Karthik iob bank project

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Karthik iob bank project

  1. 1. A STUDY ON INTERNET BANKING IN IOB BY KARTHIK.V Register number:1036337 of SRM EASWARI ENGINEERING COLLEGE KARTHIK.V Registration Number:1036337 A PROJECT REPORT Submitted to theFACULTY OF MASTERS OF BUSINESS ADMINISTRATION In partial fulfillment of the requirements for the award of the degree of MASTER OF BUSINESS ADMINISTRATION ANNA UNIVERSITY CHENNAI 600 02
  2. 2. ii JUNE 2011 BONAFIDE CERTIFICATECertified that the Project report titled _________________________________ is thebonafide work of Mr. / Ms. ________________________________ who carried out thework under my supervision. Certified further that to the best of my knowledge the workreported herein does not form part of any other project report or dissertation on the basisof which a degree or award was conferred on an earlier occasion on this or any othercandidate.Supervisor Head of the departmentSubmitted to project and viva-examination held on
  3. 3. iii ABSTRACT Now a day’s Internet facilities are increasingly used by banks as a channel forreceiving instructions and delivering their products and services to their customers. This formof banking is generally referred to as Internet Banking, although the range of products andservices offered by different banks vary widely both in their content and sophistication.Internet banking service are offered by Fully Transactional Web sites which allow thecustomers 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, services the customer or by new banks, who deliverbanking service primarily through Internet or other electronic delivery channels as the valueadded services. Some of these banks are known as “Virtual‟ banks or “Internet only‟ banksand may not have physical presence in a country despite offering different banking services.Internet banking is act as medium of delivery of banking services and as a strategic tool forbusiness development. Through the internet banking facility the customers are able to do thefollowing transaction, account to account transfer, paying a bill, apply for a loan, open newaccount, Electronic bill payment, Funds transfer, Investment purchase or sale, Loanapplications and transactions, online statements and Bank statements, etc. apart from thatthere are many useful facilities are present in the internet banking. This study particularlyanalysis the current changes in internet banking technology in Indian Banks. Thequestionnaire is designed to collect the opinion about the proper use of the changingtechnology particular in internet banking. Then the collected data are interpreted using thesuitable statistical tool.
  4. 4. iv ACKNOWLEDGEMENTI would like to express my heartfelt thanks and profound gratitude to Mr.VASUDEVANwho has consented to be my Project Guide. Not only did she allow me to avail all thefacilities for completing the project work but also her guidance, valuable advice andsupport played an important role throughout the project.I would also like to express my sincere gratitude to all the respondents without whom thisproject would not have been possible.I consider it my privilege to acknowledge the assistance rendered by the Head of theDepartment and the Faculty Members (Department of Management Studies, SRMEaswari Engineering College, Ramapuram, Chennai).Finally, I am thankful to my family members and friends who were either directly orindirectly involved with the progress and the successful completion of this assignment. Signature of Student Karthik V
  5. 5. v TABLE OF CONTENTS1. INTRODUCTION 01 1.1 Background Study 01 1.1.1 Drivers of Change 01 1.1.2 Indian Banks on Web 02 1.1.3 Emerging Challenges 02 1.1.4 Main concerns In Internet Banking 03 1.1.5 Current Scenario 04 1.1.6 Technology In Banking 05 1.2 Problem Identified 09 1.3 Need For The Study 09 1.4 Objectives Of The Study 10 1.4.1 Primary Objectives 10 1.4.2 Secondary Objectives 10 1.5 Expected Deliverables 102. LITERATURE SURVEY 11 2.1 Review of Literature 113. METHODOLOGY 13 3.1 Type of Project 13 3.2 Target Respondents 13 3.3 Assumptions, Constraints and Limitations 13 3.3.1 Assumptions 13 3.3.2 Constraints 13 3.3.3 Limitations 14 3.4 Sampling Method 14 3.5 Research Methodology 14 3.5.1 Area Of Research 14 3.5.2 ResearchDesign 14 3.6 Tools for Analysis 15
  6. 6. vi4. DATA ANALYSIS AND INTERPRETATION 16 4.1 Analysis And Interpretation 165. CONCLUSIONS 51 5.1 Summary of Findings 51 5.2 Suggestions 54 5.3 Conclusions 556. APPENDIX 56 6.1 Questionnaire 567. REFERENCES 60
  7. 7. vii LIST OF TABLESTable No. Table Name Page4.1 Age of Respondents 164.2 Gender of Respondents 164.3 Education level of Respondents 174.4 Occupation of Respondents 184.5 Monthly Income Level of Respondents 194.6 Span of Bank Account held by the Respondents 204.7 Projection of Level of Internet Banking Usage 214.8 Span of Online Account Usage 224.9 Frequency of Internet Banking Usage 234.10 Online Services Used by the Respondents 244.11 Opinion on Performance Improvement through Internet Banking 254.12 Opinion on Easy Conduct of Transactions through Internet Banking 264.13 Opinion on Elimination of Timing Constraints through Internet Banking 274.14 Usage of Virtual Keyboard 284.15 Usage Level of Virtual Keyboard 284.16 Satisfaction Level on Secured Information sent to Mobile 29 Acceptance level in increase in security with Internet and Mobile4.17 30 Banking Satisfaction level in increase in security with Internet and Mobile4.18 31 Banking4.19 Satisfaction level on Security before Internet Banking 324.20 Satisfaction level on Security After Internet Banking 334.21 Opinion on understandability of Online Banking 344.22 Opinion on Easy Learning of Online Banking 354.23 Opinion on Easy Use of Online Banking 364.24 Opinion on lesser mental effort using Online Banking 374.25 Seminar Programs conducted by bankers on Online Banking 384.26 Belief on Internet Banking 39 Satisfaction level on Third Party Transaction Time through Internet4.27 40 Banking4.28 Satisfaction level facilities in Internet Banking 414.29 Need of Change in Internet Banking Websites 424.30 Acceptance of Internet banking in near future by respondents 434.31 Increase in Internet banking usage in near future by respondents 444.32 Satisfaction level on Security in Internet banking 454.33 Opinion on fraudulent exposure in Internet banking 464.34 Observed Frequency 48
  8. 8. viii4.35 Expected Frequency 484.36 Chi-Square Analysis 484.37 Observed Frequency 494.38 Expected Frequency 494.39 Chi-Square Analysis 50 LIST OF FIGURESFig No. Figure Name Page4.1 Age of Respondents 164.2 Gender of Respondents 174.3 Education level of Respondents 184.4 Occupation of Respondents 194.5 Monthly Income Level of Respondents 204.6 Span of Bank Account held by the Respondents 214.7 Projection of Level of Internet Banking Usage 214.8 Span of Online Account Usage 224.9 Frequency of Internet Banking Usage 234.10 Online Services Used by the Respondents 244.11 Opinion on Performance Improvement through Internet Banking 254.12 Opinion on Easy Conduct of Transactions through Internet Banking 264.13 Opinion on Elimination of Timing Constraints through Internet Banking 27
  9. 9. ix4.14 Usage of Virtual Keyboard 284.15 Usage Level of Virtual Keyboard 294.16 Satisfaction Level on Secured Information sent to Mobile 30 Acceptance level in increase in security with Internet and Mobile4.17 31 Banking Satisfaction level in increase in security with Internet and Mobile4.18 32 Banking4.19 Satisfaction level on Security before Internet Banking 334.20 Satisfaction level on Security After Internet Banking 344.21 Opinion on understand ability of Online Banking 354.22 Opinion on Easy Learning of Online Banking 364.23 Opinion on Easy Use of Online Banking 374.24 Opinion on lesser mental effort using Online Banking 384.25 Seminar Programs conducted by bankers on Online Banking 394.26 Belief on Internet Banking 40 Satisfaction level on Third Party Transaction Time through Internet4.27 41 Banking4.28 Satisfaction level facilities in Internet Banking 424.29 Need of Change in Internet Banking Websites 434.30 Acceptance of Internet banking in near future by respondents 444.31 Increase in Internet banking usage in near future by respondents 454.32 Satisfaction level on Security in Internet banking 464.33 Opinion on fraudulent exposure in Internet banking 47
  10. 10. x
  11. 11. 1 CHAPTER 1 - INTRODUCTION1.1 Background Study: The Internet banking is changing the banking industry and is having the major effects onbanking relationships. Even the Morgan Stanley Dean Witter Internet research emphasisedthat Web is more important for retail financial services than for many other industries.Internet banking involves use of Internet for delivery of banking products & services. It fallsinto four main categories, from Level 1 - minimum functionality sites that offer only accessto deposit account data - to Level 4 sites - highly sophisticated offerings enabling integratedsales of additional products and access to other financial services- such as investment andinsurance. In other words a successful Internet banking solution offers• Exceptional rates on Savings, CDs, and IRAs• Checking with no monthly fee, free bill payment and rebates on ATM surcharges• Credit cards with low rates• Easy online applications for all accounts, including personal loans and mortgages• 24 hour account access• Quality customer service with personal attention1.1.1 DRIVERS OF CHANGE Advantages previously held by large financial institutions have shrunk considerably. TheInternet has levelled the playing field and afforded open access to customers in the globalmarketplace. Internet banking is a cost-effective delivery channel for financial institutions.Consumers are embracing the many benefits of Internet banking. Access to ones accounts atanytime and from any location via the World Wide Web is a convenience unknown a shorttime ago. Thus, a banks Internet presence transforms from brouchreware status to Internetbanking status once the bank goes through a technology integration effort to enable thecustomer to access information about his or her specific account relationship. The sixprimary drivers of Internet banking includes, in order of primacy are:
