in the areas of cost reduction

and satisfaction of consumer needs. As per the international report the banking

transactions on a brick and mortar banking costs around Rs.50, while through

ATM it costs around Rs.14 toRs.15. On the other hand internet transaction

costs less than a rupee. Providing banking is increasingly becoming a ’need to

have’ than a ‘nice to have’ service. The e-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. Arunachalam L and

SivaSubramanian. M, 2007)1

E-BANKING SERVICE IS INEVITABLE Electronic distribution channels provide alternatives for faster delivery of

banking services to a wider range of customers. (Kaleem and Ahmed 2008).2

1 Arunachalam, L. and Sivasubramanian, M. (2007) ‘The future of Internet Banking in India’,Academic Open Internet Journal, Vol. 20. 2 Kaleem, A & Ahmad, S., “Bankers’ Perceptions of Electronic Banking in Pakistan,” Journal of Internet Banking and Commerce, vol. 13, no. 1. 2008 pp 23-36

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Most of the customers who start banking online do it because they need to pay

bills frequently and would like to do it with minimum effort. Besides that, people

use the internet banking to keep an eye on their money matters, view their

account balance and check security payments from other parties.(Kolodinsky JM Hogarth, and Hilgert.MA,2004,)3 Information technology enabled electronic

channels to perform many banking function that would traditionally be carried out

over the counter (Giannakoudi 1999,)4 the use of paper cheques has been

supplemented step by step with e-cheques (electronic images) allowing banks to

have more storage capacity , reduce costs, and improve customers services

(Rose and Hudgins 2005)5 E-banking provides enormous benefits to consumers in terms of the ease

and cost of transactions. Online banking helps banks to retain their existing

customers, improve customer satisfaction , increase banks’ market share,

reduce administrative and operational cost and more importantly improve banks’

competitive position.(Khalfan.et al,2006.)6.

Meaning of electronic banking E-banking is conducting ones banking or bank account online through a

computer and an internet connection. “Electronic banking is the use of a

computer to retrieve and process banking data (statements, transaction details,

etc.) And to initiate transactions (payments, transfers, requests for services, etc.)

directly with a bank or other financial services provider remotely via a

telecommunications network”.

3 Kolodinsky, J.M., Hogarth, J.M. and Hilgert, M.A. (2004) ‘The adoption of electronic banking technologies by US consumers’, International Journal of Bank Marketing, Vol. 22, No. 4, pp.233–241 4 Giannakoudi, S. (1999) ‘Internet banking: the digital voyage of banking and money in cyberspace’, Information and Communications Technology Law, Vol. 8, No. 3, pp.205–243. 5 Rose, P.S. and Hudgins, S.C. (2005) Bank Management and Financial Services, New York: McGraw-Hill Irwin. 6 Khalfan.et al,2006, Factors influencing the adoption of internet banking in Oman, a descriptive case study analysis. International Journal of Financial services management. 1(2) 155-172

3

Electronic banking is a new industry which allows people to interact with

their banking accounts via the Internet from virtually anywhere in the world. The

electronic banking system allows consumers to access their banking accounts,

review most recent transactions, request a current statement, transfer funds,

view current bank rates and product information and reorder checks. The

electronic banking system can be seen as an “extension of existing banks.”

Expectation of bank customers The introduction of electronic banking services also creates new tasks to

be forced, such as the optimization of distribution channels and the security of

data transfer. The customer will not purchase a service that fails to meet his

requirements or a service that does not guarantee the required privacy and

security. E-banking is a fast spreading service that allows customers to use

computer to access account-specific information and possibly conduct

transactions from a remote location - such as at home or at the workplace. ATM

cards, credit cards ,debit cards, smart cards ,all these have eased human life up

to such a extent that today life without these seems to be hard, full of misery.

Internet made e-banking trustworthy and useful. Real time banking, 24x7 days

banking, banking from anywhere, safe and secure banking, high performance

and flexibility. E-Banking is using everyday advancements in technology, which

makes it smart and banking system of today and tomorrow. .Bank customers

across the world are now more willing to bank online as they are more

comfortable with internet. They also want to avoid teller lines and telephone

queues. As a consequence of the popularity of the Internet, hundreds of

thousands of Internet users are trying electronic banking. Internet continues to

expand the convenience associated with electronic banking will attract more

customers. One expectation of electronic banking is that it will replace the need

for writing checques. In today’s market, “According to preliminary data from the

latest Federal Reserve survey of patterns of consumer spending, almost four-

fifths of consumer expenditures are handled by cheques directly or indirectly.”

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This means that electronic banking has a very large potential for use since

many people expect that electronic cheques will substitute paper cheques.

Moreover, for consumers, electronic money (electronic cash and electronic

cheques) means greater efficiency than using coins, paper bills, and traditional

banks. The electronic banking system brings the convenience of 24-hours, seven

days a week, banking by offering home PCs tied directly to a bank’s computers.

In addition, electronic money also offer greater security than a paper-and-coin

system. Users are able to make a backup copy of their funds and if the electronic

money is stolen, the users can invalidate the serial number just as they now stop

payment on a paper check.

MEASUREMENT OF E-BANKING SERVICES

Banks are investing a lot of money on web technologies and are therefore

expecting numerous benefits on their investments. The intensifying competition

on today’s market has forced banks to seek profitable ways to differentiate

themselves. The success in their customer centered businesses is to deliver

high service quality. Banks have become more aware of customers needs and

demands, due to the intensifying competition.

Therefore the banks are seeking profitable ways to differentiate

themselves and their services towards their competitors. With the basic

understanding of service quality, the measurements, that can be obtained both

traditionally and online within the banking industry is important to consider how

well designed computer programs and web pages can obtain competitive

service. Quality can be seen as the extent to which a service meets customers

needs and expectations (Lewis. B & V.Mitchell 1994,)7

7 Lewis.B &V.Mitchell 1994, service quality , students assessment of banks and societies. International journal of Bank marketing. Vol.12, pp3-12.

5

Al. Hawari M and W.Tony 2006)8 describes that service quality impacts on

customer satisfaction which in turn affects the financial performance of banks.

Keeping existing customers as well as attracting new ones is a critical concern.

Hence it is important to analyze the service qualities of e-banking services

delivered over internet.

Service quality involves the degree of customer satisfaction attained by

businesses while meeting the needs and expectations of the customers who are

key actors of the business. Perceptions can be defined as the consumers’ beliefs

concerning the received or experienced service.

ESSENTIALS OF COMPARATIVE STUDY OF E-BANKING SERVICES The growth of e-banking with the increase in the range of interface options

available to access online , banking solution has resulted in a steady increase in

the number of customers interacting through remote channels, to a greater extent

than before. In a climate of increasing online competition banks that have

chosen to retain extensive branch networks are re-aligning the roles of staff in

these branches and moving towards a relationship driven sales culture.(Durkin 2007)9 Trichy is an educational city where maximum number of professionals

and business people carry the commercial activities through banks. To know how

far the customers of the banks are utilizing different e- banking services for their

convenience a comparative study is done among the select banks in Trichy.

STATEMENT OF PROBLEM

The government is launching many new programs in the country which are

suitable to people’s community in order to meet the objective of country’s

development. One such program is launching of e-banking services. As the e-

banking services have started flourishing in the district in the past few years, the

banking organizations have to meet the competition among the banking sector. 8 Al.Hawari M and W.Tony 2006)The effect of automated service quality on Australian banks financial performance and the mediating role of customer satisfaction. Market intelligence planning vol.24, pp 127-147 9 Durkin, M. (2007) ‘On the role of bank staff in online customer purchase’, Marketing Intelligence & Planning Journal, Vol. 25, No. 1, pp.82–97.

6

Hence they are forced to do the various forms of e –banking services. It is very

important in the point of view of the banks to have a study about the opinion and

satisfaction of the customers. So the purpose of the research is to study the

views of the customers in using the e-banking services. This study is conducted

in selective nationalized and private commercial banks in Trichirappalli district.

The respondents of the study were the customers of the banks using various

e-banking services. (ATM/Debit card, credit card, online banking, mobile banking

and Tele banking). Therefore the researcher has identified the research area to

find the geniuses of e-banking and it is found to be important to have a

comparison between the nationalized banks and private banks. Therefore an

attempt is made by the researcher to have a comparative study between the

nationalized banks and the private banks on the basis of opinions of customers.

SCOPE OF THE STUDY The research is based on the customers’ perception regarding e-banking

services. The research discusses the opinion of the customers regarding the e-

banking services provided by the selected banks and the qualities of the e-

banking services in the area of reliability, responsiveness, security, easy use,

accessibility and efficiency. Also the research analyses the problems faced by

the customers while using the e-banking services. The research evaluates the

relationship between the activities undertaken through e-banking services by the

customers, the qualities of e-banking services and the problems of e-banking

services.

The researcher has taken ATM/debit card, credit card, mobile banking,

online banking and Tele banking as the e-banking services which the customer

uses for various modes of services like mobile recharge, payment of telephone

bill, payment of electric bill, money transfer, railway ticket booking, air ticket

booking, filing of tax returns , investments etc). The researcher also analyses the

problems faced by the customers while dealing with the e-banking services.

7

OBJECTIVES 1. To study the nature of e-banking services provided by the selected

nationalized and private commercial banks in Trichirappalli district.

2. To evaluate, analyze and compare the opinions and satisfaction level of

customers of e-banking services provided by the selected nationalized

and private banks in Trichirappalli district.

3. To understand and compare the problems faced by the customers of

nationalized and private commercial banks in using e-banking services

4. To offer suggestions to improve the e-banking customer services.

HYPOTHESIS

1. There is a significant difference between nationalized banks and private

banks of the respondents and the e-banking services.

2. There is a significant difference between nationalized banks and private

banks of the respondents and the problems of e-banking services.

3. There is a significant difference between age, gender, occupation,

education, monthly income of the respondents and the qualities of overall

e-banking services.

4. There is a significant difference between account access through internet

of the respondents and the qualities of overall e-banking services.

5. There is a significant relationship between nature of services like

ATM/debit card, Credit card, Mobile banking, Online banking and Tele-

banking of the respondents and their overall e-banking services.

6. There is a significant relationship between various modes of services(

mobile recharge, payment of telephone bill, payment of electric bill,

money transfer, railway ticket booking, air ticket booking, filing of tax

returns , investments and others) of the respondents and their overall e-

banking services.

7. There is a significant relationship between various modes of services(

mobile recharge, payment of telephone bill, payment of electric bill,

money transfer, railway ticket booking, air ticket booking, filing of tax

8

returns , investments and others) of the respondents and their various

problems of e-banking.

METHODOLOGY The customers who are making use of the electronic banking services

provided by nationalized and private banks in Trichirappalli district constitute the

universe. Since the study is a comparative study on E-banking services among

the banks, the total commercial banks are classified into two namely,

nationalized banks and private banks. The researcher randomly selected five

nationalized banks and five private banks from among the banks which are

popularly known for e-banking services.

State bank of India, Indian Bank, Indian Overseas bank, Canara Bank,

Bank of India are the banks selected from the nationalized category. ICICI Bank,

Lakshmi Vilas Bank, Karur Vysya Bank, Catholic Cyrian bank, Federal bank are

the banks selected from private bank sector. The researcher identified and

selected sample respondents who are provided e-banking services by the

selected nationalized and private banks not exceeding 50 number from each of

the nationalized bank category and private bank category under simple random

sampling technique. Therefore the sample size is 500. The necessary primary

data was collected from the sample respondents by personal interview method.

A process of cross-checking was highly established to ensure the authenticity of

the data and the veracity of the interviews with the help of pre-testing and pilot

study mechanism.

The secondary data and other reviews are collected from the books,

journals, newspapers, government publications, annual reports, bulletins and

VIP’s addresses. The secondary data was also collected from Head quarters of

each of the selected nationalized and private banks for the formulation and

inclusion of the chapter, profile of the study. The nature of the study is the

combination of comparative and exploratory study. Analysis of the study is done

with the help of the relevant statistical tools like Kruskal-Wallis test, Mann

9

Whitney test, Chi-square test, T-test, Correlation analysis, one way anova and

inter correlation matrix analysis

RESEARCH DESIGN

Nature of bank Sl.no Name of banks National

(n=250) Private (n=250)

1 Canara Bank 50(20%) 0

2 SBI 50(20%) 0

3 IOB 50(20%) 0

4 IB 50(20%) 0

5 Bank of India 50(20%) 0

6 KVB 0 50(20%)

7 LVB 0 50(20%)

8 ICICI 0 50(20%)

9 CSB 0 50(20%)

10 Federal Bank 0 50(20%)

LIMITATIONS The study is restricted to the customers’ perspectives. Therefore it does

not cover any performance appraisal or opinion on e-banking services from

bankers’ perspective. The results of the study cannot be substantiated to other

areas of the state and country.

CHAPTERISATION SCHEME

The first and introductory chapter deals with introduction and design of the

study and describes briefly the theme of the study, significance of the

study, specific objectives of the study, hypothesis, methodology and

limitations.

The second chapter deals with concepts and review of literature.

The third chapter gives profile of the study area and progress of

e-banking in India.

10

The fourth chapter presents the analysis and interpretation of the study.

The fifth chapter describes the summary of major findings, suggestions

and conclusions.

The next chapter deals with the concepts and review of the literature

which forms the base of the study.

CHAPTER – II CONCEPTS AND REVIEW OF LITERATURE

This chapter deals with several important concepts related literature and

theoretical information which have been formulated for the support of the study.

Technology has become the engine for triggering rapid change. It is no

longer considered merely for transaction processing or confined to management

information systems. It implies the integration of information system with the

communication technology and of innovative application to product

manufacturing, design and control. With the development of technology, the

world has become a global village and ushered in a revolution in the banking

industry. R.C.Dangwal, Kailash Sakalani and Swate Anand, 2010.1 “As per the statistics, India has experienced a high growth rate in the last

four years, the consumers’ spending has claimed up to 75 % as a result the

Banking Industry is expected to grow further in the future days.

(Radhakrishnan, 2008)2

Van Hoeck, (2001)3.With cyber cafes and kiosks springing up in different

cities access to the Net is going to be easy. Internet banking (also referred as e

banking) is the latest in this series of technological wonders in the recent past

involving use of Internet for delivery of banking products & services. E-business

has been continuously growing as a new industry during the last decade

In the wake of the internet revolution, electronic commerce emerged and

allowed businesses to interact more effectively with their customers and other

corporations. In this proliferated information age, banking industry has been

using this new communication channel to reach its varieties of customers.

1 Dangwal.R.C., Kailash Sakalani and Swate Anand,the upcoming Technology and the associated innovations,by Pg.26, Professional banker. January 2010. The Icfai University Press. 2 Radhakrishnan, “ Organization retailing in India” Praxix- Business line, January 2008, pp 44-49 3 Van Hoeck, R. (2001) ‘E-supply chains – virtually non-existing’, Supply Chain Management: An International Journal, Vol. 6, No. 1, pp.21–28.

12

Electronic commerce (e-commerce) has become a very important technological

advancement for businesses by changing business practices. Brodie et al (2007).4 Internet banking is changing the banking industry and is having the

major effects on banking relationships. Banking is now no longer confined to the

branches were one has to approach the branch in person, to withdraw cash or

deposit a cheque or request a statement of accounts. E-banking technologies

have proliferated in recent years, and the availability of a wide range of products

has led to increasing adoption among consumers. These technologies include

direct deposit, computer banking, stored value cards, and debit cards Servon and Kaestner, (2008).5 The terms ‘PC banking’, ‘online banking’, ‘internet

banking’, ‘telephone banking’ or ‘mobile banking’ refer to a number of ways in

which customers can access their banks without having to be physically present

at the bank branch. E-banking may be understood as a term that covers all these

ways of banking business electronically Leow and Bee, (1999)6

Today banks have centralized operations and are increasingly moving

towards core banking solutions network-based computing, new delivery

channels, such as networked ATMs, internet banking, smartcards based

products etc. Filomina P.George, Dr.S.Mercia Selva Malar, Mr. Sudheendran M. 20097. Internet banking (IB) is a radical technological innovation with potential

to change the structure and nature of banking. To sustain business

competitiveness, more and more banks are transforming from their traditional

4 Brodie RJ, Winklhofer H, Coviello NE. Johnston WJ (2007). “Is emarketing coming of age? An examination of the penetration of emarketing and firm performance”, J. Interactive Markt., 21 (1): 2-21 5 Servon, L.J. and Kaestner, R. (2008) ‘Consumer financial literacy and the impact of online banking on the financial behavior of lower-income bank customers’, Journal of Consumer Affairs, Vol. 42, No. 2, pp.271–305. 6 Leow, H. and Bee, H. (1999) ‘New distribution channels in banking services’, Bankers Journal Malaysia, Vol. 5, No. 1, pp.45–56. 7 Filomina P.George, Dr.S.Mercia selva malar, M.Sudheendran, Technology enhanced service –scape commercial banks in India, Pg.39, August 2009, professional banker. The Icfai University press.]

13

approach of “bricks and mortar” into a “clicks and mortar” one under the recent

emergence of electronic commerce and business. Chau, P & Lai.V, 20038. A.Subbiah & S Jeyakumar 20089 Core banking is a newly developed

concept adopted by banks. In future, the smooth functioning of banks will

depend on the pace of technological upgradation. The Indian banking system is

one of the largest, if not the largest, in the world today. The branch network is

extensive and these branches are now spread out into the remote corners of our

country. Information technology has immense potential for widespread branch

banking. The benefits of core banking are reduced transaction costs, increased

customer satisfaction, rapid implementation of e-banking services, management

of ever-increasing transaction volume and better security.

The customer is directly benefited by way of happy banking experience.

Core banking is a new trend which has increased the speed of banking

transactions. Rapid improvement in technology, faster communication facilities

and availability of high computer power, net banking and core banking has

resulted in a revolution in the banking industry world -wide. Miranda-Petronella,(2009)10 E-banking is the first of those banking

services that really economize time, because it allows to the user to accomplish

from behind the computer many operations in the bank account, represents the

computational solution that allows to the holder to have access at distance at the

capitals from his account, purposing to obtain information about his account

situation and the situation of the effected operations, of the payment and of the

capitals transfers over a beneficiary, by a computational application, of a

authentication method and of a communicational average, the e-banking is

8 Chau, P & Lai, V., “An Empirical Investigation of the Determinants of User Acceptance of Internet Banking,”Journal of Organizational Computing and Electronic Commerce, vol. 13, no. 2, pp. 123-145, 2003. 9 A Subbiah & S Jeyakumar Customer Service in Commercial Banks in India : A Study with Reference to Core Banking OCT-dec 2008,vol.xxix,no.3 Vinimaya archives. 10 Miranda-Petronella, E-banking-Modern Banking Services, Economic Science Series, 2009, Vol. 18 Issue 4, p1093-1096.

14

absolutely necessary in the integration conditions. Technology enhances

Commercial Bank’s ability to deliver financial services in new and innovative

ways.

One Can View

Own accounts and related ones

Credit and Debit cards

Fund’s Time deposit, Savings certificates

Loans

Treasury bond

Latest transactions of current month

View, print and save monthly statements (since year 2004)

One canTransfer

Between accounts

To another account (Digital signature required)

To credit card

To another credit card (Digital Signature required)

To any charity

One can Request

Cheque book

To change the mailing address

To inquire or complain,

To add related account (Power of attorney, parent/child or account with

different customer number)

To manage supplementary cards,

To dispute credit card,

To make External transfer (Digital signature required )& Digital Signature

registration

15

Also, one can

Stop credit card

Subscribe in Alerts service (SMS /E mail)

Consumers are attracted to these technologies because of convenience,

increasing ease of use, and some instances cost saving Anguelov et al.(2004)11. All business, including small and medium scale industries, no matter

their geographical locations, are all beneficiaries of e-banking. It encompasses

all kinds of commercial transaction that is conducted on an electronic medium,

mostly through the internet.

E-banking links business to customers no matter their geographical

location. It allows companies to make new business contacts from different

global business alliances, test new products and services, and make market

research and other enquiries all at a minimum cost both financial and otherwise

(Shin, 2008).12

In contrast to traditional banking, internet banking involves non-human

interactions between customers and online bank information system.

Customer satisfaction, customer retention and new customer acquisition

are the key factors in i-banking system. This becomes more important since the

acquisition costs in online banking exceed that of traditional off line business by

20%-40% (Reibstein, 2002)13. The i-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 (Arunachalam and Sivasubramanian, 2007)14 business, including small and medium scale

11 Anguelov, C.E., Marianne, A.H. and Hogarth, J.M. (2004) ‘U.S. consumers and electronic banking:1995–2003’, Federal Reserve Bulletin, Vol. 90, Winter, pp.1–18. 12 Shin, K.H. (2008) A causal analysis’, Internet journal for Electronic Finance, Vol. 2, No. 2, pp.180–196. 13 Reibstein, D.J. (2002) ‘What attracts customers to online stores, and what keeps them coming back?’, Journal of the Academy of Marketing Science, Vol. 30, pp.465–473. 14 Arunachalam, L. and Sivasubramanian, M. (2007) ‘The future of Internet Banking in India’,Academic Open Internet Journal, Vol. 20.

16

industries, no matter their geographical locations, are all beneficiaries of e-

banking. It encompasses all kinds of commercial transaction that is conducted

on an electronic medium, mostly through the internet.

Cristina, Beatrice, (2008),15 The evolution of electronic banking(e-

banking) started with the use of automatic teller machines (ATMs) and has

included telephone banking, direct bill payment, electronic fund transfer and

online banking.

ELECTRONIC BANKING(E-BANKING) E-banking or electronic banking refers to conducting banking activities

with the help of information technology and computers. E-banking is a mix of

services which include Internet banking, Mobile banking, ATM kiosks, Fund

Transfer System, Real Time Gross Settlement (payment & settlement system),

Credit/Debit/Smart/Kisan Cards, Cash management services, and Data

warehousing, Operational data for MIS and Customer Relationship

Management. Latest innovations in technology like broadband transmission,

internet access via mobiles and WebTV will further provide impetus to digital

revolution. Banks are scanning the image of a cheque which can be zapped to

another bank, into the depository and back to customer's bank. Banking

transactions can be carried out 24 hours a day using these methods. In fact

concept of Anytime, Anywhere banking is making it easy for customers to access

their money more conveniently.

INTERNET BANKING SERVICES Internet banking refers to systems that enable bank customers to get

access to their accounts and general information on bank products and services

through the use of bank’s website, without the intervention or inconvenience

15 Cristina, Titrade; Beatrice, E-Banking-Impact, Risks, Security, Economic Science Series, 2008, Vol. 17 Issue 4, p1537-1542

17

ANYWHERE BANKING With expansion of technology, it is new possible to obtain financial details

from the bank from remote locations. Withdrawals from other stations have been

possible due to inter- station connectivity of ATM. The Rangarajan committee

had also suggested the in station of ATM at non- branch location, Airports,

Hotels, Railway stations, office computers, Remote banking is being further

extended to the customer's office and home. Internet banking is a new delivery

channel for banks in India. The i-banking channel is both an informative and a

transactional medium. However, i-banking has not been popularly adopted in

India as expected (Ravi et al., 2007)16. E-banking has been around for some

time in the form of automated teller machine and telephone transactions. More

recently, it has been transformed by the internet – a new delivery channel that is

fast, convenient, available round the clock, and from whatever the customer’s

location (Saleh and Andrea, 2002)17. Electronic distribution channels provide

alternatives for faster delivery of banking services to a wider range of customers

(Kaleem and Ahmad, 2008)18. Most of the consumers who start banking online

do it because they need to pay bills frequently and would like to do it with

minimum effort. Besides that, people use the internet banking to keep an eye on

their money matters, view their account balance and check receiving payments

from other parties Kolodinsky, J.M., Hogarth, J.M. and Hilgert, M.A. (2004)19. In addition to previous e-banking delivery systems, Automated Teller Machines

(ATMs) and telephone transaction processing centres, online banking provides

banks a new and more efficient electronic delivery tool (Costanzo, 2000)20.

16 Ravi, V., Mahil, C. and Vidya Sagar, N. (2007) ‘Profiling of internet banking users in india using intelligent techniques’, Journal of Services Research, Vol. 6, No. 2 (October 2006–March 2007), pp.61–73. 17 saleh and Anderea 2002 challenges of the e-banking revolution, a quarterly magazine of international monetory fund (IMF), vol. 39,no.3,pp 34-56. 18 Kaleem, A & Ahmad, S., “Bankers’ Perceptions of Electronic Banking in Pakistan,” Journal of Internet Banking and Commerce, vol. 13, no. 1. 2008 pp 23-36 19 Kolodinsky, J.M., Hogarth, J.M. and Hilgert, M.A. (2004) ‘The adoption of electronic banking technologies by US consumers’, International Journal of Bank Marketing, Vol. 22, No. 4, pp.233–241 20 Costanzo, C. (2000) ‘Pioneer internet-only bank has a new strategy’, American Banker, Vol. 165, No. 19, pp.1–2.

18

AUTOMATED TELLER MACHINES (ATMS) The cash machine or automated teller machine (ATM) are self service

vendor machine that help the banks to provide round the clock banking services

to their customers at convenient places without visiting to the bank premises.

They enable the banks to transact more business by offering various services in

cost effective way on one side and to get more customer satisfaction on the

other. To avail the ATM services customers are provided with ATM card, which is

a small plastic card with magnetic strip, containing information about the name of

bank, name of the customer, card number, validity period and signature panel.

The magnetic strip contains information about the customer which enables the

banks to verify the identity when the card is inserted at the slot provided in ATM.

The following functions can be performed on ATM.

The use of paper cheques has been supplemented step-by-step with e-

cheques (i.e., electronic images) allowing banks to have more storage capacity,

reduce costs, and improve customer services (Rose and Hudgins, 2005)21.

Banks have traditionally been in the forefront of harnessing technology to

improve their products and services. They have over the time been using

electronic and telecommunication networks for delivering a wide range of value

added products and services. The range of services and products offered by

different banks vary widely both in their contents and sophistication. E-banking

provides enormous benefits to consumers in terms of the ease and cost of

transactions Luis V. Casaló, Carlos Flavián, Miguel Guinalíu, (2008)22.

The relationship between digital capital of internet banking However, it can

be thought of as a service that allows customers to use some types of computers

to access account-specific information and possibly conduct transactions from a

remote location – such as at home or at the workplace (Saleh and Andrea,

21 Rose, P.S. and Hudgins, S.C. (2005) Bank Management and Financial Services, New York: McGraw-Hill Irwin. 22 Luis V. Casaló, Carlos Flavián, Miguel Guinalíu, (2008) "The role of satisfaction and website usability in developing customer loyalty and positive word-of-mouth in the e-banking services", International Journal of Bank Marketing, Vol. 26 Iss: 6, pp.399 - 417

19

2002)23.The customer can never overspend because the system rejects any

transaction which exceeds the balance in his account. The bank never faces a

default because the amount spent is debited immediately from the customer’s

account.

Rajesh Kumar Srivastava (2007)24 The growth in e-banking with the

increase in the range of interface options available to access online banking

solutions has resulted in a steady increase in the number of customers

interacting through remote channels to a greater extent than before. In a climate

of increasing online competition, banks that have chosen to retain extensive

branch networks are re-aligning the roles of staff in these branches and moving

towards a relationship-driven sales culture (Durkin, 2007)25. E-banking also can

increase competition among banks, and allows banks to penetrate new markets

and thus expand their geographical reach. Some even see e-banking as an

opportunity for countries with underdeveloped financial systems to leapfrog into

advanced stages. Customer in such countries can access services more easily

from banks outside one’s own country through wireless communication systems,

which are developing more rapidly than traditional ‘wired’ communication

networks (Gao and Owolabi, 2008)26.

In contrast to traditional banking, i-banking involves non-human

interactions between customers and online bank information system. Customer

satisfaction, customer retention and new customer acquisition are the key factors

in i-banking system. This becomes more important since the acquisition costs in

online banking exceed that of traditional offline business by 20%–40%

(Reibstein, 2002)27.

23 Saleh, M.N. and Andrea, S. (2002) ‘Challenges of the “e-banking revolution”, A Quarterly Magazine of International Monetary Fund (IMF), Vol. 39, No. 3, pp.34–56 24 Rajesh Kumar Srivastava (India), Innovative Marketing, Volume 3, Issue 4, 2007 25 Durkin, M. (2007) ‘On the role of bank staff in online customer purchase’, Marketing Intelligence & Planning Journal, Vol. 25, No. 1, pp.82–97. ) 26 Gao, P. and Owolabi, O. (2008) ‘Consumer adoption of internet banking in Nigeria’, Int. J. Electronic Finance, Vol. 2, No. 3, pp.284–299 27 Reibstein, D.J. (2002) ‘What attracts customers to online stores, and what keeps them coming back?’, Journal of the Academy of Marketing Science, Vol. 30, pp.465–473.

20

CREDIT CARDS/DEBIT CARDS Credit Card is a post paid card. The Credit Card holder is empowered to

spend wherever and whenever he wants with his Credit Card within the limits

fixed by his bank. Debit Card, on the other hand, is a prepaid card with some

stored value. Every time a person uses this card, the Internet Banking house

gets money transferred to its account from the bank of the buyer. The buyers

account is debited with the exact amount of purchases. An individual has to open

an account with the issuing bank which gives debit card with a Personal

Identification Number (PIN). When he makes a purchase, he enters his PIN on

shops PIN pad. When the card is slurped through the electronic terminal, it dials

the acquiring bank system - either Master Card or VISA that validates the PIN

and finds out from the issuing bank whether to accept or decline the transactions.

The customer can never overspend because the system rejects any transaction

which exceeds the balance in his account. The bank never faces a default

because the amount spent is debited immediately from the customers’ account.

MOBILE BANKING

Mobile banking (also known as M-Banking, m-banking, SMS Banking etc.)

is a term used for performing balance checks, account transactions, payments

etc. via a mobile device such as a mobile phone.. Mobile banking is a way for

the customer to perform banking actions on his or her cell phone or other mobile

device. It is a quite popular method of banking that fits in well with a busy,

technologically oriented lifestyle. It might also be referred to as M-banking or

SMS banking. The amount of banking you are able to do on your cell phone

varies depending on the banking institution you use. Some banks offer only the

option of text alerts, which are messages sent to your cell phone that alert you to

activity on your account such as deposits, withdrawals, and ATM or credit card

use. With the combination of two most recent technological advancements–

internet and mobile phone, a new service (mobile data service) is thus enabled

and the first such wireless internet commercial transaction is performed by the

21

banking industry (Barnes and Corbitt, 2003)28. It is believed that m-banking will

provide another new channel for banking services, especially for certain remote

areas where online internet is still unavailable. Strategic implications and

customer perception of m-banking services are explored (Laukkanen and Lauronen, 2005)29 with a focus on the consumer value creation and a better

understanding about the customer-perceived value of m-banking services.

From the bank viewpoint, adoption of Internet banking will lead to cost

reduction and improved competitiveness. This service delivery channel is seen

as powerful because it can retain current Internet-based customers who continue

using banking services from any location. Moreover, the electronic service

channel can also provide efficient services to customers via the mobile

technology Prendergast G, and Marr N. (1994).30

Donell (2003)31 viewed electronic banking as banking services that

consumers can access, by using Network system or an Internet connection to a

bank’s computer center, in order to perform banking tasks, receive and pay bills,

and so forth. Many other financial services can be accessed via the Internet. To

most people, electronic banking means 24-hour access to cash through an ATM

or paychecks deposited directly into checking or savings accounts (Hillier, 2002).32

Diniz et al. (2005)33 propose and test a model of three dimensions to

evaluate virtual business environments from the user's point of view:

28 Barnes, S.J. and Corbitt, B. (2003), International journal of Mobile communications, Vol. 1, No. 3, pp.273–288. 29 Laukkanen, T. and Lauronen, J. (2005) ‘Consumer value creation in mobile banking services’, Int. J. Mobile Communications, Vol. 3, No. 4, pp.325–338. 30 Prendergast G. and Marr N. (1994), “The Future of Self-Service Technologies in Retail Banking”, The Service Industries Journal, 14(1), 94-114 31 Donnell Yuks K. (2003), New System of banking; Drawill Publications, New York. 2003, Pg, 24-25. 32 Hillier, D. (2002). Money Transmission and the Payments Market, Financial World Publishing. 33 Diniz, E., Porto R.M., Adachi T. (2005), IB in Brazil: Evaluation of functionality, security and usability, The Electronic Journal of Information Systems Evaluation 8 (1), pp. 41-50.

22

functionality, security and usability. They select three banks in Brazil for IB

services testing on the model’s dimensions

Diniz(1998)34 in his view states that Electronic banking encompasses a

broad range of established and emerging technologies. Some are ‘‘front end’’

products and services that consumers opt for, such as ATM cards and computer

banking; others are ‘‘back end’’ technologies used by financial institutions,

merchants, and other service providers to process transactions, such as

electronic check conversion. Some are tied to a consumer bank account; others

are unrelated to a bank account but instead store monetary value in a database

or directly on a card. It is the types of services through which bank customers

can request information and carry out most retail banking services such as

balance reporting, inter-account transfers, bill-payment, etc., via

telecommunication network without leaving their home /organization. Amin.H. 2007.35 Arasli, H., Mehtap-Smadi, S. and Katircioglu, S. T. (2005)36 Banks have

realized that in order to remain competitive, they need to restructure their

services to make use of rapid technology as well as to offer diverse service

portfolio.

E-banking has emerged as a significant and rapidly growing component of

the world economic exchange. Through e-banking the world economic exchange

has been reduced to a tiny global village in terms of its information capacity and

the resources it holds which can be accessed by anybody from anywhere in the

globe (Hwang et al., 2007).37

34 Diniz, E. (1998), Web banking in USA, Journal of Internet Banking and Commerce, vol. 3 (2), 35 Amin, H., “Internet Banking Adoption among Young Intellectuals,” Journal of Internet Banking and Commerce, vol. 12, no. 3. 2007. 36 Arasli, H., Mehtap-Smadi, S. and Katircioglu, S. T. (2005), “Customer service quality in the Greek Cypriot banking industry”, Managing Service Quality, Vol. 15(1), p.41-56. 37 Hsin-Ginn Hwang, Rai-Fu Chen, Jia-Min Lee, Measuring customer satisfaction with internet banking: an exploratory study, International Journal of Electronic Finance, Vol.1, Number 3/2007, PP 321-335

23

Providing i-banking is increasingly becoming a ‘need to have’ than a ‘nice

to have’ (M.S. Khan, S.S. Mahapatra and Sreekumar, 2009)38 service.

The i-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 (Arunachalam and Sivasubramanian, 2007)39. Internet

banking is a new delivery channel for banks in India. The i-banking channel is

both an informative and a transactional medium. However, i-banking has not

been popularly adopted in India as expected (Ravi et al., 2007)40.

CUSTOMER SATISFACTION Customer satisfaction is a critical issue in the success of any business

system, traditional or online. In a turbulent commercial environment in order to

sustain the growth and market share, customer satisfaction is critical for

establishing long term client relationship. (Peterson R.A. and et. al.(1997).41

SERVICE QUALITY DIMENSIONS In the view of changing scenario, the service quality dimensions have

become vital. However among all, responsibility, reliability, easy use,

accessibility, security, efficiency have vital bearing on the success of the e-

banking. The research is the common method of measuring service quality.

Service quality can thus be defined as the difference between customer

expectation of service and the customer experience. If the expectations are

38 Khan, M.S., Mahapatra, S.S. 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. 39 Arunachalam, L. and Sivasubramanian, M. (2007) ‘The future of Internet Banking in India’,Academic Open Internet Journal, Vol. 20. Available online at: www.acadjournal.com 40 Ravi, V., Mahil, C. and Vidya Sagar, N. (2007) ‘Profiling of internet banking users in india using intelligent techniques’, Journal of Services Research, Vol. 6, No. 2 (October 2006–March 2007), pp.61–73 41 Peterson R.A. and et.al., “ Exploring the implication of the internet for consumer marketing”, Journal of the Academy Marketing Science, 1997, vol 25,no.4,pp 329-346.

24

greater than performance, then the perceived quality is less than the satisfaction

level and hence customer dissatisfaction occurs. (Olorurnnirvo F)42 Service differentiation is necessary for the growth and development of

service businesses. (Thomas, Dan R.E.,1978)43. Today, the Internet has been

believed to become a full-fledged delivery and distribution channel supporting for

consumer-oriented applications aimed at effectively and efficiently providing

financial products and services to customers in the banking sector (Pham, 2010)44.

Additionally, internet banking offers the option to provide economic and

convenient services without reducing the quality of services offered to customers

(Akinci et al., 2004)45. Service quality is one of the main factors determining the

success/failure of electronic commerce. Therefore, customer perception and

preferences of service quality have a significant impact on bank’s success. E-

banking does not only encompass the way one shops over the internet, but also

the ways one carries out banking transactions. This allowed customers, more

independence in the choice on where and when to bank. It is an obligation for

banks to apply better strict security levels due to the many kinds of threats that

are recently identified with these alternative channels (Smith, 2006)46.

Abha Chandra, Mrs.Vinitha Sharma,(2010)47 Privacy preserved

e-society consists of three intangible factors firstly applications, which have data

to share with authorized clients; secondly clients who want data that contains in

42 Olorurnniro F., “ Service Quality. Customer satisfaction and behavioural interntions in the service factory., Journal of Service Marketing, vol.20, issue, pp 59-72. 43 Thomas, Dan R.E., Strategy is different in Service Business, Harvard Business Review, 1978,vol,56, issue 4, pp 158-165. 44 Pham, L. 2010. A conceptual framework for e-banking service quality in Vietnam. of Accepted to be published in The Business Studies Journal 45 Akinci, S., Aksoy, S. and Atilgan E. (2004), “Adoption of Internet banking among sophisticated consumer segments in an advanced developing country”, The International Journal of Bank Marketing, Vol. 22(3), p.212-232 46 Smith, A.D. (2006) ‘Exploring security and comfort issues associated with online banking’, Int. J. Electronic Finance, Vol. 1, No. 1, pp.5–17. 47 Abha Chandra Mrs.Vinita Sharma, Analytical Research on Indian Online Banking and Users’ Privacy January 2010 - Volume-2, Issue 2

25

the applications and finally the privacy control factor which is required to maintain

records about the purposes. People now a day are more concerned about their

personal information, which is supposed to be leaked out from the organizations

to which they are trading online.

There are many types of banks in India, which provide net banking or

online banking service to the consumers through Internet. The significant point to

be noted with respect to these banks is to make their personal and financial

information totally secure so that no unauthorized person or organization should

acquire their data to mistreat over the Internet. An empirical study is conducted to

evaluate the existence and format of privacy policies of different banks of India in

conducting online banking through their websites.

Abhav Jain B S Hundal, 200648 Rapid changes in the financial services

environment- increased competition by new players, product innovations,

globalization and technological advancement— have led to a market situation

where battle for customers has become intense. In order to rise up to the

challenges, service providers are even more interested to enhance their

understanding of consumer behavior patterns. This paper examines the forces

that can act as barriers in mobile banking service adoption. A quantitative survey

sheds more light on this research issue. The data was collected from a survey in

the Northern region of India and includes 330 respondents.

E. AbuShanab, J.M. Pearson,(2007)49 The purpose is to investigate the

key determinants of the adoption of internet banking in Jordan. The paper also

attempts to validate the appropriateness of the Unified Theory of Acceptance and

Use of Technology (UTAUT) within the context of internet banking. The results of

this study indicate that UTAUT provides a good foundation for future technology

acceptance research. The three main predictors relevant to this study 48 Abhay Jain B S Hundal Barriers In Mobile Banking Adoption In India. The IUP journal of Bank Management, August,2006, issue 3, pg 64-73 49 E. AbuShanab, J.M. Pearson, (2007) "Internet banking in Jordan: The unified theory of acceptance and use of technology (UTAUT) perspective", Journal of Systems and Information Technology, Vol. 9 Iss: 1, pp.78 – 97

26

(performance expectancy, effort expectancy, and social influence) were

significant and explained a significant amount of the variance in predicting a

customer's intention to adopt internet banking. The results also indicate that

gender moderated the relationships between the three independent variables

and the dependent variable (behavioral intention).

Adelowo Solomon Adepoju Mohammed Enagi Alhassan201050 Over

time, consumers have come to depend on and trust the Automatic Teller

Machine (ATM) to conveniently meet their banking needs. But in recent time

there have been a proliferation of ATM frauds in the country even and across the

globe. Managing the risk associated with ATM fraud as well as diminishing its

impact is an important issue that face financial institutions as fraud techniques

have become more advanced with increased occurrences. The ATM is only one

of many Electronic Funds Transfer (EFT) devices that are vulnerable to fraud

attacks. This paper carried out an empirical research to analyze the cases of

ATM usage and fraud occurrences within some banks in Minna. The research

identifies the common ATM fraud, how, where and when these frauds are

perpetuated and then proffer security recommendation that should be adhered to

by both the banks as financial institutions and the ATM users in order to eliminate

or reduce it to the barest minimum.

Agarwal.N. Agarwal. R., Sharma, P. and Sherry, A. M. (2003)51

explored the role of e-banking in e-democracy. With the development of

asynchronous technologies and secured electronic transaction technologies,

more banks and departments were using Internet for transactional and

information medium. Initiatives such as E-SEVA and FSC’s are the milestones

towards achieving comprehensive e-governance.

50 Adelowo Solomon Adepoju Mohammed Enagi AlhassanChallenges of Automated Teller Machine (ATM) Usage and Fraud Occurrences in Nigeria – A Case Study of Selected Banks in Minna Metropolis Journal of Internet Banking and Commerce, August 2010, vol. 15, no.2) 51 Agarwal, N., Agarwal, R., Sharma, P. and Sherry, A. M. (2003), “Ebanking for comprehensive EDemocracy: An Indian Discernment,” Journal of Internet Banking and Commerce, Vol. 8, No. 1, June.

27

Ahmad Zakaria Siam,(2006)52 This study aims at examining the effects of

electronic banking on bank’s profitability in Jordan. How banking sector finds

itself before a new fact imposed by technology revolution and digits to change

their work mechanisms from traditional means to electronic means and the

challenges banks face as a result. Furthermore, this study investigates the

reasons behinds providing electronic banking services through internet, their

impact on banking services in general and banks profitability in particular. Risks

and challenges involved are discussed The importance of this study and the

factors that make it unique is that, it discusses solely the topic of the effects of

electronic banking on banks profitability, while most of other studies discuss the

topic in general term. The findings of the study are the impact of electronic

banking on banks profitability will be feature of the short run due to the capital

investment by the banks on infrastructure and training but will be positive on the

long run.

Ahmed Audu, Sany Sanuri Mohd. (2010)53 This paper aims at

investigating the relationship between the electronic banking facilities, customers

employment sector and customers age group choice of banks. The results show

that there is no significant relationship between electronic banking facilities and

customers’ choice of banks. It was however found that there is significant

relationship between customers’ employment sector and customers’ age-group

on one hand and their choice of banks on the other hand. It was recommended

that the management of Nigerian commercial banks should find the relevant

factors that are considered important by customers of various age group to

appropriately segmenting the target market.

52 Ahmad Zakaria Siam, Role of the Electronic Banking Services on the Profits of Jordanian Banks, American Journal of Applied Sciences 3 (9): 1999-2004, 2006 53 Ahmed Audu, Sany Sanuri Mohd., Effects of Electronic Banking Facilities, Employment Sector and Age-Group on Customers’ Choice of Banks in Nigeria Journal of Internet Banking and Commerce, April 2010, vol. 15, no.1

28

Akhil Sahai, Vijay Machiraju, (2001)54 The World Wide Web has

unleashed people’s imagination and a plethora of new technologies have

emerged. Since these technologies have sprung up to address different

requirement, it has become imperative to understand how these different

technologies fit together. This paper presents the state of the art of these

different technologies and tries to present a coherent vision of their inter-

operation. In the current scenario Indian customers are moving towards internet

banking, slowly but steadily. Most of the big Indian banks like SBI, BOB and BOI

etc., have stated providing internet banking services.

Akinyele .S.T. and K.Olorunleke (2010)55 technology based self service

has greatly changed the way that service firms and customers interact and are

raising a host of research and practice issues relating to the delivery of e-service

which has become increasingly important not only in determining the success or

failure of electronic commerce but also in providing customers with superior

experience with respect to the interactive flow of information. The purpose of the

research study was to establish the relationship between technology and service

quality in the banking industry in Nigeria. The finding revealed that secure

services as the most important dimension, followed by convenient location of

ATM, efficiency.

Alain Yee-Loong Chong, Keng-Boon Ooi, Binshan Lin, Boon-In Tan,(2010)56 aim to empirically examine the factors that affect the adoption of

online banking in Vietnam. Perceived usefulness, perceived ease of use, trust

and government support were examined to determine if these factors are

affecting online banking adoption.

54 Akhil Sahai, Vijay Machiraju, 2001, “Enabling of the Ubiquitous e-service vision on the internet”, e-Service Journal 1.1 (2001) 5-19 55 S.T.Akinyele and K.Olorunleke,2010, Technology and Service Quality in the Banking Industry: An Empirical Study of Various Factors in Electronic Banking Services., International business management vol.4, issue 4, pg, 209-221,2010 56 Alain Yee-Loong Chong, Keng-Boon Ooi, Binshan Lin, Boon-In Tan, “Online banking adoption; An empirical analysis”. International Journal of Bank Marketing, vol.28, issue 4.,2010

29

Ali Sanayei ,Ali Noroozi, (2009)57 Nowadays technology is growing fast

and always adds new dimensions to our daily lives. In this way, Internet banking

systems allow users to manage financial affairs such as checking account

balances and transferring money between accounts as fast and easy as it can

be. This study is done in Iran and Malaysia, the basic structure in Malaysia

causes more concern, as well as use of this new way of banking..

Al Nahian Riyadh, Md. Shahriar Akter, Nayeema Islam (2009)58

Electronic banking offers numerous benefits to SMEs. SMEs can check account

balances, transfer money, pay bills, collect receivables and ultimately reduce

transaction costs and establish greater control over bank accounts. Despite the

benefits of e-banking to SMEs, there has been little research done on the factors

affecting its adoption. This research aims to investigate the factors that affect

SMEs’ adoption of e-banking in Bangladesh. It is well documented in the

literature that despite their availability and potential benefits, SMEs in

Bangladesh are slow in adopting e-banking services. For the purpose of

identifying factors affecting the adoption of e-banking by SMEs, TOE framework,

Technology Acceptance Model (TAM), Institutional Theory and Institutional

Intervention Theory are used. Drawing upon these as background theories, an

integrated conceptual framework for SMEs’ e-banking adoption is developed,

which incorporates both the rationalistic goal oriented behaviour of firms and the

external forces of technology adoption. Seven variables affecting e-banking

adoption by SMEs are identified. They are: organizational capabilities, perceived

benefits, perceived credibility, perceived regulatory support, ICT industries

readiness, lack of financial institutions readiness and institutional influence. This

model can be tested empirically for SMEs in Bangladesh as well as in other

developing countries.

57 Ali Sanayei, Ali Noroozi, "Security of Internet Banking Services and its Linkage with Users' Trust: A Case Study of Parsian Bank of Iran and CIMB Bank of Malaysia," icime, pp.3-7, 2009 International Conference on Information Management and Engineering, 200 58 Al Nahian Riyadh, Md. Shahriar Akter, Nayeema Islam The Adoption of E-banking in Developing Countries: A Theoretical Model for SMEs International Review of Business Vol. 5 No. 6 November 2009, Pp.212-230

30

Ali and Akter (2010)59 argued that a transitional period in the banking

sector of Bangladesh has been passing through since shifting from the traditional

banking system to the online banking system. These comments indicate that

gradually electronic banking is gaining its importance in Bangladesh. Customers

liking is necessary for the banking sector to elevate profitability, business

expansion and accomplishment. Now-a-day’s banking sector is modernizing and

expanding its hand in different financial events every day. At the same time the

banking process is becoming faster and easier. In order to survive in the

competitive field of the banking sector commercial banks are looking for better

service opportunities to provide their customer. The paper has been undertaken

mainly to find out whether e-banking can satisfy the customers or not.

Awamleh et.al. (2003)60 survey Jordanian banks and find limited evidence

of web usage at the intermediate level while the basic level use is dominant.

They also find the banks in Jordan are not fully utilizing concepts and

applications of web banking.

