Shanku

A Study on Customer Awareness On Mobile Banking
1.1 INTRODUCTION Mobile banking, the most innovative service from banks which provides the customers a new means of doing the banking transaction with in their fingertips. Mobile and wireless technology, combined with the wide variety of portable devices available today, enables new revenue opportunities for financial services organizations. This provides a new channel that can be used to refresh and expand the customer base, attract prime customers and enhance loyalty. With mobile and wireless technology, banks can offer a wide possibilities of services to their customers, from the freedom of paying bills while stuck in traffic, to receiving notification of a change in stock price while having lunch, thus the convenience and time saving benefits of wireless financial services are huge. Customer awareness on mobile banking focuses on the study of the customer knowledge on the parameters of mobile banking as well their satisfaction on the usage of mobile banking. The study has a great relevance on current scenario as the mobile banking is an innovative service. Federal bank one of the largest private sectors which is the first among the traditional bank provides the mobile banking service as Fed Mobile to their customers. So this study focus on analyzing who much the customers of the Federal Bank are aware of mobile banking services and to find out how much the customers are satisfied with the present services from Fed Mobile. The growth of mobile users and the drawback of internet banking, the necessity of personal computer made the mobile banking an important service now a day. So this study has a great relevance which focuses on analyzing the mobile banking as a better alternative than other services.
1.2 STATEMENT OF THE PROBLEM
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Federal Bank Ltd. the leading public sector bank in India, which is the first public sector bank to provide mobile banking service as Fed Mobile to the customers. Fed Mobile service offers the customers the advantage of new generation banking facility to the users. Through this facility the customers can save their time with easy accessibility of their account at any time is possible and bill payment can also be done without the aid of any intermediaries. The advantage of any time any where banking makes this service more attractive and this will be an inevitable service in future as the mobile users in the nation are increasing revolutionary. The only limitation of using this service is the necessity of mobile device with GPRS connection. As mobile phone industry is growing vigorously it will not be a problem for the service providers. The data provided by the cooperate office shows that the existing number of customers for the bank is around 5 million all over the branches but the number of customers using the service is only around twenty thousand, on discussing with the officials it was found that the bank is providing necessary information to their customers through various means but the usage rate of this service is very much low. Even though the service is innovating and time saving only 5 percentages of the existing customers are using this service. Hence there is a scope for the study to find out why the customers are not using this facility? and therefore my study focuses on providing the customers better awareness on this service provided by the bank as Fed Mobile. Thus the objective of my study is to make awareness on customers in mobile banking and find out their satisfaction on parameters of mobile banking. The study also focuses on analyzing the mobile banking as a better alternative than other services.
1.3 REVIEW OF LITERATURE Mobile banking:
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Mobile Banking (also known as M-Banking, m-banking, SMS Banking, etc.) is a term used for performing balance checks, account transactions payments etc., via a mobile device such as a mobile phone. It was Internet Banking, which ushered in a new era in banking convenience by bringing the entire operations to the computer, and now mobile banking promises to take it to the next level. Internet Banking helped give the customers anytime access to their banks. Customers could check out their account details, perform transactions like transferring money to other accounts, and pay their bills, sitting in the comfort of their homes and offices. However, the biggest limitation of Internet Banking is the requirement of a PC with an Internet connection, not a big obstacle if we look at the US and the European countries, but definitely a big barrier if we consider most of the developing countries of Asia like India and China. Mobile Banking addresses this fundamental limitation of Internet Banking, a sit reduces the customer requirement to just a mobile phone. Mobile usage has seen an explosive growth in most of the Asian economies like India, China and Korea. The main reason that Mobile Banking scores over Internet Banking is that it enables 'Anywhere Anytime Banking. The last time that technology had a major impact in helping banks service their customers was with the introduction of the Internet banking. Mobile phones have become the most accessible and cost-effective tool for communication. It is amazing that the number of mobile connections in India has exceeded 600 million. The rapid growth in the number of users, especially among the youth, and wider coverage of mobile phone networks have made this channel an important platform for extending banking service Mobile banking is a facility that enables customers to access banking facility through his/her mobile. Mobile alert facility, which we introduced a decade back, enables the customer to get instant information on transactions in the account by way of SMS messages. Moving a step ahead, Mobile Banking
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enable customers to make inquiries and do transactions (like fund transfer, cheque book request etc.) through their mobile phones. The services available in Mobile Banking can be broadly classified as 1. PULL based services - initiated by the customer 2. PUSH based services originated by the Bank 3. Request services initiated by the customer for placing various requests/instructions to Bank. 1. Push based services: Cheque Book Issue Alert Cheque Deposit Bounced Alert Cheque Issued Bounced Alert Term Deposit Maturity Alert prior to a selected number of days by the customer Loan Due Alert prior to a selected number of days by the customer Credit to the Account having amount higher than the limit specified by the customer Debit to the Account having amount higher than the limit specified by the customer Account Balance goes above the amount specified by the customer Account Balance goes below the amount specified by the customer All the above alerts are delivered to the customers Mobile Phone as SMS (Short Messages) 1. The PULL based services : Balance Enquiry Mini Statement [Last 5 transactions] Fund Transfer within Federal Bank
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Issued Cheque status. 1. Request Services : Request Cheque Book Request Account Statement Feedback to bank Customer Care Contact details view Eligibility: All the customers having satisfactorily running SB and Current accounts with mode of operation as Single/ Sole proprietorship, either or survivor or anyone or survivor can be registered for this facility. For the joint accounts in either or survivor or anyone or survivor' mode, only one account holder of the joint account holders will be allowed to avail the facility. Accounts with Joint mode of operation are not eligible for the service. An Account in the name of the minor is not eligible for this service. The customer can avail Mobile Banking on any Mobile Phone with valid connection from a service provider. However for enjoying all the services offered through Mobile Banking, a handset with added features is essential. The mobile number registered in Finacle through the Mobile Banking Registration process shall be the Mobile number through which the service can be availed. For a single account, only one mobile number can be registered for Mobile Banking. All accounts linked to a Customer ID can be registered for the facility. In such cases, while transacting through Mobile Banking, the customer will be prompted to select the required account from among the list of accounts. The system will work on the principle of Single Customer-Single Mobile basis. This means one mobile number can be registered only for one Customer ID. Thus mobile number will be unique in the system. IMPS (INTER MOBILE PAYMENT SYSTEM):
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Inter Mobile Payment service (IMPS) is an instant interbank electronic fund transfer service through mobile phones. IMPS facilitate customers to use mobile instruments as a channel for accessing their bank accounts and remitting funds there from. Various banks are providing remittance facilities through their mobile banking platforms. The inter bank remittance request initiated from a mobile phone is processed by the beneficiary bank as a national electronic fund transfer (NEFT) transaction. The status of such payment request is therefore not known instantly because NEFT payment is processed in batches from 9am to 7pm. The customer need to enroll the mobile banking services with the bank
where customer has a account. The registration procedure shall be laid down procedures. All mobile banking customers can do IMPS remittance as well as money acceptance. For IMPS transaction the customer should know about beneficiary details including his mobile number and MMID (Mobile Money Identifier). MMID is a seven digit random number issued by bank upon registration. The customer and beneficiary should have this MMID for doing this inter bank fund transfer. The process flow of IMPS Step 1: Remitter send instruction from his/her mobile through his/her bank provided application or SMS. Step 2: Remitting bank validates the details of the remitter and debits his/her account. The transaction is send by the remitting bank to NPCL (National Payment Corporation of India). Step 3: Transaction is passed by NPCI to the beneficiary bank. Beneficiary bank validates the details of the beneficiary customers, credit the account, send confirmation NPCI about transaction status and send a sms to the beneficiary customer informing him of the credit. Step4: NPCI send the transaction status to remitting bank which in turn informs the status of the transaction to the remitter.
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Step5: Remitting bank send a sms confirmation of the transaction to the remitting customer.
1.4 OBJECTIVES OF THE STUDY 1. To make a study on customer awareness on mobile banking.
2. To make a study on to what extent customers are satisfied with mobile
banking services provided by the bank

3. To find out whether the mobile banking is a better alternative than other
services offered by the bank.
1.5 DATA SOURCES The source of data was collected from the customers who have using the mobile banking (FEDMOBILE) and not using the service. The methodology used for the data collection was through questionnaire. A questionnaire consist of a number of questions printed or typed in a definite order on a form or set of forms. The respondents have to answer it on their own. Primary Data Collection: Primary data are collected from managers, employees of the bank. Observation was systematically planned and recorded and subjected to check and controls on validity and reliability. The important sources for primary data collection includes Customer survey using questionnaire. Discussions with managers and employees.
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Secondary data collection: The secondary data and other related materials have been collected from various brochures, websites etc, the bank details and data have personally been gathered from banks profiles, documents, annual reports, and other published booklets. 1.6 SAMPLING PLAN The sampling plan method adopted is convenience sampling. Convenience sampling is a type of non-probability sampling which involves the sample being drawn from that part of the population which is close to hand. That is, a sample population selected because it is readily available and convenient. 1.7 SAMPLE SIZE Sample size for the study is only 100 so get the relevant data for this the total number is classified into two.50 samples are taken from customers using mobile banking and 50 samples from customers not using mobile banking.
1.8DATA ANALYSIS TOOLS AND TECHNIQUES The tools used were percentage analysis and chi square analysis. Percentage analysis Percentage refers to a special kind of ratio. It is used in making
comparison between two or more series of data. Percentage can also be used to compare the relation terms between two or more sources of data. Percentage of respondents = Number of respondents * 100 Total respondents
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Weighted average method: The term weight stands for the relative importance of the different items. The formula for computing weighted arithmetic mean is as follows. Xm = Wx / W Where, Xm = weighted arithmetic mean X = variable value ie, x1, x2, x3 .xn W = weights attached to the variable ie, W1, W2, W3,..Wn Graphical Representation: Bar diagram and Pie charts are used for the graphical representation.
1.9 SCOPE OF STUDY: Mobile banking services are essentially important in the current scenario as the mobile phone users are increasing day by day. Studies shows that around 752 million mobile subscriber are there in India and around 20% subscribers in Kerala. Thus mobiles are becoming cheapest and fastest way of communication so mobile banking is having a greater importance and the customer can make the banking easily anywhere in the globe. So the study helps to make awareness to the customers regarding the service and collecting their feedback regarding the service.
1.10 LIMITATIONS: The study was limited to a small sample and ignores the entire population.
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The study is mainly base on primary data based on questionnaires, so the possibility of bias exists.
The important officials and executives are busy with their work
schedules so it was hard to get necessary informations. It was difficult to get information from customers as they were not fully aware about mobile banking services.
1.11 CHAPTERISATION Chapter-1 deals with the general introduction to the study, statement of the problem, objectives, research methodology, limitations of the study and chapterisation. Chapter-2 is about the Industry profile which contains brief description of banking industry and also deals with banking development in India Chapter-3 deals with the company profile with brief description of Federal Bank, their products and services. Chapter-4 deals with the data analysis and interpretation wee the data collected through customer survey is analyzed using the percentage method and chi square test with the help of charts and tables.
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Chapter-5 deals with finding, conclusion and suggestions.
CHAPTER 2 INDUSTRY PROFILE
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2.1 INTRODUCTION TO THE BANK A bank is a financial institution licensed by a government. Its primary activities include borrowing and lending money. Many other financial activities were allowed over time. For example banks are important players in financial markets and offer financial services such as investment funds. In some countries such as Germany, banks have historically owned major stakes in industrial corporations while in other countries such as the United States banks are prohibited from owning non-financial companies. In Japan, banks are usually the nexus of a cross-share holding entity known as the zaibatsu. In France, banc assurance is prevalent, as most banks offer insurance services and now real estate services to their clients. The level of government regulation of the banking industry varies widely, with countries such as Iceland, the United Kingdom and the United States having relatively light regulation of the banking sector, and countries such as China having relatively heavier regulation (including stricter regulations regarding the level of reserves).
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History The first state deposit bank, Banco di San Giorgio (Bank of St. George), was founded in 1407 at Genoa, Italy. Origin of the Word Since the banking was started in different periods in different countries, there is no unanimous view regarding the origin of the word Bank. The word Bank is said to have derived from the French word Banco or Banc or Banque which means a Bench. Another common held view is that the word Bank might be originated from the German word Back which means a joint stock fund. Traditional Banking Activities Banks act as payment agents by conducting checking or current accounts for customers, paying cheques drawn by customers on the bank, and collecting cheques deposited to customers' current accounts. Banks also enable customer payments via other payment methods such as telegraphic transfer, EFTPOS, and ATM. Banks borrow money by accepting funds deposited on current accounts, by accepting term deposits, and by issuing debt securities such as bank notes and bonds. Banks lend money by making advances to customers on current accounts, by making installment loans, and by investing in marketable debt securities and other forms of money lending. Banks also borrow most funds from households and non-financial businesses, and lend most funds to households and non-financial businesses. Definition The definition of a bank varies from country to country. Under English common law, a banker is defined as a person who carries on the business of banking, which is specified as: Conducting current accounts for his customers
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Paying cheques drawn on him Collecting cheques for his customers. In most English common law jurisdictions there is a Bills of Exchange Act that codifies the law in relation to negotiable instruments, including cheques, and this Act contains a statutory definition of the term banker: banker includes a body of persons, whether incorporated or not, who carry on the business of banking. Although this definition seems circular, it is actually functional, because it ensures that the legal basis for bank transactions such as cheques do not depend on how the bank is organized or regulated. "Banking business" means the business of receiving money on current or deposit account, paying and collecting cheques drawn by or paid in by customers, the making of advances to customers, and includes such other business as the Authority may prescribe for the purposes of this Act; (Banking Act (Singapore), Section 2, Interpretation). "Banking business" means the business of either or both of the following: 1. Receiving from the general public money on current, deposit, savings or other similar account repayable on demand or within less than [3 months] or with a period of call or notice of less than that period. 2. Paying or collecting cheques drawn by or paid in by customers Since the advent of EFTPOS (Electronic Funds Transfer at Point Of Sale), direct credit, direct debit and internet banking, the cheque has lost its primacy in most banking systems as a payment instrument. This has led legal theorists to suggest that the cheque based definition should be broadened to include financial institutions that conduct current accounts for customers and enable customers to pay and be paid by third parties, even if they do not pay and collect cheques. Wider Commercial Role
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The commercial role of banks is not limited to banking, and includes:

Issue of banknotes (promissory notes issued by a banker and payable to
bearer on demand)
Processing of payments by way of telegraphic transfer, EFTPOS,
internet banking or other means

