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A Study of Customer Satisfaction regarding e-banking services proved by

banks with reference to Bank of Maharashtra

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 ISSN :2454-2415 Vol. 6, Issue 7, 2018 July, 2018
A study of customer satisfaction regarding e-banking services provided by banks with
reference to Bank of Maharashtra
Gauri Prabhu
Associate Professor
AISSMS Institute of Management, Pune 411001
Abstract
Advancements in technology have raised the standards of
living of the people. Innovations have altered the way
services can be offered and have given new dimensions to
the society. This is true to the banking industry also and it
has been in the form of online banking, which is now
replacing the traditional banking practice. Online banking
refers to banking over the internet without having to visit
the bank personally. This research paper studies customer
satisfaction regarding e-banking services provided by
banks with reference to Bank of Maharashtra. A survey
was conducted to study and analyze the perception of bank
customers and their satisfaction level of e- banking
facilities through structured questionnaire. The findings of
the study indicate that around 70% of them use e-banking
services. Lack of awareness and security reasons are the
main deterrents for not using e-banking services.
Keywords: E-banking, perception, satisfaction,
awareness and security
Introduction
Information technology has made positive impact on
the lives of millions of people and thereby has
greater impact on the economic front. Booz et al.,
1997, “Technological developments in the banking
sector have speeded up communication and
transactions for clients”. Now days, banking over
the internet is one such technological advance which
is gradually being accepted all over the world.
Internet banking helps the customers in doing their
banking transactions without going to the bank and
helps in saving of time and cost of visit. Online
banking can be done from anywhere in the world
and also at any time.
The ultimate goal of any business is “Customer
satisfaction”. Fournier and Mick, 1999 “ It is
important theoretically as well as practically for
most marketers and consumer researchers because
organizations sometimes do not really understand
what actually goes on in customers mind”. Greater
the customer satisfaction greater will be the loyalty
of the customer to the bank. This concept of
customer satisfaction is important for all service
organizations. ICICI bank was the first private
sector bank in India to initiate online banking
revolution in 1998 under the brand name “Infinity”.
However, in the current scenario, every bank in
India has the internet banking facility. Moreover,
these banks are extending their presence in rural
45
International Journal of Innovative Knowledge Concepts, 6(7) July, 2018
DOI 11.25835/IJIK-123 www.doie.org
areas also to lure more customers by educating them
with new advancement in information technology.
Literature Review
Meuter et al. (2000) in their paper titled “Self-
Service Technologies: Understanding Customer
Satisfaction With Technology-Based Service
Encounters” have found certain incidents of
customer satisfaction and dissatisfaction with
technology-based service encounters. The authors
identified the levels of risk perception differences
among those using Internet Banking and those not
using it. In an online survey, it was found that
identity theft worries have increased in response to
lapses in security.
n their paper titled “ Consumer acceptance of online
banking: an extension of the technology acceptance
model” Pikkarainen, Karjaluoto, and Pahnila (
2004), have found that perceived usefulness and
information on online banking on the website were
the main factors that influence online banking
acceptance.
Rueangthanakiet Pairot, ( 2008 ) have studied the
trend in electronic delivery of products and services.
The authors have made an attempt to understand the
use and benefits of e-banking from customer’s point
of view.
Laforet and Li (2005) in their paper titled
“Consumers’ attitudes towards online and mobile
banking in China” have found that in China, mainly
the young and highly educated male population were
the users of online banking. The Chinese traditional
cash-carry banking culture, computer skills and
perceived risks were the main barriers to online
banking.
In their paper titled “Adoption and diffusion of
Electronic Banking by customers: Critical Analysis
of Empirical Evidences”, Jane et al, (2004) analyzed
that for online banking to be successful it requires
consumers to regularly interact with computers and
be conversant with technology like use of internet.
Objectives
 To understand the customer perception
about the Internet Banking service.
 ISSN :2454-2415 Vol. 6, Issue 7, 2018 July, 2018 DOI 11.25835/IJIK-123 www.doie.org

 To analyze customer satisfaction level of

the Internet Banking Facility. No.of.Respondents
 To study the present status of usage of 35
Internet Banking in Pune City by Bank of 30
Maharashtra customers.
25
20
Methodology
A survey was conducted to study and analyze the 15
perception of bank customers and their satisfaction 10
level of internet banking facilities through structured 5
questionnaire. The secondary data was collected 0
from research journals, books, newspapers, websites
Age Below 20-40 40-60 Above
and magazines. The structured questionnaire was
Class 20 60
administered to a sample of 80 bank customers from
Bank of Maharashtra, Pune . Convenience sampling
method was used to collect data from customers. Interpretation:
However, only 60 people have responded to all From the above graph it is seen that majority of the
questions. The data analysis uses percentage respondents belong to the age group of 20-40 years
method. old, followed by 34% of the respondents belong to
age group of 40-60 years and 18% of the
Findings of study
Distribution of Respondents According To Their respondents are below the age of 20 years.
Gender TABLE No.3
Distributions of Respondents According To
Gender No. of Percentage
Their Occupation.
respondents
Occupations No. of Percentage
Male 31 52 Respondents
Female 29 48 Homemaker 3 5
Total 60 100 Studying 6 10
Earning 21 35
Salary
Business 16 27
Others 14 23
Total 60 100