Abasanul Haque, Ahmad Zaki Hi Ismail, Abu Hayat Daraz,61 This study

investigated the determinant factors of consumers’ perception on E-banking

transaction in Internet banking by Malaysian bank consumers. The research

framework was developed to testify the statistical relationships between

consumer perceptions and E-banking transaction. Factor analysis was performed

to extraction and make initial decision on the number of factors underlying asset

of measured variables of interest. Thereafter, multiple regression was estimated

to anticipate the effects of the explanatory variables. This study offers an insight

into E-banking in Malaysia, which has not been previously been investigated and 59 Ali, Muhammad Mahboob, Akter, Nargis, (2010)14(a), “E-Business with special reference to on line banking of Bangladesh : An Analysis”, paper presented at the 17th Biennial Conference on “The economy at the golden Jubilee of war of liberation: What type of Bangladesh we would like to see?” organized by Bangladesh Economics Association held on 8-10 February at Osmani Memorial Auditorium and Institution of Engineers ,Bangladesh, Dhaka. 60 Awamleh R., Evans J., Mahate A. (2003), IB in emergency markets the case of Jordon - A note, Journal of IB and Commerce 8 (1). 61 Abasanul Haque, Ahmad Zaki Hi Ismail, Abu Hayat Daraz, Issues of E-Banking Transaction: An empirical investigation on Malaysian customers perception, journal of Applied Sciences, vol.9, issue 10, pg 1870-1879

31

much statistical significance makes this study a potential cornerstone for future

research.

Amy wong, Amrik Sohal (2003)62 examined in their study that the

relationship between the dimensions of service quality and customer loyalty in a

retail chain departmental store selling in Victoria, Australia. The results showed

that service quality is positively associated with customer loyalty and that the

most significant predictor of customer loyalty in the city retail district is empathy,

while the most significant predictor of customer loyalty is the country retail district

is tangibles

Anne J. Broderick, Supattra Vachirapornpuk, (2002)63 One of the key

challenges of the Internet as a service delivery channel is how service firms can

manage service quality as these remote formats bring significant change in

customer interaction and behaviour. Drawing on theoretical frameworks of

service quality and adapting these to particularly reflect the remote delivery

format of the Internet, this study proposes and tests a service quality model of

Internet banking. The research uses participant observation and narrative

analysis of a UK Internet banking Web site community to explore how Internet

banking customers perceive and interpret the elements of the model. Findings

show that the level and nature of customer participation had the greatest impact

on the quality of the service experience and issues such as customers’ zone of

tolerance.

Awamleh and Fernandes (2005)64 adopt the model to analyze the

content of bank websites in the United Arab Emirates (UAE). The results reveal

that IB in the UAE is still in its infancy. In their study it is also concerned with

factors that impact the satisfaction of IB users. They find that security of 62 Amy Wong, Amrik Sohal, “Assessing customer sales person interactions in a retail chain”. Difference between City and Country retail districts, Marketing Intelligence and Planning, 2003, vol . 21, issue 5, pp 292-304. 63 Anne J. Broderick, Supattra Vachirapornpuk, (2002) "Service quality in Internet banking: the importance of customer role", Marketing Intelligence & Planning, Vol. 20 Iss: 6, pp.327 – 335 64 Awamleh R., Evans J., Mahate A. (2003), IB in emergency markets the case of Jordon - A note, Journal of IB and Commerce 8 (1)

32

transactions and conveniences contribute significantly to satisfaction of IB

customers.

Anita Lifen Zhao, Nicole Koenig-Lewis, Stuart Hanmer-Lloyd, Philippa Ward, (2010)65 aim to contribute to this field by looking simultaneously

at the roles of trust and perceived risk on consumers' IBS usage intention.

Results indicate that there is a significant relationship between trust and

perceived risk and that both are crucial in explaining the internet banking usage

intention. Furthermore, trust in the bank is fundamental not only to reducing risk

perceptions of IBS in general but also to building trust in the banks' competence

in terms of IBS activity.

ATM vendor NCR Corporation and market research agency AcNielsen ORG MARG 2006,66 Customers clearly use the alternative banking

channels for specific set of transactions. Phone banking extensively used for

making balance enquires [81%] and branches for depositing cash [35%] and

other transactions. Nearly 44% of those using the internet actually carryout online

money transfer and the rest use the channel for checking balances in their

accounts. Most of bank customers find ATMs almost as secure as branches.

Anu Antony, (2009)67. Banks profitability eventually depends on its ability

to generate non-fund, fee based income by leveraging on technology.

Technology helps banks to widen their geographic reach. There is certainly a

sea change in the way banks are operating with the advent of e-banking

services.

65 Anita Lifen Zhao, Nicole Koenig-Lewis, Stuart Hanmer-Lloyd, Philippa Ward, (2010) "Adoption of internet banking services in China: is it all about trust?", International Journal of Bank Marketing, Vol. 28 Iss: 1, pp.7 – 26 66 ATM vendor NCR Corporation and market research agency AcNielsen ORG-MARG.2006. A Survey,Latest developments. The journal of banking studies. Vol.xxv. no. 2. February 2006. pg 7 67 Anu Antony, “Banks in India towards a paradigm shiftz’ Mr.Anu Antony., professional banker, December 2009,pg 33. the icfai university press]

33

S. Anitha (2010)68 The endeavor of this paper is to throw more light on

the study, methodology, modus operandi and its results banks have introduced a

new lucrative technology called mobile banking which is using mobile phones as

a medium for extending banking services to target a large number of customers.

With the advent of this new channel, it is possible to bank from anywhere at any-

time and in any condition through either SMS or WAP by linking one’s bank

account to a mobile phone.

Annavarjula & Beldona 200069, 5 Internal organizational elements like

innovative culture, technology readiness for corporate clients employees, and top

management support for business were used to explore the relationship

subsequently for solving problems pertained to resources limitation within SMEs.

Eventually, few empirical studies had examined the influence of

internationalization and corporate e-banking on firm performance

Ankur Gupta (2006)70 Consumer Internet Banking, with its ability to reach

each and every nook and cranny of the world holds great importance for a nation

like India, where conventional Banking services are out of reach for a large

proportion of the masses. But to make it a success it requires more than just an

adequate internet enabling infrastructure. There is a dire need for an adequate

legal and regulatory framework to be put into place. One of the crucial elements

of such a legal and regulatory framework will be Data Protection provisions. The

emphasis of this article is on this aspect of data protection in the electronic

banking sector. The article is an attempt to highlight the importance of data

protection in internet banking and dwell upon possible legal recourses which may

be adopted keeping in mind the current legal framework in India with regards

regulation of Information Technology.

68 S.Anitha, Mobile banking, February 2010, pg 32. Professional banker, the Icfai university press. 69 Annavarjula, M. and Beldona, S. 2000. Multinational-performance relationship: A review and reconceptualization. International Journal of Organizational Analysis, 8 (1), 48-67 70 Ankur gupta,Data Protection in Consumer E-banking, Journal of Internet Banking and Commerce, April 2006, vol. 11, no.1

34

Arpita Khare, (2010)71, Technology is fast altering the business service

scape. Its role in improving customer service levels in being used strategically

and increasingly by service organizations. The service attributes and quality can

be enhanced by deployment of technology. The internet has facilitated

convenience in customer interactions and transactions with the banks. Online

banking is currently emerging as a new approach in India for providing improved

accessibility and expediency to customers. Most banks have their own website

for improving the customer interface and offering online services. The article

studies the applicability of online banking in India and its role in fostering

relationships with customers and giving them more value. The research was

conducted on customers familiar with online banking in India, and their

perceptions about online banking were studied. The findings reveal that

customers are using the services but are skeptical about the financial

transactions and service quality dimensions.

Avinandan Mukherjee, Prithwiraj Nath,(2003),72 The role of trust

encompasses the exchanges and interactions of a retail bank with its customers

on various dimensions of online banking. Specifically lays stress on the bank-to-

customer exchanges taking place through the technological interface.

Hypothesizes share value, communication and opportunistic behaviour as

antecedents to trust. Trust and commitment also have a causal relationship. It

was observed that shared value is most critical to developing trust as well as

relationship commitment. Communication has a moderate influence on trust,

while opportunistic behaviour has significant negative effect. Also finds higher

perceived trust to enhance significantly customers’ commitment in online banking

transaction. An important contribution concerns how trust is developed and

sustained over different levels of customer relationship in online banking. The

future commitment of the customers to online banking depends on perceived

trust. 71 Arpita Khare, (2010), “Online banking in India:An approach to establish CRM” Journal of Financial Services Marketing 15, 176-188 (September 2010) 72 Avinandan Mukherjee, Prithwiraj Nath, (2003) "A model of trust in online relationship banking", International Journal of Bank Marketing, Vol. 21 Iss: 1, pp.5 – 15

35

Avasthi & Sharma (2000-01)73 have analyzed in their study that

advances in technology are set to change the face of banking business.

Technology has transformed the delivery channels by banks in retail banking. It

has also impacted the markets of banks. The study also explored the challenges

that banking industry and its regulator face.

Barbara R. Lewis, Kurt E. Hoel, (1993)74, The banking environment is

characterised by continuing social, economic, technological and regulatory

change, and current challenges include increasing competition from both bank

and non-bank institutions, rapidly developing technological innovation, and

changing customer needs. The focus is on technological developments and the

Nordic Bank environment, and findings from a survey among Norwegian

companies are presented. The Survey considers their use of and attitudes

towards electronic banking services. Recommendations are made with respect to

the marketing activities of Norwegian banks with regard to electronic cash

management services for corporate clients, and the future for such services

Benamati & Serva,200775 argued that The significant moderating factors

are gender, educational level, income, internet experience and internet banking

experience, but not age, The adoption of IB forces consumers to consider

concerns about password integrity, privacy, data encryption, hacking, and the

protection of personal information.

Belch and Belch (2009)76 stated that one major advantage of online

marketing is the Internet allows for a back and forth of information, which gives

users the ability to modify the form and content of the information they receive in

real time. Another advantage of online marketing is that people are spending

73 Avasthi, G.P. and Sharma, M. (2000-01). ‘Information Technology in Banking: Challenges for Regulators’. Prajanan. XXIX(4). 17. 74 Barbara R. Lewis, Kurt E. Hoel, (1993) "Corporate Attitudes towards Electronic Banking in Norway", International Journal of Bank Marketing, Vol. 5 Iss: 4, pp.59 - 71 75 Benamati & Serva., “Trust and Distrust in Online Banking: Their Role in Developing Countries,” Information Technology for Development, vol.13, no. 2, pp. 161-175, 2007. 76 Belch, G.E., & Belch, M.A. (2009). Advertising and Promotion: An Integrated Marketing Communications Perspective. (8th ed.). Boston: McGraw Hill.

36

more time on their computer. People look at what is available on the Internet, and

research prices, stores, and ratings. Then they choose which product or service

is best for them.

Black et al. (2001)77 performed a qualitative study on the adoption of

internet services and found out that those with the highest income with a greatest

use of information technology were most likely to purchase financial services

using internet channel.

Bussakorn Jaruwachirathanakul, Dieter Fink, (2005)78 identify the factors

that encourage consumers to adopt internet banking services in Thailand and to

use the study's findings to develop strategies for banks on how to maximize the

rate of adoption. The attitudinal factors that appear to encourage the adoption of

internet banking in Thailand most are “Features of the web site” and “Perceived

usefulness”, while the most significant impediment to adoption is a perceived

behavioural control, namely “External environment”.

Burrett (2008)79 states online marketing is about “carefully targeting users

and getting them to interact with you while they’re engaged with the most

personal, intimate medium ever invented”. Unlike a traditional media audience,

internet users have control of their medium. They decide where they want to

navigate, what they want to do and which links they want to click.

Caalin Guraau,(2002)80 Internet banking is one of the newest Internet

technology applications, which promises multiple benefits both for the financial

institutions and for clients. In the last five years a large number of banks have

launched Web sites, offering online banking services. While the implementation

77 Black N.J. Lockett A., Ennew C. & Winklhofer H. (2001), Adoption of Internet banking, a qualitative study, International Journal of Retail & Distribution Management 29 (8), 390-398. 78 Bussakorn Jaruwachirathanakul, Dieter Fink, (2005) "Internet banking adoption strategies for a developing country: the case of Thailand", Internet Research, Vol. 15 Iss: 3, pp.295 – 311. 79 Burrett, T. (2008). Market online. B & T Magazine, 58(2682), 44-45. 80 Caalin Guraau, “Online banking in transition economies: the implementation and development of online banking systems in Romania”, International Journal of Bank Marketing,2002, Vol.20, issue 6.

37

and the functioning of these digital systems seem to be relatively smooth in the

developed economies, the situation may be different in countries with economies

in transition. The present paper investigates and analyses the present situation of

online banking in Romania, and the appropriate strategies for the successful

implementation and development of online banking services in the Romanian

context.

Camel Herington, Scott Weaven, (2007)81 The purpose of this research

is to explore the impact of online service quality on the level of customer delight

and on the development of customer relationships. A self-complete survey was

used to collect data from a convenience sample of 200 Australian respondents

who use online banking. Factor analysis and structural equation modeling were

used to test the proposed model of relationships. Online service quality has no

impact on customer delight, e-trust or the development of stronger relationships

with customers. It does have a relationship to e-loyalty. However, the

“efficiency” dimension of online service quality is related to e-trust and also

indirectly to relationship strength through e-trust. The “personal need” and “site

organization” dimensions of online service quality are related to e-loyalty, with

“personal needs” exhibiting the strongest impact. Customer delight has no

relationship to online service quality, nor e-trust, relationship strength or e-loyalty.

Carmel Herington, Scott Weaven, (2009)82 in this paper explores the

measurement of e-service quality for e-retail banking, the importance of e-service

quality dimensions to e-retail bank customers, and the relationship between e-

service quality and customer satisfaction. This paper informs knowledge gaps

related to the measurement and structure of e-service quality, its importance and

impact on customer satisfaction. A more holistic measure of e-service quality is

81 Carmel Herington, Scott Weaven (2007),”Can banks improve customer relationships with high quality online services? “. Managing Service Quality, V ol.17,issue: 4. Pp 404-427 82 Carmel Herington, Scott Weaven, (2009) "E-retailing by banks: e-service quality and its imporrtance to customer satisfaction", European Journal of Marketing, Vol. 43 Iss: 9/10, pp.1220 – 1231

38

supported. Good e-service performance impacts customer satisfaction positively,

but does not override unsatisfactory performance in other areas.

Carlos Flavián, Miguel Guinalíu, Eduardo Torres, (2006)83 in this paper

analyzes how consumers’ perceptions of their traditional bank influence their

decision to adopt the services offered by the same bank on the internet. The

results in the paper showed that consumer trust in a traditional bank, as well as

incomes, age and sex are factors that influence consumers’ decision to work with

the same bank via the internet. The results in the paper showed that consumer

trust in a traditional bank, as well as incomes, age and sex are factors that

influence consumers’ decision to work with the same bank via the internet.

Christopher Gan, Mike Clemes, Visit Limsombunchai, Amy Weng, (2006)84 the competitive landscape of financial institutions is shifting and internet

banking is no longer a competitive advantage but a competitive necessity for

banks. However, a limited number of empirical studies have been published in

the marketing literature about electronic banking. This paper seeks to examine

consumers’ choices between electronic banking and non-electronic banking in

New Zealand. The findings in the paper show that the output from the logistic

regression indicates that the service quality, perceived risk factors, user input

factors, employment, and education are the dominant variables that influence

consumers' choice of electronic banking and non-electronic banking channels

Chellappa (2002)85 argue that not all but most transactions are conducted

through Web browsers that connect to merchant sites. According to them,

consumer perceptions of security are developed through visibly sufficient

83 Carlos Flavián, Miguel Guinalíu, Eduardo Torres, (2006) "How bricks-and-mortar attributes affect online banking adoption", International Journal of Bank Marketing, Vol. 24 Iss: 6, pp.406 – 423 84 Christopher Gan, Mike Clemes, Visit Limsombunchai, Amy Weng, (2006) "A logit analysis of electronic banking in New Zealand", International Journal of Bank Marketing, Vol. 24 Iss: 6, pp.360 – 383 85 Chellappa, Ramnath K (2002). “Consumers’ Trust in Electronic Commerce Transactions: The Role of Perceived Privacy and Perceived Security”, Working Paper, University of Southern Cali site.

39

mechanisms that are carried out through the processes of encryption, protection,

verification and authentication. The mechanisms of encryption, digital

authentication, protection, and verification of on-line identity influence the Internet

customers’ perception on information security and increase the likelihood of

consumer confidence and trust.

Chien-Ta Bruce Ho, Wen-Chuan Lin, (2010)86 develop a multiple item

scale for measuring internet banking service quality. . There are five dimensions

and 17 items in the measurement scale for measuring the service quality of

internet banking. The five dimensions are named customer service, web design,

assurance, preferential treatment, and information provision. Based on the

understanding of the key service quality dimensions and the perception of

customers toward e-service quality, managers may discover methods to improve

customer satisfaction, build customer trust, and create loyal customers.

Charles K.Ayo, Uyinomen O.Ekong, Fatudimu Ibukun Tolulope, 200787, Nigeria was described as the fastest growing telecoms nation in Africa

and the third in the World. The country had experienced a phenomenal growth

from a teledensity of 0.49 in 2000 to 25.22 in 2007. This trend has brought about

a monumental development in the major sectors of the economy, such as

banking, telecoms and commerce in general. This paper presents the level of

adoption of ICT in the banking sector and investigates the prospects of m-

Commerce in Nigeria based on strengths, weaknesses, opportunities and threats

(SWOT) analysis. Findings revealed that all banks in Nigeria offer e-Banking

services and about 52% of the offer some forms of m-Banking services. The

banks and the telecoms operators have enormous potentials and opportunities

for m-Commerce but the level of patronage, quality of cell phones, lack of basic

86 Chien-Ta Bruce Ho, Wen-Chuan Lin, (2010) "Measuring the service quality of internet banking: scale development and validation", European Business Review, Vol. 22 Iss: 1, pp.5 – 24 87 Charles K.Ayo, Uyinomen O. Ekong, Fatudimu Ibukun Tolulope, M-Commerce Implementation in Nigeria: Trends and IssuesJournal of Internet Banking and Commerce, August 2007, vol. 12, no.2

40

infrastructure and security issues pose a major threat to its wide scale

implementation.

Chris (2006)88, in his research on Bank ATM Security Advice states that

ATM bank cash machines have been incorporated in our way of life. They offer a

real convenience to those on the run, but at the same time offer an element of

risk. Using a bank ATM machine safely requires awareness and a little planning.

Just because a bank ATM machine is open and available 24-hours a day doesn't

mean it is always safe to use it. He further identifies that Bank ATM robbers are

usually males under 25 years of age and most work alone. ATM robbers usually

position themselves nearby (50 feet) waiting for a victim to approach and

withdraw cash. Half of the ATM robberies occur after the cash withdrawal.

Chi Shing Yiu, Kevin Grant, David Edgar (2007)89 The rapid

development of Internet and Electronic Business has stimulated the banking and

financial sectors towards encouraging customers to bank on-line. This paper

explores the adoption of Internet Banking by retail customers in Hong Kong. The

paper attempts to make sense of Internet Banking in Hong Kong from three

angles: (i) the current adoption rate of Internet Banking; (ii) the influences of

perceived usefulness, perceived ease of use, perceived risk and personal

innovativeness in information technology and (iii) the potential impacts on the

strategic activity of banking organisations operating in the Hong Kong market.

Chuang, Chao Chao, Hu, Fu-Ling (2010)90 This study uses the

quantitative research method to explore consumers' perceptions of Internet

banking services. It is found that checking account balance, the information

about foreign exchange rates, current interest rates and transferring money

between accounts are the most important online banking services features from 88 Chris E. M. (2006). Bank ATM Security Advice: Effective Method of Security Measures. Virtual Banking. Journal of Internet Banking and Commerce. 89 Chi Shing Yiu, Kevin Grant, David Edgar, Factors affecting the adoption of internet banking in Hongkong-implicationf for the banking sector,International Journal of Information Management, Volume 27, Issue 5, October 2007, Pages 336-351 90 Chuang, Chao Chao, Hu, Fu-Ling, Exploring Customers’ Perceptions of E-banking Service, Journal of Global Business Issues, Summer 2010.

41

the customer point of view. On the contrary, customers generally pay less

attention to the following items, such as exchanging opinions with others, reading

versatile daily news and browsing the banking website. Therefore, in addition to

improving transaction technicalities factor and making customers' decision-

making more convenient, future online banking penetration and the success of

complicated financial product offering will depend upon online marketing

activities connected with increasing website security factor, interactivity factor

and better specialty information factor.

Corrocher (2002)91 investigated the determinants of the Internet

technology adoption for the provision of banking services in the Italian context

and also studied the relationship between the Internet banking and the traditional

banking activity, in order to understand if these two systems of financial services

delivery are perceived as substitutes or complements\ by the banks. According to

the results of the empirical analysis, banks seem to perceive Internet banking as

a substitute for the existing branching structure, although there is also some

evidence that banks providing innovative financial services are more inclined to

adopt the innovation than traditional banks

Cracknell, David (2004)92 This article examines what types of electronic

banking technology are open to microfinance institutions. It then proceeds to

examine how various electronic products might be attractive to poor customers in

terms of improved accessibility, affordability and ease of use. From the financial

institution's point of view, the functionality of electronic cards, pricing of electronic

solutions, the segmentation of different products for different client groups and

possible partnerships all need to be considered. The environment can either

support or hinder the adoption of electronic banking and the article describes

how the evolution of the financial and retail sectors, the extent of financial literacy

and the policy and regulatory environment should support these developments.

91 Corrocher, N. (2002), Does Internet banking substitute traditional banking? Empirical evidence from Italy, Working Paper, CESPRI, No. 134, November 92 Cracknell, David Electronic banking for the poor - panacea, potential and pitfalls Small Enterprises Development, Volume 15, Number 4, December 2004, pp. 8-24(17)

42

Although developing an extensive e-banking solution is beyond the range of most

microfinance programs at present, a range of options suitable for some

microfinance programs is presented. Finally, the article suggests principles for

donor involvement in this sector.

Cynthia (2000)93 states that the 24 hours access to the ATM machine is a

double edge sword it has both advantage and disadvantage. It is easy to deduce

that ATM fraud is carried out most in the day time. Also there are occurrences at

night but most ATM users prefer to make withdraw during the day thus

preventing incidences of robbery at night. On the present level of security provide

by banks as regards to ATM. The responses from the tables denote that the

security level is poor. Some banks do not provide any means where customers

can easily report cases of ATM fraud. ATM manuals or FACTA (Fair and

Accurate Credits Transactions Act) is a pertinent document that should be given

to ATM users as they are been issued with ATM but from the study this is

absolutely neglected

Cunningham, Lawrence F, Gerlach, James, Harper, Michael D (2005)94 This research investigates the premise that purchasing e-banking services is

perceived to be riskier than purchasing traditional banking services. Unlike

previous studies on perceived risk that typically focused on the relationship of

perceived risk and information search, this exploratory study examines the

dynamics of perceived risk throughout the various stages of the consumer buying

process. A survey of 159 respondents reveals a risk premium for e-banking

services that follows a systematic pattern throughout the consumer buying

process. When viewed as a dynamic process, perceived risk for e-banking

services shows more radical changes in risk levels than traditional banking

services. The analyses indicate that financial risk drives the risk premium while

93 Cynthia B. (2000). The measurement of white-collar crime using Uniform Crime Reporting (UCR) Data. S department of Justice, Federal Bureau of Investigation, New York. 94 Cunningham, Lawrence F, Gerlach, James, Harper, Michael D, Perceived risk and e-banking services: An analysis from the perspective of the consumer journal of financial services marketing, , Volume 10, Number 2, 1 November 2005, pp. 165-178(14)

43

psychological, physical and time risk play ancillary roles as risk drivers at certain

stages of the consumer buying process. A major implication of this study is that

there is a risk premium for e-banking services and the risk premium permeates

all stages of the consumer buying process.

Dabholkar and Bagozzi (2002)95 stated that technology can have a

significant impact on service delivery, hence reducing the problems pertinent in

face to face settings.

David H. Wong, Nexhmi Rexha, Ian Phau,(2008)96 aim to re-examine

the role of traditional service quality in an e-banking environment by providing a

review of how traditional service quality perceptions have evolved through the

current and continuing stream of change in banking technology and the

corresponding changes in the nature of how banks interact with their customers

Damien Hutchinson, Matthew Warren, (2003)97 in their article stated

that as a continually growing financial service of electronic commerce, Internet

banking requires the development and implementation of a sound security

procedure. This involves designing effective methods via which users can be

authenticated in a remote environment. Specifically for Internet banking there is a

real need for a way uniquely to identify and authenticate users without the

possibility of their authenticity being cloned. Some technologies in use have been

presented for meeting the security requirements for national, regional and global

Internet banking assurance. Concentrates on presenting a security framework for

Internet banking based on discovering and defining these pathways in terms of

adequate authentication mechanisms. They propose a framework concerning

how to identify security requirements for Internet banking such that the

transactions being conducted are secured within their respective environments. 95 Dabholkar, P. and Bagozzi, R. (2002), “An attitudinal model of technology-based self-service: moderating effects of consumers traits and situational factors”, Journal of Academy of Marketing Science, Vol. 30(3), p. 184-201. 96 David H. Wong, Nexhmi Rexha, Ian Phau, (2008) "Re-examining traditional service quality in an e-banking era", International Journal of Bank Marketing, Vol. 26 Iss: 7,2008 pp.526 – 545 97 Damien Hutchinson, Matthew Warren, (2003) "Security for Internet banking: a framework", Logistics Information Management, Vol. 16, Iss: 1, pp.6

44

DeYoung (2001)98 found that the average one year old Internet-only bank

earned significantly lower profits than the average one year old branching bank,

due to low business volumes and high non-interest expenses. It supports the

proposition regarding the Internet-only banks, “fast growth but low (or no) profits.”

Derek Mohammed, (2010)99 This paper examines some of the challenges

of online marketing, including the importance of adding online marketing to

corporation budgets. A review of the pros and cons of social networking on the

Internet, when used as a marketing tool by companies is presented. In addition,

new forms of Internet shoppers and new niches for companies are identified.

This paper discusses some key advantages and disadvantages of online

marketing.

Dexiang Wu, Desheng Dash Wu, (2009)100 Online banking has attracted

a great deal of attention from various bank stakeholders such as bankers,

financial service participants, and regulators. The purpose of this paper is to

analyze the online banking service performance of gaint US and UK banks. Risk

analysis is also conducted. Divya Singhal and V. Padhmanabhan (2008)101 Internet banking is

becoming is increasingly becoming popular because of convenience and

flexibility. The present paper explores the major factors responsible for internet

banking based on respondents’ perception on various internet applications. It

also provides a framework of the factors which are taken to assess the internet

banking perception.

98 DeYoung, R (2001b), “The Financial Performance of Pure Play Internet Banks”, Economic Perspectives 25(1): 60-75, Federal Reserve Bank of Chicago 99 Derek Mohammed, 2010 Ecommerce: Ongoing Challenges Journal of Internet Banking and Commerce, August 2010, vol. 15, no.2 100 Dexiang Wu,Desheng Dash Wu, (2009)“Performance evaluation and risk analysis of online banking service”, Kybernetes, Vol.39, issue 5, 2009. 101 Divya Singhal and V. Padhmanabhan, A Study on Customer Perception Towards Internet Banking: Identifying Major Contributing Factors, The Journal of Nepalese Business Studies Vol. V, No. 1, 2008, December Page: 101-111

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Divakar Goswami, Satish Raghavendran, (2009)102 establish the

potential that mobile banking offers to both banks and mobile carriers.

Acknowledging the inherent difficulties of convergence between large and very

different industries, it then explores the merits and shortcomings of existing

partnership models and offers suggested best practices. Open-federated models

– involving partnerships between large numbers of banks and mobile carriers to

provide a shared platform for mobile-banking services – access the broadest

customer base and minimize the costs of developing proprietary software and

infrastructures

Ebling, (2001)103 This paper describes an empirical study of investigating

recent trend and development of the application of e-banking (banking though

internet) in a typical developing country – Bangladesh, and its economic impact

on local financial institutions. Currently, Bangladesh is far behind in terms of e-

banking development and applications. More specifically, while it is a fact that

currently many banks in Bangladesh have implemented e-banking services,

however, comparing with most developed countries, the e-banking application in

Bangladesh is only in its infancy stage and there is a huge gap to be fulfilled with

new research and development effort. As such, addressing the current issues

and challenges in the development of e-banking in Bangladesh is the primary

motivation of this research. In addition, customer’s transaction and

communication abilities have been improved by the developments of information

technology. Information technology enabled electronic channels to perform many

banking functions that would traditionally be carried out over the counter Elizabeth Daniel (1999)104, Electronic or online banking is the newest

delivery channel to be offered by the retail banks in many developed countries

and there is wide agreement that this channel will have a significant impact on

102 Divakar Goswami, Satish Raghavendran, (2009) "Mobile-banking: can elephants and hippos tango?", Journal of Business Strategy, Vol. 30 Iss: 1, pp.14 – 2038 103 Ebling, T. (2001) ‘The economics of online banking’, Target Marketing, Philadelphia, Vol. 24, No. 2, pp.67–7. 104 Elizabeth Daniel, (1999) "Provision of electronic banking in the UK and the Republic of Ireland", International Journal of Bank Marketing, Vol. 17 Iss: 2, pp.72 – 83

46

the market aims to quantify the current provision of electronic services by major

retail banking organizations in the UK and the Republic of Ireland. Additional

insight into the banks’ adoption of this new channel is gained by exploring two

areas important in the analysis of new offerings, that is: an organization‘s

approach to innovation; and their view of the current and future markets. It is also

found that the organization‘s vision of the future, their prediction of customer

acceptance, which tends to be very low, and their organizational culture of

innovation are the most important of the suggested factors in their adoption of

electronic delivery

Eun-Ju Lee, Kyoung-Nan Kwon, David W. Schumann, (2005)105 For a

new technology-based product or service at an early stage of diffusion, it is likely

that only a small subset of consumers have adopted it. When non-adopters still

comprise the majority of the target populations, describing all non-adopters as a

homogeneous population may be inaccurate and inappropriate. It is important to

be able to identify differences, not only between adopters and non-adopters, but

also among non-adopters, the latter providing a means of identifying the

consumer segments likely to be profitable in the future. The first objective of this

paper is to demonstrate the appropriateness of further segmenting the non-

adopter category based on motivations (intentions) to adopt internet-banking by

those who are “persistent non-adopters” and those who are “prospective adopters”. The second objective of this paper is to further the understanding of

the adoption process of internet banking by examining a range of diffusion

factors that affect consumers’ adoption behavior. Dr. Francisco Muñoz-Leiva, Prof. Teodoro Luque-Martínez, Dr. Juan Sánchez-Fernández, (2010)106 contributes to the stream of TRUST research

with a focus on optimizing this perception via electronic transactions in the

105 Eun-Ju Lee, Kyoung-Nan Kwon, David W. Schumann, (2005) "Segmenting the non-adopter category in the diffusion of internet banking", International Journal of Bank Marketing, Vol. 23 Iss: 5, pp.414 – 437 106 Dr.Francisco Muñoz-Leiva, Prof.Teodoro Luque-Martínez, Dr. Juan Sánchez-Fernández, (2010) "how to improve trust toward electronic banking?", Online Information Review, Vol. 34 Iss: 6

47

banking industry. Specifically, the study examines trustworthiness toward a bank

and on its dependability using a variety of "institution-based" trust mechanisms,

such as security of transaction, reputation and web quality.The analysis

discovers that the mere presence of seals is not in itself important for the

explanation of beliefs about trustworthiness and dependability of a website with

electronic banking services. But the manner in which the trust-generating

mechanisms are presented, either individually or in their different combinations,

has different effects on trust. As the use of online banking steadily increases

over the year

(Fredriksson, 2003)107 knowledge about defining high-quality service

delivery over the Internet becomes crucial for banks, which want to stay

competitive on the marketplace. If banks have knowledge about the quality

attributes they can use to measure the quality of their online services and the

overall satisfaction of their customers with each of these attributes, it would be

much easier for them to take necessary measures and steps to improve the

overall service quality.

Fulbag Singh & Davinder Kaur, 2010108 Banking sector plays a pivotal

role in the growth of any economy by mobilizing people's funds into productive

channels. Banks provide services for the fulfilment of consumers' financial needs.

Whether the area is rural or urban, banks are trying to diversify their services to

the masses, and customers should also be aware of these. But due to lower

literacy level and inadequate sources of information in rural areas, the customers

are not fully aware of the services offered by the banks. Therefore, the present

research work is being carried out to find the gaps in the awareness level of rural

and urban bank customers and to identify the significant sources of information

influencing customer awareness.

107 Fredriksson, O. (2003). Internet-based self-services: Relational Aspects of E- Banking- a private client survey analysis. IMIT working paper series, 136. 108 Fulbag Singh & Davinder Kaur Customer Awareness Regarding Banking Services: An Empirical Study, volxxxi no 2, july-sep 2010,vinimaya archives

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Furst, K; Lang, W., William and Nolle, E., Daniel (2000)109 presented

data on the number of national banks in U.S. offering Internet banking and the

products and services being offered. Only 20 percent of national banks offered

Internet banking in the third quarter of 1999. However, as a group, these

‘‘Internet banks’’ accounted for almost 90 percent of national banking. Banks in

all sizesystem assets and 84 percent of small deposit accounts. categories

offering Internet banking tend to rely less on interest-yielding activities and core

deposits than do non-Internet banks. Also, Institutions with Internet banking

outperformed non- Internet banks in terms of profitability.

Gaston leblanc, (1993)110 presented an exploratory study on customer

motivations towards the use and non-use of an automated teller machine with

data collected from a total of 208 customers of a financial institution. An analysis

of results based on demographic variables reveals significant differences

between users and non-users in terms of education only. Results also show that

convenient accessibility of a financial institution and avoidance of waiting lines

are the principal reasons for using the automated teller. Furthermore, in

comparison with non-users, the user group is more likely to believe the

automated teller improves service quality, reduces the financial institution's

operating costs, presents no personal or financial risks, and is simple to use. The

non-user group for its part prefers dealing with human tellers, finds the machine

complex to use, and associates personal and financial risks with the use of the

automated teller. Geetika, Nandan, T & Upadhyay, AK (2008)111 A study on the Internet

users, conducted by Internet and Mobile Association of India (IAMAI), found that

about 23% of the online users prefer IB as the banking channel in India, second

to ATM which is preferred by 53%. Out of the 6,365 Internet users sampled, 35% 109 Furst, K; Lang, W., William and Nolle, E., Daniel (2000), “Who Offers Internet Banking?” Office of the Comptroller of the Currency, Quarterly Journal, Vol. 19, No. 2, June. 110 Gaston Leblanc, (1993) "Customer Motivations: Use and Non-use of Automated Banking", International Journal of Bank Marketing, Vol. 8 Iss: 4, pp.36 – 40 111 Geetika, Nandan, T & Upadhyay, AK., “Internet Banking in India: Issues and Prospects,” The Icfai Journal of Bank Management, vol. 7, no. 2, pp. 47-61, 2008.

49

use online banking channels in India. This shows that a significant number of

online users do not use IB, and hence there is a need to understand the reasons

for not using it .

Georgia, Giordani, Christos Floros,(2009),112 This paper examines the

internet banking services that Greek commercial banks are offering. It also

presents the associated costs and fees that customers face when using these

services. The findings show that there are disparities in the fees that Greek

commercial banks impose on their customers for performing banking

transactions over the internet. When compared Automated Teller Machine (ATM)

fees with branch fees, it was found that ATM charges are lower than branch fees.

Finally, the paper concludes that internet banking fees are lower than both ATM

fees and branch fees. Gerrard and Cunningham (2003)113 found a positive correlation between

convenience and online banking and remarked that a primary benefit for the bank

is cost saving and for the consumers a primary benefit is convenience.

Gerard Prendergast, Norman Marr, (1994)114 The increasing provision of

self-service technologies such as automated telling machines (ATMs) in retail

banking means that customers now have a variety of means of carrying out their

banking business In many cases, the functions of these technologies overlap

with the functions of the bank branch. Seeks to determine the form and function

of the retail bank branch network in New Zealand. In the presence of these self-

service technologies for the years 2000 and 2010. The results indicated that in

the short term the bank branch in its current from will remain very important. In

the longer term, while the bank branch will still be very important, one can expect

a reduction in numbers In part this reduction will be caused by the availability of

112 Georgia Giordani, Christos Floros, “Internet banking services and fees: the case of Greece.” International journal of Electronic Finance, June 2009, Vol.3, Issue 2, Pg 177-198 113 Gerrard, P. and Cunningham, J.B. (2003) ‘The diffusion of internet banking among Singapore consumers’, International Journal of Bank Marketing, Vol. 21, No. 1, pp.16–2 114 Gerard Prendergast, Norman Marr, (1994) "Towards a Branchless Banking Society?" International Journal of Retail & Distribution Management, Vol. 22 Iss: 2, pp.18 – 26

50

remote banking technology which reduces the need for the bank branch The

main city centres will supply customers with staff less branches – a branch which

is dominated by self-service technology In branches which are still dominated by

human staff, tellers will become salespeople armed with platform automation. i.e.

personal computers which both themselves and customers can access to in

order to obtain product profiles and other information Self-service technology in

the branch “vestibules” will also become widespread.

Gopalakrishnan. S, Wischnevsky. J.D, Damanpour. F, 2003115 The

Internet is an outcome of the convergence of multiple technologies and its

applications have the potential to strongly influence many industries. Focusing on

the banking industry, we examine the factors that influence the adoption of the

Internet at three levels of analysis: the external context of the industry; the

industry; and the firm. At the external context level, we analyze how the

development of a favorable external context facilitates the adoption of a new

technological application: Internet banking. At the industry level, we examine the

types of innovations that a new technological application engenders, the role

incumbents, and new entrants play in promoting the adoption of Internet banking,

and other factors that impact the speed of Internet banking diffusion. At the firm

level, we examine differences in banks' strategies and organizational designs

associated with the adoption of Internet banking as an added delivery channel

versus as a separate business. We conclude by discussing unique features in

the emergence and adoption of Internet banking and its potential performance

implications.

Guru, B., Vaithilingam, S., Ismail, N. Guru et al. (2003)116 evaluate the

websites of banks in 12 Islamic countries. They find that the majority of Islamic

countries are still in the early stages of developing IB. Only some Islamic banks

115 Gopalakrishnan. S, Wischnevsky. J.D, Damanpour. F “A multilevel analysis of factors influencing the adoption of Internet Banking” Engineering Management, Nov 2003, Volume: 50,issue, pg 413-426 116 Guru, B., Vaithilingam, S., Ismail, N. and Prasad, R. (2000). “Electronic Banking in Malaysia: A Note on Evolution of Services and Consumer Reactions.” Journal of Internet Banking and Commerce, Volume 5, No. 1, June.

51

in the Middle East have well-developed IB websites. and Prasad, R. (2000)92

examined the various electronic channels utilized by the local Malaysian banks

and also accessed the consumers’ reactions to these delivery channels. It was

found that Internet banking was nearly absent in Malaysian banks due to lack of

adequate legal framework and security concerns. However over 60 percent of

the respondents were having Internet access at home and thus represented a

positive indication for PC based and Internet banking in future.

Hasan Banu. S (2004)117, studied about customer services in rural banks.

She found that the rural customers are not aware of the purpose for which the

loan is available and how they can be availed. Customers do not know the

complete uses, regulations and procedures of the banks as the bank personnel

do not take interest in educating customers.

Hasan (2002)118 found that online home banking has emerged as a

significant strategy for banks to attract customers. Almost 75 percent of the

Italian banks have adopted some form of Internet banking during the period

1993-2000. It also found that the higher likelihood of adopting active Internet

banking activities is by larger banks, banks with higher involvement in off-balance

sheet activities, past performance and higher branching network.

Hatice Jenkins, (2007)119, aims to examine the factors affecting the

adoption of internet banking services by domestic commercial banks in a

sparsely populated small island. Evidence from survey studies and from banks’

web sites indicated that in North Cyprus have been consistently moving towards

providing internet banking services despite a very small potential market to

share.

117 Hasan banu.S, in ”Customer service in rural banks”. An analytical study of attitude of different types of customers towards banking services” IBA Bulletin, Vol.xxxvi, No.8,August 2004, pp 21-29. 118 Hasan, I., (2002). “Do Internet Activities Add Value? The Italian Bank Experience”, Working Paper, Federal Reserve Bank of Atlanta, New York University. 119 Hatice Jenkins, “Adopting internet banking services in a small island state: assurance of bank service quality.”, Management Service Quality, Vol. 17, issue 5, 2007.

52

Hans H. Bauer, Malik Hammerschmidt, Tomas Falk (2005)120 In the

internet economy, the business model of web portals has spread rapidly over the

fast few years. Despite this, there have been very few scholarly investigations

into the services and characteristics that transform a website to a portal as well

as into the dimensions that determine the customer’s evaluation of the portal’s

service quality. Based on an empirical study in the field of e-banking, the authors

validate a measurement model for the construct of web portal quality based on

the following dimensions; security and trust, basic services quality, cross-buying

services quality, added value, transaction support and responsiveness. The

identified dimensions can reasonably be classified into three service categories;

core services, additional services and problem-solving services. The knowledge

of these dimensions as major determinants of consumer’s quality perception in

the internet provides banks a promising starting point for establishing an effective

quality management for their e-businesses. Hua (2009)121 conducted an experiment to investigate how users

perception about online banking is affected by the perceived ease of use of

website and the privacy policy provided by the online banking website. In this

study, it also investigates the relative importance of perceived ease of use,

privacy, and security. Perceived ease of use is of less importance than privacy

and security. Security is the most important factor influencing user’s adoption

Hanudin Amin Ricardo Baba Mohd Zulkifli Muhammad 2005122 Today, the advancement of mobile technologies has provided an opportunity for

financial innovations introduced by financial providers is mobile banking. This

study adopts a technology acceptance model (TAM) to investigate factors that

providers in introducing new financial innovations. One of the emerging financial

120 Hans H. Bauer, Maik Hammerschmidt, Tomas Falk, (2005) "Measuring the quality of e-banking portals", International Journal of Bank Marketing, Vol. 23 Iss: 2, pp.153 - 175 121 Hua, Guangying 2009. An Experimental Investigation of Online Banking Adoption in China, Journal of Internet Banking and Commerce, April, Vol. 14, 122 Hanudin Amin Ricardo Baba Mohd Zulkifli Muhammad An analysis of mobile banking acceptance by Malaysian customers International journal of service industry management, 2005,16( 5)416-435

53

determine an individual’s intention to use mobile banking among bank customers

in Labuan and Kota Kinabalu. The TAM includes perceived credibility, perceived

self-efficacy and normative pressure. Our results support the extended TAM in

predicting bank customers’ behavioral intention to use mobile banking.

Determinants are perceived usefulness, perceived ease of use, perceived

credibility and perceived self-efficacy. Normative pressure was found to be a

weak determinant in explaining bank customers’ intention to use mobile banking.

The study also demonstrates the significant effect of perceived ease of use on

behavioral intention through perceived usefulness.

Howcroft et al. (2002)123 found that the most important factors

encouraging consumers to use online banking are lower fees, less paperwork,

and reduced human errors, which subsequently minimize disputes.

Husain F in124 “highlighted the importance of IT in various sectors. In the

introduction of any new technology system, various organizational, financial and

functional problems are faced. People are generally reluctant to accept new

system, howsoever beneficial it may be. Such problems related to

computerization have been critically and vividly discussed.

Hernan E. Riquelme, Rosa E. Rios, (2010)125 This paper seeks to test

the factors that can influence adoption of mobile banking among current users of

internet banking in Singapore and gender as a moderating variable. Usefulness,

social norms and social risk, in this order, are the factors that influence the

intention to adopt mobile banking services the most. Ease of use has a stronger

influence on female respondents than male, whereas relative advantage has a

stronger effect on perception of usefulness on male respondents. Social norms

123 Howcroft, B., Hamilton, R. and Hewer, P. (2002) ‘Consumer attitude and the usage and adoption of home-based banking in the United Kingdom’, The International Journal of Bank Marketing, Vol. 20, No. 3, pp.111–121. 124 Husain F in “Computerization and Mechanization in Indian banks”, Deep and Deep publication, New Delhi. 125 Hernan E. Riquelme, Rosa E. Rios, (2010) "The moderating effect of gender in the adoption of mobile banking", International Journal of Bank Marketing, Vol. 28 Iss: 5, pp.328 – 341

54

(or the importance of others in the decision), also influence adoption more

strongly among female respondents than male.

Heggede O.D.(2000)126 studied bank customer relationship in India. He

analyzed the responses of 11 different classes of bank customers including

businessmen, salaried, advocates and peasants. He analyzed customers’ views

on the one hand and employees views on the other. The paper concluded that

there is a low correlation among the different occupations and satisfaction from

services in the public sector banks

Heikki Karjaluoto, Minna Mattila, Tapio Pento, (2002)127 explored the

effect of different factors affecting attitude formation towards Internet banking

(online banking) in Finland. The purpose of this paper is to determine those

factors that influence the formation of attitude towards Internet banking on the

one hand, and their relation to the use of online banking services, on the other.

Attitude formation was studied by the use of a structural equation model. The

results are expected to provide both theoretical and practical contributions in the

area of electronic retail banking and understanding of consumer behaviour in the

turbulent financial services industry.

Hsin-Ginn Hwang, Rai-Fu Chen, Jia-Min Lee, (2007)128 The purpose of

this study is to develop a measurement instrument for customer satisfaction with

internet banking (IBCS). A web survey was used with the subjects being internet

banking users of Taiwanese banks. The study demonstrates that all the items in

the Doll and Torkzadeh instrument for end-user computing satisfaction measures

are still valid in the context of internet banking, and that IBCS depends heavily on

security and trust considerations on the internet.

126 Heggade O D, in ” Banker-customer relationship in India, Mohit Publication, (2000), New Delhi, 127 Heikki Karjaluoto, Minna Mattila, Tapio Pento, (2002) "Factors underlying attitude formation towards online banking in Finland", International Journal of Bank Marketing, Vol. 20 Iss: 6, pp.261 – 272 128 Hsin-Ginn,Hwang, Rai-Fu Chen, Jia-Min Lee, 2007 Measuring customer satisfaction with internet banking: an exploratory study. International journal of electronic finance, vol.1, No.3/2007,pp 321-335

55

Haver (2008)129 “Today’s younger, more ‘green’ shoppers aren’t going to

waste precious money and gas going from store to store looking for just the right

item. They shop online whenever they can, narrowing their choices to one or two

items-then go to the store to touch, feel, bounce and check out the actual product

to see if it looks the way it was represented online. IAMAI REPORT 2006130, According to a study carried out by IAMAI, it was

found that people do not prefer online financial transactions due to many reasons

such as security and facilities concerns.[45%], preference for face to face

transactions[39%] , lack of knowledge [22%] and lack of user friendliness of the

channels [10%].]

Jalan, B. (2003),131 IT revolution has brought about a fundamental

transformation in banking Perhaps no other sector has been affected by

advances in technology as much as banking & finance. It has the most important

factor for dealing with the intensifying competition & the rapid proliferationof

financial innovations.

John Simpson (2002)132,This paper investigates the risk, efficiency and

rate of progress in the implementation of electronic commerce (e-commerce) in a

sample of banks from a developed country (the US), and a sample of banks from

developing and emerging markets. The results confirm that the US is very

advanced in its electronic-banking (e-banking) actuation. There is evidence

suggesting that e-banking is driven largely by the prospects of operating costs

minimization and operating revenue maximization. Costs are lower and revenues

higher when banking services are delivered through a branch network. The

129 Haver, K. (2008). Why be on the Internet? Furniture today, 33(17), 2-3 130 IAMAI REPORT 2006,[Internet banking in Hyderabad issues and prospects. Professional bankers –The Icfai University press. September 2009, vol.ix, issue 9] 131 Jalan, B. (2003), “Strengthening Indian Banking and Finance: Progress and Prospects”, IBA Bulletin, Vol. XXV, No. 3 (March), PP. 5-14 132 John Simpson The impact of the Internet in banking: observations and evidence from developed and emerging markets, Telematics and Informatics, vol.19, issue 4, November 2002, Pages 315-330

56

results also suggest that perceptions of banking risk may be partially driven by

similar factors. Using a basic risk-scoring model, bank risk scores (reflecting a

bank's ability to repay depositors) are regressed against operating efficiency

measures.

