E banking in india

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E banking in india

  1. 1. ,,,, IntroductIonE-banking:- Internet banking (or E-banking) means any user with apersonal computer and a browser can get connected to his bank -s websiteto perform any of the virtual banking functions. In internet banking systemthe bank has a centralized database that is web-enabled. All the servicesthat the bank has permitted on the internet are displayed in menu. Anyservice can be selected and further interaction is dictated by the nature ofservice. Once the branch offices of bank are interconnected throughterrestrial or satellite links, there would be no physical identity for anybranch. It would a borderless entity permitting anytime, anywhere andanyhow banking. The delivery channels include direct dialup connections, privatenetworks, public networks, etc. with the popularity of computers, easyaccess to Internet and World Wide Web (WWW), Internet is increasinglyused by banks as a channel for receiving instructions and delivering theirproducts and services to their customers. This form of banking is generallyreferred to as Internet Banking, although the range of products andservices offered by different banks vary widely both in their content andsophistication. 1
  2. 2. Meaning of E-BankingE-bank is the electronic bank that provides the financial service for theindividual client by means of Internet. observatIon of studyDEFINITION OF E-BANKINGFor this booklet, e-banking is defined as the automated delivery of new andtraditional banking products and services directly to customers throughelectronic, interactive communication channels. E-banking includes thesystems that enable financial institution customers, individuals orbusinesses, to access accounts, transact business, or obtain information onfinancial products and services through a public or private network,including the Internet. Customers access e-banking services using anintelligent electronic device, such as a personal computer (PC), personaldigital assistant (PDA), automated teller machine (ATM), kiosk, or TouchTone telephone. While the risks and controls are similar for the various e-banking access channels, this booklet focuses specifically on Internet-basedservices due to the Internet’s widely accessible public network.Accordingly, this booklet begins with a discussion of the two primary typesof Internet websites: informational and transactional.E-BANKING SUPPORT SERVICES 2
  3. 3. WebLInKInGA large number of financial institutions maintains sites on the World WideWeb. Some websites are strictly informational, while others also offercustomers the ability to perform financial transactions, such as paying billsor transferring funds between accounts.WIreLess e-banKInGWireless banking is a delivery channel that can extend the reach andenhance the convenience of Internet banking products and services.Wireless banking occurs when customers access a financial institutionsnetwork(s) using cellular phones, pagers, and personal digital assistants (orsimilar devices) through telecommunication companies’ wireless networks.Wireless banking services in the United States typically supplement afinancial institutions e-banking products and services.Person-to-Person PaymentsElectronic person-to-person payments, also known as e-mail money, permitconsumers to send “money” to any person or business with an e-mailaddress. Under this scenario, a consumer electronically instructs theperson-to-person payment service to transfer funds to another individual.The payment service then sends an e-mail notifying the individual that thefunds are available and informs him or her of the methods available toaccess the funds including requesting a check, transferring the funds to anaccount at an insured financial institution, or retransmitting the funds tosomeone else. Person-to-person payments are typically funded by creditcard charges transfer from the consumer’s account at a financial institution.Since neither the payee nor the payer in the transaction has to have an 3
  4. 4. account with the payment service, such services may be offered by aninsured financial institution, but are frequently offered by other businessesas well.banKInG servIces throuGh Internet: 4
  5. 5. 1. The Basic Level Service is the banks’ web sites which disseminate information on different products and services offered to customers and members of public in general. It may receive and reply to customer’s queries through e-mail; 2. In the next level are Simple Transactional Web sites which allows customers to submit their instructions, applications for different services, queries in their account balances, etc. but do not permit any fund-based transactions on their accounts; 3. The third level of Internet banking service are offered by Fully Transactional Web sites which allow the customers to operate on their accounts for transfer of funds, payment of different bills, subscribing to other products of the bank and to transact purchase and sale of securities, etc. The above forms of Internet banking service the customer or by new banks, who deliver banking service primarily through Internet or other electronic delivery channels as the value added services. Some of these banks are known as ‘Virtual’ banks or ‘Internet only’ banks and may not have physical presence in a country despite offering different banking services.the IndIan scenarIo: -• Internet banking, both as a medium of delivery of banking services and as 5
