ABSTRACT Information technology plays the major role in the modern industries throughout the world.
Banks relies on the Information technology in conducting the businesses and also invests huge amounts of money in developing the technology to reduce the operational costs and better customer services and to gain competitive advantages by offering the customers better services etc. Now a day almost all the banks have adopted the Internet banking services, ATMs, telephone banking etc. in the last decade. More research works have found the significant numbers of customers are adapting themselves in the online banking through the internet services. But the findings have also shown that the achievement has got successes only when they have perceived the technology to be useful. This research work has examined the perception of the customers’ of the using of IB (Internet Banking) in UK. The research work are therefore, will very useful reference for the modern banking industry in the UK to improve the current level of Internet as well as the online banking services and in further research.
Banking is the highly information intensive activity which relies mostly on the information technology to process, and after that deliver the up to date information to the all relevant clients. In the current modern world Banks uses the Internet technology like the strategic weapon to operate, processing of data, secure transaction, etc. The online or internet banking user is supposed to perform the following activities online through the banking gateway: 1. 2. 3. 4. 5. 6. 7. Updating of account status Checking current balances and transaction history. Inter account transactions, Paying of utility or service bills, Managing of investments and stock trading, ATM access anywhere, Online shopping etc.
The internet has brought efficiency than any other distribution mediums. Multiple distribution channels that are used by the banks increase the market coverage and enable the different products to be targeted. Through online banking, the effective mass customization can be achieved and it also reduce the cost, spending time in replacement etc. lower in staff number, smaller infrastructure are all helps the banks to reduce financial losses. And bank can serve the customer financial management to access 24/7 basis.
After above all, it also brought some disadvantages too. High end costly technology, legal matters, online thefts, crashes, securities, loss of privacy, lack customer contact are all may be cited in this sector.
INTRODUCTION Online Banking: Banking performed through the internet or intranets that allow users to conduct the financial transactions through a secured gateway. Thus a virtual banking can be setup through the online banking and the customers can grab all the banking facility in a more convenient way.
In a general high street banking, the customers has to be in the queue form normal banking like cash handling or to honor a cheque or other banking needs. While in the online banking customers need not to pay any attention of being such time killing queues and any sort of inquiry. He or she just need to log on in a secured online gateway and by some assumable clicks the financial matters can easily be performed. And in this online banking system a customer is respected as the customer of a designated bank not any of its branches, he bears a unique id. Internet banking has also relived us from being spoiled the nature too. Now a day’s no one bothers about the paper statement, rather they can get it easily from the internet banking.
There are some main constituents of the internet banking. From them, we can mention as private networks, virtual private network (VPN), public networks, domain, Pc’s, world wide web, telephones, fax, modem, Automated teller machine (ATM), Internet etc. And from them internet is the information highway by which customers can place their demands through login to the internet and then to the bank. They then can use banking services and can input their demands to the banks. The banks then receive the instructions, match the accuracy and deliver the products or perform the requested operation.
TECHNOLOGICAL DEVELOPMENT IN UK BANKING UK’s banking sector is the world’s 3rd largest in some terms, namely, 1. Efficiency, 2. Dynamism and 3. Return on the capital. A number of mergers and acquisitions have taken place in the UK banking industry to strengthen its economy and re-structuring the business. Until the late of 1960s, the retail banking was dominated the big-five banking groups of 1. Barclays, 2. Lloyds, 3. Midland, 4. National Provincial and 5. Westminster Bank. The midland bank had been acquired by the Hong Kong and Shanghai Banking corporation and named as HSBC. National provincial had merged with National Westminster and had acquired by the RBS (Royal Bank of Scotland)
UK has now become the most preferred banking destinations in the current world. There are a number of reasons observed.
In the perspective of banking or its related products and services being offered in the Internet, Online banking is not differs than the traditional banking system but the services are delivered through the electronic communications system, the internet. The principle features of the online banking may be summarized as: 1. The online banking system has removed the traditional geographical b boundaries as the customers from different countries or regions can take part in it. 2. Has added extra facilities to the traditional banking strategy and facilitated the customers with the new modern informational banking system.
Possesses the highest security to the banking system for the customers and made ease with their banking with highest satisfaction.
4. Broaden the area of customers’ perception as well as increase the market with more
customers. 5. The banks can create or spread their market with advanced information system and therefore, creates competitions between them while improving the customer service to a great extent.
STATEMENT OF THE PROBLEM In this research work the analysis of the differences of perceptions between the bank customers those using the Internet banking and those are not using the Internet banking was done and it has been shown the risk perceptions in financial, psychological, security issues in the customers those are not adapted with the internet was more than those of the customers using the Internet banking.
DATA ANALYSIS AND INTERPRETATION Q1) Age group 18 – 25 26 – 35 36 – 45 46 – 60 61+ Access Internet 27.00 51.00 20.00 8.00 1.00 Do not access Internet 3.00 1.00 2.00 4.00 3.00
Table 1 From the table we can summarize the information below: 1. In 18 – 25 age group 27% access internet, 3% do not 2. In 26 – 35 age group 51% access internet, 1% do not
3. In 36 – 45 age group 20% access internet, 2% do not
4. In 46 – 60 age group 8% access internet, 4% do not 5. In 61+ age group 1% access internet, 3% do not So it is seen that the age group of 26 – 35 own maximum percentages of internet.
