DISSERTATION REPORT

ON
“Customer perception towards Internet banking w.r.f to private and
foreign banks in India (use of MDS)”

SUBMITTED TOWARDS THE FULFILLMENT

OF
POST GRADUATE DIPLOMA IN
BUSINESS MANAGEMENT
(APPROVED BY AICTE, GOVT OF INDIA)
(EQUIVALENT TO MBA)
ACCADEMIC SESSION
(2007-2009)
Submitted To: Submitted By: -
Proff. Timira Shukla SIDDHARTH AGARWAL
(Chair Person PGDBM) BM 07149

INSTITUTE OF MANAGEMENT STUDIES

C-238, BULANDSHAR ROAD,
LAL QUAN, G.T.ROAD
GHAZIABAD-201009

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 ACKNOWLEDGEMENT.

A Project report is an assessment of one’s great skill and aptitude. One

needs to devote in immense patience, time and brains for the compilation of one
such rewarding outcome of true efforts.

I am indeed thankful to honorable Director Sir (IMS, Ghaziabad), Dr.

R. K. Bhardwaj who has provided the wonderful opportunity of getting exposed
to industrial and business working know-how. This study enabled me to analyze
and understand the gaining foothold internet banking system in banking senario.
This opportunity availed has immensely enhanced my own creativity and
diversified my thought process by taking a deep insight of various Banks in the
NCR region and the growing inclination of the Indian customer toward internet
banking based on a number of parameters.

I would like to render my sincere heartfelt gratitude to my Project

Mentor Prof. Timira Shukla (Chairperson PGDBM) for her immense
encouragement, guidance and invaluable lecture sessions both before and
throughout my Dissertation. SHe has been an inspirational mentor guiding me
through every step of my project, thus making the entire Dissertation a complete
learning process.

Never the last I would take the opportunity to thank the concerned bank
officials for providing me with the necessary and relevant information. A word of
thanks to the customers for giving in their invaluable time and being a part of the
survey.

SIDDHARTH AGARWAL

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 TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr. SIDDHARTH AGARWAL student of PGDBM

(2007-2009) I.M.S Ghaziabad has done his dissertation under my guidance
and supervision.
He has completed the project titled ““Customer perception towards
Internet banking w.r.f to private and foreign banks in India (use of
MDS)”
For the partial fulfillment of PGDBM under my supervision.

During his project he was found to be very sincere and attentive to small
details whatsoever told to him.

I wish him luck and success in future.

Under the guidance of:

Prof.Timira Shukla
Chair Person PGDBM

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 PREFACE.

Management education in India gained momentum in the early seventies. In the early
stages, faculty, concepts, materials and pedagogy were borrowed from the Western
collaborators. The need for market analysis, strategy and decision making and the need
for contextual relevance of the application of quantitative techniques to developing
countries has been increasingly felt because management principles are not only being
applied to business and industry, but also to newer areas like rural development, non-
profit making organizations and non-enterprise management.

Banking is a highly information intensive activity that relies heavily on information

technology (IT) to acquire, process, and deliver the information to all relevant customers.
Banks used the Internet technology as a strategic weapon to revolutionize the way they
operate, deliver, and compete against each other. As a result Online Banking was
introduced as a channel where bank customers could perform their financial transactions
electronically via their banks’ Web sites. An Online Banking user is expected to perform
at least one of the following transactions online:
1. Checking account balance and transaction history
2. Paying bills
3. Transferring funds between accounts
4. Requesting credit card advances
5. Ordering checks
6. Managing investments and stocks trading
From a bank’s perspective, using the Internet is more efficient than using other
distribution mediums because banks are looking for an increased customer base. Using
multiple distribution channels increases effective market coverage by enabling different
products to be targeted at different demographic segments. Also Banks cannot risk
loosing customers to competitors within the aggressive competition in the banking
industry around the world. Moreover Internet delivery offers customized service to suit
the needs and the likes of each user. Mass customisation happens effectively through
Online Banking. It reduces cost and replaces time spent on routine errands with spending

