A STUDY ON CONSUMER PERCEPTION TOWARDS E- BANKING

SERVICES WITH SPECIAL REFERENCE TO COIMBATORE

A Project Report submitted to the Bharathiar University, in the partial

fulfillment of the requirements for the award of the degree of

BACHELOR OF COMMERCE WITH COMPUTER APPLICATIONS

Submitted by
C.DHANYA
(Reg.No:192AC2222)
Under the Guidance of
Ms.M.PRIYANKA,M.COM., M.Phil.,
(Assistant Professor)

PG AND RESEARCH DEPARTMENT OF COMMERCE CA

KAAMADHENU ARTS AND SCIENCE COLLEGE
(Affiliated to Bharathiar University)
SATHYAMANGALAM- 638 503
APRIL – 2023
 CERTIFICATE

This is to certify that the project report, entitled “A STUDY ON CONSUMER PERCEPTION
TOWARDS E-BANKING SERVICES WITH SPECIAL REFERENCE TO COIMBATORE”,
submitted to the Bharathiar University, in the partial fulfillment of the requirements for the award of
the Degree of BACHELOROF COMMERCE WITH COMPUTER APPLICATIONS, is a
record of original project work done by C.DHANYA(Reg.No.192AC2222) during the period of her
study in the PG AND RESEARCH DEPARTMENT OF COMMERCE CA at KAAMADHENU
ARTS AND SCIENCE COLLEGE, SATHYAMANGALAM. Under my supervision the project
report has not formed the basis for the award for any Degree/ Diploma/ Associate ship Fellowship or
other similar title of any candidate of any candidate of any University.

Signature of the Guide Head of the Department

Principal

Viva-Voce Examination Held on ------------------------------------------------

Internal Examiner External Examiner

 DECLARATION

I, C.DHANYA hereby declare that the project entitled “A STUDY ON CONSUMER

PERCEPTION TOWARDS E-BANKING SERVICES WITH SPECIAL REFERENCE TO
COIMBATORE ”submitted to the Bharathiar University, in the partial fulfillment of the
requirements for the award of the Degree BACHELOR OF COMMERCE WITH COMPUTER
APPLICATIONS is a record of original and independent research work done by me during the
period of 2022-2023 under the Supervision and guidance of Ms.M.PRIYANKA,M.Com., M.Phil.,
Assistant Professor, PG AND RESEARCH DEPARTMENT OF COMMERCE CA
KAAMADHENU ARTS AND SCIENCE COLLEGE, SATHYAMANGALAM. It is has no
formed the basis for the award of any Degree/ Diploma/Associate ship/ Fellowship or other similar
title of any candidate of any University.

Signature of the Candidate

(C.DHANYA)
Place: Sathyamangalam
Date:
 ACKNOWLEDGEMENT

First of all I am expressing my sincere and heartfelt thanks to the God almighty for his

unlimited blessing throughout my Research work and in the preparation of the project report.

I wish to express grateful to Thiru.R.PERUMALSAMY, Avl., Chairman, Ms.

P.ARUNTHATHI, B.E., M.Sc., Secretary, Ms. P.MALARSELVI, MA., M.Ed., M.Phil, Joint

Secretary for providing me an opportunity to platform this project.

I wish to express grateful to Dr. K.SENTHILKUMAR, M.Com., M.Phil., MBA., ICWA.,

ACS., PGDCA., Ph,D., Principal, for providing me an opportunity to platform this project.

I record my sincere and heartfelt thanks to Dr. A.SENGOTTAIYAN, M.Com., M.Phil.,

Ph.D., MBA., PGDCA., M.Sc(IT), Associate Professor and Head, PG and Research Department of

Commerce CA, for his valuable advice, suggestions throughout the project.

I express my sincere thanks to my beloved guide Ms.M.PRIYANKA,M.COM., M.Phil.,

Assistant Professor, PG and Research Department of Commerce CA, Kaamadhenu Arts and

Science College, Sathyamangalam for his valuable guidance, timely suggestion and enormous

encouragement for successful completion of this project report.

My whole-hearted and profound thanks to all the Faculty Members and Non-teaching Staff

Members of Kaamadhenu Arts and Science College for providing necessary facilities to enter the

field of project and also complete it successfully.

(C.DHANYA)
 TABLE OF CONTENT

SR NO. TOPIC PAGE NO.

A Declaration 2

B Acknowledgement 4

C Executive Summary 5

D Preface 6

1 Introduction of the study 9

2 Literature review 23

3 Research Methodology 27

4 Data Analysis & Interpretation 30

5 Findings and conclusion 46

D Bibliography 49

E Annexure 50
 LIST OF TABLE AND GRAPH

SR NO. NAME OF TABLE PAGE NO.

1 TABLE AND GRAPH NO. 4.1 31

2 TABLE AND GRAPH NO. 4.2 32

3 TABLE AND GRAPH NO. 4.3 33

4 TABLE AND GRAPH NO. 4.4 34

5 TABLE AND GRAPH NO. 4.5 35

6 TABLE AND GRAPH NO. 4.6 36

7 TABLE AND GRAPH NO. 4.7 37

8 TABLE AND GRAPH NO. 4.8 38

9 TABLE AND GRAPH NO. 4.9 39

10 TABLE AND GRAPH NO. 4.10 40

11 TABLE AND GRAPH NO. 4.11 41

12 TABLE AND GRAPH NO. 4.12 42

13 TABLE AND GRAPH NO. 4.13 43

14 TABLE AND GRAPH NO. 4.14 44

15 TABLE AND GRAPH NO. 4.15 45

 CHAPTER:- 1
INRODUCTION OF THE STUDY
 Introduction
DEFINITION OF E-BANKING

Electronic banking, also known as electronic funds transfer (EFT), is simply the use of electronic
means to transfer funds directly from one account to another, rather than by cheque or cash. You
can use electronic funds transfer to:

 Have your paycheck deposited directly into your bank or credit union checking account.
 Withdraw money from your checking account from an ATM machine with a personal
identification number (PIN), at your convenience, day or night.
 Instruct your bank or credit union to automatically pay certain monthly bills from your
account, such as your auto loan or your mortgage payment.
 Have the bank or credit union transfer funds each month from your checking account to
your mutual fund account.
 Have your government social security benefits check or your tax refund deposited
directly into your checking account.
 Buy groceries, gasoline and other purchases at the point-of sale, using a check card rather
than cash, credit or a personal check.
 Use a smart card with a prepaid amount of money embedded in it for use instead of cash
at a pay phone, expressway road toll, or on college campuses at the library's photocopy
machine or bookstores.
 Use your computer and personal finance software to coordinate your total personal
financial management process, integrating data and activities related to your income,
spending, saving, investing, recordkeeping, bill-paying and taxes, along with basic
financial analysis and decision making.
 Electronic Banking Products and Services:
INTERNET BANKING:

Internet Banking lets you handle many banking transactions via your personal computer. For
instance, you may use your computer to view your account balance, request transfers between
accounts, and pay bills electronically.

