A Comparative Study Of Customer Satisfaction from IBanking Services of HDFC Bank And ICICI Bank

A Project
Submitted in partial fulfillment of the requirements
for the award of the Degree of

INTEGRATED MASTERS OF BUSINESS ADMINISTRATION

BY

MANO ASHISH TRIPATHI

IMBA/3009/2011

DEPARTMENT OF MANAGEMENT
BIRLA INSTITUTE OF TECHNOLOGY MESRA-835215, RANCHIALLAHABAD CAMPUS
2016
1

DECLARATION CERTIFICATE

This is to certify that the work presented in the project titled A

Comparative study of Customer Satisfaction from I-banking
Services of HDFC Bank and ICICI Bank in partial fulfillment of the
requirement for the award of Degree of Integrates Master of Business
Administration of Birla Institute of Technology Mesra, Ranchi is an
authentic work carried out under my supervision and guidance.
To the best of my knowledge, the content of this project does not form a
basis for the award of any previous Degree to any one else.

Date:

Dr. A.K Mahanti

Department of Management
Birla Institute of Technology
Mesra, Ranchi- Allahabad
Campus

CERTIFICATE OF APPROVAL
The foregoing project entitled A Comparative study of Customer
Satisfaction from I-banking Services of HDFC Bank and ICICI
Bank, is hereby approved as a creditable study of research topic and
has been presented in satisfactory manner to warrant its acceptance as
prerequisite to the degree for which it has been submitted.
It is understood that by this approval, the undersigned do not necessarily
endorse any conclusion drawn or opinion expressed therein, but
approve the project for the purpose for which it is submitted.

(Internal Examiner)

(External Examiner)

(Director)

ACKNOWLEDGEMENT

I take this opportunity to express my deep sense of gratitude to my guide Dr

A.K Mahanti for giving me this opportunity to undertake this project. Every project is
a blend of efforts and learning on the part of students and knowledge and
experience of the experts in their respective fields. I deeply express my sincere
thanks to my guide for providing valuable suggestions.

I would also like to express my gratitude to my Teachers who were source of

inspiration , information and suggestions during due course of this project.

Also i would like thanks all the respondents who took out their valuable time
and enabling me to undertake this study successfully.

Mano Ashish Tripathi

IMBA/3009/2011

EXECUTIVE SUMMARY

My project aims at Comparative study on Customer Perception Towards Ibanking With Respect To HDFC and ICICI Bank. In this research study 50
respondents from both the Banks were taken,
the questionnaire we conclude that even

After analyzing the results of

now a days banks are providing

innovative services day by day, but still there are a lot of customers who are
even not aware about these services, the usage of these services is a
different issue. Today Banks are using huge amount of funds to provide
differentiated services to their customers from their competitors like by using
new technology or

by providing new innovative services like internet banking,

mobile banking, and many others but still they are focusing only to provide
these services to the customers and not focusing to make these services
customer accessible by making them aware about it. Today

most

of

the

organizations are focusing on the promotion- element of marketing mix, which

is providing financial as well as non financial benefits like Brand image. The
facility that was availed by most of the people

at these

Banks was that

of

ATM/Debit Cards. The most important channel that aware customer most regarding
the innovative services were family and friends rather than bank itself.

TABLE OF CONTENTS

Introduction to HDFC and ICICI Banks .............................................7-12

Research Methodology......................................................................13-16

Data Analysis and Interpretation........................................................17-36

Findings of Study................................................................................37

Conclusion..........................................................................................38

Recommendations..............................................................................39-41

Bibliography........................................................................................42

Appendix.............................................................................................43-45

Chapter 1
Introduction to HDFC Bank and ICICI Bank
HDFC Bank:

The Housing Development Finance Corporation Limited (HDFC) was amongst

the first to receive an 'in principle' approval from the Reserve Bank of India (RBI)
to set up a bank in the private sector, as part of the RBI's liberalization of
the Indian Banking Industry in 1994. The bank was incorporated in August 1994
in the name of 'HDFC Bank Limited', with its registered office in Mumbai,
India. HDFC Bank commenced operations as a Scheduled Commercial Bank in
January 1995.
Currently HDFC Bank has 4281 branches, 11843 ATMs, in 2464 cities in India,
and all branches of the bank are

linked on an online real-time basis. The

bank offers many innovative products & service s to individuals, corporate,

trusts,

governments partnerships, financial institutions, mutual funds, insurance

companies.
It is a path breaker in the Indian banking sector. In 2007 HDFC Bank
acquired Centurion Bank of Punjab .

