"ANALYSIS OF CUSTOMER SATISFACTION ON

INTERNET BANKING SERVICE QUALITY IN

ANDHERI TO BANDRA AREA"

A PROJECT SUBMITTED TO
UNIVERSITY OF MUMBAI FOR
PARTIAL COMPLETION OF THE DEGREE OF
MASTER OF COMMERCE
UNDER THE FACULTY OF COMMERCE

BY:
SONALI RAMCHANDRA MODAK
ROLL NO. A- 240

UNDER THE GUIDANCE OF

DR. VINOD H. KAMBLE

CHETANA’S
HAZARIMAL SOMANI COLLEGE OF COMMERCE &
ECONOMICS, BANDRA (E), MUMBAI-51
APRIL, 2019
 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the
depth is so enormous.

I would like to acknowledge the following as being idealistic channels and fresh
dimensions in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me

chance to do this project

I would like to thank my Principal, Dr. Mahesh Chandra Joshi for providing
the necessary facilities required for completion of this project.

I would like to thank our Co-ordinator, Prof. Niyomi Fonseca, for her moral
support and guidance.

I would also like to express my sincere gratitude towards my project guide

Dr. Vinod H. Kamble whose guidance and care made the project successful.

I would like to thank my College Librarian, for having provided various

reference books and magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly
helped me in the completion of the project especially my Parents and Peers
who supported me throughout my project.
 DECLARATION

I the undersigned Miss. SONALI RAMCHANDRA MODAK here by, declare

that the work embodied in this project work titled "ANALYSIS OF
CUSTOMER SATISFACTION ON INTERNET BANKING SERVICE
QUALITY IN ANDHERI TO BANDRA AREA", forms my own
contribution to the research work carried out under the guidance of
Dr. Vinod H. Kamble is a result of my own research work and has been
previously submitted to any other University for any other Degree/Diploma to
this or any other University.

Wherever reference has been made to previous works of others, it has been
clearly indicated as such and included in the bibliography.

I, here by further declare that all information of this document has been
obtained and presented in accordance with academic rules and ethical conduct.

______________________________

(SONALI RAMCHANDRA MODAK)

A-240

Certified by

______________________________

DR. VINOD H. KAMBLE

 CHETANA’S
Hazarimal Somani College of Commerce & Economics,
Bandra (E), Mumbai-400 051

CERTIFICATE

This is to certify that Ms. SONALI RAMCHANDRA MODAK has worked

and duly completed her/his Project Work for the degree of
MASTER OF COMMERCE under the Faculty of Commerce in the subject of
“ACCOUNTANCY” and her/his project is entitled, “ANALYSIS OF
CUSTOMER SATISFACTION ON INTERNET BANKING SERVICE
QUALITY IN ANDHERI TO BANDRA AREA” under my supervision.
I further certify that the entire work has been done by the learner under my
guidance and that no part of it has been submitted previously for ay degree or
diploma of any University.

It is her/his own work and facts reported by her/his personal findings and
investigations.

Date of Submission:

____________________ ___________________

Project Guide External Examiner

____________________ ___________________

Course Co-ordinator Principal

 ANALYSIS OF CUSTOMER

SATISFACTION ON INTERNET

BANKING SERVICE QUALITY IN

ANDHERI TO BANDRA AREA
 TABLE OF CONTENT

1. INTRODUCTION

1.1 Introduction of Digital Banking Sector... ............................................................. 01

1.1.1 Role of Digital Banking Sector.................................................................... 02

1.2 What is Internet Banking....................................................................................... 03

1.2.1 Procedure of Internet Banking.................................................................. 05
1.2.2 Various Online Services............................................................................ 06
1.2.3 Features of Internet Banking..................................................................... 07
1.2.4 Advantage & Disadvantage of Internet Banking...................................... 08
1.2.5 Various Online Services............................................................................ 09
1.2.6 Challenges faced by the Online Banking.................................................. 11
1.2.7 Growth of Internet Banking & Common Products................................... 12
1.2.8 Mediums of Internet Banking................................................................... 13
1.2.9 Factors Responsible for Growth of Internet Banking............................... 14

2. REVIEW OF LITERATURE.................................................................................. 21

3. RESEARCH METHODOLOGY

3.1 Introduction........................................................................................................... 31

3.2 Types of Research................................................................................................ 31

3.3 Sampling Design................................................................................................... 31

3.3.1 Sampling Method

3.4 Data Collection Tools / Instruments...................................................................... 31

3.4.1 Primary Data
3.4.2 Secondary Data
3.4.3 Tools & techniques
3.5 Data Processing & Analysis.................................................................................. 33
4. DATA ANALYSIS AND INTERPRETATIONS................................................... 34

5. SUGGESTION ................................................................................................. 45

6. CONCLUSION ................................................................................................. 46

● BIBLIOGRAPHY......................................................................................... 47

● QUESTIONNAIRE...................................................................................... 48
 LIST OF TABLES

Table No. Title Page No.

Table 4.1 Age wise Composition 35

Table 4.2 Gender wise Composition 36

Table 4.3 Qualification wise Composition 37

Table 4.4 Occupation wise Composition 38

Table 4.5 Income wise Composition 39

 LIST OF GRAPHS

Graphs No. Title Page No.

Fig. 4.1 Age of Internet Banking beneficiaries 34

Fig. 4.2 Gender wise Composition 35

Fig 4.3 Education of beneficiaries 36

Fig 4.4 Occupation wise Composition 37

Fig 4.5 Monthly Income wise Composition 38

Fig 4.6 Types of Bank wise Composition 39

Fig 4.7 Frequently Use of IB Service Composition 40

Fig 4.8 Comparison of People Started using IB Services 41

Fig 4.9 Comparison of People Started using IB Services in a 42

Month
Fig 4.10 Satisfaction Level of IB Services Wise Composition 43

Fig 4.11 Measure Aspects Using of IB Services Wise 44

Composition
 CHAPTER :1
INTRODUCTION

1.1 INTRODUCTION

Digital banking is also called internet banking or online banking. When a bank
provides its services online and customers can make transactions, submit requests, and handle
other banking activities online, it is called digital banking. The first bank in India to offer
internet banking was the ICICI bank in 1996. Since then a number of other banks have
followed suit and today most of the banks provide online banking facilities.
Digital banking is part of the broader context for the move to online banking, where banking
services are delivered over the internet. The shift from traditional to digital banking has been
gradual and remains ongoing, and is constituted by differing degrees of banking service
digitization. Digital banking involves high levels of process automation and web-based
services and may include APIs enabling cross-institutional service composition to deliver
banking products and provide transactions. It provides the ability it provides the ability for
users to access financial data through desktop, mobile and ATM services

A digital bank represents a virtual process that includes online banking and beyond. As an
end-to-end platform, digital banking must encompass the front end that consumers see, the
back end that bankers see through their servers and admin control panels and the middleware
that connects these nodes. Ultimately, a digital bank should facilitate all functional levels of
banking on all service delivery platforms. In other words, it should have all the same
functions as a head office, branch office, online service, bank cards, ATM and point of sale
machines.