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time on business errands. Online Banking means less staff members, smaller
infrastructure demands, compared with other banking channels. From the customers’
perspective, Online Banking provides a convenient and effective way to manage finances
that is easily accessible 24 hours a day, seven days a week. In addition information is up
to date. Nevertheless Online Banking has disadvantages for banks like how to work the
technology, set-up cost, legal issues, and lack of personal contact with customers. And for
customers there are security and privacy issues

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 TABLE OF CONTENT

PREFACE …………………………………………………………………….4
CHAPTER 1: EXECUTIVE SUMMARY………………………….8
1.1 INTRODUCTION ………………………………....9
1.2 OBJECTIVE OF THE STUDY…………………….11
1.3 LITERATURE SURVEY…………………………..12
1.4 RESEARCH METHODOLOGY…………………...15

CHPATER 2: DATA ANALYSIS AND INTERPRETATION

2.1 ANALYSIS………………………………………...17

CHAPTER 3: CONCLUSION AND RECOMMENDATION…….28

CHAPTER4: LIMITATION……………………………………….29

CHAPTER5: BIBLOGRAPHY…………………………………... 30

CHAPTER5: ANNEXURE………………………………………..32

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 LIST OF TABLES AND FIGURES

TABLES PAGE NO.

TABLE1……………………………………………………..17
TABLE2……………………………………………………..18
TABLE3……………………………………………………..19
TABLE4……………………………………………………..20
TABLE5…………………………………………………….. 21
TABLE6…………………………………………………….. 27
TABLE7……………………………………………………...27

FIGURE

FIGURE1…………………………………………………….17
FIGURE2…………………………………………………….18
FIGURE3…………………………………………………….19
FIGURE4…………………………………………………….20
FIGURE5…………………………………………………….21
FIGURE6…………………………………………………….22
FIGURE7…………………………………………………….23
FIGURE8…………………………………………………….26

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 EXECUTIVE SUMMARY

An analysis of the differences in risk perceptions between bank customers using Internet
Banking and those not using Internet Banking was done and it showed that risk
perceptions in terms of financial, psychological and safety risks among customer not
using the internet was more meaningful than those using internet banking. Customers not
preferring to use internet banking thought that they would be swindled when using this
service, and therefore, are particularly careful about high risk expectation during money
transfers from and between accounts. Only 37% of Indian Internet users come from Top
10 cities i.e. Mumbai, Bangalore, Delhi, Calcutta, Chennai, Pune, Hyderabad,
Ahmedabad, Surat and Nagpur. Another day and another number. As per IAMAI and I-
cube, the number of active Internet user (i.e. ones who logon to Internet atleast once a
month) is now 32 million and numbers who have used Internet atleast once stands at 46
million. Maximum of the person who are going on for internet banking lies in the age
bracket of 26-35. but the rise in the age the level of users become low.

Approximately 17% of female use internet banking. This a matter of concern for a banks
what are the causes why this is happening.

Although many major banks have started offering i-banking services, the slow pace will
continue until the critical mass is achieved for PC, internet connections and telephones.
However, the upsurge of IT professionals with growing demands is pressuring the
government and bureaucracy in the country to support and develop new initiatives for a
faster spread of i-banking. But then to there is a fear in mind of customer using internet
as a medium for the banking transaction.

Private and foreign banks are trying to turn more and more customer towards the usage if
internet for the banking transaction. This study is basically to know the relation of various
independent variables on the customer usage of internet for banking.

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 INTRODUCTION

What is bank?
A banker or bank is a financial institution whose primary activity is to act as a payment
agent for customers and to borrow and lend money. It is an institution for receiving,
keeping, and lending money.
What is online banking?
Online banking (or Internet banking) allows customers to conduct financial transactions
on a secure website operated by their retail or virtual bank, credit union.
Need for internet banking: One has to approach the branch in person, to withdraw cash
or deposit a cheque or request a statement of accounts. In true Internet banking, any
inquiry or transaction is processed online without any reference to the branch (anywhere
banking) at any time. Providing Internet banking is increasingly becoming a "need to
have" than a "nice to have" service. The net banking, thus, now is more of a norm rather
than an exception in many developed countries due to the fact that it is the cheapest way
of providing banking services