Business Profile :
HDFC Bank caters to a wide range of banking services covering commercial and
investment banking on the wholesale side and transactional/branch banking on the
retail side. The bank has three key business areas:
Wholesale Banking Services : The Bank's target market is primarily large, blue
chip manufacturing companies in the Indian corporate sector and to a lesser
extent, emerging midsized corporate. For these corporate, the Bank provides a wide
range of commercial and transactional banking services, including working
capital finance, trade services, transactional services, cash management, etc.
The bank is also a leading provider of structured solutions that combine cash'
7

management services with vendor and distributor finance for facilitating superior
supply chain management for its corporate customers.
Retail Banking Services: The objective of the Retail Bank is to provide its
target market customers a full range of financial products and banking services,
giving the customer a one stop window for all his/her banking requirements.
The products are backed by world-class service and delivered to the
customers through the growing branch network, as well as through alternative
delivery channels like ATMs, Phone Banking, Net Banking and Mobile Banking.

The HDFC Bank Preferred program for high net worth individuals, the HDFC
Bank Plus and the Investment Advisory Services programs have been designed
keeping in mind needs of customers who seek distinct financial solutions,
information and advice on various investment avenues. The Bank also has a
wide array of retail loan products including Auto Loans, Loans against marketable
securities, Personal Loans and Loans for Two-wheelers. Its also a leading provider
of Depository Services to retail customers, offering customers the facility to hold
their investments in electronic form. HDFC Bank was the first bank in India to
launch an International Debit Card in association with VISA (VISA Electron) and
issues the MasterCard Maestro debit card as well. The debit card allows the
user to directly debit his account at the point of purchase at a merchant
establishment, in India and overseas. The Bank launched its credit card in
association with VISA in November 2001. The Bank is also one of the leading
players in the "merchant acquiring" business with over 25,000 Point-of-sale
(POS) terminals for debit / credit cards acceptance at merchant establishments.
The Bank is well positioned as a leader in various net-based B2C opportunities
including a wide range of Internet banking services for Fixed Deposits, Loans,
Bill Payments., etc.
Treasury Operations: Within this business, the bank has three main product areasForeign Exchange and Derivatives, Local Currency Money Market & Debt
Securities, and Equities With the liberalization of the financial markets in
India, corporate need more sophisticated risk management information, advice and
product structures, These and fine pricing on various treasury products are
provided through the bank's Treasury team. To comply with statutory reserve
requirements, the bank is required to hold 25% of its deposits in government

securities. The Treasury business is responsible for managing the returns and
market risk on this investment portfolio

HDFC BANK E-SERVICES

Net banking: Net Banking

is

HDFC Bank's

Internet Banking service.

Providing up-to-the-second account information, Net Banking lets you

manage your account from the comfort of your mouse - anytime, anywhere.
Customer can request for Third Party Demand Drafts by logging website.
Online Credit Cards: One can access Credit Card account from home
or office or even while traveling. With Net Banking one can view his card
account information and do much more just at the click of a button.
Mobile banking : Customer can use his mobile for performing banking
transactions such as fund transfers, balance details, cheque book request.
Banking Through IVRS: HDFC supports banking through IVRS mode. It
offers services such as fund transfers, Opening FD account, requesting
Cheque books.

ICICI Bank:
ICICI Bank is India's largest private sector bank with total assets of Rs. 6,461.29
billion (US$ 103 billion) at March 31, 2015 and profit after tax Rs. 111.75 billion (US$
1,788 million) for the year ended March 31, 2015. ICICI Bank currently has a
network of 4,450 Branches and 13,886 ATM's across India.

