International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- Apr...
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- Apr...
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- Apr...
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- Apr...
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- Apr...
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- Apr...
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- Apr...
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- Apr...
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- Apr...
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- Apr...
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- Apr...
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- Apr...
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- Apr...
International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- Apr...
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Ussage and impediments of technology enabled services in banking sector

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Ussage and impediments of technology enabled services in banking sector

  1. 1. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- April (2013)253USSAGE AND IMPEDIMENTS OF TECHNOLOGY ENABLEDSERVICES IN BANKING SECTOR*P.Satheesh Babu & **Dr.Y.Lokeswara Choudary*Research Scholar, School of Management, SRM University, Kattankulathur,Chennai-603203.**Research supervisor, School of Maritime Management, Indian Maritime University,Chennai-600119.1. INFORMATION TECHNOLOGY IN MODERN ERAInformation technology refers to all forms of technology applied to processing,storing and transmitting information in electronic form. The physical equipments used forinformation processing include computers, communication equipments and networks, faxmachines. Information is a processed data used for decision making during uncertainty.Information systems execute organized procedures that process and communicateinformation. Information technology extends far beyond the computational capabilities ofcomputers. Today computers are used extensively for data storage, computation andcommunication. Information technology is concerned with computation and communications.Internet offers new opportunities to both consumers and producers of information in businesstransactions. Detailed and extensive information are needed in business both in commercialor administrative functions. . More information is required to process business applicationslike sales details, marketing analysis, accounting, salary details, personnel management,industrial applications like inventory, stock etc Due to the size and complexity of the data,computers become vital to manage them effectively. Computers are largely employed as an“aid to the management” in administering the business and commercial applications for fasterprocess and better results.2. INFORMATION TECHNOLOGY IN COMMERCIAL BANKING SECTORIn the five decades since independence, banking in India has evolved throughTraditional phase,(1786-1969),Nationalization phase(1969-1980),Post Nationalization phase(1980-1991),Reform phase(from 1991).During Fourth phase, also called as Reform Phase,Recommendations of the Narasimhan Committee (1991) paved the way for the reform phaseINTERNATIONAL JOURNAL OF MANAGEMENT (IJM)ISSN 0976-6502 (Print)ISSN 0976-6510 (Online)Volume 4, Issue 2, March- April (2013), pp. 253-266© IAEME: www.iaeme.com/ijm.aspJournal Impact Factor (2013): 6.9071 (Calculated by GISI)www.jifactor.comIJM© I A E M E
  2. 2. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- April (2013)254in the banking. Important initiatives with regard to the reform of the banking system were takenin this phase. Entry of new banks resulted in a paradigm shift in the ways of banking in India. Thegrowing competition and growing expectations led to increased awareness amongst banks on therole and importance of technology in banking. The arrival of foreign and private banks with theirsuperior state-of-the-art technology-based services pushed Indian Banks also to follow suit bygoing in for the latest technologies so as to meet the threat of competition and retain theircustomer base. Indian banking industry, today is in the midst of an IT revolution. Combinationsof regulatory and competitive reasons have led to increasing importance of total bankingautomation in the Indian Banking Industry. Information Technology has basically been usedunder two different avenues in Banking. One is Communication, Connectivity and other isBusiness Process Reengineering. Information technology enables sophisticated productdevelopment, better market infrastructure, implementation of reliable techniques for control ofrisks and helps the financial intermediaries to reach geographically distant and diversifiedmarkets.3. GREAT