The reason digital banking is more than just a mobile or online platform is that it includes
middleware solutions. Middleware is software that bridges operating systems or databases
with other applications. Financial industry departments such as risk management, product
development and marketing must also be included in the middle and back end to truly be
considered a complete digital bank. Financial institutions must be at the forefront of the latest
technology to ensure security and compliance with government regulations.
 Digital banking is the digitization (or moving online) of all the traditional banking activities
and programs that historically were only available to customers when physically inside of a
bank branch. This includes activities like:

● Money Deposits, Withdrawals, and Transfers

● Checking/Saving Account Management
● Applying for Financial Products
● Loan Management
● Bill Pay
● Account Services

1.1.1 ROLE OF DIGITIZATION IN BANKING IN INDIA

Banks in India as a whole were very reluctant to adopt the changes brought about by
technological advancement. A number of factors brought about the mechanization and
digitization in banking industry in India. The putting in place standard cheque encoders was
the first step forward in digital transformation in banking. Magnetic Ink Character
Recognition (MICR) helps in the sorting and processing of cheques with each bank branch
having an MICR code. The next step was more of a necessity than an innovation. Banking is
a repetitive job, and therefore a labor intensive one where the worker is prone to making
mistakes. In order to minimize errors and speed up the process, banks began using computer
technology with standalone personal computers and then set up their own local area networks
(LAN).

As the networks grew and banks began to connect together, Core Banking came into being.
Centralized Online Real-time Exchange (CORE) banking thus allowed customers to perform
financial transactions and access their account from any of the participating bank‟s branches.
These services made it easier for customers to operate their accounts and slowly led to the
coining of the phrase: „Anytime, Anywhere Banking.‟ Then Automated Teller Machines
(ATMs) arrived on the scene, and electronic fund transfers were made possible.

Online banking and Telebanking made their appearance in the 2000‟s and different modes of
online fund transfers were instituted such as Real Time Gross Settlement (RTGS), Immediate
Payment System (IMPS), National Electronics Fund Transfer (NEFT), and National
Electronic Clearing Service (NECS). Recent years have seen the growth in mobile banking
services and other innovative services online. The role of digitization of banking in India that
began in the 1980‟s has certainly come a long way. However there is still a long way to go in
the digitization in banking industry and a number of hurdles to cross before we are able to
ensure end to end digital banking in India as we will discuss in this article.

1.2 WHAT IS AN INTERNET BANKING

An Internet bank also known as a virtual bank, an online bank, or a web bank is a bank that
lacks any physical branch locations and exists only on the internet. By eliminating the
overhead costs associated with bank branches, internet banks consistently offer interest rates,
including money market yields, that are higher than the national average. Online banking
(Internet banking or E-banking) allows customers of a financial institution to conduct
financial transactions on a secured website operated by the institution, which can be a retail
bank, virtual bank, credit union or building society.

Online banking is an umbrella term for the process by which a customer may perform
banking transactions electronically without visiting a brick-and-mortar institution. The
following terms all refer to one form or another of online banking: personal computer (PC)
banking, Internet banking, virtual banking, online banking, home banking, remote electronic
banking, and phone bank. PC banking and Internet or online banking is the most frequently
used designations. It should be noted, however, that the terms used to describe the various
types of online banking are often used inter changeably. Online banking is an activity that is
not new to banks or their customers. Banks having been providing their services to customers
electronically for years through software programs. These software programs allowed the
user‟s personal computer to dial up the bank directly. Online Banking or E-banking is defined
as the automated delivery of new and traditional banking products and services directly to
customers through electronic, interactive communication channels. Online Banking or E-
banking includes the systems that enable financial institution customers. Individuals or
businesses, to access accounts, transact business, or obtain information on financial products
and services through a public or private network including the Internet, Customers access e-
banking services using an intelligent electronic device.

The Online Banking or E-banking was firstly introduced in Bangladesh by the DBBL around
1996. There after many other banks like HSBC, IFIC, Citibank Trust Banks, etc. followed the
service. As today private and foreign bank had started capturing the market through Online
Banking or e-banking hence “the competition is heating up and the lack of technology can
make a bank loose a customer” so now the public banks are breaking the shackles
of traditional set-up and gearing up to face the competition posed by the private
sector counterparts.

DEFINITIONS OF INTERNET BANKING

Daniel defines e-banking as the delivery of Banks information and services by banks to
customers via different delivery platforms that can be used with different terminal devices
such as a personal computer and a mobile phone with browser or desktop software, telephone
or digital television. It can also be defined as the delivery of banking services through the
open-access computer network (the Internet) directly to customers‟ home or private address
and services.

According to Oxford Dictionaries, is: “A method of banking in which the customer

conducts transactions electronically via the Internet.

1.2.1 PROCEDURE OF INTERNET BANKING

https://www.google.com/search?q=procedure+of+internet+banking
 1. First you need to register your bank account with net banking facility.

2. After that, you will get a Customer ID (User ID) and password.

3. Log on to the bank portal using user id and password. Some banks provide more

authentication process during login itself such as image, OTP.

4. Do the required transactions using computer.

5. Log out the session

1.2.2 VARIOUS ONLINE SERVICES

Online banking account is easy to open and operate. The online services offered might differ
from bank to bank, and from country to country. To know about the various services, always
go through the welcome kit that you get at the time of opening the account. You also get the
password to access your online account, which you are supposed to keep with great care for
security reasons

https://www.google.com/search?q=feature+of+internet+banking

The common features fall broadly into several categories:

A bank customer can perform non-transactional tasks through online banking, including -

● Viewing account balances

● Viewing recent transactions
● Downloading bank statements
● Viewing images of paid cheques
● New Cheque Book ordering
● Download periodic account statements
● Depositing Taxes
● Downloading applications for M-banking, E-banking etc.
● Funds transfers between the customer's linked accounts
● Paying third parties, including bill payments
● Investment purchase or sale i.e. investment services
● Loan applications and transactions, such as repayments of enrolment
● Shopping
● Ticket Booking
● Prepaid Mobile Recharge
● LIC & other insurance premium payments
● Donations to NGO‟s
● Self-account funds transfer across Bangladesh
● Internet/Online banking is easy, reliable and convenient way to fulfil our banking
needs. This robust banking facility connects us with our bank at our convenience, we
don‟t have to plan our day according to bank hours, no more waiting in queue and
even you can check your balance whenever and wherever you want. Most of the time
online banking and internet banking are often used interchangeably.
● It refers to the provisions of electronic banking services via internet through personal
computer (PC) or other access devices with internet capabilities.
● Internet banking gives customers the ability to access virtually any type of banking
services in any place and at any time.
● Many depository institutions contract with third party firms for internet banking
support services they choose not to provide themselves.
1.2.3 FEATURES OF INTERNET BANKING

The features available from an on-line bank account are similar to those which are available
via 'phone banking or visiting the local branch. On-line banking features do differ between
the banks, but usually include:

 Transfer of funds between accounts;

 It brings efficiency in CRM(Customer relationship management)

 Make Payment of bills

 Introduces new & innovative products &services.

 View balance and statements.

 Brings door to door services.

 Create, view and maintain Standing Orders

 Have evolutionary trend at a globle scenario.

 Customer can View Direct Debits

 Create, view and maintain Standing Orders

 Have evolutionary trend at a globle scenario.

 Customer can View Direct Debits

1.2.4 ADVANTAGE & LIMITATIONS OF INTERNET BANKING

Advantages of Internet Banking :-

⮚ Opening & closing of Accounts.

⮚ Make the payments of merchandise transaction through Debit & Credit cards.

⮚ It gives reliefs to their customer from carrying heavy cash.

⮚ Enables prompt & speedy operation to clients.

⮚ It saves lot of time to their customers &convenient to access.

Disadvantages of Internet Banking :-

⮚ Customer may have to face risky transaction & fraud.

⮚ Failure of power supply cause to break down of system.

⮚ Loss of heavy income at times of settlement of higher magnitude.

⮚ Cost involved in training staff may not be profitable specially in times of attrition.