Banks have traditionally been in the forefront of harnessing technology to improve their
products, services and efficiency. They have, over a long time, been using electronic and
telecommunication networks for delivering a wide range of value added products and
services. The delivery channels include direct dial – up connections, private networks,
public networks etc and the devices include telephone, Personal Computers including the
Automated Teller Machines, etc. With the popularity of PCs, easy access to Internet and
World Wide Web (WWW), Internet is increasingly used by banks as a channel for
receiving instructions and delivering their products and services to their customers. This
form of banking is generally referred to as Internet Banking, although the range of
products and services offered by different banks vary widely both in their content and
sophistication.

India’s banking sector is growing at a fast pace. India has become one of the most
preferred banking destinations in the world. The reasons are numerous: the economy is

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growing at a rate of 8%, Bank credit is growing at 30% per annum and there is an ever-
expanding middle class of between 250 and 300 million people (larger than the
population of the US) in need of financial services. All this enables double-digit returns
on most asset classes which is not so in a majority of other countries. Foreign banks in
India achieving a return on assets (ROA) of 3%, their keen interest in expanding their
businesses is understandable – even more so when compared with the measly 1% average
ROA for the Top 1000 banks in the world.

From the perspective of banking products and services being offered through Internet,
Internet banking is nothing more than traditional banking services delivered through an
electronic communication backbone, viz, Internet. But, in the process it has thrown open
issues which have ramifications beyond what a new delivery channel would normally
envisage and, hence, has compelled regulators world over to take note of this emerging
channel. Some of the distinctive features of i-banking are:
1. It removes the traditional geographical barriers as it could reach out to customers of
different countries / legal jurisdiction. This has raised the question of jurisdiction of law /
supervisory system to which such transactions should be subjected,
2. It has added a new dimension to different kinds of risks traditionally associated with
banking, heightening some of them and throwing new risk control challenges,
3. Security of banking transactions, validity of electronic contract, customers’ privacy,
etc., which have all along been concerns of both bankers and supervisors have assumed
different dimensions given that Internet is a public domain, not subject to control by any
single authority or group of users,
4. It poses a strategic risk of loss of business to those banks who do not respond in time,
to this new technology, being the efficient and cost effective delivery mechanism of
banking services,
5. A new form of competition has emerged both from the existing players and new
players of the market who are not strictly banks.

Why this research: An analysis of the differences in risk perceptions between bank
customers using Internet Banking and those not using Internet Banking was done and it

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showed that risk perceptions in terms of financial, psychological and safety risks among
customer not using the internet was more meaningful than those using internet banking.
Customers not preferring to use internet banking thought that they would be swindled
when using this service, and therefore, are particularly careful about high risk expectation
during money transfers from and between accounts. Only 37% of Indian Internet users
come from Top 10 cities i.e. Mumbai, Bangalore, Delhi, Calcutta, Chennai, Pune,
Hyderabad, Ahmedabad, Surat and Nagpur. Another day and another number. As per
IAMAI and I-cube, the number of active Internet user (i.e. ones who logon to Internet
atleast once a month) is now 32 million and numbers who have used Internet atleast once
stands at 46 million. Maximum of the person who are going on for internet banking lies
in the age bracket of 26-35. but the rise in the age the level of users become low.
Approximately 17% of female use internet banking. This a matter of concern for a banks
what are the causes why this is happening.
Although many major banks have started offering i-banking services, the slow pace will
continue until the critical mass is achieved for PC, internet connections and telephones.
However, the upsurge of IT professionals with growing demands is pressuring the
government and bureaucracy in the country to support and develop new initiatives for a
faster spread of i-banking. But then to there is a fear in mind of customer using internet
as a medium for the banking transaction.
Private and foreign banks are trying to turn more and more customer towards the
usage if internet for the banking transaction. This study is basically to know the relation
of various independent variables on the customer usage of internet for banking.

OBJECTIVE OF THE STUDY

• Perceptual mapping of internet banking users.

