This document summarizes a study on customer perception of internet banking in Kadi, India. The study collected data through questionnaires from 150 respondents, including both internet banking users and non-users. Key findings include: (1) 43% of respondents use internet banking, while 57% do not; (2) the most preferred method for transactions is cash, followed by checks and debit/credit cards, with internet banking least preferred; (3) convenience is the most important reason for opening an internet banking account. The study uses statistical analysis like chi-square to understand the relationship between internet banking usage and demographic factors.

1. A Study On Customer Perception Towards Internet Banking In Kadi Area
Bhavik Parmar (B-22) and Anand Pillai (B-33)
Student at S.V. Institute of Management, Kadi
ABSTRACT
Internet banking means, there is no involvement of physical money but these all are done by electronic
equipment through. Internet banking becoming much popular day by day. The simple reason behind this the
increasing the usages of internet, smartphones and computer devices that’s why internet banking concept
growing. Because of convenience factor offered by internet banking, which makes attraction to the people to
use internet banking. Behind developing this research paper, the main purpose is to know the perception of
people regarding internet banking in Kadi area. To get accurate result we divided our questionnaire into two
different parts, first internet users and second non-internet users. For non-internet banking users, we made
separate questions to know perception of non-users of internet banking. What people thinks about internet
banking, which factors affects more while using internet banking, for this analysis we have prepared this
research paper.
INTRODUCTION
Now-a-days internet banking becoming popular just because of prime minister of India recently introduced
digital India concept and also demonetization step taken by our prime minister which leads to increase in
internet transaction. In the demonetization period there is no alternative source for large payment except
internet banking. So, from this step lot of people become aware about internet banking. And also increased
the ratio of internet banking doubled than previously people are using.
There are plenty advantages of internet banking. like, there is no place boundary you can make transaction
from any corner of world. You can make transaction any time without restriction of time. There is no physical
existing of paper which saves trees.
Beside this advantages there is also has disadvantages of internet banking. like, one there is always has threats
of hacking and stealing account, password and personal information whenever person makes online
transaction. Second, while making online transaction person must require internet connection whenever they
want to use internet banking, because of this lot of people afraid to make online transaction.
Maximum of the person who are going on for internet banking lies in the age bracket of 26-35. But the rises
in the age the level of users become low. Approximately 17% of female use internet banking. This is a matter
of concern for banks what are the causes why this is happening.
There are various factors affects while using internet banking. Which might be age, gender, banks terms and
conditions, occupation, income and education factors also responsible for making internet transaction. Apart

2. from this factors and there are also different factors which influence people to use internet banking or not. To
identifying such factors, we have prepared this research paper.
Now a day there are various banks provides internet banking service to his customer. From this service people
might be happy or unhappy with provided internet banking service. For that people must have some perception
regarding internet banking.
OBJECTIVES OF THE STUDY
 To know the perception of internet banking in Kadi area.
 To why people are not using internet banking.
LITERATURE REVIEW
( Goyal & Goyal , 2012), has done their research on “Customer perception towards Internet banking w.r.f to
private and foreign banks in India” and they stated on their research an analysis of the differences in risk
perceptions between bank customers using Internet Banking and those not using Internet Banking was done
and it showed that risk perceptions in terms of financial, psychological and safety risks among customer not
using the internet was more meaningful than those using internet banking. Customers not preferring to use
internet banking thought that they would be swindled when using this service, and therefore, are particularly
careful about high risk expectation during money transfers from and between accounts. Private and foreign
banks are trying to turn more and more customer towards the usage of internet for the banking transaction.
This study is basically to know the relation of various independent variables on the customer usage of internet
for banking.
(Ramanigopal, Palaniappan, Hemalatha , & Mani, 2011), on their research they mentioned the marketing
mantra “Customer is a King” is no more on paper, and how it has become a reality. Increased level of
awareness among the customers leads to increased preferences. Today’s customers are not satisfied with care
and courtesy alone, they expect concern and commitment. Therefore, customer centric approach is the need
of the hour. In this competition environment not the oldest, not the strongest and not the first can survive, but
only the “Best” can survive. Therefore, usage of modern technology for better service is imperative.
Educational level of respondents influences the use of internet banking facility and highly satisfied with
secrecy maintenance, transaction updating, account transfer and security followed by easy access while using
the internet banking services. The success of Internet banking not only depends on the technology but also
on, to the large extent the attitude, commitment and involvement of the operating at all levels and how far the
customers reap the benefits from Internet banking services.
(Singhal & Padhmanabhan, 2008), on their research paper they stated about explores the major factors
responsible for internet banking based on respondents’ perception on various internet applications. It also
provides a framework of the factors which are taken to assess the internet banking perception.