Issuing bank drafts and bank cheques Accepting money on term deposit Lending money by way of overdraft, installment loan or otherwise Providing documentary and standby letters of credit (trade finance),
guarantees, performance bonds, securities underwriting commitments and other forms of off-balance sheet exposures
Safekeeping of documents and other items in safe deposit boxes
Currency exchange Acting as a 'financial supermarket' for the sale, distribution or brokerage, with or without advice, of insurance, unit trusts and similar financial products. Economic Functions The economic functions of banks include:
1. Issue of money, in the form of banknotes and current accounts subject
to cheque or payment at the customer's order. These claims on banks can act as money because they are negotiable and/or repayable on demand, and hence valued at par. They are effectively transferable by mere delivery, in the case of banknotes, or by drawing a cheque that the payee may bank or cash. 2. Netting and settlement of payments. Banks act as both collection and paying agents for customers, participating in interbank clearing and settlement systems to collect, present, be presented with, and pay payment instruments. This enables banks to economies on reserves held for settlement of payments, since inward and outward payments offset
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each other. It also enables the offsetting of payment flows between geographical areas, reducing the cost of settlement between them. 3. Credit intermediation. Banks borrow and lend back-to-back on their own account as middle men
4. Credit quality improvement. Banks lend money to ordinary commercial
and personal borrowers (ordinary credit quality), but are high quality borrowers. The improvement comes from diversification of the bank's assets and capital which provides a buffer to absorb losses without defaulting on its obligations. However, banknotes and deposits are generally unsecured; if the bank gets into difficulty and pledges assets as security, to raise the funding it needs to continue to operate, this puts the note holders and depositors in an economically subordinated position.
5. Maturity transformation. Banks borrow more on demand debt and short
term debt, but provide more long term loans. In other words, they borrow short and lend long. With a stronger credit quality than most other borrowers, banks can do this by aggregating issues (e.g. accepting deposits and issuing banknotes) and redemptions (e.g. withdrawals and redemptions of banknotes), maintaining reserves of cash, investing in marketable securities that can be readily converted to cash if needed, and raising replacement funding as needed from various sources (e.g. wholesale cash markets and securities markets). Banking Channels Banks offer many different channels to access their banking and other services:
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A branchbanking centre or financial centre is a retail location where a
bank or financial institution offers a wide array of face-to-face service to its customers.
ATM is a computerized telecommunications device that provides a
financial institution's customers a method of financial transactions in a public space without the need for a human clerk or bank teller. Most banks now have more ATMs than branches, and ATMs are providing a wider range of services to a wider range of users. For example in Hong Kong, most ATMs enable anyone to deposit cash to any customer of the bank's account by feeding in the notes and entering the account number to be credited. Also, most ATMs enable card holders from other banks to get their account balance and withdraw cash, even if the card is issued by a foreign bank.
Mail is part of the postal system which itself is a system wherein written
documents typically enclosed in envelopes, and also small packages containing other matter, are delivered to destinations around the world. This can be used to deposit cheques and to send orders to the bank to pay money to third parties. Banks also normally use mail to deliver periodic account statements to customers.
Telephone banking is a service provided by a financial institution
which allows its customers to perform transactions over the telephone. This normally includes bill payments for bills from major billers (e.g. for electricity).
Online banking is a term used for performing transactions, payments
etc. over the Internet through a bank, credit union or building society's secure website.
Mobile banking is a method of using one's mobile phone to conduct
simple banking transactions by remotely linking into a banking network.
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Video banking is a term used for performing banking transactions or
professional banking consultations via a remote video and audio connection. Video banking can be performed via purpose built banking transaction machines (similar to an Automated teller machine), or via a videoconference enabled bank branch.
Types of Banks Banks' activities can be divided into retail banking, dealing directly with individuals and small businesses; business banking, providing services to midmarket business; corporate banking, directed at large business entities; private banking, providing wealth management services to high net worth individuals and families; and investment banking, relating to activities on the financial markets. Most banks are profit-making, private enterprises. However, some are owned by government, or are non-profit organizations. Central banks are normally government-owned and charged with quasiregulatory responsibilities, such as supervising commercial banks, or controlling the cash interest rate. They generally provide liquidity to the banking system and act as the lender of last resort in event of a crisis. Types of Retail Banks
Commercial bank: The term used for a normal bank to distinguish it
from an investment bank. After the Great Depression, the U.S. Congress required that banks only engage in banking activities, whereas investment banks were limited to capital market activities. Since the two no longer have to be under separate ownership, some use the term "commercial bank" to refer to a bank or a division of a bank that mostly deals with deposits and loans from corporations or large businesses.
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Community
Banks: Locally operated financial institutions that
empower employees to make local decisions to serve their customers and the partners.
Community development banks: Regulated banks that provide
financial services and credit to under-served markets or populations.

Postal savings banks: Savings banks associated with national postal
systems.
Private Banks: Banks that manage the assets of high net worth
individuals.
Offshore banks: Banks located in jurisdictions with low taxation and
regulation. Many offshore banks are essentially private banks.

Savings bank: In Europe, savings banks take their roots in the 19th or
sometimes even 18th century. Their original objective was to provide easily accessible savings products to all strata of the population. In some countries, savings banks were created on public initiative; in others, socially committed individuals created foundations to put in place the necessary infrastructure. Nowadays, European savings banks have kept their focus on retail banking: payments, savings products, credits and insurances for individuals or small and medium-sized enterprises. Apart from this retail focus, they also differ from commercial banks by their broadly decentralized distribution network, providing local and regional outreachand by their socially responsible approach to business and society.
Building societies and Lands banks: Institutions that conduct retail
banking.
Ethical banks: Banks that prioritize the transparency of all operations
and make only what they consider to be socially-responsible investments.

