Prospects and Challenges in E-Banking: A Perception Study: Master Degree in Commerce

PROSPECTS AND CHALLENGES IN E-BANKING:
A PERCEPTION STUDY
DISSERTATION SUBMITTED TO MANGALORE UNIVERSITY IN

PARTIAL FULFILMENT OF THE REQUIREMENT FOR THE AWARD
OF
MASTER DEGREE IN COMMERCE
(M.COM)
SUBMITTED BY
AKSHAYA KUMAR
REG.NO. 193101003
UNDER THE GUIDANCE OF

MR. ABHINANDAN
LECTURER
DEPARTMENT OF POST GRADUATE STUDIES AND RESEARCH IN

COMMERCE
MANGALORE UNIVERSITY
MANGALAGANGOTHRI - 574199
2020-2021
Electronic copy available at: https://ssrn.com/abstract=3957677

Date:
CERTIFICATE
This is to certify that MR. AKSHAYA KUMAR is a bonafide student of IV Semester,

M.Com (2019-2021 Batch) of this Department.
The dissertation report entitled “PROSPECTS AND CHALLENGES IN E-BANKING:

A PERCEPTION STUDY” has been prepared by him in partial fulfilment of the requirements
for the award of the degree in Master of Commerce under the supervision of
MR. ABHINANDAN, Lecturer, Department of Studies in Commerce, Mangalore University,
Mangalagangothri.
Date: ( DR. VEDAVA P)

Place: Mangalagangothri Chairman

Date:
CERTIFICATE
This is to certify that this project report titled “PROSPECTS AND CHALLENGES IN
E-BANKING: A PERCEPTION STUDY” is a bonafide record of work done by
MR. AKSHAYA KUMAR under my guidance and supervision during the period January 2021
to September 2021 and that the dissertation has not previously formed the basis for the award of
any Diploma, Degree, Fellowship, Associateship or another similar title.
Date: (MR. ABHINANDAN)
Place: Mangalagangothri Guide

DECLARATION
I, MR. AKSHAYA KUMAR do hereby declare that the study on “PROSPECTS AND
CHALLENGES IN E-BANKING: A PERCEPTION STUDY” is an original work written by
me during the year 2020-2021 under the guidance of MR. ABHINANDAN, Lecturer Department
of Studies in Commerce, Mangalore University, Mangalagangothri, Konaje.
I also declare that this research is based mainly on primary data that has not been
submitted to any other university or institution to award any degree or diploma.
Date: AKSHAYA KUMAR

Place: Mangalagangothri Reg. No. 193101003

ACKNOWLEDGEMENT
I must record my gratitude first of all to almighty God for making me sail comfortably
throughout the project study. This project study has been possible through the direct and indirect
assistance of a various person to whom wish to express my appreciation.
First and foremost, I wish to express my gratitude to our chairman, DR. VEDAVA P, for
permitting me to undertake this study.
I express my deep sense of gratitude to my project guide MR. ABHINANDAN, Lecturer,

Department of studies in commerce, Mangalore University, for his wholehearted help. Scholarly
suggestions, continuous motivation and valuable guidance. Without his support, this work would
not have been possible to complete successfully.
I also express my profound gratitude towards all professors, assistant professors, faculty
members, and non-teaching staff of the Department of studies in commerce for their support,
encouragement, motivation, and guidance in the course of my study.
I would like to thank my beloved parents and friends for their support, motivation, and
encouragement.
Yours faithfully,
AKSHAYA KUMAR
REG. NO. 193101003

CONTENT
CHAPTER NO. TITLE PAGE NO.
Chapter 1 INTRODUCTION 1-4
Chapter 2 LITERATURE REVIEW 5-11
Chapter 3 CONCEPTUAL FRAMEWORK 12-25
Chapter 4 DATA ANALYSIS AND INTERPRETATION 26-53
Chapter 5 FINDINGS, SUGGETIONS AND CONCLUSION 54-58
BIBLIOGRAPHY 59-60
ANNEXURE 61-67

