“A STUDY ON PERCEPTION OF CUSTOMERS ON E-BANKING”
Introduction: The paper aims to study the impact of e- banking on customers; the paper also examines the various dimensions/criteria’s dimensions/criteria’s that reflect reflect the success of e- banking. In today’s scenario e banking plays a vital role as there is paramount importance given to the technology. There is great emphasis/i emphasis/import mportance ance to e banking because because it has huge potential market to cover, hich gives convenience, time and cost saving. The study on e banking emphasi!es on the benefits a customer is getting " also the hurdles a company is faced hile rendering the services.
The secondary study aims to provide a better understanding of ho online banking services ork. It gives insight about the products and services that are covered under the #-banking. #-ba nking. Thee purpos Th purposee is achie achieve ved d ith ith the the help help of seco second ndary ary data data and the the rese resear arch ch condu conduct cted ed by researcher institutes and research scholars. It focuses on attributes/dimensions to be considered for a better e banking services. It involves various attribute like transparency in transactions, trust, and reliability. reliability.
$ata as collected from the research article already made on e banking. It comprises observation and interaction ith the ebsites, focusing on feedback from the customers using the banking ebsites. The findings shoed that the main benefits included loer costs, efficiency and time saving; safer mode of payment .%rom the findings it has been advised that, banking industry should have clear and brief information of e banking products and services in order to build trust ith the customer.
BACKGROUND #lectronic commerce -commerce' is simply referred to buying and selling using the Internet; people immediately think of consumer retail purchases from companies such as (ma!on. )oever, )oever, e-commerce involves much more than electronica electronically lly mediated mediated financial financial transactio transactions ns beteen organi!ations and customers. *any commentators no refer to e-commerce as both
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financial and informational electronically mediated transactions beteen an organi!ation and any third-party it deals ith.
#-+anking may include (T*s, ire transfers, telephone banking, electronic funds transfers and debit cards. The Internet offers the potential for safe, convenient ne ays to shop for financial servic services es and conduct conduct banking banking bus busine iness, ss, any day, day, any time. time. )oeve )oever, r, safe safe banking banking online online involves making good choicesdecisions that ill help you avoid costly surprises or even scams. In akistan e-+anking has started taking.
Onin! B"n#in$ S!r%ic!&: #-commerce task force has been formulated and the +anks have expanded their online branch netorks. In the past - years +anks have also launched Internet +anking and the internet banking is no improving ith more sophistication and services for corporate banking customers. The system that enables financial institution customers, individuals or businesses, to access accounts, accounts, transact transact business, or obtain obtain informatio information n on financial financial products and services services through through a public or private netork, including the internet.
'i&tor( o) ! *"n#in$ 0 1ay back to 2345’s the concept of e banking as originated, later in India it became famous after the 2335’s ne economic policy. The term online became popular in the late’45s and referred to the use of a terminal, keyboard and T6 &or monitor' to access the banking system using a phone line.
7nline banking or internet banking allos customers to conduct financial transactions on a secure ebsite operated by their retail or virtual bank, credit union or building society. #+anking may include (T*s, ire transfers, telephone banking, electronic funds transfers and debit cards. The Internet offers the potential for safe, convenient ne ays to shop for financial servic services es and conduct conduct banking banking bus busine iness, ss, any day, day, any time. time. )oeve )oever, r, safe safe banking banking online online involves making good choicesdecisions that ill help you avoid costly surprises or even scams.
E-B"n#in$
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$elivery of bank’s services to a customer at his office or home by using electronic technology can be termed as e-banking. The 8uality, range and price of these e-services decide a bank’s competitive position in the industry. The virtual financial services can be largely categori!ed as follos0 Auto+"t!d T!!r M"c,in!&:
- 9ash ithdraals - $etails of most recent balance of account - *ini-statement - :tatement ordering facility - $eposit facility - ayments to third parties EFTPoS: #%To: card used to initiate transactions0
- (uthori!ation and transaction capture processes take place electronically. - Transaction confirmed manually. - %unds not debited electronically. R!+ot! B"n#in$ S!r%ic!&:
- +alance en8uiry - :tatement ordering - %unds transfer &payment' to third parties - %unds transfer beteen customer’s different accounts - 7rder traveler’s che8ues and other financial instruments. S!r%ic!& Not A%"i"*! T,rou$, R!+ot! B"n#in$:
- 9ash ithdraal - 9ash deposit - :ale of the more complex types of financial services such as life insurance mortgages and &pensions'. S+"rt C"rd&:
&i' :tored value cards &ii' (s a replacement for all types of magnetic stripes cards like (T* 9ards, $ebit/9redit 9ards, 9harge 9ards etc. - 7ne smart card to carry out all these functions 3
- 7ne smart card can contain the functionality of several different types of cards issued by different banks hile running different types of netorks. - :mart card a truly poerful financial token, giving user access - :T* - $ebit facility - 9harge facilities - 9redit facilities - #lectronic purse facilities at national and international level.
"riou& ."(& to o))!r Int!rn!t *"n#in$: %irst, an existing bank ith physical offices can establish a eb site and offer Internet banking in addition to its traditional delivery channels. :econd, a bank may be established as a branchless, Internet only or virtual bank. +roadly the levels of banking services offered through Internet can be categori!ed in three types0
&i' The +asic evel :ervices use the banks ebsites hich provides information on different products and services offered to customers and members of public in general. It may receive and reply to customers 8ueries through e-mail.
&ii' In the next level are :imple Transactional 1ebsites hich allo customers to submit their instructions, applications for different services, 8ueries 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 %ully Transactional 1ebsites hich allo 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. *ost of the banks providing Internet banking product and services offer, to a large extent, an identical and standard package of banking services and transactional capabilities &
Uni/u! )!"tur!& o) ! *"n#in$:
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2. It removes the traditional geographical barriers as it could reach out to customers of different countries / legal =urisdiction. This has raised the 8uestion of =urisdiction of la / supervisory system, to hich such transactions should be sub=ected.
. It has added a ne dimension to different kinds of risks traditionally associated ith banking, heightening some of them and throing ne risk control challenges.
. :ecurity of banking transactions, validity of electronic contract, customers’ privacy, etc., hich have all along been concerns of both bankers and supervisors have assumed different dimensions given that Internet is a public domain, not sub=ect to control by any single authority or group of users.
>. It poses a strategic risk of loss of business to those banks, ho do not respond in time, to this ne technology, being the efficient and cost effective delivery mechanism of banking services.
?. ( ne form of competition has emerged both from the existing players and ne layers of the market ho are not strictly banks.
INDIAN SCENARIO: Internet banking, both as a medium of delivery of banking services and as a strategic tool for business development, has gained ide acceptance internationally and is fast catching up in India ith more and more banks entering the nation. India can be said to be on the threshold of a ma=or banking revolution ith net banking having already been unveiled. *ost of banks including public sector undertaking are offering the e banking services and products.
(t present, the total Internet users in the country are estimated at > 9rores. )oever, this is expected to gro exponentially to 2 9rores by 52. 7nly about 2@ of Internet users did banking online in 2334. This increased to 2A.B@ in *arch 555. The facility of accessing their
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accounts from anyhere in the orld by using a home computer ith Internet connection, is particularly fascinating to Con-
9osts of banking service through the Internet form a fraction of costs through conventional methods.
? paisa, phone banking at ? paisa, debit cards at 5 paisa and Internet banking at 25 paisa per transaction. The cost-conscious banks in the country have therefore actively considered use of the Internet as a channel for providing services. %ully computeri!ed banks, ith better management of their customer base are in a stronger position to cross-sell their products through this channel.
The e-banking services are being initiated by banks like I9I9I +ank td., )$%9 +ank td. 9itibank, Dlobal Trust +ank td., ETI +ank td., +ank of *adura td., %ederal +ank td. etc.
The online population has increased from =ust ?55,555 in 2334 to ? million in 555. +y 52?, the online population is expected to reach B5 million. IT services is a G2.? billion industry in India groing at a rate of ??@ per annum. Heeping in vie all the above developments, Internet banking is likely to gro at a rapid pace and most banks ill enter into this area soon.
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In the recent years there has been explosion of Internet based electronic banking applications. It has been stated that the emergence of ne forms of technology has created highly competitive market conditions for bank providers. )oever, the changed market conditions demand for banks to better understanding of consumers needs.
