115 CHAPTER – IV AWARENESS AND CUSTOMER SATISFACTION ON E-BANKING SERVICES – AN ANALYSIS In a constantly changing world of today, where past is replaced by dynamic present and the old ways of doing things is no longer valid. Change is permanent and a real. Those who are not able to keep pace with the changes are destined to loose the race. Science and technology is changing the way financial institutions perform their transactions. Science and technology have brought life of the people so easier, comfortable and luxurious. These new technology brings with it not only the potential for success, but also a never-ending series of questions regarding its design, its value to its users, ultimate use and acceptability. E-banking is the waves of the future. It provides enormous benefits to consumers in terms of ease and cost of transactions, either through internet, telephone or other electronic delivery channels. For many consumers, electronic banking means 24-hours access to cash through an e-banking service media such as Automated Teller Machine (ATM), internet banking, mobile banking and debit and credit card. But electronic banking now involves many different types of transactions. E-banking is a form of banking where funds are transferred through an exchange of electronic signals between financial institution, rather than exchange of cash, cheques or other negotiable instruments. With the expansion of global Information and Communication Technology (ICT) infrastructure and the internet, e-banking is set to play a pivotal role in the Indian economy, skilled manpower proper software, infrastructure, cyber law are important for the implementation of e-banking in India.
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115
CHAPTER – IV
AWARENESS AND CUSTOMER SATISFACTION ON E-BANKING
SERVICES – AN ANALYSIS
In a constantly changing world of today, where past is replaced by dynamic
present and the old ways of doing things is no longer valid. Change is permanent
and a real. Those who are not able to keep pace with the changes are destined to
loose the race. Science and technology is changing the way financial institutions
perform their transactions. Science and technology have brought life of the people
so easier, comfortable and luxurious. These new technology brings with it not only
the potential for success, but also a never-ending series of questions regarding its
design, its value to its users, ultimate use and acceptability.
E-banking is the waves of the future. It provides enormous benefits to
consumers in terms of ease and cost of transactions, either through internet,
telephone or other electronic delivery channels. For many consumers, electronic
banking means 24-hours access to cash through an e-banking service media such
as Automated Teller Machine (ATM), internet banking, mobile banking and debit
and credit card. But electronic banking now involves many different types of
transactions. E-banking is a form of banking where funds are transferred through
an exchange of electronic signals between financial institution, rather than
exchange of cash, cheques or other negotiable instruments.
With the expansion of global Information and Communication Technology
(ICT) infrastructure and the internet, e-banking is set to play a pivotal role in the
Indian economy, skilled manpower proper software, infrastructure, cyber law are
important for the implementation of e-banking in India.
116
Providing a good service quality is a major issue for banking industry.
Customer satisfaction determines the success or failure of a business. In order to be
competitive in the marketplace, banks need to satisfy their customer. Best service
quality provided would ensure a high market share and substantial return. It is
important for banks to provide e-banking service to uncover which attributes,
consumers utilized in their assessment of e-banking service quality. Therefore, the
banks need to understand the attributes that the customer use to judge service
quality.
In this context analyzing customer satisfaction on e-banking services and
drawing appropriate strategies is not only to attract new customers, but also to
retain existing ones. This chapter focuses on the overall customer satisfaction on
e-banking services by considering the variables such as Accessibility,
Convenience, Privacy, Security, Design, Content, Speed and Fees and Charges,
further the researcher has selected three e-banking service medium viz., ATM,
Internet Banking and Mobile banking to analyze the overall customers’ satisfaction
on e-banking practices.
Profile of the Respondents
The demographic backgrounds of the sample respondents in five
parameters are presented in the following tables to understand the customer
profiles i.e., gender, age, education, occupation and income.
Sex Wise Distribution of Respondents
The sex wise distribution of the sample respondents in the selected both
public and private sector bank is presented in table 4.1.
117
TABLE 4.1
SEX WISE DISTRIBUTION OF RESPONDENTS
S.No Age
(Years)
No. of respondents
Public Sector Bank
% Private Sector Bank
% Total %
01 Male 128 62.14 142 80.68 270 70.68
02 Female 78 37.86 34 19.32 112 29.32
Total 206 100.00 176 100.00 382 100.00 Source: Primary data
Table 4.1 shows sex wise distribution of the respondents in the study units.
It is observed from the table that the work force in the selected public and private
sector bank consists of 71 per cent male and 29 per cent female employees. Table
4.1 also reveals that female employees constitutes significant portion in the work
force of the public sector banks when compared to private sector bank.
Age Wise Distribution of Respondents
The age wise distribution of the sample respondents is given in table 4.2.
TABLE 4.2
AGE WISE DISTRIBUTION OF RESPONDENTS
S.No Age
(Years)
No. of respondents
Public Sector Bank
% Private Sector Bank
% Total %
01 Below 25 34 16.50 21 11.93 55 14.40
02 25 – 35 41 19.90 108 61.36 149 39.01
03 35 – 45 52 25.24 28 15.91 80 20.94
04 Above 45 79 38.35 19 10.80 98 25.65
Total 206 100.00 176 100.00 382 100.00 Source: Primary data
118
Table 4.2 shows that out of 382 respondents as much as 39 per cent of the
respondents are in the age group 40 – 50 years, followed by one-fourth of the
respondents are above 60 years. About 21 per cent of the respondents are in the age
group of 50 – 60 years and 14 per cent of the respondents are less than 40 years. It
is inferred from the table that private sector bank has large number of young
customer as compared to public sector bank whereas public sector bank has large
number senior customer who are in the age group of above 50 years as compared
to private sector bank.
Educational Qualifications of the Respondents
The educational qualifications of the sample respondents in the selected
public and private sector bank are shown in table 4.3.
TABLE 4.3
EDUCATIONAL QUALIFICATIONS OF THE RESPONDENTS
S.No Educational
Qualifications
No. of respondents
Public Sector Bank
% Private Sector Bank
% Total %
01 Up to HSC 31 15.05 14 07.95 45 11.78
02 Graduate 97 47.08 83 47.16 180 47.12
03 Post Graduate 64 31.07 38 21.59 102 26.70
04 Professional 14 06.80 41 23.30 55 14.40
Total 206 100.00 176 100.00 382 100.00 Source: Primary data
Table 4.3 indicates the educational qualifications of the respondents.
About 47 per cent of the respondents are under graduate, nearly 27 per cent of the
respondents are post graduate, 14 per cent of the respondents have professional
qualifications and about 12 per cent of the respondents were studied up to higher
secondary school. It is noteworthy to mention that the professionals prefer private
sector banks than that of public sector banks in the study area.
119
Occupation of the Respondents
The occupation wise distribution of the sample respondents in the study
units is given in table 4.4.
TABLE 4.4
OCCUPATION OF THE RESPONDENTS
S.No Occupation
No. of respondents
Public Sector Bank
% Private Sector Bank
% Total %
01 Salaried 94 45.63 55 31.25 149 39.01
02 Professional 09 04.37 35 19.89 44 11.52
03 Business 52 25.24 72 40.91 124 32.46
04 Retired 32 15.53 08 04.55 40 10.47
05 Housewife 19 09.22 06 03.41 25 06.54
Total 206 100.00 176 100.00 382 100.00
Source: Primary data
It is observed from the table 4.4 that out of 382 sample respondents, as
much as 39 per cent of the respondents are salaried class followed by 32 per cent
of the respondents are business people. About 12 per cent of the respondents are
professionals and 10 per cent are retired person. It can be inferred from the table
salaried class, retired person and housewife prefer public sector bank whereas
professionals and business people prefer private sector bank for their banking
transactions.
120
Income of the Respondents
The annual income of the respondents in the selected public and private
sector bank is shown in table 4.5.
TABLE 4.5
INCOME OF THE RESPONDENTS
S.No Income ( )
No. of respondents
Public Sector Bank
% Private Sector Bank
% Total %
01 Less than
( )1 lakh 56 27.18 14 07.95 70 18.32
02 ( ).1 – 2 lakhs 72 34.95 25 14.20 97 25.39
03 ( ) 2 –3 lakhs 36 17.48 34 19.32 70 18.32
04 ( ) 3-4 lakhs 23 11.17 45 25.57 68 17.80
05 Above () 4 lakhs
19 09.22 58 32.95 77 20.16
Total 20 6 100.00 176 100.00 382 100.00
Source: Primary data
Table 4.5 shows the annual income wise distribution of the respondents.
Out of 382 respondents, one-fourth of the respondents annual income is 1-2
lakhs, as much as 20 per cent of the respondents annual income is above 4 lakhs.
The respondents who earns annual income of less than 1 lakh, 2-3 lakhs and
and 3 - 4 lakhs constitute 18 per cent each out of the total.. It is inferred from
the table the lower income group i.e., annual income is less than two lakhs prefer
public sector banks whereas middle and higher income group, i.e., annual income
2-3 lakhs and above three lakhs prefer private sector banks.
121
Utilization of E-Banking Services
The respondents’ usage of selected e-banking services in the selected
public and private sector banks is given in table 4.6.