LIST OF THE TABLES
TABLE NO. PARTICULARS PAGE NO.
4.1 Gender of the Respondents 26
4.2 Age Profile of the Respondents 27
4.3 Marital Status of the Respondents 28
4.4 Educational Status of the Respondents 29
4.5 Income Profile of the Respondents 30
4.6 Professional Profile of the Respondents 31
4.7 Living Area of the Respondents 32
4.8 Number of the Banks Respondents Transacts 33
4.9 Usage of E-banking 34
4.10 Mode of Banking 35
4.11 Frequency of E-banking 36
4.12 Years of Using E-banking Service 37
4.13 Reasons to Use E-banking 38
4.14 Satisfaction with E-banking Service 39
4.15 Utility of E-banking 40
4.16 Opinion of Service Charge 42
4.17 Factor Motivate to Use E-banking 43
4.18 Perception about E-banking System 44
4.19 Degree of Confidence in Using E-banking 45
4.20 Reasons for Not Using E-banking 46
4.21 Purpose of Using E-banking 47
4.22 Difficulties in E-banking 49
4.23 Recent Services Provided by the Banks 50
4.24 Customers’ Attitude towards E-banking 51

LIST OF FIGURES
FIGURE NO. PARTICULARS PAGE NO.
4.1 Gender of the Respondents 26
4.2 Age Profile of the Respondents 27
4.3 Marital Status of the Respondents 28
4.4 Educational Status of the Respondents 29
4.5 Income Profile of the Respondents 30
4.6 Professional Profile of the Respondents 31
4.7 Living Area of the Respondents 32
4.8 Number of the Banks Respondents Transacts 33
4.9 Usage of E-banking 34
4.10 Mode of Banking 35
4.11 Frequency of E-banking 36
4.12 Years of Using E-banking Service 37
4.13 Reasons to Use E-banking 38
4.14 Satisfaction with E-banking Service 39
4.15 Utility of E-banking 40
4.16 Opinion of Service Charge 42
4.17 Factor Motivate to Use E-banking 43
4.18 Perception about E-banking System 44
4.19 Degree of Confidence in Using E-banking 45
4.20 Reasons for Not Using E-banking 46
4.21 Purpose of Using E-banking 47
4.22 Difficulties in E-banking 49
4.23 Recent Services Provided by the Banks 50
4.24 Customers’ Attitude towards E-banking 52

CHAPTER 1
INTRODUCTION
1.1 Executive Summary

The study was conducted on "Prospects and Challenges of E-banking: A Perception
Study." The study aims to know the customers' perception of E-banking. The expansion of
information technology has led to a new form of banking. Based on the customer's physical
presence, traditional banking is only a part of banking activities. Electronic banking has emerged
in the last few years, adopting new distribution channels like Internet and mobile services. The
usage of E-banking by enterprises came in E-banking existence in the mid-'90s. After
demonetization in 2016, digital banking has grown at a faster pace. Most Indian banks have
launched their E-banking and mobile banking websites to facilitate the customers with the online
availability of almost all banking products. E-banking is now a standard mode of secure and
convenient banking services. The main goal was to allow businesses to improve the quality-of-
service delivery and reduce transaction cost, anytime and anywhere service demand for customers.
Due to the emerging global economy and e-commerce has increasingly become a necessary
component of business strategy and a strong catalyst for economic development. Electronic
banking products and services include wholesale products for corporate customers and retail and
fiduciary products for individual customers. Foreign commercial banks and private commercial
banks are relatively in a better position to provide online banking services. Dutch bangle bank is
acting as a pioneer in this sector. Customers who are habitual with online banking think that online
banking services are relatively good than a manual system. However, they are not satisfied with
the quality of services and bank personnel behavior to that extent. People are now getting interested
in online transactions, and the government has laid out some plans for developing CT
infrastructure. However, it increased the vulnerability to fraudulent activities like spamming,
phishing, and credit card fraud. Then, the main challenge that opposes electronic banking is
ensuring banking security. In this context, this paper aims to provide an overview of the electronic
banking service highlighting various aspects, investigating various challenges and risks, and
discussing some proposed solutions.
1.2 Objectives of the Study

1. To understand the customer perception regarding E-banking.
2. To identify various E-banking services adopted by banks.
3. To learn about the prospect available in E-banking.
4. To study the challenges that appeared in E-banking.
5. To find out the advantages of E-banking to customers.
6. To suggest the improvement of E-banking.
1.3 Hypothesis of the Study

The perception is that consumers are aware of the use of e-banking.

