A report

on
The study of consumer
awareness about E-Banking
services and its application in
selected area of Bangladesh
Introduction
E-banking is defined as the automated delivery of new & traditional
banking products & services directly to customers through electronic,
interactive communication channels. E-banking includes the systems
that enable financial institution, customers, individuals & businesses
to access accounts, transact business or obtain information on
financial products & services through a network including the
internet.

The popular services covered under E-banking include:-

1. Automated Teller Machines
2. Credit Cards
3. Debit Cards
4. Smart Cards
5. Electronic Funds Transfer (EFT) System
6. Cheque Truncation Payment System
7. Mobile Banking.
Objective of the study
The purpose of research is to discover answers to
questions through the application of scientific
procedures. The main aim of research is to find out the
truth which is hidden and which has not been discovered
as yet. Though each research study has its own specific
purpose.

To know the awareness level of E-Banking in Dhaka City.
To analyze the customer satisfaction level in Dhaka City.
To know the problems in E-Banking operation faced by
customers.
To know the customers suggestions about new required
features.
Research Methodology
For this particular research we have used scientifically
made questionnaire to do a survey to know about the
consumers. The research survey was answered by a
mix group of people living in Dhaka City. The survey
was conducted through questionnaires to a group of
people and only 50 respondents filled in our survey that
focused on gathering information about awareness,
usage of and expectations about the internet banking.

Research Question
Research Design
Sample size
Sampling Method
Data Collection
The respondent profile who participated in
the study is given below
Sex Consumers pool Percentage
Male 28 56%
Female 22 44%
Education
High school 1 2%
Undergraduate 36 72%
Post Graduate 13 26%
Limitations
There are certain limitations we have faced during this data
collection period through these surveys. In our country, consumers
are more likely to be conservative so that to process the
information is difficult. Besides that, we have faced some more
limitations. Those are stated below:

Consumers are not familiar with surveys.
Many are not interested in giving their opinions.
Information is not precisely given.
Time consuming because of the awareness about surveys.
Narrow sample size.
Banks are not helpful for disclosing information.
They do not permit to meet any of the employees in their bank.
Literature Review
The vast majority of the banks that avoided Internet banking in the
beginning did so because they simply did not see the benefits of
using it. Polatoglu & Kin (2001) state that the average internet
banking transaction costs the institution only one twentieth of teller
transaction.

On the importance of trainability, Rogers (1983) and Agarwal and
Prasad (1998) stated that potential adopters of new technology,
who are allowed to experiment with it, would feel comfortable with
it and thus be more likely to adopt it. According to Tan and Teo
(2000) if customers are given the chance to try the innovation, it
will minimize certain fears, especially when customers found that
mistakes could be rectified and thus providing a predictable
situation. A more rapid diffusion occurs when consumers can have
low-cost or low-risk trial of the service. Internet banking services
are free. The cost and risk to trial are relatively low especially when
Internet access is available from work.
Findings
In this research we have selected 5 questions to
determine the overall awareness level of the consumer
on E-Banking in Dhaka. The people we use in our
research are maximum undergraduate. But we ensure
that they all have at least 1 bank account so that it
would be easy to evaluate the results.

Through these following 5 questions we have evaluated
the mean and the standard deviation level to determine
the consumer awareness level which is the main
objective of the research.
At first we have determine a descriptive statistics on the awareness
about the E-banking tools from the Yes-No questions. The result is
given below:









According to the standard deviation here, we can see that
consumers are aware of ATM than the other E-Banking tools.

Q.1 Awareness level of the following E-Banking tools








Here we can say, according to the standard deviation
consumer are most likely to be aware of Internet
banking.
Q.2 Frequency level of using E-Banking tools








According to the descriptive statistics we can see that
the credit card use has the least standards deviation so
that it has the most frequent used E-banking tools.
Q.3 Convenience level of using E-Banking tools







In here, Internet Banking got the least standard
deviation.
Q.4 Preference level of using E-banking tools
than physical banking






Internet Banking got the most preference.
Q.5 Rate of overall satisfaction level with e-
banking







Consumers are more likely to be satisfied with
credit cards.
Recommendations

After conducting the research we have concluded some recommendations
for the banks to modify their banking system to meet the customer
satisfaction level. The recommendations are stated below:

Banks should use several field programs to raise the awareness level
especially about Internet Banking & Mobile Banking.
Govt. should take several steps to raise the awareness level in the remote
areas.
Several media should be used to tell the detailed facilities of E-Banking
rather than physical banking.
Internet bandwidth and security level should be increased to secure the
Internet banking system.
Banks should ensure the safety level of Internet banking.
ATM Booths should be maintained properly to reduce the harassment
level.
Banks should be more co-operative to dissolve the problems of the
consumers.
The operating procedures of Internet banking should be more convenient.
Conditions for the credit cards should be loosening up.
The whole banking procedures should be more advanced and feasible.
Conclusion
According to the research done above we can conclude
that the rate of consumer awareness about E-Banking
in Dhaka is considerably good but the matter of fact is
that people are using ATM and Mobile Banking as the
E-Banking tools where the ratio of the use of Internet
Banking is relatively low. In those two most usable E-
Banking tools ATM is giving too much hassle so that
consumers are also being diverted towards physical
banking. People are still not so familiar with the service
so, consumers should be aware of the Internet Banking
system to be as fast as the consumers around the
globe. So, Banks and Govt. should take necessary
steps to raise the awareness level and meet the
satisfaction level through the existing E-Banking tools.