TABLE 4.6
UTILIZATION OF E-BANKING SERVICES
Usage
Public Sector Bank Private Sector Bank
ATM Internet banking
Mobile banking
ATM Internet banking
Mobile banking
Used 206
(100.00)
89
(43.20)
156
(75.73)
176
(100.00
106
(60.23)
145
(82.39)
Not used - 117
(56.80)
50
(24.27) -
70
(39.77)
31
(17.61)
Total 206
(100.00)
206
(100.00)
206
(100.00)
176
(100.00)
176
(100.00)
176
(100.00)
Source: Primary data Note: Figure in the bracket is percentage to total
Table 4.6 exhibits usage of selected e-banking services in the public and
private sector banks in the study area. All the respondents in the public and private
sector banks have used ATM services. Out 206 respondents in the public sector
bank, about 43 per cent of the respondents have used internet banking and 57 per
cent have not used the internet banking. Nearly three-fourth of the respondents
have used mobile banking and one-fourth of the respondents have not used mobile
banking services. In case of private sector bank 60 per cent and 82 per cent of the
respondents have used internet banking and mobile banking services. It is
understood from the table more number of customers are availed e-banking
services in private sector bank as compared to public sector bank. The number of
respondents who use e-bankiing services is also shown in figure 4.1.
122
FIGURE 4.1
UTILIZATION OF E-BANKING SERVICES
206
89
156176
106
145
117
5070
31
206 206 206176 176 176
0
50
100
150
200
250
ATM Internet
Banking
Mobile
Banking
ATM Internet
Banking
Mobile
Banking
Public Sector Bank Private Sector Bank
Used Not used Total
123
Period of Use
The present scenario usage of ATMs, Internet Banking and Mobile
Banking is measured in terms of the length of the period the respondents are using
a particular service. For this purpose, time is divided into five sub-heads i.e. less
than 6 months, 6 months to 1 year, 1 to 2 years, 2 to 3 years and more than 3 years.
The period of using e-banking services provided by the banks is described in table
4.7.
TABLE 4.7
DURATION OF USING E-BANKING SERVICES
Period Public Sector Bank Private Sector Bank
ATM Internet banking
Mobile banking
ATM Internet banking
Mobile banking
Less than 6 month
22 (10.68)
09 (10.11)
48 (30.77)
10 (05.68)
13 (12.26)
18 (12.41
6 months to 1 year
29 (14.08)
11 (12.36)
52 (33.33)
23 (13.07)
16 (15.09)
22 (15.17)
1 year to 2 years
38 (18.45)
18 (20.22)
16 (10.26)
34 (19.32)
21 (19.81)
29 (20.00)
2 years to 3 years
53 (25.73)
24 (26.97)
23 (14.74)
42 (23.86)
20 (18.87)
32 (22.07)
More than 3 years
64 (31.07)
27 (30.34)
17 (10.90)
67 (38.07)
36 (33.96)
44 (30.34)
Total 206
(100.00) 89
(100.00) 156
(100.00) 176
(100.00) 106
(100.00) 145
(100.00) Source: Primary data Note: Figure in the bracket is percentage to total
Table 4.7 envisages that ATM is the oldest service in use. Out of total
respondents, maximum 31 per cent and 38 per cent respondents in public and
private sector banks are using ATM for more than 3 years. Internet banking is at
second position with 30 per cent 34 per cent users in public and private sector
banks for using internet banking for more than 3 years. Mobile banking is at third
position with 30 per cent respondents are using this service for more than three
years in private sector banks. In case of public sector bank, maximum 33 per cent
124
of the respondents are using the mobile banking for six months to one year. It can
be inferred from the table that the customers in private sector bank is very much
interested for using e-banking services as compared to public sector bank.
Customers Satisfaction
The customers’ satisfaction with e-banking services is measured in terms of
Accessibility, Convenience, Privacy, Security, Design, Content, Speed, Fees and
Service Charges.
Accessibility
Accessibility defines as the ability of users to access information and
services of e-banking are dependent on many factors. These include the content
format; the user's hardware, software and settings; internet connections; the
environmental conditions and the user's abilities and disabilities. The term
accessibility generally relates to the implementation of e-banking medium content
in such a way as to maximize the ability of users to access the information. The
customers’ satisfaction with accessibility of e-banking medium is analyzed and
presented in table 4.8.
TABLE 4.8
CUSTOMER SATISFACTION TOWARDS ACCESSIBILITY OF E-BANKING SERVICES
E-banking medium
Public Sector Bank
Private Sector Bank
Combined
Mean score
Mean score (%)
Mean score
Mean score (%)
Mean score
Mean score (%)
ATM 21.41 30.59 39.40 56.29 29.70 42.43 Internet banking
30.57 43.67 42.47 60.67 37.04 52.91
Mobile banking
24.83 35.47 36.07 51.53 30.25 43.21
Average 24.40 34.86 39.03 55.76 31.52 45.02 Source: Primary data
125
Table 4.8 shows that the average mean score obtained by all the sample
respondents for customer satisfaction in e-banking services with regard to
accessibility was 45 per cent. It was nearly 53 per cent in respect of internet
banking, 43 per cent in respect of mobile banking and 42 per cent in respect of
ATM services.
The average mean score of 35 per cent and 56 per cent was secured by the
public and private sector bank respondents for selected e-banking services. The
private sector bank respondents have secured maximum score for internet banking
services followed by ATM services, mobile bank was in the third place. There is
no significant variation in the mean score obtained by the respondents of the public
sector bank. Among the selected e-banking services, the respondents in the public
sector bank have secured lowest score for ATM Services with regard to customer
satisfaction in e-banking services. It can be inferred from the table that the private
sector bank customers have easy accessibility to use e-banking services as
compared to private sector bank.
Convenience
E-banking provides higher degree of convenience that enables customers to
access e-banking services at all times and places. Apart from that, the ease of
access of e-banking services is perceived as a measure of relative advantage.
Certain factors are considered as paramount importance in ensuring the success of
e-banking, i.e. the ability of an innovation to meet users' needs using different
feature availability on e-banking services such as the provision of interactive loan
calculators, exchange rate converters, and mortgage calculators on the screen draw
the attention of users of e-banking services. The customers satisfaction with
e-banking in relation to convenience is analyzed in table 4.9.
126
TABLE 4.9
CUSTOMER SATISFACTION TOWARDS CONVENIENCE OF E-BANKING SERVICES
E-banking medium
Public Sector Bank
Private Sector Bank
Combined
Mean score
Mean score (%)
Mean score
Mean score (%)
Mean score
Mean score (%)
ATM 09.55 27.30 16.55 47.29 12.77 36.50
Internet banking
14.90 42.57 21.18 60.51 18.31 52.32
Mobile banking
10.94 31.25 18.79 53.67 14.72 42.05
Average 11.09 31.68 18.46 52.73 14.67 41.92 Source: Primary data
Table 4.9 present that mean score secured for satisfaction level with regard
to convenience, which is highest in case of internet banking and lowest for ATMs
services. The mean score obtained for mobile banking service was 42.05 per cent.
The average mean score secured for selected e-banking services was 41.92 per
cent. The public and private sector bank respondents have obtained highest mean
score for internet banking services as compared to ATMs and other mobile
banking services. The average mean score obtained by the respondents for
selected e-banking services in public and private sector bank was 31.68 per cent
and 52.73 per cent. The respondents of public sector bank have obtained low mean
score as compared respondents of private sector banks. Therefore it can be
inferred from the table private sector banks customers have more convenience to
use e-banking services when compared to public sector banks.
Privacy
Customers may have doubts about the trustworthiness of the e-bank's
privacy policies. Trust has striking influence on user's willingness to use
e-banking services in exchanges of money and personal sensitive information.
127
Privacy is an important dimension that may affect users' intention to adopt
e-based transaction systems. Encryption technology is the most common feature at
all bank sites to secure information privacy, supplemented by a combination of
different unique identifiers, for instance, a password, mother's maiden name, a
memorable date, or a few minutes of inactivity automatically logs users off the
account. The customers’ satisfaction with regard to privacy is analyzed and
presented in table 4.10.
TABLE 4.10
CUSTOMER SATISFACTION TOWARDS PRIVACY OF E-BANKING SERVICES
E-banking medium
Public Sector Bank
Private Sector Bank
Combined
Mean score
Mean score (%)
Mean score
Mean score (%)
Mean score
Mean score (%)
ATM 16.37 40.93 24.24 60.60 20.00 50.00
Internet banking
25.30 63.25 29.31 73.28 27.48 68.71
Mobile banking
25.31 63.27 26.10 65.25 25.69 64.22
Average 21.22 53.07 26.13 65.32 23.61 59.03 Source: Primary data
Table 4.10 shows the mean score secured by the respondents for privacy.
The respondents have obtained the mean score of 59.03 percent for experiencing
privacy while using e-banking services. The maximum score of 68.71 per cent
obtained for internet banking followed by mobile banking services. The mean
score secured by the respondents for ATMs services was 50 per cent. The average
mean score of 53.07 per cent and 65.32 per cent was obtained by respondents of
public and private sector bank. The low mean score of 40.93 per cent obtained by
the public respondents for ATMs services.
128
More than 50 per cent mean score was secured by the respondents of public
sector bank for Internet banking services and mobile banking services. In case of
private sector, all the respondents have got more than 60 per cent mean score for
experiencing privacy. Therefore, it is understood from the table that all the
respondents are experienced privacy while using e-banking services except ATMs
services provided by public sector banks.
Security
Assurance about security relates to the extent to which the e-bank service
provider guarantees the safety of customers` financial and personal information.