1.4 Scope of the Study
The study on prospects and challenges of e-banking is mainly aimed at identifying e-banking
perceptions, and it helps to understand the prospects and challenges of e-banking.
1.5 Research Methodology

Research Methodology is needed to follow a systematic step-by-step approach to solve the
research problem.
1.5.1 Research Problem

Defining the research problem is the first step in the research process. The e-banking service will
play an essential role in some decades. Banks implements online banking services to improve their
services, and also, it saves time and paperwork. The government encourages the adoption of e-
banking services. E-banking is one of the most advanced technologies, but it also has some
challenges. Many people are unaware of the challenges involved in e-banking. This study focuses
on challenges that appeared in E-banking and also provided a clear picture of prospects available
in E-banking service.
1.5.2 Population
The study covered E-banking users from different parts of rural, semi-urban, and urban areas of
Dakshina Kannada District.
1.5.3 Research Area

This study is restricted to various parts of the Dakshina Kannada District's rural, semi-urban, and
urban areas. Dakshina Kannada is a district of Karnataka state in India, with its headquarters in the
port city of Mangalore. The district covers an area nestled between the Western Ghats to its east
and the Arabian Sea to its west. Dakshina Kannada receives abundant rainfall during the Indian
monsoon. Udupi District borders it to the north, Chikmagalur district to the northeast, Hassan
district to the east, Kodagu to the southeast, and Kasaragod district of Kerala. It is the only district
in Karnataka state to have all modes of transport like road, rail, water, and air due to the presence
of a significant hub, Mangalore. This financial district is also known as the Cradle of Indian
banking.
1.5.4 Sample Size

For this study purpose, the primary data was collected from 320 respondents of E-banking users
from the different parts of rural, semi-urban, and urban areas of Dakshina Kannada District.
1.5.5 Research Techniques

Simple percentage techniques were used.
1.5.6 Data Collection Method

In order to have the accuracy, this study has gathered the desired data through the primary and
secondary sources of data.
A. Primary Data
The primary data was collected by discussions with respondents of E-banking users with the
help of the Questionnaire.
B. Secondary Data
The Secondary data was collected from various journals, Websites, Different Research work
done previously, Research papers.
1.6 Limitations of the Study

➢ The study is limited to only Dakshina Kannada District.
➢ The result of the study is based on the 320 respondents only.
➢ The most considerable constraint is non-response from e-banking users.
➢ Due to the pandemic situation, the study restricted questionnaire respondents only. We
cannot conduct interviews and avoided visiting banks.
➢ Due to time and cost constraints, the study is restricted to Dakshina Kannada District.

1.7 Chapter Scheme
Chapter 1: Introduction
Introduction to E-banking
Chapter 2: Literature Review

The literature reviewed related to E-banking.
Chapter 3: Prospects and Challenges of E-banking

Theoretical Framework of E-banking service.
Chapter 4: Data Analysis

Analysis and Interpretation of Data collected.
Chapter 5: Findings, Suggestions, and Conclusion

Suggestions to the E-banking users and banks.

