UNIVERSITY OF CALCUTTA
Project Report [Submitted for the Degree Of B.Com. Honours In Accounting & Finance / Marketing / ………… under the University of Calcutta]
Title of the Project
ONLINE BANKING
Submitted by Name of the Candidate: Subham Agarwal. Registration No.: 017-1121-2143-12 Name of the College: The Bhawanipur Education Society College. College Roll No.: 0101120574
Supervised by Name of the Supervisor: Prof. Dipparna Jana Name of the College: The Bhawanipur Education Society College.
Month & Year of Submission: JANRUARY 2014.
1
Supervisor’s Certificate
This is to certify that Mr. Subham Agarwal, a student of B.Com. Honours in Accounting & Finance of The Bhawaipur Education Society College under the University of Calcutta has worked under my supervision and guidance for his Project Work and prepared a Project Report with the title “ONLINE BANKING” which he is submitting, is his genuine and original work to the best of my knowledge.
Place: Kolkata
Signature:
Date:
Name: Dipparna Jana Designation: Name of College: The Bhawanipur Education Society College
2
Student’s Declaration I hereby declare that the Project Work with the title “ONLINE BANKING” submitted by me for the partial fulfillment of the degree of B.Com. Honours in Accounting & Finance under the University of Calcutta in my original work and has not been submitted earlier to any other University for the fulfillment of the requirement for any course of study.
I also declare that no chapter of this manuscript in whole or in part has been incorporated in this report from any earlier work done by others or by me. However, extracts of any literature which has been used for this report has been duly acknowledged providing details of such literature in the references.
Place: Kolkata
Signature: Name: Subham Agarwal.
Date:
Address: Behind LICI Building
New Market, M.G. Marg Gangtok, Sikkim
Registration No: 017-1121-2143-12 Roll No: 0101120574 3
ACKNOWLEDGEMENT The satisfaction that accompanies that the successful completion of any task would be incomplete without the mention of people whose careless co-orporation made is possible, whose constant guidance and encouragement crown all efforts with success. I would like to thanks our Principal and my supervisor Prof. Dipparna Jana for their consistent guidance, inspiration and constructive suggestions that help me in preparation of the Project on ONLINE BANKING. I thank my colleagues who have helped in successful completion of this project. I also thank Calcutta University for giving us the opportunity to make this project.
4
INDEX SL. NO.
TOPIC EXECUTIVE SUMMERY
1.
CHAPTER I – INTRODUCTION -What is online banking? -Features of Online Banking?
6 7-13 7 7-8
-History of online banking.
8
-History of online banking in India.
9
-ADVANTAGES OF ONLINE BANKING
9
-DISADVANTAGES OF ONLINE BANKING -WHAT IS E-COMMERCE? -OPPORTUNITIES OF ONLINE BANKING
2.
PAGE NO.
9-10 10-11 11
-CHALLENGES OF ONLINE BANKING IN INDIA
11-12
-PROBLEM RELATING TO ONLINE BANKING
12-13
CHAPTER-II – OBJECTIVE
14
5
3.
CHAPTER- III – CONCEPTUAL FRAMEWORK
15-19
4.
CHAPTER-IV – DATA ANALYSIS
20-26
5.
CHAPTER-V– RECOMMENDATIONS AND CONCLUSIOIN
27
6.
CHAPTER-VI – REFERANCES
28
EXECUTIVE SUMMERY Technological developments have been growing at an alarming speed in the international arena. Internet is proudly one of the best in those. So, the banking sector is also making the best utilization of it. In this study based on online banking, it has been observed that the development of online banking has increased by leaps and bounds during the year. Concentrating on the Indian economy , the use of online banking is still in developing stage. Today in India the scope of online banking is growing by good decent rise in usage. The rise in the use of internet is the main criteria for development of online banking.
6
This project will help us to understand how the online banking came into existence and its need in modern world. It shows us the insights of the online banking in India. It shows us the insight of online banking in India. It helps us to understand the opportunity and the challenges related to online banking sector in India.