The concept of electronic banking has been defined in many ays. #lectronic banking as the delivery of banks information and services by banks to customers via different delivery platforms that can be used ith different terminal devices such as a personal computer and a mobile phone ith broser or desktop softare, telephone or digital television. #lectronic banking also commonly knon as internet banking or e-banking. Internet +anking, defined as FFthe delivery of banking services through the open-access computer netork &the internet' directly to customers’ home or private address’’. India has experienced phenomenal groth in recent years. In many ays, e-banking is not unlike traditional payment, in8uiry, and information processing system, differing only in that it utili!es a different delivery channel. (ny decision to adopt e-banking is normally influenced by a number of factors. There have been a lot of dimensions here the service 8uality of e banking is measured. :ecurity, transaction accuracy, user friendliness, and netork speed are the critical factors for success in Internet b anking.
S!curit( "nd Pri%"c(: Co day’s uptake of #9 applications in the banking industry is very slo only because of security and data confidentiality issues have been a ma=or barrier. :ecurity and privacy are one of the most challenging problems faced by customers ho ish to trade in the ecommerce orld. :ecurity in the form of keeping customer safe from an invasion of their privacy, affects trust and satisfaction. If company ish to maintain customer trust, they need to keep their promises regarding security and privacy. :ince security is closely related to trust, violations of security norms may backfire in terms of losing customers and negative ord-of mouth. :ecurity perceptions are defined as Jthe sub=ective probability ith hich consumers believe that their private information ill not be vieed, store and manipulated during transit and storage by inappropriate parties in a manner consistent ith their confident expectationsK &avlov 552'. The banking sector as reluctant to use e-commerce applications as they felt that transactions conducted electronically ere open to hackers and viruses, hich are beyond their control. (s ell as convinced that online services are a mixture of customer insecurities, 7
technology investment costs and a lack of market-readiness have all conspired to make e banking Funattractive’. In many articles it has been defined that the 8ua lity of e-banking has been =udged on the basis of A dimensions that is
(n intervie held on eb security and shoed four screen shots of a broser connecting to a ebsite and asked participants to state if the connection as secure or not secure and to affirm the motivating factor for their appraisal. It as discovered that about B participants cannot tell if a connection is secure.
In *alaysia it is found that security is main barrier to e-commerce expansion. :ecurity is perhaps the most feared problem on the internet.J:ecurity implementation over the internet is still considered as a big risk by many financial organi!ations that are skeptical about the technologies availableK. J)oever, ith the introduction of ne technologies such as ::, digital signature, encryption, firealls, HI infrastructure, etc. internet security can be resolved, but it ill take some timeK. It is noted that although consumer’s confidence in their bank as strong, yet their confidence in the technology as eak. Today’s consumers are increasingly more concerned about security and privacy issues. eople ant to protect their on money and bank their on exposure. The role of government is to maintain the integrity of and confidence in the hole system. 1ith electronic cash, =ust as ith paper cash today, it ill be the responsibility of government to protect against systemic risk.
Danesan and 6ivekananda &553' described a secured hybrid architecture model for the internet banking using hyper elliptic curve cryptosystem and *$? is described. Information about financial institutions, their customers, and their transactions are, by necessity, extremely sensitive; thus, doing business via a public netork introduces ne challenges for security and trustorthiness. Diven the open nature of the Internet, transaction security is likely to emerge as the biggest concern among the e-bank’s account holders. The rapid groth in account hi=acking and online fraud are on the rise. The negative publicity damages consumer trust in the online service. :ince personal and financial information can be intercepted and used for fraudulent purposes, online investing 8
involves greater security concerns than conventional trading; users need a sense of security hen conducting financial transactions, and it is still one of the ma=or barriers to e-commerce groth &ee and Turban, 55'. erceived security as defined as a threat that creates a circumstance, condition, or event ith the potential to cause economic hardship to data or netork resources in the form of destruction, disclosures, and modification of data, denial of service, and/or fraud, aste and abuse &Halakota and 1hinston, 233B'. :ecurity, hich involves the use of technical advancements like cryptography, digital signature and certificates aimed at protecting users from risk of fraud, hacking or JphishingK, has a positive influence on the intention to purchase online &ian and in, 554'.
otential customers mentioned Internet security, online banking regulations, consumers’ privacy, and bank’s reputation as the most important future challenges of online banking adoption. &(ladani, 552'. Indeed, in (ladani’s &552' study of online banking, potential customers ranked Internet security and customers’ privacy as the most important future challenges that banks are facing. erceived usefulness, perceived 1eb security has a strong and direct effect on acceptance of internet banking, too. ( high level of perceived risk is considered to be a barrier to propagation of ne innovations. Influenced by the imagination-capturing stories of hackers, customers may fear that an unauthori!ed party ill gain access to their online account and serious financial implications ill follo. (ccording to survey found that EH consumers ranked the security of bank’s ebsite as the most important attribute of internet banking service 8uality. It is identified that three-8uarters of (ustralian respondents expressed security concerns ith regard to electronic banking. 7verall, the literature appears to be une8uivocal in its finding that the level of perceived risk is negatively related to the attitude toards banking on the 1orld 1ide 1eb. %or this reason, this study uses perceived security as a predictor of customer acceptance.