Security can be assured by providing a privacy statement and information about
the security of the shopping mechanisms and by displaying the logos of trusted
third parties. For example, displaying trusted third party logo guarantees a certain
level of security protection and has been shown to significantly influence how
consumers regard the trustworthiness of e-vendors. The customers satisfaction in
relation to privacy is analyzed in table 4.11.
TABLE 4.11
CUSTOMER SATISFACTION TOWARDS SECURITY OF E-BANKING SERVICES
E-banking medium
Public Sector Bank
Private Sector Bank
Combined
Mean score
Mean score (%)
Mean score
Mean score (%)
Mean score
Mean score (%)
ATM 09.08 30.28 11.48 38.27 10.19 33.96
Internet banking
16.28 54.27 17.50 58.34 16.87 56.23
Mobile banking
13.16 43.87 18.47 61.57 16.05 53.49
Average 12.38 41.26 15.26 50.87 13.78 45.93 Source: Primary data
129
Table 4.11 indicates the mean score obtained by the respondents for
security while using e-banking services. The average mean score of 45.93 per cent
was secured by the both public and private sector bank respondents. The highest
score of 56.23 per cent and 53.49 per cent secured for internet banking and mobile
banking services, the lowest mean score of 33.96 per cent was obtained for ATMs
services. The respondent of both public and private sector bank was secured
lowest mean score of 30.28 per cent and 38.27 percent respectively for ATMs
services. Hence, it is inferred from the table the public and private sector bank
customers are feel security while using e-banking services except ATMs services.
Design
The goal of aesthetic design is to make a service medium site visually
attractive and enjoyable. The content preparation in a broad sense has four
aspects: knowledge elicitation, information organization and structure, information
retrieval, and information presentation. During design, and prior to
implementation, it is strongly recommended that users of different ages, and with a
range of capabilities and limitations be engaged to trial the new service and
provide feedback. The customer satisfaction of e-banking services with regard to
design is analyzed in table 4.12.
130
TABLE 4.12
CUSTOMER SATISFACTION TOWARDS DESIGN OF E-BANKING SERVICES
E-banking medium
Public Sector Bank Private Sector Bank Combined
Mean score
Mean score (%)
Mean score
Mean score (%)
Mean score
Mean score (%)
ATM 08.60 28.67 15.74 52.46 11.89 39.63
Internet banking
07.97 26.55 11.17 37.23 09.71 32.36
Mobile banking
10.11 33.70 08.81 29.37 09.49 31.62
Average 09.00 30.00 12.25 40.84 10.58 35.27 Source: Primary data
As per table 4.12, the average mean score obtained by the respondents was
35.27 per cent for design of the e-banking medium. It is noteworthy to mention
that all the respondents irrespective of bank has secured mean score less than 40
per cent for ATM, Internet banking and mobile banking services. The highest
score of 52.46 per cent was obtained by the ATM users in private sector bank.
Therefore, it can be inferred by the table that the design of the e-banking medium
is not user-friendly. The banks should redesign e-banking medium in consultation
with its customers.
Content
The content of e-banking service medium is one of the factors influencing
e- banking acceptance. On the other hand, quality designs, graphics or colors and
the propensity to portray good image of the bank would enhance efficient use of
navigation. The features such as speed, content and design, navigation,
interactivity and security all influence user satisfaction. Therefore, the customers
satisfaction with e-banking services with regard to content is analyzed in table
4.13.
131
TABLE 4.13
CUSTOMER SATISFACTION TOWARDS CONTENT OF E-BANKING SERVICES
E-banking medium
Public Sector Bank Private Sector Bank Combined
Mean score
Mean score (%)
Mean score
Mean score (%)
Mean score
Mean score (%)
ATM 14.14 40.40 16.22 46.34 15.09 43.13
Internet banking
08.71 24.88 11.41 32.60 10.17 29.06
Mobile banking
08.39 23.97 11.05 31.57 09.67 27.63
Average 11.08 31.65 13.27 37.91 12.14 34.69 Source: Primary data
Table 4.13 presents the mean score secured by the respondents for
e-banking services with regard to its content. The average mean score of 34.69 per
cent was obtained the total respondents. The lowest mean score of 29.06 per cent
was secured for mobile banking followed by internet banking services. The ATM
service users have got the mean score of 43 per cent. Table also reveals that the
respondents of both public and private sector bank have obtained the mean score of
less than 50 per cent. The public sector bank respondents have secured low mean
score as compared to respondents of private sector bank for ATMs, Internet
banking and Mobile banking services. Therefore, based on the opinion of the
respondents, it is inferred that there is poor content of e-banking services medium
is not up to the expectation of the consumer. The banks should redesign content of
the e-banking services to make the e-banking services more user-friendly.
Speed
In general, there is a significant correlation between speed of e-banking
service medium and user satisfaction. Speed of download depends on the nature of
the site downloaded content, the computing hardware and method of connection
used to download information.
132
Customers’ satisfaction with e-banking services in relation to speed of
e-bank service medium is analyzed in table 4.14.
TABLE 4.14
CUSTOMER SATISFACTION TOWARDS SPEED OF E-BANKING SERVICES
E-banking medium
Public Sector Bank Private Sector Bank Combined
Mean score
Mean score (%)
Mean score
Mean score (%)
Mean score
Mean score (%)
ATM 07.55 21.57 12.20 34.86 09.69 27.70
Internet banking
08.71 24.86 10.59 30.27 09.73 27.81
Mobile banking
10.02 28.63 11.72 33.48 10.84 30.97
Average 08.63 24.66 11.64 33.26 10.09 28.84
Source: Primary data
Table 4.14 depicts the mean score secured by the respondents for
experiencing speed while using e-banking services. Irrespective of the bank, all
the respondents have got the mean score of below 30 per cent and there is no much
variation in the mean score obtained by the respondents for ATMs, internet
banking and mobile banking services. Therefore, it is understood from table that
the respondents experiences low speed to complete their e-banking transactions.
Fees and Charges
Service quality attributes in e-banking industry are important since human-
internet interaction is the main service delivery and communication channel is
needed for offering high quality services and to satisfy consumers' needs, at lower
costs, are potential competitive advantage of e-banking. Cost savings have helped
e-based banks offer lower or no service fees, and offer higher interest rates on
interest-bearing accounts than traditional banks. Fee charged by the banks is one
133
of the variables taken for checking customer satisfaction level. If customer feels
that the fee charged by the bank is reasonable then he is satisfied and vice-versa.
Hence, the customer satisfaction with fees and charges for e-banking
services is given in table 4.15.
TABLE 4.15
CUSTOMER SATISFACTION TOWARDS FEES AND CHARGES OF E-BANKING SERVICES
E-banking medium
Public Sector Bank Private Sector Bank Combined
Mean score
Mean score (%)
Mean score
Mean score (%)
Mean score
Mean score (%)
ATM 21.72 48.27 06.88 15.28 14.88 33.07
Internet banking
22.62 50.27 05.71 12.69 13.43 29.84
Mobile banking
27.44 60.98 10.19 22.64 19.13 42.51
Average 23.88 53.06 07.71 17.13 16.01 35.59
Source: Primary data
Table 4.15 depicts the mean score obtained by the respondents for fees and
service charges charged by the e-banking service providers. The respondents has
secured the average mean score of 35.59 percent for fees charged by the banks for
using ATM, Internet banking and Mobile banking services. The internet banking
service users has secured low mean score of 29.84 per cent followed by ATMs
users; they secured the mean score of 33.07 per cent. The mobile banking service
users have secured 42.51 per cent. The public sector bank respondents have
secured the mean score of less than 50 per cent whereas private sector bank
respondents have obtained the mean score of less than 20 per cent. It is understood
from the table, the respondents are of the opinion that the e-banking service
providers have charged heavy charges for e-banking services. It is also inferred
134
from the table customers of private sector banks has to pay high cost for
transacting e-banking services as compared public sector banks.
Overall Mean Score
After considering all the elements of customer satisfaction they are
combined together to find out the overall customer satisfaction level of e-banking
services. The overall customer satisfaction level is the combination of eight
parameters i.e. Accessibility, Convenience, Privacy, Security, Design, Content,
Speed, Fees and Service charges. The overall customer satisfaction with e-banking
services is analyzed in table 4.16.
TABLE 4.16
OVERALL MEAN SCORE TOWARDS E-BANKING SERVICES
E-banking services
Public Sector Bank
Private Sector Bank Combined
Mean score
Mean score (%)
Mean score Mean score (%)
Mean score
Mean score (%)
ATM 108.43 33.88 142.70 44.59 124.22 38.82
Internet banking
131.97 41.24 150.31 46.97 141.92 44.35
Mobile banking
133.32 41.66 140.22 43.81 136.64 42.70
Average 121.82 38.07 143.75 44.92 132.41 41.38
Source: Primary data
Table 4.16 shows the overall mean score obtained by the respondents in
respect of ATMs, internet banking and mobile banking services. The average
mean score obtained by the respondents was 41.38. The maximum mean score of
44.35 per cent was secured for internet banking followed by mobile banking 42.70
per cent. The minimum mean score of 38.82 was secured by the respondents for
ATMs services. The overall mean score obtained respondents both in public and
private sector bank was less than 50 per cent. There is a small variation in the
135
overall mean score obtained by the respondents of public and private sector bank.
Therefore, it can be inferred from the table e-banking service users have low
satisfaction with e-banking services and the customer satisfaction with e-banking
services in private sector banks is better than that of public sector banks. The
overall mean secured by the respondents is also depicted in figure 4.2.
