International Journal of Technology & Engineering

Customers

ISSN 2455-9121

PerceptionogyEnabled BankingaboutServices:TechnoA

Case Study of Patiala District

Jyotsna Sharma1, Dr. B.L. Sethi2
1
Research Scholar in Management, I.K.Gujraj Punjab Technical University, Kapurthala-Jalandhar, Punjab, India
2

Dean & Professor, JSSIET, Kauli, Patiala

jyotsna1_sharma@yahoo.com

Abstract: The Technology enabled banking application has advanced significantly during recent years in the big cities
across the whole nation, whereas the development of e-banking application has been far behind in many rural areas. The
banks in rural areas have been implementing Technology based banking services during recent years. Even then there is
lot of gap between the usage & application of these services between rural & urban area customers. The primary
objective is to study the awareness related to the E banking facilities provided by the banks in the rural area customers.
The study analyses the socio economic & demographic profile of rural area customers of Patiala district. It aims to draw
the logical conclusion & to propose constructive suggestions in the light of result drawn from the present research study.

1. INTRODUCTION
India lives in numerous villages, scattered throughout th population and have historically accounted for more than half of Indian
consumption. With increasing urbanization and
migration, it is estimated that 63% of Indiaspopulation will continue to live in rural areas by 2025. Rural areas will
continue to remain vitally important to the Indian economy. According to the 2011 Census, there are 6,40,867 villages in
India and about 83.3 crores of Indian population lives in these villages among 121 crores of total population. Rural India
accounts for 48 percent of the countrys economy and t
With the global spread of government deregulation and the resultant consolidation and increase in the number of
competitors banks face in their major markets, more banks and other financial institutions have become technologically
market driven, customer and sale oriented. Electronic banking (e-Banking)
emerges from mental
paradigm shift and combination of computer and telephone (web) based technologies,
application, strategies, organizations and processes to promote financial technology marketing and retail banking.
Technology enabled banking services include websites offering internet banking services, automated teller machines
(ATMs), point of sales (PoS) terminals as well as the use of mobile digital telephones.
The computer-and-telephone based systems, bank customers can check, deposits, move money from one account to
another, pay bills, set up new accounts, request for loans, and invest spare cash any time of the day or night. It has
reduced the time managers spend in routine operations, thus allowing greater opportunity for planning new services and
new service delivery facilities that reflect the latest technology. The e-banking application has advanced significantly
during recent years in the big cities across the whole nation, whereas the development of e-banking application has been
far behind in many rural areas. The banks in rural areas have been implementing E-banking during recent years. Even
then there is lot of gap between the usage & application of these services between rural & urban area customers. The
primary objective is to study the awareness related to the E banking facilities provided by the banks in the rural area
customers.

2. STUDIES BYGONE
The vitality of technology utilization by banks in establishing competitiveness in rural areas is unarguable. The
computer-mediated environment has profound implications particularly in the banking sector and it is widely
acknowledged that customers increasingly require instant gratification through the use of new technologies.
Jiaqin Yang and Kh Tanveer Ahmed(2009) describes a case study about the major issues and challenges in the
development of the electronic banking (e-banking) industry of a relatively underdeveloped nation. In his study titled
Recent trends and-banking developmentsinanunderdevelopednation -anin empiricalhe applicationstudy he of e-banking can help
their local banks reduce operating costs and provide a better and fast service to their customers.

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The research investigated the then recent trends and developments in e-banking and provided managerial insights for the
banking industry in the underdeveloped nations.
Reginald Masocha, Norman Chiliya and Stanislous Zindiye( Mar 2011), in their study titled E-banking adoption by
customers in the rural milieus of South Africa: A case of Alice,videsprimaryEaster information to guide banks in structuring their
marketing strategies, quality improvements and business processes on the
backdrop of rural milieus. The majority of people prefer modern banking methods to traditional methods unfortunately,
there is a huge gap between ownership and usage of e-banking resources entailing that there is no effective utilisation of
technologies owned by rural customers.
Akram Jalal(September 2011) in his studyMotivatingEvaluatingtheProcess
of E-banking identifiedfactorswhichareimportant with respect to the users adoption-bankingservices. Credibilityof
factors (Security and Privacy) are the major sources of dissatisfaction, which have satisfaction. Perceived ease of use (PEOU) and
perceived usefulness (PU) are sources of satisfaction. The research also
disclose that security and privacy factors play an important -bankingpart in services with respect to different segmentation of age
group, income level and level of education.
Rifat O. Shannak(2013) has to examined the -bankingcurrentindustry, identifystatusitsstrengthsofand Jorda weaknesses, and use the
findings in formulating future recommendations to make a contribution to knowledge in the
chosen area. He examined in his research study named IssuesKeyInE-Banking Strengths And Weaknesses: The Case Of
Two Jordanianthatwhilethe Banksinfrastructure is advanced in comparison to some of the other regional examples, it
was still below the Western standards. It also has been established that the Jordanian e-banking is still not trusted enough
by the individual clients. Legal or regulatory coverage in Jordan was found to be not fully satisfactory yet, although not
very different from what exists in some of the most advanced country examples that it was benchmarked with.