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial
institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank
was reduced to 46% through a public offering of shares in India in fiscal 1998, an
equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's
acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001,
and secondary market sales by ICICI to institutional investors in fiscal 2001 and
fiscal 2002. ICICI was formed in 1955 at the initiative of the World Bank, the
Government of India and representatives of Indian industry. The principal objective
was to create a development financial institution for providing medium-term and
long-term project financing to Indian businesses.
In the 1990s, ICICI transformed its business from a development financial institution
offering only project finance to a diversified financial services group offering a wide
variety of products and services, both directly and through a number of subsidiaries
and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and
the first bank or financial institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the

emerging competitive scenario in the Indian banking industry, and the move towards
universal banking, the managements of ICICI and ICICI Bank formed the view that
the merger of ICICI with ICICI Bank would be the optimal strategic alternative for
both entities, and would create the optimal legal structure for the ICICI group's
universal banking strategy. The merger would enhance value for ICICI shareholders
through the merged entity's access to low-cost deposits, greater opportunities for
earning fee-based income and the ability to participate in the payments system and
provide transaction-banking services. The merger would enhance value for ICICI
Bank shareholders through a large capital base and scale of operations, seamless
access to ICICI's strong corporate relationships built up over five decades, entry into
new business segments, higher market share in various business segments,
particularly fee-based services, and access to the vast talent pool of ICICI and its
subsidiaries.
10

In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the
merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI
Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI
Bank. The merger was approved by shareholders of ICICI and ICICI Bank in
January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by
the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002.
Consequent to the merger, the ICICI group's financing and banking operations, both
wholesale and retail, have been integrated in a single entity.

ICICI BANK E- SERVICES

Internet banking: ICICI net banking / internet banking offers various facilities and
has been registering increasing number of customers as well. Now all mportant
transactions can be done online and are just a click away as well. Since the bank
offers many facilities as a result it has become one of the preferred choices of the
people .
Mobile Banking: One can do banking operations sitting anywhere, anytime. It is
discreet, personalized and on customer 's phone directly offering fund transfers and
many other banking services.
IVRS Banking: It answers to all banking needs from users phone. ICICI Bank's
Instant Voice Response (IVR) Banking is free of charge, fully automated and at the
same time user-friendly. Just having an ATM PIN for your account and credit card
ensures that your transactions are secure.

Saving A/C

Credit cards

Demat

Bonds

11

ICICI Pockets APP:

ICICI Bank's Pockets is a breakthrough innovation in banking that allows you
to transfer funds, make your credit card payments, pay utility bills, check your
balance and do lots more, for free. So why wait anymore. Just download the
Mobile application on your phone by logging into playstore. ICICI Bank brings to
you the 2nd generation pocket app that has newer features, smarter interface,
quicker navigation and enhanced functionality. ICICI Bank's pocket is answer to
banking on the move. The next generation Mobile app is key to a faster, easier
and simplified banking service.

Services available with Pockets App:

Payment of utility bills and credit card bills

Transfer of funds to any bank account

Payment of insurance premium

Placement of service request such us ordering of cheque books, bank

account statements, cheque status and balance enquiry.

Virtual Credit Card.

Demat Trading.

Loan A/c Management.

12

Chapter 2
Research Methodology

1. TITLE : A Comparative study of Customer Satisfaction from i-banking Services

of HDFC Bank and ICICI Bank.

2. OBJECTIVES OF THE STUDY: To study about the factors that affects

the customer perception towards i- banking of HDFC and ICICI bank.
To know about the current and future prospects of i-Banking to the
customers.
To find out the major problems faced by the customers while using i-banking
services.

3. TYPE OF RESEARCH: This study is DESCRIPTIVE in nature. It helps

in breaking vague problem into smaller and precise problem and emphasizes
on discovering of new ideas and insights.

4. RESEARCH DESIGN : Research design constitutes the blue print for the
collection, measurement and analysis of data. The present study seeks to
identify the extent of preferences of i- Banking over traditional banking . The
research design is descriptive in nature. The research has been conducted on
customers of HDFC and ICICI Bank in the city of Allahabad. For the selection
of the sample convenient sampling method was adopted and an attempt has
been made to include all the age groups and gender of every class.

