A Project Report On “CUSTOMERS’
ATTITUDE TOWARDS INTERNET BANKING IN CITY UNION BANK ”
Submitted in fulfillment of the award of The degree of MBA (Insurance & Banking) from
AMITY UNIVERSITY, UP
Submitted By
Industry Mentor
Name: VIVEK HUMAAR.S.K
Name: Mr. SURESH.V.K
Course: MBA-INSURANCE MBA-INSURANCE & BANKING Designation: CHIEF MANAGER Batch: 2011-2013
Faculty Mentor Name: Mr. RAJESH VERMA Designation: Sr. PROFESSOR PROFESSOR
Company: CITY UNION BANK
ASIBAS
Amity University Campus, I-1 Block, 1st Floor, Sector-125, Noida. Dist: Gautam Buddha Nagar, U.P. - 201 303.
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CUSTOMERS’ ATTITUDE
TOWARDS INTERNET BANKING IN CITY UNION BANK Submitted to Amity University for the fulfillment of the summer internship for MBA (Insurance & Banking) in ASIBAS 2011-2013 Submitted by:
Supervised by:
VIVEK KHUMAAR.S.K
A2828411021 MBA – Insurance & Banking
[email protected]
Mr. V.K. SURESH
Chief Manager CITY UNION BANK # 48, Mahalakshmi Street T.Nagar, Chennai -600 017
UTTAR PRADESH 2
1. DECLARATION
I VIVEK KHUMAAR.S.K doing MBA- Insurance and Banking from Noida hereby declare that, the project entitled
Amity University, “CUSTOMERS’ ATTITUDE TOWARDS INTERNET BANKING IN CITY UNION BANK” has been done for the partial requirement for the completion of my degree.
The project is the result of my project pr oject work and source of literature used and all assistance received during the work has been duly acknowledged.
Place: CHENNAI
VIVEK KHUMAAR.S.K
Date:
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2. CERTIFICATE
This is to certify that VIVEK KHUMAAR.S.K (A2828411021) from the Amity University, Noida has successfully completed his summer internship project (SIP) on “CUSTOMERS’ ATTITUDE TOWARDS INTERNET BANKING IN CITY UNION th th BANK” with CITY UNION Bank, T.NAGAR, CHENNAI branch from 4 May 2012 to 3 July 2012 in partial fulfillment of MBA curriculum as prescribed by Amity University.
During his training period, his work and conduct were found to be excellent.
We wish him all success for his future.
Place: CHENNAI Date: 02-07-2012
(Chief Manager)
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3. ACKNOWLEDGEMENT
This report has been prepared during the completion of Summer Internship Programme during MBA (Insurance & Banking) programme at AMITY UNIVERSITY, NOIDA (U.P). I have personally learnt and benefitted well which would help in my future work. It was an attempt to learn in a pure spirit and working on this project has been an enriching experience. With the completion of my project I show my humble gratitude and thanks to those who have helped me throughout this project. I would like to thank my faculty guide Prof. RAJESH VERMA (Faculty guide, Amity University ), who has been very patient and always gave me support whenever I approached him with my problems and queries. I express my sincere thanks to CITY UNION BANK (T.NAGAR, CHENNAI) for giving me an opportunity to work with them through this project. I take this opportunity to express my profound sense of gratitude to my industry mentor MR.V.K.SURESH, CHIEF MANAGER, T.NAGAR, CITY UNION BANK whose sincere co-operation and guidance enabled the project to assume
its systematic form. I am also thankful to various respondents whose responses were of great help in arriving at the findings. Finally I would like to thank my family and friends who constantly helped me and showed trust in me that I could work well on this project.
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TABLE OF CONTENTS
Chapters
1.
Declaration
2.
Certificate
3.
Acknowledgement
4.
Introduction
5.
Abstract
6.
Scope of the Study
7.
Objectives of the Study
8.
History of the Study
9.
Review Of Literature
10.
Research Methodology
11.
Questionnaire
12.
SWOT Analysis
Page No.
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13.
PIE CHART REPRESENTATIONS OF QUESTIONNAIRE
14.
Chi square Test
15.
Tentative Chapter Scheme
16.