FIGURE 4.2
OVERALL MEAN SCORE TOWARDS E- BANKING SERVICES
33.88
44.5941.24
46.97
41.6643.81
38.07
44.92
0
10
20
30
40
50
ATM Internet
Banking
Mobile
Banking
Average
Public Sector Bank Mean score (%)
Private Sector Bank Mean score (%)
136
Customer Satisfaction Level
Level of satisfaction after using a particular service has been examined
using eight parameters i.e. accessibility, convenience, Privacy, Security, Design,
Content, Speed and Fees and Charges.
The level of customer satisfaction of the respondents regarding ATMs,
Internet banking and Mobile banking is assumed to be normally distributed. The
level of customer satisfaction of the respondents is divided into three categories,
i.e. below average, average and above average levels, which have been defined as
Low, Medium and High level of satisfaction respectively. The lower and upper
limits of average level have been calculated with the help of the following formula:
Lower limit of average level = Mean - 1 Standard deviation
Upper limit of average level = Mean + 1 Standard deviation
Source: Dr. A.B.Bhatnagar; Measurement & Evaluation, P. 116-120
The customer satisfaction level for various customer satisfaction factors in
respect of ATMs, Internet banking and Mobile banking services in the public and
private sector banks is shown in the following tables.
137
TABLE 4.17
CUSTOMER SATISFACTION TOWARDS OF ATM SERVICES
Customer satisfaction
Factor
No. of Respondents
Public Sector Bank Private Sector Bank Combined
Low Medium High Total Low
Medium High Total Low Medium High Total
Accessibility 72
(34.95) 86
(41.75) 48
(23.20) 206
(100.00) 65
(39.93) 72
(40.91) 39
(22.16) 176
(100.00) 137
(35.86) 158
(41.36) 87
(22.77) 382
(100.00)
Convenience 63
(30.58) 91
(44.17) 52
(25.24) 206
(100.00) 53
(30.11) 92
(52.27) 31
(17.61) 176
(100.00) 116
(30.37) 183
(47.91) 83
(21.73) 382
(100.00)
Privacy 94
(45.63) 75
(36.41) 37
(17.96) 206
(100.00) 27
17.31 96
(54.55) 53
(30.11) 176
(100.00) 121
(31.68) 171
(44.76) 90
(23.56) 382
(100.00)
Security 69
(33.50) 95
(46.12) 42
(20.39) 206
(100.00) 62
(35.23) 81
(46.02) 33
(18.75) 176
(100.00) 131
(34.29) 176
(46.07) 75
(19.63) 382
(100.00)
Design 102
(49.51) 71
(34.47) 33
(16.01) 206
(100.00) 34
(19.32) 95
(53.98) 47
(26.70) 176
(100.00) 136
(35.60) 166
(43.46) 80
(20.94) 382
(100.00)
Content 62
(30.09) 106
(51.46) 38
(18.45) 206
(100.00) 59
(33.52) 83
(47.16) 34
(19.32) 176
(100.00) 121
(31.68) 189
(49.47) 72
(18.85) 382
(100.00)
Speed 110
(53.40) 67
(32.52) 29
(14.08) 206
(100.00) 73
(41.48) 58
(32.95) 45
(25.57) 176
(100.00) 183
(47.91) 125
(32.72) 74
(19.37) 382
(100.00) Fees and Charges
61 (29.61)
93 (45.14)
52 (25.24)
206 (100.00)
127 (72.16)
37 (21.02)
12 (06.82)
176 (100.00)
188 (49.21)
130 (34.03)
64 (16.75)
382 (100.00)
Source: Primary data Note: Figure in the bracket is percentage to total
138
In public sector banks, 23 per cent of the respondents have high level of
satisfaction, about 41 per cent have medium level satisfaction and 35 per cent of
the respondents have experienced low level of satisfaction. In private sector
bank, nearly 40 per cent each have low and medium level of satisfaction and 22
per cent of the respondents have enjoyed high level satisfaction. Therefore, it can
be inferred that the customers are moderately satisfied with ATMs services
provided by the public and private sector banks with regard to accessibility.
Regarding customer satisfaction level of ATMs services in respect of
convenience, 31 per cent, 44 per cent and 25 per cent of the respondents have
low, medium and high level satisfaction in public sector bank. In case of private
sector bank, majority of the respondents have medium level satisfaction, 30
percent have experienced low level and less than one-fourth of the respondents
have high level of satisfaction. Therefore, it is understood from the table that the
customer have medium level of satisfaction with ATMs services in relation to
convenience.
In case of privacy, 46 per cent of the respondents have low satisfaction
and majority of the respondents have medium level satisfaction in public and
private sector bank in respect of privacy while using ATMs services, which
indicates that the private sector bank provide more privacy than that of public
sector bank for ATMs services users.
About 46 per cent of the respondents each in public and private sector
bank have experienced medium level of satisfaction with regard to security for
ATMs service. Therefore, it is understood that the both the private and public
sector banks have provide medium level of security to ATMs services users.
139
As far as design in ATM machines is concerned, about 50 per cent and 19
per cent have low level of satisfaction. Therefore, it is inferred from the table,
private sector bank have good user friendly design whereas in private sector bank
have poor design in ATMs machines.
Regarding content of the ATM machines, nearly 50 per cent of the
respondents both in public and private sector bank have medium level of
satisfaction, which indicates that the content is not a major obstacle for ATMs
users.
Majority of the respondents and 41 per cent of the respondents in public
and private sector bank have low satisfaction in respect of speed while using
ATMs service. Therefore, it can be inferred from the table, there is a substantial
scope to increase speed in ATM machines to facilitate speedy transaction.
About 30 per cent and 72 per cent of the respondents in public and private
sector bank have low satisfaction with fees and charges for ATMs services. It is
noteworthy to mention that the ATMs services provided by the banks have
reduced the employees cost considerably, in spites of that the banks particularly
private sector banks have charged heavily for ATMs services. The combined
Customer satisfaction level of ATMs is also exhibited in figure 4.3.
140
FIGURE 4.3
CUSTOMER SATISFACTION LEVEL OF ATMs
020406080
100120140160180200
Acc
essi
bilit
y
Con
veni
ence
Pri
vacy
Sec
urity
Des
ign
Cont
ent
Spee
d
Fees
and
Cha
rges
Customer Satisfaction Factor
No. o
f Res
pond
ents
Low Medium High
141
TABLE 4.18
CUSTOMER SATISFACTION TOWARDS OF INTERNET BANKING SERVICES
Customer satisfaction
Factor
No. of Respondents
Public Sector Bank Private Sector Bank Combined
Low Medium High Total Low
Medium High Total Low Medium High Total
Accessibility 34
(38.20) 43
(48.31) 12
(13.48) 89
(100.00) 18
(16.98) 39
(36.79) 49
(46.23) 106
(100.00) 52
(26.67) 82
(42.05) 61
(31.28) 195
(100.00)
Convenience 31
(34.83) 42
(47.19) 16
(17.98) 89
(100.00) 13
(12.26) 38
(35.85) 55
(51.89) 106
(100.00) 44
(22.56) 80
(41.02) 71
(36.41) 195
(100.00)
Privacy 14
(15.73) 33
(37.08) 42
(47.19) 89
(100.00) 08
(07.55) 29
(27.36) 69
(65.09) 106
(100.00) 22
(11.28) 62
(31.79) 111
(56.92) 195
(100.00)
Security 12
(13.48) 35
(39.33) 42
(47.19) 89
(100.00) 16
(15.09) 31
(29.24) 59
(55.67) 106
(100.00) 28
(14.35) 66
(33.85) 101
(51.79) 195
(100.00)
Design 48
(53.93) 26
(29.21) 15
(16.85) 89
(100.00) 57
(53.77) 31
(29.25) 18
(16.98) 106
(100.00) 105
(53.85) 57
(29.23) 33
(16.92) 195
(100.00)
Content 61
(68.54) 15
(16.85) 13
(14.61) 89
(100.00) 63
(59.43) 29
(27.36) 14
(13.21) 106
(100.00) 124
(63.59) 44
(22.56) 27
(13.84) 195
(100.00)
Speed 59
(66.29) 19
(21.35) 11
(12.35) 89
(100.00) 56
(52.83) 40
(37.74) 10
(09.43) 106
(100.00) 115
(58.97) 59
(30.26) 21
(10.77) 195
(100.00) Fees and Charges
22 (24.72)
47 (52.81)
20 (22.47)
89 (100.00)
88 (83.02)
14 (13.21)
04 (03.77)
106 (100.00)
110 (56.41)
61 (31.28)
24 (12.31)
195 (100.00)
Source: Primary data Note: Figure in the bracket is percentage to total
142
Table 4.18 shows the customer satisfaction with internet banking services
of public and private sector banks in the study area. Among the users of internet
banking services 48 per cent and 37 per cent of the respondents in the public and
private sector bank have experienced medium level satisfaction. About 38 per cent
in the public and 17 per cent in private sector bank have low level of satisfaction.
Nearly 13 per cent and 46 per cent in the same bank have enjoyed high level
satisfaction with internet banking services in respect of accessibility. Therefore, it
can be inferred from the table that private sector bank customers have high level
satisfaction as compared to public sector with regard to accessibility for using
internet banking services.