5. RESEARCH INSTRUMENT : The instrument used for gathering data was

questionnaire. To get further insight in to the research problem, interview regarding
their banking practices too

was made. This was done

to crosscheck the

authenticity of the data provided. To supplement the primary data and to

facilitate the process of drawing inference, secondary data was collected from
published sources like magazines, journals, newspapers etc.
13

6. SAMPLE SIZE: It indicates the numbers of people to be surveyed.

Though large samples give more reliable results than small samples but due
to constraint of time and money, the sample size was

restricted to 42

respondents. The respondents belong to different income group and profession.

7. SAMPLING UNIT : It defines the target population that will be sampled

i.e. it answers who is to be surveyed. In this study, the sampling unit is the
customers of ICICI bank and HDFC bank Naini ,Allahabad.

TOOLS AND TECHNIQUES OF ANALYSIS:

The data

so collected will be analyzed through the application of statistical

techniques, such as bar graphs and pie charts.

DATA COLLECTION
Keeping in view the nature of requirements of the study to collect all the
relevant information regarding the extent of awareness of the customers using
i-banking facilities offered by ICICI and HDFC bank, direct personal interview
method with structured questionnaire was adopted for the collection of primary
data. Secondary data has been collected through the various internet sites by
surfing on Interne t and from the records available with the bank.

14

SOURCES OF DATA
Following are the methods of sources of data:

SECONDARY DATA:
Articles on i-Banking taken from journals, magazines published from time to time.
Through internet.

PRIMARY DATA:
Questionnaire

was

used

to

collect

primary

data from

respondents.

The

questionnaire was structured type and contained questions relating to different

dimensions of i- banking preferences among customers

such as level of

usage, factors influencing the usage of i-banking services, benefits accruing to

the users of i-banking services, problems encountered. An attempt was also
made to elicit reasons for its non-usage. The questions included in the
questionnaire were open-ended, dichotomous and offering multiple choice.

NEED OF THE STUDY

Promoting i-banking services in banking industry.
Customer perception will be taken into consideration about the internet
banking.

HYPOTHESIS
Ease of Use
Ho: Ease of use does not influence the use of i- Banking services.
H1: Ease of use does influence the use of i-Banking services.

15

Accessibility and Responsiveness

Ho: Accessibility and Responsiveness

does not influence the use of i Banking

services.
H1: Accessibility and Responsiveness does influence the use of i- Banking services.

SCOPE OF THE STUDY

Area is restricted to only Allahabad because due to the time constraint and
not able to visit all the branches in other cities or states.
All the classes of the customers were taken into consideration.
This study covers i-Banking services only.
Data is directly collected from Consumers .

Limitation of Study
Every research is conducted under some constraints and this research is not
an exception. Limitations of this study are as follows: As a research is based on a sample, therefore, the findings may not reveal the
factual information about the research problem, though an utmost care has been
taken to select a truly representative sample.
There may be some bias in the responses of the respondents which cannot
be ruled out fully.
Sudden change in the i- banking practices during the course of research can
affect the results.
The study is limited to area of Allahabad only.
The sample size of only 42 was taken from the large population for the
purpose of study, so there can be difference between results of sample from
total population.
People were reluctant to go in to details because of their busy schedules.
16

Chapter 3
Data Analysis and Interpretation
Profile of Respondents

Gender Composition
Gender

Number of Respondents

Male

32

Female

10

Total

42

35
30
25
20
15
10
5
0
Males

Females

Interpretation: The result shows that majority of respondents i.e. 76% are males
are using i-banking while only 24% of female who are using i-banking services.
Female customers are less acquainted with internet and i-banking services.

17

 Age Profile
Age Groups

Total No. of Respondents

Below 20

21-30

15

31-40

15

41-50

Total

42

16

14
12
10
8
6
4
2
0
Below 20 Years

21-30 Years

31-40 Years

41-50 Years

Interpretation: The result shows that majority of respondents i.e. 70% falls under
the age group of 21-30 years and under the age group of 31-40 years .it shows that
i-banking is mainly used by young and middle age group.