Bibliography
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4. Introduction
CITY UNION Bank Profile
Registered Office 149, T.S.R. (Big) Street, Kumbakonam - 612 001. Phone: 0435 - 2402322, 2401622, 2402412 Fax: 0435 - 2431746 www.cityunionbank.com
The bank, 'The Kumbakonam Bank Limited' as it was then called was incorporated as a limited company on 31st October, 1904. The first Memorandum of Association was signed by twenty devoted and prominent citizens of Kumbakonam including Sarvashri R. Santhanam Iyer, S.Krishna Iyer, V.Krishnaswami Iyengar and T.S.Raghavachariar. T.S.Raghavachariar was the First Agent of the Bank. In 1908, he was succeeded by Shri R. Santhanam Iyer who became the Secretary of the bank under the amended Articles of Association which created the office of a Secretary to be in charge of the Bank's Management in the place of the Agent, which post he held till his death in 1926. He was succeeded by Shri. S. Mahalinga Iyer as Secretary who subsequently became the First full-time Managing Director of the bank in tune with the amendment of Articles in 1929. He held the position of Secretary from 1926 to 1929 and that of Managing Director from 1929 to 1963. The bank in the beginning preferred the role of a regional bank and slowly but steadily built for itself a place in the Delta District Thanjavur. The first Branch of the Bank was opened at Mannargudi on 24th January 1930. Thereafter, branches were opened at Nagapattinam, Sannanallur, Ayyampet, Tirukattupalli, Tiruvarur, Manapparai, Mayuram and Porayar within a span of twenty five years. The Bank was included in the Second Schedule of Reserve Bank of India Act, 1934, on 22nd March 1945. The Bank celebrated its Golden Jubilee on 14th November, 1954 at Kumbakonam under the Presidentship of Shri.C.R.Srinivasan, Editor, 'Swadesmitran' & Director, Reserve Bank of India. In 1957, the bank took over the assets and liabilities of the Common Wealth Bank Limited and in the process annexed to it the five Branches of Common Wealth Bank Limited at Aduthurai, Kodavasal, Valangaiman, Jayankondacholopuram and Ariyalur. In 1963, Shri. R. A.Venkataramani Iyer took charge as the Chairman of the Bank which position he held up to 1969. In April, 1965, two other local banks viz., 'The City Forward Bank Limited' and 'The Union Bank Limited' were amalgamated with the Bank under a scheme of amalgamation with the resultant addition of six 8
more branches viz., Kumbakonam-Town, Nannilam, Koradacherry, Tiruvidaimarudur, Tirupanandal and Kuttalam. Consequently, the Bank's name was changed to 'The Kumbakonam City Union Bank Limited'.
In November 1965, the bank's first branch at Madras was opened at Thiyagaraya Nagar. In May, 1969 the Bank secured the services of Shri. O.R. Srinivasan, a former Officer of Reserve Bank of India to be at the helm of affairs as Chairman and Chief Executive Officer which event proved to be a turning point in the annals of the Bank. Under the new Management the Branch Expansion got a fresh impetus and branches were opened at Eravancheri, Sembanarkoil, Tiruchirapalli, Madurai, Thanjavur, Dindigul, Keelapalur, Tirumakkottai, Kottur, Tiruvarur Town and Coimbatore during the period from March, 1968 to August, 1973. In April, 1974 the bank secured the services of Shri. K.Srinivasan, another former Senior Officer of Reserve Bank of India, as its Secretary. At that time, a Young Chartered Accountant from Thippirajapuram village near Kumbakonam, Shri. V.Narayanan was appointed as Assistant Secretary of the Bank. During the period 1974-1976 Branches were opened at Periyakulam, Mandaveli (Madras), Pattukkottai, Triplicane (Madras), Cuddalore, Pudukkottai, Chidambaram and Salem. When Shri. O.R.Srinivasan relinquished his office in June 1977, the then Secretary Shri. K.Srinivasan was appointed as Chairman and Chief Executive Officer of the Bank and the then Asst.Secretary Shri. V.Narayanan was elevated to the rank of the Secretary. From July,1977 to September,1979 the bank has opened ten more branches including those at George Town (Madras), Mount Road (Madras), Tirunelveli and Karaikudi. . The Bank celebrated its Platinum Jubilee on 9th December, 1979 at Kumbakonam with Dr. Rajah Sir M.A.Muthiah Chettiar, Shri. G.Rengasamy Moopanar, Shri. Kosi.Mani and Shri. M.V.Arunachalam as Guests of Honour. In November, 1980, the then Secretary Shri. V.Narayanan, assumed charge as the Chairman and Chief Executive Officer of the Bank with the approval of Reserve Bank of India consequent to the completion of the term by Shri. K.Srinivasan. The event opened a glorious chapter in the history of the bank. The first branch outside the state of TamilNadu was opened at Sultanpet, Bangalore in Karnataka in September, 1980. Branches were also opened at the twin cities of Hyderabad and Secunderabad in Andhrapradesh. In tune with the national image attached to the Bank, the Bank's name was changed to 'City Union Bank Limited' with effect from December, 1987. The Bank started its own Staff Training College on 21st August, 1989 at Kumbakonam with the avowed objective of imparting need based and result oriented training to its Staff Members irrespective of the cadre.