MILESTONESIn India, banks as well as other financial entities entered the world of informationtechnology and with Indian Financial Net (INFINET). INFINET, a wide area satellite basednetwork (WAN) using VSAT (Very Small Aperture Terminals) technology, was jointly set up bythe Reserve Bank and Institute for Development and Research in Banking Technology (IDRBT)in June 1999.The first set of applications that could benefit greatly from the use of technologicaladvances in the computer and communications area relate to the Payment systems which form thelifeline of any banking activity. The process of reforms in payment and settlement systems hasgained momentum with the implementation of projects such as NDS (Negotiated DealingSystem), CFMS (Centralized Funds Management System) for better funds management by banksand SFMS (Structured Financial Messaging Solution) for secure message transfer. This wouldresult in funds transfers and funds-related message transfer to be routed electronically acrossbanks using the medium of the INFINET. Negotiated dealing system (NDS), which has becomeoperational since February 2002 and RTGS (Real Time Gross Settlement system) which hasbecome operational from the end of 2003 are other major developments in the area. Internet hasemerged as an important medium for delivery of banking products & services. Detailedguidelines of RBI for Internet Banking has prepared the necessary ground for growth of InternetBanking in India. The Information Technology Act, 2000 has given legal recognition to creation,transmission and retention of an electronic (or magnetic) data to be treated as valid proof in acourt of law, except in those areas, which continue to be governed by the provisions of theNegotiable Instruments Act, 1881.4. OBJECTIVES OF THE STUDY1. To find out the level of awareness of the customers on technology services in the samplearea.2. To find out the problems faced by the customers in availing the technology services inbanks.3. To find out the reasons for not using the technology services offered by the banks.4. To analyze the factors influencing the selection of technology services offered by banks.
  3. 3. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- April (2013)2555. NEED FOR STUDYFor a long time, Indian banks faced very little competition and operated in a protectedeconomy. Now, well-computerized foreign banks are beginning to compete seriously withthe nationalized banks. Banks which use IT mainly focus on three areas viz. Meeting acustomer’s service expectations, cutting down the costs, managing dynamic competitiveenvironment. For this, the banks are venturing into new financial products and serviceoptions that would help them grow without losing existing customers. And any new financialproduct or service that a bank offers will be intrinsically related to technology. Automation isthe basic thing that banks need to have in place. It involves a combination of centralizednetworks, operations, and a core banking application. Automation enables banks to offer24x7x365 service using lesser manpower. But to be really competitive, banks need to thinkbeyond just basic automation. In this context this study has become very vital to find out theservice- satisfaction level of the customer. Therefore the researcher decided to study theimpact of Information Technology on the functioning and productivity of Commercial Banksin Chennai City of Tamil Nadu.6. RESEARCH METHODOLOGYThe present study has adopted both descriptive and analytical methodologies. Thedescriptive methodology has been focused on review in the literary evidences that areavailable through external and internal sources. As the study is based on the services and theirsatisfaction thereon. Measurement of satisfactory level is with respect to various serviceingredients. Hence the analytical process has become inevitable, resulting in the adoption ofanalytical methodology. A questionnaire has been designed in four segments consisting ofpersonal data, determinant of customer satisfaction, services provided by the bank. Thisresearch has primarily been based on the primary data collected from the select respondentcustomers of the selected commercial banks in Chennai. The oral interview has also beenconducted wherever necessary to add clarity to certain key issues.7. SAMPLE SIZEThe sample size is determined by using the scientific method, by using the pilot studystandard deviation of the sample of 50 respondents, by allowing the standard error at 5%level. The sample size was determined by using the following formula. Sample Size (N)=(ZS/E)2Where,Z= Standard value corresponding to a confidence level of 95%=1.96S= Sample SD from the pilot study of 50 samples= 0.548E=Acceptable error= 5%= 0.05The sample size should be = (N)= (ZS/E)2= (1.96*0.548/0.05)2= 461.46 or 462.