CHAPTER : I INTRODUCTION
WHAT IS ONLINE BANKING? 7
Online banking is an electronic payment system that enables customers of a financial institution to conduct financial transactions on a website operated by the institution, such as a retail bank, virtual bank, credit union or building society. Online banking is also referred as Internet banking, e-banking, virtual banking and by other terms. To access a financial institution's online banking facility, a customer with Internet access would need to register with the institution for the service, and set up some password (under various names) for customer verification. The password for online banking is normally not the same as for telephone banking. Financial institutions now routinely allocate customers numbers (also under various names), whether or not customers have indicated an intention to access their online banking facility. Customers' numbers are normally not the same as account numbers, because a number of customer accounts can be linked to the one customer number. The customer can link to the customer number any account which the customer controls, which may be cheque, savings, loan, credit card and other accounts. Customer numbers will also not be the same as any debit or credit card issued by the financial institution to the customer. To access online banking, a customer would go to the financial institution's secured website, and enter the online banking facility using the customer number and password previously setup. Some financial institutions have set up additional security steps for access to online banking, but there is no consistency to the approach adopted. Online banking facilities offered by various financial institutions have many features and capabilities in common, but also have some that are application specific.
FEATURES OF ONLINE BANKING. The common features fall broadly into several categories: A bank customer can perform non-transactional tasks through online banking, including
viewing account balances
viewing recent transactions
Downloading bank statements, for example in PDF format
viewing images of paid cheques
8
ordering cheque books
Download periodic account statements
Downloading applications for M-banking, E-banking etc
. Bank customers can transact banking tasks through online banking, including
Funds transfers between the customer's linked accounts Paying third parties, including bill payments (see, e.g., BPAY) and third party fund transfers(see, e.g., FAST)
Investment purchase or sale
Loan applications and transactions, such as repayments of enrollments
Credit card applications
Register utility billers and make bill payments
Financial institution administration
Management of multiple users having varying levels of authority
Transaction approval processthe process of banking has become much faster
Some financial institutions offer unique Internet banking services, for example:
Personal financial management support, such as importing data into personal accounting software. Some online banking platforms support account aggregation to allow the customers to monitor all of their accounts in one place whether they are with their main bank or with other institutions.
HISTORY OF ONLINE BANKING. The precursor for the modern home online banking services were the distance banking services over electronic media from the early 1980s. The term 'Online' became popular 9
in the late '80s and referred to the use of a terminal, keyboard and TV (or monitor) to access the banking system using a phone line. 'Home banking' can also refer to the use of a numeric keypad to send tones down a phone line with instructions to the bank. Online services started in New York in 1981 when four of the city's major banks (Citibank, Chase Manhattan,Chemical and Manufacturers Hanover) offered home banking services using the videotex system.
HISTORY OF ONLINE BANKING IN INDIA….. ICICI bank (INDUSTRIAL CREDIT AND INVESTMENT CORPORATION OF INDIA) is the largest private sector bank in India. ICICI is the first ban to introduce online banking service in India. Today ICICI bank has many online banking services in India. These services are called ICICI NET BANKING.
ADVANTAGES OF ONLINE BANKING. It's generally secure. But make sure that the website you're using has a valid security certificate. This let's you know that the site is protected from cyber-thieves looking to steal your personal and financial information .
You have twenty-four-hour access. When your neighborhood bank closes, you can still access your account and make transactions online. It's a very convenient alternative for those that can't get to the bank during normal hours because of their work schedule, health or any other reason.
You can access your account from virtually anywhere. If you're on a business trip or vacationing away from home, you can still keep a watchful on your money and financial transactions - regardless of your location.
Conducting business online is generally faster than going to the bank. Long teller lines can be time-consuming, especially on a Pay Day. But online, there are no lines to contend with. You can access your account instantly and at your leisure. 0 Many features and services are typically available online. For example, with just a few clicks you can apply for loans, check the progress of your investments,
10
review interest rates and gather other important information that may be spread out over several different brochures in the local bank.