3. RESEARCH METHODOLOGY:
Nature and Sources of Data: The research design adopted for the present study is descriptive. The source for data
collection is both primary & secondary as well . The study is primarily based upon primary data collected through a
questionnaire from rural area customers from Patiala district. Convenience sampling was adopted for the study because it
was cheaper and quicker method to obtain data. The research used self-administered questionnaires as the central
mechanism through which primary data was collected. The reliance has been placed on websites, published reports,
online databases, journals, newspapers and literature reviews for secondary data.

4. OBJECTIVES OF THE STUDY:

To study customer awareness regarding E banking services in urban & rural areas of Patiala district.

To study the usage pattern of technology-enabled banking self-services and the obstacles faced by customers
while using those.

5. ANALYSIS & DISCUSSION

The research is carried out in rural area of Patiala district. Total 125 respondents were contacted out of which 100
responded. Research used self-administered questionnaires as the central mechanism through which primary data was
collected. To start with the survey respondents were asked to provide the answer to their Demographic profile.
According to the analysis of demographic characteristics of the respondents ,46% of respondents are between the age of
18 to 25. 27% is between age of 25-35. Rest are above the age of 35 -45 years. Within the respondent 61% are males &
39% are females.
5.1 Analysis & Discussion
The research is carried out both in urban & rural area of Patiala district. Total 125 respondents were contacted out of
which 100 responded. For the ease of study 50 urban & 50 rural area customers were selected to carry out the survey.
Research used self-administered questionnaires as the central mechanism through which primary data was collected. To
start with the survey respondents were asked to provide the answer to their Demographic profile. According to the
analysis of demographic characteristics of the respondents we can say that 46% of respondents are between the age of 18

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International Journal of Technology & Engineering

ISSN 2455-9121

to 25. 27% is between age of 25-35. Rest are above the age of 35 -45 years. Within the respondent 61% are males & 39%
are females.
Awareness about E banking services

Rural v/s Urban

80
60

Urban, 45

40
20
0

Urban, 5
Rural , 21
Aware

Rural , 29
Not Aware

Urban

45

Rural

21

29

In urban areas 45 people are aware about E banking services and 5 people are not aware about E banking whereas the
analysis shows that 29 rural area people are not actually not aware of such services.

5.1.1

Urban areas analysis

Do people of urban areas use any E Banking services?

As explained above Out of 50 urban area respondents, 45 are aware of e banking services wher what e banking g is about.

5.1.2

Do people of urban areas use any E banking services?

Urb

Ru

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00
8

No
Yes

42

In urban areas out of 50, 42 people are using these services but 8 people are not using any online services. It includes
usage of Internet banking, mobile banking, ATMs.
How frequently people use E Banking services?
25
20
Weekl
y
Monthl
y

15
22

10

Never

16
5

Daily

9
3

0
Daily

Weekly

Monthly

Never

In this 22 people use the services monthly and 16 people weekly use E banking services and 9 people use it daily and 3
people have never used any E banking services. Mostly atm services are liked by people.
Are people satisfied with security of E banking services

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ISSN 2455-9121

35
30
25
20

Agree

15
10

29
14

5
0

neutral
Strongly Disagree and Agree

1
Strongly Disagree
Neutral
Disagree

Agree

Disagree
1
Strongl
y
Agree

In this 5 people disagree with high security of e-banking and 14 agree with high security and 29 are neutral about high
security of e-banking. People like to visit branch personally for depositing money or making investment.
Do people trust banks that only operate E banking?

23
27

Out of 50 urban respondents 27 dont trust banks that only oper

banking services safe & secure. Although literacy rate is high in urban areas, still they have fear with respect to security
issues of online transactions.
Which E Banking service you think is most friendly?
25
20
15
23

10
5

12

15

Telephone
Banking

Internet Banking
Telephone Banking

0
Internet
Banking

ATM Services

ATM Services

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First most preferred services is ATM service as 23 people opt for ATM service. People find it easy to operate.
Overall satisfaction with E banking services system
40
35
30
25
20

34
Average

15
10
5
0

Satisfactory

15

Highly Dissatisfactory
1

In this 34 people are satisfied with E banking system and 15 are neutral with this. As asked they find it easy, quick, time
saving & convenient. This satisfaction includes atm cards popularity. When asked about Mobile banking, Internet
banking, people are not convenient to operate them.

5.1.3

RURAL Area analysis

Awareness about E banking services in rural areas

In rural areas 21 people are aware about E banking services and 29 people are not aware about e- banking. As most of
rural area people are engaged in agriculturist activities so they have not heard of such services.
Do people of rural areas use any E banking services?