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Taking into account the bank's financial strength, managerial competence and consistent progress in all spheres of its activities, Reserve Bank of India has granted an �Authorised Dealers License � to deal in Foreign Exchange business with effect from October, 1990. The bank has introduced computerisation in the year 1990 and all the Branches have been computerised. The bank has entered into an agreement with Tata Consultancy Services Limited for introducing Core Banking Solution [CBS] and all the branches have been brought under Core Banking Solution [CBS] as on date. Automated Teller Machines (ATMs) have been installed at select centres where the Card holders can withdraw cash, make balance enquiries and obtain Statement of accounts The bank obtained license from Insurance Regulatory Authority of India (IRDA) to act as Corporate Agent for selling insurance products and to provide value added services to the public at large .The Bank has entered into Memoranda of understanding with Life Insurance Corporation of India and National Insurance Company Limited for selling their insurance products. The Bank has tied up with Export Credit & Guarantee Corporation Limited [ECGC] for marketing export credit insurance products through its branch network. The Bank has also entered into a franchise agreement for the Money Transfer Service Scheme of M/s UAE Exchange and Financial Service Ltd. ICICI, Doha Bank and Bank of India for effective and speedy receipt of funds remitted form abroad. The Bank has obtained License to function as Depository Participant under National Securities Depository Limited. The Bank's Centenary Celebrations were inaugurated on 27th December, 2003 at the Saraswathi Patasala Girl's Higher Secondary School Grounds, Kumbakonam under the Chairmanship of Shri. V.Narayanan with Shri. R.Venkataraman, Former President of India, Dr.A.R.Lakshmanan, Judge, Supreme Court, New Delhi and Shri. N.Rengachari, Retired Chairman, IRDA & Advisor to the Government of Andhra Pradesh as distinguished Guests.
In the glorious history of City Union Bank Limited, nearly one third of the period of its existence and progress centered around a key person, namely, Shri. V.Narayanan. The enviable leadership style of Shri. V. Narayanan and his vision for the consistent growth of the bank in all spheres, his tireless efforts in augmenting the Bank's Business, widening the branch network, maintaining harmonious industrial relations, ensuring the unique achievement of not loosing not even a single man-day by way of labour unrest-a record of sort in the country has earned name and fame not only for himself but to the bank in the entire Banking Industry in India. His famous words of 'Take care of the bank; The bank will take care of you' have made wonders in enhancing the morale and improving the productivity of the workforce, the facts of which can be vouchsafed by the financial results of the bank during his tenure as Chairman. But the bank has lost its illustrious Chairman Shri. V.Narayanan in an unexpected car accident near Chennai on 5th November, 2004. 10
With the irreparable loss of Shri. V.Narayanan, the mantle of leading the bank to make his dreams a reality fell on Shri.S.Balasubramanian who had joined the bank as an Officer in 1971 and risen to the rank of Executive Director during the Chairmanship of Shri. V. Narayanan. The Board of Directors with the approval of Reserve Bank of India appointed him as the Chairman & Chief Executive Officer of the Bank with effect from 31-1-2005. In the year 2009, on receipt of approval from Reserve Bank of India, the Board appointed Shri. P. Vaidyanathan [ Chartered Accountant, Cost Accountant and Company Secretary] as the Non Executive Chairman of the Bank on 27-04-2009 and Shri.S.Balasubramanian as Managing Director & Chief Executive officer of the Bank. Shri.P.Vaidyanathan has demitted his office of Non-Executive Chairman of the Bank on 26-04-2011 on completion of two years and Shri.S.Balasubramanian has demitted his office of Managing Director & Chief Executive Officer on 30-04-2011. Pursuant to the approvals received from Reserve Bank of India Shri.S.Balasubramanian M.Sc.PGDFM.CAIIB has assumed charge as Non Executive Chairman of the bank and Dr. N. Kamakodi, B.Tech. MBA.PhD.CAIIB who joined the services of the bank as Deputy General Manager in June 2003, subsequently elevated to the rank of General Manager in March,2005, Executive Director in October,2006 and that of Executive President in January,2011 has been appointed as the Managing Director & Chief Executive Officer of the bank with effect from 0105-2011. 286 BRANCHES AS ON 12-01-2012
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5.ABSTRACT
The customers who are educated have a bonding with the internet who are all using the internet banking. Also those customers who are working in abroad or out of station use the net banking facility for the funds transfer. The customers who are all dealing with the business transaction avoid the use of internet banking even though they are well aware of it. The bank has a separate IT department in place and it is carrying out the further innovations and seeking the opportunities in the space of internet banking. The bank also focus emphasizes on the field of traditional banking by making their establishment in the rural areas. A study has been done on the detail ed study of customers’ about the Internet banking among the CUB customers. An effort has been made to know what they think about internet banking The main objective of this project was to make the customer aware of the internet banking and encouraging more users of the net banking facility. The wide scope of study was given inside.
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Rationale behind the study
6. Scope of the study As an intern, i am pursuing my internship from City Union Bank, Chennai. bank is in main area of this metropolitan city so I came to know that full rush hour working environment . I found fewer of the customers come over to bank then deposit money, withdraw money from bank so i came to know that all are doing their transactions through online i.e., Internet banking. The young students account holders mostly access their internet very often.
This leads to the motive of doing the research topic in this section
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7. Objectives of the study
The proposed study of this objective was to fulfill the following objectives: 1. To find the customers perception about the internet banking among CITY UNION BANK customers in exists. 2. To find out the awareness level of the CITY UNION BANK customers about the use of Internet Banking. 3. To check out that the customers are familiar with all the features of internet banking 4. To check whether this new environment adapted to the customers or not 5. To check out whether they know about the security of internet banking or not 6. To list the services available in Internet Banking. 7. To find out whether there is any discrimination in relation to demographic variable (e.g. education, age) 8. To find out the reason for use of Internet Banking. 9. To find the usage of which service is maximum in Internet Banking.