CHAPTER 2
LITERATURE REVIEW
The review of existing literature provides a base and insight for the study, which will make the
researcher able to formulate the right plan for investigation. The literature review is a written
overview of major writings and other sources on the selected topic. The following is the literature
review related to the present study, which provides a description, summary, and evaluation of each
source.
Jayaram J. (July 2018) researched problems and prospects of E-banking regarding banks in
Kerala. The survey result revealed that 70% of customers were aware of E-banking, and 60% of
bankers feel that it increases customer service. He concluded that a higher security factor would
encourage banking customers to use e-banking and offer e-banking to every customer.
Dilara Idam (February 2014) has researched consumer perceptions of Internet banking services
operated by the Turkish banking system. The study provided that more and more consumers are
beginning to prefer e-banking instead of traditional banking. Turkey ranks fifth in European
countries for Internet use, and banks use the digital platform to attract customers and promote their
services.
K. Anita (February 2019) studied the challenges and opportunities encountered in e-banking in
India. It presents a clear picture of e-banking on the challenges presented and the future available
and classifies e-banking. The revival of e-banking has strongly affected the strategic business
considerations of banking in India. So now, with the lack of adequate security, infrastructure, and
internet penetration, it is significant to take the necessary action to boost e-banking.
Ainin Sulaiman, Lim C.H., Alice Wee (2005) researched by analysing local bank websites on
the future and challenges of e-banking in Malaysia. The study examines a wide variety of e-
banking products and describes adopting an e-banking service with higher salaries and higher
positions. The study explains that adopters perceive e-banking as an easy and convenient way and
that age, income, and position influence the adoption of e-banking. It can conclude here that
adopters perceive e-bankindg as an easy and convenient way to conduct banking transactions.
Mr Tonape Chandrasekhar Laxman (2015) studied consumer perception and awareness of e-
banking in the Solapur district. This study deals with consumer perception of e-banking, attention,
and the use of e-banking services provided by banks in the Solapur district. The study also suggests
increasing bank customer awareness. It concluded that there was an urgent need to raise awareness
among the general public about the security of money transacted through e-banking.
Sriram Devulapally, Sai Karthik Oruganti surveyed the challenges and opportunities of e-
banking in India. The discussion throughout the paper revolves around the challenges faced by
Indian banks in e-banking, the opportunities to raise awareness, and the measures adopted for safe
and secure e-banking. The paper attempts to discuss the best banking practices that exist in the
world.

Dr Lakshmi Bhai P.S. (2018) analysed the problems and prospects of electronic banking in India.
The main objective of this study is to identify the challenges and opportunities in e-barking in
India. Challenges and opportunities are discussed throughout the paper to provide a clearer picture
of e-banking in India. And this paper suggests that challenges are solved, and options exploited
even if there is a need for more innovative solutions
With particular reference to the role of RBI in safe banking practices, Jarro Jasmine, Ashwathi
Rajan (2018) researched the concept of e-banking and I.T. challenges in India. It examines the
problems and challenges of India’s e-banking and banking sector. This paper examines the role of
the RBI in secure banking practices, the various e-banking services adopted by India, the
challenges and issues of e-banking, and the benefits to consumers. The study provides a picture of
acceptance of change and permeates this banking system changing by the younger generation.
Panda S.K., Dr Mishra D.P. (November 2017) discussed in their empirical study on consumer
perception of e-banking concerning rural banks in the Odisha district. With e-banking facilities
offered by banking institutions, customers are now trading online at their homes and offices. This
paper attempted to study the e-banking facilities offered by rural banking in a selected district to
understand consumers’ perceptions of e-banking services.
In the paper “Electronic Banking in India: Innovations, Challenges, and Opportunities,” Monisha,
Kanika Bhutiraja, Jatinder Kaur (2017) discuss the need for innovation in the field of e-banking
in India and attempt to shed light on current benefits, opportunities, and changes. From the banking
sector to enhance e-banking in India, the paper also highlighted the option available in India to
develop e-banking.
Miss Amina Farooq, Miss P. Rajani (October 2017) analysed the progress achieved by internet
banking in India on their e-banking issues and challenges. This paper highlights the challenges
faced by Indian banks in adopting technology. While there are many challenges and obstacles to
implementing the e-banking system in India simultaneously, e-banking has a bright future.
Dr Navapreet Singh Sidhu (June 2013) conducted a study on electronic banking perception and
acceptability: Consumer study of selected banks. This study is on the intent and understanding of
e-banking. Although we are 100% aware of e-banking, we can understand from the discussion of
this paper that the security of fund transfers, the speed of check transfers, the speed of online
transactions, and all aspects of e-banking are minimal.
Pupiel Felix (April 2014) researched the future and challenges of e-banking in Gana with
particular reference to Zenith Bank, Sunyani. The study identifies consumers’ benefits from e-
banking, such as time savings and speed in banking transactions. This study indicated that
customer satisfaction and completion by other banks were the major influencing factors for the
adoption of e-banking. The respondents of this study believed that the bank’s substantial education
and marketing of e-banking products would attract more customers.

