You are on page 1of 36

LETTER OF TRANSMITTAL

28th August, 2016


Shibli Rubayat Ul Islam

Professor

Department of Banking & Insurance

University of Dhaka

Subject: Submission of the Thesis Paper.

Sir,

It gives me immense pleasure to submit my report on Analysis of Customer Satisfaction on


Online Banking: A Case Study of One Bank Limited which was assigned to me as a
fulfillment of the course Masters of Business Administration.

While making this report I come across many hurdles and pleasant experience. But valuable
experiences I have gained during the period will undoubtedly benefit me in the years ahead. This
report attempts to find out the level of customer satisfaction of One Bank Limited in case of
online banking services. Despite the several constraints, I gave my all efforts to make this report
a meaning one.

I have tried sincerely to comprehend and translate my knowledge in writing this report. My effort
will be rewarded only if it adds value to the research literature. I enjoyed this project work and
gladly attend any of you calls to clarify on my point, if necessary.

Your Sincerely

Osman Iqbal

ID# 775

Department of Banking & Insurance

University of Dhaka

1|Page
SUPERVISORS CERTIFICATE

This is to certify that the Thesis Report on Analysis of Customer Satisfaction on Online
Banking: A Case Study of One Bank Limited in the bona fide record at the report is done by
Osman Iqbal, ID# 775, as a partial fulfillment of the requirement of Masters of Business
Administration (MBA) degree from the Department of Banking and Insurance, University of
Dhaka.

The Report has been prepared under my guidance and is a record of the bona fide work carried
out successfully.

Shibli Rubayat Ul Islam

Professor

Department of Banking and Insurance

2|Page
DECLARATION

I do hereby solemnly declare that the work presented in this Thesis report has been carried
out by me and has not been previously submitted to any other
University/College/Organization for an academic qualification/certificate/diploma or degree.

The work I have presented does not breach any existing copyright and no portion of this report
is copied from any work done earlier for a degree or otherwise.

I further undertake to indemnify the Department against any loss or damage arising from
breach of the foregoing obligations.

........................................
Osman Iqbal

ID# 775
Department of Banking & Insurance

University of Dhaka

3|Page
ACKNOWLEDGEMENT

At the very beginning I would like to express my deepest gratitude to the almighty ALLAH for
giving me the strength and the composure to finish the task within the scheduled time.

I would like to pay my gratitude to our course instructor Shibli Rubayat Ul Islam, Professor,
Department of Banking & Insurance, University of Dhaka, who has assigned me this task and
instructed in the right way and given me proper guidelines for preparing this report.

I am indebted to all the customers of One Bank Limited from whose I have collected data for
the survey. I am also grateful to officers One Bank Limited who helped me to do my
internship. I also like to thank all officers of One Bank Limited for giving me suggestions and
facilitating my thesis report.

I am grateful to my beloved Parents, friends and well-wishers for their inspiration that lead me to
go ahead.

Finally, I thank all the persons who have directly or indirectly contributed in preparing this
report.

This Report is not free from limitation. There might still be some minor mistakes including
typing errors despite utmost care, we apologize for these.

Osman Iqbal

------------------

4|Page
EXECUTIVE SUMMARY

In the most recent years banking industry has gone through a massive transformation.
Information technology has been used extensively in this regard to maintain pace in this
transformation. The concept of physical banking gradually is going to be obsolete now. Physical
banking is going to be replaced by internet banking very soon. This trend of transformation also
touched Bangladesh like any other developing countries. E-Banking or internet banking is
recognized as a concept through which almost all of physical banking activities can be done in
our country. Besides internet banking is more convenient than physical banking because internet
banking never closes, anyone can enjoy banking services anytime from anywhere. In this thesis
report I am supposed to find out the level of customer satisfaction regards to online banking
services. To prepare this report I have chosen One Bank Limited. Five branches from different
location in Dhaka City has been visited. Almost 50 customers are surveyed. While preparing this
report I have found another dreadful aspect of the online services in our banking industry. Which
is that exposure of online banking services is regretful. Peoples are not willing to be involve in
online banking services. Though everyone believes that online banking reduces transaction cost,
time exposure but they do not feel secured to transact in online banking services. The main
reason can be mentioned as lack of trust, insufficient infrastructure facilities, technological
backwardness, fear of using technology. Finally I was intended for finding out the level of
customer satisfaction in case of online banking competing in private commercial banking sector.
For simplicity I have chosen, One Bank Limited to collect my data. The findings of my report
after conducting a thorough research, though online banking services of One Bank Limited, is
quite good and satisfactory but customers were not aware and willing to take this services. But
level of satisfaction are greater for some parameters and less for some parameters. Likewise,
customers are satisfied with security and user friendliness of the website of the banks, and
somewhat neutral in perception with update frequency. It is obvious from the evidence that
almost all the respondents were educated, but many of them provided neutral feedback as they
do not use online banking services or are indifferent to this services.

