A

PROJECT REPORT

ON


IMPACT OF E-BANKING SERVICES PROVIDED BY UNITED BANK
OF INDIA ON ITS CUSTOMERS


SUBMITTED TO
SAVITRIBAI PHULE PUNE UNIVERSITY


IN PARTIAL FULFILLMENT OF 2 YEARS FULL TIME COURSE MASTERS OF
BUSINESS ADMINISTRATION (MBA)


SUBMITTED BY

SOHINEE DEY
(BATCH 2013-2015)


UNDER THE GUIDANCE OF
PROF. VIDYUT DESHPANDE


SINHGAD BUSINESS SCHOOL, PUNE - 411 004



ACKNOWLEDGEMENT


There is always a sense of gratitude which one express for others for their help and
supervision in achieving the goals. I too express my deep gratitude to each and every one
who has been helpful to me in completing the project report successfully.

I would like to express my sincere gratitude to the Director of Sinhgad Business
School Dr. Chetan Chaudhari, who granted me with the opportunity to carry out my Summer
Internship Project.

I would also like to express my thanks and gratitude to my internal guide
Prof. Vidyut Deshpande for her valuable suggestions, helping in every inch to undertake this
project.

My special thanks to my Project Mentor Mr. Srijan Kumar Kundu (Senior Manager,
IT Dept.) for his invaluable guidance, directions and Intent supervision at every step of this
project.

Last but not the least, my endeavor in compiling this project would be uncrowned if I
do not express my heartiest thanks to Mr. Ashwini Kumar Jha (Asst. General Manager,
HRD), Mr. Rathin De (General Manager, IT Dept.), Mr. Gauri Prasad Sharma (Deputy
General Manager, IT Dept.) and Mr. Manish Agarwal (Asst. General Manager, IT Dept.) for
taking me as a trainee in IT department and the complete staff of IT department for their
support and guidance throughout the project.

I am indebted to my parents and friends and to those who may have contributed
directly or indirectly during the course of the project.


Sohinee Dey


Table of Contents
Sr. No. TOPIC Page No.
1 ABSTRACT 1
2 INTRODUCTION 3
2.1 What is E-Banking? 3
2.2 Evolution of E-Banking 3
2.3 Channels of E-Banking 4
2.4 Advantages of E-Banking 4
2.5 Disadvantages of E-Banking 5
3 OBJECTIVES AND SCOPE 6
3.1 Objectives 6
3.2 Scope 7
4 INDUSTRY PROFILE 8
4.1 What is Banking? 8
4.2 History 8
4.3 Structure of banking sector in India 10
4.4 Functions of a Bank 10
5 ORGANIZATION PROFILE 11
5.1 Vision Statement 12
5.2 Logo of the company with slogan 12
5.3 Board of Directors 12
5.4 Areas of operation 13
5.5 E-Banking products and services profile Competitors information 13
5.6 Competitors Information 17
5.7 Number of branches and offices of UBI 17
5.8 History 17
5.9 Awards and recognitions 17
5.10 STP 18
5.11 SWOT Analysis 18
6 THEORETICAL BACKGROUND 19
6.1 Project Information 19
6.2 Application of IT in the study 20
7 OUTLINE OF THE PROBLEM OR TASK UNDERTAKEN 21
















8 RESEARCH METHODOLOGY 23
8.1 What is a research methodology? 23
8.2 Objectives of research 24
8.3 Type of research 24
8.4 Research design 24
8.5 Methods of data collection 25
8.6 Sources of data 25
8.7 Study population 26
8.8 Sampling Size 26
8.9 Sampling method 27
8.10 Data Processing Analysis and presentation 27
9 DATA ANALYSIS 28
10 LEARNING EXPERIENCE 48
11 LIMITATIONS OF THE STUDY 50
12 CONCLUSION 51
13 CONTRIBUTION TO THE ORGANIZATION 52
13.1 Technology and security standards 52
13.2 Legal standards 53
13.3 Regulatory and supervisory issues 54
14 BIBLIOGRAPHY 55
15 ABBREVIATIONS 56
16 ANNEXURE 57
LIST OF TABLES

Table No. Table Heading Page No.
1 Number of banks failed to establish between 1913-1918 8
2 Board of Directors 12
3 Services available for Mobile Banking 16
4 Services available for Card System 16
5 STP 18
6 SWOT Analysis 18
7 Respondents having UBI E-Banking account 28
8 Gender of the respondents 29
9 Age group of the respondents using UBI E-Banking 30
10 Profession of the respondents using UBI E-Banking services 31
11 Awareness of people regarding e-banking services provided by UBI
while opening an account
32
12 Sources of awareness about E-Banking 33
13 Respondents feel using the Internet for shopping and banking would
make life easier
34
14 Reasons for choosing UBI E-Banking Services 35
15 E-Banking channels customers think are more user-friendly 36
16 Frequency of respondents using UBI E-Banking services 37
17 UBI E-Banking products and services regularly used by respondents 38
18 Customers who make purchases through E-Banking 39
19 Respondents who used UBI E-Banking services in the last 12 months 40
20 Benefits accrued from E-Banking services to its users 41
21 Problems identified by the users of UBI E-Banking service 42
22 Importance of Privacy Maintenance while using E-Banking services 43
23 Importance for maintaining Security of Transactions 44
24 Respondents still visiting the bank after having started using UBI E-
Banking
45
25 Reasons to visit your Bank branch 46
26 Respondents overall satisfied with UBI E-Banking 47
1

1. ABSTRACT

With the rapid globalization of the Indian economy, enterprises are facing with ever changing
competitive environment. Enterprises are adopting strategies aimed at developing competitive
advantage based on enhanced customer value in terms of product differentiation, quality,
speed, service and costs. Over the last decade India has been one of the fastest adopters of
information technology, particularly because of its capability to provide software solution to
organizations around the world. This capability has provided a tremendous impetuous to the
domestic banking industry in India to deploy the latest in technology, particularly in the
Internet banking and e-commerce arenas. Electronic banking or E-Banking is the use of
electronic means to transfer funds directly from one account to another, rather than by check
or cash. Through reducing bank costs, electronic banking can increase bank incomes.
Technology is playing a major role in increasing the efficiency, courtesy and speed of
customer service. It is said to be the age of E-banking.

Despite rapid advances in all facets of technology, organizations still struggle with the
formidable task of developing software applications that meet quality standards. When
judging the quality of the provided E-banking services, customers consider a lot of factors
which influence their judgment. For some customers the response and efficiency of the
service providers would be of greatest importance, for others the security and privacy issues
might be more important, and still for others what matters most may be the website design
and ease of use. In reality, customers have different expectations and requirements. They
deem different aspects of the service delivery process for essential in order for them to be
satisfied with the service. This empirical research study mainly focuses on the major factors
that influences online customers satisfaction with the overall service quality of the bank.
Interviewing and surveying, along with review of the current system ensures a better
understanding of the situation before introducing any improvements. With the survey and
interview results in this research project, I, being a part of the systems analysis team, figured
out exactly what requirements are essential to the end-users. By performing in-depth
requirements gathering, I was able to provide the design team with a solid requirements
document. This will in turn save time for the design and implementation phases of the
systems development life cycle (SDLC) of Management Information Systems (MIS).

2

Purpose- The purpose of this study is to explore the E-Banking functionality provided by
United Bank of India and investigate the impact of E-Banking on customer satisfaction.

Design/Methodology/Approach- The research design is a combination of both quantitative
and qualitative research. Samples of hundred respondents (100) were collected comprising of
thirty (30) bank staffs and seventy (70) clients of the bank through questionnaire and
interviews which was edited, coded tabulated and analyzed through the application of
statistical techniques, such as bar graphs and pie charts for completeness and accuracy to
determine the effect of electronic banking on customer satisfaction.

Findings- This research study showed that the factors related to adoption of E-Banking
services like accessibility, convenience, usability, content, cost and performance had a
positive effect on United Bank of Indias customers satisfaction and loyalty but they are a
little more concerned about the privacy and security issues related to these services.

