A COMPARITIVE STUDY OF CUSTOMER SATISFACTION ON E-BANKING

SERVICES (WITH SPECIAL REFERENCE TO HDFC AND ICICI BANK)

PROJECT REPORT SUBMITTED TO THE

UNIVERSITY OF MADRAS

in partial fulfilment of the requirements for the award of degree of

BACHELOR OF COMMERCE IN BANK MANAGEMENT

By

SHRIVALLI.T.PRABHU

Register No: 12/S303052

Under the guidance and supervision of

Mrs. N. Renukadevi, M.COM, M.PHIL.

DEPARTMENT OF BANK MANAGEMENT

ETHIRAJ COLLEGE FOR WOMEN (AUTONOMOUS)

(SELF-SUPPORTING)

CHENNAI – 600 0080

MARCH 2015

1
 ETHIRAJ COLLEGE FOR WOMEN (AUTONOMOUS)

(SELF-SUPPORTING)

DEPARTMENT OF BANK MANAGEMENT

ETHIRAJ SALAI

CHENNAI 600 008

CERTIFICATE

I certify that the project entitled ‘‘A COMPARITIVE STUDY OF CUSTOMER SATISFACTION
ON E-BANKING SERVICES(WITH SPECIAL REFERENCE TO HDFC AND ICICI BANK),
submitted for the degree of Bachelor of Commerce in Bank Management by Ms.
SHRIVALLI.T.PRABHU, is the record of research work carried out by her during the period
NOVEMBER-MARCH 2015 under my guidance and supervision, and that this work has not formed
the basis for the award of any degree.

(SIGNATURE OF CANDIDATE)

MRS.N.RENUKA DEVI, M.Com, M.Phil Dr. MRS.T.USHA PRIYA, M.Com M.Phil, Ph.D

SENIOR ASSISTANT PROFESSOR HEAD OF THE DEPARTMENT

STATION:CHENNAI

DATE:

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 ACKNOWLEDGEMENT

I take this opportunity to express my deep sense of gratitude to all those who have
contributed in making my research report a success. Every project is a blend of efforts and
learning on the part of students, while its knowledge and experience of the experts in their
fields.

I would like to thank the Almighty and my parents who stood by me and gave the best
support in making the project a success. I would like to express my sincere thanks to
Dr.Mrs.T.Usha Priya (Head of the Department) for this knowledgeable opportunity. I would
like my project guide Mrs.N.RenukaDevi (Senior Asst. Professor) for her continuous
support and guidance during my project.

I extend my profound gratitude to all the people who provided the necessary information,
guidance, appreciation and corrected me in my project. I would like to thank the almighty and
my parents who stood by me and gave the best support in making the project a success

SIGNATURE OF THE CANDIDATE

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 DECLARATION

I declare that the project entitled “A Comparitive Study Of Customer

Satisfaction on E- Banking Services (with special reference to HDFC and

ICICI bank)” submitted by me for the Degree of Bachelor of Commerce In

Bank Management is the record of research work carried out by me during the

period of November-March 2015 under the guidance of Mrs. N. RenukaDevi

(M.COM, M.PHIL) and has not formed the basis for the award of any Degree.

PLACE:

DATE: SIGNATURE OF THE CANDIDATE

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 CONTENTS
CHAPTER TITLE PAGE
NUMBER NUMBER

Certificate

Acknowledgement

Declaration

List of tables

List of figures

I Introduction 1

II Review of literature 14

III Analysis and 23

Interpretation
IV Conclusion 38

Bibliography

Appendix

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 LIST OF TABLES
TABLE TITLE PAGE
NUMBER NUMBER
3.1 Table showing demographic classification 23
based on Gender
3.2 Table showing demographic classification 24
based on Age
3.3 Table showing demographic classification 25
based on Occupation
3.4 Table showing demographic classification 26
based on Income
3.5 Table showing Users of e-banking services 27

3.6 Table showing necessity of e-banking 28

3.7 Table showing bank from which the services 29

are availed
3.8 Table showing frequency of availing these 30
services
3.9 Table showing reasons for selecting the 31
particular bank
3.10 Table showing type of e-banking service 32
used
3.11 Table showing qualities preferred while 33
using e-banking services
3.12 Table showing problems faced while using 34
e-banking services
3.13 Table showing measures adopted to solve 35
these problems
3.14 Table showing satisfaction with e-banking 36
services
3.15 Table showing rating of e-banking service 37

LIST OF FIGURES
FIGURE TITLE PAGE
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NUMBER NUMBER
3.1 Figure showing demographic classification based on 23
gender
3.2 Figure showing demographic classification based on 24
age
3.3 Figure showing demographic classification based on 25
occupation
3.4 Figure showing demographic classification based on 26
income
3.5 Figure showing users of e-banking services 27

3.6 Figure showing necessity of e-banking 28

3.7 Figure bank from which services are availed 29

3.8 Figure frequency of availing these services 30

3.9 Figure reasons for selecting the particular bank 31

3.10 Figure type of e-banking service used 32

3.11 Figure qualities preferred while using e-banking 33

services
3.12 Figure problems faced while using e-banking services 34

3.13 Figure measures adopted to solve these problems 35

3.14 Figure Satisfaction with e-banking services 36

3.15 Figure rating of e-banking service 37

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 CHAPTER- I
INTRODUCTION

CHAPTER-I

INTRODUCTION

WHAT IS E-BANKING?

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 It is defined as the automated delivery of new and traditional banking products and
services directly to customers through electronic communication channels. It includes the
systems that enable financial institutions, individuals, customers or businessmen to access
accounts, transact or obtain information on financial services and products through a public
or private networks. Customers can access e-banking services using PC, ATM or touch
phones. Traditional banks offer different services to their customers like money deposits,
granting loans to individuals and companies and providing different banking services to
customers. But e-banking uses internet to deliver traditional banking services to their
customers such as opening accounts, transferring funds and electronic bill payment. E-
banking services are delivered to customers through internet and web using HTML
(Hypertext Mark up Language). The heart of e-banking application is the computer system
which includes web servers, data base management system and web application programs
that can generate HTML pages. One main concerns of e-banking is security. Without
confidence in security, customers are not willing to use the public networks to view their
financial information online and conduct financial transactions. Banks with e-banking
services offer several method to ensure high level of security like: identification and
authentication, encryption and firewalls.

EVOLUTION OF E-BANKING
The technology in banking started with the use of punched card machines. The use of
technology was limited to book keeping of the various banks. It further developed with the
birth of online real time system and vast improvement on telecommunication during 1970’s
and 80’s. It resulted in a revolution in the field of banking with the concept “convenient
banking”. The 1990’s saw the birth of distributed computing technologies. The intense and
increased competition forced banks to rethink their way of operating in the business. They
had to improve and reinvent the products and services to make them more cost effective and
beneficial. Technology in the form of e-banking has made it possible to find alternate
banking practices at lower costs. More people are using electronic banking services and
products and hence banks must be able to offer these customer services that allow them to do
the banking job by electronic means. New services and products are emerging that are set to
change the way we look at money and monetary system.

