A study on

“CUSTOMER AWARENESS TOWARDS E BANKING”

SUBMITTED BY

Mr. GOPI CHAND

 CONTENTS OF THE SYNOPSIS

1. Introduction of the Topic

2. Need for the Study

3. Scope of the Study

4. Objectives of the Study

5. Nature of the Company selected for Research

6. Review of Literature

7. Research Methodology
 INTRODUCTION

Now a day’s information technology plays a vital role in banking sector. Day by day
increasing change in technology world, it leads to improve e-banking services of various banks.
Traditional branch model of bank is now changing into new form of e-banking services like
kiosk marketing machine, coin vending machines of SBI.

It provides various advantages to customer of various banks.Now-a-days people are educated

more than olden days, today human lives becomes machine oriented and they don’t have enough
time to visit bank branch than ever before. E-Banking means providing banking products and
services through electronic delivery channels like ATM,Internet banking,Telephone banking and
other electronic delivery channels.SBI has over 4500 ATM centres in India approximately.
Automated Teller Machine (ATM) is electronic computerised telecommunication device that
allows a customer to directly use a secured method of communication to access their bank
accounts or make cash withdrawals and other services. Internet banking highly useful to the
customer one who have computer with internet connection, they need not visit bank branch for
their business transactions. Simply they can transact anywhere, anytime if they have internet
connection. By dialing the telebanking number customer can get various facilities like cheque
book request, balance inquiry etc.

State bank of India introduced coin vending machine, kiosk marketing machine for
their customers to get their services quickly without delay. Apart from these services, SBI
provide SBI e-tax, demateservices-pay, State bank mobicash. Banks today operate in a highly
globalised, liberalized, privatized and a competitive environment. Indian banking industry has
witnessed a tremendous developments due to sweeping changes that are taking place in the
Information technology. Electronic means of banking includes electronically operated devices
such as computers, ATMs and in addition internet, telephone, mobile handsets and other means
are also used as part of e-banking. An essential feature of e-banking is that it provides round-the-
clock access to banking operations.

In India, e-banking is of fairly recent origin. Slowly but steadily, the Indian customer is moving
towards e-banking. But they are very concern about security and privacy of e-banking. The credit
of launching internet banking in India goes to ICICI Bank. ICICI bank was the first bank which
offered this delivery channel, by kicking off its online services in 1996. Other private sector
banks like Citibank, IndusInd bank and HDFC and Timesbank (part of HDFC bank) started
offering internet services in 1999. State Bank of India launched its services in July 2001. Other
public sector banks like Bank of Baroda, Allahabad Bank, Syndicate bank and Bank of India also
rolled its services during the same time.

Banks operate in a highly globalised, liberalized, privatized and a competitive environment.

Indian banking industry has witnessed a tremendous developments due to sweeping changes that
are taking place in the Information technology. In today’s scenario most of banks offer services
through the electronic medium called E-banking. E-banking is creating lot of changes in the
banking industry. Though all banking sector are providing e-banking, the main question is
whether the customers are aware of all the e-banking services offered by their banks. So, it
becomes necessary to study the customer awareness level towards e-banking services. The
present study is a modest attempt made to know customer awareness on

e-banking services provided by the banks in Coimbatore city. The major tool used for the data
collection is questionnaire. For the purpose of the study, required primary data have also been
collected along with secondary data. A standard methodology has been adopted and various
statistical tools have been used to extract the output.
 NEED FOR THE STUDY

SBI introduced ATM facility since the last four-five years. As the use of ATM is
increasing day –by-day, it is important to study the customer preference towards use of ATM
services in Kumbakonam city. This study is one of such an attempt. Identification of information
needed to solve the problem, Selection or development of instruments for gathering the
information, Identification of target population and determination of sampling procedure,Design
of procedure for information collection, Collection of information, Analysis of information,
Generalizations and/or predictions.
 SCOPE OF THE STUDY
With the modernization and globalization the city has adopted all the changes and now all the
banks have started adopting the technologies in banking. So, it becomes necessary to

study the nature, growth and extent of E-banking services

provided by the banks in Coimbatore City. The present study

is a modest attempt to know about customers’ awareness regarding e-banking services provided
by banks in Coimbatore.

So the findings will help the banking sectors to create effective awareness towards their e-
banking services.
 OBJECTIVES OF THE STUDY
• To evaluate the awareness of E-Banking among the customers of SBI.

• To measure the customer satisfaction in E-Banking services provided by SBI.

• To study the most preferred E-Banking service offered by SBI

• To know which age group of customers is using different e-banking facilities.

