A STUDY OF CONSUMER SATISFAC

TION REGARDING INTERNET BANK

ING
 INTERNET BANKING
Electronic payment system

Enables customers to conduct a range of financial

transactions

Part of the core banking system operated by a bank

contrast to branch banking which was the traditional

way customers accessed banking services

“Virtual banks" (or “direct banks”) have only an internet

presence, which enables them to lower costs than tradition
al brick-and-mortar banks
 BACKGROUND TO THE
STUDY
Customer satisfaction

Customer satisfaction is a measure of how products and

services supplied by a company meet a surpass customer
expectation.

Customer satisfaction is also defined as “ the number of

customer, or percentage of total customers, whose reported
experience with a firm, its products or its services (ratings)
exceeds specified satisfaction goal”.
 CONT…
Technology is making a tremendous impact upon banks
in a general and the financial services is no exception. The
application of information and communication technology
concepts techniques, policies and implementation strategies
to banking services has become a subject of fundamentals
importance and concerns to all banks and indeed a
prerequisite for local and global competitiveness in banking
industry. As a result of this technological improvement
business environment in financial sector is extremely
dynamic and experience rapid changes and demand banks
to serve their customers through the use of internet.
 CONT…
But the technology is creating issues

Machine out of order

Machine out of cash

No printing statements

Cards get blocked

Frequent breakdown of ATM services; etc.

Due to all these problems it has created doubts in the m

inds of customers thereby affecting their level of satisfa
ction.
 OBJECTIVE

The following are the objectives of this study:

To examine the components of internet banking

To examine the impact of internet banking on customer’s

satisfaction

To determine the factors limiting the use of internet bank

ing
SIGNIFICANCE OF THE STUDY

The following are the significance of the study :

Outcome of this study will be useful guide for the

management of banks at determining the impact if
internet banking on customer satisfaction

This research will also serve as a resource base to

other scholars and researchers interested in carrying
out further research in this field subsequently, if applied
will go to an extent to provide new explanation to the
topic
LIMITATION OF THE STUDY
This study on the impact of internet banking on customer
satisfaction will cover all the components of internet
banking with a careful examination of its impact on
customer’s satisfaction.\

Financial constraint – Insufficient fund tends to

impact the efficiency of the researcher in sourcing for
the relevant materials, literature or information and in
the process of data collection (internet, questionnaire
and interview)

Time constraint – The researcher will simultaneously

engage in this study with other academic work. This
consequently will cut down on the time developed for
the research work
 CONT…

There may be some bias in the response of the

respondents which cannot be ruled out fully

Sudden change in internet banking policies can effect

the results

The study is limit to areas of Delhi NCR only

As the study is based on a sample, therefore, the

findings may not reveal the factual information about
the topic
 LITERATURE REVIEW

Internet banking has gained higher acceptance from the

customers who are highly supportive of new technology.
Internet banking acts as a kind of financial intermediation
which makes transaction through Internet (Ahanger, 2011).
In the banking industry, Internet banking is the industry
which uses computer technology to provide better services
to customers and help in the development of banking
practices (Rahmath and Hema, 2010).
 CONT…

Technological innovations are one of the effective ways to

increase the level of service quality to satisfy customer
needs. Through the advanced technology and innovation in
the financial and banking sectors, Internet banking has
become more familiar to the customers of traditional banks
(Acharya et al., 2008). Internet banking is offered by the
retail banking in many developed countries and customers
can make transactions without having to leave their homes
or workplace (Munusamy et al., 2010).
 CONT…

In Internet banking, e-service quality is important to the

banks because it will affect customer satisfaction. Zhao and
Saha, (2005) have identify the nine dimensions of e-service
quality. According to Nupur (2010), a partial of the service
quality dimension showed a significant relationship with
customer satisfaction .

Web Design and Content Web design is an important

elements to attract the usage of Internet banking and the
importance of web design will be reflected in the customers’
satisfaction level (Ahmad and Al-Zu’bi, 2011).Thus, it will
pose a positive significant impact on customer satisfaction.
 CONT…

Furthermore, the basic requirements for a good web design

should include a good screen layout and design, clear
graphics and vibrant color configuration (Ahmad and
AlZu’bi, 2011). Websites are an important factor in a bank’s
marketing and communications activities with customers.
CONCEPTUAL FRAMEWORK

Customer service

Web design

Satisfaction Assurance

Preferential treatment

Information provision
 METHODOLOGY

Research Methodology
We will do the exploratory research because here we want
to know the satisfaction level of customer towards internet
banking services

Research Design
Population: The population include the people of different
cities who are using internet banking services
 CONT…

Sample size:
The sample size should be around 5000

Sample Technique:
we will take simple random sampling because popula
tion is too large
 CONT…

Collection Instrument & Procedure:

We will try to collect sample through online survey after
the do use Internet banking services

Data analysis method:

Data type is Nominal & ordinal so for this survey we will
use Chi-square method.
 RECOMMENDATIONS AND
SUGGESTIONS

Give proper training to customers for using e- banking

Create a trust in mind of customers towards security of

their accounts

Prompt dealing with the customers and speedy transactions

without harassing them

Time to time seminars should be arranged in different area

about news norms & facilities
 IMPACT OF INTERNET
BANKING ON CUSTOMER
SATISFACTION
 Trust

 Service Quality

 Perceived Ease of Use

 Perceived Usefulness

 Business Performance
 CONCLUSION

The satisfaction level of people who is using internet

Banking services are extremely good

Mostly Youth and Business man are using Internet

Banking services

Despite of so many advantages of Online Banking

services, still people consider it as an alternative for
analyzing their bank records