  4. 4. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- April (2013)256Table showing reliability alpha of the data collection instrumentS.No Description No.ofitemsAlphavalue1 Profile of the sample respondents 10 0.89172 Technology services-Level of awareness 13 0.88993 Problems in availing technology services 10 0.84154 Reasons for not availing technology services 10 0.88225 Factors considered while adopting to technology services 10 0.82946 Suggestions to improve the technology services usage 15 0.8775The overall reliability of the questionnaire is represented by the Corn Bach’s alphas is 0.8653and found reliable to proceed with the data collection.8. DATA ANALYSIS AND INTERPRETATIONIn this section the analysis of the data is done by using the appropriate statisticsthrough SPSS version 15. The first part of the study deals with descriptive statistics and thesecond part deals with inferential statistics. The major findings and the results of the analysisis discussed in the light of existing literature and presented in a brief manner.Descriptive statisticsTable 5.1: Distribution of sample on the basis of ExperienceAge Group in years Frequency PercentageBelow 20 59 12.821-30 198 42.931-40 150 32.5Above 40 55 11.9Total 462 100.0It is observed from the table 5.1 that the majority of the customers in the samplesurvey using technological services offered by the banks are belongs to 21-30 years age, andit is followed by 31-40 years age group. It indicates the role of age in adopting and availingtechnological services offered by the banks. One predominant reason for such relation may belack of time and relocation of employees from one place to other and long working hours notpermitting them to go to bank physically. In addition, the work place may be equipped withthe online facilities and could have founds easy to complete the financial payments and othertransactions through online via technological services offered by banks. The easy and freefrom logistics and waiting time may motivate the customers to use such options.Table 5.2: Distribution of Sample on the basis of Educational StreamEducation Qualification Frequency PercentageUpto SSLC 91 19.7HSC 71 15.4UG 126 27.3PG 111 24.0Professional 63 13.6Total 462 100.0Source: Primary data/Questionnaire.
  5. 5. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- April (2013)257It is noted from the table 5.2, that the majority of the respondents in the sample usingtechnical services offered by banks are under graduates and it is followed by post graduates.The simple reason could be the majority of them are technical back ground and working in ITfirms having technical savvy. The way deal with things in both personal and professional lifeis through technology and online. Such out comes are common and expected. It is theresponsibility of the banks to propagate the need for going to electronic and technical servicesthrough explaining the advantages of it. In addition, technical services service quality needsto be improved to build the confidence and trust among the customers.Table 5.3: Distribution of sample on the basis of occupationOccupation Frequency PercentagePrivate Employee 247 53.5Government Employee 87 18.8Business 59 12.8Professional 69 14.9Total 462 100.0Source: Primary data/Questionnaire.It is found from the table 5.3, that the majority of the customers using technical servicesoffered by banks are employees working in private organizations. It indicates that the privateorganizations are equipped with technical savvy, which can be allowed to use the technologyservices offered by banks. In addition, private employees won’t get time to visit banksfrequently during working time. It is also difficult for them to reach the banks located indistance places due to logistic issues and traffic. In such conditions private employees areused to go for technological services offered by banks.Table 5.4: Distribution of sample on the basis of Annual incomeAnnual Income in Lakhs Frequency PercentageBelow 1 170 36.81-3 177 38.33-5 71 15.4Above 5 44 9.5Total 462 100.0It is noted from the table 5.4, that the 38.3 percent of the sample respondents are belongs tothe less than Rs.3 lakhs per year. It indicates the usage of banking services in increasing inthe recent past by the middle income group. It indicates a positive sign in the organized sectorgrowth and development in the country. The reported incomes are more means thetransparency of the financial deals. In addition, this group is the potential income group fortechnological services adoption in the years to come. The hidden threat is the cost of servicesto avail technology services needs to be kept under control to attract the lower income groupsin to the orbit of technology services.
  6. 6. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- April (2013)258Table 5.5: Showing the level of awareness of technology services among the differentqualification groupsEducational QualificationEducational qualificationUptoSSLC HSc UG PG ProfessionalTechnology services Mean Mean Mean Mean MeanInternet Banking 4.24 4.11 4.12 4.45 4.24Electronic bill payment 3.85 4.01 3.86 4.28 4.14Online brokerage 3.86 3.82 3.40 3.46 3.49Online delivery of financial products 3.80 3.66 3.44 3.56 3.54Downloading transaction inform 3.86 3.83 3.73 4.01 3.94Loan Applications 3.85 3.79 3.60 3.65 3.54Mobile banking 3.86 3.82 3.81 4.23 4.11Tele Banking 3.82 3.68 3.64 3.89 3.94Electronic Fund Transfer (ETF) 3.88 3.83 3.59 4.28 4.08The Electronic Clearing System(Credit)3.89 3.72 3.52 3.71 3.98The Electronic Clearing System (Debit) 3.90 3.66 3.39 3.75 3.92National Electronic Fund Transfer(NEFT)3.74 3.49 3.35 3.53 3.68Real Time Gross Settlement (RTGS) 3.60 3.35 3.13 3.40 3.21It is noted from the table 5.5, that the level of awareness on the technology enabled servicesare identified among the customers lower educational profile and higher educational profileare moderate. Majority of the services are aware of the SSLC qualified customers and intoservice sector, post graduate holders and professionals. It may be due to regular usage ofthese services for business purposes.Table 5.6: indicating the problems in availing technology services by the differentqualification groupsProblems in availing TechnologyservicesUptoSSLC HSc UG PG ProfessionalMean Mean Mean Mean MeanTechnology do not ensure privacy 4.62 4.10 3.78 3.47 3.68Safety to the funds is at stake due totrapping4.08 4.01 3.72 3.48 3.48Technology failures 4.26 3.85 3.83 3.86 3.98Poor level of awareness on modusoperandi4.14 3.79 3.69 3.42 3.59Frequent change of technology 4.00 3.77 3.56 3.41 3.43No uniformity in operations andservices3.92 3.68 3.71 3.50 3.65E-banks charge more hidden cost 3.91 3.85 3.70 3.50 3.71More formalities in updating thechanges3.97 3.85 3.64 3.38 3.68Network related issues 4.00 3.85 3.75 3.83 3.97Lack of availability in many places 3.81 3.80 3.67 3.61 3.73
  7. 7. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- April (2013)259The only emerged group of customers facing lot of problems in availing technology enabledservices in banks is SSLC qualification holders. It is due to higher usage for business andservice of agency services for the clients.Table 5.7: Factors considered/influencing the adoption and availing technology servicesin banksInfluencing Factors in the selection ofTechnology services SD D N A SA Mean SDLevel Awareness of TechnologyservicesN 6 7 43 195 2114.29 .80% 1.30 1.52 9.31 42.21 45.67Availability of TechnologyservicesN 3 23 81 252 1033.93 .81% .65 4.98 17.53 54.55 22.29Handling customer Grievances N 5 27 95 191 1443.96 .92% 1.08 5.84 20.56 41.34 31.17Improving Security Standards N 3 19 102 215 1233.94 .84% .65 4.11 22.08 46.54 26.62Developing and deployment ofuser friendly servicesN 6 17 92 208 1393.99 .87% 1.30 3.68 19.91 45.02 30.09Graphical Screens with userinteractive nodesN 6 21 120 178 1373.91 .92% 1.30 4.55 25.97 38.53 29.65Proper Connectivity / Maintenance N 5 27 88 204 1383.96 .91% 1.08 5.84 19.05 44.16 29.87Easy operating systems andproceduresN 6 32 109 194 1213.85 .93% 1.30 6.93 23.59 41.99 26.19Strong security to the electronicdata of a customerN 8 24 89 204 1373.95 .92% 1.73 5.19 19.26 44.16 29.65Updating of the customer serviceinformationN 12 18 106 187 1393.92 .96% 2.60 3.90 22.94 40.48 30.09The prime factors considered while availing the technology enabled services are Strongsecurity to the electronic data of a customer, Proper Connectivity / Maintenance, Developingand deployment of user friendly services, Handling customer Grievances, and LevelAwareness of Technology services.Null Hypothesis (Ho): There is no association between number of years holding a bankaccount and the service quality level