18

 Occupation Profile

OCCUPATION

Number of Respondents

Government

Private

14

Self Employed

22

Others

TOTAL

42

25

20

15

10

0
Government Job

Private Job

Self Employed

Others

Interpretation:
The result shows that majority of respondents that are using i-banking are Self
Employed i.e. 52%. And 33% users are
Government employees.

19

working in private sector 9% are

 Income Profile
Income Group ( Per Month/In Rupees)

Number of Respondents

Up to 10,000

10,000-25,000

25,000-50,000

14

More than 50,000

19

TOTAL

42

20
18
16
14
12
10
8
6
4
2
0
Upto 10,000

10,000-25,000

25,000-50,000

More Than 50,000

Interpretation: The result of this study shows that 45% of the respondents who are
using i-banking fall under the income category of more than 50,000 and 33% falls
under the income category of 25,000 to 50,000 and 16% % falls under the income
category of 10,000-25,000 .

20

Q.1)Do you think I-banking is a necessity of Modern Lifestyle?

Response

Number of respondents

Yes

37

No

TOTAL

42

40
35
30
25
20
15
10
5
0
Yes

No

Interpretation:
This survey indicates that 88% of respondents feel that internet banking is
necessary in modern scenario.

21

Q.2) In which Bank you have your Bank account?

Name of the Bank

Number of respondents

HDFC only

24

ICICI only

18

TOTAL

42

20
18
16
14
12
10
8
6

4
2

0
HDFC Bank

ICICI Bank

Interpretation: According to this study majority of respondents i.e. 57% have their
accounts HDFC bank only while 43 % respondents have account in ICICI bank only.

22

Q.3) Do you were aware of I-banking Services while opening Bank Accounts?
Response

Number of respondents

Yes

31

No

11

TOTAL

42

35
30
25
20
15
10
5
0
Yes

NO

Interpretation: According to this survey majority of respondents i.e.73 % were

aware about internet banking services provided by their bank and 27% of
respondents were not aware about the i-banking services provided by their bank at
the time of opening up of their account because of lack of awareness and some are
using banking services from last so many years at that time bank was not offering ibanking service so they were not aware at that time but now they are aware.

23

Q.5 Which banks Internet banking facility are you availing?

Response

Number of respondents

HDFC only

24

ICICI only

18

Total

42

30

25
20
15
10
5
0
HDFC only

ICICI only

Interpretation : It indicates that 57% of respondents use HDFC net banking while
43% of respondent uses ICICI internet banking.

24

Q6) Do you find your bank website user friendly ?

Response from HDFC Users

Number of respondents

Yes

16

No

08

Response from ICICI Users

Yes

10

No

08

18
16
14
12
10

Yes

No

6
4
2
0
HDFC bank

ICICI Bank

Interpretation : According to this survey 75% of HDFC bank users opine that their
internet banking website is user friendly while only 55% of ICICI bank user considers
their bank website user friendly.

25

Q7) Are you satisfied with with responsiveness of internet banking services?

Response from HDFC User

Yes
No
Response from ICICI User
Yes
No

Number of respondents
20
4
8
10

25

20

15
Yes

No

10

0
HDFC Bank

ICICI Bank

Interpretation: It indicates that 83% of HDFC Bank users considers their service
responsive while only 44% of ICICI Bank user consider their service responsive.

26

Q8) Are you satisfied by the security measures taken by your service
provider?

Response from HDFC User

Yes
No
Response from ICICI User
Yes
No

Number of respondents
16
8
11
7

18
16
14
12
10

Yes

No

6
4
2
0
HDFC Bank

ICICI Bank

Interpretation: According to the survey 66% of HDFC users are satisfied by their
bank security measures while 61% of ICICI Banks user are satisfied with their
security measures.
27

Q9.) Do you receive your OTP (one time password) within time?