With regard to convenience, 35 per cent of the respondents in the public
sector bank and 13 per cent of the respondents in the private sector bank have
revealed low satisfaction. About 47 per cent and 36 per cent of the respondents
have expressed medium level of satisfaction. Further the table also exhibits that 52
per cent of the respondents in the private sector bank have experienced high level
of satisfaction as against 18 per cent in the public sector bank. Therefore, it can be
inferred from the table that the private sector bank customers have enjoyed high
level of satisfaction as compared to public sector bank in respect of convenience in
using internet banking services.
In public and private sector bank as much as 47 per cent and 65 per cent
have experienced high level of satisfaction with regard to privacy. It is understood
from the table that all the bank customers have enjoyed high level of privacy while
using internet banking services.
143
The table reveals that the nearly majority of the respondents highly satisfied
with security while using internet banking services. Therefore, it is inferred that
both the public and private sector banks provide high security for internet banking
transactions.
With regard to design, content and speed of e-banking medium of internet
banking, majority of the respondents in the public and private sector bank have
expressed low level of satisfaction. Therefore, it is inferred from the table the
design, content and speed of internet banking is not user-friendly, there is vast
amount of scope for improvement in the design, content and speed of the internet
banking.
Nearly one-fourth of the respondents in the public sector bank and 83 per
cent of the respondents in the private sector bank have reveled low level of
satisfaction with fees and charges charged by the banks. Therefore, in can be
concluded that the large number of customers in the private sector banks
dissatisfied with fees charged for internet banking services as compared to public
sector banks. The combined customer satisfaction factor is also exhibited in
figure 4.4.
144
FIGURE 4.4
COMBINED CUSTOMER SATISFACTION LEVEL OF INTERNET
BANKING SERVICES
020406080
100120140
Acce
ssib
ility
Conv
enie
nce
Priv
acy
Secu
rity
Desig
nCo
nten
tSp
eed
Fees
and
Char
ges
Customer Satisfaction Factor
No.
of R
espo
nden
ts
Low Medium High
020406080
100120140
Acce
ssib
ility
Conv
enie
nce
Priv
acy
Secu
rity
Desig
nCo
nten
tSp
eed
Fees
and
Char
ges
Customer Satisfaction Factor
No.
of R
espo
nden
ts
Low Medium High
145
TABLE 4.19
CUSTOMER SATISFACTION TOWARDS OF MOBILE BANKING SERVICES
Customer satisfaction
Factor
No. of Respondents
Public Sector Bank Private Sector Bank Combined
Low Medium High Total Low
Medium High Total Low Medium High Total
Accessibility 79
(50.64) 54
(34.62) 23
(14.74) 156
(100.00) 33
(22.76) 64
(44.14) 48
(33.10) 145
(100.00) 112
(37.21) 118
(39.20) 71
(23.59) 301
(100.00)
Convenience 84
(53.85) 51
(32.69) 21
(13.46) 156
(100.00) 26
(17.93) 68
(46.90) 51
(35.17) 145
(100.00) 110
(36.54) 119
(39.53) 72
(23.92) 301
(100.00)
Privacy 41
(26.28) 52
(33.33) 63
(40.38) 156
(100.00) 35
(24.14) 49
(33.79) 61
(42.07) 145
(100.00) 76
(25.25) 101
(33.55) 124
(41.20) 301
(100.00)
Security 55
(35.26) 62
(39.74) 39
(25.00) 156
(100.00) 42
(28.97) 58
(40.00) 45
(31.03) 145
(100.00) 97
(32.23) 120
(39.87) 84
(27.91) 301
(100.00)
Design 72
(46.15) 53
(33.97) 31
(19.88) 156
(100.00) 65
(44.83) 46
(31.72) 34
(23.45) 145
(100.00) 137
(45.51) 99
(32.89) 65
(21.59) 301
(100.00)
Content 94
(60.26) 40
(25.64) 22
(14.10) 156
(100.00) 68
(46.90) 53
(36.55) 24
(16.55) 145
(100.00) 162
(53.82) 93
(30.90) 46
(15.28) 301
(100.00)
Speed 86
(55.13) 44
(28.21) 26
(16.67) 156
(100.00) 71
(48.96) 49
(33.79) 25
(17.24) 145
(100.00) 157
(52.16) 93
(30.90) 51
(16.94) 301
(100.00) Fees and Charges
38 (24.36)
53 (33.97)
65 (41.67)
156 (100.00)
84 (57.93)
32 (22.07)
29 (20.00)
145 (100.00)
122 (40.53)
85 (28.24)
94 (31.23)
301 (100.00)
Source: Primary data Note: Figure in the bracket is percentage to total
146
Table 4.19 depicts customers’ satisfaction level with mobile banking
services. Majority of the respondents in the public sector bank and less than one-
fourth of the respondents in the private sector bank have expressed low level of
satisfaction with mobile banking services. Therefore, it can be inferred that the
customers of private sector banks easily access mobile banking services than that
of their counterpart, public sector banks.
While consider the convenience to use mobile banking services, majority of
the respondents in the public sector bank and a minimum of 17 per cent of the
respondents in the private sector bank have low level of satisfaction. Therefore, it
is understood from the table that the private sector banks customers have much
convenience for using mobile banking services as compared private sector banks.
Table reveals that most of the respondents in the public and private sector
bank have satisfied with privacy aspect while using mobile banking services.
Therefore, it is inferred from the table that the Indian banking sector provides high
degree of privacy for mobile banking users.
In security aspect of mobile banking, 40 per cent of the respondents each
have expressed medium level of satisfaction and 25 per cent and 31 per cent have
revealed high level of satisfaction. Therefore, it can be inferred that the security is
not a major factor which affect the customer satisfaction of mobile banking users.
In respect of design, content and speed, considerable portion of the
respondents have expressed low satisfaction with mobile banking services, which
indicates that there is an urgent need to adopt new design, content and high speed
by the banking sector to improve customers satisfaction.
147
Among the users of mobile banking users, majority of the respondents in
the private sector bank and one-fourth of the respondents in the public sector bank
have exposed low satisfaction level for fees and charges charged to use mobile
banking services. Therefore, it is understood from the table that the customers are
dissatisfied with the fees structure of private sector banks when compared to public
sector bank for using mobile banking services.
In nutshell, customers are moderately satisfied with ATMs services
provided by the public and private sector banks. The private sector bank customers
have high level satisfaction as compared to public sector with regard to
accessibility for using internet banking services and customers of private sector
banks easily access mobile banking services than that of their counterpart, public
sector banks.
The customer have medium level of satisfaction with ATMs services and
the private sector bank customers have enjoyed high level of satisfaction as
compared to public sector bank in respect of convenience in using internet banking
services and mobile banking services.
The customers are moderately satisfied with ATMs services provided by
the public and private sector banks and all the customers have enjoyed high level
of privacy while using internet banking services and mobile banking services. Both
the private and public sector banks have provide medium level of security to
ATMs services users. The security is not a major factor which affects the customer
satisfaction of internet banking and mobile banking users.
148
The private sector bank have good user friendly design whereas in private
sector bank have poor design in ATMs machines. The content is not a major
obstacle for ATMs users. There is a substantial scope to increase speed in ATM
machines to facilitate speedy transaction. The design, content and speed of
internet banking and mobile banking is not user-friendly, which indicates that there
is an urgent need to adopt new design, content and high speed by the banking
sector to improve customers satisfaction.
The large number of customers in the private sector banks dissatisfied with
fees charged for ATMs, internet banking and mobile banking services as compared
to public sector banks. The combined customer satisfaction level with mobile
banking services is also presented in figure 4.5
149
FIGURE 4.5
COMBINED CUSTOMER SATISFACTION TOWARDS OF MOBILE BANKING SERVICES
020406080
100120140160180
Acc
essi
bilit
y
Con
veni
ence
Priv
acy
Secu
rity
Des
ign
Con
tent
Spee
d
Fees
and
Customer Satisfaction Factor
No.
Of R
espo
nden
ts
Low Medium High
COMBINED CUSTOMER SATISFACTION TOWARDS OF E-BANKING
SERVICES
The present status of e-banking products is analyzed in all the banks with
the help of total customer satisfaction level (CSL) and total number of respondents
using these products. There are 64 statements, each carrying a maximum score of
five and minimum score of one. For all the 64 statements, the maximum score, one
can get is 320, if one strongly agrees with all the statements. Similarly the
minimum score one can get is 64, if one strongly disagrees to all the 64 statements.
Hence, the total scores very from 64 to 320.
150
TABLE 4.20
CUSTOMER SATISFACTION TOWARDS OVERALL E-BANKING SERVICES
E-banking services
Public Sector Bank Private Sector Bank Combined
Low Medium High Total Low Medium High Total Low Medium High Total
ATM 120
(58.25) 69
(33.50) 17
(08.25) 206
(100.00) 69
(39.20) 75
(42.61) 32
(18.18) 176
(100.00) 189
(49.48) 144
(37.70) 49
(12.83) 382
(100.00)
Internet banking 38
(42.70) 29
(32.58) 22
(24.72) 89
(100.00) 48
(45.28) 32
(30.19) 26
(24.53) 106
(100.00) 86
(44.10) 61
(31.28) 48
(24.62) 195
(100.00)
Mobile banking 69
(44.23) 61
(39.10) 26
(16.67) 156
(100.00) 73
(50.34) 54
(37.24) 18
(12.41) 145
(100.00) 142
(47.17) 115
(38.21) 44
(14.62) 301
(100.00) Source: Primary data
151
Table 4.20 reveals that the combined customer satisfaction level of selected
e-banking services. Out of 206 ATMs service users in public sector bank, the low
customer satisfaction level is maximum with 58 per cent respondents, 34 per cent
of the respondent got medium customer satisfaction and small portion of eight per
cent of the respondents exposed high customer satisfaction. Similarly, out of 176
respondents in the private sector bank 43 per cent have expressed medium level of
customer satisfaction, 39 percent have exposed low satisfaction
In case of internet banking services, there are 89 internet banking users in
the public sector bank, among them, 43 per cent are have low customer
satisfaction, 33 per cent have medium and one-fourth of the respondents have high
satisfaction. Likewise, there are 106 internet banking users in the private sector
bank, out of them, 45 per cent have secured low satisfaction, 30 per cent and 25 per
cent have expressed medium and high level of satisfaction.
