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Indias International Bank

Study of the use of "Alternative Delivery Channels" (ADC) by the customer of Bank Of Baroda
By- Payal Agarwal

About Bank of Baroda


Founded in 1908 by Maharaja Sayajirao Gaewkwad III . Headquarters in Varodra India. Based on 2012 data it is ranked 715 on Forbes Global 2000 list. It has a network of 4426 branches (out of which 4333 branches are in India) and offices, and over 2000 ATMs. Charman & MD - S.S Mundra

Product & Services


Wholesale banking. Rural/ Agricultural Banking. Wealth Management. CPPC- Pension. Baroda Health. Pre-paid Cards. Interest Rates. Deposit Products. Loan Products. Internet banking. Mobile Banking. ATM/ Debit Cards. Demat. NRI Tax Solution.

ADC (Alternative Delivery Channel)


Alternative delivery channels is a Distribution channel strategy used for delivering Financial services without relying on Bank branches . Examples of ADC (Alternative Delivery Channel) are :
Internet Automated teller machines (ATMs) POS devices EFTPOS devices Mobile phones

Each of these technologies serve to deliver a set of banking services and are part of distribution channels that may be used either separately or in conjunction to form the overall distribution channel strategy. These channels are introduced for faster technology & better services which enable the customer to operate his/her account from mobile/ office/ home. ADCs ensure the smooth flow of regular transactions and provide banks with higher profits with lower operational expenses and transaction costs.

Baroda Internet Banking


Baroda Connect is an internet banking facility introduced as an alternative delivery channel for rendering effective customer service on 24 X 7 basis. It offers unique customized services to both Retail & Corporate customers.

All customers can register under BARODA CONNECT for: 1. View facility

or
2. Transaction facility

ATM Services
Automatic Teller Machine (ATM) By Using an ATM, customers can access their bank accounts in order to make cash withdrawals, Debit card cash advances, and check their account balances as well as purchase pre-paid mobile phone credit.

Features
Easy to Use - Just Register, download and start using Baroda M-Connect application. Compatible - Baroda M-Connect works on every mobile platform FREE No Charges levied by Bank.

Benefits
Balance Enquiry Mini statements Fund Transfers: Mobile Recharge Airline Ticket Booking Movie Ticket Booking

Objective of research
Main objective :
Understand the study of use of ADC by the customer of Bank of Baroda.

Other objectives of study are :


To know the frequency of using these services. To analyze for which purpose they are using these services. To analyze the problems they are facing in availing these services. To find out the reason behind they are not avail the services. To find out the reason behind they are availing these services To know how much people are using these services.

Research Methodology
Research design : Descriptive research Research Tool:
o Questionnaire o Personal Interview

Sample Size : 100 Type of sampling : Convenient sampling Place : Branches of Bank of Baroda in Bareilly city. Statistical Tools : Bar Diagram, Percentage method.

Analysis

Data

Gender

In whole research majority are of Males which is (69%) and rest of other is Female which is (31%). Basically the survey has done in Bareilly region where mostly the customer of Bank of Baroda are males and they are more aware about ADC Alternative Delivery Channels as compare to female, So they can give us appropriate response according to the need of research.

Age

In research I have (7%) respondents of Age Less than 20, (48%) of age group between21-30, (32%) of age group between 31-40 and (13%) of age group More than 40. Maximum number of the respondents (48%) is fall under category of 21-30 Age groups as these respondents are basically more aware and friendly of internet banking, mobile banking and ATM services.

Education

According to this question our maximum (57%) respondent are come under graduate category and (38%) under post-graduate and 4% under secondary category. As ADC is technology advancement in banking sector so user must have knowledge of understanding ADC, a well-educated person will understand that. So, taking in to consideration the majority of the responders are Graduates & Post-Graduates.

Occupation

In occupation Majority come under service class i.e. (48%), (29%) are of Business class, student (13%), professional and housewifes are (4%), & (6%) respectively. Most of the respondents come under serviced and Business class as they were target respondent, through which we came to know the real picture of ADC as they are the major users who avail the facilities provided through Internet Banking, ATM services and

Mobile Banking.

Monthly Income

In Income the majority of people who has earning 20,00040,000 (Per Month) is (55%), 40,000-60,000 is 28% below 10000 is 12%, rest of them are under more than 60,000.

Responders avail an internet banking account facilities

In research (41%) respondents are Availing internet bank account facilities but Maximum (59%) of respondents are NOT availing internet bank Account facilities. Therefore it depicts that still customer of BOB are not availing internet bank account facilities provided by bank in next question we see what are the reasons behind availing not availing internet bank account facilities.

Important reasons for opening an internet bank account

The most important reasons behind opening an internet bank account by the customer is convenience i.e. (24%), then Better rates (5%), safe & secure, maintain banking transaction activity and curiosity are (4%)respectively. As we know internet banking account facilities is that facilities through which user can access his bank account, he can make transaction from any where- home, office, etc the only thing they need is internet connection so its is very convenient for customer of BOB they dont need to come bank branches for transaction they can do through BARODA CONNECT. Other reasons for using this facility is safe and secure banking it is safe as user provided with his/her personal ID & password.

Important reasons for NOT opening an internet bank account

The most important reasons behind not opening an internet bank account is as they concerned about security i.e.(20%) and too new dont know how they work (16%) other reasons are havent taken time to open an account (9%) at last dont see any real value in this type of account (4%) and Other (10%). As per research most of the candidate is concerned about security as all transaction they have to do through internet there may be chance of some error while making fund transfer or making payment & also there is a risk of Cybercrime like Hacking, other reason is too new still now most of the respondent are dont know how they have to avail internet bank account facilities.

How long they are using online banking system.

According to this question (14%) respondents are using Internet Banking facilities from 6 months to 1 year, (12%)are using1-6 month, (10%) using above1year, and(5 %) using below1month. It depicts internet banking or board connect take its real place from 6 months to 1 year.

Major purpose for which they are use the online banking.

In purpose of using online banking major purpose for which user use online banking is for online ticket booking (14%) then for balance check i.e.(11%),online bill payments i.e.(10%)others (6%) like fund transfer. It depicts how user uses online banking for their various purposes. As per Question number (6)the most important reasons for availing internet facilities is convenience as in this question also most of the respondent book their tickets online which is convenient for them as they can now book tickets by sitting at their home instead standing in a long queue. Other reasons here is for tax payments, fund transfer etc.

Respondent using third party transfer of the online banking.

In research 28% respondent are NOT using third party transfer through online banking and only 13% are using it. Therefore it depicts that still customer of BOB are not availing third party transfer facilities provided by Baroda connect.

If YES how many times during the last ONE year.

Peoples who have used this service once and 1-3 times are just 5% only, but there are some people who used third party transfer 3-5 times are just 3%.

How many feel that online system provide enough security.

Many respondents are agreeing in this question as (10%)responders think that Yes third party transfer provides you enough security, and only (3%) of the responders are Not agreeing on that.

How many people are using ATM cards.

In research most of the respondent i.e. (77%) is using Baroda ATM services and (33%) respondents are still not using Baroda ATM services. It depicts that ATM services is that delivery channel which is used by most persons as it is most popular ADC.

Problems they are facing while using an ATM.

The problem which respondents face while using ATM is limit on daily withdrawal (21%)wait in long queues (15%)inserting card incorrectly (12%) and other (5%)but majority of respondents are facing no problem i.e.(47%) It depicts most of the respondent are satisfied as they are not facing any problem, but there are some respondents who have faced problem regarding limit on daily withdrawal, etc. are some problem which occur which cause inconvenience to customers.

How frequently they are using ATM per month.

According to our research (29%) respondent using ATM services 3-8times in a month, (25%) respondent using 1-3 times, (10%) respondent using less than 1, (8%) respondent using over 12times, (5%) respondent using 8-12 times. It depicts ATM services are most frequently uses by the users.