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Background 1.1.1 Banks have traditionally been in the forefront of harnessing technology to improve their products, services and efficiency. They have, over a long time, been using electronic and telecommunication networks for delivering a wide range of value added products and services. The delivery channels include direct dial – up connections, private networks, public networks etc and the devices include telephone, Personal Computers including the Automated Teller Machines, etc. With the popularity of PCs, easy access to Internet and World Wide Web (WWW), Internet is increasingly used by banks as a channel for receiving instructions and delivering their products and services to their customers. This form of banking is generally referred to as Internet Banking, although the range of products and services offered by different banks vary widely both in their content and sophistication. 1.1.2 Broadly, the levels of banking services offered through INTERNET can be categorized in to three types:
(i) The Basic Level Service is the banks’ websites which disseminate information on different products and services offered to customers and members of
public in general. It may receive and reply to customers’ queries through e -mail, (ii) In the next level are Simple Transactional Websites which allow customers to submit their instructions, applications for different services, queries on their account balances, etc, but do not permit any fund-based transactions on their accounts, (iii) The third level of Internet banking services are offered by Fully Transactional Websites which allow the customers to operate on their accounts for transfer of funds, payment of different bills, subscribing to other products of the bank and to transact purchase and sale of securities, etc. The above forms of Internet banking services are offered by traditional banks, as an additional method of serving the customer or by new banks, who deliver banking services primarily through Internet or other electronic delivery channels as the
value added services. Some of these banks are known as ‘virtual’ banks or ‘Internet only’ banks and may not have any physical presence in a country despite offering different banking services. 1.1.3 From the perspective of banking products and services being offered through Internet, Internet banking is nothing more than traditional banking services delivered through an electronic communication backbone, viz, Internet. But, in the process it has thrown open issues which have ramifications beyond what a new delivery channel would normally envisage and, hence, has compelled regulators world over to take note of this 15
emerging channel. Some of the distinctive features of i-banking are: 1. It removes the traditional geographical barriers as it could reach out to customers of different countries / legal jurisdiction. This has raised the question of jurisdiction of law / supervisory system to which such transactions should be subjected, 2. It has added a new dimension to different kinds of risks traditionally associated with banking, heightening some of them and throwing new risk control challenges, 3. Security of banking transactions, validity of electronic con tract, customers’ privacy, etc., which have all along been concerns of both bankers and supervisors have assumed different dimensions given that Internet is a public domain, not subject to control by any single authority or group of users, 4. It poses a strategic risk of loss of business to those banks who do not respond in time, to this new technology, being the efficient and cost effective delivery mechanism of banking services, 5. A new form of competition has emerged both from the existing players and new players of the market who are not strictly banks. 1.1.4 The Regulatory and Supervisory concerns in i-banking arise mainly out of the distinctive features outlined above. These concerns can be broadly addressed under three broad categories, viz, (i) Legal and regulatory issues, (ii) Security and technology issues and (iii) Supervisory and operational issues. Legal issues cover those relating to the jurisdiction of law, validity of electronic contract including the question of repudiation, gaps in the legal / regulatory environment for electronic commerce. On the question of jurisdiction the issue is whether to apply the law of the area where access to Internet has been made or where the transaction has finally taken place. Allied to this is the question where the income has been generated and who should tax such income. There are still no definite answers to these issues. 1.1.5 Security of i-banking transactions is one of the most important areas of concerns to the regulators. Security issues include questions of adopting internationally accepted stateofthe art minimum technology standards for access control, encryption / decryption ( minimum key length etc), firewalls, verification of digital signature, Public Key Infrastructure (PKI) etc. The regulator is equally concerned about the security policy for the banking industry, security awareness and education. 1.1.6 The supervisory and operational issues include risk control measures, advance warning system, Information technology audit and re-engineering of operational procedures. The regulator would also be concerned with whether the nature of products and services offered are within the regulatory framework and whether the transactions do 16
not camouflage money-laundering operations. 1.1.7 The Central Bank may have its concern about the impact of Internet banking on its monetary and credit policies. As long as Internet is used only as a medium for delivery of banking services and facilitator of normal payment transactions, perhaps, it may not impact monetary policy. However, when it assumes a stage where private sector initiative produces electronic substitution of money like e-cheque, account based cards and digital coins, its likely impact on monetary system can not be overlooked. Even countries where i-banking has been quite developed, its impact on monetary policy has not been significant. In India, such concern, for the present is not addressed as the Internet banking is still in its formative stage. 1.1.8 The world over, central bankers and regulators have been addressing themselves to meet the new challenges thrown open by this form of banking. Several studies have pointed to the fact that the cost of delivery of banking service through Internet is several times less than the traditional delivery methods. This alone is enough reason for banks to flock to Internet and to deliver more and more of their services through Internet and as soon as possible. Not adopting this new technology in time has the risk of banks getting edged out of competition. In such a scenario, the thrust of regulatory thinking has been to ensure that while the banks remain efficient and cost effective, they must be aware of the risks involved and have proper built-in safeguards, machinery and systems to manage the emerging risks. It is not enough for banks to have systems in place, but the systems must be constantly upgraded to changing and well-tested technologies, which is a much bigger challenge. The other aspect is to provide conducive regulatory environment for orderly growth of such form of banking. Central Banks of many countries have put in place broad regulatory framework for i-banking. 1.1.9 In India, too i-banking has taken roots. A number of banks have set up banking portals allowing their customers to access facilities like obtaining information, querying on their accounts, etc. Soon, still higher level of online services will be made available.