5|Page
Table of Contents
Executive Summary.........................................................................................................................v

Chapter- 01: Introduction of the Report..........................................................................................1

1.1 Introduction:..........................................................................................................................1

1.2 Background of the Study:......................................................................................................1

1.3 Problem Statement:................................................................................................................1

1.5 Objective of the Study:..........................................................................................................2

1.6 Methodology of the Report:...................................................................................................2

1.6.1 Research Type:................................................................................................................2

1.6.2 Types of Data:.................................................................................................................2

1.6.3 Questionnaire & Survey:................................................................................................2

1.7 Limitation of the Report:.......................................................................................................3

Chapter- 02: Review of Literature...................................................................................................4

Chapter- 03: Company Overview....................................................................................................7

3.1 History & Establishment:......................................................................................................7

3.2 Vision & Mission Statement of the Bank:.............................................................................8

3.3 Online Banking Services of One Bank Limited.................................................................8

3.4 E-Banking Functions of One Bank Limited:.....................................................................9

3.4.1 Internet Banking:............................................................................................................9

3.4.2 Transaction Activities through Internet Banking:...........................................................9

3.4.3 Account Summary, Details, activity and statement:.....................................................10

3.4.4 Loan Details, Activity, Schedule and Repayment Inquiry:...........................................10

3.4.5 Term Deposit Details and Activities:............................................................................10

3.4.6 Fund Transfer within own account or others account:..................................................10

3.4.7 View Standing Instruction.............................................................................................11


3.4.8 Cheque Book services:..................................................................................................11

3.4.9 Others Customer Services:............................................................................................11

Chapter- 04: Analysis of Customer Satisfaction in Online Banking.............................................12

4.1 Parameters:..........................................................................................................................12

4.2 Demographic Variation:.......................................................................................................12

4.3 Age variation:.......................................................................................................................13

4.4 Variation of Profession:.......................................................................................................13

4.5 Variation in Gender:.............................................................................................................14

4.6 Analysis of Parameters:.......................................................................................................14

4.6.1 Security:........................................................................................................................14

4.6.2 User friendliness:..........................................................................................................16

4.6.3 Update Frequency:........................................................................................................17

4.6.4 Overall Satisfaction:.....................................................................................................19

4.7 Total Responses:..................................................................................................................20

Chapter- 05: Findings & Conclusion.............................................................................................22

5.1 Findings:..............................................................................................................................22

5.2 Conclusion:..........................................................................................................................22

Bibliography..................................................................................................................................24

Annexure- A: Survey Questionnaire.................................................................................................i

Annexure-B: Percentages of Responses..........................................................................................ii


CHAPTER- 01: INTRODUCTION OF THE REPORT

1.1 INTRODUCTION:
In the most recent years banking industry has gone through a massive transformation.
Information technology has been used extensively in this regard to maintain pace in this
transformation. The concept of physical banking gradually is going to be obsolete now. Physical
banking is going to be replaced by internet banking very soon. This trend of transformation also
touched Bangladesh like any other developing countries. E-Banking or internet banking is
recognized as a concept through which almost all of physical banking activities can be done in
our country. Besides internet banking is more convenient than physical banking because internet
banking never closes, anyone can enjoy banking services anytime from anywhere. For this
reason internet banking has become an important measurement tools to attract larger customer
base. Consequently it is now considered as a tool to measure customer satisfaction. In this thesis
report I am supposed to find out the level of customer satisfaction regards to online banking
services. To prepare this report I have chosen One Bank Limited. Five branches from different
location in Dhaka City has been visited. Almost 50 customers are surveyed. Their response has
been collected to gloss over the scenario of online banking system. Finally different analytical
tools like statistical tools SPSS will be used to analyze the data and to make a comment about the
level of customer satisfaction in case of Internet Banking Services. For this purpose a
questionnaire has been prepared using Likert Scale Method.

1.2 BACKGROUND OF THE STUDY:


This thesis paper will be prepared as a part of MBA program and under the close supervision of
my academic supervisor. The supervisor will monitor my work progress and guide me to make
this paper a compressive one. The supervisor will give me director time to time and advices me
to rectify error if happened. This thesis paper will be prepared to find out effectiveness of online
banking services to grow customer satisfaction. In this regard One Bank Limited has been
chosen to collect data. Required data are collected from primary sources like conducting survey
and also from secondary sources like journals, articles and annual report of the company.

1|Page
1.3 PROBLEM STATEMENT:
Customer satisfaction can simply be defined as the ability of a company to meet the business,
psychological and mental needs of a customer. This theory is true for tangible services which are
known as products and also for services or intangible services. But due to having different
choosing options, customer can easily select suitable products and services from the market. So it
is essential for a bank to keep its customer satisfied to attract larger customer base. So in this
report, I am trying to find the parameters to determine the level of customer satisfaction and to
assess whether customer of One Bank Limited are satisfied to its online banking services or
not.

1.5 OBJECTIVE OF THE STUDY:


Principal objective of preparing this paper is to find out the level of customer satisfaction of
One Bank Limited in regards to online banking services. To prepare this report, I have
conducted physical survey in five different branches of the bank. I have reached 10 customers of
each branches in this regard. Besides I will try to cover following objectives throughout the
whole report.

Knowing the concept of customer satisfaction in the light of online banking services.
Knowing about various online banking services provided by the private commercial bank
of Bangladesh.
Knowing the prospect and problem of online banking in Bangladesh.
Finding out the level of customer satisfaction in regards of online banking services of
One Bank Limited.

1.6 METHODOLOGY OF THE REPORT:


1.6.1 Research Type:
This research is descriptive in nature which might involve quantitative analysis to some extent.

1.6.2 Types of Data:


To conduct this research I have collected data from primary sources. Due to the nature of this
research primary data will be befitting to use. To some extent I will use secondary data to present
theoretical discussion and company information like annual report, journal, official website etc.

2|Page
1.6.3 Questionnaire & Survey:
I will measure the satisfaction level of the customer from four perspective; security, user friendly
ness, update frequency and overall online banking system. I have prepared my questionnaire
using Likert Scale Method. Response will be collected in 5 point scale from Strongly Agree to
Strongly Disagree. Highest weight will be given for Strongly Agree and lowest weight will be
given for Strongly Disagree. Sample size for my research is fifty (50). I have collected response
of 50 customer from five different branch location within the Dhaka City. Response was
collected from students, businessmen, services holders, lawyer, housewives and also from
teacher.