NEED FOR E-BANKING

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 One has to approach the bank in person to withdraw cash, deposit a cheque or request
a statement of accounts. In e-banking any transactions or enquiry is processed online without
any reference to the branch at any time. E-banking is more of a norm than an exception in
many developed countries due to the fact that it is the cheapest way of providing banking
services. Banks have been using e-banking technology to improve services and efficiency.

FEATURES OF E-BANKING
There are various features in e-banking. They may vary from bank to bank, but usually
include the following.

 Easy online applications for all accounts including personal loans, mortgage etc..
 24 hour account access
 It brings efficiency in CRM
 Makes bill payments quick and easy
 Introduces new and innovative services and products
 Enables fund transfers of banks from one place to another
 Exchange of statistical information among banks is easy
 Enables foreign exchange operations
 Brings door to door service
 Involves evolutionary trends at global level

BENEFITS OF E-BANKING

To banks:
E-banking not only allows the customer to have full range of services but also allows
them some services not offered at the branches. A person can get various information, printed
forms and applications via internet and be able to search necessary information efficiently
rather than waiting in long queues and asking a teller. With more better and fast options a
bank will be able to create better customer satisfaction.

In long run banks can save money by not paying to tellers and managing branches. It’s
cheaper to make transactions over the internet. E-banking allows banks to reach a whole new
market as there are no geographic boundaries. It also provides a field for small banks who

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want to add to the customer base. Banks can become more efficient by providing e-banking
access to customers and there will be very less paper work.

For customers
E-banking provides customer the control over every aspect of managing bank accounts.
Customers can buy and sell securities, check stock market information, check currency rates,
balances and see if cheques are cleared, transfer money, view transaction history etc..

Another benefit is e-banking is free. It only demands for a internet connection. In many banks
the customer does not have to maintain minimum balance. The interest rates is also a benefit.

“Bill pay” is another service offered by e-banking that allows the customer to make online
payment of any bill to anyone. Customer can select the person or company to whom the
payments are to be made, the bill pay will withdraw the money from his account and send the
payee a paper cheque or electronic payment.

E-banking can ease life:

Banks are trying to make life easy. Not just by bill payment, we can also make
investments, shop, buy tickets, plan holidays etc... A source from ICICI bank tells “e-
banking base has been growing at exponential pace over last few years. Currently around 85
to 90% of the bank’s customer base is registered for e-banking. Various services can be
availed in e-banking. They are:

 Bill payment services

 Fund transfer
 Railway pass
 Investing through e-banking
 Recharging the prepaid phone bill
 Shopping at finger tips

Internet banking vs. Traditional banking

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The basic difference between internet and traditional banking is that in traditional banking the
customer has visit the branch in person for the basic banking needs. In internet banking these
banking operations can be performed through PC’s without physically visiting the bank
branch. Customer is not put to inconvenience of travelling, and time saved can be effectively
used in productive ways.

Mechanics of e-banking

The entire mechanics of e-banking is as follows.

 Access the bank’s website

 Click the option which provides internet banking
 Enter the user id and password
 Perform the required transaction
 Logout the account

Drawbacks of e-banking

Even though e-banking is becoming an easy medium for banking activites, it has certain
drawbacks. They are:

 Needs a computer
 Restricted use
 Unreliable communication facility
 Slow browsing
 Lack of trust
 Absence of validity
 Safety problems

Company Profile

HDFC

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 HDFC Bank Limited (HDFC Bank) is a banking company.  The Bank is engaged in
providing a range of banking and financial services, including commercial banking and
treasury operations. The Company’s subsidiaries include HDFC Securities Limited and HDB
Financial Services Limited. The Bank operates in four segments: Treasury which consists of
net interest earnings from the Bank’s investment portfolio, money market borrowing and
lending; Retail Banking provides financial services of various deposit products, of retail
loans, credit cards, debit cards, depository, bill payments and several transactional services;
Wholesale banking financial  institutions and Government business group offers commercial
and transaction banking products to financial institutions, mutual funds, public sector
undertakings, central and state Government departments,  and other banking business include
income from banking activities, such as credit cards, debit cards and primary dealership
business.

The Housing Development Finance Corporation Limited (HDFC) was amongst the first to
receive an ‘in principle’ approval from the Reserve Bank of India (RBI) to set up a bank in
the private sector, as part of RBI’s liberalisation of the Indian Banking Industry in 1994. The
bank was incorporated in August 1994 in the name of ‘HDFC Bank Limited’, with its
registered office in Mumbai, India. HDFC Bank commenced operations as a Scheduled
Commercial Bank in January 1995.

Business Focus :

HDFC Bank’s mission is to be a World Class Indian Bank. The objective is to build sound customer
franchises across distinct businesses so as to be the preferred provider of banking services for target
retail and wholesale customer segments, and to achieve healthy growth in profitability, consistent
with the bank’s risk appetite. The bank is committed to maintain the highest level of ethical
standards, professional integrity, corporate governance and regulatory compliance. HDFC Bank’s
business philosophy is based on five core values: Operational Excellence, Customer Focus,
Product Leadership, People and Sustainability.
HDFC is India’s premier housing finance company and enjoys an impeccable track record in India
as well as in international markets. Since its inception in 1977, the Corporation has maintained a
consistent and healthy growth in its operations to remain the market leader in mortgages. Its
outstanding loan portfolio covers well over a million dwelling units. HDFC has developed
significant expertise in retail mortgage loans to different market segments and also has a large

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corporate client base for its housing related credit facilities. With its experience in the financial
markets, strong market reputation, large shareholder base and unique consumer franchise, HDFC
was ideally positioned to promote a bank in the Indian environment.

Distribution networks:

HDFC Bank is headquartered in Mumbai. As of September 30, 2014, the Bank’s distribution
network was at 3,600 branches in 2,272 cities. All branches are linked on an online real-time basis.
Customers across India are also serviced through multiple delivery channels such as Phone Banking,
Net Banking, Mobile Banking and SMS based banking. The Bank’s expansion plans take into
account the need to have a presence in all major industrial and commercial centres, where its
corporate customers are located, as well as the need to build a strong retail customer base for both
deposits and loan products. Being a clearing / settlement bank to various leading stock exchanges,
the Bank has branches in centres where the NSE / BSE have a strong and active member base.

The Bank also has a network of 11,515 ATMs across India. HDFC Bank’s ATM network can be
accessed by all domestic and international Visa / MasterCard, Visa Electron / Maestro, Plus / Cirrus
and American Express Credit / Charge cardholders.

