DISSERTATION REPORT ON Customer perception towards Internet banking SUBMITTED TOWARDS THE FULFILLMENT OF POST GRADUATE DIPLOMA IN BUSINESS

MANAGEMENT (APPROVED BY AICTE, GOVT OF INDIA) (EQUIVALENT TO MBA) ACCADEMIC SESSION (2007-2009) Submitted To: Proff. Timira Shukla
(Chair Person PGDBM)

Submitted By: SIDDHARTH AGARWAL BM 07149

INSTITUTE OF MANAGEMENT STUDIES C-238, BULANDSHAR ROAD, LAL QUAN, G.T.ROAD GHAZIABAD-201009

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ACKNOWLEDGEMENT.
A Project report is an assessment of ones great skill and aptitude. One needs to devote in immense patience, time and brains for the compilation of one such rewarding outcome of true efforts. I am indeed thankful to honorable Director Sir (IMS, Ghaziabad), Dr. R. K. Bhardwaj who has provided the wonderful opportunity of getting exposed to industrial and business working know-how. This study enabled me to analyze and understand the gaining foothold internet banking system in banking senario. This opportunity availed has immensely enhanced my own creativity and diversified my thought process by taking a deep insight of various Banks in the NCR region and the growing inclination of the Indian customer toward internet banking based on a number of parameters. I would like to render my sincere heartfelt gratitude to my Project Mentor Prof. Timira Shukla (Chairperson PGDBM) for her immense encouragement, guidance and invaluable lecture sessions both before and throughout my Dissertation. SHe has been an inspirational mentor guiding me through every step of my project, thus making the entire Dissertation a complete learning process. Never the last I would take the opportunity to thank the concerned bank officials for providing me with the necessary and relevant information. A word of thanks to the customers for giving in their invaluable time and being a part of the survey.

SIDDHARTH AGARWAL

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TO WHOMSOEVER IT MAY CONCERN

This is to certify that Mr. SIDDHARTH AGARWAL student of PGDBM (2007-2009) I.M.S Ghaziabad has done his dissertation under my guidance and supervision. He has completed the project titled Customer perception towards Internet banking w.r.f to private and foreign banks in India (use of MDS) For the partial fulfillment of PGDBM under my supervision. During his project he was found to be very sincere and attentive to small details whatsoever told to him. I wish him luck and success in future.

Under the guidance of: Prof.Timira Shukla Chair Person PGDBM

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PREFACE.
Management education in India gained momentum in the early seventies. In the early stages, faculty, concepts, materials and pedagogy were borrowed from the Western collaborators. The need for market analysis, strategy and decision making and the need for contextual relevance of the application of quantitative techniques to developing countries has been increasingly felt because management principles are not only being applied to business and industry, but also to newer areas like rural development, nonprofit making organizations and non-enterprise management. Banking is a highly information intensive activity that relies heavily on information technology (IT) to acquire, process, and deliver the information to all relevant customers. Banks used the Internet technology as a strategic weapon to revolutionize the way they operate, deliver, and compete against each other. As a result Online Banking was introduced as a channel where bank customers could perform their financial transactions electronically via their banks Web sites. An Online Banking user is expected to perform at least one of the following transactions online: 1. Checking account balance and transaction history 2. Paying bills 3. Transferring funds between accounts 4. Requesting credit card advances 5. Ordering checks 6. Managing investments and stocks trading From a banks perspective, using the Internet is more efficient than using other distribution mediums because banks are looking for an increased customer base. Using multiple distribution channels increases effective market coverage by enabling different products to be targeted at different demographic segments. Also Banks cannot risk loosing customers to competitors within the aggressive competition in the banking industry around the world. Moreover Internet delivery offers customized service to suit the needs and the likes of each user. Mass customisation happens effectively through Online Banking. It reduces cost and replaces time spent on routine errands with spending 4|Page

time on business errands. Online Banking means less staff members, smaller infrastructure demands, compared with other banking channels. From the customers perspective, Online Banking provides a convenient and effective way to manage finances that is easily accessible 24 hours a day, seven days a week. In addition information is up to date. Nevertheless Online Banking has disadvantages for banks like how to work the technology, set-up cost, legal issues, and lack of personal contact with customers. And for customers there are security and privacy issues