Among the 156 users of mobile banking services in the public sector bank,
44 per cent secured low satisfaction,39 per cent expressed medium satisfaction
level and 17 per cent have enjoyed high level of customer satisfaction. Out of 145
mobile banking users in the private sector bank, 50 per cent have expressed low
satisfaction, 37 per cent have exposed medium level and 12 per cent are enjoyed
high level of customer satisfaction.
The table also reveals that dissatisfied level is highest in case of ATMs in
the public sector banks as compared to private sector banks whereas in case of
internet banking and mobile banking dissatisfied level is highest in public sector
banks when compared to private sector bank. The combined customer satisfaction
level of e-banking services is also exhibited in figure 4.6.
152
FIGURE 4.6
CUSTOMER SATISFACTION LEVEL OF E-BANKING SERVICES
189
86
142 144
61
115
49 48 44
382
195
301
0
50
100
150
200
250
300
350
400
No.
of R
espo
nde
nts
Low Medium High Total Satisfaction Level
ATM Internet banking Mobile banking
153
F-Test
F-test is applied to find out whether there is any difference in the customer
satisfaction on e-banking services between the public sector banks and private sector
banks is significant or not. The F – values calculated were compared with the table ‘F’
values (at 5% level and at 1% level) to test the significance of variation in respect of
customer satisfaction level among the customers of public and private sector banks.
The results were tabulated and interpreted in respect of overall customer satisfaction in
table 4.21.
Null hypothesis
The customers of public and private sector banks experience the same level of
satisfactions with e-banking services.
TABLE 4.21
CUSTOMER SATISFACTION BETWEEN PRIVATE AND PUBLIC SECTOR
BANKS (ANOVA)
Category SS df MS F-Value
ATMs Services and Customer Satisfaction
Between groups
150.00 1 150.00
0.094 Within groups 6389.33 4 1597.33
Total 6539.33 5
Internet banking Services and Customer Satisfaction
Between groups
48.17 1 48.17 0.4974 Within groups 387.33 4 96.83
Total 435.50 5
Mobile banking Services and Customer Satisfaction
Between groups
20.17 1 20.1667 0.0309
Within groups 2606.67 4 651.6667
Total 2626.83 5
The analysis of variance shows that the calculated value is less than the
tabulated value at 5% and 1% level of significance. The Ho is accepted. Hence, it was
154
found that the customers of public and private sector banks experience the same level
of satisfactions with reference to e-banking services.
Inter Correlation Matrix of Customer Satisfaction On E-Banking Services
In order to analyze whether there is any positive correlation between overall
customer satisfactions on e-banking services of ATMs, internet banking and mobile
banking services and the different customer satisfaction factors, a null hypotheses is
framed and tested with the help of correlation analysis, which is shown in the following
tables.
Inter Correlation Matrix of ATMs
To analyze the relationship between customer satisfaction on ATM services and
the customer satisfaction, a null hypothesis is framed and tested with the help of inter
correlation matrix.
Null Hypothesis Ho:
The customer satisfaction factors, Accessibility, Convenience, Privacy,
Security, design, Content, Speed, fees and charges has a positive significant association
with customer satisfaction on e-banking services.
The test statistic used to test the null hypothesis is
t =r
sqrt[(1—r2)/(N—2)]
155
TABLE 4.22
INTER CORRELATION MATRIX OF CUSTOMER SATISFACTIONS – ATMS (N =382)
Table 4.24 indicates that all the customer satisfaction factors such as
accessibility, convenience, security, design, content, speed, fees and charges have
positive significant association with customer satisfactions on mobile banking services.
However the factor Privacy has negative correlation with overall customer satisfaction
on mobile banking services.
158
Demographic Variables and Customer Satisfaction
The level of customer satisfaction of e-banking services in the study units in
accordance with individual demographic variables such as gender, age, education,
occupation, and income is analyzed and presented in following tables.
Sex and Customer Satisfaction Level of ATMs
The customer satisfaction level of ATMs services and sex of the respondents is
shown in table 4.25.
TABLE 4.25
SEX AND CUSTOMER SATISFACTION LEVEL OF ATMs SERVICES
Sex No. of Respondents
Low Medium High Total
Male 148
(54.82) 95
(35.18) 27
(10) 270
(100)
Female 41
(36.61) 49
(43.75) 22
(19.64) 112
(100)
Total 189
(49.48) (144)
(37.69) 49
(12.83) 382
(100.00) Source: primary data, figure in the bracket percentage to the total.
Table 4.25 depicts the sex and customer satisfaction on ATMs services. Out of
270 male respondents majority of them (54.82 %) have the experience of low
satisfaction. The reason for that may insufficiency currency in ATM machines and out
of services. Nearly one-third of male respondents (35.18 %) who have medium
satisfaction and 10 per cent of the total respondents have high satisfaction. It is inferred
from the table that the male customers have low satisfaction with ATMs services as
compared to female respondents in the study area.
159
Sex and Customer Satisfaction Level of Internet Banking
The sex of the respondents and their level of satisfaction with internet banking
services is shown in table 4.26
TABLE 4.26
SEX AND CUSTOMER SATISFACTION LEVEL OF INTERNET BANKING SERVICES
Sex No. of Respondents
Low Medium High Total
Male 52
(42.62) 43
(35.25) 27
(22.13) 122
(100)
Female 34
(46.58) 18
(24.66) 21
(28.76) 73
(100)
Total 86
(44.1) 61
(31.28) 48
(24.62) 195
(100.00) Source: primary data, figure in the bracket percentage to the total.
Table 4.26 indicates that out of 195, 86 respondents have reveled low
satisfaction with internet banking, of which 42.62 per cent male and 46.58 per cent are
female respondents. Among the respondents who have secured medium and high level
satisfaction, majority of them are male respondents. But, female respondents have high
satisfaction as compare with male respondents. It is understood from the table that the
male customers have low satisfaction as compared to their counterpart, female
customers.
160
Sex and Customer Satisfaction Level of Mobile Banking Services
Sex of the respondents and their level of satisfaction with mobile banking
services is shown in table 4.27
TABLE 4.27
SEX AND CUSTOMER SATISFACTION LEVEL OF MOBILE BANKING SERVICES
Sex No. of Respondents
Low Medium High Total
Male 96
(44.24) 84
(38.71) 37
(17.05) 217
(100)
Female 46
(54.77) 31
(36.9) 07
(8.33) 84
(100)
Total 142
(47.18) 115
(38.21) 44
(14.61) 301
(100.00) Source: primary data, figure in the bracket percentage to the total.
Table 4.27 shows that there were 301 sample mobile banking users. Among
them 142, 115 and 44 respondents were revealed low, medium and high satisfaction
respectively. The respondents who have exposed low, medium and high satisfaction,
majority of them are male respondents. It is inferred from the table that majority of the
male customers in the both public and private sector banks have low satisfaction with
mobile banking services.
The analyses of the customer satisfaction indicate that the most of the male
respondents have low satisfaction with selected e-banking services of ATMs, internet
banking and mobile banking.
161
Age and Customer Satisfaction Level of ATM Services
The age wise distribution of the respondents and customer satisfaction level of
ATMs is shown in table 4.28.
TABLE 4.28
AGE AND CUSTOMER SATISFACTION LEVEL OF ATM SERVICES
Age (Years) No. of Respondents
Low Medium High Total
Bellow 25 24
(43.64) 15
(27.27) 16
(29.09) 55
(100)
25 – 35 94
(63.08) 46
(30.88) 09
(6.04) 149
(100)
35 – 45 44
(55) 22
(27.5) 14
(17.5) 80
(100)
Above 45 27
(27.55) 61
(62.24) 10
(10.21) 98
(100)
Total 189
(49.48) 144
(37.69) 49
(12.83) 382
(100.00) Source: primary data, figure in the bracket percentage to the total.
Table 4.28 depicts the age and customer satisfaction on ATMs. About 50 per
cent of the respondents belong to the age group of 25 - 35 years has low level
satisfaction followed by the age group of above 45 years. Out of 382 respondents, 189,
144 and 49 respondents has experienced Low, Medium and High level of satisfaction
respectively. Among the respondents who have enjoyed high level of satisfaction,
nearly 30 percent of the respondents were in the below 25 years have high level of
satisfaction. Among the respondents who have enjoyed medium level of satisfaction
majority of them (62%) is in the age group of above 45. Out of 189 respondents who
have secured low satisfaction majority of them (63%) in the age group of 25 – 35.