1.2.5 INTERNET BANKING & ITS VARIOUS TYPES

Currently, there are three basic kinds of Internet Banking that are being employed in the
market place :

Information :
This is the most basic level of Internet banking. The bank has marketing information about its
products and services on a stand- alone server. This level of Internet banking service can be
provided by the bank itself or by sourcing it out. Since the server or web site may be
vulnerable to alternation, appropriate controls must therefore be in place to prevent
unauthorized to data in the server or web site.
Communication :
This type of Internet banking allows interaction between the bank's systems and the
customer. It may be limited to electronic mail, account inquiry, loan applications, or static file
updates. The risk is higher with this configuration than with the earlier system and therefore
appropriate controls need to be in place to prevent, monitor, and alert management of any
unauthorized attempt to access bank's internal network and computer systems. Under this
system the client makes a request to which the bank subsequently responds.

Transaction :
Under this system of Internet banking customers are allowed to execute transactions. Relative
to the information and communication types of Internet banking, this system possesses the
highest level of risk architecture and must have the strongest controls. Customer transactions
can include accessing accounts, paying bills, transferring funds, etc. These possibilities
demand very stringent security.

1.2.6 MAJOR CHALLENGES FACED BY THE ONLINE BANKING INDUSTRY

https://www.google.com/search=top+challenges+online+banking
 ● Traditional banking habits:

Most of the participate in online banking, on the other hand, there are still some people who
don‟t use online banking. A majority of such people are well versed in traditional banking.
Such resistance to change is typically due to a lack of trust in the online system or the
incompetence to operate online portals. And this is why banks are influencing people to adopt
online banking. Banks can simply prove the benefits of online banking and disadvantages of
traditional banking to their customers.

● Security and fraud instances:

This is one of the most significant challenges for banks promoting online banking. In
traditional banking, robbers break into the banks to steal money, whereas in online banking
hackers can break into customers details and illegally transfer money. The extension of e-
commerce provides a chance for fraudsters to misuse payment networks and steal sensitive
information.

● Cross-border transactions:

The implementation of cross-border transaction plays a vital role in the global trade and is
one of the remarkable success factors of online banking. Historically cross-border payments
have been slow, incompetent, and expensive because most of the banks still use traditional
infrastructure including national banking infrastructure, which results in non-uniform
development and software platforms that confuse cross-border transaction. To overcome
these challenges, new technologies including block chain have been promising to enable
smooth cross-border transactions.

1.2.7 THE GROWTH OF INTERNET BANKING & COMMON PRODUCT

Internet Banking is a product of e-commerce in the field of banking and financial services. In
what can be described as B2C domain for banking industry, Internet Banking offers different
online services like balance enquiry, requests for cheque books, recording stop-payment
instructions, balance transfer instructions, account opening and other forms of traditional
banking services.

mostly, these are traditional services offered through Internet as a new delivery channel.
Banks are also offering payments services on behalf of their customers who shop in different
e-shops, e-malls etc. Further, different banks have different levels of such services offered,
starting from leval-1 where only information is disseminated through Internet through level-3
where online transaction are put through. Considering the volume of business e-commerce,
particularly in B2B domain, has been generating, it is natural that banking would position
itself in an intermediary role in settling the transactions and offering other trade related
services. This is true both in respect of B2C and B2B domains.

Besides, the traditional role of financial intermediary and settlement agents, banks have also
exploited new opportunities offered by Internet in the fields of integrates service providers,
payment gateway services, etc. However, the process is still evolving and banks are
repositioning themselves based on new emerging e-commerce business models.
In B2B scenario, a new form of e-commerce market place is emerging where various players
in the production and distribution chain are positioning themselves and are achieving a kind
of integration in business information flow and processing leading to efficiencies in the entire
supply chain and across industries.

Banks are positioning themselves in a such a market in order to be a part of the financial
statements arising out of transactions of this market and providing wholesale financial
services. This needs integration of business information flow not only across the players in
the supply chain, but with the banks as well.
With the integration of business information flow and higher degree of transparency, the
banks and other financial services institutions have lost some of the information advantage
they used to enjoy and factor in to pricing of their products. However, such institutions have
the advantage of long standing relationships, goodwill and brand, which are important
sources of assurance in a virtual market.

Banks are in fact, converting this goodwill into a business component in e-commerce
scenario in providing settlement and other financial services. Some banks have also moved to
providing digital certificates for transactions through e-markets. Bank's strategies in B2B
market are responses to different business models emerging in e-commerce.
1.2.8 MEDIUMS OF E-BANKING : (VARIOUS PRODUCTS AND SERVICES)

Electronic banking also known electronic fund transfer (EFT), uses computer and electronic
technology as a substitute for checks and other paper transactions. EFTs is initiated through
devices like cards or codes that let you, or those you authorize, access your account.

Many financial institutions use ATM or debit cards and personal Identification Numbers
(PINs) for this purpose. Some use other forms of debit cards and personal Identification
Numbers (PINs) for this purpose. Some use other forms of debit cards such as those that
require, at the most, your signature or a scan. The federal Electronic Fund Transfer Act (EFT
Act) covers some electronic consumer transactions.

Following are the electronic medium by which services are generally provided by the banks
as a part of e-banking services.
1) Internet Banking
2) ATM (Automatic Teller Machine)
3) Phone Banking
4) Mobile Banking
5) Payments Cards (Debits/ Credit Card)

All the above mediums provide services, which can be, also known as "any time any where
banking". This facilities the customer of the bank to operate their account from any corner of
the world, without visiting local or any subsidiary branch of their banks. Efforts are made by
the bank not only to provide the facility to the customer, but also to reduce the operational
cost of the bank by providing e-banking services. So with this, banks have to employ less
staff and still would be able to deliver service to the customer, round the corner.

1.2.9 FACTORS RESPONSIBLE FOR GROWTH OF INTERNET BANKING

Numerous factors including competitive cost, customer service, and demographic
considerations are motivating banks to evaluate their technology and assess their Internet
banking strategies. The challenge for national banks is to make sure the savings from Internet
banking technology more than offset the costs and risks associated with conducting business
in cyberspace.Marketing strategies will vary as national banks seek to expand their markets
and employ lower cost delivery channels. Examiners will need to understand the strategies
used and technologies employed on a bank-by-bank basis to assess the risk. Evaluating a
bank's data on the use of their Web sites, may help examiners determine the bank's strategic
objectives, how well the bank is meeting its Internet banking product plan, and whether the
business is expected to be profitable.

Competition :
Studies show that competitive pressure is the chief driving force behind increasing use of
Internet banking technology, ranking ahead of cost reduction and revenue enhancement, in
second and third place respectively. Banks see Internet banking as a way to keep existing
customers and attract new ones to the bank.

Cost Efficiencies :
Banks can deliver banking services on the Internet at transaction costs far lower than
traditional brick and mortar branches. The actual costs to execute a transaction will vary
depending on the delivery channel used. No doubt the ATM is considerably cheaper than a
teller, but even so, the Internet is nearly 3 times cheaper that the ATM usage.

Geographical Reach :
Internet banking allows expanded customer contact through increased geographical reach and
lower cost delivery channels. In fact some banks are doing business exclusively via the
Internet. They do not have traditional banking offices and only reach their customers online.
Other financial institutions are using the Internet as an alternative delivery channel to reach
existing customers ads attract new customers.

Customers Demographics :
Internet banking allows national banks to offer a wide array of options to their banking
customers. Some customers will rely on traditional branches to conduct their banking
business. For many, this is the most comfortable way for them to transact their banking
business. Those customers place a premium on person contact other customers are early
adopters of new technologies that arrive in the market place. These customers were the first
to obtain PCs and the first to employ them in conducting their banking business. The
demographics of banking customers will continue to change.
Round the Clock Access :
Internet banking services are available on 24 x 7 bases to the customers without charging any
extra cost from the customers. And one can access the bank from anywhere in the world at
one's own convenience without owning your own PC.

1.3 BACKGROUND OF THE STUDY

Globalization and deregulations have increased competition in the marketplace, as nowadays

it has become much easier for companies to cross borders and compete internationally. This
has made companies become more involved in increasing their productivity and still at the
same time reduce costs and investing in information Technology is one of these ways .

The recent developments in has led to major adaptations to how customers are now
transacting and accessing products and services by getting into the self-service systems which
are easier to use and offer convenience and efficiency. There has been an upsurge and
increased use of banking services online known as online banking (OB). Banks are providing
online facility to their clients. This was initially looked at as an added advantage but it is
now become a basic necessity that banks have to endear their clients. These services rendered
vary from bank to bank due to competition and search for new features to attract clients, but
most general of them includes viewing balances, paying bills, view statements of
transactions, transfer money between accounts and even change profile details of the account
holder The benefits of Electronic banking are diverse and for the customers in particular the
benefits are more information, more options hence more choices, faster service, better value
for money, privacy concerns, profitability and reduction of operational costs. Banks offer the
interface and websites in a user friendly manner which enables customers to transact with
ease. OB has become an invaluable tool driving development, promoting innovation and
enhancing competitive. The evolution of OB has been driven by changes in
distributionchannels as evidenced by ATM points, phone-banking, tele-banking, and internet-
banking. Online banking services (OBS) has created opportunity for banks by enhancing
product delivery, low entry barriers, ability to re-engineer different business processes and
much more opportunity to sell cross-border and market over the internet. The uptake of
online banking by banks in Kenya, has been largely to create and facilitate an interbank
platform that allows transfer on information and data between banks for instance the Real
Time Gross Settlement system (RTGS) and Electronic Funds Transfer (EFT). It has also been
used as a way to reduce customers visiting the branches for their transactions. This has them
using online system instead hence decongesting banking halls and enhancing customer
satisfaction.

The quality of this system is one aspect that is an invaluable tool for this venture to be a
success. This quality known as service quality (SQ) is based on the dimensions of the system
and those are measurable to find out whether the desired effect on the customer is being
achieved.

Customers prefer OBS for reasons such as convenience, feeling more in control of the
process, saving time and it is easier for them to compare and evaluate competing services the
cost of switching online service providers is low. As such it is very important for
organizations to retain their customers on their service space. In order for the service
providers in this case banks to retain their online customers, they should understand how their
customers perceive and evaluate the SQ of the OBS. The organizations that have emerged
successful in offering online services and retaining their customers have embraced the fact
that beyond website design and low price, SQ is one of the dimensions that play a vital role in
customer satisfaction. Taking into account the immense input in terms of investments that
banks have put into technological development, customer satisfaction and retention have fast
become vital in successful OBS. Delivering high quality services is a requirement for
customer satisfaction and this in turn creates loyal customers. Research has been extensively
done in the traditional setting where customers visited branch outlets and there is an
interaction between the staff and the customers but it is the study of this aspect in OBS where
the interaction between the staff and the customers is impersonal. Customers have changing
perceptions about the products and services they procure and banks should constantly try and
find these out and improve their OBS and gain competitive advantage.

1.4 STATEMENT OF THE PROBLEM

Banks have been challenged by technological improvement which has led to the development
of products and service that increased the fight for market share. There has been a move from
paper-based to electronic payments and ATM use as opposed to visiting of branches by the
customers. While all this is a good and advantageous aspect, it also has some critical issues
for both parties i.e. the banks and the customers in terms of quality, security and efficiency
among others. In the current era of intense competition, many banks are focused on
maintaining a satisfied customer based on the argument that organizations that are customer
centric gain more returns than those that are not service oriented; the increase of customer
satisfaction and loyalty through improved service quality. This has seen a great deal of
investments in technology by the banks Increased technological use has seen banking
performance increases daily and online banking has become a very important part of present
day banking. Some studies on online banking include, adoption and effectiveness of
electronic banking where they dealt with the uptake of the electronic banking in the country
and how the uptakes worked after the acquisition; another study was, effects of e-banking on
growth of customer base who looked into the issues that affected the utilization of e-banking
facilities by customers and how this impacted on the increase of the customer base in the
banks; factors affecting adoption of mobile banking technology. There is need for further
study to understand the attributes on online banking that lead to customer satisfaction as
customer satisfaction is cornerstone in determining the successful implementation of new,
technology based, online banking services and its usability. This will help to give feedback to
practioners and have empirical evidence on the phenomenon for better understanding. This
could also drive future research in this area. The focus of this study is to evaluate how
customers perceive the quality of online banking services and how this relates with their
satisfaction levels.

1.5 OBJECTIVES OF THE STUDY

1) To study frequency of using internet banking by customers in Andheri to Bandra Area.

2) To know the purpose of using internet banking by customers in Andheri to Bandra Area.

3) To find out satisfaction level of customers from services of internet banking.

1.6 SIGNIFICANCE OF THE STUDY

Top service researchers state that customer satisfaction is the key to development and
strategy for organizations that want to grow and be contenders in the economic arena. Poll
statisticians use a lot of satisfaction surveys based on the thinking that a satisfied customer
will always return in the future. Customer is a corner stone in the banking industry and for
any bank to be able to be efficient and competitive in an economy such as the Andheri to
Bandra area market that has institutions offering financial services constantly growing. This
study can be used by management to improve on customer policy toward satisfaction as it
looks at aspects that aid in the reduction of customer complaints, ensure the ease of access to
services rendered so that the customer expectations are always met or exceeded. This will
lead to better relations with the customers and boost company performance as well. As this is
a project on one organization the study can be used by researchers to find out the effect
online facilities may have on the customer satisfaction in other organizations.

1.7 SCOPE OF THE STUDY

The present study analyzes the purpose of using internet banking services and frequency of
using internet banking services. It also includes to find out satisfaction level of customers
towards internet banking services and to find out the problems encountered by the customers
in the area Andheri to Bandra of Western Suburban Mumbai.

1.8 LIMITATIONS OF THE STUDY

1) Only 90 respondents have been considered for this study.

2) A few respondents might have furnished the required information from their momentary
memory and invented temper and hence the collected data might be subject to bias.
3) The size of the sample compared to the population is small and hence it might not signify
the ideas of entire population.
4) The geographical area of this study is confirmed to Mumbai suburbs only.
 CHAPTER: 2
REVIEW OF LITERATURE

2.1 INTRODUCTION
Generally, a researcher conducts and surveys the related literature in order to review the
present status of a particular research topic. From the survey of literature, a researcher a able
to know the quantum of work already done on his research topic so far not touched, or yet to
be undertaken. The overview of literature at the national or an international level is to be
researched with the health of research reports, articles, books and other materials. The major
benefits of literature review of firstly helps the researcher in avoiding duplication of efforts
on the same research topic. Secondly, helps the researcher in adopting methodologies used
successfully by other researchers, writers and policy makers. Thirdly, suggests new
approaches in planning, organizing the investigation of research topic. Fourthly, helps to
narrow down the research problem more clearly.

This study contributes to literature by focusing on the measurement of Customer Satisfaction

of Internet Banking. The aim of literature reviews is to justify, rationale of an ensuring
research study, provides an overview of historical perspectives and to bring to the light to
research trends and problems.

Srivastava, (2007), reveals that the perception of the consumers can be changed by
awareness program, friendly usage, less charges, proper security, and the best responses to
the service offered. The study also provides the kind of correlation between different factors.
As per our basis assumptions we consider only those consumers who know how to use
Internet and have an access to internet, and our study considered only the situation wherein
banks provide Internet banking of their colleagues or friends who surround him using Internet
banking then it may influence his decision to follow Internet banking option.

Dr.Rejikumar G, Sudharani Ravindran D(2012) in the journal of internet banking &

commerce studied about the factors affecting the prolongation decisions of the early adopter
of mobile banking services. The study proved that after choosing the new technology, the
customer finds satisfaction in the quality frame work of the services.

Rahmath Safeena (2011) found that banks need to highlight the benefits if IB, make IB easy
to use, and enhance IB security to improve consumer's trust. They also need to make the
consumers aware about the system by providing them about the details of the benefits
associated with it and also ensuring security of the system. Banks can highlight benefit such
as IB conveniences in their promotional and advertising activities. The IB interface could be
made simple. Banks also need to engage in security enhancement activities such as
encryption, firewall, and user protection and authenticity. Trust is one of the more influential
factors, implying that controlling the risk of online banking is more important than providing
benefits. This finding is particularly important for managers as they decide how to allocate
resources to retain and expand their current customer base. However, building a risk free
online transaction environment is much more difficult than providing benefits to customers.

Barnes and Corbitt (2003); Scornavacca and Barnes (2004) suggest that recent
innovations in telecommunications have enabled the launch of new access methods for
banking services, one of these is mobile banking; whereby a customer interacts with a bank
via a mobile device such as a mobile phone or personal digital assistant.

Basweti Ogachi Kevin, Masese Chuma Benard & Dr. Martin Onsiro Ronald (2013) In
their research titled on “Impact and Challenges of Information Communication Technology
Adoption in the Tanzanian Banking Sector” The banking sector across the globe is embracing
ICT technologies and using as part of business strategy for expansion, revenue increase,
extension of customer network and creating competitive advantage among banking
institutions .This paper is an effort to investigate the impacts and challenges of ICT adoption
in the Tanzanian banks.

Vyas (2009); Rao et al. (2003) suggest banks will need to expand their thinking about
mobile banking beyond online banking and should start to view mobility as its own powerful
and compelling delivery channel that can help them deliver to end users new value such as
immediate access and additional control of personal finances.
V. Raja, Joe A. (2012), “Global e-banking scenario and challenges in banking system”, This
paper is an attempt to explore the various levels of internet banking services provided by
banks using the secondary data. It also compares the traditional banking systems with net
banking. It lists out the various advantages of internet banking and the successful security
measures adopted by different banks for secured banking transactions. It also analyzes how
E-banking can be useful for banking industry during this global financial melt down.

Amruth Raj Nippatlapalli (2013) In his research paper “A Study on Customer Satisfaction
of Commercial Banks: Case Study on State Bank of India”. This paper present Customer
satisfaction, a term frequently used in marketing, is a measure of how products and services
supplied by a company meet or surpass customer expectation. Customer satisfaction is
defined as "the number of customers, or percentage of total customers, whose reported
experience with a firm, its products, or its services (ratings) exceeds specified satisfaction
goals."Banking in India originated in the last decades of the 18th century. The first banks
were The General Bank of India, NOW which started in 1786, and Bank of Hindustan, which
started in 1790; both are now defunct. The oldest bank in existence in India is the State Bank
of India, which originated in the Bank of Calcutta in June 1806, which almost immediately
became the Bank of Bengal. This was one of the three presidency banks, the other two being
the Bank of Bombay and the Bank of Madras, all three of which were established under
charters from the British East India Company. For many years the Presidency banks acted as
quasi-central banks, as did their successors. The three banks merged in 1921 to form the
Imperial Bank of India.

Prabha, Divya et al, (2006), in their study analyzed the service quality perception of the
corporate customers in Coimbatore regarding the services provided by their banks. For this
study they considered both product and service based on sectors and SERVQUEL scale based
questionnaire for the survey. By this study it has been revealed that even though customers
are more satisfied with the competence and customer orientedness dimensions of service
quality, still banks need to focus upon the aspects of communication, modernization and
quickness of service.

Rod Michel et al (2009), Their outcome presented a model to explain how three dimensions
of internet banking service quality influence perception of overall internet banking service
quality, and how these overall perceptions of internet service quality influence customers
satisfaction. All hypotheses were confirmed albeit with H3 marginally. Our results suggest
that online information system quality is a significantly stronger predictor of overall internet
banking service quality than both online customer service quality and banking service
product quality individually and when combined. The significant relationship between online
customer service quality and overall internet banking service quality indicated that the
quality of customer service is important for banks in the context of internet banking.

Pete Babick (1992) In his research titled ―Customer Satisfaction-How good is good
enough‖ tried to find out the importance of customer satisfaction in terms of market share and
profitability. The research concluded that customer satisfaction has a direct and linear
relationship with profits. More the satisfaction, higher will be the profits for the service
companies.

Clark (2008) suggested that as a channel the mobile phone can augment the number of
channels available to consumers, thereby giving consumers more low-cost self-service
options by which to access funds, banking information and make payments. Mobile as a
channel delivers convenience, immediacy and choice to consumers. But there are a large
number of different mobile phone devices and it is a big challenge for banks to offer Mobile
banking solution on any type of device. Some of these devices support Java2Micro Edition
(J2ME) and others support Wireless Application Protocol (WAP) browser or only SMS.

Pooja Malhotra & Balwinder SINGH (2009) In their research paper “The Impact of
Internet Banking on Bank Performance and Risk: The Indian Experience”. The paper
describes the current state of Internet banking in India and discusses its implications for the
Indian banking industry. Particularly, it seeks to examine the impact of Internet banking on
banks‟ performance and risk. Using information drawn from the survey of 85 scheduled
commercial bank‟s websites, during the period of June 2007, the results show that nearly 57
percent of the Indian commercial banks are providing transactional Internet banking services.
The univariate analysis indicates that Internet banks are larger banks and have efficiency
ratios and profitability as compared to non-Internet banks. Internet banks rely more heavily
on core deposits for funding than non-Internet banks do. However, the multiple regression
results reveal that the profitability and offering of Internet banking does not have any
significant association, on the other hand, Internet banking has a significant and negative
association with risk profile of the banks.
Rakesh H M & Ramya T J (2014) In their research paper titled “A Study on Factors
Influencing Consumer Adoption of Internet Banking in India” tried to examine the factors
that influence internet banking adoption. Using PLS, a model is successfully proved and it is
found that internet banking is influenced by its perceived reliability, Perceived ease of use
and Perceived usefulness. In the marketing process of internet banking services marketing
expert should emphasize these benefits its adoption provides and awareness can also be
improved to attract consumers‟ attention to internet banking services.

Dr. Renu Arora and Dr. Surabhi Singh (2011) In their research paper “Service quality of
online banking services in public, private and foreign banks in India” This paper present
recent developments in information technology have led to major changes in service
providing organizations such as banks. Every bank realizes that they must use information
technology to survive in this era. Through information technology, banks can better maintain
the relationship with customers as customers tend to interact more with provided services
through information technology. The emergence of new technologies is enabling new
competitors to enter the financial services market quickly and efficiently. Therefore, it
becomes imperative for service providers to meet or exceed the target customers‟ satisfaction
with quality of services expected by them. This paper presents customers‟ perception of
quality of online banking services in terms of its constituent factors in public sector, private
sector and foreign banks.

Rajesh Kumar Srivastava (2007) In his research paper “Customer‟s perception on usage of
internet banking” This paper present to Internet banking is still at infancy stage in the world.
Many studies focused on usage of internet banking but many factors on non-usage were
overlooked. This research was carried out to validate the conceptual model of internet
banking. The causes were identified and researched through correcting the causative factors
so that internet banking can bused by more people. This will help the banking operations to
be more cost effective.