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8. HISTORY OF THE STUDY
Banking in India originated in the last decades of the 18th century. The first banks were The General Bank of India, which started in 1786, and Bank of Hindustan, which started in 1790; both are now defunct. The oldest bank in existence in India is the State Bank of India, which originated in the Bank of Calcutta in June 1806, which almost immediately became the Bank of Bengal. This was one of the three presidency banks, the other two being the Bank of Bombay and the Bank of Madras, all three of which were established under charters from the British East India Company. For many years the Presidency banks acted as quasi-central banks, as did their successors. The three banks merged in 1921 to form the Imperial Bank of India, which, upon India's independence, became the State Bank of India in 1955. To provide the best credit facility and effective implementation of banking industry, 14 banks were nationalised in the year 1969. After the nationalization the banking industry saw an enormous growth which includes the increase in the deposit amount, allowing compulsory credit facility of 18% to agricultural sectors and increase in the small scale industries which leads to rise in import/export. The introduction of electronic forms in the banking industry changes the face and operation style of the banking industry; The Information Technology act, 2000 was enacted to bring to provide the legal recognition of electronic transactions and other means of e-commerce. The Rangarajan committee of 1985 ensured that banks have to be computerized. It changes the long customer expectations and saw the increase in various products and customer base. The cost of banks is reduced to Re.1 from Rs.6 when the customer moved on to the Internet Banking. It is a win-win situation for all. The history of Internet Banking states back to the early 1980’s. It is not a new format to the Indian Banking Industry as there are 21 million users used Internet Banking a year ago. The Internet Banking or online banking provides the customers to access his account, transfer funds, stop clearing facility, and provide cheque books, demand draft at the convenience of sitting at the home. This facility is available for 24x7 hours. As per IWS, India has 10.2% of total population who uses the internet facility, and it drops more than half when compared to the user who looks at the Internet Banking as the alternative course of distribution channel. The main motive of this study is to understand the customer attitudes towards the Internet Banking and the expectation level of different customers who uses the net banking. Still the penetration of the Internet Banking awareness level is low in the rural areas and to find the banks promoting levels in the scenario of these new distribution channels. Accessing the need for promotion and highlighting the Internet Banking to make a vast entry into the customer segments.
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9. Review of literature 1.
An extensive study conducted in 2001 by the Consumer Bankers Association indicates that Internet banking usage remained stagnant from 1996 to 1998, with less than 10% of the market utilizing the service. This characterizes the early adoption phase where the banking industry, in its striking transformation, has embar ked on an era of ‘anytime, anywhere’ banking. In fact, earlier researchers (Reil etal., 2001; Long & McMellon, 2004) point out that automated service is still at its infancy stage and there is no generally accepted theoretical conceptualization of automated service quality.
2. Rao et al. (2003) provide a theoretical analysis of Internet banking in India and found that as 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. I.T. has introduced new business paradigms and is increasingly playing a significant role in improving the services in the banking industry. 3. BANKERS’ PERSPECTIVES… Dr. Himani Sharma 75 internet banking activities is by larger banks, banks with higher involvement in off-balance sheet activities, past performance and higher branch network. Mishra (2005) in his paper explained the advantages and the security concerns about internet banking. According to him, improved customer access, offering of more services, increased customer loyalty, attracting new customers are the primary drivers of internet banking. But in a survey conducted by the online banking association, member institutions rated security as the most important concern of online banking. 4. Nyangosi et al. (2009) collected customers' opinions regarding the importance of e-Banking and the adoption levels of different e-Banking technologies in India and Kenya. The study highlighted the trends of e-banking indicators in both countries. The overall result indicates that customers in both countries have developed a positive attitude and they give much importance to the emergence of e-banking.
5. Mookerji (1998) explored that internet banking is fast becoming popular in India. Nevertheless, it is still in its evolutionary stage. They expect that a large sophisticated and highly competitive internet banking market will develop in future.
.
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10. Research Methodology Hypothesis
Case I: H0: No difference among the customers on the basis of age H1: Difference among the customers on the basis of age
Case II: H0: No difference among the customers on the basis of education H1: Difference among the customers on the basis of education
Research Design: Descriptive Research to Exploratory Research
Sample size and design:
Target population:
CUB customers’ using internet banking
Sampling Unit:
CUB, T-Nagar branch customer
Sampling Size:
180 respondents
Sampling Frame:
members in Target population
It is proposed to have the sample size of 180 respondents of customers who uses ‘Internet Banking’ and its features. As geographical area to be covered is the T.Nagar, Chennai Branch of City Union Bank, it is the Convenience Sampling. The consideration will be given to respondents to include all the categories of customers like people of various age groups and educational qualifications, working and non-working males and females, professionals, students and business class. A well structured questionnaire shall be designed and distributed to the target audience for collection of primary data. Personal Interaction shall be held with the Bank executives will also be held on various aspects of the research. Methods of Data Collection: Survey Tools for data collection: Information from Correspondents through Questionnaire, Direct Personal Interview and Mailed Questionnaire
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Period: The primary data is proposed to be collected through various means of communications, i.e. in person, or questionnaire means between 15.05.2012 to 15.06.2012 the period and mode of collecting data shall be reviewed suitably at the appropriate times so as to make it meaningful and closest possible to the objectives set for the research study.