#lectronic banking can also be defined as a variety of folloing platforms0 &i' Internet banking &or online banking', &ii' Telephone banking, &iii' T6-based banking, &iv' *obile phone banking, and e-banking &or offline banking'. 9
9ustomers access e-banking services using an intelligent electronic device, such as a personal computer &9', personal digital assistant &$(', automated teller machine &(T*', kiosk, or Touch Tone telephone.
Ad%"nt"$!&: The main advantages of #-banking are0-
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The operating cost per unit services is loer for the banks. It offers convenience to customers as they are not re8uired to go to the banks premises. There is very lo incidence of errors. The customer can obtain funds at any time from (T* machines. The credit cards and debit cards enables the 9ustomers to obtain discounts from retail
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outlets. The customer can easily transfer the funds from one place to another place electronically.
• • • •
E *"n#in$ *!n!)it& in t,! )oo0in$ "r!"&: 12 P"( Your Bi& Onin!
1e can use online banking to pay our bills. This ill eliminate the need for stamps and protect our self from the check being lost in the mail. *ost banks ill have a section in hich they set up payees. ( rospect ill need to fill out the information once, and then they can simply choose that profile every time to pay a bill online. If the bank ill not pay bills online e may consider paying online through the company.
2. View Transactions
7nline banking allos us to access your account history and transactions from anyhere. This is the 8uickest ay to check and see if a transaction has cleared our account. It also allos us to find out about unauthori!ed transactions more 8uickly. This can help us to resolve the issues more 8uickly.
3. Transfer Money between Accounts
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7nline banking also allos us to transfer money beteen accounts much more 8uickly. It is more convenient than using the automated phone service, and can save a trip to the bank. 1hen e apply or set up our online banking, be sure that all of the accounts e have at the bank are listed. This ill make it easier to transfer money and make loan payments online. 32 Do onin! tr"din$:
1ith the help of e banking, a customer can trade and do transactions very comfortably. If a customer ant to trade in security market e banking helps in carrying out the transactions through the electronic mode. ayment toards purchase of securities and receipt of money toards sale of securities can be made ith the help of e banking.
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Id!nti)ic"tion o) t,! 4ro*!+: “A STUDY ON PERCEPTION OF CUSTOMERS ON E BANKING”
The study primarily aims to study the perception of customer toards e banking. It also identifies the key factors that are re8uired for the success of e banking products and services.
T,! o*5!cti%! o) t,! &tud( i& "& )oo0&: • •
To study the perception of customers on e banking. The secondary ob=ective is to identify the factors that are successful in rendering e banking.
6ITERATURE REIE. 12 S!r%ic! /u"it( !%"u"tion in int!rn!t *"n#in$: "n !+4iric" &tud( in Indi" Int2 72 Indi"n Cutur! "nd Bu&in!&& M"n"$!+!nt89 ;;<= o2 8 No2 18
The existing article defines that the role played by internet technology in bringing changes in the banking industry is remarkable. The adoption of the internet in industries has removed constraint like time, distance and communication. Internet banking allos banking from anyhere, anytime and is used for transactions, payments, etc. over the internet through a bank. In e banking the client has one to one interaction ith the bank’s ebsite, and in such a situation it is essential on the part of the bank to provide 8uality information over the internet. 9ompare to traditional banking the #- banking involves non human interactions beteen customers and online banking information system. Internet banking is a ne delivery channel for banks in India. The #-banking channel is both an informative and a transactional medium. The development of e banking in India0 ay back to 2335’s hen government introduced D model, the economy as opened for orld economy. ots of improvements took place in the banking sector particularly in e banking. 7n the basis of recommendations made by c.
