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International Journal of Multidisciplinary Research Vol.2 Issue 1, January 2012, ISSN 2231 5780

A STUDY ON THE CUSTOMER PERCEPTION TOWARDS E-BANKING IN FEROZEPUR DISTRICT

MALIKA RANI*
*Lecture, Lovely Professional Univbersity, Phagwara.

ABSTRACT PURPOSE: This paper brings out the measurement of customer perception towards E-Banking which is becoming very popular and convenient method of dealing with banks now-a-days. EBanking denotes the provision of banking and related service through Extensive use of information technology without direct recourse to the bank by the customer. In this paper consumer perception toward the usefulness and willingness to use e- banking are identified and measured. Customer satisfaction level towards the E- Banking has been identified. DESIGN/METHODOLOGY: A Questionnaire has been designed to collect the data from the respondests. Our survey is undertaken in Ferozepur District (Fazilka, Jalalabad & Ferozepur Cities in particular) as these cities are underdeveloped and very less studies have been conducted there; so to understand the potential of E-banking in this area this study has been conducted. Convenient sampling design has been used. Anova & percentage methods have been used to analyze the data. FINDINGS: The data showed that about 60% people have positive perception about EBanking. In spite of having positive perception about E-banking services only 52.9% respondents are using it frequently. Consumers are using various services provided by their respective banks and the highest used services are the ATM & bill payment across various income groups followed by viewing of the account history. KEYWORDS: Anova, E-Banking, Customer Perception, Women, INTRODUCTION WHAT IS E-BANKING? Electronic banking is one of the truly widespread avatars of E-commerce the world over. Various authors define E-Banking differently but the most definition depicting the meaning and features of E-Banking are as follows: E-Banking is a combination of two, Electronic technology and Banking.
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International Journal of Multidisciplinary Research Vol.2 Issue 1, January 2012, ISSN 2231 5780

Electronic Banking is a process by which a customer performs Transactions electronically without visiting a brick-and-mortar institutions.

banking

E-Banking denotes the provision of banking and related service through Extensive use of information technology without direct recourse to the bank by the customer. THE COMMON E-BANKING SERVICES FAL UNDER FOLLOWING CATEGORIES Electronically bill presentation & payment, Funds transfer between a customer's own checking and savings accounts, or to another customer's account, Investment purchase or sale, Loan applications and transactions; such as repayments, Bank statements, Financial Institution Administration - Support of multiple users having varying levels of authority, Transaction approval process, Wire transfer, ticket booking, Shopping etc. LITERATURE REVIEW Harris (2007) observed that Internet Banking is Becoming "Need to Have" service. E-banking is one of the most recent technological innovations, which is becoming a need for every common man. It uses Internet as a medium for delivery banking services. Today, banking is not limited to branches, where a person goes to bank for withdrawal of cash or request a statement of accounts or to deposit a check. An inquiry or transaction can be handled online without any reference to the branch any time through Internet Banking. Benefits of internet banking include fast speed, convenient, cost effective, all time accessibility, and flexibility. Vardhman (2007) said Online Banking - The Need of the Modern Professional- Internet Banking has been so popular in the countries it has been implemented in so far due to certain reasons. Online Banking makes the regular transactions for a client speedy and time efficient with little or no paperwork involved. There is no need for standing in long ques any more for making a deposit or getting a withdrawal. Banking has turned into a 24/7 service with the bank always available to their client. Kesseven (2007) said that the mostly used E-Banking services are inter account transfer, payment to other personal account, transfer to credit card account, recharge mobile phones among others. Comparing demographic variables of the internet banking users to the non- internet banking users, the analysis reveals that there is no significant difference between the two group of users with respect to age group and the education level of the respondents. Srinivasan (2007) investigated that in specified region of Karnataka, channel convenience, channel control and channel security plays an important role in the selection of channels. Some regions still see people who are struck to branch banking and are not ready for a change in mindset. Across Telebanking was not popular since it was not perceived as a safe and convenient channel. Sayar et. All (2007) discussed that the developments in information technology and the subsequent evolution of internet banking have fundamentally changed the ways in which banks implement their business and consumers conduct their everyday banking activities. The results confirm the influence of internet trust on risk perception and consumer attitudes towards internet banking. . The results confirm the influence of internet trust on risk perception and consumer attitudes towards internet banking. Propensity to trust is a determinant not only for interpersonal relationships but also for trust in technological systems. This is not a representative study. Kamiya (2006) investigated how e- banking can ease your life Internet