Islamic banks: Banks that transact according to Islamic principles.
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Banking Development in India Indian banking scenario has undergone drastic changes after the initial nationalization of 14 major commercial banks in 1969. It continued after the nationalization of six banks and the liberalization process of the financial in 1991. In this context, an attempt has been made to trace the origin and development of banking in India. Evolution of Banking in India From time in memorial, the banker has been an indispensable pillar of Indian society. India possessed some system of indigenous banking in modern times. Although evidence regarding the existence of money lending operations in India is found in the literature of the Vedic times, the information is available regarding their pursuit, as a profession by the sector of the community till 500 B.C. But organized commercial banking began in India only with the reconstitution of three Presidency banks. The Presidency Bank of Bengal, Bombay and Madras were under the Presidency Banks Act of 1896. The initiative for setting up the Presidency Banks came from the Government. The banks were entrusted with the cash balance of the Government, free of interest at the presidency towns and at places where the banks had branches and were also changed with the management of public debt. Later in January 1921, these banks were amalgamated and new bank Imperial Bank of India was formed. This step was taken to protect these banks against the competition of foreign banks. The imperial bank was primarily a commercial bank and it was the sole banker to the Government. But it was not a central Bank. The government authorities also felt the need for a Central Bank as centralized and organized banking system become essential for a money economy. As a consequence, Reserve Bank of India (RBI) was nationalized with the passage of RBI Act, 1948. From January 1, 1949 the RBI became a State Owned Institution.
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Thus 1949 marked the beginning of a new area in the history of Indian Banking. Basically, the workings of commercial banking in India are governed by the provisions of the Banking Companies Regulation Act, 1949. The act has, however, been suitably amended from time to time to bring about improvement and better control. In 1954, the Committee of Direction on all Indian Rural Credit Survey recommended the establishment of the SBI as, One strong, integrated state partnered commercial banking institution with effective machinery of branches spread over the whole country for stimulating banking development by providing vastly extended remittance facilities for co-operative and other hands. Consequently on July 1, 1955, the Imperial Bank of India, to further well design of the SBI state banks was made the subsidiaries of the SBI Act, 1959. By 1960, the Indian Banking system had made considerable progress, both functionally and in terms of geographical coverage. Since the resources of the banking system were inadequate to meet all the credit requirements of the economy, there was a need for a system of priorities on a national basis and some form of budgeting to ensure that credit went to desired sectors. For this purpose and for assessing credit priorities on a national basis and for ensuring equitable distribution of bank credit, the National Credit Council was set up. A giant stride in public sector banking was taken in July 1969 when 14 commercial banks with deposits exceeding Rs.50 crores each were nationalized. Nationalization impart new ethos to commercial banking. The main objective sought to be achieved through the nationalization have been the enlargement of resources for economic growth, the development of agriculture and industry in backward region as well as making bank credit available to priority. Sectors which has been neglecting in the past, professionalization of management, for the mobilization of financial savings of the community and for the community and for investing banks in bringing about social justice.
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After nationalization, there was phenomenal increase in the deposits of commercial banks. The most significant development was in the field of branch expansion. Rural and semi-urban areas, which had very little banking facilities. The lead Bank scheme was introduced for all around development of banking and also for the economic development of the districts concerned. In spite of all these development in the number of bank offices in general and rural areas in particular, the interstate and inter region disparities continued. Keeping in view these difficulties, the Government of India launched the scheme of opening Regional Rural Banks in October 1975. As per the Branch licensing policy formulation I, Reserve Bank of India (RBI) in September 1978, about 45000 new offices were opened over the three year, 1978-81 in the rural and semi-urban areas on districts where the average population per bank offices is higher than the national average. It was also proposed to cover every urban community development block head quarters in the country with a bank office before the end of June 1979s. On April 15, 1980, the Government nationalized six more scheduled commercial banks each with a deposit of Rs.200 crores or above with this the public sector banks commanded more than 90% of the aggregate deposits, advances and investments of the Indian banking system. The banks since the mid ethics embayed upon diversification and innovation banking in related activities merchant banking, venture capital and several of other financial services through their subsidiaries or on their own. The interface of banking sector with the capital market has been growing and suitable prudential guidelines having been issued from time to time for the development of these activities. Indian Banking Industry
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Banking in India has an early origin where the indigenous bankers played a very important role in lending money and financing foreign trade and commerce. During the days of the East India Company, it was the turn of the agency houses to carry on the banking business. The General bank of India was the first Stock Bank to be established in the year 1786. The others which followed where the Bank of Hindustan and the Bengal Bank in the first half of the 19th century, the East India Company established three banks, the Bank of Bengal, in 1809, the Bank of Bombay in 1840 and the Bank of Madras in 1843. These three banks were also known as Presidency Banks. These three banks were amalgamated in 1920 and a new bank, the Imperial Bank of India was established in 1912. With the passing of SBI Act in 1955, the further taking of the Imperial Bank of India was taken over by the newly constituted State Bank was created in 1935 by passing of RBI Act, 1934. Banking system occupies an important lace in a nations economy. It plays a pivotal role in the economic development of country and form the care of the money market in an advanced country. In the modern economy, banks are to be considered not as dealers in money but as the one stop shop offering various financial products to the public. The main task of banks is to mobilize the savings of people and induce them to invest in productive channels. 2.2 Organizational Structure of Banks in India: In India banks are classified in various categories according to differ rent criteria. The following charts indicate the banking structure:
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Table 2.2
Industrial EXIM Urban Agricultural Long-term Short-term Private Nationalized Development of India Co-operative Banks Commercial Banks Reserve BankBanks Credit credit
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Structure of banks in India
Broad Classification of Banks in India: 1. The RBI: The RBI is the supreme monetary and banking authority in the country and has the responsibility to control the banking system in the country. It keeps the reserves of all scheduled banks and hence is known as the Reserve Bank.
2. Public Sector Banks :
State Bank of India and its Associates (8) Nationalized Banks (19) Regional Rural Banks Sponsored by Public Sector Banks (196) 1. Private Sector Banks: Old Generation Private Banks (22) Foreign New Generation Private Banks (8) Banks in India (40) 1. Co-operative Sector Banks: State Co-operative Banks Central Co-operative Banks Primary Agricultural Credit Societies Land Development Banks State Land Development Banks. 1. Development Banks: Development Banks mostly provide long term finance for setting up industries. They also provide short-term finance (for export and import activities)
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Industrial Finance Co-operation of India (IFCI) Industrial Development of India (IDBI) Industrial Investment Bank of India (IIBI) Small Industries Development Bank of India (SIDBI) National Bank for Agriculture and Rural Development (NABARD) Export-Import Bank of India
CHAPTER 3 COMPANY PROFILE
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3.1 Company profile- The Federal Bank Ltd. Federal bank is a leading private sector bank in India with its Corporate Office at Aluva of Ernakulum Dt. in Kerala. This esteemed organization has built up a reputation of being a customer friendly Bank with a history of around seven decades of public confidence and trust. Federal Bank today enjoys the 4th position among the private sector commercial banks in the country and it is the largest traditional private sector Bank in India. The Banks shares are widely held and are listed in the Bombay Stock Exchange and National Stock Exchange in India. Federal Bank is the only traditional bank other than State Bank of India to have its shares listed outside our country with Federal Banks Global Depository Receipts being listed at the London Stock Exchange. The Bank has its representative Office in Abu Dhabi. Bank is supported by very eminent personalities representing various areas of expertise as Board of Directors. Federal Bank provides a host of products and services targeting the diverse needs of customers like businessmen, industrialists, farmers, NRIs etc.
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Today the Bank enjoys the trust and confidence of more than 5 million customers across the world. Today, the Bank has 750 branches and 800 ATMs spread over important locations in India, supported by 13 regional offices. Have about 424 branches and 437 ATMs in Kerala. All the branches of the Bank are operating under Core Banking Solution and are fully networked. Federal Banks ATMs are located across all major cities and towns across the country. The Bank has various types of VISA International Debit Cards, and Master Card and all these cards are acceptable at all VISA/Master ATMs and POS centers across the world. Pin based maestro is being launched soon. Bank has joined the largest network of shared ATMs in the country IndiaPay National Financial Switch (NFS) which means that debit card holders have now access to all the 61,200 ATMs of member banks spread across the country, irrespective of whether it has Visa or MasterCard connectivity. The Bank is a pioneer among traditional banks in India in the area of using technology to leverage its operations and was among the first banks in India to computerize all its branches. The Bank offer its customers, a variety of services such as Internet banking, Mobile banking, on-line bill payment, on-line fee collection, depository services, Cash Management Services, merchant banking services, RTGS / NEFT facility, etc. as part of its strategy in enhancing the convenience to its customers. Federal Bank is the title sponsor for Grand Kerala Shopping Festival continuously for three years including this year. State governments like Maharashtra ,Goa has included Federal Bank in the select list of approved Banks to Bank with Govt. Corporations and autonomous bodies, to disburse salary of Govt. employees, pensioners etc. At present Fee remittance and application form (Online generation) for various courses like BEd, Paramedical, PG in Kerala are being collected through Federal Bank.
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Federal Bank took over Ganesh Bank of Kurundawad, in September 2006. This enabled Federal Bank to get 32 branches of Ganesh Bank of Kurundawad in Maharashtra and Karnataka states in India. Federal Bank has also ventured into Life Insurance business in association with Fortis Insurance International and IDBI Bank in 2008. The Joint Venture IDBI Federal Life Insurance Company Ltd. is offering a range of innovative insurance products, which have attained good acceptance among the public. The Bank also distributes Mutual Fund products of 15 Asset Management Companies and non-life products of United India Insurance Co. The Bank is also into bullion sales, offering 999.9 pure Imported Suisse Gold coins, in various denominations, under the brand name Federal Bank Pure Gold. Federal bank is first-ever Initial Public Offering (IPO) of Equity Shares was made in March 1994, followed by a 1:1 Rights Issue in 1996. In 2008, the Bank successfully completed another 1:1 Rights Issue, which garnered close to Rs. 2150 Crores. The Bank currently has a net worth of over Rs.4600 Cr, making it one among the top league of strong banks in India. As on 31st March 2010, the Banks total business is over Rs.63,000 Crores and the net profit is Rs.464.55 Cr. The net worth of Federal Bank is Rs.4690 Cr as on 31st March 2010. The Bank has a Capital Adequacy Ratio of 17.26 % as on 31.03.2010, which is one among the highest in the industry. The Bank has a strong patronage of Non-Resident Indians and has on-line remittance arrangements from anywhere in the world. A wide range of liability and asset products and services are offered exclusively to NRIs. The Bank has also opened its first overseas representative office in Abu Dhabi, UAE to establish a permanent presence in Middle East. As on 31 March 2010, the Bank has correspondent banking arrangements with 42 Exchange Houses and 5 banks all over the world, which facilitates speedy transfer of money into the account of the customer. Last year, the Bank has launched Portfolio Investment
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Scheme (PIS) for the NRIs, in association with M/s. Geojit BNP Paribas Financial Services Ltd. Federal Bank has many firsts to its credit, as far as implementation of technology and enhancement of banking convenience to its customers are concerned.
First, among the traditional banks in the country to introduce Internet Banking Service First among the traditional banks to have all its branches automated First Bank among the traditional Banks in India to have all its branches inter-connected First Bank to offer Electronic Telephone Bill Payment in the country First Bank to have an e-shopping payment gateway First traditional Bank to introduce Mobile Alerts & Mobile Banking service First Bank to implement an Express Remittance Facility from Abroad First in India to provide RTGS facility across all its branches First traditional Bank to issue GDR and get listed in London Stock Exchange In the last few years, Federal Bank has won several awards and accolades, which proves the strength, operational efficiency, technological competence and customer centricity of the Bank. Following are some of the major awards received by Federal Bank during that last fiscal.
Most Efficient Bank in India in the large bank category by Business Today - KPMG survey.
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Best bank in Old Private Sector Category - Financial Express and Ernst & Young. Federal Bank has won the Great Mind Challenge award from IBM for implementing the most innovative solution for business. Federal Bank is the first Bank in India to receive the award.
Ranked 8th among all banks in India, in a study conducted by Economic Times under the four parameters of growth, efficiency, financial strength and shareholder returns. Of these, our bank was ranked No. 1 under Efficiency and Financial Strength.
In order to provide personalized and value added services to its NRI clients, the Bank has posted NRI Relationship Managers across major branches in the state of Kerala that cater to high volumes of NRI business. As part of the Business Process Re-engineering undertaken in the bank under the name Project Transformation, the organizational structure of the Bank has been revamped and separate verticals have been created to focus on various business segments. Credit Hubs are being established indifferent regions and Retail Hubs have started functioning at major cities for faster processing and disbursal of loans. These hubs are expected to stabilize during the fiscal 2010 2011. The creation of these hubs will strengthen the appraisal and quality assessment at the point of approval of loans as also monitoring post approval. As part of extending personalized and customized services to our esteemed customers, the Bank has launched Priority Banking services, under the brand name Fedselect, in selected branches and is being extended to more branches.
3.2 Products
and Services:
Savings Bank Current Accounts IMK.Kundara Page 31
Loans Deposits Debit-Cards Mobile Banking- FedMobile Corporate-FedNet Funds Transfer Internet Banking-FedNet Inward Remittance Portfolio Investment Scheme Insurance Products Mutual Fund Demat Accounts Gilt Accounts Cash Management Bank Guarantee Federal Pure Gold Merchant Banking Safe Deposit Lockers
SB accounts: Federal bank have an exclusive range of Savings accounts with features to make banking a pleasure with right kind of account that suits the financial requirements and can enjoy the benefits of easy banking and greater transaction power. Various SB accounts includeFreedom SB,SB Plus, Fed Power, fed power+, Yuvamithra,Fed Classic Fed Classic+ Fed Smart, Mahilamitra etc. SB accounts help to make regular expenditure easy. Debit cards allow cashless transactions. And the ATMs spread all over the country make SB
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accounts accessible from anywhere in the world. The unutilized portion in account earns interest for the customers. Internet banking, instant funds transfers, online opening of deposit accounts, estatements, mobile alerts, online payment of bills, personalized cheque books, passbooks to keep track and reconcile your accounts etc. The savings bank accounts come with a bundle of features which one cannot live without.
Current accounts: Current accounts are mainly meant for business..There are accounts for entrepreneurs of all kinds.. These accounts come with the backing of a private sector bank with years of experience. These bouquet accounts give customer the power to carry on business with ease anywhere in India or abroad. The features include free fund-transfers & cash withdrawals and e-statements. Depending on the account customer choose, there can be free cheque-books and VISA International Debit Cards. The account can be easily operated from anywhere in India. Various current account products areFreedom Current, Current plus, Fed Trade, FedTrade, 50Fed Trade +, Fed Vanijya, Fed Vanijya + etc. Depository Services : Bank offers Depository Services to its clients through 164 designated branches to cater to their demat requirements through NSDL. The bank also provides the Speed-e facility to demat account holders to submit their delivery instructions through Internet. The bank also provides IDEAS facility for viewing the statement of transactions for last one month.
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MasterCard Now Federal Bank offers debit cards in association with Master Card. MasterCard, serves consumers and businesses in more than 210 countries and territories. As a MasterCard holder customer can make use of millions of ATMs to withdraw cash and make purchases from millions of merchant locations worldwide. In India, MasterCard is widely accepted. Bank is bringing you MasterCard Classic as a initial offer Table 3.3 Features of MasterCard
Features Daily shopping limit Daily cash withdrawal limit Total limit Mode of authentication Eligibility Annual Charges
MasterCard Classic 30,000/30,000/60,000/PIN based at ATM and Signature based at POS All segments of customers except No-frill a/c holders 100/-
Debit Cards from Federal Bank: Federal Bank offers you internationally accepted Debit Cards in association with MASTERCARD and VISA. Customer can use these cards in millions of POS terminals all over the world for shopping and withdrawal of cash from account through any ATM in any country, accepting MASTERCARD and
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VISA cards. Moreover there is no charge for any number of transactions made from other Banks ATM's. Online Tax Remittance through FedNet: Customers can pay both direct and indirect taxes on line through FedNet, Federal Bank's premium Internet Banking facility. The service is available to all Federal Bank Customers (Corporate/Retail) registered for FedNet (with transaction facility). Customer can make online Tax Payments effortlessly and securely through FedNet. Online tax remittance is mandatory for most of the Tax Payments, both direct and indirect tax. All corporate who are liable to pay excise duty or service tax of Rs 10 lakh or more in a year are required to pay tax online. Federal pure gold : Federal Bank brings gold in its purest form Gold bullion of 24 carat which carries a fineness of 999.9 is available at Federal Banks selected branches Gold is imported from the refiner giant, PAMP SA, Switzerland, Switzerland is one of the leading refiners in the world The bullion comes in varied denominations (1gm, 2gm, 5gm, 8gm, 20gm, 50gm & 100gm) in tamper proof certicard with Assay Certification which authenticates the purity Merchant banking : The Bank is registered with SEBI as Category I Merchant Banker for providing all the major Merchant Banking Services which issue Management Services includes both issue management services and payment of Dividend / Interest Warrants and Refund Orders etc Issue Management Services:
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Acting as Managers to the issue. Bankers to the issue. Acceptance of Applications and Application money.
Chapter 4 DATA ANALYSIS AND INTERPETATION
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Data analysis and interpretation:

Data are collected from 100 respondents by conducting the survey using the questionnaire. The respondents include 50 customers using the mobile banking and 50 customers not using mobile banking. The collected data are analyzed. The analyzed data are tabulated and charts are prepared for representing these data. About 23 questions are analyzed and it is shown below.
4.1 Service of federal bank mostly using: Respondents were asked to specify the type of services of federal bank mostly using. The responses are tabulated in table 4.1
Table 4.1 Service of federal bank mostly using Response Savings bank Current account Debit card Internet banking Mobile banking Total No: of response 28 4 8 9 1 50 In percentage 56 8 16 18 2 100
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Above analysis shows that about 56% of the customers are using savings bank account for their transactions, 18 % of the customers are using internet banking and only 2% customers prefer mobile banking. The reason behind the decrease in percentage of mobile banking users are lack of awareness about the service.
Fig. 4.1 Service of federal bank mostly using
4.2 Opinion about customers usage of Fed Mobile (Mobile Banking) A question was asked to the respondents to specify the period of using Fed Mobile. The responses are tabulated below in table 4.2 Table 4.2 Table showing customers using Fed Mobile
Response
No. of response
In percentage
Less than 6 months
42
84
6-12 months
16
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More than 1 year
Total
50
100
It was seen that about 84% of customers are using FedMobile less than 6 months and remaining 16% customers are using Fed Mobile in between 6-12 months.
4.3 Source of customers knowledge about mobile banking (Fed Mobile) Respondents were asked about the source of knowledge about Fed Mobile.The response of customers are tabulated in table 4.3
Table 4.3 Source of customers knowledge about mobile banking (Fed Mobile)
Response
No. of response
In percentage
Advertisement
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20
50
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Employees of bank
10
20
Friends
17
24
Others
Total
50
100
Above analysis shows that most of the customers get the knowledge of Fed Mobile from advertisements (50%) and through friends (24%).only 20% of the customers got the knowledge of mobile banking from employees of the bank.
Fig. 4.3 Source of customers knowledge about mobile banking (Fed Mobile)
4.4 Fed Mobile convenient than traditional banking
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Responses from customers about most convenient service are collected and it tabulated in table 4.4 Table 4.4 Tables showing Fed Mobile convenient than traditional banking
Above analysis shows that most of the customers prefer traditional banking rather than mobile banking and according to survey mobile banking is not really convenient to them. The main reason is lack of awareness about fed
Response
No. of response
In percentage
Very much
Some what
16
undecided
10
20
Not really
16
32
Not at all
12
24
Total
50
100
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mobile. So proper guidelines should provide about its usages and advantages over traditional banking
Fig. 4.4 Fed Mobile convenient than traditional banking
4.5 Most satisfied service of Federal Bank Responses were collected from customers on most satisfied service and it is tabulated in table 4.5 Table 4.5 Table showing most satisfied service of Federal Bank
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It was seen that both the traditional banking (42%) and internet banking (38%) are mostly satisfied by the customers and only 16% of customers are satisfied with services of mobile banking. So services from mobile banking should be augmented so that more customers could be satisfied.
Response
No. of response
In percentage
Traditional banking
21
42
Internet banking
19
38
Mobile banking
16
others
Total
50
100
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Fig. 4.5 Most satisfied service of Federal Bank
4.6 Feature of Fed Mobile like more Responses were collected from the customers about the feature in Fed Mobile they like more. It is tabulated and shown in table 4.6
Table 4.6 Table showing feature of Fed Mobile like more
Response
No. of response
In percentage
Flexibility
Time saving
40
80
Durability
Easy accessibility
16
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Total
50
100
About 80% of the customers like the time saving feature of Fed Mobile, so from the survey it is clear that customers like the any where any time feature of Fed mobile more. And so it is clear that fed mobile reduces time to do banking.
Fig. 4.6 Feature of Fed Mobile like more
4.7 Fed Mobile costlier than other mode of banking
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Customers are asked the cost factor in using Fed Mobile. The response are collected and tabulated in table 4.7
Table 4.7 Table showing Fed Mobile costlier than other mode of banking
Response
No. of response
In percentage
Strongly agree
Agree
12
24
Neither agree nor disagree
13
26
Disagree
16
32
Strongly disagree
10
Total
50
100
Above analysis shows that most of the customers ie, about 24 % of the customers suggest that Fed Mobile is not much costlier than other mode of banking but 32% of the customers agree with opinion of cost factor because of
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the charges applied by mobile network provider. So it is advised that Federal Bank should tie up with network providers so that the additional charges can be reduced and there by more customers can be satisfied.
Fig. 4.7 Fed Mobile costlier than other mode of banking
4.8 Customer satisfaction with the facilities provided by Fed Mobile A question was asked to the customers regarding the satisfaction level of customer in using the service and it is tabulated in table 4.8
Table 4.8 Customer satisfaction with the facilities provided by Fed Mobile
Response
No. of response
In percentage
Highly satisfied
Satisfied
26
52
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Neutral
10
Dissatisfied
10
20
Highly dissatisfied
12
Total
50
100
It was seen that about 52% of customers are satisfied with services from fed mobile and about 20% customers are dissatisfied with services. So services should be augmented so that satisfaction level will be increased.
Fig. 4.8 Customer satisfaction with the facilities provided by Fed Mobile
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4.9 Necessity of OTP pin before every transaction. Customers suggestions regarding the necessity of OTP pin before transactions are collected are it is tabulated in table 4.9
Table 4.9 Necessity of OTP pin before every transaction.
Response
No. of response
In percentage
Strongly agree
18
36
Agree
16
32
12
Disagree
16
Strongly disagree
Total
50
100
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Above analysis shows that most of the customers suggest that it is necessary for using OTP pin before every transaction; it can provide better security to the customers in every transaction. More than 60% of the customers are agreed with the necessity of OTP pin.
Fig. 4.9 Necessity of OTP pin before every transaction
4.10 Customer knowledge about Mobile Banking (Fed Mobile) Responses from the customers are collected regarding their knowledge on mobile banking. The responses are tabulated and shown in table 4.10
Table 4.10 Table showing knowledge about Mobile Banking (Fed Mobile)
Response
No. of response
In percentage
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Yes
35
70
No
15
30
Total
50
100
It is seen that about 70 % of customers have the knowledge about the mobile banking and only 30% of customers are unaware of mobile banking. So it is suggested to provide more awareness for customers
4.11 Knowledge about Inter Mobile Payment Service (IMPS) A question was asked to the respondents about the knowledge of IMPS and it is tabulated in table 4.11
Table 4.11 Knowledge about Inter Mobile Payment Service (IMPS)
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Response
No. of response
In percentage
Yes
12
No
44
88
Total
50
100
About 88% of the customers dont have the knowledge about IMPS, the reason may be the service IMPS is a latest one and its insufficient promotion measures also would be the reason.
4.12 Customer interest on mobile banking Response about the knowledge of mobile banking is collected from customers and it is tabulated shown in table 4.12
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Table: 4.12 Table showing customer interest on mobile banking
Response
No. of response
In percentage
Very interested
23
46
Some what interested
11
22
Neutral
12
Not very interested
16
Not at all interested
Total
50
100
It is seen that customers about 46% are very much interested with mobile banking and only 16% are not interested in mobile banking.
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Fig. 4.12 Customer interest on mobile banking
4.13.1 Level of awareness about mobile recharging services Responses are collected from the customers about their awareness on recharging services. The responses are tabulated in table 4.13.1 Table 4.13.1 Level of awareness about mobile recharging services
Response
No. of response
In percentage
Extremely aware 11 Moderately aware 26 Some what aware 8 Slightly aware 4

