E-BANKING CHANNELS (ATM, PHONE BANKING, MOBILE BANKING, NET BANKING) A CASE STUDY ON STANDARD CHARTERED BANK

INTRODUCTION TO INDIAN BANKING SYSTEM Historical perspective Bank of Hindustan, set up in 1870, was the earliest Indian Bank. Banking in India on modern lines started with the establishment of three presidency banks under Presidency Bank's act 1876 i.e. Bank of Calcutta, Bank of Bombay and Bank of Madras. In 1921, all presidency banks were amalgamated to form the Imperial Bank of India. Imperial bank carried out limited central banking functions also prior to establishment of RBI. It engaged in all types of commercial banking business except dealing in foreign exchange.

Banking system in India The Indian banking can be broadly categorized into nationalized (government owned), private banks and specialized banking institutions. The Reserve Bank of India acts a centralized body monitoring any discrepancies and shortcoming in the system. Since the nationalization of banks in 1969, the public sector banks or the nationalized banks have acquired a place of prominence and has since then seen tremendous progress. The need to become highly customer focused has forced the slow-moving public sector banks to adopt a fast track approach. The unleashing of products and services through the net has galvanized players at all levels of the banking and financial institutions market grid to look anew at their existing portfolio offering.

The Reserve Bank of India act as a centralized body monitoring any discrepancies and shortcoming in the system. It is the foremost monitoring body in the Indian financial sector.

The nationalized banks (i.e. government-owned banks) continue to dominate the Indian banking arena. Industry estimates indicate that out of 274 commercial banks operating in India, 223 banks are in the public sector and 51 are in the private sector. The private sector bank grid also includes 24 foreign banks that have started their operations here. Under the ambit of the nationalized banks come the specialized banking institutions. These co-operatives, rural banks focus on areas of agriculture, rural development etc. The Indian banking has come from a long way from being a sleepy business institution to a highly proactive and dynamic entity. This transformation has been largely brought about by the large dose of liberalization and economic reforms that allowed banks to explore new business opportunities rather than generating revenues from conventional streams (i.e. borrowing and lending). The banking in India is highly fragmented with 30 banking units contributing to almost 50% of deposits and 60% of advances. Indian nationalized banks (banks owned by the

government) continue to be the major lenders in the economy due to their sheer size and penetrative networks which assures them high deposit mobilization. Indias banking system has several outstanding achievements to its credit, the most striking of which is its reach. An extensive banking network has been established in the last thirty years, and Indias banking system is no longer confined to metropolitan cities and large towns: in fact, Indian banks are now spread out into the remote corners of our country. In terms of the number of branches, Indias banking system is one of the largest, if not the largest in the world today. An even more significant achievement is the close association of Indias banking system with Indias development efforts. The diversification and development of our economy, and the acceleration of the growth process, are in no small measure due to the active role that banks have played in financing economic activities in different sectors.

COMPANY PROFILE About the Standard Chartered Bank Standard Chartered Bank is a British bank headquartered in London with operations in more than fifty countries. It operates a network of over 1,600 branches (including subsidiaries, associates and joint ventures) and employs almost 60,000 people. Despite its British base it has few customers in the United Kingdom and 90% of its profits come from the Asia Pacific Region, South Asia, the Middle East and Africa. The banks history is entwined with the development of the British Empire its operations lie predominantly in former British colonies, though over the past two decades it has expanded into countries that have historically had little British influence. It aims to provide a safe regulatory bridge between these developing economies. It now focuses on consumer, corporate and institutional banking, and on the provision of treasury services areas in which the Group had particular strength and expertise. Standard Chartered is listed on the London Stock Exchange and the Hong Kong Stock Exchange and is among the top 20 constituent members of the FTSE 100 Index.