The study contributes adding knowledge regarding what constitutes E-Banking services.
























3

2. INTRODUCTION

2.1. What is E-Banking?
E-Banking is a combination of two, Electronic technology and Banking. Electronic Banking
is a process by which a customer performs banking Transactions electronically without
visiting a brick-and-mortar institutions. E-Banking denotes the provision of banking and
related service through extensive use of information technology without direct recourse to the
bank by the customer.

2.2. Evolution of E-Banking
The story of technology in banking started with the use of punched card machines like
Accounting Machines or Ledger Posting Machines. The use of technology, at that time, was
limited to keeping books of the bank. It further developed with the birth of online real time
system and vast improvement in telecommunications during late 1970s and 1980s. It
resulted in a revolution in the field of banking with convenience banking as a buzzword.
Through Convenience banking, the bank is carried to the doorstep of the customer.









Intense competition has forced banks to rethink the way they operated their business. They
had to reinvent and improve their products and services to make them more beneficial and
cost effective. Technology in the form of E-banking has made it possible to find alternate
banking practices at lower costs.

Traditional Banking
Gunpowder
Personalized services,
time consuming, limited
access
Virtual or E-Banking
Nuclear Charged
Real time transactions,
integrated platform, all
time access
4

2.3. Channels of E-Banking:
2.3.1. Mobile Banking
Mobile banking comes in as a part of the banks initiative to offer multiple channel banking
providing convenience for its customer. A versatile multifunctional, free service that is
accessible and viewable on the monitor of mobile phone.
2.3.2. Internet Banking
The advent of the Internet and the popularity of personal computers presented both an
opportunity and a challenge for the banking industry. Now the banks customers are
connected to the Internet via personal computers and can avail their services at all times of
the day.
2.3.3. Automated Teller Machines (ATM):
An automated teller machine or automatic teller machine (ATM) is a computerized
telecommunications device that provides a financial institution's customers a method of
financial transactions in a public space without the need for a human clerk or bank teller by
inserting a plastic ATM card.
2.3.4. Card System
Credit/Debit cards: Debit and Credit cards operate like cash or a personal cheque. Debit cards
are different from credit cards. While a credit card is a way to "pay later," a debit card is a
way to "pay now." When you use a debit card, your money is quickly deducted from your
checking or savings account.

2.4. Advantages of E-Banking
Convenience- Unlike your corner bank, online banking sites never close; theyre
available 24 hours a day, seven days a week, and theyre only a mouse click away.
Ubiquity- If youre out of state or even out of the country when a money problem arises,
you can log on instantly to your online bank and take care of business, 24\7.
Transaction speed- Online bank sites generally execute and confirm transactions at or
5

quicker than ATM processing speeds.
Efficiency-You can access and manage all of your bank accounts, including IRAs, even
securities, from one secure site.
Effectiveness- Many online banking sites now offer sophisticated tools, including
account aggregation, stock quotes, rate alert and portfolio managing program to help you
manage all of your assets more effectively

2.5. Disadvantages of E-Banking
Learning curves- Banking sites can be difficult to navigate at first. Plan to invest some
time and\or read the tutorials in order to become comfortable in your virtual lobby.
Security issues- The phenomenon financial identity theft exists for decades, possibly
since the introduction of identities itself, by means of phishing, pharming, social
engineering and malware. It causes a serious concern as many customers have faces
such issues in their pasts. Types of customer targeted online banking fraud are:
Phishing: Phishing is referred to as the attempt to acquire personal information in
order to abuse this information for identity theft. Criminals are trying to obtain the
customers personal data such as usernames, passwords, pin codes, debit cards and
other private information. A well-known form of phishing is the distribution of
fake e-mails.
Pharming: Pharming is yet another way hackers attempt to manipulate users on
the Internet. While phishing attempts to capture personal information by getting
users to visit a fake website, pharming redirects users to false websites.
Social engineering: Social engineering is a method in which the criminal uses
human interaction in order to obtain personal information. A well-known way of
social engineering is a criminal who pretends to be an employee of a Financial
Service Provider.
Malware: Malware refers to a software program designed to damage or do
unwanted actions on a computer system. Examples of malware include viruses,
Trojan horses, and spyware. Malware can gather data from a user's system without
the users knowledge. This can include anything from the Web pages a user visits
to personal information, such as passwords.
6

3. OBJECTIVES AND SCOPE


Title of the project:
Impact of E-Banking services provided by United Bank of India on its customers

3.1. OBJECTIVES

3.1.1. Primary Objectives:

To explore the functionalities of the various E-banking services provided by United
Bank of India (UBI).
To investigate and analyze the impact of UBI E-Banking services on its customers.


To provide the UBI E-Banking software design team with a solid customers
requirements document for introducing improvements in the system.


Strengthening the bond between the banks and their customers by providing
suggestions for improving the E-Banking system of UBI, thereby helping them to
retain and/or expand their overall customer base.

3.1.2. Secondary Objectives:

To gain proper knowledge about the UBI E-Banking services to make personal use.

To educate the E-Banking customers on how to use the UBI E- Banking services and
various protection measures that is to be taken to avoid online fraud.

To find out the relationship between electronic banking and customer satisfaction at
UBI Headoffice.


7


3.2. SCOPE:

3.2.1. Geographical scope

The study was limited to the Head office of UBI in Kolkata. This was due to limited time and
resources which could not allow me to carry out the research in the other branches of UBI for
the full information regarding the research study. Conducting the research in the Head office
of UBI with quite a good number of clients enabled me to get better outcomes of the research.


3.2.2. Time scope

The study covered a period of two months, that is, from the beginning of June 2014 to the end
of July 2014.


3.2.3. Scope of the study

The study includes the various services provided by UBI.
It investigates about all applications of online banking in UBI.
It helps the UBI E-Banking systems design team to have a solid requirement
documentation which will in turn save time for the design and implementation phases
of the systems development life cycle (SDLC).
Hence the study will lead to new ways to tackle the problems and the SWOT of UBI
in respect of E- Banking.







8

4. INDUSTRY PROFILE

4.1. Definition:
As per Banking Regulation Act 1949 Section 5(b)
"Banking means, accepting for the purpose of lending or investment, of deposits of money
from the public, repayable on demand or otherwise, and withdrawal by cheque, draft, or
otherwise."
4.2. History:
Banking in India, in the modern sense, originated in the last decades of the 18th
century. The first banks were The General Bank of India, which started in 1786, and Bank of
Hindustan, which started in 1770; both are now defunct. The oldest bank still in existence in
India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which
almost immediately became the Bank of Bengal.
The years of the First World War were turbulent, and it took its toll with banks simply
collapsing despite the Indian economy gaining indirect boost due to war-related economic
activities. At least 94 banks in India failed between 1913 and 1918 as indicated in the
following table:

Table: 1
Years
Number of banks
that failed
Authorised capital
(Rs. Lakhs)
Paid-up Capital
(Rs. Lakhs)
1913 12 274 35
1914 42 710 109
1915 11 56 5
1916 13 231 4
1917 9 76 25
1918 7 209 1

9

Post-Independence:
The Reserve Bank of India, India's central banking authority, was nationalized on January 1,
1949. In 1949, the Banking Regulation Act was enacted which empowered the Reserve Bank
of India (RBI) "to regulate, control, and inspect the banks in India".

Nationalization in the 1960s:



Banks Nationalization in India: Newspaper Clipping, Times of India, July 20, 1969


Liberalization in the 1990s:

In the early 1990s, the then Narasimha Rao government embarked on a policy
of liberalization, licensing a small number of private banks. These came to be known as New
Generation tech-savvy banks, and included Global Trust Bank (the first of such new
generation banks to be set up), which later amalgamated with Oriental Bank of
Commerce, UTI Bank (since renamed Axis Bank),ICICI Bank and HDFC Bank. This move,
along with the rapid growth in the economy of India, revitalized the banking sector in India,
which has seen rapid growth with strong contribution from all the three sectors of banks,
namely, government banks, private banks and foreign banks.