Business profile:

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 HDFC Bank caters to a wide range of banking services covering commercial and
investment banking on the wholesale side and transactional / branch banking on the
retail side. The bank has three key business segments: 

 Wholesale Banking

The Bank’s target market is primarily large, blue-chip manufacturing companies in

the Indian corporate sector and to a lesser extent, small & mid-sized corporates and
agro-based businesses. For these customers, the Bank provides a wide range of
commercial and transactional banking services, including working capital finance,
trade services, transactional services, cash management, etc. The bank is also a
leading provider of structured solutions, which combine cash management services
with vendor and distributor finance for facilitating superior supply chain management
for its corporate customers. Based on its superior product delivery / service levels and
strong customer orientation, the Bank has made significant inroads into the banking
consortia of a number of leading Indian corporates including multinationals,
companies from the domestic business houses and prime public sector companies. It
is recognised as a leading provider of cash management and transactional banking
solutions to corporate customers, mutual funds, stock exchange members and banks

 Treasury

Within this business, the bank has three main product areas - Foreign Exchange and
Derivatives, Local Currency Money Market & Debt Securities, and Equities. With the
liberalisation of the financial markets in India, corporates need more sophisticated risk
management information, advice and product structures. These and fine pricing on various
treasury products are provided through the bank’s Treasury team. To comply with statutory
reserve requirements, the bank is required to hold 25% of its deposits in government
securities. The Treasury business is responsible for managing the returns and market risk on
this investment portfolio.

Retail Banking

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The objective of the Retail Bank is to provide its target market customers a full range of
financial products and banking services, giving the customer a one-stop window for all
his/her banking requirements. The products are backed by world-class service and delivered
to customers through the growing branch network, as well as through alternative delivery
channels like ATMs, Phone Banking, Net Banking and Mobile Banking.
The HDFC Bank Preferred program for high net worth individuals, the HDFC Bank Plus and
the Investment Advisory Services programs have been designed keeping in mind needs of
customers who seek distinct financial solutions, information and advice on various
investment avenues. The Bank also has a wide array of retail loan products including Auto
Loans, Loans against marketable securities, Personal Loans and Loans for Two-wheelers. It
is also a leading provider of Depository Participant (DP) services for retail customers,
providing customers the facility to hold their investments in electronic form.

Services offered by the company:

Personal Banking

 Accounts & Deposits

 Loans
 Cards
 Forex
 Investments & Insurance

NRI Banking

 Accounts & Deposits 

 Remittances 
 Investments & Insurance Loans  Payment Services 

Wholesale Banking

 Corporate 
 Financial Institutions & Trusts 
 Government sector
 Small and medium enterprises

ICICI Bank
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ICICI Bank started as a wholly owned subsidiary of ICICI Limited, an Indian financial
institution, in 1994. Four years later, when the company offered ICICI Bank's shares to the
public, ICICI's shareholding was reduced to 46%. In the year 2000, ICICI Bank offered made
an equity offering in the form of ADRs on the New York Stock Exchange (NYSE), thereby
becoming the first Indian company and the first bank or financial institution from non-Japan
Asia to be listed on the NYSE. In the next year, it acquired the Bank of Madura Limited in an
all-stock amalgamation. Later in the year and the next fiscal year, the bank made secondary
market sales to institutional investors.

ICICI Bank was established by the Industrial Credit and Investment Corporation of India
(ICICI), an Indian financial institution, as a wholly owned subsidiary in 1994. The parent
company was formed in 1955 as a joint-venture of the World Bank, India's public-sector
banks and public-sector insurance companies to provide project financing to Indian
industry. The bank was initially known as the Industrial Credit and Investment Corporation
of India Bank, before it changed its name to the abbreviated ICICI Bank. The parent company
was later merged with the bank.

ICICI Bank launched internet banking operations in 1998.

In the 1990s, ICICI transformed its business from a development financial institution offering
only project finance to a diversified financial services group, offering a wide variety of
products and services, both directly and through a number of subsidiaries and affiliates like
ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NYSE.

Products

(a) Pockets by ICICI Bank

In September 2013, ICICI Bank launched a one of its kind app on face
book 'Pockets by ICICI Bank' to enable customers to carry out a wide range of financial
transactions on face book. Customers can access the ICICI Bank app by logging into their
face book account and then going to the official ICICI Bank face book page, and clicking on
the tab for Pockets by ICICI Bank. The customer then registers online with their debit
card number and PIN, and selecting a new four digit PIN for subsequent logins. Through the
app, customers can make payments to friends, recharge prepaid mobile and book movie
tickets. One can also carry out non-financial transactions such as accessing a mini statement

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of their savings bank account, getting demat holding statements, opening fixed or recurring
deposit, order a cheque book, stop a cheque payment, upgrade debit card, among others.

Some of the key features of 'Pockets by ICICI Bank' are:

 Split n share: It allows customers to split and track group expenses and share them with
friends on Facebook. The app also gives the customer the option of sending messages to
remind friends on pending payments.
 Pay a friend: It allows customers to transfer funds to their friends without knowing their
bank account details like account number, bank branch, branch IFSC code etc. Through
this facility, customers can create electronic coupons that can be redeemed by their
friends on the bank website icicibank.com

My Savings Rewards

ICICI Bank has rolled-out the programme 'My Savings Rewards' from 1
September 2012, where reward points are offered to individual domestic customers for a
variety of transactions done through the savings bank account. Reward points are offered
automatically to customers for activating Internet banking, shopping online/ paying utility
bills with Internet banking and auto-debit from savings account towards equated monthly
installments for home/ auto/ personal loan/ recurring deposit. Customers are required to
maintain a monthly average balance of   15,000 or more.

I Wish - the flexible recurring deposit

I Wish is a flexible recurring deposit product launched by ICICI Bank for its savings
account customers. Unlike a traditional recurring deposit, IWish allows customers to save
varying amounts of money at any time of their choice. Customers can create several goals
and track their progress on an online interface.

ICICI Bank has developed this product in collaboration with Social Money.

Go Green Initiative

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The Go Green Initiative is an organization wide initiative that moves beyond moving people,
processes and customers to cost effective automated channels to build awareness and
consciousness of our environment, our nation and our society.

Objective

ICICI Bank's Green initiative is to make healthy environment in the organization i.e.; to
create intrapersonal skills among the customer and understanding between employees of the
organization.

Broad objectives of the ICICI are:

1. to assist in the creation, expansion and modernization of private concerns;

2. to encourage the participation of internal and external capital in the private concerns;
3. to encourage private ownership of industrial investment.

Green products and services:

Insta-banking

It is the platform that brings together all alternate channels under one umbrella and gives
customers the option of banking through Internet banking, i-Mobile banking, IVR
Banking. On 22nd September 2014 ICICI Bank launched Four New Next Generation Mobile
Banking Apps.

Vehicle Finance

Auto loans offer 50% waiver on processing fee on car models which uses alternate mode of
energy. The models identified for the purpose are, Maruti's LPG version of Maruti 800, Omni
and Versa, Hyundai's Santro Eco, Civic Hybrid of Honda, Reva electric cars, Tata Indica
CNG and Mahindra Logan CNG versions.

Carbon Footprint Calculator

Inputs include region, user input of the distance traveled in a particular medium of transport
daily, electricity consumed per month and LPG cylinder/piped natural gas used per month. It

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calculates the net carbon footprint to create awareness and sensitize people about the
environment. It also shows the world's and India's average carbon footprint.