Mrs Namitha Krishnan, Dr Sheeja R (2020) conducted a survey on consumer issues and the
future of e-banking with particular reference to the Palakkad district of Kerala. Researchers in this
study identified the challenges, current opportunities, and prospects of the e-banking system.
Banks face a myriad of challenges, but there is still a need to develop more solutions. As a result,
opportunities can potentially obtain.
Bader M. Almohaimmeed (January 2012) studied latent users of Internet banking in Saudi
Arabia in his paper Consumer Behavior on Internet Banking. The paper adds to the body of
knowledge in technology acceptance by developing a comprehensive model for Internet banking
acceptance. The study’s primary outcomes are two factors, namely the utility and service visibility,
that directly influence internet banking use. The results revealed that customer confidence in online
banking could develop by focusing on any theoretical construct of trust perceived by the credibility
of Internet banking.
Anushriya Bhargava researched “The opportunities and challenges of e-banking in India.” This
study summarises India’s e-banking assessment, its current status, and future opportunities and
challenges. The research provides information on the challenges and opportunities of e-banking
facing bankers and consumers.
V Vimala (2016) conducted a study on “An evaluative study on internet banking security among
selected Indian bank customers.” This study guides the current structure of internet banking
security. It highlights the awareness level of customers for using internet banking and their
perception and satisfaction towards internet banking with new technologies and its functioning.
This paper helps to know in detail about development in the banking industry with advancement
in technology. It also helps in understanding different services offered in internet banking.
Ultimately this would help in understanding the benefits of the internet banking industry.
Sadaf Firdous (April 2017) made a study on “Impact of internet banking service quality on
customer satisfaction.” The study helps the banks and policymakers better understand internet
banking dimensions and their contributions towards customer satisfaction. Since there is no much
research has been done in this regard in India which has become the hub of E-banking development
after the recent demonetisation by the present government, enabling people to go cashless and
enhance a Digi economy. The research paper aims to contribute to the existing knowledge by
investigating internet banking service quality on customer satisfaction in New Delhi. The study
revealed that efficiency, privacy, and the website design are the major integral determinants of
internet banking service quality.
Shilpan Vyas made a study on “Impact of E-banking on traditional banking services. This research
paper introduced E-banking, giving the meaning, function, types, advantages, and limitations of
E-banking. The paper also shows the impact of E-banking on traditional services and, finally, the
result documentation. The study concluded by saying E-banking is a borderless entity permitting
anytime, anywhere, and anyhow banking. The goal is to reduce the risk to the IT system and its
data to an acceptable level.

