The adoption of information and communication technology by the banks has altered how banking is conducted globally. New private sector and international banks started these developments in India so they could reach a larger customer base because they only had a small number of branches. However, the public sector and the older private sector, which up until a few years ago used the traditional banking approach, have also grasped the benefits that can be obtained by integrating technology into their daily operations.

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International Journal of Management (IJM)
Volume 11, Issue 10, October 2020, pp. 2387-2395. Article ID: IJM_11_10_234
Available online at https://iaeme.com/Home/issue/IJM?Volume=11&Issue=10
ISSN Print: 0976-6502 and ISSN Online: 0976-6510
DOI: https://doi.org/10.17605/OSF.IO/ZH7XS
© IAEME Publication Scopus Indexed
MODERN BANKING SERVICES IN RURAL
AREA - AWARENESS AND ADOPTION LEVEL
Dr. V. Dheenadhayalan
Associate Professor, (On Deputation from Annamalai University),
P.G. Department of Commerce, Sri Subramaniyaswamy Govt. Arts College,
Tiruttani, Tamil Nadu, India
A. Yogalakshmi
Ph.D. Research Scholar, Department of Commerce,
Annamalai University, Annamalai Nagar, Tamil Nadu, India
ABSTRACT
The adoption of information and communication technology by the banks has
altered how banking is conducted globally. New private sector and international banks
started these developments in India so they could reach a larger customer base because
they only had a small number of branches. However, the public sector and the older
private sector, which up until a few years ago used the traditional banking approach,
have also grasped the benefits that can be obtained by integrating technology into their
daily operations.
Key words: Nurses, Quality management, Organizations, Hospital environment.
Cite this Article: V. Dheenadhayalan and A. Yogalakshmi, Modern Banking Services
in Rural Area - Awareness and Adoption Level, International Journal of Management
(IJM), 11(10), 2020, pp. 2387-2395.
https://iaeme.com/Home/issue/IJM?Volume=11&Issue=10
1. INTRODUCTION
The banks are the ones with the biggest challenges since they need to move from their outdated
methods of operation to the newest ones, which must be implemented throughout their
extensive branch networks, especially those in rural areas. However, we discovered that banks
of all types—public, private, new-generation private, and cooperative—are all working to
expand their banking networks by utilising information and communication technology and a
variety of electronic tools, such as ATMs, Internet banking, mobile banking, POS terminals,
and green channel banking, among others. Almost all banks are increasing their investments in
human and financial resources in order to expand their offering of banking services. However,
we found that usage of these services and financial channels fell far short of what banks and
policymakers had anticipated. Actually, it is necessary to determine the causes of it and come
up with appropriate answers. As a result, it made an effort to pinpoint the variables that are
crucial for the widespread consumer adoption and use of modern financial services.

2. Modern Banking Services in Rural Area - Awareness and Adoption Level
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2. STATEMENT OF PROBLEM
Nowadays, practically all commercial banks are computerised and provide their clients ICT-
based financial services. Even rural bank branches offer these services to rural residents, and
banks have made financial investments in the necessary IT infrastructure. However, the current
environment makes it evident that many clients are not using these contemporary banking
channels for banking services. They favour using conventional banking methods. Because of
this, the current study is useful in identifying the main factors, significant roadblocks, and issues
with the adoption of modern banking services.
3. OBJECTIVES
• To study about the customer awareness of the modern banking services.
• To study the adoption level of modern banking services.
• To examine the satisfaction level of consumers towards modern banking services.
• To identify the problems relating to adoption of modern banking services.
• To make suggestions to improve modern banking service to rural area.
4. RESEARCH METHODOLOGY
4.1. Research Design
Exploratory research issued in the study. Exploratory research is preliminary study of an
unfamiliar problem about which the researcher has little or no knowledge.
4.2. Data Collection
Primary data source: The primary data was collected from respondents through the use of
structured questionnaire.
Period of Study: November 2019
Secondary data source: Internet, Various sites, Journals
4.3. Sampling Design
Sampling method: Convenience sampling method issued in the study.
Sampling size: Study was conducted with a sample size of 100.
Sampling area: Study was conducted in Cuddalore District.
4.4. Tools Used
Data collection tool: Questionnaire
Analysis tools: Percentage, Weighted Average.
Presentation tools: Graph, Charts, Tables
4.5. Limitations
• Youth people are using these banking services so, aged people has not much aware
about it.
• Sample size limited to100, the result cannot be generalized.
• There may be personal bias of the respondents while answering questionnaire.
5. REVIEW OF LITERATURE
Verma, D. (2000) In his paper titled "Banking on Change," he examines how IT has affected
both new private sector banks and public sector banks in India. He concludes that public sector
banks are at risk from IT.