OBJECTIVES OF THE STUDY

The major objectives of the study are :

 To study about the customer satisfaction from the services of e-banking

 To know about the future prospects of e-banking in comparison to traditional banking

METHODOLOGY
Research methodology has many dimensions. It includes not only the research methods but
also considers the logic behind the methods used in the context o0f the study. It also helps to
understand the assumptions underlying various techniques. In order to solve the research
problems, it is necessary to design a research methodology for the problem. The methodology
adopted for studying the objectives was by surveying the customers and bankers in the city of
Chennai.

The methodology used in this study are primary data and secondary data.Questionnaires are
used to collect data from the respondents. The questions are constructed type and contains
relating to different dimensions of e-banking preferences among different services classes.
An attempt was also made to elicit the reasons for the non-usage of e-banking. The questions
included in the questionnaire include open ended questions, multiple choice questions and 5
scale question. The secondary data included in the study were done through the internet and
few magazines and journals that were referred by earlier researchers.

LIMITATIONS OF THE STUDY

The study is limited to the city of Chennai.

The questionnaires are distributed to 60 respondents.
The study includes 2 major banks, HDFC and ICICI.
The study is concentrated on the problems faced by the respondents and the measures
adopted by banks to solve the problems.

TOOLS FOR ANALYSIS

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The data collected will be analysed through the application of statistical techniques such as
percentage method, pie charts and bar graphs.
CHAPTER ARRANGEMENTS
The research report has been divided and presented in 4 chapters. They are as follows:

 Chapter 1 – talks about introduction, evolution of e-banking, scope of the study,

objectives, methodology, tools for analysis, chapter arrangements, limitations of the
study.
 Chapter 2 – deals with review of literature
 Chapter 3 – deals with analysis and interpretation
 Chapter 4- deals with conclusion

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 CHAPTER- II
REVIEW OF LITRATURE

CHAPTER – II

REVIEW OF LITERATURE

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Introduction
This chapter deals with review of literature on the topic “Analysis of customer
satisfaction from e-banking services. A comparative study of HDFC and ICICI.” The
following articles have been collected pertaining to the above topic.

In detail:

Anthony (2004) “User Friendly E-banking: A survey of online E-banking

Retail Initiatives” discussed the importance of usability within the E-banking sector and
identified common usability problems and ways to resolve them. It is widely recognized that
online banking provided more revenue per customer and costs less per transaction than any
other channel. News from Forrester research stated that by 2007 the number of Europeans
banking online would double to 130 million. Based on the principles of human computer
interaction (HCI), web usability has become a recognized success factor for all e-business.
Users most enjoy those sites that provide clear information, easy navigation and an engaging
customer experience. People would naturally gravitate to the ones which are easiest to use
and offer the best service. Banks aiming to profit the most from the increase in online
banking volumes would consider the usability and accessibility of all aspects of their site to
welcome them.

Asghar (2004) “Banking in a cloud of Electrons” depicted that online banking and
the web channel were here to stay. Financial services relied on multiple distribution channels
and e-banking represented the channel of the future. Success stories around e-banking had
taken shape through a mix of innovation and experience. The financial services sector needed
to apply both these factors to their advantage to produce the desired results. It was imperative
that all e-banking implementations were seamlessly integrated with the core “traditional”
services thereby making the online experience truly holistic for the customer

Nitsure, R.R. (2004) “E-Banking: Challenges and Opportunities” indicated

the E-banking challenges and opportunities lying in the banking industry. E-banking had the
potential to transform the banking business as it significantly lowered transaction and
delivery costs. It discussed some of the problems of developing countries, which had a low

23
penetration of information and telecommunication technology. Major concerns such as the
‘digital divide’ between the rich and poor, the different operational environments for public
and private sector banks, problems of security and authentication, management and
regulation, and inadequate financing of small and medium scale enterprises (SMEs) were
highlighted.

Picado, Gonzalez & Eckelma (2004) “Customer satisfaction using QFD”

investigated the customer satisfaction using QFD research on service quality and customer
satisfaction had become significant in the service industries. This study developed a case
study that considered both external and internal service management issues and subsequent
service innovations based on the framework of quality function deployment (QFD). The
application of the customer and service elements constitute a different approach of QFD.
Some benefits and disadvantages of the QFD process were discussed as compared to extent
service quality and customer paradigms. Suggestions and directions were offered for future
applications, with particular interest in the e-bank service management issues.

Kamiya(2006) “How E-banking can ease your Life” showed that Indian banks
are trying to make life easier. They can make investments, shop or buy tickets and plan a
holiday at our fingertips. Sources from ICICI bank told that internet banking base has been
growing at an exponential pace over the last few years. According to the study around 78
percent of the bank’s customer base was registered for internet banking. All that was needed
was a computer with a modem or other dial-up device, a checking amount with a bank that
offered online service and the patience to complete about a one-page application which could
usually be done online. They can avail the following services: Bill payment services, Fund
transfer, credit card, internet shopping and investment through internet etc. Due to the
internet banking, the life of an individual became easy and raised the standard of life of the
humans.

Maumbe(2006) “Digital Financial service Delivery to poor Community”

depicted that most banks throughout the world have become the back bone of financial
service delivery and finance networks have shifted from paper based to the digital mode.
Digital financial service delivery confronts a number of challenges regarding its efficacy in

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closing the “financial divide” affecting the poor. E-banking is considered an in-expensive
way to reach clients, its accessibility is hindered by a number of factors including poor
internet penetration, lack of e-banking awareness and customer inflexibility to new
technology. In developing countries which are characterized by extreme poverty and poor
infrastructure, universal internet-based service provision remains indefinable. The author
argues that developing nations need to improve educational standards and computer literacy
prior to broad-based adoption and constructive use of internet services. The poor and
unemployed remain disadvantaged in terms of access to rural internet based services. Real
access to “Well-functioning” and “efficient financial services” has the potential to empower
poor communities.

Veneeva(2006) “E-banking (Online Banking) and its role in today’s

society” described that world is changing at a staggering rate and technology is considered
to be the key driver for these changes. Many activities are handled electronically due the
acceptance of information technology at home as well as at workplace. Internet can be seen
as a truly global phenomenon that has made time and distance irrelevant to many
transactions. The evolution of electronic banking started from the use of automatic teller
machines (ATM) and has passed through telephone banking, direct bill payment, electronic
fund transfer and the revolutionary online banking. The future of electronic banking
according to some is the acceptance of WAP enabled banking and interactive-TV banking. It
has been forecasted that among all the categories, online banking is the future of electronic
financial transaction. The rise in the e-commerce and the use of internet in its facilitation
along with the enhanced online security of transactions and sensitive information has been
the core reasons for the penetration of online banking in everyday life.

Awamleh(2007) “Diffusion of internet banking amongst educated

consumers in a high income non-OECD country” analysed the internet banking
channels and service preferences of educated banking consumers and examined the factors
influencing the intention to adopt or to continue the use of internet banking among both users

25
and non users of internet banking. It showed that although the banking sector is a regional
leader, internet banking is yet to be properly utilized as a real added value tool to improve
customer relationship and to attain cost advantages. The technology acceptance model was
used to identify factors influencing the intention to adopt and continued use of internet
banking customers. Data was collected from internet banking users and potential users and
factor analyses and multiple regression analyses were conducted to examine the data.
Relative usefulness is introduced as one of the factors and is defined as the degree to which a
new technology is better than existing ones. There is a significant difference between users
and non-users on six of the seven factors identified. It was revealed that relative usefulness,
perceived risk, computer efficacy and image had a significant impact on continued usage of
internet banking. While relative usefulness and result demonstrability were the only ones
significant of non-users of internet banking. The effects of age, gender, income and e-
commerce users were also explored. Result demonstrability was significant for all categories
of non-users except for those with income below 7000. Implications of results were
discussed, and future research directions outlined.

