DISSERTATION REPORT ON “Customer perception towards Internet banking w.r.f to private and foreign banks in India (use of MDS)” SUBMITTED TOWARDS THE FULFILLMENT OF POST GRADUATE DIPLOMA IN BUSINESS MANAGEMENT (APPROVED BY AICTE, GOVT OF INDIA) (EQUIVALENT TO MBA) ACCADEMIC SESSION (2007-2009) Submitted To: Submitted By: - Proff. Timira Shukla SIDDHARTH AGARWAL (Chair Person PGDBM) BM 07149 1 | Page
guys this is a ok project and its questioner is a good 1 a lot more research could have been done on this but bcoz of lack of time i was unable to complete my research
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DISSERTATION REPORT
ON
“Customer perception towards Internet banking w.r.f to private and foreign banks in India (use of MDS)”
SUBMITTED TOWARDS THE FULFILLMENT
OF
POST GRADUATE DIPLOMA IN
BUSINESS MANAGEMENT
(APPROVED BY AICTE, GOVT OF INDIA)
(EQUIVALENT TO MBA)
ACCADEMIC SESSION
(2007-2009)
Submitted To: Submitted By: -
Proff. Timira Shukla SIDDHARTH AGARWAL
(Chair Person PGDBM) BM 07149
INSTITUTE OF MANAGEMENT STUDIES
C-238, BULANDSHAR ROAD,
LAL QUAN, G.T.ROAD
GHAZIABAD-201009
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ACKNOWLEDGEMENT.
A Project report is an assessment of one’s great skill and aptitude. One
needs to devote in immense patience, time and brains for the compilation of one
such rewarding outcome of true efforts.
I am indeed thankful to honorable Director Sir (IMS, Ghaziabad), Dr.
R. K. Bhardwaj who has provided the wonderful opportunity of getting exposed
to industrial and business working know-how. This study enabled me to analyze
and understand the gaining foothold internet banking system in banking senario.
This opportunity availed has immensely enhanced my own creativity and
diversified my thought process by taking a deep insight of various Banks in the
NCR region and the growing inclination of the Indian customer toward internet
banking based on a number of parameters.
I would like to render my sincere heartfelt gratitude to my Project
Mentor Prof. Timira Shukla (Chairperson PGDBM) for her immense
encouragement, guidance and invaluable lecture sessions both before and
throughout my Dissertation. SHe has been an inspirational mentor guiding me
through every step of my project, thus making the entire Dissertation a complete
learning process.
Never the last I would take the opportunity to thank the concerned bank
officials for providing me with the necessary and relevant information. A word of
thanks to the customers for giving in their invaluable time and being a part of the
survey.
SIDDHARTH AGARWAL
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TO WHOMSOEVER IT MAY CONCERN
This is to certify that Mr. SIDDHARTH AGARWAL student of PGDBM
(2007-2009) I.M.S Ghaziabad has done his dissertation under my guidance
and supervision.
He has completed the project titled ““Customer perception towards Internet banking w.r.f to private and foreign banks in India (use of
MDS)” For the partial fulfillment of PGDBM under my supervision.
During his project he was found to be very sincere and attentive to small
details whatsoever told to him.
I wish him luck and success in future.
Under the guidance of:
Prof.Timira Shukla
Chair Person PGDBM
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PREFACE.
Management education in India gained momentum in the early seventies. In the early
stages, faculty, concepts, materials and pedagogy were borrowed from the Western
collaborators. The need for market analysis, strategy and decision making and the need
for contextual relevance of the application of quantitative techniques to developing
countries has been increasingly felt because management principles are not only being
applied to business and industry, but also to newer areas like rural development, non-
profit making organizations and non-enterprise management.
Banking is a highly information intensive activity that relies heavily on information
technology (IT) to acquire, process, and deliver the information to all relevant customers.