The <+I had setup a orking group on e-banking to examine different aspects of e-banking. The group focused on ma=or areas like0 technology and security issues, egal issues, regulatory and supervisory issues. :ervice 8uality dimensions in e banking. It is identified five online service 8uality dimensions &responsiveness, reliability, competence, access and security'. Trust significantly affects attitude toards e banking acceptance. +ased on A dimensions the 8uality of e banking as evaluated0
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R!i"*iit( Acc!&&i*iit( U&!r-)ri!ndin!&& Pri%"c(>&!curit( E))ici!nc( R!&4on&i%!n!&& Fu)i+!nt
The result indicates that the to dimensions, vi!. Frivacy/:ecurity’ and F%ulfillment’ are not contributing significantly toards the overall service 8uality. In the coming years the role of e banking ill have paramount importance.
2 Int!rn!t B"n#in$ Ado4tion in "n E+!r$in$ Econo+(: Indi"n Con&u+!r?& P!r&4!cti%!29;11= Int!rn"tion" Ar"* 7ourn" o) !-T!c,noo$(8 o2 8 No2 18 7"nu"r(
The current article emphasis on &I+'.Internet banking is a radical technological innovation ith potential to change the structure and nature of banking. 9ustomer satisfaction and customer retention are the key factors and success mantra of every organi!ation.
I+ refers to systems that enable bank customers to get access to their accounts and general information on bank products and services through the use of bank’s ebsite, ithout the intervention inconvenience of sending letters, faxes, original signatures and telephone confirmations. ( study on the Internet users, conducted by Internet and *obile (ssociation of India &I(*(I', 13
%ound that about @ of the online users prefer I+ as the banking channel in India, second to (T* hich is preferred by ?@. 7ut of the A,A? Internet users sampled, ?@ use online banking channels in India. This shos that a significant number of online users do not use I+, and hence there is a need to understand the reasons for not using it.
Internet is the cheapest delivery channel for banking products as it allos the entity to reduce their branch netorks and donsi!e the number of staff. The main focus is on reducing the transaction cost, *inimi!es the inconvenience. The banks like I9I9I, )$%9 have reali!ed the importance of e banking, they are spending huge amount on the technology to enable banking products, services to the customers.
The main ob=ective as to evaluate those factors that manipulate the nature of customers toards online banking and their groing tendency toards the online financial institutions. Ese of I+ comprises of perceived risks, perceived ease of use, perceived usefulness, consumer acceptance. %or the purpose of :ample0 convenience sampling as used. The sample for the study is the students from an educational institute.
@2 T,! St"t! o) !-B"n#in$ I+4!+!nt"tion in Ni$!ri": A Po&t-Con&oid"tion R!%i!0 7ourn" o) E+!r$in$ Tr!nd& in Econo+ic& "nd M"n"$!+!nt Sci!nc!& 9;1;= 91=: @-3 Sc,o"r in# R!&!"rc, In&titut! 7ourn"&2
The most idely used e-+anking instrument in Cigeria is e-ayment, particularly the automatic teller machine &(T*' card. )oever, ith the adoption of e-+anking by all the banks in Cigeria,
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the volume
of cash in
circulation has
continued to
increase
pre-and-post bank
recapitali!ation/consolidation exercise.
%urthermore, some of the ? banks that survived the exercise ere found lately to have depleted their capital base and have lost credibility before the consumers, e-+anking implementation notithstanding. Therefore, in this paper, there has been a revie about the state of e-+anking implementation in Cigeria and evaluate the influence of trust on the adoption of e-ayment using an extended technology acceptance model &T(*'. :imilarly, there has been an investigation on organi!ational reputation, perceived risk and perceived trust in the management of banks as a factor for enhancing customer loyalty.
#lectronic banking is the provision of banking services to customers through Internet technology. Through the use of IT, banks no employ different channels such as internet technology, video banking technology, telephone banking, (utomated Teller *achine, and 1( technology to deliver their services. banks operate over 3,555(T* machines across the countrys A states and %ederal 9apital Territory.
The findings in this ork reveal that perceived ease of use and perceived usefulness are not only antecedent to ebanking acceptance, they are also factors to retain customers to the use of e banking system such as organi!ational reputation, perceived risk and trust.
32 E-*"n#in$ in d!%!o4in$ !cono+(: !+4iric" E%id!nc! )ro+ Ni$!ri" Ei&," M!n&on AUTA P,D C"ndid"t!8 C!ntr! )or Poic( "nd Econo+ic R!&!"rc,8 Uni%!r&it( o) A*u5"8 A*u5"8 Ni$!ri"
The paper explores the ma=or factors responsible for internet banking based on respondents’ perception on various e-banking applications. It also provides a frameork of the factors hich are taken to assess the e-banking perception. $ue to emergence of global economy, e business
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has increasingly become a necessary component of business strategy and a strong catalyst for economic development.