Response from HDFC User

Yes
No
Response from ICICI User
Yes
No

Number of respondents
22
2
6
12

25

20

15
Yes
No

10

0
HDFC Bank

ICICI Bank

Interpretation : This indicates that nearly all customers of HDFC receives OTP on
time while 66% of ICICI users lag in timely reception of OTP.

28

Q.10) Do you feel that fund transfers take place in promised time while
transferring to third party?

Response from HDFC User

Yes
No
Response from ICICI User
Yes
No

Number of respondents
14
10
5
13

16
14
12

10
Yes

No
6
4
2

0
HDFC Bank

ICICI Bank

Interpretation : Majority of HDFC users believe that third party transfers takes place
in promised time while majority of ICICI users feel that it does not take place in
promised time.

29

Q.11) Are you satisfied with the quickness of Webpage?

Response from HDFC User

Yes
No
Response from ICICI User
Yes
No

Number of respondents
22
2
14
4

25

20

15
Yes
No

10

0
HDFC Bank

ICICI Bank

Interpretation: It indicates that Majority of Customers of both Banks are satisfied

with quickness of web page of internet banking.

30

Q.11) Does your net banking provider has the ability to solve customer
problem by promptly guiding them on real time basis?

Response from HDFC User

Yes
No
Response from ICICI User
Yes
No

Number of respondents
17
7
11
7

18
16
14
12
10

Yes

No

6
4
2
0
HDFC Bank

ICICI Bank

Interpretation: It indicates that neraly 70% of HDFC customers and 60% of ICICI
bank consumers feels that their bank has the capability to guide customers to
resolve their problems.Here HDFC banks leads over ICICI bank.

31

Q.12 Do you think that your bank is not reasonable enough in tariffs over
internet banking?

Response from HDFC User

Yes
No
Response from ICICI User
Yes
No

Number of respondents
13
11
12
6

14
12
10
8
Yes
6

No

4
2
0
HDFC Bank

ICICI Bank

Interpretation: Customers of ICICI bank in majority feel that they their bank
charges more than reasonable price while 45 % of HDFC users have feeling that
their bank is reasonable enough in pricing ,still majority of 55% of respondents
feeling bank is not fair.

32

Q.13)
Do you think that your service provider is providing accurate
transactions and provides adequate info on each transaction?

Response from HDFC user

Number of respondents

Yes

19

No

Response from ICICI User

Yes

15

No

20
18
16
14
12
10

Yes

No

6
4
2
0
HDFC Bank

ICICI Bank

Interpretation: Survey reveals that majority of ICICI users and HDFC user feel that
their service provider is providing enough info on transactions. It also reveals that
ICICI users are more satisfied than HDFC users, having 83% and 79% approvals
respectively.

33

Q.14) Do you feel that your bank is taking care of your Privacy and
Confidentiality?

Response from HDFC User

Yes

Number of respondents
21

No

Response from ICICI User

Yes

14

No

25

20

15
Yes
No

10

0
HDFC Bank

ICICI Bank

Interpretation: Here it is found that majority of users of both bank feel that their
bank is taking care of their privacy and confidentiality.

34

Q.15) To what extent you

service provider?

are satisfied with overall performance of your

HDFC Bank

Responses

Number of respondents

Highly satisfied

satisfied

10

Neutral

Dissatisfied

Highly dissatisfied

Total

24

Consumer Rating of I-Banking Services

12
10
8
6

Consumer Rating of I-Banking

Services

4
2
0
Highly
Satisfied

Satisfied

Neutral Dissatisfied

Highly
Dissatisfied

Interpretation : This suggests that HDFC net banking users are in majority satisfied
with HDFC bank internet banking.

35

ICICI Bank

Responses

Number of respondents

Highly satisfied

satisfied

Neutral

Dissatisfied

Highly dissatisfied

Total

18

Consumer Rating of I-Banking Services

7
6
5
4
Consumer Rating of I-Banking
Services

3
2
1

0
Highly
satisfied

Satisfied

Neutral Dissatisfied

Highly
dissatisfied

Interpretation: Majority of ICICI Bank users are not satisfied with overall services of
internet banking of ICICI Bank.