1.7 LIMITATION OF THE REPORT:


No research is flawless and not beyond the error. My research is not different from that. Main
limitation for my report was that the unwillingness of the respondents. I have to struggle to
collect response from them. Some of them felt unsecured to provide their information to me.
Time constraints was also another limitation for my report. Time provided to prepare this report
was not sufficient enough but with the help of the guideline provided my instructor, I have
prepared my report within the time frame. But overall this report is beyond the flaw.

3|Page
CHAPTER- 02: REVIEW OF LITERATURE

Online Banking is a system allowing individuals to perform banking activities at home, through
the internet or Web banking. Online banking is also known as Internet banking. A few online
banks are conventional banks which also offer online banking, whereas others are online only
and have no physical presence. Online banking through conventional banks allow customers to
perform all routine transactions, such as account transfers, balance inquiries, , and stop-payment
requests, and some even offer online loan and credit card applications bill payments. Account
information can be accessed anytime, day or night, and can be done from anywhere, any time as
the wishes of the customers. Once information has been entered, it doesnt need to be re-entered
for similar subsequent checks, and future payments can be scheduled to occur automatically.
Most of them are allow for file transfer between their program and popular accounting software
packages, to simplify record keeping. In spite of the advantages, there are a few drawbacks. It
does take some time to set up and get used to online accounts. As well, a few banks only offer
online banking in a limited area. In addition, when an account holder pays online, he/she may
have to put in a check request as much as two weeks before the payment is due, but the bank
may withdraw the money from the account the day that request is received, meaning the person
has lost up to two weeks of interest on that payment.

(Pikkarainen, Karjaluoto, and Pahnila 2004) define Internet banking as an Internet portal,
through which customers can use different kinds of banking services ranging from bill payment
to making investments. With the exception of cash withdrawals, Internet banking gives
customers access to almost any type of banking transactions at the click of a mouse. The use of
the Internet as a new alternative channel for the distribution of financial services has become a
competitive necessity instead of just a way to achieve competitive advantage with the advent of
globalization and fierce competition (Flavin, Torres, & Guinalu, 2004; Gan, Clemes).

(Rueangthanakiet Pairot, 2008) defined Customers satisfaction as the company's ability to


fulfill the business, emotional, and psychological needs of its customers. However, customers
have different levels of satisfaction as they have different attitudes and experiences as perceived
from the company. Customers satisfaction is affected by the importance placed by the customers

4|Page
on each of the attitudes of the product/service. Customer satisfaction measurement allows an
organization to understand the key drivers that create satisfaction or dissatisfaction; and what is
really driving their satisfaction during a service experience.

Online banking is the fastest growing service that banks can offer in order to gain and retain
new Customers (Moody, 2002). The rise of Internet Banking is also due to its number of
benefits for both the provider and the customer as well. From the banks perspective these are
mainly related to cost savings (Sathye, 1999; Robinson, 2000) and Internet Banking remains
one of the cheapest and more efficient delivery channels (Pikkarainenet al., 2004).
Arunachalam and Sivasubramanian (2007) content that Internet banking is where customer
can access his or her bank account via the Internet using PC or mobile phone and web browser.
Ongkasuwan and Tantichattanon (2002) defined Internet banking service as banking
service that allows customers to access and perform financial transactions on their bank
accounts from their Computers with Internet connection.

Kim et al. (2006) predicted that 87% of community banks would offer Internet banking in 2003
to meet consumers needs, and asserted that, Internet banking has advantages for banks to
maintain competition, to save costs, to enhance mass customization, marketing and
communication activities, and to maintain and attract consumers. On-line, real time banking
services have now become a birth right of the customer as the customer demands the flexibility
of operating an account in any branch of a bank irrespective of which branch the account was
domiciled (Bank Away, 2001).

E-service quality can be explained as an overall customer evaluation about e-service delivery in
the marketplace which is virtual Santos, J. (2003). The concept of Customer or User
Satisfaction as a key performance indicator within the businesses has been in use since the
early 1980s (Bailey & Pearson 1983; Ives, Olson, & Baroudi 1983). Similarly, the end user
computing satisfactions have been studied since the 1980 (Bailey & Pearson 1983; Chin, Diehl,
& Norman 1988; Ives et al., 1983; Rivard & Huff 1988). The user satisfaction can be seen as
the sum of the users feeling and attitudes toward several factors that affect the usage situation
(Bailey et al., 1983).

Various research studies on consumer attitude and adoption of internet banking have shown that
there are several factors influencing the consumers attitude towards online banking such as

5|Page
persons demography, motivation and behavior towards different banking technologies and
individual acceptance of new technology. It has been found that consumers attitudes toward
online banking are influenced by the prior experience of computer and new technology (Laforet
and Li 2005). As far as online banking adoption is concerned, security, trust and privacy
concerns have been outlined as extremely important ones from the consumers standpoint
(Benamati and Serva 2007). Online banking requires perhaps the most consumer involvement,
as it requires the consumer to maintain and regularly interact with additional technology (a
computer and an Internet connection) (Jane et al, 2004). Consumers who use e-banking use it on
an ongoing basis and need to acquire a certain comfort level with the technology to keep using it
(Servon, and Kaestner 2008).