10

4.3. Structure of banking sector in India:













4.4. Functions of a bank:















Drafts
Lockers
Underwriting
Project Reports
Social Welfare Programmes
Other Utility Functions
Saving Deposits
Fixed Deposits
Current Deposits
Recurring Deposits
Overdraft
Cash Credit
Loans
Discounting of
Bills
Transfer of Funds
Periodic Payments
Collection of Cheques
Portfolio Management
Periodic Collections
Other Agency Functions
Functions
of Bank
Primary
Functions
Secondary
Functions
Accepting
Deposits
Granting
Advances
Agency
Functions
Utility
Functions
Ministry of Finance
RBI
Scheduled Banks
Cooperative Banks
Commercial Banks
State
Cooperative
Urban
Cooperative
Regional
Rural
Banks
Foreign
Banks
Private
sector
Banks
Public
sector
Banks
11


5. ORGANIZATION PROFILE


Name: United Bank of India
Type: Public
Industry: Banking and Financial Services
Founded: 1950
Headquarters: United Tower
11, Hemanta Basu Sarani
Kolkata- 700001
West Bengal, India
Products:
Deposit Scheme
Credit Scheme
NRI Services
United Mobile Services
Foreign Exchange
Insurance Policies
RTGS
E-Payment
Nomination Facility
Lockers
Credit Cards
ATM Cum Debit Cards
Tax- Collection
Remittance Service in with
Western Union Money Transfer
Third Party Banking Products:
Mutual Funds
Life Insurance in tie up with
Tata AIG Life Insurance
Company
Credit Card in tie-up with SBI
Cards
Foreign Remittance Services in
tie-up with Western Union
Demat Depository Services in
association with Cent

Website: www.unitedbankofindia.com

E-Banking website: https://ebank.unitedbankofindia.com
12



5.1. Vision Statement

Their Vision is to emerge as a dynamic, techno savvy, customer-centric, progressive and
financially sound premier bank of our country with pan-India presence, Sharply focused on
business growth and profitability with due emphasis on risk management in an environment
of professionalism, Trust and transparency, observing highest standards of corporate
governance and corporate social responsibilities meeting the expectations of all its stake
holders as well as the aspirations of its employees.

5.2. Logo of the company:


5.3. Board of Directors (Table: 2)
Mr. Deepak Narang Executive Director
Mr. Sanjay Arya Executive Director
Mr. Mihir Kumar Government Nominee Director
Mrs. Parvathy V. SundaramRBI Nominee Director
Mr. Pratyush Sinha Shareholder Director
Mr. Sanjib Pati Workmen Employee Director
Mr. Sunil Goyal Part-time Non-official Director under CA
Catagory
Mr. Kiranbhai B. Vadodaria Part-time Non-official Director
Mr. Pijush Kanti Ghosh Officer Employee Director
Mrs. Renuka Muttoo Non official Director

13


5.4. Areas of operation

5.4.1. Retail Banking Services:
The objective of the Retail Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one stop window for all
his/her banking requirements. The products are backed by world-class service and delivered
to the customers through the growing branch network, as well as through alternative delivery
channels like ATMs, Net Banking and Mobile Banking.

5.4.2. Corporate Banking Services:
The Bank's target market is primarily large, blue chip manufacturing companies in the Indian
corporate sector and to a lesser extent, emerging midsized corporates. For these corporate, the
Bank provides a wide range of commercial and transactional banking services. The Bank
provides commercial banking products and services to corporate customers, including mid-
sized and small businesses and government entities.
5.4.3. Treasury Operations:
With the liberalization of the financial markets in India, corporate need more sophisticated
risk management information, advice and product structures, These and fine pricing on
various treasury products are provided through the bank's Treasury team. The Treasury
business is responsible for managing the returns and market risk on this investment portfolio.
5.5. E-Banking products and services profile:
5.5.1. Internet Banking
Login Access to single user/ multiple users
My Account Account view / Statement
Fund Transfers Transferring of funds
Tax Payments Direct and indirect tax payments
Bill Payments Utility Bill Payment
Profile and Password Update user profile and change passwords
Alerts Alert service for all the transactions
Emails For assistance/query related issues
14


Login: Enables one to access the account 24 hours a day, 7 days a week. It allows access to
both single users and multiple users by using their respective user Ids and passwords.

My Accounts: The option gives the summary of the operative type, term deposit type and
also Loan type of accounts of a user. It also gives individual details of such accounts with
balances.

Fund Transfers: Under this option the user gets the facility to transfer funds between
different accounts. The options available to him are as under
Transfer of Funds between self accounts.
Transfer of funds from self account to any third party account within any branch of
bank
Inter Bank fund transfer (NEFT / RTGS)
Tax Payments: Online UBI provides the facility to pay direct taxes online. As a tax payer,
you need to have a bank account enabled for net banking facility with transaction rights in
anyone of UBI branches. Any United Online user may pay the following taxes online
Direct Tax (CBDT)
Indirect Tax
W.B Commercial Tax
User may generate duplicate receipts of the taxes paid using this service.

Bill Payments: Many categories of Billers are available for payment using United Online.
For e.g. Credit Card, Insurance etc.
United QuickPay - A simple and convenient service for receiving and paying your bills
online
Features :
View and Pay bills anytime, anywhere
Fast convenient and hassle free
Access to all major utility billers

Profile and Passwords: This option enables the user to customise the internet banking
options as under:
15

Changing of passwords - Login ,transaction or SMS passwords
Changing of own profile by nicknaming accounts
Changing of date format viz. dd/mm/yy to mm/dd/yyyy and like.
Changing of amount format from lacs to millions.
Changing address, phone no, primary accounts etc.

Alerts: User may subscribe to the following SMS alerts online for his accounts
Account Debit/Credit Alerts : Operative Accounts
End of the day balance Operative Accounts
Login Password Expiry No of Days
Salary Credited Operative Accounts
Stop Cheque Operative Accounts
Transaction Password Expiry No of Days

Emails: Every user of United Online service is linked to a Relationship Manager who looks
into the mails and requests made by the user. For this purpose the user is provided with a mail
option, which he can use for communicating with the Relationship Manager.
5.5.2. Mobile Banking

5.5.2.1. Mobile Banking Service over Application/ Wireless Application Protocol (WAP)
The service is available on java enabled /Android mobile phones (with or without GPRS)
where the user is required to download the application on to the mobile handset. The service
can also be availed via WAP on all phones (java/non java) with GPRS connection.

5.5.2.2. Mobile Banking Service over SMS:

The service is available on all phones. Ordinary SMS charges are applicable. In this mode
the Customer sends plain text SMS in predefined format to the mobile banking system on the
mobile number 9223173933 over an unencrypted channel to perform the transactions.


16


The services available for Mobile Banking are: (Table: 3)
Services/Mobile banking techniques Over WAP Over SMS
Balance enquiry Yes Yes
Mini statement Yes Yes
Funds transfer (within outside the bank) Yes Yes
Mobile to mobile Yes Yes
Mobile to account Yes Yes
Stop cheque request Yes Yes
Check cheque status Yes Yes
ATM locator (by pin code/location) Yes Yes
Branch locator (by pin code/location) Yes Yes
Mobile recharge and recharge status enquiry Yes Yes
Other services (update profile, chande password,
enable/disable transactions, change mPIN, etc)
Yes No
Refer a friend No Yes

5.5.3 Services available for Card System: (Table: 4)
Services/Cards EMV Visa Debit
Card
Visa Debit Card RuPay Debit
Card
RuPay Kissan
Credit Card
Cash withdrawal Daily Limit- Rs
50000/-
Daily Limit- Rs
25000/-
Daily Limit- Rs
25000/-
Daily Limit- Rs
25000/-
Swiping at Point
of Sale or POS
Daily Limit- Rs
50000/-
Daily Limit- Rs
25000/-
Daily Limit- Rs
25000/-
Daily Limit- Rs
25000/-
Mini Statement Yes Yes Yes Yes
Balance Enquiry Yes Yes Yes Yes
Pin Change Yes Yes Yes Yes

