Project on customer awareness towards internet banking

THE STUDY ON CUSTOMER AWARENESS TOWARDS INTERNET
BANKING SERVICES PROVIDED BY DENA BANK.
BY
LAKSHMY T M
ABSTRACT
Banking system occupies an important place in a nation's economy. A banking institution is
indispensable in modern society. It plays a pivotal role in the economic development of a country and forms the
core of the money market in an advanced country. Without a sound and effective banking system in India it
cannot have a healthy economy. The banking system of India should be able to meet new challenges posed by
the technology and any other external and internal factors.
Dena bank offers a wide range of banking products and financial services to corporate and retail
customer through a variety of delivery channels and through its specialized subsidiaries and affiliates in the
areas of investment banking. The study is about the customer awareness towards internet banking service
provided by Dena bank with special reference towards Kottayam branch. The period of study was from
September 2017 to November 2017. 25 samples are collected from the customers. Different analysis has been
done by using the statistical tools. The study is hoped to be essential and good to reveal certain facts.
Data collection method was adopted, in which questionnaire is administered by adopting directing
interview method to carry out project work. The information collected was processed, coded and tabulated. The
tabulated information was analyzed through percentage method, from this inference were drawn. Based on the
inference suggestions and recommendations were given.
INTRODUCTION
Customer awareness is about making the customer aware of his/her rights. It is a marketing term which
means that customers are aware of products or services, its characteristics and the other marketing P's (place to
buy, price, and promotion). High prices, duplicate articles, underweight and under - measurements, rough
behavior, undue conditions, artificial scarcity are some of the ways by which customers are exploited by
manufacturers and traders. Limited information, limited supplies and low literacy are factors causing
exploitation of customers.
Customer awareness is a very important element as we attempt to move forward a close out sales. This
can be an issue both online and offline with really the same science behind each of them.
Enactment of Customer Protection Act, 1986 was one of the most important steps taken to protect the
interests of customers. The provision of the Act came into force, with effect from July 1, 1987. The act
recognizes customer's right to seek redresses and right to customer education. The salient features of the Act are
as follows: -
 Applies to all goods and services unless specifically exempted by the Union Government;
 Covers all the sectors whether private, public or cooperative;
 Enshrines the customer's rights related to safety. information, choice, representation and redress and
customer education.
 The act gives customers an additional remedy besides those which may be available to them under the
provisions of other existing laws and they are free to choose the remedy.
 Empower customers seeking discontinuance of certain unfair and restrictive trade practices, defects or
deficiencies in services and stopping in services or withdrawal of hazardous goods from the market.

Industry Profile:
Banking in India originated in the first decade of 18th century. The General Bank of India came into existence
in 1786. This was followed by Bank of Hindustan. Both these banks are now defunct. The oldest bank in
existence in India is the State Bank of India being established as "The Bank of Bengal" in Calculate in June
1806. A couple of decades later, foreign banks like Credit Lyonnais started their Calcutta operations in the
1850s. At that point of time, Calcutta was the most active trading port, mainly due to the trade of the British
Empire, and due to which banking activity took roots there and prospered. The first fully Indian owned bank
was the Allahabad Bank, which was established in 1865. By the 1900s, the market expanded with the
establishment of banks such as Punjab National Bank, in 1895 in Lahore and Bank of India, in 1906, in Mumbai
- both of which were founded under private ownership. The Reserve Bank of India formally took on the
responsibility of regulating the Indian banking sector from 1935. After India's independence in 1947, the
Reserve Bank was nationalized and given broader powers. The banking in India was controlled aid combated by
the presidency banks, namely, the Bank of Bombay, the Bank of Bengal, and the Bank of Madras -which later
on merged to form the Imperial Bank of India, and Imperial Bank of India, upon India's independence, was
rename the State Bank of India. The presidency banks were like the central banks and discharged most old the
font tins of central banks. They were established under charters from the British Eats India Company. The
exchange banks, mostly owned by the Europeans, concentrated on financing of foreign trade. Indian joint stock
banks were generally under capil lazed a i d lacked the experience and maturity to compete with the presidency
banks, and the exchange banks. There was potential for many new banks as the economy was growing Under
these circumstances, many Indians came forward to set up banks, and many banks were set up at that time, and
a number of them set up around that time continued o survive and prosper even now like Bank of India and
Corporation Bank, Indian Bank, Bank of Baroda, and Canada Bank.
b. Growth and PresentStatus of the Industry:-
By the 1960s, the Indian banking industry has become an in important tool to facilitate the development of the
Indian economy. The GOI issued an ordinance and nationalized the 14 largest commercial banks with effect
from the midnight of July 19, 1969. Within two weeks of the issue of the ordinance, the Parliament passed the
Banking Companies (Acquisition and Transfer of Undertaking) Bill, and it received the presidential approval on
9th August, 1969. A second dose of nationalization of 6 more commercial banks followed in 1980. With the
second dose of nationalization, the GOI controlled around 91% of the banking business of India.
c. Future of the Industry: -
The Indian banking system, with one of the largest banking networks in the world, has witnessed a
series of reforms over the past few years like the deregulation of interest rates, dilution of the government stake
in public sector banks (PSBs), and the increased participation of private sector banks. Indian banks (both public
and private) have not only been keen to tap the domestic market but also to compete in the global market place.
New foreign banks have been equally keen to gain a foothold in the Indian market. The corporate sector has
stepped up its demand for credit to fund its expansion plans; there has also been a growth in retail banking.
However, even as the opportunities increase, there are some issues and
challenges that Indian banks will have to contend with.
OBJECTIVESOF THE STUDY
PRIMARY OBJECTIVE:
To study customer awareness about the Internet Banking services provided by Dena bank with special reference
to Kottayam branch.
SECONDARYOBJECTIVES:
To analyze customer satisfaction level in the internet banking services
To know the reason for preferring internet banking service in Dena bank
To know the customers perception about the internet banking services.

