Monisha, Research Scholar, IMSAR, MDU, Rohtak

Jatinder Kaur, Assistant Professor, Department of Management Studies, B.M Institute

of Engineering & Technology, Sonepat. Mail id: jeetu.jazz@gmail.com Mob: 9034632427

&
Kanika Budhiraja, Assistant Professor, Department of Management Studies, B.M
Institute of Engineering & Technology, Sonepat

A Study on Customer Perception On E-Banking Service

Abstract: banking or net banking. These

Globalisation has been adopted by every advancement use internet applications that

organisation worldwide. Now even allow customers to dial into bank networks

multinational organisation also prefers to or websites, using their own electronic

adopt the policy of globalisation while gadgets like tabs, android phones, lap tops

framing any of their strategies. One of the and computers, and to get a host of

major factor which promote the banking services directly from their home

globalisation to such an extend is or office PCs. E-Banking offers customer

advancement in technology. Moreover the with a provision of regulating their bank

banking sector is also not left untouched accounts from anywhere in the world at

from this technological advancement and any movement of time then it hardly

globalisation as both of them move in hand makes an difference whether it day or

in hand. Technological up gradation and night. The only mandatory requirement of

innovation are always done to leverage the internet banking is need of electronic

standard of mankind and to give convince gadget with an internet connection and if

to society by making the work easy and customer posses these two things then

quick. From last 2 decades technology is he/she need not to standing in long bank

working as major driving force behind the queues for their simple transition and

development of economies worldwide and neither they need to be anxious about

impact of this technology advancement banks holidays, as now they can access

can be clearly seen in banking sector and the majority of bank services from their

that too especially in developing countries comfort zone itself. Through this research