3. V. Dheenadhayalan and A. Yogalakshmi
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Polatoglu and Ekin (2001) looked into "Internet banking and its effects." The findings of this
study indicate that Internet banking not only lowers operational costs for the bank but also
increases client retention and satisfaction.
Yibin.M. (2003) Investigated the value of e-banking from a societal standpoint. This study set
out to determine the current state, emerging trends, obstacles, and policy concerns in e-banking.
The study's findings demonstrated that e-banking not only makes it easier to obtain capital, but
also makes it possible to do so at better and more affordable rates.
Ho and Mallick (2006) attempted to create and test a model to analyse the influence of IT in
the US banking industry in their work titled "The impact of Information Technology on the
Banking Industry: Theory and Empirics." Testing the study's findings on a panel of 68 US banks
over a 20 year period revealed that the acceptance and diffusion of IT investments had a
detrimental impact on network effects in this sector, which led to a fall in bank profits.
DeYoung et al. (2007) attempted to compare two distinct waves of internet banking adoption
in their study titled "How the internet influences output and performance at community banks"
in order to determine how the internet can alter the performance of banks. The results don't
indicate much of a shift in the loan portfolio. According to research, the first click-and-mortar
banks (and their clients) used the internet channel to supplement physical branches rather than
to replace them.
6. ANALYSIS AND INTERPRETATION
Table 1 Awareness Levels of Customers About Innovative Financial Services
Financial services Number of respondents Percentage
NEFT 2 2%
Debitcard 26 26%
Mobile banking 4 4%
ATM 48 48%
Credit card 10 10%
Online banking 6 6%
Cash deposit 4 4%
Total 100 100%
Source of data: primary data
Chart 1 Awareness Levels of Customers About Innovative Financial Services
INTERPRETATION: According to the graph, 48% of respondents are aware of ATMs, 26%
are aware of debit cards, 10% are aware of credit cards, 6% are aware of online banking, 4%

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are aware of mobile banking, and 4% are aware of cash deposits. Only 2% of respondents are
aware of NEFT.
Table 2 Customers Response Towards Modern Financial Services Helps in Saving Time
Attitude Number of respondents Percentage
Strongly agree 16 16%
Agree 42 42%
Neutral 30 30%
Disagree 8 8%
Strongly disagree 4 4%
Total 100 100%
Source of data: Primary data
Chart 2 Customers Response Towards Modern Financial Services Helps In Saving Time
INTERPRETATION: Out of 100 respondents, 42 percent think that modern financial services
assist save time, and 16 percent strongly agree, according to the table and graph above. 30% of
respondents have a neutral opinion, 8% disagree, and 4% strongly disagree with this assertion.
Table 3 Usage of Banking Services by Respondents
Basis Number of respondents Percentage
Daily 10 10%
Weekly 28 28%
Monthly 56 56%
Yearly 6 6%
Never 0 0%
Total 100 100%
Source data: Primary data

5. V. Dheenadhayalan and A. Yogalakshmi
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Chart 3 Usage of Banking Services by Respondents
INTERPRETATION: According to the diagram, 10% of respondents use banking services
every day, 28% use them once a week, 56% use them once a month, and 6% use them annually.
Table 4 Availability of Various Technology Based Services
Attitude Number of respondents Percentage
Strongly agree 16 16%
Agree 42 42%
Neutral 26 26%
Disagree 12 12%
Strongly disagree 4 4%
Total 100 100%
Source of data: Primary data
Chart 4 Availability of Various Technology Based Services
INTERPRETATION: According to the table and graph, 16 percent of customers highly agree
that the bank offers a variety of technology-based services, 42 percent agree, 26 percent have a
neutral perspective, 12 percent disagree, and just 4 percent have a strongly disagree opinion.
50%
40%
30%
20%
10%
Stronglyagree Agree Neutral Disagree Strongly
disagree