DISADVANTAGES OF ONLINE BANKING.
Yes, online banking is generally secure, but it certainly isn't always secure. Identity theft is running rampant, and banks are by no means immune. And once your information is compromised, it can take months or even years to correct the damage, not to mention possibly costing you thousands of dollars, as well.
Some online banks are more stable than others. Not all online setups are an extension of a brick-and-mortar bank. Some operate completely in cyberspace, without the benefit of an branch that you can actually visit if need be. With no way to physically check out the operation, you must be sure to thoroughly do your homework about the bank's background before giving them any of your money.
Before using a banking site that you aren't familiar with, check to make sure that their deposits are FDIC-insured. If not, you could possibly lose all of your deposits if the bank goes under, or its major shareholders decide to take an extended vacation in Switzerland.
Customer service can be below the quality that you're used to. Some people simply take comfort in being able to talk to another human being face-to-face if they experience a problem. Although most major banks employ a dedicated customer service department specifically for online users, going through the dreaded telephone menu can still be quite irritating to many. Again, some are considerably better (or worse) than others.
Not all online transactions are immediate. Online banking is subject to the same business-day parameters as traditional banking. Therefore, printing out and keeping receipts is still very important, even when banking online .
WHAT IS E-COMMERCE? Electronic commerce, commonly known as E-commerce or eCommerce, is trading in products or services using computer networks, such as the Internet. Electronic commerce draws on technologies such as mobile commerce, electronic funds transfer, supply chain management, Internet marketing, online transaction 11
processing, electronic data interchange(EDI), inventory management systems, and automated data collection systems. Modern electronic commerce typically uses the World Wide Web for at least one part of the transaction's life cycle, although it may also use other technologies such as e-mail. E-commerce businesses usually employ some or all of the following practices:
Provide Etail or virtual storefront on websites with online catalogs, sometimes gathered into a "virtual mall"
Buy or sell on websites like 2vulu online marketplaces.
Gather and use demographic data through web contacts and social media.
Use electronic data interchange, the business-to-business exchange of data.
Reach prospective and established customers by e-mail or fax (for example, with newsletters).
Use business-to-business buying and selling.
Provide secure business transactions
Some common applications related to electronic commerce in online banking are:
Document automation in supply chain and logistics
Domestic and international payment systems
Enterprise content management
Group buying
Automated online assistant
Newsgroups
Online shopping and order tracking
Online banking
Online office suites
12
Shopping cart software
Teleconferencing
Electronic tickets
Social networking
Instant messaging
OPPORTUNITIES OF ONLINE BANKING Timmers (2000) supports this view, highlighting the key features of the Internetsuch as 24hour availability, almost immediate access, and the absence of physical borders. Indeed, the Internet has been one of the key drivers in promoting E-Commerce in the banking sector(Jeevan, 2000). The opportunities for banks in the Internet arena are varied (Stamoulis, 2000).Despite this plethora of opportunities, threats to the e-banks abound. One major threat to banks is the“Internet only” virtual banks. With US$ 2 million, one can set up a fully-functional ,Internet Only bank and provide payment services on the Internet. The Internet banks serve also as gateways offering identification and authorization services toa number of third party service providers. There are user-friendly opportunities for conducting business over the Internet with telephone companies, Energy Company, tax board and other institutions. Demand for those services influences also the usage rates of Internet banks. For example in 2002 in USA, 81867 private individuals submitted electronic tax declarations79727 of them did it through Internet banks and 2140 through tax boards own home page. (20.3% of declarations were submitted electronically). This is increasing the benefits of Internet banks for the consumers and is a win-win situation for the banks and service providers. Several studies including Schultz et al. (2001) suggest that security measures that are inconvenient for users may weaken E-Banking prospect, for example because of lack of user acceptance or outright resistance .Here we note some challenges of Electronic banking systems (H. C. Lau & Etal, 2001) CHALLENGES OF ONLINE BANKING IN INDIA Based on „best practices‟ in developed countries, United Nations Conference on Trade and Development (UNCTAD) report has identified four challenges that developing 13
countries, in general ,are expected to overcome to achieve the advantages that ebanking initiatives can bring about (UNCTAD 2002):
The ability to adopt global technology to local requirement .An adequate level of infrastructure and human capacity building are required before developing countries can adopt the global technology for their local requirements The ability to strengthen public support for e-finance: Historically, most e-finance initiatives in developing countries have been the result of cooperative efforts between the private and public sectors. The ability to create a necessary level of regulatory and institutional frameworks: The lack of regulatory frameworks, trust, security and privacy standards, high trade barriers, customer and investor protections impede progress in implementing e-banking initiatives on a larger scale in many developing countries. The ability to mainstream small and medium scale enterprises(SMEs) towards ebanking: The availability of and access to quality data and banking information is required for SMEs in developing countries to move towards e-banking.
