Customer Awareness and Preference towards E-Banking Services of Banks (A Study of SBI) Miss. R. Elavarasi II Yr MBA Student, School of Management, SASTRA University, Thanjavur, South India Dr.S.T.Surulivel Senior Assistant Professor, School of Management, SASTRA University, Thanjavur, South India ABSTRACT The purpose of this study is to create customer awareness & to find out what they most preferred e-banking services of banks. The study has been done in Kumbakonam City comprising a sample size of 200.After the data collection, researcher has identified which commercial bank provide better service with regards to e-banking services to customers and also identified satisfaction level of customer view about internet banking website of banks. The result of this analysis is showed that mean age of e-banking users is 0.795and 0.205 respectively and the respondents were mostly men as compared to women. The data analysis shows that age, educational qualification, occupation, income level of customer are significant factor that decide usage of e-banking services of various banks in the study area. KEYWORDS: Banks, Awareness, Preferred E-Banking Services, Satisfaction Level, Occupation, Income level. INTRODUCTION Now a day s information technology plays a vital role in banking sector. Day by day increasing change in technology world, it leads to improve e-banking services of various banks. Traditional branch model of bank is now changing into new form of e-banking services like kiosk marketing machine, coin vending machines of SBI. It provides various advantages to customer of various banks.now-a-days people are educated more than olden days, today human lives becomes machine oriented and they don t have enough time to visit bank branch than ever before. E-Banking means providing banking products and services through electronic delivery channels like ATM,Internet banking,telephone banking and other electronic delivery channels.sbi has over 4500 ATM centres in India approximately. Automated Teller Machine (ATM) is electronic computerised telecommunication device that allows a customer to directly use a secured method of communication to access their bank accounts or make cash withdrawals and other services. Internet banking highly useful to the customer one who have computer with internet connection, they need not visit bank branch for their business transactions. Simply they can transact anywhere, anytime if they have internet connection. By dialing the telebanking number customer can get various facilities like cheque book request, balance inquiry etc. IRJBM www.irjbm.org April - 2014 - Volume No IV Page 59
State bank of India introduced coin vending machine, kiosk marketing machine for their customers to get their services quickly without delay. Apart from these services, SBI provide SBI e-tax, demateservices-pay, State bank mobicash. STATEMENT OF THE PROBLEM SBI introduced ATM facility since the last four-five years. As the use of ATM is increasing day by-day, it is important to study the customer preference towards use of ATM services in Kumbakonam city. This study is one of such an attempt. Identification of information needed to solve the problem,selection or development of instruments for gathering the information,identification of target population and determination of sampling procedure,design of procedure for information collection,collection of information,analysis of information,generalizations and/or predictions. OBJECTIVES OF THE RESEARCH To evaluate the awareness of E-Banking among the customers of SBI. To measure the customer satisfaction in E-Banking services provided by SBI. To study the most preferred E-Banking service offered by SBI To know which age group of customers is using different e-banking facilities. To know the cause why customers are not using internet banking. LIMITATION OF THE STUDY Some respondents were hesitating to give true responses. The data was collected within 1 month time period. The inferences apply only to the respondents of Kumbakonam City and are not applicable to any other place and cannot be generalized. RESEARCH METHODOLOGY This research follows the survey research methodology based on previous research in related area;a questionnaire was constructed to study the customer preference towards e-banking services of banks. After pilot testing the questionnaire was administered to 200 persons who have account in SBI.Here we take minimum age as 20 years. The data was obtained through the use of structured questionnaire and convenience sampling.the data were analysed with percentage method, frequencies and correlation, chi-square tests.charts and tables are also prepared. REVIEW LITERATURE Abou-Robich, Moutaz (2005)studied how to analyse comfort levels and attitude of users towards online banking facilities. The findings resulted that there is a correlation between attitude towards e-banking and feeling of security with regard to their demographic variables. Isern, Jennifer (2008) pointed out that a positive relationship between the level of financial infrastructure and the level of competition and a negative relationship between the degree of state ownership in a banking sector and the level of competition. Reynolds, John (2007) said that 2006 e-banking technology services industry customer loyalty survey data results in order to improve marketing resource allocation for corporate e- banking products and services. IRJBM www.irjbm.org April - 2014 - Volume No IV Page 60
