DATA ANALYSIS I: USER PROFILE & THEIR PERCEPTIONS

DATA ANALYSIS I: USER PROFILE & THEIR PERCEPTIONS 5 Contents 5.1-Profile of the Respondents 5.2-Perceptions and Practices of Customers 5.2.1-Visit of Bank s Website 5.2.2-Practice of Changing PIN/Password 5.2.3-Reduction in the Frequency of Bank Visits 5.2.4-Satisfaction Level of Personalised Attention 5.2.5-Customer Opinion on the Competency of Bank Employees 5.2.6-Source of Collecting SSBT-related Information 5.2.7-Criteria for Selection of a Bank for SSBT Services 5.2.8-Preferred Method to Know the Account Details 5.2.9-Preferred Method to do Bank Transactions Understanding customer perspective, their preferred channels through which customers use to interact with their bank, the preferred way of doing things through the delivery channels etc. are some of the important pre-requisites for the bankers to ensure the success of SSBT services. This demands a commitment to rigorous collection of information on bank customers towards their preference to SSBT service channels, their expectations towards security aspects, personal attention, and other related perceptions and practices. This chapter is presented in two sections. Section A aims to present the sample profile of the respondents and Section B presents the perceptions and practices of the respondents in using SSBT Services. SECTION-A 5.1-Profile of the Respondents The data for the present study were collected from 480 bank customers, who are using at least two SSBT services, from South, Central and Northern regions of Kerala. A total of 1250 questionnaires were distributed among the bank customers. Of these 480 questionnaires were used for the analysis and 42 questionnaires had to be rejected due to Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala

Chapter 5 incomplete answers or late receipts and the effective response rate was 38.40%. 5.1.01-Distribution of Sample (Region & Sector) Customers may depend on more than one bank for availing SSBT services. Since the customers avail services from all sectors of banks, it is felt appropriate to request the respondents to mention their main banker for availing SSBT Services. Out of the total 480 samples, 52 respondents did not reveal the name of their main banker. Region Samples Table-5.01 Distribution of Sample (Region & Sector) Sample Public Sector Banks (PSB) % within PSB Old Private Sector (OPB) % within OPB New Gen. Banks (NGB) % within NGB Bank Sector North 69 14.4% 43 75.4% 3 5.3% 11 19.3% 57 100% Central 334 69.6% 163 53.3% 52 17.0% 91 29.7% 306 100% South 77 16.0% 47 72.3% 6 9.2% 12 18.5% 65 100% 480 100.0% 253 59.1% 61 14.3% 114 26.6% 428 100% Sector-wise distribution, based on the main banker, shows that majority of the respondents (59%) have Public Sector Banks (PSB) as their main banker. The proportions of New Generation Banks (27%) and Old Private Sector Banks (14%) in this regard are comparatively less. These indicate that the PSBs are the most accepted banks as the main banker for SSBT services. samples of 480 consist of 69 from North, 334 from Central and 77 from Southern parts of Kerala. Region-wise figures also indicate that PSB is the most preferred bank for SSBT services among the customers in all the three regions in Kerala. 5.1.02-Distribution of Sample (Gender) The distribution of respondents on the basis of gender is given in the Table-5.02. Out of the total 480 respondents, 78% are male and the remaining 22% are females. Male domination of SSBT users is observed while considering each bank group separately. In similar studies conducted earlier, it was found that women tend to lag their men counterparts in technology adoption. The male domination in SSBT adoption is seemed to be similar as found in the study of Morahan Martin (2000). 162 Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala

Gender Samples Nos Sample Data Analysis 1-User Profile & Their Perceptions Table-5.02 Distribution of Sample (Gender) Public Sector (PSB) % Nos within PSB Old Private Sector (OPB) % Nos within OPB New Gen. Banks (NGB) % Nos within NGB Nos Bank Sector Male 374 77.9% 196 58.7% 43 12.9% 95 28.4% 334 100% Female 106 22.1% 57 60.6% 18 19.1% 19 20.2% 94 100% 480 100.0% 253 59.1% 61 14.3% 114 26.6% 428 100% In this study, it was found that males get better exposure to new things than females and hence, they are likely to adopt new channels earlier. have greater fear and less interest in new technologies. 5.1.03-Distribution of Sample (Age) Table-5.03 presents the age-wise composition of respondents. Age (Years) Samples Sample Table-5.03 Distribution of Sample (Age) Public Sector (PSB) PSB Old Private Sector (OPB) OPB New Gen. Banks (NGB) NGB In addition, women Bank % within Sector Upto 25 36 7.50% 15 46.90% 8 25.00% 9 28.10% 32 100% 26 to 35 235 49.00% 114 52.80% 40 18.50% 62 28.70% 216 100% 36 to 45 105 21.90% 60 65.90% 9 9.90% 22 24.20% 91 100% 46 to 55 81 16.90% 49 74.20% 3 4.50% 14 21.20% 66 100% Above55 23 4.80% 15 5.90% 1 1.60% 7 6.10% 23 5.40% 480 100% 253 100% 61 100% 114 100% 428 100% Majority of the respondents (235), constituting 49.0% belong to the age group of 26-35, followed by the age group of 36 to 45 years (21.30%). It shows that SSBT services are widely accepted among youngsters and this result is in tune with the results existing studies. For example, the study of Trocchia and Janda (2000) indicates that older customers are found to have problems with new technologies and hence, are expected to have negative attitudes towards innovations. Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala 163