#-banking has become popular because of its convenience and flexibility, and also transaction related benefits like speed, efficiency, accessibility, etc. The result of this study shos that e banking serves several advantages to Cigerian banking sector. The customers &respondents' perception is that e-banking provides convenience and flexible advantages. It also provides transaction related benefits like easy transfer, speedy transaction, less cost and time saving. )oever, the study shos that the Cigerian customers have security, access, and no enough knoledge regarding e-banking services rendering by banking sector in Cigeria.
The study suggest that critical infrastructure like poer and telecommunication should be provided and ith high level of stability to ensure the application of e-banking in Cigeria. (lso, the relative skeed nature of banks location mostly in urban area should be addressed to ensure spread and accessibility by rural dellers.
The concept of e-banking is a delivery channel for banking services. +anks have used electronic channels for years to communicate and transact business ith both domestic and international corporate customers. 1ith the development of the Internet and the 1orld 1ide 1eb &111' in the latter half of the 2335s, banks are increasingly using electronic channels for receiving instructions and delivering their products and services to their customers. This form of banking is generally referred to as e-banking or Internet banking, although the range of products and services provided by banks over the electronic channel vary idely in content, capability and sophistication.
#lectronic banking can also be defined as a variety of folloing platforms0 &i' Internet banking &or online banking', &ii' telephone banking, &iii' T6-based banking, &iv' mobile phone banking, and e-banking &or offline banking'. 9ommerce carried out in Dermany, +use and Tiari &55A' observed that0 the highest mobile users are top management, folloed by self employed, salaried class, students and others.
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9hiemeke et al. &55A' conducted an empirical investigation on adoption of ebanking in Cigeria. The study identified the ma=or inhibiting factors to Internet banking adoption in Cigeria such as, insecurity, inade8uate operational facilities including telecommunications facilities and electricity supply, and made recommendations on ho Cigeria banks can narro the digital divide. (lso, the report revealed that Internet banking is being offered at the basic level of interactivity ith most of the banks having mainly information sites and providing little Internet transactional services. +ased on A factors the evaluation as done0 2. . . >. ?. A.
Time factor :ecurity Lueue management Eser friendly %und transfer (ccessibility
The study revealed that the ma=or criteria to evaluate the 8uality of services offered through e banking ould be security and time factor, because ma=ority of them are of the opinion that the banking industry should give more importance to security concerns and timely delivery of services.
2 C"n !-*"n#in$ &!r%ic!& *! 4ro)it"*! ISSN 13;<ISBN <<3;3;;
7ver the last fe years #uropean banks have spent billions of #uros on ne electronic channels. )oever, after some years of excitement it as clear that the banks’ long-aaited skyrocketing profits from this area ould not be netted. #stonian banks have also invested in expanding and improving the IT systems and a number of ne e-banking services have been developed. Entil recently, most of the pricing decisions for e bank services ere made on the basis of a gut feeling as the current financial management information systems did not support such analysis. In this article the author explores the implementation techni8ues of (ctivity-+ased 9osting &(+9' in the banking sector on the example of an #stonian bank in order to analy!e the cost structure for traditional and electronic channel transactions. The article shos ho it is possible to implement
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(+9 in banking and proves empirically that electronic channels help reduce the costs of both banks and their clients. %ocus on profitability by reducing the transaction cost.
The current article also emphasis on the Fimportance of the electronic channels in banking industry’. In this article the research as made on the application of activity based costing in the banking sector. (+9 is a cost measurement system that provides the cost of each product, service or customer by analy!ing each activity needed to produce a product or service for the customer.
The (+9 has main vies cost assignment vie and process vie.The cost assignment vie reflects the organi!ation’s need to trace or allocate resources to activities or cost ob=ects &including customers as ell as products and channels' in order to analy!e critical decisions about such things as pricing, product mix, sourcing, and distribution channel management. 1hereas process vie reflects the organi!ation’s need for information about events that influence the performance of activities and activity performance.
Eltimately the research revealed that profitability can be made possible ith proper services rendered by bank. :ome proportional data are real free income on transactions.