• To know the cause why customers are not using internet banking
• To know which age group of customers is using different e-banking facilities.

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 LITERATURE REVIEW

In India still there is lack of users for internet as a medium for banking purpose, but the
banking system are upgrading and bringing many electronic banking medium for
customers so that banking can be made more convenient.
[1] Joseph et al. (1999) investigated the influence of internet on the delivery of
banking services. They found six underlying dimensions of e-banking service quality
such as convenience and accuracy, feedback and complaint management, efficiency,
queue management, accessibility and customization. Jun and Cai (2001) identified 17
service quality dimensions of i-banking service quality. These are reliability,
responsiveness, competence, courtesy, credibility, access, communication, understanding
the customer, collaboration, continuous improvement, content, accuracy, ease of use,
timeliness, aesthetics, security and divers features. They also suggested that some
dimensions such as responsiveness, reliability and access are critical for both traditional
and internet banks. Jayawardhena (2004) transforms the original SERVQUAL scale to
the internet context and develops a battery of 21 items to assess service quality in e-
banking. By means of an Exploratory Factor Analysis (EFA) and a Confirmatory Factor
Analysis (CFA), these 21 items are condensed to five quality dimensions: access, website
interface, trust, attention and credibility.

From the provider perspective, there are target quality and delivered quality. The focus of
process- or supply-led quality definition is rather internal than external, and it is defined
as conformance to requirements. It lays emphasis on the importance of the management
and the supply-side quality, and there is an important role of the process in determining
the quality of outcome (Ghobadian, 1994). Achieving the quality of conformance
between the planned (target) quality level and the real quality delivered to customers
depends on the service quality management system in an organization.

[2] IAMAI report on online banking 2006. 43% of online banking user haven’t
started online financial transaction because of security reasons, 39% haven’t started
because they prefer face to face, 22% haven’t started because they don’t know how to
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use, for 10% sites are not user friendly and for 2% banks are not providing the facility of
internet banking. According to research 68% of the customers can not say that when they
will be starting the financial transactions through internet.
Maximum numbers of online banking users are male and maximum of them are in age
the group of 25-35. Numbers of female users are very less i.e. 17% only. More than 60%
of the people who are having account with have accounts in 3-4 banks.

Only 37% of Indian Internet users come from Top 10 cities i.e. Mumbai, Bangalore,
Delhi, Calcutta, Chennai, Pune, Hyderabad, Ahmedabad, Surat and Nagpur. Another day
and another number. As per IAMAI and I-cube, the number of active Internet user (i.e.
ones who logon to Internet atleast once a month) is now 32 million and numbers who
have used Internet atleast once stands at 46 million.

[3] The Indian Internet Banking Journey In 2001, a Reserve Bank of India
survey revealed that of 46 major banks operating in India, around 50% were either
offering Internet banking services at various levels or planned to in the near future.
According to a research report,( India Research, Kotak Securities, May 2000.) while in
2001, India's Internet user base was an estimated 9 lakh; it was expected to reach 90 lakh
by 2003. Also, while only 1% of these Internet users utilized the Internet banking services
in 1998, the Internet banking user base increased to 16.7% by mid- 2000.

[4] Meuter et al. (2000) have identified critical incidents of customer

satisfaction and dissatisfaction with technology-based service encounters. Given that
business-to-business transactions are the fastest growing segment of technology-driven
services (Hof, 1999); Meuter and his colleagues (2000) suggested investigating what
drives business customer satisfaction or dissatisfaction with technologydriven services.
According to Gönroos (1982), customers distinguish the quality of customer interactions
that take place during service delivery (functional quality) and the quality of the outcome
the customer receives in the service encounter (technical quality).

Customers perceive the quality of services of Internet banking based on the performance
of online delivery systems – not on the processes in which the delivered service is
developed and produced. Because customers perceive Internet banking service quality

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based on relatively standardized outcomes determined by online systems, customer
attitudes toward that outcome reflect overall quality of services delivered

Customers usually perceive risks in conducting transactions electronically and

particularly if the transactions involve money. Risk perception can be of six different
types: time risk, finacial risk, performance risk, psychological risk and
safety/confidentiality risk. It is generally considered that risk perception could be higher
for electronic banking services. This study aims to understand extent to which whether
this is consideration is valid as well as to determine the levels of risk perception
differences among those using Internet Banking and those not using it.