  6. 6. a strategic tool for business development.• At present, the total internet users in the country are estimated at 9 lakh.However, this is expected to grow exponentially to 90 lakh by 2003. Onlyabout 1 percent of Internet users did banking online in 1998. This isincreased to 16.7 percent in March 2000.- (India Research, May 29, 2000, Kotak Securities)• Cost of banking service through the Internet from a fraction of coststhrough conventional methods. Rough estimates assume teller cost at Re.1per transaction, ATM transaction cost at 45 paise, phone banking at 35paise, debit cards at 20 paise and Internet banking at 10 paise pertransaction.PLastIc cards as medIa for Payment: -There are four types of plastic cards being used as media formaking payments. These are:1. Credit Card2. Debit Card3. Smart Card4. ATM Card1. credIt cards: - 6
  7. 7. The credit card enables the cardholders to: Purchase any item like clothes,jewellery, railway/air tickets, etc.Pay bills for dining in a restaurant or boarding and lodging in hotelAvail of any service like car rental, etc.2. debIt cards: -A debit card is issued on payment of a specified amount by the issuingcompany like a telephone company to a customer on cash payment or ondebiting his account by a bank.Thus it is like an electronic purse, which can be read and debited by therequired amount.It may be noted that while through a credit card, the customer first makes apurchase or avails service and pays later on, but for getting the debit card, acustomer has to first pay the due amount and then make a purchase oravail the service. For this reason, debit card are not as popular as creditcards.3. smart cards: - 7
  8. 8. Smart Cards have a built-in microcomputer chip, which can be used forstoring and processing information. For example, a person can have a smartcard from a bank with the specified amount stored electronically on it. Ashe goes on making transactions with the help of the card, the balance keepson reducing electronically. When the specified amount is utilized by thecustomer, he can approach the bank to get his card validated for a furtherspecified amount. Such cards are used for paying small amounts liketelephone calls, petrol bills, etc.4. atm cards: -The card contains a PIN (Personal Identification Number) which is selectedby the customer or conveyed to the customer and enables him to withdrawcash up to the transaction limit for the day. He can also deposit cash orcheque. LIterature revIeW 8
  9. 9. A new review by Tower group of 10 top US e- banking web sites evaluatedseveral aspects of core online banking components. Group found that thereis difference in terms of actual functionality and usability. Among differentbanks and their services.The UKs first home online banking services were set up by the NottinghamBuilding Society (NBS) in 1983 ("History of the Nottingham". Retrieved on2007-12-14.). The system used was based on the UKs Prestel system andused a computer, such as the BBC Micro, or keyboard (Tan data Td1400)connected to the telephone system and television set. The system (knownas Home link) allowed on-line viewing of statements, bank transfers andbill payments. In order to make bank transfers and bill payments, a writteninstruction giving details of the intended recipient had to be sent to the NBSwho set the details up on the Home link system.An American study conducted last year by Booz-Allen projects that by theyear 2000, 16 million US households will be using Internet banking. Whilethese numbers do not appear to be significant as compared to the totalpopulation, each Internet user is projected to be 50-250% more profitablethan the average banking customer. It is expected that these Internetcustomers will be some of the banking systems most profitable customersrepresenting close to 30% of all retail banking profits. The study projectsthat by 1999, 1,500 banks will have Internet Web sites and at least 500 ofthese banks will be offering full-fledged Internet banking services.In 2001 Micro banker send detailed questionnaire to the leading vendors ofinternet banking software27 companies responded with information onthirty programs the aggregate outcome of the outcome was that almost all 9
  10. 10. the companies have developed functions for internet banking and haveinbuilt feature to aid with one to one marketing on the web. IcIcI banK ICICI Bank Online Banking Services provide the largest private bank in India right here at your desktops. Banking becomes a pleasure as the transactions and services become instant with ICICI Bank online Internet banking. The services provided are totally secure and unique. These cover online account transactions and operations, credit card and account applications and payments, share trading and investments through mutual funds, bill payments, statement generation and a virtual demo of each service. See in brief in final report.roLe of customer When usInG e-banKInG • You can access ICICIBank.com only by using your User ID and Password. During the first login attempt, it is mandatory to change both passwords - login and transaction – which would have been mailed to you by the bank. • If you forget your password, you will have written to us using the "Email Us" option. The Bank will then issue a new password and send it to your mailing address as per our records. Kindly check with your branch that this address is updated... • Make sure no one can see the account login name or password you are entering when you log on to ICICIBank.com. • Logout of ICICIBank.com before moving on to other Websites. • Before leaving the PC please "close" the browser. • Do not write your ICICIBank.com login name or password anywhere. 10