  12. 12. 2• Improve customer access• Facilitate the offering of more services• Increase customer loyalty• Attract new customers• Provide services offered by competitors• Reduce customer attrition1.1.2 INDIAN BANKS ON WEB The banking industry in India is facing unprecedented competition from non-traditional banking institutions, which now offer banking and financial services over theInternet. The deregulation of the banking industry coupled with the emergence of newtechnologies, are enabling new competitors to enter the financial services market quickly andefficiently.Indian banks are going for the retail banking in a big way. However, much is still to beachieved. This study which was conducted by students of IIML shows some interesting facts:• Throughout the country, the Internet Banking is in the nascent stage of development (only50 banks are offering varied kind of Internet banking services).• In general, these Internet sites offer only the most basic services. 55% are so called entrylevel sites, offering little more than company information and basic marketing materials.Only 8% offer advanced transactions such as online funds transfer, transactions & cashmanagement services.• Foreign & Private banks are much advanced in terms of the number of sites & their level ofdevelopment.1.1.3 EMERGING CHALLENGES Information technology analyst firm, the Meta Group, recently reported that"financial institutions who dont offer home banking by the year 2000 will become
  13. 13. 3marginalized." By the year of 2002, a large sophisticated and highly competitive InternetBanking Market will develop which will be driven by• Demand side pressure due to increasing access to low cost electronic services.• Emergence of open standards for banking functionality.• Growing customer awareness and need of transparency.• Global players in the fray• Close integration of bank services with web based E-commerce or even disintermediationof services through direct electronic payments (E- Cash).• More convenient international transactions due to the fact that the Internet along withgeneral deregulation trends eliminates geographic boundaries.1.1.4 MAIN CONCERNS IN INTERNET BANKING In a survey conducted by the Online Banking Association, member institutions ratedsecurity as the most important issue of online banking. There is a dual requirement to protectcustomers privacy and protect against fraud. Banking Securely: Online Banking via theWorld Wide Web provides an overview of Internet commerce and how one company handlessecure banking for its financial institution clients and their customers. Some basicinformation on the transmission of confidential data is presented in Security and Encryptionon the Web. PC Magazine Online also offers a primer: How Encryption Works. A multi-layered security architecture comprising firewalls, filtering routers, encryption and digitalcertification ensures that your account information is protected from unauthorised access:• Firewalls and filtering routers ensure that only the legitimate Internet users are allowed toaccess the system.• Encryption techniques used by the bank (including the sophisticated public key encryption)would ensure that privacy of data flowing between the browser and the Infinity system isprotected.• Digital certification procedures provide the assurance that the data you receive is from theInfinity system.
  14. 14. 41.1.5 CURRENT SCENARIO The Indian has finally worked up to the competitive dynamics of new Indian marketand is addressing the relevant issues take on the multifarious challenges of globalization.Banks that employ IT solutions are perceived to be futuristic and proactive players capable ofmeeting the multifarious requirement of large customer base. Private Banks have been fast onthe uptake and are reorienting their strategies using the Internet as a medium. The Indian banking has come from a long from being a sleepy business institution toa highly proactive and dynamic entity this transformation has been largely brought by thelarge dose of liberalization and economic reforms that allowed exploring new businessopportunities rather than generating revenues from conventional streams. The Indian industryhas confidently hit the growth trial that pick in activity is best reflected in the banking sectorwhich after all is as candid a mirror of a country’s economy as you could ever find. Most ofthe Indian financial intermediaries have been keeping pace with the deepening marketeconomy, riding the opportunity that come along with reforms even as they brace themselvesfor increased competition both foreign and private by strengthening prudential norms andleveraging technology to ensure that growth engine hums smoothly along The essentialfunction of a bank is to provide services related to the storing of value and the extendingcredit. The evolution of banking dates back to the earliest writing, and continues in thepresent where a bank is a financial institution that provides banking and other financialservices. Currently the term bank is generally understood an institution that holds a bankinglicense. Banking licenses are granted by financial supervision authorities and provide rightsto conduct the most fundamental banking services such as accepting deposits and makingloans. There are also financial institutions that provide certain banking services withoutmeeting the legal definition of a bank, a so called non-bank. Banks are a subset of thefinancial services industry. The word bank is derived from the italian banca, which is derived from German andmeans bench. The terms bankrupt and "broke" are similarly derived from banca rotta, whichrefers to an out of business bank, having its bench physically broken. Money lenders inNorthern Italy originally did business in open areas, or big open rooms, with each lenderworking from his own bench or table. Typically, a bank generates profits from transaction
  15. 15. 5fees on financial services or the interest spread on resources it holds in trust for clients whilepaying them interest on the asset.Services typically offered by banks Although the type of services offered by a bank depends upon the type Of bank andthe country, services provided usually include: • Directly take deposits from the general public and issue checking and saving accounts. • Lend out money to companies and individuals (see money lender) Cash checks. • Facilitate money transactions such as wire transfers and cashiers checks • Issue credit cards, ATM, and debit cards and online banking. • Storage of valuables, particularly in a safe deposit box.1.1.6 TECHNOLOGY IN BANKING • Technology will bring fundamental shift in the functioning of banks. It would not only help them bring improvements in their internal functioning but also enable them to provide better customer service. Technology will break all boundaries and encourage cross border banking business. Banks would have to undertake extensive Business Process Re-Engineering and tackle issues like a) how best to deliver products and services to customers b) designing an appropriate organizational model to fully capture the benefits of technology and business process changes brought about. c) how to exploit technology for deriving economies of scale and how to create cost efficiencies, and d) how to create a customer - centric operation model. • Entry of ATMs has changed the profile of front offices in bank branches. Customers no longer need to visit branches for their day to day banking transactions like cash deposits, withdrawals, cheque collection, balance enquiry etc. E-banking and Internet banking have opened new avenues in “convenience banking”. • Technology solutions would make flow of information much faster, more accurate and enable quicker analysis of data received. This would make the decision making
  16. 16. 6 process faster and more efficient. For the Banks, this would also enable development of appraisal and monitoring tools which would make credit management much more effective. The result would be a definite reduction in transaction costs, the benefits of which would be shared between banks and customers. • One area where the banking system can reduce the investment costs in technology applications is by sharing of facilities. We are already seeing banks coming together to share ATM Networks. Similarly, in the coming years, we expect to see banks and FIs coming together to share facilities in the area of payment and settlement, back office processing, data warehousing, etc. While dealing with technology, banks will have to deal with attendant operational risks. This would be a critical area the Bank management will have to deal with in future. • Payment and Settlement system is the backbone of any financial market place. The present Payment and Settlement systems such as Structured Financial Messaging System (SFMS), Centralised Funds Management System (CFMS), Centralised Funds Transfer System (CFTS) and Real Time Gross Settlement System (RTGS) will undergo further fine-tuning to meet international standards. Needless to add, necessary security checks and controls will have to be in place. In this regard, Institutions such as IDRBT will have a greater role to play.1.1.7 INDUSTRY PROFILE: Without a sound and effective banking system in India it cannot have a healthyeconomy. The banking system of India should not only be hassle free but it should be able tomeet new challenges posed by the technology and any other external and internal factors. For the past three decades Indias banking system has several outstandingachievements to its credit. The most striking is its extensive reach. It is no longer confined toonly metropolitans or cosmopolitans in India. In fact, Indian banking system has reachedeven to the remote corners of the country. This is one of the main reasons of Indias growthprocess. The governments regular policy for Indian bank since 1969 has paid rich dividendswith the nationalisation of 14 major private banks of India.