Internet banking system and method in which a personal computer is connected by a network
service provider directly to a host computer system of a bank such that customer service requests
can be processed automatically without need for intervention by customer service
representatives. The system is capable of distinguishing between those customer service requests
which are capable of automated fulfillment and those requests which require handling by a
customer service representative. The system is integrated with the host computer system of the
bank so that the remote banking customer can access other automated services of the bank. The
method of the invention includes the steps of inputting a customer banking request from among a
menu of banking requests at a remote personnel computer; transmitting the banking requests to a
host computer over a network; receiving the request at the host computer; identifying the type of
customer banking request received; automatic logging of the service request, comparing the
received request to a stored table of request types, each of the request types having an attribute to
indicate whether the request type is capable of being fulfilled by a customer service
representative or by an automated system; and, depending upon the attribute, directing the
request either to a queue for handling by a customer service representative or to a queue for
processing by an automated system.

AUTOMATED TELLER MACHINES (ATM):

An unattended electronic machine in a public place, connected to a data system and related
equipment and activated by a bank customer to obtain cash withdrawals and other banking
services. Also called automatic teller machine, cash machine; Also called money machine.

An automated teller machine or automatic teller machine (ATM) is an electronic computerized

telecommunications device that allows a financial institution's customers to directly use a secure
method of communication to access their bank accounts, order or make cash withdrawals (or
cash advances using a credit card) and check their account balances without the need for a
human bank teller (or cashier in the UK). Many ATMs also allow people to deposit cash or
cheques, transfer money between their bank accounts, top up their mobile phones' pre-paid
accounts or even buy postage stamps.

On most modern ATMs, the customer identifies him or herself by inserting a plastic card with a
magnetic stripe or a plastic smartcard with a chip, that contains his or her account number.
The customer then verifies their identity by entering a passcode, often referred to as a PIN
(Personal Identification Number) of four or more digits. Upon successful entry of the PIN, the
customer may perform a transaction.

If the number is entered incorrectly several times in a row (usually three attempts per card
insertion), some ATMs will attempt retain the card as a security precaution to prevent an
unauthorised user from discovering the PIN by guesswork. Captured cards are often destroyed if
the ATM owner is not the card issuing bank, as noncustomer's identities cannot be reliably
confirmed.

The Indian market today has approximately more than 17,000 ATM’s.

TELE BANKING:

Undertaking a host of banking related services including financial transactions from the
convenience of customers chosen place anywhere across the GLOBE and any time of date and
night has now been made possible by introducing on-line Tele banking services. By dialing the
given Tele banking number through a landline or a mobile from anywhere, the customer can
access his account and by following the user-friendly menu, entire banking can be done through
Interactive Voice Response (IVR) system. With sufficient numbers of hunting lines made
available, customer call will hardly fail. The system is bi-lingual and has following facilities
offered

 Automatic balance voice out for the default account.

 Balance inquiry and transaction inquiry in all
 Inquiry of all term deposit account
 Statement of account by Fax, e-mail or ordinary mail.
 Cheque book request
 Stop payment which is on-line and instantaneous
 Transfer of funds with CBS which is automatic and instantaneous
 Utility Bill Payments
 Renewal of term deposit which is automatic and instantaneous
 Voice out of last five transactions.

SMART CARD:

A smart card usually contains an embedded 8-bit microprocessor (a kind of computer chip).
The microprocessor is under a contact pad on one side of the card. Think of the
microprocessor as replacing the usual magnetic stripe present on a credit card or debit card.

The microprocessor on the smart card is there for security. The host computer and card
reader actually "talk" to the microprocessor. The microprocessor enforces access to the data
on the card. The chips in these cards are capable of many kinds of transactions.
 For example, a person could make purchases from their credit account, debit account or
from a stored account value that's reload able. The enhanced memory and processing
capacity of the smart card is many times that of traditional magnetic-stripe cards and can
accommodate several different applications on a single card. It can also hold identification
information, which means no more shuffling through cards in the wallet to find the right one
-- the Smart Card will be the only one needed.

Smart cards can also be used with a smart card reader attachment to a personal computer to
authenticate a user. Smart cards are much more popular in Europe than in the U.S. In Europe
the health insurance and banking industries use smart cards extensively. Every German
citizen has a smart card for health insurance. Even though smart cards have been around in
their modern form for at least a decade, they are just starting to take off in the U.S.

DEBIT CARD:

Debit cards are also known as check cards. Debit cards look like credit cards or ATM
(automated teller machine) cards, but operate like cash or a personal check. 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.

Debit cards are accepted at many locations, including grocery stores, retail stores, gasoline
stations, and restaurants. You can use your card anywhere merchants display your card's
brand name or logo. They offer an alternative to carrying a checkbook or cash.

E-C HEQUE:

 An e-Cheque is the electronic version or representation of paper cheque.

 The Information and Legal Framework on the E-Cheque is the same as that of the
paper cheque’s.
 It can now be used in place of paper cheques to do any and all remote transactions.
 An E-cheque work the same way a cheque does, the cheque writer "writes" the e-
Cheque using one of many types of electronic devices and "gives" the e-Cheque to
the payee electronically. The payee "deposits" the Electronic Cheque receives credit,
and the payee's bank "clears" the e-Cheque to the paying bank. The paying bank
validates the e-Cheque and then "charges" the check writer's account for the check.