(Shampa and Hasan, 2015) conducted research to explore the level of customer satisfaction in
Islamic banks of Bangladesh. They concluded that Islamic Banks in Bangladesh should address
three issues to improve customer satisfaction level; they should update their website regularly,
improve network of ATM location and also introduce hassle free debit card system. They claimed
that quality of services is one of the major determinants of customer satisfaction. To determine
customer satisfaction they fixed six parameters as a measurement tool, online banking services
was one of them.

6|Page
CHAPTER- 03: COMPANY OVERVIEW

Before moving to actual data analysis chapter of this report, it will be helpful to know a little bit
about the company data of which I am going to present in this report.

3.1 HISTORY & ESTABLISHMENT:


With the dream of becoming number one bank in Bangladesh, One Bank Limited has been
started its journey in Bangladeshi banking market in July, 1999. The bank is commenced as a
private commercial bank. Main objectives of this bank was to create efficiency, transparency,
precision and motivation and create a brand image as One through these qualities. The name
was chosen by the directors as if the name will create such a value to the hearts of the mass
people.

One Bank Limited


Incorporation of the Company 12th May, 1999
Name of the Company One Bank Limited
Nature of the Company Private Limited Company
Authorized Capital 10,000.00 Million
Paid Up Capital 5899.00 Million
Equity Capital 11,579.00 Million
Deposit 1,31,252.00 Million
Investment 22,900.00 Million
Number of Branches 85 branches throughout the country.
Number of Employees 1976
Table 1: Corporate Informaiton

One Bank is the first third generation bank in Bangladesh. The banks main business
concentration is both working capital financing and long term financing. In industrial sector, the
bank mainly concentrated its business in RMG and textile industry. As the vulnerability of RMG
sector, the bank moved its business to non-funded sector substantially. To bring the small
businessman under the fold of banking business, the bank has taken initiatives to increase its
exposure in SME sector. The bank is not lagging behind in respect of technological

7|Page
advancement. To facilitate real time online banking facilities, the bank introduced VISA card,
Debit Card, ATM facilities, E-banking and mobile banking facilities etc.

3.2 VISION & MISSION STATEMENT OF THE BANK:


Company Vision
To establish ONE Bank Limited as a Role Model in the Banking Sector of
Bangladesh.
To meet the needs of the Customers, Provide fulfillment for the People and create
Shareholder Value.
Company Mission
To constantly seek ways to better serve the Customers.
Be pro-active in fulfilling Social Responsibilities.
To review all business lines regularly and develop the Best Practices in the industry.
Creating a supportive work environment and enabling the Employees to perform to the
very best of their abilities.
Table 2: Vision & Mission: One Bank Limited

This bank has made its mark in protecting environment. The bank has set its significant budget
aside to maintain corporate social responsibilities. The bank called this activities as Green
Banking. Some of the notable green banking initiatives of this banks are:

Initiating In-house Environment Management.


Training & Environment friendly activities for employees to make them environmentally
concerned.
Adherence to Environmental Risk Management guidelines.
Introduction of green banking products & services.
Financing green projects.
Building awareness & providing support to customers to be more environmentally
responsible.
Supporting the environment friendly initiatives as a part of CSR activities.
Forming alliance with NGOs or other environment focused organizations for our green
banking activities.

3.3 ONLINE BANKING SERVICES OF ONE BANK LIMITED.


One Bank Limited has designed its website such a way so that it can provide banking services
easily to its customer. For this purpose the bank has designed its own application. When someone
wants to get online banking services, he can easily reach that services by simply clicking on
home page. Customers need to insert User ID and Password to get access. But all the

8|Page
customers can not enjoy this online facilities. Customers can enjoy this services only by applying
while opening a bank account with bank.

Figure 1: E-Banking Log-In Page

Customers can also take this advantage later time by submitting an application to bank manager.

3.4 E-BANKING FUNCTIONS OF ONE BANK LIMITED:


Through logging in to the website one can enjoy various services. Those are:

3.4.1 Internet Banking:


Internet banking gives the customer access to personal and corporate accounts online anytime,
anywhere. This services provides the perfect way to do banking whether from home, the office or
when travelling because the service is available 24 hours a day, 7 days a week.

3.4.2 Transaction Activities through Internet Banking:


One can view Transaction Activity like Initiated Transactions, View Transactions, View
Drafts/Templates and Transactions to authorize etc. The customer can get information of all self-
initiated transactions along with the current status of the transactions & number of transaction
count for each type with specific status.

3.4.3 Account Summary, Details, activity and statement:


The customer can view a consolidated method of viewing all the accounts details such as the
account number, the description of the account, the base currency of the account etc and its
9|Page
balances in one place. Customers can also view and download the account Statement, activity
details for any CASA account under the customer IDs mapped. Users can get the transaction
details based on different transaction dates, by specifying the amount range and sorting on the
transaction date, value date and the amount.

3.4.4 Loan Details, Activity, Schedule and Repayment Inquiry:


The customers can view loan details, loan transaction activity, repayments done, repayment
schedule and the available loan interest rates for various loan products. The Loan module also
includes transactions for calculation of Loan amount and calculation of mortgage amount that
one can avail.

3.4.5 Term Deposit Details and Activities:


Term deposit account details; you will get basic details of the deposit account like maturity date,
maturity amount can be viewed through this service. One can also view and download the
account activity for any term deposit account under the customer IDs mapped. TD activity details
for a given period, i.e., current period, previous period, or specified period can also be viewed.

