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ONLINE BANKING

ITS ALL ABOUT BANKING ONLINE

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ONLINE BANKING

  1. 1.
  2. 2. Some facts in context with India<br />Banking emerged in June 1806. <br />Oldest bank -SBI<br />Online banking came into picture in the early of 1980s.<br />First ATM card facility in 1985 by CITIBANK.<br />
  3. 3. Contents<br />Introduction<br />Objectives<br />Methodology<br />Analysis<br />Interpretation<br />Conclusion<br />Recommendations<br />
  4. 4. Introduction<br />Internet banking refers to the use of internet as a remote delivery channel for banking services. <br />Web based or internet banking is poised to become the future face of banking services.<br />The number of visits to the bank can be minimized effectively by operating from the internet account. Thus the number of contacts required to perform a transaction and solve a problem has been reduced through online banking. <br />The usual branches of banks have culminated into PC networks, whereby the consumer can draw all the benefits and services of the bank at a single click of the mouse. <br />
  5. 5. Internet Banking<br />The use of information technology in banking is now inherent in banking industry.  A customer can log on banks website and access his account.  He can perform following functions online: Balance enquiry, Transfer of funds and online payment.  A survey done by Booz and Allan has revealed that internet is the most economical way of banking.  Internet banking can be categorized in following stagesI. Information Kiosks: traditional information on banking products and services are available on the website of the bank.II. Basic I-Banking:  Here, bank sets up infrastructure for internet banking and for accessing basic services like opening an account, paying utility bills and checking the balance.III. Virtual medium: Here internet is taken as an official medium for financial transactions.  Buying and selling activities can be undertaken through banks payment gateway technology. <br />Today most of the banks are having their own functional websites through which banks are serving customers.  There are more than 90 banks offering internet banking.  <br />
  6. 6. Technology in Indian Banking <br />1960 - Mechanized banking introduced.1970 - Introduction of computer based banking industry.1980- Introduction of computer-linked communication based banking<br />Impact of Technology<br />* Paradigm shift from traditional banking to customized banking as the services can be delivered via computer and<br />* Convenient banking i.e. &quot;Anytime, Anywhere banking&quot;.  A customer can check balance by logging into banks website through a user name and password.  In this way he can enquire balance, status of cheques, perform funds transfers, order drafts, request issue of cheque books etc.<br />
  7. 7. Advantages<br />ConvenientUnaffected by boundation of operational timingsNo geographical barriers<br />Improve customer access<br /><ul><li>Facilitate the offering of more servicesIncrease customer loyaltyAttract new customersProvide services offered by competitorsReduce customer attrition
  8. 8. Services can be offered at very low cost</li></ul>As the chart shows results of a survey, cost per transaction through internet banking is the least among all other modes.<br />
  9. 9. The number of individuals utilizing internet services has increased considerably.  In 2006, about 12% of the 38.5 million internet users in India were banking online1 and the figure for online banking was estimated to rise to 16 million by 2007-080. The internet population itself is set to grow to 100 million by 2007-08.<br />                                             Table 1:  Internet Penetration in India.2<br />Multiple services can be offered through online banking such as – bill payment services, Fund transfer, railway pass (Indian rail has tied up with ICICI bank to make railway pass online for local trains3)  etc.<br />
  10. 10. OBJECTIVE<br />To know how web design influence online banking.<br />To study and know the popularity of online banking.<br />To know the reasons behind using the online banking, and at the same time for not using the online banking.<br />
  11. 11. MEHODOLOGY<br />Data collection –Primary and secondary<br />Questionnaire contains 22 questions.<br />Questionnaire type- Open ended & Close ended.<br />Sample size – 300<br />Sampling method – stratified sampling, random sampling,<br /> convenience sampling<br />Tabulation- Percentage method<br />Analysis- Graphs, charts<br />
  12. 12. Scope of the study<br />The scope of the study is limited as:<br /><ul><li>It is conducted on the particular age group 20-45.
  13. 13. The respondents are only those who use internet .
  14. 14. It is within the time bound limit of only one month
  15. 15. It can be only used for reference in future for this kind of study.</li></li></ul><li>Limitations of the study<br />Too short period-30 days ,which is very less for this kind of study.<br />The perception bias or attitude bias may act as hurdles.<br />The sample size is limited to only 300 which is very less for this kind of study.<br />The responses have been collected online only and from a particular segment of people with preference.<br />