Jamie Anderson,(2010)133, M-banking is one of the newest approaches

to the provision of financial services through information communication

technology (ICT), made possible by the widespread adoption of mobile phones

even in low income countries. Emerging mobile banking (m-banking platforms) in

developing markets enable two sided markets, bringing together mobile handset

users with other mobile users and commercial partners. It is the argument of this

paper that the emergence of m-banking platforms has the potential for spill-over

effects, and that these spill-over effects will require regulatory authorities to

develop appropriate policy responses

Joseph H.Plummer (1971)134 conducted a study on the life style pattern

of male and female credit card holder using their demographic and purchase

data, the basic demographic pattern and card usage data indicate a widespread

use of commercial bank charge cards across many demographic segments of

population. From the stand point of potential market segments, however the

higher income better educated, middle aged and professional segments are

more prominent on the user index scale. The study depicts certain aspects of

credit card users’ lifestyles. Both mole and female users indicate a convenience

orientation towards credit cards as a satisfactory cash substitute. The study

indicates that users of commercial bank charge cards in contrast to non-users,

exhibited a “contemporary state of mind” and a rejection conservative, traditional

concepts which is a major detriment of card usage beyond demographic

variables

133 Jamie Anderson, (2010) "M-banking in developing markets: competitive and regulatory implications", info, Vol. 12 Iss: 1, pp.18 – 25 134 Joseph H.Plummer, Life style Patterns and commercial bank credit and usuage, Journal of marketing vol.35, 1971m og 35-41

57

Jane M Kolodinsky, Jeanne M. Hogarth, Marianne A Hilgert, (2004)135 in this paper explores factors that affect the of adoption or intention to adopt

three e-banking technologies and changes in these factors over time. Using a

Federal Reserve Board commissioned data set, the paper finds that relative

advantage, complexity/simplicity, compatibility, observability, risk tolerance, and

product involvement are associated with adoption. Income, assets, education,

gender and marital status, and age also affect adoption. Adoption changed over

time, but the impacts of other factors on adoption have not changed. Implications

for both the banking industry and public policy are discussed.

James M. Curran, Matthew L. Meuter, (2005)136 Advances in

technologies have allowed service providers to incorporate many different

technologies into the delivery of their services. These technologies have been

implemented in the service encounter for the customer to use with varying

degrees of success. This research aims to focus on the examination of factors

that influence consumer attitudes toward, and adoption of, self-service

technologies (SSTs). This research has demonstrated that multiple factors need

to be considered when introducing technologies into the service encounter and

that the salient factors may vary among technologies and their stages in the

adoption process.

Jan Mattson, Helge Helmersson, (2005)137 aimed at modeling the e-

competence of internet bank customers with a new text-analytic method.

Theses verbal syntheses (as modeled by a Pretext text- analytic approach) are

purported to illustrate e-competence. A diverging pattern of e-competency was

135 Jane M.Kolodinsky, Jeanne M.Hogarth, Marianne A.Hilgert, “The adoption of electronic banking technologies by US consumers”, International journal of bank marketing, vol.22, issue.4, pp.238-259 136 James M. Curran, Matthew L. Meuter, (2005) Advances in technologies have allowed service providers to incorporate many different technologies into the Self-service technology adoption: comparing three technologies", Journal of Services Marketing, Vol. 19 Iss: 2, pp.103 – 113 137 Jan Mattsson, Helge Helmersson, (2005) “ Internet banking modeling ; the e-competence of customers with a text-analytic CIT approach”, International journal of bank marketing, vol.23, issue, 6, pp 470-483.

58

found. One group of customers was able to handle the web site and the other

group felt abandoned and was not able to adopt technology.

Jabnoun and Al-Tamimi (2003)138 examined perceived services quality

in commercial banks in the United Arab Emirates, emphasizing the importance of

service quality to maintain market share, concluding that customers value human

skills the most in service quality. Finally, the importance of ease of use in

determining successful IT adoption has been highlighted in much previous

literature (Davis, Bagozzi and Warshaw 1989; Moore and Benbasat 1991; Taylor

and Todd 1995).

B.Janki (2002)139 analyzed that how technology is affecting the

employees’ productivity. There is no doubt, in India particularly public sector

banks will need to use technology to improve operating efficiency and customer

services. The focus on technology will increase like never before to add value to

customer services, develop new products, strengthen risk management etc. the

study concludes that technology is the only tool to achieve their goals.

Jayawardhena (2004)140 developed a model consisting of five

dimensions: access, web site interface, trust, attention and credibility and it was

found that customers place more importance upon access and web site interface

than the other dimensions and concluded that banks should focus on building

trust through ensuring the security and privacy of customer information. He

transforms the original SERVQUAL scale to the internet context and develops a

battery of 21 items to assess service quality in e-banking. By means of an

Exploratory Factor Analysis (EFA) and a Confirmatory Factor Analysis (CFA),

these 21 items are condensed to five quality dimensions: access, website

interface, trust, attention and credibility. E-banking is seen as the newest delivery

138 Jabnoun, N. and Al-Tamimi, H. 2003. “Measuring Perceived Service Quality at UAE Commercial Banks.” International Journal of Quality and Reliability Management 20(4): 458-172. 139 B. Janki (2002). ‘Unleashing Employee Productivity: Need for a Paradigm Shift’. Indian Banking Association Bulletin. XXIV(3). March. 7-9. 140 Jayawardhena, C. (2004), “Measurement of service quality in internet banking: the development of an instrument”, Journal of Marketing Management, Vol. 20, p. 185-207.

59

channel of banks in many developed countries and nobody can deny the fact that

such a newest channel is believed to have a significant impact on the banking

market

Jayawardhena & Foley, 2000,141 contends that e-banking is providing

numerous good opportunities for banks and non-bank financial institutions to add

a low cost distribution channel to their existent distribution channels in order to

better serve their customers by offering various products and services with high

quality. However, he further contends that e-banking also brings about

challenges to traditional banks due to the fact that it neutralizes competitive

advantages rooted in a traditional banking network. It is predicted that e-banking

continues mushrooming in the times to come. When e-banking is widely utilized

and becomes more popular, it is very interesting to forecast the future of

traditional banks operating based on their branches.

José Mauro C. Hernandez, José Afonso Mazzon, (2007)142 propose a

new method to investigate adoption of new technologies and tests this method by

looking into the determinants of internet banking adoption in Brazil. The findings

show that the variables that influence the intention to use/continue to use IB are

not exactly the same as those that influence actual adoption. Specifically, the

results seem to suggest that intention to use IB is influenced solely by people's

beliefs about IB, while its actual adoption is influenced also by individual

characteristics Joaquín Aldás-Manzano, Carlos Lassala-Navarré, Carla Ruiz-Mafé, Silvia Sanz-Blas, (2009)143 analyze how consumer innovativeness can be used

141 Jayawardhena, C., & Foley, P. 2000. Changes in the Internet banking sector – The case of internet banking in UK, Internet Research. Electronic Networking Applications and Policy, 10(1), 19-30. 142 José Mauro C. Hernandez, José Afonso Mazzon, (2007) "Adoption of internet banking: proposition and implementation of an integrated methodology approach", International Journal of Bank Marketing, Vol. 25 Iss: 2, pp.72 – 88 143 Joaquín Aldás-Manzano, Carlos Lassala-Navarré, Carla Ruiz-Mafé, Silvia Sanz-Blas, (2009) "The role of consumer innovativeness and perceived risk in online banking usage", International Journal of Bank Marketing, Vol. 27 Iss: 1, pp.53 – 75

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as a variable to positively influence internet banking adoption both directly and

reducing consumer perceived risk. The impact of innovativeness and risk on

internet banking adoption has been tested through structural equation modeling

techniques. Results reveals consumer innovativeness as a key construct to

improve e-banking adoption both directly and by its effective role in reducing

consumer risk perception of using internet channel in the financial services

context.

Jannatul Mawa, 2010144, E-banking can provide speedier, faster and

reliable services to the customers for which they are relatively happy. E-banking

services not only can create new competitive advantages, it can improve its

relationships with customers. The purpose of this research is to understand the

impact of variables of e-banking on customer satisfaction in Bangladesh. The

study period is from 2006 to November, 2009 because customers enjoyed the e-

banking services newly during this period. Five service quality dimensions

namely reliability, responsiveness, assurance, empathy, and tangibles have been

established based on the SERVQUAL model and the literature review. These

variables have been tested in e-banking to explore the relationship between

service quality and the customer satisfaction. The data were gathered through

survey interview by a structured questionnaire with 250 customers. The study

shows that these factors are the core service quality dimensions for customer

satisfaction in e-banking. The study also explores that reliability, responsiveness

and assurance have more contribution to satisfy the customers of e-banking in

Bangladesh.

Joseph et al. (1999)145 investigated the influence of internet on the

delivery of banking services. They found six underlying dimensions of e-banking

144 Jannatul Mawa Nupur E-Banking and Customers’ Satisfaction in Bangladesh: An Analysis International Review of Business Research Papers Volume 6. Number 4. September 2010. Pp. 145 – 156 145 Joseph, M., McClure, C. and Joseph, B. (1999) ‘Service quality in banking sector: the impact of technology on service delivery’, International Journal of Bank Marketing, Vol. 17, No. 4, pp.182–191

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service quality such as convenience and accuracy, feedback and complaint

management, efficiency, queue management, accessibility and customization.

Joao F Proença, Marta Martins Silva and Teresa Fernandes (2010).146 The article discusses the virtualization of the interaction processes between

banks and their customers and analyses the influence of the Internet on these

relationships. The research finds three factors related to the use of Internet

banking which strengthen the relationships between banks and their customers:

the intensity of Internet use, the diversity of access locations and the diversity of

Internet applications. From a managerial point of view, these findings have

implications for the development of new relationship approaches based on

technology.

Jørn Flohr Nielsen, (2002)147 Internet banking is now such a well-

established fact in the most developed countries that it is possible to map its

actual role in customer relations. This paper traces important antecedents of

Internet banking adoption and analyses its impact on relationship-marketing

performance. Based on structural equation modeling, the findings offer some

support for the view that the more advanced Internet applications adopted and

the more attractive the Web site, the more the banks are able to keep profitable

customers. However, the results question whether it pays to be a first-mover and

organizational factors related to market orientation and customer-relationship

management seem to have a much stronger impact on customer-related

performance.

Jiaqin Yang* and Kh Tanveer Ahmed, 2009148 This paper describes a

case study about the major issues and challenges in the development of the

electronic banking (e-banking) industry of a relatively underdeveloped nation. 146 Joao F Proença, Marta Martins Silva and Teresa Fernandes (2010) The impact of the Internet upon bank marketing Journal of Financial Services Marketing 15, 160-175 (September 2010) | 147 Jørn Flohr Nielsen, (2002) "Internet technology and customer linking in Nordic banking", International Journal of Service Industry Management, Vol. 13 Iss: 5, pp.475 – 495 148 Jiaqin Yang and Kh Tanveer Ahmed, Recent trends and developments in e-banking in an underdeveloped nation – an empirical study,International journal of electronic finance, Vol.3, no.2, 2009, pg 115-132

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This research shows that even in many less developed nations; the application of

e-banking can help their local banks reduce operating costs and provide a better

and fast service to their customers. The research objectives are to investigate the

current trends and developments in e-banking and provide managerial insights

for the banking industry in those underdeveloped nations. The collected data are

examined through statistical analysis tools. Managerial implications are

discussed with suggestions for future research.

Júlio Püschel, José Afonso Mazzon, José Mauro C. Hernandez, (2010)149 This paper's objective is to propose an integrated framework to

investigate the adoption intention of mobile banking technology and to test it in

the Brazilian context. The framework offers an integrated view, taking into

account more predictors than other studies on the adoption of innovations for

non-users, the framework was able to explain approximately 69 percent of the

dependent variable (intention to adopt mobile banking) variation, which is a figure

higher than those obtained in previous studies. It was also observed that the

predictors' influence over the criterion variable was different for each group of

mobile banking users and non-users.

Mr. D. Joseph Anbarasu, 1997150 presented the features, operations ,

networking and recent developments in a credit card system, Bankers consider

‘minimizes inconvenience’, ‘minimizes cost of transactions’ and ‘time saving’ to

be important benefits and ‘chances of government access’, ‘chances of fraud’

and ‘lack of information security ’ to be vital risks associate with electronic

banking.

Jun and Cai (2001)151 identified 17 service quality dimension of i-banking

service quality. These are reliability, responsiveness, competence, courtesy, 149 Júlio Püschel, José Afonso Mazzon, José Mauro C. Hernandez, (2010) "Mobile banking: proposition of an integrated adoption intention framework", International Journal of Bank Marketing, Vol. 28 Iss: 5, pp.389 – 409 150 Plastic Revolution through information technology 1997 by Mr.D.Joseph Anbarasu, a commerce lecturer and course coordinator of IGNOU at Bishop Heber College, Tiruchirappalli. 151 Jun, M. and Cai, S. (2001) ‘The key determinants of internet bank service quality: a content analysis’, International Journal of Bank Marketing, Vol. 19, No. 7, pp.276–291.

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credibility, access, communication, understanding the customer, collaboration,

continuous improvement, content, accuracy, ease of use, timeliness, aesthetics,

security and divers features. They also suggested that some dimensions such

as responsiveness, reliability and access are critical for both traditional and

internet banks.

Jonathan Donner; Camilo Andres Tellez 2008152 Around the globe,

various initiatives use the mobile phone to provide financial services to those

without access to traditional banks. Relatively little scholarly research explores

the use of these m-banking/m-payments systems. This paper calls attention to

this gap in the research literature, emphasizing the need for research focusing on

the context(s) of m-banking/m-payments use. Presenting illustrative data from

exploratory work with small enterprises in urban India, it argues that contextual

research is a critical input to effective 'adoption' or 'impact' research. Further, it

suggests that the challenges of linking studies of use to those of adoption and

impact reflect established dynamics within the Information and Communication

Technologies and Development (ICTD) research community. The paper identifies

three cross-cutting themes from the broader literature (amplification vs. change,

simultaneous causality, and a multi-dimensional definition of trust), each of which

can offer increased theoretical clarity to future research on m-banking/m-

payments systems.

As Karjaluoto et al. (2002)153 argued that ‘banking is no longer bound to

time and geography. Customers over the world have relatively easy access to

their accounts, 24 hours per day, and seven days a week’. The author further

argued that, with internet banking services, the customers who felt that branch

banking took too much time and effort are now able to make transactions at the

click of their fingers.

152 Jonathan Donner; Camilo Andres Tellez mobile banking and economic development linking adoption . impact and use, Asian Journal of Communication, 1742-0911, Volume 18, Issue 4, 2008, Pages 318 – 332 153 Karjaluoto, H., Mattila, M., & Pento, T. 2002. Factors underlying attitude formation towards online Internet banking in Finland. International Journal of Bank Marketing, 20(6), 261-272.

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G.Kannabiran, P.C. Narayan (2005)154, Over the last decade India has

been one of the fastest adopters of information technology, particularly because

of its capability to provide software solutions to organizations around the world.

This capability has provided a tremendous impetus to the domestic banking

industry in India to deploy the latest in technology, particularly in the Internet

banking and e-commerce arenas. This article discusses the experiences of a

private-sector bank in deploying Internet banking and e-commerce in India.

Strategic alignment of business and IT strategies, planning and implementation

of e-banking initiatives and management of benefits are captured, along with key

contributions to development.

Keldon Bauer and Scott E.Hein(2006)155 Financial service providers

have increasingly offered customers new remote access to such services, with

Internet banking being the latest example. While Internet banking has been

available for years, the early adoption by customers of this technology was

disappointing to most. This paper examines the demand for remote access to

banking accounts by consumers and finds that when the technology is new, the

traditional risk return models including variables allowing for heterogeneous risk

add power in modeling the adoption decision. Perceived risks in Internet banking

are seen to be responsible for some of the hesitation to adopt. Ironically, older

consumers are found to be less likely to adopt Internet banking regardless of

their risk tolerances. However, younger consumers are found to be early

adopters only when they have relatively high levels of risk tolerance.

Koenig-Lewis, Adrian Palmer, Alexander Moll, (2010)156 This paper

aims to investigate the barriers for adopting mobile banking services. The results

of the study indicated that compatibility, perceived usefulness, and risk are 154 G.Kannabiran, P.C.Narayan, Deploying Internet banking and e-commerce-case study of a private sector bank in India, information technology for development, vol.11, issue 4, pp 363-379, Autumn (Fall) 2005. 155 Keldon Bauer and Scott E.Hein, The effect of heterogeneous risk on the early adoption of internet banking technologies, Journal of Banking & Finance, Vol. 30, Issue 6, june 2006, Pages 1713-1725. 156 Koenig-Lewis, Adrian Palmer, Alexander Moll, (2010) "Predicting young consumers' take up of mobile banking Journal of Bank Marketing, Vol. 28 Iss: 5, pp.410 – 432.

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significant indicators for the adoption of m-banking services. Compatibility not

only had a strong direct effect but was also identified as an important antecedent

for perceived ease of use, perceived usefulness and credibility. Trust and

credibility are crucial in reducing the overall perceived risk of m-banking. Nicole

services", International

Krishnan Dandapani, Edward R Lawrence, (2008)157, identify the

causes behind the failures of virtual banks. This work underscores the

importance of the differing financial metrics in the virtual and brick and mortar

banking channel, when analyzing bank failures. This is probably the first study to

examine the causes of failures of virtual banks and contrast them with brick and

mortar banks.

Kenneth B. Yap,David H. Wong,Claire Loh, Randall Bak (2010)158 in

this paper examines the role of situation normality cues (online attributes of the

e-banking web site) and structural assurance cues (size and reputation of the

bank, and quality of traditional service at the branch) in a consumer's evaluation

of the trustworthiness of e-banking and subsequent adoption behaviour. The

size and reputation of the bank were found to provide structural assurance to the

customer but not in the absence of traditional service quality. Web site features

that give customers confidence are significant situation normality cues. .

Khalil and Pearson (2007)159 has found that trust significantly affects

attitude towards i-banking acceptance. To encourage i-banking adoption, banks

need to develop strategies that improve the customer’s trust in the underlying

technology. The other factors include quick response, assurance, follow-up and

empathy. Security, correct transaction, customer control on transaction

157 Krishnan Dandapani, Edward R Lawrence,”Virtual bank failures: an investigation”, Managerial Finance, 2008, vol.34, issue 6. 158 Kenneth B. Yap, David H. Wong, Claire Loh, Randall Bak: Offline and online banking – where to draw the line when building trust in e-banking? International journal of bank marketing, Volume: 28, issue 1 2010. 159 Khalil, M.N. and Pearson, J. M. (2007), ‘The Influence of Trust on Internet Banking Acceptance’ Journal of Internet Banking and Commerce An open access Internet journal August 2007, Vol. 12, No.2.

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(personalisation), order tracking facilities and privacy are other important factors

in the online service that affect the customer satisfaction.

Khalil Md Nor J. Michael Pearson 2008160 In this study, we extend the

decomposed theory of planned behavior (DTPB) by incorporating trust and

examining its impact on an individual's intention to adopt Internet banking. A

majority of the technology adoption research has been completed in developed

countries such as the U.S. Overall, the results indicate that the proposed model

provides a good understanding of factors that influence the intention to use

Internet banking. From a theoretical perspective, the findings help further our

understanding of the constructs that impact technology adoption in an under

researched area: developing countries. It also confirms the multidimensionality of

trust and its role in the adoption of Internet banking. From a practical perspective,

the findings can help banks who wish to offer Internet banking services make

informed decisions about what actions they can take to increase their chances of

success.

Katariina Maenpaa, (2006)161 explores Internet banking services (IBS),

consumers availing the services and the potential development possibilities of

the services in the challenging operational environment. The major finding is that

three of the consumer clusters do not value service dimensions containing

experiential features, whereas the fourth cluster, comprising mainly of

youngsters, perceived those service dimensions very appealing.

Liao and Cheung (2002)162 found that Singaporeans expectations

regarding accuracy, security, transaction speed, user-friendliness, user

involvement, and convenience were the most important quality attributes in the

perceived usefulness of internet-based e-banking. 160 Khalil Md Nor J. Michael Pearson 2008- An Exploratory Study Into The Adoption of Internet Banking in a Developing Country: Malaysia, journal of internet commerce, Vol.7, Issue 1 2008, pp 29 – 73. 161 Katariina Mäenpää, (2006) "Clustering the consumers on the basis of their perceptions of the Internet banking services", Internet Research, Vol. 16 Iss: 3, pp.304-322. 162 Liao, Z. and Cheung, M.T. (2002), “Internet-based e-banking and consumer attitudes: an empirical study”, Information & Management, Vol. 39(4), p. 283-95.

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Z.Liao and W.K.Wong (2008)163 empirically explores the major

considerations associated with Internet-enabled e-banking systems and

systematically measures the determinants of customer interactions with e-

banking services. The results suggest that perceived usefulness, ease of use,

security, convenience and responsiveness to service requests significantly

explain the variation in customer interactions. Both perceived usefulness and

perceived ease of use have significant impacts on customer interactions with

Internet e-banking services. Perceived security, responsiveness and

convenience also represent the primary avenues influencing customer

interactions. The findings have managerial implications for enhancing extant

Internet e-banking operations and developing viable Internet e-banking service.

Lisa Wessels, Judy Drennan, (2010)164 aim to identify and test the key

motivators and inhibitors for consumer acceptance of mobile phone banking (M-

banking), particularly those that affect the consumer's attitude towards, and

intention to use, this self-service banking technology Perceived usefulness,

perceived risk, cost and compatibility were found to affect consumer acceptance

of M-banking. The results also support a mediation model, whereby attitude

transfers the affects of the consumers' perceptions to their intention to use M-

banking.

Luiz Moutinho, Douglas T. Brownlie, (1993)165, The nature and direction

of the satisfactions that are delivered to consumers of bank services are

explored, and the criteria used to evaluate these services are highlighted. The

non-metric multidimensional scaling technique enabled respondents' perceptions

to be represented spatially. It is revealed that respondents had high levels of

satisfaction with regard to the location and accessibility of branches and ATMs, 163 Z. Liao and W.K.Wong,”The determinants of customer interactions with internet –enabled e-banking services”, The journal of the Operational Research Society, vol.59, No.9,September 2008, pp 1201-1210. 164 Lisa Wessels, Judy Drennan, (2010) "An investigation of consumer acceptance of M-banking", International Journal of Bank Marketing, Vol. 28 Iss: 7, pp.547 – 568. 165 Luiz Moutinho, Douglas T. Brownlie, (1993) "Customer Satisfaction with Bank Services: A Multidimensional Space Analysis", International Journal of Bank Marketing, Vol. 7 Iss: 5, pp.23 – 27.

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and acceptance of the current levels of banking fees; but expressed some

caution in their evaluation of new and improved services

Latest developments (2008)166 ATMs have become a more preferred

mode of banking in the Indian banking industry. A lot of customers prefer

conducting transactions on ATMs rather than branches as it provides more

convenience to customers. According to RBI data there are about 17000 ATMs,

while branches across the use are 50000 of these SBI with its seven associates

alone has the largest ATM counters of about 600.

Laura Bradley, Kate Stewart, (2002)167 Although Internet banking is a

growing phenomenon, the underlying factors driving and inhibiting its diffusion

are not well understood. This paper presents empirical research that investigated

the factors driving and inhibiting Internet banking. The main component of the

research was a Delphi study of expert opinion. This paper gives a brief overview

of the academic literature on the diffusion of innovation and Internet banking. The

conduct and findings of the Delphi study are then reported. The paper concludes

that Internet banking will become an extremely important distribution channel in

the future, with the drivers overcoming the inhibitors in influencing the rate.

Further to this, the paper indicates that the existing diffusion of innovation

literature identifies some of the factors instrumental in the diffusion of Internet

banking. However, this study identifies additional issues

Long Pham, Thien H Kieu, Tuan M Tran, Huy P Tran168 E-banking is

seen as the newest delivery channel of banks in many developed countries and

nobody can deny the fact that such a newest channel is believed to have a

significant impact on the bank market. It is contended that e-banking is providing

166 [Latest developments. The journal of banking studies. vol.xxvii, no.4, April 2008. pg .7] 167 Laura Bradley, Kate Stewart, (2002) "A Delphi study of the drivers and inhibitors of Internet banking", International Journal of Bank Marketing, Vol. 20 Iss: 6, pp.250 – 260. 168 Long Pham, Tuan M Tran, E-Banking Adoption in Vietnam Southeast Asia Regional Conference Ho Chi Minh City,Vietnam Trends in International Business: Change and Competition Issues Paper no. P019,page 1-19. Liang Han, (2008) "Bricks vs clicks: entrepreneurial online banking behaviour and relationship banking", International Journal of Entrepreneurial Behaviour & Research, Vol. 14 Iss: 1, pp.47 – 60.

69

numerous good opportunities for banks and non-bank financial institutions to add

a low cost distribution channel to their existent distribution channels in order to

better serve their customers by offering various products and services with high

quality. Little research on factors influencing the adoption of e-banking has been

implemented in countries that are emerging as new potential markets (such as

Vietnam) with very high economic growth rates. Thus, this study has, based on

an extensive review of literature on e-banking benefits for both banks and their

customers and relevant theories on innovation adoption, proposed a

comprehensive model of e-banking adoption by customers in Vietnam.

Liang Han, (2008)169 examines the impacts of entrepreneurial online

banking and relationship banking on the severity of financial problems perceived

by entrepreneurs and their interactive effect. He also investigates how

characteristics of individual businesses and entrepreneurial demographics

influence SMEs' financial situation. He found that both entrepreneurial online

banking behaviour and relationship banking alleviates the severity of financial

problems perceived by entrepreneurs. The relationship affect is less evident for

entrepreneurs who most frequently use an online approach to communicate with

their banks than for those using traditional methods. Business and entrepreneur

characteristics also have a strong impact on the severity

Luis.V. Casalo, Carlos Flavian, Miguel Guinaliu (2008)170 Customer

loyalty and positive word-of-mouth (WOM) have been traditionally two main goals

aimed at by managers. Focusing on the online banking, the importance of these

concepts is even greater due to the increasing competence in electronic

commerce. Thus, the purpose of this paper is to characterize both concepts in

the e-banking context. This research showed that satisfaction with previous

interactions with the bank website had a positive effect on both customer loyalty

169 Liang Han, (2008) "Bricks vs clicks: entrepreneurial online banking behaviour and relationship banking", International Journal of Entrepreneurial Behaviour & Research, Vol. 14 Iss: 1, pp.47 – 60. 170 Luis V. Casaló, Carlos Flavián, Miguel Guinalíu, (2008) "The role of satisfaction and website usability in developing customer loyalty and positive word-of-mouth in the e-banking services", International Journal of Bank Marketing, Vol. 26 Iss: 6, pp.399 – 417.

70

and positive WOM. In addition, website usability was found to have a positive

effect on customer satisfaction and, as expected, loyalty was also significantly

related to positive WOM.

Melek Acar Boyacioglu, Tevfik Nadi Hotamis, Huseyin Cetin, 2010171. The present study is an attempt to examine the performance of

Turkish banks in terms of providing banking products and services through their

web sites. A representative sample of 22 banks operating in Turkey was included

in this study. The websites of these banks have been analyzed in terms of the

financial transaction, non financial transaction, speed, security, uninterrupted

serviceability and visual design. Research is conducted in 2009 and shows that

Turkish banks perform extremely well in IB. This study also investigates the level

of adoption of IB in Turkey. A survey is conducted to obtain customers’

perspectives regarding IB. According to the results obtained from the survey; all

of the participants who did not use IB found IB difficult. They did not know how to

use IB or found IB service insecure and unclear. Therefore, they prefer face-to-

face banking. Moreover, it was observed that the levels of education and income

were the factors that most affected IB use. It was concluded that the clients who

found IB easy and thought that it served their purpose had been using IB for a

longer time. On the other hand, usefulness, web security and personal views did

not have a significant influence on the duration of IB use.

Two studies by professor Mathews and Slocum (1970)172 found a

number of in leveling and useful relationships between social class, income and

the usage of bank credit cards. They found that members of the lower social

classes tend to use their cards for installment purposes, upper classes for

convenience. The study also indicated that the upper classes are generally

favourable towards using credit to purchase luxury goods and the lower class

users tended to use their cards for durable and necessary goods.

171 Melek Acar Bovacioglu, Tevfik Nadi Hotamis, Husevin Cetin,2010, An evalution of internet banking in Turkey, Journal of internet Banking and commerce, August 2010, vol 15. 172 Mathews and Slocum (1970) Trends in International Business: Change and Competition Issues, Paper no. P019, Southeast Asia Regional Conference,Ho Chi Minh City, Vietnam.

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Malhotra and Singh (2007)173 carried out a study to find the i-banking

adoption by the banks in India. The study suggests that larger banks or banks

with younger age, private ownership and lower branch intensity possess high

probability of adoption of this new technology. Banks with lower market share

also perceive i-banking technology as a means to increase the market share by

attracting more and more customers through this new channel of delivery.

However, the service quality in i-banking from customers needs thorough

analysis to find out the determinants for success and growth of new channel of

delivery in India so that useful guidelines for bankers can be extracted. To this

end, this study aims at determining the service quality of banks operative in India

with regards to i-banking and identifying the important parameters crucial for

service quality from customer’s perspective. The study also explores the

importance of parameters across the demographic profile of the respondents.

Miranda-Petronella, Vlad (2009)174 have stated that E-banking is the first

of those banking services that really economize time, because it allows to the

user accomplish from behind the computer any operations in the bank account,

represents the computational solution that allows to the holder to have access at

distance at the capitals from his account, purposing to obtain information about

his account situation and the situation of the effected operations, of the payment

and of the capitals transfers over a beneficiary, by a computational application, of

a authentication method and of a communicational average, the e-banking is

absolutely necessary in the integration conditions.

Mattila and Mattila (2005)175 claimed that security has been widely

recognized as one of the main barriers to the adoption of internet is dependent

173 Malhotra,, P & Singh, B., “The Impact of Internet Banking on Bank Performance and Risk: The Indian Experience,” Eurasian Journal of Business and Economics, vol. 2, no. 4, pp. 43-62, 2009. 174 Miranda-Petronella, E-banking-Modern Banking Services, Economic Science Series, 2009, Vol. 18 Issue 4, p1093-1096. 175 Mattila, A. and Mattila, M. 2005. How perceived security appears in the commercialisation of internet banking, Int. J. Financial Services Management, Vol, No 1,pp 23-34.

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upon the availability of internet service and interestingly on a number of several

other social and psychological factors as well.

Mathew Joseph, George Stone, (2003)176 The installment of customer

friendly technology (such as menu driven automated teller machines, telephone

and Internet banking services) as a means of delivering traditional banking

services has become commonplace in recent years as a way of maintaining

customer loyalty and increasing market share. Traditional brick and mortar banks

are using technology to meet the competitive challenge posed by online banks,

as well as a method of reducing the cost of providing services that were once

delivered exclusively by bank personnel. The present research investigates some

of the various roles technology plays in the US banking sector and how

technology in general impacts the delivery of banking service.

Mathew Joseph, Yasmin Sekhon, George Stone, Julie Tinson, (2005)177 The current exploratory study is an attempt to discover the underlying

areas of dissatisfaction associated with the banking experience in the UK,

particularly as it relates to the implementation of new service delivery technology

in the banking industry. The importance-performance grid demonstrates that two of the factors and their underlying attributes fall into the “Keep up the good work”

quadrant and the other two factors fall into the “Low priority” quadrant. The first

two are areas the organization needs to allocate resources in order to maintain

the level of service they provide their clients. From a strategic point of view, this

grid provides a tool for strategy development as it gives a clear picture of the

factors that are critical for resource allocation.

176 Mathew Joseph, George Stone, “An empirical evaluation of US bank customer perceptions of the impact of technology on service delivery in the banking sector” International journal of Retail & Distribution management, vol.31, issue 4,2003. 177 Mathew joseph, Yasmin Sekhon, George Stone, Julie Tinson, “An exploratory study on the use of banking technology in the UK: A ranking of importance of selected technology on consumer perception of service delivery performance”, International Journal of bank marketing, Vol.23, Iss: 5, pp 397-413.

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Mittal, R.K. & Dhingra, S. (2007)178 studied the role of technology in

banking sector. They analyzed investment scenario in technology in Indian banks

but this study was related to the time period before the Information Technology

Act and at that time technology in Indian banks was very low. But both the

researchers nicely presented their views.

Michel Rod, Nicholas J. Ashill, Jinyi Shao, Janet Carruthers, (2009)179 examine the relationships among three dimensions of service quality that

influence overall internet banking service quality and its subsequent effect on

customer satisfaction in a New Zealand banking context. The results show

significant relationships among online customer service quality, online

information system quality, banking service product quality, overall internet

banking service quality and customer satisfaction.

Mavri, M & Ioannou, G(2006)180 IB is the latest in the series of

technological wonders of the recent past. ATMs, Tele-Banking, Internet Banking,

Credit Cards and Debit Cards have emerged as effective delivery channels for

traditional banking products. Banks know that the Internet opens up new

horizons for them and moves them from local to global frontiers

Mahdi Salehi, Alipour,Mehrdad,(2010)181 have stated “Now a day’s due

to emerging global economy, e-commerce and e-business have increasingly

become a necessary component of business strategy and a strong catalyst for

economic development. The new information technology is becoming an

important factor in the future development of financial services industry, and

especially banking industry. The results of this study shows that e-banking

178 Mittal, R.K. & Sanjay (2007), “Technology in Banking Sector: Issues and Challenges”, Vinimaya, Vol. XXVII, No. 4, (Jan – March), pp. 14 – 22. 179 Michel Rod, Nicholas J. Ashill, Jinyi Shao, Janet Carruthers, (2009) "An examination of the relationship between service quality dimensions, overall internet banking service quality and customer satisfaction: A New Zealand study", Marketing Intelligence & Planning, Vol. 27 Iss: 1, pp.103 – 126. 180 Mavri, M & Ioannou, G., “Consumers’ Perspectives on Online Banking Services,” International Journal of Consumer Studies, vol. 30, no. 6, pp. 552-560, 2006. 181 Mahdi Salehi, Alipour, Mehrdad, “E-banking in Emerging economy: Empirical evidence of Iran”, International Journal of economic and finance, February 2010, vol.2, issue 1, pg 201-209.

74

serves several advantages to Iranian banking sector, however, the study also

shows that the Iranian customers have not enough knowledge regarding e-

banking which is rendering by banking sector in Iran.

Mark Durkin, (2007)182 reports the findings of the latest, quantitative

phase of a continuing study that explores the impact of the internet on bank-

customer relationships. The specific aim is to shed light on customers' own views

about when, how and in which circumstances personal contact with bank staff

remains appropriate despite developments in online banking. Motivating and

inhibiting influences on interaction with bank staff are identified.

Mary Loonam, Deirdre O’Loughlin, (2008)183 in this paper is to explore

the emergence of self-service banking technology and investigates customers’

perceptions of internet banking self-service within the Irish financial services

sector. This qualitative study the Irish retail banking sector explored consumers’

e-banking interactions and experiences in addition to assessing the dimensions

critical to e-banking service quality. Malhotra,, P & Singh, B, (2009)184 The financial products and services

have become available over the Internet, which has thus become an important

distribution channel for a number of banks. Banks boost technology investment

spending strongly to address revenue, cost and competitiveness concerns. The

purpose of present study is to analyze such effects of IB in India, where no

rigorous attempts have been undertaken to understand this aspect of the banking

business.

182 Mark Durkin, "On the role of bank staff in online customer purchase”, Marketing Intelligence & Planning, Vol.25, Iss:1/2007, pp 82-97. 183 Mary Loonam,Deirdre O’Loughlin,(2008), “Exploring e-service quality, a study of Irish online banking”, Marketing Intelligence & planning, Vol.26, issue.7, pp.759-780. 184 Malhotra,, P & Singh, B., “The Impact of Internet Banking on Bank Performance and Risk: The Indian Experience,” Eurasian Journal of Business and Economics, vol. 2, no. 4, pp. 43-62, 2009.

75

Mahapatra, Khan, M.S S.S. and Sreekumar (2009)185 This study aims at

evaluating the service quality of internet banking (i-banking) services in India

from customer’s perspective. A structured questionnaire containing 44 quality

items is administered to various target groups. Seven quality dimensions, viz.

reliability, accessibility, user friendliness, privacy/security, efficiency,

responsiveness and fulfilment, are identified based on principal component factor

analysis. Demographic analysis of data reveals that gender is hardly a bias for

use and evaluation of service quality of i-banking in most of the cases across

various categories of customers. A valid mathematical model is proposed to

assess the overall service quality using regression analysis. The results show

that customers are satisfied with quality of service on four dimensions such as

reliability, accessibility, privacy/security, responsiveness and fulfillment, but least

satisfied with the ‘user-friendliness’ dimension. The empirical findings not only

prioritize different parameters but also provide guidelines to bankers to focus on

the parameters on which they need to improve.

Milind Sathye 1997186 The article reviews the present status of Internet

Banking in Australia. It begins with the findings of the Wallis Committee on

Internet Banking and then examines the present status with respect to the banks

on the net, the services they provide, difficulties the customers face and remedial

actions necessary on the part of banks. The article concludes with the

observations that Australian banks are lagging behind their counterparts in

US,Europe and Japan in providing banking services on the Internet and calls for

serious effort by banks, computer specialists, academicians and others to

popularize this upcoming area if banking is not to look medieval in Australia when

compared to World standards.

185 Khan, M.S., Mahapatra, S.S. 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. 186 Milind Sathye 1997, Internet Banking in Australia, Journal of Internet Banking and Commerce, Vol. 2 No. 4, September 1997.

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Mols, (1998)187 It is totally possible for customers to manage their banking

transactions whenever they want and to enjoy improved privacy in their

interactions with the bank. In addition, customers can enjoy more benefits at

lower cost levels by utilizing e-banking.

Mols (2000)188 contend that internet banking may bring a dramatic

transformation in the way banks build and maintain close relationships with

customers. It is therefore crucial for banks to recognize the importance of

improving internet banking services so as to ensure that existing customers are

receiving the adequate and desired level of internet services and to attract

potential customers.

Mohammed Sadique Khan and Siba Sankar Mahapatra, Sreekumar , (2009)189 This study aims at evaluating the service quality of internet banking (i-

banking) services in India from customer’s perspective. A structured

questionnaire containing 44 quality items is administered to various target

groups. Seven quality dimensions, viz. reliability, accessibility, user friendliness,

privacy/security, efficiency, responsiveness and fulfillment, are identified based

on principal component factor analysis. Demographic analysis of data reveals

that gender is hardly a bias for use and evaluation of service quality of i-banking

in most of the cases across various categories of customers. A valid

mathematical model is proposed to assess the overall service quality using

regression analysis. The results show that customers are satisfied with quality of

service on four dimensions such as reliability, accessibility, privacy/security,

responsiveness and fulfillment, but least satisfied with the ‘user-friendliness’

dimension. The empirical findings not only prioritize different parameters but also

187 Mols, K. 1998. The behavior consequences of PC banking. International Journal of Bank Marketing, 16(5): 195 – 201. 188 Mols, N.P. (2000), “The Internet and services marketing – the case of Danish retail banking”, Internet Research: Electronic Networking Applications and Policy, Vol. 10(1), p. 7-18. 189 Mohammed Sadique Khan and Siba Sankar Mahapatra, Sreekumar, (2009) ‘Service quality evaluation in internet banking: an empirical study in India’, Int. Journal Indian Culture and Business Management, Vol. 2, No. 1, pp.30–46.

77

provide guidelines to bankers to focus on the parameters on which they need to

improve.

Ming-te Lu, Chun-hong, Liu, Jiang Jing, Linjun Huang, (2005)190

assess to what Chinese domestic banks’ use of internet banking as a strategic

response to the entrance of the WTO is affected by factors both external and

internal to the banks.

Myria Ioannou, Judy Zolkiewski, (2009)191 The intangible nature of

banking services enables financial institutions to deliver them through electronic

channels. In addition, the interactive and continuous nature of banking services is

conducive to relationship development. It would, therefore, be beneficial for the

dyad to build exchange relationships online. This exploratory research

investigates the effect of e-banking on the development of retail relationships in

Cyprus.

Nafis Alam, Murali Raman, (2010)192 Innovations in Information

technology have changed the way financial transactions are done in banking

industry globally. Banks perceive online banking as a powerful ‘value-added’ tool

to attract and retain new customers while helping to eliminate costly paper

handling and teller interactions. Online banking has managed to provide

customers the convenience, efficiency, effectiveness, and most importantly, the

speed needed in today’s dynamic world. As more banks around the world are

offering online banking to its customers, it is becoming a rather popular trend.

Online banking is an asset both to the bank and the customer. However,

countries like Sudan are yet to join the frenzy of this new innovation in an

190 Ming-te Lu, Chun-hong, Liu, Jiang Jing, Linjun Huang,“Internet banking: strategic responses to the accession of WTO by Chinese bank”, Industrial Management &data-Systems,2005,vol-105,issue-4. 191 Myriad loannou, Judy Zolkiewski, “Can retail bank-client relationships be developed online?”, EuroMed Journal of Business, Vol.4, Iss. 3,/2009, pp 254-269. 192 Nafis Alam, Murali Raman, (2010) Challenges Faced by Sudanese Banks in Implementing Online Banking: Bankers’ Perception Journal of Internet Banking and Commerce, August 2010, vol. 15, no.2.

78

effective manner. This paper will investigate what are the challenges faced by

Sudanese banks in implementing online banking.

Ndubisi and Sinti (2006)193 examine the determinant structure of

customer attitude on adoption of IB in Malaysia. They show the “attitudinal

factors” play a significant role in IB adoption. In addition, IB adoption can predict

by behavioral tendency and webpage features. According to this study, easy-to-

use technologies and trial ability should be put in place in order to increase

adoption. Moreover, risk has no significant influence of adoptions

Norazah Mohd Suki,(2010)194 This paper examines factors that influence

the Internet banking adoption among Malaysian consumers. The study sample

consists of 100 respondents. The results shows that Hedonic oriented Internet

banking sites, followed by the perceived Importance of Internet banking to

banking needs and Compatibility all significantly affect the adoption of Internet

banking by Malaysian consumers. Trial ability has the weakest influence for

consumer Internet banking adoption beside Complexity, Risk, and Utilitarian

oriented Internet banking sites. The empirical data used for this study was

collected in Malaysia market which may have a culturally and technologically

different environment from some other countries. This paper makes a

contribution to Internet banking literature by providing insights on the factors that

affect Internet banking adoption. The results hint that information about Internet

banking services and its benefits is a critical factor influencing the adoption. The

findings made a contribution in terms of understanding the factors that can

contribute to the adoption of Internet banking by Malaysian consumers.

Norizan Mohd Kassim, Abdel Kader Mohammed Ahmed Abdulla, (2006)195 This research in this paper aims to investigate and extend the trust-

193 Ndubisi Nelson Oly, Sinti, Queenie (2006). “Consumer Attitudes, System’s Characteristics and Internet Banking Adoption in Malaysia”, Management Research News, 29 (1/2): 16-27. 194 Norazah Mohd Suki,(2010) An Empirical Study of Factors Affecting the Internet Banking Adoption among Malaysian Consumers’. Journal of Internet Banking and Commerce, August 2010, vol. 15, no.2. 195 Norizan Mohd Kassim, Abdel Kader Mohammed Ahmed Abdulla, (2006).

79

relationship commitment model to an internet banking setting by adding attraction

as a new factor. The findings in the paper indicate that both trust and attraction

have significant positive impact on relationship commitment with attraction having

a strong positive effect, with communication representing the most important

determinant of attraction and having a significant positive relationship with both

trust and attraction. The paper shows that, from the managerial perspective, it is

necessary for bankers and policy makers to know the relationship between trust

and attraction because their influence on the actual commitment is different.

Nour-Mohammad Yaghoubi and Ebrahim Bahmani 2010196 Online

banking has emerged as one of the most profitable e-commerce applications

over the last decade. This study investigates which factors affect the adoption of

online banking in Isfahan Province of Iran. The results indicated that the intention

to use online banking is positively affected mainly by perceived behavioral control

and perceived usefulness.

Nelson Oly Ndubisi, Queenie Sinti, (2006)197 This paper examines the

determinant structure of customers’ attitude system's characteristics on adoption

of internet banking (IB) by Malaysian bank customers. The results of the study

reveal that the attitudinal factors play a significant role in internet banking

adoption. Moreover, utilitarian orientation of the website rather than hedonic

orientation has significant influence on adoption

Ndubisi and Sinti, 2006198 Besides, the speed, product features

availability, and reasonable service fees and charges, as well as the bank’s

operations management factor are critical to the success of the e-banks. WAP,

GPRS and 3G features from mobile devices are of no significance or influence in

196 Nour-Mohammad Yaghoubi and Ebrahim Bahmani, Factors Affecting the Adoption of Online Banking: An Integration of Technology Acceptance Model and Theory of Planned Behavior, Pakistan Journal of Social Sciences Year: 2010, Volume: 7, Issue: 3,Page No.: 231-236. 197 Nelson Oly Ndubisi, Queenie Sinti,(2006)"Consumer attitudes,system's characteristics and internet banking adoption in Malaysia", Management Research News, Vol. 29 Iss: 1/2, pp.16 – 27. 198 Ndubisi Nelson Oly, Sinti, Queenie (2006). “Consumer Attitudes, System’s Characteristics and Internet Banking Adoption in Malaysia”, Management Research News, 29 (1/2): 16-27.

80

the adoption of e-banking services in this study. Results also reveal that privacy;

security and convenience factors play an important role in determining the users’

acceptance of e-banking services with respect to different segmentation of age

group, education level and income level. Moreover, the exposure of internet

banking adoption in Malaysia is relatively lower and very little research has been

done to understand the key adoption determinants. Though, electronic revolution

has commenced in Malaysia a long ago, but Internet banking is still in its infancy

stage. So, it’s become very hard for the bank industry to design interventions that

would enhance the diffusion of Internet banking.

Nadim Jahangir and Noorjahan Begum,(2008)199 This research intends

to propose a conceptual framework that will investigate the effects of perceived

usefulness, ease of use, and security and privacy on customer adaptation

mediated through customer attitude in the context of e-banking. To test the

framework, structural equation modeling techniques have been applied to data

collected from 227 customers of private commercial banks in Bangladesh.

Primarily this study aims to test the theoretical models to measure the causality

whether perceived usefulness, ease of use, security and privacy, and customer

attitude can foster customer adaptation. The initial results of the study indicate

that perceived usefulness, ease of use, security and privacy, and customer

attitude are significantly and positively related to customer adaptation.

Implications for practicing managers and for future research are discussed.

Neha Dixit, Dr. Saroj K. Datta (2010)200 Internet banking is a form of self

service technology. The numbers of Internet users have increased dramatically,

but most of them are reluctant to provide sensitive personal information to

websites because they do not trust e-commerce security. This paper investigates

199 Nadim Jahangir and Noorjahan Begum, The role of perceived usefulness, perceived ease of use, security and privacy, and customer attitude to engender customer adaptation in the context of electronic banking, African Journal of Business Management Vol.2 (1), pp. 032-040, February, 2008. 200 Neha Dixit, Dr. Saroj K. Datta Acceptance of E-banking among Adult Customers: An Empirical Investigation in India Journal of Internet Banking and Commerce, August 2010, vol. 15, no.2.

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the factors which are affecting the acceptance of e-banking services among adult

customers and also indicates level of concern regarding security and privacy

issues in Indian context. The finding depicts many factors like security & privacy,

trust, innovativeness, familiarity, awareness level increase the acceptance of

ebanking services among Indian customers. The finding shows that in spite of

their security and privacy concern, adult customers are willing to adopt online

banking if banks provide him necessary guidance. Based on the results of

current study, Bank’s managers would segment the market on the basis of age

group and take their opinion and will provide them necessary guidance regarding

use of online banking.

Ong Hway-Boon, Cheng Ming Yu (2003)201 One of the most significant

implications of technological advances in the banking sector is the possibility of

delivering banking services through electronic channels (e-channels). E-channels

provide alternatives for faster delivery of banking services to a wider scope of

customers. However, prior to the implementation of e-channels, several factors

and investment costs must be identified to ensure a more cost effective and

efficient execution of e-channel services. The results of the survey suggested

that banks’ operation management is the main factor affecting the success of

ATMs, PC and branch banking, while product innovation and knowledge

development factors are found to have the most significant effect on the success

of banking kiosks and phone banking respectively.

Onkar Nath,(2000)202 has stated the need of RTGS in inter-bank(inter-

institutional) transfer of funds on a real time and gross basis. This system has

been considered to be an important one for enhancing the performance of level

of banking services. Ortega, BH, Martinez, JJ & Hoyos, JMD(2007) Internet is the

cheapest delivery channel for banking products as it allows the entity to reduce

201 Ong Hway-Boon, Cheng Ming Yu (2003) “Success factors in e-channels: the Malaysian banking scenario”, International Journal of Bank Marketing, Volume: 21, Issue:6, July 2003. 202 Onkar Nath,RTGS System(membership regulations), Bank Quest, April-June,2000, pg-34, Ortega, BH, Martinez, JJ & Hoyos, JMD., “An Analysis of Web Navigability in Spanish Internet Banking,” Journal of Internet Banking and Commerce, vol. 12, no. 3. 2007.

