An Empirical Study on

“Perception of Mobile Banking Users”

- with reference to State Bank Of India

Guided By: Prepared By:

Prof. Bhavik Panchasara Khushboo C. Munjapara
Asst. Professor Semester - III
Faculty of Management MBA

MARWADI EDUCATION FOUNDATION GROUP OF INSTITUTIONS

 Whyaa
Why
BankingSector…?
Banking Sector…?
Service sector has gained an overwhelming importance

Total assets of banking as a service sector comprise of

65% of the GDP in march 2010

Advent of high-tech communication and IT have

facilitated the growth of the banking sector

The growth in the Indian Banking Industry has been

more qualitative than quantitative

 Why
Why
StateBank
State Bankof
ofIndia…?
India…?
The public sector banks are said to be burdened with excessive
NPAs, massive manpower and lack of modern technology

But today SBI is, going through a momentous phase of Change

and Transformation

It is entering into many new businesses and is forging ahead

with cutting edge technology with customer friendly processes

It is also attempting to change its old mindsets, attitudes and

take all employees together on this exciting road to
transformation
 What is Mobile Banking…?

Provision and availment of banking

services with the help of mobile devices
It works on multiple access channels such
as SMS, downloadable client, mobile
Internet (WAP).

SBI launched its mobile banking service in December 2008

in association with local technology-service provider, Spanco
Telesystems
 Why
Why
MobileBanking…?
Mobile Banking…?
Mobile market is one of the fastest growing market and its

penetration is much higher and growing rapidly in India

Has potential to bring a whole host of people that have

no/little access to land lines/internet connections

An innovative way to generate financial inclusion of people at

greater reach

SBI is rigorously promoting it presently because of its lowest

cost per transaction

 Literature
Literature
Review…
Review…
Mobile banking yet to take off among Indian banks
- Economics Times - 10 May, 2009
Banks see pick-up in mobile banking
- Business Standard - August 25, 2009
Nokia, Yes bank in pact for Mobile Money Services
- Business Standard - February 16, 2010
A guide to the best mobile banking apps in USA
- www.mybanktracker .com - May 17th, 2010, USA
Mobile banking is changing bank customer behavior
- mbanking.blogspot.com - Thursday, May 06, 2010
Mobile banking in India
- www.buzzle.com - Tuesday, November 11, 2008
 Statement
Statement
&&
Scope…
Scope…
Statement of Problem :

Researcher with reference to SBI RBO-1, Rajkot; wants to

know about the customer awareness, perception and
response about the Mobile banking service provided by
them.

Scope of the study :

The scope of the study is limited to the customers of all 42

Branches of SBI RBO-1 (Rajkot District).
Objectivesof
Objectives ofthe
the
Study...
Study...
To understand the concept of Mobile banking and its

importance to the bank as well as customers.

To compare the prevailing MBS among leading banks in India.

To understand the various perceptions of users and non users

of MBS of SBI

To build up SWOT analysis of Mobile banking of SBI

To build up various solutions for drawbacks in M-banking

service of SBI
 Research
Research
Methodology…
Methodology…
Research Method: Descriptive research

Sampling Method: Custer + Random Sampling

Sampling Unit: User or Non-user of MBS of SBI

Sample Size: 200

(100 for users and 100 for Non-users of MBS of SBI )

Data collection method : Primary

(Secondary for further proceedings)

Data collection technique: Sample Survey & Personal Interview

(Through structured questionnaire)

 Analysis
Analysis
&&
Interpretation…
Interpretation…
Logic of Analysis: To analyze customer’s views, ideas and

opinions related to M-Banking service of SBI and interpret

thereof with respect of research objectives.

Classification & tabulation: The data thus collected were

classified according to the categories, counting sheets & the

summary tables were prepared.

Statistical tools used: Percentage, Ranking, Averages, Pie

diagrams, Bar charts, Hypothesis testing, etc.

Ranking of M-Banking of SBI among other
leading commercial banks…

1 • ICICI Bank, Axis Bank

• Union Bank of India 3

4 • State Bank of India

• Standard Chartered 5
6 • Bank of India
• Citi Bank , HDFC Bank 7
• Corporation Bank
• Allahabad Bank,
10
• Dena Bank
Analysis for customer awareness of Non-users of MBS of SBI

• Still unaware 62%

regarding M- • Not knowing
banking that SBI offers
service MBS free of
charge
36%
• Not knowing 40%
regarding the • Don’t want to
various get register
features of even today
MBS
> 50%
 Analysis for customer response of Users of MBS of SBI

• Knows how to operate this service

95%

• Use Balance check, mobile top-up, and fund transfer features more
40-70%

• Use Vodafone and Idea as their service providers

>50%

• Agree that MBS of SBI is Cheaper, faster, and User-friendly

>40%

• Are facing problems sometimes

36%

• Users rank the MBS of SBI as “Good”

56%
• cost of m-banking
• cost of m-banking
• speed of m-banking
• user-friendliness of m-
banking
• user-friendliness of m-
banking
The opinion
regarding
Testing of Hypothesis
Is independent of
• the education of the
respondent
• the monthly income of
the respondent
• the age of the
respondent
• the age of the
respondent
• the occupation of the
respondent
• mobile banking • to get registered for
• mobile top-up facility the m-banking of SBI
of m-banking of SBI
• fund-transfer facility
of m-banking of SBI
The awareness The
regarding intention
Is independent of Is independent of
• the age of the • the monthly income of
respondent the respondent
• the age of the
respondent
• the education
qualification of the
respondent
Conclusion…
Conclusion…
Strengths Weaknesses
• lowest cost per • lack of awareness of
among the
transaction,
customers,
• greater reach, • lack of knowledge
• 24X7 access, among the
• user-friendliness, employees of SBI,
• Goodwill of SBI • poor technology
adaptation

Opportunities Challenges
• rapidly growing • need of various
mobile penetration vendor supports
• maintaining secured
• 94% of customers
IT infrastructure,
are untapped, • Scalability &
• more features can
Reliability,
be added in MBS • illiteracy among the
rural and urban poor
 Suggestions
Suggestions
&&
Recommendations
Recommendations
Identifying some untapped areas

Trying Some new and innovative advertising campaigns

Better technology adaptation

Improvements should be made in the SBI freedom application

Training and awareness among employees

Educate the customer properly in order to grab their loyalty

Exchange of information on threats and vulnerabilities at

appropriate forums

International Mobile Banking service can be adopted

 Benefits
Benefits
&&
Learning
Learning
 • Can know about its stand among the other
players in m-banking market of the city
• Can be familiar with awareness among
…For the customers regarding mobile banking and its
future scope
Bank • Can know the response of the existing
customers to improve its m-banking service
• And thus can know the priorities for investing
their cash and kind

• How to deal with different people of different

mindsets
• How to treat different customers by different …For the
means
• How to behave in a corporate world (no personal Researche
excuses)
• Learned to accept responsibilities r
• Confidence level has gone up than earlier
Bibliography
Bibliography
 • Philip Kotler’s Marketing Management,
12th edition
• Ken Black’s Business Statistics, 4th Edition
Bibliography:- • Annual report of 2010-2011
• SBI mobile banking’s user manual,
broachers and templates

• www.statebankofindia.com
• www.onlinesbi.com
• www.mbanking.blogspot.com Webliography:
• www.business-standard.com/india/ -
• www.vitalanalytics.in
• www.mybanktracker.com
 Thankyou
Thank you……
a m ic
Acad eddy
a m R a
h i n n a s a r
S . C a n c h
Dr. av i k P
rs
B h be
Prof. l t y m e m Corporate
Fa c u
A l l Mr. Birendra Sah
Mr. Dhaval Jadav
Mr. Ashok Ratna
m a ny mo re Ms. Shamiksha
…
Family, Friend s & s&