Bauer, Malik & Falk(2007) “Measuring the quality of e-banking portals”

reviewed the measuring of quality of e-banking portals. In the internet economy, the business
model of web portals has spread rapidly over the last few years. There have been very few
scholarly investigations into the services and characteristics that transform a website into a
portal. Based on a empirical study in the field of e-banking the authors validate a
measurement model for the construct of web portal quality based on the following
dimensions: Security and trust , basic services quality , Cross-buying services quality , added
value, transaction support and responsiveness.

Findings- The identified dimensions were reasonably classified into three service categories :
Core services , additional services and problem solving services.

Value- The knowledge of these dimensions were major dimensions of customer’s quality
perception as the internet provides banks an effective quality management for their e-
businesses.

26
 Malhotra. P and B. Singh (2007) “An analysis of e-banking offerings and
its determinants in India” tells that larger banks, private ownership, higher expenses
for fixed assets, higher deposits and lower branch intensity evidenced a higher probability of
adoption of the new technology. Banks with lower market share also saw the internet banking
technology as a means to increase the market share by attracting more customers through the
new channel of delivery. The adoption of e-banking by other banks increase the probability
that a decision to adopt will be made. An understanding of the factors affecting the choice is
essential both for economists studying the determinants of growth and for the creators and
producers of such technologies. Understanding the factors determining the adoption of
technology becomes highly relevant from the policy point of view. The studies on the
adoption of innovations are related to developed markets. This paper contributes to the
literature on diffusion of financial innovations, particularly e-banking in a developing
country.

Shah & Braganza (2007) “A survey of critical success factors in e-

banking” indicated the critical success factors in e-banking. The organizational factors,
which are critical to the success of e-banking were investigated. Different piece of literature
report, different factors are key to success are generally based on subjective and perceptual
data. A synthesis of existing literature was also a basis of survey questions. The data was
collected from UK based financial sector organizations who are offering their services on
electronic channels, using postal questionnaires. The top factors found to be most critical for
the success in e-banking are: Quick responsive products / services, organizational flexibility,
services expansion, systems integration and enhanced customer service. An important lesson
from this research is that organizations need to view the e-banking initiative as a business
area rather than just a technical issue

They need to give attention to internal integration, Which may include channels, technology
and business process integration, and improving the overall services to their customers.

Hasun K.S (2008) “Coherence of financial service sector and observational

variables to identify innovative capital and process capital” considered the
coherence of the financial service sector and adopted different observational variables to
identify innovative and process capital. The results showed that human capital has direct

27
impact on both innovative and process capital, which in-turn affect customer capital, and this
in-turn will the business performance. There is a negative relationship between process
capital and customer capital in the financial service sector. In the financial service sector,
customer satisfaction relies on sufficient degree of training and R&D programmes. Heavy
investment on the support of e-banking operating system may not be a good idea

Laukkanen. P and Sinkkonen (2008)“Consumer resistance to e-banking:

postponers, opponents and rejecters” The purpose of this papers was to understand
the innovation resistance by dividing internet banking non-adopters into 3 groups based on
the intensions to use the innovation. The aim was to identify how the resistance differs in
these customer groups. The data was collected by conducting an expensive survey among the
retail banking customers who had not adopted e-banking. The measurement development was
based on customer resistance theory. Principle component analysis was used to classify the
resistance item into 5 adoption barriers. Analysis of variance was used to analyse the
statistical differences were identified between the groups explored. The resistance of the
rejecters is much more than intense and diverse than that of the opponents. The results also
show that psychological barriers are even bigger determinants of resistance than usage and
value. The findings highlight the role of efficacy in the customers risk perception to e-
banking. It implicates for management in overcoming non-adopter’s resistance to the
innovation.

Routray (2008)“Wireless ATM: A technological framework to m-banking”

described organisations to conduct business more effectively and efficiently. One of the most
effective applications is m-banking. For any application to gain recognition, technological
advancements play a vital role. To make m-banking application a success, the bandwidth
management is an important issue. The increased mobility and flexibility feature of wireless
ATM and its demanding function is motivating a large number of carriers towards
deployment of WATM network. There are certain issues which are required to be addressed
in WATM. The issues are cost effective planning of network, location management and
handover management. This paper suggests and evaluates the technological framework for
the m-banking application using WATM which optimises the bandwidth usage and provides
an effective handover management.

28
Azouzi (2009) “The adoption of e-banking- journal of internet banking and
commerce” aimed to check if the current and prompt technological revolution altering the
whole world has crucial impacts on the banking sector. This study seeked some clues on
which we can rely in order to understand customer’s behaviour regarding adoption of
electronic banking. To achieve this purpose, an empirical research was carried out it reveals
that panoply of factors is affecting the customer attitude towards e-banking. For instance, age,
gender and educational qualification seemed to be important and they split up the group into
e-banking adopters and traditional banking defenders. They have significant influence on the
customer’s adoption of e-banking. This study showed that despite the incentives and in spite
of being fully aware of the e-banking benefits, numerous respondents are still using the
conventional banking. The fear of loss because of transaction errors or hackers plays a
significant role in alienating customer’s from online banking.

B. Dizon (2009)“Special feature: e-banking” the study found that while big banks
conduct their business in brick and mortar bank branches, the financial sector has been
increasingly investing on e-banking facilities to offer 24-hour, queue-free services to their
regular clients, whether through ATM machines, mobile phones or the internet. E-banking’s
appeal is primarily its convenience. “Clients now- a- days want instant results, they don’t
want to wait for long time” says Francisco senior vice-president of Asia United Bank. It also
turned out to be more efficient way to process transactions, as banking does away with most
of the paper work that clients have to accomplish. Online banking relies on user names and
passwords which needs to be protected. The anti-theft barriers are at times supplement
transaction password and” tokens” often a key-chain like device that is issued to the client
and generates random, one-time password to enable him to log into the account online. Last
year, the Rural Bank Association announced that its members are looking to appoint local
merchants as third party agents where customers can open new accounts and make large
payments. Such informal outlets will enable banks to reach out to small-income businesses
and individuals who are from agrarian sector, most of who are blessed outside the city centre.

Reeti, Sanjay and Malhotra (2009) “Customers perceptive regarding e-

banking in emerging economy” states about customers perceptive regarding e-
banking in an emerging economy. The author determined various factors affecting customer
perception and attitude and satisfaction level with e-banking as it is the essential part of a

29
bank’s strategy formulation process. To gain understanding the study was conducted on
respondents taken from northern part. The major findings depict that customers are
influenced in their usage of e-banking services by the kind of account they hold and their
profession. This attach high degree of usefulness to balance enquiry service among e-banking
services, to consider security and trust as important factor in affecting the satisfaction level
and slow transaction as the most frequently faced problem while using e-banking.