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22
52
16
8
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Not at all aware 1 Total 50 100 2
Above analysis shows that 52% of the customers are moderately aware with the mobile recharge service of Fed Mobile. This means most of the customers are almost aware with the services from Fed Mobile.
Fig 4.13.1 Level of awareness about mobile recharging services
4.13.2 Level of awareness about bill payment services Responses are collected from the customers about their awareness on bill payment services. The responses are tabulated in table 4.13.2 Table 4.13.2
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Level of awareness about bill payment services
Response
No. of response
In percentage
Extremely aware 14 Moderately aware 28 Some what aware 3 Slightly aware 3 Not at all aware 2 Total 50 100 4 6 6 56 28
Above analysis shows that 56% of the customers are moderately aware with the mobile recharge service of Fed Mobile. This means most of the customers are almost aware with the recharge services from Fed Mobile.
4.13.3 Level of awareness about fund transfer services

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Responses are collected from the customers about their awareness on fund transfer services. The responses are tabulated in table 4.13.3 Table 4.13.3 Level of awareness about fund transfer services
Response
No. of response
In percentage
Extremely aware 15 Moderately aware 24 Some what aware 5 Slightly aware 4 Not at all aware 2 Total 50 100 4 8 10 48 30
Above analysis shows that 48% of the customers are moderately aware with the mobile recharge service of Fed Mobile. This means most of the customers are almost aware with the fund transfer services from Fed Mobile.
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Fig 4.13.3 Level of awareness about fund transfer services
4.13.4 Level of awareness about ticket booking services Responses are collected from the customers about their awareness on ticket booking services. The responses are tabulated in table 4.13.4 Table 4.13.4 Level of awareness about ticket booking services
Response
No. of response
In percentage
Extremely aware 12 Moderately aware 29 Some what aware 5