  11. 11. • Do not leave your login name and password such that someone sitting at your computer could see them.• Never reveal your ICICIBank.com login name and password to anyone (no representative of ICICI Bank will ever ask you for your ICICIBank.com password).• Notify ICICI Bank immediately if you notice any unusual account activity.• Keep all documents that include your account information in a secure location.• When you login you can view the date and time of your last log in. 11
  12. 12. features offered by IcIcI banK for Internet banKInG • Balance enquiry and statement • Transfer fund online • Card to card fund transfer • Use debit card online • Prepaid mobile recharge • Subscribe for mobile banking • Link bank account to ATM • Lock / activate debit cards /ATM • Request a cheque book • Stop payment hdfc Net Banking is HDFC Banks Internet Banking service. Providing up-to- the-second account information, Net Banking lets you manage your account from the comfort of your mouse - anytime, anywhere.features offered by hdfc banK for Internet banKInG • View account balances and statements • Transfer funds between accounts • Request stop payments • Pay bills • Create fixed deposit online • Order cheque books 12
  13. 13. objectIve of study • Find the customer satisfaction relating to E-banking service. • To study the awareness of internet banking among the customers of ICICI and HDFC banks. LImItatIon of study • Banks are not giving me all information about E-banking services. • They do not permit to meet any of the employees in their bank.INTRODUCTION 13
  14. 14. EVOLUTION OF MARKETING marketing Spelled Pronunciation mahr-ki-ting] – noun 1. the act of buying or selling in a market. 2. the total of activities involved in the transfer of goods from the producer or seller to the consumer or buyer, including advertising, shipping, storing, and selling.At the beginning of the century, social life was mostly local. It was followed by aperiod in which commodities were produced on a mass scale. Consumer Marketingoperated on mass marketing principles and business primarily concerned itself withhow to build the best sales force. At the end of the century, there is an emerging globalculture. The major driver of these changes is technology. Technological change hasmoved steadily back focusing on the individual. These changes shape the possibilityand conduct of business. Marketing is especially tied to communication andtransportation revolution. As the tools and reach of marketing increase, the job andresponsibilities of marketers have evolved with them.Philip Kotler formalized this evolution with his book "Marketing Management". Hiskey stages are production, sales and brand management. Each of these is stronglymotivated by technological opportunities, which permit new methods and newopportunities. A fourth stage, a focus on the individual customer, is also important. Asthe new technology of the Internet develops, it reinforces the new marketing emphasis- which in many ways is a return to business at the turn of the centu 14
  15. 15. In today’s technology driven world, a new fast paced digital economy is emerging.Tomorrow there will be companies that will exist only inside computer networks.Most business transactions will be made electronically, directly from the producer tothe consumer, bypassing the supply chain. In the digital marketing environment, theconsumer becomes an integral player in the development of the product. In fact, aconsumer might build the product himself from a wide array of parts provided by theCompany. It is e-commerce that is changing the way products and services areconceived, manufactured, promoted, priced, distributed and sold. The reason beingthat it is much cheaper; it allows vast coverage and helps in serving the customerbetter.ADVERTISING ad⋅⋅ver⋅⋅tis⋅⋅ing Show Spelled Pronunciation [ad-ver- tahy-zing 1. the act or practice of calling public attention to ones product, service, need, etc., esp. by paid announcements in newspapers and magazines, over radio or television, on billboards, etc.: to get more customers by advertising. 2. paid announcements; advertisements. 3. the profession of planning, designing, and writing advertisements. 15
  16. 16. Advertising is a paid form of communication, although some formsof advertising, such as public service announcements, use donatedspace and time. Second, not only is the message paid for, but thesponsor is identified. Third, most advertising tries to persuade orinfluence the consumer to do something, although in some casesthe point of the message is simply to make consumers aware of theproduct or companyFourth and fifth, the message is conveyed through many differentkinds of mass media reaching a large audience of potentialconsumers. Finally, because advertising is a form of masscommunication, it also non-personalA definition of advertising, then, includes all six features Advertising is paid non-personal communication from an identified sponsor using mass media to persuade or influence an audience 16