Uppal R.K and Chawla (2009) “E-delivery channel based banking services:
An empirical study” highlighted customer’s perception regarding e-banking services. A
survey of 1200 respondents was conducted was conducted. The respondents were equally
divided among 3 bank groups namely, public sector, private sector and foreign banks. The
study investigates the perceptions of the bank customers regarding necessity of e-banking
services, quality of the services provided, bank frauds, future of e-banking, preference of
bank customers regarding banks, comparative study of banking services in various bank
groups and the various problems faced by e-banking customers. Major findings of this study
is that customers of all bank groups are interested in e-banking services, but at the same time
are facing problems like inadequate knowledge, poor network, lack of infrastructure,
unsuitable location, misuse of ATM cards and difficulty to open an account. This papers
frames some strategies like customer education, meeting, proper infrastructure and network
facilities, proper installation and working of ATM machines etc to enhance e-banking
services. Majority of professionals and business class customers as well as highly educated
customers feel that e-banking has improved the quality of customers services in banks.

Polaris software Lab Limited (POLS.BO) (2010) “Polaris software and

Indusland Bank launch Intellect Privacy internet banking security card”
launched intellect™ PRIVACY based on state- of -the -art technology and four patents filed
by the Indian institute of technology. Indusland bank has become the first bank in India to
implement intellect™ PRIVACY, an online and internet banking security card, for its internet

banking customers. The technology will protect customers and bank from all kinds of
phishing attacks. Intellect PRIVACY uses multi factor, dynamic authentication technology
providing for authorizing online banking transactions, in a completely secure platform..
Intellect PRIVACY is a simple plastic card that customers can use to generate a one-time

30
password (OTP) for carrying out any kind of online banking transaction including the sign
on. Banks can issue booklets containing a desired number of cards that would last many
transactions. The card has no pillerage value by itself and customers can easily manage its
life cycle , including making a request for a new booklet and reporting loss of cards through
online banking.

Conclusion
The above review of literatures gives us a platform to understand the topic in a elobrate
manner. It helps to bridge the gap between the review of literature and the topic “Analysis of
customer satisfaction from e-banking services. A comparitive study of HDFC and ICICI”.

31
 CHAPTER – III
ANALYSIS AND INTERPRETATION

CHAPTER – III

AN ANALYSIS ON COMPARITIVE STUDY OF CUSTOMER

SATISFACTION ON E-BANKING SERVICE
This chapter deals with analysis and interpretation on the topic “Comparitive study of
customer satisfaction on e-banking services (with special reference to HDFC and ICICI
bank)” The questionnaires were distributed to 60 respondents. The study considers the
problems faced by customers using e-banking and the measures adopted by banks to
overcome the problems.

Table 3.1 Demographic classification based on gender

32
 GENDER NUMBER PERCENTAGE
OF RESPONDENTS

MALE 35 58%
FEMALE 25 42%
TOTAL 60 100%
Source: Primary data

Fig 3.1 figure showing demographic classification based on gender

Chart Title

35
30 Series1
25
20
15
10
5
0
male female

Source: primary data

Interpretation:
The above chart tells about the number of respondents using e-banking. It shows that the
majority is male respondents. Among the 60 respondents, 58% are male and 42% are female.

Table 3.2 Demographic classification based on age

AGE NUMBER PERCENTAGE

OF RESPONDENTS
Below 20 02 3%
21-30 15 25%
31-40 18 30%
41-50 15 25%

33
 Above 50 10 17%
TOTAL 60 100%
Source: primary data

Fig 3.2 figure showing demographic classification based on age

Chart Title
18
16
14
12
Series1
10
8
6
4
2
0
below 20 21-30 31-40 41-50 above 50

Source: primary data

Interpretation:
The above table shows that 30% of respondents come under the age of 31-40. And around
25% falls under 21-30 and 41-50. This shows that e-banking is mainly famous under this age
group. Least is in the 1st category with 3% respondents.

Table 3.3 Demographic classification based on occupation

OCCUPATION NUMBER PERCENTAGE

OF RESPONDENTS
Businessmen 25 42%

Professionals/ 25 42%
Employees
Others 10 17%

34
 Total 60 100%

Source: primary data

Fig 3.3 Demographic classification based on occupation

25

20

15
Series1
10 Series2

0
businessmen professionals/ others
employees

Source: primary data

Interpretation:
The above table shows that majority of respondents using e-banking are businessmen and
employees, i.e. 42% are respondents are government people, people from public and private
sector using e-banking services because it results in time saving and they do not have to
waste time standing in long queues for making transactions. Around 17% respondents are
others which include students, housewives.

Table 3.4 Demographic classification based on income

INCOME TOTAL NO. PERCENTAGE

10000-25000 20 33%

25000-50000 30 50%

More than 50000 10 17%

35
 TOTAL 60 100%

Source: primary data

Fig 3.4 Demographic classification based on income

Chart Title
30

25

20 Series1
15

10

0
10000-25000 25000-50000 above 50000

Source: primary data

Interpretation:
This table shows that 50% respondents are using e-banking fall under the category of 25000-
50000. Highest number of respondents fall under this category. About 33% respondents are
from the income category of 10000-25000. And 17% respondents have an income more than
50000.

Table 3.5 Table showing user of e-banking services

RESPONSE NUMBER PERCENTAGE

OF RESPONDENTS
Yes 45 75%
No 15 25%
TOTAL 60 100%
Source: primary data

36
Fig 3.5 users of e-banking services

Chart Title

45
40
35
Series1
30
25
20
15
10
5
0
yes no

Source: primary data

Interpretation:
This table shows that among 60 respondents 75% of respondents are using e-banking
services. This is because it saves a lot of time that is wasted in direct branch transactions.
25% are not using these services. This is because they are aware of the e-banking but still
have faith in traditional banking.

Table 3.6 Table showing necessity of e-banking service

RESPONSE NUMBER PERCENTAGE

OF RESPONDENTS
Yes 40 67%

No 20 33%

37
 TOTAL 60 100%

Source: primary data

Fig 3.6 necessity of e-banking service

Chart Title

40
35
30 Series1
25
20
15
10
5
0
yes no

Source: primary data

Interpretation: This table shows that among 60 respondents, 67% of respondents feel the
necessity of e-banking while 33% respondents say no to online transactions. Majority people
feel they need e-banking as it helps them to save time and look in other works rather wasting
time in long queues.