Chapter 5 5.1.04-Distribution of Sample (Qualification) Table-5.04 exhibits qualification-wise distribution of respondents among the three sectors of banks. Qualification Samples Table-5.04 Distribution of Sample (Qualification) Sample Public Sector (PSB) % within PSB Old Private Sector (OPB) OPB New Gen. Banks (NGB) NGB Bank % within Sector Upto UG 8 1.7% 1 12.5% 3 37.5% 4 50.0% 8 100% Graduate 79 16.5% 33 45.8% 9 12.5% 30 41.7% 72 100% P. G. /Prof. 393 81.9% 219 62.9% 49 14.1% 80 23.0% 348 100% 480 100% 253 59.1% 61 14.3% 114 26.6% 428 100% Considering the education level, majority of the respondents (81.90%) are postgraduates or professionally qualified, 79 (16.50%) are graduates and only 1.70% are found to be upto UG. It is noted that 98% of sample respondents posses higher educational qualification Cross analysis indicates that the level of education is comparatively higher in PSB and lower in OPB. This indicates that educational qualification is one of the influencing variables for the adoption of SSBT. This result is similar with the studies of Sabah Abdullah Al-Somali et al. (2009) and Minna Mattila et al. (2003). Education, trust and resistance to change have significant impact on the attitude towards the likelihood of adopting online banking (Sabah Abdullah Al-Somali, Roya Gholami & Ben Clegg 2009). Household income and education were found to have a significant effect on the adoption of the Internet as a banking channel (Minna Mattila, Heikki Karjaluoto & Tapio Pento 2003). Cross analysis indicate that the level of education is comparatively higher in PSB and lower in OPB. 5.1.05-Distribution of Sample (Occupation) The study of Sakkthivel A. M. (2006) revealed that the occupation has significant impact on consuming different categories of services online. Here, the respondents are classified into four strata based on occupational status and is exhibited in Table-5.05. 164 Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala

Data Analysis 1-User Profile & Their Perceptions Occupation Samples Sample Table-5.05 Distribution of Sample (Occupation) Public Sector (PSB) PSB Old Private Sector (OPB) OPB New Gen. Banks (NGB) NGB Bank Sector Employees 245 51.00% 142 64.30% 30 13.60% 49 22.20% 221 100% Business 58 12.10% 19 36.50% 9 17.30% 24 46.20% 52 100% Professional 161 33.50% 81 57.40% 21 14.90% 39 27.70% 141 100% Others 16 3.30% 11 78.60% 1 7.10% 2 14.30% 14 100% 480 100.00% 253 59.10% 61 14.30% 114 26.60% 428 100% Summarised data based on the occupational status of respondents shows that 245 respondents (51%) are employed, 161 respondents (33.5%) are professionals, 58 respondents (12.10%) are businessmen and the rest 16 (3.3%) are from other walks of life. Even though SSBT services are very much useful to the business men, their adoption (12.10%) is comparatively less. Sector-wise analysis reveals that when employees and professionals dominates in PSB, businessmen dominates in NGB. 5.1.06-Distribution of Sample (Income) Household income was found to have a significant effect on the adoption of the Internet as a banking channel (Heikki Karjaluoto & Tapio Pento 2003). In the study of Mattila (2003), it was found that high income groups opt for banking channels which offer a high level of flexibility. Based on the income of the respondents, the collected data is summarised in Table-5.06. Among different income groups, the largest percentage (44.20%) of the respondents of this study falls under Rs.20,001 to Rs.40,000 income category. The balance 53.8% is shared by all the other groups as 20% by Rs.40,001 to Rs.60,000 group, 15.20% by below Rs.20,000 group and so on. analysis on the basis of demographic variables reveals that a typical SSBT user is male employee or professional, relatively young and well educated. The Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala 165

Chapter 5 Income (Rs. ) Samples Sample Table-5.06 Distribution of Sample (Income) Public Sector (PSB) PSB Old Private Sector (OPB) OPB New Gen. Banks (NGB) NGB Bank Sector Upto 20K 73 15.20% 31 47.70% 16 24.60% 18 27.70% 65 100% 20K-40K 212 44.20% 108 56.30% 30 15.60% 54 28.10% 192 100% 40K-60K 96 20.00% 46 52.90% 10 11.50% 31 35.60% 87 100% 60K-80K 52 10.80% 33 75.00% 4 9.10% 7 15.90% 44 100% Above 80K 47 9.80% 35 87.50% 1 2.50% 4 10.00% 40 100% 480 100.00% 253 59.10% 61 14.30% 114 26.60% 428 100% 5.1.07-Distribution of Sample (Computer Experience) Earlier studies reveal that compatibility has a great influence on the adoption of SSBT Services. Experience in computer enables the users to become more confident in using ICT enabled services. Therefore, respondents were requested to mention their experience in using computer. The summary of data, based on the experience of 378 respondents, who revealed their experience in using computer, is shown below. Computer Experience Table-5.07 Distribution of Sample Customers-Computer Experience Samples Sample Public Sector (PSB) PSB Old Private Sector (OPB) OPB New Gen. Banks (NGB) NGB Bank Sector Upto 5 36 9.50% 25 56.80% 2 4.50% 17 38.60% 44 100% 6 to 10 139 36.80% 97 59.50% 23 14.10% 43 26.40% 163 100% 11 to 15 131 34.70% 80 54.10% 27 18.20% 41 27.70% 148 100% 16 to 20 59 15.60% 40 71.40% 8 14.30% 8 14.30% 56 100% >20 13 3.40% 9 69.20% 1 7.70% 3 23.10% 13 100% 378 100.00% 251 59.20% 61 14.40% 112 26.40% 424 100% Table-5.07 shows that 139 respondents, constituting 36.80%, are having 6 to 10 years of experience, followed by 131 respondents (37%) 11 to 15 years of experience. Thus, the respondents with computer experience of 6 to 15 years of experience (two 166 Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala

Data Analysis 1-User Profile & Their Perceptions groups together), make up 72% of the total respondents. Those who do not have at least 5 years of computer experience are only less than one-tenth (9.50%) of the total samples. As found in the reviewed literature, the influence of computer experience in the use of SSBT Services among bank customers is reflected in the present study also. 5.1.08-Distribution of Sample (Banking Experience) There is an association between online customer trust and bricks-and-mortar perceived characteristics. If a customer trusts a bricks-and-mortar bank, he may be trusted to use the online services offered by the same bank on the assumption that the trusted bank will be similarly trustworthy in the new online division. Therefore, to get an outlook on the earlier banking experience, the respondents were requested to mention their previous experience in bricks-and-mortar banking system and the details are summarised in the Table-5.08. Banking Experience Sample Table-5.08 Distribution of Sample (Banking Experience) Upto 5 Yrs. 6 to 10 Yrs 11 to 15 Yrs. 16 to 20 Yrs. 21 to 25 Yrs. 26 to 30 Yrs. Upto 30 Yrs. 77 148 76 64 38 40 28 471 % to 16.30% 31.40% 16.10% 13.60% 8.10% 8.50% 5.90% 100. % While looking into the earlier banking experience of respondents, it is seen that 148 of the respondents (31.40%) have 6 to 10 years of computer experience. Respondents with more than 20 years of banking experience are only less than 1/4 th of the respondents (22.50%) and those with below 5 years of experience are only 16.30%. 5.1.09-Distribution of Sample (Computer Knowledge) Low computer literacy and lack of knowledge on how to use the technology are some of the contributing factors for not adopting ICT enabled services. correlation normally exists between experience and knowledge. A positive But it may not be always true in the case of computer, because the usage of computer by most of the ordinary users is restricted to basic operations. Therefore, respondents were asked to rate their working level of computer knowledge as basic, average and advanced and the Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala 167

Chapter 5 summarised data is given in Table-5.09. Level of Computer Knowledge Table-5.09 Distribution of Sample (Computer Knowledge) Samples Sample Public Sector (PSB) PSB Old Private Sector (OPB) OPB New Gen. Banks (NGB) NGB Bank % within Sector Basic 10 2.11% 5 55.56% 0 0.00% 4 44.44% 9 100% Average 219 46.11% 118 61.78% 24 12.57% 49 25.65% 191 100% Advanced 246 51.79% 128 57.40% 36 16.14% 59 26.46% 223 100% 475 100.00% 251 59.34% 60 14.18% 112 26.48% 423 100% Considering the level of computer knowledge, it is seen that the respondents with basic level of computer knowledge is 2.10% only. More than half of the respondents (51.80%) have advanced level and 46.11% have average level of computer knowledge. From the above summary, it is clear that most of the sample respondents have good exposure to computer knowledge. SECTION-B 5.2-Perceptions and Practices of Customers In this section, some of the perceptions and practices followed by the respondents in the adoption of SSBT services are discussed. The discussion is presented under nine sub-heads such as (1)Visit of bank s website, (2) Practice of changing PIN/Password, (3) Reduction in the frequency of bank visits, (4) Reduction in personal attention, (5) Customer opinion on the competency of bank employees, (6) Source of collecting SSBTrelated information, (7) Factors considered while selecting bank for SSBT services, (8) Preferred method to know the account details and (9) Preferred method to do bank transactions. 5.2.1-Visit of Bank s Website A business website may promote the business's products and also host informative documents. Therefore, customers visit these websites to collect the 168 Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala

Data Analysis 1-User Profile & Their Perceptions information regarding the products and services offered. Bank customers visit their bank website not only to collect service-related information, but also to access their bank accounts. Therefore, bank websites are considered as the bank counters in the new technological environment. The present study examines the habit of visiting bank website by customers to know whether the bank websites are considered as a substitute of bank counters of brick and mortar system. Respondents were requested to mention frequency of visiting their bank s website by choosing any one of the four options as regularly, occasionally, rarely and do not visit. Out of 480 samples collected, 7 respondents did not mention about their habit of visiting banks website. Table-5.10 Frequency of Visiting Bank's Website Visit Interval Frequency Valid Per cent Regularly 189 40.00% Occasionally 214 45.20% Rarely 59 12.50% Do not visit 11 2.30% Figure-5.01 The summarised data in shows that a major portion of bank customers visit their bank website occasionally (45.20%) or regularly (40%). 1/8 th of the customers visit the website rarely and only a negligible portion (2.30%) does not visit the website at all. Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala 169

Chapter 5 In order to see whether the frequency of visiting bank website is influenced by sector, user demographics and knowledge and experience of the customers, Chi-square test was conducted and the following results were obtained. Table-5.11 Chi-square Test Result (Visit of Bank Website) Variables Value df Asymp. Sig. Remarks (2 sided) Sector 14.982 4 0.005 Significant Region 0.907 4 0.923 Not Significant Gender 4.942 2 0.085 Not Significant Age 13.299 8 0.102 Not Significant Qualification 3.545 2 0.17 Not Significant Occupation 1.986 4 0.738 Not Significant Income 10.882 8 0.208 Not Significant Banking Experience 14.316 12 0.281 Not Significant Computer Knowledge 18.716 3 <0.001 Significant Level of using SSBT 40.226 4 <0.001 Significant From the above table, it is revealed that region and user demographics do not influence the frequency of visiting bank website as there is no significant variation across different groups of customers classified on the basis of gender, age, qualification, occupation and income. Similarly, banking experience also does not influence such a practice. However, the results of Chi-square tests as shown in Table 5-11 show that the sector of the bank influences the practice of visiting bank website. Similarly, significant variation is noted in the regularity of visiting bank websites across customers with varied levels of computer knowledge and also among those with different levels of SSBT usage. Table-5.12 Frequency of Visiting Bank's Website (Sector) Sector Regularly Occasionally Rarely Do not visit PSB OPB NGB Count 87 105 15 3 210 % 41.40% 50.00% 7.10% 1.40% 100.00% Count 13 25 6 1 45 % 28.90% 55.60% 13.30% 2.20% 100.00% Count 73 44 17 0 134 % 54.50% 32.80% 12.70% 0.00% 100.00% 170 Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala

Data Analysis 1-User Profile & Their Perceptions The summarised result in the above table indicates that compared with PSB and OPB, more customers of NGB visit their bank website regularly. Table-5.13 Frequency of Visiting Bank's Website (Computer Knowledge) Computer Knowledge Regularly Occasionally Rarely Do not visit Basic Level Average Level Advanced Level Count 3 4 2 1 10 % 30.00% 40.00% 20.00% 10.00% 100.00% Count 66 116 32 3 217 % 30.40% 53.50% 14.70% 1.40% 100.00% Count 120 93 25 7 245 % 49.00% 38.00% 10.20% 2.90% 100.00% Count 189 213 59 11 472 % 40.00% 45.10% 12.50% 2.30% 100.00% As found earlier, significant variation is noted in the regularity of visiting bank websites across the customers with varied levels of computer knowledge. Around half of the respondents with advanced level of computer knowledge (49%) visit their bank website regularly. But such a proportion is only 30% each among basic level and average level respondents. Therefore, it can be stated that respondents with advanced level of computer knowledge are better in following the practice of visiting their bank websites on a regular basis. Table-5.14 Frequency of Visiting Bank's Website (Extent of SSBT Use) Level of using SSBT Services Regularly Occasionally Rarely Do not visit Low Medium High Count 18 21 15 8 62 % 29.00% 33.90% 24.20% 12.90% 100.00% Count 127 169 38 3 337 % 37.70% 50.10% 11.30% 0.90% 100.00% Count 44 24 6 0 74 % 59.50% 32.40% 8.10% 0.00% 100.00% The extent of utilisation of SSBT services also influences the practice of visiting the websites of their banks. 59.50% of the high level users visit their bank websites regularly, followed by medium (37.70%) and low level users (29%). This indicates that the frequency of visiting the bank website is high among the customers whose extent of Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala 171

Chapter 5 use of SSBT services are high and there is a positive relationship between the extent of use of SSBT and regularity of visiting the website of the bank. 5.2.2- Practice of Changing PIN/Password One of the major concerns of bank customers in the use of SSBT services is security. As technology continues to advance, security measures also continue to improve and become more sophisticated. With networking and inter connection of databases of different banks, new challenges emerge relating to security privacy and confidentiality in banking transactions. For better safety, banks insist customers to change their initially allotted PIN/password immediately and request to change it from time to time. But some of the customers are not taking due precautions, including the practice of changing PIN/Password. Here, the frequency of changing the user PIN/password of ATM, IB and MB of respondents is evaluated on a four-point scale as regularly, occasionally, rarely and never change. 5.2.2.1-Practice of Changing PIN of ATM ATM is not only safe but also convenient. Periodical change of PIN is a precautionary measure for safe use of ATM cards. The summary of the data related to the frequency of changing the PIN of ATM by the respondents is shown in Table-5.15. Table-5.15 Frequency of Changing PIN of ATM Change Interval Frequency Valid % Regularly 40 9% Occasionally 143 33% Rarely 152 35% Never change 96 22% 431 100% From the above table, it is seen that those who change PIN either regularly (9%) or occasionally (33%) constitute less than half of the total respondents. It is worthmentioning that around one-fifth (22%) of the respondents never change the PIN initially allotted to them. 172 Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala

Data Analysis 1-User Profile & Their Perceptions Figure-5.02 In order to know whether the sector, region, user demographics, knowledge and experience of customers influence the practice of changing the PIN, Chi-square tests have been conducted and the following results were obtained. Table-5.16 Chi-square Test Result (Changing ATM PIN) Practice of Changing PIN of ATM Variables Value df Asymp. Sig. (2-sided) Sector 0.69 4 0.953 Not Significant Region 122.54 4 <0.001 Significant Gender 3.33 3 0.344 Not Significant Age 14.15 9 0.117 Not Significant Qualification 0.15 3 0.986 Not Significant Occupation 1.52 6 0.958 Not Significant Income 3.59 6 0.732 Not Significant Banking Experience 8.25 12 0.766 Not Significant ATM Experience 3.34 6 0.766 Not Significant Computer Knowledge 6.97 3 0.073 Not Significant Extent of SSBT Use 11.28 6 0.008 Not Significant The results of Chi-square tests reveal that the sector, user demographics, knowledge and experience do not influence the practice of changing the PIN of ATM. The data in Table-5.17 indicates that the practice of changing PIN varies across regions and the respondents in southern region are comparatively more serious in the Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala 173

Chapter 5 practice of changing PIN, compared to northern and central counterparts. Table-5.17 Frequency of Changing PIN of ATM (Region) Region Regularly Occasionally Rarely Never North Central South Count 4 20 22 18 64 % 6.30% 31.30% 34.40% 28.10% 100.00% Count 28 95 103 65 291 % 9.60% 32.60% 35.40% 22.30% 100.00% Count 8 28 27 13 76 % 10.50% 36.80% 35.50% 17.10% 100.00% 5.2.2.2-Practice of Changing Password of IB An average internet user access resources and avail services from different websites. Most of these sites require registration and further access is controlled with the allotted user ID and password. As a result, a typical internet user needs to manage several usernames and passwords. To reduce this burden, many use their user ID and password for a very long period without changing and also reuse the same user ID and passwords on different websites. A security firm Trusteer in their study found that 73% of web users take their online banking password and use it at other websites. And about half of all customers utilise the same password and user name at online banking sites and other sites. According to them, when a bank allowed customers to pick a user ID, 65% used it on other sites. When a bank assigned a customer ID, 42% used it for other sites and 42% used both the ID and the password on at least one other site. The data related to the habit of changing IB password by the respondents is shown in Table-5.18. Table-5.18 Frequency of Changing IB Password Change Interval Valid % Regularly 58 15% Occasionally 151 40% Rarely 115 30% Never change 56 15% 380 100% 174 Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala

Data Analysis 1-User Profile & Their Perceptions Compared with ATM users, IB users are more cautious in the security aspects and give more importance to change the password. More than half of the customers (55%) have the habit of changing IB password either regularly or occasionally. However, 30% of the customers change it rarely and the balance (15%) never changes the password. Figure-5.03 In order to know whether the sector, region, user demographics, knowledge and experience influence the practice of changing IB/MB passwords, Chi-square tests were conducted and the results are shown in Table-5.19. Table-5.19 Chi-square Test Result (Frequency of Changing IB Password) Practice of Changing IB Password Variables Value df Asymp. Sig. (2-sided) Sector 4.83 6 0.566 Not Significant Region 7.36 4 0.118 Not Significant Gender 2.55 3 0.466 Not Significant Age 6.37 4 0.173 Not Significant Qualification 562 3 0.905 Not Significant Occupation 5.69 6 0.459 Not Significant Income 9.75 12 0.638 Not Significant Computer Experience 12.13 9 0.206 Not Significant Banking Experience 14.24 12 0.286 Not Significant Internet Banking Experience 9.37 3 0.025 Significant Computer Knowledge 19.95 3 <0.001 Significant Extent of SSBT Use 14.44 6 0.025 Significant Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala 175

Chapter 5 The above table indicates that the practice of changing IB password is not influenced by any demographic variables, sector, banking experience and computer experience. Table-5.20 Frequency of Changing IB Password (IB Experience) Occas Experience in IB Regularly Rarely Never -ionally Upto 5 Count 41 120 98 45 304 years % 13.50% 39.50% 32.20% 14.80% 100.00% 6 to 10 Count 16 29 10 7 62 years % 25.80% 46.80% 16.10% 11.30% 100.00% 11 years Count 0 1 1 1 3 & above % 0.00% 33.30% 33.30% 33.30% 100.00% Chi-square test results as shown in Table-5-19 indicates that the experience in the field of internet banking, level of computer knowledge and the extent of utilization of SSBT services of customers influence the customers in the habit of changing IB password. Table-5.21 Frequency of Changing IB Password (Computer Knowledge) Computer Knowledge Basic Level Average Level Advanced Level Regularly Occas -ionally Rarely Never Count 0 3 1 4 8 % 0.0% 37.50% 12.50% 50.0% 100.0% Count 15 73 53 33 174 % 8.60% 42.0% 30.50% 19.0% 100.0% Count 43 75 61 18 197 % 21.80% 38.10% 31.0% 9.10% 100.0% Level of computer knowledge of the respondents has a great influence on the habit of changing IB password. It is evident that the behavior of the respondents in changing password varies across different levels of computer knowledge. When none of the respondents in the basic category change the IB password regularly, this improved to 9% in the average and 22% in the advanced category. On the flipside, the proportion of respondents who never change password tremendously reduced from 50% in the basic category to19% in the average category and to 9% in the advanced category. As one 176 Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala

Data Analysis 1-User Profile & Their Perceptions progresses in the level of computer knowledge from basic to advanced level, the practice of changing password is improved. Table-5.22 Frequency of Changing IB Password (SSBT Use) Occasionally Level of using SSBT Regularly Rarely Never Count 6 12 14 9 41 Low % 14.60% 29.30% 34.10% 22.00% 100.00% Medium High Count 35 118 80 43 276 % 12.70% 42.80% 29.00% 15.60% 100.00% Count 17 21 21 4 63 % 27.00% 33.30% 33.30% 6.30% 100.00% Table-5.22 reveals that high level users of SSBT are more concerned about the security aspects. The frequencies of changing password, it is observed, is higher among the high level and lower among basic level users of IB. 5.2.2.3-Practice of Changing Password of MB The respondents, changing MB password regularly is only 7% and around 1/3 rd (32%) of the respondents never change MB passwords. The data indicates that 61% of the MB users are not at all serious about it as they change MB password either rarely (29%) or never (32%). Table-5.23 Frequency of Changing MB Password Change Interval Valid % Regularly 13 7% Occasionally 63 32% Rarely 57 29% Never change 63 32% 196 100% Compared with ATM & IB users, MB users are not so serious in following the practice of changing password from time to time. Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala 177

Chapter 5 Figure-5.04 In order to know whether the result is same among different categories of customers, Chi-square tests have been conducted and the results are shown in Table- 5.24. Table-5.24 Chi-square Test Result (Frequency of Changing MB Password) Practice of Changing MB Password Variables Value df Asymp. Sig. (2-sided) Sector 1.502 2 0.472 Not Significant Region 3.326 4 0.505 Not Significant Gender 1.076 2 0.584 Not Significant Age 7.454 4 0.114 Not Significant Qualification 2.499 2 0.287 Not Significant Occupation 5.033 2 0.284 Not Significant Income 3.118 6 0.794 Not Significant Internet Experience 23.905 6 <0.001 Significant Banking Experience 1.437 8 0.994 Not Significant Computer Knowledge 0.698 3 0.874 Not Significant Extent of SSBT Use 8.157 3 0.043 Not Significant Chi-square test result as exhibited in the above table, indicates that significant variation exist only across the customers, grouped on the basis of internet experience. Those with ample experience in using internet take it serious to change the password periodically as they are aware of the consequential benefits of the same. 178 Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala

Data Analysis 1-User Profile & Their Perceptions Table-5.25 Frequency of Changing MB Password (Internet Experience) Occasionally Internet Experience Regularly Rarely Never Upto 5 Count 10 25 17 10 62 years % 16.10% 40.30% 27.40% 16.10% 100.00% 6 to 10 Count 19 83 76 33 211 years % 9.00% 39.30% 36.00% 15.60% 100.00% 11 years Count 29 42 20 12 103 & above % 28.20% 40.80% 19.40% 11.70% 100.00% 5.2.3- Reduction in the Frequency of Bank Visits Gone are the days when every banking transaction required a visit to the bank branch. Effective adoption of SSBT services enables the customers to reduce their frequency of bank branch visits to a great extent. Today, customers can avail most of the bank services anyway and anytime. The basic objective of technology in banking is to reduce human involvement in the delivery of services, which is manifested in the form of shifting from paper based transactions to electronic ways. Therefore, it is important to know whether the adoption of SSBT has enabled the customers to reduce the frequency of visiting their bank. In the present study, respondents were asked whether the number of bank visits reduced due to the adoption of SSBT. The responses were analysed on a five point scale as strongly disagree(1), disagree(2), neutral(3), agree (4), and strongly agree (5). Table-5.26 shows the summary of the response from the respondents. Table-5.26 Reduction in the Frequency of Bank Visits Response Frequency Valid % Strongly Disagree 14 3.00% Disagree 6 1.30% Neutral 23 4.90% Agree 206 43.60% Strongly agree 223 47.20% In the above table, it is noted that 90% of the respondents supported the statement that the number of bank visits reduced due to the adoption of SSBT adoption. As found Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala 179

