CUSTOMER PERCEPTION OF E-BANKING SERVICES BY THE SCHEDULED COMMERCIAL BANKS IN COIMBATORE CITY

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1 CUSTOMER PERCEPTION OF E-BANKING SERVICES BY THE SCHEDULED COMMERCIAL BANKS IN COIMBATORE CITY ABSTRACT 1 Ms. K. Sumathi 2 Dr.G.Ravindran One sector that has undergone fundamental changes as a consequence of the application of Information Technology (IT) is banking. The new technology has radically altered the traditional ways of doing banking business. Today, no banking business or corporate strategy is complete without information technology, be it customer service, transactions, remittances, audit, marketing, pricing or any other activity in the banks. Information Technology plays an important role not only to complete the activity with high efficiency but also has the potential to innovate and meet the future requirements. Information Technology has therefore introduced new business paradigms and is increasingly playing a significant role in improving the services in banking industry. With the adaption of modern tools in day-to-day life the people are coming into realizing the inherence of E-banking to avoid time and energy being encroached by useless presence in banks to do transactions. Thus, this study will be presenting you the perception of consumers over E-banking services offered by scheduled commercial banks in the Coimbatore city. Keywords: Banking, Information Technology, Customer Services, E-banking. INTRODUCTION Information Technology came into picture as early as in the 1980 s in banking industry through the Rangarajan Committee recommendations and banks have given utmost importance to the technology since the last 25 years. The Reserve Bank of India is constantly pursuing the banks from 1980 s to introduce computerization at branch level and to improve the quality of customer service through technology. Status quo, banking institutions cannot think of introducing a financial product without information technology support, be it customer service, transactions, remittances, audit, marketing, pricing or any other activity in the banks. With the expansion of internet usage, E-banking has become one of the most revolutionized components of today s economic growth. E Banking is powerful value added tool to attract new customers and retain the existing ones. With the proliferation of internet and computer usage, the electronic delivery of E-banking service has become ideal for banks to meet customer expectations. Besides it helps in eliminating costly paper handling and teller interaction in the increasingly competitive banking environment. The potential competitive advantage of E-banking lies in the areas of cost reduction and satisfaction of consumer needs. PROBLEM TO BE FOCUSSED Over the last decade India has been one of the fastest adopters of information technology, particularly because of its capability to provide software solutions to organizations around the world. This capability has provided a tremendous impetus to the domestic banking industry in India to deploy the latest technology, particularly in the Internet banking and e-commerce arenas. Indian banking has come a long way from being a sleepy business institution to a highly proactive and dynamic entity. This transformation has been largely brought about by large scale liberalization and economic reforms that have allowed banks to explore new business opportunities rather than generating revenues from conventional streams such as borrowing and lending. Economic reforms and the entry of private players have seen nationalized banks revamp their services and product portfolios to incorporate new, innovative customer-centric schemes. The revolution of information technology has influenced almost every facet of life, among them is the banking sector. The banking scenario in India in the post liberalization and deregulated environment has witnessed sweeping changes. The tremendous advances in technology and the aggressive infusion of information technology had brought in a paradigm shift in banking operations. For the banks, technology has emerged as a strategic resource for achieving higher efficiency, control of operations, productivity and profitability. For customers, it is the realization of their Anywhere, Anytime, Anyway banking dream. This has 1 Ph.d Research Scholar- PT,Chikkanna Government Arts College, Tiruppur,Taimilnadu, India sumathikathirvel2003@gmail.com 2 Assistant Professor, Department of Commerce, Chikkanna Government Arts College, Tiruppur, Tamilnadu, India 53

2 prompted the banks to e E-bankingrace technology to meet the increasing customer expectation. With the above settings, the present study will be made to identify the solution for the following research questions; 1. What would be the customers perception towards various E-banking services provided by public and private sector commercial banks in Coimbatore city? OBJECTIVES OF THE STUDY 1. To ascertain the customers perception towards various E-banking services provided by public and private sector commercial banks in Coimbatore city. HYPOTHESIS FOR THE STUDY H 01 : The perception on E-banking services has no significant relationship with the demographic classification of respondents. SCOPE OF THE STUDY The study covers the respondents as the customers of private and public sector commercial banks from the Coimbatore city. The sample was selected from this place and was restricted to 50 respondents. The data has been collected through the structured questionnaires from the respondents. The study covers the examinations on perception among the customers availing E-banking services from their respective banks. The study would be helpful to academicians, researchers and industrialists in providing the information as they require. METHODOLOGY The research is investigative and qualitative in nature and the methodology adopted for the study is presented below: Source of data The research work is mainly based on primary data collected from the sample respondents through a structured questionnaire. Other information relevant for the study s analysis and others was collected from secondary sources such as journals, magazines, published and unpublished research works and websites. Sample design The population targeted for this study consisted of 50 samples from the city of Coimbatore who are making use of E-banking services from the 22 public and 13 private commercial banks. The sampling technique adopted for the study was convenient sampling where the sample respondents were selected on the basis of the accessibility. Statistical tools for analysis Simple Percentage Mean Score Chi-square test LIMITATIONS OF THE STUDY 1. This research was location specific and was confined to the city of Coimbatore in the state of Tamil Nadu in India. Hence the results of this research may not be applicable to other parts of globe. 2. The study adopted convenient sampling which was one of the methods of non-probability sampling and hence the limitations of this technique are applicable. 3. The study has all the limitations of a qualitative research namely subjectivity and personal bias. 54