3. (Reddy & Reddy, 2015), The researcher has identified about consumer perception toward the convenience
and willingness to use E-banking services are identified and measured. Customer satisfaction level towards
the E- Banking has been identified.
(Srivastava , 2007), they studied about education, gender, income play an important role in usage of internet
banking. Not much research has been done on these areas as they were focused more on the acceptance of
technology rather than on people. The research corroborated the conceptual framework stating that if skills
can be upgraded there will be greater will to use internet banking by consumers. Inhibitory factors like trust,
gender, education, culture, religion, security, price can have minimal effect on consumer mindset towards
internet banking.
(Ramadhan & Musiime, 2011), The researcher has done research on, “Internet banking, consumer
adoption and customer satisfaction” and this study was conducted to determine the factors that influence
consumer adoption of Internet banking service as well as examine the relationship between Internet banking
service, customer adoption and customer satisfaction. The study recommended that more emphasis and efforts
be laid on targeting individual clients. In addition, Internet banking service providers ought to look out for
indicators of innovative ways of creating awareness about the service through participation in trade
organizations, exhibitions as well as adoption of new technologies of Internet banking.
RESEARCH METHODOLOGY
Research Type
We have used descriptive research and exploratory research design in our study. Descriptive research is also
known as Statistical Research. The main objective of this type of research is to describe the data and
characteristics about what is being studied. The idea behind this type of research is to study frequencies,
averages, and other calculations. It does not gather the causes behind a situation. Descriptive research is used
to obtain information concerning the current stitution of the market to describe "what exists".
Sampling Techniques
In our research we have used non probability conveniece sampling. We have choosed sample as per our
conveniece for this research. We have taken responses from our friends, relatives, shops and workers and
professions and self employeed these are the examples of non probability sampling.
Sample Size: 150 respondent
Data Collection:
Primary data: Structured Questionnaire
Secondary date: Online database and Journals

4. Target Population: In our research target population is users and none users of internet banking.
Statistical Test: Chi-square,
Tools: SPSS and Excel
Limitation of the study:
 Our study is only limited to Kadi area.
 This study is done on the basis of data provided by the respondent.
 There might not be perfect response from respondent.
RESULTS AND DISCUSSION
To understand the perception of the respondent regrading internet banking, the collected data from the
customers were classified and analyzed in systematically manner and the various factors influencing the
internet banking and problems have been analyzed via the following tables.
TABLE 1: Demographic profile of respondent
Serial No. Demographics Frequency %
1 Gender
Male 104 69
Female 46 31
Total 150 100
2 Age
Below 18 years 7 5
19-25 39 26
26-30 36 24
31-35 36 24
36-40 23 15
More than 40 9 6
Total 150 100
3 Occupation
Service 31 21
Business 36 24
Student 35 23
Profession 35 23
Self Employed 13 9
Total 150 100
4 Education
Below SSC 4 3
SSC 8 5
HSC 17 11
Graduate 53 35
Post Graduate 68 45
Total 150 100
In our research we took 150 respondents out of them 69% are male and rest is female. The age of most of the
respondent is 19-25 about 26%, More than 40 year’s respondent is 6% and less than 18 year’s respondent is
5%. The occupation of the respondent is mostly Businessman, student, service sector and profession. The most
education degree of the respondent is Post graduation and respectively graduates and least is below SSC, till
SSC and HSC.

5. TABLE 2: Users and Non users of internet banking
Particulars Frequency %
Internet Banking Users 65 43
Internet Banking Non Users 85 57
Total 150 100
According to our research the 43% customers are internet banking users and 57% customers are non-internet
banking users. This data reveals that the most of people still not adopt internet banking in Kadi area.
TABLE 3: Most preferred way to make commercial transaction
Particulars Rank
Cash 1
Cheque 2
Internet banking 4
Debit/Credit cards 3
The main reason behind asking this question is to know what customers first preferred for making commercial
transaction. In our research the most of people preferred cash for making commercial transaction. And 2nd
rank got cheque and 3rd
got debit/Credit cards for making commercial transaction. And the least preferred
option for making commercial transaction is Internet Banking.
TABLE 4: Main reason behind typically visiting bank branch
Particular Answer %
For deposit 72 48
For inquiry of balance 22 15
For withdrawal of cash 54 36
Others 2 1
Total 150 100
Out of 150 respondents 72 respondent saying that they mostly went bank for depositing and 54 respondent
saying that they mostly went bank for withdrawal of cash. Only 22 respondent agree that they go bank for
inquiry of balance. Others reason like for taking loan, to get information regarding interest they went into
bank.
TABLE 5: E-banking facilities provided by bank
Particular Provider Non Provider Total
ATM 140 10 150
Online banking 136 14 150
Mobile banking 114 36 150
SMS banking 125 25 150
Total 515 85 600