Expected Contribution from the study:
i. ii. iii. iv.
To know the interests and the awareness level of the customer of the Internet Banking To give a clear cut idea of what is Internet Banking to the customers mainly associated with a job To know what can be done in order to raise the level of Internet Banking in the banking sector To have a comparison between the bullock cart banking and the modern age banking industry
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AMITY SCHOOL OF INSURANCE, BANKING AND ACTURIAL SCIENCE 11. QUESTIONNAIRE CUSTOMERS’ ATTITUDE TOWARDS INTERNET BANKING IN CITY UNION BANK
1. Please mention your name_____________________ Please encircle the following 2. Please mention your gender Male Female
3. Are you a customer of CUB? Yes No
4. What is your age? 10-20 years 21-25 years 26-30 years 30-40 years Above 40 years
5. Please mention your education level Intermediate th 10 pass th 12 pass Under Graduate Post Graduate
6. How long have you been using the Internet? Less than 1 month 1 to 6 months 6 to 12 months More than 1 year
7. Have you performed any of the following activities on-line? (Please check all that apply) Tax filing Purchased/sold financial product (e.g., stock, bonds) Neither of these
8. How frequently do you visit your bank branch per month? Less than 1 1 to 3 times 3 to 8 times 8 to 12 times over 12 times
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9. How frequently do you use an Automated Teller Machine (ATM) per month? Less than 1 1 to 3 times 3 to 8 times 8 to 12 times over 12 times
10. What is the main reason that you typically visit your bank branch (please choose the single most important reason)? to make a deposit to get advice for investment options to inquire about a balance to withdraw cash other
11. Have you purchased any product on the Internet? Yes No Please tick the following 12. Are you using any of the following services? ATM Services □yes □no
Anywhere banking
□yes
□no
Internet Banking
□yes
□no
If yes, please rate your satisfaction level Services EXTREMELY SATISFIED SOME SATISFIED WHAT SATISFIED ATM Services □ □ □ ANYWHERE □ □ □ Banking Internet □ □ □ Banking 13. What are the most important reasons you opened an prioritize the following list in the order of importance. Services EXTREMELY SATISFIED SOME SATISFIED WHAT SATISFIED □ □ □ Convenience (24 hours service, anywhere connectivity) Better rates Safe and secure
□ □
□ □
□ □
DIS SATISFIED
EXTREMELY DIS SATISFIED
□
□
□
□
□
□
Internet bank account? (Please DIS SATISFIED
EXTREMELY DIS SATISFIED
□
□
□ □
□ □
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Low service charge
□
□
□
□
□
Easy to maintain my banking transaction activity
□
□
□
□
□
14. What banking services do you use which your Internet bank offers? (Please check all you are currently using and tick)? Seeking product and rate information Calculate loan payment information Download loan applications Download personal bank transaction activity Check balances on-line Apply for consumer loans or credit cards online Inter-account transfers On-line bill payments Others Not Applicable
15. What was the single most important reason that you chose this particular bank as your Internet bank? ( please choose one)? I have a traditional bank account with the same bank The brand name of the bank The excellent service offered by this bank Others Not Applicable
All respondents are requested to answer the following question:
16. WILL YOU BE INTERESTED IN REFERRING ANY OF YOUR FRIENDS TO OUR BANK □YES □NO
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12.
SWOT ANALYSIS
This is a tool that identifies the strengths, weaknesses, opportunities and threats of an organization. The method of SWOT analysis is to take the information from an environmental analysis and separate it into internal (strengths and weaknesses) and e xternal issues (opportunities and threats). Once the results are arrived, it gives us to analyze the detailed study of project to be taken for an effective action of study. The SWOT analysis of internet banking will help to get a clear cut idea about customer attitude. It will help to further enhance it.
Strengths
Convenience
Paper less work
Wireless transactions
Information around 24x7 days
Safe and security
Accuracy of banking transaction
Easy to manage
Reduced costs
Very wide coverage area
Better B2B relationships
Integrated customer base
Multi-functional jobs
Weakness
Customer attitude feels that this is unsecured
Ease of cheat
Hackers
Chance of unauthorized data access
25
Continual changes of technology
Reputational risk due to poor functioning of competitors
Round the clock, technical service should be active
More organizational commitment needed
Cost to develop and upgrade
Opportunities
Increased customer security through secured tr ansactions
Increase the image of the brand and bank
Work from home
Increase the brand value
Global expansion
Being competitive with global banks
Up-to date information about new products
Outsourcing of jobs
Vast going of Internet usage including mobile phones
Threats
Fake mails in the name of the bank from hackers
Security risk of hacking systems
Phishing alerts
Chance of more cross-border transaction that increases risk
Legal risks
Implementation of RBI guidelines with respect to changing demands
26
13. PIE CHART REPRESENTATIONS OF QUESTIONNAIRE 1.GENDER
45%
male 55.00%
female
This pie chart shows that the Gender-wise percentage of participation in the questionnaire filling
27
2.CUSTOMERS OF CUB
3.33%
yes no
96.67%
Due to my topic i.e., customers’ attitude towards internet banking in CITY UNION BANK So most probably I have collected many of the responses from the customers of the CUB hence the Customers Of CUB is high in showing percentage
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3.AGE CRITERIA
0%
22.77%
22.77%
10-20 years 21-25 years 26-30 years 30-40 years
26.11%
28.33%
Above 40 years
This shows that all the categories of age except 10-20 years all are aware of Internet banking and all are properly utilising this facility. All professionals don’t want come to The bank so they do online.