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ZENITH
International Journal of Multidisciplinary Research Vol.2 Issue 1, January 2012, ISSN 2231 5780

banking provides us facilities like Bill payment service, fund transfer, credit card customers, railway passing, Investing through internet banking, recharging your prepaid phone, shopping at your fingertips. Indian banks are trying to make your life easier. Not just bill payment, you can make investments, shop or buy tickets and plan a holiday at your fingertips. Srivastva (2006) found that ; (1) perceived risk with online shopping, (2) past experience with online shopping, (3) perceived benefits of online shopping, (4) perceived ease of online shopping, and (5) perceived\ uncertainty of online shopping are the factors that affect the customer perception regarding E-banking. Riquelme (2006) investigated that the majority of customers in the sample are satisfied or very satisfied with the service and online systems attributes. The investigation does not support previous findings that more satisfied customers tend to use more products and services or that using internet banking for a longer period is associated with higher levels of satisfaction. It appears that companies that offer a wide product portfolio and relevant website content accompanied by prompt and courteous response create satisfaction online. Black et.all (2001) conducted the study to know; what are the customer's perceptions about internet banking and what the drivers that drive consumers are. How consumers have accepted internet banking and how to improve the usage rate were the focus of research area in this study. Qualitative exploratory research using questionnaire was applied. 500 respondents were selected for study after initial screening. They were all bank customers. The study revealed that education, gender, income plays an important role in usage of internet banking. . The research corroborated the conceptual framework stating that if skills can be upgraded there will be greater will to use internet banking by consumers. Nachiket (2000) found that that Reserve Bank of India survey revealed that of 46 major banks operating in India, around 50% were either offering Internet banking services at various levels or planned to in the near future. According to a research report,( India Research, Kotak Securities, May 2000.) while in 2001, India's Internet user base was an estimated 9 lakh; it was expected to reach 90 lakh by 2003. Also, while only 1% of these Internet users utilized the Internet banking services in 1998, the Internet banking user base increased to 16.7% by mid- 2000. Meuter et.al (2000) found that customers distinguish the quality of customer interactions that take place during service delivery and the quality of the outcome the customer receives in the service encounter Customers perceive the quality of services of Internet banking based on the performance of online delivery systems not on the processes in which the delivered service is developed and produced. Because customers perceive Internet banking service quality based on relatively standardized outcomes determined by online systems.
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RESEARCH METHODOLOGY DEFINING THE OBJECTIVE OF THE STUDY To study the perception of respondents towards E- banking. To measure the satisfaction level of people towards E-Banking.

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International Journal of Multidisciplinary Research Vol.2 Issue 1, January 2012, ISSN 2231 5780

NULL HYPOTHESIS: There is no relation between family income group and perception regarding E-Banking. RESEARCH DESIGN The research carried out here is Explorative in nature because the data that is already available but mainly regarding the foreign markets. The study intended to conduct this research in the domestic market, which is India and specifically in Ferozepur district and hence data is needed regarding the consumers from this region specifically. Therefore, first hand research is carried out by exploring the consumer characteristics in this region specifically on a sample of around 300 people who have bank accounts in public or private banks. The data has been collected with the help of self administered questionnaire. Judgmental sampling technique has been used. The data so collected has been arranged in a tabular form. Keeping in view the objectives of the study, statistical technique Anova test has been used for data analysis. RESULTS & DISCUSSIONS 1. To study the relation of family income and awareness level of respondents regarding E-Banking. TABLE 1. SHOWING THE RELATIONSHIP FAMILY INCOME AND AWARENESS LEVEL Awareness level about E-Banking Family Income <1.5 lac 1.5-3 lac 3-5 lac >5 lac Total Source: Primary Data From the above table it is clear that 293 (98.7%) respondents are aware about E-Banking. Only 7 respondents not aware about E-banking services. 2. To study how many people are using E-banking services frequently? Yes 60 128 61 44 293 No 1 5 0 1 7 Total 61 133 61 45 300
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International Journal of Multidisciplinary Research Vol.2 Issue 1, January 2012, ISSN 2231 5780

TABLE 2. SHOWING THE NO. OF RESPONDENTS WHO ARE USING THE E-BANKING SERVICES FREQUENTLY Usage of E-Banking Family Income <1.5 lac 1.5-3 lac 3-5 lac >5 lac Total Source: Primary Data Out of 293 respondents who are aware about E-banking Services only 155 (52.9%) are using the E-banking Services. One reason for not using the E-banking services by the other respondents is that people are less educated in these areas. So they hesitate in using computer and internet. 3. To know the opinion of respondents regarding E-Banking is time saving process. TABLE 3. SHOWING THE RESPONDENT`S VIEWS REGARDING TIME SAVING NATURE OF E-BANKING Income Level * E- Banking is Time Saving (Crosstabulation) Count E- Banking is Time Saving
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Yes 27 66 37 25 155