5.5.4. ATM Services:
State Bank offers you the convenience of over 2500 ATMs in India and continuing to expand
faster. This means that you can transact free of cost at the ATMs of United Bank Group.
Customers can also transact offsite through other banks using the Visa ATM cum Debit Card.
17


5.6. Competitors information:
Some of the major competitors for UBI in the banking are :
IDBI bank
Indian Overseas Bank
Bank of Maharashtra
Central Bank of India
5.7. Number of branches and offices: UBI has 2000 branches and offices and is having
a Total business of more than Rs 2 lac crore. Presently the Bank is having a Three-tier
organisational set-up consisting of the Head Office, 35 Regional Offices and the Branches.
5.8. History:
United Bank of India is one of the 14 banks which were nationalised on July 19, 1969. On
October 12, 1950, the name of Bengal Central Bank Limited (established in 1918 as Bengal
Central Loan Company Limited) was changed to United Bank of India Limited for the
purpose of amalgamation and on December 18, 1950, Comilla Banking Corporation Limited
(established in 1914), the Camilla Union Bank Limited (established in 1922), the Hooghly
Bank (established 1932) stood amalgamated with the Bank. Subsequently, other banks
namely, Cuttack Bank Limited, Tezpur Industrial Bank Limited, Hindusthan Mercantile
Limited and Narang Bank of India Limited were merged with the Bank.
5.9. Awards and recognitions:
National Award for the second best performance in financing small scale units by
Ministry of Small Scale Industries, Government of India in the year 2006.
Golden jubilee Award for the best bank in north east zone for excellence in the field
of khadi and village industries from the Ministry of MSME, Government of India in
the year 2007.
National Award for the best bank for excellence in the field of khadi and village
industries for east and north east zones from the Ministry of MSME, Government of
India in the year 2008.
National Award under Prime Minister Employment Guarantee Programme in north
east zone from the Ministry of MSME, Government of India in the year 2009.
18

5.10. STP: (Table: 4)
Segment Individual and Industry banking
Target group Semi-Urban Sector
Positioning Complete Banking solutions

5.11. SWOT Analysis: (Table: 5)
Strength 1. Financial products for rural segment
2. Deep reach across country with schemes like financial
inclusion
3. Strong operations with 1600 networked branches
4. 31 Regional offices spread all over India
5. Acquisition of Hindusthan Mercantile Bank(1973), UBI
acquired Narang Bank of India (1973)
Weakness 1. Lack of proper technology driven services when compared to
private banks
2. Employees show reluctance to solve issues quickly due to
higher job security and customers waiting period is long when
compared to private banks
3. Very Low International presence
4. Advertising is less thus weak brand recognition as compared
to major players
5. The public sometimes confuses the two banks Union Bank of
India and United Bank of India (both UBI)
Opportunity 1. Small enterprise banking
2. Improved Urban retail banking
3. Young and talented pool of graduates and B schools are in
rise to open new horizon to so called old government bank
Threat 1. Small enterprise banking
2. Improved Urban retail banking


19

6. THEORETICAL BACKGROUND


6.1. Project Information

Electronic banking or E-Banking is the use of electronic means to transfer funds directly from
one account to another, rather than by check or cash. Through reducing bank costs, electronic
banking can increase bank incomes. Banks are growing in size by mergers and acquisitions,
which have been driven by communication and technology. Technology is playing a major
role in increasing the efficiency, courtesy and speed of customer service. It is said to be the
age of E-banking.

Electronic Delivery Channels
Internet Banking
Mobile Banking
Automated Teller Machine (ATM)
Debit/Credit Cards

Despite rapid advances in all facets of technology, organizations still struggle with the
formidable task of developing software applications that meet quality standards. When
judging the quality of the provided E-banking services, customers consider a lot of factors
which influence their judgment. For some customers the response and efficiency of the
service providers would be of greatest importance, for others the security and privacy issues
might be more important, and still for others what matters most may be the website design
and ease of use. In reality, customers have different expectations and requirements. They
deem different aspects of the service delivery process for essential in order for them to be
satisfied with the service. In addition to the above, it is identified that there is limited
information available either on actual adoption or usage rates for UBIs Internet banking
services and this might be due to limited number of studies carried out in this field. There was
almost no study conducted to understand what users and non-users perceive about Internet
banking services provided by UBI. This study proposes to identify factors that influence
adoption and use of e-banking / Internet banking services in UBI. It is being attempted by
collecting data in forms questionnaires and interviews from 100 respondents who are
currently using UBI E-Banking services.
20

6.2. Application of IT in the study



Figure: Systems Development Life Cycle (SDLC)
This study is based on the preliminary investigation and systems analysis which constitutes of
the first and second phase of SDLC in which system requirements are studied and structured.
Requirements must drive design and development decisions throughout the product
development life cycle. A proper understanding of the UBI E-Banking services and data
gatherings on customer requirements through surveys and interviews has defined the current
E-Banking system, including the location of problems/opportunities and an explanation of
how to fix/enhance/replace the system.
Interviewing and surveying, along with review of the current system ensures a better
understanding of the situation before introducing any improvements. With the survey and
interview results I was able find out exactly what requirements were essential to the end-
users. A misunderstanding early on can create a huge difference between what the client
wants and what gets created. By performing in-depth requirements gathering, I, being a part
of the systems analysis team, was able to provide the design team with a solid requirements
document. This in turn saved time for the design and implementation phases of SDLC.
PRELIMINARY
INVESTIGATION
SYSTEMS ANALYSIS
SYSTEMS DESIGN
SYSTEMS
DEVELOPMENT
SYSTEMS
IMPLEMENTATION
SYSTEMS
MAINTAINENCE
21

7. OUTLINE OF THE PROBLEM OR TASK UNDERTAKEN

Advantages previously held by large financial institutions have shrunk considerably. The
Internet has leveled the playing field and afforded open access to customers in the global
marketplace. Internet banking is a cost-effective delivery channel for financial institutions.
Consumers are embracing the many benefits of Internet banking. Access to one's accounts at
any time and from any location via the World Wide Web is a convenience unknown a short
time ago. This empirical research study mainly focuses on the major factors that influences
online customers satisfaction with the overall service quality of their bank.

United Bank of India is going for the retail banking in a big way. However, much is still to be
achieved. This study that has been conducted in this project show these facts:

About 75% of the respondents feel that E-Banking services are necessary for its
convenience, 24 hours accessibility and quick services.

8% respondents are still visiting Bank after having started using UBI E-Banking.
More number of customers visits Banks after having e-Banking because of they cant
do all the transactions those are physical and some of the information can be
discussed with Bank employees directly.

60% of the respondents face problems using UBI E-Banking services due to lack of
knowledge and insecurity.

More than 65% of the respondents have either not used UBI E-Banking services or
have used the services only once in a year.

65% of the respondents are not willing to use their cards online due to security
reasons.

81% respondents agree that new laws should be made to protect privacy on the
Internet.

22

59% of the users are satisfied with the E-Banking services provided by the Bank.

When judging the quality of the provided E-banking services, customers consider a lot of
factors which influence their judgment. For some customers the response and efficiency of
the service providers would be of greatest importance, for others the security and privacy
issues might be more important, and still for others what matters most may be the website
design and ease of use. In reality, customers have different expectations and requirements.
They deem different aspects of the service delivery process for essential in order for them to
be satisfied with the service.
This study is based on the preliminary investigation and systems analysis of UBI E-Banking
services which constitutes of the first and second phase of SDLC of MIS, in which system
requirements are studied and structured. A proper understanding of the UBI E-Banking
services and data gatherings on customer requirements through surveys and interviews has
defined the current E-Banking system, including the location of problems/opportunities and
an explanation of how to fix/enhance/replace the system.
















23

8. RESEARCH METHODOLOGY


8.1. What is a research methodology?

Research is defined as human activity based on intellectual application in the investigation of
matter. The primary purpose for applied research is discovering, interpreting, and the
development of methods and systems for the advancement of human knowledge on a wide
variety of scientific matters of our world and the universe.
In every research area or subject, our knowledge is incomplete and problems are waiting to
be solved. We address the void in our knowledge and those unresolved problems by asking
relevant questions and seeking answers to them. The role of research is to provide a method
for obtaining those answers by inquiringly studying the evidence within the parameters of the
scientific method.

