DISSERTATION PROJECT REPORT ON “A Study of Customer perception towards E- banking services offered in banking sector” BY SUNIL KHATRI MBA (MARKETING & SALES) ENROLLMENT NO. A0102208030 ROLL NO. 308A32 CLASS OF 2010 Under the guidance of Dr. S.K Laroiya IN PARTIAL FULFILLMENT OF AWARD OF MASTER’S DEGREE IN BUSINESS ADMINISTRATION TO AMITY BUSINESS SCHOOL AMITY UNIVERSITY UTTAR PRADESH 1 | Page
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2337. a Study of Customer Perception Towards E-banking Services Offered in Banking Sector [It]
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DISSERTATION PROJECT REPORT
ON
“A Study of Customer perception towards E-banking services offered in banking sector”
BY
SUNIL KHATRI
MBA (MARKETING & SALES)
ENROLLMENT NO. A0102208030
ROLL NO. 308A32
CLASS OF 2010
Under the guidance of
Dr. S.K Laroiya
IN PARTIAL FULFILLMENT OF AWARD OF MASTER’S DEGREE
We have used convenience sampling technique. 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.
Sample Technique: Convenience sampling
Sample Area: NCR
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Sample Size: 120
LIMITATIONS OF THE STUDY:
The survey was done in the NCR region and may not truly express the opinion of the whole country.
There is lack awareness on the part of people about E-banking.
Most of the people are not techno-savvy. Though internet penetration is growing still it is not at that level.
Sample Size of the research may not be substantial.
There was a lack of time on the part of respondents.
From the above graph we can see that the maximum no. of respondents are in the age group of 26-35 with a frequency of 42. The second highest no. of respondents lie in the age group of 18-25.
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2) Gender : 1) Male 2) Female
Statistics
Gender
N Valid 120
Missing 0
Mean 1.3250
Median 1.0000
Mode 1.00
Std. Deviation .47034
Variance .221
Gender
Frequency Percent Valid Percent
Cumulative
Percent
Valid male 81 67.5 67.5 67.5
female 39 32.5 32.5 100.0
Total 120 100.0 100.0
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INTERPRETATION:
The above graph shows another demographic variable of the respondent set i.e gender.
From the above bar chart we can see that the maximum no. of respondents were male
with a frequency of 80% and the rest were females.
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3) Frequency of visiting your bank branch per month?
Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
agegroup * Frequency of
visiting your bank branch per
month?
120 100.0% 0 .0% 120 100.0%
agegroup * Frequency of visiting your bank branch per month? Crosstabulation
Count
Frequency of visiting your bank branch per month?
TotalLess than 1 1 to 3 times 3 to 8 times 8 to 12 times over 12 times
agegroup 18-25 15 4 7 0 14 40
26-35 10 10 5 7 10 42
36-45 1 0 4 8 3 16
46-60 0 9 0 2 6 17
60+ 0 4 0 0 1 5
Total 26 27 16 17 34 120
Chi-Square Tests
Value df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 60.143a 16 .000
Likelihood Ratio 67.364 16 .000
Linear-by-Linear Association 1.103 1 .294
N of Valid Cases 120
a. 15 cells (60.0%) have expected count less than 5. The minimum
expected count is .67.
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INTERPRETATION:
Here we have plotted a cross tab between the two variables i.e age group and frequency
of visit to the branch. The cross tab helps us to find that whether there is any association
between the two variables. Pearson Chi-square test statistic value of .000 shows that there
is an association between the two variables. We can see from the chart that maximum no.
of respondents in the age group 18-25 visit less than 1 and maximum no. respondents in
the age group 26-35 visit over 12 times.
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4) Which of the following e-banking facilities do you think should be provided by your
bank?(please choose the single most important one)
1. Internet banking
2. Telephone banking
3. Mobile banking
4. SMS banking
INTERPRETATION:
The above pie chart shows that 40.8% of the respondents thought of Internet Banking as a must to be provided by there bank. The second most important E-banking facility was the M-banking with a percentage of 26.7%.
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5) The main reason that you typically visit your bank branch (please choose the single most important reason)?