Aaliya Noreen (2015) studied “Awareness of electronic banking and the customer’s level of
satisfaction in Pakistan.” The research explores the level of awareness about electronic banking
among the people of Pakistan. The result shows that banks in Pakistan are providing good banking
and the future of e-banking is bright in Pakistan. The researcher also finds that e-banking is fast
growing sector because people are becoming more aware of it.
Ashutosh Arun (July 2019) conducted “A study on awareness of internet banking services in
college students of Lucknow city.” The paper is attempted to study the awareness of internet
banking facilities among college students. The research is related to internet banking services only,
which means that it considers only awareness of internet banking services in students. College
students in Lucknow city open saving accounts in nationalised banks. They know different banking
services very well, and students are used to net banking and trust in net banking.
Harihara Sudhan R., Pavitra V. made research on “A study on customer perception and
awareness in the usage of internet banking.” This study describes the current state of internet
banking. It presents the related technology, security issues, and data drawn from a primary survey
of some highly reported banks offering internet banking facilities and services. It also established
a positive relationship between internet banking and customer satisfaction.
Amutha D. (October 2017) researched “A study of consumer awareness towards e-banking.” The
paper with the consumer perception towards e-banking system related to consumer awareness
towards e-banking with particular reference to Tuticorin District of Tamilnadu. According to this
study, the researcher concludes that most bank customers are aware of e-banking services. The
banks future has to take necessary steps to educate the customers regarding the new technology
and other services offered by the banks. Banks may extend customer meeting time with bank
officials, and also friendly approach is necessary. The research report is helpful to know the
customer awareness of e-banking systems and the risk involved in e-banking systems.
Salman Khalid, Babak Mahmood, Muzaffar Abbas, Shabbir Hussain (November 2011)
surveyed “Customer satisfaction with service quality in conventional banking in Pakistan.” This
research is an empirical study to evaluate the customer satisfaction of the e-banking industry in
Pakistan based on various levels of customer perception regarding service quality. This research
result indicates that customers perceive the highest satisfaction in the responsiveness are and
lowest in the tangibles area. To be successful in the banking sector, banks must provide service to
their customer that at least meets or better exceed their expectations. This study will provide some
guidelines to the policymakers of banks to decide to improve the quality of services in banks
Pakistan banking services.

Richard Selassie Bebli made a study on “The impact of internet banking on customer satisfaction
in the banking sector of Ghana.” The study aims to fill the gap in the literature by focusing on the
impact of internet banking service quality on customer satisfaction in the banking sector. This
study determines the role of demographic values of usage of internet banking. It identifies the
correlation between the service quality of internet banking and customer satisfaction. This study
also recommended that banks invest in understanding the needs of customers of interest banking
and try as much as possible to meet their various needs associated with the services provided by
interest banking.
C.L. Jeba Melvin (July 2013) researched “Attitude towards internet banking in Kanyakumari
District.” The study has been undertaken to highlight customers’ attitudes towards internet banking
of five nationalised banks viz. SBI Group, Indian Overseas Bank, Canara Bank, Indian Bank and
Syndicate Bank, and three private sector banks viz. HDFC Bank, ICICI Bank, and AXIS Bank.
The study indicates only the awareness and attitude of customers towards internet banking. The
research does not include the awareness and attitude of bank employees, including bank managers.
The study suggested that ways and means improve the attitude level of customers towards internet
banking and the service rendered by the banks.
S.P. Dhandayuthapani (May 2012) surveyed “E-banking practices and customer satisfaction in
Thanjavur District, Tamilnadu.” The study throws light on the e-banking services provided by the
banks in the study area, and this research study attempts to analyse how the customers are satisfied
with the e-banking services provided by the banks. The study is helpful to draw up a different
policy for improving customer satisfaction with e-banking practices.
Suja Krishna (May 2018) made a study on “Customer perception towards the usage of e-banking
services.” The result of the study helpful to generalise the behaviour of respondents the perception,
preference, and adoption of e-banking facilities. This study enables the formulation of programs
for motivating more and more customers to utilise e-banking facilities.
Kadam Asha Dadasaheb (October 2015) researched “A study of e-banking services provided by
cooperative banks in Nashik District.” The study has enlightened the prospects and problems in
adopting e-banking technology in cooperative banks. The paper is significant from the point of
view of cooperative banks, who have learned the benefits; they could derive in enhancing their
business through providing new customer service. The policymakers may find some that will
strengthen the cooperative banks in the state and the nation.
A. Mariappan (April 2017) surveyed “A comparative study on e-banking services of SBI and
ICICI at Pudukkattai District.” This research is based on the customers’ awareness regarding e-
banking services. It deliberates the estimation of the customers regarding the e-banking services
provided by the designated banks and the potentials of the e-banking services in the area of
reliability receptiveness, security, easy use, convenience, and proficiency. Also, the research
examines the problems faced by customers while using e-banking services. The paper appraises
the association between the actions assumed through e-banking services by the customers, the
potentials of e-banking services, and problems of e-banking services.