36

Chapter 4
Findings Of Study

HDFC Bank users are more satisfied in comparison with ICICI bank
users.

Majority of internet banking users are self employed people followed by

Privately employed people.

Income is an important factor in defining the frequency of i-banking users.

Middle age working class is most popular user base.

HDFC bank is more popular than ICICI bank in terms of internet banking
user base.

User friendliness and Ease of Access are important variables of i-banking

user satisfaction.

HDFC bank Page loads quicker than ICICI Bank.

Majority of users are finding as more convenient and reliable mode of

banking as they feel prompt customer service is available.

Majority of user see scope of reduction in service charges.

Most of the respondents who are using this facility having income lie
between 25,000-50,000 and 50,000 and above monthly income group.

Most Respondents feel that banks are taking care of their security and
privacy.

Most Respondents feel that quickness of fund transfer is an issue with

ICICI Bank.

Most Respondents feel that their service provider furnishes adequate info
on transactions.

37

Conclusion
Present research is based on empirical data collected through the customers survey
regarding the market situation of i-banking products and services provided by HDFC
and ICICI banks in Allahabad. It is an effort to examine the relationship between the
demographics and customers satisfaction in i-banking, relationship between the
banks customer service quality and customers satisfaction, promotional measures
banks are adopting or they should adopt in order to make it more effective, as well
as comparison of the quality of i-banking service between HDFC and ICICI banks.
There is greater incidence of i-banking usage among the middle age men (20 to 50
years of age); and women customers use such services much less frequently.
Occupation-wise, the professionals are followed by business class, make more use
of i-banking services.
In order to make i-banking more popular, banks must separate their customers
based on demographic priority (i.e., age, gender, occupation etc.) and customise ibanking services as per their needs and requirements. It is seen that banks are
heavily dependent on message alerts to promote their i-banking products and
services; it is felt that they should supplement this with other modes like print media,
hoardings, e-mail, etc. to stimulate i-banking usage and create greater awareness.
There is a need for the bankers to guide and train their customers; additionally they
can also resort to video presentations at bank branches. There should be
seminars/workshops/talks on the healthy usage of i-banking, especially for those
who are ATM or computer illiterates. Given the increased competition and pressures
to cut expenses, banks need to attract and retain their customers by creating,
maintaining and highlighting attractive features of i-banking.

38

RECCOMENDATION

Recommendations for the i-banking on the basis of key findings for the betterment of
banks and their respective customers in Allahabad has been mentioned below:

1. Enhance Security Control Practices.

2. Practices for Managing Outsourced I-Banking Systems and Services:
Banks should adopt appropriate processes for evaluating decisions to outsource ibanking systems or services. Bank management should clearly identify the strategic
purposes,

benefits

and

costs

associated

with

entering

into

outsourcing

arrangements for i-banking with third parties.

Banks should conduct appropriate risk analysis and due diligence prior to selecting
an i-banking service provider and at appropriate intervals.

3.Sound Practices to Help Maintain the Privacy of Customer i-Banking

Information
Banks should take appropriate steps to inform e-banking customers about the
confidentiality and privacy of their information.
4. Proper Training to the Customers about I-Banking
Banks should give proper training to their customers about i-banking facilities, for
their customers better understanding, Also because it has been found that the
customers are more influenced by the banker and less by the print media.

39

5. Effective Promotional Strategies for the I-Banking Products and Services

Banks should have more effective promotional strategies for the i-banking products
and services, same as private sector banks are doing, in order to create more
awareness among the customers, which may result into an increase in banks
market share or business. Accordingly then the customers should also be informed
about the same.

6.Better Customer Service

A bank should pay due attention to the customer and treat him like a king only,
customers convenience, high quality of service, secured i-banking features should
be the key of success, even the customer complaint resolution process should be
faster of a public sector bank.
7.No Hidden/Additional Charges Deduction
A bank should not deduct any hidden or additional charges from the customer, that
too without informing him/her, especially for the private sector banks
Banks policies and procedures should be transparent and any updation or revision
in the same should also be then informed to the customer.