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 RESEARCH METHODOLOGY

RESEARCH TYPE
We use descriptive research and exploratory research design in our studies. Descriptive
research is also called Statistical Research. The main goal of this type of research is to
describe the data and characteristics about what is being studied. The idea behind this
type of research is to study frequencies, averages, and other statistical calculations.
Although this research is highly accurate, it does not gather the causes behind a situation.
Descriptive research is used to obtain information concerning the current status of the
phenomena to describe "what exists" with respect to variables or conditions in a situation.
Here we also tried to find out the main cause why there is perceptual blocking of the
Indian customers towards internet banking. The methods involved range from the survey
which describes the status quo, the correlation study which investigates the relationship
between variables, to developmental studies which seek to determine changes over time.

• Statement of the problem

• 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

DATA COLLECTION
Primary Data: Structured Questionnaire
Secondary Data: Online Database, Journals, Surveys

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SAMPLING
We have used convenience sampling technique. It is also called haphazard or accidental
sampling. Members of the population are chosen based on their relative ease of access.
To sample friends, co-workers, or shoppers at a single mall, are all examples of
convenience sampling. Sometimes called grab or opportunity sampling, this is the
method of choosing items arbitrarily and in an unstructured manner from the frame.
Though almost impossible to treat rigorously, it is the method most commonly employed
in many practical situations.

Sample Unit: NCR Internet Users (for banks)

Sample Technique: Convenient sampling
Sample Area: NCR
Sample Size: 150

TOOLS
Statistical : SPSS
Techniques : MDS and Multiple Regression

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 DATA ANALYSIS AND INTERPRETATION
Q1)

age own a internet don’t have internet

18-25 27 3
26-35 51 1
36-45 20 2
46-60 8 4
61-+ 1 3

Table 1

Figure1
From the above interpretation we can say that age group between 18-25 own
a internet of 27%while % who don’t own an internet is 3%, similarly %
between 26-35 own an internet of 51% while 1 %don’t own internet, 36-45
own an internet of 20% while 2%don’t own, 46-60 own 8%internet while
4% don’t own, 61and above own 1 %internet, 3%don’t own. Finally we can
see that age group 26-35 own maximum % of internet.

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Q2) The time you are using internet
A) less then a month
B) 1 to 6 months
C) 6 to 12 months
D) More than a year

age A) less then a month A) 1 to 6 months A) 6 to 12 months

18-25 3 2 12
26-35 0 0 15
36-45 0 3 0
46-60 0 2 8
61-+ 1 3 0

Table 2

Figure2
From the above interpretation we can say that all the younger have been
using internet since last one year but age group between 36-45, 46-60and 61
and above have started using internet in recent . finally we can the age
group between 26-35 are the maximum users of the internet .

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Q3) Frequency of visiting your bank branch per month?
a) Less than 1
b) 1 to 3 times
c) 3 to 8 times
d) 8 to 12 times
e) over 12 times

age <1 1 to 3 3to8 8to12 12+

18-25 11 14 10 3 2
26-35 4 1 3 8 26
36-45 2 3 2 4 5
46-60 4 8 2 2 1
61-+ 5 0 0 0 1

Table3

Figure3
From the above inerpretation we can say that in comparison to all the above
age groups maximum no. of time that is being visited to the bank is of age
group between 26-35 that’s is around 12 times in a month .

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Q4) the main reason that you typically visit your bank branch (please choose the single
most important reason)?
• to make a deposit
• to get advice for investment options
• to inquire about a balance
• to withdraw cash
• other

age deposit Advice balance withdrawal Others

18-25 10 8 13 7 2
26-35 10 4 7 17 4
36-45 3 0 4 7 2
46-60 4 4 5 4 0
61-+ 1 0 2 3 0

Table 4

Figure4
From the above interpretation we can say that the reason for visiting bank
maximum no. of time is basically is for the cash withdrawl that to is done by
the agr group between 26-35 that is of 17.