82

their branch networks and downsize the number of service staff. The navigability

of the website is a very important part of IB because it can become one of the

biggest competitive advantages of a financial entity

Patrick Ibbotson, Lucia Moran,(2003)203, Internal and external forces

continue to impact on the financial service sector, making it ever more difficult for

traditional banks both to retain their existing small to medium sized

enterprises(SME) client base, and to acquire new business clients. The

traditionally poor relationship between banks and their small corporate clients

has been well documented throughout the years; however, the increased use of

electronic banking channels by SME banking customers threatens to change the

very nature of that relationship. This paper examines the current nature of the

relationship between SMEs and their banks in Northern Ireland and investigates

the level of usage of and satisfaction with electronic banking channels in this

region.

Padmanaban G, 2005204 has stated that the banking in India has

undergone rapid transformation. The last two decades have witnessed a sea

change in the nature of services offered by banks which has a positive impact on

the customers of banks. Technology will be considered as an emerging tool for

providing the better customer service

Phan.D, (2003)205, In the study by IAMAI, it was found that the people are

not doing financial transactions on the banks’ Internet sites in India because of

reasons such as security concerns (43%), preference for face-to-face

transactions (39%), lack of knowledge about transferring online (22%), lack of

user friendliness (10%), or lack of the facility in the current bank (2%) .

203 Patrick Ibbotson, Lucia Moran,(2003), “E-banking and the SME bank relationship in Northern Ireland”, International Journal of Bank Marketing, vol.21, issue.2, pp 94-103. 204 Padmanaban G., chief manager in charge, Dept of Information Technology, Reserve bank in the Banknet-India’s bank Tech submit at Taj Lands Ends, Mumbai, on September 22, 2005. 205 Phan, D., “E-Business Development for Competitive Advantages: A Case Study, “ Information & Management, vol. 40, pp. 581–590, 2003.

83

Pathrose P.P, (2001),206 asserted that banking over the world is

undergoing a rapid and radical transformation due to the pervasive influence of

IT and breath taking developments in the technology of telecommunications and

electronic data processing. IT, which implies the integration of information system

with communication technology, has radically altered the traditional ways of

doing banking business and allowed banks to wipe out the difference in time as

well as distance. It is in this context that this article attempts to trace the present

status o hi-tech banking in India, visualize its prospects and look at the

challenges and problems. He concludes that in the face of severe competition

and escalating expectation of customer for newer products and alternative

delivery channels, the contours of banking are being redefined.

Petrus Guriting, Nelson Oly Ndubisi, (2006)207 "Adopting the technology

acceptance model, this research examines the factors that determine intention to

use online banking in Malaysia Borneo. Perceived ease of use and perceived

usefulness are the factors considered to be fundamental in determining the

acceptance and use of various information technologies. However, these beliefs

may not fully clarify behavioural intention towards newly emerging technologies,

such as online banking. The results indicate that perceived usefulness and

perceived ease of use are strong determinants of behavioural intention to adopt

online banking. There is also an indirect effect of computer self-efficacy and prior

general computing experience on behavioural intention through perceived

usefulness and perceived ease of use.

Pooja Malhotra, Balwinder Singh, (2010)208, This exploratory study is

an attempt to present the present status of internet banking in India and the

extent of internet banking services offered by internet banks. In addition, it seeks

to examine the factors affecting the extent of internet banking services. The

206 Pathrose p.p. in “Hi-tech banking prospects and problems, IBA bulletin, Vol.xxiii, No.7, July, 2001. 207 Petrus Guriting, Nelson Oly Ndubisi, (2006) "Borneo online banking: evaluating customer perceptions and behavioural intention", Management Research News, Vol. 29 Iss: 1/2, pp.6 – 15. 208 Pooja Malhotra, Balwinder Singh,(2010), “An analysis of internet banking offerings and its determinants in India”, Internet Research,2010, vol.20, issue 1, pp 887-106.

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purpose of the study is to help fill significant gaps in knowledge about the internet

banking landscape in India. This paper contributes to the empirical literature on

diffusion of financial innovations, particularly internet banking, in a developing

country, i.e., India

Perumal .V & Shanmugan, 2004209, It provides universal connection from

any location worldwide and is universally accessible from any internet linked

computer Philip Gerrard, J. Barton Cunningham, (2003) " Internet banking is a

form of self-service technology, costing millions of dollars, which leading retail

banks have made available in the recent past. An understanding of why users

are more accepting of Internet banking services should help bank managers

implement this self-service technology. The results show that adopters of

Internet banking perceive the service to be more convenient, less complex, more

compatible to them and more suited to those who are PC proficient. Adopters

were also found to be more financially innovative. The perceptions that adopters

had about social desirability, confidentiality, accessibility and economic benefits

were viewed no differently when adopters were compared with non-adopters.

Pedro Cruz, Lineu Barretto Filgueiras Neto, Pablo Muñoz-Gallego, Tommi Laukkanen, (2010)210 The aim of this paper is to investigate the

perceived obstacles to the adoption of mobile banking services among Brazilian

internet users and search for patterns according to socio-demographics

variablesThe results indicate that the majority of respondents do not use any kind

of mobile banking service. Perception of cost, risk, low perceived relative

advantage and complexity were revealed to be the main reasons behind the

reluctance to use the service. The influence of other background factors is less

evident

209 Perumal, V & Shanmugan., “Internet Banking: Boone or Bane,” Journal of Internet Banking and Commerce, vol. 19, no. 3. 2004. 210 Pedro Cruz, Lineu Barretto Filgueiras Neto, Pablo Muñoz-Gallego, Tommi Laukkanen, (2010) "Mobile banking rollout in emerging markets: evidence from Brazil", International Journal of Bank Marketing, Vol. 28 Iss: 5, pp.342 – 371.

85

Pikkarainen, Karjaluoto, and Pahnila, (2004)211 defines internet banking

as an internet portal, through which customers can use different kinds of banking

services ranging from bill payment to making investments. Banks use online

banking as it is one of the cheapest delivery channels for banking products .With

the exception of cash withdrawals, internet banking gives customers access to

almost any type of banking transaction at the click of a mouse. Indeed the use of

the internet as a new alternative channel for the distribution of financial services

has become a competitive necessity instead of just a way to achieve competitive

advantage with the advent of globalization and fiercer competition

Polatoglu and Ekin (2001)212 have examined the level of adoption of the

IB in Turkey, and discussed the factors affecting its diffusion. This study reveals

that IB services not only reduce the operational costs of the banks, but also

increase the level of customer satisfaction. They clarifies that IB services have

added benefits in terms of customer attraction, and it may lead to higher

competition by bringing new products and alternative channel offerings..

Prabir K Biswas 2007213 Historically banks have been the major

intermediary between demand and supply of capital and the success of such

intermediation is closely linked to the trust built over the years between banks

and customers. With geographical expansion of banks in India together with

banking sector reforms, globalization and use of technology, banks have been

finding difficulty to adapt to the new competitive environment and customers

often find themselves in the receiving end of banks’ lack of customer service.

Customer service has also not improved due to lack of involvement on the parts

of the executives, officers, and other staff of the banks as exemplified by non-

deployment of resources and non-integrating customer service as part of banks’

211 Pikkarainen, T., Pikkarainen, K., Karjaluoto, H., & Pahnila, S. 2004. Consumer acceptance of online banking:An extension of the technology acceptance model. Internet Research, 14(3), 224–235. 212 Polatoglu V., Ekin S. (2001), An empirical investigation of the Turkish consumers’ acceptance of IB services, The International Journal of Bank Marketing 19 (4), pp. 156-165 no.2 213 Prabir K Biswas Know Your Customer or Know Your Bank? - April-June 2007 Vol. XXVIII No. 1, vinimaya archives.

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place customer service audit and accountability at different levels as part of

banks’ integrated risk management framework

Qadar Bakhsh Baloach, M. Imran Khan, Adnan Alam, (2009)214 This

comparative study aims to provide a better understanding of how online banking

services between Islamic and conventional commercial banks are prevailing in

Pakistan. This purpose is achieved via one research question which focuses on

how the bank’s online services can be described. A multiple case study strategy

is used, focusing on two banks, one Islamic bank namely Meezan bank and other

conventional commercial bank namely Citibank of Pakistan. Data was collected

via observation and interaction with the websites, focusing on feedback from the

customers using the banking websites. In using these websites for their banking,

the findings show that the main benefits included lower costs, efficiency and time

saving retention and Islamic banks should concentrate more on professional and

technical skills. Websites should have clear and brief information in order to build

trust with the customer.

Qureshi, T, Zafar, M & Khan, M, 2008,215 User adoption of a technology

has become a crucial or significant measure of the success or effectiveness of

that technology. Revolutionary development in Information and Communication

Technology (ICT) in the past 20 years has impacted individuals as well as

businesses in a profound way. Technological innovations are having significant

importance in human general and professional life. This era can safely be

attributed as technology revolution. The quick expansion of information

technology has imbibed into the lives of millions of people. Rapid technology

advancements have introduced major changes in the worldwide economic and

business atmosphere.

214 Qadar Bakhsh Baloach, M. Imran Khan, Adnan Alam, A Comparative Study of Islamic and Conventional Banks of Pakistan, Journal of Managerial Sciences, 2009 Volume IV, Number 1 pg-69-93. 215 Qureshi, T, Zafar, M & Khan, M.,“Customer Acceptance of Online Banking in Developing Economies,” Journal of Internet Banking and Commerce, vol. 13, no.1. 2008.

87

Ratnasingam (2002)216 argued that the impact of technology trust in Web

services implies the use of security services such as digital signatures,

encryption mechanisms, and authorization mechanisms. This paper relates to the

condition of the consumers’ perceptions on security issues in E-banking. Mainly

consumers' perceptions are derived from the set of technologies that are

customarily visible to them over the Web

Rao et al. (2003)217 provide a theoretical analysis of Internet banking in

India and found that as compared to banks abroad, Indian banks offering online

services still have a long way to go. For online banking to reach a critical mass,

there has to be sufficient number of users and the sufficient infrastructure in

place. I.T. has introduced new business paradigms and is increasingly playing a

significant role in improving the services in the banking industry

Rajesh Kumar Srivastava (India) 2007218 Customer’s perception on

usage of internet banking Internet banking is still at infancy stage in the world.

Many studies focused on usage of internet banking but many factors on non-

usage were overlooked. This research was carried out to validate the conceptual

model of internet banking. The causes were identified and researched through

correcting the causative factors so that internet banking can be used by more

people. This will help the banking operations to be more cost effective. The

research is focused on what are the customer’s perceptions about internet

banking and what are the drivers that drive consumers. How consumers have

accepted internet banking and how to improve the usage rate were the focus of

research area in this study. The study revealed that education, gender, income

play an important role in usage of internet banking.

216 Ratnasingam Pauline (2002), “The Importance of Technology Trust in Web Services Security”, Information Management & Computer Security, 10 (5): 255-260. 217 Rao, G. R. and Prathima, K. (2003), Internet Banking in India, Mondaq Business Briefing, April 11. 218 Rajesh Kumar Srivastava (India), Innovative Marketing, Volume 3, Issue 4, 200.

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Ramayah et al. (2002)219 suggest that users will eventually lose interest in

using Internet banking if they feel that it is not useful to use Internet banking even

though the system is rather easy to handle.

Redelinghuis, A. and Rensleigh, C., 2010220 South Africa has a well-

developed and established banking system which compares favourably with

those in many developed countries (e.g. USA), but also sets South Africa apart

from many other emerging market countries like Egypt and Brazil. Four dominant

banks, namely the Amalgamated Banks of South Africa (ABSA), Standard Bank,

Nedcor and First National Bank (FNB) influence the South African banking

environment. Internet banking has slowly been taking off in South Africa since

1996 as consumers are attracted to the convenience, safety and lower costs of

doing banking online. Trust is a significant component of Internet banking and

online services and products. It was established that the findings of this research

could assist financial institutions with fostering and building greater value adding

relationships with their customers.

Reeti Agarwal, Sanjay Rastogi and Ankit Mehrotra (2009)221

Determining factors affecting customer perception and attitude towards and

satisfaction with e-banking is an essential part of a bank's strategy formulation

process in an emerging economy like India. To gain this understanding in respect

of Indian customers, the study was conducted on respondents taken from the

northern part of India. The major findings depict that customers are influenced in

their usage of e-banking services by the kind of account they hold, their age and

profession, attach highest degree of usefulness to balance enquiry service

among e-banking services, consider security & trust most important in affecting

219 Ramayah T, Jantan Muhamad, Nasser Mohd, Noor Mohd (2002), Receptiveness of Internet Banking Malaysian Consumers, Universiti Sains Malaysia 220 Redelinghuis, A. & Rensleigh, C., 2010, ‘Customer perceptions on Internet banking information protection’, SA Journal of Information Management vol.12 issue .1 221 Reeti Agarwal, Sanjay Rastogi and Ankit Mehrotra, Customers’ perspectives regarding e-banking in an emerging economy journal of retailing and consumer services, vol.16,issue 5,, September 2009, Pages 340-351.

89

their satisfaction level and find slow transaction speed the most frequently faced

problem while using e-banking. Raechel Johns, Bruce Perrott, (2008)222 The purpose of this paper is to

show how technology has dramatically altered the way businesses operate in a

business-to-business (B2B) context and has had profound influences on

services, altering the way services are delivered. It is believed that the increased

use of self-service technologies (SSTs) impacts on B2B relationships. The paper

seeks to explore the impact of the use of internet banking on business

relationships.

Robert Hamilton, Paul Hewer, 2009223, Recent market research findings

and financial services consultants' reports have signalled that electronic

commerce will play an increasingly important role in consumers' future financial

lives. This paper discusses such evidence and seeks to contextualise the debate

on the future of banking through a discussion of consumers' financial behaviour,

the UK Government's position and an analysis of UK financial providers' current

marketing of Internet banking services to consumers.

Rao and Prathima (2003)224 provided a theoretical analysis of i-banking

in India, and found that as compared to the banks abroad, Indian banks offering

online services still have a long way to go. For online banking to reach a critical

mass, there has to be sufficient number of users and the sufficient infrastructure

in place.

Richard A.Feinbery(1986),225 had conducted four experiments and one

study to test the hypothesis that stimuli associated with spending can elicit

222 Raechel Johns, Bruce Perrott, (2008) "The impact of internet banking on business-customer relationships (are you being self-served?)", International Journal of Bank Marketing, Vol. 26 Iss: 7, pp.465 – 482 223 Robert Hamilton and Paul Hewer, Electronic commerce and the marketing of Internet banking in the UK Journal of Financial Services Marketing (2000) 5, 135–149. 224 Rao, G. R. and Prathima, K. (2003) ‘Internet Banking in India’, Mondaq Business Briefing, 11 April. 225 Richard A. Feinberg, credit card as spending Facilitation stimuli., A condition in Interpretation, Journal of consumer research, Vol.13, December 1989.

90

spending responses. The experiments and the study proved that credit card

stimuli directed spending such that the probability, speed or magnitude of

spending was enhanced in the presence of credit cards. The customer

protection bodies feel that the availability of credit cards particularly through

credit card has outstripped people’s ability to handle it. the money management

council, a charity which aims to help people handle their finance more effectively,

states that education is trailing far behind the development of consumer credit

and the transfer funds via the plastic card where as there has been an enormous

increase in it s usage.

Rupa Rege Nitsure,(2004)226, E-banking has the potential to transform

the banking business as it significantly lowers transaction and delivery costs.

This paper discusses some of the problems developing countries, which have a

low penetration of information and telecommunication technology, face in

realising the advantages of e-banking initiatives. Major concerns such as the

'digital divide' between the rich and poor, the different operational environments

for public and private sector banks, problems of security and authentication,

management and regulation, and inadequate financing of small and medium

scale enterprises (SMEs) are highlighted.

Dr. Saroj Upadhyay, Deblina Ganguly (2009)227 In today’s cut throat

competitive environment, the banks are making efforts to acquire new customers

and also trying to retain the existing ones. With increased number of banks,

products and services and with practically zero switching costs, customers are

easily switching banks. If they are not satisfied with the services offered by their

existing banks. Banks are finding it difficult to attract new customers, and more

importantly retain existing customers.

226 Rupa Rege Nitsure,(2004) “E banking Challenges and Opportunities “, Economic and Political Weekly, vol.38, no.51/52, December –January 2004, pp 5377-5381. pg-348-356. 227 Dr.Saroj upadhyay, Deblina Ganguly. Developing CRM Philosophy in banks. Professional bankers- The Icfai University press. Vol ix, issue 7 July 2009].

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K. Saikrishna (2009)228 This article discusses the innovations in

information technology being used in the Indian banking system. The advent of

technology in banking has widened the scope for entry in the new markets and

has helped the banks to develop innovative products, services and effective

delivery channels.

N Sakthivel & P Murugeshwari, 2009229 In the ever-changing scenario,

banks have evinced keen interest in delivering value-added products and

services with the help of rapidly evolving electronic and telecommunication

technologies. Internet banking is a web-based service that allows customers to

access their account information. In this system, customers are allowed to log on

to the bank's website with the help of identification issued by the bank and a

Personal Identification Number (PIN). Often, the range of products and services

offered by each bank on internet varies widely in terms of content. It is observed

that internet banking is offered as a value-added service by most of the banks, in

particular, by banks which do not have a large branch network. The present

study is an attempt to analyze the customers' attitude towards internet banking

services of ICICI Bank at Gobichettipalayam

Sayar and Wolfe (2007)230 compare the IB services in the UK and

Turkey. They reveal that Turkish banks offer a wider range of web services

compared to British banks, despite the fact that the UK has a more favorable

environment for IB in terms of its banking sector and technological infrastructure.

There is a conceptual difference regarding the security issues between British

and Turkish banks. Turkish banks use technology to avoid fraud, whereas the

British banks prefer more conventional methods.

228 K.Saikrishna Leveraging IT for better banking services by. Pg.44, professional banker, August 2009. 229 N Sakthivel & P Murugeshwari Customers' Attitude Towards Internet Banking : A Study with Reference to ICICI Bank, oct-dec 2009.volxxx no 3,vinimaya archives. 230 Sayar C. and Wolfe S. (2007), Internet banking market performance: Turkey versus the UK, International Journal of Bank Marketing v0l. 25,issue .3, pp. 122-141.August 2007.

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Salim Al-Hajri and Arthur Tatnall 2007231 To fully benefit from moving to

new national economies an up-to-date banking industry is important, but Omani

banks continue to conduct most of their banking transactions using traditional

methods. This paper reports on research to investigate inhibitors and enablers of

Internet banking in Oman, comparing this to the situation in Australia. Data was

collected from interviews with bank managers in each country, based on a

consideration of each bank manager’s perceptions of four factors that might

affect their decisions to adopt, or not adopt Internet technologies: Relative

Advantage, Organizational Performance, Customer/ Organizational Relationship

and Ease of Use. It is hoped that the results will be useful in seeing why Omani

banks have been slow to adopt Internet technology and to encourage them to

make the change. By utilizing e-banking, it is very convenient for consumers to

get the access to their banks and accounts to implement their banking

transactions. At its sophisticated sense, e-banking is named transactional online

banking due to the fact that it embeds in the provision of facilities, such as

accessing accounts, transfer of funds, and buying financial products or services

online (Sathye, 1999)232. In this paper, without the loss of generality, the term e-

banking and online banking (or even Internet banking) are interchangeably

utilized with the same meaning.

Sharma and kaur (2004)233 studied customer satisfaction in rural banks.

This study is concerned with Hoshiarpur district of Punjab. They used five-point

likert scale and found that the rural customers are not satisfied with the strategies

adopted by Gramin Bank.

231 Salim Al-Hajri* and Arthur Tatnall, (2007), Inhibitors and Enablers to Internet Banking in Oman - A Comparison with Banks in Australia. 232 Sathye, M. 1999. Adoption of Internet Banking by Australian Consumers: an empirical investigation International Journal of Bank Marketing, 17(7): 324 – 334. 233 Sharma R D and Kaur G(2004), “Strategy for customer satisfaction in Rural banks- A case study of Shivalik Kshetriya Gramin Bank, Hoshiarpur”, Prajnan, Vol.XXXIII, No.1(April-June), pp.23-45.

93

Shastri (2001)234 analyzed the effect and challenges of new technology

for banks. Technology has brought a sea change in the functioning of banks.

The earlier manual system of preparation of vouchers is slowly being automated

thereby saving a lot of time and effort. The use of automated teller machines

(ATMs) and introduction of IT are more than in the past.

Shanti (1984)235 made a pioneering attempt to examine the issues

relating to delivery of customer services in Indian banks as against the backdrop

of a sound conceptual framework. She has provided an empirical analysis of

bank employers’ job behavior and its relationship with bank services delivery.

She has found that lack of job motivation, lack of freedom at branch level, lack of

leadership qualities among bank managers, job security, etc., have resulted tin

poor quality customer services in Indian banks.

D. Sharma, 2009236, Until the advent of ATMs, people were unaware

and/or not directly affected by the technological revolutions happening in the

banking sector. ATMs became the major revelation for customers, since it offered

the facility to avoid long queues in front of the cashiers in banks. It also provided

them the flexibility of withdrawing money- anytime, anywhere.

Santos (2003)237 emphasizes that e-channels enable consumers to

compare offers online, and hence online consumers would expect the same or

even higher levels of service quality

Suganthi et al. (2001)238 conducted the review of Malaysian banking

sites and revealed that all domestic banks were having a web presence. Only 4

of the ten major banks had transactional sites. The remaining sites were at

234 Shastri R V (2001), “Technology for Banks in India-Challenges”, IBA Bulletin, Vol. XXIII, No.3 (March) pp.23-45]. 235 Shanti S (1984), Customer Services in Banks, Himalaya Publishing House, and Bombay. 236 Sharma, D., “India’s Leapfrogging Steps from Bricks-and-Mortar to Virtual Banking: Prospects and Perils,” The IUP Journal of Management Research, vol. 8, no. 3, pp. 45-61, 2009. 237 Santos J. (2003), E-Service quality: a model of virtual service quality dimension, Managing Ser vice Quality 13 (3), 233-246. 238 Suganthi, Balachander and Balachandran (2001), “Internet Banking Patronage: An Empirical Investigation of Malaysia,” Journal of Internet Banking and Commerce, Vol.6, No.1, May.

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informational level. There are various psychological and behavioral issues such

as trust, security of Internet transactions, reluctance to change and preference

for human interface which appear to impede the growth of Internet banking

Sharma R C and Singh J,(1993)239 analyzed the quality of customer

services produced by Standard Chartered Bank (SCB) and Punjab National

Bank(PBN). They concluded that the quality of customer services of PNB branch

is very poor in comparison to SCB branch. But the main limitation of study is that

it is related to two banks only.

Singh R and Malhotra A (1993)240, analyzed customer satisfaction in

banking services in Amritsar city. They concluded that public sector banks

should improve their services to attract new customers. Bank management

should prepare a list of existing and prospective customers and carryout detailed

studies on customer satisfaction in order to improve their services. Siva Rama Prasad.P. (2004)241 in his article has stated that “Commercial

banks generally install their ATM in urban area only. They refuse to install the

ATMs at rural and semi urban areas. This system has to be changed. The rural

population also gets the benefit of ATMs and other related new services. If

agriculturist borrowers are provided access to networked ATMs, their needs can

be met effectively. Hence, the Indian banking sector has to think about installing

or providing the advanced services into rural and semi urban areas.

Siriluck Rotchanakitunmnuai, Mark Speece,(2003)242, Many Thai

Banks are currently implementing internet banking. Banks that offer service via 239 Sharma R C and Singh J in “quality of customer services in banks, A comparative study of SCB and PNB”, Radha Publication, New Delhi 1993. 240 Singh R and Malhotra A (1993), in “Customer satisfaction in banking services: A study of Amritsar”, Radha Publication, New Delhi. 241.Siva Rama Prasad.P, Product Innovation. A suggestion from Reader, KCC vs ATM, Bank

Quest, April-June 2004,pg-30] . 242 Siriluck Rotchanakitunmnuai, Mark Speece,(2003) “Barriers to Internet banking adoption : a qualitative study among corporate customers in Thailand”, international journal of Bank marketing, Vol. 21 issue 6, July 2003.

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this channel claim that it reduces costs and makes them more competitive.

However, many corporate customers are not highly enthusiastic about internet

banking. An understanding of why corporate customers do not accept internet

banking can assists banks to implement this self-service technology more

efficiently. Those already using Internet banking seem to have more confidence

that the system is reliable, whereas non-users are much more service conscious,

and do not trust financial transactions made via Internet channels. Non-Internet

banking users tend to have more negative management attitudes toward

adoption and are more likely to claim lack of resources. Legal support is also a

major barrier to Internet banking adoption for corporate customers

Stafford, 2004243 Recent research also suggests that increased use of

online banking and bill paying can actually decrease the occurrence of identity

theft by taking personal information outside the mailbox and eliminating a paper

trail.

Sourabh Sharma & K S Thakur, 2010244 This paper is a survey of public

and private sector bank customers' responses toward computerization of banking

services. The objective of this paper is to measure the customers' awareness,

perception, and the level of satisfaction with regard to Virtual Banking Services

offered by the Indian public and private sector banks in the city of Jaipur. This

survey declares that in comparison, private sector bank customers are satisfied

with regard to ATM, I-Banking and IVRS services. However, the study also

reveals that public sector banks are preparing to take on private sector banks in

this regard.

Serkan Akinci, Safak Aksoy, Eda Atilgan,(2004)245 “This descriptive

study was conducted to develop an understanding of consumers' attitudes and 243 Stafford, M.R. (2004) ‘Identity theft: laws, crimes, and victims’, Journal of Consumer Affairs, Vol. 38, No. 2, pp.201–203. 244 Sourabh Sharma & K S Thakur, A Comparative Study of Customer Satisfaction from Virtual Banking in Public and Private Sector Banks April-june 2010, vol.xxxi, no 1, Vinimaya archives. 245 Serkan Akinci, Safak Aksoy, Eda Atilgan, “Adoption of internet banking among sophisticated consumer segments in an advanced developing country”, International journal of bank marketing, vol. 22, issue 3, 2004.

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adoption of Internet banking among sophisticated consumers. The analyses

revealed significant differences between the demographic profiles and attitudes

of users and non-users. IB users were further investigated, and three sub-

segments were defined according to a set of bank se lection criteria. Finally,

based on the similarities between various Web-based bank services, four

homogeneous categories of services were defined.

M. Sadiq Sohail, Nassar M Shaikh,(2008)246, the purpose of this paper is

to measure the quality of service from customers perspective. With an enormous

growth in internet banking, this paper discusses how banks can be competitive

by providing quality services. Based on the review of literature, the paper uses

empirical research to analyze service quality of internet banking services

provided by banks in Saudi Arabia.

Sultan Singh, Ms. Komal,2009247 This paper presents the impact of ATM

on customer satisfaction. This is a comparative study of three major banks i.e.

State Bank of India, ICICI bank and HDFC bank. This paper has been divided

into two sections. First section presents the introduction of ATM, brief history of

three Banks compiled through the literature available in the field. It also includes

the review of the various services provided by the three banks under study.

Second section presents the result obtained on the basis of the data collected for

the three banks.

Sylvie Laforet, Xiaoyan Li, (2005)248 The aim of this study is to

investigate the market status for online/mobile banking in China. With the recent

and forecasted high growth of Chinese electronic banking, it has the potential to

develop into a world-scale internet economy and requires examination. The issue

of security was found to be the most important factor that motivated Chinese

246 M.Sadiq Sohail, Nassar M Shaikh, “ Internet banking and quality of service : perspectives from a developing nation in the middle east,”. Online information review, vol.32, issue.1,2008. 247 Sultan Singh, Ms. Komal, Impact of Atm On Customer Satisfaction (A Comparative Study of SBI, ICICI & HDFC bank) Business Intelligence Journal - August, 2009 Vol. 2 No. 2. 248 Sylvie Laforet, Xiaoyan Li, (2005) "Consumers’ attitudes towards online and mobile banking in China", International Journal of Bank Marketing, Vol. 23 Iss: 5, pp.362 – 380.

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consumer adoption of online banking. Main barriers to online banking were the

perception of risks, computer and technological skills and Chinese traditional

cash-carry banking culture. The barriers to mobile banking adoption were lack of

awareness and understanding of the benefits provided by mobile banking.

Dr. D. Subbarao, 2009249 The volume of transactions through National

Electronic Clearing Service [NECS] introduced in September 2008 is also

increasing. As on March 31, 2009 the NFS [The National Financial Switch]

network covered a total of 38714 automated teller machines [ATMs] of 34 banks.

On an average, a daily volume of 890180 transactions [of which 256156

transactions pertained to balance enquiry and 634024 pertained to cash

withdrawal] were routed through the NFS in March 2009 as against a daily

volume of 267598 transactions in March 2008. since April 1, 2009 customers

have the facility of using ATM of any bank for cash withdrawal free of cost

thereby making ATMs national payment outlets

Sohail, M..S. and Shaikh N. (2008)250.With an enormous growth in

Internet banking, this paper discusses how banks can be competitive by

providing quality services. This paper measures the quality of service from

customers’ perspective. Results based on a factor analysis identify three factors

that influence users’ evaluation of service quality of Internet banking services.

These factors are labeled as ‘efficiency and security’, ‘fulfillment’ and

‘responsiveness’.

Shastri, R.V.(2000)251, studied the emergence of IT in banking sector. He

highlighted some challenges faced by banks regarding IT implementation. This

paper also highlighted future outlook of IT oriented banks.

249 Dr.D.Subbarao, Governor. RBI monthly bulletin, Monetary policy statement 2009-10. May 2009, Pg 723. 250 Sohail, M..S. and Shaikh N. (2008). ‘Internet Banking and quality of service: Perspectives from a developing nation in the Middle East’ Online Information Review, Vol. 32, No. 1. 251 Shastri R V (2001), “Technology for Banks in India-Challenges”, IBA Bulletin, Vol. XXIII, No.3 (March) pp.23-45]

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Stuart J Barnes and Brian Corbitt (2003)252 The internet and the mobile

phone - two technological advancements that have profoundly affected human

behaviour in the last decade - have started to converge. The products of this

association are mobile data services. Using a variety of platforms, services are

being created to enable mobile devices to perform many activities of the

traditional internet, albeit in a reduced format for mobile devices. One area of

activity is mobile (m-) banking (one of the first areas of commercial transaction on

the wireless internet). Banking is an area that has extended in many different

ways in recent years, including telephone and online banking. M-banking

provides yet another channel for banking services, and in emerging markets,

provides some possibility for becoming a primary channel. This paper examines

the strategic implications of m-banking and the strategic positioning of m-banking

services in different markets. The paper concludes with a discussion of the future

for m-banking services.

Sinkey 1998253 The use of internet technology has a direct relationship

with the profitability of the bank. The banks which invest in e-banking tend to

raise their profit margins by reducing costs and increasing the not-interest

incomes which in turn will increase the return on assets and return on equity.-

Syed Shah Alam, Ali Khatibi, A. Solucis Santhapparaj, Mohammad

Talha, (2007)254 The goal of this paper is to examine the development and

prospects of internet banking in Bangladesh, which found that lack of

infrastructure is the major issues for internet banking. . Compared to private and

foreign banks, nationalized commercial banks are far behind implementing

internet banking system in banking transactions.. This paper outlines the key

internet banking trends and events in Bangladesh. Further, the research focuses 252 Stuart J. Barnes and Brian Corbitt Mobile banking: concept and potential, International journal of Mobile communications. Vol.1, no.3/2003, pg 273-288. 253 Sinkey 1998, professional bankers– the Icfai University press. September 2009. Vol. ix, issue 9. 254 Syed Shah Alam, Ali Khatibi, A. Solucis Santhapparaj, Mohammad Talha, (2007) "Development and prospects of internet banking in Bangladesh", Competitiveness Review: An International Business Journal incorporating Journal of Global Competitiveness, Vol. 17 Iss: 1/2, pp.56 – 66

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on the issues that are related to internet banking and provides strategy and

directions for the development of internet banking in Bangladesh. Sciglimpaglia, D.Ely, (2002),255 many financial institutions are actively

developing new electronic banking products for their retail customers. These

efforts can succeed only if their managers focus the promotion of the new

services toward those customers who are most likely to find them attractive. The

analysis of a 6-branch financial institution presented in this study suggests that

instructions are vulnerable to loss of customers to rivals with extensive online

services. The likelihood of current customers being tempted to do business

online with another institution was shown to increase with the level of customer

transaction use on the internet. Current customer account relationships are

found to be predictive of electronic services use in general. And, interest in the

use of specific online services is related to differing customer relationships in

addition to ordinary demographic and balance information. These findings can

be useful in identifying potential users from a customer relationship management

perspective.

Steve Worthington (2003)256 the article is based on both secondary and

primary research into the use of plastic payment cards in China. The secondary

research offers an understanding of the history and current situation of payment

cards in China. Whilst the primary research provides insights into the uniqueness

of the Chinese market from the perspective of the cardholders, card issuers and

merchant acceptors. As barriers to entry into China remain high for foreign

banks, particularly if they wish to pursue a branch centric approach to

distribution, the article also draws attention to the advantages of a card centric

approach to market entry. Other Asia-Pacific markets such as Australia, Hong

255 D. Sciglimpaglia, D. Ely, "Internet Banking: A Customer-Centric Perspective," HICSS, vol. 7, pp.186, 35th Annual Hawaii International Conference on System Sciences (HICSS'02)-Volume 7, 2002 256 Steve Worthington, (2003) "The Chinese payment card market: an exploratory study", International Journal of Bank Marketing, Vol. 21 Iss: 6/7, pp.324 – 334.

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Kong ,Korea and Japan have already embraced the plastic card as a means of

payment at the point-of –sale.

Shetty, V.P. (2000),257 technology is dramatically altering the ways in

which financial services are delivered to consumers and continue to do so in

future too. Electronic banking or the use of computers and electronic technology

as a substitute for traditional paper based transactions, is here to stay.

Sven C. Berger, (2009)258 "This article aims to explain the adoption of

self-service technology with pro-active sales applications (automated teller

machines or kiosk systems) in brick-and-mortar outlets with special respect to

personality traits, relationship characteristics and previous online banking usage.

The study validates the framework and identifies relevant moderating effects.

Strauss and Corbin, 1990.259 On searching the literature on internet

banking, we found several motivations for a fresh investigation of the key factors

influencing banking consumer adoption of the internet channel. First, existing

studies are largely based on surveys that, as positivist approaches, are unable to

uncover the deeper issues identified by interpretive methods, or the real issues

that emerge from grounding the research in data

Thulani, D, Tofara, C & Langton, R.2009,260 IB refers to systems that

enable bank customers to get access to their accounts and general information

on bank products and services through the use of bank’s website, without the

intervention or inconvenience of sending letters, faxes, original signatures and

telephone confirmations

257 Shetty, V.P. (2000), “E-Banking”, IBA Bulletin, Vol. XXI, No.3 (March Special Issue), pp. 31-34. 258 Sven C. Berger, (2009) "Self-service technology for sales purposes in branch banking: The impact of personality and relationship on customer adoption", International Journal of Bank Marketing, Vol. 27 Iss: 7, pp.488 – 505. 259 Strauss, A. and J. Corbin, Basics of Qualitative Research: Grounded Theory, Procedures and Techniques. Newbury Park, Ca: Sage Publications, 1990. 260 Thulani, D, Tofara, C & Langton, R., “Adoption and Use of Internet Banking in Zimbabwe: An Exploratory Study,” Journal of Internet Banking and Commerce, vol. 14, no. 1. 2009.

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Tan and Teo (2000)261 suggest that banks that fail to respond to Internet

banking are likely to lose customers and that the cost of offering Internet banking

services is often less than the cost of keeping branch banking.

Thamaraiselvan Natarajan, Senthil Arasu Balasubramanian, Sivagnanasundaram Manickavasagam (2010)262 In the retail banking context,

convergence of technologies has given birth to different channels of distribution

like Automatic Teller machines (ATM), internet banking, and mobile banking. This

enables the customer to avail the banking services at any time and any where.

These technological interfaces are known as self service technologies (SSTs).

Customers availing banking services through these SSTs get more benefits in

terms of time, cost and energy. Despite these benefits the customer trial,

adoption and repeat usage of SSTs vary among banking customers. Although

the kinds of service one can avail from these SST are similar, the patronage

among the SSTs differs. The SST channel choice could be attributed to various

factors viz., Nature of service to be availed or purpose, Perceived risk,

Requirements and Benefits. When it comes to predicting customer priority among

alternatives, Analytical hierarchy process (AHP) has been proved as an effective

technique. This paper explores the factors influencing customer choice of SSTs

by employing AHP technique.

Terry M.Wickre(1980)263, in his study to increase the customers

awareness about visa card and then master charge card issued by the bank

conducted a pre and post study before their various advertising strategies found

that by advertising customers were becoming more aware of credit card and how

it worked . Advertising had increasing the consumer’s ability to discriminate one

bank card from another and reduces confusion in the card holder’s minds. It also 261 Tan, M. and Teo, T. 2000. “Factors Influencing the Adoption of Internet Banking.” Journal of the Association for information systems, vol 1, iss.5, pp 1-42. 262 Thamaraiselvan Natarajan, Senthil Arasu Balasubramanian, Sivagnanasundaram Manickavasagam, Customer’s Choice amongst Self Service Technology (SST) Channels in Retail Banking: A Study Using Analytical Hierarchy Process (AHP), Journal of Internet Banking and Commerce, August 2010, vol. 15, no.2. 263 Terry M. Wickre, Product differentiation in Bank Card marketing, Bank Marketing, 1980 Pg 14-17.

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provides bankcard customers with convenient and beneficial plastic cards and

EFT services

Thornton and White (2001)264 compared several electronic distribution

channels available for banks in the USA and concluded that customer orientation

– towards convenience, service, technology, change, knowledge about

computing and the internet – affected the usage of different channels. Tooraj Sadeghi, Kambiz Heidazadeh Hanzaee,(2010)265, This paper

seeks to investigate the key factors underlying customer satisfaction with

electronic banking services in an Islamic country, Iran. The paper provides a

model of seven factors on the following dimensions: convenience, accessibility,

accuracy, security, usefulness, bank image, and web site design. Some of these

factors illustrate a significant statistical difference between males and females.

Tommi Laukkanen, (2007)266 The paper provides enhanced information

for business managers about both positive and negative customer value

perceptions in internet and mobile banking. By understanding how and what kind

of value different service channels provide for customers service providers are

better enabled to create actions to enhance internet and mobile banking

adoption. The contribution of the paper lies in achieving a more profound

understanding on consumer value perceptions to internet and mobile banking. It

expands the literature on electronic and mobile commerce and on electronic

banking especially

Tommi Laukkanen, (2006)267 The financial services sector has recently

undergone changes unprecedented in its history. Understanding customers'

264 Thornton, J. and White, L. (2001) ‘Customer orientations and usage of financial distribution channels’, The Journal of Service Marketing, Vol. 15, No. 3, pp.168–185. 265 Tooraj Sadeghi, Kambiz Heidazadeh Hanzaee, “Customer satisfaction factors(CSFs) with online banking services in an Islamic country:I.R.Iran”, Journal of Islamic Marketing, 2010, Vol 1, issue 3. 266 Tommi Laukkanen, (2007) "Internet vs mobile banking: comparing customer value perceptions", Business Process Management Journal, Vol. 13 Iss: 6, pp.788 – 797. 267 Tommi Laukkanen, Customer-perceived value of e-financial services: a means-end approach, International journal of Elecronic Finance, vol.1, no.1/2006, pg 5-17.

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needs and values has become more important for financial institutions than ever

before, not only due to the changing environment but also because of changed

customer behaviour. This study explores the customer-perceived value of two e-

financial services, namely electronic fund transfer service and internet brokerage

service. This is done by using a means-end approach. It is a qualitative in-depth

interviewing method that is used for explaining how product or service attributes

facilitate consumers' achievement of desired end-states of being. The results

indicate how different electronic services create value for customers in service

consumption. The findings provide banking executives with a better

understanding of what kind of value customers perceive in the consumption of

different e-financial services. The results indicate similarities and differences in

the customer-perceived value between the services explored.

Tommi Laukkanen, (2007)268 "The purpose of the study is to increase the

understanding of the diverse retail channel preferences of online bank customers

by examining their channel attribute preferences in electronic bill paying. Two

different groups of online customers were examined: those who pay their bills

over the internet and those who, in addition, have experience of using a mobile

phone for this service. The study provides new insights for decision makers in the

electronic retail sector and especially in banking.

Tsung Lin Ching , Lai Jung-Yu, 2008269 Due to the burgeoning

development of electronic commerce (e-commerce), the broader applications of

emerging service-Internet baking (e-banking) services have been introduced and

provided by financial holding companies or banks at an accelerating rate in

recent years since they can provide efficient, reliable, securable, and convenient

financial services, such as online payment, deposit/loan, trading, and

clearing/settlement, via electronic channels (e-channels, e.g., Internet and

phone) for customers. E-banking services not only can create new competitive

268 Tommi Laukkanen, (2007) "Customer preferred channel attributes in multi-channel electronic banking", International Journal of Retail & Distribution Management, Vol. 35 Iss: 5, pp.393 – 4. 269 Tsung, Lin Ching and Lai, Jung-Yu, "What factors drive corporate customer satisfaction with e-banking services" (2008). PACIS 2008 Proceedings. Paper 84.

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advantages, perhaps, but also can improve their relationships with customers for

banks. Obviously, e-banking can offer better services required by corporations

and individuals, it could be a strategic niche no matter for banks or their

customers. Conceivably, how to implement e-banking successfully is becoming a

critical management issue. Unfortunately, research pays scarce attentions on

what factors drive success of e-banking, particularly from corporate customers'

perspective. For the reason, this paper attempts to explore what factors affect

corporate customer satisfaction with e-banking (CCSEB) which is one surrogate

variable of success of e-banking services. Based on a survey of 178 respondents

collected from Taiwan companies, the results support that environmental,

organizational, and globalization factors will affect customer satisfaction with e-

banking significantly. Thomas Ogoro Ombati Stephen Onserio Nyamwange, 2010270

Importance and Performance of Various Factors Considered In the Electronic

Banking Services. Technology-based self-service has greatly changed the way

that service firms and consumers interact, and are raising a host of research and

practice issues relating to the delivery of e-service which has become

increasingly important not only in determining the success or failure of electronic

commerce, but also in providing consumers with a superior experience with

respect to the interactive flow of information. The purpose of this research paper

was to establish the relationship between technology and service quality in the

banking industry in Kenya. The research was carried through across-sectional

survey design which questioned respondents on e-banking services. The

population of study mainly constituted of customers of banks within the Central

Business District (CBD), Nairobi. The respondents of the study were customers

of banks using e-banking services (internet banking, mobile banking and ATM).

The sample in this study consisted of 120 respondents who are users of the e-

banking services. The data collected was analyzed by use of frequency,

percentage, means and correlation analysis. The findings revealed that, secure 270 Thomas Ogoro Ombati Stephen Onserio Nyamwange, Technology and service quality in the banking industry, African Journal of Business & Management (AJBUMA) Vol. 1 (2010), 16 pages.

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services as the most important dimension, followed by convenient location of

ATM, efficiency (not need to wait), ability to set up accounts so that the customer

can perform transactions immediately, accuracy of records, user friendly, ease of

use, complaint satisfaction, accurate transactions and operation in 24 hours.

Unnithan and Swatman (2001)271 studied the drivers for change in the

evolution of the banking sector, and the move towards electronic banking by

focusing on two economies, Australia and India. The study found that Australia is

a country with internet-ready infrastructure as far as telecommunication, secure

protocols, PC penetration and consumers’ literacy are concerned. India, by

comparison, is overwhelmed by weak infrastructure, low PC penetration,

developing security protocols and consumer reluctance in rural sector. Although

many major banks have started offering i-banking services, the slow pace will

continue until the critical mass is achieved for PC, internet connections and

telephones. However, the upsurge of IT professionals with growing demands is

pressuring the government and bureaucracy in the country to support and

develop new initiatives for a faster spread of i-banking.

Uppal R.K.(2006),272 with stratified sampling of 500 bank customers,

explained the impact of computerization on the satisfaction of customers of all

bank groups and concluded that customer services are quite better in fully

computerized banks and further in e-banks in partial and non-computerized

banks. The study is only concerned with the urban sector of Punjab.

Uppal, R.K. & Kaur, R. (2007)273 studied the impact of Information

Technology on various parameters of bank performance and concluded that

Indian banking industry is fastly moving towards IT. The future of e-channels is

very bright. 271 Unnithan, C.R. and Swatman, P. (2001) E-banking Adaptation and Dot.Com Viability: A Comparison of Australian and Indian Experiences in the Banking Sector, Working Paper, School of Management Information Systems, Deakin University, No. 14. 272 Uppal R K (2006), Indian Banking and information technology, new century Publications, New Delhi. 273 Uppal R.K. & Kaur, R. (2007), “Indian Banking Moving Towards IT”, Journal of Commerce and Trade, Vol. 2, No. 1 (April), pp. 26-32.

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Uppal, R.K.; Chawla, Rosy, (2009)274, This study highlights customer

perceptions regarding e-banking services. The study investigates the

perceptions of the bank customers regarding necessity of e-banking services,

quality of e-banking services, bank frauds, future of e-banking, preference of

bank customers regarding banks, comparative study of banking services in

various bank groups, preferences regarding use of e-channels and problems

faced by e-bank customers. The major finding of this study is that customers of

all bank groups are interested in e-banking services, but at the same time are

facing problems like, inadequate knowledge, poor network, lack of infrastructure,

unsuitable location, misuse of ATM cards and difficulty to open an account.

R.K.Uppal (2008)275 In the post-LPG (Liberalization, Privatization and

Globalization) era and Information Technology (IT) era, transformation in Indian

banks is taking place with different parameters and the contours of banking

services are dynamically altering the face of banking, as banks are stepping

towards e-banking from traditional banking. On the basis of five-point likert-type

scale, this paper empirically analyzes the quality of e-banking services in the

changing environment. With different statistical tools such as weighted average

method and ranking, the paper concludes that most of the customers of e-banks

are satisfied with the different e-channels and their services, but the lack of

awareness is a major obstacle in the spread of e-banking services. The paper

also suggests some measures to make e-banking services more effective in the

future. Banks have been forced to strike a balance between speed and security.

The enormous amount of data that are to be fed to the system call for robust and

very modern technologies and qualified professionals to man the system. An

attempt has been made in this paper to discuss the evolution of new generation

banking as the major trend in post liberation era of Indian banking and the

274 Uppal,R.K.;Chawla,Rosy,(2009), “E-Delivery Channel-based Banking Services: An Empirical Study”, ICFAI Journal of Management Research, July 2009, Vol.8,Issue 7, P 7-33. 275 R.K.Uppal (2008), Customer Perception of E-Banking Services of Indian Banks: Some Survey Evidence, The IUP Journal of Bank Management, vol.vii, issue I, February, 2008, pg.63-78 R K Uppal & Rimpi Kaur Indian Banking Moving Towards a Better Tomorrow volxxix. no 3 oct-dec 2008, Vinimaya archives.

107

relevance of traditional banks. The paper also attempts to bring out the issues

and challenges underlying the functioning of demand generation banks in the

contemporary banking scenario looking at the trends and developments initiated

R K Uppal & Rimpi Kaur, 2008276 IT has transformed the business

environment, the world over. It has a major impact in helping banking service and

their customers with the introduction of a number of e-channels like ATMs, EFTs,

Credit Cards, Internet-banking, Mobile-banking, Tele-banking, etc. It has bridged

the gaps in terms of the reach and coverage of systems, and enabled better

management of banking business. The present paper attempts to analyze the

impact of IT on the profitability of banking industry in India. The present paper

contains analysis of correlation and regression between profitability and different

e-channels to study the impact of IT on banks' profitability. It is concluded from

the data that IT has nominal impact on profitability of old private sector banks but

foreign banks show high impact, whereas public sector banks and new private

sector banks have average impact on their profitability. Overall, IT has very low

impact on profitability of Indian private sector banks as compared to public sector

banks and foreign banks proving 20 per cent more impact. The paper concludes

with some recommendations to improve IT related business in Indian banking

industry.