MOBILE BANKING:

The traditional brick and mortar is done from fixed branch premises, where the customer has to
go personally for carrying out business transactions. Through mobile banking the customer can
conduct a khost of banking transactions and inquiries through the mobile. Mobile banking can
also be carried through a mobile van with or without computerized banking system. The mobile
van moves from place to place on designated routes at designated hours and the customers can
transact their banking business, such as deposit, withdrawal, cheque collection , draft issuance,
pass book updates, etc. Mobile banking helps the customer to do his account management,
electronically which was earlier possible through internet banking. Mobile banking service is
divided into two categories:

(i) SMS Based: This service can be availed from any mobile having SMS based service.
The customer types the required keywords and PIN number and send the message to
the predefined number.
(ii) Menu Based: The customer downloads and installs the application on the mobile.
Whenever the customer wants any sort of information, he selects the application,
selects the request from menu and sends the request to the designated number. This
request is internally sent as SMS text. The central computer at bank sends back the
result to him.

Functionalities of Mobile Banking

Mobile banking functionalities have been divided into three parts. In public category, the
customer can openly access the exchange rates and interest rates of the economy as well as
the banks. In private category, the customer can check the account balances, can administer
the credit lines and can check the transactions. While conducting the transactions, mobile
banking helps in transfer of funds, and in paying invoices.

PHONE BANKING:

Phone banking or tele-banking refers to the authorized customers to use special telephone
number of the bank. This facility is available with the help of a voice response system (VRS).
This system basically accepts only TONE dialled input (For callers phone instruments for
dialing necessary numbers) and suitable voice response message/ information to the caller
(Kaptan and Choubey, 2003). Telebanking is of two kinds:

(i) Public Enquiry: General information about banking services can be obtained by
customers and non-customers like dialing a special enquiry number of the bank (call
centre) and desired information can be obtained.
(ii) Private Enquiry: This relates to account specific information and can be accessed
only by accountholder by disclosing personal identification number (PIN) and
customer ID.

Society for World-wide Inter-banking Financial Tele-communication (SWIFT):

It is a computerized message system which links banks around the world. In 1996, it was
updated from centralized system to decentralized system. SWIFT is a co-operative organization
formed by international banks and financial institutions. The member banks are shareholders of
this society. It provides guarantee to carry messages without any mutilation of the message. The
network provides round the clock service to participating banks. It aims to improve the speed and
service in order to prevent the individual bank setting up its own computerized messaging system
in opposition.

E-C OMMERCE: E-commerce refers as the transaction between the buyer and seller without
exchanging any papers or any meeting between two persons and largely using the internet.
Electronic commerce allows efficient transactions among customers, suppliers and partners for
cutting the transaction time and reducing the costs of doing business. The Ministry of Commerce
is supporting “Electronic Commerce (EC) / Electronic Data Interchange (EDI) for Trade” project
for facilitating international trade. The community partners of this project are various trade
regulatory and facilitating agencies like the Customs Department, the Directorate General of
Foreign Trade (DGFT), Airports, the Reserve Bank of India (RBI), Export Promotion
Organizations (EPOs), Exporters, Importers, Agents, Container Corporation of India (CONCOR)
and banks. The objective of this project is to (i) facilitate electronic delivery of services; (ii)
simplify procedures; (iii) provide 24 hour access to users with their partners; (iv) make procedure
transparent; (v) reduce the transaction cost and time; and (vi) introduce international standards
and best practices (Mathur, 2007).

ELECTRONIC DATA INTERCHANGE (EDI): EDI is the exchange of documents in the

standardized electronic form, between organizations, in automated manners, directly from a
computer application in one organization to an application in another. EDI can be compared and
contrasted with electronic mail. Email enables free-format textual messages to be electronically
transmitted from one person to another. EDI, on the other hand, supports structured business
messages (those which are expressed in hard copy, pre-printed forms or business documents) and
transmits them electronically between computer applications rather than between people (Kaptan
and Choubey, 2003).

Benefits of EDI:

1. EDI enables paperless transactions, reduces mailing cost, and reduces inventory holdings
because of fast filling of orders.
2. EDI facilitates higher quality and speed of information.
3. Results in lower processing costs.
4. Less reliance on human interpretation of data.
5. Creates innovative modern image.

any monetary transaction involves banks, the banks have to offers EDI services to their
customers. Banks that provide EDI services to their customers always have an advantage over
those who do not provide such services. It can be said that EDI can be used for automating the
existing processes, an opportunity to rationalize the procedures, reduce the costs and improve the
quality of services.
ELECTRONIC FUND TRANSFER (EFT): In the present age of integrated technology
consisting of computers and communication facility, distances need no longer be constraint in
providing customer service. EFT system hosted and operated by the RBI, permits transfer of
funds, from any account to any other account at any branch of any member bank in any other
city (Jain, 2006). In other words, electronic fund transfer facilitates the quick movement of
deposit money from one bank account of one customer to the bank account of another customer.
In this system, the sender and the receiver may be located at different cities. As an important tool
of customer services, EFT system addresses the needs of individual customers to transfer money
from one place to another within a day or two. Following are the participants of this scheme:

 Individual customer through their banks/ branches.

 Service branches of the bank.
 Reserve Bank of India (National Clearing Centre and deposit account of RBI)

E-PURSE: E-commerce has been marked as a steady trend towards growth of electronic mode
of payments against paper based instruments. European Central Bank (ECB) defined, “E-Money
as electronic store of monetary value on a technical device and used to making payments other
than the issuer without the involvement of bank accounts in the transaction but acting as a
prepaid bearing instrument”.

RISKS IN E-BANKING

E-banking improves a bank’s performance and competitiveness so that existing customers can
benefit from greater degree of convenience in effecting transactions. However, the banks are
facing with different levels of risks and expectations arising from electronic banking as
compared to traditional banking services.

Financial institutions have faced difficulties over the years for a multitude of reasons. The major
cause of serious banking problems continues to be directly related to lax credit standards for
borrowers and counterparties, poor portfolio, risk management that can lead to deterioration in
the credit standing of a bank’s counterparties. Banks need to manage the credit risk inherent in
the entire portfolio as well as the risk in individual credits or transactions. Banks should also
consider the relationships between credit risk and other categories of risks.