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Q5) the e-banking facilities provided by your bank?
• ATM
• Online banking
• Telephone banking
• Mobile banking
• SMS banking

age atm online telephone mobile sms

18-25 20 21 12 15 25
26-35 10 29 14 18 30
36-45 2 16 2 15 12
46-60 14 25 2 2 14
61-+ 5 2 2 2 5
Table 5

Figure5
From the above itnerpretation we can say that all the above age gropus says
that the mostly all the facilites is provided by their banks wheteher it be atm
online, telephone , mobile expcept to the person who belong to the age
group of 61 and above .

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Q6) what banking services do you use which your Internet bank offers? (Please check all
you are currently using)

• Seeking product and rate information

• Calculate loan payment information
• Download loan applications
• Download personal bank transaction activity.
• Check balances on-line
• Apply for consumer loans or credit cards online
• Inter-account transfers
• On-line bill payments
• Others

Figure6
From the above interpreatation we can that the perosn use internet bank
offers basically for seeking product and rate information and seconly for
checking balance and then they use for to download loan information ,then
to dowmload personal bank transaction activities .

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Q7) what was the single most important reason that you chose this particular bank as
your Internet bank? (Please choose one)
• I have a traditional bank account with the same bank
• The brand name of the bank
• The excellent service offered by this bank
• Others

Figure7
From the above interpretation we can say that the reason for choosing
particular bank for internet bank account is beacause of the excellent
services offered by the bank and second most improtant reason is that of
brand name of the bank .

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MDS
After filling up the 63 column and 120 rows of SPSS data we get the table of responses of
120 respondents’ perception about our 6 brands and their 9 attributes. We calculate the
weighted mean of every column and finally we get the 6*10 matrix form of our
weighted mean MDS data, which would be input to SPSS for final MDS output. The
6*10 matrix is given below-

Parameters detuch hdfc citibank icici hsbc yesbank

Accessib 2.8800 3.4179 3.4706 3.2791 3.4051 2.8545
Account 2.9517 3.5385 3.5550 3.2532 3.3819 2.8824
Bank ser 4.2475 3.6963 3.5468 3.9609 4.0975 2.7358
Convenie 2.8101 3.5365 3.8282 2.8101 3.4356 2.7734
design 3.2441 3.8142 3.5550 3.0222 3.1170 2.7429
Encourag 2.6790 3.2791 3.5385 2.8698 3.4051 2.7836
Location 3.2687 3.2574 3.1222 2.9707 2.8500 2.4000
Training 2.1745 3.2791 3.7123 2.6493 3.3490 2.4468
user fri 3.8692 2.7087 3.3544 2.6238 3.4051 2.9401

The Lower Triangular matrix

Raw (unscaled) Data for Subject 1

1 2 3 4 5

1 .000
2 2.172 .000
3 2.393 .932 .000
4 1.511 1.407 1.937 .000
5 1.786 1.163 .954 1.361 .000
6 2.061 2.264 2.475 1.540 2.146

6 .000

The index of fit or R-square and stress should be measured. Thus R-square indicates
goodness of fit, whether stress value represents badness of fit. So for any research higher

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value of R-square and lower value of Stress is expected. The high R-square value
represents MDS model is well fitted with the given problem. In our case,
Stress = .01817 RSQ = .99785

Young's S-stress formula 1 is used.