Huang, Haibo (2005) reveals that the successful introduction electronic money and e- banking services depends mainly on people acceptance.the major finding is that although e- banking customers more or less have some common characteristics, they differ across different types of e-banking services. Taft, Jeanette (2007) pointed out that Technology Acceptance Model (TAM) as applied to a specific type of technology: e-banking.they suggested that e-banking prior training, perceived ease of use of e-banking technology. Jeon, Kiyong (2014) have said that consumer prefer larger banks in U.S.Because they has to reduce their transportation cost by way of larger banks have multiple ATM centre s across the country. Lee, Jihyun (2003) examined that to identify whether customer intention affecting to use online financial services.the effects of attitude toward behaviour,subjective norm were examined.demographic variables were included as control variables. Ding, Xin (2007) reveals that consider for research consumer behaviour on internet in the last years.the findings conclude that customer behaviour from self-service, Service quality and experience design perspectives. Wamalwa, Tom (2006) said that whether internet banking strategies were aligned with the bank s core business based or not identified. Featherman, MauricioSanchez (2002) studied that perceived risk inhibited consumer adoption intentions as well as perception of the usability, usefulness of online payment. Bayles, MichelleEsther (2004) have said that investigating factor contribute their decision to bank online, frequency of banking activities. Massad, Nelson (2003) contributed at a theoretical level by providing deeper understanding of the transactions between customers and service providers. Yee Yen, Yuen (2011) have said that comparison between factors affecting consumer acceptance of internet banking services between developed and developing countries. Siregar, DonaD (2004) investigate that the relative importance of different factors influence bank decision on going public over consolidating with other banking organisations.many banks experienced consolidation through merger acquisitions (M&A). Bauer, Keldon.J (2002) examined that bankers and consumers are both interested in the potential for internet banking. Thefindings show that banks too have been developing their infrastructure to address what they perceive as a growing demand for online services. Yousafzai, Shumaila Yakub Khan (2005)has said that to develop aconceptual model that determines how intentions towards the use of internet banking are formed and to what extent they are related to the actual use of internet banking. Ubadineke, Francis.N (2009) indicated that advances ininformation technology and telecommunications are resulting in new delivery channels for bank products and services in the developing countries. IRJBM www.irjbm.org April - 2014 - Volume No IV Page 61
Nor, KhalilMd (2005) results indicate that the model provides a good understanding of factors that influence the intention to use internet banking. Chen,Lisa(2012) studied that will increase our understanding in financial,accounting,management of information system,business administration and decision making related to the adoption of Internet banking in Mainland China. Adham, KhairulAkmaliah (2000) indicated that Malaysian banks could be grouped into two in regard to their reasons for adopting the electronic delivery systems. DATA ANALYSIS& INTERPRETATION In the present scenario preference among customer for e-banking services of banks is differ from one person to other person, so to understand preference of different customer the researcher have used various dimension such as usage of e-banking service,most preferred service, convenience,security, accessibility,satisfaction level of customer using internet banking. Table 1- FREQUENCY ANALYSIS OF DEMOGRAPHIC VARIABLES Variables Category Frequency Percentage frequency Male 159 79.5 Gender Female 41 20.5 Age Educational Qualification 20-25 41 20.5 26-35 67 33.5 36-45 67 33.5 46-60 20 10 Above 60 5 2.5 Up to SSLC 10 5 UG 70 35 PG 70 35 Occupation Source: Primary data Professional 30 15 Other 20 10 Business 20 10 Employee 70 35 Professional 30 15 Student 70 35 Other 10 5 Above table 1- shows that most of the respondents are men (79.5%), they are using e-banking service in research area as compared to women in the city. On a Percentage basis, 26-35 age group falls on 33.5%, similarly 36-45 age group falls on the same percentage.35% of respondents qualification is UG and also same percentage of qualification is PG too. Out of IRJBM www.irjbm.org April - 2014 - Volume No IV Page 62
200 respondents, 35% of them are employee and as well as student and remaining fall under other category. Table 2- Relationship between Occupation & Their Use of E-Banking Services Correlation Occupation E-banking services Occupation 1 0.086 Above table 2 shows that there is a weak relationship between occupation and use of E- Banking services of SBI. This means that changes in occupation are not correlated with changes in use of E-Banking services of SBI. If r = 0.01, finally it conclude that these variables were not strongly correlated. Table 3- Correlation between Convenience and Ease of Use in Banking Website Correlation Rate convenience as areason for opening account View about ease of use in bank website Rate convenience as a reason for opening account 1 0.368 Above table 3 shows that there is a strong relationship between convenience as a reason for opening internet account and view about ease of use in bank website.it clearly shows that changes in convenience are correlated with changes in view about ease of use in bank website.it concludes that these variables were strongly correlated. Chart 1- Frequency Analysis of Most Preferred E-Banking Services ofsbi IRJBM www.irjbm.org April - 2014 - Volume No IV Page 63
Above chart -1 indicate that 42% of respondents were prefer ATM &Online banking for their day-to-day activities. 23% of them were preferred using ATM as their next preference in various e-banking channels. 17% of the respondents were preferred mobile banking because new applications are introduced day by day by the information technology world.so it is highly useful to them to transact fraction of second using new mobile banking applications.sms banking preferred by 4% of the respondents. Chart 2- Reasons for Non-Adoption of Internet Banking By the Customers Above chart 2 shows the results that main reason for not opening an internet bank account by the customers of SBI. Based on this study finds that major reason that literacy level is low as compared to other cities because they depend on mainly agriculture business in this area and also customers of State bank of India not aware of internet banking facilities and they don t know how to use it. Table 3- Based on Age Group Preference one-banking Facilities ofbanks. Age Preference on e-banking facilities 20-25 80 26-35 50 36-45 30 46-60 22 Above 60 22 Source: Primary data IRJBM www.irjbm.org April - 2014 - Volume No IV Page 64
Chart 3 Based on age group preference on e-banking facilities Above chart 3- resulted that 80% of the respondents under 20-25 age group category were prefer ATM& Online banking for their financial transactions.26-35 age group were prefer ATM&Mobile banking. 30% of the respondent under 36-45 were prefer ATM.Remaining 46-60 age group and Above 60 age group category prefer ATM,Sms banking, Telephone banking, other etc.. Table 4- Customer Satisfaction Level in Internet Banking Website Variables Mean Rank Chi-square significance at 5%level Page setup/menu flow 1.22 Ease of use/navigation 1.45 Speed of page loading 1.57 Content 1.39 90.440 Df=3 P=0.000 Variety of transactions 1.22 Visual design 1.70 Above table 4 shows that outcome of satisfaction level of customer using bank website. It clearly resulted that significant value = 0.000,so null hypothesis(h0) is accepted, there is a significant relationship between view about internet banking website and customer satisfaction. IRJBM www.irjbm.org April - 2014 - Volume No IV Page 65
Table 5- Relationship between factors as a reason for opening internet bank account. Variables chi-square value Significant value Results Convenience 102 0.000 H0 is accepted Ease of use 237 0.000 H0 is accepted Security 267 0.000 H0 is accepted Accessibility 262 0.000 H0 is accepted Bank service 274 0.000 H0 is accepted User friendliness 135 0.000 H0 is accepted Customer relations 97 0.000 H0 is accepted Account security 527 0.000 H0 is accepted Online shopping 63 0.000 H0 is accepted Above table 5 shows that outcome of relationship between various factors like convenience, accessibility, ease of use, security, etc are important reason for opening an internet bank account. Based on this analysis find that there is a significant relationship between reason of opening bank account and security of transaction, ease of use, accessibility, bank service online shopping, and customerrelations significant relationship between them. FINDINGS, RECOMMENDATIONS & CONCLUSION It is found from this study that younger generation were using electronic banking services are more as compared to older generation because of new innovation in information technology and their adoption level is high in e-banking.above 60 age group category were using e- banking services are less than others.risk is one of the factor customer were consider while opening an internet bank account.they didn t feel secure in the internet banking. The respondents preferred ATM, Online banking, Mobile banking, Sms banking for their financial transactions. From customer point of view that private bank provide better services as compared to public banks, But for secured transaction public banks will be preferred by most of the respondents. On the basis of data analysis and interpretations, the following suggestions can be made, To increase awareness among people, SBI should advertise and conduct special awareness programs to make E-Banking services more popular among customers.sbi should increase ATM centres nearby customer place like cinema theatres, markets etc.most of the respondents like E-banking services provided by SBI.But they hesitate to use because they don t know how to use it in correct manner. SBI should try to give proper training or other solution to solve this problem and it should try to improve their service level to face the stiff competition given by other commercial banks. E-banking technology is highly useful to customers as well as banks and other organisations like government organsiations.to increase productivity, efficiency, service quality of banks, expansion of banks globally e-banking is major important of all commercial banks to adopt in their countries as well as their customers. SBI should try to maintain proper system of maintenance for internet banking. IRJBM www.irjbm.org April - 2014 - Volume No IV Page 66
REFERENCES 1. Abou-Robieh, Moutaz A study of e-banking security perceptions and customer satisfaction issues.(2005) 2. Ding, Xin Three studies of service operations and customer experience design in online services (2007). 3. Featherman, Mauricio Sanchez Evaluative criteria and user acceptance of Internetbased financial transaction processing systems (2002). 4. Huang,Haibo Essays in electronic money and banking(2005) 5. Isern,Jennifer A cross-country analysis of the effects of e-banking and financial infrastructure on financial sector competition: A Schumpeterian shift?(2008) 6. Jeon, Kiyong Essayson banking industry: ATM(Automatic Teller Machine)(2014) 7. Lee, Jihyun Factors affecting intention to use online financial services (2003). 8. Reynolds, John A retrospective data examination of customer loyalty in the e- banking technology services industry: Strategies for new successes(2007) 9. Taft, Jeanette An examination of the antecedents of electronic banking technology acceptance and use(2007) 10. Wamalwa, Tom The impact of internet banking on banks: A descriptive and evaluative case study of a large United states bank (2006). IRJBM www.irjbm.org April - 2014 - Volume No IV Page 67