Therefore, it can be inferred from the table that the customers in the age group of 25 -
35 years may have dissatisfied with the ATMs services provided by the banks in the
study area.
162
Age and Customer Satisfaction Level of Internet Banking Services
The customer satisfaction level of internet banking and age of the respondents is
shown in table 4.29.
TABLE 4.29
AGE AND CUSTOMER SATISFACTION LEVEL OF INTERNET BANKING SERVICES
Age (Years) No. of Respondents
Low Medium High Total
Bellow 25 21
(55.26) 11
(28.95) 06
(15.79) 38
(100)
25 – 35 40
(46.51) 24
(27.91) 22
(25.58) 86
(100)
35 – 45 05
(20.83) 13
(54.17) 06
(25) 24
(100)
Above 45 20
(42.55) 13
(27.66) 14
(29.79) 47
(100)
Total 86
(100.00) 61
(31.28) 48
(24.62) 195
(100.00) Source: primary data, figure in the bracket percentage to the total.
Regarding the internet banking services, out of 195 internet banking users, 86,
61, and 48 respondents have expressed low, medium and high satisfaction respectively.
The majority of internet users (86) fall in age group of 25 – 35. Out of them 47 per
cent, 28 per cent and 26 per cent of respondents have low, medium and high level
satisfaction respectively. Above 45 age group of people availing internet banking
followed by 25 – 35 age group. Among them 43 per cent, 28 per cent and 30 per cent
of respondents have low, medium and high level of satisfaction respectively. In the
age group if 35 – 45, 24 respondents are using Internet Banking out of them 21 per
cent, 55 per cent and 25 per cent of respondents have the experience of low, medium
and high level satisfaction respectively. It is understood from the table the customers in
the age group of 40-50 years have disgruntled with the internet banking services in the
study area.
163
Age and Customer Satisfaction Level of Mobile Banking Services
The customer satisfaction level of mobile banking and age of the respondents is
shown in table 4.30.
TABLE 4.30
AGE AND CUSTOMER SATISFACTION LEVEL OF MOBILE BANKING SERVICES
Age (Years) No. of Respondents
Low Moderate High Total
Bellow 25 21
(50) 12
(28.57) 09
(21.43) 42
(100)
25 – 35 65
(53.72) 39
(32.23) 17
(14.05) 121
(100)
35 – 45 32
(47.76) 22
(32.84) 13
(19.4) 67
(100)
Above 45 24
(33.8) 42
(59.15) 05
(7.05) 71
(100)
Total 142
(47.18) 115
(38.21) 44
(14.61) 301
(100.00) Source: primary data, figure in the bracket percentage to the total.
Table 4.30 reveals among the users of mobile banking services in the study
area, 46 per cent of the respondents in the age group of 25 - 45 years expressed low
satisfaction followed by 35 – 45 age group of respondents. It is noteworthy to mention
that the maximum number respondents in the age group of 25 - 35 years have low level
of customer satisfaction as compared to other age groups with e-banking services
provided by the public and private sector banks in the study area.
164
Education and Customer Satisfaction Level of ATM
The educational qualifications and customer satisfaction level of ATM in public
and private sector banks in the study area is shown in table 4.31.
TABLE 4.31
EDUCATION AND CUSTOMER SATISFACTION LEVEL OF ATM SERVICES
Educational qualifications
No. of Respondents Low Moderate High Total
Up to HSC 17
(37.78) 16
(35.56) 12
(26.66) 45
(100)
Graduate 86
(47.78) 80
(44.44) 14
(7.78) 180
(100)
Post Graduate 58
(56.86) 35
(34.31) 09
(8.83) 102
(100)
Professional 28
(50.91) 13
(23.64) 14
(25.45) 55
(100)
Total 189
(49.48) 144
(37.7) 49
(12.82) 382
(100.00) Source: primary data, figure in the bracket percentage to the total.
The table 4.31 depicts the educational qualifications and their customer
satisfaction on e-banking services of ATM service. Nearly majority of the respondents
are having low level of satisfaction, among them graduates are majority, followed by
post graduates, which indicates that the graduate and post graduate are highly
dissatisfied with the ATMs service performance of the banks in the study area.
165
Education and Customer Satisfaction Level of Internet Banking Services
The educational qualifications and customer satisfaction level of internet
banking is shown in table 4.32.
TABLE 4.32
EDUCATION AND CUSTOMER SATISFACTION LEVEL OF INTERNET BANKING SERVICES
Educational qualifications
No. of Respondents Low Moderate High Total
Up to HSC 08
(53.34) 05
(33.33) 02
(13.33) 15
(100)
Graduate 37
(48.68) 21
(27.64) 18
(23.68) 76
(100)
Post Graduate 24
(38.71) 23
(37) 15
(24.19) 62
(100)
Professional 17
(40.48) 12
(28.57) 13
(30.95) 42
(100)
Total 86
(44.1) 61
(31.28) 48
(24.61) 195
(100.00) Source: primary data, figure in the bracket percentage to the total.
Table 4.32 shows 86 respondents are having low level of satisfaction out of 195
internet banking service users. The respondents who are having low level of
satisfaction, 8, 37 and 24 respondents are graduate, post graduate and professionals
respectively. It can be inferred from the table graduate customers have dissatisfied with
the internet banking performances as compared other customers.
166
Education and Customer Satisfaction Level of Mobile Banking Services
The educational qualifications and customer satisfaction level of mobile
banking is shown in table 4.33.
TABLE 4.33
EDUCATION AND CUSTOMER SATISFACTION LEVEL OF MOBILE BANKING SERVICES
Educational qualifications
No. of Respondents Low Medium High Total
Up to HSC 12
(42.86) 10
(35.71) 06
(21.43) 28
(100)
Graduate 84
(57.14) 48
(32.65) 15
(10.21) 147
(100)
Post Graduate 39
(46.43) 32
(38.1) 13
(15.47) 84
(100)
Professional 07
(16.67) 25
(59.52) 10
(23.81) 42
(100)
Total 142
(47.18) 115
(38.21) 44
(14.61) 301
(100.00) Source: primary data, figure in the bracket percentage to the total.
Table 4.33 clearly shows that out of 142 respondents who are having low level
of satisfaction with mobile banking, majority of the respondents are graduates followed
by post graduates respondents. So, it is understood from the analysis that the graduate
customers dissatisfied with e-banking performance of the banks as compared to other
customers in the study area.
167
Occupation and Customer Satisfaction Level of ATM Services
The occupation of the respondents and customer satisfaction level of ATM in
public and private sector banks is shown in table 4.34
TABLE 4.34
OCCUPATION AND CUSTOMER SATISFACTION LEVEL OF ATM SERVICES
OCCUPATION No. of Respondents
Low Moderate High Total
Salaried 84
(56.38) 51
(34.23) 14
(9.39) 149
(100)
Professional 18
(40.91) 14
(31.82) 12
(27.27) 44
(100)
Business 64
(51.61) 52
(41.94) 08
(6.45) 124
(100)
Retired 17
(42.5) 12
(30) 11
(27.5) 40
(100)
Housewife 06
(24) 15
(60) 04
(16) 25
(100)
Total 189
(49.48) 144
(37.7) 49
(12.82) 382
(100.00) Source: primary data, figure in the bracket percentage to the total.
Table 4.34 shows the respondents who are salaried employees have low level of
satisfaction followed by the respondents who are running the business. A insignificant
portion of the professionals, retired employees and housewife are having low level of
satisfaction. It is inferred from the table that more number of salaried customers and
business customers are having low satisfaction with ATMs services.
168
Occupation and Customer Satisfaction Level of Internet Banking Services
The occupation of the respondents and customer satisfaction level of internet
banking services is shown in table 4.35
TABLE 4.35
OCCUPATION AND CUSTOMER SATISFACTION LEVEL OF INTERNET BANKING SERVICES
OCCUPATION No. of Respondents
Low Moderate High Total
Salaried 27
(51.93) 14
(26.92) 11
(21.15) 52
(100)
Professional 14
(43.75) 10
(31.25) 08
(25) 32
(100)
Business 38
(40) 33
(34.74) 24
(25.26) 95
(100)
Retired 05
(45.45) 02
(18.18) 04
(36.37) 11
(100)
Housewife 02
(40) 02
(40) 01
(20) 05
(100)
Total 86
(44.1) 61
(31.28) 48
(24.62) 195
(100.00) Source: primary data, figure in the bracket percentage to the total.
Table 4.35 shows that out of 195 internet banking users, 86 respondents were
secured low satisfaction, among them, majority are business and salaried respondents.
Out of 61 and 48 respondents who are having medium and high level of satisfaction,
the business respondents have expressed medium and high level of satisfaction with
internet banking services. It can be concluded that the salaried and business customers
are having very low satisfaction among the customers who have expressed low
satisfaction with internet banking performance.
169
Occupation and Customer Satisfaction Level af Mobile Banking Services
The occupation of the respondents and customer satisfaction level of mobile
banking is shown in table 4.36
TABLE 4.36
OCCUPATION AND CUSTOMER SATISFACTION LEVEL OF MOBILE BANKING SERVICES
OCCUPATION No. of Respondents
Low Moderate High Total
Salaried 41
(35.66) 60
(52.17) 14
(12.17) 115
(100)
Professional 14
(37.84) 12
(32.43) 11
(29.73) 37
(100)
Business 58
(57.43) 34
(33.66) 09
(8.91) 101
(100)
Retired 22
(68.75) 04
(12.5) 06
(18.75) 32
(100)
Housewife 07
(43.75) 05
(31.25) 04
(25) 16
(100)
Total 142
(47.18) 115
(38.21) 44
(14.61) 301
(100.00) Source: primary data, figure in the bracket percentage to the total.