Methodology is the method followed while conducting the study on a particular project.
Through this methodology a systematic study is conducted on the basis of which the basis of
a report is produced.

It is a written game plan for conducting Research. Research methodology has many
dimensions. It includes not only the research methods but also considers the logic behind the
methods used in the context of the study and explains why only a particular method or
technique has been used. It also helps to understand the assumptions underlying various
techniques and by which they can decide that certain techniques will be applicable to certain
problems and other will not. Therefore in order to solve a research problem, it is necessary to
design a research methodology for the problem as the some may differ from problem to
problem.






24

8.2. Objectives of research:

To identity the level of security among customers in using these services.
To educate the customers about important measures the customer has to take to avoid
online fraud.
To understand the problems encountered by the users while using E-Banking channels
(ATM, Internet banking, etc.)
To examine the most and the least important factor that influences the consumers
demand towards internet banking system.
To study the awareness level of customers regarding E-Banking.
To find out the frequency and the factors that influences the adoption of E-Banking
services.
To measure the satisfaction level of people.

8.3. Type of research:

This study is both of QUANTITATIVE and QUALITATIVE in nature. It helps in breaking
vague problem into smaller and precise problem and emphasizes on focussing into these
areas and reach necessary conclusions.


8.4. Research design

Research design constitutes the blue print for the collection, measurement and analysis of
data. The present study seeks to identify the various E-Banking services provided by UBI
Head Office to its customers and to what extent they have proven to be helpful. The research
design is a combination of both quantitative and qualitative research. The research has been
conducted on service class people within Kolkata. For the selection of the sample, convenient
sampling method was adopted and an attempt has been made to include all the age groups
and gender within the service class.



25

8.5. Methods of data collection:

8.5.1. Questionnaire

Questionnaires had both open and close-ended questions which required specific answers.
The respondents selected the correct options, ticked and wrote the correct answers where
appropriate, for those who could read and write. For those who were unable to read and write,
interviews were conducted using the questionnaires.

8.5.2. Interviews

Interviews were determined beforehand while others arose during the course of the
conversation. The interviews were also done on individual-oriented basis to allow expression
of personal viewpoints. The researcher used face to face interviews because of the following
reasons; Provision of first-hand information, Rich data collection, Cost effective, speedy and
Ability to clarify the questions, clear doubts and adds new questions where necessary.

8.6. Sources of data:

What is Primary data?

Data used in research originally obtained through the direct efforts of the researcher through
surveys, interviews and direct observation. Primary data is data that has not been previously
published, i.e. the data is derived from a new or original research study and collected at the
source. It is more current and more relevant to the research project.

8.6.1. Sources of Primary data:

Questionnaire was used to collect primary data from respondents. The questionnaire was
structured type and contained questions relating to different dimensions of e-banking
preferences among service class such as level of usage, factors influencing the usage of e-
banking services, benefits accruing to the users of e-banking services, problems encountered.
The questions included in the questionnaire were open-ended, dichotomous and offering
multiple choices. Interviews were were also done on individual-oriented basis to allow
26

expression of personal viewpoints.

What is Secondary data?

Secondary data is information that has already been collected for a purpose other than the
current research project but has some relevance and utility for your research.
Secondary data can be classified into internal sources and external sources. Internal sources
include data that exists and is stored inside your organization. External data is data that is
collected by other people or organizations from your organization's external environment.

8.6.2. Sources of Secondary data:
Most of the data has been collected from Sr. Manager (IT) Mr. Srijan Kumar Kundu.
Through the official website of UBI- www.unitedbankofindia.com and various other
websites.
Collection of information from different kinds of books the data of company what
they maintained.


8.7. Study population

The study population comprised of all the employees and some clients of UBI Head Office-

8.8. Sampling Size

It indicates the numbers of people to be surveyed. The survey was carried out at UBI Head
Office. Though large samples give more reliable results than small samples but due to
constraint of time and money, the sample size was restricted to hundred respondents (100);
comprising of thirty (30) bank staff and seventy (70) clients of the bank who were
interviewed to determine the effect of electronic banking on customer satisfaction. The
respondents belong to different income group and profession.

27


8.9. Sampling method

The study involved the use of purposive sampling, whereby samples were selected from the
study population. Here the respondents were selected from the bank officials who serve
specific roles within electronic banking systems like database managers and bank managers.
This helped to ensure interviewing of relevant informants with first-hand information.


8.10. Data Processing Analysis and presentation

The data collected using the questionnaires and interview guides was edited, coded
tabulated and analysed through the application of statistical techniques, such as bar graphs
and pie charts for completeness and accuracy. Descriptive statistics such as tables were
used in the presentation of the data and the qualitative data collected required a descriptive
and content analysis.




















28

9. DATA INTERPRETATION

Statistics
Respondents having UBI E-Banking account.
Response valid
Response missing
100
0


Respondents having UBI E-Banking account. (Table: 7)
Frequency Percentage Cumulative Percentage
YES 100 100.0 100.0



Respondents having UBI E-Banking account:
The percentage of E-Banking users is 100%.
Here I took customer information from Bank containing only of users of Internet
Banking and e-banking users.




100%
0%
Do you have an UBI E-Banking account?
YES
NO
29

Statistics
Gender of the respondents
Response valid
Response missing
100
0


Gender of the respondents (Table: 8)
Frequency Percentage Cumulative Percentage
Male
Female
67
33
100
67.0
33.0
100.0
67.0
100.0




Gender of the respondents:
67% of the respondents are male.
The rest 33% of the respondents are female.




0
10
20
30
40
50
60
70
Male Female
Gender of the respodents
30

Statistics
Age group of the respondents using UBI E-Banking



Age group of the respondents using UBI E-Banking (Table: 9)
Frequency Percentage Cumulative Percentage
15-30 years
31 to 40 years
41 to 50 years
Above 50 years
31
43
21
5
100
31.0
43.0
21.0
5.0
100.0
31.0
74.0
95.0
100.0



Age group of the respondents using UBI E-Banking:
31% of the E-Banking users age between 15 to 30 years.
43% of the E-Banking users are between 31 to 40 years of age.
21% of the users a between 41 to 50 years of age.
5% of the users using UBI E-Banking services are above 50 years of age.


0
5
10
15
20
25
30
35
40
45
15 to 30 years 31 to 40 years 41 to 50 years Above 50 years
Age group of the respondents using UBI E-Banking
Response valid
Response missing
100
0
31

Statistics
Profession of the respondents using UBI E-Banking services



Profession of the respondents using UBI E-Banking services (Table: 10)










Profession of the respondents using UBI E-Banking services:
63 per cent of the respondents are service men.
21 per cent are from business background.
3 per cent respondents are non-working.
13 per cent are students.


0
10
20
30
40
50
60
70
Service man Business Man Not working Student
Profession of the respondents using UBI E-Banking services
Response valid
Response missing
100
0
Frequency Percentage Cumulative Percentage
Service man
Business man
Not working
Student
63
21
3
13
100
63.0
21.0
3.0
13.0.
100.0
63.0
84.0
87.0
100.0
32

Statistics
Awareness of people regarding e-banking services provided by UBI while opening an
account.



Awareness of people regarding e-banking services provided by UBI while opening an
account (Table: 11)
Frequency Percentage Cumulative Percentage
Fully aware
Had an idea
No idea
37
46
17
100
37.0
46.0
17.0
100.0
37.0
83.0
100.0
.