No 33 62 24 19 138

Total 60 128 61 44 293

Highly agreed Income Level <1.5 Lac 1.5-3 Lac 3-5 lac 18 49 25

Agreed 11 25 6

Neutral 11 18 4

Somewhat agree 15 12 15

Highly Disagree 6 29 11

Total 61 133 61

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International Journal of Multidisciplinary Research Vol.2 Issue 1, January 2012, ISSN 2231 5780

> 5 Lac Total

14

12

4 37

45

106 Source: Primary Data

54 12.3%

50

53

300

From above data it is clear that 106+54=160 (53.3%) respondents view E-Banking as time saving process. 12.3% respondents are neutral. 35.3% respondents have negative views. 4. To know the opinion of respondents regarding E-Banking is Easy to use TABLE 4. SHOWING RESPONDENT`S VIEWS REGARDING EASY TO USE NATURE OF E-BANKING Highly Agree 75 Source: Primary Data From the table 4, result is 75+55= 130 (43.3%) respondents said E-Banking is Easy to use. 146 (48.6%) respondents are disagree that E-Banking is easy to use; because these people have less knowledge about computer and information technology; so for them it takes time to use Ebanking services. 5. To know the opinion of respondents regarding E-Banking Provides safety and security TABLE 5. SHOWING RESPONDENT`S VIEWS REGARDING E-BANKING PROVIDES SAFETY AND SECURITY Highly agreed 131 Source: Primary Data From table 5 it is clear that 131+68= 199 (66.3%) respondents said E-banking provides safety & security. Only 18 (65%) respondents have negative views. Others are neutral on this. 6. To know the opinion of respondents regarding E-Banking Provides Up-to-date and accurate Information Agreed 68 Neutral 83 Somewhat agree 17 Highly Disagree 1 Total 300
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Agree 55

Neutral 24

Somewhat agree 76

Highly Disagree 70

Total 300

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International Journal of Multidisciplinary Research Vol.2 Issue 1, January 2012, ISSN 2231 5780

TABLE 6. SHOWING RESPONDENT`S VIEWS REGARDING E-BANKING PROVIDES UP-TO-DATE & ACCURATE INFORMATION Highly agreed 185 Source: Primary Data 185+45= 230 (76.6%) respondents are agreed that E-banking provides Up-to-date And accurate information. There is no respondents who disagreed with this fact. 23.3% respondents are neutral on this because they are not using E-banking services frequently. 7. To know the opinion of respondents that E-Banking is 24 hours available TABLE 7. SHOWING RESPONDENTS VIEWS ON 24 HOURS AVAILABILITY OF EBANKING SERVICES Highly agreed 179 Source: Primary Data 179+21=180 (66.6%) respondents agreed that E-banking is 24 hours available. 90 (30%) respondents disagree that E-Banking is 24 hours available. In these areas mainly used EBanking services are bill payment & ATM; as sometimes there is no cash in the ATM & also there is problem of electricity availability. So these are the reasons that some of the respondents are disagreeing with this statement. Anova test has been applied to test whether the significant variations exists between the views of respondents belonging to different family income group. Table given below shows this relationship:
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Agreed 45

Neutral 70

Somewhat Disagree 0

Highly Disagree 0

Total 300

Agreed 21

Neutral 10

Somewhat agree 54

Highly Disagree 36

Total 300

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International Journal of Multidisciplinary Research Vol.2 Issue 1, January 2012, ISSN 2231 5780

TABLE 8. SHOWING THE RELATIONSHIP Sum of Squares E-Banking is Easy to Use Between Groups Within Groups Total E-Banking Provides safety & Security Between Groups Within Groups Total E-Banking Provides Accurate and Up-toDate information Between Groups Within Groups Total E-Banking is 24 Hours Between available Groups Within Groups Total E-Banking is cost Effective Between Groups Within Groups Total 7.708 707.959 715.667 73.609 1175.921 1249.530 2.715 208.202 210.917 10.609 711.028 721.637 11.285 272.965 284.250 Mean Square 3 296 299 3 296 299 3 296 299 3 296 299 3 296 299 3.762 .922 4.079 .007
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df

F 1.074

Sig. .360

2.569 2.392

24.536 3.973

6.176

.000

.905 .703

1.287

.279

3.536 2.402

1.472

.222

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International Journal of Multidisciplinary Research Vol.2 Issue 1, January 2012, ISSN 2231 5780

E- Bsnking is Time Saving

Between Groups Within Groups Total

.462 699.204 699.667

3 296 299

.154 2.362

.065

.978

Source: Primary Data From the table it is clear that for the statement E-Banking provides safety & security significance level is less than 0.05, it means there is significant variations exists between the views of respondents belonging to different income group. So here our null hypothesis (There is no relation between family income group and perception regarding E-Banking) is rejected. For all other statement null hypothesis is accepted as significance level is greater than 0.05. 8. Type of E-Banking services used by the respondents TABLE 9. SHOWING THE FREQUENTLY USED E-BANKING SERVICES BY THE RESPONDENTS Most often used services ATM Bill Payment Fund Transfer Online Investment Online Shoping Credit card E-Ticketing Bank Statement Source: Primary Data <1.5 Lac 32 23 19 7 11 18 17 11 1.5-3 lac 109 64 52 37 35 38 34 110 3-5 lac 52 43 24 17 21 40 39 42 > 5 lac 41 33 19 18 17 22 18 43 Total 234 163 114 79 84 118 108 206
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International Journal of Multidisciplinary Research Vol.2 Issue 1, January 2012, ISSN 2231 5780

FIGURE 1. SHOWING THE FREQUENTLY USED E-BANKING SERVIVES

From the above table and figure it is clear that respondents are frequently using ATM, Bill payment & getting the bank statement through E-Banking services. FINDINGS AND CONCLUSION 98. 7% people are aware about E-banking Services. 52.9% people are using the E-Banking services frequently. Others are using in a very infrequent manner. 53.3% respondents said that the E-Banking is time saving process. Only 43.3% respondents said that E-Banking is easy to use. 66.3% respondents said E-Banking Provides safety and security. 76.6% respondents said E-Banking provides up-to-date information. 66.6% respondents said that E-banking is 24 hours available. Frequently used E-Banking services are ATM, Bill payments & getting the bank statements. Here it can be concluded that people have around 60 % people have positive perception & are satisfactory with E-Banking except one parameter (E-Banking is easy to use). Still people of these areas are not using all the E-banking services frequently because they less knowledge about computer and internet; so they feel hesitation is using E-banking services.
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International Journal of Multidisciplinary Research Vol.2 Issue 1, January 2012, ISSN 2231 5780

REFERENCES Brain Mantel, (2002) Why dont Consumers Use Electronic Banking Products? Towards a Theory of Obstacles, Incentives, and Opportunities, Journal of Financial Service Research; Vol.22, No. 1 &2, August/October Black N.J. Lockett A., Ennew C. & Winklhofer H. (2001) Adoption of Internet banking, a qualitative study, International Journal of Retail & Distribution Management 29 (8), 390-8. Harris. M (2007) Internet banking is becoming need to have service http://www.sooperarticles.com/business-articles/e-business-articles/internet-banking-becomingneed-have-service-42385.html Kamiya Jani (2006) How e- banking can ease your life http://www.rediff.com/money/2006/nov/17mc.htm Meuter. A (2000), "An empirical investigation of the determinants of user acceptance of internet banking", Journal of Organizational Computing and Electronic Commerce, Vol. 13 No. 2, pp. 123-45 Malhotra, T.D., Electronic Banking and Information Technology in Banks Sultan Chand and Sons, New Delhi, 2008 Nachiket MOR, Head of ICICI's Treasury, in March (2000). Service quality evaluation in internet banking: an empirical study in India, Int. J. Indian Culture and Business Management, Vol. 2, No. 1, pp.3046. Provision of electronic banking in the UK and the republic of Ireland, Journal: International Journal of Bank Marketing; year; 1999 volume; 17 Issue: 2 Page: 72-83 Riquelme. E. H (2009) Internet Banking Customer satisfaction and Online Service Attributes Journal of internet banking and commerce, Vol. 14, no. 2
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Srivatsa H.S, (2006) Consumer perception of online banking http://www.iacis.org/iis/2006_iis/PDFs/Changchit.pdf Sayar and Wolfe (2007) and Eriksson et al.(2008)"Diffusion of internet banking amongst educated consumers in a high income non-OECD country", Journal of Internet Banking and Commerce, Vol. 11 No. 3 Vardhaman Addi (2007) Need of the modern Professionals http://EzineArticles.com/?expert=Addi_Vardhaman

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