Table 3.7 table showing bank from which the service is availed

RESPONSE NUMBER PERCENTAGE

OF RESPONDENTS
HDFC 20 33%

ICICI 20 33%

38
 Both 05 9%

Others 15 25%

TOTAL 60 100%

Source: primary data

Fig 3.7 bank from which the service is availed

Chart Title
20
18
16
14
12 Series1
10
8
6
4
2
0
HDFC ICICI both others

Source: primary data

Interpretation:
The above table shows that 33% of respondents are using HDFC and ICICI banking
services. 25% respondents are using services of other banks, around 9% respondents are
using services of both the banks. This shows that large number of customer base is in HDFC
and ICICI. Respondents are also aware of the services provided by other banks, which help
them to understand and choose the right bank for their banking transaction

Table 3.8 table showing frequency of availing the services

RESPONSE NUMBER PERCENTAGE

OF RESPONDENTS
Daily basis 15 25%

39
 Weekly basis 35 58%

Monthly basis 10 17%

TOTAL 60 100%

Source: primary data

Fig 3.8 frequency of availing the services

Chart Title

35
30
25
Series1
20
15
10
5
0
daily basis weekly basis monthly basis

Source: primary data

Interpretation:
This table shows that out of 60 respondents 58% use e-banking on weekly basis for their
transactions. 25% respondents use on daily basis. And 17% will use on monthly basis for
checking balance or requesting a cheque book etc.

Table 3.9 table showing reasons for selecting this particular bank

RESPONSE NUMBER PERCENTAGE

OF RESPONDENTS

40
 Good service 25 42%

Good brand 25 42%

Other references 10 16%

TOTAL 60 100%

Source: primary data

Fig 3.9 reasons for selecting this particular bank

Chart Title

25

20

Series1
15

10

0
good service good brand other references

Source: primary data

Interpretation:
This table shows that 42% respondents say that banks are providing good services and also
have a good brand name. 16% respondents say apart from good brand and services other
references are also taken into consideration.

Table 3.10 table showing type of e-banking service used

41
 RESPONSE NUMBER PERCENTAGE
OF
RESPONDENTS
Transfer funds online 20 33%

Online purchase and payment 25 42%

Regular checking of bank 12 20%

statements
Request any card or cheque book 03 5%
service
TOTAL 60 100%

Source: primary data

Fig 3.10 type of e-banking service used

25
20
15
10
5
Series1
0 Series2
r se ts k
nsfe ha en boo
c m
tra pu
r te ue
nd sta eq
fu nd k ch
tsa ban or
en g rd
ym ckin t ca
pa ch
e es
lin
e
equ
r
on

Source: primary data

Interpretation:
The above study reveals that 42% respondents do online payments and purchases. 33%
respondents do transferring of funds. 20% respondents use e-banking to check bank
statements and 5% respondents use for requesting cards and cheque books.

Table 3.11 table showing qualities preferred while accessing e-banking

services

RESPONSE NUMBER PERCENTAGE

OF RESPONDENTS
42
Good service 15 25%

Easy accessibility 7 12%

Cost charges 8 13%

Safety 30 50%

TOTAL 60 100%
Source: primary data

Fig. 3.11 qualities preferred while accessing e-banking services

30

Source: primary
25
data
20
Interpretation:
15 Series1
Series2 The above table

10 shows that 50%

respondents are
5
preferring safety
0 to their accounts.
good service easy accessibility cost charges safety
While 25%
respondents are expecting good service. 13% respondents want the costs to be stable and 12%
respondents say about easy accessibility.

Table 3.12 table showing problems faced while using e-banking services

RESPONSE NUMBER PERCENTAGE

OF RESPONDENTS
Critical process 10 16%

Time consuming 10 17%

Inadequate knowledge 5 8%

43
 Poor network 25 42%

Misuse of ATM cards 10 17%

TOTAL 60 100%
Source: primary data

Fig 3.12 problems faced while using e-banking service

25

20

15

10
Series1
5
Series2
0
ss g
dg
e
or
k ds
oce m
in le w car
pr u w et
al o ns no rn TM
ir ti
c
e c
te k oo
o fA
C a P
Tim qu se
de isu
a M
In

Source: primary data

Interpretation:
The above table reveals that out of 60 respondents, 42% respondents face the problem of
poor network while 17% respondents say its time consuming. 17% respondents face the
problem of misuse of ATM cards. 16% respondents say about critical process and 8%
respondents have inadequate knowledge.

Table 3.13 table showing measures adopted to solve these problems

RESPONSE NUMBER PERCENTAGE

OF RESPONDENTS
Customer education 17 28%

Proper network facilities 25 42%

Proper installation and 08 13%

working of ATM
machine

44
Proper security(tokens, 10 17%
special PIN’s etc)

TOTAL 60 100%
Source: primary data

Fig 3.13 measure adopted to solve these problems

Chart Title
20
10
0
Series1

Source: primary data

Interpretation:
The above table shows that 42% respondents have overcome the problem of poor network,
while 28% respondents say that banks are given good customer education about e-banking.
17% respondents say proper security is provided to customers and 13% respondents say
banks are providing good ATM working machines. This study reveals that banks have and
are taking steps to reduce the problems faced by customers, and the customers are showing a
sight of relief towards the problems.

Table 3.14 table showing satisfaction with e-banking services

RESPONSE NUMBER PERCENTAGE

OF RESPONDENTS
Yes 42 70%

No 18 30%

TOTAL 60 100%
Source: primary data

45
Fig 3.14 satisfaction with e-banking service

Chart Title

45
40
35
Series1
30
25
20
15
10
5
0
yes no

Source: primary data

Interpretation:
The above table reveals that 70% respondents say they are satisfied with the e-banking
services while 30% respondents are not fully satisfied. They still feel traditional banking is
safe and better.

Table 3.15 table showing rating of e-banking service

RESPONSE NUMBER PERCENTAGE

OF RESPONDENTS
Very good 20 33%

Good 20 33%

Average 15 25%

Below average 5 9%

TOTAL 60 100%

46
Source: primary data

Fig 3.15 rating the e-banking service

60

50

40

Series1
30
Series2
Series3
20

10

0
1 2 3 4 5

Source: primary data

Interpretation:
The above table reveals that 33% respondents have rated very good and 33% respondents
have rated good. 25% respondents have rated average and 9% respondents have rated below
average. Hence it shows that customers are satisfied with the various e-banking services.

47
 CHAPTER – IV
CONCLUSION

CHAPTER-IV

CONCLISION
This study has attempted to identify the key attributes of e-banking services by analyzing the
level of customer satisfaction and their comments on banking experience. The findings of this
study show that despite many advantages of e-banking, people still consider it as an
alternative for analyzing their bank records. Identification and measurement of customer’s
expectations of e-banking service provide a frame of reference and their related quality
dimension. The main factors which persuade people to use e-banking are comfort and
convenience. The other facility which attracts the most is the quality and quantity of
information. The implementation of quality initiatives should begin by defining the customer
48
needs and preferences. There is still a need for the banking system to make changes and train
their customers for using internet for their banking activities.

Going through the survey, the main problem customers are facing is poor network, critical
process and security. Banks are trying and improving these problems to the best possible
way.

Banks are even providing free internet banking services so that customers are attracted. When
quizzing the employees of the banks, information was gained that the maximum number of e-
banking account holders are businessmen and youth. E-banking is an innovative tool that is
fast and is becoming a necessity. It is a successful strategy upon which banks remain
profitable in a volatile and competitive market place today.

For a bank to be successful in e-banking, it has to provide proper education and training to
the customers to open an account and access the banking transactions. The websites should
be made friendlier, where the customers can directly make fast access to their accounts.