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Standard Chartered PLC

Type Founded Headquarters Key people Industry Products Revenue Operating income Net income Employees Website

Public 1852 London, United Kingdom E. Mervyn Davies CBE, Chairman, Peter Sands, Chief Executive Banking Financial Services $13.0 billion USD (2009) $8.620 billion USD (2010) $2.4 billion USD (2010) Nearly 60,000 (2011) www.standardchartered.com

OBJECTIVES OF THE STUDY To know the customer awareness regarding e-banking channels. To find out the reasons for using the e-banking channels by the customers. To determine the satisfaction level of response communicated in regard to the e-banking channels by bank. RESEARCH METHODOLOGY It describes the data collection method, the sampling plan, the tools of investigation, planning and testing of questionnaire and the limitations of the study. The study requires the data to be collected from two different sources i.e. the primary source and the secondary source. The primary data is collected by the means of a consumer survey designed to know the consumer preferences in regards to the selected modes of e -banking and the secondary data through the various journals and newspapers.

Data Source: (a) Primary Data: Primary data was collected by means of questionnaires and interviews both formal and informal (b) Secondary data: Secondary data collected by referring to various books, newspapers,

magazines, journals, clips and internet (details in bibliography) Research Design Present study enquired and brought forward the results concerning the set objectives specified before which relates to description of the state of affairs as a result it clearly states that it was a DESCRIPTIVE STUDY, which included fact finding enquiries of different kinds. Sampling Design Universe: - The universe was finite in this study, since the population of Ludhiana is certain and can be counted. Sampling Unit: - The sampling unit was an individual who is having account in standard chartered bank. Sample Size: - The sample size for the study was 100 individuals of Ludhiana city. Sampling Procedure: - Due to the time and resource constraints the sampling procedure which was followed by Non Probability sampling which does not afford any basis for estimating the probability that each item in the population has to be included in sample and under it Quota sampling was used in which specific quotas were filled from different strata i.e. account holder of standard chartered bank judgmental sampling. Strata refer to different sub population, which are individually more homogeneous than the total population.

Research Instruments: (a) Questionnaires (open and close ended) * refer annexure (b) Interviews (formal and informal) (c) Discussion

LIMITATIONS 1. Due to time and money constraint, study was restricted with in Ludhiana citys few areas only. 2. The sample size was restricted to 100 only which itself acts as a limitation on the accurate findings of the project. 3. Some people dont want to give right information due to some constraints. 4. Best efforts were made to incorporate all-important variables in study, yet chances of some of variables not appearing in study are not ruled out. 5. Some biasness must be there while evaluating the results.

QUESTIONNAIRE

(Please tick the appropriate option)

Q-1 Do you have an account in standard chartered Bank? Yes

No Q-2 Which account you are having? Current Saving Q-3 For how long you are operating with this Bank? < 6 month 6 month-1 yr 1-2yr 2-4yr Q-4 How frequently you do your banking transactions? No. of times daily Once daily 2-3times a weak Monthly Occasionally Q-5 Who carries on your Banking transactions? Himself Through relative An agent/representative

Q-6 Bank?

How much importance you give to following factors while opening An Account with the

Most Important

Very Important

Indifferent

Less Important

Not Important

Reputation Min Balance to be maintained Employees Behaviour No. of Branches Service charges No. of services Working hrs of bank Q-7 Which of the following Banking services you are aware and have used? Aware ATM Phone Banking Mobile Banking Net Banking (If none of these channels are used then proceed to Q-11) Q-8 What motivates you to use e-banking channels? Convenience Lower cost Involves less time Emergency Any other Q-9 Which of the following transactions/queries you make with help of e-banking channels? ATM Phone banking Mobile Banking Net Banking Used

Check the balance statement Enquire about your account Pay your bills Cash withdrawal Transfer funds Others Q-10 Which of the following schemes motivate you to use e-banking channels? Special gifts Lucky draws Mobile shopping Any other Q-11 Why havent you use e-banking channels? Costly Lack of personal attention Not reliable Lack of infrastructure Any other Q-12(a) Have you face problems while dealing with the Bank service? Always Sometimes Rarely Never Q-12 (b) Does bank provide you the knowledge of e-banking services? Yes No Q13 How promptly the response is communicated to you in regard to the e-banking service?

Low Requests Questions Complaints Problems

Medium

High

Q-14 Which of the following sources you feel be the best to make the customers aware about the bank and its product? News paper Magazine Hoarding Brouchers Agent T.V Internet Bank staff Any other

Any suggestions:_____________________________________________ ____________________________________________________________-

Name: Occupation Mobile/residence no.: Address: