SOCIO ECONOMIC CONDITIONS AND LEVEL OF AWARENESS ABOUT USING INTERNET BANKING SERVICES. for men, Chennai ABSTRACT

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1 SOCIO ECONOMIC CONDITIONS AND LEVEL OF AWARENESS ABOUT USING INTERNET BANKING SERVICES 1 G.Santhamoorthy, Research Scholar, Manonmaniam Sundaranar University,Tirunelveli 2 Dr.J.Haripriya, Associate Professor, Department of Commerce, Kandaswamy Naidu College for men, Chennai ABSTRACT One of the most important developments in financial sector has been the growth of the banking industry over the past two decades.the benefits of financial industry can be seen in the form of large scale industrial development, increased employment opportunities, higher turnover as well as revenue generation to the government and also increase in export of goods and services. Investments play a vital role on the part of the customers. Objectives of this study, To examine socio economic conditions of the respondents in the study area. To identify customer ness on internet banking services in the study area and To identify customer ness on internet banking services in the study area. Methodology of this study, Descriptive research design was chosen to find out various services provided by public sector and private sector banks. Public sector banks 10 branches functioning in Chennai district of Tamilnadu from the population from which the sample has been drawn for the study. Suggested this study, The bank ought to handle suggestion box for obtaining the valuable suggestions from the customers to enhance their services more effectively, which will enable the bank to compete in this highly competitive environment. Conclude this study, Banks have to be more concerned about how to harness the benefits of internet bank and deliver exceptional services with personalized touch. INTRODUCTION One of the most important developments in financial sector has been the growth of the banking industry over the past two decades.the benefits of financial industry can be seen in the form of large scale industrial development, increased employment opportunities, higher turnover as well as revenue generation to the government and also increase in export of goods and services. Investments play a vital role on the part of the customers. A real investor does not simply throw his or her money on random investment. He or she performs analysis and commits capital only when there is a reasonable expectation of profit. Hence they both are Interdependent. i.e., it all depends up on the customer banking relationship. Bankers should know what customers expect. Banks are offering more customized solutions to their clients. The need of the hour is not only to introduce more value added products for which the customers are willing Page 135

2 to pay, but also to innovate and enter new segments like small business and periodical finance. Everything revolves around the customers and banks via their innovative and quality products to suit their clients. Today the bottom line for any customer is convenient understanding and so there is no doubt. Thus evaluating the customer s perception on the service and products of a bank have become a need which propel the bank to structure itself for better performance and service. The banking industry is a systemically important industry for the Indian economy in general and financial sector in particular as it comprises nearly 90 of the total financial services sector of the country. The banking industry in India has undergone significant transformation since the initiation of the financial sector reforms that were part of the structural reforms of early 1990s. The banking sector has steadily evolved from a state-directed banking system into a fairly open competitive banking system. STATEMENT OF THE PROBLEM Each bank starts with certain aims and objectives. The primary aim of bank is to promote the financial and social welfare of customers. Hence the present study is an attempt to analyze the customer services towards public and private sector banks in Chennai district. The concept of banking sector has undergone significant changes in terms of products and services. Banks found themselves in a market where the buyer [customer] has more options than even before and the seller [bank] has therefore been compelled to constantly review its package of product and services to suit the expectation of customers.economic liberalization, globalization, information technology revolution, changing customer requirements and increasing competition have posed a lot of challenges to the existing banking sector in India. As a consequence, banks have undergone increasing pressure to offer today what customers would expect tomorrow. The banks now compete with one another to offer internet banking services to customers to widen their client bases. OBJECTIVES 1. To examine socio economic conditions of the respondents in the study area. 2. To identify customer ness on internet banking services in the study area and 3. To offer suitable suggestions to enhance customer satisfaction. RESEARCH METHODOLOGY Research Design is the arrangement of activities for the collection and analysis of the data in a manner that aims to combine relevance to the purpose with economy in procedure. Descriptive research design was chosen to find out various services provided by public sector and private sector banks. Public sector banks and private sector bank branches functioning in Chennai district of Tamilnadu form the population from which the sample has been drawn for the study. Rationale for choosing Erode district and methodology adopted in selecting the sample branches are explained in detail in the following paragraphs. Public sector banks are found in large number in Chennai district They occupy the largest share in Chennai district in terms of deposit mobilization and loan disbursement.10 Branches of public sector banks are found in every nook and corner of the district catering to the needs of the people. The required primary data was collected through personal interview method, carried out for a period of seven months from June 2013 to December To analyze the collected primary data, various statistical tools and techniques were used. It refers to a special kind of ratio percentage, which is used in Page 136

3 making comparison between two or more services of data. It is a non-parametric test. It can be used to determine if categorized data show dependency or not. LIMITATIONS OF THE STUDY Limitations are common for all studies based on social survey. The conclusions arrived at this study are not without limitations. Even though the study is innovative and extensive in some aspects of service in Indian banking industry. The time spent for canvassing the customers to collect data was considerable. There may be certain reluctance on the part of customer to respond the some questions in the questionnaire. However adequate care was taken to collect unbiased data. The cost factor is the other limitation. The customers of selected banks were the only focus of the study. Other banks were excluded. The study is restricted to Chennai district only and the findings are applicable to the study area only. ASSOCIATION BETWEEN GENDER AND LEVEL OF AWARENESS ABOUT USING INTERNET BANKING SERVICES S.NO. GENDE R FRE Q / GENDER AND LEVEL OF AWARENESS ABOUT USING INTERNET BANKING SERVICES Not at Slightl all y Somewh Moderatel Extremel at y y TOTAL 1 Male Freq Female Freq Total Freq The above table highlights that the percentage of extremely about internet banking services by the public sector banks respondents has been highest (31.9 per cent) among female respondents and the same has been lowest (17.5 per cent) among the male respondents. The percentage of somewhat about internet banking services by the respondents has been highest (15.9 per cent) among male respondents and the same has been lowest (3.0 per cent) among the female respondents. On the other hand, the percentage of not at all about internet banking services by the respondents has been highest (27.4 per cent) among the female respondents and same has been considerably lowest (15.9 per cent) among the male respondents. In order to find out the relationship between gender and the level of ness about internet banking services, a Chi Square test have implied to test the hypothesis given below CHI- SQUARE TEST - GENDER AND LEVEL OF AWARENESS ABOUT USING INTERNET BANKING SERVICES Gender and Level of Awareness about using Internet Banking Services Calculated value Df p-value S/NS Remarks ** S Rejected **P<0.05 S- Significant Page 137

4 It has been divulged from the chi-square table that the p-value (.000) has been less than 0.05 and the result have significant at 5 level. Hence, the null hypothesis (Ho) has rejected and the alternative hypothesis (H 1 ) has accepted. From the analysis it have been concluded that there is relationship between gender and the level of ness about internet banking services. ASSOCIATION BETWEEN AGE AND GENDER AND LEVEL OF AWARENESS ABOUT USING INTERNET BANKING SERVICES S.NO. AGE Below 25 yrs yrs yrs yrs Above 55 yrs Total FREQ / AGE AND LEVEL OF AWARENESS ABOUT USING INTERNET BANKING SERVICES Not at all Slightly Somewhat Moderately Extremely TOTAL Freq Freq Freq Freq Freq Freq The above table says that the percentage of extremely about internet banking services by the public sector banks respondents has been highest (41.0 per cent) among the age group of below 25 years and the same has been lowest (10.3 per cent) among the age group of below years respondents. The percentage of somewhat about internet banking services by the respondents has been highest (20.7 per cent) among the age group of above 55 years respondents and same has been lowest (6.4 per cent) among the age group of below 25 years respondents. On the other hand, the percentage of not at all about internet banking services by the respondents has been highest (23.3 per cent) among the age group of years respondents and same has been considerably lowest (9.0 per cent) among the age group of below 25 years respondents. In order to find out the relationship between age and the level of ness about internet banking services, a Chi-Square test have implied to test the hypothesis given below: CHI- SQUARE TEST - AGE AND LEVEL OF AWARENESS ABOUT USING INTERNET BANKING SERVICES Age and Level of Calculated Df p-value S/NS Remarks Awareness about using value Internet Banking Services ** S Rejected **P<0.05 NS-Not Significant It has been divulged from the chi-square table that the p-value (.000) has been less than 0.05 and the result have significant at 5 level. Hence, the null hypothesis (Ho) has rejected and Page 138

5 the alternative hypothesis (H 1 ) has accepted. From the analysis it have been concluded that there is relationship between age and the level of ness about internet banking services. ASSOCIATION BETWEEN EDUCATIONAL STATUS AND LEVEL OF AWARENESS ABOUT USING INTERNET BANKING SERVICES S.NO. 1 2 Educationa l Status Primary Level Higher Secondary 3 Graduate 4 5 Post Graduate Profession al Total FRE Q / EDUCATIONAL STATUS AND LEVEL OF AWARENESS ABOUT USING INTERNET BANKING SERVICES Not at all Slightl Somew hat Moderately Extrem ely TOTAL Freq Freq Freq Freq Freq Freq The above table implies that the percentage of extremely about internet banking services by the public sector banks respondents has been highest (41.7 per cent) among the respondents who are professional and the same has been lowest (18.5 per cent) among the respondents who are educated up to higher secondary. The percentage of somewhat about internet banking services by the respondents has been highest (14.5 per cent) among the respondents who are educated up to primary level and the same has been lowest (8.3 per cent) among the respondents who are professional. It is also seen that the percentage of not at all about internet banking services by the respondents has been highest (32.0 per cent) among the respondents who are educated up to primary level and the same has been considerably lowest (13.8 per cent) among the respondents who are educated up to graduate. In order to find out the relationship between educational qualification and the level of ness about the internet banking services, a Chi Square test has been implied to test the hypothesis given below CHI-SQUARE TEST - EDUCATIONAL STATUS AND LEVEL OF AWARENESS ABOUT USING INTERNET BANKING SERVICES Educational Status and Level of Awareness about using Internet Banking Services Calculated value Df p-value S/NS Remarks ** S Rejected **P<0.05 S- Significant It has been clear from the chi-square table that the p-value (.000) has been less than 0.05 and the result has significant at 5 level. Hence, the null hypothesis (Ho) has rejected and the Page 139