Shaza W. Ezzi (April 2014) In their research paper titled “A Theoretical Model for Internet
Banking: Beyond Perceived Usefulness and Ease of Use” tried to inquired different types of
electronic banking like ATM‟s, telephone banking, and electronic funds transfer, Internet
banking like has evolved from consumers‟ needs to have superior access to banking services
clear of most banks teller-staffed, normal operating hours. Additionally, Internet banking has
grown swiftly from the recent and the span increases in ecommerce. Internet banking (IB)
continues to govern the landscape of electronic banking as consumers continue to use IB to
complete schedule banking transactions in addition to conducting on-line sales and
purchasing.

Lio Z. & Cheung M.T., (2008), the study conclude that Internet banking to become
significantly more important in the increasingly technology and information-based global
economy. Financial institutions must therefore deliver ever- better-service quality in their
online operations and products. Given that a large number of service-quality attributes can
potentially affect consumer attitudes toward Internet banking, the theory of bounded
rationality suggests that the high decision cost entailed in the pursuit of service-quality
enhancement in each and every direction would be reduced if the opportunity set is rationally
made smaller. If bank user perceptions and preferences are found to change with regard to
certain core attributes, empirical results obtained in the exercise can be exploited by
marketing managers to attract more customers to online banking.

Gupta (2013); Dasgupta et al (2011) also affirms future of mobile banking in India in their
studies. Suoranta (2003) found that the average mobile banking user is married, 25 to 34
years old, has intermediate education and average income in clerical work. She found that age
and education have a major influence on the use of the mobile phone in banking services. The
adoption theories assume that use of Internet banking precedes the adoption of the mobile
phone in banking.

Muhammed s. Alnsour & khalil al-hyari (2011) In their research paper “Internet banking
and Jordanian corporate customers: issues of security and trust”. This paper research on the
reception behavior of technology is sizeable, yet it is relatively assorted and fragmented in
the context of developing economies like Jordan. The paper tries to offer insights about two
critical factors in acceptance behavior of Jordanian customers, namely, security and trust.
This editorial puts together an integrated conceptual model for acceptance behavior of
Jordanian Corporate customers that includes these two significant issues.
Dixit N. & Datta S.K., (2010) in their study, they found that country like India, there is need
for providing better and customized services to the customers. Banks must be concerned the
attitudes of adult customers with regard to acceptance of online banking. It is shows that adult
customers are more reluctant to join new technologies or methods that might contain little
risk. It‟s also important to note that some adult customers are interested in online banking;
however, they do not possess the necessary computer literacy to conduct it. In addition banks
should design the website to concern security and privacy issues. The recommendations to
the banks are that they have to increase the level of trust between banks‟ website and
customers. Because customer perception on security and privacy aspect have been seen in the
literature. The importance of security and privacy for the acceptance of internet banking has
been noted in many banks study and found that people have weak understanding of internet
banking, although they are aware about risk.

Khan M.S. & Mahapatra S.S., (2009), explored the service quality of internet banking
operative in India from customer‟s perspective. It is observed that customers are satisfied
with the reliability of the services provided by the banks but are not very much satisfied with
the dimension „User friendliness‟. A seven-dimension model using regression analysis is
developed for measuring the overall service quality of i-banking. The result indicates that the
two dimensions, viz. „Privacy/Security‟ and „Fullfillment‟ are not contributing significantly
towards the overall service quality. This is an implication that the customers feel that bankers
fail in providing the services on these two dimensions satisfactorily. It is also observed that
the opinion of male and female of business class differs from the other classes.

Sohail et al (2007), the results of the factor analysis in the present study produced three
dimensions. While this result reveals that “efficiency and security” is the most influencing
factor in users‟ evaluation of service quality, the factor group produces a combination of
diverse measures which may be due to the highly correlated nature of service quality
dimensions. Efficiency in internet banking mainly involves download speed, which in turn
involves users in completing a transaction quickly. Measurement of service quality generally
for service delivery through web sites and particularly for online banking services is in its
early stages; published scholarly literature is minimal, and hence it is difficult to make
comparisons.
Rakesh H M & Ramya T J (2014) In their research paper titled “A Study on Factors
Influencing Consumer Adoption of Internet Banking in India” tried to examine the factors
that influence internet banking adoption. Using PLS, a model is successfully proved and it is
found that internet banking is influenced by its perceived reliability, Perceived ease of use
and Perceived usefulness. In the marketing process of internet banking services marketing
expert should emphasize these benefits its adoption provides and awareness can also be
improved to attract consumers‟ attention to internet banking services.

Jayshree Chavan (2013) In his research paper “Internet Banking- Benefits and challenges in
an Emerging Economy”. This study presents New Information technology has taken
imperative place in the future expansion of financial services, especially banking sector
conversion are affected more than any other financial provider groups. Increased use of
mobile services and use of internet as a new division channel for banking transactions and
international trading requires more concentration towards e-banking security against
deceptive activities. The development and the increasing progress that is being experienced in
the Information and Communication Technology have brought about a lot of changes in
almost all facets of life. In the Banking Industry, it has been in the form of online banking,
which is now replacing the traditional banking practice. Online banking has a lot of benefits
which add value to customers‟ satisfaction in terms of better quality of service offerings and
at the same time enable the banks gain more competitive gain over other competitors. This
paper discusses some challenges in an emerging economy.

Pete Babick (1992) In his research titled “Customer Satisfaction-How good is good enough”
tried to find out the importance of customer satisfaction in terms of market share and
profitability. The research concluded that customer satisfaction has a direct and linear
relationship with profits. More the satisfaction, higher will be the profits for the service
companies.

Shilpi Khandelwal (2013) In his research titled on “E Banking: Factors of Adoption in

India” This paper present the last decade has witnessed a drastic change in the economic and
banking environment all over the world. With the economic and financial sector reforms
introduced in the country since early 1990s, the operating environment for banks in India has
also undergone a rapid change. Increasingly, more and more people are switching to
electronic platforms for executing financial transactions. Internet banking has brought about a
360 degree change in the entire banking industry. The wider usage of cell phone and internet
certainly seems to be playing a role in blurring physical boundaries, and unlocking a whole
new world of opportunities for banks in tapping newer customer segments and in recording
greater volume of transactions. For the banks, technology has emerged as a strategic resource
for achieve in higher efficiency, control of operations, productivity and profitability.

Alain Y. C., Keng B. O., Binshan L., Boon I. T., (2010) "Online banking adoption: an
empirical analysis" showed that perceived usefulness, trust and government support all
positively associated with the intention to use online banking in Vietnam. Contrary to the
technology acceptance model, perceived ease of use was found to be not significant in this
study.

Khan M. S., Mahapatra S. S., (2009), “Service quality evaluation in internet banking: an
empirical study in India”Demographic analysis of data reveals that gender is hardly a bias for
use and evaluation of service quality of i-banking in most of the cases across various
categories of customers. A valid mathematical model is proposed to assess the overall service
quality using regression analysis. The results show that customers are satisfied with quality of
service on four dimensions such as reliability, accessibility, privacy/security, responsiveness
and fulfilment, but least satisfied with the 'user-friendliness' dimension. The empirical
findings not only prioritise different parameters but also provide guidelines to bankers to
focus on the parameters on which they need to improve. The analysis showed that three
variables (relative benefits, propensity to trust and structural assurances) had a significant
effect on initial trust in mobile banking. Also, the perception of initial trust and relative
benefits was vital in promoting personal intention to make use of related services. However,
contrary to our expectation, the reputation as a firm characteristics variable failed to attract
people to mobile banking.