29
4.EDUCATION LEVEL 1.10%
28.30%
3.80%
15.55%
intermediate 10th pass 12th pass under graduate post graduate
51.11%
This education level shows that the highly educated people are more responsible in Filling the responses .The graduate are giving more responses
30
5.INTERNET USAGE
8.89% 10.00% less than 1 month 10.50%
1-6 months 6-12 months
70.50%
more than 1 year
The responses shows that these days internet users ar e so many in our country and they Are using internet more than 1 year.
31
6.ACTIVITIES ONLINE
30.55%
tax filing purchased/sold financial product(eg.,stock,bonds)
54.40%
neither of these 15%
The responses shows that the percentage of tax filing is good when comparing the purchase And sold of financial products
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7.VISIT BANK PER MONTH
10.50% 23.80%
less than 1 1-3 times
27.70%
3-8 times 17.70%
8-12 times over 12 times
20%
The visit of bank per month is less than 1 these days because customers know their Convenience of Internet Banking.
33
8.ATM USAGE PER MONTH
0% 8.30% 22.70% 13.30%
less than 1-3 times 3-8 times 8-12 times over 12 times
56%
These days usage of ATM per month is more than visit to the bank
34
9.MAIN REASON TO VISIT YOUR BANK BRANCH
2.20% to make a deposit 15% 31.60%
to get advice for investment options to inquire about the balance
21.11%
to withdraw cash others 30%
The main reasons to visit the bank branch is to make a deposit and to get advice for the Investment options because now a days also customer know the trust and clarification.
35
10.ONLINE PRODUCTS PURCHASE
19.44%
yes no
80.50%
Now a days the online products purchasing has improved a lot because most o f the People are using online shopping through internet transaction but still some of the customers Are not interested in this.
36
11.ATM SERVICES
yes no
100%
The ATM services are utilized by each and ever y customer that is why the questionnaire Shows that cent percent result.
37
12.ATM SERVICES SATISFACTION LEVEL
1.60%
1.10%
extremely satisfied satisfied 47.70% 49%
some what satisfied dis satisfied extremely dissatisfied
The ATM services shows the satisfaction level as extremely satisfied and satisfied this shows The service quality.
38
13.ANYWHERE BANKING
38.89% yes no 61.11%
The anywhere banking is also used by some how good percentage level of customers.
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14.ANYWHERE BANKING SATISFACTION LEVEL
30.00%
24.50%
extremely satisfied satisfied some what satisfied dis satisfied
22.77%
extremely dissatisfied
22.77%
The anywhere banking’s satisfaction level shows that dis satisfied level is at good level when Compared to other options.
40
15.INTERNET BANKING
17.78%
yes no
82.77%
The Internet banking users are now a days so many because of the educated customers And internet users only.
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16.INTERNET BANKING SATISFACTION LEVEL
18.90% extremely satisfied 43.33% 11.66%
satisfied some what satisfied dis satisfied extremely dissatisfied
26.11%
The internet banking satisfaction level shows that the level e xtremely satisfied.
42
17.Convenience (24 hours service, anywhere connectivity)
5.55%
7.22%
extremely satisfied 43.33%
satisfied some what satisfied dis satisfied
43.88%
extremely dissatisfied
The convenience shows that extremely satisfied and satisfied level of the customers Like 24*7 hours of service and anywhere connectivity.
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18.Better rates
10.00% extremely satisfied 37.23% 23.33%
satisfied some what satisfied dis satisfied extremely dissatisfied
29.44%
The better rates shows that the level of satisfaction good.
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19.Safe and secure
7.77% extremely satisfied satisfied some what satisfied 38.88%
53.33%
dis satisfied extremely dissatisfied
The safe and security level of the customer upto their attitude and their knowledge is Extremely satisfied and satisfied.
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20.Low service charge
1.11%
21.66%
22.22% extremely satisfied satisfied some what satisfied dis satisfied 22.77%
32.22%
extremely dissatisfied
Some what satisfied is the level of satisfaction in low service c harge.
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21.Easy to maintain my banking transaction activity
1.00% 7.22% 11.11%
extremely satisfied 40.55%
satisfied some what satisfied dis satisfied
40.00%
extremely dissatisfied
Extremely satisfied and satisfied is the high level of satisfaction in ease of maintaining Banking transaction activity in internet.