  17. 17. 7 Not long ago, an account holder had to wait for hours at the bank counters forgetting a draft or for withdrawing his own money. Today, he has a choice. Gone are dayswhen the most efficient bank transferred money from one branch to other in two days. Now itis simple as instant messaging or dial a pizza. Money have become the order of the day. The first bank in India, though conservative, was established in 1786. From1786 till today, the journey of Indian Banking System can be segregated into three distinctphases. They are as mentioned below:• Early phase from 1786 to 1969 of Indian Banks• Nationalisation of Indian Banks and up to 1991 prior to Indian banking sector Reforms.• New phase of Indian Banking System with the advent of Indian Financial & Banking SectorReforms after 1991.To make this write-up more explanatory, I prefix the scenario as Phase I, Phase II and PhaseIII.Phase I The General Bank of India was set up in the year 1786. Next came Bank of Hindustanand Bengal Bank. The East India Company established Bank of Bengal (1809), Bank ofBombay (1840) and Bank of Madras (1843) as independent units and called it PresidencyBanks. These three banks were amalgamated in 1920 and Imperial Bank of India wasestablished which started as private shareholders banks, mostly Europeans shareholders. In 1865 Allahabad Bank was established and first time exclusively by Indians, PunjabNational Bank Ltd. was set up in 1894 with headquarters at Lahore. Between 1906 and 1913,Bank of India, Central Bank of India, Bank of Baroda, Canara Bank, Indian Bank, and Bankof Mysore were set up. Reserve Bank of India came in 1935. During the first phase the growth was very slow and banks also experienced periodicfailures between 1913 and 1948. There were approximately 1100 banks, mostly small. Tostreamline the functioning and activities of commercial banks, the Government of India cameup with The Banking Companies Act, 1949 which was later changed to Banking Regulation
  18. 18. 8Act 1949 as per amending Act of 1965 (Act No. 23 of 1965). Reserve Bank of India wasvested with extensive powers for the supervision of banking in india as the Central BankingAuthority. During those day’s public has lesser confidence in the banks. As an aftermath depositmobilisation was slow. Abreast of it the savings bank facility provided by the Postaldepartment was comparatively safer. Moreover, funds were largely given to traders.Phase II Government took major steps in this Indian Banking Sector Reform afterindependence. In 1955, it nationalised Imperial Bank of India with extensive bankingfacilities on a large scale especially in rural and semi-urban areas. It formed State Bank ofindia to act as the principal agent of RBI and to handle banking transactions of the Union andState Governments all over the country. Seven banks forming subsidiary of State Bank of India was nationalised in 1960 on19th July, 1969, major process of nationalisation was carried out. It was the effort of the thenPrime Minister of India, Mrs. Indira Gandhi. 14 major commercial banks in the country wasnationalised. Second phase of nationalisation Indian Banking Sector Reform was carried out in1980 with seven more banks. This step brought 80% of the banking segment in India underGovernment ownership.Phase III This phase has introduced many more products and facilities in the banking sector inits reforms measure. In 1991, under the chairmanship of M Narasimham, a committee wasset up by his name which worked for the liberalisation of banking practices.
  19. 19. 9 The country is flooded with foreign banks and their ATM stations. Efforts are beingput to give a satisfactory service to customers. Phone banking and net banking is introduced.The entire system became more convenient and swift. Time is given more importance thanmoney. The financial system of India has shown a great deal of resilience. It is sheltered fromany crisis triggered by any external macroeconomics shock as other East Asian Countriessuffered. This is all due to a flexible exchange rate regime, the foreign reserves are high, thecapital account is not yet fully convertible, and banks and their customers have limitedforeign exchange exposure.1.2 PROBLEM IDENTIFIED Even though the technology updation has been adopted in internet banking, still the customers are unaware about the updation of technology and the reason for the technology updation. Some of the customers are not using the internet banking at once to access their account. Most of the customers are using the branch networks, and ATM facilities. Only educated people are aware about the internet banking facilities and the procedures to access their account online. Even among the educated people, some of them are still feeling insecure about performing the transactions through net banking facilities provided by the banks. The bank doesn’t take any actions to make aware their customers to use the internet banking facility or to increase the satisfaction level among their customers.1.3 NEED FOR THE STUDY This study analyses about the need for internet banking facility offered by banks totheir customers. The specific online facilities include fund transfer, online bill payment,balance enquiry and most of the other activities related to the customer’s bank account.
  20. 20. 10These were implemented to overcome the problems associated with traditional bankingsystem, which includes time delay in transactions, need of physical presence of customers,and more paper work for bankers and so on. This study has been mainly carried out to intimate the changes, updations in internetbanking facility. This study makes contributions by showing how the current internetbanking facilities contribute in increasing the efficiency of the banking operations and alsofocuses on the acceptance level among the Customers for Internet banking. Hence, it isnecessary to conduct a study to know whether the implementation of Internet Banking hasserved the purpose or not.1.4 OBJECTIVES OF THE STUDY1.4.1 Primary objectives  To study the effectiveness of the Internet Banking in India.1.4.2 Secondary objectives  To study on current internet banking facilities provided by banks.  To study the usage level of the Internet Banking facilities by customers.  To study the improvement of efficiency of banking operations obtained by Internet banking.  To notify the changes needed from customer view in existing internet banking facilities1.5 EXPECTED DELIVERABLES: This study answers the efficient features that have been included in the internetbanking to increase the efficiency of the banking operations and gives the level of internetbanking utilization among the respondents. It gives the level of convenience among thebankers and customers in adopting the internet banking. At the end of the study at least someof the customers may get aware about the features available in internet banking.