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24
58
10
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Slightly aware 3 Not at all aware 1 Total 50 100 2 6
Above analysis shows that 58% of the customers are moderately aware with the ticket booking service of Fed Mobile. This means most of the customers are almost aware with the ticket booking services from Fed Mobile.
4.13.5 Level of awareness about cheque book request services Responses are collected from the customers about their awareness on cheque book request services. The responses are tabulated in table 4.13.5 Table 4.13.5 Level of awareness about cheque book request services
Response
No. of response
In percentage
Extremely aware 10 20
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Moderately aware 15 Some what aware 10 Slightly aware 8 Not at all aware 7 Total 50 100 14 16 20 30
Above analysis shows that the customers are slightly aware with the cheque book request service of Fed Mobile. This means most of the customers are almost slightly aware with the cheque book request services from Fed Mobile. So more promotion should be provided to these services.
Fig. 4.13.5 Level of awareness about cheque book request services
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4.14 Kinds of customers using mobile banking more Customers interests on mobile banking are collected from respondents and it is tabulated in table 4.14. Table 4.14 Table showing kinds of customers using mobile banking more. Response
No. of response
In percentage
Businessmen
20
40
Professionals
26
52
Common people
Total
50
100
According to customers opinion both professionals (52%) and businessmens (40%) are using the mobile banking more .so Federal Bank should concentrate on these types of customers more. .
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Fig 4.14 Customer interest on mobile banking
4.15 Is people in branches are not having enough time to explain the product features. Respondents were asked about the employees interaction with customers in branches and the response are tabulated in table 4.15
Table 4.15 Is people in branches are not having enough time to explain the product features.
Response
No. of response
In percentage
Yes
40
80
No
10
20
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Total
50
100
According to the survey, the people in the branches are not having enough time to explain the product features and about 80% of customers suggest this. So it is advised to include a person exclusively in branches to help customers and there by the customers will get more awareness on products and immediate feedback can also be collected.
4.16 Customer knowledge about services like NEFT, Balance enquiry, cheque book request are available through Fed Mobile. Customers are asked about the services available through Fed Mobile and their responses are tabulated in table 4.16.
Table 4.16 Knowledge about services like NEFT, Balance enquiry, cheque book request are available through Fed Mobile.
Response
No. of response
In percentage
Yes
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11
22
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No
39
78
Total
50
100
Above analysis shows that most of the customers are no aware of the facility ie, about 78% customers suggest this. And only 22% have knowledge about this.
4.17 Knowledge about free of cost availability of Fed Mobile service Respondents are asked about free of cost availability of Fed Mobile service. The responses are tabulated and shown in table 4.17
Table 4.17 Knowledge about free of cost availability of Fed Mobile service
Response
No. of response
In percentage
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yes
no
46
92
Total
50
100
Above analysis shows that about 90% of customers dont know that fed Mobile is available in free of cost and only 8% customers know about it.
4.18 Customer fear of additional cost An attempt was made to test the customer fear of additional cost and the responses are tabulated and shown in table 4.18
Table 4.18 Table showing customers fear of additional cost
Response
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No. of response
In percentage
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Very much
34
68
Some what
10
20
undecided
Not really
Not at all
Total
50
100
Most of the customers fear of the additional cost for using fed mobile. About 68% of the customers are very much fear of additional cost the reason may be lack of awareness about mobile banking.
Fig. 4.18 Customers fear of additional cost
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4.19 Customer knowledge about transaction limit Responses were collected from the customers about their knowledge on transaction limit which is tabulated in table 4.19
Table 4.19 Table showing customer knowledge about transaction limit
Response
No. of response
In percentage
Yes
18
No
41
82
Total
50
100
Above analysis shows that about 82% of the customers dont know about the transaction limit available in fed mobile and only 18% of the customers know about the transaction limit.
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4.20 Necessity of a person in branch exclusively to help customers An attempt was made to test whether a person is exclusively needed in the branch to help the customers and the response are tabulated in table 4.20
Table 4.20
Response
No. of response
In percentage
Yes
50
100
No
Total
50
100
Necessity of a person in branch exclusively to help customers
Above analysis shows that 100% of the customers have the opinion that a person is exclusively needed in the branches to help the customers. So it is
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advised to place person in branches so the relationship with the customers can be more strengthened.
4.21 Customers knowledge about use of Fed Mobile in national roaming Responses from the customers are collected to test about their knowledge on national roaming facility in Fed Mobile. The responses are tabulated in table 4.21
Table 4.21 Customers knowledge about use of Fed Mobile in national roaming
Response
No. of response
In percentage
Yes
No
47
94
Total
50
100
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Above analysis shows that about 94% of the customers dont have the knowledge about availability of Fed Mobile in national roaming. So better awareness must need to be provided.
4.22 Customer knowledge about all the service from Fed Mobile Responses are collected from the customers about the knowledge of services about Fed Mobile. It is tabulated in table 4.22 Table 4.22 Customer knowledge about all the service from FedMobile
Response
No. of response
In percentage
Strongly agree
Agree
12
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Disagree
30
60
Strongly disagree
10
20
Total
50
100
Above analysis shows that about 60% of customers agree that they dont have knowledge of all the services of Fed Mobile. Only 8% of customers know about all the services. So the bank should provide better guidelines to their customers in understanding the services.
Fig. 4.22 Customer knowledge about all the service from Fed Mobile
4.23 Opinion about need for promotion
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Responses are collected from the customers asking about the need for promotion. Their suggestions are tabulated and it is shown in table 4.23
Table 4.23 Table showing Need for promotion
Response
No. of response
In percentage
Yes
50
100
No
Total
50
100
All the customers have the opinion that Fed Mobile need more promotion. The reasons for their suggestions are shown in table 4.24
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Table 4.24 Table showing response of customer about promotion
Response
No. of response
In percentage
For better awareness
12
24
For knowing more about Fed Mobile.
16
32
For demonstration of service.
16
More customers will use it.
14
28
Total
50
100
About 24 % of the customers suggest that through promotion the customer will get better awareness. And 32% of the customers suggest that the promotion will help to know more about the service and 16% of customer suggest that the promotion will give them a demonstration about Fed Mobile ie, how to use it? And how to make transactions? It is seen that 28% of people suggest that through more promotion more customers will use it.
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4.25 Weighted average analysis Customers awareness about the services and their level of awareness. Weighted average analysis on customer awareness about the services and their level of awareness are tabulated in table 4.25
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Table 4.25 Customers awareness about the services and their level of awareness. Level of awareness Weight ed average
services Extremel Moderatel Somewh y aware y aware at aware Mobile rechargin g
Slightl y aware
Not at all aware
Rank
11
26
3.84
Bill payment
14
28
4.02
Fund transfer
15
24
3.92
Ticket booking 12 Cheque book request