6 alternative hypothesis (H 1 ) has accepted. From the analysis it have been concluded that there is relationship between educational status and the level of ness about internet banking services. ASSOCIATION BETWEEN OCCUPATIONAL STATUS AND LEVEL OF AWARENESS ABOUT USING INTERNET BANKING SERVICES S.NO. 1 2 Occupation al Status Governmen t Employee Private Employee 3 Business 4 Professional s 5 Others Total FRE Q OCCUPATIONAL STATUS AND LEVEL OF AWARENESS ABOUT USING INTERNET BANKING SERVICES Not at all awar e Slightl y Somewha t Moderatel y Extremel y TOTA L Freq Freq Freq Freq Freq Freq The above table says that the percentage of Extremely about internet banking services by the public sector banks respondents has been highest (50.6 per cent) among the respondents whose occupational status are others and the same has been lowest (8.8 per cent) among the respondents who are doing business. The percentage of somewhat about internet banking services by the respondents has been highest (44.7 per cent) among the respondents who are government employee and the same has been lowest (6.5 per cent) among the respondents whose occupational status has been professionals. It is also seen that the percentage of not at all about internet banking services by the respondents has been highest (29.0 per cent) among the respondents whose occupational status has been professional and the same has been considerably lowest (4.7 per cent) among the respondents whose occupational status has been others. In order to find out the relationship between occupation status and the level of ness about internet banking services, a Chi Square test has been implied to test the hypothesis given below: Page 140

7 CHI-SQUARE TEST - OCCUPATIONAL STATUS AND LEVEL OF AWARENESS ABOUT USING INTERNET BANKING SERVICES Occupational Status and Level of Awareness about using Internet Banking Services Calculated value Df p-value S/NS Remarks S Rejected **P<0.05 S- Significant It has been evident from the chi-square table that the p-value (.000) has been less than 0.05 and the result has significant at 5 level. Hence, the null hypothesis (Ho) has rejected and the alternative hypothesis (H 1 ) has accepted. From the analysis it have been concluded that there is relationship between occupational status and the level of ness about internet banking services. SUGGESTIONS 1. This study shows that majority of respondents have not at all used internet bank authority should create ness among the public. 2. Even though Information Technology has developed to a larger extent in our country, there are frequently problem arises such as network connection and delay in banking services. The banking authority should avoid this delayed process. 3. Information technology main duty is to enhance the banking facilities with less service charges (withdrawn, deposit, loan, money transfer, demand draft etc.) 4. In this study majority of the salaried class people only enjoy. So services should be extended to students, retail business, corporate business and private practice etc. 5. This study shows that there is a significant difference among the age groups in the average technology influence scores. The banking authority should create all facilities for all age groups. 6. Internet bank should provide collection procedures that are to be adopted in order to decrease the loan outstanding. 7. Internet bank should take special attention for the delay occurring without any reasons. 8. Internet bank should give attractive packages and perks to improve the working climate of their employees. 9. The bank ought to handle suggestion box for obtaining the valuable suggestions from the customers to enhance their services more effectively, which will enable the bank to compete in this highly competitive environment. CONCLUSION Internet bank has been very influential in up bringing of banking services especially improving service speed, accessibility and accuracy. However, some customers have not seemed to accept certain banking channels like Internet banking, Phone banking and Mobile commerce. Banks have to be more concerned about how to harness the benefits of internet bank and deliver exceptional services with personalized touch. Page 141

8 REFERENCES 1.Innovations in Banking, Oxford and IBH Publishing Company, Bombay, Agarwall, B.P., Commercial Banking in India after Nationalization, Classical Publishing Company, New Delhi, Agarwall, H.N., A Portrait of Nationalized Banks, Inter-India Publications, New Delhi, Agarwall, H.N., Management of Nationalized Commercial Banks in India with Reference to their Social Obligation, Inter-India, Publications, 1979, New Delhi. 5.Akhavein, J., Frame, W.S. and White, L.J. (2001), The diffusion of financial innovation: an examination of the adoption of small business credit scoring by large banking organizations, Working Paper , Federal Reserve Bank of Atlanta, Atlanta. Page 142