2 E-A$! T!c,noo$(N!0 F"c! o) Indi"n B"n#in$ Indu&tr(: E+!r$in$ C,"!n$!& "nd N!0 Pot!nti"&2 7ourn" o) E+!r$in$ Tr!nd& in Econo+ic& "nd M"n"$!+!nt Sci!nc!&
The present paper analy!es the performance of ma=or banks in terms of productivity and profitability in the pre and post e-banking period. Ender the regime of banking sector reforms, IT (ct of 2333 gave ne dimensions to the Indian banking sector. IT has created transformation in banking structure, business process, ork culture and human resource development. It has affected the productivity, profitability and efficiency of the banks to a large extent. The paper concludes that performance of all the banks under study is much better in post-e-banking period and further foreign banks are at the top position, hereas the performance of the public sector banks is comparatively very poor. The paper suggests some measures to tackle the challenges
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faced by the banks particularly public sector banks. (t the end, paper suggests ho public sector banks can convert the emerging challenges into opportunities.
2 Acc!4t"nc! o) E-*"n#in$ "+on$ Adut Cu&to+!r&: An E+4iric" In%!&ti$"tion in Indi" 9;;= %ou+! @2
Internet banking is a form of self service technology. The numbers of Internet users have increased dramatically, but most of them are reluctant to provide sensitive personal information to ebsites because they do not trust e-commerce security. The research paper investigates the factors hich are affecting the acceptance of e-banking services among adult customers and also indicates level of concern regarding security and privacy issues in Indian context. rimary data as collected from 55 respondents, above the age of ?, through a structured 8uestionnaire. :tatistical analysis, descriptive statistics as used to explain demographic profile of respondents and also %actor and
R!&!"rc, M!t,odoo$( 19
Id!nti)ic"tion o) 4ro*!+: “A &tud( on 4!rc!4tion o) cu&to+!r& in !-*"n#in$”
The research study aims to obtain information regarding the attributes that has to be present in rendering 8uality banking services through electronic channels. It consists of tru&t8 r!i"*iit(8 !))ici!nc(8 con%!ni!nc! . *any scholars and researchers have used structured 8uestionnaire to
obtain the information regarding the attributes of e-banking.
D"t" Co!ction 1ithin the scope of the research, in the articles researchers used email, observation &interaction ith ebsite' as sources of data collection. In many articles researchers have used the opinion and feedback that has been posted on the bank ebsites by the customers regarding the various products of e banking and all the above as used for the study.
S"+4! S!!ction %or the purpose of research researchers had used multiple case sampling, because multiple case could add confidence to findings. +y looking at the range of similar contrasting cases, one can understand the case findings. The sampling frame chosen ere customers ho had already been exposed to at least one online banking transaction.
D"t" co!ction: (s the study is based on the research already made on the e banking, the data is collected from various sources like annual reports, bank ebsites, customer feedback about the products and experience in e banking by the customers. In the research article they have used the ? point ikert scale techni8ue to obtain and assess the information of attributes.
SECONDARY DATA: •
Int!rn": the sources include company annual reports, bulletins, and research reports.
•
EHt!rn": the sources include0
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ublished materials such as periodicals and books like business periodicals, mobile banking maga!ine.
9omputeri!ed databases such as internet databases.
The respondents ere asked to rate on a ?-point ikert scale &2 M J:trongly $isagreeK to ? M J:trongly (greeK'.
D"t" "n"(&i& %rom the various researches it has been concluded that nearly A5-B5@ customer rated that, the banks should focus on security as ma=or attribute in rendering #-banking services. )ence banks should emphasi!e on reliability, trust, accessibility, transparency, ease of usage.The percentage of the customer satisfied ith the security and transparency that has been practiced in banks are rated &?A@ agreed'. :ome of them are not satisfied ith the security aspects that have been practiced in the banks.
1ith regards to transparency 43@ of the customers are strongly agreed, transparency as one of the ma=or attribute that has constituted the attribute of e banking. The respondent claimed that Internet banking is more convenient as compared to traditional banking. 9onvenience is a primary benefit sought by customers. The banks should provide statements of transactions have been conducted in electronically. The respondent informed that information shon on the ebsite as understandable and 8uite clear. #ven about offline information as also very clear. The participant vieed that his time as saved and avoid aiting in 8ueue for his turn in the bank.
Findin$& %rom the above data analysis, it is clear that banks are rendering 8uality services to their customers by introducing more e banking products through electronic channels. (t the same time banks are concentrating on the security issues and various other obstacles that affect the service.