NEED FOR THE STUDY:
Dena bank offered Internet banking since 24th May 2008. But the fact is that there are only limited
customers who use this facility, compared to other services. Hence to enable the awareness of this service in the
minds of the customers the researcher is interested to study "Customer awareness towards the internet banking
services provided by Dena bank with special reference to Kottayam branch" in terms of
Factors determining customer awareness towards the internet banking services.
To identify the customers' perception about the internet banking service.
To trace out the expectation of customer towards the internet banking services.
SCOPE OF THE STUDY:
The study entitled "Customer awareness towards internet banking service provided by Dena bank with
special reference to Kottayam branch" aims to find out the awareness level and the effectiveness of Internet
banking service provided by Dena bank to the customers. The analysis will help to know the awareness level of
customers regarding the internet banking services. Along with the satisfaction level of tie customers in the
internet banking services and the customer's perception regarding the internet banking service at Dena bank.
Source of data:
Primary Data:
Primary data has collected directly from customers through structured questionnaires (Individual sample
units)
Secondary Data:
Secondary data has collected from the various magazines, journals, website of DENA BANK and
various websites.
Sampling Method:
The population includes male and female customers with Dena bank. In this project convenience
sampling method is followed.
In convenience sampling, a sample is obtained by selecting convenient population elements from the
population.
Sample Size:
Our Sample size was 25, who fulfill the basis criteria- Customers with Dena bank.
DATA ANALYSIS AND INTERPRETATION
TABLE No 1
DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR AGE
AGE GROUP OF CUSTOMERS
AGE CLASS NO: OF RESPONDENTS PERCENTAGE
Below 20 2 8
20-30 5 20
30-40 10 40
40-50 7 28
Above 50 1 4
TOTAL 25 100
Source: Primary Data
INFERENCE:
From the above table, 28% of the respondents are of 40-50 years old, 20% of the respondents are of 20-30 years
old, 40% of the respondents are of 30-40 years old, 4% of the respondents are above 50 years old and the
remaining 8% of the respondents are below the age of 20.

TABLE No 2
DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR OCCUPATION
MODE OF OCCUPATION
OCCUPATION NO:OF RESPONDENTS PERCENTAGE
Business 5 20
Govt. Employees 2 8
Retired 5 20
Pvt. Sectors 10 40
Others 3 12
TOTAL 25 100
INFERENCE:
The above table shows that, 40% of the respondents are Private sector, 20% of the respondents are business
person, 12% of the respondents are others, 8% of the respondents are Govt. employees and the remaining is
retired.
TABLE No 3
DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR INCOMELEVEL
Category of Income Level Income Level No. of.
Respondents
Percentage
Below 1 Lakh 48 32 7 28
1 Lakh - 3 Lakh 8 32
Above 3 Lakh 10 40
Total 25 100
INFERENCE
From the above table40% of the respondent's annual income are above Rs.3 Lakh, 32% of the respondent's
annual incomes are between Rs.1 Lakh -3Lakh. Remaining 28% of the respondents below Rs.1 Lakh.
TABLE No 4
DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR ACCOUNT HELD WITH THE
BANK:
Having account in Dena Bank
Status No. of. Respondents Percentage
Below 1 Year 4 16
1-3 Years 6 24
3-5 Year 7 28
Above 5 Years 8 32
Total 25 100
INFERENCE
From the above table, 32% of the respondents are having above 5 years with the bank, 28% of the respondents
are between 3-5 years, and 24% of the respondents are 1-3 years. Remaining 16% of the respondents are having
account below 1 year with the bank.