Awareness of people regarding e-banking services provided by UBI while opening an
account:
37% of the respondents were fully aware about the various E-Banking services
provided by UBI.
46% of the respondents had some idea about the E-Banking services.
17% of the respondents did not have any idea about how these services work.
37%
46%
17%
Awareness of people regarding e-banking services provided by
UBI while opening an account
Fully aware
Had an idea
No idea
Valid
Missing
100
0
33

Statistics
Sources of awareness about E-Banking
Response valid
Response missing
100
0

Sources of awareness about E-Banking (Table: 12)
Frequency Percentage Cumulative Percentage
Friends
Family
Relatives
Bank officials
Advertisements
Total
39
7
16
20
18
100
39.0
7.0
16.0
20.0
18.0
100.0
39.0
46.0
62.0
82.0
100.0



Sources of awareness about E-Banking are:
39% respondents responded as friends
20% respondents responded as Bank officials
18% respondents chosen by advertisements.
0
5
10
15
20
25
30
35
40
Sources of awareness about E-Banking
34

As shown in figure more respondents came to know about E-Banking by friends.
From Family were very few because its an electronic Banking and only educated and
youngsters can able to do.

Statistics
Feel using the Internet for shopping and banking would make life easier.
Response valid
Response missing
100
0

Feel using the Internet for shopping and banking would make life easier. (Table: 13)
Frequency Percentage Cumulative Percentage
YES
NO
Total
73
27
100
73.0
27.0
100.0
73
100.0



Customers felt using E-Banking services for shopping and banking would make your
life easier:
73% respondents responsed e-banking servises would make their lives easier.
Remaining 27% respondents responsed that the services are not necessary.
The figure shows that most of the customers felt e-Banking a necessity in their life.
73%
27%
Do you feel using E-Banking services for shopping and banking
would make life easier?
YES
NO
35

Statistics
Reasons for choosing UBI E-Banking Services
Response valid
Response missing
130
0

Reasons for choosing UBI E-Banking Services (Table: 14)
Frequency Percentage Cumulative Percentage
Convenience
24 Hour Access to accounts
To Save Time
Others
Total
63
34
17
16
130
48.5
26.2
13.1
12.3
100.0
48.5
74.6
87.7
100.0


Reasons for choosing UBI e-Banking Services
63 Respondents (48%) chosen UBI e-Banking because of its convenience, 34(26%)
chose because of 24 hrs access to accounts, 17(13%) chose to save time and others
chose for other reasons 16(12%).
Here the frequency is 138 i.e. respondents are only 100 but they chose multiple
choices
From the figure it can be said that nearly 50% of the customers chose e-Banking
because of its convenience and 24 Hours access to their accounts.
0
10
20
30
40
50
60
70
Convenience 24 Hour Access
to accounts
To Save Time Others
What are the reasons for choosing UBI E-Banking Services? Please
select all that apply.
36

Statistics
E- Banking services respondents think are more user-friendly
Response valid
Response missing
100
0

E-Banking services Customers think are more user-friendly. (Table: 15)
Frequency Percentage Cumulative Percentage
Internet Banking
ATM services
Mobile Banking
Debit/Credit Cards
Total
8
38
11
43
100
8.0
38.0
11.0
43.0
100.0
8.0
46.0
57.0
100.0



Customers who think services are more user-friendly
43% respondents think Debit/Credit cards as more user-friendly compared to other
services.
38% respondents think ATM services as more user friendly.
11% and 8% respondents think Internet Banking and Mobile Banking as more user-
friendly respectively.
So as shown in figure internet banking users felt Debit/Credit cards as a more user
friendly E-Banking channel.
8%
38%
11%
43%
E-Banking channels Customers think are more user-friendly

Internet Banking
Atm Services
Mobile Banking
Debit/Credit Cards
37

Statistics
Frequency of respondents using UBI E-Banking services
Response valid
Response missing
100
0

Frequency of respondents using UBI E-Banking services (Table: 16)
Frequency Percentage Cumulative Percentage
Daily
Monthly
Weekly
Never
Total
17
43
24
16
100
17.0
43.0
24.0
16.0
100.0
17.0
60.0
84.0
100.0





Usage rate of UBI online services
43% respondents responded that they use UBI E-Banking services once in a month
24% responded that they use the services once in a week.
17% users use online services daily and 16% respondents have never used the
services.

0
5
10
15
20
25
30
35
40
45
Daily Monthly Weekly Never
17
43
24
16
38

Statistics
UBI E-Banking products and services regularly used by respondents
Response valid
Response missing
100
0

UBI E-Banking products and services regularly used by respondents (Table: 17)
Frequency Percentage Cumulative Percentage
Account statement
Tax Payment
Third party transfer
Bill Payment
Transaction Enquiry
49
41
8
19
21
138
35.5
29.7
5.8
13.8
15.2
100.0
35.5
65.2
71.0
84.8
100.0



Products& Services customers use regularly
49 respondents (35.5%) used e-Banking to check their account statement. 41 used for
Tax payment (29.7%), 8 used for cheque book request (5.8%), 19 used for Bill
payment (13.8%) and 21 transaction enquiry (15.2%).
From above it is clear that most of the customers use e-Banking to check their account
statements and for Tax payment.
This is multiple option question so 138 respondents responded with multiple choices.
35%
30%
6%
14%
15%
UBI E-Banking products and services regularly used by
respondents
Account Statement
Tax payment
Third Party Transfer
Bill Payment
Transaction Enquiry
39

Statistics
Make purchases through E-Banking
Response valid
Response missing
100
0

Number of respondents making purchases through E-Banking (Table: 18)
Frequency Percentage Cumulative Percentage
YES
NO
Total
48
52
100
48.0
52.0
100.0
48.0
100.0



Respondents purchasing through e-Banking
52% respondents responded that they did not make purchases through e-Banking.
Only 48 respondents made purchasing through UBI E-Banking.
From the above graph less number of users made purchases through UBI E-Banking.






48%
52%
Respondents making purchases through E-Banking
YES
NO
40

Statistics
Frequency of respondents who used UBI E-Banking services in the last 12 months
Valid
Missing
100
0

Frequency of respondents who used UBI E-Banking services in the last 12 months. (Table:
19)
Valid Frequency Percentage Cumulative Percentage
None
One time
Two to four times
Five to seven times
Eight to ten times
Over ten times
Total
34
32
14
10
6
4
100
34.0
32.0
14.0
10.0
6.0
4.0
100.0
34.0
66.0
80.0
90.0
96.0
100.0



Made purchasing through e-Banking in the last 12months
34% respondents response is none. 32% respondents used the services once a year.
Only few of respondents used UBI E-banking services many because they prefer manual
banking over e-Banking.
From the above graph 60% respondents hardly used UBI e-Banking services in a year.

0
5
10
15
20
25
30
35
None One time Two to four
times
Five to
seven times
Eight to ten
times
Over ten
times
Used UBI E-Banking services in the last 12 months
41

Statistics
Benefits accrued from E-Banking services to its users
Response valid
Response missing
100
0


Benefits accrued from E-Banking services to its users. (Table: 20)
Frequency Percentage Cumulative Percentage
Time Saving
Inexpensive
Easy Processing
Easy Fund Transfer
Others
42
13
24
16
5
100
42.0
13.0
24.0
16.0
5.0
100.0
42.0
55.0
79.0
95.0
100.0



Benefits accrued from E-Banking services to its users
42% respondents think that UBI e-Banking services save a lot of time and 24% thinks
it is an easy process.
13% think that the services are inexpensive.
42%
13%
24%
16%
5%
Benefits accrued from E-Banking services to its users
Time Saving
Inexpensive
Easy Processing
Easy Fund Yransfer
Others
42

Statistics
Problems identified by the users of UBI E-Banking service



Problems identified by the users of UBI E-Banking service. (Table: 21)
Frequency Percentage Cumulative Percentage
Lack of Knowledge
Insecurity
ATM out of order
Password Forgotten
Card Misplaced
Card Misuse
36
24
13
14
11
2
100
36.0
24.0
13.0
14.0
11.0
2.0
100.0
36.0
60.0
73.0
87.0
98.0
100.0



Problems identified by the users of UBI E-Banking service
36% respondents face problems using E-banking services due to lack of knowledge
and 24% due to insecurity of losing their personal information.
14% faces problems as they cannot remember their account passwords.
11% had their cards misplaces and 2% had their cards misused.
36%
24%
13%
14%
11%
2%
Problems identified by the users of UBI E-Banking service
Lack of Knowledge
Insecurity
ATM out of order
Password Forgotten
Card Misplaced
Card Misuse
Response valid
Response missing
100
0
43

Statistics
Importance of Privacy Maintenance while using E-Banking services.