  21. 21. 11 CHAPTER 2 LITERATURE SURVEY2.1 REVIEW OF LITERATURE: Internet banking is the latest in the series of technological wonders of the recent past.ATMs, Tele-Banking, Internet Banking, Credit Cards and Debit Cards have emerged aseffective delivery channels for traditional banking products. Internet or Electronic or onlinebanking is the newest delivery channel to be offered by retail banks in many developedcountries, and there is a wide agreement that this channel will have a significant impact onthe market. Banks know that the Internet opens up new horizons for them and moves themfrom local to global frontiers (Mavri and Ioannou, 2006). Internet banking refers to systemsthat enable bank customers to get access to their accounts and general information on bankproducts and services through the use of bank’s website, without the intervention orinconvenience of sending letters, faxes, original signatures and telephone confirmations(Thulani et al, 2009; Henry, 2000). In its simplest form, electronic banking may mean theprovision of information about the bank and its products via a page on the internet (Ibrahimet al, 2006). It is the types of services through which bank customers can request informationand carry out most retail banking services such as balance reporting, inter-account transfers,bill-payment, etc., via a telecommunication network without leaving their homes ororganizations (Aladwani, 2001; Mols, 1998; Sathye, 1999). In essence, it is an electronicconsumer interface and an alternative channel of distributions. Online banking has beenregarded as the most important way to reduce cost and maintain or enhance services forconsumers (Hua, 2009). It provides universal connection from any location worldwide and isuniversally accessible from any internet linked computer (Thulani et al, 2009; Perunal andShanmugan, 2004; Bradley and Stewart, 2003 and Rotchanakitumnuai and Speece, 2003). Itis a process of innovation whereby customers handle their own banking transactions withoutvisiting bank tellers.E-Banking: A Case Of India
  22. 22. 12http://ideas.repec.org/a/icf/icfjpa/v05y2009i1p55-65.html .Author Info - R. K. Mishra, J. Kiranmai Information technology is considered as the key driver for the changes taking placearound the world. According to Heikki, the transformation from the traditional banking to e-banking has been a ‘leap’ change. The evolution of e-banking started from the use ofAutomatic Teller Machines (ATMs) and telephone banking (tele-banking), direct billpayment, electronic fund transfer and the revolutionary online banking. The future ofelectronic banking would be more interactive i.e., TV banking. Finland is the first country inthe world to have taken a lead in e-banking. In India, ICICI Bank initiated e-banking servicesduring 1997 under the brand name ‘Infinity’. It has been forecasted that among all categories,online banking is the future of electronic financial transactions. The rise in e-commerce andinternet in enhancing online security transformation and sensitive information has been thecore reason for the penetration of online banking in everyday life. The shift towards theinvolvement of the customers in the financial service with the help of technology, especiallyinternet, has helped in reducing costs of financial institutions as well as clients/customerswho use the service at anytime and from virtually anywhere with access to an internetconnection. The article presents an overview of e-banking, its evolution, and comparison ofthe internet banking facilities in Indian banks. The case study approach has been used tocompare various banks for rendering different internet banking services to its customers.
  23. 23. 13 CHAPTER 3 METHODOLOGY3.1 TYPE OF PROJECT: SURVEY TYPE This includes designing questionnaire for collection of data through field study,collecting data from target respondents, processing and analyzing the data and arriving atconclusions.3.2 TARGET RESPONDENTS: The target of 150 respondents from the following group has been taken for the study.Target Group: The study is based on the sample drawn from the customers of IOB BANK providingthe internet banking facility. The convenience sampling method is used for sampling.3.3 ASSUMPTIONS, CONSTRAINTS AND LIMITATIONS3.3.1 Assumptions • The project will evaluate the E-banking services offered by the Bank. • Analyze the gap between the availability of E-banking technological services and its usage in the banking Industry. • The samples are collected from the customers of Banks. • Let us assume that the responses from the customers are accurate.3.3.2 Constraints • The Project work can be done with in the duration of 1 months. • The Customers and Staffs may not answer for all the questions. So data collection requires more time.
  24. 24. 143.3.3 Limitations • The data collection will be done through designed questionnaire only. So, the response from the respondents may not accurate. • Due to time limitations only 150 samples size has been taken for this work. So, if this work is conducted to maximum persons, it may give accurate result.3.4 PROPOSED SAMPLING METHODS The Sampling technique adopted in the present study is Convenience sampling. It isalso called haphazard or accidental sampling. Members of the population are chosen basedon 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 theframe. Though almost impossible to treat rigorously, it is the method most commonlyemployed in many practical situations.3.5 RESEARCH METHODOLOGY3.5.1. AREA OF RESEARCH The area of research is IOB Bank that have adopted Internet Banking. Research isabout to be conducted to the Bank Customers and Staffs with the sample size of 150.3.5.2. RESEARCH DESIGN Descriptive research designs are used in this study. Descriptive research is also calledStatistical Research. The main goal of this type of research is to describe the data andcharacteristics about what is being studied. The idea behind this type of research is to studyfrequencies, averages, and other statistical calculations. Although this research is highlyaccurate, it does not gather the causes behind a situation. Descriptive research is used to
  25. 25. 15obtain 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 theIndian customers towards internet banking. The methods involved range from the surveywhich describes the status quo, the correlation study which investigates the relationshipbetween 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 predictions3.5 Tools for analysis The following tools are used for the data analysis  Percentage analysis  Chi-Square analysis
  26. 26. 16 CHAPTER 4 DATA ANALYSIS AND INTERPRETATION4.1 ANALYSIS AND INTERPRETATIONAge: Table: 4.1 – Age of Respondents Sino Age No of Respondents Percentage 1 18-25 63 42 2 25-35 57 38 3 35-45 27 18 4 > 45 3 2 Total 150 100 Fig 4.1 – Age of RespondentsInterferenceFrom the above chart 42% of the respondents 18-25 age, 38% of the respondents 25 -35 age,18% of the respondents 35-45 age, 2% of the respondents >45 and none of the respondentsGreater than 44.Gender: Table 4.2 – Gender of Respondents
  27. 27. 17 Sino Gender No of Respondents Round Off Percentage 1 Male 122 81 2 Female 28 19 Total 150 100 Figure 4.2 – Gender of RespondentsInterference:From the above chart we found 81% of the respondents are male and 19% of the respondentsare female.Education: Table 4.3 – Education level of Respondents Sino Particulars No of Respondents Percentage 1 10th 6 4 th 2 12 9 6 3 U.G 87 58 4 P.G 48 32 Total 150 100
  28. 28. 18 Table 4.3 – Education level of RespondentsInterference:From the above chart 4% of the respondents 10th, 6% of the respondents 12th, 58% of the ofthe respondents U.G, and 32% of the respondents P.G.Occupation Table 4.4 – Occupation of Respondents S. No Particulars No of Respondents Percentage A Student 45 30 B Government 8 employee 12 C IT sector 60 40 D Other private sectors 33 22 Total 150 100
  29. 29. 19 Figure 4.4 – Occupation of RespondentsInterference:From the above chart 30% of the respondents Student, 8% of the respondents Governmentemployee, 40% of the respondents IT sector, and 22% of the respondents other privatesectors.Monthly Income (in Rupees) Table 4.5 – Monthly Income Level of Respondents S. No Particulars No of Respondents Percentage A <5000 6 4 B 5001 – 8000 36 24 C 8001- 12000 33 22 D 12001-15000 30 20 E >15000 45 30 Total 150 100
  30. 30. 20 Figure 4.5 – Monthly Income Level of RespondentsInterference: From the above chart 4% of the respondents are having monthly income <5000, 24%of the respondents are having monthly income between 5001 - 8000, 22% of the respondentsare having monthly income between 8001- 12000, and 20% of the respondents are havingmonthly income between 12001-15000, and 30% of the respondents are having monthlyincome >15000.How long you have a bank account? Table 4.6 – Span of Bank Account held by the Respondents S. No Particulars No of Respondents Percentage A <1yr 9 6 B 1yr – 3 yrs 72 48 C 3yrs – 5yrs 57 38 D >5yrs 12 8 Total 150 100
  31. 31. 21 Figure 4.6 – Span of Bank Account held by the RespondentsInterference:From the above chart 6% of the respondents <1yr,48% of the respondents 1yr – 3 yrs, 38%of the respondents 3yrs – 5yrs, and 8% of the respondents >5yrs.Do you use Internet Banking? Table 4.7 – Projection of Level of Internet Banking Usage Sino Particulars No. of Respondents Percentage 1 Yes 93 62 2 No 57 38 Total 150 100 Figure 4.7 – Projection of Level of Internet Banking Usage
  32. 32. 22If yes, go to Question 3If No, go to Question 14How long you have an online account? Table 4.8 – Span of Online Account Usage S. No Particulars No of Respondents Percentage A <1yr 35 38 B 1yr – 2 yrs 26 28 C >2 yrs 32 34 Total 93 100 Figure 4.8 – Span of Online Account UsageInterference:From the above chart 38% of the respondents <1yr, 28% of the respondents 1yr – 2 yrs, and34% of the respondents >2 yrs.