Chapter 5 in the study of Mols et al., (1999), the adoption of SSBT services enabled the bank customers to reduce the frequency of their bank visit to a great extent and to move more towards technology enabled services. Figure-5.05 Table-5.27 shows the result of Chi-square test conducted to know whether the same result is applicable to all the categories of customers. Table-5.27 Chi-square tests Variables Value df Asymp. Sig. (2-sided) Sector 8.81 4 0.066 Not Significant Region 0.847 4 0.932 Not Significant Gender 2.028 2 0.363 Not Significant Age 10.772 4 0.049 Not Significant Qualification 4.852 2 0.088 Not Significant Occupation 6.524 4 0.163 Not Significant Income 7.117 8 0.524 Not Significant Banking Experience 21.618 8 0.046 Not Significant Computer Knowledge 10.153 2 0.006 Significant Extent of SSBT Use 8.276 2 0.016 Significant The above table indicates that there is significant variation in the opinion across the customers, classified on the basis of their computer knowledge and the extent of using 180 Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala

Data Analysis 1-User Profile & Their Perceptions SSBT. Analysis indicates that there is considerable reduction in the frequency of visiting bank website among the customers with advanced level of computer knowledge and also among high level of users of SSBT services. 5.2.4- Satisfaction Level of Personalised Attention Adoption of SSBT services does not indicate that branch banking is obsolete. Customers want personal attention of a branch combined with the convenience of the technology enabled services. Traditionally, banks used their retail outlets to provide services to the individual customer. In the present technological environment, a major problem of technology-enabled services is that banks are forgetting the traditional rules of business, such as listening to customers and delivering the value added services to the customers. There are some people who prefer to deal or interact with people rather than machines. Therefore, e-transformation should not be at the expense of the personal touch in a service encounter. According to Global Banking Customer Survey 2011, conducted by Ernst & Young, Indian customers are the most satisfied with the level of personalised attention they receive from their main bank, and the majority customers are willing to pay extra for independent financial advice. Table-5.28 shows the satisfaction level of personalised attention among bank customers of different countries Table-5.28 Satisfaction Level of Personalised Attention Absolutely Occasional Good Very Country no Attention Contact Service Personalised Europe 11% 33% 42% 14% U. S. 5% 27% 45% 22% Canada 7% 27% 44% 22% Latin America 6% 27% 48% 19% Brazil 13% 27% 40% 20% South Africa 14% 33% 39% 14% China 6% 33% 40% 21% Japan 45% 44% 6% 5% India 5% 14% 57% 24% World 12% 31% 46% 16% Source: Global Banking Consumer Survey 2011 by Ernst & Young The personal attention received in emerging markets seems to be significantly Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala 181

Chapter 5 better, with 81% of Indian respondents opine that they receive good or very good personalised service. Globally, 43% of customers say that they get no, or only occasional, personal attention from their main bank. The results of the Survey 2011 show that across the globe, Indian (81%), US (67%) and Canadian (66%) respondents rate the personalised service they receive the highest, while only 11% of Japanese customers say that they receive a good or very personalised service and 45% say they receive absolutely no attention. Across Europe, 56% of respondents receive good or very personalised service with the highest satisfaction levels evident in Belgium (66%) and Spain (65%). But not all customers believe that they are receiving personalised service: the highest levels of European customers who say that they receive absolutely no attention or only occasional contact and in Italy (55%), Germany (53%) and UK (53%). In the present study, in order to know whether there is any change in the level of personalised attention the customers receive from their bank, respondents were asked whether they felt that personal attention has been reduced after the introduction of SSBT services. The responses were collected and analysed using a four point scale as always (1), almost all times (2), occasionally (3) and never (4). The following table shows the summary of opinion of the respondents. Table-5.29 Opinion about Personal Attention Opinion Frequency Valid % Always 23 4.90% Almost all times 45 9.60% Occasionally 206 43.80% Never 196 41.70% Response 470 100% Table 5.29 shows that only 14.50% of the respondents have always (4.90%) or almost all times (9.60%) felt that personal attention has been reduced. Even though, 43.8% of the respondents felt occasionally that personal attention has been reduced, 41.70% of the respondents have never felt that personal attention has been reduced after the introduction of SSBT services. Based on these figures, it is felt that technologyenabled banking services have not lead to the reduction in the personalised services. 182 Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala

Data Analysis 1-User Profile & Their Perceptions Figure-5.06 In order to check whether there is any difference of opinion among different groups of customers on the basis of their demographic and other variables, Chi-square tests have been conducted and the results have been included in Table-5.30. Table-5.30 Chi-square Tests Variables Value df Asymp. Sig. (2-sided) Remarks Sector 5.9 6 0.431 Not significant Region 1.6 4 0.802 Not significant Gender 5.3 3 0.148 Not significant Age 5408 6 0.493 Not significant Qualification 5.3 3 0.150 Not significant Occupation 8.7 4 0.068 Not significant Income 5.4 6 0.488 Not significant Banking Experience 20.2 12 0.063 Not significant Extent of SSBT Use 6.2 4 0.183 Not significant The results of Chi-square test as shown in the above table indicate that there is no significant variation in the opinion regarding the reduction in personal attention among the respondents, classified on the basis of the sector, region, user demographics, knowledge and experience of the respondents. Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala 183