TABLE No 5
DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR CONVENIENT MODEOF
BANKING:
Classifications based on customer's convenient mode of banking :
Branch 2 8
Internet banking 3 12
Phone banking 5 20
Mobile banking 7 28
ATM Services 8 32
Total 25 100
INFERENCE:
From the above table, 32% of respondents are aware about ATM service, 12% of respondents are aware about
Internet banking services, 8% & 28% of respondents are aware about branch banking and mobile banking
service, remaining 20% of respondents are aware about phone banking service.
TABLE No 6
DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR AWARENESS ABOUT THE
INTERNET BANKING SERVICES:
Awareness about internet banking services
Yes 20 80
No 5 20
Total 25 100
INFERENCE:
From the above table, 80% of the respondents are aware of the internet banking service offered by the bank the
remaining 20% of respondents are unaware of it.
TABLE No 7
DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR USAGE OF INTERNET BANKING
SERVICES:
Awareness about internet banking services
Yes 10 40
No 15 60
Total 25 100
INFERENCE
From the above table, 40% of the respondents are using internet banking service offered by the bank and the
remaining 60% of respondents are not using it.

TABLE No 4.8
DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR PERIOD OF USAGE OF INTERNET
BANKING SERVICES:
Period of usage of internet banking services
Never used 12 48
Less than 1 year 4 16
1-2 years 1 4
Above 2 years 8 32
Total 25 100
Source : Primary Data
INFERENCE
From the above table, 48% of the respondents never used this service, 32% of the respondents have used this
service above 2 years, and 16% of the respondents have used this service below 1 year. Remaining 4% of the
respondents are using this service between 1-2 years.
TABLE No 9
DISTRIBUTION OF RESPONDENTS ACCORDING TO THE TRANSACTIONS THEY MADE
THROUGH INTERNET BANKING SERVICES:
Period of usage of internet banking services
Balance Enquiry 2 15.38
Mini Statement 5 38.48
Statements of Account 2 15.38
Cheque based enquiry 1 7.69
Funds Transfer 2 15.38
Tax Payments 1 7.69
Total 13 100
INFERENCE
From the above table, 15.38% of the respondents tried Balance Enquiry, Account Statement, Funds Transfer
facility offered by the bank. 38.48% of the respondents have checked their Mini Statement and the7.69% of the
respondents have made Cheque based enquiry and Tax payments using internet banking service.
TABLE No 10
DISTRIBUTION OF RESPONDENTS REASON FOR NOT USING INTERNET BANKING
SERVICES:
Reason for not using internet
status No. of. Respondents Percentage
Confusing 1 8.33
Lack of information 4 33.33
Fear of security 5 41.67
Others 2 16.67
Total 12 100
INFERENCE:
From the above table, 41.67% of the respondents did not use this service due to the fear of security, 33.33% of
the respondents did not use this service due to the lack of information about this service, 16.67% of the
respondents did not use this service due to some other reasons and for the remaining 8.33% of the respondents
did not use this service due to confusion in the internet banking service.

TABLE No 11
DISTRIBUTION OF RESPONDENTSACCORDING TO THEIR PURPOSE OF USING INTERNET
BANKING SERVICES:
Purpose for using internet banking services
Business activity 6 46.15
Electronic Payments 4 30.78
Demat Services 2 15.38
Others 1 7.69
Total 13 100
INFERENCE
From the above table, 46.15% of the respondents used this for business activity, 30.78% of the respondents used
this for making electronic payments, 15.38% of the respondents used this for Demat Services and 7.69% of the
respondents used this for other purposes.
TABLE No 12
DISTRIBUTION OF RESPONDENTS ACCORDING TO THEIR SATISFACTION LEVEL IN THE
INTERNET BANKING SERVICE
Satisfaction in the internet banking services
Highly satisfied 5 38.48
Satisfied 3 23.07
Neutral 3 23.07
Dis- Satisfied 2 15.38
Highly dis - satisfied 0 0
Total 13 100
INFERENCE:
From the above table, 38.48% of the respondents are highly- satisfied with this service, 23.07% of the
respondents are satisfied and neutrally satisfied with this service, and 15.38% of the respondents
are dis-satisfied with this service. None of the respondents are highly dis-satisfied with this service.
TABLE No 13
DISTRIBUTION OF RESPONDENTSACCORDING TO THEIR SATISFACTION TOWARDS
Satisfaction in the internet banking services
Cheap and best 4 30.78
Saves time consumption 6 46.15
Fast transactions 2 15.38
No need to visit bank often 1 7.69
Total 13 100
INFERENCE:
From the above table, 15.38% of the respondents are satisfied because of faster transactions, 46.15% of the
respondents are satisfied because it saves time consumption 30.78% of the respondents are satisfied because it
is Cheap and best, 7.69% of the respondents are satisfied because no need to visit bank often.