1. To make a deposit2. To get advice for investment options3. To inquire about a balance4. To withdraw cash5. Others
Statistics
The main reason that you typically visit your branch for?
N Valid 120
Missing 0
Mean 2.8417
Median 3.0000
Mode 3.00a
Std. Deviation 1.22300
Variance 1.496
a. Multiple modes exist. The smallest value is shown
The main reason that you typically visit your branch for?
Frequency Percent Valid Percent
Cumulative
Percent
Valid To make a deposit 25 20.8 20.8 20.8
To get advice for investment
options18 15.0 15.0 35.8
To inquire about a balance 35 29.2 29.2 65.0
To withdraw cash 35 29.2 29.2 94.2
Others 7 5.8 5.8 100.0
Total 120 100.0 100.0
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INTERPRETATION:
The above pie chart shows the most important reason for which a person visits the bank
branch. As we can see from the graph that 29.2% of the respondents said that they visit
the bank to withdraw cash. Another 29.2% of the respondents visited to inquire about the
balance whereas 20.8% respondents visited bank for making a deposit to there account.
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6) Do you have an internet banking account?
a) Yes
b) No
Statistics
Do you have an internet banking
account?
N Valid 120
Missing 0
Mean 1.2583
Median 1.0000
Mode 1.00
Std. Deviation .43955
Variance .193
Do you have an internet banking account?
Frequency Percent Valid Percent
Cumulative
Percent
Valid yes 89 74.2 74.2 74.2
no 31 25.8 25.8 100.0
Total 120 100.0 100.0
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Case Processing Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
agegroup * Do you have an
internet banking account?120 100.0% 0 .0% 120 100.0%
agegroup * Do you have an internet banking account?
Crosstabulation
Count
Do you have an internet banking
account?
Totalyes no
agegroup 18-25 34 6 40
26-35 39 3 42
36-45 14 2 16
46-60 12 5 17
60+ 1 4 5
Total 100 20 120
Chi-Square Tests
Value df
Asymp. Sig. (2-
sided)
Pearson Chi-Square 19.451a 4 .001
Likelihood Ratio 15.045 4 .005
Linear-by-Linear Association 8.342 1 .004
N of Valid Cases 120
a. 4 cells (40.0%) have expected count less than 5. The minimum
expected count is .83.
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INTERPRETATION:
The above graph shows the association between age group and user- non-user status. The
Pearson chi-square value of .001 shows that there is an association between the two.
As we can see that the most of the respondents in the age group 26-35 have an internet
banking account and very few of the respondents in the age group 60+ have an internet
account.
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7) What banking services do you use which your Internet bank offers? (Please check all those which you are currently using)
1. Seeking product and rate information
2. Calculate loan payment information
3. Download loan applications
4. Download personal bank transaction activity.
5. Check balances on-line
6. Apply for consumer loans or credit cards online
7. Inter-account transfers
8. On-line bill payments
9. Others
Case Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
$var22a 100 83.3% 20 16.7% 120 100.0%
a. Dichotomy group tabulated at value 1.
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$var22 Frequencies
Responses
Percent of CasesN Percent
banking servicesa prodinfo 55 11.9% 55.0%
loaninfo 57 12.3% 57.0%
Down_loanapp 52 11.2% 52.0%
Trans_activity 45 9.7% 45.0%
Chk_balance 57 12.3% 57.0%
Apply_loan 34 7.3% 34.0%
Acc_transfer 72 15.6% 72.0%
Bill_payment 69 14.9% 69.0%
others 22 4.8% 22.0%
Total 463 100.0% 463.0%
a. Dichotomy group tabulated at value 1.
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INTERPRETATION:
The above graph shows the type of services that most internet account holders use. As we can see from the graph that most of the internet bank users use there internet account for making transfer of funds, followed up by payment of bills online with a percentage of 15%.
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8) What was the single most important reason that you choose your current bank as your Internet bank? (please choose one)
1. I have a traditional bank account with the same bank2. The brand name of the bank3. The excellent service offered by this bank4. Other
INTERPRETATION:
The pie chart above shows for what reason the respondents choose there current bank as there internet bank. Most of the respondents had an internet bank account because of the brand name of the bank. 32% had an account in the bank in which they had a traditional account. 28% opened because of the excellent services provided.
