EXECUTIVE SUMMARY

The Promotion of online banking technology enabled the banks to enhance its operations with
cost cutting effectively and efficiently in order to handle daily banking affairs via online banking
channel. Customers are being facilitated by reducing their visits in banks and they can carry out
their transactions via internet or ATM Machines instead of personally visiting the branches. The
researches so far done reveal that mostly the customer of banks are unaware about online
banking services and there is a lack of trust among customers on online banking services. This
study examines the customer perception, preferences, problems and suggestions about online
banking in India. The study reveals that mostly customers prefer internet banking (IB) services
over branch banking due to reliability, convenience, speed, safety and security, cost
effectiveness, user-friendly, and error free system. In contrast the parallel finding shows that
security problems, lack of trust and knowledge, ATM machine problems etc. affect the adoption
decision of customers of internet banking services. This study will help the banks that how they
can improve the level of online banking services and what are the potential issues or services that
should be introduced in society to facilitate the customer in a better way and to compete their
rivals in banking industry as a whole.
The project for better evaluation and understanding is divided in the following chapters:-

Chapter 1 includes the introduction and importance of the topic, objectives of the study and
research methodology
Chapter 2 deals with the conceptual framework
Chapter 3 deals with literature review
Chapter 4 includes the data analysis of the data collected through survey.
Chapter 5 reflects the conclusion
Chapter 6 represents the recommendations for banks

CHAPTER 1
INTRODUCTION

1.1 Importance of the study

This study is of great importance specially for banking industry. This research will help the
managers to cope the problems of customers about IB services which are indicated in the study.
The customers views have also been taken in same study about those IB services which are still
not available. So in relation to that information it will help the managers to formulate strategies /
policies about those IB services which are still unavailable to the users of IB services and also
give the competitive advantage against other banks and also facilitate to compete global market.
In result new banking strategies will fulfill the customers requirements about IB services and
increase customer loyalty as well.

1.2 Objective of the Study

The main objective of this study is to know about the customer perception regarding the usage of
online banking in India. The study further explores either customer feels the Internet Banking as
a valuable and useful step of technology in banking services or not. For this purpose to conduct
the research in every city of India is very difficult because data collection is not an easy task at
national level. For the ease of data collection and to save the time & cost the research has been
conducted online . In order to know all about Internet Banking, the information which is
gathered is split up into 3 parts. Initially, the study explored that why customers use internet
banking (IB). Secondly, why customers do not use IB and in the last we took customer
perceptions about improvements that should bring in IB services. This information will become
very helpful for managers to determine the customer perceptions about those IB services which
are still not available to them and help them to formulate strategies / policies about IB according
to customer needs and wants.
The following are the objectives of the study:
1. Reasons of using IB of customers and their satisfaction level
2. Determining the main reasons for not using IB.
3. Determine the customer perception about new IB product and services.

1.3 Hypothesis testing

Three objectives and hypothesis are generated which are given below. They are
investigated and explained briefly in next sections.
Objective 1: To investigate the level of satisfaction and trust in using IB in Qatar.
Hypothesis 1: Large number of customers perceive IB as not safe or secure channel for
conducting their banking transactions, however, users are generally satisfied with the service.
Objective 2: To determine the main reason for not using IB.
Hypothesis 2: Various factors can affect the adoption of IB. These could be the security
concerns about IB, lack of knowledge, and demographic factors etc.
Objective 3: To determine the perceived importance of diverse IB services (current & new).
Hypothesis 3: Obtaining general information about accounts status is perceived as more
important than other services that require conducting transactions.

1.4 Research methodology

To measure these objectives, empirical data is used for analyzing and finding the proper
result. For this purpose, questionnaires are designed which are explained in detail below:
Questionnaire Design
Main objective of this study is to observe the behavior of customers towards internet banking. To
know customers perception whether they like or dislike internet banking and their
recommendations about internet banking, a sample questionnaire was designed in which 5-Point
Likert style scale is used. To collect the information and data about the potential of bank
customers for which eight questions are used. Personal information such as mobile number,
address etc is avoided in questionnaire.
Data Collection
The study is based on primary data collected from two hundred banks customers. All
questionnaires were completed one by one and properly reviewed. During the data gathering the
respondents were asked to fill first section of the questionnaire if they are satisfied with online

banking services or to fill second section if they are not satisfied. The third portion of
questionnaire is for all respondents either they are satisfied or not.
Research type
Descriptive research is also called Statistical Research. The main goal of this type of research is
to describe the data and characteristics about what is being studied. The idea behind this type of
research is to study frequencies, averages, and other statistical calculations. Although this
research is highly accurate, it does not gather the causes behind a situation. Descriptive research
is used to obtain information concerning the current status of the phenomena to describe "what
exists" with respect to variables or conditions in a situation.

Sampling
Random and Convenience sampling technique has been used. It is also called haphazard or
accidental sampling. Members of the population are chosen based on their relative ease of
access. To sample friends, co-workers, or shoppers at a single mall, are all examples of
convenience sampling. Sometimes called grab or opportunity sampling, this is the method of
choosing items arbitrarily and in an unstructured manner from the frame. Though almost
impossible to treat rigorously, it is the method most commonly employed in many practical
situations.

Statistical tools used

The main statistical tools used for the collection and analyses of data in this project are:
Pie Charts
Bar Graphs
Tables

The research methodology can be summarized as under:

Sampling Unit

Bank Customers

Sampling Size

200

Sampling Technique

Random and Convenience sampling.