Uppal R.K. (2009)277 studied the customer service in Indian commercial

banks based on time factor. He inferred that there is a significant difference

among three sector of banks with regard to the time customers have to spent to

transact a business the e-banks are more efficient with regard to time factor.

R.K.Uppal (2010)278 In present day banking, total automation of banking

operations is an imperative need for all banks to attract more customers, provide

276 R K Uppal & Rimpi Kaur Indian Banking Moving Towards a Better Tomorrow volxxix. no 3 oct-dec 2008, Vinimaya archives 277 Uppal R.K., “Customer service in Indian commercial banks- an Empirical study”, Vol.1(1) Jan-June 2009, pp-127-141, Asia Pacific Journal of Social Science. 278 R.K.Uppal, “Emerging issues and strategies to enhance M-banking services, African Journal of Marketing Management, Vol.2 (2), pp 29-36, February 2010

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efficient services, and survive in the emerging new competition, apart from the

profit motive which is the primary objective of the business. In order to achieve

these goals of business, various channels have been developed through

technology. ‘Mobile Banking’ is one of the best alternative channels available to

customers for quick, correct and efficient service at anytime and anywhere. The

present paper is devoted to explore the extent of Mobile banking in Indian

banking industry where cell phone users are increasing at unexpected rate. Time

period taken for study is 2000 - 2001 to 2006 - 2007 because this period is the

eye-witness of infant condition of IT and during the same period IT became

mature. Simple statistical tools like average, standard deviation, co-efficient of

variation are used to calculate the efficiency of various bank groups providing the

service of M-banking. On the basis of analysis, the paper concludes that the

private sector banks are on the top in providing the M-banking services to their

customers and have high profitability as compared to other bank groups under

study except foreign banks. The paper also highlights the benefits of M-banking

to customers as well as to bankers and suggests some strategies with their

possible solutions like to spread awareness regarding M-banking and to increase

its area and scope to enhance M-banking services in India, particularly in rural

and semi-urban areas.

Dr. R.K. Uppal (2011)279 The present paper exhibits the growth of

information technology in various bank groups. In our country in 2009, 79 percent

branches are under core banking. The maximum technology is taking place in

new generation private sector banks as well as foreign banks. 43.5 percent are

off site ATMs in our country. Public sector banks have more on site ATMs where

as new private sector banks and foreign banks have more off site ATMs. The

paper also suggests some strategies to enhance e delivery channels in banks

particularly in public sector banks.

279 Dr. R.K.Uppal, E-DELIVERY CHANNELS IN BANKS-A FRESH OUTLOOK International Refereed Research Journal Vol.– II, Issue1,January 2011, Pg 181-191

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Unnithan and Swatman (2001)280 studied the drivers for change in the

evolution of the banking sector, and the move towards electronic banking by

focusing on two economies, Australia and India. The study found that Australia is

a country with internet-ready infrastructure as far as telecommunication, secure

protocols, PC penetration and consumers’ literacy are concerned. India, by

comparison, is overwhelmed by weak infrastructure, low PC penetration,

developing security protocols and consumer reluctance in rural sector. Although

many major banks have started offering i-banking services, the slow pace will

continue until the critical mass is achieved for PC, internet connections and

telephones. However, the upsurge of IT professionals with growing demands is

pressuring the government and bureaucracy in the country to support and

develop new initiatives for a faster spread of i-banking.

Vijayan and Shanmugam (2003)281 study the service quality of IB in

Malaysia and find that two of the top five Malaysian banks have a four star rating

out of a maximum five star rating. The remaining three top banks have a three

star rating based on a 40-item evaluation instrument.

Vijaya Ratnam N and Suguna Kumari.A 2005282, have stated that the

bankers have to evolve new approaches, new and innovative products to keep

pace with the ever changing and growing expectations of the customers. Banks

must upgrade their technology to achieve breakthrough in this area. Technology

upgradation is an important aspect to speedup the servicing in all spheres of

banking activity and to fulfill the customers need. Un precedence changes

resulting from internet revolution have built the confidence on the Indian banks

and they are now in a position to face the competition even from the international

banks. It is true that electronic banking has reduced operational costs

280 Unnithan, C.R. and Swatman, P. (2001) E-banking Adaptation and Dot.Com Viability: A Comparison of Australian and Indian Experiences in the Banking Sector, Working Paper, School of Management Information Systems, Deakin University, No. 14. 281 Vijayan, P., Shanmugam, B. (2003), Service quality evaluation of IB in Malaysia, Journal of IB and Commerce 8 (1). 282 Vijaya Ratnam N and Suguna Kumari “customer service in commercial banks in the new era” Professional banker-The Icfai university press. December 2005., pg-43.

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substantially by cutting unnecessary duplication of work and also enables to

extend quality services to the customers

Verghese and Ganesh (2003)283 analyzed customer services in PSBs

and old private sector banks based on the responses of 776 customers in Kerala.

They found that there is no difference between the two types of the bank

branches.

Vinh Sum Chau, Liqing W.L.C. Ngai, (2010)284 “This paper aims to

investigate the perceptions, attitudes and behaviour of the youth market for

internet banking services (IBS). The authors find that young people (age 16-29)

have more positive attitudes and behavioural intentions towards using IBS than

other user-groups. It has also confirmed that there is a positive impact of IBS

quality on satisfaction and loyalty.

Vichudu Nui Polatoglu, Serap Ekin (2001)285 An exploratory study of

consumer acceptance of Internet banking (IB) services is conducted in a Turkish

bank. Examines both consumer-related factors that may affect the adoption of an

innovation or a product (such as complexity, perceived risk, and relative

advantage) as well as organizational factors such as marketing effort. The results

suggest that IB not only reduces operational cost to the bank, but also leads to

higher levels of customer satisfaction and retention. Accordingly, it is argued that

IB is strategically important to the banking sector in an emerging economy, such

as in Turkey

Wao-Ching Poon,2007286 The purpose of this paper is to explore the

determinants of users’ adoption momentum of e-banking in Malaysia. Results

283 Verghese M E and Ganesh C (2003), “Customer Services in Bank: An Empirical Study”, Vinimaya, Vol.XXXIV, No.2 (July-September), pp.15-26. 284 Vinh Sum Chau, Liqing W.L.C. Ngai, (2010) "The youth market for internet banking services: perceptions, attitude and behaviour", Journal of Services Marketing, Vol. 24 Iss: 1, pp.42 – 60 285 Vichuda Nui Polatoglu, Serap Ekin, (2001) "An empirical investigation of the Turkish consumers’ acceptance of Internet banking services", International Journal of Bank Marketing, Vol. 19 Iss: 4, pp.156 – 165. 286 Wao-Ching Poon,”Users’ adoption of e-banking services: the Malaysian perspective”, Journal of Business & Industrial Marketing, 2007, Vol.23, Issue 1,PP 59-69.

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indicate that all elements for ten identified factors are significant with respect to

the users’ adoption of e-banking services. Privacy and security are the major

sources of satisfaction. Besides, the speed, product features availability, and

reasonable service fees and charges, as well as the bank’s operations

management factor are critical to the success of the e-banks

Walfried M. Lassar, Chris Manolis, Sharon S. Lassar, (2005)287. This

paper explores the relationships between consumer innovativeness, self-efficacy

on the internet, internet attitudes and online banking adoption, while controlling

for personal characteristics. It distinguishes between innate consumer

innovativeness, a generalized personality trait, and internet-domain-specific or

actualized innovativeness in order to explore consumer characteristics' impact

on adoption. While results confirm the positive relationship between internet

related innovativeness and online banking they also surprisingly show that

general innovativeness is negatively related to online banking. Williamson, Kirsty and Lichtenstein, Sharman, 2006.288 This paper

provides an understanding of how and why specific factors affect the consumer

decision whether or not to bank on the internet, in the Australian context. A

theoretical framework is provided that conceptualized and links consumer-

oriented issues influencing adoption of internet banking. The findings suggest

that convenience is the main motivator for consumers to bank on the internet,

while there is a range of other influential factors that may be modulated by banks.

The paper suggests that banks will be better able to manage consumer

experiences with moving to internet banking if they understand that such

experiences involve a process of adjustment and learning over time, and not

merely the adoption of new technology. Specifically, the findings suggest that

convenience is the main motivator for consumers to bank on the internet, while

287 Walfried M. Lassar, Chris Manolis, Sharon S. Lassar, (2005) "The relationship between consumer innovativeness, personal characteristics, and online banking adoption", International Journal of Bank Marketing, Vol. 23 Iss: 2, pp.176 – 199. 288 Williamson, Kirsty and Lichtenstein, Sharman, Understanding consumer adoption of internet banking: An interpretive study in the Australian Banking context, Journal of Electronic Commerce Research, January 2006].

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there is a range of other influential factors that may be modulated by banks. The

findings also highlight increasing risk acceptance by consumers in regard to

internet-based services and the growing importance of offering deep levels of

consumer support for such services. Gender differences are also highlighted.

Wendy W.N. Wan, Chung-Leung Luk, Cheris W.C. Chow, (2005)289

The study sought to investigate factors that influenced Hong Kong bank

customers’ adoption of four major banking channels, i.e. branch banking, ATM,

telephone banking, and internet banking. Specifically, it aimed to focus on the

influences of demographic variables and psychological beliefs about the positive

attributes possessed by the channels. Overall, ATM was the most frequently

adopted channel, followed by internet banking and branch banking, and

telephone banking was the least frequently adopted channel. Psychological

beliefs about the extent to which a channel possessed certain positive attributes

were more predictive of adoptions of ATM and internet banking than adoptions of

branch banking and telephone banking. Demographic backgrounds were strongly

associated with adoption of all banking channels except ATM. A major research

implication is that the theory of reasoned action is less applicable when a

behavior is habitual, such as the adoptions of branch banking and telephone

banking.

Wise and Ali (2009)290 argued that many banks in Bangladesh want to

invest in ATMs to reduce branch cost since customers prefer to use them instead

of a branch to transact business. The financial impact of ATMs is a marginal

increase in fee income substantially offset by the cost of significant increases in

the number of customer transactions. The value proposition however, is a

significant increase in the intangible item customer satisfaction. The increase

translates into improved customer loyalty that in result in higher customer

289 Wendy W.N. Wan, Chung-Leung Luk, Cheris W.C. Chow, (2005) "Customers' adoption of banking channels in Hong Kong", International Journal of Bank Marketing, Vol. 23 Iss: 3, pp.255 – 272. 290 Wise, Victoria and Ali, Muhammad Mahboob, 2009. "Customer Relationship Management in Banks with special reference to Bangladesh", Southwest Review of International Business Research, Vol.19, No.1, March 2009.

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retention and growing organization value. Internet banking is a lower-cost

delivery channel and a way to increase sales. Internet banking services lies in

the increased retention of highly valued customer segments. This paper

describes a case study about the major issues and challenges in the

development of the electronic banking (e-banking) industry of a relatively

underdeveloped nation. This research shows that even in many less developed

nations, the application of e-banking can help their local banks reduce operating

costs and provide a better and fast service to their customers. The research

objectives are to investigate the current trends and developments in e-banking

and provide managerial insights for the banking industry in those

underdeveloped nations. The collected data are examined through statistical

analysis tools. Managerial implications are discussed with suggestions for future

research.

Wu et al. (2004)291 evaluate the web site usability of IB in Taiwan. Their

study indicates that there is a gap between the user expectation and actual

usability of Web sites. Moreover, the results show that old banks are more

experienced than new banks and private banks are more competitive than

government-owned banks to survive in a competing market.

Yang et al. (2004)292 argue that customers assess the online product

portfolio as they prefer firms which offer a substantial selection of e-products to

satisfy their diverse needs.p.1149-1174.

Yap, Kenneth. B, Wong, David H, Loh, Claire, Bak, Randall, (2010)293

This study that examines how traditional service quality and a bank’s size and

reputation influences trust in e-banking. The purpose of this paper is to examine

291 Wu C.-S., Cheng F.-F., Lin H.-H. (2004), Web site Usability Evaluation of IB in Taiwan, Journal of IB and Commerce 9 (1). 292 Yang, Z., Jun, M. and Peterson, R. T. (2004), “Measuring customer perceived online service quality: scale development and managerial implications”, International Journal of Operations and Production Management, Vol. 24(11). 293 Yap,Kenneth.B,Wong, David H, Loh, Claire,Bak, Randall, “Offline and online banking-Where to draw the line when building trust in e-banking?”, International journal of Bank Marketing, 2010, Vol.28, Issue 1,P 27-46.

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the role of situation normality cues (online attributes of the e-banking web site)

and structural assurance cues (size and reputation of the bank, and quality of

traditional service at the branch) in a consumer’s evaluation of the

trustworthiness of e-banking and subsequent adoption behaviour.

Ya-Yueh Shih, Kwoting Fang, (2004)294 This paper explores the

relationships between consumer innovativeness, self-efficacy on the internet,

internet attitudes and online banking adoption, while controlling for personal

characteristics. The study integrates the technology acceptance model and

adoption of innovation framework to develop predictions of online banking

acceptance. It distinguishes between innate consumer innovativeness, a

generalized personality trait, and internet-domain-specific or actualized

innovativeness in order to explore consumer characteristics’ impact on adoption.

The findings show that general innovativeness is negatively related to online

banking.

Yibin, MU (2003)295 indicated the improvement of the system

infrastructure. According to him, improvements of the system infrastructure are

to: a) improve the system for credit cards and other forms of electronic

transaction; b) build-up transaction reporting services; c) improve payment

system; and d) improve telecommunications infrastructure. Once the

infrastructure is placed properly, then banks can push customers to use new

delivery channels by giving guarantee on security.

Yong J. John, G.E. Gorman, (2002)296 "This paper provides an insight

into how South Koreans access the Internet and use Internet services such as

banking and commerce. The paper shows overall Internet use in relation to users

and their behaviour, and presents data on Internet services such in banking and

294 Ya-Yueh Shih, Kwoting Fang, (2004) "The use of a decomposed theory of planned behavior to study Internet banking in Taiwan", Internet Research, Vol. 14 Iss: 3, pp.213 – 223. 295 Yibin, MU (November 2003), "E-Banking: Status, Trends, Challenges and Policy Issues”, Financial Economist, The World Bank. 296 Yong J. John, G.E. Gorman, (2002) "Internet use in South Korea", Online Information Review, Vol. 26 Iss: 5, pp.335 – 344.

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e-commerce. Data are taken from reports issued by the Korean Network

Information Centre in 2002

Yi-Shun Wang, Yu-Min Wang, Hsin-Hui Lin, Tzung-I Tang, (2003)297

The explosion of Internet usage and the huge funding initiatives in electronic

banking have drawn the attention of researchers towards Internet banking. In the

past, the conventional focus of Internet banking research has been on

technological development, but this is now shifting to user-focused research.

Although millions of dollars have been spent on building Internet banking

systems, reports have shown that potential users may not use the systems in

spite of their availability. This points out the need for research to identify the

factors that determine acceptance of Internet banking by the users. These beliefs

may however not fully explain the user's behavior toward newly emerging IT,

such as Internet banking. Using the technology acceptance model (TAM) as a

theoretical framework, this study introduces “perceived credibility” as a new

factor that reflects the user's security and privacy concerns in the acceptance of

Internet banking. It also examines the effect of computer self-efficacy on the

intention to use Internet banking.. It also demonstrates the significant effect of

computer self-efficacy on behavioral intention through perceived ease of use,

perceived usefulness, and perceived credibility

Zhaohua Deng. Yaobin Lu, Shimin Deng, Jinlong Zhang, (2010)298 The

article examines the factors that influence the adoption of mobile banking through

technology acceptance model (TAM) in China. The study shows that consumer

intention to use mobile banking is predicted using TAM. The study emphasizes

that user’s attitude toward mobile banking is influenced by trust-based construct

and perceived credibility.

297 Yi-Shun Wang, Yu-Min Wang, Hsin-Hui Lin, Tzung-I Tang, (2003) "Determinants of user acceptance of Internet banking: an empirical study", International Journal of Service Industry Management, Vol. 14 Iss: 5, pp.501 – 519. 298 Zhaohua Deng. Yaobin Lu, Shimin Deng, Jinlong Zhang,”Exploring user adoption of mobile banking: an empirical study in China, International journal of information technology & management, 2010, Vol.9, Issue 3, pp289-301.

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Zeithaml, V.A., Parasuraman, A. and Malhotra, A. (2001)299. Although

research has shown that technology has many advantages, it can also make

service delivery more complex and affect service quality. They contend that

many customers cannot clearly determine their expectations of internet services.

Zeithaml (2000)300 contends that despite no direct interaction between the

customer and service provider, each service element provided in the electronic

environment represents an opportunity for the organization to reinforce its level of

quality to customers.

Zeithaml (2002)301 argues that organizations should focus on all the

encounters that occur prior to, during and after internet transactions. He further

argues that organizations should focus on all the encounters that occur prior to,

during and after internet transactions. If organizations focus on developing

efficient internet services, it can become a prevailing factor to increase the

overall service offerings It may contribute to maintaining and enhancing the

image and reputation of the firm which will in turn lead to acquire the trust of

customers.

Zeithaml. V.A, Berry. L.L and Parasuraman A. (1996)302, in order to

enhance a bank’s reputation, improve its customer retention, attract new

customers, and increase its financial performance and profitability, banks should

provide quality service to their customers. They use different criteria to evaluate

the quality of service they receive from internet banking. These criteria are likely

to differ in their importance, usually some being more important than others

299 Zeithaml, V.A., Parasuraman, A. and Malhotra, A. (2001), “A conceptual framework for understanding e-service quality: implication for future research and managerial practice”, MSI Monograph, December, pp 1-15. 300 Zeithaml, V.A. (2000), “Service Quality, profitability and economic worth of customers: what we know and what we need to learn”, Academy of Marketing Journal, Winter. 301 Zeithaml, V.A (2002), “Service-excellence in electronic channels”, Managing Service Quality, Vol. 12(3), p. 135-8. 302 Zeithaml, V.A., Berry, L.L. and Parasuraman, A. (1996), “The behavioral consequences of service quality”, Journal of Marketing, Vol. 60(2), p. 31-46.

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Ziqi Liao and Wing-Keung Wong (2007)303 This paper empirically

explores the major considerations associated with Internet-enabled e-banking

systems and systematically measures the determinants of customer interactions

with e-banking services. The results suggest that perceived usefulness, ease of

use, security, convenience and responsiveness to service requests significantly

explain the variation in customer interactions. Exploratory factor analysis and

reliability test indicate that these constructs are relevant and reliable.

Confirmatory factor analysis confirms that they possess significant convergent

and discriminatory validities. Both perceived usefulness and perceived ease of

use have significant impact on customer interactions with Internet e-banking

services. Perceived security, responsiveness and convenience also represent

the primary avenues influencing customer interactions. In particular, stringent

security control is critical to Internet e-banking operations. Furthermore, prompt

reactions to the service requests from customers should encourage them to use

Internet e-banking services. The findings have managerial implications for

enhancing extant Internet e-banking operations and developing viable e-banking

systems and services.

Ziqi Liao and Michael Tow Cheung (2002)304 Consumer attitudes toward

the usefulness of and willingness to use Internet e-retail banking were identified

and measured. Our survey was undertaken in Singapore, because its geography

and well-developed infrastructure implied similar and small physical- and tele-

communication costs, thereby highlighting the differences between traditional

and Internet-based retail banking upon the latter’s introduction. The data showed

that expectations of accuracy, security, network speed, user-friendliness, user

involvement and convenience were the most important quality attributes

underlying perceived usefulness. Regression discovered that willingness to use

depended significantly on the first five factors, allowing the interdependencies or

marginal rates of substitution between them to be estimated. Our results draw 303 Ziqi Liao and Wing-Keung Wong The Determinants of Customer Interactions with Internet-enabled e-Banking Services, RMI Working Paper No. 07/19, 2007. 304 Ziqi Liao and Michael Tow Cheung, Internet-based e-banking and consumer attitudes: an empirical study Information & Management, Volume 39, Issue 4, January 2002, Pages 283-295.

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attention to demand-side changes in explaining the recent slowdown in Internet

e-retail banking, and may also be useful for development planning and

marketing.

The next chapter deals with the profile of the study area, study unit and

the progress of e-banking in India.

CHAPTER – III PROFILE OF THE STUDY AREA

In this chapter an attempt has been made to describe the existing profile

of Trichirapalli district in terms of area, population level of literacy, infrastructure

facilities, industrial growth, major occupation etc and also a brief profile of the

study area to serve as the base for the study and progress of e-banking in India.

Tiruchirapalli District Tiruchchirapalli District or Trichy District, is located along the Cauvery

River in Tamilnadu, India. The main town in Tiruchirapalli District is the city of

Tiruchirapalli, also known as Trichy. During the British Rule, Tiruchirapalli was

known as Trichinopoly, and was a district of the Madras Presidency, it was

renamed upon India's declaration of independence in 1947. Tiruchirapalli district

is located centrally in the state of Tamil Nadu in India and possesses a

geographical area of 4, 40,383 hectares. The district of Tiruchirapalli is situated

in between ten degree and eleven degree thirty minutes to the North latitudes

and between seventy seven degree forty five minutes and seventy eight degree

fifty minutes to the East longitudes. The maximum temperature experienced in

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this district is 37.7 degree Celsius and the minimum temperature is 18.9 degree

Celsius. The net area cropped in Tiruchirapalli district is 1, 85,193 hectares and

out of which about 102799 hectares are irrigated and about 82394 hectares are

rain fed. The Cauveri River irrigates about fifty one thousand hectares in Trichy,

Lalgudi and Musiri divisions. The normal annual rainfall is 842.60 millimetre. Multi

various crops are grown in this district and agriculture forms the main occupation

for most of the people. of district of Trichirapalli.

History of Tiruchirapalli District The district’s history dates back to 300 BC when Woraiyur formed the

capital city of the Cholas which is also evident from the archaeological findings

and ancient literatures. Woraiyur is a part of the present day district of

Tiruchirapalli. There are also literary sources which state that Woraiyur continued

to be under the control of Cholas even during the days of Kalabhra interregnum

from A.D. 300 to A.D. 575. The district of Tiruchirapalli witnessed the rule of the

Pallavas, the Pandyas, the Cholas, the Hoysalas, the Vijayanagar rulers, the

Mughals and also the British.

Education in Tiruchirapalli District The district of Tiruchirapalli has several educational institutions. There are

about twenty two arts and science colleges, one medical college, about ten

engineering colleges, one college for agriculture, one law college and one

college for special education. For school education, there are about one

thousand fifty four primary schools, about two hundred and seventy three middle

schools, about eighty nine high schools, about one hundred and twenty one

higher secondary schools and about five teacher training colleges.

Tourism in Tiruchirapalli District

The district of Tiruchirapalli possesses a number of tourist attractions

which draw a large number of tourists through out the year. Mosques, temples,

historical buildings and picturesque natural beauty define the South Indian

beauty of nature and human magnificence. Tourism in Trichirapalli has got a

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name due to its scattered natural beauty. Due to the huge industrial growth, the

district is a thriving commercial centre in the state of Tamil Nadu and is well-

known for artificial diamonds, handloom cloth, cigars, glass bangles and wooden

and clay toys. The district of Tiruchirapalli is situated three hundred and twenty

kilometres from Chennai and lies on the banks of the Cauveri River. Some of the

most famous attractions in the district are Grand Anaicut, Vekkaliamman Kovil,

Samayapuram, Puliancholai, Vayalore, Mukkombu, St. Lourdu`s Church, Hazrath

Nathervali, Jambukeswara Temple, Rockfort, Srirangam, etc. The temples of

Trichirapalli district attract a large number of tourists from various parts of the

state as well as from outside.

The Tiruchirapalli district covers an area of 4,403.83 square kilometers.

The area under cultivation in this district is 1, 85,750 hectares. Some of the major

crops grown in this district are rice, pulses, and other cereals, groundnut,

sugarcane,cotton, gingelly, etc. Sericulture was introduced in Tiruchirappalli

District in the late 70`s and the progress is slowly picking up. At present, it has

got mulberry cultivation which is about 217.00 acres

Geography

Cauvery river and Rockfort at Tiruchirapalli Tiruchirapalli district lies at the heart of Tamil Nadu. The district has an

area of 4,404 square kilometers. It is bounded in the northwest by Namakkal

District, in the northeast by Perambalur District, in the east by Thanjavur District,

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in the southeast by Pudukkottai District, in the south by Madurai district, in the

southwest by Dindigul District and, in the west by Karur District. Cauvery river

flows through the length of the district and is the principal source of irrigation and

water supply.

Demographics

It had a population of 2,418,366 as of 2001. It is 47.10% urbanized. The

district has a literacy of 79.16%, higher than the state's average.

Description 2011 2001

Actual Population 2,713,858 2,418,366

Male 1,347,863 1,208,534

Female 1,365,995 1,209,832

Population Growth 12.22% 10.10%

Area Sq. Km 4,511 4,511

Density/km2 602 536

Proportion to Tamil Nadu Population 3.76% 3.88%

Sex Ratio (Per 1000) 1013 1001

Child Sex Ratio (0-6 Age) 952 955

Average Literacy 83.56 77.90

Male Literacy 90.00 86.55

Female Literacy 77.24 69.31

Total Child Population (0-6 Age) 253,633 270,043

Male Population (0-6 Age) 129,947 138,162

Female Population (0-6 Age) 123,686 131,881

Literates 2,055,742 1,673,478

Male Literates 1,096,125 926,354

Female Literates 959,617 747,124

Child Proportion (0-6 Age) 9.35% 11.17%

Boys Proportion (0-6 Age) 9.64% 11.43%

Girls Proportion (0-6 Age) 9.00

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Tamil is the principal language spoken and Tamils are the predominant

linguistic group in the district. Considerable amount of Sri Lankan Tamils are also

found in certain pockets of Tiruchirapalli. Hindus formed the majority of the

population at 84.39% of the population followed by Christians at 9.02%, Muslims

at 6.46% and others at 0.12%

Taluks

Srirangam Temple Gopuram

Tiruchirapalli District consists of 8 Taluks:

Manapparai

Srirangam

Tiruchirapalli

Manachanallur

Thuraiyur

Musiri

Thottiyam

Thiruverambur

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Urban centres

Thiruvanaikaval Temple at Tiruchirapalli

Tiruchirapalli District consists of the following urban centres:

Trichy City

Manapparai town

Thuraiyur town

Thuvakudi town

Lalgudi town panchayat

Musiri town panchayat

Thottiyam town panchayat

Manachanallur town panchayat

Kolli hills (Kollimalai) tourist town

Major industries

Boiler Manufacturing Industries

Cement Factories

Light and heavy engineering

Leather Tanneries

Food processing Industries

Sugar Mills

(Traditional) Cigar Making (village) Industries.

Hosiery and garments (to a small extent)

IT/BPO

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Natural resources and water bodies

NH45 (Grand Southern Trunk Road) Tiruchirapalli district

Cauvery river bisecting Tiruchirapalli and Srirangam

Upper Anaicut or Mukkombu

River Cauvery

River Coleeron

Tourism Places to visit in Tiruchirappalli District.

Mukkombu

Srirangam Temple

Thiruvanai koil

Vayalur Murugan Temple

Kulumandi Amman Temple,Puthur-Sholanganallur

Samayapuram Mariamman Temple

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Vekkaliamman Temple, Woriyur

Rock Fort and Uchipillaiyar Temple

Kallanai

BRIEF PROFILE OF STUDY UNITS

Currently, India has 88 scheduled commercial banks (SCBs) — 28 public

sector banks, 29 private banks and 31 foreign banks. They have a combined

network of over 53,000 branches and 17,000 ATMs. The public sector banks

hold over 75% of total assets of the banking industry, with the private and foreign

banks holding 18.2% and 6.5% respectively.

The profile of public sector and private sector banks taken for study in

Trichirapalli district

STATE BANK OF INDIA The State Bank of India, popularly known as SBI, is one of the leading

banks in India. The bank traces its origin to the first decade of the 19th century.

Later on, it was merged with the Imperial Bank. In the year 1955, the

Government of India nationalized the Imperial Bank along with the Reserve Bank

of India. Ever since that time, the bank acquired its present name that is SBI.

State bank of India is the largest banking and financial services company in

India, by almost every parameter - revenues, profits, assets, market capitalization

etc. SBI provides a range of banking products through its vast network in India

and overseas, including products aimed at NRIs. The State Bank Group, with

over 16000 branches, has the largest branch network in India. The State Bank of

India is India's largest commercial bank. The bank has been striving sincerely to

adhere to the efforts of providing utmost customer satisfaction to the best

possible The State Bank of India has its presence all over India with 16,000

branches. Not only this, the bank has made its roots secured internationally as

well. At present, SBI has 131 branches in 32 countries all over the world

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INDIAN BANK Indian bank is one of the largest nationalized bank among all the other

nationalized bank in India established in the year 1907 and on 19 July 1969, the

government of India nationalized the bank. It provides all the information

regarding its products and services in its official website i.e., www.indianbank.in

as well as 24*7 Online Internet Banking facilities to its customer at

Indianbank.net.in. This is a nationalized bank having its headquarters located in

Chennai (Madras), India with 1657 branches and 22000 employees. Indian Bank

has 1657 branches across the country excluding 240 overseas correspondent

banks in 70 countries. 90 Indian Bank branches are allocated for handling forex

dealings. All the branches are functioning under CBS solutions. Indian Bank has

786 connected ATM centers in 260 cities. The ATM card holders of the bank can

access 40, 000 ATMs under shared network across the country. Indian Bank also

has its branches in abroad like Sri Lanka, Singapore, and Colombo and in other

about 69 countries. It offers various financial products and services to its

customers via its Internet banking. Indian Bank provides wide range of services

through online banking to its customers who have registered for bank’s Online

banking facility. User can get various benefits through online and in a convenient

way.

CANARA BANK Canara bank is a premier commercial bank in India. Canara bank is one

of the biggest commercial banks in India and the official website of canara bank

is www.canarabank.com. The bank has subsidiaries both India and abroad. The

bank was established in the year1906. It was nationalized in the year 1969.

Canara bank has also developed internationally in the year 1976. It has its

international branches in Singapore, Dubai, London, Hong Kong, Moscow,

Shanghai, Doha, and more. It has 3043 branches and over 2000 ATMs across

the country. Canara bank provides a wide range of products and services to its

customers.

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BANK OF INDIA Bank of India (BOI) is one of the pioneering banking institutions in India.

With its headquarters in, Mumbai, the bank enjoys a huge infrastructure both

within India and abroad. BOI is the 5th largest public sector bank in all over the

India with about 3140 branches including 27 branches outside India. It was

established on 7th September 1906. Bank of India has several firsts to its credit.

The Bank has been the first among the nationalized banks to establish a fully

computerized branch and ATM facility at the Mahalaxmi Branch at Mumbai way

back in 1989. It provides it net banking services through www.bankofindia.com.

Bank of India is a part of Cash-tree online services,

INDIAN OVERSEAS BANK Indian Overseas Bank was established in 1937 with the aim to specialize

in foreign exchange and overseas banking business in India. Indian Overseas

Bank had expanded to 38 branches within the country and 7 branches abroad.

Before nationalization in 1969, the bank had ventured into consumer credit, had

begun computerization of their branch in 1964 and had established an

independent department for agricultural finance. In 1969, IOB had 195 branches

in India. In 1977, Indian Overseas Bank opened a branch in Seoul followed by a

foreign currency-banking unit in Colombo in 1979. In 1997, the bank launched its

official website and introduced online Bill Payment Services for MTNL Bills to its

New Delhi branch customers in 1999. At present the bank is having 2013

branches all over the country. The IOB presence is marked in key trade centres

of the world like Singapore, Seoul, Hong Kong, Bangkok and Germany. Its India

presence is well networked branch system spanning the country with multiple

branches in major cities like Bangalore, Chennai, Mumbai, Noida, Hyderabad,

New Delhi, Coimbatore, Pune, Faridabad, Gurgaon and Kolkata.

THE LAKSHMI VILAS BANK The Lakshmi Vilas Bank Ltd is a premier Indian commercial bank, based

in India. Lakshmi Vilas Bank Ltd Online Banking services are fast, easy and

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secure. Under Lakshmi Vilas Bank Ltd Internet Banking the bank offers around

238 CBS Branches in India. Lakshmi Vilas Bank Ltd Net Banking offers its

customers a wide variety of ATM branches. Founded in 1926, Lakshmi Vilas

Bank is a leading banking and financial services provider in South India that

caters to the different financial needs of different client segments. The bank is

headquartered in Karur, Tamil Nadu. The Lakshmi Vilas Bank Ltd offers Retail

Internet banking services under the name of LVB i-net.

FEDERAL BANK OF INDIA With 75 years of service in India, Federal Bank is one of the leading

private sector banks in the country. The Bank has more than 500 offices in India,

covering all the important cities. Federal Bank is a private sector bank in India.

The head office of this prestigious bank is located at Aluva, Kerala. By 2008, the

Federal Bank India had successfully introduced 671 branches and 681 ATMs

across the nation. In the month of March of 2008 alone, the bank had opened 26

branches across 11 Indian States. Federal bank of India is well recognized for

facilitating even the smaller branches consisting of rural and partially-urbanized

areas with technology enabled services. Online banking from Federal bank is

provided to all bank customers. No charges are levied for the Fed Net facility

provided to the customers.

CATHOLIC SYRIAN BANK Ranking among the well known private banks in India, the Catholic Syrian

Bank is an organization that is preferred by lots of customers across the country.

It offers a number of customized solutions and services of high standards to fulfill

the needs and preferences of the customers and help them to enjoy financial

stability. The Catholic Syrian Bank has a strong presence in the rural areas in

India and is a well known financial organization related to the agricultural sector.

The Catholic Syrian Bank was established in the year 1920 in the region of

Thrissur in the state of Kerala. The main headquarters of the bank is located in

the city of Thrissur. The bank started its operations from the first of January in the

year 1921 and since then, it has spread its branches and become a reputed

130

name in the banking industry. When the bank started its operations, it had an

initial authorized capital of Rs 5 lakhs while the paid up capital amount was

around Rs 45,270. Since then, the bank has significantly increased its operations

and today it has around 334 branches and around 125 ATMs. The net profit of

the bank now amounts to around Rs 36.56 crores. Around 80% of the branches

of the bank are located in the rural and semi urban areas of the country. In

addition to the domestic branches, there are around 5 NRI branches of the bank

as well as 5 Industrial Branches, 5 SSI Branches and 4 Service Branches. All

these branches work in coordination with each other and offer the high class

facilities and services.

KARUR VYSYA BANK Karur Vysya Bank was started in the year 1916 in Karur, then a small

textile town with a vast agricultural background, by two illustrious sons of the soil

– Sri M.A. Venkatarama Chettiar and Sri Athi Krishna Chettiar. the bank that

carries with it a tradition of 94 years adapt itself to the rapidly changing scenario

in the banking industry. The bank has a branch network of 335 and an ATM

network of 376. The bank has now spread its wings far and wide with over 320

branches in 13 States and 3 Union Territories. It provides its netbanking facilities

through kvb@net. KVB is one of the earliest banks in the country to achieve full

networking of its branches under Core Banking Solutions, offering services

through multiple delivery channels.

ICICI BANK ICICI Bank is India's second-largest bank with total assets of Rs. 3,562.28

billion (US$ 7 billion) at December 31, 2009 and profit after tax Rs. 30.19 billion

(US$ 648.8 million) for the nine months ended December 31, 2009. The Bank

has a network of 1,723 branches and about 4,883 ATMs in India and presence in

18 countries. ICICI Bank offers a wide range of banking products and financial

services to corporate and retail customers through a variety of delivery channels

and through its specialized subsidiaries

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PROGRESS OF E-BANKING IN INDIA BANKING BEFORE NATIONALIZATION Without a sound and effective banking system, India cannot have a

healthy economy. The banking system of India should not only be hassle free but

it should be able to meet new challenges posed by the technology and any other

external and internal factors. The first bank in India, though conservative, was

established in 1786. From 1786 till today, the journey of Indian Banking System

can be segregated into three distinct phases.

Early phase from 1786 to 1969 of Indian Banks

Nationalization of Indian Banks up to 1991 prior to Indian banking sector

Reforms.

New phase of Indian Banking System with the advent of Indian Financial &

Banking Sector Reforms after 1991.

PHASE I During the first phase the growth was very slow and banks also

experienced periodic failures between 1913 and 1948. There were approximately

1100 banks, mostly small. To streamline the functioning and activities of

commercial banks, the Government of India came up with The Banking

Companies Act, 1949 which was later changed to Banking Regulation Act 1949

as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India was

vested with extensive powers for the supervision of banking in India as the

Central Banking Authority.

PHASE II

Government took major steps in the Indian Banking Sector Reform after

independence. In 1955, it nationalized Imperial Bank of India with extensive

banking facilities on a large scale specially in rural and semi-urban areas. It

formed State Bank of India to act as the principal agent of RBI and to handle

banking transactions of the Union and State Governments all over the country.

Seven banks forming subsidiary of State Bank of India were nationalized in 1960.

132

On 19th July, 1969, major process of nationalization of 14 banks was carried out.

Second phase of nationalization Indian Banking Sector Reform was carried out in

1980 with seven more banks. This step brought 80% of the banking segment in

India under Government ownership. Banking in the sunshine of Government

ownership gave the public implicit faith and immense confidence about the

sustainability of these institutions.

Phase III This phase has introduced many more products and facilities in the

banking sector in its reforms measure. In 1991, under the chairmanship of M.

Narasimham, a committee was set up by his name which worked for the

liberalization of banking practices. The Government of India enacted the

Information Technology Act, 2000, to provide legal recognition to electronic

transactions and other means of electronic commerce. The country is flooded

with foreign banks and their ATM stations. Efforts are being put to give a

satisfactory service to customers. Phone banking and net banking were

introduced. The entire system became more convenient and swift. Time was

given more importance than money.

EMERGE OF E-BANKING SERVICES

The evolution of e-banking started with the use of Automatic teller

machines (ATM) and included telephone banking, direct bill payment ,

electronic fund transfer and online banking. More recently, it has been

transformed by the internet-a new delivery channel that is fast, convenient,

available round the clock and from what ever the customers location (Saleh and

Anderea 2002)1. E-banking services are changing the face of the Indian banks.

The potential customers and big companies are shifting their accounts from

traditional banks [not fully computerized] to e-banks [fully computerized and

provide different channels]. Mobile banking is fast catching up in India, as a cost

effective alternative banking model. It is also a virtual banking model. However,

1 Saleh and Anderea 2002, challenges of the e-banking revolution, a quarterly magazine of international monetory fund (IMF) ,vol. 39,no.3,pp 34-56.

133

there are security issues and regulatory concerns in its usage. Mobile banking

can help banks and micro finance institutions to deliver and collect credit in a

faster and cheaper way, besides helping in better credit management.(Dr.Ashish

Srivastava, 2006)2 SCENARIO OF E-BANKING ABROAD

Since its inception, Internet banking has experienced strong and sustained

growth. In the European Union, 60 million people, representing 18 per cent of

the adult population, use online banking. In France, the number of online banking

accounts is recording an annual growth rate of 75 per cent. However, Estonia is

a country that has become a leader in Internet banking (which now reaches 18

per cent of the population), Two Brazilian banks, Bradesco and Banco do Brasil;

have thus achieved more than 4 million online customers each. Mexico is

another leader of Internet banking in Latin America. The Republic of Korea

leading in online brokerage and in mobile banking. In South-East Asia, Internet

banking is also developing rapidly in Thailand, Malaysia, and Singapore and to a

lesser extent, in the Philippines. Compared with overall Internet usage estimated

at 4.4 million in Australia, the major banks together have attracted only 1.2 million

to online banking.

According to the Internet World Stats 2010, China with 31.6 percent of its

population, United States with 77.5 percent, Japan with 78.2 percent, India with

6-9 percent, Brazil with 37.8 percent, Germany with 79.1 percent, Russia with

42.8 percent, United Kingdom with 82.5 percent, France with 68.9 percent and

Nigeria with 28.9 percent occupies the position of top 10 countries with the

highest number of internet users. .Technology is affecting the life of every

individual in this present age. Online banking is also one of the technologies

which is getting recognition round the globe. There are a lot of customers around

the world who are accepting this technology quickly. There are many banks

which are providing these facilities to customers. The core reason of the transfer

2 Dr. Ashish Srivastava, Mobile phone banking, 2006, Professional banker. Pg 11-16 , the icfai university press.

134

of almost 50 percent of clients from traditional banking to online banking is

perceived usefulness, security and privacy provided by online banking. (Tahir Masood Qureshi, Muhammed Khaqan Zafar,2008.)3 The current statistics

shows that hardly 10 percent of Indian customers use the internet for banking.

Among all the facilities provided, the maximum of them uses only for checking

balance or requesting for a cheque book. Very few customers use the advance

interactive services provided by banks.

In India , banks have entered the domain of information technology and

computer net working not only for improving the quality of services rendered to

the customers, but also for better marketing of their products. Un-precedence

changes resulting from internet revolution have built the confidence on the Indian

banks and they are now in a position to face the competition even from the

international banks. It is true that electronic banking has reduced operational

costs substantially by cutting unnecessary duplication of work and also enables

extend quality services to the customers. (Vissapragada Srinivas,2009)4

Development of i-banking in India The financial reforms that were initiated in the early 1990s and the

globalization and liberalization measures brought in a completely new operating

environment to the banks. The bankers are now offering innovative and attractive

technology-based services and products such as ‘Anywhere Anytime Banking’,

‘Tele Banking’, ‘Internet Banking’, ‘Web Banking’, etc. to their customers to cope

with the competition. The process started in the early 1980s when Reserve Bank

of India (RBI) set up two committees in quick succession to accelerate the pace

of automation of operations in the banking sector. A high-level committee was

formed under the chairmanship of Dr. C. Rangarajan, then Governor of RBI, to

draw up a phased plan for computerisation and mechanisation in the banking

3 Tahir Masood Qureshi,Muhammed Khaqan Zafar,2008, Journal of internet banking and commerce, April 2008,vol.13,No.1.,Consumer Acceptance of Online Banking in Developing Economies 4 Vissapragada Srinivas, August 2009, No more traditional banking only virtual, pg 41,professional banker, The icfai university press

135

industry over a five-year time frame of 1985–1989. The focus by this time was on

customer service and two models of branch automation were developed and

implemented. Having gained experience in the earlier mode of computerization,

the second Rangarajan committee constituted in 1988 drew up a detailed

perspective plan for computerization of banks and for extension of automation to

other areas such as funds transfer, e-mail, BANKNET, SWIFT, ATMs, i-banking,

etc. The Government of India enacted the Information Technology Act, 2000

(generally known as IT Act, 2000), with effect from 17 October 2000 to provide

legal recognition to electronic transactions and other means of electronic

commerce. RBI had set up a ‘Working Group’ on i-banking to examine different

aspects of i-banking. The Group had focused on three major areas of i-banking

such as (1) technology and security issues, (2) legal issues and (3) regulatory

and supervisory issues. RBI had accepted the recommendations of the ‘Working

Group, and accordingly issued guidelines on ‘internet banking in India’ for

implementation by banks. The ‘Working Group’ has also issued a report on i-

banking covering different aspects of i-banking. Internet banking in India is

currently at a nascent stage. While there are scores of companies specializing in

developing i-banking software, security software and website designing and

maintenance, there are few online financial service providers. ICICI bank is the

first one to have introduced i-banking for a limited range of services such as

access to account information, correspondence and, recently, funds transfer

between its branches. ICICI is also getting into e-trading, thus offering a broader

range of integrated services to the customer. Several finance portals for provision

of non-banking financial services, e-trading and e-broking have come up.

Commercial applications such as Electronic Bill Presentment (EBP) and

Procurement systems may not be introduce d in India immediately, but are likely

to have a greater impact than the retail applications. The corporate sector is

adequately computerized and has already recognized the important role of e-

commerce in future. Increasingly, companies are setting up websites even where

there are no immediate tangible benefits to them from doing so.

136

Status of e-banking in India In Indian context, many publications throw light over the importance of e-

banking and also its prospects for the Indian banking industry. Various authors

have found that i-banking is fast becoming popular in India. (Pegu, 2000)5

However, it is still in its evolutionary stage. By the year 2006–2007, a large

sophisticated and highly competitive i-banking market will develop. Almost all the

banks operating in India are having their websites, but only a few banks provide

transactional i-banking. A survey carried out by (Malhotra and Singh, 2006)6

shows that only 48% of the commercial banks operating in India as on March-

end 2005 offers i-banking.

In India, comparatively less number of studies have been conducted on

the current status of i-banking and customer satisfaction compared to other

countries. Thus, there is a lot of scope for the research to present new ideas

concerning i-banking in India which may be useful to the Indian banking industry.

There are a series of papers that observe that i-banking has revolutionized the

banking industry and the banking industry is under pressure to offer new

products and services. However, to succeed in today’s electronic markets a

strategic and focused approach is required. M.S. Khan, S.S. Mahapatra and

Sreekumar 20097

The internet users in India The role of internet is becoming inevitable to corporate and society.

Across the world, governments and corporate are increasingly working towards

the better utilization of the internet. The internet which was initially perceived as a

5 Pegu, R. (2000) ‘Net-banking is fast becoming popular’, The Week, 25 June 6 Malhotra,, P & Singh, B., “The Impact of Internet Banking on Bank Performance and Risk: The Indian Experience,” Eurasian Journal of Business and Economics, vol. 2, no. 4, pp. 43-62, 2009 7 Khan, M.S., Mahapatra, S.S. 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.

137

communication media is now metamorphosing into a powerful business media

(Sakkthivel, 2006)8.

According to the Internet & Online Association of India (IOAI), the Indian

internet population is currently over 25 million and is expected to grow to 100

million by 2007 (Survey by New Media Review, 2005). In July 2005, Internet

World Stats reported that there were 39,200,000 internet users in India

representing 3.6% of the population. (Internet World Stats, August 2005). Even

with millions of web users in its cities, the internet penetration rate for India

remains well below 5%. Despite India’s technology outsourcing power, the

country’s internet penetration rate is low.

According to Internet Usage and Telecommunications Market

Report,2010, internet usage and population statistics reported that Indian

internet population is currently over 1,175,108,018. Asia internet stats reported

that there are 81,000,000 internet users in India representing 6.9 % of the

population. Compared to 2005 statistics it has nearly doubled. In India, slowly

but steadily, the Indian customer is moving towards i-banking. A number of banks

have either adopted i-banking or are on the threshold of adopting it. The banks

started i-banking initially with simple functions such as getting information about

interest rates, checking account balances and computing loan eligibility. Then,

the services are extended to online bill payment, transfer of funds between

accounts and cash management services for corporate. Recently, banks have

started to facilitate payment of e-commerce transactions by directly debiting bank

accounts or through credit cards. It will add to the revenues of the bank.

SMART CARDS A smart card is the next natural step in the evolution of today's plastic

payment cards. Each smart card has an integrated circuit chip embedded into it,

which gives it the power to perform many different functions. Thus, having a

8 Sakkthivel, A.M., (2006, December) ‘Impact of demographics on the consumption of different services online in India’, Journal of Internet Banking and Commerce, Vol. 11, No. 3.

138

smart card is like having a PC in your wallet. With their ability to store up to 80

times more information than magnetic stripe cards, smart cards will allow Card

Companies to deliver more personalized products and services providing

consumers with custom-tailored cards to suit their individual lifestyle.

E - BANKING – RECENT TRENDS IN INDIA

Initially, the Indian banking system was domestically oriented at the time

of nationalization in 1969. National policy objectives where the guiding force and

banks were primarily involved in mobilizing domestic savings, lending funds to

specific sectors of the economy and raising resources for financing public

deficits. Technology in Indian banking has evolved substantially from the days of

back office automation today's online, centralized and integrated solutions.

Padmanaban.G(2005)9 has stated that “the banking in India has under

gone rapid transformation. The last decades have witnessed a sea change in

the nature of services offered by banks which has a positive impact on the

customers of banks. Technology will be considered as an emerging tool for

providing the better customer service.

According to the internet &online Association of India (IOAI), the Indian

internet population is currently over 25 million and is expected to grow to 100

million by 2007. Internet World Stats reported that there were 39,200,000

internet users in India representing 3.6 percent of population (internet world stats,

August 2005). Even with millions of web users in its cities, the internet

penetration rate for India remains well below 5 percent.

According to Internet Usage and Telecommunication Market Report, 2010,

Internet usage and population statistics reported that Indian internet population

currently over 1,175,108,018. Asia internet stats,2010 reported that there are

81,000,000 internet users in India representing 6.9 percent of the population.