  33. 33. 23How often do you use Internet Banking services? Table 4.9 – Frequency of Internet Banking Usage Sino Particulars No. of Respondents Percentage 1 More than once a week 43 46.2365591 2 Once a week 20 21.5053763 3 Once every 2 weeks 10 10.7526882 4 Once a month 10 10.7526882 5 Other 10 10.7526882 Total 93 100 Figure 4.9 – Frequency of Internet Banking UsageInterference:From the above chart 50% of the respondents are more than once a week, 20% of therespondents are once a week, 10% of the respondents are once every 2 weeks, 10% of therespondents are once a month and 10% of the respondents are other.
  34. 34. 24Which of the following services used by you through the on-line banking systems? (You cantick more than 1) Table 4.10 – Online Services Used by the Respondents Sino Particulars No. of Percentage Respondents 1 Online bill payment 35 37.634409 2 Fund transfer 17 18.27957 3 Checkbook Application 5 5.3763441 4 Summary reports of transaction 10 10.752688 5 Account information and balance 10 10.752688 enquiry 6 Share margin trading account 6 6.4516129 7 None 10 10.752688 Total 93 100 Figure 4.10 – Online Services Used by the RespondentsInterference:From the above chart 35% of the respondents are online bill payment, 20% of therespondents are fund transfer, 5% of the respondents are checkbook application, 10% of the
  35. 35. 25respondents are Summary reports of transaction and 10% of the respondents are accountinformation and balance enquiry, 10% of the respondents are Share margin trading account,10% of the respondents are none.Using the on-line banking systems would improve my performance in conducting bankingtransactions. Table 4.11 – Opinion on Performance Improvement through Internet Banking Sino Particulars No. of respondents Percentage 1 Totally agree 24 25.8064516 2 Agree 42 45.1612903 3 Neutral 20 21.5053763 4 Disagree 7 7.52688172 5 Strongly disagree 0 0 Total 93 100 Figure 4.11 – Opinion on Performance Improvement through Internet BankingInterference:From the above chart 24% of the respondents are totally agree,49% of the respondents areAgree,20% of the respondents neutral,7% of the respondents are Disagree and 0% of therespondents are Strongly Disagree.a) Totally Agreeb) Agree
  36. 36. 26c) Neutrald) Disagreee) Strongly disagreeUsing the on-line banking systems would make it easier for me to conduct bankingtransactions Table 4.12 – Opinion on Easy Conduct of Transactions through Internet Banking Sino Particulars No. of respondents Percentage 1 Strongly agree 8 8 2 Agree 48 52 3 Neutral 17 20 4 Disagree 20 20 5 Strongly disagree 0 0 Total 93 100 Figure 4.12 – Opinion on Easy Conduct of Transactions through Internet BankingInterference:From the above chart 8% of the respondents are strongly agree,52% of the respondents areAgree,20% of the respondents are neutral , 20% of the respondents are Disagree and 0% ofthe respondents Strongly Disagree.a) Strongly agree
  37. 37. 27b) Agreec) Neutrald) Disagreee) Strongly disagreeOn-line banking eliminates time constraints; thus I can use the banking services at any time Ilike. Table 4.13 – Opinion on Elimination of Timing Constraints through Internet Banking No. of Sino Particulars respondents Percentage 1 Strongly agree 35 38 2 Agree 35 38 3 Neutral 15 16 4 Disagree 4 4 5 Strongly disagree 4 4 Total 93 100 Figure 4.13 – Opinion on Elimination of Timing Constraints through Internet BankingInterference:From the above chart 39% of the respondents strongly agree,38% of the respondentsAgree,15% of the respondents Moderate, 4% of the respondents Disagree and 4% of therespondents Strongly Disagree.Have you used virtual keyboard facility to log in your account?
  38. 38. 28 Table 4.14 – Usage of Virtual Keyboard S. No Particulars No of Respondents Percentage 1 Yes 73 80 2 No 6 6 3 Can’t say 14 14 Total 93 100 Figure 4.14 – Usage of Virtual KeyboardInterference:From the above chart 80% of the respondents Yes, 8% of the respondents No, and 14% of therespondents can’t say.If yes, mention the usage level of virtual keyboard Table 4.15 – Usage Level of Virtual Keyboard Sino Particulars No. of Respondents Percentage 1 Sometimes 20 27 2 Always 17 23 3 Rarely 20 27 4 Frequently 16 22 Total 73 100
  39. 39. 29 Figure 4.15 – Usage Level of Virtual KeyboardInterference:From the above chart 25% of the respondents are sometimes,25% of the respondents arealways, 25% of the respondents are rarely and 25% of the respondents are frequently.Mention the satisfaction level about the secured information send through your personalmobile. Table 4.16 – Satisfaction Level on Secured Information sent to MobileSino Particulars No of Respondents Percentage1 Highly Satisfied 19 202 Satisfied 35 383 Neither Satisfied 25 27 nor Dissatisfied4 Dissatisfied 10 115 Highly dissatisfied 4 4 Total 93 100
  40. 40. 30 Figure 4.16 – Satisfaction Level on Secured Information sent to MobileInterference:From the above chart 19% of the respondents are highly satisfied, 35% of the respondents aresatisfied, 32% of the respondents are neither satisfied nor dissatisfied, 10% of therespondents are dissatisfied and 4% of the respondents are highly dissatisfied.Do you think the internet banking security is increasing while the transaction is combinedwith internet and mobile? Table 4.17 – Acceptance level in increase in security with Internet and Mobile Banking Sino Particulars No. of Respondents Percentage 1 Yes 73 78 2 No 20 22 Total 93 100
  41. 41. 31 Figure 4.17 – Acceptance level in increase in security with Internet and Mobile Bankinga) Yesb) NoIf yes, mention the satisfaction level Table 4.18 – Satisfaction level in increase in security with Internet and Mobile Banking Sino Particulars No. of respondents Percentage 1 Highly Satisfied 20 27 2 Satisfied 20 27 3 Simply satisfied 20 27 4 Very simply satisfied 13 18 Total 73 100
  42. 42. 32 Table 4.18 – Satisfaction level in increase in security with Internet and Mobile BankingInterference:From the above chart 25% of the respondents are highly satisfied, 25% of the respondentsare satisfied, 25% of the respondents are simply satisfied, 25% of the respondents are Verysimply satisfied. Mention the satisfaction about the security level before the introduction of internet bankingtechnology? Table 4.19 – Satisfaction level on Security before Internet Banking Sino Particulars No. of respondents Percentage 1 Highly Satisfied 24 26 2 Satisfied 42 45 3 Neither Satisfied nor Dissatisfied 20 22 4 Dissatisfied 7 8 5 Highly Dissatisfied 0 0 Total 93 100 Table 4.19 – Satisfaction level on Security before Internet BankingInterference:
  43. 43. 33From the above chart 24% of the respondents are highly satisfied, 49% of the respondents aresatisfied, 20% of the respondents are neither satisfied nor dissatisfied, 7% of the respondentsare dissatisfied and 0% of the respondents are highly dissatisfied.Mention the satisfaction about the security level after the introduction of internet bankingtechnology? Table 4.20 – Satisfaction level on Security After Internet Banking Sino Particulars No. of respondents Percentage 1 Highly Satisfied 14 15 2 Satisfied 42 45 3 Neither Satisfied nor Dissatisfied 30 32 4 Dissatisfied 7 8 5 Highly Dissatisfied 0 0 Total 93 100 Table 4.20 – Satisfaction level on Security after Internet BankingInterference:From the above chart 14% of the respondents are highly satisfied, 49% of the respondents aresatisfied, 30% of the respondents are neither satisfied nor dissatisfied, 7% of the respondentsare dissatisfied and 0% of the respondents are highly dissatisfied.My interaction with the on-line banking systems would be clear and understandable.