Project Instrument

Standardized questionnaire

CHAPTER 2
CONCEPTUAL FRAMEWORK

2.1 What is online banking?

A banker or bank is a financial institution whose primary activity is to act as a payment agent
for customers and to borrow and lend money. It is an institution for receiving, keeping, and
lending money.
Online banking
Online banking (or Internet banking) allows customers to conduct financial transactions on a
secure website operated by their retail or virtual bank, credit union.
Internet banking (or E-banking) means any user with a personal computer and
a browser can get connected to his banks website to perform any of the virtual banking
functions. In Internet banking system the bank has a centralized database that i s w e b e n a b l e d . Internet banking is the term used for new age banking system. Internet banking is
also called as online banking and it is an outgrowth of PC banking. Internet banking uses the
internet as the delivery channel by which to conduct banking activity, for example, transferring
funds, paying bills, viewing checking and savings account balances, paying mortgages and
purchasing financial instruments and certificates of deposits. Internet banking is a result of
explored possibility to use internet application in one of the various domains of commerce. It is
difficult to infer whether the internet tool has been applied for convenience of bankers or for the
customers convenience. But ultimately it contributes in increasing the efficiency of the banking
operation as well providing more convenience to customers. Without even interacting with the
bankers, customers transact from one corner of the country to another corner. There are many
advantages of online Banking. It is convenient, it isnt bound by operational timings, there are no
geographical barriers and the services can be offered at a minuscule cost (IAMAIs, 2006).
Electronic banking has experienced explosive growth and has transformed traditional practices in
banking.
In its very basic form, e-banking can mean the provision of information about a bank and its
services via a home page on the World Wide Web (WWW). More sophisticated e-banking
services provide customer access to accounts, the ability to move their money between different
accounts, and making payments or applying for loans via e-Channels. The term e-banking will
be used in this book to describe the latter type of provision of services by an organization to its
customers. Such customers may be either an individual or another business. To understand the
electronic distribution of goods and services, the work of Rayport and Sviokla (1994; 1995) is a
good starting point. They highlight the differences between the physical market place and the
virtual market place, which they describe as an information-defined arena. In the context of ebanking, electronic delivery of services means a customer conducting transactions using online
electronic channels such as the Internet. Many banks and other organizations are eager to use this
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channel to deliver their services because of its relatively lower delivery cost, higher sales and
potential for offering greater convenience for customers. But this medium offers many more
benefits, which will be discussed in the next section. A large number of organizations from
within and outside the financial sector are currently offering e-banking which include delivering
services using Wireless Application Protocol (WAP) phones and Interactive Television (iTV).
Many people see the development of e-Banking as a revolutionary development, but, broadly
speaking, e-banking could be seen as another step in banking evolution. Just like ATMs, it gives
consumers another medium for conducting their banking. The fears that this channel will
completely replace existing channels may not be realistic, and experience so far shows that the
future is a mixture of clicks (e-banking) and mortar (branches). Although start up costs for an
internet banking channel can be high, it can quickly become profitable once a critical mass is
achieved.

2.2 Need for internet banking:

One has to approach the branch in person, to withdraw cash or deposit a cheque or request a
statement of accounts. In true Internet banking, any inquiry or transaction is processed online
without any reference to the branch (anywhere banking) at any time. Providing Internet banking
is increasingly becoming a "need to have" than a "nice to have" service. The net banking, thus,
now is more of a norm rather than an exception in many developed countries due to the fact that
it is the cheapest way of providing banking services.
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Banks have traditionally been in the forefront of harnessing technology to improve their
products, services and efficiency. They have, over a long time, been using electronic and
telecommunication networks for delivering a wide range of value added products and services.
The delivery channels include direct dial up connections, private networks, public networks etc
and the devices include telephone, Personal Computers including the Automated Teller
Machines, etc. With the popularity of PCs, easy access to Internet and World Wide Web
(WWW), Internet is increasingly used by banks as a channel for receiving instructions and
delivering their products and services to their customers. This form of banking is generally
referred to as Internet Banking, although the range of products and services offered by different
banks vary widely both in their content and sophistication.
From the perspective of banking products and services being offered through Internet, Internet
banking is nothing more than traditional banking services delivered through an electronic
communication backbone, viz, Internet. But, in the process it has thrown open issues which have
ramifications beyond what a new delivery channel would normally envisage and, hence, has
compelled regulators world over to take note of this emerging channel.

Some of the distinctive features of internet banking are:

1. It removes the traditional geographical barriers as it could reach out to customers of different
countries / legal jurisdiction. This has raised the question of jurisdiction of law / supervisory
system to which such transactions should be subjected,
2. It has added a new dimension to different kinds of risks traditionally associated with banking,
heightening some of them and throwing new risk control challenges,
3. Security of banking transactions, validity of electronic contract, customers privacy, etc.,
which have all along been concerns of both bankers and supervisors have assumed different
dimensions given that Internet is a public domain, not subject to control by any single
authority or group of users,
4. It poses a strategic risk of loss of business to those banks who do not respond in time, to this
new technology, being the efficient and cost effective delivery mechanism of banking
services,
5. A new form of competition has emerged both from the existing players and new players of
the market who are not strictly banks.

2.3 Evolution of e-banking

There have been significant developments in the e-financial services sector in the past 30 years.
According to Devlin (1995), until the early 1970s functional demarcation was predominant with
many regulatory restrictions imposed. One main consequence of this was limited competition
both domestically and internationally. As a result there was heavy reliance on traditional branch
based delivery of financial services and little pressure for change. This changed gradually with
deregulation of the in-E-Banking Management IGI Global, distributing in print or electronic
forms without written permission of IGI Global is prohibited industry during 1980s and 1990s,
whilst during this time, the increasingly important role of information and communication
technologies brought stiffer competition and pressure for a faster pace of change. The Internet is
a relatively new channel for delivering banking services.

2.4 Internet Banking Vs Traditional Banking

The basic difference between Internet banking and traditional banking is that in traditional
banking the customer has to visit the branch in person for the basic banking needs viz.
withdrawal or deposit of cash, transfer of funds, statement of accounts, etc.In Internet banking,
on the other hand, these operations can be performed through the PCs without physically visiting
the bank branch. It is a win-win solution both for customer and the bank. The customer is not put
to inconvenience of traveling, and the time so saved can be effectively utilized in other
productive ways, whereas the bank earns by having lower overheads, establishments, premises
and maintenance costs, in turn resulting into reduced per transaction cost. The greatest advantage
of Internet banking is that it enables a customer to perform basic banking transactions through
PC or Laptop, located anywhere in the world. Through the internet, customer accesses the banks
website for viewing the account details or performing the basic banking transactions.
The other major advantages emerging out of Internet banking are as follows:
1. The customer can perform basic banking transactions, round the clock.
2. No personal visit to the branch is required.
3. One can access and operate ones account from anywhere in the world.
4. The extensive, geographically divergent, traditional brick and mortar structure of the branch
need not be there
5. The requirement of staff at branches gets optimized.
6. Easy, convenient, efficient and speedy banking services both for the bank and the customer.
7. Transaction is automatically reconciled and posted in all required data tables, thus reducing
the workload.