  8. 8. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- April (2013)260Table 5.9: cross table showing association between variables along with chi-squareresultNo. of years holding Bank AccountLevel of quality ofservices Chi-SquareValueP-ValueLowAverage HighBelow 5 Count 43 103 4611.033 .087NS% within No. of years holding BankAccount22.4% 53.6% 24.0%% within Level of quality of services 33.1% 47.9% 39.3%6-10 Count 47 72 44% within No. of years holding BankAccount28.8% 44.2% 27.0%% within Level of quality of services 36.2% 33.5% 37.6%11-15 Count 26 25 20% within No. of years holding BankAccount36.6% 35.2% 28.2%% within Level of quality of services 20.0% 11.6% 17.1%Above 15 Count 14 15 7% within No. of years holding BankAccount38.9% 41.7% 19.4%% within Level of quality of services 10.8% 7.0% 6.0%Since the p value is greater than 0.05, the null hypothesis, There is no association betweennumber of years holding a bank account and the service quality level is accepted at 5% levelof significance. Hence, it is confirmed that, there is no association between number of yearsholding a bank account and the service quality level among the customers in the sample.Null Hypothesis (Ho): There is no association between locality of living and the level ofquality of services availing from banks.Table 5.10: Table 5.11: cross table showing association between variables along withchi-square resultLocality of livingLevel of quality ofservices Chi-SquareValueP-ValueLowAverage HighUrban Count 86 162 968.351 .015*% within Locality 25.0% 47.1% 27.9%% within Level of qualityof services66.2% 75.3% 82.1%SemiurbanCount 44 53 21% within Locality 37.3% 44.9% 17.8%% within Level of qualityof services33.8% 24.7% 17.9%
  9. 9. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- April (2013)261Since p value is less than 0.05, the null hypothesis, There is no association between localityof living and the level of quality of services availing from banks is rejected at 5% level ofsignificance. Hence, it is inferred that, there is an association between locality of living andthe level of quality of services availing from banks at moderate level.Null Hypothesis (Ho): There is no association between number of times visiting bankphysically and quality of services availing from banks.Table 5.11: cross table showing association between variables along with chi-squareresultNo. of timesvisiting bankper month Level of quality of servicesChi-SquareValueP-ValueLow Average HighBelow 3 times Count49 114 6129.6220.000**% within No. of times visitingbank per month 21.9% 50.9% 27.2%% within Level of quality ofservices 37.7% 53.0% 52.1%3-5 times Count38 72 45% within No. of times visitingbank per month 24.5% 46.5% 29.0%% within Level of quality ofservices29.2% 33.5% 38.5%Above 5 times Count43 29 11% within No. of times visitingbank per month 51.8% 34.9% 13.3%% within Level of quality ofservices33.1% 13.5% 9.4%Since p value is less than 0.001, the null hypothesis, There is no association between numberof times visiting bank physically and quality of services availing from banks is rejected at 1%level of significance. Hence, it is inferred that, there is a highly significant associationbetween number of times visiting bank physically and quality of services availing frombanks.Null Hypothesis (Ho): There is no association between purpose of visiting a bank andquality of services availing from banks.