  44. 44. 34 Table 4.21 – Opinion on understandability of Online Banking Sino Particulars No. of respondents Percentage 1 Strongly agree 25 44 2 Agree 20 35 3 Neutral 5 9 4 Disagree 7 12 5 Strongly disagree 0 0 Total 57 100 Figure 4.21 – Opinion on understandability of Online BankingInterference:From the above chart 50% of the respondents are strongly agree, 40% of the respondentsare agree, 10% of the respondents are neutral, 0% of the respondents are disagree and 0% ofthe respondents are strongly disagree.Learning to use the on-line banking systems would be easy for me. Table 4.22 – Opinion on Easy Learning of Online Banking Sino Particulars No. of respondents Percentage 1 Strongly agree 25 44 2 Agree 20 35 3 Neutral 5 9 4 Disagree 7 12 5 Strongly disagree 0 0
  45. 45. 35 Total 57 100 Figure 4.22 – Opinion on Easy Learning of Online BankingInterference:From the above chart 40% of the respondents are strongly agree, 50% of the respondentsare agree, 10% of the respondents are neutral, 0% of the respondents are disagree and 0% ofthe respondents are strongly disagree.I find the Internet Banking sites to be easy to use Table 4.23 – Opinion on Easy Use of Online Banking Sino Particulars No. of respondents Percentage 1 Strongly agree 14 25 2 Agree 28 49 3 Neutral 14 25 4 Disagree 1 2 5 Strongly disagree 0 0 Total 57 100
  46. 46. 36 Table 4.23 – Opinion on Easy Use of Online BankingInterference:From the above chart 28% of the respondents are strongly agree, 56% of the respondentsare agree, 14% of the respondents are neutral, 2% of the respondents are disagree and 0% ofthe respondents are strongly disagree.Interacting with the on-line banking will not require a lot of my mental effort. Table 4.24 – Opinion on lesser mental effort using Online Banking Sino Particulars No. of respondents Percentage 1 Strongly agree 25 44 2 Agree 20 35 3 Neutral 5 9 4 Disagree 7 12 5 Strongly disagree 0 0 Total 57 100
  47. 47. 37 Figure 4.24 – Opinion on lesser mental effort using Online BankingInterference:From the above chart 50% of the respondents are strongly agree, 40% of the respondents areagree, 10% of the respondents are neutral, 0% of the respondents are disagree and 0% of therespondents are strongly disagree.Did the bank arrange any seminar programs to make their customers aware about the newtechnology updating? Table 4.25 – Seminar Programs conducted by bankers on Online Banking Sino Particulars No. of Respondents Percentage 1 Yes 21 14 2 No 90 60 3 Can’t say 39 26 Total 150 100
  48. 48. 38 Table 4.25 – Seminar Programs conducted by bankers on Online BankingInterference:From the above chart 14% of the respondents are yes, 60% of the respondents are No and26% of the respondents are can’t say.a) Yesb) Noc) Can’t sayDo you fully believe the internet banking facility provided by the bank? Table 4.26 – Belief on Internet Banking Sino Particulars No. of Respondents Percentage 1 Yes 120 80 2 No 9 6 3 Can’t say 21 14 Total 150 100
  49. 49. 39 Figure 4.26 – Belief on Internet BankingInterference:From the above chart 80% of the respondents are yes, 6% of the respondents are No and 14%of the respondents are can’t say.Are you satisfied with the time taken for a transaction for a inter bank account to other bankaccount through online transaction? Table 4.27 – Satisfaction level on Third Party Transaction Time through Internet Banking Sino Particulars No. of respondents Percentage 1 Highly Satisfied 66 66 2 Satisfied 28 28 3 Neither Satisfied nor Dissatisfied 6 6 4 Dissatisfied 0 0 5 Highly Dissatisfied 0 0 Total 100 100
  50. 50. 40 Figure 4.27 – Satisfaction level on Third Party Transaction Time through Internet BankingInterference:From the above chart 66% of the respondents are highly satisfied, 28% of the respondents aresatisfied, 6% of the respondents are neither satisfied nor dissatisfied, 0% of the respondentsare dissatisfied and 0% of the respondents are highly dissatisfied.Are you satisfied with the facility provided by the internet banking website? Table 4.28 – Satisfaction level facilities in Internet Banking Sino Particulars No. of respondents Percentage 1 Highly Satisfied 20 22 2 Satisfied 45 48 3 Neither Satisfied nor Dissatisfied 10 11 4 Dissatisfied 13 14 5 Highly Dissatisfied 5 5 Total 93 100
  51. 51. 41 Figure 4.28 – Satisfaction level facilities in Internet BankingInterference:From the above chart 23% of the respondents are highly satisfied, 49% of the respondents aresatisfied, 10% of the respondents are neither satisfied nor dissatisfied, 13% of therespondents are dissatisfied and 5% of the respondents are highly dissatisfied.Do you need some changes in existing internet banking website? Table 4.29 – Need of Change in Internet Banking Websites Sino Particulars No. of Respondents Percentage 1 Yes 63 68 2 No 20 22 3 Can’t say 10 11 Total 93 100
  52. 52. 42 Figure 4.29 – Need of Change in Internet Banking WebsitesInterference:From the above chart 70% of the respondents are yes, 20% of the respondents are No and10% of the respondents are can’t say.I plan to use Online Banking Table 4.30 – Acceptance of Internet banking in near future by respondents Sino Particulars No. of respondents Percentage 1 Strongly agree 35 35 2 Agree 40 40 3 Neutral 16 16 4 Disagree 5 5 5 Strongly disagree 4 4 Total 57 100
  53. 53. 43 Figure 4.30 – Acceptance of Internet banking in near future by respondentsInterference:From the above chart 40% of the respondents are strongly agree, 40% of the respondents areagree, 10% of the respondents are neutral, 6% of the respondents are disagree and 4% of therespondents are strongly disagree.I intend to increase my use of the on-line banking systems in the near future. Table 4.31 – Increase in Internet banking usage in near future by respondents Sino Particulars No. of respondents Percentage 1 Strongly agree 24 26 2 Agree 42 45 3 Neutral 20 22 4 Disagree 7 8 5 Strongly disagree 0 0 Total 93 100