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9) In addition to your Internet bank account, do you also have a traditional bank account?
1. Yes2. No
Statistics
Do you also have a traditional bank account in addition to an
internet account?
N Valid 100
Missing 20
Mean 1.0000
Median 1.0000
Mode 1.00
Std. Deviation .00000
Variance .000
Do you also have a traditional bank account in addition to an internet
account?
Frequency Percent Valid Percent
Cumulative
Percent
Valid yes 100 83.3 100.0 100.0
Missing System 20 16.7
Total 120 100.0
INTERPRETATION:
The above table shows that all the respondents who had an internet banking account also
had a traditional baking account.
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10) What are the reasons for which you opened an Internet bank account? (Please
prioritize the following list in the order of importance).
(Rank on a scale of 1-6 where1 being the most important & 6 being the least important)
1. Convenience (24 hours service, anywhere connectivity) ______________2. Curiosity______________3. Safe and secure______________4. Low service charge______________5. Easy to maintain my banking transaction activity______________6. Online shopping ___________________
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INTERPRETATION:
The above graph shows the ranking of the reasons why respondents had opened an internet banking account. We rated the factors on a 6 point rating scale ranging from most important to least important. Most of the respondents gave convenience as rank1. The second most important factor was ease of maintenance.
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11) For your choice of an Internet bank, please indicate how much each of the following factors are/were important to you:(Rate on a scale of 1-6 where 1 being most important & 6 being least important)
1. Better rate and lower service charge______________2. Bank familiarity______________3. Security of Transaction______________4. Convenience (24 hours service from anywhere) ______________5. Quick service (transaction completed in seconds instead of minutes)
______________6. Variety of features and services that are offered(for example; bill payment,
account reconciliation, electronic bill payment) ______________7. Integrated value-added services using other on-line services and resources (for
example; other brokerage account summary) ______________
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INTERPRETATION:
The above graph rates the decisive factors when opening a internet banking account. Most of the gave rank 1 to convenience(24 hour service from anywhere).The second most important factor was security of transaction.The third most important factor was the familiarity with the bank.
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12) The main reasons that you might fear for while opening an Internet bank account ? (check all that apply)
1. Never heard of Internet banking
2. Concerned about security
3. Haven't taken time to open an account
4. Don't see any real value in having this type of account
5. Too new. I would like to see how it works, then I may open an account
6. Not available through my bank
7. Others
Case Summary
Cases
Valid Missing Total
N Percent N Percent N Percent
$var33a 120 100.0% 0 .0% 120 100.0%
a. Dichotomy group tabulated at value 1.
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$var33 Frequencies
Responses Percent of
CasesN Percent
reasons not opening a e-
bank acca
Var_unaware 65 17.3% 54.2%
Var_security 80 21.3% 66.7%
Var_timeconst 38 10.1% 31.7%
Var_novalue 34 9.0% 28.3%
Var_new 83 22.1% 69.2%
Var_unavailable 44 11.7% 36.7%
Var_others 32 8.5% 26.7%
Total 376 100.0% 313.3%
a. Dichotomy group tabulated at value 1.
INTERPRETATION:
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The above graph shows why most of the people are afraid of opening an internet banking account and what are the reasons behind it.
Most of the respondents were concerned about the security of transactions-21%.
The second constraint was that people are still unaware about it-17%.
The third major constraint was that the bank doesn’t have such a service-12%
Chapter 5
CONCLUSIONS & SUGGESTIONS
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CONCLUSIONS
The study tries to figure out what are the factors that affect the usage behavior of the
customers towards E-banking services and what are the reasons for perceptual blocking
towards E-banking.
The conclusions that can be drawn are:
1. Most of the people use E-banking because of the ease and convenience of doing
transactions 24 hours from anywhere.
2. Most of the people in the age group of 18-35 i.e the youth are familiar with the
concept of E-banking and are among the prominent users of this facility.
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3. Most of the people open an internet banking account with a bank because of the
brand name of the bank and also due to the fact that they have a traditional
banking account with the same bank.
4. Most of the people in the age group of 46+ are either unaware or have a
disinterest in the service. They are more satisfied with traditional system of
banking.