  10. 10. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- April (2013)262Table 5.12: Table 5.11: cross table showing association between variables along withchi-square resultPurpose ofvisiting tobankLevel of quality of services Chi-SquareValueP-ValueLow Average HighDepositmoneyCount46 118 6419.453 .013*% within Purpose ofvisiting to bank20.2% 51.8% 28.1%% within Level ofquality of services35.4% 54.9% 54.7%WithdrawcashCount45 48 33% within Purpose ofvisiting to bank35.7% 38.1% 26.2%% within Level ofquality of services 34.6% 22.3% 28.2%GettinginformationCount15 26 11% within Purpose ofvisiting to bank28.8% 50.0% 21.2%% within Level ofquality of services 11.5% 12.1% 9.4%Apply forloanCount13 15 5% within Purpose ofvisiting to bank39.4% 45.5% 15.2%% within Level ofquality of services10.0% 7.0% 4.3%Accesspublic utilityservicesCount11 8 4% within Purpose ofvisiting to bank 47.8% 34.8% 17.4%% within Level ofquality of services 8.5% 3.7% 3.4%Since, p value is less than 0.05, the null hypothesis, There is no association between purposeof visiting a bank and quality of services availing from banks is rejected at 5% level ofsignificance. Based on this it is inferred that, There is a significant association betweenpurpose of visiting a bank and quality of services availing from banks.Null Hypothesis (Ho): There is no association between type of bank account maintained andthe quality of services availed from banks.
  11. 11. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- April (2013)263Table 5.13: Table 5.11: cross table showing association between variables along withchi-square resultType of bankaccountmaintainedLevel of quality of services Chi-SquareValueP-ValueLow Average HighPublic SectorBankCount56 135 6321.540 0.001**% within Type of bankaccount maintained22.0% 53.1% 24.8%% within Level ofquality of services 43.1% 62.8% 53.8%Private SectorBankCount53 61 49% within Type of bankaccount maintained 32.5% 37.4% 30.1%% within Level ofquality of services 40.8% 28.4% 41.9%Foreign Bank Count13 9 3% within Type of bankaccount maintained 52.0% 36.0% 12.0%% within Level ofquality of services 10.0% 4.2% 2.6%Co-operativeBankCount8 10 2% within Type of bankaccount maintained40.0% 50.0% 10.0%% within Level ofquality of services 6.2% 4.7% 1.7%Since, p value is less than 0.001, the null hypothesis, There is no association between type ofbank account maintained and the quality of services availed from banks is rejected at 1%level of significance. Based on this, it is confirmed that, There is a highly significantassociation between type of bank account maintained and the quality of services availedfrom banks.
  12. 12. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- April (2013)264Factor AnalysisTable 5.14: Rotated Component Matrix showing factors emerged along with scoreloadingsItems loaded as technical services 1 2 3 FactorsInternet Banking .744 .096 .104UtilityservicesElectronic bill payment .722 .188 .230Mobile banking .705 .148 .194Downloading transaction information .622 .216 .365Tele Banking .561 .205 .358Electronic Fund Transfer (ETF) .559 .556 .017The Electronic Clearing System (Debit) .241 .781 .178Fund transferservicesNational Electronic Fund Transfer (NEFT) .182 .771 .109Real Time Gross Settlement (RTGS) -.034 .758 .321The Electronic Clearing System (Credit) .337 .714 .191Online delivery of financial products .261 .150 .818AgencyservicesOnline brokerage/trading .161 .223 .791Loan Applications .382 .224 .606Technology enabled services of banks are broadly grouped into three types, The first kind ofservices are mentioned as utility services, the second set of services are called as fund transferservices, and the final category of services are titled as agency services.Factor Analysis-IITable:5.15: Problems in availing technology services by the customers along with factorloadings and emerged factors.Items ComponentItems shown as problems 1 2 FactorsLack of availability in many places .728 .120OperatingproblemsNetwork related issues .712 .062No uniformity in operations and services .687 .320More formalities in updating the changes .637 .244E-banks charge more hidden cost .616 .307Technology do not ensure privacy .042 .831Safety andSecurity problemsSafety to the funds is at stake due to trapping .129 .739Frequent change of technology .382 .618Poor level of awareness on modus operandi .338 .596Technology failures .442 .544There are two factors emerged, grouping the level of awareness of technological servicesoffered by the banks. They are titled as operating problems and safety and security problems.