• To know the cause why customers are not using internet banking.
 NATURE OF THE COMPANY SELECTED FOR RESEARCH

The purpose of this study is to create customer awareness & to find out what they
most preferred e-banking services of banks. The study has been done in Hyderabad City
comprising a sample size of 200.After the data collection, researcher has identified which
commercial bank provide better service with regards to e-banking services to customers and also
identified satisfaction level of customer view about internet banking website of banks. The result
of this analysis is showed that mean age of e-banking users is 0.795and 0.205 respectively and
the respondents were mostly men as compared to women. The data analysis shows that age,
educational qualification, occupation, income level of customer are significant factor that decide
usage of e-banking services of various banks in the study area.
 REVIEW LITERATURE
Abou-Robich, Moutaz (2005)studied how to analyse comfort levels and attitude of
users towards online banking facilities. The findings resulted that there is a correlation between
attitude towards e-banking and feeling of security with regard to their demographic variables.

Isern, Jennifer (2008) pointed out that a positive relationship between the level of financial
infrastructure and the level of competition and a negative relationship between the degree of state
ownership in a banking sector and the level of competition.

Reynolds, John (2007) said that 2006 e-banking technology services industry customer loyalty
survey data results in order to improve marketing resource allocation for corporate e- banking
products and services.

Huang, Haibo (2005) reveals that the successful introduction electronic money and e- banking
services depends mainly on people acceptance.The major finding is that although e- banking
customers more or less have some common characteristics, they differ across different types of
e-banking services.

Taft, Jeanette (2007) pointed out that Technology Acceptance Model (TAM) as applied to a
specific type of technology: e-banking.They suggested that e-banking – prior training, perceived
ease of use of e-banking technology.

Jeon, Kiyong (2014) have said that consumer prefer larger banks in U.S.Because they has to
reduce their transportation cost by way of larger banks have multiple ATM centre’s across the
country.

Lee, Jihyun (2003) examined that to identify whether customer intention affecting to use online
financial services.The effects of attitude toward behaviour,subjective norm were examined.
Demographic variables were included as control variables.

Ding, Xin (2007) reveals that consider for research consumer behaviour on internet in the last
years.The findings conclude that customer behaviour from self-service, Service quality and
experience design perspectives.

Wamalwa, Tom (2006) said that whether internet banking strategies were aligned with the
bank’s core business based or not identified.

Featherman, MauricioSanchez (2002) studied that perceived risk inhibited consumer adoption
intentions as well as perception of the usability, usefulness of online payment.

Bayles, MichelleEsther (2004) have said that investigating factor contribute their decision to
bank online, frequency of banking activities.

Massad, Nelson (2003) contributed at a theoretical level by providing deeper understanding of

the transactions between customers and service providers.
Yee Yen, Yuen (2011) have said that comparison between factors affecting consumer acceptance
of internet banking services between developed and developing countries.

Siregar, DonaD (2004) investigate that the relative importance of different factors influence bank
decision on going public over consolidating with other banking organisations.Many banks
experienced consolidation through merger acquisitions (M&A).

Bauer, Keldon.J (2002) examined that bankers and consumers are both interested in the potential
for internet banking. Thefindings show that banks too have been developing their infrastructure
to address what they perceive as a growing demand for online services.

Yousafzai, Shumaila Yakub Khan (2005)has said that to develop aconceptual model that
determines how intentions towards the use of internet banking are formed and to what extent
they are related to the actual use of internet banking.

Ubadineke, Francis.N (2009) indicated that advances ininformation technology and

telecommunications are resulting in new delivery channels for bank products and services in the
developing countries.
 RESEARCH METHODOLOGY

The data collected for the research was in the form of written as well as verbal information.

1) PRIMARY DATA- The information about the selected bank is gathered from the discussion with the
employees of bank. For data collection, observation and interview method is used. Interview of manager
can be conduct to get information.

2) SECONDARY DATA- The secondary data was collected from summary reports, e-mails, circulars,
books and an annual report of the banks.

3) Data Analysis- Researcher has selected SBI and SBI in different region as a sample for study. In above
study

Data Collection: Primary Data is collected directly by interacting with the customers by using structured
questionnaire method. Secondary Data was collected from the existing data sources, Catalogues, Internet,
Magazines and Newspapers.

The Population

The population consists of Coimbatore City.

Sample Size and Sampling Method: For purpose of the

study, non-probability sampling technique has been adopted.

90 respondents who are using e-banking services were selected

for the study.

Statistical Tools:

• Frequency Distribution

• T-test

• ANOVA

• Post-Hoc test

Level of significance – 5%