5. The reasons for not opening an internet account are mainly due to unawareness or
due to security concerns.
6. Most of the people who do internet banking do so for online transaction of money
and for shopping purposes.
7. The masses are still not using the services thoroughly due to various hurdling
factors like insecurity and fear of hidden costs etc.
SUGGESTIONS
E-banking would drive us into an age of creative destruction due to non-physical
exchange, complete transparency giving rise to perfectly electronic market place and
customer supremacy. We can see the time is changing and with the passage of time
people are accepting technology but there is still a lot of perceptual blocking still to be
removed.
The banks need to increase the penetration of E-banking to the masses. This can be
achieved through increasing the awareness levels of the customers towards E-banking.
Some of the ways to do this are:
1. Give proper training to customers for using E-banking.
2. Create a trust in the mind of customers towards security of there accounts.
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3. Provide a platform from where the customers can access different accounts at
single time without extra charge.
4. Make the site more user friendly.
5. Customers should be motivated to use E-banking facilities more.
Chapter 6
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Bibliography
Bibliography
BOOKS
1. Marketing research by BERRY G.C
2. Marketing Research by Malhotra N.K. , fifth edition
3. E-banking: the global perspective by Gupta Vivek
I'm Sunil Khatri from Amity Business School. I am conducting a survey for the purpose of my research work and would like to speak to you regarding the same. This interview will take about 5-10 minutes. I would like to state that there are no right or wrong answers and I’m only interested in your opinion.
1. Frequency of visiting your bank branch per month?
1. Less than 12. 1 to 3 times3. 3 to 8 times4. 8 to 12 times5. over 12 times
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2. The main reason that you typically visit your bank branch (please choose the single most important reason)?
a) To make a depositb) To get advice for investment optionsc) To inquire about a balanced) To withdraw cashe) Others
3. Which of the following e-banking facilities do you think should be provided by your
bank?(please choose the single most important one)
a) Internet banking
b) Telephone banking
c) Mobile banking
d) SMS banking
4. Do you have an internet banking account?
a) Yes
b) No
If the answer to the previous Question is Yes, please answer Item no.5 to 9. Otherwise please
skip Item no.5 to 9.
5. What are the reasons for which you opened an Internet bank account? (Please prioritize
the following list in the order of importance).
(Rank on a scale of 1-6 where1 being the most important & 6 being the least important)
a) Convenience (24 hours service, anywhere connectivity) ______________b) Curiosity______________c) Safe and secure______________d) Low service charge______________e) Easy to maintain my banking transaction activity______________f) Online shopping ___________________
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6. What banking services do you use which your Internet bank offers? (Please check all those which you are currently using)
a) Seeking product and rate information
b) Calculate loan payment information
c) Download loan applications
d) Download personal bank transaction activity.
e) Check balances on-line
f) Apply for consumer loans or credit cards online
g) Inter-account transfers
h) On-line bill payments
i) Others
7. What was the single most important reason that you choose your current bank as your Internet bank? (please choose one)
a) I have a traditional bank account with the same bankb) The brand name of the bankc) The excellent service offered by this bankd) Others
8. In addition to your Internet bank account, do you also have a traditional bank account?
a) Yesb) No
9. For your choice of an Internet bank, please indicate how much each of the following factors are/were important to you:(Rate on a scale of 1-6 where 1 being most important & 6 being least important)
1. Better rate and lower service charge______________
2. Bank familiarity______________
3. Security of Transaction______________
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4. Convenience (24 hours service from anywhere) ______________
5. Quick service (transaction completed in seconds instead of minutes) ______________
6. Variety of features and services that are offered(for example; bill payment, account reconciliation, electronic bill payment) ______________
7. Integrated value-added services using other on-line services and resources (for example; other brokerage account summary) ______________
10. The main reasons that you might fear for while opening an Internet bank account ? (check all that apply)
1. Never heard of Internet banking
2. Concerned about security
3. Haven't taken time to open an account
4. Don't see any real value in having this type of account
5. Too new. I would like to see how it works, then I may open an account
6. Not available through my bank
7. Others
Respondent Details:
1) Name : ____________________________________________________