PROBLEM RELATING TO ONLINE BANKING.
Passwords: The key to protecting your Internet banking account is protecting your password. Using a strong password -- one that contains mixed-case letters, numbers, and even symbols if the bank allows it -- will decrease the likelihood of a hacker cracking the password and gaining access to your account. You should also ensure that the password to access your company’s accounts is not the same as any other password you use, since not every site maintains the same level of security a bank does. If a hacker manages to steal a password from an insecure site, he can access any account that password unlocks.
Phishing: One of the primary methods a hacker gains access to account information is through phishing, or tricking the victim into giving up the information voluntarily. A hacker might send an e-mail or even call, pretending to be a representative of the bank and informing you about some irregularities with your account. All you need to do to sort things out is to provide your password or other account information to verify your identity. If you ever receive a communication that appears to be from your bank and requests this type of information, contact your bank by phone immediately. Do not give out account information to a caller, and do not click any links provided in any e-mails that claim to be from your bank. You should also ensure that any employees with access to the company’s accounts follow the same procedures.
14
Keyloggers: Keyloggers are malware programs that record keystrokes and other data, allowing a hacker to capture your password as you enter it. Maintaining upto-date antivirus suites on your company computers can prevent these malicious programs from gaining a foothold, and setting up your network’s firewall to monitor outgoing traffic can help you determine when an infection occurs. Many keyloggers and viruses use email to travel from computer to computer, so adding anti-virus protection to your company’s email server can help filter out these attacks. Two-Factor Authentication:If your bank offers two-factor authentication, adopting the technology is a great way to keep your account information safe. Two-factor authentication requires a second code when logging into your account, either provided by an electronic token, or via message sent to a registered cell phone or other device. The extra layer of security renders your password useless to a hacker without the accompanying code.
CHAPTER-II OBJECTIVE
To understand the growth of online banking in India. To understand the challenges associated with online banking in India. To understand the notion of online banking with respect to customer accessibility.
Methods used in RESEARCH METHOLOGY: o PRIMARY DATA o SECONDARY DATA
PRIMARY DATA- Primary data consists of a collection of original data collected by the researcher. It is often undertaken after the researcher has gained some insight into issue by reviewing secondary research or by analyzing previously collected primary data. It can be accomplished through various method, including questionnaire and telephone conversation. The PRIMARY DATA used in the conceptual framework of this study is: 15
Direct questionnaire among people: 25 People were asked direct questions on ONLINE BANKING. Their review is mentioned in ’CHAPTER III’. SECONDARY DATA- Secondary data is collected by someone other than time user. Common sources of secondary data are, o Census o organizational records o data collection o through qualitative methodology or qualitative research.