like India. One of major example of this work an effort has been made to draw

technological advancement which is inference about customer perception for e-

usually seen is banking sector is electronic banking. Since India has the second largest
populated country in the entire world
therefore it is almost impossible to retrieve
the data even from its small part for the
purpose of analysing customer perception
toward E-Banking. Hence adopting the
sampling method is best tool in this
research work. That is why the sample data
will enable us to estimate the customers
perception toward E-banking. But some
points are needed to be considering while
selecting the sample so that an authentic
result about customers perception toward
e- banking can be characterised without
any biasness so that whatever result is
concluded by research is authentic and
reliable.
This paper therefore, examines that wheter
customers' choice of banks is influenced
by the quality of ebanking services
provided by it or not. Stratified sampling
was used; while the survey Instrument was
a developed Questionnaire comprising
open ended and Likert type of questions.
The Likert type questions have a 5 point
scale (indicating 1 strongly disagree to 5
strongly agree).secondly personal details
and customers' e-banking preference in
Sonepat is considered. The instrument
contained 23 items and was administered
to about 150 respondents, while 100
respondents are using online banking
services regularly. The study exposed that
age; gender and income are three
important factors that play a vital role in
usage of online banking facility. The
research concludes that if skills are
upgraded and cyber security is provided
would resultantly increase internet literacy
and there will be enhanced vigour to use
online banking by consumers.
Key words: globalization, Technological
advancement, E- banking, Services,
customer.
Introduction
A Remarkable evolution in the field of
information technology can be notice in
todays era of digitalisation as these
innovations has turned the entire world
into global village. The IT revolution has
lead to a positive transform that can be
seen in every industry which mainly
including telecommunication and data
processing industries. As far as current
scenario is considering the use latest
technology in every business has become
mandatory and the business which are
unable to cope up with these new
technology cannot sustain in market for
long run. The effect of this technological
change can be noticed in banking industry
allot, as in last few years the considerable
reduction in the queues form for the
.payment of utility bills or for cash
withdrawals/deposits can be seen. So its
not wrong to say that the IT revolutions
has succeeded in reducing the transaction
time taken by bankers because of which
long bank queue has automatically shorten
and this eventually lead to more satisfied
customers which help bank to sustain in
banking industry for long time period. But
still more improvement is demanded by
many of the customers so that the time
taken by bank for a single transaction can
be reduces to its minimum time limit and
to fulfil this demand of customers the
internet banking facility came
existence and this reduces the time taken
by the bankers for passing the transaction
along with this it also lead to reduction in
paper work and result of all these efforts is
the quick response given to customers
even if they are at their home or office
place and this type of banking was termed
as e-banking as in this the Internet serve as
a means of interacting with customers.
With all these advantages like less paper
work, quick services, easy to access, 247
service internet banking also brought with
it a backlog which is hacking of bank
accounts which created a sense
insecurity among e- banking customers
and because of this drawback most of
customers do not feel safe while doing
online transaction because of
insecurity a decreases in the overall growth
of e- baking in developing can be seen
easily.
This paper is a conclusion of a pragmatic
study conducted with an objective of
attaining knowledge about the Customers
perceptions regarding e-banking. The
paper consists of four sections besides
introduction viz. review of literature;
research methodology; results &
discussion and conclusion.
Review of literature
Some of the researcher has already done
research work on the topic customer
perception toward e-banking and
into conclusions of some research are as
follows:
Filotto et al. (1997) in his research through
an illustrated concluded that the
acceptance rates of using ATM among
youngsters are much higher as comparison
to other age groups.
Barnett (1998) concluded in his research
that consumers of age group 16-32 feel
more comfortable while using e- banking
as compare to adult age group as they are
more close to new technology and gadgets.
Mookerji (1998) through his research
explored that India is adopting this new
of technological innovation in banking very
quickly and efficiently. Internet banking
has become a most commonly used tool of
banking sector especially in Indian but still
this e-banking is on an evolutionary stage can
become more reliable and safe from cyber
crime after lot of improvement
Joseph et al. (1999) in his research gave
more focus on dimensions that internet is
using in influencing banking services.
During this research they found six
primary dimensions on which e-banking
service stand and that are quality such as
convenience and accuracy, feedback and
complaint management, efficiency, queue
management, accessibility and
customization.
Mols (1999) accredited in his research that
the internet banking is one of the most
appropriate example of todays innovative
methods of distribution channel as this has
reduced the waiting time of customers in
bank branches and along with this it has
also significantly lower down the cost
structure that bank was having in
traditional delivery channels. Internet
banking not only cut short the operational
cost to the bank but also leads to higher
levels of customer satisfaction and
retention of customers. As a result internet
banking is very attractive to both banks
and consumers
Jeevan (2000) in his research highlighted
one of the major factor that make the inter
banking so successful in developing
country like India and that factor is the
cheap rate at which internet banking is
made available to customers and at such a
reasonable rate they get most of their
financial transaction done that to without
coming out of their comfort zone.
Mishra (2005) in this research paper more
focus is put on the various recompense and
threats about internet banking. Among all
threats emphasis is given on security
concept of net banking. According to
researcher improved customer access,
offering of more services, increased
customer loyalty, attracting new customers
are the primary drivers of internet banking.
But in a survey conducted by the online
banking association, member institutions
rated security as the most important
concern of online banking.
Nyangosi et al. (2009) paper put light on
customers perception toward the
significance of e-Banking. Research also
tells about the acceptance levels of e-
Banking technologies by different
developing country like India and Kenya.
The study highlighted the trends of e-
banking indicators in both countries. The
overall result indicates that customers in
both countries have developed a positive
attitude and they give much importance to
the emergence of e-banking
Dr. Uday Singh Rajput (2015) research put
focus on reasons behind progress of e-
banking in country like India and what all
factor influence perception of people to opt
for e- banking even though it has security
related backlogs in it and how e-banking
effect the functioning of banks in
developing country.
From these review of literature, it is found
that income is one of the essential factors
for expanding e-banking. Consumers
which belong to 15-35 are more
comfortable in using e-banking service.
Convenience and accuracy, feedback and
complaint management, efficiency, queue
management, accessibility and
customization were found to be key
advantages of e-banking service. In light
of the above findings, the present study is
undertaken in Indian perspective to find
out customer perceptions about online
banking services.
Objectives of the study
The primary objective of this study is to
scrutinize the perception of the customers
towards e-banking services of the select
corporate banks in Sonepat. In addition,
the study has the following secondary
objectives:
1. To swot up the growth and progress of
electronic banking.
2. To understand the perception of the
customers towards methods of payment.
3. To study effect of e-banking on
customers and bankers.
4. To propose suggestions to improve the
standard of e-banking services
Research methodology
Research Type
In this paper descriptive research and
exploratory research design is used.
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. The methods involved range
from the survey which describes the status
quo, the correlation study which
investigates the relationship between
variables, to developmental studies which
seek to determine changes over time.
Data collection
Primary Data: Structured Questionnaire
Study Secondary Data: Online Database,
Journals, Surveys
Sampling
The study's objective was accomplished
through the collection and analysis of
primary data obtained from a purposive
sampling technique. Likert scale
questionnaire was used to measure the
perception of customers about e- banking.
Out of 150 administered questionnaires
only 100 were retrieved and used for the
analysis. Members of the population are
chosen based on their relative ease of
access. To sample relatives, friends, co-
workers are all examples of convenience
sampling.
Conclusion and suggestions Here it can be concluded that people have