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2.5 Mechanics of internet banking

The basic steps involved in completing transactions through Internet banking are extremely
simple and are available in a user-friendly environment. One does not necessarily need to
possess detailed computer knowledge to complete transactions through internet banking. The
availability of a user-friendly demo version of the site as well as on-line help means that even
first time users are able to use the facility. The entire mechanism involved in Internet banking is
outlined below:
1. Access the Banks website
2. Click on the option which provides Internet Banking
3. Enter the User-ID, Password/PIN
4. Perform the requisite transactions
5. Logout

2.6 Services
Internet banking service offers banking services on-line with the same personal effort that is
received at the branch. On-line request are processed by a proactive team of personal bankers
adhering to service quality standards.
Services offered include the following:
1. Sending in request for a cheque book from the convenience of home
2. Viewing accounting statements on-line
3. Notification of change of address so as to update the records
4. Requesting for a draft on-line to be couriered at the mailing address specified by the customer
5. Transferring funds between one accounts of the customer to another account of the same
customer.
6. Viewing details of past 3 months transactions
Customer
7. Updating of foreign exchange currency rates
8. Intimating on-line about a stop payment
9. Notification of lost/stolen ATM card
The internet banking service adds more value to NRIs who can view their balances online and
also effect fund transfer, just at the click of a mouse. Moreover, Internet banking has no time
zones and is accessible round the clock without restricting it to any geographical boundary.

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2.7 Drawbacks of internet banking

Despite the fact Internet banking has come to revolutionize the whole way the banking is
transacted in modern times, it is not free from criticism. Following are some of the drawbacks of
Internet banking:
1. Needs a Computer
In order to use the Internet banking services, the user needs a computer and time to log on
to the website of the bank. This means that the target clientele is restricted to those who
have a home PC or can access the net through the office or cyber cafes. The customer has
to pay every time to check the balance. This can be done free at an ATM.
2. Restricted Use
Another drawback of Internet banking is that it is not possible that all transactions can be
carried out electronically. Many deposits and some withdrawals require the use of postal
services, which can be slow and reliable even in developed economies.
3. Unreliable Communication Facility
The use of Internet banking requires the use of uninterrupted telecommunication facility.
Where phone connections are not perfect and where on a home PC the modem often gets
disconnected, frequent and tedious log-on becomes necessary.
4. Slow Browsing
Often it becomes frustrating to browse the Internet to be able to access he host of
financial products that are made available in the website of the bank. Navigating around
websites on home computers is often slow and frustrating. Pages take inordinately long
time to load and, as Internet users have a particularly low irritation threshold; a few
frustrated attempts could put the user off, quite seriously.
5. Lack of Trust
The use of Internet banking services depend much on the trust reposed by the customers
of a bank on the Internet banking initiative of the bank. It therefore becomes an
imperative that Internet start-ups gain the trust of depositors before they will make
deposits. Customers may get less protection that with established banks.
6. Absence of Validity
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Absence of necessary legal framework for recognizing the validity of banking

transactions is another impediment for the Internet banking.
7. Safety Problem
Security threats on the Internet leads to perception of Internet banking as an unsafe
channel. This dissuades the customers in making popular use of the Internet banking It is
to be noted that most of the problems mentioned above are in the nature of teething
problems and bankers are quite alive to them and it is expected that these would be
eliminated over period of time.

2.8 Internet Banking Major Issues

There is a fear that in banking and in any other industry, the Internet may destroy basic business
pricing models. At the same time, it also opens up abundant opportunities .The major issues
relating to the use of Internet in the realm of banking and financial services are discussed below:
1. Sustainability
The internet banking creates perfect market conditions where customers have access to
more information and can more readily compare rates and financial products offerings.
This would pose considerable problems for banks as it would be difficult for them to
differentiate quality of customer service pricing and reliability through internet channels.
This would ultimately affect the banks sustainability as regards profit margins.
2. No Entry Barriers
Internet banking has no entry barriers. This encourages even new banks to establish a
physical distribution channel to successfully compete with current banking majors. This
way, Internet banking makes possible new start-up players to launch retail banking
services more economically.
3. Cost Factor
Many a time, Internet banking has resulted in pushing up the cost of bank operations.
This mat be due to fact that banks that start Internet banking operations, although
automate their front-end process for the customers, still largely depend upon manual
processes at the backend. A case in point is that the Internet customers receive their
statement on-line but paper statements are also sent. Similarly, customers complete
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account opening application on-line which is sent electronically to the bank. Many banks
print the account application and enter the application data into another system, thereby
increasing the operational overheads. Similarly, mail and distribution costs are still
necessary as the statement, cheques etc. are still mailed.
4. Dominant Traditional Banking
The development of Internet banking allows for the efficient delivery of a wide variety of
web based banking products. It simply adds to proliferation of technology based
delivering channels such as ATMs, phone banking, on-line banking etc. However,
customers, by and large, support traditional branch banking. Moreover, Internet based
transactions are generally not fully automated, as the same may require additional
telephone calls, paper work, data entry etc.
5. No Float Benefit
For quite a long time, banks are traditionally taken benefits of income from floats, the
short term us of funds during the period the funds are allowed to reach the destination.
The revenue from these resources will reduce since electronic channel like Internet
banking, speedup settlement processes.
6. Marketing Challenges
The proliferation of Internet Banking throws a challenge to the banking sector in that it
warrants banks to undertake changes in current structure and functional processes so as to
allow for the provision of efficient banking service. It often becomes difficult for the
banks to deliver information quickly as they are trapped by unaligned organizational
structure and costly legacy systems.
7. Marketing Advantage
Internet banking facilitates easy marketing of banking and financial products and
services. For instance, it allows customers to easily compare all the products and sign-up
for all the products irrespective of location.
8. Advantage for New Players
New players in the realm of Internet banking would find the going advantageous to them.
They command cost advantage over the older banks. This would prompt the new banks to

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indulge in undercutting of prices, thus paving the way for greater competition to old
banks.
9. Higher Ratings
Generally, stock markets tend to form a conservative opinion about old banks because of
their slow rate in adoption of technology. On the other hand, the internet advantage
would enable the new entrants to secure higher ratings. This would help them raise
money needed for business cheaply. This way, the new banks would attack the old banks
either organically or through acquisitions.

2.9 E banking support services:

Web Linking
A large no. of financial institution maintains sites on the websites are strictly informational while
others also offers to customers the ability to perform financial transactions such as paying bills
transferring funds etc.
Wireless e banking
Wireless banking is the delivery channel that can extend the reach and enhance the convenience
of Internet banking products and services. Wireless banking occurs when customers access a
financial institution's network(s) using cellular phones, pagers, and personal digital assistants (or
similar devices) through telecommunication companies wireless networks. Wireless banking
services in the United States typically supplement a financial institution's e-banking products and
services.
Person-to-person
Payments Electronic person-to-person payments, also known as e-mail money, permit consumers
to send money to any person or business with an e-mail address. Under this scenario, a
consumer electronically instructs the person-to-person payment service to transfer funds to
another Individual. The payment service then sends an e-mail notifying the individual that the
funds are available and informs him or her of the methods available to access the funds including
requesting a check, transferring the funds to an account at an insured financial institution,
transmitting the funds to someone else. Person-to-person payments are typically funded by credit
card charges transfer from the consumers account at a financial institution. Since neither the
payee nor the payer in the transaction has to have an account with the payment service, such
services may be offered by an insured financial institution, but are frequently offered by other
businesses as well. Banking Services through Internet:
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There are four types of plastic cards being used as media for making payments. These are:
1. Credit Card
2. Debit Card
3. Smart Card
4. ATM Card
1. CREDIT CARDS: - The credit card enables the cardholders to: Purchase any item like clothes,
jewellery , railway/air tickets, etc. Pay bills for dining in a restaurant or boarding and lodging in
hotel Avail of any service like car rental, etc.