Various kinds of risks are involved with e-banking .Some of these risks are discussed below:

Operational risk: Due to the introduction of e-banking technology, operational risks are on the
rise and should be managed in a proper way. The bank needs to manage these risks in the areas
of security, data confidentiality, data system integrity, system availability and outsourcing. These
risks are closely linked to reputation risks and legal risks for banks as if the security breaches
than it will have damaging effects on the reputation of bank which could have the legal
consequences also. Security constitutes an important part in the operational risk of e-banking.
Threats can come from inside and outside the system. It includes “hijacking”, “sniffing” or
“spoofing” to retrieve and use confidential consumer information, add customer assets and
subtract customer liabilities or interrupt operations.

Human resource management must ensure that personnel involved in maintaining and operating
the websites and system are adequately trained in security practices. In order to have a proper
security system, there should be segregation of duties, means accessing and control should be
different. These practices should be regularly tested and reviewed by outside experts. Further, the
key to control transaction risk lies in adapting effective policies, procedures and controls to meet
the new risk exposures introduced by e-banking. These controls include division of duties, dual
controls, information security controls, processes, tools, expertise and testing of different
methods of e-banking.

Reputational Risk: Reputational risk is the risk related to negative opinion of the customers that
result in critical loss of funding of the customers. Reputational risk may arise due to action taken
by the bank itself or in response to action of the third parties. This risk mainly arises when the
system is not able to perform as expected. This risk may also arise from targeted attacks on
banks. For example, a hacker penetrating a bank’s website may alter to intentionally spread the
inaccurate information among the customers regarding bank’s products and services. So,
reputational risk is increased through e-banking if the bank fails to deliver secure, accurate and
timely services on a consistent basis.

Legal Risk: Legal risks also arise in e-banking. Banks engaging in electronic banking and
electronic money activities can face legal risks with respect to customer disclosures and privacy
protection. Customers who have not been adequately informed about their rights and obligations
may bring suit against a bank. Failure to provide adequate privacy protection may also subject a
bank to regulatory sanctions in some countries. Banks choosing to enhance customer service by
linking their internet sites to other sites can also face legal risks. A hacker may use the linked site
to defraud a bank customer; and the bank could face litigation from the customer.

Financial Risks: It is the constant and terrible fear of transactions errors causing a potential
monetary loss suffered by customers who perform online transactions. So, it is clear that e-
banking is actually lacking the assurance provided in traditional banking (Lee, 2009) and this is
due to the fact that online banking is considered as an innovation which is incompatible with
consumers’ habits (Kuisma et al., 2007).

Performance Risk: This is the risk caused due to malfunctioning of online banking websites.
Customers are often afraid that a disconnection from the Internet will occur while performing
electronic transactions that can lead to “huge” unexpected losses (Kuisma et al., 2007). This idea
was confirmed by Sathye (1999) who argued that Internet access is a crucial variable on which
the adoption of online banking depends and by Almogbil (2005) who succeeded to show that a
significant relationship exists between the speed of internet access and the acceptance of
electronic banking.

Privacy Risk: It refers to the potential loss due to fraud or a hacker compromising the security
of an online bank user (Lee, 2009). This risk is accentuated since the emergence of phishers
whose hobby consists of attempting to collect personal information, such as usernames,
passwords and credit card details. They not only lead to users’ monetary loss, but also violate
users’ privacy (Entrust, 2008).

Time Risk: It is the time loss; the lateness in receiving the payment or the difficulty of
navigation (Lee, 2009). This can be due to a disorganised website, to slowdownloadable pages
and long time needed to be a PC-literate.

Credit Risk: Credit risk is not increased due to loan originated through e-banking channel. But
sometimes bank may not be able to evaluate the credit worthiness of the customer due to remote
banking procedures. However, online loan origination and approval tend to make risk
management of lending tasks more difficult and challenging. The banks should always verify the
customers’ identity for online credit applications and also the monitoring and controlling the
growth, pricing, underwriting standards and ongoing credit quality of loans originated through e-
banking channels.

Other Risks: The use of electronic delivery channels for banking activities also has implications
for other traditional banking risks such as strategic and business risk, credit risk, liquidity risk,
market risk and foreign exchange risk.

Offering e-banking service to the customers involves strategic and business risk as the
sophisticated technology involved in e-banking causes uncertainties in business transactions. To
build a new customer base, the banks have to set up their prices very competitively. Investment
in technology involves significant start up costs. Adequate opinion of experts is needed.
Supervisors must ensure that management of banks are aware of these risks involved in e-
banking and carefully access their strategic options so that the added uncertainties may be
compensated by additional returns.

Principles to Manage Risks in E-banking

The Electronic Banking Group on the Basel Committee recommended certain principles to
manage the risks of electronic banking. The e-banking risk management principles identified in
the Report of EBG, fall into three broad, and often overlapping categories of issues. However,
these principles are not weighted by order of preference or importance. It is so because such
weighting might change over time. It is preferable to remain neutral and avoid such
prioritization.
 A. Board and Management Oversight (Principles 1 to 3):

1. Effective management oversight of e-banking activities;

2. Establishment of a comprehensive security control process;
3. Comprehensive due diligence and management oversight process for outsourcing relationships
and other third party dependencies.

B. Security Controls (Principles 4 to 10):

4. Authentication of e-banking customers;
5. Non-repudiation and accountability for e-banking transactions;
6. Appropriate measures to ensure segregation of duties;
7. Proper authorization controls within e-banking systems, databases and applications;
8. Data integrity of e-banking transactions, records, and information;
9. Establishment of clear audit trails for e-banking transactions;
10. Confidentiality of key bank information.

C. Legal and Reputational Risk Management (Principles 11 to 14):

11. Appropriate disclosures for e-banking services;
12. Privacy of customer information;
13. Capacity, business continuity and contingency planning to ensure availability of e-banking
systems and services;
14. Incident response planning.

IT development has propounded enormous benefits for banks, customers and the economy as a
whole. These benefits are in terms of productivity and profitability increase, cost reduction,
improvement in service quality, fast delivery of service through website, etc. E-banking has
increased the output and reduced the cost as both IT capital investment and IT human resource
have a positive relation to productivity and profitability. The time has come to move towards a
customer-centric approach, as customers should be given an opportunity to enjoy their share of
benefits stemming from IT development. But banks’ new strategy should not only be based on
customer centric approach but it should also enable transaction cost reduction, financial
inclusion, speedy and efficient services to customers. To make a real impact banks should
change the real mindset, better utilize their IT human resources and capabilities and move
towards more cost effective common or shared IT platforms.
BENEFITS/CONCERNS OF E-BANKING

BENEFITS OF E-BANKING

For Banks:

Price- In the long run a bank can save on money by not paying for tellers or for managing
branches. Plus, it's cheaper to make transactions over the Internet.

