Digitalization effects: an analysis of the common problems faced

by the Cardholders in SBI’s E-banking services in Thanjavur.

D. Heena Kausar1 & Dr. N. Shaik Mohamed2*
1. Assistant Professor, PG & Research Department of Commerce, Bon Secours College for Women, Thanjavur,
Tamilnadu, India. [email protected]
2* Associate Professor & Research Supervisor (Rtd), PG & Research Department of Commerce, Jamal Mohamed
College, Tiruchirappalli, Tamilnadu, India. [email protected]

Abstract
Digital India is an initiative taken up recently in 2015 by the government of India. It is a process instigator with the motive of
providing all government services to the citizens, both residing in rural and urban areas. The entire services can be provided electronically
through internet connectivity. Thus India can be identified as digitally empowered in the field of technology. Development of technology
all over India, including rural areas is done by providing high speed internet networks. The current study is done mainly in the rural area
of Thanjavur and especially with those respondents who are SBI cards holders. This study highlights the common problems faced by them
through the online transaction carried. A total of 75 respondents were surveyed through a structured Questionnaire framed on the
problems occurred in online transactions. The respondents selected were spread across the remote area of Thanjavur. The study has been
planned into three parts (i) Concepts related to online problems (ii) Research design (iii) analytical part and the conclusion.

Key words: Plastic money, e-commerce payment system, merchant account, online shopping, Digital Transaction, EFI.

Introduction
Today the Internet has become as a part and parcel of each individual’s life. It saves individuals time and money and make easier
to do any online transaction from the place they live. Online transaction includes online payment services, online marketing services,
online investment services, online booking for travel, restaurant, movies etc. Generally peoples believe that the cost involved in physical
acquisitioned this services is high and they start searching the source to utilize this services at lower cost. The Internet serves at this source
and does the services at economical rate and at the best quality. The Internet is relatively considered as a new medium for the
communication and the exchange of information which has become present in our daily lives. The number of Internet users is constantly
increasing, which is also significant that online dealing is increasing rapidly.[1] The online dealings like shopping and its payments are
commonly made by the populace. But everyone faces some problems at an initial or later stage. The process of online shopping and
payment dealings can be clearly understood from the diagram depicted below

Source: Online Payment processing details (www.cybersource.com)

Online Payment processing[2]