Interpretations:
It is seen that majority of the respondents are male
which constitute 52% whereas female respondents
are 48% of the total population.
TABLE NO.2
Age wise distribution of the respondents.
Age No.of. Percentage
Class Respondents Interpretations:
Below 20 11 18 From the above table it is seen that, 35% of the
20-40 29 48 respondents are persons earning salary, 27% of the
40-60 20 20 respondents are persons involved in business, 23%
of the respondents are others, 10% of the
Above 60 0 0 respondents are students and 5% of the respondents
Total 60 100 are homemakers.

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International Journal of Innovative Knowledge Concepts, 6(7) July, 2018
 ISSN :2454-2415 Vol. 6, Issue 7, 2018 July, 2018 DOI 11.25835/IJIK-123 www.doie.org

TABLE No.4 Interpretations:

Distribution of respondents according to tenure From the above table, 72 percent of the respondents
of holding the bank account are using internet banking services offered by the
Status No. of Percentage bank and the remaining 28 percent of respondents
Respondents are not using it.
below 1year 6 10
1-3 year 18 30 TABLE No.6
3-5 year 19 32 Distribution of Respondents according to the
above 5 year 17 28 usage of facilities of internet banking services:
Total 60 100 Status No.of. Percentage
Respondents
Balance 10 23
Enquiry
Mini statement 8 19
Cheque Based 7 16
enquiry
Fund transfer 6 14
Tax payment 6 14
Statement Of 6 14
cheque
Total 43 100

Interpretations:
It is observed that 35% of the respondents are having
accounts between 3-5 years, 30% of the respondents
are having accounts between 1-3 years, 28% of the
respondents are having accounts above 5 years.
Remaining 10% of the respondents are having
accounts below 1 year with the bank.
Table No 5
Number of respondents using internet banking
service:
Status No. of Percentage
Respondents Interpretations:
Yes 43 71.60 It is observed that majority of them (23%) use
No 17 28.30 internet banking to check their account balance,
Total 60 100 14% use it for fund transfer whereas 16 % use online
banking for cheque based enquiry.

TABLE No.7
Reasons for not using e-banking:
Status No. of Percentage
Yes No Respondents
Confusion 6 35
Inadequate 3 18
information
28%
Security 4 24
Threat
Others 4 24
72% Total 17 100

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International Journal of Innovative Knowledge Concepts, 6(7) July, 2018
 ISSN :2454-2415 Vol. 6, Issue 7, 2018 July, 2018 DOI 11.25835/IJIK-123 www.doie.org

TABLE No.9
Satisfaction Level of the respondents regarding
e-banking facilities.
Status No.of. Respondents Percentage
Excellent 5 12
Very Good 10 23
Good 15 35
Average 10 23
Poor 3 7
Total 43 100

Interpretations:
Around 35% of the bank customers did not use
internet banking due to confusion while 24% feared
that security of financial transactions is at stake,
18% did not have adequate information while the
remaining did not use internet banking for
miscellaneous reasons.

TABLE No.8
Satisfaction level of use of Internet Banking
Services:

Status No.of.Responden Percentag

ts e Interpretations:
It is observed that 35% of the respondents have rated
Lower cost 10 23
the facilities as good, 23% of the respondents have
rated Very Good and Average, 12% of the
Time saving 12 28
respondents have rated Excellent and the remaining
7% have rated poor with respect to the e-banking
Quick 13 30
transactions facilities offered by the bank.
Conclusion
Reduces need 8 19
Increasing use of new technology and intense
to visit bank
competition has forced the banks to adopt e-banking
Total 43 100
to gain competitive advantage, reduce cost and
generate customer satisfaction. The factors that
influence customer commitment towards online
banking include service quality, ease of use, safety,
perceived usefulness and satisfaction. From the
above research, it is observed that 72% of
respondents are using e-banking services. Most of
them viz, 23% are using for balance enquiry. The
bank customers fear using e-banking services due to
lack of security measures and lack of information.
Customer satisfaction by use of latest technology is
the key to long term success of any banking
Interpretations: business. Therefore, proper understanding of
It is observed that around 23% of the respondents customer’s perception of e-banking and meeting
are satisfied because of its low cost, 30% of the their demands and expectations is an intricate
respondents are satisfied because of quicker challenge for banks.
transactions, 28% of the respondents say that it saves
time whereas 19% of the respondents are satisfied
because it reduces the need to visit bank often.

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International Journal of Innovative Knowledge Concepts, 6(7) July, 2018
 ISSN :2454-2415 Vol. 6, Issue 7, 2018 July, 2018 DOI 11.25835/IJIK-123 www.doie.org

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International Journal of Innovative Knowledge Concepts, 6(7) July, 2018

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