Chapter 5 5.2.5- Customer Opinion on the Competency of Bank Employees For getting the best results through technology, it would be imperative to appoint the right type of people for the delivery of services. During the initial stage of the introduction of SSBT, employees felt uncomfortable about the changes in the banking sector as the policy of the banks were to convert the possible jobs from man-powered to machine-powered by decreasing manual powers. Experienced bank staff normally supports the role of technology and relationship in banking decisions. But there is a general belief that younger employees are more competent to provide service in the technological environment. When the banks become more technology enabled, employees are to be more tech savvy. Studies reveal that youngsters are more prone to technological changes and use more tech-enabled banking. Similarly, young employees are generally more technology adaptable and enlightened, compared to the old ones. Several studies also support that young or less experienced bankers also support the importance of relationship and technology in banking more than highly experienced. To enquire into the opinion of respondents, a question was asked Do you agree that new bank employees are better in new technological environment?. The response were collected and analysed on a five point scale as strongly disagree (1), disagree (2), neutral (3), agree (4) and strongly agree (5). Table-5.31 Opinion on the Competency of Bank Employees Opinion Frequency Valid % Strongly Disagree 10 2.10% Disagree 38 8.00% Neutral 79 16.70% Agree 264 55.70% Strongly agree 83 17.50% 474 100.00% From the Table-5.31, it is seen that around 3/4 th of the respondents agreed that new bank employees are better in the new technological environment. Those who have disagreement with the statement is only 10% of the total. 184 Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala

Data Analysis 1-User Profile & Their Perceptions Figure-5.07 Based on the above summary, it can be stated that customers have the opinion that youngsters are more competent in the new technological environment in meeting the expectations of customers. The Chi-square test was conducted to difference of opinion among different types of customers, categorised on the basis of their demographic and other variables, and the results are exhibited in Table-5.32. Table-5.32 Chi-square tests Customer Opinion on the Competency of Bank Employees Variables Value df Asymp. Sig. (2-sided) Remarks Sector 10.501 4 0.033 Significant Region 9.731 6 0.136 Not Significant Gender 6.011 3 0.111 Not Significant Age 11.629 9 0.235 Not Significant Qualification 0.647 3 0.886 Not Significant Occupation 7.111 6 0.311 Not Significant Income 11.443 12 0.491 Not Significant Banking Experience 37.323 15 0.051 Not Significant Computer Knowledge 2.968 3 0.397 Not Significant Extent of SSBT use 6.936 6 0.327 Not Significant Chi-square test showed significant variation in the opinion among the customers across different sectors of banks. No significant difference in the opinion was noted Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala 185

Chapter 5 among the respondents, categorised on the basis of user demographics, knowledge and experience of respondents. The summarised sector-wise data is shown in Table-5.33. Sector PSB OPB NGB Table-5.33 Opinion on the Competency of Bank Employees (Sector) Strongly Disagree Disagree Neutral Agree Strongly Agree 186 Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala Count 4 22 30 116 38 210 Percentage 1.90% 10.48% 14.29% 55.24% 18.10% 100.00% Count 0 0 4 33 8 45 Percentage 0.00% 0.00% 8.89% 73.33% 17.78% 100.00% Count 4 3 35 65 27 134 Percentage 2.99% 2.24% 26.12% 48.51% 20.15% 100.00% The above table shows that the proportion of customers who agreed with the above statement new bank employees are better in the new technological environment is higher in OPB (91%), compared with the respondents of PSB (73%) and NGB (69%). Respondents from OPB indicates that new bank employees are perceived to be more competent compared to the appreciation given by the customers of PSB and NGB. 5.2.6- Source of Collecting SSBT-related Information Educating the customers makes good business sense, which will lead to the increased rate of SSBT adoption. There are two types of education viz. products and practices. Product education is targeted towards increasing usage whereas the practices education is targeted at gaining customer confidence around systems and processes employed at banks. Banks have been keen in educating customers through advertisement on different types of services offered, safe banking precautions and practices etc. However, customers may prefer to rely on informal and personal communication sources from friends/relative customers to clarify the doubts and also to make purchase decisions instead of on formal and organisational sources such as advertising campaigns (Bansal and Voyer, 2000). The present study examines the source from where the bank customers in Kerala collect information about SSBT services. Six sources such as (1) advertisements, (2) bank employees, (3) brochure & booklets, (4) friends & relatives, (5) training & demo and (6) bank website were considered for the purpose of data analysis.

Data Analysis 1-User Profile & Their Perceptions Table-5.34 Source of Collecting SSBT-related Information Advt. Bank Employees Brochures & Booklets Friends & Relatives Training & Demo Bank Website Mean Rank Mean Rank Mean Rank Mean Rank Mean Rank Mean Rank 4.51 1 3.77 4 3.63 5 4.44 2 1.66 6 4.34 3 Table-5.34 shows that the most proximate source of SSBT information to the customers are advertisements, friends and relatives and bank website with means of 4.51, 4.44 and 4.34 respectively. Bank employees (3.77) and brochure & booklets (3.63) are also the vital sources of information apart from the above three main sources. Figure-5.08 It is amazing to note that training & demo is the lowest ranked source of information, with a mean of 1.66.This indicates that training & demo is completely ignored by the banking institutions and the banks are not taking concerted efforts to propagate SSBT services among customers through training & demo. Word of mouth (WOM) has a strong influence among females as they give prime importance to friends & relatives for SSBT-related information. As stated by Chung and Darke, (2006), banks have a good opportunity to increase their market share by developing a positive WOM, especially among female customers. However, WOM has Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala 187