Step 1: Purchaser places order
Step 2: Merchant securely transfers order information to Cyber Source over the Internet. Cyber Source receives order information and
performs requested services.
Step 3: Cyber Source formats the transaction detail appropriately and securely routes the transaction authorization request through its
payment gateway to the processor.
Step 4: The transaction is then routed to the issuing bank (purchaser's bank) to request transaction authorization.
Step 5: The transaction is authorized or declined by the issuing bank or card (Discover, American Express).
Step 6: Cyber Source returns the message to the merchant.
Step 7: Issuing bank approves transfer of money to acquiring bank.
Step 8: The acquiring bank credits the merchant's account.
Concepts related to online transaction
PLASTIC MONEY: It is an electronic module where all the information about the client or the card holder and the bank are stored and
can be executed by putting it in the ATM and at the Point of Sales terminal. It may be in the form of Debit card, credit card, ATM card,
store card, Precash card etc.
E-COMMERCE PAYMENT SYSTEM: it facilitates the acceptance of electronic payment for online transactions. It is also known as a
Electronic Data Interchange (EDI). This system is introduced to use green transaction ie., Paper less money Transaction.
MERCHANT ACCOUNT: It is a type of bank account or business account of a trader or merchant with bank where all the funds paid
through plastic money are deposited in this business account. It accepts Visa, MasterCard, American Express or any other debit or credit
card for payments[3].
ONLINE SHOPPING: It is a form of e-commerce, where consumers can directly buy goods or services from a seller over
the Internet by referring the online shopping zone. There are multiple zones, which displays the different product's availability and pricing
at different e-retailers. The consumer can select the product and can use online or offline option of payment option for such product and
request for delivery to their convenient location.
DIGITAL TRANSACTION: A digital transaction is a seamless system involving one or more participants, where transactions are
effected without the need for cash. Digital transaction involves a constantly evolving way of doing things where financial technology
companies collaborate with various sectors of the economy for the purpose of meeting the increasingly sophisticated demands of the
growing tech-savvy users.[4]
ELECTRONIC FUND TRANSFER: It is a popular electronic payment method to transfer money from one bank account to another
bank account. It can be operated self by the customer in online and can also use NEFT, RTGS to transfer money but in this case the
customer has to depend upon the bank to transfer the fund. [5]
Review of related literature
Goyal and Goyal (2012)[6] studied that an analysis of the differences in risk perceptions between bank customers using i-banking
and those not using internet banking was done and the study showed that risk perceptions in terms of financial, psychological and safety
risks among customer not using the internet was more meaningful than those using internet banking. Customers not preferring to use i-
banking thought that they would be swindled when using this service and therefore, are particularly careful about high risk expectation
during money transfers from and between accounts. Private and foreign banks are trying to turn more and more customer towards the
usage of internet for the banking transaction.
Smith and Rupp (2003)[7] have examined and identify the factors in their work that affects the behaviour of consumers. These
issues have been identified as for the marketing effort, socio-cultural influence, emotional factor, the psychological factors and privacy
factors, to the experience, the purchase and post -purchase decisions. They also show that consumers are affected by various
psychological factors, such as perception, motivation, personality, attitudes and emotions.
Kaufman-Scarbrough, Carol; Linquist, Jay D (2002)[8] This study finds more differences between the behaviour of frequent
and occasional online shoppers, and greater similarities between occasional shoppers and non-online shoppers. Those consumers who
shop online frequently are more confident, spend more money when they shop online in their home country, and also shop more cross-
border. While they do worry about issues such as delivery and returning goods, they also tend to be savvier on how to solve problems
when they do occur. Therefore encouraging and developing online shopping at national level is likely to increase cross-border shopping as
well.
Rachel & Caterina, (2012)[9] According to the study of trust in e-commerce what might makes consumers worry is losing
money while not getting products in online shopping. In another word, they get defrauded by Internet frauds. Based on most the shared
information about those frauds (Web of Trust), two most common Internet frauds is: Phishing and malware
Objectives of the study
 To study the problems faced by SBI card holders in E- services.
 To give appropriate suggestion to the customer to overcome this problems.
Statement of the problem
It was once upon a time in India that most of the consumers are heavily dependent only on the cash economy; they have been
using cash in hand for purchase of products and service. As continuation of demonetization process, now the consumers have to switch