  17. 17. Functions of AdvertisingAdvertising is an important promotional tool for any marketing campaign.So much so that whenever we think of marketing we think of advertisingalthough it is just one of the marketing tools. Till now only companies witha profit motive went in for advertising. But today government bodies aswell as non-governmental organizations (NGOs) go for high profileadvertising campaigns. The purpose here is not to increase the sales figurebut to increase the awareness of people regarding the relevant topics.Even though each ad or campaign tries to accomplish goals unique to itssponsor, advertising performs three basic functions:1. Provide product or brand information Although many ads are devoid of information, providing the consumer with relevant information that will aid decision making is still the main function of advertising. The information given depends on the needs of the target audience. In the case of purchasing a new suit, needed information might simply include price and outlet location. For technical products, the information is likely to be very detailed.2. Provide incentives to take decision In most instances, consumers are reluctant to change established behavior. Even if there are somewhat dissatisfied with the current product or service, a habit has been established and learning about a new product is deemed difficult. Advertising provides the consumer with reasons to switch brands by presenting
  18. 18. reasons through copy or graphics. Convenience, high quality, lower price, warranties, or a celebrity endorser are all possibilities.3. Provide reminders and reinforcement It’s amazing how much advertising is directed at current customers. Consumers forget why they bought a particular brand of microwave or automobile. Advertising must remind the customer constantly about the name of the brand, its benefits, its value, and so forth. These same messages help reinforce the customers decision. Most television advertising seems to provide this function. 10
  19. 19. Types of AdvertisingAdvertising is a form of selling. It tries to make consumers buy goods or services.Advertisers must be aware of the factors that influence peoples buying habits andthen use advertising strategies based on this knowledge. Advertising can beclassified in number of ways.1. Print Advertising: Newspapers, Magazines, Brochures, Fliers The print media have always been a popular advertising medium. Advertising products via newspapers or magazines is a common practice. In addition to this, the print media also offers options like promotional brochures and fliers for advertising purposes.2. Outdoor Advertising: Billboards, Kiosks, Tradeshows and Events (OOH) Outdoor advertising is also a very popular form of advertising, which makes use of several tools and techniques to attract the customers outdoors. The most common examples of outdoor advertising are billboards, kiosks, and also several events and tradeshows organized by the company. The billboard advertising is very popular however has to be really terse and catchy in order to grab the attention of the passersby. The kiosks not only provide an easy outlet for the company products but also make for an effective advertising tool to promote the company’s products. Organizing several events or sponsoring them makes for an excellent advertising opportunity. The company can organize trade fairs, or even exhibitions for advertising their products. If not this, the company can organize several events that are closely associated with their field.3. Broadcast advertising: Television, Radio and the Internet Broadcast advertising is a very popular advertising medium that constitutes of several branches like television, radio or the Internet. Television advertisements have been very popular ever since they have been introduced. The radio might have lost its charm owing to the new age media however the radio remains to be the choice of small-scale advertisers.
  20. 20. 4. Covert Advertising: Advertising in Movies Covert advertising is a unique kind of advertising in which a product or a particular brand is incorporated in some entertainment and media channels like movies, television shows
  21. 21. or even sports. There is no commercial in the entertainment but the brand or the product is subtly (or sometimes evidently) showcased in the entertainment show.5. Surrogate Advertising: Advertising Indirectly Surrogate advertising is prominently seen in cases where advertising a particular product is banned by law. Advertisement for products like cigarettes or alcohol which are injurious to heath are prohibited by law in several countries and hence these companies have to come up with several other products that might have the same brand name and indirectly remind people of the cigarettes or beer bottles of the same brand. Common examples include Fosters and Kingfisher beer brands, which are often seen to promote their brand with the help of surrogate advertising.6. Public Service Advertising: Advertising for Social Causes Public service advertising is a technique that makes use of advertising as an effective communication medium to convey socially relevant messaged about important matters and social welfare causes like AIDS, energy conservation, political integrity, deforestation, illiteracy, poverty and so on.7. Celebrity Advertising Although the audience is getting smarter and smarter and the modern day consumer getting immune to the exaggerated claims made in a majority of advertisements, there exist a section of advertisers that still bank upon celebrities and their popularity for advertising their products. Using celebrities for advertising involves signing up celebrities for advertising campaigns, which consist of all sorts of advertising including, television ads or even print advertisements.8. Internet Advertising
  22. 22. Internet promotion is one of the newer types of advertising and can beaccomplished in a number of ways. Flash advertising refers to messages thatjump onto your computer screen and often move around. They can be hard toclose and are annoying, but effective at gaining your attention. Pop up andscrolling ads are other examples of these types of advertising. Pay per clickadvertising refers to marketers paying to have their web pages placed high onsearch engine results pages. These are also called sponsored links.