3.4.6 Fund Transfer within own account or others account:


Own Account Transfer

Using the Own Account Transfer, one can initiate funds transfer between any of their accounts,
i.e. the accounts that are under the customer IDs mapped to them. The payment can be processed
immediately, or on a specific future date, or one can set recurring instructions with the bank.

Internal Account Transfer

Using the Internal Transfer, one can transfer funds within ONE Bank, i.e. transfer funds to any
accounts of ONE Bank. The payment can be processed immediately or on a specific future date,
or can set recurring instructions with the bank.

Multiple Internal Transfer

Using the multiple internal transfers, customers can transfer money from one account to as many
as five different accounts. In addition individuals can transfer money from different accounts to a
single or multiple accounts as per the instructions.

10 | P a g e
3.4.7 View Standing Instruction
One can instruct the bank to transfer funds between your current and savings accounts
periodically by setting up a standing instruction (SI) through our Internet Banking. Customers
can also view and cancel the standing instruction.

3.4.8 Cheque Book services:


Cheque Status Inquiry

One can view the status of cheques if the Cheque is a valid cheque for the selected account.
Customers can search for paid cheques, stopped cheques, paid cheques for a given period and for
a given cheque range.

Stop Cheque Request

Customers can block a particular cheque and also can block a set or batch of a cheque by
entering the cheque range.

3.4.9 Others Customer Services:


Foreign Exchange Rate Inquiry

Customers can view the latest Exchange Rate for various currencies offered for buying and
selling by the ONE Bank.

Session Summary

One can view the entire session summary of the previous five log sessions, and transactions
carried out in each session along with the transactions status and time.

Change password

During first time login, system will force to change the initial login password which will provide
by ONE Bank and will allow the customers to set a password as per the wish of customer
according to the Bank password policies. The customer will have facility to change the password
later at any time according to the Bank password policies.

11 | P a g e
CHAPTER- 04: ANALYSIS OF CUSTOMER SATISFACTION IN ONLINE
BANKING

I have chosen One Bank Limited as my database to present an analysis of customer


satisfaction. I have visited five different branches around the Dhaka city and collected 50
responses.

4.1 PARAMETERS:
To estimate the level of satisfaction of customers I have set four questions. Customers
respondents of these questions will be used to analyze their level of satisfactions. Response of
the customers has been measured along five points Likert scales.

Parameters Questions
Security The online banking service seems to be secured.
User-
Web site of the bank is user friendly.
friendliness
Update
Web site of the bank is modern and updated regularly.
frequency
Overall
I am satisfied with the banks overall online banking services
satisfaction
Table 3: Parameters & Questionnaire

Responses of every questions varied with five point scale, and proper weight has been provided
for each responses. Such as:

Strongly Agree = 5 Disagree = 2

Agree = 4 Strongly Disagree = 1

Neutral = 3

4.2 DEMOGRAPHIC VARIATION:


All respondents I have reached can be classified from the perspective of age, profession and sex.
A short description of this taxonomy will be discussed here.

4.3 AGE VARIATION:


I have designed to reach peoples of five categories of age. But I found responded of only four
age groups among them.

12 | P a g e
Age Variataion
41-50 31-40 18-30 51-60

12.00%

14.00%
40.00%

34.00%

Figure 2: Variation in Age

From this graph we can see that 40% of my respondent is from the age group 41-50, the second
highest age group 31-40 is 34% and rest of the two age groups possess almost similar
percentages like 14% and 12%.

4.4 VARIATION OF PROFESSION:


I have reached students, government and private services holder, businessman, teacher and
banker.

Variation in Profession
Entrepreneur; 6.00%

Servi ce Hol der Bus i nes s man;


(Pvt/Govt); 28.00% 38.00%

Teacher; 8.00%
Banker; 8.00%
Student; 12.00%

Bus i nes s man Banker Student


Teacher Servi ce Hol der (Pvt/Govt) Entrepreneur
F
igure 3: Variation in Profession

13 | P a g e
From the above chart we see that most of my respondents was business man which is almost
38% and the second highest is private and government services holder which is 28%. This
demographic condition must exert influence over the response of my questions.

4.5 VARIATION IN GENDER:


Almost all of my respondents was male and only one respondent was female.

4.6 ANALYSIS OF PARAMETERS:


In this section of the report, I just start to present the analysis of my selected parameters. Recall I
will analyze customer satisfaction based on four parameters, those are: Security, User-
friendliness, Update frequency and Overall satisfaction.

4.6.1 Security:
To measure the satisfaction level of customer in case of security I have asked the customer
whether customer thinks that online banking customer is secured or not. Customer differed in
their answer due to their age and profession variation. Graphical representation of this nature of
variation will be presented here.

Age-wise
70.00%

60.00%

50.00%

40.00%

30.00%

20.00%

10.00%

0.00%
51-60 41-50 31-40 18-30
N A SA

Figure 4: Response: Security according to Age

From this above chart we can see the customer response in security question from their age
group perspective. We see that, response rate varies less for the age group 18-30, because they

14 | P a g e
are most likely user of the online banking. For all the age group, on an average customers agree
with security concern. They think that online facilities are up to mark. Most stable result are
found for the age group of 41-50, because most businessman, service holders remain in this
group. Usually such people become up to date about information technology.