from cash to cashless electronic transactions. Currently the government has restricted the traditional cash transaction and offers for
electronic transfer. The consumers are push to adopt and implement cashless transaction for their needs. Though India is marching
towards cashless economy, still there are complications and lack of awareness in using the plastic money and especially in E-transaction.
Therefore this study makes an attempt to analyze the problems faced by the SBI card holders in online services.
Scope of the study
The present study has wide scope. This study highlights the problems arouse in Internet transfers, Telephone banking, Mobile
Banking problems etc. It covers the opinion of the SBI card holders who have experienced the problem in online dealings. It also covers
the steps involved in online purchase and payment processing.
Research design
RESEARCH METHODOLOGY: This is the survey method of research based on Primary data. An attempt was made to analysis of
the common problems faced by the SBI Cardholders in E Banking Services in Thanjavur.
SOURCES OF DATA: The research works with both primary and secondary data’s. The information required for the study was
collected from the respondents using structured questionnaire as a primary source. Secondary data’s’ are referred from books, reports,
journals, internet and like.[10]
STATISTICAL TOOLS: The collected data has been represented in the form of Table. The data has been further simplified into
percentage for easy understanding. Simple statistical analysis such as descriptive statistical analysis, frequency distribution, cross
tabulation, reliability analysis, KMO & Bartlett’s test and ANOVA is also applied to test the independence of the variables.
Sampling design
The sampling design describes the sample size, sampling method and Universe of the current research studied.
SAMPLE SIZE: The study is mainly based on the primary data collected by the researcher. Questionnaire method of data collection has
been exclusively used for this purpose. The data has been collected from 75 respondents. Each respondent fills separate questionnaire. The
questionnaire is farmed in such a way that could help to find out solution for the objective of the study.
SAMPLING METHOD: Since the population is indefinite, convenience method of sampling is used in order to collect data from the
respondents. The data was collected in person using a structured questionnaire from the respondent regularly opt E- services and
experienced the problems faced in online dealing from Thanjavur are selected.
UNIVERSE OF THE STUDY: The universe for the study to analyze the problems faced by the SBI card holders in online dealings is
Thanjavur city.
PERIOD OF THE STUDY
Period of the study is four months from the month of December 2017 to March 2018.
Limitations of the study
 The findings of the study are purely an outcome of the responses given by the sample respondents.
 Due to time availability, the sample size was taken as up to 75 respondents
 The findings of the study may be relevant only to the study area viz., Thanjavur.
 The cardholder’s responses are subject to personal bias.
Analysis and discussion
1. Personal Back ground
 77 % of respondents studied were female.
 65 % of the respondents were in 18-25 age group
 41% of the respondents have completed undergraduate degree.
 64 % of the respondents studied were unmarried.
 40 % respondents of card holders were self - employed
 43 % of the SBI customers opined their income ranges between Rs.10,000- Rs. 20000
 63 % of the respondents used the card for a period of 1-5 years.
2. SBI’s Service Quality
 41 % of the respondents opined quality of service as the best attribute of SBI.
 41% of the respondents have referred the quality of service insisted to use new techniques.
3. Customers awareness on Net services
 43 % of respondents have average knowledge in computer usage level.
 40 % of the respondents have knowledge in the operating ATM/Debit card in net.
4. Customer perception on SBI’s level of Technology
a) INTERNET SERVICES
 27 % of respondents are highly satisfied with balance inquiry through internet`
 59 % of respondent are satisfied in account to account transfer made through internet
 51 % of the respondents opined neutrally to the dues verification through internet.
 60% of the respondents are satisfied with the obligation of statement request using internet.
b) BANKING SERVICES
 69 % of respondent belongs to satisfied on up-to-date technology.
 59% of the respondents are satisfied with ease location of the bank.
 60% of the respondents have felt satisfied with the sufficient number of ATM machines available.
 41% of the respondents have felt satisfied and opined that number of cash counting machines are available in the bank and it
saves their time.
4. Problems faced by the Respondents
a) Problems in E – Banking services
 56 % of the respondents felt rarely feel that internet banking doesn’t give fast response.
 47%of the respondents have felt that the internet operation has been felt unfinished.
 45 % of the respondents felt internet banking transactions can be tampered by others.
b) Telebanking Problem
 41 % of the respondents have rarely felt to immediate connection to access the service is not available.
  44 % of the respondents have rarely experienced to the lack of guidelines through Telebanking.