  13. 13. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- April (2013)26510. SUMMARY AND CONCLUSIONThe data analysis gives the various hidden facts with the empirical evidences. Someof the findings of the study are: Majority of the customers in the sample survey usingtechnological services offered by the banks are belongs to 21-30 years age, and it is followedby 31-40 years age group. It indicates the role of age in adopting and availing technologicalservices offered by the banks. One predominant reason for such relation may be lack of timeand relocation of employees from one place to other and long working hours not permittingthem to go to bank physically. The level of awareness on the technology enabled services isidentified among the customers lower educational profile and higher educational profile aremoderate. Majority of the services are aware of the SSLC qualified customers and intoservice sector, post graduate holders and professionals. It may be due to regular usage ofthese services for business purposes.The prime factors considered while availing the technology enabled services areStrong security to the electronic data of a customer, Proper Connectivity / Maintenance,Developing and deployment of user friendly services, Handling customer Grievances, andLevel Awareness of Technology services. There is a highly significant association betweennumber of times visiting bank physically, purpose of visiting a bank, type of bank with whichaccount maintained and quality of services availing from banks. Technology enabledservices of banks are broadly grouped into three types, The first kind of services arementioned as utility services, the second set of services are called as fund transfer services,and the final category of services are titled as agency services. There are two factorsemerged, grouping the level of awareness of technological services offered by the banks.They are titled as operating problems and safety and security problems.It is concluded that the technology enabled services are order of the day. The primaryimpediments in adopting and availing them are level of awareness, availability andaccessibility, trust factor among the customers fore the data and for the money saved. It is theresponsibility of the banks to ensure the safe delivery of technology enabled services to thebankers in the years to come. The provision of technology enabled services at affordable costis the strategy can succeed in the years to come. The mutually win-win situation can benefit alot to the banks and customer at large.REFERENCES1. Lovelock, Christopher (2001), Services marketing; people, Technology, strategy, 4thedition, prentice Hall.2. Lev, B, (2001), Intangible management, measurement and reporting WashingtonDC;Brookings Institute press.3. Carl D. McDaniel (2005). The Future of Business: The Essentials Mason, Ohio: South-Western. ISBN 0324320280.4. John, Joby (2003). Fundamentals of Customer-Focused Management: CompetingThrough Service. Westport, Conn.: Praeger. ISBN 9781567205640.5. Kessler, Sheila (2003)., Customer satisfaction toolkit for ISO 9001:2000.Milwaukee,Wis.: ASQ Quality Press. ISBN 0873895592.6. Johnson, Michael D.; Anders Gustafssonb, Tor Wallin Andreassenc, Line LervikcandJaesung Cha (2001). "The evolution and future of national customer satisfactionindex models". Journal of Economic Psychology 22(2): 217–245.ISSN 0167-4870.
  14. 14. International Journal of Management (IJM), ISSN 0976 – 6502(Print), ISSN 0976 –6510(Online), Volume 4, Issue 2, March- April (2013)2667. Bluestein, Abram; Michael Moriarty; Ronald J Sanderson (2003).The CustomerSatisfaction Audit. Axminster: Cambridge Strategy Publications.ISBN 9781902433981..8. Rexha N, kingshott RPJ and AW ASS (2003) “The impact of Relational planonAdoption of electronic Banking” Journal of service marketing, Vol.179. Singh S (2004) “A Appraisal of Customer service of Public Sector Banks,” IBABulletin,Vol. XXVI, No:8 (August), PP 30-37.10. Uppal R.K (2006), Indian Banking Information Technology, New Century Publications,New Delhi.9.11. Shilpi Khandelwal, “E Banking Innovations: Trends in India”, International Journal ofManagement (IJM), Volume 3, Issue 3, 2012, pp. 200 - 215, ISSN Print: 0976-6502,ISSN Online: 0976-6510.12. H.Vasanthakumari and Dr. S. Sheela Rani, “Customer Selection of Banks – ABiographic Segmentation”, International Journal of Management (IJM), Volume 2,Issue 2, 2011, pp. 13 - 19, ISSN Print: 0976-6502, ISSN Online: 0976-6510.

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