CHAPTER- III: CONCEPTUAL FRAMEWORK
1. The main objective of study is to understand the growth of online banking in India.
7% of account holders in the country are using the Internet for banking transactions, while branch banking has fallen by a full 15 percentage points, according to a report by global management consultancy McKinsey & Company. Use of the Internet for banking has seen a massive rise in the 2010-11 survey, taking the overall number of bank consumers who use the Net to close to 7 per cent of the total bank account holders -- a seven-fold jump since 2007 -- even as for the first time in the past 13 years, branch
16
banking has come down by a full 15 percentage points during the same period. India leads growth in Asia in mobile and Internet usage for banking. While there was a 15 per cent decline in branch usage in India, the growth in usage of the Internet and mobile before the first time since we started this survey in 1998, we see a marked shift away from using branches as a main channel for interaction in many markets. This is a fundamental shift in consumer behavior, and has significant implications for banks. The scale of branch network is a less decisive factor for capturing customers now. The worst casualty is loyalty as there is a full 40 percentage point drop in loyalty since 2007, though 95 per cent are seemingly satisfied with their main banks, says associate partner Jatin Pant, adding the average number of banking relationships across the country rose 19 per cent from 1.4 in 2007 to 1.7 in 2011, while the average percentage of people willing to shop around rose 15, marking a greater willingness of consumers to vote with their feet and engage with a broader variety of financial institutions. Banking has almost tripled." When it comes to financial planning too, there is a marked progress with the percentage of consumers using financial planners soaring from 14 per cent in 2007 to 43 per cent in 2011, while the percentage of consumers willing to take risks on capital growth rose by 20 per cent to 44 per cent, up from 24 per cent. At the same time, the survey says, dissatisfaction too rose with their financial planners.
2. Challenges associated with online banking in India: Lack of outline plans & sufficient study to perform new technology, Lack of choose that how perform technology with the highest efficiency, Lack of culture and knowledge of banks about Electronic banking, Lack of engagement of banks management in the system, Lack of management to use experts in IT section, Traditional attitude toward data reengineering, Lack of economical justification and risk to use Electronic banking systems.
Challenges with performing system
17
Weakness of available facilities, Lack of money protection, Lack of special enterprises or their support ,ca, gateway institutes such as VISA, Lack of content & customers interest Cost and Fees Customer service delivery attributes in the electronic banking industry are important, in view of the fact that online banking, mobile banking and ATM interaction are the main sources of service delivery. Therefore, offering high quality services to satisfy consumers‟ needs, at lower cost and fees, will be the Potential competitive advantage of electronic banking sustainability and growth in the future. At present, studies show that electronic banking has successfully reduced operating and administrative cost and fees (Ahmad, 2011;Migdadi, 2008; Suganthi, 2010 and Bankole et al, 2011) while at the same time research has proven that, cost and fees savings have helped e-based banks offer lower or no service cost/fees (Ahmad, 2008). Cost was once considered as the major competitive priority and a key aspect for the future development in every organization (Burgess, 1998). Prior research has empirically found a positive relationship between cost/fees and customers service delivery as a critical factor with the use of electronic banking (Ching et al, 2011 ad Khumbula,2010). Challenges in E-banking for Developing Countries Based on best practices in developed countries, United Nations Conference on Trade and Development (UNCTAD) report has identified four challenges that developing countries, in general, are expected to overcome to achieve the advantages that e banking initiatives can bring about (UNCTAD 2002): (1) The ability to adopt global technology to local requirements: An adequate level of infrastructure and human capacity building are required before developing countries can adopt the global technology for their local requirements. (2) The ability to strengthen public support for e-finance: Historically, most e-finance initiatives in developing countries have been the result of cooperative efforts between the private and public sectors. (3) The ability to create a necessary level of regulatory and institutional frame works: The lack of regulatory frameworks, trust, security and privacy standards, high trade barriers, customer and investor protections impede progress in implementing e-banking initiatives on a larger scale in many developing countries. 18
(4) The ability to mainstream small and medium scale enterprises(SMEs) towards ebanking: The availability of and access to quality data and banking information is required for SMEs in developing countries to move towards e-banking. Similarly, online credit in formation will enhance SMEs ability to secure financing.
Status: The Internet includes all related web-enabling technologies and open telecommunication networks ranging from direct dial-up, the public World Wide Web, cable, and virtual private networks.