2. DEBIT CARDS: -A debit card is issued on payment of a specified amount by the issuing
company like a telephone company to a customer on cash payment or on debiting his account by
a bank. Thus it is like an electronic purse, which can be read and debited by the required amount
.It may be noted that while through a credit card, the customer first makes a purchase or avails
service and pays later on, but forgetting the debit card, a customer has to first pay the due amount
and then make a purchase or avail the service. For this reason, debit card are not as popular as
credit cards.
3. SMART CARDS: -Smart Cards have a built-in microcomputer chip, which can be used for
storing and processing information. For example, a person can have a smart card from a bank
with the specified amount stored electronically on it. As he goes on making transactions with the
help of the card, the balance keeps on reducing electronically. When the specified amount is
utilized by the customer, he can approach the bank to get his card validated for a further
specified amount. Such cards are used for paying small amounts like telephone calls, petrol bills,
etc.
4. ATM CARDS: - The card contains a PIN (Personal Identification Number) which is selected
by the customer or conveyed to the customer and enables him to withdraw cash up to the
transaction limit for the day. He can also deposit cash or cheque.

16

CHAPTER 3
LITERATURE REVIEW

17

1. Rajesh Kumar Srivastava (2011) investigated that 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. The research is
focused on what are the customers 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. Qualitative
exploratory research using questionnaire was applied. 500 respondents were selected for
study after initial screening. They were all bank customers. The study revealed that
education, gender, income play an important role in usage of internet banking. Not much
research has been done on these areas as they were focused more on the acceptance of
technology rather than on people. The research corroborated the conceptual framework
stating that if skills can be upgraded there will be greater will to use internet banking by
consumers. Inhibitory factors like trust, gender, education, culture, religion, security,
price can have minimal effect on consumer mindset towards internet banking.

2. Rao et al. (2011) identified a theoretical framework 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. Internet banking is becoming more and more popular
today, as is banking via digital television. Beyond doubt, a substantial part of the future
of banking business lies in a banking environment that is less and less branch-based and
where customers are able to access banking services remotely. The automated service
quality research has been limited to relationship management rather than service quality
or its acceptance by consumer.

3. Corrocher (2011) 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. Technology has had a remarkable
influence on the growth of service delivery portions (Dabholkar & Bagozz, 2011).
18

4. Prof.K.T. Geetha1 & V.Malarvizhi (2011) had investigated that the factors which are
affecting the acceptance of e-banking services among the customers and also indicates
level of concern regarding security and privacy issues in Indian context. Primary data was
collected from 200 respondents through a structured questionnaire. Descriptive statistics
was used to explain demographic profile of respondents and Factor and Regression
analyses were used to know the factors affecting e-banking services among customer in
India. The finding depicts many factors like security and privacy and awareness level
increased the acceptance of e-banking services among Indian customers. The finding
shows that if banks provide them necessary guidance and ensure safety of their accounts,
customers are willing to adopt e-banking.

5. Arne Floh (2011) examined the importance of online loyalty such as trust, quality of the Web
site, quality of the service and overall satisfaction. Rather than investigating which factors drive
customers to use online banking instead of offline banking, this paper addresses the problem of
how to keep customers online and loyal to a specific supplier. A survey among more than 2,000
customers of an Austrian online bank was conducted and a structural equation modeling approach
was used to gain important insights into how customer retention in the online banking business
can be ensured. Satisfaction and trust were identified as important antecedents of loyalty.
Additionally, the moderating role of consumer characteristics (gender, age, involvement,
perceived risk and technophobia) was supported by the data.

6. R. Geetha (2011) had explained that the Online banking or Internet banking allows the
customers to conduct banking, financial and insurance transactions on a secure and
protected website operated by their retail or virtual bank. Normally the customer would
have to make a trip to the bank to do these transactions, but with the advent of internet
banking the ease of account operation for customers has gone up. All the customer
requires is a PC with an internet connection and internet banking login id and password
to use this facility.

7. Sankaran, Vidya (2010) aim was to find out the customers perception to internet
banking and also tries to examine whether there is any relation between various
demographic variables and customers perception about internet banking. The sample
consisted of 200 bank customers, 54 from State Bank of India, 44 from ICICI, 27 from
HDFC, 19 from other private sector banks, and 56 from other public sector banks. The
convenience sampling technique was adopted for selecting the respondents. Tool for
measuring the variables was developed by the researcher with the help of previous
studies. A questionnaire was developed on a five point likert scale. The reliability and
validity of the questionnaire was assessed and found to be 0.7501.
19

8. Malhotra, Pooja & Singh, B. (2010) investigates 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 data
for this study are based on a survey of bank websites explored during July 2009. The
sample consists of 82 banks operating in India. Multiple regression technique is
employed to explore the determinants of the extent of Internet banking services. The
results show that the private and foreign Internet banks have performed well in offering a
wider range and more advanced services of Internet banking in comparison with public
sector banks. Among the determinants affecting the extent of Internet banking services,
size of the bank, experience of the bank in offering Internet banking financing pattern
and ownership of the bank are found to be significant. The primary limitation of the study
is the scope and size of its sample as well as other variables (e.g. market, environmental,
regulatory etc) which may have an effect on the decision of the banks to offer a wide
range of Internet banking services. The purpose of the study is to help fill significant gaps
in knowledge about the Internet banking landscape in India. The findings are expected to
be of great use to the government, regulators, commercial banks, and other financial
institutions, e.g. co-operative banks planning to offer Internet banking bank customers
and researchers. An understanding of the factors affecting the extent of Internet banking
services is essential both for economists studying the determinants of growth and for the
creators and producers of such technologies. Moreover, this paper contributes to the
empirical literature on diffusion of financial innovations, particularly Internet banking in
a developing country, i.e. India.

9. Dr. Saroj K. Datta(2010) concluded that 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. Primary data was collected from
200 respondents, above the age of 35, through a structured questionnaire. Statistical
analysis, descriptive statistics was used to explain demographic profile of respondents
and also Factor and Regression analyses were used to know trend of internet use and
factors affecting e-banking services among adult customer in India. 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, Banks 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.