Profession-wise
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
r t r t) ur
an ke en he ov e
m n d ac
ss Ba tu t/
G en
e S Te Pv pr
in ( tre
s er En
Bu d
H ol
ce
vi
S er

N A SA

Figure 5: Response: Security according to Profession

Besides the category from age viewpoint, we can observe the response from the profession of
customer perspective. The rate of being agree with bank in security concern is higher for
Bankers, because they know the pros and cons of banking security due to their nature of
profession. Doctors and Lawyer are kept into entrepreneur category, entrepreneur are also
showed positive response. Since they only want to deal with bank, when they get the surety form
the bank. Finally on an average all the result rotate around Agree and Strongly Agree. The
rate of providing Neutral answer is higher in businessman group. Because a significant portion
of the survey has been conducted in old Dhaka, and people are less educated in old Dhaka
comparatively. They tends to ignore concerning about online banking services.

4.6.2 User friendliness:


To measure the customer viewpoint about the user friendliness of the company website I have
asked the customer to tell me their thought whether bank website is user friendly or not. For
some of the customers, I had to explain the question elaborately.

15 | P a g e
User-friendliness (Age wise)
0.8
71%
0.7 65%
0.6
50%
0.5

0.4 35% 35%


33%
30%
0.3

0.2 17% 18% 18%


14% 14%
0.1

0
51-60 41-50 31-40 18-30
N A SA

Figure 6: Response: User friendliness according to Age

From this above chart, we can get a clear cut view about how response varies with the change of
customers age. We can see that, age group of (31-40) and (18-30), are the people who agreed
mostly on the question of instructiveness of the website. Because peoples of in these age group
are the students and private or government services holder. They are most aware about this
services and are willing to provide responses. Consequently they have given less responses on
Neutral and Strongly Agree, because they are not willing to go on extreme.

16 | P a g e
User-Friendliness (Profession wise)
80.00%
70.00%
60.00%
50.00%
40.00%
30.00%
20.00%
10.00%
0.00%
r t r t) r
an ke en he ov eu
m n d ac
ss Ba tu t/
G en
e S Te Pv pr
in ( tre
s er En
Bu d
H ol
ce
vi
S er

N A SA
F
igure 7: Response: User friendliness according to Profession

For all the profession group the response Agree possess the most frequent feedback. From this
picture we can roughly say that all that on an average customers are satisfied to instructiveness of
the website of the bank. On the other hand, profession group teacher and entrepreneur did not put
their feedback on Neutral, because these people are most educated from all age group. They
are willing to use online services and are most active user of online. Second highest can be found
in the profession group of Banker

4.6.3 Update Frequency:


To measure the customer satisfaction in case of information availability in website I have asked
the customer whether they get all the latest information about accounts or banks in the website or
not. Response of the customer differed depending on the usage of online banking services.

17 | P a g e
Update Frequency (age-wise)
80%
71%
70%
60%
60%
50% 50%
50% 47% 47%

40%
30% 29%
30%
20%
10%
10% 6%
0%
51-60 0% 41-50 31-40 18-30 0%
N A SA
F
igure 8: Response: Update frequency according to Age

Like any other earlier parameters, customers avoided to provide their answer on extreme point of
scale Strongly Agree. For the age group of 41-50, the response of Neutral has got the
highest percentages. The reason for this, these peoples are less willing to use online banking and
thus they provide neutral response. This implies they are not concern about this aspect. But the
noticeable fact is that not all the peoples who do not use online services but some of the people
are included here who really do not have any conclusive opinion about this parameter.

Update Frequency (Profession-wise)


120.00%
100% 100%
100.00%
80.00% 74% 67%
50% 57%
60.00%
33% 36%
40.00% 21% 25%25%
20.00% 5% 7%
0.00%
r t 0% 0% e r 0% t) 0%r 0%
an ke en h ov eu
m n d ac
ss Ba tu t/
G en
e S Te
Pv pr
in ( tre
s er En
Bu d
H ol
c e
vi
S er

N A SA
F
igure 9:: Response: Update frequency according to Profession

18 | P a g e
Like the earlier parameters, here teachers, bankers, students and services holders are the most
active and conscious in this regards. Their consciousness reflects upon their responses. These age
group had the most consistent response. On the other hand business man residing in Old Dhaka
are less concern in this matter.

4.6.4 Overall Satisfaction:


Under this parameter I want to find out whether customers are satisfied considering all the online
banking parameters on an average. For this, I have asked them whether they are satisfied in the
overall online banking services or not.

Overall Online Banking (Age-wise)


80.00%
70.00% 67%

60.00% 55% 57%


53%
50.00%
43%
40%
40.00% 33% 35%
30.00%
20.00%
12%
10.00% 5%
0.00%
51-60 0% 41-50 31-40 18-30 0%
N A SA
F
igure 10: Response: Overall online banking according to Age

For the overall online banking services almost all the age group kept their feedback around agree
and strongly agree. The rate of providing Neutral feedback is lowest to age group of 51-60 and
highest to age group of 41-50.

19 | P a g e
Overall Internet Banking (Profession Wise)
Entrepreneur

Service Holder (Pvt/Govt)

Teacher

Student

Banker

Bus ines s man

0.00% 10.00% 20.00% 30.00% 40.00% 50.00% 60.00% 70.00% 80.00%


N A SA

Figure 11: Response: Overall internet banking according to Profession

For overall online banking services, teachers are the mostly satisfied because this profession
provided agree response highest. On the other hand, entrepreneurs were less responsive in this
regard.

4.7 TOTAL RESPONSES:


In this section of this report, I am willing to present the overall response of the customer of all
the questions. For this, it will help us have a clear cut view of the overall satisfaction of the
customers.