In customer satisfaction level with mobile banking services, out of 142 low
satisfaction customers business respondents and salaried respondents are maximum.
The analysis of the customer satisfaction with mobile banking services revealed that
salaried and business customers are having very low satisfaction.
170
Income and Customer Satisfaction Level of ATM Services
The customer satisfaction level of ATM and income of the respondents is shown
in table 4.37.
TABLE 4.37
INCOME AND CUSTOMER SATISFACTION LEVEL OF ATM SERVICES
Annual Income ( ) No. of Respondents
Low Medium High Total
Less than ( )1 lakh 42
(60) 19
(27.14) 09
(12.86) 70
(100)
( ).1 – 2 lakhs 43
(44.38) 38
(39.18) 16
(16.49) 97
(100)
( ) 2 –3 lakhs 33
(47.14) 29
(41.43) 08
(11.43) 70
(100)
( )3-4 lakhs 38
(55.88) 24
(35.29) 06
(8.83) 68
(100)
Above ( ) 4 lakhs 33
(42.86) 34
(44.16) 10
(12.98) 77
(100)
Total 189
(49.48) 144
(37.69) 49
(12.83) 382
(100.00) Source: primary data, figure in the bracket percentage to the total.
Table 4.37 shows that income wise distribution of the respondents and their
satisfaction level with ATMs services. Out of 189 respondents, who have experienced
as low satisfaction level majority of them belongs to 1-2 lakhs income group. In this
group 144 respondents experienced as medium level satisfaction, among them, large
number of respondents belongs to above 4 lakh. 49 respondents has high level
satisfaction with ATMs services. Out of them, 1-2 lakhs income level has large
number of respondents. It is inferred from the table that the fifty per cent of the ATM
service users have low satisfaction and remaining 50 per cent have medium and high
satisfaction and there is no major variation between income and satisfaction level of the
respondents who are having low satisfaction with ATM services.
171
Income and Customer Satisfaction Level of Internet Banking Services
The customer satisfaction level of internet banking and income of the respondents
is shown in table 4.38.
TABLE 4.38
INCOME AND CUSTOMER SATISFACTION LEVEL OF INTERNET BANKING SERVICES
Income ( ) No. of Respondents
Low Medium High Total
Less than ( )1 lakh 12
(46.15) 09
(34.61) 05
(19.24) 26
(100)
( ).1 – 2 lakhs 23
(41.82) 18
(32.73) 14
(25.45) 55
(100)
( ) 2 –3 lakhs 14
(43.75) 07
(21.87) 11
(34.38) 32
(100)
( )3-4 lakhs 11
(39.28) 09
(32.14) 08
(28.58) 28
(100)
Above ( ) 4 lakhs 26
(48.15) 18
(33.33) 10
(18.52) 54
(100)
Total 86
(44.1) 61
(31.28) 48
(24.62) 195
(100.00) Source: primary data, figure in the bracket percentage to the total.
Table 4.38 shows out of 195 internet banking users, 86, 61, and 48 respondents
have low, medium and high level of satisfaction respectively. Among the respondents
who have low satisfaction, 48.15 per cent of the respondents’ annual income is above
4 lakhs and 43.75 per cent of the respondents’ annual income is between 2- 3 lakhs,
46.15 per cent of the respondents’ annual income is less than 1 lakhs, 41.82 per cent
of the respondents’ annual income is between 1- 2 lakhs, 39.28 per cent of the
respondents’ annual income is between 3- 4 lakhs. Out of 61 respondents who have
medium level satisfaction, majority of them have annual income of .1 – 2 lakhs and
above 4 lakhs. The respondents who have expressed high satisfaction level, 25.45 per
cent of the respondents monthly income is 2 – 3 lakhs. It is inferred from the table
that among the dissatisfied customers, the high income group has low satisfaction in
relation to internet banking performance.
172
Income and Customer Satisfaction Level of Mobile Banking Services
The customer satisfaction level of mobile banking and income of the
respondents is shown in table 4.39.
TABLE 4.39
INCOME AND CUSTOMER SATISFACTION LEVEL OF MOBILE BANKING SERVICES
Income ( ) No. of Respondents
Low Moderate High Total
Less than ( )1 lakh 21
(47.73) 16
(36.36) 07
(15.91) 44
(100)
( ).1 – 2 lakh 45
(53.57) 27
(32.14) 12
(14.29) 84
(100)
( ) 2 –3 lakh 33
(50.77) 23
(35.38) 09
(13.85) 65
(100)
( )3-4 lakh 28
(53.85) 14
(26.92) 10
(19.23) 52
(100)
Above ( ) 4 lakh 15
(26.79) 35
(62.5) 06
(10.71) 56
(100)
Total 142
(47.18) 115
(38.21) 44
(14.61) 301
(100.00) Source: primary data, figure in the bracket percentage to the total.
Table 4.39 indicates that out of 142 and 115 respondents who have low and
medium level satisfaction with mobile banking services. Among the respondents large
number of respondents belongs to the income between 1 – 2 lakhs. In this income
group more than 50% have low satisfaction with Mobile Banking services. 115
respondents have medium level of experience, majority of them (35) belongs to above
4 lakh. 44 respondents have high level of satisfaction; majority of them belongs to
3 – 4 lakh. It is understood from the table, among the dissatisfied customer, the
middle income group of the respondents i.e., annual income is in between 1 – 3 lakhs,
are highly dissatisfied with the mobile banking performance.
173
Demographic Variables and Customer Satisfactions
To analyze the relationship between demographic variables such as sex, age,
educational qualifications, occupation and income and customer satisfactions with e-
banking services, a null hypothesis is framed and tested with the help chi-square test.
The result of the chi-square test is shown in tables
Demographic Variables and Customer Satisfactions Level on ATM Services
The relationship between individual demographic variables and customer
satisfaction level on ATM services is presented in Table 4.40.
Null hypothesis
There is no relationship between demographic variables of the respondents and
their satisfaction on ATMs service performance.
TABLE 4.40
CHI-SQUARE TEST RESULT – ATM SERVICES
Demographic variable
Chi-Square Test – Value
Table value 5% level
Table value 1% level
Ho Accepted / Rejected
Significance
Sex and satisfactions 12.6 12.59 16.81 Rejected *Significant Age and satisfactions 55.6 12.59 16.81 Rejected **Significant Educational qualifications and satisfactions
26.3 12.59 16.81 Rejected **Significant
Occupation and satisfactions 30.6 15.51 20.09 Rejected **Significant
Income and satisfactions 8.72 15.51 20.09 Accepted Not
significant *Significant at 5% level; ** Significant both at 5% level and 1% level.
As per table 4.40, there is a significant relationship among the demographic
variables, sex, age, educational qualifications, occupations and customer satisfactions.
However, there is no significant relationship between income and customer
satisfactions.
174
Demographic Variables and Customer Satisfactions Level on Internet Banking
Services
The relationship between individual demographic variables and customer
satisfaction level on internet banking is shown in Table 4.41.
Null hypothesis
There is no relationship between demographic variables of the respondents and
their satisfactions on internet banking performance.
TABLE 4.41
CHI-SQUARE TEST RESULT – INTERNET BANKING SERVICES
Demographic variable
Chi-Square Test – Value
Table value 5% level
Table value 1% level
Ho Accepted / Rejected
Significance
Sex and satisfactions 2.62 12.59 16.81 Accepted Not
significant
Age and satisfactions 10.5 12.59 16.81 Accepted Not
significant Educational qualifications and satisfactions
3.79 12.59 16.81 Accepted Not
significant Occupation and satisfactions
3.44 15.51 20.09 Accepted Not
significant
Income and satisfactions 4.11 15.51 20.09 Accepted Not
significant *Significant at 5% level; ** Significant both at 5% level and 1% level.
The chi-square test result reveals that there is no significant relationship
between demographic variables, sex, age, educational qualifications, occupation and
income and customer satisfactions on internet banking performance.
175
Demographic Variables and Customer Satisfactions Level on Mobile Banking
Services
The relationship between individual demographic variables and customer
satisfaction level on mobile banking is shown in table 4.42.
Null hypothesis
There is no relationship between demographic variables of the respondents and
their satisfaction on mobile banking performance.
TABLE 4.42
CHI-SQUARE TEST RESULT – MOBILE BANKING SERVICES
Demographic variable
Chi-Square Test – Value
Table value 5% level
Table value 1% level
Ho Accepted / Rejected
Significance
Sex and satisfactions 4.62 12.59 16.81 Accepted Not
significant Age and satisfactions 19.9 12.59 16.81 Rejected *Significant Educational qualifications and satisfactions
23.00 12.59 16.81 Rejected **Significant
Occupation and satisfactions
31.9 15.51 20.09 Rejected **Significant
Income and satisfactions 19.1 15.51 20.09 Rejected *Significant *Significant at 5% level; ** Significant both at 5% level and 1% level.
Table 4.23 reveals that there is a significant relationship between the
demographic variables, age, educational qualifications occupation, income and
customer satisfaction on mobile banking, whereas there is no relationship between sex
of the respondents and customer satisfaction on mobile banking services.