Importance of Privacy Maintenance while using E-Banking services. (Table: 22)
Frequency Percentage Cumulative Percentage
Very important
Less important
Not important
Total
63
22
15
100
63.0
22.0
15.0
100.0
63.0
85.0
100.0




Importance of Privacy maintenance while using E-Banking services
63% respondents responded privacy is very important.
22% respondents feels it is less important.
15% respondents thinks it does not hold any importance.


63%
22%
15%
Importance of Privary Maintainence while usinf E-Banking
services
Very Important
Less Important
Not Important
Response valid
Response missing
100
0
44

Statistics
Importance of Security of Transactions while using E-Banking services.




Importance of Security of Transactions while using E-Banking services.(Table: 23)
Frequency Percentage Cumulative Percentage
Very important
Less important
Not important
Total
81
13
6
100
81.0
13.0
6.0
100.0
81.0
94.0
100.0




Importance of Security of Transactions while using E-Banking services:

81 respondents responded security transactions was very important to them.
13% thinks it is less important and 6% thinks it is not important.
From the graph we can understand how much important it is for the customers to have
security for transactions.

81%
13%
6%
Security of transactions
Very Important
Less Important
Not Important
Response valid
Response missing
100
0
45

Statistics
Respondents still visiting the bank after
having started using UBI E-Banking
Response valid
Response missing
100
0

Respondents still visiting the bank after having started using UBI E-Banking. (Table: 24)
Frequency Percentage Cumulative Percentage
YES
NO
Total
86
14
100
86.0
14.0
100.0
86
100.0



Still visits the Bank since after having started using UBI e-Banking
86 respondents that they still visiting Bank after having started using UBI E-Banking.
More number of customers visits Banks after having e-Banking because of they cant
do all the transactions those are physical and some of the information can be
discussed with Bank employees directly.



0
10
20
30
40
50
60
70
80
90
YES NO
Do you still visit the bank after having started using UBI E-
Banking?
46

Statistics
Reasons to visit your Bank branch (single most important reason)
Response valid
Response missing
100
0

Statistics
Reasons to visit your Bank branch (single most important reason). (Table: 25)
Frequency Percentage Cumulative Percentage
To make deposit
To get advice for investment
options
To enquire about balance
To withdraw cash
Other
Total
37
10

7
39
7
100
37.0
10.0

7.0
39.0
7.0
100.0
37.0
47.0

54.0
93.0
100.0
-


Reasons to visit your Bank branch:
39 % has responded that they visit the branch to withdraw cash & 37% to make
deposits.
10% of the respondents visit the branch to get advice for investment.
14% visit the bank to enquire about their account balance and other purposes.
40%
11%
7%
42%
What are the reasons to visit your bank branch? (Please select
the singlemost important reason.
To make diposit
To get advice for investment
options
To enquire about balance
To withdraw cash
Other
47

Statistics
Respondents overall satisfied with UBI E-Banking
Response valid
Response missing
100
0

Respondents overall satisfied with UBI E-Banking. (Table: 26)
Frequency Percentage Cumulative Percentage
Very satisfied
Satisfied
Neutral
Unsatisfied
Total
18
59
14
9
100
18.0
59.0
14.0
9.0
100.0
18.0
77.0
91.0
100.0



Respondents overall satisfied with UBI e-Banking
59 respondents were satisfied with SBI E-Banking services and 18 were very satisfied.
8 respondents chose unsatisfied because of some technical issues till not resolved.
15 are neutral.



18%
59%
14%
9%
Respondents overall satisfied with UBI E-Banking
Very Satisfied
Satisfied
Neutral
Unsatisfied
48


10. LEARNING THROUGH THE PROJECT

Out of the overall percentage of the UBI E-Banking users 67% are male users and
33% are female users.
31% of UBI E-Banking users age between 15 to 30 years, 43% age between 31 to 40
years, 21% between 41 to 50 years and 5% users age 50 years and above.
The UBI E-Banking users constitutes of 63% users who are service men by
profession, 21% are business men, 13% students and 3% users who are not working
presently.
The overall percentage of respondents having complete knowledge about e-banking
services provided by the bank while opening an account in it is 37%, those having
some idea about it is 46% and the percentage of people have no awareness of e-
banking services provided by the bank is 17%. It can reasonably, be concluded that
nearly 85% of the population is having awareness about e-banking services.
39% of the respondents came to know about UBI E-Banking services through friends,
7% through family members, 16% through their relatives, 20% from the bank officials
themselves while opening bank accounts and 18% through advertisements.
The Users of UBI E-Banking services who feel that using the internet for shopping
and banking has made their lives easier constitutes of 73% population. From this we
can conclude that E-Banking is making a positive impact on the lives of the users.
A study of the factors, influencing the usage was made by listing out various factors
such as convenience, 24 hours access, time saving etc., and amongst the various
factors convenience is ranked as the major motivating factor, followed by 24 hours
access and time saving factor.
The E-Banking channel that respondents feel is most user-friendly is the card system
which includes UBI Debit/Credit cards with 43% response, followed by ATM
services with 38% response, followed by Mobile Banking with 11% . Interestingly
Internet banking has got the lowest response of 8%.
Out of the 100 users of UBI E-Banking 43% users use the services only once a month,
24% users uses the services once a week 17% uses them on a daily basis. 16% of the
respondents have never used UBI E-Banking services in their lives. Here we can see
that about one-sixth of the population in ignorant of the services.
49

63% of the respondents feel that maintenance of privacy while using UBI E-Banking
services is very important. 22% respondents have neutral feelings and 15% feels it is
of less importance.
81% of the respondents feel that there should be security of transactions while making
online transactions through UBI E-Banking. This shows that security of transactions
is a factor that should be given utmost importance.
Most of the services that the users use while using UBI E-Banking is to check account
statement which topped with 35.5% response, followed by Tax payment with 29.7%
response, followed by transaction enquiry with 15.2% response and bill payment and
third party transfer with 13.8% and 5.8% response respectively.
When asked to list various benefits accruing from the usage of e-banking, time saving
received highest percentage score at 42.42% among different benefits such as time
saving (42.42%), inexpensive (12.72%), easy processing (24.24%), easy fund
transfer(15.75%).Quite interestingly, easy processing feature scored more than the
inexpensiveness of the e-banking services. The other benefits accruing to the people
include ready availability of funds, removal of middlemen and no rude customer
relation executives.
Among the users, various problems that are encountered while using e-banking
services. Card misuse and its misplace are major reasons that create hurdles in its
usage, while time consumption, accounting mistakes such as amount debited but not
withdrawn and change of mobile number seem to be the least bothering problems.
86% respondents still visits their bank after having started using UBI E-Banking
services for reasons like making deposits, get advice for investments, to enquire about
balance, to withdraw cast etc.
Overall, 67% of the users are satisfied with UBI E-Banking services. 15 % users have
neutral feelings about the services and 8% users are not satisfied.





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11. LIMITATIONS OF THE STUDY


This work had been conducted within a short period of two months and this restriction
in time employed made it impossible for the researcher to include all areas affected.


The sample size of only 100 was taken from the large population for the purpose of
study, so there can be difference between results of sample from total population.


The respondents were reluctant to respond and felt uneasy and suspicious of the
information being gathered and thought that the data was to be used for other motives
against them.


Due to continuous change in environment, what is relevant today may be irrelevant
tomorrow.




















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12. CONCLUSION


The internet banking has been growing rapidly in India. It is an innovative tool that is fast
becoming a necessity. It is a successful strategic weapon for banks to remain profitable in a
volatile and competitive marketplace of today. The service is quick, easy to use, easy to
transfer money from one account to another electronically at any time of the day. The growth
in the recent years in E-banking services has resulted into benefit to the customer. However it
was noticed that skilled employees are less with reference to electronic banking than manual
banking. The customer representatives for on-line services fairly respond to clients queries
on a timely fashion, were the major factors negatively affecting electronic banking methods
employed at UBI Head Office. Findings reveal that Electronic Banking has satisfied most of
people banking needs, most bank clients enjoy using e-Banking, however they are not aware
and knowledgeable of the current threats and required security measures that need to be
taken while using E-Banking.