Bahram Meihami, Zeinab Varmaghani & Hussein Meihami (2013) In their research
paper “The Effect of Using Electronic Banking on Profitability of Bank“ This paper deals
with Electronic banking is the use of electronic means to transfer funds directly from one
account to another, rather than by check or cash. Through reducing bank costs, electronic
banking can increase bank incomes. In this research the role of electronic banking (i.e.
automated teller machines, bank card, internet bank, telephone bank, point of sale) in
increasing bank incomes is studied.
Dr. G S Gireesh Kumar, Bijoy A P and Ajimon George (2012) In their research paper
“Effect of Service Quality Dimensions on Adoption of Internet Banking–An Empirical
investigation of Customer‟s Perspectives in Kerala”. The purpose of this research is to
examine the interrelationship between the IB service quality dimensions and adoption of IB
by customers in Kerala. Using a structured questionnaire, primary data were collected from
240 IB users from both public sector banks and private sector banks, identified randomly
from various parts of Kerala. It is quite evident that adoption of IB by customers is a function
of various service quality dimensions and extent of adoption is determined by the level
satisfaction on various elements. Multiple regression was used to study the interrelationship
between dependent variable (Adoption i.e., Years of IB use) and independent variables (web
security, reliability, responsiveness, fulfillment, efficiency and privacy). The findings indicate
that the strongest predictor based on Beta values is website security followed by privacy and
responsiveness.

Neeli Prameela, Dr. B. Abdul Azeem & K.V. Geetha Devi (2012) This study is a challenge
to Owing to the high costs occupied in increasing the current client base, one of the main
goals of banks and other monetary services providers, which operate through the internet,
should be to develop customer allegiance in order to improve the results. To achieve this aim,
these companies face most imperative challenge in providing and maintaining service quality.
Service quality is an input of customer trust which becomes satisfaction and lead to loyalty as
an output. But the research in the development of e-loyalty is scarce and partial. This paper
attempts to accumulate invented story in order to understand the overall structure of the
formation of e-loyalty. The literature reviewed provides underlying patterns of relationships
between e-banking loyalty and its influencing factors. Such understanding is relevant for
academicians and researchers for furthering the work in this field. The insights into the
previous studies, considered for this paper, are discussed and suggestions for future research
are provided. Dr. G S Gireesh Kumar, Bijoy A P and Ajimon George
 CHAPTER : 3
RESEARCH METHODOLOGY

3.1 INTRODUCTION
Methodology is an essential part of research to find answers to the research objectives.
Therefore, it forms an important part of any study. This chapter focuses on the design and
research method utilized in the study. This chapter also deals with the procedure followed to
collect, process and analyze the data.

3.2 TYPE OF RESEARCH

In order to study the objectives, descriptive research design is used, where focus is on surveys
and fact- finding enquiries through structured questionnaire. The study makes use of a
quantitative research approach as the quantitative research allows the researcher to examine
relationships among variables.

3.3 SAMPLING DESIGN

3.3.1 SAMPLING METHOD

Snowball sampling method is used in the study. In this type, researcher requested to
respondents to provide contact details of other Internet Banking Customers to Andheri to
Bandra Area known to them.

3.3.2 SAMPLE SIZE

This refers to the number of items to be selected from the universe to constitute a sample. A
sample is a selected part of a larger population whose properties are studied to gain
information about the whole population for the purpose of a survey. It should be optimum,
i.e. it should fulfill requirements of efficiency, representativeness, reliability and flexibility.

The sample size for the study consisted of 90 customers using internet banking services and
who are residing in Andheri to Bandra area Mumbai Suburban.
 3.4 DATA COLLECTION TOOLS / INSTRUMENTS

3.4.1 PRIMARY DATA : QUESTIONNAIRE METHOD

Data is collected to answer the research questions. For the purpose of the present study, data
is collected from both primary as well as secondary sources. The researcher developed a
questionnaire as a measurement tool to collect data from the primary source. It was
developed according to the objectives and variables of this study. The researcher intended
that the questionnaire be simple and the questions be straightforward and to the point. The
questions were categorised as under:

Table - Description of Questionnaire

Question Number Description of Question

Q. 1 to 5 Demographic details of beneficiaries like Age, Gender,

Educational Qualification, Occupation, Income Level etc.
Q. 6 to 9 Details of Bank types, How frequently use IB services, How
long have you been using IB services, How many times use
IB Services in a month
Q. 10 & 11 Table of Satisfaction Level of beneficiaries from
services/facilities provided in IB Services, Various Problems
faced by beneficiaries in IB Services.

Questions with multiple choice responses were asked. For measuring the satisfaction level
and problems faced by beneficiaries, Likert Scale is used. Likert Scale facilitated the
researcher to urge a respondent to truthfully convey the degree of acceptability or
unacceptability, with a variety of statements. A copy of the questionnaire is attached in the
Annexure. The advantage is that it is simple to administer easy to tabulate and analyse.
 3.4.2 SECONDARY DATA

Secondary data means data that are already available they refer to the data which have
already been collected and analyzed by someone else. We have used for it following method
Internet and journals of company. The search was done on internet and related magazines,
company‟s websites to extract relevant information. The other necessary information
regarding all Banks products and other bank products and offerings were obtained through
printed source such as Hand outs, Pamphlets, Advertisements and circulars etc.

3.4.3 TOOLS AND TECHNIQUES

As no study could be successfully completed without proper tools and techniques, same with
my project. For the better presentation and right explanation used tools of statistics and
computer very frequently. Basic tools which used for project from statistics are-
● Bar Charts

● Pie charts

● Tables

Bar charts and pie charts are really useful tools for every research to show the result in a
well clear, ease and simple way. Because used bar charts and pie charts in project for
showing data in a systematic way, so It need not necessary for any observer to read all the
the oretical detail, simple on seeing the charts anybody could know that what is being said.

3.5 DATA PROCESSING AND ANALYSIS

The present study is based on quantitative data, hence on collection of all the completed
questionnaire from the respondents, the data was tabulated Graphs are used to analysis and
interpretation of data.
 CHAPTER - 4
DATA ANALYSIS AND INTERPRETATION

An analysis is made on the responses received from 90 sample users of Internet banking. The
objective of the report is to find out the customers satisfaction on internet banking service
quality, to find out the customers„ perception towards internet banking, & to find out the
needs of the current and future customers.

The following information on contains the data interpretation on of the questionnaire. The
respondents responses for the questions have been interpreted and a finding has been made
based on the respondent responses.

Analysis is made only from the information collected through questionnaire no other data or
information is taken in to consideration for purpose of the analysis.
GRAPHICAL PRESENTATION

Fig. 4.1. Age Wise Composition

Source : Primary Data

Table 4.1 Age Wise Composition

AGE FREQENCY PERCENT

20-30 63 70
31-40 14 15.6
41-50 8 8.9
51-60 3 3.3
60 & Above 2 2.2
TOTAL 90 100

Interpretation:

From the above data , it is observed that 70% of the respondents are belonging to the age
category 20-30 yrs. So it is concluded that the majority of the respondents fall under this
category.
 Fig. 4.2 Gender Wise Composition

Source : Primary Data

Table 4.2 Gender Wise Composition

GENDER FREQUENCY PERCENT

Male 59 65.6%
Female 31 34.4%

Total 90 100

Interpretation:

From the above data it is observed that 65.6% of the respondents are males & 34.4% are
females. So it is concluded that the majority of the respondents are males.

Fig. 4.3 Qualification Wise Composition

 Source : Primary Data

Table 4.3 Qualification Wise Composition

EDUCATION FREQUENCY PERCENT

Below SSC 1 1.1

SSC 5 5.6

HSC 25 27.8

UG 35 38.9

PG 24 26.7

Total 90 100

Interpretation:

From the above data, it is observed that 38.9% of the respondents are under graduated
where as 27.8% have HSC, 26.7% respondents post graduated, 5.6% have SSC & the
remaining 1.1% being below SSC.