This paper focuses on customers around 45 % people have positive

perception towards e-banking service perception & are satisfactory with E-

provided by banking sector. The research Banking. Still people of these areas are not

has based on four objectives and these using all the E- banking services

objectives act as guiding tools for this frequently because they very little more

research paper more over primary data is knowledge about computer and internet; so

collected through the help of they feel hesitation is using E-banking

questionnaires and analysed descriptively services

through percentage and Anova technique. References

It was discovered that customers adapting Abukhzam M and Lee A (2010), Factors
e-banking services very leisurely such as Affecting Bank Staff Attitude Towards E-
ATM, home banking, use of payment Banking Adoption in Libya, EJISDC,
cards to mention but a few. As per study Vol. 42, No. 2, pp.1-15.
only 95% people are aware about E- Barnett C. (1998), Virtual Communities
banking Services. 89% people are using and Service: On-Line Business Potentials
the E-Banking services regularly. Others and Strategies Choice, International
are using in a very irregular manner. 45% Journal of Bank Marketing, Vol.16, No. 4,
respondents said that the E-Banking is pp.161-169
time saving process. Only 37% Brain Mantel, (2002) Why don't
respondents said that E-Banking is easy to Consumers Use Electronic Banking
use. 46% respondents said E-Banking Products? Towards a Theory of Obstacles,
Provides safety and security. Incentives, and Opportunities, Journal of
43% respondents said E-Banking provides Financial Service Research; Vol.22, No. 1
up-to-date and accurate information. 40% &2, August/October
respondents said that E-banking is 24 Joseph et al. (1999), Service quality in the
hours available and transparency service. banking sector: the impact of technology
41% respondents said that E-banking is on service delivery, International Journal
cost effective service. 42% respondents of Bank Marketing, Vol. 17, No.4, pp.
said that E-banking is very speedy 182-191
services. Frequently used E-Banking Kaleem A and Ahmad S (2008), Bankers'
services are ATM, Bill payments & getting Perceptions of Electronic Banking in
the bank statements. Pakistan, Journal of Internet Banking and
Commerce, Vol. 13, No.1
http://www.arraydev.com/commerce/jibc/
Nachiket MOR, Head of ICICI's Treasury,
in March (2000).Service quality
evaluation in internet banking: an
empirical study in India Int. J. Indian
Culture and Business Management, Vol. 2,
No. 1, pp.3046.
Riquelme. E. H (2009) Internet Banking
Customer satisfaction and Online Service
Attributes Journal of internet banking and
commerce, Vol. 14, no. 2
Sayar (2007) "Diffusion of internet
banking amongst educated consumers in a
high income non-OECD country", Journal
of Internet Banking and Commerce, Vol.
11 No. 3
Srivatsa H.S, (2006) Consumer
perception of online banking
http://www.iacis.org/iis/2006_iis/PDFs/Ch
angchit.pdf