Banks used the Internet technology as a strategic weapon to revolutionize the way they
operate, deliver, and compete against each other. As a result Online Banking was
introduced as a channel where bank customers could perform their financial transactions
electronically via their banks’ Web sites. An Online Banking user is expected to perform
at least one of the following transactions online:
1. Checking account balance and transaction history
2. Paying bills
3. Transferring funds between accounts
4. Requesting credit card advances
5. Ordering checks
6. Managing investments and stocks trading
From a bank’s perspective, using the Internet is more efficient than using other
distribution mediums because banks are looking for an increased customer base. Using
multiple distribution channels increases effective market coverage by enabling different
products to be targeted at different demographic segments. Also Banks cannot risk
loosing customers to competitors within the aggressive competition in the banking
industry around the world. Moreover Internet delivery offers customized service to suit
the needs and the likes of each user. Mass customisation happens effectively through
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Online Banking. It reduces cost and replaces time spent on routine errands with spending
time on business errands. Online Banking means less staff members, smaller
infrastructure demands, compared with other banking channels. From the customers’
perspective, Online Banking provides a convenient and effective way to manage finances
that is easily accessible 24 hours a day, seven days a week. In addition information is up
to date. Nevertheless Online Banking has disadvantages for banks like how to work the
technology, set-up cost, legal issues, and lack of personal contact with customers. And
for customers there are security and privacy issues
the customer, collaboration, continuous improvement, content, accuracy, ease of use,
timeliness, aesthetics, security and divers features. They also suggested that some
dimensions such as responsiveness, reliability and access are critical for both traditional
and internet banks. Jayawardhena (2004) transforms the original SERVQUAL scale
to the internet context and develops a battery of 21 items to assess service quality in e-
banking. By means of an Exploratory Factor Analysis (EFA) and a Confirmatory Factor
Analysis (CFA), these 21 items are condensed to five quality dimensions: access, website
interface, trust, attention and credibility.
From the provider perspective, there are target quality and delivered quality. The focus of
process- or supply-led quality definition is rather internal than external, and it is defined
as conformance to requirements. It lays emphasis on the importance of the management
and the supply-side quality, and there is an important role of the process in determining
the quality of outcome (Ghobadian, 1994). Achieving the quality of conformance
between the planned (target) quality level and the real quality delivered to customers
depends on the service quality management system in an organization.
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[2] IAMAI report on online banking 2006. 43% of online banking user haven’t started online financial transaction because of security reasons, 39% haven’t started because they prefer face to face, 22% haven’t started because they don’t know how to use, for 10% sites are not user friendly and for 2% banks are not providing the facility of internet banking. According to research 68% of the customers can not say that when they will be starting the financial transactions through internet.Maximum numbers of online banking users are male and maximum of them are in age
the group of 25-35. Numbers of female users are very less i.e. 17% only. More than 60%
of the people who are having account with have accounts in 3-4 banks.
Only 37% of Indian Internet users come from Top 10 cities i.e. Mumbai, Bangalore,
Delhi, Calcutta, Chennai, Pune, Hyderabad, Ahmedabad, Surat and Nagpur. Another day
and another number. As per IAMAI and I-cube, the number of active Internet user (i.e.
ones who logon to Internet atleast once a month) is now 32 million and numbers who
have used Internet atleast once stands at 46 million.
[3] The Indian Internet Banking Journey In 2001, a Reserve Bank of India
survey revealed that of 46 major banks operating in India, around 50% were either
offering Internet banking services at various levels or planned to in the near future.
According to a research report,( India Research, Kotak Securities, May 2000.) while in
2001, India's Internet user base was an estimated 9 lakh; it was expected to reach 90 lakh
by 2003. Also, while only 1% of these Internet users utilized the Internet banking
services in 1998, the Internet banking user base increased to 16.7% by mid- 2000.
[4] Meuter et al. (2000) have identified critical incidents of customer
satisfaction and dissatisfaction with technology-based service encounters. Given that
business-to-business transactions are the fastest growing segment of technology-driven
services (Hof, 1999); Meuter and his colleagues (2000) suggested investigating what
drives business customer satisfaction or dissatisfaction with technologydriven services.
According to Gönroos (1982), customers distinguish the quality of customer interactions
that take place during service delivery (functional quality) and the quality of the outcome
the customer receives in the service encounter (technical quality).
age own a internet don’t have internet18-25 27 326-35 51 136-45 20 246-60 8 461-+ 1 3
Table 1
Figure1From the above interpretation we can say that age group between 18-25 own a internet of 27%while % who don’t own an internet is 3%, similarly % between 26-35 own an internet of 51% while 1 %don’t own internet, 36-45 own an internet of 20% while 2%don’t own, 46-60 own 8%internet while 4% don’t own, 61and above own 1 %internet, 3%don’t own. Finally we can see that age group 26-35 own maximum % of internet.