Q2) Internet using time A) 0 to 01 month B) 01 to 06 months C) 03 to 12 months D) More than a year
Age group 18 – 25 26 – 35 36 – 45 46 – 60 61+ 3 0 0 0 1
0 – 01 month 2 0 3 2 3
01 – 06 months 12 15 0 8 0
03 – 12 months
Table 2 The above interpretation expresses that the younger age group were using the internet service since the last one year where the age group between the 36 – 45, 46 – 60 and 61+ started the internet uses recently. So we can see that the age group of 26 – 35 is the highest user of internet.
Q3) 3) Branch visiting frequency a) Less than 1 b) 1 to 3 times c) 3 to 8 times d) 8 to 12 times e) over 12 times Age group 18 – 25 26 – 35 36 – 45 46 – 60 61+ Less than 1 11 4 2 4 5 1 – 3 times 14 1 3 8 0 3 – 8 times 10 3 2 2 0 8 – 12 times 3 8 4 2 0 Over 12 times 2 26 5 1 1
Table 3 The above chart gives us the comparative information between the different age groups of who visit the Internet banking and the maximum number of 12 times in a month is seen in the age group of 26 – 35. Q4) Main reason for visiting the bank. Select one. to make a deposit to get advice to pay bills to withdraw cash other
Age group 18 – 25 26 – 35 36 – 45 46 – 60 61+
To deposit 10 10 3 4 1
Getting Advice 8 4 0 4 0
Inquire Balance 13 7 4 5 2
Withdrawal of Cash 7 17 7 4 3
Other 2 4 2 0 0
Table 4 The general usage of bank within the customers is mainly is to deposit or withdraw the cash from the bank. The same has seen in the research work was that mostly the customers visit the bank is mainly for cash withdrawal and the it has seen the maximum number in the age group of 26 – 35 and it was 17 times in a month.
Q5) Facilities provided by the bank ATM
Online banking Telephone banking Mobile banking SMS banking
Age group 18 – 25 26 – 35 36 – 45 46 – 60 61+
ATM 20 10 2 14 5
Online Banking 21 29 16 25 2
Telephone Banking 12 14 2 2 2
Mobile Banking 15 18 15 2 2
SMS Banking 25 30 12 14 5
The above study details that the most age group user expressed their opinion that they are favoured by almost all the facilities provided by the banks they are belongs to except the age group of 61 +.
Q6) Banking services used by the client from the offering by the Bank. • • • • • • • • Information of the products and rates. Calculation of loan information. Loan applications. Download statements. Balance checking. Application for the credit loan. Balance transfers. Payment of bills.
Others ATM 20 10 2 14 5 Online Banking 21 29 16 25 2 Telephone Banking 12 14 2 2 2 Mobile Banking 15 18 15 2 2 SMS Banking 25 30 12 14 5
Age group 18 – 25 26 – 35 36 – 45 46 – 60 61+
Table 5 The chart shows the differences between the customers according to their using of banking services. Mostly the user’s use internet bank offers mainly for information of the products and rates, second one or the balance checking, the third category use the internet banking to online balance checking and final category use online banking for the transaction. Q7) Most important reason for internet banking. • • • • Traditional bank with the same bank. For the brand name. Better services of the bank. Others
Table 7 There are a number of reasons of the customer in their preference of Interenet banking in a bank. But the survey study has found that the principle casuse is for the better services of the bank and next reason is the Brand name.
There were 120 participants and their perception was classified in 6 brands and in 9 attributes. There were 63 columns and the rows were 120 in th SPSS to analyse the data and 6X10 matrix form were used. The MDS output were given below,
Ctiteria Accessibility Accounts Banks service Convenienc e Design Encouragem ent Location HR Friendly
Lloyds TSB 2.8800 2.9571 4.2457 2.8011 3.2144 2.6709 3.2678 2.1754 3.8962
HSBC 3.4197 3.5358 3.6936 3.5356 3.8124 3.2719 3.2547 3.2719 2.7078
Natwest 3.4760 3.5505 3.5486 3.8208 3.5505 3.5358 3.1202 3.7132 3.3454
Barclays 3.2719 3.2352 3.9690 2.8011 3.0202 2.8798 2.9607 2.6349 2.6328
Santand er 3.4150 3.3918 4.0795 3.4536 3.1207 3.4152 2.8405 3.3309 3.4150
Cooperati ve 2.8455 2.8482 2.7583 2.7643 2.7592 2.7763 2.3901 2.4648 2.9301
The R- square and the stress should have to be measures. So the R-square will indicate the fit and the stress values will represent the badness of the fit. So the higher value of R-square and the value in lower scale of the Stress will be expected. We have found the values as under: Stress = 0.01827 RSQ = 0.98758
The configuration has derived in the 2 dimensions
In this model we can see that the Lloyds bank is in the leading position in 2 dimensions but there is competition between the Santander and HSBC. The least is seen in Cooperative. Barclays bank is close to the positive response but it has to work in some of its areas to get an improvement.