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3.96
10
15
10
3.26
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From the above analysis it is clear that almost all the customers are moderately aware with the services from Fed Mobile. From the analysis bill payment services are ranked first and it is the service that the customers mostly aware. Second ranked services is ticket booking and third ranked service from Fed Mobile is fund transfer services. Mobile recharging and Cheque book service request services are ranked fourth and fifth respectively. Thus from the weighted average analysis customer awareness about services are obtained. So it is advised to provide more promotion to these services so customers will get more awareness about the services. Thus it can be concluded that the customers are slightly aware with the services provided with the Fed Mobile and it is advised to conduct more promotion programmes to provide the customers more awareness about the services
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Chapter 5 Findings, Suggestions and Conclusion
FINDINGS:
Majority of the customers are not aware about all the services about all the services provided by mobile banking (Fed Mobile).
About 56% of the customers are using savings bank accounts for their transaction and only2% customers prefer mobile banking for their transactions.
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From the above table it is inferred that about 50% of the customers obtain the knowledge of Fed Mobile from advertisement and 24% of customers from friends. Majority of customers ie, about 42% of the customers are satisfied with traditional banking and only 16% customers are satisfied with mobile banking. Most of the customers prefer the time saving feature of Fed Mobile ie, about 80% of the customers like this feature. About 52% of the customers are satisfied with the service provided from Fed Mobile. Most of the customers suggest that OTP pin is necessary before every transaction. From the survey conducted it is clear that about 88% of the customers dont have the knowledge about IMPS. From the above table it is said that customers have the opinion that both professionals and businessmens mostly prefer mobile banking. From the survey it is inferred that more than 60% of the customers have interest on mobile banking. Most of the customers (80%) suggest that the employees in the branches have not enough time to explain about services provided by Federal Bank. About 60% of customers fear about the additional cost for using Fed Mobile.
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From the survey it is clear that about 78% of the customers dont know about the facilities like ticket booking, NEFT, cheque book request available through Fed Mobile. About 92% of the customers dont know that Fed Mobile is available in free of cost.
SUGGESTIONS AND RECOMMANDATIONS
Federal bank should conduct more awareness programmes to the customers ie, through promotions mainly advertisements in medias, online advertising, pop up ads etc.
Mobile alerts regarding new services and existing services should be providing in form of messages to the customers.
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A person should appoint exclusively in branches for better customer service and it help in providing customers information regarding
services available, and it also help in collecting immediate feedback from the customers.
Bank should conduct customer meeting monthly or quarterly so that more interaction with customers are possible.
ATM locator facility should be included in Fed Mobile service so that near by ATMs can be easily located by the customers. It is suggested that an information kiosks can be opened in front of branches; it helps in giving demos of mobile banking and also other services. Federal Bank should try to make tie-ups with mobile network providers in order to eliminate the additional cost of using Fed Mobile ie, cost of GPRS and SMS cost.
CONCLUSION:
Federal Bank Ltd. the leading public sector bank in India, this esteemed organization has built up a reputation of being a customer friendly Bank with a history of around seven decades of public confidence and trust. As a mobile banking provider Federal Bank plays an important role in banking sector. The study mainly concentrated on customer awareness on mobile banking on Federal Bank Ltd. Mobile Banking seems to possess the potential to become one of the widely spread and accepted application in the field of Mobile Commerce. As the
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mobile industry is growing wider and mobiles are becoming common in every ones hand so mobile banking has a wide opportunity to grow. Its an opportunity for banks for the banks to provide this innovative, value added service and there by attracting more customers. Thus the study on customer awareness on mobile banking in Federal Bank Ltd. helps me to understand a lot about the mobile banking services and its advantages over other services. This study helps me to provide customers more awareness and to share the knowledge about the mobile banking to the customers. Therefore by seeking information on various aspects of mobile banking, Federal Bank Your Perfect Banking Partner through Fed Mobile provides the customers the better solution for Any Time Any Where Banking.
Appendix
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QUESTIONNAIRE Respected Sir / Madam, I Sreesankar, an MBA student of Institute of Management in KeralaKundara am doing a project work at Federal Bank as apart of curriculum. So please be kind enough to co-operate with me in filling this questionnaire. The data, which I am going to collect will be strictly confidential and will be used for the purpose of my project work. Name: Occupation: Put tick mark in the appropriate boxes For customers using mobile banking 1. How long you have been a customer of Federal Bank? Less than 1 year 5-10 year 1-5 years More than 10 years
2. Which service of federal bank you mostly using? Savings bank cards Internet banking
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current accounts Mobile banking
debit
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3. How long you are using FEDMOBILE? Less than 6 months More than 1 year 4. From where you get knowledge of FEDMOBILE? Advertisement Others
5. FEDMOBILE is more convenient than Traditional Banking.
6-12 months
Employees of bank
Friends
Very much Not really
Somewhat Not at all
Undecided
6. Which facilities of banking you are mostly satisfied? Traditional Banking Internet Banking Mobile Banking Others
7. Which feature of FEDMOBILE you like more?
Flexibility Time saving Durability Easy accessibility

8. FEDMOBILE is costlier then other modes of banking.
Somewhat Not at all
Undecided
9. I am satisfied with the facilities provided by FEDMOBILE .
Highly satisfied Dissatisfied

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Satisfied Highly dissatisfied
Neutral
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10. It is necessary for using OTP pin before every transaction.
Somewhat Not at all
Undecided
11. Is FEDMOBILE need more promotion?
Yes
No
If yes _____________________________________________________________ If no ________________________________________________________________
12. Do you heard about IMPS (Inter Mobile Payment Service), new service launched by Federal bank? Yes No
Level of awareness Extremely aware Moderatel y aware Somewha t aware Slightly aware Not at all aware
Services Mobile rechargin g Bill payment Fund transfer Ticket booking Cheque book request
13. Level of Awareness about the services from Fed Mobile?

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For customers not using mobile banking

14. How long you have been the customer of Federal Bank?
Less than 1 year 5-10 year
1-5 years More than 10 years
15.Which service of federal bank you mostly using? Savings bank cards Internet banking 16. Do you heard about mobile banking? Yes No Mobile banking current accounts debit
17. Are you interested in mobile banking? Very interested Not very interested somewhat interested Not at all interested Neutral
18. According to your opinion which kinds of customer use FEDMOBILE more? Businessmen professionals common people
19. Do you think that people in the Branches are not having enough time to explain the product features to you? Yes No
20. Do you know now Federal Bank is providing mobile banking as free of cost?
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Yes
No
21. Do you think that a person must be there exclusively in the Branches to help customers so that customers can be made aware of such products? Yes No
22. Do you know about the transaction limit for FEDMOBILE?
Yes
No
23. I am fear about the additional cost for using FEDMOBILE.
Somewhat Not at all
Undecided
24. Do you know that NEFT, Ticket Booking, Balance inquiry, Cheque Book request etc are available through FEDMOBILE? Yes No
25. Do you know FEDMOBILE can use in national roaming?
Yes
No
26. I know about all services available through FEDMOBILE.
Somewhat Not at all
Undecided
27. Do you have any suggestions Yes No
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If yes _____________________________________________________________
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A Study on Customer Awareness On Mobile Banking

1.2 STATEMENT OF THE PROBLEM

A Study on Customer Awareness On Mobile Banking

1.3 REVIEW OF LITERATURE Mobile banking:

A Study on Customer Awareness On Mobile Banking

A Study on Customer Awareness On Mobile Banking

A Study on Customer Awareness On Mobile Banking

A Study on Customer Awareness On Mobile Banking

A Study on Customer Awareness On Mobile Banking

banking services provided by the bank

services offered by the bank.

A Study on Customer Awareness On Mobile Banking

A Study on Customer Awareness On Mobile Banking

A Study on Customer Awareness On Mobile Banking

A Study on Customer Awareness On Mobile Banking

Chapter-5 deals with finding, conclusion and suggestions.

CHAPTER 2 INDUSTRY PROFILE

A Study on Customer Awareness On Mobile Banking

A Study on Customer Awareness On Mobile Banking

A Study on Customer Awareness On Mobile Banking

A Study on Customer Awareness On Mobile Banking

The commercial role of banks is not limited to banking, and includes:

internet banking or other means

A Study on Customer Awareness On Mobile Banking

A Study on Customer Awareness On Mobile Banking

A branchbanking centre or financial centre is a retail location where a

simple banking transactions by remotely linking into a banking network.

A Study on Customer Awareness On Mobile Banking

Video banking is a term used for performing banking transactions or

A Study on Customer Awareness On Mobile Banking

Banks: Locally operated financial institutions that

financial services and credit to under-served markets or populations.

regulation. Many offshore banks are essentially private banks.

and make only what they consider to be socially-responsible investments.

A Study on Customer Awareness On Mobile Banking

A Study on Customer Awareness On Mobile Banking

A Study on Customer Awareness On Mobile Banking

A Study on Customer Awareness On Mobile Banking

A Study on Customer Awareness On Mobile Banking

A Study on Customer Awareness On Mobile Banking

Structure of banks in India

A Study on Customer Awareness On Mobile Banking

CHAPTER 3 COMPANY PROFILE

A Study on Customer Awareness On Mobile Banking

A Study on Customer Awareness On Mobile Banking

A Study on Customer Awareness On Mobile Banking

A Study on Customer Awareness On Mobile Banking

A Study on Customer Awareness On Mobile Banking

Savings Bank Current Accounts IMK.Kundara Page 31

A Study on Customer Awareness On Mobile Banking

A Study on Customer Awareness On Mobile Banking

A Study on Customer Awareness On Mobile Banking

A Study on Customer Awareness On Mobile Banking

A Study on Customer Awareness On Mobile Banking

Chapter 4 DATA ANALYSIS AND INTERPETATION

A Study on Customer Awareness On Mobile Banking

Data analysis and interpretation:

A Study on Customer Awareness On Mobile Banking

Fig. 4.1 Service of federal bank mostly using

Less than 6 months

A Study on Customer Awareness On Mobile Banking

More than 1 year

A Study on Customer Awareness On Mobile Banking