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TABLE OF CONTENT PREFACE .4 CHAPTER 1: EXECUTIVE SUMMARY.8 1.1 INTRODUCTION ....9 1.2 OBJECTIVE OF THE STUDY.11 1.3 LITERATURE SURVEY..12 1.4 RESEARCH METHODOLOGY...15 CHPATER 2: DATA ANALYSIS AND INTERPRETATION 2.1 ANALYSIS...17 CHAPTER 3: CONCLUSION AND RECOMMENDATION.28 CHAPTER4: LIMITATION.29 CHAPTER5: BIBLOGRAPHY... 30 CHAPTER5: ANNEXURE..32

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LIST OF TABLES AND FIGURES TABLES PAGE NO.

TABLE1..17 TABLE2..18 TABLE3..19 TABLE4..20 TABLE5.. 21 TABLE6.. 27 TABLE7...27 FIGURE FIGURE1.17 FIGURE2.18 FIGURE3.19 FIGURE4.20 FIGURE5.21 FIGURE6.22 FIGURE7.23 FIGURE8.26

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EXECUTIVE SUMMARY
An analysis of the differences in risk perceptions between bank customers using Internet Banking and those not using Internet Banking was done and it showed that risk perceptions in terms of financial, psychological and safety risks among customer not using the internet was more meaningful than those using internet banking. Customers not preferring to use internet banking thought that they would be swindled when using this service, and therefore, are particularly careful about high risk expectation during money transfers from and between accounts. Only 37% of Indian Internet users come from Top 10 cities i.e. Mumbai, Bangalore, Delhi, Calcutta, Chennai, Pune, Hyderabad, Ahmedabad, Surat and Nagpur. Another day and another number. As per IAMAI and Icube, the number of active Internet user (i.e. ones who logon to Internet atleast once a month) is now 32 million and numbers who have used Internet atleast once stands at 46 million. Maximum of the person who are going on for internet banking lies in the age bracket of 26-35. but the rise in the age the level of users become low. Approximately 17% of female use internet banking. This a matter of concern for a banks what are the causes why this is happening. Although many major banks have started offering i-banking services, the slow pace will continue until the critical mass is achieved for PC, internet connections and telephones. However, the upsurge of IT professionals with growing demands is pressuring the government and bureaucracy in the country to support and develop new initiatives for a faster spread of i-banking. But then to there is a fear in mind of customer using internet as a medium for the banking transaction. Private and foreign banks are trying to turn more and more customer towards the usage if internet for the banking transaction. This study is basically to know the relation of various independent variables on the customer usage of internet for banking.

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INTRODUCTION
What is bank? A banker or bank is a financial institution whose primary activity is to act as a payment agent for customers and to borrow and lend money. It is an institution for receiving, keeping, and lending money. What is online banking? Online banking (or Internet banking) allows customers to conduct financial transactions on a secure website operated by their retail or virtual bank, credit union. Need for internet banking: One has to approach the branch in person, to withdraw cash or deposit a cheque or request a statement of accounts. In true Internet banking, any inquiry or transaction is processed online without any reference to the branch (anywhere banking) at any time. Providing Internet banking is increasingly becoming a "need to have" than a "nice to have" service. The net banking, thus, now is more of a norm rather than an exception in many developed countries due to the fact that it is the cheapest way of providing banking services 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. Indias banking sector is growing at a fast pace. India has become one of the most preferred banking destinations in the world. The reasons are numerous: the economy is 9|Page

growing at a rate of 8%, Bank credit is growing at 30% per annum and there is an everexpanding middle class of between 250 and 300 million people (larger than the population of the US) in need of financial services. All this enables double-digit returns on most asset classes which is not so in a majority of other countries. Foreign banks in India achieving a return on assets (ROA) of 3%, their keen interest in expanding their businesses is understandable even more so when compared with the measly 1% average ROA for the Top 1000 banks in the world. 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 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 contract, 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. Why this research: An analysis of the differences in risk perceptions between bank customers using Internet Banking and those not using Internet Banking was done and it 10 | P a g e