TABLE No 14
DISTRIBUTION OF RESPONDENTS REASON FOR THEIR DISSATISFACTION TOWARDS
Reason for dis-satisfaction towards internet banking service
Security reasons 12 48
Unable to do cash transactions 4 16
Others 9 36
Total 25 100
INFERENCE:
From the above table, 48% of the respondents are dis-satisfied for security reasons, 16% of the respondents are
dis-satisfied as it's unable to do cash transactions, and 36% of the respondents are dis-satisfied for other reasons.
TABLE No 4.15
DISTRIBUTION OF RESPONDENTS WITH REFERENCE TO THE FACILITIES OFFERED BY
THE BANK FOR INTERNET BANKING:
Facilities offered for internet banking
Excellent 0 0
Very Good 4 30.78
Good 6 46.15
Average 3 23.07
Poor 0 0
Total 13 100
INFERENCE:
From the above table, 30.78% of the respondents have rated Very good, 46.15% of the respondents have rated
Good, 23.07% of the respondents have rated Average and 0% of the respondents have rated excellent and poor
for the facilities offered by the bank for internet banking services.
Findings
54 percent of the respondents are Male.
28 percent of respondents are of the age group 40-50.
40 percent of respondents are private sector.
40 percent of respondents are above Rs. 3 Lakh.
32 percent of respondents are having account above 5 years in the bank.
All the respondents are aware of Dena bank.
32 percent of respondents are aware of only ATM Service.
Only 80 percent of respondents are aware of the internet banking service offered by the bank.
Only 40 percent of respondents are using the internet banking service offered by the bank.
48 percent of respondents have never used this service provided by the bank.
41.67 percent of respondent's didn't use the internet banking service because of fear of security.
46.15 percent of respondents used internet banking service for business activity.
38.48 percent of respondents are highly satisfied with this service.
46.15 percent of respondents are satisfied due to it saves time consumption
48 percent of respondents are dissatisfied due to security reasons.
46.15 percent of respondents have graded good for the facilities offered for internet banking

Suggestions:
Customers are not satisfied with the RTGS / NEFT facility.
Though the Internet Banking is an effective tool but many of the customers are not using it due to the
awareness of the particular direct banking channel. Now the responsibility lies with the bank to make them
aware about various Internet banking channels through publicity and advertisement.
Bank should educate the customer about the usage of internet banking channel and also about their
advantages. This would prompt the customers to shift from traditional brick and mortar channel.
It has been observed that even the customers who know about internet banking channel are not using this
facility due to misconception and lack of information. These customers should be targeted by the bank and must
be convinced to use the same.
The result of the study shows that customers are using only few facilities of various internet banking
channel. Though e- banking provides a full gamut of various services. Customer should be made aware of these
services and must be encouraged to use the same.
The bank may improve existing facilities in rural areas through advertising, spread awareness about
computer and net banking.
The best way to motivate the customer to use the e- banking is the most efficient customer care service.
CONCLUSION:
The success of the company directly or indirectly depends on their customers, as they are the backbone of
the company. With the development of technology, the customers’ expectations are raising relentlessly,
competitive will survive who can respond to the customer needs faster and better than anyone.
The project commences with fixing the objective then sample were collected accordingly around 150
samples have been collected from the population in a structure method and analysis have been done to get the
results.
The objectives framed at the beginning of the project have been achieved.
The customers are aware of Dena bank and various types of the services provided by the bank.
The result of this study shows that perceived usefulness, perceived ease of use, customer awareness and
perceived risk are the important determinants of internet banking adoption.
Study concludes that majority of customers are accepting internet banking because of many favorable
factors. Analysis concluded that usefulness, ease of use of the system awareness about internet banking and
risks related to it are the main perusing factors to accept internet banking system.
These factors have a strong and positive effect on customers to accept internet banking system.
EDUCATIONAL IMPLICATONS
Banking is one of the major subjects in commerce. So, it is important to know about different types of banks
and also about the services and facilities provided by them. As todays world is technologically developed, the
banks also update their systems according to technological development. So, these are also important for a
commerce student to know about these all.
BIBLIOGRAPHY
Philip Kotler Kevin Keller Lane prentice - Hall of India P Ltd Edition 2007
C.R Kothari Research Methodology New Age International Publication
Limited Second revised Edition 2006
P.N Arora & S. Arora Static for Management Sultan Chand Publication 3rd
Revised Edition 2006
Websites:
www.denabank.com
www.google.com

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