The usage of E-banking is all set to increase among the customers. The customers at the
moment are not using the services thoroughly due to various hurdling factors like insecurity
and privacy reasons etc. However, in future, the availability of technology to ensure safety
and privacy of e-transactions and the RBI guidelines on various aspects of internet banking
will definitely help in rapid growth of internet banking in India.















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13. CONTRIBUTION TO THE ORGANIZATION

Internet 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. This study focuses on the various factors that need to be followed in
order to have a satisfied customer base and long-term success. Below are the various
recommendations:

13.1. Technology and Security Standards:

Organizations should make explicit security plan and document it. There should be a
separate Security Officer / Group dealing exclusively with information systems
security. The Information Technology Division will actually implement the computer
systems while the Computer Security Officer will deal with its security. The
Information Systems Auditor will audit the information systems.

Organizations should make explicit security plan and document it. There should be a
separate Security Officer / Group dealing exclusively with information systems
security. The Information Technology Division will actually implement the computer
systems while the Computer Security Officer will deal with its security. The
Information Systems Auditor will audit the information systems.


Access Control: Logical access controls should be implemented on data, systems,
application software, utilities, telecommunication lines, libraries, system software, etc.
Logical access control techniques may include user-ids, passwords, smart cards or
other biometric technologies.

Firewalls: At the minimum, banks should use the proxy server type of firewall so that
there is no direct connection between the Internet and the banks system. It facilitates
a high level of control and in-depth monitoring using logging and auditing tools. For
sensitive systems, a stateful inspection firewall is recommended which thoroughly
53

inspects all packets of information, and past and present transactions are compared.
These generally include a real-time security alert.


Penetration Testing: The information security officer and the information system
auditor should undertake periodic penetration tests of the system, which should
include:
Attempting to guess passwords using password-cracking tools.
Search for back door traps in the programs.
Attempt to overload the system using DdoS (Distributed Denial of Service) &
DoS (Denial of Service) attacks.
Check if commonly known holes in the software, especially the browser and
the e-mail software exist.
The penetration testing may also be carried out by engaging outside experts
(often called Ethical Hackers).

Monitoring against threats: The banks should acquire tools for monitoring systems
and the networks against intrusions and attacks. These tools should be used regularly
to avoid security breaches.

13.2. Legal Issues
Banks may be allowed to apply for a license to issue digital signature certificate under
Section 21 of the Information Technology Act, 2000 and function as certifying
authority for facilitating Internet banking. Reserve Bank of India may recommend to
Central Government for notifying the business of certifying authority as an approved
activity under clause (o) of Section 6(1) of the Banking Regulations Act, 1949.

Section 40A(3) of the Income Tax Act, 1961 recognizes only payments through a
crossed cheque or crossed bank draft, where such payment exceeds Rs. 20000/-, for
the purpose of deductible expenses. Since the primary intention of the above
54

provision, which is to prevent tax evasion by ensuring transfer of funds through
identified accounts, is also satisfied in case of electronic transfer of funds between
accounts, such transfers should also be recognized under the above provision. The
Income Tax Act, 1961 should be amended suitably.

13.3 Regulatory and Supervisory Issues
The RBI may have a panel of auditors who will be required to certify the security of
the entire infrastructure both at the payment gateway end and the participating
institutions end prior to making the facility available for customers use.

The credit risk associated with each payment transaction will be on the payee bank.
The legal basis for such transactions and settlement will be the bilateral contracts
between the payee and payees bank, the participating banks and service provider and
the banks themselves. The rights and obligations of each party must be clearly stated
in the mandate and should be valid in a court of law.


It will be necessary to make customers aware of risks inherent in doing business over
the Internet. This requirement will be met by making mandatory disclosures of risks,
responsibilities and liabilities to the customers through a disclosure template. The
banks should also provide their latest published financial results over the net.

Hyperlinks from banks websites often raise the issue of reputational risk. Such links
should not mislead the customers in to believing that they sponsor any particular
product or any business unrelated to banking. Hence, hyperlinks from a banks
websites should be confined to only those portals with which they have a payment
arrangement or sites of their subsidiaries or principals. Hyperlinks to banks website
from different portals are normally meant to pass information pertaining to purchases
made by banks customers in the portal.



55

14. BIBLIOGRAPHY

Books:

India, U. B. (2014). User Guide for E-Banking Customers.

Nath, M. a. (2004). A Model of Trust in Online Relationship Banking.


Websites:

http://www.unitedbankofindia.com/english/EBanking.aspx, July 2014

https://ebank.unitedbankofindia.com/, July 2014

http://en.wikipedia.org/wiki/United_Bank_of_India , September 2014

http://www.indiainfoline.com/markets/company/background/stock-history/united-bank-
of-india/5481, September 2014

http://www.iloveindia.com/finance/bank/nationalised-banks/united-bank-of-india.html,
September 2014


















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15. ABBREVIATIONS



MIS : Management Information Systems
SDLC : Systems Development Life Cycle
E-Banking : Electronic Banking
ATM : Automated Teller Machine
IRS : Indian Revenue Service
NEFT : National Electronic Funds Transfer
RTGS : Real Time Gross Settlement
CBDT : Central Board of Direct Taxes
WAP : Wireless application protocol
GPRS : General Packet Radio Service
SMS : Short Message Services
POS : Point of Sale
DodS : Distributed Denial of Service
DoS : Denial of Service


















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16. ANNEXURE

. QUESTIONNAIRE


Dear Sir/ Madam,
I am Miss. Sohinee Dey, a final year MBA student of Sinhgad Business
School. I am conducting a survey on Services provided by UBI through E-Banking. Please
provide relevant information by filling this questionnaire to make my survey more
comprehensive. All details given by you will be kept confidential.
Personal details:
NAME: ..
AGE: ...
OCCUPATION: ...
E-MAIL ID :
MOB. NO. : ..
ADDRESS: ..
..

1) Do you do E-Banking?

YES NO

2) How did u come to know about E-Banking?

Friends Family

Relatives Bank officials

Advertisement

3) Do you feel E-Banking services are necessary?

YES NO
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Reason ..
...

4) What are the reasons for choosing UBI E-Banking services? Please select all that apply
Convenience 24Hour access to accounts

To save time others


5) Which of the following services you think, are more user friendly?
Internet Banking: ATM Services:

Mobile Banking:


6) How often do you use UBI online services?

Daily Monthly

Weekly Never


7) Which online products& Services do you use regularly? Please select all that apply
E-Ticketing UBI E-Tax
Account Statement E-Payment
Transaction Enquiry Third Party Transfer


8)Do you make purchasing through E-Banking?

Yes No
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9) Approximately how many times you have made purchasing through E-Banking in the last
12 months?

1 time 2 to 4 times
5 to 7 times 8 to 10 times
Over 10 times


10) Please rate the following online Features of UBI
+2 +1 0 -1 -2
Excellent Good Neutral Poor N/A

Account Statement
Funds Transfer
Bill Payment
E-Tax
Other Value Added Services


11) Overall, how satisfied you are with UBI E-banking?

Very satisfied Unsatisfied

Satisfied Very unsatisfied

Neutral







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12) For your choice of E- banking, which of the following factors do you feel important?
-1 0 +1
Less Not Very
Important Important Important

Better rate and lower service charge

24 hours access

Privacy is maintained

Innovative services

Security of Transaction

Quick service


13) Do you still visit the bank since after having started using UBI E- banking?

YES NO


If YES why?

14) What is the main reason to visit your bank branch? (Please choose the single most
important reason)

To make deposit To get advice for investment options
To inquire about balance To withdraw cash
Other
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15) How frequently do you use an Automated Teller Machine (ATM) per month?

1 time only 2 to 5 times

6 to 8 times 9 to 12 times

Over 12 times


16) If you have any other comments or suggestions please share with us