showed that risk perceptions in terms of financial, psychological and safety risks among customer not using the internet was more meaningful than those using internet banking. Customers not preferring to use internet banking thought that they would be swindled when using this service, and therefore, are particularly careful about high risk expectation during money transfers from and between accounts. Only 37% of Indian Internet users come from Top 10 cities i.e. Mumbai, Bangalore, Delhi, Calcutta, Chennai, Pune, Hyderabad, Ahmedabad, Surat and Nagpur. Another day and another number. As per IAMAI and I-cube, the number of active Internet user (i.e. ones who logon to Internet atleast once a month) is now 32 million and numbers who have used Internet atleast once stands at 46 million. Maximum of the person who are going on for internet banking lies in the age bracket of 26-35. but the rise in the age the level of users become low. Approximately 17% of female use internet banking. This a matter of concern for a banks what are the causes why this is happening. Although many major banks have started offering i-banking services, the slow pace will continue until the critical mass is achieved for PC, internet connections and telephones. However, the upsurge of IT professionals with growing demands is pressuring the government and bureaucracy in the country to support and develop new initiatives for a faster spread of i-banking. But then to there is a fear in mind of customer using internet as a medium for the banking transaction. Private and foreign banks are trying to turn more and more customer towards the usage if internet for the banking transaction. This study is basically to know the relation of various independent variables on the customer usage of internet for banking.

OBJECTIVE OF THE STUDY

Perceptual mapping of internet banking users. To know the cause why customers are not using internet banking To know which age group of customers is using different e-banking facilities.

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LITERATURE REVIEW
In India still there is lack of users for internet as a medium for banking purpose, but the banking system are upgrading and bringing many electronic banking medium for customers so that banking can be made more convenient. [1] Joseph et al. (1999) investigated the influence of internet on the delivery of banking services. They found six underlying dimensions of e-banking service quality such as convenience and accuracy, feedback and complaint management, efficiency, queue management, accessibility and customization. Jun and Cai (2001) identified 17 service quality dimensions of i-banking service quality. These are reliability, responsiveness, competence, courtesy, credibility, access, communication, understanding the customer, collaboration, continuous improvement, content, accuracy, ease of use, timeliness, aesthetics, security and divers features. They also suggested that some dimensions such as responsiveness, reliability and access are critical for both traditional and internet banks. Jayawardhena (2004) transforms the original SERVQUAL scale to the internet context and develops a battery of 21 items to assess service quality in ebanking. By means of an Exploratory Factor Analysis (EFA) and a Confirmatory Factor Analysis (CFA), these 21 items are condensed to five quality dimensions: access, website interface, trust, attention and credibility. From the provider perspective, there are target quality and delivered quality. The focus of process- or supply-led quality definition is rather internal than external, and it is defined as conformance to requirements. It lays emphasis on the importance of the management and the supply-side quality, and there is an important role of the process in determining the quality of outcome (Ghobadian, 1994). Achieving the quality of conformance between the planned (target) quality level and the real quality delivered to customers depends on the service quality management system in an organization.

[2] IAMAI report on online banking 2006. 43% of online banking user havent started online financial transaction because of security reasons, 39% havent started because they prefer face to face, 22% havent started because they dont know how to 12 | P a g e