20

10. Polaris Software Lab (2010) had this study Polaris Software Lab Limited (POLS.BO),a
leading Financial Technology Company, launched Intellect(TM) PRIVACY based on
state-of-the-art technology and four patents filed by the Indian Institute of Technology
Madras. IndusInd Bank has become the first bank in India to implement Intellect(TM)
PRIVACY, an online and internet banking security card, for its internet banking
customers. The technology will protect customers and banks from practically all kinds of
phishing attacks, viz. deceptive e-mail, key/screen logger, brute force/dictionary attacks
and Trojans, etc .Intellect PRIVACY uses multi factor ,dynamic authentication
technology providing for authorizing online banking transactions, in a completely secure
platform. Commenting on the innovation, Professor L S Ganesh, Coordinator of the
programmer, said, "At IIT Madras, the Department of Computer Science and Engineering
and the Department of Management Studies got particularly interested in designing an
internet security technology that is cost efficient and easy to use in a rapidly growing ecommerce scenario, and transferring it commercially.

11. Azouzi, D. (2009) This paper aims to check if the current and prompt technological
revolution altering the whole world has crucial impacts on the Tunisian banking sector.
Particularly, this study seeks some clues on which we can rely in order to understand the
customers' behavior regarding the adoption of electronic banking. To achieve this
purpose, an empirical research is carried out in Tunisia and it reveals that panoply of
factors is affecting the customers-attitude toward e-banking. For instance ;age, gender
and educational qualifications seem to be important and they split up the group into
electronic banking adopters and traditional banking defenders and so, they have
significant influence on the customers' adoption of e-banking. Furthermore, this study
shows that despite the presidential incentives and in spite of being fully aware of the ebakings benefits, numerous respondents are still using the conventional banking. It is
worthy to mention that the fear of loss because of transactions errors or hackers plays a
significant role in alienating Tunisian customers from online banking.

12. Hill (2009) conducted a study concerned with identifying the characteristics of online
banking users. She mentioned that it is commonly assumed that demographics do
influence the acceptance of electronic self-service tools, such as online banking. The
result of the study was that people who use such services are young, trendy and high
earning. They actively seek out online banking tools, and they want to conduct all
transactions through the same channel.

13. B. Dizon, J.A. (2009) have founded that "E- Bakings appeal is primarily its
convenience. Clients now a days want instant results; they don't want to wait anymore,"
21

said Francisco M. Caparros,Jr., senior vice-president of Asia United Bank and president
of Banc Net. It's also turned out to be a more efficient way to process transactions, as ebanking does away with most of the paperwork that clients have to accomplish. "A lot of
people don't like filling forms," Mr. Caparros added. "Online banking, in particular, relies
on usernames and passwords which need to be protected," said Ferdinand G. La Chica,
first vice- president and marketing group head for Sterling Bank of Asia. These anti- theft
barriers are at times supplemented by transaction passwords and "tokens", often a key
chain-like device that is issued to the client and generates random, one-time passwords to
enable him to log into his account online. Last year, the Rural Bank Association of the
Philippines announced that its members are looking to appoint local merchants like sarisari stores as third party agents where consumers can open new accounts and make large
payments. Such informal outlets will enable banks to reach out to small-income
businesses and individuals, particularly those in the agrarian sector, most of who are
based outside the city center.

14. Uppal, R.K. & Chawla, R. (2009) highlights the customer perception regarding ebanking services. A survey of 1,200 respondents was conducted in Ludhiana district,
Punjab. The respondents were equally divided among three bank groups namely, public
sector, private sector and foreign banks. The present 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. Keeping in mind these problems faced by bank customers, this paper frames
some strategies like customer education, seminars/meetings, proper network and
infrastructure facilities, online shopping facilities, proper working and installation of
ATM machines, etc., to enhance e-banking services. Majority of professionals and
business class customers as well as highly educated and less educated customers also feel
that e-banking has improved the quality of customer services in banks.

15. Reeti, Sanjay, and Malhotra, A. (2008) examined about the Customers perspectives
regarding e-banking in an emerging economy. So that, the author determining various
factors affecting customer perception and attitude towards and satisfaction with ebanking 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
22

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 their satisfaction level and find slow transaction speed the most frequently faced
problem while using e-banking.

16. Hsun, K.S. (2008), This study considers the coherence of the financial service sector and
adopts different observational variables to identify innovation capital (training and R&D
density) and process capital (IT system sufficiency). The results show that human capital
has a direct impact on both innovation capital and process capital, which in turn affect
customer capital; while finally, customer capital affects business performance. In
addition, there is a negative relationship between process capital and customer capital in
the financial service sector. It suggests that in the financial service sector, customer
satisfaction relies on a sufficient degree of training and R&D density. Intemperate
investment on the support of e-banking operation systems may not be a good answer.

17. Malhotra, P. & Singh, B. (2007) stated that the larger banks, banks with younger age,
private ownership, higher expenses for fixed assets, higher deposits and lower branch
intensity evidence a higher probability of adoption of this new technology. Banks with
lower market share also see the Internet banking technology as a means to increase the
market share by attracting more and more customers through this new channel of
delivery. Further, the adoption of Internet banking by other banks increases the
probability that a decision to adopt will be made .An understanding of the factors
affecting this choice is essential both for economists studying the determinants of growth
and for the creators and producers of such technologies. From this perspective,
understanding the factors determining the adoption of technology becomes highly
relevant from the policy point of view. Moreover, the studies on the adoption of financial
innovations are related to developed markets, e.g. US or European banking markets.
Hence, this paper contributes to the empirical literature on diffusion of financial
innovations, particularly Internet banking, in a developing country.

18. Shah & Braganza (2007) indicates the Critical Success Factors in e-banking and the
author suggest in this article that the organizational factors, which are critical to the
success of e-banking, are investigated. Different pieces of literature report different
factors as key to success and generally based on subjective, perceptual data. A synthesis
of existing literature is a basis for survey questions. The data was collected from UK
23

based financial sector organizations who are offering their services on electronic
channels, using postal questionnaires. The top factors found to be most critical for the
success in e-banking are: quick responsive products/services, organizational flexibility,
services expansion, systems integration and enhanced customer service. An important
lesson from this research is that organizations need to view the e-banking initiative as a
business critical area rather than just a technical issue. They need to give attention to
internal integration, which may include channels, technology and business process
integration, and improving the overall services to their customers.