Compared to 2005 statistics it has nearly doubled. In India, slowly but steadily, 9 Padmanaban.G, Chief Manager-in-charge, Department of information technology, Reserve bank in the Banknet India’s Bank Tech Submit at Taj Lands Ends, Mumbai, on September 2005.

139

the Indian customer is moving towards internet banking. Online banking is

currently emerging as a new approach in India for providing improved

accessibility and expediency to customers.

The next chapter explains the analysis and interpretation of the

parameters framed. The section deals with the descriptive and statistical analysis

of the primary data.

CHAPTER – IV ANALYSIS AND INTERPRETATION OF DATA

This chapter deals with the descriptive and statistical analysis of primary

data collected with regard to e-banking services, qualities of e-banking services

and problems perceived by the respondents of 10 different banks doing e-

banking services. The hypotheses framed by the researcher are tested with the

help of statistical tools and results are interpreted. Five points scale have been

used in the analysis with the following options;

SA – Strongly agree A – Agree NO – No opinion

DA – Disagree SDA – Strongly disagree

Table 4.1

Gender wise classification of respondents

Sl.no Gender No. of respondents

(n=500) Percentage

(100%)

1 Male 375 75

2 Female 125 25

Source: Primary Data

The table 4.1 shows that out of the total respondents who were using

e-banking services, three fourth (75%) of respondents were male and one fourth

(25%) were female. It is inferred that compared to female respondents male

respondents using the e-banking services are more which constitute 75% of the

total.

141

75

25

0

10

20

30

40

50

60

70

80

No.

of r

espo

nden

ts (%

)

Male FemaleGender

Chart 4.1Gender wise classification of respondents

MaleFemale

142

Table 4.2 Age wise classification of respondents

Sl.no Age group No. of respondents

(n=500)

Percentage

(100%)

1 Below 25yrs 19 3.8

2 26 to 35yrs 120 24.0

3 36 to 45yrs 209 41.8

4 46 to 55yrs 125 25.0

5 56yrs & above 27 5.4


The above table shows that out of the total respondents using e-banking

services a vast majority (41 %) of respondents belong to the age group between

36 to 45 years. Exactly one fourth (25 percent) of the respondents belong to the

age group of 46 to 55 years. Nearly one fourth (24 percent) of the respondents

belong to the age group of 26 to 35 years, 5.4 percent of the respondents belong

to the age group of 56 years and above and 3.8 percent of the respondents

belong to below 25 years age group. It is inferred that maximum no of

respondents belonging to the age group of 36 to 45 years are using the e-

banking services.

143

3.8

24

41.8

25

5.4

0

5

10

15

20

25

30

35

40

45

No.

of r

espo

nden

ts (%

)

Below 25yrs 26 to 35yrs 36 to 45yrs 46 to 55yrs 56yrs &above

Age group

Chart 4.2Age wise classification of respondents

Below 25yrs26 to 35yrs36 to 45yrs46 to 55yrs56yrs & above

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Table 4.3 Occupation wise classification of respondents

Sl.no Occupation No of respondents

(n=500)

Percentage

(100%)

1 Professional 118 23.6

2 Agriculturist 27 5.4

3 Businessman 105 21.0

4 Salaried class 225 45.0

5 Others 25 5.0


The table 4.3 shows that out of the total respondents using e-banking

services a maximum (45%) of respondents belong to salaried class, 23.6 percent

are professional group, 21 percent of respondents are businessmen. 5.4 percent

are agriculturist and 5 percent belong to other occupational group. It is inferred

that e-banking services mostly been utilized by salaried class people. Awareness

level of e-banking services next prevails with professionals. 23.6 percent of

respondents are using e-banking services and 21 percent of respondents who

are using e-banking services are businessmen.

145

23.6

5.4

21

45

5

0

5

10

15

20

25

30

35

40

45

No.

of r

espo

nden

ts (%

)

Professional Agriculturist Businessman Salaried class Others

Occupation

Chart 4.3 Occupation wise classification of respondents

ProfessionalAgriculturistBusinessmanSalaried classOthers

146

Table 4.4

Education wise classification of respondents

Sl no Education No of respondents

(n=500) Percentage

(100%)

1 Below HSC 47 9.4

2 Graduate 79 15.8

3 Postgraduate 261 52.2

4 Professional 113 22.6


The table 4.4indicates that among the total respondents using e-banking

services 52.2 percent of respondents were postgraduates 22.6 percent of

respondents were professionals 15.8 percent of respondents were graduates and

9.4 percent of respondents were below higher secondary.

It is inferred that compared to other educational class people who have

qualification of post graduation utilize the e-banking services to the maximum.

147

9.4

15.8

52.2

22.6

0

10

20

30

40

50

60

No.

of r

espo

nden

ts (%

)

Below HSC Graduate Postgraduate Professional

Education

Chart 4.4Education wise classification of respondents

Below HSCGraduatePostgraduateProfessional

148

Table 4.5 Income level classification of respondents

Sl.no Particulars No of respondents

(n=500)

Percentage

(100%)

1 Below Rs.10000 29 5.8

2 10001 to 20000 186 37.2

3 20001 to 30000 135 27.0

4 30001 to 40000 101 20.2

5 40001 to 50000 37 7.4

6 50001 & above 12 2.4


Table 4.5 shows that out of the total respondents doing e-banking services

a maximum (37.2 %) of respondents belong to the monthly income group of

10001 to 20000. 27 percent respondents belong to 20001 to 30000, 20.2

percent belong to 30001 to 40000, 7.4 percent belong to 40001 to 50000, 5.8

percent belong to below 10000 income group and 2.4 percent respondents

belong to 50001 and above income group. It is inferred that compared to other

income group people respondents belonging to the income group of 10000 to

20000 use the e-banking services to a maximum extent.

149

Chart 4.5Income level classification of respondents

5.8

37.2

27

20.2

7.4

2.4

0

5

10

15

20

25

30

35

40

Below Rs.10000 10001 to 20000 20001 to 30000 30001 to 40000 40001 to 50000 50001 & above

Income

No.

of r

espo

nden

ts (%

)

Below Rs.1000010001 to 2000020001 to 3000030001 to 4000040001 to 5000050001 & above

150

Table 4.6-1 Frequency of using e-banking service for Mobile recharge

Sl.no Particulars No.of respondents

(n=500)

Percentage

(100%)

1 Nil 68 13.6

2 One 106 21.2

3 Two 108 21.6

4 Three 59 11.8

5 Four 76 15.2

6 Five & above 83 16.6


With regard to mobile recharging through e-banking services, out of the

total respondents a maximum (21.6%) of respondents are doing mobile

recharging two times in the 3 months duration. 21,2 percent of respondents are

doing mobile recharging one time in 3 months duration period, 16.6 percent

respondents recharge their mobile five times and above 15.2 percent of

respondents recharge their mobile four times in 3 months 11.8 percent of

respondents are recharging three times in 3 months and 13.6 percent of

respondents not at all recharging their mobile phone in 3 months duration.

151

Table 4.6-2 Frequency of using e-banking service for Payment of telephone bill


(n=500)

Percentage

(100%)

1 Nil 159 31.8

2 One 173 34.6

3 Two and above 168 33.6


Out of the total respondents 34.6 percent of respondents are using the e-

banking services once in three months for the payment of telephone bill, 33.6

percent of respondents are paying the telephone bill two and above times and

31.8 percent of respondents are not using the e-banking services for the

payment of telephone. It is inferred that 68.2 percent of payers of telephone bill

are aware of the e-banking services and are utilizing them promptly

152

Table 4.6-3 Frequency of using e-banking services for Payment of electric bill


(n=500)

Percentage

(100%)

1 Nil 231 46.2

2 One 269 53.8


Among the total respondents taken for analysis 53.8 percent of the

respondents used e-banking services to pay the electricity bill once in 3 months

time and 46.2 percent of the respondents did not use the e-banking services for

the payment of e-banking services. It is inferred that more than half of the

respondents have the awareness of e-banking services and are using them to

ease their work.

153

Table 4.6-4 Frequency of using e-banking services for Money transfer


(n=500)

Percentage

(100%)

1 Nil 65 13.0

2 One 98 19.6

3 Two 120 24.0

4 Three 66 13.2

5 Four 72 14.4

6 Five & above 79 15.8


Out of the total respondents 24 percent respondents are using the e-

banking services two times for money transfer ,19.6 percent of the respondents

are using the services for one time, 15.8 percent of respondents are using the e-

banking services five times and above in three months time, 14.4 percent are

using the services for money transferring four times in 3 months, 13.2 percent of

the respondents using the services for three times in three months, and 13

percent of the respondents are not utilizing the e-banking services for money

transfer. It is inferred that 87 percent of the respondents have the awareness to

utilize the e-banking services for the money transfer.

154

Table-4.6.5 Frequency of using e-banking services for Railway ticket booking


(n=500)

Percentage

(100%)

1 Nil 165 33.0

2 One 175 35.0

3 Two and above 160 32.0


Out of the total respondents using the e-banking services a maximum

(35%) of the respondents are using the e-banking services for railway ticket

booking one time in three months time, 32 percent are using for booking the

railway ticket two times and above in three months time and 33 percent of the

respondents are not utilizing the service. It is inferred that 67 percent of the

respondents have the knowledge of booking the railway ticket utilizing the e-

banking services.

155

Table 4.6.6 Frequency of using e-banking services for Air ticket booking

S no Particulars No of respondents

(n=500)

Percentage

(100%)

1 Nil 317 63.4

2 One 183 36.6


Out of the total respondents using the e-banking services 36.6 percent of

the respondents are using the e-banking services one time for air ticket booking

and 63.4 percent of the respondents are not utilizing the service

156

Table 4.6.7 Frequency of using e-banking services for Filing of tax returns


(n=500)

Percentage

(100%)

1 Nil 249 49.8

2 One 251 50.2


Out of the total respondents 50.2 percent of the respondents are using the

e-banking services for filing of tax returns and 49.8 percent of the respondents

are not using the e-banking services for filing of tax returns. It is inferred that e-

banking services has caught a place among the respondents and they have

started utilizing the service.

157

Table 4.6.8 Frequency of using e-banking services for Investment and others


(n=500)

Percentage

(100%)

1 Nil 106 21.2

2 One 177 35.4

3 Two 120 24.0

4 Three and above 97 19.4


Among of the total respondents using e-banking services a maximum (

35.4%) of the respondents are using the services one time in three months for

investment and others services. 24 percent of the respondents are using the e-

banking services two times in three months the investment and other work, 19.4

percent of the respondents are using the e-banking services three times and

above for investment and for other purposes, and 21.2 percent of the

respondents are not using the e-banking services. It is inferred that78.8 percent

of the respondents have the awareness on e-banking services for utilization for

investment and other services.

158

Table 4.7 Distribution of respondents of the banks


(n=500)

Percentage

(100%)

1 Canara Bank 50 10

2 SBI 50 10

3 IOB 50 10

4 IB 50 10

5 Bank of India 50 10

6 KVB 50 10

7 LVB 50 10

8 ICICI 50 10

9 CSB 50 10

10 Federal Bank 50 10


The respondents using e-banking services been taken equally from all the

ten banks.

159

Chart 4.6Distribution of respondents of the banks

50 50 50 50 50 50 50 50 50 50

45

46

47

48

49

50

51

CanaraBank

SBI IOB IB Bank ofIndia

KVB LVB ICICI CSB FederalBank

Name of the Banks

No.

of r

espo

nden

ts

Canara Bank SBI IOB IB Bank of IndiaKVB LVB ICICI CSB Federal Bank

160

Table 4.8 No of banks the respondents having account


(n=500)

Percentage

(100%)

1 One 228 45.6

2 Two 251 50.2

3 Three 21 4.2


Out of the total respondents more than half (50.2%) of the respondents

have account in two or more banks, 45 .6 percent of respondents are having

account in one bank and 4.2 percent of the respondents are having accounts in

three banks.

161

Table 4.9 Details of possessing account access to internet


(n=500)

Percentage

(100%)

1 Having account access 354 70.8

2 Not having account access 146 29.2


Out of the total respondents using e-banking services 70.8 percent of the

respondents accepted that they have account access to internet and 29.2

percent of the respondents did not have account access to internet.

162

Table 4.10 Nature of option of account access


(n=500)

Percentage

(100%)

1 Nil 146 29.2

2 At home 117 23.4

3 Office 177 35.4

4 Browsing centre 60 12.0


Out of the 70.8 percent of respondents who are having account access to

internet 35.4 percent respondents have internet at office, 23.4 percent of

respondents have internet at home and 12 percent of respondents have internet

access at the browsing centre.

163

Table 4.11 Opinion on the security of financial information available and

managed over internet


(n=500) Percentage

(100%)

1 Very Secured 182 36.4

2 Secured 111 22.2

3 Not Sure 150 30.0

4 Unsecured 30 6.0

5 Highly Unsecured 27 5.4


Out of the total number of respondents taken for analysis 36.4 percent of

respondents felt very secure with their financial information available and

managed over internet. 30 percent of the respondents were not sure about

security managed over internet. 22.2 percent of the respondents felt secured

about their financial information available and managed over internet. 6 percent

of the respondents felt unsecured about their financial information available and

managed over internet and 5.4 percent of the respondents felt highly unsecured.

It is inferred that out of total percentage of respondents nearly 58.6 percent of

respondents felt secured with managing their financial information available and

managed over internet. This indicates that though there are many fraudulent

activities over internet the steps taken by the banks in providing secured services

over internet has created confidence in respondents’ thoughts.

164

This part of the analysis provides the information regarding the preference of respondents in the usage of e-banking services

Table 4.12

E-banking services used by respondents

Sl.no Particulars Yes No

1 ATM/ Debit card 459 (91.8%) 41 (8.2%)

2 Credit card 42 (8.4%) 458 (91.6%)

3 Mobile banking 27 (5.4%) 473 (94.6%)

4 Online banking 336 (67.2%) 164 (32.8%)

5 Tele banking 28 (5.6%) 472 (94.4%)


Table(4.12) shows that out of the total respondents a maximum of 91.8

percent of the respondents are using ATM/Debit card and only 8.2 percent of the

respondents are not using the ATM/Debit card. It shows the how much familiar

and useful the ATM /Debit card service is to the respondents.

The above table depicts the very low frequency of usage of credit card by

the respondents. Out of the total respondents only 8.4 percent of the

respondents are using the credit card service. 91.6 percent of the respondents

are not using the service. It is perceived that the awareness of the benefit of

credit card services have not reached the respondents of the bank.

The above table depicts the information that out of the total percent of the

respondents using e-banking services only 5.4 percent of the respondents are

using the mobile banking services. 94.6 percent of the respondents are not using

the mobile banking service. it is perceived that a maximum of 94.6 percent of the

respondents were not aware of the usage of mobile banking services and the

benefits of the services have not yet reached the respondents.

165

Out of total percentage of respondents using e-banking services 67.2

percent of respondents are using the online banking services.32.8 percent of

respondents are not using the online banking services. It is perceived that 67.2

percent of respondents are aware of facilities of online banking services.

Out of the 5.6 percent of the respondents who used Tele banking services

used the services only one time. A vast majority of the respondents did not use

the Tele banking services at all. As other e-banking services played a full-fledged

role respondents were interested in the other e-banking services they did not

bother to use the Tele banking services

166

Table 4.13 Frequency of using of e-banking services

ATM/ Debit

card

Credit

card

Mobile

banking

Online

banking

Tele

banking No. of

times N % N % n % N % n %

Nil 41 8.2 458 91.6 473 94.6 164 32.8 472 94.4

One 166 33.2 31 6.2 23 4.6 112 22.4 28 5.6

Two 125 25.0 11 2.2 4 .8 175 35.0 0 0

Three 40 8.0 0 0 0 0 49 9.8 0 0

Four 58 11.6 0 0 0 0 0 0 0 0

Five and above

70 14.0 0 0 0 0 0 0 0 0


Table 4.13 shows that out of the total customer a maximum of 33.2

percent of the respondents are using the ATM/Debit card service one time in

three months duration. 25 percent of the respondents are using the ATM/Debit

card service twice in 3 months duration, 14 percent of the respondents are using

for five times and above , 11.6 percent of the respondents using for four times

and 8 percent of the respondents using for three times. It is perceived that a

maximum of 91.8 percent of the respondents are using the ATM/Debit card at

least of one time in three months

Out of the 8.4 percent of the respondents who are using the credit card

services 6.2 percent of the respondents are using the credit card service one

time in three months duration and 2.2 percent of the respondents are using the

service two and more times.

Out of the total percent of the respondents 94.6 percent of respondents

are not using mobile banking services. Out of 5.4 percent of respondents who

are using mobile banking services only 8 percent of respondents are using

mobile banking service two times and more times and 4.6 percent of respondents

are using mobile banking services only one time

167

Out the 67.2 percentage of respondents who are using online banking

services 35 percent of respondents access online banking services two times in

three months duration, 22.4 percent of respondents use online banking services

one time during three months duration and 9.8 percent of respondents use the

online banking services three times and more times within three months duration

The table above depicts the usage of Tele banking services by the

respondents. Out of the total respondents using e-banking services only 5.6

percent of respondents use Tele banking services and 94.4 percent of the

respondents did not use the Tele banking services. It is perceived that as they

are using other e-banking services they did not use the Tele banking services.

168

Table 4.14 Ranking of e-banking services

ATM/ Debit

card

Credit

card

Mobile

banking

Online

banking

Tele

banking Ranks

N % N % N % n % N %

1st 374 74.8 71 14.2 49 9.8 80 16.0 38 7.6

2nd 61 12.2 79 15.8 38 7.6 127 25.4 75 15.0

3rd 29 5.8 74 14.8 76 15.2 77 15.4 85 17.0

4th 19 3.8 78 15.6 80 16.0 81 16.2 80 16.0

5th 9 1.8 91 18.2 159 31.8 97 19.4 97 19.4

6th 8 1.6 107 21.4 98 19.6 38 7.6 125 25.0


The table 4.14 depicts the rank of order of preference of the e-banking

services by the respondents. Out of the total respondents, majority (74%) of the

respondents have given first rank to the ATM/Debit card services. Out of the total

respondents 14.2 percent respondents have given first rank to the credit card

services , Out of the total respondent 9.8 percent of the respondents have given

first rank to the mobile banking, 16 percent of the respondents have given first

rank to the online banking service, and 7.6 percent respondents have given first

rank to the Tele banking services.

This part of the analysis provides the information on the views of the respondents using e-banking services with regard to the e-banking service qualities. To understand the e-banking services provided by the banks, six key service quality dimensions been taken for analysis are reliability,

responsiveness, security, easy use, accessibility, efficiency. Under each of key service quality dimension five scales been taken to evaluate the service qualities.

169

Table 4.15 Opinion of the Respondents Regarding Reliability

Sl.no Particulars SA A N DA SDA

1 Relevant and accurate

Information

185

(37%)

143

(28.6%)

131

(26.2%)

23

(4.6%)

18

(3.6%)

2 Updated information 178

(35.6%)

37

(7.4%)

115

(23%)

37

(7.4%)

12

(2.4%)

3 Accurate record 176

(35.2%)

153

(30.6%)

122

(24.4%)

36

(7.2%)

13

(2.6%)

4

More service

attitude(lowest service

charges)

176

(35.2%)

147

(29.4%)

126

(25.2%)

14

(2.8%)

37

(7.4%)

5 .Restricts unauthorized

access

176

(35.2%)

149

(29.8%)

132

(26.4%)

26

(5.2%)

17

(3.4%)


Table 4.15 shows how reliable the respondents are feeling towards the e-

banking services provided by the banks. Out of the total respondents , vast

majority (37 %) of respondents strongly agree that relevant and accurate

information being provided by the banks regarding the e-banking services, a

majority (28.6 %) of the respondents agree that reliable and accurate information

being provided by banks regarding the e-banking services. 26.2 percent of the

respondents did not have any opinion regarding the information. 4.6 percent of

the respondents disagree that the statement and a minority (3.6%) of the

respondents strongly disagree that the banks are providing reliable and accurate

information.

A vast majority (35.6%) of the respondents strongly agree that updated

information being provided by the banks. A majority (31.6%) of the respondents

agree that updated information being provided by the banks. Out of the total

respondents 23 percent of the respondents had no opinion regarding the updated

information provided by the banks. 7.4 percent of the respondents disagreed that

170

banks are providing updated information. A minority (2.4%) of the respondents

strongly disagree that the banks are providing update information.

A vast majority(35.2 %) of the respondents strongly agree that the banks

are maintaining accurate record. A majority(30.6 %) of the respondents agree

that accurate record been maintained by the bank. Out of the total respondents

24.4 percent of the respondents did not have any opinion regarding the

statement. 7.2 percent of the respondents disagreed that banks are providing

update information. A minority (2.6 %) of the respondents strongly disagree that

the banks are providing update information.

Out of the total respondents a maximum of 35.2 percent of the

respondents strongly agree that the banks are having more service attitude in

providing e-banking services. 29.4 percent of the respondents agree that the

banks are having more service attitude, 25.2 percent of the respondents have no

opinion about the statement and 7.4 percent of the respondents disagree that

banks are having more service attitude. A minority (2.8%) of the respondents

strongly disagree that banks are having service attitude.

A vas t majority (35.2 %) of the respondents strongly agree that the e-

banking services of the banks restricts unauthorized access. A majority(29.8%)

of the respondents agree that the e-banking services of banks restricts

unauthorized access. 26.4 percent of the respondents have no opinion about the

statement. 5.2 percent of the respondents disagree that e-banking services

provided by the banks restricts unauthorized access and a minority (3.4%) of the

respondents strongly disagree that the banks restricts unauthorized access

171

Table 4.16 Opinion of the respondents with regard to responsiveness


1 Prompt responses for

online requests

169

(33.8%)

145

(29%)

148

(29.6%)

24

(4.8%)

14

(2.8%)

2 Connects immediately to

bank accounts

177

(35.4%)

160

(32%)

124

(24.8%)

27

(5.4%)

12

(2.4%)

3 Immediate help for

problems or queries

176

(35.2%)

161

(32.2%)

122

(24.4%)

29

(5.8%)

12

(2.4%)

4 Responsive demo and

advertisement

176

(35.2%)

153

(30.6%)

131

(26.2%)

25

(5%)

15

(3%)

5 Provides information with

care and attention

172

(34.4%)

161

(32.2%)

127

(25.4%)

25

(5%)

15

(3%)


Table 4.16 shows that vast majority (33.8%) of the respondents strongly

agree that banks are providing prompt responses for online requests, 29 percent

respondents agree on banks providing prompt responses for online requests,

29.6 percent of the respondents have no opinion on banks providing prompt

responses for online requests. Out of the total respondents 4.8 percent of the

respondents disagree that banks are providing prompt responses for online

requests and a minority (2.8%) of the respondents strongly disagree that banks

are providing prompt responses for online request.

A vast majority (35.4%) of the respondents strongly agree that the banks

connect the customers immediately to bank accounts through e-banking

services. A majority (32 %) of the respondents agree that banks connect the

customers immediately to bank accounts. Out of the total respondents 24.8

percent of the respondents have no opinion about the statement and 5.4 percent

of the respondents disagreed that the bank connects the customers immediately

to bank accounts. A minority (2.4 %) of the respondents strongly disagree that

the banks connect the customers immediately to bank accounts.

172

A vast majority of 35.2 percent of the respondents have strongly agreed

that the banks are playing a very responsive role and are providing immediate

help for problems and queries. A majority of 32.2 percent of the respondents

agreed that the banks are providing immediate help for problems or queries

through e-banking services. 24.4 percent of the respondents have no opinion

about the scale of the service quality that the e-banking services provide

immediate help for the problems and queries, 5.8 percent of the respondents

disagree that the e-banking services provide immediate help for problems and

queries 2.4 percent of the respondents strongly disagree that the banks are

providing immediate help for problems or queries through e-banking services

A vast majority (35.2 percent) of the respondents strongly agree that the

banks are playing very responsible role and are providing responsive demo and

advertisement to make the respondents and people understand about the e-

banking services. A majority (30.6 %) of respondents agree that banks are

providing responsive demo and advertisement to enrich the knowledge of the

people and the bank respondents. More than one fourth(26.2 %) of the

respondents did not express any views regarding the responsive demo and

advertisement. 5 percent of the respondents disagree that banks are providing

responsive demo and advertisement to make people and customer aware of e-

banking services. A minority (3 %) of the respondents strongly disagreed on

banks responsiveness and their providing responsive demo and advertisement.

A vast majority (34.4 %) of the respondents strongly agree on banks’

responsiveness about providing information with care and attention. A majority

(32.2 %) of the respondents agree on banks’ responsiveness about providing

information with care and attention. One fourth (25.4 %) of the respondents did

not express their view on banks’ responsiveness in providing information with

care and attention. 5% of the respondents disagree that banks’ are providing

information with care and attention. A minority (3%) of the respondents strongly

disagree that banks have responsiveness in providing information with care and

attention.

173

Table 4.17 OPINION OF THE RESPONDENTS WITH REGARD TO SECURITY


1 No misuse of personal

information

176

(35.2%)

145

(29%)

140

(28%)

26

(5.2%)

13

(2.6%)

2 Safe with online

transaction

181

(36.2%)

157

(31.4%)

120

(24%)

31

(6.2%)

11

(2.2%)

3 Secure in providing

personal information

175

(35%)

151

(30.2%)

134

(26.8%)

23

(4.6%)

17

(3.4%)

4 ATMs have secure

location

173

(34.6%)

161

(32.2%)

118

(23.6%)

36

(7.2%)

12

(2.4%)

5 Multi-kind security control 168

(33.6%)

159

(31.8%)

127

(25.4%)

31.8

(6.2%)

15

(3%)


Table 4.17 shows that a vast majority (35.2 %) of the respondents strongly agree banks are showing at most care that there is no misuse of personal information of the respondents. A majority (29 %) of the respondents agree that their personal information is not misused. More than one fourth (28%) of the respondents expressed no opinion on misuse of personal information. 5.2 percent of the respondents disagreed that there is no misuse of personal information. A minority (2.6%) of the respondents strongly disagreed that banks are responsible and there is no misuse of personal information. It is inferred that a 35.2 percent of the respondents strongly agreed and 29 percent of the respondents have agreed that the personal information is not been misused by the banks through e-banking channels the respondents have a high opinion regarding the security in the e-banking services. A vast majority (36.2 %) of the respondents strongly agree banks are providing sufficient security to their respondents and they are safe with online transaction. A majority (31.4%) of the respondents agree that they are safe with online transaction while dealing with e-banking services. Nearly one fourth (24%) of the respondents expressed no opinion about banks security measures and respondents safety with online transaction. 6.2 percent of the respondents

174

disagree that banks are providing sufficient security to the e-banking respondents who are dealing with online transactions. A vast minority (2.2 %) of the respondents strongly disagreed that banks are providing security to the e-banking respondents and their safety with online transactions. It is perceived that as 36.2 percent of the respondents strongly agreed and 31.4 percent of the respondents agreed, the respondents have high opinion that they are safe with the online transaction A vast majority (35 %) of the respondents strongly agree that they feel secure in providing personal information while dealing with e-banking services. A majority (30.2 %) of the respondents agree they feel secure in providing personal information to the banks. More than one fourth (26.8%) of the respondents expressed no view on the security provided by the banks to the e-banking respondents. A minority (4.6%) of the respondents disagree that respondents are secure in providing personal information and a vast minority (3.4%) of the respondents strongly disagree that the respondents are secure in providing personal information. A vast majority (34%) of respondents strongly agree that the banks are responsible enough to install the ATMs in secure location. A majority (32.2%) of respondents agree that ATMs are located in secure location. Nearly one fourth (23.6) of the respondents expressed no opinion regarding the security of ATMs location. 7.2 percent of the respondents disagreed that ATMs have secure location and a minority (2.4%) of respondents strongly disagree that the ATMs have secure location. A vast majority (33.6%) of the respondents strongly agree that a multi-kind security control been applied in the provision of e-banking services by the banks. A majority (31.8%) of the respondents agree that the banks have established a multi-kind security control in providing e-banking services. Out of the total respondent one fourth (25.4 %) of the respondents expressed no opinion on banks’ multi-kind security control. 6.2 percent of the respondents disagree that the banks are providing multi-kind security control and a vast minority (3 %) of the respondents strongly disagree that the banks are providing multi-kind security control.

175

Table 4.18 Opinion of the respondents with regard to easy use


1 Service systems are easy

to use

200

(40%)

194

(38.8%)

52

(`10.4%)

41

(8.2%)

13

(2.6%)

2 Easy navigation through

web pages

203

(40.6%)

205

(41%)

47

(9.4%)

29

(5.8%)

16

(3.2%)

3 Systems are clear and

understandable

206

(41.2%)

188

(37.6%)

63

(12.6%)

31

(6.2%)

12

(2.4%)

4 ATMs locations are

reachable

217

(43.4%)

203

(40.6%)

35

(7.0%)

34

(6.8%)

11

(2.2%)

5 Facilitates investment

planning

206

(41.2%)

216

(43.2%)

27

(5.4%)

40

(8.0%)

11

(2.2%)

A vast majority (40%) of the respondents strongly agree that the service

systems are easy to use. A majority (38.8%) of the respondents agree that the

service systems are easy to use. Out of the total respondents 10.4 percent of the

respondents expressed no opinion about the security systems of the banks. 8.2

percent of the respondents disagreed that the service systems are easy to use

and a minority (2.6%) of the respondents strongly disagree that the service

systems are easy to use. It is perceived that the security systems of the banks

are highly implemented and therefore the respondents are easily using the

service systems of the banks through e-banking services.

A vast majority (41 %) of the respondents have agreed that e-banking

services provided by the banks helps the respondents to easily navigate through

the web pages. A majority (40.6 %) of the respondents have strongly agreed that

navigation through web pages been made easy by the banks. Out of the total

respondents 9.4% of the respondents did not express any view regarding the

easy navigation through web pages. 5.8 percent of the respondents disagreed

that navigation through web pages is easy and a minority (3.2%) of the

respondents strongly disagreed that navigation through web pages is easy. It is

176

inferred that through e-banking services the banks are making the respondents

get well versed with online services so that they are capable of navigating

through the web pages.

A vast majority (41.5%) of the respondents strongly agree that the banks

have made the systems clear and understandable. A majority of 37.6 percent of

the respondents agree that the banks’ systems are clear and understandable.

Out of the total respondents 12.6 percent of the respondents gave no opinion

about systems of the banks whether they are clear and understandable or not.

6.2 percent of the respondents disagree that the systems are clear and

understandable and a minority (2.4%) of respondents strongly disagree that the

systems are clear and easily understandable.

A vast majority (43.4 %) of respondents strongly agree that ATM locations

are reachable by the respondents, majority (40.6 %) of the respondents agree

that ATM locations are reachable. Out of the total respondents 7 percent of the

respondents expressed no opinion about the location of the ATMs. 6.8 percent

of the respondents disagree that ATM locations are reachable and minority (2.2

%) of respondents strongly disagreed that ATM locations are reachable. A vast

majority (43.2 %) of the respondents agree that e-banking services of the banks’

investment planning. A majority (41.2 %) of the respondents strongly agree that

the e-banking services facilitate investment planning. Out of the total

respondents 8 % of the respondents disagree that e-banking services of the

banks facilitates investment planning. 5.4 percent of the expressed no opinion

about the banks facilitating investment planning. A minority (2.2%) of the

respondents strongly disagree that the banks facilitates investment planning.

177

Table 4. 19 Opinion of the respondents with regard to accessibility


1 Available all 24 hrs/day,

7 days a week

200

(40.0%)

208

(41.6%)

47

(9.4%)

32

(6.4%)

13

(2.6%)

2 Any time conduct of

transactions

199

(39.8%)

212

(42.4%)

42

(8.4%)

33

(6.6%)

14

(2.8%)

3

Able to get on site

quickly and reach the

bank immediately

199

(39.8%)

206

(41.2%)

55

(11.0%)

22

(4.4%)

18

(23.6%)

4 Easy proximity 196

(39.2%)

207

(41.4%)

49

(9.8%)

38

(7.6%)

10

(2%)

5 Facilitates online

shopping

203

(40.6

210

(42%)

44

(8.8%)

31

(6.2%)

12

(2.4%)


Vast majority (41.6%) respondents agree that e-banking services are

available all 24 hrs / day, 7 days a week to make the respondents easily access

the banking services. 40.6 percent of the respondents strongly agree that the e-

banking services are available all 24 hours per day all days a week. 9.4 percent

of the respondents did not have any opinion regarding the availability of e-

banking services. 6.4 percent of the respondents disagree that the e-banking

services are available 24 hours per day , 7 days a week and 2.6 percent of the

respondents disagree that the e-banking services are available all 24 hours per

day, 7days a week.

A vast majority (42.4 %) of the respondents agree that because of the

accessibility of e-banking services anytime conduct of transaction is possible.

Majority (39.8%) of the respondents strongly agree that anytime conduct of

transaction is possible. 8.4 percent of the respondents did not give any opinion

regarding the anytime conduct of transaction. 6.6 percent of the respondents

disagree that anytime conduct of transaction is possible. A minority (2.8%)

178

percent of the respondents strongly disagree that anytime conduct of transaction

is possible.

A vast majority (41.2 %) of the respondents agree that they are able to get

on site quickly and reach the bank immediately because of e-banking services.

A majority (39.8%) of respondents strongly agree that they are able to get on site

quickly and reach the bank immediately. Out of the total respondents 11 percent

of the respondents did not give any opinion about the statement. 4.4 percent of

the respondents disagree that they are able to get on site quickly and reach the

bank immediately and 3.6 percent of the respondents strongly disagree that they

are able to get site quickly and reach the bank immediately.

Vast majority (41.4 %) of the respondents agreed that they have easy

proximity with the banks through e-banking services, a majority (39.2 %) of the

strongly agreed that they have easy proximity with the banks. Out of the total

respondents 9.8 percent of the respondents have no opinion about easy

proximity with banks 7.6 percent of the respondents disagree that they have

easy proximity with banks and 2. Percent of the respondents strongly disagree

that they have easy proximity with the banks.

Vast majority (42 %) of the respondents agree that e-banking services

facilitate online shopping. A majority (40.6%) of the respondents strongly agree

that e-banking services facilitate online shopping. Out of the total respondents

8.8 % of the respondents did not give any opinion that e-banking services

facilitate online shopping. 6.2 percent of the respondents disagreed that e-

banking services facilitates online shopping and a minority(2.4 %) of the

respondents strongly disagree that e-banking services facilitate online shopping

179

Table 4.20 Opinion of the respondents with regard to efficiency


1 Access and contact 197

(39.4%)

216

(43.2%)

43

(8.6%)

31

(6.2%)

13

(2.6%)

2 Care and speed of using

the websites

197

(39.4%)

219

(43.8%)

49

(9.8%)

19

(3.8%)

16

(3.2%)

3 Staff 203

(40.6%)

204

(40.8%)

58

(11.6%)

25

(5%)

10

(2%)

4 Speedy supply of

information

212

(42.4%)

222

(44.4%)

34

(6.8%)

22

(4.4%)

10

(2%)

5 Standardized services 220

(44%)

225

(45%)

25

(5%)

20

(4%)

10

(2%)


The above table reveals that vast majority (43.2%) of the respondent

agreed that easy access and contact is done through e-banking services, 39.4

percent of the respondents strongly agree that access and contact are easy

through e-banking services. Out of the total respondents 8.6 percent of the

respondents expressed no opinion on access and contact. 6.2 percent of the

respondents disagree that access and contact are easily done through e-banking

services and 2.6 percent of the respondents strongly disagree that access and

contact are easily made.

Vast majority (43.8 %) of the respondents agreed that banks are showing

at most efficiency in showing care and speed in using the websites. 39.4 percent

of the respondents strongly agree that banks are showing efficiency in care and

speed of using the websites. Out of the total respondents 9.8 percent of the

respondents expressed no opinion regarding care and speed of using the

websites. 3.8 percent of the respondents disagree that efficiency is shown in

care and speed in using the websites.3.2 percent of the respondents strongly

disagree that efficiency is shown in care and speed in using the websites.

180

A vast majority (40.8 %) of the respondents agree that efficient staff are in

the banks facilitate e-banking services. 40.6 percent of the respondents strongly

agree that efficient staff are there in the bank. Out of the total respondents 11.6

percent of the respondents expressed no opinion regarding staff. 5 percent of the

respondents disagree that there are efficient staff and 2 percent of the

respondents strongly disagreed there are efficient staffs in the banks.

A vast majority (44.4%) of the respondents agree that speedy supply of

information been provided by the e-banking services of the banks. 42.4 percent

of the respondents strongly agreed that speedy supply of information if possible

by the banks through e-banking services. Out of the total respondents 6.8

percent of the respondents have no opinion regarding speedy supply of

information. 4.4 percent of the respondents disagree that the supply of

information in speed. And 2 percent of the respondents strongly disagreed the

speedy supply of information is prevailing because of e-banking services.

A vast majority (45%) of the respondent agreed that standardized services

being provided by the banks through e-banking services. 44 percent of the

respondents strongly agreed that the banks are providing e-banking services.

Out of the total respondents 5 percent of the respondents did not give any

opinion regarding standardized services. 4 percent of the respondents disagree

that standardized services been provided. 2 percent of the respondents strongly

disagreed that standardized services being provided by banks

181

This part of the analysis deals with the problems faced by the respondents while dealing with the e-banking services of the banks

Table 4.21

Ranking of problem of e-banking services

Inadequate knowledge about the

usage of e-channels

Unsuitable location of

ATMs

No of ATMS

not sufficient

Poor network

Lack of interest

from respondents

Pass word

forgotten

Card misplaced

Misuse of card

and frauds

Lack of confidence

Technical hurdles of ATMs

and smart card

Ranks

n % n % N % n % N % n % n % N % n % n %

1st 47 9.4 67 13.4 52 10.4 14 2.8 30 6.0 38 7.6 35 7.0 26 5.2 55 11.0 37 7.4

2nd 66 13.2 46 9.2 53 10.6 39 7.8 169 33.8 75 15.0 64 12.8 313 62.6 296 59.2 227 45.4

3rd 46 9.2 31 6.2 60 12.0 59 11.8 52 10.4 59 11.8 129 25.8 27 5.4 12 2.4 83 16.6

4th 57 11.4 61 12.2 90 18.0 202 40.4 130 26.0 170 34.0 169 33.8 14 2.8 18 3.6 70 14.0

5th 67 13.4 61 12.2 64 12.8 25 5.0 6 1.2 23 4.6 30 6.0 19 3.8 12 2.4 5 1.0

6th 50 10.0 46 9.2 41 8.2 35 7.0 24 4.8 31 6.2 20 4.0 23 4.6 22 4.4 17 3.4

7th 44 8.8 55 11.0 35 7.0 33 6.6 21 4.2 29 5.8 15 3.0 19 3.8 21 4.2 13 2.6

8th 55 11.0 58 11.6 46 9.2 39 7.8 30 6.0 29 5.8 17 3.4 25 5.0 26 5.2 20 4.0

9th 50 10.0 45 9.0 40 8.0 38 7.6 33 6.6 38 7.6 17 3.4 26 5.2 30 6.0 22 4.4

10th 18 3.6 30 6.0 19 3.8 16 3.2 5 1.0 8 1.6 4 .8 8 1.6 8 1.6 6 1.2

182

The table 4.21 shows that A majority (13.4%) of the respondents have

given fifth rank for the problem inadequate knowledge about the usage of e-

services, 13.2 percent of the respondents have given second rank, 11.4 percent

of the respondents have given fourth rank, 11 percent of the respondents have

given eighth rank, 10 percent of the respondents have given sixth rank,, another

10 percent have given ninth rank. 9.4 percent of the respondents have given first rank, 9.2 percent of the respondents have given third rank, 8.8 percent of the

respondents have given seventh rank and a minority (3.6 %) of the respondents

have given tenth rank for the problem. The problem unsuitable location of ATMs ranked by the respondents in

the following way; a majority(13.4%) ranked at first place, 12.2 percent ranked at fourth place, another 12.2 percent ranked at fifth place, 11.6 percent of the

respondents ranked at eighth place, 11 percent of the respondents ranked at

seventh place, 9.2 percent ranked at sixth place , another 9.2 percent of the

respondents ranked the problem at second place 9 percent ranked at ninth place

6.2 percent ranked at third place and 6 percent ranked at tenth place. The next problem faced by the respondents is number of ATMs not

sufficient was ranked by them in the following way, a vast majority(18%) of

respondents ranked at the fourth place, 12.8 percent ranked at fifth place, 12

percent ranked at the third place, 10.6 percent ranked at second place, 10.4 percent ranked at first place, 9,2 percent ranked at eighth place, 8.2 percent

ranked at sixth place, 8 percent ranked at ninth place 7 percent ranked at the

seventh place and 3.8 percent ranked at tenth place . The next problem faced by the respondents is poor network. A vast

majority(40%) of the respondents ranked the problem at the fourth place. 11.8

percent of the respondents ranked at third place, 7.8 percent of the respondents

ranked at the second place, another 7.8 percent of respondent ranked at the

eighth place 7.6 percent of the respondents ranked at the ninth place, 7 percent

ranked at the sixth place 6.6 percent ranked at the seventh place, 5 percent

ranked at the fifth place, 3.2 percent ranked at the tenth place 2.8 percent ranked

the first place.

183

Another problem faced by the respondents is lack of interest from the

respondents. A majority (33.8%) of the respondents ranked the problem at the

second place, 26 percent respondents ranked the problem at the fourth place,

10.4 percent of the respondents ranked the problem at the third place. 6.6

percent of the respondents ranked the problem at the ninth place, 6 percent of

the respondents ranked the problem at the first place, next 6 percent of the respondent ranked the problems at the ninth place. 4.8 percent of the

respondents ranked the problem at the sixth place ,4.2 percent of the

respondents ranked the problem at the seventh place,1.2 percent of the

respondents ranked the problem at the fifth place and 1 percent of the

respondents ranked the problem at the tenth place. Another problem faced by the respondents is password forgotten by them.

A majority(34%) of the respondents ranked the problem at the fourth place, 15

percent of the respondents ranked the problem at the second place, 7.6 percent

of the respondents ranked problem at the first level, another 7.6 percent of the

respondents ranked the problem at the ninth place, 6.2 percent of the

respondents ranked the problem at the seventh level, another 5.8 percent of the

respondents ranked the problem at the eighth level. 4.6 percent of the

respondents ranked the problem at the fifth level and 1.6 percent of the

respondents ranked the problem at the tenth level. Another problem faced by the respondents is card misplaced. Out of the

total respondent, a vast majority(33.8%) of the respondents ranked the problem

at the fourth level, 25.8 percent of the respondents ranked the problem at the

third level, 12.8 percent of the respondents ranked the problem at the second level, 7 percent of the respondents ranked the problem at the first level, 6 percent

of the respondents ranked the problem at the fifth level, 4 percent of the

respondents ranked the problem at the sixth level, 3.4 percent of the respondents

ranked the problem at the eighth level, another 3.4 percent of the respondents

ranked at the ninth level, 3 percent of the respondents ranked the problem at the seventh level .8 percent of the respondents ranked the problem at the tenth level.

184

Another problem faced by the respondents is misuse of card and frauds.

A vast majority(62.6 %) of the respondents ranked the problem at the second

level. 5.4 percent of the respondents ranked the problem at the third level, 5.2

percent of the respondents ranked the problem at the first level, another 5.2

percent of the respondents ranked the problem at the ninth level, 5 percent of the

respondents ranked the problem at the eighth level, 4.6 percent of the respondents ranked at sixth level, 3.8 percent of the respondents ranked at fifth

level, another 3.8 percent of the respondents ranked at seventh level, 2.8

percent of the respondents ranked at fourth level, and 1.6 percent of the

respondents ranked the problem at the tenth level. Another problem faced by the respondents in using e-banking services is lack of confidence. A vast majority (59.2%) of the respondents ranked the

problem of lack of confidence at the second level. 11 percent of the respondents

ranked the problem at the first level, 6 percent of the respondents ranked at the

ninth level, 5.2 percent of the respondents ranked at the eighth level, 4.4 percent

of the respondents ranked at the sixth level, 4.2 percent of the respondents

ranked at the problem at the seventh level, 3.6 percent of the respondents

ranked at fourth level, 2.4 percent of the respondents ranked at third level,

another 2.4 percent of the respondents ranked at fifth level and 1.6 percent of

the respondents ranked the problem at tenth level. Another problem faced by the respondents is technical hurdles of ATMs

and smart card. Out of the total respondents a vast majority (45.4%) of the

respondents ranked the problem at the second level, 16.6 percent of the

respondents ranked the problem at the third level, 14 percent of the respondents ranked at fourth level, 7.4 percent of the respondents ranked problem at the first

level, 4.4 percent of the respondents ranked the problem at the ninth level, 4

percent of the respondents ranked the problem at the eighth level, 3.4 percent of

the respondents ranked at the sixth level, 2.6 percent of the respondents ranked

at seventh level, 1.2 percent of the respondents ranked at the tenth level and 1 percent of the respondents ranked at fifth level.

185

Table 4.22 Opinion and satisfaction level of respondents with regard to


Sl.no Various qualities of e-banking services

No.of respondents

(n=500) Percentage

(100%)

1 Reliability

Low 182 36.4 High 318 63.6 Mean: 19.45 / Median: 20.00 / S.D.: 4.941 / Min.: 5 / Max.: 25 2 Responsiveness Low 174 34.8 High 326 65.2 Mean: 19.51 / Median: 20.00 / S.D.: 4.734 / Min.: 5 / Max.: 25 3 Security Low 172 34.4 High 328 65.6 Mean: 19.47 / Median: 20.00 / S.D.: 4.778 / Min.: 5 / Max.: 25 4 Easy use Low 213 42.6 High 287 57.4 Mean: 20.54 / Median: 20.00 / S.D.: 4.645 / Min.: 5 / Max.: 25 5 Accessibility Low 199 39.8 High 301 60.2 Mean: 20.49 / Median: 20.00 / S.D.: 4.595 / Min.: 5 / Max.: 25 6 Efficiency Low 208 41.6 High 292 58.4 Mean: 20.82 / Median: 20.00 / S.D.: 4.423 / Min.: 5 / Max.: 25 7 Overall e-banking services qualities Low 240 48 High 260 52 Mean: 120.28 / Median: 120.00 / S.D.: 13.159 / Min.: 85 / Max.: 150


186

While evaluating the service quality, reliability, the five scales i.e.,

Relevant and accurate information, Updated information, Accurate record, More

service attitude (lowest service charges), restricts unauthorized access are taken

in to consideration. After evaluating the scales it is considered that a vast

majority (63.6%) of the respondents considered the reliability level on the banks

is very high. And 36.4 percent of the respondents considered that reliability level

is low with regard to e-banking services qualities. The mean value 19.45 shows

the satisfaction level of the respondents regarding the reliability on e-banking

services provided by the banks.

After considering the five scales Prompt responses for online requests,

Connects immediately to bank accounts, immediate help for problems or queries,

Responsive demo and advertisement, Provides information with care and

attention, the service quality responsiveness is evaluated. The mean value

19.51 shows the satisfaction level of the respondents. 34.8 percent of the

respondents evaluated that the banks’ responsiveness is low.

Vast majority(65.6%) of the respondents evaluated that the security in e-

banking services provided by the banks is high after evaluating the five scales no

misuse of personal information, safe with online transaction, secure in providing

personal information, ATMs have secure location, Multi-kind security control.

34.4 percent of the respondents evaluated that the e-banking services of the

banks are providing low security. The mean value 19.47 depicted in the table the

respondents’ satisfactory level.

Vast majority (57.4%) of the respondents evaluated that the e-banking

services provided by the banks have high easy use after taking into consideration

the five scales, systems are clear and understandable, ATMs locations are

reachable, facilitates investment planning, service systems are easy to use, easy

navigation through web pages. 42.6 percent of the respondents evaluated that

the service quality easy use provided by the e-banking services of banks is low.

187

The mean value 20.54 of easy use shows the high level satisfaction of the

respondents.


services provide high accessibility to their bank operations after evaluating the

service quality scales- available all 24 hrs/day, 7 days a week, anytime conduct

of transaction, able to get on site quickly and reach the bank immediately, easy

proximity, facilitates online shopping. but 39.8 percent of the respondents

evaluated the e-banking services of banks as low. The mean value 20.49 shows

the high level confidence of the respondents’ regarding easy use.


services provided by the banks have high efficiency after evaluating the scales

access and conduct, care and speed of using the websites, staff, speedy supply

of information , standardized service and 41.6 percent of the respondents

evaluated that the e-banking services provided by the banks are having low

efficiency. The mean value 20.82 shows the high level satisfaction of the

respondents regarding efficiency

More than one half (52%) of the respondents evaluated that the banks are

providing high performance of e-banking services taking into consideration all the

six service qualities (reliability, responsiveness, security, easy use accessibility,

efficiency). Less than one half (48%) of the respondents evaluated that the e-

banking services provided by banks are having low performance. The mean

value 120.28 shows the high satisfaction of the respondents with regard to the

service qualities e-banking services.