Internet banking (e-banking) is defined to include the provision of retail and small value banking products and services through electronic channels as well as large value electronic payments and other wholesale banking services delivered electronically. Status in developing countries Developing countries are in catching up in e-banking: The a ve rag e e -banking penetration for developing countries by the end of 1999 was close to 5% (World Bank Survey, 2001). In India, over 50 banks are offering online banking services. ICICI Banks ebanking is very impressing. 3. TO UNDERSTAND THE SCENARIO OF ONLINE BANKING IN INDIA W.R.T. CUSTOMER ACCESSIBILITY
Compared to banks abroad, Indian banks offering online services still have a long way to go. For online banking to reach a critical mass, there has to be sufficient number of users and the sufficient infrastructure in place. The 'Infinity' product of ICICI Bank Ltd. gets only about 30,000 hits per month, with around 3,000 transactions taking place on the Net per month through this service. Though various security options like line encryption, branch connection encryption, firewalls, digital certificates, automatic signoffs, random pop-ups and disaster recovery sites are in place or are being looked at, there is as yet no Certification Authority in India offering Public Key Infrastructure which is absolutely necessary for online banking. The customer can only be assured of a secured conduit for its online activities if an authority certifying digital signatures is in place. Users of Internet Banking Services are required to fill up the application forms online and send a copy of the same by mail or fax to the bank. A contractual 19
agreement is entered into by the customer with the bank for using the Internet banking services. In this way, personal data in the applications forms is being held by the bank providing the service. The contract details are often one-sided, with the bank having the absolute discretion to amend or supplement any of the terms at any time. For these reasons domestic customers for whom other access points such as ATMs, tele-banking, personal contact, etc. are available, are often hesitant to use the Internet banking services offered by Indian banks. Internet Banking, as an additio nal delivery channel,may, therefore, be attractive / appealing as a value added service to domestic customers. Non-resident Indians for whom it is expensive and time consuming to access their bank accounts maintained in India find net banking very convenient and useful. The Internet is in the public domain whereby geographical boundaries are eliminated .Cyber crimes are therefore difficult to be identified and controlled. In order to promote Internet banking services, it is necessary that the proper legal infrastructure is in place. Government has introduced the Information Technology Bill, which has already been notified in October 2000.Section 72 of the Information Technology Act, 2000 casts an obligation of confidentiality against disclosure of any electronic record, register, correspondence and information, except for certain purposes and violation of this provision is a criminal offence. The Depart ment of Telecommunications (DoT) is moving fast to make available additional bandwidth, with the result that Internet access will become much faster in the future. This is expected to give a fillipto Internet banking in India. The proposed setting up of a Credit Information Bureau for collecting and sharing credit information on borrowers of lending institutions online would give a fillip to electronic banking. The recommendations of the Vasudevan Committee on Technological Upgradation of Banks in India have also been circulated to banks for implementation. In this background, banks are moving in for technological upgradation on a large scale. Internet banking is expected to get a boost from such developments . Reserve Bank of India has taken the initiative for facilitating real time funds transfer through the Real Time Gross Settlement (RTGS)System. Under the RTGS system, transmission, processing and settlements of the instructions will be done on a co ntinuous basis. Grosssettlement in a real time mode eliminates credit and liquidity risks. Any member of the system will be able to access it through only one specified gateway in order to ensure rigorous access control measures at the user level. Generic Architecture both domestic and cross border, aimed at providing interconnectivity across banks has been accepted for implementat.R BI reference made this year, in the Monetary and Credit Policy statement of the 20
Governor, banks have been advised to develop domestic generic model in their computerization plans to ensure seamless integration. The abovementioned effor ts would enable online banking to become more secure and efficient . With the process of dematerialization of shares having gained considerable ground in recent years, banks have assumed the role of depository participants. In addition to customers' deposit accounts, they also maintain demat accounts of their clients. Online trading in equities is being allowed by SEBI. This is another area which banks are keen to get into. HDFC Bank Ltd. has tied up with about 25 equity brokerages for enabling third party transfer of funds and securities through its business-to-business (B2B) portal, 'e- Net'. Demat account holders with the bank can receive securities directly from the brokers' accounts. The bank has extended its web interface to the software vendors of National Stock Exchange through a tie-up with NSE. The InfoTech arm of the exchange. The bank functions as the payment bank for enabling fund transfer.