19. Awamleh (2006) analyses the internet banking channels and service preferences of
educated banking consumers in the UAE and examines the factors influencing the
intention to adopt or to continue the use of internet banking among both users and non
users of internet banking. It is shown that although the banking sector in the UAE is a
regional leader, internet banking in the UAE is yet to be properly utilized as a real added
value tool to improve customer relationship and to attain cost advantages. The
Technology Acceptance Model (TAM) was used to identify factors influencing the
intention to adopt and continued use of internet banking customers. Data was collected
from internet banking users and potential users in the United Arab Emirates and factor
analyses and multiple regression analyses were conducted to examine the data. Relative
usefulness is introduced as one of the factors and is defined as the degree to which a new
technology is better than existing ones. There is a significant difference between
users and non-users on six of the seven factors identified. Further, it was revealed that
relative usefulness, perceived risk ,computer efficacy and image had a significant impact
on continued usage of internet banking for IB Users, while relative usefulness and result
demonstrability were the only ones significant for Non-users of internet banking. The
effects of age, gender, income, and e-commerce users also explored. Result
demonstrability is significant for all categories of non-users except for those with income
below AED 7,000.Implications of results were discussed, and future research directions
outlined.

20. Bauer, Malik & Falk (2006) reviews the measuring the quality of E-Banking portals. In
the internet economy, the business model of web portals has spread rapidly over the last
few years. Despite this, there have been very few scholarly investigations into the
services and characteristics that transform a web site into a portal as well as into the
dimensions that determine the customers evaluation of the portals 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
24

support and responsiveness. Findings The identified dimensions can reasonably be

classified into three service categories: core services, additional services, and problemsolving services. Originality/value The knowledge of these dimensions as major
determinants of consumers quality perception in the internet provides banks a promising
starting point for establishing an effective quality management for their e-businesses.

21. Kamiya (2006) explains that indian banks are trying to make your life easier. Not just
bill payment, you can make investments, shop or buy tickets and plan a holiday at your
fingertips. In fact, sources from ICICI Bank tell us, "Our Internet banking base has been
growing at an exponential pace over the last few years. Currently around 78 per cent of
the bank's customer base is registered for Internet banking." To get started, all you need is
a computer with a modem or other dial-up device, a checking account with a bank that
offers online service and the patience to complete about a one-page application--which
can usually be done online. You can avail the following services: Bill payment Services,
Fund Transfer, Credit Card, Internet shopping, and Investment though Internet etc.
Due to the Internet banking the life of an individual becomes easy and raises the standard
of life of the humans.

22. Veneeva (2006) explains that the world is changing at a staggering rate and technology
is considered to be the key driver for these changes around us. Many activities are
handled electronically due the acceptance of information technology at home as well as at
workplace. Internet can be seen as a truly global phenomenon that has made time and
distance irrelevant to many transactions. The evolution of electronic banking started from
the use of automatic teller machines (ATM) and has Passed through telephone banking,
direct bill payment, electronic fund transfer and the revolutionary online banking .The
future of electronic banking according to some is the acceptance of WAP enabled
banking and interactive-TV banking (Petrus & Nelson, 2006). But it has been forecasted
that among all the categories, online banking is the future of electronic financial
transaction. The rise in the e-commerce and the use of internet in its facilitation along
with the enhanced online security of transactions and sensitive information has been the
core reasons for the penetration of online banking in everyday life.

25

CHAPTER 4
DATA ANALYSIS AND
INTERPRRETATION

26

Demographic Profile
1. From the total respondents 64% were males and 36% were females.

Gender
Female
46%
Male
54%

2. The chart below depicts the respondents classification based on user and non user criteria.
Out of total respondents ,144 respondents were internet banking users and 56 were non
users.

User-Non user
Non user
28%

User
72%

27

3. Most of the respondents belongs to the age group of 24-30, while 18-23 and 31-39 age group
respondents were almost equal in number.

Age
400%
300%
200%
100%
0%
18-23

24-30

31-39

28

Above 40

4. Level of satisfaction and trust in IB

The first research objective referred to the level of satisfaction and trust in using IB .The
respondents were provided with a list of 11 statements in question 4 of the questionnaire stating
the reasons for using IB. In relation to these statements, the respondents were asked to indicate
the degree of agreement with each of the statements. A 5-point Likert type-agreeing scale was
provided ranging from strongly disagree to strongly agree.
In terms of frequencies, the following results were found to be significant.
Vast majority of IB users agree that the service is more convenient than in-branch banking;
transactions can be done faster and allows easier maintenance of transaction activities. Overall,
most users agree that IB is better than in-branch banking, however, on average the users were
uncertain whether IB is more reliable or safer and secure.
Table 1: Extent of agreement with each statement as a reason for using IB
Q No

Statement

1
2
3
4

IB is more convenient than in-branch banking.

IB is more reliable and safer than branch banking.
IB transactions can be done faster than branch banking.
IB allows easier maintenance of transaction activities than branch
banking.
I use IB for better rates offered and charges only
I use IB to meet my cash requirement after the banks have closed.
I feel hesitation to wait in a queue for depositing / withdrawing the
cash.
I am Well Conversant with IB and I found it a User friendly system.
I Use IB as a Status Symbol.
I have a strong faith that machine cannot make any mistake.
I am quite satisfied with the transaction system of IB.

5
6
7
8
9
10
11

Strongly
Disagree
2
4
0
0

Disagree

Neutral

Agree

0
6
14
14

0
6
16
16

44
50
12
46

Strongly
Agree
80
60
84
50

2
12
0

10
14
16

28
6
26

80
8
40

6
86
44

12
2
16
6

14
52
28
12

14
24
26
10

62
38
52
40

24
10
4
58

Majority of the customers shows their intention that they are satisfied with Internet banking (IB)
services. They feel that IB is more reliable and safe than branch banking. It also provides easier
maintenance of transaction activities. Customers express in statement 5 that benefits / facilities
which they are enjoying from internet banking are more than its cost which they are paying.
From statement 7 it can be concluded that mostly customer prefer internet banking because they
are very busy & they do not want to waste their time by standing in queues and wait their turn for
depositing / withdrawing cash.
The frequencies of statements 1, 3and 6 are found that the customers who are satisfied with IB
shows their extreme level of satisfaction (Strongly Agree) with Convenience, Speed, and
Banking services after the banking business hours. Many customers take the procedure of branch
banking as a hectic or bore job and feel convenient in IB system. It means that these are the
critical factors which have a major contribution and important role in success of internet banking
29

(IB) and are on top priorities of the customers. This result gives the message to the top level
management of Banking sector that in order to retain and increase the number of users of IB
services they should not compromise on above mentioned critical factors.
The conclusion is that current IB users are generally satisfied with the service, which proves
hypothesis 1 true.
The level of satisfaction was also found from question 11 of the questionnaire, which asked the
respondents to indicate how satisfied they were with their last time using IB service. Here also, a
5-point Likert type scale was used from strongly disagree to strongly agree. The analysis
revealed that most of the users of IB services are generally satisfied with it as shown below in
Table 3 and Figure 1.
Table 2: IB users' level of satisfaction with the service

Valid

Missing
Total

Strongly Disagree
Disagree
Neutral
Agree
Strongly Agree
Total
System

Frequency
6
12
10
40
58
126
74
200

Percent
3.0
6.0
5.0
20.0
29.0
63.0
37.0
100.0

Valid Percent
4.8
9.5
7.9
31.7
46.0
100.0

Cumulative Percent
4.8
14.3
22.2
54.0
100.0

This table shows that 126 respondents (out of 200) fill this question in which 46% users are
strongly satisfied with IB services and 31.7% users mark on Agree point which also shows that
they are satisfied. Collectively 77.7% users of IB services are satisfied (Agree & Strongly Agree)
with IB services. So this result also proves the second Hypothesis True. Figure 1 of Statement 11
gives a quick view of the results.
Figure 1: IB users' level of satisfaction with the service

70
60
50
40
30
20
10
0
Strongly Disagree

Disagree

Neutral

30

Agree

Strongly Agree

5. Main reasons for not using IB

Opposite to the first research objective, the second objective referred to the main reasons for not
using IB. The respondents were provided again with a list of twelve statements in question 5 of
the questionnaire stating the reasons for not using IB. In relation to these statements, the
respondents were asked to indicate the degree of agreement with each of the statements. A 5point Likert type-agreeing scale was provided ranging from strongly disagree to strongly agree.
The relevant data in terms of frequency values for the twelve statements were presented in Table
4. In terms of frequencies, the following results were found to be significant.
Table 3: Extent of agreement with each statement as a reason for not using IB
Q No

Statement

12
13
14

I do not have a PC at home/work.

ATM Machine records incorrect Debit & Credit amounts.
I am not satisfied with the Security system of IB services especially
of ATM Machines.
Quality of IB services is bad.
It takes time to finalize the transaction.
I do not know how to use IB.
I do not trust the internet as a channel for banking as it is not safe.
I like meeting people and prefer face-to-face banking.
There are chances of Fraud and forged transactions in Internet
Banking services.
Whenever I need money I experienced problems with IB services.
E.g. ATM machine
I feel helpless (after business hours) when my card is stuck up by
ATM Machine.
I am NOT Satisfied with IB Services.

15
16
17
18
19
20
21
22
23

Strongly
Disagree
20
10
18

Disagree

Neutral

Agree

34
26
6

2
0
4

16
30
16

Strongly
Agree
2
8
30

14
8
24
20
38
4

10
6
26
12
20
14

8
4
4
2
0
26

38
28
16
30
6
18

4
28
4
10
10
12

12

26

24

10

24

28

12

18

20

22

On average, most non-users of IB disagree that any of the listed reasons above was a factor for
not using the service; however, the respondents were almost equally divided about the degree of
trust they attach to IB and most of them indicated they prefer in-branch banking rather than IB.
Therefore, this could be because of lack of trust in using IB. In support of this assumption, which
is the second hypothesis of the research, customers' comments were also used to prove it. Of the
200 surveyed respondents, 47 provided with their comments that are listed in Table 4 below.
Significantly, the figures show that the safety and security are what most bank customers
concerned about.
Table 4: Respondents Comments for not Using IB in Qatar
Comments
No. of Responses
Ensure high safety and security for using 28
IB
Make IB user-friendly
6
31

Speed up the time required to finalize 5

transactions
Improve the quality of IB services

Show detailed information of transactions

Provide up to date account information
Monitor the transactions better
Spread IB knowledge and lower internet
rate
Total

1
1
1
1
47

6. Perceived importance of IB services

The third objective of the research referred to the extent customers perceive IB services as
important. The respondents were provided with a list of 19 IB services in question 7 of the
questionnaire. In relation to these 19 services, the respondents were asked to indicate the degree
of importance they attach to using the services online. A 5-point Likert type importance scale
was provided ranging between very unimportant and very important . The relevant data in terms
of frequency values for the 19 banking services were presented in Table 5. The following
frequency results were found to be significant. The majority of respondents, 45-57% perceived
the top four IB services as very important compared with the other listed fifteen services, which
only 10-29% was perceived as very important. These top IB services were "review accounts
balances", "review credit cards balances", "obtain detailed account transaction histories" and
"review credit cards transactions." This clearly suggests again that overall most of the
respondents did not trust the IB as a channel to conduct their banking transactions, but perceived
it as very useful and important for obtaining information about their account status, which proves
hypothesis 3 of this research to be true.
Table 5 : Current and potential use of IB services

IB Services

Very
Unimport
ant.
12
18

Review accounts balances

Review credit cards balances
Obtain detailed account transaction
14
histories
Review credit cards transactions
20

32

Unimport
ant

Neutral

Importan
t

4
6

24
24

46
46

Very
Importan
t
114
106

42

50

90

44

42

90

Transfer funds between own

accounts
Transfer funds to other persons
accounts
Transfer funds to other accounts
outside the country
Pay bills using available cash in the
accounts
Pay bills using credit cards
Stop credit cards
Order checks books
Request SMS services
Order to buy IPO
Order to buy and sell shares
Open new accounts
Issue standing orders
Issue drafts
Apply for loans
Apply for credit cards

32

10

54

46

58

40

20

58

44

38

34

28

48

32

58

20

10

56

56

58

34
48
38
42
62
60
46
50
42
50
42

10
16
24
26
16
16
22
24
26
22
20

50
58
68
56
76
82
66
68
78
56
66

52
30
26
30
26
22
44
34
30
42
38

54
48
44
46
20
20
22
24
24
30
34

In this research, correlation results were also tested, however, no significance was found except
for few ones. For example, there was a strong positive relationship between variable 19 (Transfer
funds to other persons' accounts) and variable 22 (Pay bills using credit cards). This makes sense
as the IB user who feels safe and secure to use the service for transferring funds to other person's
accounts, he/she would also most probably feel the same way towards paying his/her bills online
using the credit cards. Similarly, there was a strong positive relationship between variable 20
(Transfer funds to other accounts outside the country) and variable 22 (Pay bills using credit
cards). Another strong positive relationship were found between variables 14, 15, 16, and 17
which are about obtaining information regarding account status. Again, here it makes sense as
the IB user who is risk averse, he/she would be less willing to us the service for conducting
banking transactions online.
In addition, the usage of the IB was tested to see whether it is associated with demographic
variables such as age, education etc. The conclusion is that IB is not associated with
demographic variables, as no strong correlation exists between them.

33

CHAPTER 5
CONCLUSION

34

In line with the global industries' move in acquiring the latest advanced technology to stay ahead
of competitors, banks throughout the world have notably been moving in the same direction.
Evidently, an internet-banking service is considered a new era in banking, which banks spend
considerable amount of money on to have it available to their customers and to cut their
operations costs. Unfortunately, evidences have shown that a large number of customers do not
use online banking for various reasons, despite its benefits and the availability of internet access
among most of the customers.
This study reveals that the major issues in the IB services are security, safety and the lack of trust
especially on ATM machines. Fraudulent transactions, robbery, bad and unreliable ATM
services (e.g. stuck-up the ATM card, incorrect Dr or Cr amount in the account etc) are the
reasons which are playing a vital role in reducing the trust of consumers on IB.
This research paper found that the major IB concern amongst customers was the safety and
security of the service, which forms a real obstacle to use the service. The research also found
that even most of those who frequently use the IB services, usually do not conduct much of
transactions, but find the service very useful for checking their account status. This means that
the IB services is not doing the purpose it was originally made for, which is to provide customer
convenience and reduce customer visits to the banks. The paper also found that lack of
knowledge could be one of the factors for having a low rate of IB usage.
The results also show that reliability, convenience, speed, safety and security have the major
contribution to retain and attract the customers. Finally the services which are not available by all
banks e.g. Cash depositing facility through ATM machines, SMS/E-mail Alert Service,
Payment of utility bills through internet etc are the most desirable services by the customers.

35

CHAPTER 6
RECOMMENDATIONS

36

Based on the results found in this paper, it is strongly believed that ensuring the security of IB
and familiarizing customers with how to use the service will definitely increase the rate of using
IB services. From this standing point, bank managers should consider this as a strategic objective
to maintain their customers and gain a competitive advantage against their rivals. It also requires
the local telecommunication company to reduce the internet rates in order to encourage more
customers to have access to the internet and it requires the government to support the bank
industry in achieving this objective because security is an issue that concerns the whole society.
In order to create and rebuilt the trust of customer banks should take further strong security
measures from every aspect in IB services. Banks should also improve and enlarge their
contribution through ATM to establish a long-lasting and continuous relationship with
consumers. They should focus on significant aspects of confidence and time alone as well as
reliable procedures of ATMs and other services.
Mostly customers are still unaware from IB services. So banks should take reasonable steps, for
example, advertising campaign, seminars etc in order to get aware the society from the uses and
benefits of IB services. Many IB services are still not offered by all banks. So commercial bank
should spend large amount on launching these services effectively. They should more
enthusiastically observe consumers preferences for triumphant reaction.
Government should also play its role in the development of IB. Government / State Bank should
reduce service charges on the transactions. It should introduce new policies which assist the
commercial banks to promote IB business.

37

LIMITATIONS
1. The duration of time for the study was limited & hence a comprehensive & elaborate
study could not be undertaken.
2. The limitations of secondary data will also be associated with my project.

38

BIBLIOGRAPHY
WEBSITES VIEWED :
1.
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3.
4.

www.scribd.com/doc/54308485/16/OPPORTUNITIES
www.scribd.com/doc/23737622/Any-Where-Money
www.scribd.com/doc/35549232/Sum-Int
http://en.wikipedia.org/wiki/atm

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banks in India by Siddharth Aggarwal, Institute of Management Studies 2007
2. A report on electronic banking and information technology in banks. by Dr. N.
Aravindakshan , M G University , Kottayam Kerala.

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39

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Management, Vol. 2, No. 1, pp.3046.
8. Provision of electronic banking in the UK and the republic of Ireland, Journal:
International Journal of Bank Marketing; year; 1999 volume; 17 Issue: 2 Page: 72-83

40

Questionnaire
Name: __________________
Gender: Male ( ) Female( )
Age (in years): 18-23

24-30

31-39

Above 40

Q: 1 Do you have a bank account?

* Yes
* No
Q: 2 Do you have an internet banking facility with you?
* Yes
* No
Q: 3 How often, do you use internet banking for the transaction purposes?
* Occasionally
* Frequently
* Never
* Often
* Very often
Q: 4 Reasons for using IB services
Statement

Strongly
Disagree

IB is more convenient than in-branch banking.

IB is more reliable safer than branch banking.
IB transactions can be done faster than branch banking.
IB allows easier maintenance of transaction activities than branch
banking.
I use IB for better rates offered and charges only
I Use IB to meet my cash requirement after the banks have closed.
I feel hesitation to wait in a queue for depositing / withdrawing the
cash.
I am Well Conversant with IB and I found it a User friendly system.
I Use IB as a Status Symbol.
I have a strong faith that machine cannot make any
mistake.
I am quite satisfied with the transaction system of IB.

Q: 5 Reasons for not using IB services

I do not have a PC at home/work.
ATM Machine records incorrect Debit & Credit amounts.
I am not satisfied with the Security system of IB services especially
of ATM Machines.
Quality of IB services is bad.
It takes time to finalize the transaction.
I do not know how to use IB.
I do not trust the internet as a channel for banking as it is not safe.
I like meeting people and prefer face-to-face banking.
There are chances of Fraud and forged transactions in Internet
Banking services.
Whenever I need money I experienced problems with IB services.

41

Disagree

Neutral

Agree

Strongl
y Agree

E.g. ATM machine

I feel helpless (after business hours) when my card is stuck up by
ATM Machine.
I am NOT Satisfied with IB Services.

Q: 6 Possible Solution of Existing Problems

Solutions
Ensure high safety and security for using IB
Speed up the time required to finalize transactions
Improve the quality of IB services
Show detailed information of transactions
Provide up to date account information
Monitor the transactions better
Spread IB knowledge and lower internet rate

Q: 7 Potential Services in Internet Banking (IB) and their Perceived Importance

IB Services

Very
Unimportant
.

Review accounts balances

Review credit cards balances
Obtain detailed account transaction histories
Review credit cards transactions
Transfer funds between own accounts
Transfer funds to other persons accounts
Transfer funds to other accounts outside the
country
Pay bills using available cash in the accounts
Pay bills using credit cards
Stop credit cards
Order checks books
Request SMS services
Order to buy IPO
Order to buy and sell shares
Open new accounts
Issue standing orders
Issue drafts
Apply for loans
Apply for credit cards

42

Unimportant

Neutral

Important

Very
Important