Parameters Total
Update Overall
Security User Friendliness
Frequency Satisfaction
Responses

Neutral 34% 32.69% 52% 49.01% 41.87%


Agree 44% 50% 42% 45.09% 45.32%
Strongl
22% 17.31% 6% 5.90% 12.81%
y Agree
Total 100%
Table 4: Summary of the Responses

From this table we can get a birds eye view about the overall satisfaction level of the customers.
We can see that, from all the feedbacks Agree got the higher percentages. Besides individually
the Security concern got highest percentages on Agree, user-friendliness got higher
percentages on Agree and rest of the two update frequency and overall satisfaction got higher

20 | P a g e
percentages on Neutral responses. So considering all of these individual and summed
perspective we can draw a conclusion that customers of One Bank limited on an average
satisfied with their online banking services. But this analysis also revealed some of the weakness
of One Bank Limited in regards of online banking services. In the new chapter it will be
discussed in brief.

21 | P a g e
CHAPTER- 05: FINDINGS & CONCLUSION

5.1 FINDINGS:
Throughout this thesis report, I have tried to find out the satisfaction level of the customer of
One Bank Limited. But while preparing this report I have found another dreadful aspect of the
online services in our banking industry. Which is that exposure of online banking services is
regretful. Peoples are not willing to be involve in online banking services. Though everyone
believes that online banking reduces transaction cost, time exposure but they do not feel secured
to transact in online banking services. The main reason can be mentioned as lack of trust,
insufficient infrastructure facilities, technological backwardness, fear of using technology. This
situation must be improved to increase customer base in banking sector.

Let us move on the main findings of the thesis paper. This paper is an endeavor to find the
customer satisfaction level in case of online banking system. If we want to draw conclusion
based on my analysis, we see that all the customer responses rotates around only Neutral,
Agree and with Strongly Agree. Among these three responses, I found that almost 60% of
the responses are in the region of Agree and Strongly Agree. This is a clear indication of a
satisfied customer. Besides, rest of the 40% of the responses went with Neutral feedback. We can
consider this along with positive response. Another proof for satisfied customer level is that, they
did not provide their answer to the scale of Disagree and Disagree even not a single one. So
to conclude we can say that online banking services of One Bank Limited is quite satisfactory
to its customer.

5.2 CONCLUSION:
With the widespread use of information technology, the nature of banking industry has been
changed radically. While people were used to visit bank, just for merely colleting bank statement
in past, today people can do this sophisticated banking transaction like fund transfer, checking
balance etc let alone this silly job. As the nature of banking has been changed, customer demand
has also been changed. For this reason, bankers changed their tools to attract customers. Banks
are now putting emphasized more and more on making banking services virtual. This report was
for finding out the level of customer satisfaction in case of online banking competing in private

22 | P a g e
commercial banking sector. For simplicity I have chosen, One Bank Limited to collect my
data. The findings of my report after conducting a thorough research, though online banking
services of One Bank Limited, is quite good and satisfactory but customers were not aware and
willing to take this services. But level of satisfaction are greater for some parameters and less for
some parameters. Likewise, customers are satisfied with security and user friendliness of the
website of the banks, and somewhat neutral in perception with update frequency. It is obvious
from the evidence that almost all the respondents were educated, but many of them provided
neutral feedback as they do not use online banking services or are indifferent to this services.

23 | P a g e
BIBLIOGRAPHY

A, Adeyemi, Olatoke., Ola, Olasunkamin. S, and Oyewole, Felicia. A. "Internet Banking


Functionality In Nigeria And Outcomes Of Customer Satisfaction: An Empirical
Investigation". IJARBSS 4.8 (2014): n. pag. Web.
"Access The World Banking Abstracts Online Database". World Banking Abstracts 27.1
(2010): i-i. Web.
Alam, Md. Mahtab and Dr. Umesh R Dangarwala. "Internet Banking Customer
Satisfaction And Online Banking Service Attributes". IJAR 1.6 (2011): 198-199. Web.
Al Nahian Riyadh, M., Akter, S. and Islam, N., 2009. The adoption of e-banking in
developing countries: A theoretical model for SMEs. International review of business
research papers, 5(6), pp.212-230.
Bakta, N.C., Sarder, M.M.R. and Reza, M.S., 2007. Online banking: Bangladesh
perspectives. In presentation at the XVI Biennial Conference.
Dr.Kathirvel. N, Dr.Kathirvel. N and Karpagavalli.K Karpagavalli.K. "Customer
Satisfaction With Internet Banking - An Analytical Study With Special Reference To The
Selected Customers In Tirupur District". GRA 3.1 (2012): 163-165. Web.
Gerson, Richard F. Measuring Customer Satisfaction. Menlo Park, Calif.: Crisp
Publications, 1993. Print.
Goswami, Dr. Shubham. "Measuring Customer Satisfaction On Webqual Dimension For
Online Banking: An Empirical Study". Paradigm 17.1-2 (2013): 25-36. Web.
Hallowell, R., 1996. The relationships of customer satisfaction, customer loyalty, and
profitability: an empirical study. International journal of service industry
management, 7(4), pp.27-42.
Hasan, Saidul, Azizul Baten, and Sanjida Parveen. "Adoption Of E-Banking In
Bangladesh: An Exploratory Study". African Journal of Business Management 4.13
(2010): n. pag. Web.
Khalaf Ahmad, Ala`Eddin Mohd and Hasan Ali Al-Zubi. "E-Banking Functionality
And Outcomes Of Customer Satisfaction: An Empirical Investigation". IJMS 3.1 (2011):
n. pag. Web.
Mawa, Jannatul. "E-Banking And Customers Satisfaction In Bangladesh: An
Analysis". International Review of Business Research Papers 6.4 (2010): n. pag. Print.