Customer Base- The Internet allows banks to reach a whole new market- and a well off one too,
because there are no geographic boundaries with the Internet. The Internet also provides a level
playing field for small banks who want to add to their customer base.

Efficiency- Banks can become more efficient than they already are by providing Internet access
for their customers. The Internet provides the bank with an almost paper less system.

Customer Service and Satisfaction- Banking on the Internet not only allow the customer to
have a full range of services available to them but it also allows them some services not offered
at any of the branches. The person does not have to go to a branch where that service may or
may not be offer. A person can print of information, forms, and applications via the Internet and
be able to search for information efficiently instead of waiting in line and asking a teller. With
more better and faster options a bank will surly be able to create better customer relations and
satisfaction.

Image- A bank seems more state of the art to a customer if they offer Internet access. A person
may not want to use Internet banking but having the service available gives a person the feeling
that their bank is on the cutting image.

For Customers:

Bill Pay: Bill Pay is a service offered through Internet banking that allows the customer to set up
bill payments to just about anyone. Customer can select the person or company whom he wants
to make a payment and Bill Pay will withdraw the money from his account and send the payee a
paper check or an electronic payment.

Other Important Facilities: E- banking gives customer the control over nearly every aspect of
managing his bank accounts. Besides the Customers can, Buy and Sell Securities, Check Stock
Market Information, Check Currency Rates, Check Balances, See which checks are cleared,
Transfer Money, View Transaction History and avoid going to an actual bank. The best benefit is
that Internet banking is free. At many banks the customer doesn't have to maintain a required
minimum balance. The second big benefit is better interest rates for the customer.
CONCERNS WITH E-BANKING

As with any new technology new problems are faced.

Customer support - banks will have to create a whole new customer relations department to
help customers. Banks have to make sure that the customers receive assistance quickly if they
need help. Any major problems or disastrous can destroy the banks reputation quickly an easily.
By showing the customer that the Internet is reliable you are able to get the customer to trust
online banking more and more.

Laws - While Internet banking does not have national or state boundaries, the law does.
Companies will have to make sure that they have software in place software market, creating a
monopoly.

Security: customer always worries about their protection and security or accuracy. There are
always question whether or not something took place.

Other challenges: lack of knowledge from customers end, sit changes by the banks, etc.
 CHAPTER:- 2
LITERATURE REVIEW
C K Sunith (2019) in the study titled “Customers satisfaction in E- Banking service” the
objective of the study attempts to identify the preferred method of banking transactions among
respondents and their satisfaction. The data was collected from research papers, journals etc, and
primary data is from questionnaire gathered from 172 respondents on proposed variables and
hypothesis test were conducted and convenience sampling methods were used. Core banking
solutions enable banks of ATM service, mobile and Internet banking solutions to the customers.
The needs and expectations of customer is an ever changing , their fears, resistances, and issues
are not resolved as and when required and real time solutions are not offered.

Dr. T. Santhiya Ran, A. Saravanan (2018) analyses the customers satisfaction towards
internet banking of all Banks has been elicited and analyzed. This part consists of demographic
profile of customers and bank transaction details and reasons for using internet banking has been
taken into consideration. The question of how attitude towards element of existing banking
service might influence to customer decision to used internet banking has not been investigated.
As client get additional and educated, obtaining insight concerning fashionable banking, via web
banking has registered as primary knowledge concern for all leading and future banks in Asian
nation.

Dr. Pratima Merugu, Dr. Krishna Mohan Vaddadi (2018) in the year studied title
“Customers satisfaction towards online banking with reference to Greater Visakhapatnam city”
the objective of the study is to identify the problems and factors influencing customer
satisfaction and improve the usage of online banking service. A survey of questionnaire of 24
items had been adopted from data of 200 respondents were collected from customers using
online banking in Visakhapatnam city and uses statistical tools such chi-square factor analysis
cross tabulation and frequency table to interpret the data. The success depends on the attitude,
commitment and involvement of employees at all level and their improvement and upgrading
online security for the growth of online banking.

Dr. T. Santhiya Ran, A. Saravanan (2018) in the title “A study on customer satisfaction
towards net banking with special reference to general banking customer in Coimbatore city” the
objective of the study to know about the factors influencing and customers satisfaction of net
banking service and service provided general banking sector. Questionnaire is collected form
online banking used by customers and convenient simple percentage method and customer
feedback and reference samples were collected by 70 number of respondents. As per the basic
assumption we consider only those customers who know how to use internet and access to
internet and provide internet banking service.

Dr.R. Manohar, V. Vimalasri, M. Manikandan (2017) in the year studied title “Customer
satisfaction on internet banking services with reference to Virudhunagar district” the online
banking or internet banking offered convenience of banking from anywhere, at any time. The
researcher has taken 120 respondents from Aruppukottai town through random sampling
technique and collected both primary as well as secondary data by using survey method and
through journals, books and websites. Internet banking is an integrals part of financial system, all
internet banking products and services hold strong position in terms of acceptance by the
customer and there is a positive change in internet banking to customer satisfaction.

Samsunisa. A (2016), aims to determine the factors that influence consumer adoption of Internet
banking services in Chennai city as well as to examine the relationship between adoptions of
Internet banking services with the demographic factors. The major instrument for data collection
was a Questionnaire that was designed on a 5-point Likert scale to be able to collect quantitative
data. The result shows that demographic variables such as Education, Place of residence and
Income play a positive role in adoption of banking technology. The study states that with the
shift in banking industry, the customers are ready to adopt Internet Banking since it provides
those values and benefits, saves time and efforts. After reviewing various research papers and
articles presented by various researchers, we hereby in our study try to explore the satisfaction
levels of the customers adopting E-Banking services such as Internet Banking. ATM services,
Mobile Banking, e-payment services etc.

Nandhini. P. V (2016), explains that internet banking provides better understanding of the
customers and their attitudes towards technology. The study is mainly based on primary data
through issuing questionnaires to 200 respondents who reside in Coimbatore. The tools used are
simple percentage analysis and chi-square analysis from the study, it is conducted that banker
adapt new technology to satisfy their customers and also to change the way of services for
attracting customers.