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22.banking services do you use which your Internet bank offers?
download loan application,apply for consumer loan /credit cards online/inter-account transfers
15.00%
19.44%
13.33% 28.88%
2.22%
6.66% 14.44%
seeking product and rate information/download loan application/check balances online/apply for consumer loans or credit cards online calculate loan payment informatin/check balances check balance online online/apply for /inter account consumer loans or credit
The seeking product and rate information/download loan application/check balances Online/apply for consumer loans or credit cards online the service used by many of the customers
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23.single reason that you chose this bank as your internet bank
5.00%
I have a traditional bank account with the same bank
13.33%
The brand name of bank 45.00% The excellent services offered by this bank
19.44%
others 17.22% not applicable
Because they have the traditional bank account in the same bank so that is the reason for the Chose of internet bank. But the services and brand name also stands.
49
24.Will you be interested in referring any of your friends to our bank?
5.00%
yes no
95.00%
Most of the customers are interested in referring their friends to cub bank.
50
14. CHI SQUARE TEST Hypothesis Testing Case I: H0: No difference among the customers on the basis of education H1: Difference among the customers on the basis of education Ca se II: H0: No difference among the customers on the basis of age H1: Difference among the customers on the basis of age
age criteria 10-20 years 21-25 years 26-30 years 30-40 years above 40 years
TOTAL
EDUCATION LEVEL Intermediate 10th pass 12th pass Under Graduate Post Graduate TOTAL
nonusers
users
TOTAL
0
0
0
37
4
41
42
9
51
42
5
47
26
15
41
147
33
180
NONUSERS
USERS
TOTAL
0
2
2
3
4
7
12
16
28
86
6
92
46
5
51
147
33
180
Chi-square:
The chi-square statistic compares observed values with predicted (or e xpected) values computed from a statistical model and hence evaluates the `goodness of fit' model. It is also known as Pearson's chi-squared test.
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H0: No difference among the customers on the basis of age H1: Difference among the customers on the basis of age Observed Frequency
Users 0 37 42 42 26 147
10-20 years 21-25 years 26-30 years 30-40 years Above 40 years Total
Expected Frequency
Non-users 0 4 9 5 15 33
Total 0 41 51 47 41 180
10-20 years 21-25 years 26-30 years 30-40 years Above 40 years Total
Users 0 33.48 41.65 3 33.48 147
Non-users 0 7.51 9.35 8.61 7.52 33
Total 0 41 51 47 41 180
Calculation
Observed – Expected
(O-E)2
(O-E)2/E
0
0
0
3.52
12.3904
0.37008
.35
0.1225
0.002941
3.62
13.1044
0.3414
-7.48
55.9504
1.6712
0
0
0
-3.61
13.0321
1.5136
.35
0.1225
0.0131
-3.61
13.0321
1.5136
7.48
55.95
7.44
TOTAL
12.865921
Degree of Freedom (R-1)(C-1) = (5-1) (2-1) = 4 Critical Value of chi-square @ 5% significance: 9.49
The critical value is less than the c alculated value. Therefore, we reject NULL Hypothesis and accept Alternative hypothesis. So, there is Difference among the customers on the basis of age who are using the internet banking.
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H0: No difference among the customers on the basis of EDUCATION H1: Difference among the customers on the basis of EDUCATION Observed Frequency
Users 0 3 12 86 46 147
Intermediate 10th pass th 12 pass Undergraduate Post Graduate Total
Expected Frequency
Non-users 2 4 16 6 5 33
Total 2 7 28 92 51 180
Intermediate 10th pass 12th pass Undergraduate Post Graduate Total
Users 1.633 5.716 22.87 75.13 41.65 147
Non-users .36 1.283 5.133 16.87 9.35 33
Total 2 7 28 92 51 180
Calculation
Observed – Expected
(O-E)2
(O-E)2/E
-1.633
2.666
1.633
2.716
7.376
1.290
-10.87
118.15
5.166
10.87
118.15
1.572
4.35
18.92
0.4543
1.64
2.68
7.47
2.717
7.382
5.753
10.867
118.019
23.006
-10.87
118.15
7.004
-4.35
18.923
2.023
TOTAL
55.3713
Degree of freedom (R-1)(C-1) = (5-1) (2-1) = 4 Critical Value of chi-square @ 5% significance: 9.49
The critical value is less than calculated value. Therefore, we reject the NULL Hypothesis. There is difference among the customers on the basis of education level.
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15. Tentative Chapter Scheme
Title Page- customers’ attitude towards Internet Banking in City Union Bank A. B. C. D.
Declaration Certificate Table of Contents Executive Summary
Major Findings
Conclusions
Recommendations
E. Introduction
History of the problem
Background of the problem
Statement of the Problem F. Approach to the Problem G. Research design
Type of research design
Information need
Data collection from secondary sources
Data collection from primary sources
Scaling techniques
Questionnaire development and pretesting
Sampling Design
Sampling techniques
H. Data Analysis
Methodology
Plan of Data Analysis I. Chi square Test J. Results K. Conclusions and Recommendations L. Appendix
Questionnaires and forms
Statistical output
Lists
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