use, for 10% sites are not user friendly and for 2% banks are not providing the facility of internet banking. According to research 68% of the customers can not say that when they will be starting the financial transactions through internet. Maximum numbers of online banking users are male and maximum of them are in age the group of 25-35. Numbers of female users are very less i.e. 17% only. More than 60% of the people who are having account with have accounts in 3-4 banks. Only 37% of Indian Internet users come from Top 10 cities i.e. Mumbai, Bangalore, Delhi, Calcutta, Chennai, Pune, Hyderabad, Ahmedabad, Surat and Nagpur. Another day and another number. As per IAMAI and I-cube, the number of active Internet user (i.e. ones who logon to Internet atleast once a month) is now 32 million and numbers who have used Internet atleast once stands at 46 million. [3] The Indian Internet Banking Journey In 2001, a Reserve Bank of India survey revealed that of 46 major banks operating in India, around 50% were either offering Internet banking services at various levels or planned to in the near future. According to a research report,( India Research, Kotak Securities, May 2000.) while in 2001, India's Internet user base was an estimated 9 lakh; it was expected to reach 90 lakh by 2003. Also, while only 1% of these Internet users utilized the Internet banking services in 1998, the Internet banking user base increased to 16.7% by mid- 2000. [4] Meuter et al. (2000) have identified critical incidents of customer satisfaction and dissatisfaction with technology-based service encounters. Given that business-to-business transactions are the fastest growing segment of technology-driven services (Hof, 1999); Meuter and his colleagues (2000) suggested investigating what drives business customer satisfaction or dissatisfaction with technologydriven services. According to Gnroos (1982), customers distinguish the quality of customer interactions that take place during service delivery (functional quality) and the quality of the outcome the customer receives in the service encounter (technical quality). Customers perceive the quality of services of Internet banking based on the performance of online delivery systems not on the processes in which the delivered service is developed and produced. Because customers perceive Internet banking service quality 13 | P a g e

based on relatively standardized outcomes determined by online systems, customer attitudes toward that outcome reflect overall quality of services delivered Customers usually perceive risks in conducting transactions electronically and particularly if the transactions involve money. Risk perception can be of six different types: time risk, finacial risk, performance risk, psychological risk and safety/confidentiality risk. It is generally considered that risk perception could be higher for electronic banking services. This study aims to understand extent to which whether this is consideration is valid as well as to determine the levels of risk perception differences among those using Internet Banking and those not using it.

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RESEARCH METHODOLOGY
RESEARCH TYPE We use descriptive research and exploratory research design in our studies. Descriptive research is also called Statistical Research. The main goal of this type of research is to describe the data and characteristics about what is being studied. The idea behind this type of research is to study frequencies, averages, and other statistical calculations. Although this research is highly accurate, it does not gather the causes behind a situation. Descriptive research is used to obtain information concerning the current status of the phenomena to describe "what exists" with respect to variables or conditions in a situation. Here we also tried to find out the main cause why there is perceptual blocking of the Indian customers towards internet banking. The methods involved range from the survey which describes the status quo, the correlation study which investigates the relationship between variables, to developmental studies which seek to determine changes over time. procedure Design of procedure for information collection Collection of information Analysis of information Generalizations and/or predictions Statement of the problem Identification of information needed to solve the problem Selection or development of instruments for gathering the information Identification of target population and determination of sampling

DATA COLLECTION Primary Data: Structured Questionnaire Secondary Data: Online Database, Journals, Surveys

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SAMPLING We have used convenience sampling technique. It is also called haphazard or accidental sampling. Members of the population are chosen based on their relative ease of access. To sample friends, co-workers, or shoppers at a single mall, are all examples of convenience sampling. Sometimes called grab or opportunity sampling, this is the method of choosing items arbitrarily and in an unstructured manner from the frame. Though almost impossible to treat rigorously, it is the method most commonly employed in many practical situations.

Sample Unit: NCR Internet Users (for banks) Sample Technique: Convenient sampling Sample Area: NCR Sample Size: 150

TOOLS Statistical : SPSS Techniques : MDS and Multiple Regression

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DATA ANALYSIS AND INTERPRETATION

Q1)
age 18-25 26-35 36-45 46-60 61-+

own a internet
27 51 20 8 1

dont have internet 3 1 2 4 3

Table 1

Figure1

From the above interpretation we can say that age group between 18-25 own a internet of 27%while % who dont own an internet is 3%, similarly % between 26-35 own an internet of 51% while 1 %dont own internet, 36-45 own an internet of 20% while 2%dont own, 46-60 own 8%internet while 4% dont own, 61and above own 1 %internet, 3%dont own. Finally we can see that age group 26-35 own maximum % of internet.