3 ANALYSES AND DISCUSSION TABLE-1 DEMOGRAPHIC PROFILE OF RESPONDENTS S. NO. CUSTOMERS PARTICULARS NO. OF PERCENTAGE RESPONDENTS (%) Male Gender Female Transgender years Age 3 Education 4 Marital status 5 Occupation 6 Monthly Income Between 30 and 45 years Between 45 and 60 years Above 60 years School level Diploma Graduation Professional Married Unmarried Divorced/others Public Private Self employed/business Others Upto Rs to to More than Source: Primary data The above table shows that when it comes to gender and age, it is found that 48 % are male and 44 % belong to the age group of 30 to 45 years. Most of the respondents are graduate constituting 50 % and unmarried who are being 62 % and most respondents of about 58 % are private employees. Finally when it comes to monthly income most respondents fell under the category of having the income between Rs to PERCEPTION ON E-BANKING SERVICES TABLE 2: PERCEPTION OF E-BANKING SERVICES OFFERED BY COMMERCIAL BANKS IN COIMBATORE CITY Statements Weights Mean Scores Rank I Prefer E-banking over visiting bank E-banking is a convenience service E-banking very useful E-banking enable conducting banking Transactions quickly E-banking it is more effective way For transactions

4 E-banking would give me greater control E-banking is clear and understandable It is or would be easy for me to be proficient with E-banking It would be easy to do what I want to do with E-banking E-banking providers are honest E-banking providers are trustworthy I trust E-banking providers because they keep my best interests in mind I like the flexibility it offers me to do my banking transaction Source: Calculated using Primary Data The above table represents the perception of customers over e-banking services in commercial banks at Coimbatore city of Tamilnadu. Based on the means scores the statements of perceptions are ranked which can be inferred from the table. PERCEPTION AND THE DEMOGRAPHIC CLASSIFICATION Chi square test was applied to study the relationship between the perception and the demographic classification of respondents. The results are presented in table. Hypothesis H 01 : The perception on E-banking services has no significant relationship with the demographic classification of respondents. TABLE 3: LEVEL OF PERCEPTION AND THE DEMOGRAPHIC CLASSIFICATION S. No Dependent Variable Independent Variable x 2 Sig. value Hypothesis 1 E-banking Services Gender Accepted 2 E-banking Services Age * Rejected 3 E-banking Services Education ** Rejected 4 E-banking Services Marital status * Rejected 5 E-banking Services Occupation ** Rejected 6 E-banking Services Monthly Income ** Rejected Source: Primary data * significant at 5%. ** significant at 1% The above table depicts the chi-square analysis between level of perception on E-banking services and demographic classification of respondents. It is clear from the table that the hypothesis is accepted for gender alone and rejected for the demographics namely age, education. marital status, occupation and monthly income. 56

5 CONCLUSION E-banking has become a necessary survival weapon. Today, the click of the mouse offers customers banking services at a much lower cost and also empowers them with unprecedented freedom in choosing vendors for their financial service needs. Banks have to upgrade and constantly think of new innovative customized packages and services to remain competitive. Banks have come to realize that survival in the new e-economy depends on delivering some or all of their banking services on the Internet while continuing to support their traditional infrastructure. The rise of E-banking is redefining business relationships and the most successful banks will be those that can truly strengthen their relationship with their customers. Without any doubt, the international scope of E banking provides new growth perspectives and Internet business is a catalyst for new technologies and new business processes. REFERENCES 1. Report on Trend and Progress of Banking in India , published by RBI 2. Rugimbana R (1995), Predicting ATM Usage: The Relative Importance of Perceptual and Demographic Factors, International Journal of Bank Marketing, Vol. 13, No. 4, pp Hasanbanu, S. (2004), Customer service in rural banks: An Analytical study of Attitude of Different types of customers towards banking services, IBA Bulletin, Vol.XXV1, No. 8(August), pp Pathrose, P. (2001), Hi-Tech. Banking-Prospects and problems, IBA Bulletin, Vol.XX111, No. 7(July). 5. Padwal, S. (2003), Data warehousing and CRM in banking, Vinimaya, Vol. XXX1V, No. 2 (July-September), pp india-perception-andstatistics.html, August nd February June