Futher, the availability of technology to ensure safety and privacy of the e-transactions and
the RBI guidelines on various aspects of e-banking will surely help in rapid growth of e-
banking in India.

Findings of the study:

 From this study I found out that 58% (35) are male respondents who use the e-
banking services of the bank. Only the working class ladies are having the knowledge
and are using the online banking services.
 Most of the respondents who use e-banking services fall under the age group of 31-
40 (30%)
 42% businessmen and professionals are making the maximum use of e-banking
services as it provides them with the maximum benefit with minimum loss.
 33% of respondents who use e-banking facility lie under the income group of 25000-
50000.

49
  Out of the total respondents (60), 45 respondents are users of e-banking services, this
shows that 75% of people have knowledge about e-banking and are the regular users
of e-banking services.
 The study shows that 58% respondents are using e-banking services on weekly basis
for various purposes. Businessmen are the most benefited people.
 A question was asked about the type of e-banking services used, 42% respondents
told about online payment and purchase and 33% used for online fund transfer.
 Among the users, various problems were encountered. 42% respondents considered
difficulty was poor network. And other major problems were time consuming (17%),
critical process (16%) and misuse of ATM (8%).
 From the non users, an attempt was made to elicit the reasons for the non usage of e-
banking services. The most important factors which were considered by customers
were: no internet access, hidden cost, fear of insecurity, de- motivating factor that was
considered with the dissatisfaction with traditional banking.
 A study was made to find out the measures that were adopted by banks to solve these
problems. 42% respondents say that proper network facilities are provided with good
security facilities and good customer education is also given by banks.
 When asked about the amount of satisfaction that customers are receiving from d e-
banking services, 70% respondents are satisfied. Banks are trying and improving the
service quality and are looking forward to attaint 100% customer satisfaction.

RECOMMANDATIONS

We can see that time is changing and along with which the technology is also changing. We
as customers accept the new and immediate technology that comes our way. This immediate
reaction of acceptance is blocking the normal growth tendency. This is one of the reasons for
the slow growth of e-banking accounts.

For the customers to accept e-banking with maximum satisfaction and minimum loss or
problems, the following points are to be considered.

50
 Banks should obey the RBI norms and provide facilities as per the norms. Both
customers and banks should follow these norms.
 Customers must be given prompt services by the bankers as per the guidelines with
fear of the sick units.
 E-banking facilities must be properly available to all the branches of a particular bank.
 Even rural areas, the branches along with e-banking facilities must be provided.
 Each section of banks and its branches should be computerized in both urban and
rural areas.
 Personalized banking must be given a thrust as more and more banks are coming out
with good achievements.
 ATMs should cover the rural areas as the people of that area can avail better services.
 There must be prompt dealing with permanent customers and speedy transactions
without harassing the customers.
 Banks must deal fairly with the customers. More contribution must be made by the
employees of the banks.
 The staff should be co-operative, friendly and must be capable of understanding the
problems of the customers.
 Proper education and training must be given to the customers for using e-banking.
 Banks must create a trust in the minds of customers towards security of their
accounts.
 Banks must create a platform where the customers can access different accounts at the
same time without having to pay extra charges.

51
 BIBLIOGRAPHY

Bibliography

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initiatives”, Communications of CRM, Vol. 47, Iss. 10, pp. 99-102
 Asghar. O, (2004), “Banking in a cloud of electronics”,
 Awamleh. R, (2006), “Diffusion of internet banking amongst consumers in a high
income non-OECD country”, Journal of internet banking and commerce, Vol. 11.
 Azouzi. D, (2009), “The adoption of e-banking: Journal of internet banking and
commerce”, Vol. 14, Iss. 3, pp. 1-11.

52
  Bauer, Malik and Falk, (2007), “Measuring the quality of e-banking portals”,
International journal of banks, Vol. 23, Iss. 2.
 B. Dizon, (2009), “Special feature: Electronic banking”.
 IIT Madras, (2010), “Polaris software and Indusland bank launch INTELLECT
PRIVACY internet banking security card”,
 Kamiya. J, (2006), “How internet banking can ease your life”, Rediff. Com
 Hasun. K.S, (2008), “Coherence of financial service sector and observational
variables to identify innovative and process capital”, Vol. 2, no.2, pp. 180-196.
 Laukkanen. P and Sinkkionen, (2008), “Customer resistance to e-banking: postponers,
opponents and rejecters, The international journal of bank marketing, Vol. 26, Iss, 6,
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 Maumbe. M, (2006), “Digital financial service to poor community”, International
review of business research papers, Vol.2, Iss.2, pp.72-79.
 Nitsure.R.R, (2004), “E-banking: Challenges and opportunities”, Economic and
political weekly, Vol.38, no.51/52, pp.5377-5381.
 Picado. F, Gonzalez Marvin, and Carl Eckelman, (2004), “Customer satisfaction
using QFD”, Journal of managing service quality, Emerald group publishing limited,
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Book:
Banking theory Law and Practice, Sundharam and Varshney, (2013) publisher, Sultan Chand
and Sons.

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Websites
www.slideshare.net/bairasaireshu/satisfaction-from-e-banking-services-a comapritive study.

www.managementparadise.com

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 APPENDIX

QUESTIONNAIRE

Dear respondent,

Thank you for agreeing to participate in this survey. This

questionnaire is only a part of the research work carried out for the partial
fulfilment of the degree. This research was carried out on the topic “Analysis of
customer satisfaction towards e-banking services. A comparative study between
HDFC and ICICI”. The information provided here are purely for educational
purpose and will be strictly confidential.

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Demographic information
1. GENDER

a) Male B) Female

2. AGE
A) Below 20 B) 21-30 c) 31-40
D) 41-50 E) Above 50

3. OCCUPATION
A) Businessmen B) employees/professionals c)others

4. INCOME
A) 10000 – 25000 B) 25000-50000 C) more than 50000

5. Do you think e-banking services are necessary for present scenario?

A) YES B) NO

6. Are you a user of e-banking service?

A) YES B) NO

7. How often do you use e-banking service?

A) Daily basis B) Weekly basis c) Monthly basis

8. From which bank are you availing the services?

A) HDFC B) ICICI C)Both D) Others

9. What is the reason for selecting this particular bank?

A) Good Brand B) Good Service C) Other Reference

10. Which type of e-banking service you use?

A) Transfer of funds
B) Online purchase and payment
C) Regular checking of bank statements

11. What qualities do you prefer while accessing e-banking services?

56
 A) Good Service B) Easy accessibility C) Cost Charges D) Safety

12. What problems are you facing while using e-banking services?

A) Inadequate knowledge
B) Poor network
C) Misuse of ATM cards
D) Critical process
E) Time consuming

13. What measures has your bank adopted to solve these problems?
A) Customer education
B) Proper network facilities
C) Proper installation and working of ATM machines
D) Security (tokens, special password facility, special PIN)

14. Are you satisfied with the e-banking services?

A) YES B) NO

15. Rate your e-banking services

A) Very good
B) Good
C) Average
D) Below average

57