CHAPTER-IV DATA ANALYSIS A Survey was conducted on 25 people of and the data of the survey is below.
QUESTION-1 What kind of banking do you prefer?
21
12 10 8 6 4 2 0 Traditional
TYPE OF BANKING NO. OF PEOPLE
Other
Traditional
Other
5
8
Both
Both 12
This shows us the preference of people toward the type of banking. They prefer to use the services of both the online and traditional banking rather than a particular type. From this survey I came to know that out of 25 people, 5 people prefer traditional banking, 8 people prefer online banking and 12 people prefer both i.e. online and traditional banking. The People who are mainly involved in online banking are the people of the age group of 20-30 years. They prefer online banking as they are familiar with both the good and bad points of online banking.
QUESTION-2 Do the people think that account is secure in online banking?
22
12 10 8 6 4 2 0 YES NO CANT SAY
OPENION
YES
NO
CANT SAY
NO OF PEOPLE
11
7
7
Majority of the people think that their Account is secured, but not all. Their security concern should be eradicated. This will attract customers. 11 out of 25 people think that online is secure because of the following:
viewing account balances
viewing recent transactions
Downloading bank statements, for example in PDF format
viewing images of paid cheques
ordering cheque books
Download periodic account statements
Downloading applications for M-banking, E-banking etc
7 out of 25 people think that online banking is not at all secured because: Passwords Phishing Key loggers Two-Factor Authentication 23
QUESTION-3 Do you think online banking is better than traditional banking?
14 12 10 8 6 4 2 0 YES
NO
CANT SAY
Opinion
YES
NO
CANT SAY
NO. OF PEOPLE
13
5
7
There are about 5 out of 25 people who don’t think online banking is not better then traditional banking as they are not familiar with the process of online banking. The people don’t know the basic positive point of online banking. For eg. Some people think that online banking is not secure then traditional banking. Password can be hacked etc. There are 13 out of 25 people who think that online banking is better than traditional banking as they know the positive point of online banking. For eg. The people know that due to online banking fast access to account can take place, payments can be faster the usual mode etc. QUESTION-4 How frequently do you use banking service?
24
12 10 8 6 4 2 0 weekly
monthly
regularly
rearly
TIME PERIOD
WEEKLY
MONTHLY
REGULARLY
REARLY
NO. OF PERSO N
5
11
2
7
Out of 25 people only 5 people use their Banking service weekly. These are those class of people who either do their own business or who are involve in business like shop keeping, tours and travels etc. Out of 25 people only 2 people use their banking services regularly. These are those people who use whose business is totally dependable on banking. Eg. Government Suppliers, Share brokers, Agents of LIC etc. Out of 25 only 7 people use their banking services rarely. These types of people are either student or whose age limit is below 22 years.
QUESTION-5 How happy are the people with their online banking service provided with their banks?
25
10 8 6 4 2 0 Completely
Partially
Fairly
Not at all
HAPPINESS LEVEL
Completely
Partially
Fairly
Not at all
No. of people
4
9
9
3
The satisfaction level of people with the online banking service of their banks has a mixed review. FINDING: out of 25 people 4 people are completely happy with their online Banking. This is due to they know the advantages or advantages of online Baking and they usually involved in internet services. And more over these people are basically of the age group between 20-25 years. Out of 25 people 3 are not at all happy with their online bnking service because they are less involved in Internet service or they do not know how to use internet service at all. The second reason is that the these 3 people are very frightened to use there online service because of the threat involved in online banking like Hacking of accounts, Phishing etc.
