Introduction

Digital Divide
Information and technology gap or digital divide, refer to the gap between those who can effectively use new information and communication tools, such as the internet, and those who cannot. In the recent years, the notion of digital divide has been widely researched, and has attracted much debate and speculation for its economic, social and political consequences. Various Existing studies reveal the gap that exists between those who have access to ICT (Information Communication & Technology) and those who do not. The digital divide has many dimensions and can be categorized as global, regional and national. At national level, there is no single divide, but multiple divides: for instance; within countries, between men and women, young and elder, rich and poor and most importantly rural and urban. Digital divide is a substantial asymmetry between two or more populations in the distribution and effective use of information and communication resources. The digital divide has severe implications on the society, if not addressed properly. The factors that have influence in addressing digital divide include: (1) Computer literacy: Those who can operate computers stand a better chance than those who cannot. (2) Tech savvy operations: Those who know how to operate automated teller machine can draw money faster and those who cannot operate need to spend more time at manual counters. (3) Working knowledge of English: Internet hosts more than 80% of the Web pages in English though only 54% of the Internet users are amongst English-speaking people. In India and other developing countries, the disparity is much wider, resulting in a language divide.

Digital divide in Banking Industry

The explosive growth of the internet together with the deregulation of banking industry has transformed the structure and nature of banking. Many banks have adopted E-banking as a delivery channel. This results in traditional banking products being offered in new and effective ways. Internet banking promises multiple benefits for both financial institutions and their clients. Nowadays it becomes essential to have tasks accomplished in a faster and easier way. Hence, greater convenience and accessibility of services are demanded.

Internet Banking services are aimed to be embraced by all consumers who are not necessarily technically-savvy, but not all customer do actually adopt them or use them effectively, still a lot of people are conservative and inertial, and thus preferring the traditional ways of attaining financial services and banking channels they are used to and this is create the digital divide in banking industry. People with access to the Internet do not fully exploit its capabilities. The Banking Industry is committing itself to playing its part in eliminating the Digital Divide that exists in India today. As technology reshapes the financial services industry it is critical all people, including older people and people with disabilities have access to electronic networks such as ATMs, internet and phone banking Electronic Banking becomes one of the most promising approaches for banks to achieve competitive advantage due to improved customer services, lowered operating costs, reduced branch networks, and downsized number of service staff. It is important for banks to find out in what way the digital divide can be construct. The transactional use of the Internet is not as widespread as some of the other uses, such as emailing, networking, and information gathering. Today new businesses continue to come online and existing businesses reconfigure their business models to achieve a competitive advantage, knowledge about the profile of consumers who conduct online transactions versus those who do not would be helpful to managers in developing effective marketing strategies. One of the ways the banks can construct the digital divide with the process of Digital channels acceptance and their effective utilization from the customers. The digital channels for banks can be ATMs, Mobile Banking & Internet Due to delivering banking services through the Digital channels, banks gives customers an opportunity to access accounts and obtain information on financial products and services, pay bills, or transfer money "without visiting a brick-and-mortar institution. Therefore, digital channels are fast, convenient and inexpensive way to access a bank 24 hours a day and seven days a week from anywhere in the world as long as there is an internet connection. On the other hand, Digital channels help banks to become or stay competitive due to better client servicing and costs reduction.

Need of the study

Banks- Reduction in cost Context- Important in the Progressive Knowledge society Representing a new field of investigation

Hypothesis:
HO : There is No Difference In the Usage of Traditional & Digital channel of banking In Agra HA : Traditional Channel is more popularly used than digital channel of banking in Agra HO : Proportion of Banks which are attempting to reduce digital divide is more than that which are not doing. HA : Proportion of Banks which are attempting to reduce digital divide is less than that which are not doing.

Objective of the study

To Evaluate the digital divide Among the Banks customer regarding the digital channels (ATM, Mobile banking, Internet Banking) in Agra Identify The Steps Taken By the Banks to reduce the digital divide

Interview Question from Bank Manager

Question: What are the steps taken by your bank to reduce the digital divide?

Questionnaire Digital Divide in using E-Banking Channels

Rank the Following statement on a Likert scale from 1to5
(1 For least likely and 5 for most likely)

1) I make use of following technology Computer Mobile Mobile with internet Computer/laptop with internet connection 2) I use following e-banking channels for my banking needs: ATMs Mobile Banking Internet Banking 3) I make use of online banking for: Credit card And bill payments Funds transfer & balance enquiry E- tax/ EMIs & managing deemat account Online shopping Recharge & Commercial bill payments

4) I use ATMs for: Cash withdrawn and balance enquiry Credit cards & Bill Payments Funds transfer Mobile Recharge Cheque book/ pass book request 5) I make use of Mobile Banking for: Balance Enquiry Credit card & various bill payments Online shopping Funds Transfer Booking of railway/ movie /airline tickets 6) I find e-banking channels more: Easy Time saving Risky Cost saving complex

7) I Prefer completing my banking transactions through: e-banking channels only Visiting banks frequently for my banking needs Send someone to bank frequently for my banking needs using e-banking channels but once in a while I visit bank Visiting banks frequently and sometimes use e-banking channels

Tick one option you prefer most:

1. Between bank visit & ATM: a) I prefer visiting Banks b) I prefer using ATM 2. Between Bank visit & Mobile Banking a) I prefer visiting banks b) I prefer using Mobile Banking 3. Between Bank visit & Online banking a) I prefer visiting Banks b) I prefer using Online banking 4. Between ATM & online Banking a) I prefer Using ATM b) I prefer Using Online Banking 5. Between ATM & Mobile Banking a) I prefer using ATM b) I prefer using Mobile Banking 6. Between Online Banking & Mobile Banking a) I prefer using online banking b) I prefer using Mobile Banking

Personal Details
Name Gender Age : : M/F : 20-40 40-60 12 or undergraduate Business >60 Graduate Retired PG & above Housewife

Qualification: Below 12 Occupation : Service Bank Account with: ICT Infrastructure: a) Own computer c) Own Mobile

b) Own Internet d) All of the above

References:
Books Ferro Enrico, Dwivedi Kumar Yogesh, Gil-Garcia Ramon, D. Williams Michael Handbook of Research on Overcoming Digital Divides chapter 26 page no. 488 Kothari C.R Research Methodology Websites

Directory of open access journal www.doaj.org Scribd www.scribd.com Author Stream www.authorstream.com Wikipedia www.wikipedia.org Internet world stats http://www.internetworldstats.com/links10.htm Philica http://philica.com/display_article.php?article_id=320 CU Management http://www.cumanagement.org/article/view/id/Banking-Digital-Divide-Linked-to-Age-Groups Banknet india.com http://www.banknetindia.com/atm/functionality1.htm Fabafterfifty.com http://www.fabafterfifty.co.uk/2011/05/19/is-banking-part-of-the-digital-divide-of-thegeneration-gap/