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Table 5 Satisfaction Levels of Customers Towards Technology Provided By Banks
Attitude Number of respondents Percentage
Highly satisfied 28 28%
Satisfied 40 40%
Neutral 24 24%
Dissatisfied 4 4%
Highly dissatisfied 4 4%
Total 100 100%
Source of data: Primary data
Chart 5 Satisfaction Levels of Customers Towards Technology Provided By Banks
INTERPRETATION: According to the accompanying table and figure, 40% of consumers
are satisfied with the technology that banks supply, and 28% are very satisfied. 24 percent of
people are undecided. Four percent of clients are dissatisfied, while the remaining four percent
are very dissatisfied.
Table 6 Difficulties to Adopt Modern Banking Services
Weight e dranking of difficulties to adopt modern banking services
Factors Rank
Lack of knowledge 3
Limited services 2
Problem of security 1
Dependence on internet service 4
Unreliable 5
0.4
0.35
0.3
0.25
0.2
0.15
0.1
0.05
Highly
satisfied
Satisfied Neutral Dissatisfied Highly
dissatisfied

7. V. Dheenadhayalan and A. Yogalakshmi
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Chart 6 Difficulties To Adopt Modern Banking Services
INTERPRETATION: From the above diagram out of 100 respondents, problem of security
is faced by most of customers. Limited services are the secondly faced problem, lack of
knowledge has 3rd
rank and dependence on internet service has the 4th
rank. Unreliability is the
least faced problem.
Table 7 Satisfaction Regarding Various Services Quality Dimension
Factors Weight Rank
Reliability 2.94 5
Responsiveness 3.62 2
Efficiency 3.14 3
Accuracy 2.74 7
Security 2.9 6
Ease and convenient 4.3 1
Customer service 2.96 4
INTERPRETATION: This table illustrates that, from various factors ease and convenient of
services ranks the top with a weight of 4.3, followed by responsiveness as 3.62. Efficiency ranks
with a weight of 3.14, reliability ranks as 2.94, and security as 2.9. And the other factors such
as customer service and accuracy have ranked 2.96 and 2.74 respectively.
7. FINDINGS, SUGGESTIONS AND CONCLUSION
7.1. Findings
• 42% of respondents are agreeing that bank provides various technology based services
to customers.
• All of the respondents are aware about any one of the banking services. Majority i.e.48
% of them are aware about ATM cards.
• 28% of respondents weekly use some of the banking services.
• Ease of use of transaction is the factor which promotes customers to use new services
in banking.
• 40% of customers are satisfied with the technology provided by the banks.
4.5
4
3.5
3
2.5
2
1.5
1
0.5
0 Lack of
knowledge
Limited
services
Problem of
security
Dependence
on inter net
service
Unreliable

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• There are several ways to know about the new policies offered by the bank. But majority
of the customers known it from staff of the bank.
• The problem of security is the most important difficult to adopt modern banking
services.
7.2. Suggestions
• Any organisation must priorities its relationships with its customers. Therefore, the bank
must take the required steps to enhance customer relationships in order to win over loyal
clients so that customer retention rates also rise.
• Customers who don't use online banking believe that managing money on the internet
is risky and unreliable, and consumers who don't use credit or debit cards when buying
believe the same. Therefore, the bank must spread the relevant information on card and
internet security.
• The only service that clients regularly used was the ATM. Information about the
advantages of various contemporary financial services should be provided by the bank.
• A bank's fundamental characteristic is the caliber of its services. Therefore, the bank
should place a high value on the level of services provided to consumers.
• The bank should use a variety of media to properly publicize the new policies it has
implemented.
8. CONCLUSION
The usage of technology in the banking sector, such as ATMs, internet banking, telephone
banking, mobile banking, etc., is causing it to expand quickly. One of the banking products that
serves the demands of the retail sector, whose explosive expansion can be seen in the geometric
evolution of recent years, are plastic cards. The way that bank customers are treated has changed
dramatically as a result of information technology. In order to offer customers the comfort of
transacting from any location at any time by using appropriate delivery channels, banks must
continuously explore for novel offerings.
The frontier of information technology enhances the client base and provides value to the
services, laying a solid foundation for the superstructure. One of the biggest problems that banks
confront is managing their customers. Indian bankers struggle greatly since they must develop
fresh, consumer-focused goods and services. In order to minimise the overall cost of
transactions, which is beneficial for the customers, they must adopt more modern technologies
in a variety of areas.
As a result, this study reveals the extent to which customers are aware of modern banking
services and their demand for a variety of additional financial services in addition to those
already provided. When new services are added based on what customers want and with the
right education, transaction costs will go down and time will be saved.
REFERENCES
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and Challenges, Emperor International journal of Finance and Management Research, Vol.
II, Issue 4, April 2016, Pp.48-56.

9. V. Dheenadhayalan and A. Yogalakshmi
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