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Q2) The time you are using internet A) less then a month B) 1 to 6 months C) 6 to 12 months D) More than a year
age 18-25 26-35 36-45 46-60 61-+

A) less then a month

3 0 0 0 1

A) 1 to 6 months
2 0 3 2 3

A) 6 to 12 months
12 15 0 8 0

Table 2

Figure2

From the above interpretation we can say that all the younger have been using internet since last one year but age group between 36-45, 46-60and 61 and above have started using internet in recent . finally we can the age group between 26-35 are the maximum users of the internet .

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Q3) Frequency of visiting your bank branch per month? a) Less than 1 b) 1 to 3 times c) 3 to 8 times d) 8 to 12 times e) over 12 times
age 18-25 26-35 36-45 46-60 61-+ <1 11 4 2 4 5 1 to 3 14 1 3 8 0 3to8 10 3 2 2 0 8to12 3 8 4 2 0 12+ 2 26 5 1 1

Table3

Figure3

From the above inerpretation we can say that in comparison to all the above age groups maximum no. of time that is being visited to the bank is of age group between 26-35 thats is around 12 times in a month .

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Q4) 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
age 18-25 26-35 36-45 46-60 61-+ deposit 10 10 3 4 1 Advice 8 4 0 4 0 balance 13 7 4 5 2 withdrawal 7 17 7 4 3 Others 2 4 2 0 0

Table 4

Figure4

From the above interpretation we can say that the reason for visiting bank maximum no. of time is basically is for the cash withdrawl that to is done by the agr group between 26-35 that is of 17.

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Q5) the e-banking facilities provided by your bank?

age 18-25 26-35 36-45 46-60 61-+

ATM Online banking Telephone banking Mobile banking SMS banking

atm 20 10 2 14 5 online 21 29 16 25 2 telephone 12 14 2 2 2 mobile 15 18 15 2 2 sms 25 30 12 14 5

Table 5

Figure5

From the above itnerpretation we can say that all the above age gropus says that the mostly all the facilites is provided by their banks wheteher it be atm online, telephone , mobile expcept to the person who belong to the age group of 61 and above .

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Q6) what banking services do you use which your Internet bank offers? (Please check all you are currently using) 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

Figure6

From the above interpreatation we can that the perosn use internet bank offers basically for seeking product and rate information and seconly for checking balance and then they use for to download loan information ,then to dowmload personal bank transaction activities .

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Q7) 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

Figure7

From the above interpretation we can say that the reason for choosing particular bank for internet bank account is beacause of the excellent services offered by the bank and second most improtant reason is that of brand name of the bank .

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MDS After filling up the 63 column and 120 rows of SPSS data we get the table of responses of 120 respondents perception about our 6 brands and their 9 attributes. We calculate the weighted mean of every column and finally we get the 6*10 matrix form of our weighted mean MDS data, which would be input to SPSS for final MDS output. The 6*10 matrix is given below-

Parameters Accessib Account Bank ser Convenie design Encourag Location Training user fri

detuch 2.8800 2.9517 4.2475 2.8101 3.2441 2.6790 3.2687 2.1745 3.8692

hdfc citibank 3.4179 3.4706 3.5385 3.5550 3.6963 3.5468 3.5365 3.8282 3.8142 3.5550 3.2791 3.5385 3.2574 3.1222 3.2791 3.7123 2.7087 3.3544

icici hsbc 3.2791 3.4051 3.2532 3.3819 3.9609 4.0975 2.8101 3.4356 3.0222 3.1170 2.8698 3.4051 2.9707 2.8500 2.6493 3.3490 2.6238 3.4051

yesbank 2.8545 2.8824 2.7358 2.7734 2.7429 2.7836 2.4000 2.4468 2.9401

The Lower Triangular matrix

Raw (unscaled) Data for Subject 1 1 1 2 3 4 5 6 .000 2.172 2.393 1.511 1.786 2.061 6 6