24 | P a g e
Ramadhan, M., 2011. Internet banking, consumer adoption and customer
satisfaction. African Journal of marketing management, 3(10), pp.261-269.
Shah Alam, S., Khatibi, A., Solucis Santhapparaj, A. and Talha, M., 2007. Development
and prospects of internet banking in Bangladesh.Competitiveness Review: An
International Business Journal, 17(1/2), pp.56-66.
Shompa, Farhana and Zahidul Hasan. "Customer Satisfaction Of Online Banking
Services: A Case Study On Islamic Banks In Bangladesh". Bangladesh Research
Journal 15.1 (2015): n. pag. Web. 27 Aug. 2016.
Siddiqi, K.O., 2011. Interrelations between service quality attributes, customer
satisfaction and customer loyalty in the retail banking sector in Bangladesh. International
Journal of Business and Management, 6(3), p.12.
Thomas, Richard K. Marketing Health Services. Chicago: Health Administration Press,
2005. Print.

25 | P a g e
Annexure- A: Survey Questionnaire

Survey Questionnaire on

Measuring Customer Satisfaction of Online Banking in Bangladesh

Customer Information:

Gender: Male Female Age: 18-30 31-40 41-50 51-60 61and Above

Occupation ..................................

Banks Name ................................... Branch ..............................................

Sample questions to measure Online Banking Service:

Strongly Disagree Neutral Agree Strongly


Statements
Disagree Agree
1 2 3 4 5
1. The online banking service seems to be
secured.
2. Web site of the bank is user friendly.

3. Web site of the bank is modern and


updated regularly.

4. I am satisfied with the banks overall


online banking services.

Annexure-B: Percentages of Responses

Table A.1 : % of Responses in accordance to Age Group 41-50

1|Page
Parameters Total
(41-50)Age Group User Update Overall
Security
Friendliness Frequency Satisfaction
Neutral 30% 35% 60% 55% 45%
Agree 45% 35% 30% 37.05% 37.50%
Strongl
y Agree 25% 30% 10% 17.05% 17.50%

Total 100%

Table A.2 : % of Responses in accordance to Age Group 31-40

Parameters Total
(31-40)Age Group

Securit User Update Overall


y Friendliness Frequency Satisfaction
Neutral 29.41% 17.65% 47.05% 35.28% 32.35%
Agree 47.05% 64.71% 47.05% 52.95% 52.95%
Strongl
y Agree 23.54% 17.64% 5.90% 11.77% 14.80%
Total 100%

Table A.3 : % of Responses in accordance to Age Group 51-60

Parameters Total
(51-60)Age Group

Update Overall
Security User Friendliness
Frequency Satisfaction
Neutral 16.67% 33% 50% 33.33% 33.33%
Agree 50% 50% 50% 66.67% 58.33%
Strongl
y Agree 16.63% 17% 0% 0% 8.34%

Total 100%

2|Page
Table A.4 : % of Responses in accordance to Age Group 18-30

Parameters Total
(18-30)Age Group
Update Overall
Security User Friendliness
Frequency Satisfaction
Neutral 42.85% 14.28% 28.57% 42.86% 32.14%
Agree 28.57% 71.43% 71.43% 57.14% 57.14%
Strongl
y Agree 28.58% 14.29% 0% 0% 10.72%

Total 100%

Table B.1 : % of Responses in accordance to Profession: Business

Parameters Total
Update Overall
Security User Friendliness
Frequency Satisfaction
Business

Neutral 42.11% 42.11% 73.68% 47.38% 51.31%


Agree 47.85% 47.37% 21.05% 47.36% 38.15%
Strongly
21.06% 10.52% 5.27% 5.26% 10.54%
Agree
Total 100%
Table B.2 : % of Responses in accordance to Profession: Banker

Parameters Total
Update Overall
Security User Friendliness
Frequency Satisfaction
Banker

Neutral 25% 25% 50% 50% 37.50%


Agree 75% 50% 25% 50% 50%
Strongly
0% 25% 25% 0% 12.50%
Agree
Total 100%

Table B.3 : % of Responses in accordance to Profession: Student

Parameters Total
Update Overall
Security User Friendliness
Frequency Satisfaction
Student

Neutral 33.33% 16.67% 33.33% 50% 33.33%


Agree 33.33% 66.67% 66.67% 50% 54.16%
Strongly
33.33% 16.67% 0% 0% 12.51%
Agree
Total 100%

3|Page
Table B.4 : % of Responses in accordance to Profession: Teacher

Parameters Total
Update Overall
Security User Friendliness
Frequency Satisfaction
Teacher

Neutral 50% 0% 0% 0% 12.5%


Agree 50% 75% 100% 75% 75%
Strongly
0% 25% 0% 25% 12.5%
Agree
Total 100%
Table B.5 : % of Responses in accordance to Profession: Service Holders

Parameters Total
Update Overall
Security User Friendliness
Frequency Satisfaction
Services Holders

Neutral 14.28% 21.43% 35.71% 57.15% 32.14%


Agree 71.42% 42.85% 57.14% 42.85% 53.57%
Strongly
14.30% 35.72% 7.15% 0% 14.29%
Agree
Total 100%

Table B.6 : % of Responses in accordance to Profession: Entrepreneur

Parameters Total
Update Overall
Security User Friendliness
Frequency Satisfaction
Services Holders

Neutral 0% 0% 100% 33.34% 33.34%


Agree 33.34% 66.67% 0% 33.33% 33.33%
Strongly
66.66% 33.33% 0% 33.33% 33.33%
Agree
Total 100%

4|Page