188

TEST OF HYPOTHESES In this section, the hypotheses formulated are verified and tested using the

various statistical techniques and inference drawn based on the result

HYPOTHESIS : 1 There is a significant difference between nationalized banks and private

banks of the respondents and their e-banking services.

Table 4.23

Mann-Whitney Test Difference between nationalized banks and private banks of the

respondents and their e-banking services

Sl.no Nature of bank Mean Rank Sum of Ranks

1 ATM/ Debit card

National (n=250) 257.42 64355.00

Private (n=250) 243.58 60895.00

2 Credit card

National (n=250) 245.79 61446.50

Private (n=250) 255.21 63803.50

3 Mobile banking

National (n=250) 259.24 64810.50

Private (n=250) 241.76 60439.50

4 Online banking

National (n=250) 249.80 62450.00

Private (n=250) 251.20 62800.00

5 Tele banking

National (n=250) 251.73 62933.00

Private (n=250) 249.27 62317.00

189

Test Statistics (a)

ATM/ Debit

card Credit card

Mobile banking

Online banking

Tele banking

Mann-

Whitney U 29520.000 30071.500 29064.500 31075.000 30942.000

Wilcoxon W 60895.000 61446.500 60439.500 62450.000 62317.000

Z -1.407 -.741 -1.387 -.110 -.194

Asymp. Sig.

(2 -tailed) .159 .459 .165 .912 .846

Source: Computed from the Primary Data

a Grouping Variable: Nationalized / Private

The table 4.23 indicates the respondents’ opinion perceived regarding the

e-banking services provided by nationalized banks and private banks. The

respondents perceived that the nationalized banks are providing best ATM/Debit

card services with the mean value 257.42, the best credit card services are

provided by private banks with the mean value 255.21, mobile banking services

are provided in the best way by the nationalized banks with the mean value

259.24, Online banking services are provided in the best manner by nationalized

banks with the mean value 251.20 and Tele banking services are provided in a

best manner by nationalized banks with the mean value 251.73, though the

highest mean value shows the best services by the banks the other sector of the

banks are also providing the e-banking services in the best manner with not

much difference in the mean value. There is much less difference between the

services provided by the nationalized banks and the private banks.

The table reveals that there is no significant difference between

nationalized banks and private banks of the respondents and their nature of e-

banking services.

190

Research hypothesis H1 : There is a significant difference between nationalized banks and private


Null hypothesis H 0: There is no significant difference between nationalized banks and private


Statistical test

Mann-Whitney test was used to test the above hypothesis

Findings

The table 4.23 reveals that there is no significant difference between

nationalized banks and private banks of the respondents and their e-banking

services. [ATM/Debit card=.159> 0.05/ Credit card=.459>.0.05/mobile

banking=.165>0.05/online banking=.912>0.05/Tele banking =.846>0.05]

Hence, the calculated value is greater than the table value. So the

research hypothesis is rejected and the null hypothesis is accepted.

191

HYPOTHESIS: 2 There is a significant difference between nationalized banks and private

banks of the respondents and their various problems faced in e-banking services.

Table 4.24 Mann-Whitney Test

Difference between nature of bank of the respondents and the various problems faced by the respondents of e-banking channels

Sl.no Nature of banks Mean Rank

Sum of ranks

1 Inadequate knowledge about the usage of e-channels

National (n=250) 269.92 67481.00 Private (n=250) 231.08 57769.00 2 Unsuitable location of ATMs National (n=250) 252.08 63020.50 Private (n=250) 248.92 62229.50 3 No of ATMS not sufficient National (n=250) 247.90 61976.00 Private (n=250) 253.10 63274.00 4 Poor network National (n=250) 237.27 59318.50 Private (n=250) 263.73 65931.50 5 Lack of interest from customers National (n=250) 253.15 63288.00 Private (n=250) 247.85 61962.00 6 Pass word forgotten National (n=250) 232.62 58154.00 Private (n=250) 268.38 67096.00 7 Card misplaced National (n=250) 250.98 62746.00 Private (n=250) 250.02 62504.00 8 Misuse of card and frauds National (n=250) 245.11 61278.00 Private (n=250) 255.89 63972.00 9 Lack of confidence National (n=250) 242.87 60717.50 Private (n=250) 258.13 64532.50

10 Technical hurdles of ATMs and smart card National (n=250) 257.30 64324.50 Private (n=250) 243.70 60925.50

192

Test Statistics (a)


usage of e-channels


ATMs

No of ATMS not sufficient

Poor network

Lack of interest

from customers

Pass word

forgotten Card

misplaced Misuse of card and frauds

Lack of confidence

Technical hurdles of ATMs and

smart card

Mann-

Whitney

U

26394.000 30854.500 30601.000 27943.500 30587.000 26779.000 31129.000 29903.000 29342.500 29550.500

Wilcoxon

W 57769.000 62229.500 61976.000 59318.500 61962.000 58154.000 62504.000 61278.000 60717.500 60925.500

Z -3.024 -.246 -.405 -2.122 -.423 -2.834 -.077 -.960 -1.328 -1.110

Asymp.

Sig. re

(2-tailed)

.002 .805 .686 .034 .672 .005 .938 .337 .184 .267


a Grouping Variable: Nationalized / Private

193

The table 4.24 indicates the problems faced by the respondents while

using the e-banking services. According to the opinions given by the respondents

it is perceived that the respondents using e-banking services of nationalized

banks are having inadequate knowledge about the usage of e channels with the

highest mean value of 269.92. The respondents opinion that nationalized banks

are having unsuitable locations of ATMs with the highest mean value of 252.08.

The respondents of private banks feel that the banks are not having sufficient

ATMs with the highest mean value of 253.10. The respondents of the private

banks perceive that the private banks are having poor network with the highest

mean value of 263.73. the respondent of the nationalized bank with the highest

mean value of 253.15 perceive that there is lack of interest from the customers in

doing the e-banking services. The respondents of the private bank with the

highest mean value of 268.38 perceive that they are forgetting the password.

The respondents of the private banks and the nationalized banks both perceive

that they are misplacing the cards with the mean value of 250.02 and 250.98

respectively. The respondents of private banks view that there is a maximum

misuse of cards and frauds with the mean value of 255.89. the respondents of

the private banks report that they lack confidence in the banks with a mean value

of 258.13 and the respondents of the nationalized banks perceive that they are

more technical hurdles of ATMs and smart card with the mean value of 257.30.


nationalized banks and private banks of the respondents and their various

problems faced in e-banking services.

Research hypothesis H1 : There is a significant difference between nationalized banks and private

banks of the respondents and their various problems faced in e-banking

services.

194

Null hypothesis H0 : There is no significant difference between nationalized banks and private

banks of the respondents and the various problems faced in e-banking

services.

Statistical test

Mann Whitney test was used to test the above hypothesis

Findings


nature of bank of the respondents and their various problems faced in e-banking

services. [inadequate knowledge about the usage of e channels =.002<0.05/

unsuitable locations of ATMs=.805>0.05/, number of ATMs not

sufficient=.686>0.05, poor network=0.034<0.05/ lack of interest from the

customers=.672>0.05/ password forgotten=.005<0.05/ card misplaced

= .938>0.05/ misuse of cards and frauds=.337>0.05/, lack confidence

=.184>0.05,technical hurdles of ATMs and smart card=.267>0.05]. Therefore,

the calculated value is greater than table value.

So the research hypothesis rejected and the null hypothesis accepted.

195

HYPOTHESIS: 3 There is a significant difference between age, gender, occupation,

education and monthly income of the respondents and their overall e-banking

services qualities.

Research hypothesis : 3.1

H 1 : There is a significant association between age of the respondents and

their overall e-banking services qualities.

Null hypothesis H 0 : There is no significant association between age of the respondents and


Statistical test Chi-square test was used to test the above hypothesis

196

Table 4. 25 Association between age of the respondents and the qualities of overall e-

banking services qualities Age

Sl.no Various

dimensions of e-banking service

Below 25yrs (n=19)

26 to 35yrs

(n=120)

36 to 45yrs

(n=209)

46 to 55yrs

(n=125)

56yrs &

above (n=27)

Statistical inference

1 Reliability

Low 7 (36.8%)

42 (35%)

78 (37.3%)

46 (36.8%)

9 (33.3%)

High 12 (63.2%)

78 (65%)

131 (62.7%)

79 (63.2%)

18 (66.7%)

X2=.298 Df = 4

P > 0.05 Not

Significant 2 Responsiveness

Low 6 (31.6%)

42 (35%)

69 (33%)

47 (37.6%)

10 (37%)

High 13 (68.4%)

78 (65%)

140 (67%)

78 (62.4%)

17 (63%)

X2=.874 Df = 4

P > 0.05 Not

Significant 3 Security

Low 8 (42.1%)

44 (36.7%)

72 (34.4%)

43 (34.4%)

5 (18.5%)

High 11 (57.9%)

76 (63.3%)

137 (65.5%)

82 (65.6%)

22 (81.5%)

X2=3.791 Df = 4

P > 0.05 Not

Significant 4 Easy use

Low 10 (52.6%)

45 (37.5%)

85 (40.7%)

63 (50.4%)

10 (37%)

High 9 (47.4%)

75 (62.5%)

124 (59.3%)

62 (49.6%)

17 (63%)

X2=5.829 Df = 4

P > 0.05 Not

Significant 5 Accessibility

Low 11 (57.9%)

52 (43.3%)

73 (34.9%)

52 (41.6%)

11 (40.7%)

High 8 (42.1%)

68 (56.7%)

136 (65.1%)

73 (58.4%)

16 (59.3%)

X2=5.471 Df = 4

P > 0.05 Not

Significant 6 Efficiency

Low 8 (42.1%)

45 (37.5%)

90 (43.1%)

58 (46.4%)

7 (25.9%)

High 11 (57.9%)

75 (62.5%)

119 (56.9%)

67 (53.6%)

20 (74.1%)

X2=4.932 Df = 4

P > 0.05 Not

Significant

7 Overall e-banking services qualities

Low 12 (63.2%)

55 (45.8%)

93 (44.5%)

68 (54.4%)

12 (44.4%)

High 7 (36.8%)

65 (54.2%)

116 (55.5%)

57 (45.6%)

15 (55.6%)

X2=5.190 Df = 4

P > 0.05 Not

Significant


197

The table 4.25 shows the association of age group respondents with e-

banking services qualities.

54.2 percent of the respondents of the age group of 26 to 35 years, 55.5

percent of respondents of the age group of 36 to 45 years, 55.6 percent of the

respondents of the age group of 56 years and above age perceived that the

overall e-banking services qualities are high. 63.2 percent of age group of below

25 years and 55.6 percent of 46 to 55 years perceived that the overall e-banking

services qualities are low.

This indicates that there is no significant association between age of the

respondents and their overall e-banking services qualities [Reliability = .990 >

0.05 / Responsiveness = .928 > 0.05/ Security = .435 > 0.05 / Easy use =.212 >

0.05/ Accessibility = .242 > 0.05 / Efficiency = .294 > 0.05 / Overall e-banking

services qualities = .268 > 0.05]. The calculated value is greater than the table

value.

Findings The table 4.25 reveals that there is no significant association between age

of the respondents and their overall e-banking services qualities [Reliability =

.990 > 0.05 / Responsiveness = .928 > 0.05/ Security = .435 > 0.05 / Easy use

=.212 > 0.05/ Accessibility = .242 > 0.05 / Efficiency = .294 > 0.05 / Overall e-

banking services qualities = .268 > 0.05]. The calculated value is greater than the

table value. Therefore research hypothesis is rejected and the null hypothesis is

accepted.

198

Research hypothesis : 3.2 H : There is a significant difference between gender of the respondents and


Null hypothesis

H 0 : There is no significant difference between gender of the respondents and


Statistical test Student ‘t’ test was used to test the above hypothesis

Table 4.26

Cross tabulation on gender and the qualities of e-banking services T-Test

Sl.no Gender Mean S.D Statistical inference

1 Reliability Male (n=375) 19.52 5.096 Female (n=175) 19.24 4.457

T = .548 P > 0.05

Not Significant 2 Responsiveness Male (n=375) 19.62 4.814 Female (n=175) 19.18 4.489

T = .883 P > 0.05

Not Significant 3 Security Male (n=375) 19.57 4.606 Female (n=175) 19.17 5.267

T = .821 P > 0.05

Not Significant 4 Easy use Male (n=375) 20.62 4.674 Female (n=175) 20.30 4.565

T = .650 P > 0.05

Not Significant 5 Accessibility Male (n=375) 20.72 4.524 Female (n=175) 19.82 4.756

T = 1.910 P < 0.05

Significant 6 Efficiency Male (n=375) 21.10 4.302 Female (n=175) 19.97 4.685

T = 2.494 P < 0.05

Significant


Male (n=375) 121.15 12.867 Female (n=175) 117.68 13.726

T = 2.565 P < 0.05

Significant

Source: Primary Data Df = 498

199

The table 4.26 shows the mean value depicting gender level satisfaction

with regard to each service quality dimension and overall e-banking services

qualities. Compared to mean value of female gender 117.68 the mean value of

male gender 121.15 shows the male gender satisfied with the e-banking services

qualities.

The above table reveals that there is a significant difference between

gender of the respondents and their overall e-banking services qualities

[Reliability = .584 > 0.05/ Responsiveness = .377 > 0.05/ Security = .412 > 0.05/

Easy use = .516 > 0.05 / Accessibility = .057 < 0.05/ Efficiency = .013 < 0.05/

Overall e-banking services qualities = .011 < 0.05].

Findings The table 4.26 reveals that there is a significant difference between




Overall e-banking services qualities = .011 < 0.05]. As the calculated value less

than table value, the research hypothesis is accepted and the null hypothesis is

rejected. It is inferred that the different age group of respondents are getting

satisfaction with few qualities of e-banking services.

200

Research hypothesis: 3.3 H1 : There is a significant difference between occupation of the respondents

and their overall e-banking services qualities.

Null hypothesis

H0 : There is no significant difference between occupation of the respondents


Statistical test Oneway ANOVA ‘f’ test was used to test the above hypothesis

Table 4.27

Association between occupation and the qualities of e-banking services Oneway ANOVA

Sl.no Occupation Mean S.D SS Df MS Statistical inference

1 Reliability Between Groups 44.691 4 11.173

Professional (n=118)

19.82 4.884

Agriculturist (n=27) 18.74 6.118

Businessman (n=105)

19.09 4.834

salaried class (n=225)

19.51 4.857

Others (n=25)

19.44 5.237

Within Groups 12137.059 495 24.519

F = .456 P > 0.05

Not Significant

2 Responsiveness Between Groups 6.039 4 1.510


19.50 4.928


F = .067 P > 0.05

Not Significant

201

Businessman (n=105)

19.69 4.518


19.43 4.592

Others (n=25)

19.36 5.032

Within Groups 11176.929 495 22.580 3 Security Between Groups 47.181 4 11.795


19.53 5.024


Businessman (n=105)

19.67 4.185


19.38 4.851

Others (n=25)

20.28 3.900

Within Groups 11343.427 495 22.916

F = .515 P > 0.05

Not Significant

4 Easy use Between Groups 86.310 4 21.578


20.47 4.724


Businessman (n=105)

20.90 4.557


20.36 4.451

Others (n=25)

21.88 3.919

Within Groups 10677.968 495 21.572

F = 1.000 P > 0.05

Not Significant

5 Accessibility Between Groups 32.234 4 8.059


20.51 4.574

F = .380 P > 0.05

Not Significant

202


Businessman (n=105)

20.27 4.612


20.49 4.536

Others (n=25)

20.36 5.619

Within Groups 10504.748 495 21.222 6 Efficiency Between Groups 231.584 4 57.896


21.06 3.966


Businessman (n=105)

21.33 3.626


20.82 4.479

Others (n=25)

20.40 4.252

Within Groups 9530.854 495 19.254

F = 3.007 P < 0.05

Significant


Between Groups 603.261 4 150.815


120.88 13.163


Businessman (n=105)

120.93 12.728


119.99 13.161

Others (n=25) 121.72 12.982

Within Groups 85809.539 495 173.353

F = .870 P > 0.05

Not Significant


203

The table 4.27 shows the mean value calculated on the opinions

perceived by the respondents of different occupational groups regarding the e-

banking services qualities provided by banks.

The reliability level of professionals regarding e-banking service quality

shows the highest mean value of 19.82

The responsiveness of banks in providing e- banking services in the

opinion of the businessmen shows the highest mean value of 19.69.

The security provided by the banks viewed by the other occupational

group with the high mean value of 20.28.

The other occupational group has perceived the easy use of e-banking

services with the highest mean value of 21.88.

The overall mean value of professional respondents is 120.88, agriculturist

is 116.22, businessman is 120.93, salaried class is 119.00, others is 121.72 with

regard to overall e-banking services qualities.


occupation of the respondents and the qualities of the overall e-banking services

[Reliability = .768 > 0.05/Responsiveness = .992 > 0.05/ Security = .725 > 0.05/

Easy use = .407 > 0.05/ Accessibility = .823 > 0.05/ Efficiency = .018 < 0.05/

Overall e-banking services qualities = .482 > 0.05]. Hence, the calculated value

is greater than table value.

Though the table shows that there is no difference between the

occupation of the respondents and the overall e-banking services qualities the

mean value shown by the other occupational group and agriculturist is more as

they have come in the agreed level category to gain more value, though they

have used the e-banking services for one time. Their satisfaction level is more.

204

But as the satisfaction level of the salaried class, business men , professionals is

high even though they use the e-banking services more than one or two times.

Findings The table 4.27reveals that there is no significant difference between

occupation of the respondents and their overall e-banking services qualities


Easy use = .407 > 0.05/ Accessibility = .823 > 0.05/ Efficiency = .018 <

0.05/qualities of overall e-banking services = .482 > 0.05]. As, the calculated

value greater than the table value, the research hypothesis is rejected and the

null hypothesis is accepted.

205

Research hypothesis: 3.4 H 1 : There is a significant difference between educational qualification of the

respondents and their overall e-banking services qualities.

Null hypothesis

H0 : There is no significant difference between educational qualification of the



Table 4.28 Oneway ANOVA difference between educational qualification of the

respondents and the qualities of overall e-banking services

Sl.no Educational qualification

Mean S.D SS Df MS Statistical inference

1 Reliability


Below HSC (n=47) 18.74 4.316

Graduate (n=79) 20.86 4.814

Postgraduate

(n=261) 19.33 4.870

Professional

(n=113) 19.04 5.301

Within Groups 11977.926 496 24.149

F = 2.813

P < 0.05

Significant

2 Responsiveness


Below HSC (n=47) 20.64 3.467

Graduate (n=79) 18.66 5.378

Postgraduate (n=261)

19.40 4.820

F = 2.040

P > 0.05

Not

Significant

206

Professional

(n=113) 19.88 4.430

Within Groups 11046.687 496 22.272

3 Security


Below HSC (n=47) 19.00 4.778

Graduate (n=79) 18.44 5.247

Postgraduate

(n=261) 19.77 4.714

Professional

(n=113) 19.70 4.524

Within Groups 11267.470 496 22.717

F = 1.807

P > 0.05

Not

Significant

4 Easy use


Below HSC (n=47) 19.77 4.664

Graduate (n=79) 20.43 5.098

Postgraduate

(n=261) 20.63 4.656

Professional

(n=113) 20.72 4.294

Within Groups 10729.420 496 21.632

F = .537

P > 0.05

Not

Significant

5 Accessibility


Below HSC (n=47) 20.49 3.867

Graduate (n=79) 21.10 3.671

Postgraduate

(n=261) 20.28 4.829


20.58 4.902

Within Groups 10494.683 496 21.159

F = .666

P > 0.05

Not

Significant

6 Efficiency F = 1.126

207


Below hsc (n=47) 20.64 4.391

Graduate (n=79) 21.27 3.373

Postgraduate

(n=261) 20.51 4.816

Professional

(n=113) 21.28 4.109

Within Groups 9696.410 496 19.549

P > 0.05

Not

Significant

7 Overall e-banking

services qualities


Below hsc (n=47) 119.28 13.190

Graduate (n=79) 120.76 13.037

Postgraduate

(n=261) 119.92 13.233

Professional

(n=113) 121.19 13.171

Within Groups 86218.862 496 173.828

F = .372

P > 0.05

Not

Significant


The above table exhibits the mean value calculated on the opinion

perceived by the respondents of different educational group regarding overall e-

banking services qualities provided by banks.

The table reveals that respondents of professional level have high level of

mean value 121.19, graduate level have mean value of 120.76, post graduate

level have the mean value of 119.92 and below HSC level have a mean value of

119.28.

The above table reveals that there is no significant difference between

educational qualification of the respondents and their overall e-banking services

qualities [Reliability = .039 < 0.05/ Responsiveness = .107 > 0.05/ Security = .145

208

> 0.05/ Easy use = .657 > 0.05/ Accessibility = .573 > 0.05/ Efficiency = .338 >

0.05/ Overall e-banking services qualities = .773 > 0.05]. Hence, the calculated

value greater than table value.

Findings The above table reveals that there is no significant difference between

educational qualification of the respondents and their overall e-banking services

qualities [Reliability = .039 < 0.05/ Responsiveness = .107 > 0.05/ Security = .145

> 0.05/ Easy use = .657 > 0.05/ Accessibility = .573 > 0.05/ Efficiency = .338 >

0.05/ Overall e-banking services qualities = .773 > 0.05]. As, the calculated value

greater than table value, the research hypothesis is rejected and the null

hypothesis is accepted. It is inferred that the respondents of all the level of

educational groups are getting satisfied with the qualities of e-banking services.

209

Research hypothesis: 3.5 H 1 : There is a significant difference between income of the respondents and


Null hypothesis

H0 : There is no significant difference between income of the respondents and



Table 4.29

Oneway ANOVA difference between income of the respondents and their overall e-banking services qualities

Sl.no Income Mean S.D SS Df MS Statistical inference

1 Reliability


Below Rs.10000

(n=29) 19.72 3.972

Rs.10001 to 20000

(n=186) 19.04 5.288

Rs.20001 to 30000

(n=135) 19.99 4.891

Rs.30001 to 40000

(n=101) 19.38 4.913

Rs.40001 to 50000

(n=37) 19.65 4.315

Rs.50001 & above

(n=12) 19.00 4.264

Within Groups 12104.577 494 24.503

F = .630

P > 0.05

Not

Significant

210

2 Responsiveness


Below Rs.10000

(n=29) 19.31 4.706

Rs.10001 to 20000

(n=186) 19.07 4.901

Rs.20001 to 30000

(n=135) 20.16 4.420

Rs.30001 to 40000

(n=101) 19.50 4.814

Rs.40001 to 50000

(n=37) 19.51 4.286

Rs.50001 & above

(n=12) 19.58 6.244

Within Groups 11089.439 494 22.448

F = .833

P > 0.05

Not

Significant

3 Security


Below Rs.10000

(n=29) 20.14 3.833

Rs.10001 to 20000

(n=186) 19.48 5.020

Rs.20001 to 30000

(n=135) 19.19 4.965

Rs.30001 to 40000

(n=101) 19.40 4.591

Rs.40001 to 50000

(n=37) 19.95 4.378

Rs.50001 & above

(n=12) 20.00 4.045

Within Groups 11354.943 494 22.986

F = .310

P > 0.05

Not

Significant

211

4 Easy use


Below Rs.10000

(n=29) 20.00 4.166

Rs.10001 to 20000

(n=186) 20.44 4.656

Rs.20001 to 30000

(n=135) 20.43 5.218

Rs.30001 to 40000

(n=101) 21.07 4.006

Rs.40001 to 50000

(n=37) 21.00 4.014

Rs.50001 & above

(n=12) 18.75 5.627

Within Groups 10677.572 494 21.615

F = .802

P > 0.05

Not

Significant

5 Accessibility


Below Rs.10000

(n=29) 20.90 4.995

Rs.10001 to 20000

(n=186) 20.92 4.230

Rs.20001 to 30000

(n=135) 20.71 4.763

Rs.30001 to 40000

(n=101) 20.20 4.703

Rs.40001 to 50000

(n=37) 18.92 4.304

Rs.50001 & above

(n=12) 17.83 5.875

Within Groups 10306.676 494 20.864

F = 2.208 P < 0.05

Significant

212

6 Efficiency


Below Rs.10000

(n=29) 20.17 5.801

Rs.10001 to 20000

(n=186) 20.60 4.567

Rs.20001 to 30000

(n=135) 21.06 4.180

Rs.30001 to 40000

(n=101) 21.09 4.055

Rs.40001 to 50000

(n=37) 19.95 4.521

Rs.50001 & above

(n=12) 23.42 2.937

Within Groups 9617.230 494 19.468

F = 1.492

P > 0.05

Not

Significant

7 Overall e-banking services


Below Rs.10000 (n=29)

120.24 12.495

Rs.10001 to 20000 (n=186)

119.55 12.824

Rs.20001 to 30000 (n=135)

121.54 13.731

Rs.30001 to 40000 (n=101)

120.62 13.522

Rs.40001 to 50000 (n=37)

118.97 11.793

Rs.50001 & above (n=12)

118.58 15.489

Within Groups 85990.391 494 174.070

F = .485

P > 0.05

Not

Significant

Source ; Primary Data

213

The table 4.29 depicts the mean value calculated on the opinion perceived

by the respondents of different income group regarding e-banking service

qualities provided by the banks.

The respondents belonging to the income group of 20001 to 30000 have the

highest mean value of 121.54. the respondents of the income group of 30001 to

40000 ranks next with the mean value of 120.62, the respondents of the income

group of below Rs.10000 ranks next with the mean value of 120.24, the

respondents of the income group of 10001 to 20000 ranks next with the mean

value of 119.55, the respondents of the income group of 40001 to 50000 ranks

next with the mean value of 118.97 and the respondent of the income group of

50001 and above ranks next with the mean value of 118.58. Among all the

respondents there is no much difference in the mean value as they show the

satisfaction with regard to the service qualities of banks.

Research hypothesis H1 : There is a significant difference between income of the respondents and

the qualities of overall e-banking services

H 0 : There is no significant difference between income of the respondents and

the qualities of overall e-banking services

The table reveals that there is no significant difference between income of

the respondents and the qualities of overall e-banking services . [Reliability =

.677 > 0.05/ Responsiveness = .526 > 0.05/ Security = .907 > 0.05/ Easy use =

.548 > 0.05/ Accessibility = .052 < 0.05/ Efficiency = .191 > 0.05/ Overall e-

banking services qualities = .787 > 0.05]. The calculated value greater than table

value.

214


income of the respondents and their overall e-banking services qualities


Easy use = .548 > 0.05/ Accessibility = .052 < 0.05/ Efficiency = .191 > 0.05/

Overall e-banking services qualities = .787 > 0.05]. As, the calculated value

greater than table value, the research hypothesis is rejected and the null

hypothesis is accepted. It is inferred that the respondents of different income

groups are getting satisfaction with regard to the qualities of the e-banking

services.

215

HYPOTHESIS :4 There is a significant difference between account access through internet

of the respondents and their overall e-banking services.

Table 4.30 Significance of account access through internet and the qualities of e-

banking services T-Test

Sl.no Account access to internet Mean S.D Statistical inference

1 Reliability

Accessed (n=354) 19.50 5.035

Not Accessed (n=146) 19.34 4.719

T = .332

P > 0.05 Not

Significant

2 Responsiveness

Accessed (n=354) 19.50 4.771

Not Accessed (n=146) 19.53 4.658

T = -.059

P > 0.05 Not

Significant

3 Security

Accessed (n=354) 19.49 4.719

Not Accessed (n=146) 19.44 4.933

T = .101

P > 0.05 Not

Significant

4 Easy use

Accessed (n=354) 20.71 4.415

Not Accessed (n=146) 20.12 5.151

T = 1.283

P > 0.05 Not

Significant

5 Accessibility

Accessed (n=354) 20.58 4.619

Not Accessed (n=146) 20.29 4.545

T = .644

P > 0.05 Not

Significant

6 Efficiency

Accessed (n=354) 20.70 4.338

Not Accessed (n=146) 21.11 4.625

T = -.947

P > 0.05 Not

Significant

7 Overall e-banking services

Accessed (n=354) 120.47 12.987

Not Accessed (n=146) 119.82 13.604

T = .500

P > 0.05 Not

Significant

Reliability: .740> 0.05 / Responsiveness: .953> 0.05 / Security: .920> 0.05 / Easy

use: .200> 0.05 / Accessibility: .520> 0.05 / Efficiency: .344> 0.05 / Overall e-

banking services: .618> 0.05

216

Research hypothesis H 1 : There is a significant difference between account access through internet of the respondents and the qualities of the overall e-banking services.

Null hypothesis H 0 : There is no significant difference between the account access through internet of the respondents and the qualities of the overall e-banking services. statistical test students ‘t’ test has used to test the above hypothesis

The table 4.30 shows the correlation between account access through internet and the qualities of overall e-banking services. The mean value of the respondents who have the account access through internet show a satisfied mean value of 120.47 and those who do not have account access through internet but using the e-banking services show a satisfied mean value of 119.82.

Findings The table 4.30 reveals that there is no significant difference between the respondents who are having account access through internet and the qualities of overall e-banking services. [Reliability = .584 > 0.05/ Responsiveness = .377 > 0.05/ Security = .412 > 0.05/ Easy use = .516 > 0.05 / Accessibility = .057 < 0.05/ Efficiency = .013 < 0.05/ Overall e-banking services qualities = .011 < 0.05]. Therefore, the calculated value is greater than the table value. So, the research hypothesis is rejected and null hypothesis is accepted. It is inferred that the level of satisfaction of those who are using e-banking services through internets is more than those who do not access the e-banking services through internet. But the mean difference is not much that even though they do not access the internet they are enjoying the qualities of e-banking services. HYPOTHESIS: 5 There is a significant relationship between nature of services like

ATM/Debit card, Credit Card, Mobile banking, Online banking and Tele banking

of the respondents and their overall e-banking services

217

Table 4.31 Inter Correlations matrix between nature of e-banking services and overall e-banking services

ATM/ Debit card

Credit card

Mobile banking

Online banking

Tele banking

Reliability Responsiveness Security Easy use

Accessibility Efficiency Overall e-banking services

ATM/ Debit card 1 -.024 .061 .058 .024 .122(**) .054 -.016 -.051 .013 -.031 .036

Credit card -.024 1 .023 -.027 .116(**) -.056 .014 .030 .004 -.021 -.049 -.028

Mobile banking .061 .023 1 .207(**) .735(**) .028 -.009 -.045 -.080 -.011 -.082 -.068

Online banking .058 -.027 .207(**) 1 -.183(**) .021 -.003 .067 -.058 -.077 .057 .003

Tele banking .024 .116(**) .735(**) -.183(**) 1 .069 -.030 -.067 -.029 .025 -.049 -.027

Reliability .122(**) -.056 .028 .021 .069 1 .103(*) .050 .104(*) -.003 .049 .483(**)

Responsiveness .054 .014 -.009 -.003 -.030 .103(*) 1 -.019 .039 .061 .008 .429(**)

Security -.016 .030 -.045 .067 -.067 .050 -.019 1 .097(*) .036 .106(*) .458(**)

Easy use -.051 .004 -.080 -.058 -.029 .104(*) .039 .097(*) 1 .143(**) .123(**) .532(**)

Accessibility .013 -.021 -.011 -.077 .025 -.003 .061 .036 .143(**) 1 .050 .450(**)

Efficiency -.031 -.049 -.082 .057 -.049 .049 .008 .106(*) .123(**) .050 1 .457(**)

Overall e-banking services

.036 -.028 -.068 .003 -.027 .483(**) .429(**) .458(**) .532(**) .450(**) .457(**) 1

n 500 500 500 500 500 500 500 500 500 500 500 500

** Correlation is significant at the 0.01 level (2-tailed).

* Correlation is significant at the 0.05 level (2-tailed).

218

The table 4.31 reveals that there is no significant relationship between

nature of e banking e banking services like ATM/Debit card, Credit card, Mobile

banking, Online banking and Tele banking of the respondents and their overall e-

banking services. Hence, the calculated value greater than table value.

Research hypothesis

H1 : There is a significant relationship between nature of e-banking services

like ATM/Debit card, Credit card, Mobile banking, Online banking and Tele


Null hypothesis H0 : There is no significant relationship between nature of e banking services

like ATM/Debit card, Credit card, Mobile banking, Online banking and Tele


Statistical test Pearson correlation test was used the above hypothesis

Findings The table 4.31 reveals that there is no significant relationship between

nature of e banking services like ATM/Debit card, Credit card, Mobile banking,

Online banking and Tele banking of the respondents and their overall e-banking

services. Therefore, the calculated value is greater than the table value. So the

research hypothesis is rejected and the null hypothesis is accepted. It is inferred

that respondents using the e-banking services and getting satisfied with the

services

219

HYPOTHESIS: 6 There is a significant relationship between various modes of services

(mobile recharge, payment of telephone bill, payment of electric bill, money

transfer, railway ticket booking, air ticket booking, filing of tax returns,

investments and others ) of the respondents and their overall e-banking services.

220

Table 4.32 Inter correlation between various modes of e-banking services qualities of overall e-banking services

Correlations

Mobile recharge

Payment of

telephone bill

Payment of

electric bill

Money transfer

Railway ticket

booking

Air ticket

booking

Filing of tax

returns Investment

and etc Reliability Responsiv-eness Security Easy

use Accessibility Efficiency

Qualities of

overall e-

banking services

Mobile recharge 1 -.031 .016 .050 -.016 -.042 -.013 -.070 .020 .039 .026 -.009 -.024 -.016 .014

Payment of telephone bill

-.031 1 -.039 .020 -.052 -.104(*) -.111(*) .015 .119(**) -.119(**) -.004 -.027 -.039 .075 .003

Payment of electric bill

.016 -.039 1 .037 .018 .063 .064 .012 .016 .010 .031 .018 -.002 .054 .045

Money transfer .050 .020 .037 1 .067 .010 -.032 .009 .035 -.014 .041 -.012 -.009 .012 .019

Railway ticket booking

-.016 -.052 .018 .067 1 .076 -.022 -.024 -.013 .071 -.002 -.050 .052 -.058 .001

Air ticket booking

-.042 -.104(*) .063 .010 .076 1 -.032 -.053 .014 .004 .008 -.028 .055 -.068 -.004

Filing of tax returns

-.013 -.111(*) .064 -.032 -.022 -.032 1 -.033 -.053 -.012 -.005 .070 .052 -.067 -.006

Investment and etc

-.070 .015 .012 .009 -.024 -.053 -.033 1 .048 -.071 -.026 -.035 .000 -.012 -.033

Reliability .020 .119(**) .016 .035 -.013 .014 -.053 .048 1 .103(*) .050 .104(*) -.003 .049 .483(**)

Responsiveness .039 -.119(**) .010 -.014 .071 .004 -.012 -.071 .103(*) 1 -.019 .039 .061 .008 .429(**)

Security .026 -.004 .031 .041 -.002 .008 -.005 -.026 .050 -.019 1 .097(*) .036 .106(*) .458(**)

Easy use -.009 -.027 .018 -.012 -.050 -.028 .070 -.035 .104(*) .039 .097(*) 1 .143(**) .123(**) .532(**)

Accessibility -.024 -.039 -.002 -.009 .052 .055 .052 .000 -.003 .061 .036 .143(**) 1 .050 .450(**)

Efficiency -.016 .075 .054 .012 -.058 -.068 -.067 -.012 .049 .008 .106(*) .123(**) .050 1 .457(**)

Qualities of overall e-banking services

.014 .003 .045 .019 .001 -.004 -.006 -.033 .483(**) .429(**) .458(**) .532(**) .450(**) .457(**) 1

n 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500



221


various modes of e-banking services of the respondents and the qualities of

overall e-banking services. Hence, the calculated value greater than table value.

Research hypothesis H1 : There is a significant relationship between various modes of e-banking

services of the respondents and the qualities of overall e-banking

services.

Null hypothesis H0 : There is no significant relationship between various modes of e-banking

services of the respondents and the qualities of overall e-banking

services.


Findings The table 4.32 reveals that there is no significant relationship between

various modes of e-banking services of the respondents and the qualities of

overall e-banking services. The calculated value is greater than the table value.

So the research hypothesis is rejected and the null hypothesis is accepted. The

respondents using the various modes of e-banking services contribute their level

satisfaction through frequent usage of the services.

222

HYPOTHESIS: 7 There is a significant relationship between various modes of

services(mobile recharge, payment of telephone bill, payment of electric bill,

money transfer, railway ticket booking, air ticket booking, filing of tax returns,

investments and others) of the respondents and their various problems of e-

banking.

223

Table 4.33 Inter Correlation matrix between modes of services and various problems of e-banking

Mobile recharge

Payment of

telephone bill

Payment of

electric bill

Money transfer

Railway ticket

booking

Air ticket

booking

Filing of tax

returns Investment

and etc

Inadequate knowledge about the usage of

e-channels


ATMs

No of ATMS

not sufficient

Poor network

Lack of interest

from customers

Pass word

forgotten Card

misplaced

Misuse of card

and frauds

Lack of confidence

Technical hurdles of ATMs and smart card

Mobile recharge 1 -.031 .016 .050 -.016 -.042 -.013 -.070 .053 -.009 .001 -.015 -.034 -.036 -.058 .073 -.024 -.022

Payment of telephone bill -.031 1 -.039 .020 -.052 -.104(*) -.111(*) .015 .076 -.022 .039 .026 -.005 .066 .006 -.050 -.008 -.069

Payment of electric bill .016 -.039 1 .037 .018 .063 .064 .012 .006 -.042 -.028 -.030 .024 .061 .055 .027 .000 .070

Money transfer .050 .020 .037 1 .067 .010 -.032 .009 -.013 -.057 -.030 -.028 .059 .003 -.022 .028 .030 -.006 Railway ticket booking -.016 -.052 .018 .067 1 .076 -.022 -.024 .058 -.003 -.033 -.116(**) -.083 -.015 .035 -.031 -.099(*) .029

Air ticket booking -.042 -.104(*) .063 .010 .076 1 -.032 -.053 -.038 .009 -.023 -.078 -.061 .111(*) -.034 -.001 .050 -.021

Filing of tax returns -.013 -.111(*) .064 -.032 -.022 -.032 1 -.033 .084 -.004 -.013 -.043 -.025 .000 -.015 .025 -.132(**) -.041

Investment and etc -.070 .015 .012 .009 -.024 -.053 -.033 1 .010 -.038 .045 .046 .060 .003 .077 .005 -.066 -.032

Inadequate knowledge about the usage of e-channels

.053 .076 .006 -.013 .058 -.038 .084 .010 1 .040 .055 -.067 .052 .042 .025 .041 .025 .088(*)

Unsuitable location of ATMs

-.009 -.022 -.042 -.057 -.003 .009 -.004 -.038 .040 1 .067 .030 .003 .023 -.029 .009 .043 .033

No of ATMS not sufficient .001 .039 -.028 -.030 -.033 -.023 -.013 .045 .055 .067 1 .057 .060 .069 .004 -.004 .051 .052

Poor network -.015 .026 -.030 -.028 -.116(**) -.078 -.043 .046 -.067 .030 .057 1 .069 -.008 .153(**) .122(**) .206(**) .127(**) Lack of interest from customers

-.034 -.005 .024 .059 -.083 -.061 -.025 .060 .052 .003 .060 .069 1 .067 .083 .092(*) .105(*) .143(**)

Pass word forgotten -.036 .066 .061 .003 -.015 .111(*) .000 .003 .042 .023 .069 -.008 .067 1 .136(**) .005 -.012 .179(**)

Card misplaced -.058 .006 .055 -.022 .035 -.034 -.015 .077 .025 -.029 .004 .153(**) .083 .136(**) 1 .081 .011 .143(**)

Misuse of card and frauds .073 -.050 .027 .028 -.031 -.001 .025 .005 .041 .009 -.004 .122(**) .092(*) .005 .081 1 .112(*) .111(*)

Lack of confidence -.024 -.008 .000 .030 -.099(*) .050 -

.132(**) -.066 .025 .043 .051 .206(**) .105(*) -.012 .011 .112(*) 1 .125(**)


-.022 -.069 .070 -.006 .029 -.021 -.041 -.032 .088(*) .033 .052 .127(**) .143(**) .179(**) .143(**) .111(*) .125(**) 1

n 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500 500

** Correlation is significant at the 0.01 level (2-tailed)

* Correlation is significant at the 0.05 level (2-tailed)

224

The above table reveals that there is no significant relationship between

various modes of e-banking services of the respondents and their various

problems of overall e-banking services. The calculated value is greater than the

table value.

Research hypothesis

H1 : There is a significant relationship between various modes of e-banking

services of the respondents and their various problems of overall e-

banking services.

Null hypothesis H0 : There is no significant relationship between various modes of e-banking

services of the respondents and their various problems of overall e-

banking services.


Findings The above table reveals that there is no significant relationship between

various modes of e-banking services of the respondents and their various

problems of overall e-banking services. The calculated value is greater than the

table value. So the research hypothesis is rejected and the null hypothesis is

accepted. It is inferred that even though the respondents are facing various

problems while using the e-banking services speed and developed technology

makes them use the services in a frequent manner.

225

OTHER HYPOTHESES Table 4.34

Oneway ANOVA

Difference between name of bank of the respondents and the overall e-banking services qualities

Sl.no Name of bank Mean S.D SS Df MS Statistical inference

1 Reliability


Canara Bank

(n=50) 18.86 5.361

SBI (n=50) 18.88 5.220

IOB (n=50) 19.38 4.549

IB(n=50) 20.12 4.779

Bank of India(n=50) 18.82 4.873

KVB(n=50) 19.54 5.246

LVB(n=50) 21.30 4.418

ICICI(n=50) 19.24 4.547

CSB(n=50) 19.94 4.697

Federal Bank(n=50) 18.42 5.399

Within Groups 11866.780 490 24.218

F = 1.445

P > 0.05

Not

Significant

2 Responsiveness


Canara Bank

(n=50) 18.66 5.340

SBI (n=50) 19.20 4.940

IOB (n=50) 19.54 4.301

IB(n=50) 20.46 4.937

Bank of India(n=50) 19.94 4.249

KVB(n=50) 18.36 5.609

LVB(n=50) 20.04 4.295

F = 1.538

P > 0.05

Not

Significant

226

ICICI(n=50) 19.02 3.798

CSB(n=50) 18.92 4.877


Within Groups 10875.800 490 22.196

3 Security


Canara Bank

(n=50) 19.24 5.313

SBI (n=50) 18.98 5.176

IOB (n=50) 19.60 5.047

IB(n=50) 18.42 4.209

Bank of India(n=50) 19.54 5.230

KVB(n=50) 19.92 4.633

LVB(n=50) 20.08 5.022

ICICI(n=50) 19.32 4.302

CSB(n=50) 19.92 4.566


Within Groups 11277.120 490 23.015

F = .548

P > 0.05

Not

Significant

4 Easy use


Canara Bank

(n=50) 19.52 5.545

SBI (n=50) 20.72 4.021

IOB (n=50) 20.36 5.189

IB(n=50) 19.56 4.807

Bank of India(n=50) 19.98 5.601

KVB(n=50) 21.02 4.240

LVB(n=50) 21.62 3.337

ICICI(n=50) 21.00 3.891

CSB(n=50) 21.12 4.663

F = 1.117

P > 0.05

Not

Significant

227


Within Groups 10547.900 490 21.526

5 Accessibility


Canara Bank

(n=50) 20.68 4.316

SBI (n=50) 20.46 4.722

IOB (n=50) 21.18 4.299

IB(n=50) 20.38 4.584

Bank of India(n=50) 20.68 4.368

KVB(n=50) 20.72 4.824

LVB(n=50) 20.62 4.426

ICICI(n=50) 19.68 5.316

CSB(n=50) 20.12 4.029


Within Groups 10465.540 490 21.358

F = .372

P > 0.05

Not

Significant

6 Efficiency


Canara Bank

(n=50) 20.90 5.556

SBI (n=50) 19.68 5.227

IOB (n=50) 20.78 4.273

IB(n=50) 21.08 4.075

Bank of India(n=50) 21.30 4.176

KVB(n=50) 19.48 5.152

LVB(n=50) 20.76 4.202

ICICI(n=50) 21.72 3.044

CSB(n=50) 21.04 4.323


Within Groups 9530.060 490 19.449

F = 1.328

P > 0.05

Not

Significant

228


Between Groups 1621.880 9 180.209

Canara Bank

(n=50) 117.86 13.713

SBI (n=50) 117.92 14.243

IOB (n=50) 120.84 13.633

IB(n=50) 120.02 12.053

Bank of India(n=50) 120.26 14.540

KVB(n=50) 119.04 13.952

LVB(n=50) 124.42 11.537

ICICI(n=50) 119.98 12.089

CSB(n=50) 121.06 13.332

Federal Bank(n=50) 121.40 12.056

Within Groups 84790.920 490 173.043

F = 1.041

P > 0.05

Not

Significant


The table 4.34 shows the mean calculated on the opinions perceived by

the respondents of the different banks regarding the e-banking service qualities

of the banks. According to the opinions of the respondents, the Lakshmi Vilas

Bank have the highest mean value of 124.42, the Federal Bank rank the second

with the mean value of 121.40, the Catholic Syryan Bank is in the third rank with

the mean value of 121.06, the Indian overseas bank is in the fourth place with

mean value of 120.84, the Bank of India is in the fifth place with the mean value

of 120.26, the Indian bank is in the sixth place with the mean value of 120.02, the

ICICI Bank is in the seventh place with the mean value of 119.98, the Karur

Vysia Bank is the eighth place with the mean value of 119.04, the Canara Bank

is in the ninth place with the mean value of 117.86 and the State Bank of India is

in the tenth place with the mean value of 117.92. The ranking indicates the level

of satisfaction of the bank customers with the service qualities provided by the

bank.

229


name of bank of the respondents and their overall e-banking services qualities


Easy use = .349 > 0.05 / Accessibility = .948 > 0.05 / Efficiency = .220 > 0.05 /


greater than table value.

Research hypothesis H1 : There is a significant difference between name of bank of the respondents


Null hypothesis H0 : There is no significant difference between name of bank of the



Findings The table 4.34 reveals that there is no significant difference between





greater than table value. So the research hypothesis is rejected and the null

hypothesis is accepted.