6. This table shows that ATM service almost all the banks provides to his customers. And Online banking,
Mobile banking and SMS banking also provides most of the banks. Some people saying that mobile banking
service does not provide by their bank.
TABLE 6: E-banking facilities used by customers
Particular Users Non Users Total
ATM 136 14 150
Online Banking 78 72 150
Mobile Banking 52 98 150
SMS Banking 88 62 150
Total 354 246 600
According to our research most of people using ATM services which provided by bank. Half of people still
not using SMS Banking. Only 52 people using mobile banking and 78 people using online banking. 72 and
98 respondents do not use internet banking and Mobile banking respectively.
TABLE 7: The most important reason behind opening Internet bank account
Particulars Mean Standard Deviation
Convenience 1.28 .548
Curiosity 2.25 1.024
Safe and secure 1.86 .957
Low service charge 1.92 .803
Easy to maintain 1.70 .903
Online shopping 1.95 1.147
The above question asked to know why people opened Internet bank account at bank. The convenience factors
mean score is 1.28 which shows that most of people considered convenience while opening internet bank
account. Curiosity does not play important role while opening account because mean score is 2.25 which
nearest to “Neutral”. Safe and secures mean value is 1.86 which shows that its important factors. Low service
charge, easy to maintain and online shopping factors plays important role while opening internet account.
TABLE 8: What banking service used by customer
Particular Users Non
Users
Total
On-line bill payments 51 13 150
Inter-account transfers 35 29 150
Check balances on-line 50 14 150
Download personal bank transaction activity. 33 31 150
Calculate loan payment information 22 42 150
Others 4 60 150
Total 195 189 900

7. After opening internet bank account, the main services mostly used by customer is ‘Online bill payments’ and
they check balance online. That means those people who opens their internet bank account the main purpose
is for online payment, shopping, recharge and to get others benefits of internet banking. Third main service
used by customer is Inter account transfers and fourth is download personal bank account activity. The least
service used by is calculate loan payment information. And others referred as to make e-recharges.
TABLE 9: Reason behind not opening internet bank account
Particular Yes No Total
Never heard of Internet banking 21 65 150
Concerned about security 43 43 150
Do not have enough time to open an account 16 70 150
Too new. I would like to see how it works, then I
may open an account 42 44 150
Not available through my bank 8 78 150
Others 3 83 150
Total 133 383 900
Non-banking users says that they are not using internet banking because they are concerned with security
that’s why they are afraid to open internet account. Second most important reason is that they are new, they
want to learn how internet banking works, then they might use internet banking facilities. Only 21 respondent
says that they never heard about internet banking this may be because of lack of promotions done by bank.
TABLE 10: For choice of internet banking which factor is important
Particulars Mean Standard
Deviation
Low service charge 1.65 .794
Bank familiarity 2.05 .766
Bank location 2.05 .932
Security of transaction 1.55 .849
Convenience 1.77 .746
Quick service 1.58 .913
The non-banking customer, for choice of internet banking the first factor they considered is security of
transaction and the mean value is 1.55 which is very important for customer. Second is quick service the mean
value is 1.58 which means it is also important for customer of internet banking. Third low service charge mean
score is 1.65 that means its important factor the customer considered while opening new internet account.
Then convenience factor is also important. Bank familiarity and bank location plays important role while
opening new internet account.

8. TABLE 11: Descriptive statistics analysis
Particular Mean Std.
Deviation
Skewness Kurtosis
Statistic Statistic Statistic Std.
Error
Statistic Std.
Error
Gender 1.31 .463 .847 .198 -1.300 .394
Age 3.37 1.308 .226 .198 -.781 .394
Occupation 2.75 1.264 .112 .198 -1.086 .394
Education 4.15 1.002 -1.288 .198 1.330 .394
In our research the standard deviation is not equal to 1, Skewness is less than 3, Kurtosis is not equal to 0, that
means x̅ ≠ M ≠ Z; the data is not normally distributed and further test can be applied.
TABLE 12: Chi-square analysis with demographic variable
Hypothesis Significance
Value
Result
H0: Users of internet and genders of the respondent are independent each other
H1: Users of internet and genders of the respondent are dependent each other
.739 Accepted
H0: Users of internet and age of the respondent are independent each other
H1: Users of internet and age of the respondent are dependent each other
.997 Accepted
H0: Users of internet and occupation of the respondent are independent each other
H1: Users of internet and occupation of the respondent are dependent each other
.036 Rejected
H0: Users of internet and education of the respondent are independent each other
H1: Users of internet and education of the respondent are dependent each other
.061 Accepted
H0: Users of internet and genders of the respondent are independent each other
Here, Significance value is greater than 0.05, So, null hypothesis is accepted. It means there is no significance
difference between Users of internet and genders.
H0: Users of internet and age of the respondent are independent each other
Here, Significance value is greater than 0.05, So, null hypothesis is accepted. It means there is no significance
difference between Users of internet and age.
H0: Users of internet and occupation of the respondent are independent each other
Here, Significance value is less than 0.05, So, null hypothesis is rejected. Hence there is significance difference
regarding users of internet and age.
H0: Users of internet and education of the respondent are independent each other
Here, Significance value is more than 0.05, So, null hypothesis is accepted. So we can conclude that there is
significance difference regarding users of internet and education.

9. CONCLUSION
Despite having lot of advantages of internet banking more than half of people still not using internet banking
and they are only rely on cash transactions, the main reason behind that they only concerned with security
about transaction. In this digital era, still people used to go bank for deposit and for withdrawal of cash. Those
who are the users of internet banking they also want safe and secure transaction with low service charges.
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