Iteration S-stress Improvement

1 .02311
2 .01992 .00319
3 .01838 .00154
4 .01698 .00139
5 .01564 .00134
6 .01434 .00130
7 .01327 .00107
8 .01266 .00061

Iterations stopped because

S-stress improvement is less than .001000

Stress and squared correlation (RSQ) in distances

For matrix
Stress = .01817 RSQ = .99785

Configuration derived in 2 dimensions

Stimulus Coordinates

Dimension

Stimulus Stimulus 1 2
Number Name

1 detuch 1.1537 1.4040

2 hdfc -1.0363 -.3486
3 CITIBANK -1.5704 -.1294
4 ICICI .5452 -.0590
5 HSBC -.7060 .3541
6 yesbank 1.6138 -1.2210

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 Optimally scaled data (disparities) for subject 1

1 2 3 4 5

1 .000
2 2.800 .000
3 3.126 .577 .000
4 1.590 1.590 2.126 .000
5 2.126 .890 .890 1.318 .000
6 2.665 2.800 3.366 1.590 2.800

6 .000

Derived Stimulus Configuration

Euclidean distance model

1.5 detuch

1.0

0.5 HSBC
Dimension 2

ICICI
0.0 CITIBANK
hdfc

-0.5

-1.0
yesbank

-1.5

-2 -1 0 1 2
Dimension 1
Figure8

As we can detuch bank is leading in both d dimensions where as there is a competition

between HSBC Citibank and hdfc. But the least is among the yesbank. Icici bank is close

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to positive response but here we can see that there is some areas where the bank has to
work on to improve.

For your choice of an Internet bank, please indicate how much each of the following
factors (were) are important for you:
MEAN OF ALL RANKS
Statistics

Convenience Curiosity rates Safe Charge transaction shopping

N Valid 120 120 120 120 120 120 120
Missing 0 0 0 0 0 0 0
Mean 3.1083 2.9333 2.9667 2.9833 2.7083 2.9250 2.5083
Table 6
BY THIS WE CAME TO KNOW THAT PEOPLE USING INTERNET BECAUSE OF
CONVINENCE ARE MOE AND LESS BECAUSE O SHOPPING.
The main reasons that you have not opened an Internet bank account yet? (Check all that
apply)

Statistics

NEVERHR SECURIT CHECKFIRS NOTAVALIAB

D Y TIME DNTWNT T L OTHERS
N Valid 30 30 30 30 30 30 30
Missing 0 0 0 0 0 0 0
Mean 3.0000 3.3333 2.6000 3.1333 2.5000 2.9333 2.6000

Table 7

Security is the main reason why people are not opening the internet bank acounts where
as the second highest goes to they don’t want to try new thing.

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 CONCLUSION AND RECOMMENDATIONS

There is still a lot needed for the banking system to make reforms and train there
customers for using internet for there banking account. Going through the survey the
main problem lies that still customer have a fear of hacking of accounts and thus do
not go on for internet banking. Banks are trying there level best by providing the best
security options to the customers but then to there is lot of factors which betrays a
customer from opening an internet bank account.

Banks are providing free internet banking services also so that the customers can be
attracted. By asking the bank employs we came to know that maximum numbers of
internet bank account holders are youth, business man and HNI’s.

If proper training should be given to customer by the bank employs to open an

account will be beneficial secondly the website should be made friendlier from where
the first time customers can directly make and access there accounts.

We can see the time is changing and we he passage of time people are accepting
technology there is still a lot of perceptual blocking which hampers the growth it’s the
normal tendency of a human not to have changes work on the old track, that’s also
one of the reason for the slow acceptance of internet banking accounts.
• Give proper training to customers for using i-banking
• Create a trust in mind of customers towards security of there accounts
• Provide a platform from where the customers can access different accounts at
single time without extra charge.
• Make there sites more users friendly.
• Customers should be motivated to use I banking facilities more.

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 LIMITATIONS

1. Time Constraints.

2. Budgetary Constraints.

3. The participants comprised a small sample, which can be generalized across the
sector.

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 BIBLOGRAPHY

BOOKS
1) Marketing research by BERRY G.C
2) Marketing Research by Malhotra N.K. , fifth edition
SITES
(http://www.icmrindia.org/free%20resources/casestudies/banking1.htm#b1
www.hdfcbank.com/
www.hsbc.co.in/
www.icicibank.com/
www.yesbank.in/
www.db.com
en.wikipedia.org/wiki/Perceptual_mapping
www.rocw.raifoundation.org/fashion/BAfashion-mktg/brandpositioning/lecture-
notes/lecture-04.pd
en.wikipedia.org/wiki/Multidimensional_scaling

REFRENCES
1. Khan, M.S., Mahapatra, S.S. and Sreekumar (2009) ‘Service quality evaluation in
internet banking: an empirical study in India’, Int. J. Indian Culture and Business
Management, Vol. 2, No. 1, pp.30–46.