230

Table 4.35 Association between no. of bank account of the respondents and their

overall e-banking services qualities In how many banks do you

have account Sl.no Various dimensions of

e-banking service qualities One

(n=228) Two

(n=251) Three (n=21)

Statistical inference

1 Reliability

Low 86 (37.7%)

88 (35.1%)

8 (38.1%)

High 142 (62.3%)

163 (64.9%)

13 (61.9%)

X2=.392 Df = 2

P > 0.05 Not

Significant 2 Responsiveness

Low 74 (32.5%)

92 (36.7%)

8 (38.1%)

High 154 (67.5%)

159 (63.3%)

13 (61.9%)

X2=1.033 Df = 2

P > 0.05 Not

Significant 3 Security

Low 76 (33.3%)

88 (35.1%)

8 (38.1%)

High 152 (66.7%)

163 (64.9%)

13 (61.9%)

X2=.290 Df = 2

P > 0.05 Not

Significant 4 Easy use

Low 99 (43.4%)

106 (42.2%)

8 (38.1%)

High 129 (56.6%)

145 (57.8%)

13 (61.9%)

X2=.251 Df = 2

P > 0.05 Not

Significant 5 Accessibility

Low 98 (43%)

91 (36.3%)

10 (47.6%)

High 130 (57%)

160 (63.7%)

11 (52.4%)

X2=2.816 Df = 2

P > 0.05 Not

Significant 6 Efficiency

Low 104 (45.6%)

98 (39%)

6 (28.6%)

High 124 (54.4%)

153 (61%)

15 (71.4%)

X2=3.654 Df = 2

P > 0.05 Not

Significant


Low 111 (48.7%)

122 (48.6%)

7 (33.3%)

High 117 (51.3%)

129 (51.4%)

14 (66.7%)

X2=1.889 Df = 2

P > 0.05 Not

Significant


231

The table 4.35 indicates the opinions of the respondents regarding the

overall e-banking service qualities. A majority (51.3%) of the respondents having

account in one bank perceive that the e-banking services qualities provided by

the banks are high. A majority (51.4%) of the respondents having account in two

banks perceive that the e-banking services qualities provided by the banks are

high. A majority(66.7%) of the respondents having account in three banks

perceive that the e-banking services qualities provided by the banks are high. The table reveals that there is no significant association between no. of

bank account of the respondents and their overall e-banking services qualities

[Reliability =.822 > 0.05 / Responsiveness =.597> 0.05 / Security =.865 > 0.05/

Easy use =.882> 0.05 / Accessibility = .245 > 0.05/ Efficiency =.161> 0.05 /

Overall e-banking services qualities =.389 > 0.05]. Hence, the calculated value

greater than table value. Research hypothesis H1 : There is a significant association between no. of bank account of the

respondents and their overall e-banking services. Null hypothesis H0 : There is no significant association between no. of bank account of the

respondents and their overall e-banking services. Statistical test Oneway ANOVA ‘f’ test was used the above hypothesis Findings The above table reveals that there is no significant association between

no.of bank account of the respondents and their overall e-banking services



Overall e-banking services =.389 > 0.05]. Hence, the calculated value greater

than the table value. So the research hypothesis is rejected and the null


232

Table 4.36 Kruskal-Wallis Test

Difference between name of bank of the respondents and their


Sl.no Name of bank Mean Rank

1 ATM/ Debit card

Canara Bank (n=50) 243.40

SBI(n=50) 276.41

IOB(n=50) 251.90

IB(n=50) 280.07

Bank of India(n=50) 235.32

KVB(n=50) 235.08

LVB(n=50) 229.45

ICICI(n=50) 246.54

CSB(n=50) 256.42

Federal Bank(n=50) 250.41

2 Credit card


SBI(n=50) 228.24

IOB(n=50) 255.05

IB(n=50) 258.16


KVB(n=50) 267.07

LVB(n=50) 261.82

ICICI(n=50) 236.36

CSB(n=50) 263.41


3 Mobile banking


SBI(n=50) 256.92

233

IOB(n=50) 270.79

IB(n=50) 266.99


KVB(n=50) 243.66

LVB(n=50) 217.27

ICICI(n=50) 260.72

CSB(n=50) 237.62


4 Online banking


SBI(n=50) 269.63

IOB(n=50) 234.70

IB(n=50) 210.54


KVB(n=50) 245.10

LVB(n=50) 233.67

ICICI(n=50) 267.51

CSB(n=50) 238.87


5 Tele banking


SBI(n=50) 235.18

IOB(n=50) 288.29

IB(n=50) 250.54


KVB(n=50) 251.53

LVB(n=50) 253.85

ICICI(n=50) 265.78

CSB(n=50) 238.96


234

Test Statistics (a,b)

ATM/ Debit

card Credit card

Mobile banking

Online banking

Tele banking

Chi-Square 10.583 3.690 6.223 9.781 6.206

df 9 9 9 9 9

Asymp. Sig. .305 .931 .717 .369 .719


a Kruskal Wallis Test

b Grouping Variable: Name of your bank

The table 4.36 indicates that the different e-banking services provided all

the banks and the mean value of the service utilized by the respondents. The

mean value is based on the opinion perceived by the respondents.

When the ATM/Debit card service is considered, among all the banks

Indian bank ranks first with the highest mean value of 280.07,

When the credit card service is considered, among all the banks Karur

Vysia bank’s service is considered best with the highest mean value of 267.07

When the mobile banking services is considered, among all the banks

Indian overseas bank’s services is considered best with the highest mean value

of 270.79.

The Federal bank with the mean value of 270.85 and Canara bank with

the mean value of 270.5 considered as best in providing online banking service

Indian overseas bank is considered the best in providing Tele banking



name of bank of the respondents and their nature of e-banking services. Hence,

the calculated value greater than table value.

235


and their nature of e-banking services


respondents and their various dimensions of e-banking channels.

Statistical test

Kruskal Wallis test was used to test the above hypothesis

Findings


name of bank of the respondents and their e-banking services. [ATM/Debit card-

=.305>0.05/ credit card=.931>0.05/mobile banking=.717>.369/ online banking =

.369>0.05/ Tele banking=.719>0.05 ]. As the calculated value is greater than the

table value, the research hypothesis is rejected and the null hypothesis is

accepted. It is inferred that the respondents are giving importance to the

services.

Table 4.37

Kruskal-Wallis Test Difference between occupation of the respondents and the


Sl.no Occupation Mean Rank

1 ATM/ Debit card

Professional (n=118) 252.43

Agriculturist (n=27) 250.35

Businessman (n=105) 253.80

Salaried class (n=225) 247.98

Others (n=25) 250.34

2 Credit card


236




Others (n=25) 226.44

3 Mobile banking





Others (n=25) 260.04

4 Online banking





Others (n=25) 285.32

5 Tele banking





Others (n=25) 247.96

Test Statistics(a,b)

ATM/

Debit card Credit card

Mobile banking

Online banking

Tele banking

Chi-Square .249 .983 3.630 5.472 8.233

df 4 4 4 4 4

Asymp. Sig. .993 .912 .458 .242 .083

Source: Computed from the Primary Data a Kruskal Wallis Test

b Grouping Variable: Occupation

237

The table 4.37 shows the opinion of the respondents regarding their

occupation and the e-banking channel used by them. ATM/Debit card is used to

a highest extent by the business men with the mean value of 253.80, credit card

used by the agriculturist to an maximum extent with the mean value of 257.98,

mobile banking services used by the agriculturist with the high mean value of

279.37, online banking services are used by the business men to a maximum

extent with the highest mean value of 266.95 and Tele banking services been

used by the salaried class people to a maximum extent with the highest mean

value of 264.10. the high mean value is shown in the usage of e-banking

services by one occupational group who may be using the services for one time,

but those respondents who are using the e-banking services two or three times

may not be getting much satisfaction. So there may be a small difference in the

mean value of the other occupational group.


occupation of the respondents and their various dimensions of e-banking

channels. Hence, the calculated value is greater than the table value.


and their nature of e-banking services


respondents and their various dimensions of e-banking channels.

Statistical test


Inference


name of bank of the respondents and their nature of e-banking channels. Hence,

238

the calculated value greater than the table value. So the research hypothesis is

rejected and the null hypothesis is accepted.

Research hypothesis H1 : There is a significant difference between occupation of the respondents

and their various dimensions of e-banking channels.

Null hypothesis H0 : There is no significant difference between occupation of the respondents


Statistical test


Inference The table 4.37 reveals that there is no significant difference between


channels. Hence, the calculated value greater than table value. So the research

hypothesis is rejected and the null hypothesis is accepted.

Finding The difference between occupation of the respondent and the various

dimensions of e-banking channels is significantly not related. Hence it is obvious

related to the interest of the respondents.

239

Table 4.38

Kruskal-Wallis Test Difference between occupation of the respondents and their various

problems faced in e-banking services

Sl.no Occupation Mean Rank 1 Inadequate knowledge about the usage of e-channels Professional (n=118) 276.33 Agriculturist (n=27) 237.33 Businessman (n=105) 234.42 salaried class (n=225) 248.56 Others (n=25) 227.84

2 Unsuitable location of ATMs Professional (n=118) 239.23 Agriculturist (n=27) 245.06 Businessman (n=105) 265.71 salaried class (n=225) 253.34 Others (n=25) 220.10

3 No of ATMS not sufficient Professional (n=118) 254.81 Agriculturist (n=27) 283.52 Businessman (n=105) 249.85 salaried class (n=225) 247.40 Others (n=25) 225.08

4 Poor network Professional (n=118) 253.16 Agriculturist (n=27) 220.83 Businessman (n=105) 246.71 salaried class (n=225) 254.92 Others (n=25) 246.16

5 Lack of interest from customers Professional (n=118) 241.86 Agriculturist (n=27) 275.28

240

Businessman (n=105) 214.10 salaried class (n=225) 269.99 Others (n=25) 242.00

6 Pass word forgotten Professional (n=118) 250.81 Agriculturist (n=27) 275.06 Businessman (n=105) 251.82 salaried class (n=225) 252.58 Others (n=25) 198.24

7 Card misplaced Professional (n=118) 262.97 Agriculturist (n=27) 295.83 Businessman (n=105) 256.81 salaried class (n=225) 240.22 Others (n=25) 208.62

8 Misuse of card and frauds Professional (n=118) 219.29 Agriculturist (n=27) 259.07 Businessman (n=105) 273.17 salaried class (n=225) 257.78 Others (n=25) 227.84

9 Lack of confidence Professional (n=118) 224.72 Agriculturist (n=27) 249.61 Businessman (n=105) 244.88 salaried class (n=225) 271.18 Others (n=25) 210.58

10 Technical hurdles of ATMs and smart card Professional (n=118) 238.17 Agriculturist (n=27) 257.30 Businessman (n=105) 239.14 salaried class (n=225) 260.06 Others (n=25) 262.98

241


Inadequate knowledge about the usage of

e-channels


No of ATMS

not sufficient

Poor network

Lack of interest

from customers

Pass word

forgotten Card

misplaced

Misuse of card

and frauds

Lack of confidence


and smart card

Chi-

Square 6.024 3.151 2.429 1.594 12.811 4.304 7.411 12.432 13.201 3.050

df 4 4 4 4 4 4 4 4 4 4

Asymp.

Sig. .197 .533 .657 .810 .012 .366 .116 .014 .010 .549



b Grouping Variable: Occupation

242

The table 4.38 indicates the problems faced by the respondents of

different occupational groups while doing the e-banking services. The mean

value is perceived based on the opinions of the respondents. The mean value

276.33 shows that the professionals are facing the problem of inadequate

knowledge about the usage of e-banking channels. The mean value 265.71

shows that the businessmen are facing the problem of unsuitable location of

ATMs as the services more than one time. The mean value 283.52 shows that

the agriculturists are perceiving that the number of ATMs are not sufficient. The

mean value 254.92 indicates that the salaried class respondents are facing the

problem of poor network. The agriculturist are having lack of interest is indicated

by the mean value 275.28. the agriculturist respondents are also facing the

problem of forgetting the password is indicated by the mean value 275.06. the

mean value 295.83 indicates that agriculturist respondents are facing the

problem of misplace the card. The mean value 273.17 indicates that the business

men are facing the problem of misuse of care and frauds. The mean value

271.18 shows that there is lot of lack of confidence among the salaried class

respondents. And the mean value 262.98 shows that the other occupational

class respondents are facing the problem of technical hurdles of ATMs and smart

card.


occupation of the respondents and their various problems faced in e-banking

services. Hence, the calculated value greater than table value.

Research hypothesis H1 : There is a significant difference between occupation of the respondents

and their various problems faced in e-banking services.

Null hypothesis H0 : There is no significant difference between occupation of the respondents


243

Statistical test

Kruskal Wallis test was used the above hypothesis

Findings


occupation of the respondents and their various problems faced in e-banking

services. Hence, the calculated value greater than table value. So the research

hypothesis rejected and the null hypothesis accepted.

244

Table 4.39 Kruskal-Wallis Test

Difference between name of bank of the respondents and their various

problems faced in e-banking services

Sl.no Name of Bank Mean Rank



SBI (n=50) 284.32

IOB(n=50) 259.68

IB(n=50) 257.73


KVB(n=50) 227.28

LVB(n=50) 237.16

ICICI(n=50) 244.31

CSB(n=50) 220.95


2 Unsuitable location of ATMs


SBI (n=50) 248.62

IOB(n=50) 270.19

IB(n=50) 230.84


KVB(n=50) 238.21

LVB(n=50) 239.88

ICICI(n=50) 266.60

CSB(n=50) 261.67


3 No of ATMS not sufficient


SBI (n=50) 255.88

245

IOB(n=50) 206.93

IB(n=50) 238.41


KVB(n=50) 260.08

LVB(n=50) 253.85

ICICI(n=50) 250.30

CSB(n=50) 258.03


4 Poor network


SBI (n=50) 232.36

IOB(n=50) 232.02

IB(n=50) 244.24


KVB(n=50) 270.85

LVB(n=50) 225.13

ICICI(n=50) 306.42

CSB(n=50) 251.42


5 Lack of interest from customers


SBI (n=50) 264.05

IOB(n=50) 218.08

IB(n=50) 285.92


KVB(n=50) 241.03

LVB(n=50) 259.41

ICICI(n=50) 216.99

CSB(n=50) 266.93


246

6 Pass word forgotten


SBI (n=50) 243.74

IOB(n=50) 218.84

IB(n=50) 227.84


KVB(n=50) 258.03

LVB(n=50) 263.72

ICICI(n=50) 270.43

CSB(n=50) 265.65


7 Card misplaced


SBI (n=50) 260.74

IOB(n=50) 252.93

IB(n=50) 266.51


KVB(n=50) 244.81

LVB(n=50) 264.03

ICICI(n=50) 256.40

CSB(n=50) 242.74


8 Misuse of card and frauds


SBI (n=50) 239.21

IOB(n=50) 240.22

IB(n=50) 248.14


KVB(n=50) 265.41

LVB(n=50) 242.03

247

ICICI(n=50) 251.03

CSB(n=50) 272.38


9 Lack of confidence


SBI (n=50) 250.43

IOB(n=50) 231.09

IB(n=50) 226.12


KVB(n=50) 258.44

LVB(n=50) 240.94

ICICI(n=50) 280.94

CSB(n=50) 259.63


10 Technical hurdles of ATMs and smart card


SBI (n=50) 229.18

IOB(n=50) 261.66

IB(n=50) 259.36


KVB(n=50) 229.18

LVB(n=50) 239.90

ICICI(n=50) 268.82

CSB(n=50) 232.93


248



usage of e-channels


ATMs

No of ATMS

not sufficient

Poor network

Lack of interest

from customers

Pass word

forgotten Card

misplaced

Misuse of card

and frauds

Lack of confidence


and smart card

Chi-

Square 11.226 5.079 10.998 17.775 16.107 11.846 2.794 3.331 8.010 13.980

df 9 9 9 9 9 9 9 9 9 9

Asymp.

Sig. .261 .827 .276 .038 .065 .222 .972 .950 .533 .123



b Grouping Variable: Name of your bank

249

The above table provide the information regarding the names of different

banks of the respondents and the same banks. Based on the opinion and view

of the customer the mean values been calculated. The high mean value 284.32

shows that the respondents of the state bank of India , are facing the problem of

inadequate knowledge about the usage of banking channels. The highest mean

value 270.74 of Inidan overseas bank and 270.74 of bank of India shows that the

respondents are facing the problem of unsuitable location of ATMs. The mean

value 296.94 indicates that the respondents of Canara bank are facing the

problem that the number of ATMs are not sufficient. The highest mean value

306.42 shows that the respondents of ICICI bank are facing the problem of poor

network, the highest mean value 285.92 shows that the respondents of Indian

bank are having lack of interest. The highest mean value 284.09 shows that the

respondents of the federal bank are facing the problem of forgetting the pass

word. The mean value 264.03 shows that the respondents of Lakshmi Vilas

bank are misplacing the card. The mean value 272.38 shows the respondents of

catholic Syrian bank are facing the problem of misplacing the card and frauds.

The mean value 280.94 shows that the respondents of ICICI bank are facing the

problem of lack of confidence. And the mean value305.19 indicates that the

respondents of the Canara bank are facing technical hurdles of ATMs and smart

card.

It is inferred that there is no significant difference between name of bank

of the respondents and their various problems faced in e-banking services.

Hence, the calculated value greater than table value.




respondents and their various problems faced in e-banking services.

250

Statistical test Kruskal Wallis test was used the above hypothesis


name of bank of the respondents and their various problems faced in e-banking

services. Hence, the calculated value greater than table value. So the research

hypothesis rejected and the null hypothesis accepted.

251

Table 4.40 Inter Correlations Matrix between qualities of e-banking services and overall qualities of e-banking services

Reliability Responsiveness Security Easy

use Accessibility Efficiency

Overall e-banking

services

Reliability 1 .103(*) .050 .104(*) -.003 .049 .483(**)

Responsiveness .103(*) 1 -.019 .039 .061 .008 .429(**)

Security .050 -.019 1 .097(*) .036 .106(*) .458(**)

Easy use .104(*) .039 .097(*) 1 .143(**) .123(**) .532(**)

Accessibility -.003 .061 .036 .143(**) 1 .050 .450(**)

Efficiency .049 .008 .106(*) .123(**) .050 1 .457(**)

Overall e-banking services

.483(**) .429(**) .458(**) .532(**) .450(**) .457(**) 1

N 500 500 500 500 500 500 500



252

The table 4.40 exhibits that There is a significant relationship between

reliability and responsiveness, reliability and easy use, security and easy use,

security and efficiency.

There is a highly significant relationship between easy use and

accessibility, easy use and efficiency. Reliability, responsiveness, security, easy

use, accessibility, efficiency and overall e-banking services are highly

significantly related

There is a significant relationship between reliability and responsiveness,

easy use and of overall e-banking services.

There is a highly significant relationship between reliability,

responsiveness, security, easy use, accessibility, efficiency and overall e-banking

services.

253

Table 4.41 Inter Correlations matrix between nature of e-banking services

Mean S.D ATM/

Debit card

Credit

card

Mobile

banking

Online

banking

Tele

banking

ATM/

Debit card

1.50 1.064 1 -.024 .061 .058 .024

Credit card

3.72 1.739 -.024 1 .023 -.027 .116(**)

Mobile banking

4.11 1.560 .061 .023 1 .207(**) .735(**)

Online banking

3.20 1.575 .058 -.027 .207(**) 1 -.183(**)

Tele banking

4.00 1.629 .024 .116(**) .735(**) -.183(**) 1


The table 4.41 shows that the inter correlation matrix between the

e-banking channel and the e-banking channel was used to identify the

significance of correlation. It is inferred that the credit card and Tele banking,

mobile banking and online banking, mobile banking and Tele banking, online

banking and Tele banking were having highly significant relationship

254

Table 4. 42 Inter Correlation between problems of e-banking services

Particulars Mean S.D


usage of e-channels


No of ATMS not sufficient

Poor network

Lack of interest

from customers

Pass word

forgotten Card

misplaced

Misuse of card

and frauds

Lack of confidence


Inadequate knowledge about the usage of e-channels

5.12 2.668 1 .040 .055 -.067 .052 .042 .025 .041 .025 .088(*)


5.26 2.794 .040 1 .067 .030 .003 .023 -.029 .009 .043 .033

No of ATMS not sufficient 4.85 2.587 .055 .067 1 .057 .060 .069 .004 -.004 .051 .052

Poor network 4.91 2.254 -.067 .030 .057 1 .069 -.008 .153(**) .122(**) .206(**) .127(**) Lack of interest from customers

3.90 2.356 .052 .003 .060 .069 1 .067 .083 .092(*) .105(*) .143(**)

Pass word forgotten 4.41 2.338 .042 .023 .069 -.008 .067 1 .136(**) .005 -.012 .179(**)

Card misplaced 3.86 1.887 .025 -.029 .004 .153(**) .083 .136(**) 1 .081 .011 .143(**)

Misuse of card and frauds 3.34 2.416 .041 .009 -.004 .122(**) .092(*) .005 .081 1 .112(*) .111(*)

Lack of confidence 3.30 2.529 .025 .043 .051 .206(**) .105(*) -.012 .011 .112(*) 1 .125(**)


3.31 2.176 .088(*) .033 .052 .127(**) .143(**) .179(**) .143(**) .111(*) .125(**) 1

N 500 500 500 500 500 500 500 500 500 500 * Correlation is significant at the 0.05 level (2-tailed).


255

Inference The table 4.42 shows that there is significant relationship between

inadequate knowledge about the usage of e-channels and technical hurdles of

ATMs and smart card. There is also from significant relationship between lack of

interest from customers and misuse of cards and frauds, lack of confidence.

There is a significant relationship between misuse of cards and frauds and lack

of confidence and technical hurdles of ATMs and smart card.

There is highly significant relationship between technical hurdles of ATMs

and smart card and poor network, lack of interest from customers, pass word

forgotten, card misplaced , lack of confidence.

Findings The relationship between the problems of the e-bankings services is

highly significant. This indicates the consequence of one problem on the another

problem.

The next chapter provides the finds of the study, suggestions and

recommendations and suggestions for future studies.

CHAPTER – V SUMMARY OF FINDINGS, SUGGESTIONS, RECOMMENDATIONS AND CONCLUSION

This chapter sums up all the findings of the study, suggestions,

recommendations to the banks and conclusion and suggestions for the future

research.

Data was collected from customers who use electronic banking in the

banks. Consequently, the collected data was analyzed and interpreted in line

with the aims of the study on which is to compare the banks in the customers’

perspectives. This analysis is focused on relevant dimensions of services

qualities and the problems faced by the customers for the purpose of comparison

between themselves and across respondents.

The respondents using e-banking services been taken equally from all the

10 banks. Out of the total respondents using e-banking services 50 percent of

the respondents belong to nationalized banks and 50 percent belong to the

private sector banks. Demographic breakdown of the sample presents the

frequencies and percentages of the respondents divided according to gender,

age, education, occupation and personal monthly income. The majority of the

respondents were male (75%). As for the age distribution, most of the

respondents fall between the age group of 36 to 45 years (41%). With respect to

education, 52.2 percent of the respondents are holders of post graduate degrees,

45 percent of the respondents belong to salaried class and 37.2 percent had

monthly income between the ranges ‘10001 to 20000.

Usage of e-banking services The respondents were asked how many times they have used the e-

banking services in 3 months duration. It was revealed that 21.6 percent of

respondents are doing mobile recharging two times, 34.6 percent are using the

257

e-banking services once for payment of telephone bill, 53.8 percent use one time

for payment of electricity bill, 24 percent use two times for money transfer, 35

percent use one time for railway ticket booking, 36.6 percent use one time for air

ticket booking, 50.2 percent use one time for filing of tax returns air ticket

booking, 35.4 percent use one time for investment and other services in 3

months duration. It was revealed that 50.2 percent of the respondents have

account in two or more banks. 70.8 percent of the respondents are having

account access to internet and 35.4 percent have internet at office.

This part of the analysis provides the information on the views of the

respondents using e-banking services with regard to the e-banking service qualities. To understand the e-banking services provided by the banks, six key

service quality dimensions been taken for analysis are reliability, responsiveness,

security, easy use, accessibility, efficiency. Under each of key service quality

dimension five scales been taken to evaluate the service qualities

The performance of electronic banking channels with respect to the

service quality dimensions. The respondents were asked the latest electronic

service they have used. It was revealed that more customers have adopted ATM

banking (91.8%) than online banking, mobile banking, credit card and Tele

banking. This implies that banking customers are more familiar with the ATM

technology as compared to online banking, mobile banking, credit card and Tele

banking.

The respondents are more familiar with the ATM/debit card service that

33.2 percent of the respondents use the service at least one time in three months

time and in the rank of order of preference of e-banking channels 74 percent of

the respondent rank ATM/Debit card services in the first place.

258

The inter correlation matrix between e-banking services and qualities of e-

banking services inferred that there is a highly significant relationship between

ATM/Debit card and reliability.

Opinion and Satisfaction level of the respondents regarding the qualities of the e-banking services

Table 4.22 shows that More than one half (52%) of the respondents

perceived with regard to the qualities of overall of e-banking services that the

banks are providing high performance of e-banking services taking into

consideration all the six service qualities (reliability, responsiveness, security,

easy use accessibility, efficiency). Less than one half (48%) of the respondents

perceived that the e-banking services provided by banks are having low

performance. The mean value 120.28 shows the high satisfaction of the

respondents with regard to the service qualities e-banking services.

Frequency table used to calculate the mean value of various dimensions

of e-banking service qualities revealed that while evaluating the service quality,

reliability, the five scales i.e., Relevant and accurate information, Updated

information, Accurate record, More service attitude (lowest service charges),

restricts unauthorized access are taken in to consideration. After evaluating the

scales 63.6 percent of the respondents considered the reliability level on the

banks as very high.

65.6 percent of the respondents evaluated that the security in e-banking

services provided by the banks is high after evaluating the five scales. no misuse

of personal information, safe with online transaction, secure in providing personal

information, ATMs have secure location, Multi-kind security control.

57.4 percent of the respondents evaluated that easy use in the e-banking

services provided by the banks have high easy use after taking into consideration

the five scales, systems are clear and understandable, ATMs locations are

259

reachable, facilitates investment planning, service systems are easy to use, easy

navigation through web pages.

60.2 percent of the respondents evaluated that accessibility in the e-

banking services provide high accessibility to their bank operations after

evaluating the service quality scales- available all 24 hrs/day, 7 days a week,

anytime conduct of transaction, able to get on site quickly and reach the bank

immediately, easy proximity, facilitates online shopping.

58.4 percent of the respondents after considering the scales of quality,

access and conduct, care and speed of using the websites, staff, speedy supply

of information, standardized service perceived that the banks have high level of

efficiency

52 percent of the respondents perceived that the banks are providing high

performance of e-banking services taking into consideration all the six service

qualities (reliability, responsiveness, security, easy use accessibility, efficiency).

Opinion regarding the problems of e-banking services; Table 21 indicates the opinions of the respondents regarding the problems

faced by them while dealing with the e-banking services. A majority (13.4%) of

the respondents have given fifth rank for the problem inadequate knowledge

about the usage of e-channels , a majority(13.4%) have given first rank for the

problem unsuitable location of ATMs , majority (18%) of the respondents have

given fourth rank for the problem number of ATMs not sufficient, majority(40%)

of the respondents have given fourth rank for the problem poor network,

majority (33.8%) of the respondents have given second rank for the problem lack

of interest from the customers, majority (34%) of the respondents have given

fourth rank for the problem password forgotten. vast majority (33.8%) of the

respondents have given fourth rank the problem card misplace, vast

majority(62.6 %) of the respondent have given second rank for the problem

misuse of card and frauds, vast majority (59.2%) of the respondents have given

260

second rank for the problem of lack of confidence, Out of the total respondents a

vast majority (45.4%) of the respondents have given second rank for the problem

technical hurdles of ATMs and smart card.

Cross tabulation on age of the respondents and the qualities of overall e-banking services.

Out of the total respondents 54.2 percent of the respondents of the age

group of 26 to 35 years, 55.5 percent of respondents of the age group of 36 to 45

years, 55.6 percent of the respondents of the age group of 56 years and above

age perceived that the overall e-banking services qualities are high. 63.2 percent

of age group of below 25 years and 55.6 percent of 46 to 55 years perceived that

the overall e-banking services qualities are low.

Cross tabulation on gender and the qualities of e-banking services This indicates that there is no significant association between age of the

respondents and their overall e-banking services qualities. The mean value

depicting gender level satisfaction with regard to each service quality dimension

and overall e-banking services qualities. Compared to mean value of female

gender 117.68 the mean value of male gender 121.15 shows the male gender

satisfied with the e-banking services qualities.

Cross tabulation on association between occupation and the qualities of e-banking services

The mean value calculated on the opinions perceived by the respondents

of different occupational groups regarding the e-banking services qualities

provided by banks.

The reliability level of professionals regarding e-banking service quality

shows the highest mean value of 19.82

The responsiveness of banks in providing e- banking services in the

opinion of the businessmen shows the highest mean value of 19.69.

261

The security provided by the banks viewed by the other occupational

group with the high mean value of 20.28.

The other occupational group has perceived the easy use of e-banking


The overall mean value of professional respondents is 120.88, agriculturist

is 116.22, businessman is 120.93, salaried class is 119.00, others is 121.72 with

regard to overall e-banking services qualities.

Cross tabulation on difference between educational qualification of the respondents and the qualities of overall e-banking services

The respondents of professional level have high level of mean value

121.19, graduate level have mean value of 120.76, post graduate level have the

mean value of 119.92 and below HSC level have a mean value of 119.28.

Cross tabulation on difference between income of the respondents and the overall e-banking services qualities. The respondents belonging to the income group of 20001 to 30000 have

the highest mean value of 121.54. the respondents of the income group of

30001 to 40000 ranks next with the mean value of 120.62, the respondents of the

income group of below Rs.10000 ranks next with the mean value of 120.24, the

respondents of the income group of 10001 to 20000 ranks next with the mean

value of 119.55, the respondents of the income group of 40001 to 50000 ranks

next with the mean value of 118.97 and the respondent of the income group of

50001 and above ranks next with the mean value of 118.58.

Cross tabulation between name of bank of the respondents and the overall e-banking services qualities According to the opinions of the respondents, the Lakshmi Vilas Bank

have the highest mean value of 124.42, the Federal Bank rank the second with

the mean value of 121.40, the Catholic Syryan Bank is in the third rank with the

mean value of 121.06, the Indian overseas bank is in the fourth place with mean

262

value of 120.84, the Bank of India is in the fifth place with the mean value of

120.26, the Indian bank is in the sixth place with the mean value of 120.02, the

ICICI Bank is in the seventh place with the mean value of 119.98, the Karur

Vysia Bank is the eighth place with the mean value of 119.04, the Canara Bank

is in the ninth place with the mean value of 117.86 and the State Bank of India is

in the tenth place with the mean value of 117.92. The ranking indicates the level

of satisfaction of the bank customers with the service qualities provided by the

bank.

Cross tabulation on Association between no of bank account of the

respondents and their overall e-banking services qualities

A majority (51.3%) of the respondents having account in one bank

perceive that the e-banking services qualities provided by the banks are high. A

majority (51.4%) of the respondents having account in two banks perceive that

the e-banking services qualities provided by the banks are high. A majority

(66.7%) of the respondents having account in three banks perceive that the e-

banking services qualities provided by the banks are high.

FINDINGS BASED ON THE RESULTS OF TEST OF HYPOTHESES

1. H1: There is a significant difference between nationalized banks and private

banks of the respondents and the e-banking services

i. Tools used The hypothesis given above is tested using Mann-Whitney test

ii. Results The table 4.23 indicates that there is no significant difference between

nationalized banks and private banks of the respondents and their e-banking

services. [ATM/Debit card=.159> 0.05/ Credit card=.459>.0.05/mobile

banking=.165>0.05/online banking=.912>0.05/Tele banking =.846>0.05] It is

clear that the customers are willing to use the e-banking services but they do not

give much consideration whether the bank is nationalized or private.

263

2.H1 : There is a significant difference between nationalized banks and private

banks of the respondents and their various problems faced in e-banking

services.

i. Tools used The hypothesis given above is tested using Mann-Whitney test

ii. Results The table 4.24 reveal that there is no significant difference between

nationalized banks and private banks of the respondents and their various

problems faced in e-banking services. [Inadequate knowledge about the usage of

e channels=.002<0.05/unsuitable locations of ATMs=.805>0.05/, number of

ATMs not sufficient=.686>0.05, poor network=0.034<0.05/ lack of interest from

the customers=.672>0.05/ password forgotten=.005<0.05/ card

misplaced=.938>0.05/misuse of cards and frauds=.337>0.05/, lack confidence

=.184>0.05,technical hurdles of ATMs and smart card=.267>0.05]. it is clear

that the problems faced by the respondents may decrease their e-banking habits. 3.H1: 3 There is no significant difference between age, gender, occupation, area

of residence, monthly income of the respondents and the qualities of

overall e-banking services.

3.1 H1: There is a significant association between age of the respondents and

their overall e-banking services qualities. i. Tools used

The hypothesis given above is tested using Chi-square test ii. Results

The table 4.25 reveals that there is no significant association between age

of the respondents and their overall e-banking services qualities [Reliability =

.990 > 0.05 / Responsiveness = .928 > 0.05/ Security = .435 > 0.05 / Easy use

=.212 > 0.05/ Accessibility = .242 > 0.05 / Efficiency = .294 > 0.05 / Overall e-

264

banking services qualities = .268 > 0.05]. it is clear that the respondents

according to their level of age gain knowledge about the e-banking services for

their utility,

3.2 H1 : There is a significant difference between gender of the respondents and


i. Tools used The hypothesis given above is tested using students t test.

ii. Results The table 4.26 reveals that there is a significant difference between




Overall e-banking services qualities = .011 < 0.05]. it is clear that female

category still not ready with full confidence in their opinion to deal with e-banking

services.

3.3 H1 : There is a significant difference between occupation of the respondents

and the qualities overall e-banking services.

i. Tools used The hypothesis given above is tested using one way ANOVA ‘F’ test. ii. Results The table 4.27 reveals that there is no significant difference between

occupation of the respondents and the qualities of the overall e-banking services.


Easy use = .407 > 0.05/ Accessibility = .823 > 0.05/ Efficiency = .018 < 0.05/

Overall e-banking services qualities = .482 > 0.05]. It is clear from the results

that the respondents will be utilizing the e-banking services according to their

necessity.

265

3.4 H1: There is a significant difference between educational qualification of the

respondents and the qualities overall e-banking services. i. Tools used The hypothesis given above is tested using one way anova ‘f’ test ii. Results The table 4.28 reveals that there is no significant difference between

educational qualification of the respondents and the qualities of the overall e-

banking services [Reliability = .039 < 0.05/ Responsiveness = .107 > 0.05/

Security = .145 > 0.05/ Easy use = .657 > 0.05/ Accessibility = .573 > 0.05/

Efficiency = .338 > 0.05/ Overall e-banking services qualities = .773 > 0.05]. It is

clear that the respondents are using the e-banking services based on their

occupational needs.

3.5 H1 : There is a significant difference between income of the respondents and


i. Tools used : The hypothesis given above is tested using one way ANOVA ‘f’ test. ii. Results


income of the respondents and the qualities of overall e-banking services


Easy use = .548 > 0.05/ Accessibility = .052 < 0.05/ Efficiency = .191 > 0.05/

Overall e-banking services qualities = .787 > 0.05]. It is clear that in spite of the

income level all the income group people are utilizing the e-banking services.

266

4. H1: There is significant difference between account access through internet of

the respondents and the qualities of the overall e-banking services. i. Tools used The hypothesis given above is tested using students t test.

ii. Results The table 4.30 reveals that there is no significant difference between the

respondents who are having account access through internet and the qualities of

overall e-banking services. [Reliability = .584 > 0.05/ Responsiveness = .377 >

0.05/ Security = .412 > 0.05/ Easy use = .516 > 0.05 / Accessibility = .057 < 0.05/

Efficiency = .013 < 0.05/ Overall e-banking services qualities = .011 < 0.05]. It is

clear that the respondents are willing to utilize the e-banking services .

5.H1: There is significant relationship between the e-banking services like

ATM/ Debit card, Credit Card, Mobile banking, online banking and Tele

banking of the respondents and the overall e-banking services.

i. Tools used The hypothesis given above is tested using Pearson correlation test. ii. Results


nature of e banking services like ATM/Debit card, Credit card, Mobile banking,

Online banking and Tele banking of the respondent and their overall e-banking

service. it is clear that the nature of e-banking services are connected to each

other in one way or another.

6. H1 : There is a significant relationship between various modes of e-banking

services (mobile recharging, payment of telephone bill, payment of electric

bill, money transfer, railway ticket booking, air ticket booking, filing of tax

returns, investment etc) of the respondents and the qualities of overall e-

banking services.

267

i. Tools used The hypothesis given above is tested using pearson correlation t test. ii. Results The table 4.32 reveals that there is no significant relationship between

various modes of e-banking services (mobile recharging, payment of telephone


booking, filing of tax returns, investment etc) of the respondents and the qualities

of overall e-banking services. The speed and facility of the e-banking services

has made customers to utilize the facility in spite of the qualities of e-banking

services.

7. H1: There is a significant relationship between various modes of e-banking

services (mobile recharging, payment of telephone bill, payment of electric

bill, money transfer, railway ticket booking, air ticket booking, filing of tax

returns, investment etc) of the respondents and their various problems of

overall e-banking services. i. Tools used The hypothesis given above is tested using pearson correlation test.

ii. Results The table 4.33 reveals that there is no significant relationship between

various modes of e-banking services (mobile recharging, payment of telephone


booking, filing of tax returns, investment etc) of the respondents and their various

problems of overall e-banking services. It is clear that the problems related to

the e-banking services may reduce the habits of e-banking services.

268

OTHER RETILED HYPOTHESES TESTED RESULTS 1. Research hypothesis There is a significant difference between name of bank of the respondents


Null hypothesis

There is no significant difference between name of bank of the


Statistical test One way ANOVA ‘f’ test was used to test the above hypothesis

Findings The table 4.34 reveals that there is no significant difference between





greater than table value. So the research hypothesis is rejected and the null


2. Research hypothesis There is a significant association between number of bank account of the

respondents and their overall e-banking services.

Null hypothesis

There is no significant association between no. of bank account of the

respondents and their overall e-banking services.


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Findings The table 4.35 reveals that there is no significant association between

number of bank account of the respondents and their overall e-banking services



Overall e-banking services =.389 > 0.05]. As the calculated value is greater than

the table value, the research hypothesis is rejected and the null hypothesis is

accepted.

3. Research hypothesis

There is a significant difference between name of bank of the respondents

and their e-banking services

Null hypothesis There is no significant difference between name of bank of the

respondents and their e-banking services.

Statistical test Kruskal Wallis test was used to test the above hypothesis

Findings The results reveals that there is no significant difference between name of

bank of the respondents and their nature of e-banking channels. [ATM/Debit

card-=.305>0.05/ credit card=.931>0.05/mobile banking=.717>.369/ online

banking = .369>0.05/ Tele banking=.719>0.05 ]. As the calculated value is

greater than the table value, the research hypothesis is rejected and the null


4. Research hypothesis There is a significant difference between occupation of the respondents


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Null hypothesis There is no significant difference between occupation of the respondents


Statistical test Kruskal Wallis test was used to test the above hypothesis

Findings The results reveals that there is no significant difference between


channels. [ ATM/Debit card=.993>0.05 / Credit card=.912>0.05 / Mobile

banking=.458>0.05 / Online banking=.242>0.05 / Tele banking=.183>0.05] . As

the calculated value is greater than the table value, the research hypothesis is

rejected and the null hypothesis is accepted.

5. (table 4.37) Kruskal – Wallis test been used for the statistical inference

of difference between occupation of the respondents and the various problems

faced by them. It revealed that there is no significant difference between

occupation of the respondents and various problems faced by them in e-banking

services. .[inadequate knowledge about the usage of e-channels=.197<0.05 /

unsuitable location of ATMs= .533>0.05 / No of ATMs not sufficient=.657>0.05 /

Poor network=.810<0.05 / Lack of interest from customers=.012>0.05 / pass

word forgotten=.366>0.05 / card misplaced=.116>0.05 / Misuse of card and

frauds=.014<0.05 / lack of confidence=.010<0.05 / technical hurdles of ATMs

and smart card=.549>0.05]

6. (table 4.38)Kruskal –Wallis test been used for the statistical inference of

the difference between the name of the bank of the respondents and the various

problems faced by them in the e-banking services. It is inferred that there is no

significant difference between the name of the bank of the respondents and the

various problems faced in e-banking services. [inadequate knowledge about the

usage of e-channels=.261>0.05 / unsuitable location of ATMs= .827>0.05 / No of

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ATMs not sufficient=.276>0.05 / Poor network=.038<0.05 / Lack of interest from

customers=.065>0.05 / pass word forgotten=.222<0.05 / card

misplaced=.972>0.05 / Misuse of card and frauds=.950>0.05 / lack of

confidence=.533>0.05 / technical hurdles of ATMs and smart card=.123>0.05]

7. The table 4.40 indicated that the inter correlation matrix been used for

the statistical inference of relationship between the e-banking service qualities. It

indicated that there is a significant relationship between reliability and

responsiveness, reliability and easy use, security and easy use, security and

efficiency.

There is a highly significant relationship between easy use and

accessibility, easy use and efficiency. Reliability, responsiveness, security, easy

use, accessibility, efficiency and overall e-banking services are highly

significantly related

There is a significant relationship between reliability and responsiveness,

easy use and of overall e-banking services. There is a highly significant

relationship between reliability, responsiveness, security, easy use, accessibility,

efficiency and overall e-banking services.

8. Table 4.41 indicates that the inter correlation matrix been used to infer

the relationship between the e-banking services and the e-banking services was

used to identify the significance of relationship. It is inferred that the credit card

and Tele banking, mobile banking and online banking, mobile banking and Tele

banking, online banking and Tele banking were having highly significant

relationship.

9.The table 4.42 indicates that the inter correlation matrix was used to

infer the relationship between problems of e-banking services and channels and

problems of e-banking services and channels.

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There is a significant relationship between inadequate knowledge about

the usage of e-channels and technical hurdles of ATMs and smart card. There is

also a significant relationship between lack of interest from customers and

misuse of cards and frauds, lack of confidence. There is a significant relationship

between misuse of cards and frauds and lack of confidence and technical

hurdles of ATMs and smart card.

There is highly significant relationship between technical hurdles of ATMs

and smart card and poor network, lack of interest from customers, pass word

forgotten, card misplaced, lack of confidence.

SUGGESTIONS The analysis of work with different aspects of e-banking services shows

the satisfaction level of the customers which can be used by banks as guide line

for necessary actions leading to improvements of the quality of the e-banking

services they offer.

The study was carried out to determine the opinions and problems of

customers. This will enable the banks to understand at which point the customers

cease to be satisfied with service they are receiving

The use of technology in banking enhances the service offering to the

customers. The banks must increase their efficiency so as to provide more

efficient services to the customers. Banks need to pay more attention in

promoting the e-banking service among the customers and the general public.

Banks must take more steps to introduce the e-banking habits among the age

group below 25 years. This can be done through the educational institutions.

Also the banks must pay attention in increasing the quality level of the e-banking

services. The banks may help the customers gain more knowledge about the e-

banking services. In the research the researcher had identified that more than

90 percent of the customers are utilizing the ATM/Debit card services and the

relevant problems faced by the customers regarding ATM/Debit card is the

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number of ATMs not sufficient . unsuitable locations of ATMs , Technical hurdles

of ATMs. The banks must take necessary steps to improve the efficiency in the

service delivery hence boosts up customers’ confidence.

The banks must make the systems for payment of electricity bill, payment

of telephone bill, payment of tax, etc,. very simple that an ordinary man can find it

easy to handle e-banking services. Like ATM/Debit card service other nature of

e-banking services must be made simple and available to customers ,so that the

customers may feel free of fear of fraud and with approachable techniques.

The banks must get customers’ feedback to handle the complaints. This

not only provides a service to the customers but also provide the bank with

valuable information for future development on electronic service. The e-banks

must take a lot of effort in creating awareness among existing and prospective

customers about the benefits of the e-banking services as the success of e-

banking depends on customers’ satisfaction. The banks should organize public

exhibitions and talk shows and make the services accessible to all customers.

Thus customers’ interest would be aroused

Banks need to develop their e-banking services so that their service will

not be out of date, thus leading to that customer choose other e-banks which are

better developed and modern. Banks need to recognize the potential of new

innovation and utilize them, besides implementing new innovations , it is

important that banks also develop their services and to personalize even further

in order to satisfy their customers. The banks have to meet the needs of

customers and continuously improve their ability to do so. The banks have to be

accurate, reliable, helpful and understanding to try to win customers’ confidence

by providing adequate security. They should also ensure good connectivity and

power base that will enable them to serve customers faster and more

conveniently and no time should service cease as a result of network problem.

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Future research This research should be further continued with large number of sample

size to identify the expectations of the customers.

The research also recommend that a deep study should be carried out to

establish the challenges encountered by the customers in the process of using

the e-banking services.

This research also recommends a deep study in the area nature of e-

banking services alone. Different types of e-banking services modes can be

taken as research area to have a depth study. Problems of e-banking can be

taken as the research area to have deep study. Any specific qualities of e-

banking services can be dealt as a broader area of research.

Conclusions Electronic banking has become a necessary survival weapon and is

fundamentally changing the banking industry worldwide. Today, the click of a

mouse offers bank customers services at a much lower cost and also empowers

them with unprecedented freedom in choosing vendors for their financial service

needs. No country today has a choice-whether to implement E-banking or not

because of the global and competitive nature of the economy. Banks have to

upgrade and constantly think of new innovative customized packages and

services to remain competitive. The study finds that many banks’ customers are

fully aware of e-banking services. Most customers however still patronize the

bank branches and find interaction with human tellers as very important as they

got distracted with the problems (inadequate knowledge about the usage of

e-banking services, lack of interest, poor net work, pass word forgotten, card

misplace and lack of confidence. It also finds that customers enjoying electronic

banking services are still not satisfied with quality and efficiency of the services.

Customers perception of and reactions to the developments of e-banking

services are issues of concern to both government and banking industry. A lot

need to be done to create confidence in the minds of customers about the

275

benefits and security of the e-banking services. There is a need for total

satisfaction with regard to all the qualities of nature of e-banking services and

different modes of services.

A special emphasis must be given for the security which would promote

customers in using e-banking services to the largest extent.

BIBLIOGRAPHY

Websites

1. http://www.banknetindia.com

2. http://www.rbi.co.in

3. http://www.indianbankassociation.org

4. http://www.polaris.co.in

5. http:// www.ejise.com

6. http://www.acadjournal.com

7. http://www.doaj.org

8. http://www.researchersworld.com

9. www.sbi.com

10. www.canarabank.com

11. kvb@net

12. http://www.icicibank.com

13. LVBiNET

Books and journals referred 1. Tech quest 2003

2. IBA- Indian year Book 2001

3. RBI bulletins

4. e-service journal

5. journal of internet banking and commerce

6. journal of financial services marketing

7. The journal of banking studies.

8. Marketing intelligence and planning

9. Professional Banker

10. Journal of Organizational computing and Electronic Commerce

11. Business Review

12. Internet journal of electronic finance

13. Journal of Marketing Management

14. Internet journal of Financial Services Management.

15. Internet Research

APPENDIX QUESTIONNAIRE

COMPARATIVE STUDY ON E-BANKING SERVICES BETWEEN NATIONALIZED AND PRIVATE BANKS IN TRICHIRAPPALLI DISTRICT

(A study from customers’ perspective)

QUESTIONNAIRE 1. Name :

2. Sex : 1. Male 2. Female

3. Age : ………………………

4. Occupation : 1. Professional 2. Agriculturist

3. Businessman 4. Salaried Class 5. Others

5. Educational background : 1. Below Hsc 2. Graduate

3. Postgraduate 4.Professional

6.. Monthly Income : ……………………..

7. specify the frequency of using of e banking service for the given below

operations (In a 3 month duration)

Services Yes / No No. of Time

Mobile recharge

Payment of telephone bill

Payment of electric bill

Money transfer

Railway ticket booking

Air ticket booking

Filing of tax returns

Investment and etc

8. Name of your bank : …………………………… 1. Nationalized 2.

Private

9. In how many banks do you have account? ………………..

10. Do you have account access to internet : 1. Yes 2. No

if yes, 1.at home 2.office 3.browsing centre

11. How secure you feel with your financial information available and managed

over internet?

1. Very secure 2. Secure 3. Not sure

4. Unsecure 5. Highly unsecure

Nature of e-banking services

1. Which of the following e-channels do you prefer

Yes /No No.of times Rank

ATM / Debit card

Credit card

Mobile banking

Online banking

Tele banking

E-BANKING SERVICE QUALITIES

Sl.no Reliability Strongly

agree Agree

No opinion

Disagree Strongly disagree

1.

Relevant and

accurate

information

2. Updated

information

3. Accurate record

4.

More service

attitude(lowest

service charges)

5.

Restricts

unauthorized

access

Responsiveness Strongly

agree Agree

No opinion


1. Prompt responses

for online requests

2.

Connects

immediately to

bank accounts

3.

Immediate help for

problems or

queries

4. Responsive demo

and advertisement

5.

Provides

information with

care and attention

Security Strongly

agree Agree

No opinion


1.

No misuse of

personal

information

2. Safe with online

transaction

3.

Secure in providing

personal

information

4. Atms have secure

location

5. Multi-kind security

control

Easy Use Strongly

agree Agree

No opinion


1. Service systems

are easy to use

2. Easy navigation

through web pages

3.

Systems are clear

and

understandable

4. Atm locations are

reachable

5.

Facilitates

investment

planning

Accessibility Strongly

agree Agree

No opinion


1.

Available all

24hrs/day, 7 days

a week

2. Anytime conduct of

transaction

3.

Able to get on site

quickly and reach

the bank

immediately

4. Easy proximity

5. Facilitates online

shopping

Efficiency Strongly

agree Agree

No opinion


1. Access and

contact

2. Care and speed of

using the websites

3. Staff

4. Speedy supply of

information

5. Standardized

services

PROBLEMS E-BANKING SERVICES (Rank)

S.No Factors Rank


2 Unsuitable location of ATMs

3 No of ATMS not sufficient

4 Poor network

5 Lack of interest from customers

6. Pass word forgotten

7. Card misplaced

8 Misuse of card and frauds

9 Lack of confidence

10 Technical hurdles of ATMs and smart card

A study from customers' perspectives

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