  16. 16. ANALYSIS<br />
  17. 17. Q.1 Institution you bank with ?<br />From the survey it is found that maximum people use SBI to bank with i.e. 43%.<br />Following that then comes the ICICI with 24% of the people preferring it to bank with.<br />The other bank which 14% people preferred to bank with is the AXIS BANK.<br />
  18. 18. Q.2 Do you know about the online services provided by your bank?<br />It’s true that online banking is getting popular but most of the people know partially about i.e.52% from the sample.’<br />From 100% one-third i.e.39% people know fully about the online services provided by their bank.<br />And some 9% people have no idea about that.<br />
  19. 19. Q.3 Do you use online services provided by your bank?<br />By this we can say online banking services are really getting hype among the people as more than half of the people use it i.e. 60%.<br />And there also more than one-third people who do not use online banking services i.e. 40%.<br />
  20. 20. Q.4why don’t you use online banking services?<br />The reason behind not using the online services by bank is mainly not having the knowledge about it as one third people said i.e. 33%.<br />Most of the people do not use it as according to them it is unsafe i.e. 28%.<br />Some people have the view that it is too slow and difficult i.e. 6% and 11%.<br />The most interesting fact which came up is the other reason for not using online banking services is the TIME FACTOR; they don’t have the time i.e. 22% said that.<br />
  21. 21. Q.5 Why do you bank online ?<br />It is found that the people who use online banking services mostly use for convenience they get i.e.46%.<br />Following that 21% people use it because they feel it is simple 14% feel that it is effective, at the same time 12% think that it is cheaper to use. <br />
  22. 22. Q.6 How often do you use online banking services?<br />From the sample size majority of the people use online banking services weekly i.e. 43%.<br />Following that quite a large number of people are there who use online banking services monthly i.e.39%.<br />Some 14% people use it quarterly.<br />Very few people i.e. only 4% are there who use it daily.<br />
  23. 23. Q.7 The search function within the website enables me to find information I need ?<br />By this it is found that the search function of the website does not work always as 52% have this view.<br />And at the same time 48% have the opinion that it always work.<br />
  24. 24. Q.8 The website allows me to customize it according to my personal?<br />The website does not allow users to customize it according to them as 62% of people agree to this.<br />At the same time more than one-third people i.e. 38% said that it allows them to customize it.<br />
  25. 25. Q.9 Do you feel secure when I login to my banking website?<br />More than one-third people feel secure as said by 38% people.<br />But at same about 27% people have the view that they won’t feel secure when they login.<br />And 35% people didn’t say anything to it.<br />
  26. 26. Q.10 Graphics such as advertisement and banners presented on the web page do not interrupt me while banking online?<br />About two-third people have the opinion that they won’t get disturbed by the advertisements on the web page as 63% agree to this point.<br />At the same time 37% of the people get interrupted by that as 37% said no.<br />
  27. 27. Q.11Is your banking website is user friendly?<br />As by the majority of the people the banking websites are user friendly only to some extent i.e. 58%.<br />For about 27% of people the banking websites are very much user friendly.<br />And 15% said that it is not at all user friendly.<br />
  28. 28. Q.12 Are you satisfied with the web page provided by your banking website?<br />The fact which came up is that not even one-third people are fully satisfied with the web page provided by their banking website, only 31%.<br />Majority of people i.e.54% are partially satisfied with that.<br />
  29. 29. Interpretation<br />The popular bank-SBI.<br />Users of online banking-60%.<br />Frequency of use by majority people-weekly,43%.<br />Reason for doing online baking-convenience ,46%.<br />Reason for not doing online banking -<br /> no knowledge ,33%.<br />Majority people know partially about online banking 52%.<br />Security is the main aspect while banking online 67%.<br />
  30. 30. Suggestions<br />More innovations should be done to enhance and improve the security .<br />Online banking should provide more of customization.<br />Some measures must be taken to give appropriate knowledge to users and non-users.<br />More value added services and promotional activities should be undertaken to attract users.<br />The web page should be enhanced and more features should be added on it according to the preferences of users.<br />
  31. 31. Conclusion<br />Dramatic changes in the banking sector.<br />Thank than an exception in s to the technology, today banks are able to manage in much better way, thereby gaining greater efficiency in operations.<br />The online banking thus, &quot;now is more of norm rather than an exception <br />Providing internet banking is increasingly becoming a “NEED TO HAVE “than “nice to have”.<br />
  32. 32. THANKYOU<br />

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