2 .000 .932 1.407 1.163 2.264

.000 1.937 .954 2.475

.000 1.361 1.540

.000 2.146

.000

The index of fit or R-square and stress should be measured. Thus R-square indicates goodness of fit, whether stress value represents badness of fit. So for any research higher value of R-square and lower value of Stress is expected. The high R-square value represents MDS model is well fitted with the given problem. In our case, Stress = .01817 RSQ = .99785 24 | P a g e

Young's S-stress formula 1 is used. Iteration 1 2 3 4 5 6 7 8 S-stress .02311 .01992 .01838 .01698 .01564 .01434 .01327 .01266 Improvement .00319 .00154 .00139 .00134 .00130 .00107 .00061 .001000

Iterations stopped because S-stress improvement is less than

Stress and squared correlation (RSQ) in distances For matrix .01817 RSQ =

Stress

.99785

Configuration derived in 2 dimensions

Stimulus Coordinates Dimension Stimulus Number 1 2 3 4 5 6

Stimulus Name detuch hdfc CITIBANK ICICI HSBC yesbank

1 1.1537 -1.0363 -1.5704 .5452 -.7060 1.6138

2 1.4040 -.3486 -.1294 -.0590 .3541 -1.2210

Optimally scaled data (disparities) for subject 1 2 3 4

1 5

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1 2 3 4 5 6

.000 2.800 3.126 1.590 2.126 2.665 6

.000 .577 1.590 .890 2.800

.000 2.126 .890 3.366

.000 1.318 1.590

.000 2.800

.000

Derived Stimulus Configuration

Euclidean distance model

1.5 detuch

1.0

Dimension 2

0.5

HSBC ICICI hdfc

0.0

CITIBANK

-0.5

-1.0

yesbank

-1.5 -2 -1 0 1 2

Dimension 1

Figure8 As we can detuch bank is leading in both d dimensions where as there is a competition between HSBC Citibank and hdfc. But the least is among the yesbank. Icici bank is close to positive response but here we can see that there is some areas where the bank has to work on to improve.

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For your choice of an Internet bank, please indicate how much each of the following factors (were) are important for you: MEAN OF ALL RANKS
Statistics Convenience 120 0 3.1083 Curiosity 120 0 2.9333 rates 120 0 2.9667 Safe 120 0 2.9833 Charge 120 0 2.7083 transaction 120 0 2.9250 shopping 120 0 2.5083

N Mean

Valid Missing

Table 6 BY THIS WE CAME TO KNOW THAT PEOPLE USING INTERNET BECAUSE OF CONVINENCE ARE MOE AND LESS BECAUSE O SHOPPING. The main reasons that you have not opened an Internet bank account yet? (Check all that apply)
Statistics NEVERHR D 30 0 3.0000 SECURIT Y 30 0 3.3333 TIME 30 0 2.6000 DNTWNT 30 0 3.1333 CHECKFIRS T 30 0 2.5000 NOTAVALIAB L 30 0 2.9333 OTHERS 30 0 2.6000

N Mean

Valid Missing

Table 7 Security is the main reason why people are not opening the internet bank acounts where as the second highest goes to they dont want to try new thing.

CONCLUSION AND RECOMMENDATIONS

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There is still a lot needed for the banking system to make reforms and train there customers for using internet for there banking account. Going through the survey the main problem lies that still customer have a fear of hacking of accounts and thus do not go on for internet banking. Banks are trying there level best by providing the best security options to the customers but then to there is lot of factors which betrays a customer from opening an internet bank account. Banks are providing free internet banking services also so that the customers can be attracted. By asking the bank employs we came to know that maximum numbers of internet bank account holders are youth, business man and HNIs. If proper training should be given to customer by the bank employs to open an account will be beneficial secondly the website should be made friendlier from where the first time customers can directly make and access there accounts. We can see the time is changing and we he passage of time people are accepting technology there is still a lot of perceptual blocking which hampers the growth its the normal tendency of a human not to have changes work on the old track, thats also one of the reason for the slow acceptance of internet banking accounts. Give proper training to customers for using i-banking Create a trust in mind of customers towards security of there accounts Provide a platform from where the customers can access different accounts at single time without extra charge. Make there sites more users friendly. Customers should be motivated to use I banking facilities more.