  54. 54. 44 Figure 4.31 – Increase in Internet banking usage in near future by respondentsInterference:From the above chart 24% of the respondents are strongly agree, 49% of the respondents areagree, 20% of the respondents are neutral, 7% of the respondents are disagree and 0% of therespondents are strongly disagree.Internet banking does not interfere in my privacy; I find the internet banking to be secure Table 4.32 – Satisfaction level on Security in Internet banking No. of Sino Particulars respondents Percentage 1 Strongly agree 21 14 2 Agree 90 60 3 Neutral 39 26 4 Disagree 0 0 5 Strongly disagree 0 0 Total 150 100
  55. 55. 45 Figure 4.32 – Satisfaction level on Security in Internet bankingInterference:From the above chart 14% of the respondents are strongly agree, 60% of the respondents areagree, 26% of the respondents are neutral, 0% of the respondents are disagree and 0% of therespondents are strongly disagree.Using the internet banking may expose me to fraud or monetary loss. Table 4.33 – Opinion on fraudulent exposure in Internet banking No. of Sino Particulars respondents Percentage 1 Strongly agree 8 8 2 Agree 8 8 3 Neutral 36 36 4 Disagree 12 12 5 Strongly disagree 52 52 Total 150 100
  56. 56. 46 Figure 4.33 – Opinion on fraudulent exposure in Internet bankingInterference:From the above chart 8% of the respondents are strongly agree, 8% of the respondents areagree, 36% of the respondents are neutral, 12% of the respondents are disagree and 52% ofthe respondents are strongly disagree.DATA INTERPRETATIONChi-Square Test A chi-square test (also chi-squared or χ2 test) is any statistical hypothesis test inwhich the sampling distribution of the test statistic is a chi-square distribution when the nullhypothesis is true, or any in which this is asymptotically true, meaning that the samplingdistribution (if the null hypothesis is true) can be made to approximate a chi-squaredistribution as closely as desired by making the sample size large enough. For testing, anyrelationship between two variables the chi square test is suitable, Chi square test – Test ofindependence Chi-square (χ2) is done by using the formula:∑ (O– E) 2 / E (4.1) Where, O = Observed frequency E = Expected frequencyHypothesis of the study
  57. 57. 471. Chi-square analysis of employee gender and opinion about E-Banking secure options.Hypothesis: H0 – There is relation between employee gender and Opinion about E-Bankingsecure options. Table 4.34 - Observed FrequencyGender Opinion about E-Banking secure options Total Strongly Agree Neutral Disagree Strongly agree disagreeMale 14 77 31 0 0 122Female 7 13 8 0 0 28Total 21 90 39 0 0 150 Table 4.35 - Expected FrequencyGender Opinion about E-Banking secure options Total Strongly Agree Neutral Disagree Strongly agree disagreeMale 15 61 29 8 9 122Female 6 9 10 2 1 28Total 21 70 39 10 10 150 Table 4.36 – Chi-Square AnalysisS.No. Observed Expected (O-E) (O-E)^2 (O-E)^2/E Frequency (O) Frequency (E) 1 14 15 -1 1 0.066667 2 7 6 1 1 0.166667 3 77 61 16 256 4.196721 4 13 9 4 16 1.777778 5 31 29 2 4 0.137931 6 8 10 -2 4 0.4 7 0 8 -8 64 8 8 0 2 -2 4 2 9 0 9 -9 81 9 10 0 1 -1 1 1 TOTAL 26.74576Degrees of Freedom: ( m-1 ) * ( n-1 ) (2-1) * (5-1)
  58. 58. 48 =4Tabulated value of degrees of freedom (4) @ 5% level of significance = 9.49calculated value > tabulated value.Therefore H0 is rejected.Inference:There is no relation between gender and opinion about E-Banking secure options.2. Chi-square analysis of employee age and usage of internet banking facility.Hypothesis: H0 – There is relation between employee age and usage of internet bankingfacility. Table 4.37 - Observed FrequencyOption Age Total 18– 24 25 -31 32-38 38-44Yes 39 42 17 2 100No 24 15 10 1 50Total 63 57 27 3 150 Table 4.38 - Expected FrequencyOption Age Total 18– 24 25 -31 32-38 38-44Yes 42 41 16 1 100No 21 16 11 2 50Total 63 57 27 3 150 Table 4.39 – Chi-Square AnalysisS.No. Observed Expected (O-E) (O-E)^2 (O-E)^2/E Frequency (O) Frequency (E) 1 39 42 -3 9 0.214286
  59. 59. 49 2 24 21 3 9 0.428571 3 42 41 1 1 0.02439 4 15 16 -1 1 0.0625 5 17 16 1 1 0.0625 6 10 11 -1 1 0.090909 7 2 1 1 1 1 8 1 2 -1 1 0.5 TOTAL 2.383156Degrees of Freedom: ( m-1 ) * ( n-1 ) (2-1) * (4-1) =3Tabulated value of degrees of freedom (4) @ 5% level of significance = 7.82calculated value > tabulated value.Therefore H0 is accepted.Inference: There is relation between employee age and usage of internet banking facility. CHAPTER 5 CONCLUSION5.1 Summary of findings
  60. 60. 50 42% of the respondents are 18-25 age, 38% of the respondents are 25 -35 age, 18% of the respondents are 35-45 age, 2% of the respondents >45 . 81% of the respondents are male and 19% of the respondents are female. 4% of the respondents are 10th, 6% of the respondents are 12th, 58% of the respondents are U.G, and 32% of the respondents are P.G. 30% of the respondents are Students, 8% of the respondents are Government employees, 40% of the respondents are IT sectors, and 22% of the respondents are other private sectors. 4% of the respondents are having monthly income below 5000, 24% of the respondents are having monthly income between 5001 to 8000, 22% of the respondents are having monthly income between 8001 to 12000, and 20% of the respondents are having monthly income between 12001 to 15000, and 30% of the respondents are having monthly income above 15000. 6% of the respondents having bank account for below 1 year,48% of the respondents having bank account between 1year to 3 years, 38% of the respondents having bank account between 3years to 5years, and 8% of the respondents having bank account for above 5years. 67% of the respondents using internet banking and balance 33% are didn’t. 38% of the respondents having online account for 1year and below, 28% of the respondents having online account between 1year to 2 years, and 34% of the respondents having online account for 2 years and above. 50% of the respondents are using internet banking services for more than once a week, 20% of the respondents are having once a week, 10% of the respondents are having once every 2 weeks, 10% of the respondents are having once a month and 10% of the respondents are having by other.