Main reasons for using ATM

Main reasons for using ATM

According to the most important category i.e. to avoid queue in teller counters is highest concern for respondent (37%) then if we move towards least important side in bar 2 to make Avoid needlessly carrying cash is second highest concern (27%) in bar 3 to make transaction during non-banking hours is third highest concern (37%) & the least important factor which we found is most of the time you visit merchants with point of sales is (80%).

How many people are using mobile banking services.

In research (34%) respondent are availing mobile banking facilities Maximum number of the respondents i.e. (66%) are not availing mobile banking facilities. Therefore it depicts that still customer of BOB are not availing mobile bank account facilities provided by bank so, there is a scope of awareing consumer about mobile banking.

How frequently they are using Mobile Banking.

According to research (12%) respondents are using mobile banking services 1-3 times in a month, (9%) respondents using 3-8 times, (7%) respondents using less than 1 time, (4%) respondent using over 12times, (2%) respondent using 8-12 times in a month. It depicts mobile banking services are not uses frequently by the customers.

For which purpose they are using Mobile Technology.

The major purpose for which user use mobile banking service is for balance enquiry i.e(17%) and mini statement (15%) then mPinchange i.e(2%), fund transfer& others (0%) respectively. It depicts how user uses mobile banking for their various purposes which provide them reliability, perceived ease of use.

Which factor are most important in the adoption of mobile technology

Security is the highest concern for the respondents in adoption of mobile technology it depicts that most of the peoples is using mobile banking because it provide security to user which leads to safe & secure banking.

Which factor are most important in the adoption of mobile technology

According to the most important category i.e. Security is highest concern(31%) then if we move towards least important side in bar 2 then Reliability is second highest concern (31%), in bar 3 Privacy is third highest concern (33%), in bar 4 Cost is highest concern(39%), in bar 5 Perceived of ease of use is fifth highest concern (75%)& the least important factor which we found for adoption of mobile technology is cost & Perceived of ease of use i.e. (50-50%) each.

Recommendations
I. Internet & mobile application should be easy to use so that everyone can take proper advantage of the facilities being provided. II. Bank of Baroda has to install more ATMs at convenient locations of Bareilly. III. There should increase in daily withdrawal for normal ATM card holders. IV. To boost confidence and enhance self-efficacy in using internet banking services, demonstrations via video performance could be made at bank branches to showcase the user-friendliness of such services. Such initiative will help customers to be more familiar with the bank and its internet banking services. V. Install most favored technology for secure internet banking services. VI. Bank of Baroda should make aware the user for other services which provided through internet banking and mobile banking which is not avail by the users through electronic media (advertisements). VII. Reduce in deduction of charges while making online payments i.e. demand drafts.

Findings
Internet banking account facility is still not avail by many bank account holders Procedure for availing internet & mobile Banking facilities are too new to customers as it is latest technology in banking sector which is not so user friendly to customers. Consumers are still concerned about security while availing internet & mobile Banking facilities. The most important reasons behind opening an internet bank account by the customer are that it provides convenience. There are various facilities which is available in online banking i.e. ticket booking, bill payments, etc. but there are some facilities like request for a check book still availed by the user. Internet banking or board connect take its real place since last 6 months.

Contd
Still there are some user of online banking not using third party transfer some of them said it doesnt provide enough security. In all of the alternative delivery channels i.e. (Internet Banking, ATM services, Mobile Banking) ATM services are mostly used by the peoples. Most of the respondent do not face any problem while using an ATM but some respondent are facing problem regarding limit on daily withdrawal of money & waiting on long queues . ATM services is most frequently use by the user. Most important reason which we find outfor using the ATM is to avoid queue in teller counters & to make transaction during banking hours. In all of the alternative delivery channels i.e. (Internet Banking, ATM services, Mobile Banking) mobile banking services are less availed by the peoples.

Contd
There are various facilities which are available in mobile banking but most of the respondents are using mobile banking services for balance enquiry & mini statement but other services like fund transfer are still not used by them. Mobile banking services are not uses frequently by the customers Security is the highest concern for the people in adoption of mobile technology.

Apart from main findings some of the other findings are as follows:
In many cases while using an ATM card the transaction took place without dispensing the money. mPin change are still not frequently used by the users.