2. IAMAI report on online banking 2006

3. The Indian Internet Banking Journey - Nachiket Mor, Head of ICICI's Treasury,
in March 2000.

4. The Impact Of Internet Banking Service Quality On Business Customer

Commitment

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 Annexure

This survey is designed to understand bank account holders perspectives on

Internet banking, their experience with Internet banking, and their expectations on
Internet banking services

QUESTIONNAIRE

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Name …………………………………………………………………..
Age 18-25__ , 26-35__, 36-45__, 46-60__, 60 +____
Gender - MALE FEMALE
Occupation …………………………………………………………….

2) Do you own a internet?

a) Yes b) No
3) The time you are using internet
A) less then a month
B) 1 to 6 months
C) 6 to 12 months
D) More than a year

3) Frequency of visiting your bank branch per month?

a) Less than 1
b) 1 to 3 times
c) 3 to 8 times
d) 8 to 12 times
e) over 12 times

4) The main reason that you typically visit your bank branch (please choose the single
most important reason)?
• to make a deposit
• to get advice for investment options
• to inquire about a balance
• to withdraw cash
• other

5) The e-banking facilities provided by your bank?

• ATM
• Online banking
• Telephone banking
• Mobile banking
• SMS banking

6) The e-banking services you use provided by the bank?

• ATM
• Online banking

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 • Telephone banking
• Mobile banking
• SMS banking

~~~For those who uses internet banking service~~~

What is the name of bank you have an Internet bank account with? ________

What are the most important reasons you opened an Internet bank account? (Please
prioritize the following list in the order of importance.

(1: the most important 6: the least important)

Convenience (24 hours service, anywhere connectivity) ______________

Curiosity______________

Better rates______________

Safe and secure______________

Low service charge______________

Easy to maintain my banking transaction activity______________

Online shopping ___________________

What banking services do you use which your Internet bank offers? (Please check all you
are currently using)

• Seeking product and rate information

• Calculate loan payment information
• Download loan applications
• Download personal bank transaction activity.
• Check balances on-line
• Apply for consumer loans or credit cards online
• Inter-account transfers
• On-line bill payments
• Others

What was the single most important reason that you chose this particular bank as your
Internet bank? (please choose one)

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 • I have a traditional bank account with the same bank
• The brand name of the bank
• The excellent service offered by this bank
• Others

In addition to your Internet bank account, do you also have a traditional bank account?
• Yes
• No

Rank the following brands on the scale of 1-5

1-Poor 5-
very good

PARAMETERS / HDFC DEUTSCHE CITIBANK ICICI HSBC YES

BRANDS BANK
Bank service

Account security

Accessibility

Convenience

Training to use
banking services
Encourage
customer to use e-
banking
Location

Customer Relation
Management

USER
FRIENDLINESS

For those who didn’t use internet banking

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The main reasons that you have not opened an Internet bank account yet? (check all that
apply)

• Never heard of Internet banking

• Concerned about security
• Haven't taken time to open an account
• Don't see any real value in having this type of account
• Too new. I would like to see how it works, then I may open an account
• Not available through my bank
• others

For your choice of an Internet bank, please indicate how much each of the following
factors (were) are important for you:
1. Better rate and lower service charge______________

2. Bank familiarity______________

3. Bank location (geographic) ______________

4. The size of bank (in terms of asset) ______________

5. Security of Transaction______________

6. Convenience (24 hours service from anywhere) ______________

7. Quick service (transaction completed in seconds instead of minutes)

______________

8. Variety of features and services that are offered(for example; bill payment,
account reconciliation, electronic bill payment) ______________

9. Integrated value-added services using other on-line services and resources

(for example; other brokerage account summary) ______________

Thank You

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