QUESTION-6 What type of transaction do you make in online banking?
26
12 10 8 6 4 2 0 Check Balance
Payment
Transfer of fund
Other
Type of transactio n
Check Balance
Payment
Transfer of fund
Other
No. of people
11
7
2
5
The utility of the online banking is service is not used to the extent is should be and it is being majorly used for the purpose of checking the balance in the account. The reason for this is low volume of transaction among the people.
QUESTION-7 Given the opportunity to shift from traditional Banking to Online Banking will the people prefer to do so? The survey was done on 30 people who were divided in the age group of 20-40 years, 41-60 years, 60 and above. Between the age group of 20-40 years the people were ready to shift from traditional banking to online banking. Out of these people also there were many of them who use online banking from the day of opening of their account. No. of people in this category were 8 out of 25.
27
5 4 3 2 1 0 Ready to shift Already using online banking
Online banking
Ready to shift
Already using online banking
No. of people
5
3
The advantages that they were knowing about online banking were as follow:
viewing account balances
viewing recent transactions
Downloading bank statements, for example in PDF format
viewing images of paid cheques
ordering cheque books
Download periodic account statements
Downloading applications for M-banking, E-banking etc
. Bank customers can transact banking tasks through online banking, including
Funds transfers between the customer's linked accounts Paying third parties, including bill payments (see, e.g., BPAY) and third party fund transfers(see, e.g., FAST)
28
Investment purchase or sale
Loan applications and transactions, such as repayments of enrollments
Credit card applications
Register utility billers and make bill payments
Financial institution administration
Management of multiple users having varying levels of authority
Transaction approval process the process of banking has become much fast
In the age group of 41-60 years the people, these people were not ready to change from traditional banking to online banking. But after them a satisfactory reason they were ready to shift from the traditional to online banking system. But some people after giving a satisfactory reason also were not ready to shift from traditional to online banking. Some of the reasons that were there not to shift from traditional to online banking were Passwords Key loggers Phishing In the age group of 60 and above the people were not at all ready to shift from traditional banking to online as they were not knowing how to internet or were very scared to do transaction without their physical presence.
29
CHAPTER-V RECOMMENDATIONS AND CONCLUSIOIN CONCLUSION: The people are not confident enough to weather to relay completely on online banking. There is hesitation in the mind of people with regard to preference. So they use both the technique of Banking i.e. Online Banking and Traditional Banking. Because of the complexity and the awareness in the people regarding the online banking, there is less utilization online banking services provided by the bank. People are not completely sure whether there account is completely secure in online banking or not. Security concern is the main and the core reason why people do not tend to use online banking. People in India are not aware of the full utility of online banking and the services that can be availed of in online banking. Most of the Indian population are salaries employees who do not have that volume of transaction that can be used for online transaction. RECOMMENDATION: After analyzing the entire study on online banking with respect to both the primary and secondary data the following recommendations can be put forward
The infrastructure for the development is not being implemented in the way that could be beneficial. There are various obstacles in the banking scenario with regards to guidelines and issues for functioning. This has led to decline in the usage of the online banking service of the bank. The people having account can be urge to take up an internet banking facility. They should be motivated rather than just being told that there exists a service of online banking. There are many people who are not aware of all the benefits that they reap out of the transaction of online banking. They should be a proper awareness among the people about online banking.
30
Most of the people do not opt for online banking due to the problems of security concerns. Proper security software should be developed and people should be convicted that their account are secured in online transactions.
CHAPTER-VI REFERANCES BANKS: ICICI Bank Limited Axis Bank Limited Bank Of India INTERNET: http://www.onlinebanking.net http://www.sendmoneyindia.org http://www.ehow.com http://www.intenetworldstar.com http://www.economictime.indiatime.com http://www.indiamba.com http://www.searchdatacenter.com
REFERANCE BOOKS R.K. UPPAL BANKING WITH TECHNOLOGY NEW CENTURY PUBLICATIONS NEW DELHI
31