Koorses & Kavitha (2016), indicates that the banking sector is the dominant sector which is
considered as the key to savings for the local public and for the government, a source of GDP.
The study conducted is based on secondary data. The tools used in the study include trend and
compound Annual Growth Rate (AGR). The study states that E-Banking is both a boon and bane
and the banking sector can overcome all the challenges in the years to come.

Vikas Chauhan and Vipin Choudhary (2015), discusses the challenges and opportunities
associated with the internet banking in Indian contest. The discussion concludes that the concept
of internet banking is slowly gaining acceptance in Indian scenario and efforts are being made by
government agencies to make it more popular among consumers. The challenges such as security
risks, privacy risk, trust factor and less awareness among consumers about E-Banking or acting
as hurdle in the adoption of E-Banking facilities. Considering the challenges and risk related to
E-Banking, the government of India along with various government agencies is making an effort
to make E-Banking more safe, secure and reliable. Starts that the way banks used to operate has
changed due to advent of internet in banking institutions. The implementation of internet in
banking organization has modernized banks. Implementation of internet banking benefited both
the banks as well as consumer.
Uday Singh Rajput (2015), studies the customers satisfaction on online banking services and its
impacts on banks. This paper focuses on appraising the customer perception about EBanking
services. The data was collected through questionnaire and analyzed descriptively using
percentages and ANOVA. It was discovered that customers adopting E-Banking services such as
ATM, home banking, use of payment cards to mention but a few. It can be concluded that people
around 45% people have positive perception and are satisfactory with E-Banking. Frequently
used E-Banking services are ATM, bill payments and getting the bank statements.

Dr. M. Abdul Hakkeem and Y. Moydheen Sha (2015) in their analysis it was observed that
particular age group have used these services, the satisfaction of the customer majorly influenced
the convenience, awareness, and responsiveness. In the present technology society, most of the
banking customer prefer and switch to e-banking facilities. So the banker may improve their
services, loyalty to customers and their retention by increasing awareness of other age groups
and concentrating on the factors contributing customer satisfaction.

Vandana Tandon Khanna & Neha Gupta (2015) The study shows the factors such as
Technology acceptability, safety, availability, user friendliness and accessibility highly depends
on the demographic profile of the population size. Most of marketing decision in terms of
enhancing the effectiveness of delivery channels can be taken by considering these factors.

Unyathanakorn et. al. in their work focused on factors that affect customer satisfaction with
respect to online banking services provided by commercial banks. American Customer
Satisfaction Index and Thailand Customer Satisfaction Index models were used to evaluate
customer satisfaction, in their work.

Anis Ali et. al. have observed that bank employees lack empathy and responsiveness. Customers
are dissatisfied with nature and discriminatory behaviour of bank employees according to the
profession of the customers. However, they could not identify any significant difference between
the level of satisfaction of customers from rural and urban areas.
 CHAPTER:- 3
RESEARCH METHODOLOGY
Research problem statement:

The research problem is to study the customer satisfaction towards E-banking service.

Research objectives:

Primary objective

To study the customer satisfaction regarding E-banking service in Surat city.

Secondary objectives

To study the factor influences customer satisfaction towards E-banking.

To find the problems face by customer while deadline with online banking service.

To find out the benefits associated with E-banking usage.

To find out the challenges associated with E-banking usage.

Significance of the study

This study is needed to find out the E-banking services and its importance to customer as well as
to bank. In recent days, people are depending more on technology, because of advanced
technological up-gradation. Through internet banking, any inquiry or transaction is processed
without any reference to the branch at any time. providing internet banking is increasingly
becoming a “need to have” than a “nice to have” service. The net banking increases the speed of
response to customer requirements it will lead to greater customer satisfaction in handling a
larger number of transactions.

Limitation of the study

- The study is based on primary data also but the respondent chosen are limited and
random.
- Some of the respondents were hesitating to provide us true information so, it was difficult
to communicate with them.
- Very limited secondary data are found in this topic and mostly based on primary data.
Research Design:

In this study the Descriptive Research Design is used.

A descriptive research tries to discover answer to the questions who, what, when, where and
sometimes how. The researcher attempts to describe or define a subject, often by creating a
profile of a group of problems, people or events. Such studies may involve the collection of data
and the creation of a distribution of the number of times the researcher observes a single event or
characteristic or they may involve relating the interaction of two or more variables.

Descriptive research includes surveys and fact-finding enquires of different kinds. The major
purpose of descriptive research is description of the state of affairs as it exists at present. The
descriptive research design is selected for the study to learn the profile of the respondents,
presentation and description of data collection, and describe the customers satisfaction towards
e-banking services.

Source of data collection:

In this study the primary data source is used.

Primary Data are collected by using the survey method of data collection.

Data collection instrument:

The data collection instrument is undisguised structured questionnaire.

Close ended structured questionnaire is an instrument or guide used by an interviewer who asks
questions about a particular topic or issue. Some of the questions and their sequence are
determined in advance, while others evolve as the interview proceeds.

Sample size:

The sample size for this study is 100 customer of banking sector.
 CHAPTER:-4
DATA ANALYSIS & INTERPRETATION
 1. Name:-

2. Gender

Gender Customers Percentage

Male 57 57%

Female 43 43%

Table No:- 4.1

Male

Female

Chart No:- 4.1

INTERPRETATION:-

The above results shows that there are 57 males and 43 females out of 100 Customers.
 3. Marital status

Marital status Customers Percentage

Married 47 47%
Unmarried 53 53%
Table No:- 4.2

Marital status of Customers

47
53 Married
Unmarried

Chart No:- 4.2

INTERPRETATION:-

The above results shows that there are 47 Married and 53 Unmarried out of 100 customers.
 4. Age

Age Customers Percentage

Below 25 years 43 43%
Between 25-35 years 34 34%
Between 35-45 years 19 19%
Above 45 years 4 4%
Table No:- 4.3

Age of Customers

45
40
35
30
25
20 43
15 34
10 19
5
0 4

Below 25 years Between 25-35 Between 35-45 Above 45 years yearsyears

Chart No:- 4.3

INTERPRETATION:-

From above results shows that 43% respondents are Below 25years, 34% respondents are
between 25-35years, 19% respondents are between 35-45years, and 4% respondents are Above
45years.
 5. Educational qualification

Educational qualification Customers Percentage

Matriculation 15 15%
Pre University 17 17%
Graduation 36 36%
Post Graduation 32 32%
Table No:- 4.4

Chart No:- 4.4

INTERPRETATION:-

The above results shows that 15% customers are have to educated Matriculation, 17%
customers are Pre University, 36% customers are Graduated, and 32% customer are
Post Graduated.
 6. Occupation

Occupation Customers Percentage

Professional 43 43%
Businessmen 22 22%
Govt. service 11 11%
Student 18 18%
Others 6 6%
Table No:- 4.5

Occupation of Respondents

6
18
43 Professional Businessmen Govt. service St
Others
11

22

Chart No:- 4.5

INTERPRETATION:-

The above results show that 43% customers are have occupation Professional, 22% customers
are Businessmen, 11% customer are Govt. service, 18% customers are students and 6%
customers are Others.
 7. Monthly income

Monthly income Customers Percentage

Less than 10000 23 23%
10000-15000 17 17%
15000-20000 23 23%
Above 20000 37 37%
Table No:- 4.6

Monthly income of Customers

40
35
30
25
20
37
15 23 23
10 17
5
0

Less than 10000-15000 15000-20000Above 20000

10000

Chart No:- 4.6

INTERPRETATION:-

The above results show that 23% customers have monthly income less than 10,000, 17%
customers are have monthly income 10,000-15,000, 23% customers are have monthly income
15,000-20,000 and 37% Customers are have monthly income above 20,000.
 8. How long have you been using the internet banking service?

Particular Customers Percentage

Less than 1 month 19 19%
1 to 6 months 26 26%
6 to 12 months 24 24%
More than 1 year 31 31%
Table No:- 4.7

Chart No:- 4.7

INTERPRETATION:-

The above results show that 19% customers are using internet banking service less than 1
month, 26% customers are using internet banking service 1 to 6 months, 24% customers
are using banking service 6 to 12 months, and 31% customers are using internet banking
service more than 1 year.
9. By which mode do you use internet banking?

Particular Customers Percentage

Computer 6 6%
Mobile 88 88%
Other source 6 6%
Table No:- 4.8

Customer use mode of internet

banking

66

Computer Mobile
Other source

88

Chart No:- 4.8

INTERPRETATION:-

The above results show that 6% customers are using computer for internet banking, 88%
customers are using mobile for internet banking, and 6% customer are using other source.
The most of customers are using mobile for internet banking.
10. How frequently do you use telephone banking service per month (for
example, balance inquiry, fund transfer between account)?

Particular Customers Percentage

Less than 1 14 14%
1 to 3 times 30 30%
3 to 8 times 34 34%
8 to 12 times 12 12%
Over 12 times 10 10%
Table No:- 4.9

Chart No:- 4.9

INTERPRETATION:-

The above result show that 14% customer using telephone banking less than 1 time per
month, 30% customers are using telephone banking 1 to 3 times per months, 34%
customers are using telephone banking 3 to 8 times per months, 12% customers are using
telephone banking 8 to 12 times per months, and 10% customers are using telephone
banking over 12 times per months.
11. Which of the following e- banking service are you aware of ?

Particular Customers Percentage

Internet banking 24 24%
Mobile banking 32 32%
Debit card 15 15%
Credit card 5 5%
ATM 23 23%
Other 1 1%
Table No:- 4.10

Chart No:- 4.10

INTERPRETATION:-

The above results show that 24% customers are aware about internet banking, 32%
customers are aware about mobile banking, 15% customers are aware about debit cards,
5% customers are aware about credit cards, 23% customers are aware about ATM, and
1% customer aware about other e-banking services.
12. Which type of e banking service you want to use?

Particular Respondents Percentage

Transfer fund online 27 27%
Online Purchase 25 25%
Online Payment 28 28%
Regular checking of bank Statement 13 13%
Request any card or cheque book service 7 7%
Table No:- 4.11

Types of e-banking service customers

wants to use
Transfer fund online

7
13 27 Online Purchase

Online Payment
28
25
Regular checking of bank Statement
Request any card or cheque bookservice

Chart No:- 4.11

INTERPRETATIONL:-

The above results show that 27% customers are wants to use e-banking service for
transfer fund online, 25% customers are prefer e-banking service for online purchase,
28% customers are prefer e-banking for online payments, 13% customers are prefer e-
banking service for regular checking of bank statement, and 7% customers are prefer e-
banking service for request any cards or cheque book service.
13. Which type of problem are you facing while using e-banking service?

Particular Customers Percentage

More time taking in fund transfer 16 16%
Slow speed in working 32 32%
Not easy for non - educated person 52 52%
Table No:- 4.12

Chart No:- 4.12

INTERPRETATION:-

The above results show that 16% customer are face the problems while used internet
banking like more time taking in fund transfer, 32% customers are face the problems
while used internet banking like slow speed in working, and 32% customers are face
problems like not easy for non educated person.
14. Which of the following benefits accrue to you while using e-banking service?

Particular Customers Percentage

Easy fund transfer 20 20%
Time saving 28 28%
Inexpensive 20 20%
Easy Processing 27 27%
Other Benefits 5 5%
Table No:- 4.13

Chart No:- 4.13

INTERPRETATION:-

The above results show that 20% customers benefits while using e-banking service like
easy fund transfer, 28% customers are benefits of time saving, 20% customers are
benefits of inexpensive, 27% customers are benefits of easy processing, and 5%
customers are benefits of others e-banking service.
15. Which of the following factors influence you the most to use internet banking
service?

Factors Strongly agree Agree Disagree Strongly disagree

All time availability 75 22 3 0
Ease of use 56 39 4 1
Security 38 50 11 1
Direct access 31 54 11 4
Percentage 50% 41% 7% 2%
Table No:- 4.14

Factor influence to use e-banking

service
75
80
70
56 54
60 50
50 38 Strongly agree
39
40 Agree Disagree
31
30 22 Strongly disagree
20 11 11
10 3 0 4 1 1 4
0
All timeEase of useSecurity Direct
availability access

Chart No:- 4.14

INTERPRETATION:-

The above results show that the factors are most influence to use the internet banking
service. 50% customers are strongly agree, 41% customers are agree and only 7%
customers are disagree with the factor influence to use internet banking service. So most
of the customers are satisfied with factor influence to use internet banking service.
 16. To what extent are you satisfied with e-banking services ?

Factor Highly satisfied Satisfied dissatisfied Highly

dissatisfied
Fast transfer time 62 33 4 1
Security 53 40 7 0
Availibility 53 40 6 1
Easy to use 61 32 4 3
Responsiveness 38 47 15 0
Accessibility 41 48 9 2
Percentage 51% 40% 8% 1%
Table No:- 4.15

Satisfied with e-banking service

70 62 61
60 53 53
47 48
50 40 40
38 41
40 33 32
30 Highly satisfied
20 15 Satisfied
10 7 6 9
4 4
0 1 0 1 3 0 2 dissatisfied
Highly dissatisfied

Chart No:- 4.15

INTERPRETATION:-

The above results show that 51% customers are rating highly satisfied of internet banking
service. 40% customer are rating satisfied, 8% customers are rating dissatisfied and only 1%
customers are rating highly dissatisfied of internet banking service. So most of the customers are
satisfied with the internet banking service.
 CHAPTER:-4
FINDING AND CONCLUTION
 Findings
From the study conducted it is the most of the customers are aware of e-banking service.

Here I found that 57% of Male and 43% of Female customer are using e-banking service out of
100 customers.

From this study I found the 88% of customer using mobile for the e-banking service.

The younger customer like age below 25 years and between 25-35 years customers are more
using the e-banking service rather than age above 45 year customers.

In this study the 34% customers are used 3 to 8 times telephone banking service per month. Only
10% customers are using over 12 times per month.

Through this study I found that 32% of customer are aware about Mobile banking and 24% of
customer are aware about internet banking.

The most of customer are want to use e-banking service for online payment, transfer fund online
and online purchase.

The non-educated person are facing problems while using e-banking service.

Here I found that benefits of e-banking service are time saving, easy fund transfer.

Here I found that 50%of customers strongly agree and 41% of customers are agree with the
security, all time availability are influence to use internet banking.

Here 50% of customer are rating strongly satisfied and 40% of customer are rating satisfied. So
that the 90% of customer are satisfied out of 100 customer in e-banking service.
 Conclusion
Some of the general problems faced by the respondents regarding the use of online banking
services are given.

Most of the customers expect helpline facilities. Most of the online banking users are not well
educated about online banking usage and security precautions.

Customers may have fear about risk associated with online banking. More complicated
formalities and procedures are adopted.

Electronic Banking technology is useful to customers as well as banks and other organizations.
To increase efficiency, service quality of banks, safety, integrity, E-Banking can be used in a
rightful way.

Internet and mobile banking can be used only if the customers have knowledge about the usage
of internet and mobile otherwise it is not possible so bank should take measures regarding this
problems.

The Form of the above analysis it can be concluded that the changes happening in the field of
banking services during. This pandemic need to create more awareness among the public and
digital platform usage by the public can become a greater solution to the non-flexibility
problems.

To study the changes happening in the field of banking due to covid19.To analyze customer
perception towards the usage online banking during pandemic in. To know their satisfaction and
opinion about banking services.
 Bibliography

https://www.researchgate.net/
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http://www.iosrjournals.org/
https://doi.org/10.5539/ass.v12n5p139
http://en.wikipedia.org/wiki/Online_banking#Features
http://www.rbi.org.in/Scripts/bs_viewcontent.aspx?Id=1660.
http://www.iacis.org/iis/2006_iis/PDFs/Changchit.pdf
http://www.rediff.com/money/2006/nov/17mc.htm.
http://www.sooperarticles.com/business-articles/e-business-articles/internet-banking-becoming-need-
have-service-42385.html
 Annexure

QUESTIONNARIE

Dear Bank customer, I am Kirti Patel, I am student of MBA (Finance) at Department of Business
and Industrial Management, Surat. I have designed this questionnaire to collect some useful
information. The main purpose of this questionnaire is to collect information about “A study on
Customer Satisfaction towards E - Banking Service”. Your response will be treated
confidentially and will be used only for academic purpose.

Name:

1. Gender

i) Male ( )

ii) Female ( )

2. Marital status

i) Married ( )

ii) Unmarried ( )

3. Age

i) Below 25 ( )

ii) Between 25-35 ( )

iii) Between 35-45 ( )

iv) Above 45 years ( )

4. Educational qualification

i) Matriculation ( )

ii) Pre University ( )

iii) Graduation ( )

iv) Post Graduation ( )

v) Others ( )
5. Occupation

i) Professional ( )

ii) Businessmen ( )

iii) Govt. service ( )

iv) Student ( )

v) Others ( )

6. Monthly income

i) Less than 10000 ( )

ii) 10000-15000 ( )

iii) 15000-20000 ( )

iv) Above 20000 ( )

7. How long have you been using the internet banking service?

I. Less than 1 month

II. 1 to 6 months
III. 6 to 12 months
IV. More than 1 year

8. By which mode do you use internet banking?

I. Computer
II. Mobile
III. Other source

9. How frequently do you use telephone banking service per month (for example,

balance inquiry, fund transfer between account)?

I. Less than 1
II. 1 to 3 times
III. 3 to 8 times
IV. 8 to 12 times
V. Over 12 times
10. Which of the following e- banking service are you aware of ?

I. Internet banking
II. Mobile banking
III. Debit card
IV. Credit card
V. ATM
VI. Any others

11. Which type of e banking service you want to use ?

I. Transfer fund online

II. Online Purchase
III. Online Payment
IV. Regular checking of bank Statement
V. Request any card or cheque book service

12. Which type of problem are you facing while using e-banking service?

I. More time taking in fund transfer

II. Slow speed in working
III. Not easy for non - educated person
IV. Other

13. Which of the following benefits accrue to you while using e-banking service ?

I. Easy fund transfer

II. Time saving
III. Inexpensive
IV. Easy Processing
V. Other Benefits

14. Which of the following factors influence you the most to use internet banking service?

Factors Strongly agree Agree Disagree Strongly

disagree
All time
availability
Ease of use
Security
Direct access
15. To what extent are you satisfied with e-banking services ?

Factor Highly satisfied Satisfied Dissatisfied Highly

dissatisfied
Fast transfer time
Security
Availibility
Easy to use
Responsiveness
Accessibility