Chapter 5 no influence among the customers having highest experience in traditional banking. Low level SSBT users and those with basic level of computer knowledge consider bank employees as one of the main source of SSBT information. 5.2.6.1-Source of SSBT Information (Sector & Region) Though the main three sources of information as advertisement, friends and relatives and bank website are common in all the three sectors of banks, there is slight variation in ranking. In NGB, bank website is the most preferred source of information on SSBT Services, which is ranked third in other sectors. NGBs are more tech-savvy and they prefer their customers to view bank website to cater to their information requirements. Website is the spokesperson of the NGB and customers are expected to visit bank website to update the information on newly introduced services and also for the change and modifications in the existing services and charges. Table-5.35 Source of Collecting SSBT Information (Sector & Region) Sector & Region Mean Advt. Rank Bank Employees Mean Rank Brochures & Booklets Mean Rank Friends & Relatives Mean Rank Training & Demo Mean Rank Bank Website Mean Rank Sector-wise PSB 4.4 2.0 3.8 4.0 3.5 5.0 4.6 1.0 1.5 6.0 4.3 3.0 OPB 4.8 2.0 3.6 4.0 3.4 5.0 5.0 1.0 1.4 6.0 4.1 3.0 NGB 4.3 2.0 3.6 5.0 3.7 4.0 4.1 3.0 2.0 6.0 4.6 1.0 Region-wise North 4.6 1 3.9 4 3.4 5 4.5 2 1.7 6 4.3 3 Central 4.5 2 3.7 4 3.7 5 4.5 1 1.7 6 4.4 3 South 4.7 1 3.8 4 3.7 5 4.1 3 1.7 6 4.3 2 Customers of three different regions in Kerala have the difference of opinion in the first main three sources of information only such as advertisement, friends & relatives and bank website. Though there is slight change in ranking, the first three significant sources of information on SSBT are same as exhibited in Table-5.34 as advertisement, friends and relatives and bank website. 188 Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala

Data Analysis 1-User Profile & Their Perceptions 5.2.6.2-Source of SSBT Information (Demography) Even though there is slight change in order, the main three sources of SSBT information are same in both Male and Female customers. The main source of SSBT information of male customers is advertisement, where as it is the third source of female customers. Female customers give prime importance to friends & relatives for such information. Therefore, it can be stated that WOM has a strong influence among female customers. As stated by Chung and Darke, (2006), banks have a good opportunity to increase their market share by developing positive WOM among customers. Demographic Profile Gender-wise Advt. Table-5.36 Source of Collecting SSBT Information (Demography) Bank Employees Brochures & Booklets Friends & Relatives Training & Demo Bank Website Mean Rank Mean Rank Mean Rank Mean Rank Mean Rank Mean Rank Male 4.6 1 3.7 5 3.7 4 4.4 2 1.6 6 4.4 3 Female 4.2 3 3.9 4 3.3 5 4.6 1 1.7 6 4.2 2 Age-wise Upto 25 Yrs 4.0 3 4.0 3 3.4 4 4.7 1 1.9 5 4.3 2 26 to 35 Yrs 4.5 2 3.6 4 3.4 5 4.5 1 1.7 6 4.5 3 36 to 45 Yrs 4.6 1 3.9 5 3.9 4 4.4 3 1.5 6 4.4 2 46 to 55 Yrs 4.6 1 3.9 4 3.9 5 4.3 2 1.6 6 4.1 3 Above 55 4.8 1 4.0 2 3.8 4 3.8 3 1.8 5 3.8 4 Qualification-wise Upto UG 4.5 2 5.5 1 3.3 3 5.5 1 1.0 4 4.5 2 Graduate 4.3 3 3.6 5 3.7 4 4.8 1 1.5 6 4.4 2 P. G. /Prof. 4.6 1 3.8 4 3.6 5 4.4 2 1.7 6 4.3 3 Occupation-wise Employees 4.6 1 3.8 4 3.5 5 4.5 2 1.7 6 4.5 3 Business 4.5 1 3.9 4 3.9 5 4.4 2 2.0 6 4.1 3 Professional 4.4 1 3.7 4 3.7 5 4.4 2 1.6 6 4.3 3 Others 4.3 2 4.1 3 3.7 4 4.4 1 1.7 6 3.4 5 Income-wise Upto 20 K 4.6 2 3.8 4 3.2 5 4.9 1 1.5 6 4.2 3 20 K to 40 K 4.4 3 3.7 5 3.8 4 4.4 1 1.8 6 4.4 2 40 K to 60 K 4.6 1 3.7 4 3.4 5 4.5 2 1.6 6 4.5 3 60 K to 80 K 4.6 1 4.1 4 4.2 3 3.8 5 1.6 6 4.3 2 Above 80 K 4.8 1 3.7 4 3.5 5 4.4 2 1.4 6 4.4 3 Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala 189

Chapter 5 Bank customers upto the age of 35 years mainly depend on friends & relatives whereas the other age groups mainly collect SSBT information from advertisement. Three major sources of SSBT information are same in all age groups. The predominant sources of information in the case of upto UG respondents are Employees and friends & relatives, followed by advertisement and bank website. But in the case of graduates and post graduates, the main sources of information are common as exhibited in the Table-5.36. The ranking order of employees, businessmen and professionals are the same as shown in Table-5.34. Though there is slight difference in the order, the main three sources of information in the case of respondents grouped as others are also the same as in employees, businessmen and professionals. Customers with monthly income upto Rs.40,000 mainly collect SSBT information from friends & relatives and the others having income above Rs..40,000, collect such information mainly from advertisement. However, the three major sources of SSBT information of all income groups are same as advertisement, friends & relatives and bank website. 5.2.6.3- Source of SSBT Information (Knowledge & Experience) Advertisement, friends & relatives and bank website are the three major sources of SSBT information to the customers having banking experience upto 25 years. Advertisement is the first source of information for the customers with more than 25 years of experience. But, unlike other groups, brochure & booklets is one of the main sources of SSBT information and they do not give importance to friends & relatives for this purpose. Customers having highest traditional banking experience give less importance to the sources of information from friends & relatives. Therefore, it can be stated that WOM has no influence among the most experienced customers. Customers in different groups, classified on the basis of their level of computer knowledge, receive SSBT information differently. The only common ranking is the last source of information as Training & Demo. Advanced level computer users mainly depend on bank website for the information. 190 Influence of Technology in Banking-A Customer Centric Study with Special Reference to Kerala