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•
The 8uantity of product information should be in short and clear form, so the customer at
•
the time of reading does not become fed up. 9ustomers have revealed that most of the benefits obtained from e banking are time saving, reliability, convenience, greater emphasis on timely process of transactions at a
•
reasonable rate. %urthermore, internet banking ebsites should provide options of exchange rate
•
conversions, loan calculators &car, house, and mortgage'. The Internet banks should provide homepage hyperlinks for the ease in assessing the
•
specific information. It may be better to keep a consistent navigation techni8ue in the entire ebsite. +ut it ill be even better if internet bank make site map and search engine on the ebsite for
•
convenience of their customers. To maintain customers regularly visiting the ebsite, product information must be
•
furnished in simple text and font. Cormally, search engine depends on the contents. +ut the specified internet banks have a
•
lot of information on the eb, so they must use search engine. (s far as security is concerned, the banks must use latest technology on their ebsites.
The research leads to the folloing specific conclusions emerging from the findings abov e0
The design and 8uality of online services can play a vital role in internet banking if the information about the products and services are to the point and clear. • • •
( link of glossary for technical terms can also be provided. $emo facility can play an imperative role for this introductory internet banking stage. The facility of search engine on home page can establish a longer relationship ith customers in Internet banking.
SUGGESTIONS
•
$ue to the latest technology " innovations banking customers are looking forard to use Internet banking as a safe custodian and care should be taken by the bankers to ensure security. Information provided in the ebsites should be concise and clear about the products and services to the online visitors. 22
#ffective customer’s complaint and 8uery system needs to be enhanced for better •
customer service. :ecurity, trust, reliability, transparency are the vital aspects and dimensions need to be focused by the banks in rendering services.
Concu&ion: %rom the above findings, it can be concluded that e banking in today’s banking scenario is gaining momentum. +ut lots of concerns regarding security, trust has to be given priority. Its groth is tremendous; the role of internet or e banking is significant. (ccording to the estimate the groth rate of internet users ill reach A5@ by 55. +ut at the same time there has been a security threats. :o measures to overcome security threats have to be taken care off.
(t the end of the research it has been concluded that, for better e banking services banks could customi!e the e banking services as per customer re8uirements to deliver excellence in the services.
Bi*io$r"4,(: 12 S!r%ic! /u"it( !%"u"tion in int!rn!t *"n#in$: "n !+4iric" &tud( in Indi"2 Int2 72 Indi"n Cutur! "nd Bu&in!&& M"n"$!+!nt8 o2 8 No2 18 ;;< 2 Int!rn!t B"n#in$ Ado4tion in "n E+!r$in$ Econo+(: Indi"n Con&u+!r?& P!r&4!cti%!2 Int!rn"tion" Ar"* 7ourn" o) !-T!c,noo$(8 o2 8 No2 18 7"nu"r( ;11
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@2 T,! St"t! o) !-B"n#in$ I+4!+!nt"tion in Ni$!ri": A Po&t-Con&oid"tion R!%i!0 7ourn" o) E+!r$in$ Tr!nd& in Econo+ic& "nd M"n"$!+!nt Sci!nc!& 97ETEMS= 91=: @-3 Sc,o"r in# R!&!"rc, In&titut! 7ourn"&8 ;1; 32 !-*"n#in$ in d!%!o4in$ !cono+(: !+4iric" !%id!nc! )ro+ Ni$!ri" Ei&," M!n&on AUTA P,D C"ndid"t!8 C!ntr! )or Poic( "nd Econo+ic R!&!"rc,8 Uni%!r&it( o) A*u5"8 A*u5"8 Ni$!ri" 2 C"n !-*"n#in$ &!r%ic!& *! 4ro)it"*! ISSN 13;<ISBN <<3;3;;
2 Acc!4t"nc! o) E-*"n#in$ "+on$ Adut Cu&to+!r&: An E+4iric" In%!&ti$"tion in Indi": 7ourn" o) Int!rn!t B"n#in$ "nd Co++!rc!8 Au$u&t ;1;8 %o2 18 no2
2 E-A$! T!c,noo$(N!0 F"c! o) Indi"n B"n#in$ Indu&tr(: E+!r$in$ C,"!n$!& "nd N!0 Pot!nti"& 7ourn" o) Soci" "nd D!%!o4+!nt Sci!nc!& o2 18 No2 @8 442 111<8 A4r ;11
In&titut!& >*"n# 0!*&it!& %i&it!d:
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