G. Chandrakala (December 2017) made “A study on e-banking implementation of Indian
banking sectors in Tamilnadu State.” The study has analysed the overall perception of customers
regarding the services of e-banking. Age and occupation are the essential demographic factors in
the banks used to measure the customers’ perception of e-banking services. E-banking will be
successful for banks only when they have committed to e-banking and a deeper understanding of
customer needs. The study concluded that different age groups of customers have different
perceptions towards e-banking services.
Rashmi Sharma (September 2014) researched “Prospects and Challenges in E-banking: A case
study of selected Banks providing e-banking services in Rajasthan.” The research was conducted
to find out the solution to the problems presented through applying scientific procedures. The
prime objective of this study is to discover facts and reality that are covert and yet have been
undiscovered. Every research has its definite objective. Objectives are the goals researchers set out
to attain in the study. They inform a reader what researchers want to attain through the study. It is
essential to word them clearly and precisely. This study will be focused on the banking institutions
providing e-banking services. For the intensive study of the banking institutions providing e-
banking services in Rajasthan, the researcher cannot cover all the banking institutions. So, this
study will cover the State Bank of India, Bank of Baroda, ICICI Bank, and HDFC Bank.
V. Raja, Joe A. (2012) surveyed “Global e-banking scenario and challenges in the banking
system”. This paper attempts to explore the various levels of internet banking services Provided
by banks using secondary data. It also compares the traditional banking systems with net banking.
It lists the various advantages of internet banking and the successful security measures adopted by
different banks for secured banking transactions. It also analyses how E-banking can be helpful
for the banking industry during this global financial meltdown.
Agarwal R., Rastogi S., Mehrotra A., (2009), researched “Customer’s perspectives regarding e-
banking in an emerging economy” determining factors affecting customer perception and attitude
towards and satisfaction with e-banking is an essential part of a bank’s strategy formulation
process in an emerging economy like India. The study was conducted on respondents taken from
the northern part of India. The significant findings depict that those customers are influenced in
their usage of e-banking services by the kind of account they hold. Their age and profession attach
the highest degree of usefulness to balance enquiry service among e-banking services, consider
security & trust most important in affecting their satisfaction level and find slow transaction speed
the most frequently faced problem while using e-banking.
Khan M. S., Mahapatra S. S., (2009), researched “Service quality evaluation in internet banking:
an empirical study in India”. Demographic analysis of data reveals that gender is hardly a bias for
using and evaluating the service quality of e-banking in most 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 the quality of service on
four dimensions: reliability, accessibility, privacy/security, responsiveness and fulfilment, but
least satisfied with the ‘user-friendliness’ dimension. The empirical findings prioritise different
parameters and provide guidelines to bankers to focus on the parameters on which they need to
improve.
10

Petrus G., Nelson O. N., (2006) surveyed “Borneo online banking: evaluating customer
perceptions and behavioural intention”. The results indicate that perceived usefulness and
perceived ease of use are strong determinants of behavioural intention to adopt online banking.
There is also an indirect effect of computer self-efficacy and prior general computing experience
on behavioural intention through perceived usefulness and perceived ease of use.
Walfried M. L., Chris M., Sharon S. L., (2005) conducted a servey on “The relationship between
consumer innovativeness, personal characteristics, and online banking adoption”. The study
results confirm the positive relationship between internet-related innovativeness and online
banking, they also surprisingly show that general innovativeness is negatively related to online
banking.
11

CHAPTER 3
CONCEPTUAL FRAMEWORK
A bank is a financial institution licensed to receive deposits and make loans. It is a system of
trading in money that involved safeguarding deposits and making funds available for borrowers.
Banking is defined as the business activity of accepting and safeguarding money owned by other
individuals and entities and then lending out this money to conduct economic activities such as
making a profit or simply covering operating expenses.
Banking has come a long way since the days of regular visits to tellers. The banking industry has
evolved rapidly over the past few decades. Banks have become a global corporation operating in
many countries, especially online. Traditional banks optimize their organizational structure to
reduce overhead costs and focus on their core competencies rather than doing everything.
Most traditional banks offer E-banking services as an additional method of providing service.
Further, many new banks deliver banking services primarily through the internet or other
electronic channels. Also, some banks are "Internet-only" banks without any physical branch
anywhere in the country.
3.1 ELECTRONIC BANKING