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Q2) The time you are using internetA) less then a monthB) 1 to 6 monthsC) 6 to 12 monthsD) More than a year
age A) less then a month A) 1 to 6 months A) 6 to 12 months18-25 3 2 1226-35 0 0 1536-45 0 3 046-60 0 2 861-+ 1 3 0
Table 2
Figure2From the above interpretation we can say that all the younger have been using internet since last one year but age group between 36-45, 46-60and 61 and above have started using internet in recent . finally we can the age group between 26-35 are the maximum users of the internet .
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Q3) Frequency of visiting your bank branch per month?a) Less than 1b) 1 to 3 timesc) 3 to 8 timesd) 8 to 12 timese) over 12 times
Figure3From the above inerpretation we can say that in comparison to all the above age groups maximum no. of time that is being visited to the bank is of age group between 26-35 that’s is around 12 times in a month .
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Q4) the main reason that you typically visit your bank branch (please choose the single most important reason)?
to make a deposit to get advice for investment options to inquire about a balance to withdraw cash other
Figure4From the above interpretation we can say that the reason for visiting bank maximum no. of time is basically is for the cash withdrawl that to is done by the agr group between 26-35 that is of 17.
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Q5) the e-banking facilities provided by your bank?
Figure5From the above itnerpretation we can say that all the above age gropus says that the mostly all the facilites is provided by their banks wheteher it be atm
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online, telephone , mobile expcept to the person who belong to the age group of 61 and above .
Q6) what banking services do you use which your Internet bank offers? (Please check all you are currently using)
Seeking product and rate information Calculate loan payment information
Download loan applications
Download personal bank transaction activity.
Check balances on-line
Apply for consumer loans or credit cards online
Inter-account transfers
On-line bill payments
Others
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Figure6From the above interpreatation we can that the perosn use internet bank offers basically for seeking product and rate information and seconly for checking balance and then they use for to download loan information ,then to dowmload personal bank transaction activities .
Q7) what was the single most important reason that you chose this particular bank as your Internet bank? (Please choose one)
I have a traditional bank account with the same bank The brand name of the bank The excellent service offered by this bank Others
Figure7From the above interpretation we can say that the reason for choosing particular bank for internet bank account is beacause of the excellent services offered by the bank and second most improtant reason is that of brand name of the bank .
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MDSAfter filling up the 63 column and 120 rows of SPSS data we get the table of responses of
120 respondents’ perception about our 6 brands and their 9 attributes. We calculate the
weighted mean of every column and finally we get the 6*10 matrix form of our
weighted mean MDS data, which would be input to SPSS for final MDS output. The
As we can detuch bank is leading in both d dimensions where as there is a competition between HSBC Citibank and hdfc. But the least is among the yesbank. Icici bank is close to positive response but here we can see that there is some areas where the bank has to work on to improve.
For your choice of an Internet bank, please indicate how much each of the following factors (were) are important for you:MEAN OF ALL RANKS
BY THIS WE CAME TO KNOW THAT PEOPLE USING INTERNET BECAUSE OF CONVINENCE ARE MOE AND LESS BECAUSE O SHOPPING.The main reasons that you have not opened an Internet bank account yet? (Check all that apply)
This survey is designed to understand bank account holders perspectives on Internet banking, their experience with Internet banking, and their expectations on Internet banking services
QUESTIONNAIRE
Name …………………………………………………………………..Age 18-25__ , 26-35__, 36-45__, 46-60__, 60 +____ Gender - MALE FEMALEOccupation …………………………………………………………….
2) Do you own a internet?
a) Yes b) No
3) The time you are using internetA) less then a monthB) 1 to 6 monthsC) 6 to 12 monthsD) More than a year
3) Frequency of visiting your bank branch per month?
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a) Less than 1b) 1 to 3 timesc) 3 to 8 timesd) 8 to 12 timese) over 12 times
4) The main reason that you typically visit your bank branch (please choose the single most important reason)?
to make a deposit to get advice for investment options to inquire about a balance to withdraw cash other
5) The e-banking facilities provided by your bank?
ATM
Online banking
Telephone banking
Mobile banking
SMS banking
6) The e-banking services you use provided by the bank?
ATM
Online banking
Telephone banking
Mobile banking
SMS banking
~~~For those who uses internet banking service~~~
What is the name of bank you have an Internet bank account with? ________
What are the most important reasons you opened an Internet bank account? (Please prioritize the following list in the order of importance.