  23. 23. INTERNET MARKETINGTHE ADVENT OF THE INTERNETThe new millennium has brought us on the brink of the I.T. Revolution. This revolution hasbeen aided by the advent of the Internet in a big way. Internet is fast changing the waypeople used to do things. Naturally, the same would have an impact on the advertisers.The Internet has been accepted as the most powerful media for advertising due to theabsence of geographical barriers. The advent of the Internet and its subsequentacceptance has once again challenged the traditional forms of advertising. Advertisersare trying to use the net to advertise their products and hence net their customers.Thus, with the Internet gaining prominence, advertising equations are fast changing. Internet marketing, also referred to as web marketing, online marketing, or eMarketing, is the marketing of products or services over the Internet. Internet marketing ties together creative and technical aspects of the Internet, including design, development, advertising, and sale. The Internet has brought many unique benefits to marketing, one of which being lower costs for the distribution of information and media to a global audience. The interactive nature of Internet marketing, both in terms of providing instant response and eliciting responses, is a unique quality of the medium. Internet marketing is sometimes considered to have a broader scope because it not only refers to digital media such as the Internet, e-mail, and wireless media; however, Internet marketing also includes management of digital customer data and electronic customer relationship management (ECRM) systems
  24. 24. 7 PS OF INTERNET MARKETINGThe four Ps - Product, Price, Place and Promotion have long been associated withmarketing, but things have changed on the Internet. So along with a change in thenature of the four P’s there are three new P’s which are relevant to the internetmarketer: Presentation, Processes and Personalization.1. Product Product on the Internet usually changes form online, and the user experiences it electronically, in the form of text, images and multimedia. Physical goods are usually presented in the form of a detailed online catalogue that the customer can browse through. Technology allows the user to virtually touch and feel the product on the Internet - rotate it, zoom in or zoom out and even visualize the product in different configurations and combination. Content and software are two avatars of digitized products that can be even distributed over the Internet. On the Internet, E-marketing will be based more on the product qualities rather than on the price. Every company will be able to bring down the cost of its products and hence competition will not be on price. It will rather be on the uniqueness of the product. To be able to attract the customers and retain them, the company will have to provide nouvelle and distinct products that forces the net users to purchase and come back for more.2. Price Price has been drastically changed over the Internet. It lets the buyer decides the price. Also it gives the buyers information about multiple sellers selling the same product. It leads to best possible deal for the buyers in terms of price. Pricing is dynamic over the Internet.3. Place
  25. 25. Place revolves around setting up of a marketing channel to reach the customer.Internet serves as a direct marketing channel that allows the producer to reach thecustomer directly. The elimination of the intermediate channel allows the producerto pass the reduced distribution cost to the customer in the form of discounts.
  26. 26. 4. Promotion Promotion is extremely necessary to entice the customer to its website, as there are currently more than one billion web pages. Promoting a website includes both online and offline strategies. Online strategies include search engine optimization, banner ads, multiple points of entry, viral marketing, strategic partnership and affiliate marketing. Presently, the cyberspace is already cluttered with thousands of sites probably selling similar products. For the customers to know of the Company’s existence and to garner information on the kind of products or services that the company is offering, promotion has to be carried out. There can be traded links or banner advertisements for the same. Also the traditional mediums like print, outdoor advertising and television can be used to spread awareness.5. Presentation The presentation of the online business needs to have an easy to use navigation. The look and the feel of the web site should be based on corporate logos and standards. About 80% of the people read only 20% of the web page. Therefore, the web page should not be cluttered with a lot of information. Also, simple but powerful navigational aids on all web pages like search engines make it easy for customer to find their way around.6. Processes
  27. 27. Customer supports needs to be integrated into the online web site. A sales service that will be able to answer the questions of their customers fast and in a reliable manner is necessary. To further enhance after sales service, customers must be able to find out about their order status after the sale has been made.7. Personalization Using the latest software it is possible to customize the entire web site for every single user, without any additional costs. The mass customization allows the company to create web pages products and services that suit the requirement of the user. A customized web page does not only include the preferred layout of the customer but also a pre selection of goods the customer may be interested in. concLusIon
  28. 28. The basic objective of my research was to analyze theawareness among customers for internet banking in INDIA.It gives direction to research tools, research types andtechniques. Although the findings reveal that people knowabout the services but still many people are unaware andmany of them are non – users so the bank should bypromotion try to retain the customers. Banks should lookforward to have some tie – ups with other financialinstitutions to increase the service base. bIbLIoGraPhybooK:-
  29. 29. • E-banking in India• Banking service operation (ICFAI)• Indian Banking• Money & Banking

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