International Journal of Technology & Engineering

ISSN 2455-9121

00

No
Yes

42

In rural areas 42 of people are using E banking services but 8 people are not using any E banking services. It is same
as in the case of urban areas. This number expresses the usability of atm cards. Very few use internet banking.
How frequently people use E banking services?
30
25
20

Monthl
y

15
25

10

Weekl
y
Never

24

5
0

1
Daily

Weekly

Monthly

Never

In this 25 people use the E Banking services monthly and 1 person use weekly. 24 people have never used E banking services. The
maximum used service in rural areas is A they find internet banking difficult to use. Above all they prefer doing their banking work
by visiting branch.
Are people satisfied with high security of E banking services?

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35
30
25
20
15
10

Agree
29

Neutral
Strongly Agree

Disagree

2
StronglyDisagreeNeutral
Disagree

Agree

1
Strongly
Agree

In this 9 people disagree with high security of e-banking and 2 agree with high security and 29 are neutral about security
of e-banking. Because people dontngservice. knowMaximum ATMhowcardstoare usedusewhich isintern
just a type of e banking services. E banking includes Online banking, Internet banking, Mobile banking etc. Maximum
respondents dont operate these so theywhichdonttheyriskdontthe
to run.
Do people trust banks that only operate Online?
00
3

Yes
No

47

47 respondents dont trust banks that only operate on branch for loan purpose. In such situation they dont risk payment &

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Which E banking service people think is most friendly?

50
45
40
35
30
25
20

43

15
10
5
0

ATM Services
Internet
Banking
Telephone
Banking

5
Internet
Banking

Telephone
Banking

ATM Services

43 people prefer ATM services. Due to lower literacy rate & education level in rural areas people find hard to operate
Internet banking services.
Rate the overall satisfaction with E banking services system
35
30
25
20
15
10
5
0

30
11

Average
9

Dissatisfactory
SatisfactoryDissatisf
actory

In this 11 people are satisfied with E banking system and 30 are neutral with this and 9 are dissatisfied
with E banking system. Rural people are more in agriculturist activities, they visit branch for loan purpose. They
find
traditional method of banking easy. They dont ris know how to use.

4. FINDINGS
1

ATM card service is maximum used services among all other e banking service by customers of Rural
& urban areas. People find hard to operate Internet banking services.

It was found that almost 34% public is unaware about the concept of E- Banking whether they are
using E-Banking services or not.

Both in rural & urban area 84% of people are using E banking services but 16% people are not using

any E banking services.

Urban area customer trust Online banking system more than rural areas since 23 people said the trust
the banks operating online. Only 3 people in rural area trust online system.

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ISSN 2455-9121

In spite of so much convenient & ease of e banking service still 58 % population in both the areas turns
to be neutral when they were asked about high security of E banking services. Although literacy rate is high in
urban areas, still they have fear with respect to security issues of online transactions.

Rural Area people said that they need proper guidance for using other technologies of e banking
services like Mobile banking, Online transaction etc.

The satisfaction level Express Atm cards popularity. When asked about Mobile banking, Internet
banking, people are not convenient to operate them.

Rural people are more in farming activities, they visit branch for loan purpose. In such situa payment & repayment of loan
via online mode.

The process of operating the E commerce based technology is complicated as per Rural areas customers.

5. SUGGESSTIONS AND RECOMMENDATIONS

ATMs are the mentfastest.Thebanksshouldmodeincreaseofthenumberpayof onsite and offsite ATMs.

Banks should encourages the informational camps & programme for customer such that customer
should switch to Internet banking or mobile banking.

Governments and banking regulators should thoroughly explore the new risks and security challenges
and try to reduce these risks at greater extent.

Customers should communicate with bankers in case they need some assistance to run e banking services

6. E BANKING SERVICES- WAY AHEAD

Electronic banking, besides a service channel with special advantages act as a catalyst for many new products and service
models. Electronic banking is not restricted by time and space. Customers get to understand the non-stop, cross-regional,
wide geographical coverage of electronic banking. More and more customers are attracted by the safe and convenient
online services. It goes with the lifestyle in the Internet age. Looking ahead the progress electronic banking business,
there is still a lot of room to grow in this market. Electronic banking is paperless, low cost and highly efficient. While
creating next generation banking platforms, there should be guiding principles that ensures the effective system is being
implemented. Banks have to ensure data transparency, consistent and flawless customer experience to meet consumer
demands and dynamic regulatory requirements.

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nation an empirical study.Int. J. Electronic Finance, Vol. 3, No.2Available at:
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Factors on Motivating the Process of E-banking,JournalofManagement & Sustainability, Vol. 1 Issue 1, p32.
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http://www.iima.org/CIIMA/14%205.4_Yang_63-72-1.pdf

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