40

Bibliography
Agarwal, R., Raastogi, S., & Malhotra, A. (2009), Customers perspectives
regarding e -banking in an emerging economy, Journal of Retailing and
Consumer Services , Vol.16, Iss. 5, pp. 340-351.
Anthoney, R. (2004), User Friendly E-Banking: A Survey of Online EBanking Retail Initiatives, Communications of the ACM , Vol. 47, Iss. 10, pp. 99102.
Asghar, O. (2004), Banking In a Cloud of Electrons.
Awa mleh, R. (2006), Diffusion of Internet Banking amongst educated
consumers in a high income Non-OECD country, Journal of Internet Banking
and Commerce , Vol. 11, Iss.
Azouzi ,D. (2009), The Adoption of Electronic Banking in Tunisia, Journal of
Internet Banking and Commerce , Vol. 14, Iss. 3, pp. 1-11.
Baue r H. Hans, Maik, H. & Falk, T. (2006), Measuring the quality of e banking
portals, International Journal of Bank, Vol. 23, Iss. 2.
B. Dizon, Javier A. (2009), Special Feature: Electronic Banking.
IIT Madras, (2010), Polaris Software and Indusind Bank launch INTELLECT
PRIVACY Internet Banking Security Card, PR Newswire
Kamiya, J. (2006), How E-Banking Can Ease Your Life, Rediff.com.
Kuang Hsun, S. (2008), Is E-Banking A Competitive Weapon, International
journal of electronic finance , Inder Science Publishers, Vol.2, No. 2, pp.180- 196.
Laukkanen, P., Sinkkonen, S., & Laukkanen, T. (2008), Consumer resistance to
inte rnet banking: postpones, opponents and rejecters, The International Journal
of Bank Marketing . Vol. 26, Iss. 6, pp. 440.

41

Appendix

Questionnaire On Satisfaction from I-Banking Services. A

comparative study of HDFC and ICICI bank.
Dear Respondent,
I am conducting a research study on internet banking services. I will appreciate
your cooperation in this regard by filling up the questionnaire

carefully. I

assure you that the information provided by you will be kept confidential and will
be used for academic purpose only.
Mano Ashish Tripathi
IMBA/3009/2011
Birla Institute Of Technology

A. Personal Information
Name of customer:_________________________________________________________.
Address:__________________________________________________________________
_________________________________________________________________________
_________________________________________________________________________
_________.
Phone
no.:___________________________________________________________________.
E-mail
id:____________________________________________________________________.
Age:_________________________.
42

B. General Information
1. Do you think that E-banking services are necessary in present scenario.
(a) Yes

(B) No

2. From which bank you are availing these services.

(a) SBI Bank
(b) PNB Bank
(c) HDFC Bank
(d) ICICI Bank
(e) Others (Please Specify)_______________________.
3. Do you find your bank website user friendly ?
(a) Yes
(b) No

4. Are you satisfied with with responsiveness of internet banking services?

(a) Yes
(b) No

5. Are you satisfied by the security measures taken by your service provider?
(a) Yes
(b) No

6. Do you receive your OTP (one time password) within time?

(a) Yes
(b) No
7. Do you feel that fund transfers take place in promised time while transferring to
third party?
(a) Yes
(b) No

43

8. Are you satisfied with the quickness of Webpage?

(a) Yes
(b) No

9. Does your net banking provider has the ability to solve customer problem by
promptly guiding them on real time basis?
(a) Yes
(b) No

10. Do you think that your bank is not reasonable enough in tariffs over internet
banking?
(a) Yes
(b) No

11. Do you think that your service provider is providing accurate transactions and
provides adequate info on each transaction?
(a) Yes
(b) No

12. Do you feel that your bank is taking care of your Privacy and Confidentiality?
(a) Yes
(b) No

44

13. Up to what extent you are satisfied with overall performance of your net banking
service provider?
(a) Highly satisfied
(b) Satisfied
(c) Neutral
(d) Dissatisfied
(e) Highly Dissatisfied

45

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