c) M-banking Problems
 43 percent of respondents are never felt login/sign off as easy through mobile banking.
 63 % of the respondents have never felt insecure in banking transaction.
Statistical Analysis
Table No: 1
Reliability Test
Reliability Statistics
Cronbach's Alpha
Based on
Cronbach's Alpha Standardized Items N of Items
0.768 0.770 14
Source: Primary data (Output generated from SPSS 21)

A reliability analysis was carried out on the task of measuring the problems faced by the SBI card holders in E-Banking transactions
comprising 14 items. Cronbach’s alpha showed the questionnaire to reach acceptable reliability, α = 0.768. The alpha coefficient for the
fourteen items is 0.768, suggesting that the items have relatively high internal consistency. Most items appeared to be worthy of retention,
resulting in a decrease in the alpha if deleted. The one exception to this was online statement inquiry, which would increase the alpha to α
= 0.774. As such, removal of this item should be considered.

Table No: 2
Factor Analysis
KMO and Bartlett's Test
Kaiser-Meyer-Olkin Measure of Sampling Adequacy. 0.569
Bartlett's Test of Sphericity Approx. Chi-Square 369.498
df 171
Sig. .000
Source: Primary data (Output generated from SPSS 21)
Kaiser – Meyer – Olkin measure of sampling adequacy index is 0.569, which indicates that factor analysis is appropriate for the given
data set. KMO measure of sampling adequacy is an index to examine the appropriateness of factor analysis. Bartlett’s test of Sphericity
Chi-square statistics is 369.498, which would mean the 14 statements are correlated and hence as concluded in KMO, factor analysis is
appropriate for the given data set.
Table No: 3
ANOVA test between Profession and problems in internet banking transactions
Sum of Squares df Mean Square F Sig.
E-Banking Between Groups 9.251 5 1.850
Transaction Within Groups 39.869 69 0.578 3. 207 0.018
Familiarity Total 79.120 74
Customer Between Groups 6.345 5 1.269
Technology level Within Groups 219.202 69 3.177 0.399 0.848
Total 225.547 74
Accounting details Between Groups 4.003 5 .801
Inquiry Within Groups 17.997 69 .261 3.069 0.015
Total 22.000 74
E-Payment services Between Groups 8.469 5 1.694
Within Groups 31.317 69 .454 3.732 0.005
Total 39.787 74
A/c to A/c Transfer Between Groups 1.485 5 .297
Within Groups 17.902 69 .259 1.146 0.045
Total 39.387 74
Due inquiry in net Between Groups 6.280 5 1.256
Within Groups 38.067 69 .552 2.277 0.056
Total 44.347 74
Requisition for Between Groups 1.192 5 .238
Statement through Within Groups 39.794 69 .577 0.414 0.838
net Total 40.987 74
Bank Updating Between Groups 1.599 5 .320
knowledge Within Groups 20.748 69 .301 1.063 0.388
Total 22.347 74
Telecommunication Between Groups 1.799 5 .360
clarification Within Groups 42.148 69 .611 0.589 0.708
Total 43.947 74
 Lack of internet Between Groups 7.143 5 1.429
operating Within Groups 24.244 69 .351 4.070 0.013
Guidelines Total 49.387 74
Login is uneasy Between Groups 4.283 5 .857
Within Groups 45.797 69 .664 1.290 0.278
Total 50.080 74
Felt unsecured Between Groups 8.470 5 1.694
Within Groups 36.277 69 .526 3.220 0.014
Total 38.747 74
Banking with new Between Groups 3.221 5 .644
technology Within Groups 29.526 69 .428 1.505 0.019
Total 32.747 74
Leaving operation Between Groups 1.190 5 .238
unfinished Within Groups 38.756 69 .562 0.424 0.831
Total 39.947 74
Source: Primary data (Output generated from SPSS 21)
 The differences in the mean of samples based on the E-Banking Transaction Familiarity and the differences in the mean of
samples based on the profession of respondents are Significant.
 The differences in the mean of samples based on the Customer Technology level and the differences in the mean of samples
based on the profession of respondents are Insignificant
 The differences in the mean of samples based on the Accounting details Inquiry and the differences in the mean of samples
based on the profession of respondents are Significant.
 The differences in the mean of samples based on the E-Payment services used for online shopping and the differences in the
mean of samples based on the profession of respondents are Significant.
 The differences in the mean of samples based on the A/c to A/c Transfer using NEFT & RTGS through internet and the
differences in the mean of samples based on the profession of respondents are Significant.
 The differences in the mean of samples based on the Due inquiry through internet and the differences in the mean of samples
based on the profession of respondents are Significant.
 The differences in the mean of samples based on the Requisition for Statement for reference and the differences in the mean of
samples based on the profession of respondents are insignificant.
 The differences in the mean of samples based on the Bank updating awareness information and the differences in the mean of
samples based on the profession of respondents are insignificant.
 The differences in the mean of samples based on the Tele communication clarification and the differences in the mean of
samples based on the profession of respondents are insignificant.
 The differences in the mean of samples based on the clarity of internet language and the differences in the mean of samples
based on the profession of respondents are Significant.
 The differences in the mean of samples based on the Login and the differences in the mean of samples based on the profession of
respondents are insignificant.
 The differences in the mean of samples based on the E-Banking Felt unsecured and the differences in the mean of samples
based on the profession of respondents are Significant.
 The differences in the mean of samples based on the Banking with new technology and the differences in the mean of samples
based on the profession of respondents are Significant.
 The differences in the mean of samples based on the Leaving operation unfinished and the differences in the mean of samples
based on the profession of respondents are insignificant.
Suggestions
A study on the common problems faced by the Cardholders in SBI’s E-Banking services in Thanjavur has been analysed and the
following suggestions are recommended
 The card issuers should take necessary steps to improve the internet applications awareness campaign for their business growth
and to support the policy of Digital India in the study area.
 The majority of cardholder preferred money as a right mode of payment than using card. It is suggested that the card division
should adopt right marketing strategy such as reduce charges and popularize through effective sale promotion (like gift, free offer)
and acceptability of card with incentives offered by the merchant establishments to attract and promote their card holders usage.
Scope for future research
Further the research study can be applied by comparing all banks customers of the same remote area. This study can also be
continued as a comparison study inbetween rural and urban area places to know the lack of rural areas development in online transaction
and solutions can be studied and applied for supporting digital India plan.
Conclusion
This research study examined the common problems faced by the Cardholders in SBI’s E- banking services in Thanjavur area. This study
mainly focuses on the respondents of SBI using online transaction from the study area. One way Anova applied shows significant
relationship among the major factors related to E-Banking transaction familiarity, Accounting details inquiry, E-Payment services used for
online shopping, A/c to A/c transfer , Due inquiry through internet, Lack of internet operating Guidelines, E-Banking felt unsecured,
opinion on Banking with new technology. The online resources are available in plenty but the level of education for accessing this online
business is low. Customers from the study rural area felt unsecured in doing online services. The SBI bank in this study area should adopt
right marketing strategy by conducting educational campaigns to improve the online services usage of the customers, so that their existing
customers can be maintained and new customers can be attracted. Thus it can achieve long-term profitability, survival and stability of e-
banking business at present and growth of economy of our country in future.
Reference
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