LIMITATIONS
1. Time Constraints. 28 | P a g e

2. Budgetary Constraints. 3. The participants comprised a small sample, which can be generalized across the sector.

BIBLOGRAPHY
BOOKS 29 | P a g e

1) Marketing research by BERRY G.C 2) Marketing Research by Malhotra N.K. , fifth edition SITES (http://www.icmrindia.org/free%20resources/casestudies/banking1.htm#b1 www.hdfcbank.com/ www.hsbc.co.in/ www.icicibank.com/ www.yesbank.in/ www.db.com en.wikipedia.org/wiki/Perceptual_mapping www.rocw.raifoundation.org/fashion/BAfashion-mktg/brandpositioning/lecturenotes/lecture-04.pd en.wikipedia.org/wiki/Multidimensional_scaling

REFRENCES 1. Khan, M.S., Mahapatra, S.S. and Sreekumar (2009) Service quality evaluation in internet banking: an empirical study in India, Int. J. Indian Culture and Business Management, Vol. 2, No. 1, pp.3046. 2. IAMAI report on online banking 2006 3. The Indian Internet Banking Journey - Nachiket Mor, Head of ICICI's Treasury, in March 2000. The Impact Of Internet Banking Service Quality On Business Customer Commitment

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Annexure
This survey is designed to understand bank account holders perspectives on Internet banking, their experience with Internet banking, and their expectations on Internet banking services

QUESTIONNAIRE
Name .. Age 18-25__ , 26-35__, 36-45__, 46-60__, 60 +____ Gender MALE FEMALE Occupation . 2) Do you own a internet? a) Yes b) No 31 | P a g e

3) The time you are using internet A) less then a month B) 1 to 6 months C) 6 to 12 months D) More than a year 3) Frequency of visiting your bank branch per month? a) Less than 1 b) 1 to 3 times c) 3 to 8 times d) 8 to 12 times e) over 12 times

4) 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 5) The e-banking facilities provided by your bank? ATM Online banking Telephone banking Mobile banking SMS banking

6) The e-banking services you use provided by the bank? ATM Online banking Telephone banking Mobile banking SMS banking

~~~For those who uses internet banking service~~~

What is the name of bank you have an Internet bank account with? ________

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What are the most important reasons you opened an Internet bank account? (Please prioritize the following list in the order of importance. (1: the most important 6: the least important) Convenience (24 hours service, anywhere connectivity) ______________ Curiosity______________ Better rates______________ Safe and secure______________ Low service charge______________ Easy to maintain my banking transaction activity______________ Online shopping ___________________ What banking services do you use which your Internet bank offers? (Please check all you are currently using) 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

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 In addition to your Internet bank account, do you also have a traditional bank account? Yes No

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Rank the following brands on the scale of 1-5

1-Poor very good

5-

PARAMETERS / BRANDS Bank service Account security Accessibility Convenience Training to use banking services Encourage customer to use ebanking Location Customer Relation Management USER FRIENDLINESS

HDFC

DEUTSCHE

CITIBANK

ICICI

HSBC

YES BANK

For those who didnt use internet banking

The main reasons that you have not opened an Internet bank account yet? (check all that apply) Never heard of Internet banking Concerned about security Haven't taken time to open an account Don't see any real value in having this type of account Too new. I would like to see how it works, then I may open an account 34 | P a g e

Not available through my bank others

For your choice of an Internet bank, please indicate how much each of the following factors (were) are important for you: 1. Better rate and lower service charge______________ 2. Bank familiarity______________ 3. Bank location (geographic) ______________ 4. The size of bank (in terms of asset) ______________ 5. Security of Transaction______________ 6. Convenience (24 hours service from anywhere) ______________ 7. Quick service (transaction completed in seconds instead of minutes) ______________ 8. Variety of features and services that are offered(for example; bill payment, account reconciliation, electronic bill payment) ______________ 9. Integrated value-added services using other on-line services and resources (for example; other brokerage account summary) ______________

Thank You

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