  61. 61. 51 35% of the respondents are using on-line banking systems by online bill payment, 20% of the respondents are using by fund transfer, 5% of the respondents are using by checkbook application, 10% of the respondents are using by Summary reports of transaction and 10% of the respondents are using by account information and balance enquiry, 10% of the respondents are using by Share margin trading account, 10% of the respondents are none. 24% of the respondents are totally agree with improves their performance on their online banking ,49% of the respondents are Agree,20% of the respondents neutral,7% of the respondents are Disagree and 0% of the respondents are Strongly Disagree. Response for the satisfaction about,online banking is easier to conduct transactions, 8% of the respondents are strongly agree,52% of the respondents are Agree,20% of the respondents are neutral , 20% of the respondents are Disagree and 0% of the respondents Strongly Disagree. Using of virtual keyboard facility to log in the account, 80% of the respondents say yes, 8% of the respondents said No, and 14% of the respondents can’t say. Usage level of virtual keyboard, 25% of the respondents are using sometimes,25% of the respondents are using always, 25% of the respondents are using rarely and 25% of the respondents are using frequently. Response for the satisfaction about the secured information send through personal mobile, 19% of the respondents are Highly Satisfied,35% of the respondents are Satisfied,32% of the respondents are Neither Satisfied nor Dissatisfied, 10% of the respondents are Dissatisfied and 4% of the respondents are Highly dissatisfied. Response for the satisfaction about the security level before the introduction of internet banking technology, 24% of the respondents are highly satisfied, 49% of the respondents are satisfied, 20% of the respondents are neither satisfied nor dissatisfied, 7% of the respondents are dissatisfied and 0% of the respondents are highly dissatisfied.
  62. 62. 52 Response for the satisfaction about the security level after the introduction of internet banking technology, 14% of the respondents are highly satisfied, 49% of the respondents are satisfied, 30% of the respondents are neither satisfied nor dissatisfied, 7% of the respondents are dissatisfied and 0% of the respondents are highly dissatisfied. Response about the online banking system should be clear and understandable to the people, 50% of the respondents are strongly agree,40% of the respondents are Agree,10% of the respondents are neutral , 0% of the respondents are Disagree and 0% of the respondents Strongly Disagree. Response for the online banking is easy, 40% of the respondents are strongly agree, 50% of the respondents are agree, 10% of the respondents are neutral, 0% of the respondents are disagree and 0% of the respondents are strongly disagree. Response for that Internet banking is easy to use, 28% of the respondents are strongly agree, 56% of the respondents are agree, 14% of the respondents are neutral, 2% of the respondents are disagree and 0% of the respondents are strongly disagree. Awareness about the seminar programs to make the customers to know about the technology updating, 14% of the respondents said yes, 60% of the respondents said No and 26% of the respondents can’t say. Fully believe the internet banking facility provided by the bank, 80% of the respondents said yes, 6% of the respondents said No and 14% of the respondents can’t say. Response for the time taken for a transaction for a inter bank account to other bank account through online transaction, 66% of the respondents are highly satisfied, 28% of the respondents are satisfied, 6% of the respondents are neither satisfied nor dissatisfied, 0% of the respondents are dissatisfied and 0% of the respondents are highly dissatisfied.
  63. 63. 53  Satisfaction with the facility provided by the internet banking website, 23% of the respondents are highly satisfied, 49% of the respondents are satisfied, 10% of the respondents are neither satisfied nor dissatisfied, 13% of the respondents are dissatisfied and 5% of the respondents are highly dissatisfied.  Need some changes in existing internet banking website, 70% of the respondents said yes, 20% of the respondents said No and 10% of the respondents can’t say.  Plan to use Online Banking, 40% of the respondents are strongly agree, 40% of the respondents are agree, 10% of the respondents are neutral, 6% of the respondents are disagree and 4% of the respondents are strongly disagree.  Intend to increase use of the on-line banking systems in the near future, 24% of the respondents are strongly agree, 49% of the respondents are agree, 20% of the respondents are neutral, 7% of the respondents are disagree and 0% of the respondents are strongly disagree.5.2 Suggestions  The awareness and the usage level of virtual keyboard facility to log the internet banking account is less. It should be increased, because virtual key board facility is safer than ordinary keyboard usage.  The security provided by the bank regarding internet banking transaction should be improved. The mobile phone used in transaction details increase the security of transaction.  The security level in the internet banking should be increased.  The bank should encourage the internet banking usages.  The bank should arrange seminar programs to make their customers aware about the new technology updating.  Internet banking facility provided by the bank should be increased from the customer’s point of view.
  64. 64. 54  Time taken for a transaction for a inter bank account to other bank account through online transaction should be minimized.5.3 Conclusion Analysis shows that even though the internet banking facility is having manyadvantages, it is not utilized by many people. It shows that the younger generation people aremore likely to use the Internet banking facilities frequently when compared to the middle ageand old age people. It is due to the unawareness of the customers towards the internetbanking facility. Also, the people are finding difficulties in using the Internet bankingwebsites which had created an aversion in them towards net banking. This can be overcomeif the Banks conduct sessions on the various features provided in their Online banking websites. Even among the younger generation people, it is found that many are feeling insecureto use the online transaction facilities provided by the banks. The internet bankingtechnology should be made more secure so as to eliminate this constraint among thecustomers. Hence by this study we have found out the various factors that restrict the usageof internet banking among the customers. Through this study suggestive methods toovercome these factors to increase the usage of Internet Banking facilities have also beenfound.
  65. 65. 55 CHAPTER 6 APPENDIX6.1 QuestionnaireThe Following questionnaire was used for the data collection:Instructions: For Questions having a rating scale of 1-5, state your agreement based onthe following scales: 1- Highly Dissatisfied 2- Dissatisfied 3- Neutral 4- Satisfied 5- Highly SatisfiedSelect the applicable scale with red colour (e.g. 1). After filling the questionnaire savethe filled one and send it back.Age:a) 18-25b) 25-35c) 35-45d) > 45Gender:a) maleb) FemaleEducation:a) 10thb) 12thc) U.Gd) P.GOccupationa) Studentb) Government employeec) IT sectord) Other private sectors
  66. 66. 56Monthly Income (in Rupees)a) <5000b) 5001 - 8000c) 8001- 12000d) 12001-15000e) >150001. How long you have a bank account?a) <1yrb) 1yr – 3 yrsc) 3yrs – 5yrsd) >5yrs2. How long you have an online account?a) <1yrb) 1yr – 2 yrsc) >2 yrs3. Do you use Internet Banking?a) Yesb) NoIf yes, go to Question 4If No, go to Question 144. How often do you use Internet Banking services?a) More than once a weekb) Once a weekc) Once every 2 weeksd) Once a monthe) Other5. Which of the following services used by you through the on-line banking systems? (You can tick more than 1)a) On-line bill paymentb) Fund transferc) Checkbook Application
  67. 67. 57 d) Summary Reports of transactions e) Account Information and balance enquiry f) Share margin trading Account g) None 6. Have you used virtual keyboard facility to log in your account? a) Yes b) No If yes, mention the usage level of virtual keyboard • sometimes • always • rarely • frequently7. Using the on-line banking systems would improve my performance in 1 2 3 4 5 conducting banking transactions.8. Using the on-line banking systems would make it easier for me to conduct 1 2 3 4 5 banking transactions 9. On-line banking eliminates time constraints; thus I can use the banking 1 2 3 4 5 services at any time I like.10 Mention the satisfaction level about the secured information send through 1 2 3 4 5. your personal mobile.11 Do you think the internet banking security is increasing while the transaction 1 2 3 4 5. is combined with internet and mobile?12 Mention the satisfaction about the security level before the introduction of 1 2 3 4 5. internet banking technology?13 Mention the satisfaction about the security level after the introduction of 1 2 3 4 5. internet banking technology?14 I find the Internet Banking sites to be easy to use.15 My interaction with the on-line banking systems would be clear and 1 2 3 4 5. understandable.16 Learning to use the on-line banking systems would be easy for me. 1 2 3 4 517 Interacting with the on-line banking will not require a lot of my mental 1 2 3 4 5. effort.

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