Fig. 4.4 Occupation Wise Composition

 Source : Primary Data

Table 4.4 Occupation Wise Composition

Occupation Frequency Percent

Student 26 28.9

Service 50 55.6

Business 10 11.1

Retired 3 3.3

House-wife 1 1.1

Total 90 100

Interpretation:
From the above data, it is observed that 55.6% of the respondents are in service while
only 28.9% are in students & 11.1% are business, 3.3% respondents are Retired & 1.1%
respondents house wife. So it is concluded that the majority of the respondents fall under
the service category.

Fig. 4.5 . Income Wise Composition

 Source : Primary Data

Table 4.5 Income Wise Composition

Income Level Frequency Percent

5000-15000 25 31.3

15001-25000 34 42.5

25001-35000 11 13.7

Above 35000 10 12.5

Total 80 100

Interpretation:

From the above data, it is observed that 42.5% of the respondents are belonging to the
income category of Rs. 15001-25000 p.m. So it is concluded that the majority of the
respondents fall under that income level.
 Fig. 4.6 Types Of Bank Wise Composition

Source : Primary Data

Interpretation :

As per the respondents 47.8% of respondents have Private bank & 26.7% respondents have
Co-operative bank Remaining 25.6% respondents public bank.
 Fig. 4.7. Frequently Use Of Internet Banking Service Composition

Source : Primary Data

Interpretation :

As per the respondents 43.3% of the respondents Sometimes use Intenet Banking Services
& 37.8% of the respondents Always use the Internet Banking Services & remaining 18.9%
of the respondents Rarely use Internet Banking Services.
 Fig. 4.8 Comparison of People Started Using Internet Banking Services

Source : Primary Data

Interpretation :

As per the respondents 41.1% of the respondents has recently started using Internet Banking
Service i.e less than 1 year & 28.9% of the respondents have started using Internet Banking
from 1 to 2 years & 18.9% of the respondents have started using Internet Banking Services
for past 3 to 4 years & remaining 11.1% of respondents are using Internet Banking Services
for a long time i.e 5 & more years.
 Fig. 4.9 Comparison of People Started Using Internet Banking Services in a Month

Source : Primary Data

Interpretation :

As per the respondents on an average of 25.6% of the respondents use Internet Banking
Services Once in a Week in a month & 23.3% of the respondents use Internet Banking
Services Alternative day in an month & 21.1% of the respondents use Internet Banking once
in a month & 18.9% of the respondents use Internet Banking Services on daily basis and
remaining 11.1% of the respondents use Internet Banking Services in an between 15 days.
 Fig. 4.10 Satisfaction Level Of Ib Services Wise Composition

Source : Primary Data

Interpretation :

As per the above chart the respondents are Overall Satisfied with the following aspects of
Internet Banking Services that have been provided to them and they are as follows 1
Convenience, 2 Security, 3 Transaction Efficiency, 4 Speed, 5 User Friendly.

Fig. 4.11 Measure aspects using of Internet Banking Services

 Source : Primary Data

Interpretation :

As per the above chart the respondents mostly use Internet Banking for Bill Payment, &
Fund Transfer & then Balance Check & Sometimes the respondents use Internet Banking
Service for Bank Statement & for other purpose and some of the respondents Rarely use
Internet Banking Services for Application for Cheque book DD, Debit card and for
Investment.

CHAPTER – 5
 RECOMMENDATIONS

⮚ Safe and Security features of webpage need to be improved because most of the
respondents feel that Internet Banking is not safe and secure. People are so much
conscious about the security measures whether it might provide privacy and security
for the information that entered.

⮚ Out of the mentioned problems, it is founded that Low speed and Connection problem
due to server errors are the major problems faced by Users. Therefore banks need to
take corrective measures to improve their server efficiency.

⮚ Banks has to conduct various awareness programs in order to improve the level of
awareness and knowledge of customers about the functioning of Internet Banking and
its attributes.

⮚ Only 34.4 % of the respondents being female, the bank can look forward to design
few more schemes to attract the female customers.

⮚ Since a large number of the respondents are unaware of the services provided
through Internet Banking such as posting a list of services that are rendered to the
customers inside the bank premises, demo of the services in the bank website; can be
done to make the customers aware, and use the services provided through Internet
Banking.

CHAPTER - 6
 CONCLUSION

The result of this research indicated that transaction efficiency, ease of use, service
content are important determinants of customer's satisfaction with Internet Banking.
However, privacy and security problems, low speed and connection problem due to server
errors are the main/ major problems faced by the IB users. It indicates that as cost and time
customers spent on internet banking increases, customer satisfaction will decrease. Therefore,
this paper suggests certain policy implications for the banking industry. Thus, the proposed
model can be of help in planning efforts towards increasing consumer's satisfaction. By
improving these factors, bank management may increase adoption and satisfaction among
Internet bank users. These also imply initiating appropriate actions to enhance basis facilities
and improve privacy and security on Internet Banking. This in essence will improve business
transaction and thus increase overall Customer Satisfaction.

Although the use of IT is expected to lead to a favourable impact on bank

performance, the banks need performance measures which are related to customers to
improve their performance and minimize waste of productive customers. The way forward
therefore, is for the banks to increase awareness about the use of this technological tool to
help them capture relevant and timely information for decision making. Managing E-banking
demands analytical ability and attention to details, for the satisfactory performance of this
system, these determinants should be mixed in their right prescription to get high quality
Internet Banking and incorporate newer ideas. There is needed to make concerted efforts
towards operational efficiency of Internet Banking.

BIBLIOGRAPHY
https://www.scribd.com/

https://en.wikipedia.org/wiki/Digital_banking

https://www.bankrate.com/glossary/i/internet-bank/

http://www.economicsdiscussion.net/essays/banking-essays/essay-on-internet-banking/17828

http://saspjournals.com/wp-content/uploads/2014/04/SJEBM-1254-56.pdf
 QUESTIONNAIRE

The objective of the study is to Analysis of Customer Satisfaction on Internet Banking

Service Quality With Special Reference to Andheri to Bandra Area. I will be thankful to
the respondents, if you will spare 4-5 minutes from your valuable time to answer this
questionnaire, which will help, the finish my project towards the partial fulfillment of
MCOM Degree.

1. Age :

20-30 □ 31-40 □ 41-50 □ 51-60 □ 60 & Above □

2. Gender :

Male □ Female □

3. Educational Qualification :

Below SSC □ SSC □ HSC □ UG □ PG □

4. Occupation:
Student □ Service □ Business □ Retired □
House-wife □

5. Income Level :

Rs. 5000 – Rs.15000 □ Rs. 15001- Rs 25000 □

Rs. 25001- Rs. 35000 □ Above Rs. 35000 □
6. Types of your Bank :

Private □ Public □ Co-operative □

7. How frequently do you use Internet Banking Services :

Always □ Sometimes □ Rarely □

8. How long have you been using Internet Banking Service :

Less than 1year □ 1-2 year □ 3-4 years □

5 & more years □

9. How many times on an average you use Internet Banking Services in a month :

Everyday □ Alternative day □ Once in week □

Fortnight (15 days) □ Once in month □

10. How would you rate your satisfaction with the following aspects of the Internet
Banking Services you have received or accessed :

Extremely Satisfied Neutral Dissatisfied Extremely

Satisfied Dissatisfied
Speed
Convenience
Transaction
Efficiency
User friendly
Security
Overall
11. Purpose of using Internet Banking Services :

Always Sometimes Rarely Never

Bill Payment
Fund Transfer
Balance Check
Bank Statement
Application for Cheque book,
DD, Debit Card etc.
Investment
Others

Thank You For Your Time !