Electronic Banking is also known as Internet banking, virtual banking, and online banking. E-
banking is an electronic payment system that enables the customer of a bank or a financial
institution to make financial or non-financial transactions online. It is a facility offered by banks
and financial institutions that allow customers to use banking services over the internet.
Electronic Banking can be accessed by any individual registered for online banking at the bank,
having an active bank account, or any financial institution. After registering for online banking
facilities, a customer need not visit the bank every time. It is not just convenient but also a secure
method of banking. Customer IDs and passwords secure net banking portals.
In other words, E-banking is a blanket term used to indicate a process through which a customer
is allowed to carry out personal or commercial banking transactions using electronic and
telecommunication networks. It is a product offered by banks which facilitates online banking,
with the help of which the customer can have access to the bank account in just one click.
In simple words, E-banking refers to a banking arrangement with which the customer can perform
various transactions over the internet, which is end-to-end encrypted. E-banking covers facilities
such as fund transfer, checking account statements, utility bill payments, opening a bank account,
locating the nearest ATM, obtaining financial products and services, applying for the loan, etc.,
using a personal computer, smartphone, laptop, or personal digital assistant.
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3.2 Evolution of E-banking
The story of technology in banking started with punched card machines like accounting machines
or ledger posting machines. The use of technology, at that time, was limited to keeping books of
the bank. If further developed with the birth of online real-time systems and the vast improvement
in telecommunications during the late 1970s and 1980's it resulted in a revolution in banking with
"convenience banking" as a buzzword. Through convenience banking, the bank is carried to the
doorstep of the customer. The 1990s saw the birth of distributed computing technologies and
Relational Database Management systems. The banking industry was waiting for these
technologies. With distribution technologies, one could configure dedicated machines called front-
end machines for customer service and risk control while communicating in the batch mode
without hampering the response time on the front-end machine.
3.3 History
The precursor for the modern home online banking services was distance banking services over
electronic media from the early 80s. the term online become popular in the late 80s and refers to
the use of a terminal, keyboard and TV to access the banking system using a phone line. "Home
Banking" can also refer to using a numeric keypad to send tones down a phone line with
instructions to the bank. Online services started in New York in 1981 when four of the city's central
banks offer home banking services using the videotext. These banking services never become
popular except in France, where the use of videotext was subsidized by the telecom provider and
the UK, where the pestle system was used. The UK's first home online banking services were set
up by the Nottingham Building Society (NBS) in 1983. The system used was based on the UK's
pestle system and used a computer, such as the BBC Micro, or keyboard connected to the telephone
system and television.
The technique (known as a home link) allowed online viewing of statements, bank transfers and
bill payments. For this, a written instruction giving details of the intended recipient had to be sent
to the NBS, who set the details up on the home link system. Typical recipients were gas, electricity
and telephone companies and account with another bank. Details of payments to be made were
input into the NBS system by the account holder via pestle. NBS then sent a cheque to the payee,
and an advice-giving detail of the payment was sent to the account holder. BACS was later used
to transfer the amount directly. Stanford federal credit Union was the first financial institution to
offer online internet banking services to all its members in October 1994.
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3.4 Features of E-banking
1. Provide access to financial as well as non-financial banking services.
2. Facility to check bank balance any time.
3. Make bill payments and fund transfers to other accounts.
4. Keep a check on mortgages, loans, savings account linked to the bank account.
5. Safe and secure banking.
6. It is protected with a unique ID and password.
7. Customers can apply for the issuance of a chequebook.
8. Buy general insurance.
9. Set up or cancel automatic recurring payments and standing orders.
10. Keep a check on investment linked to the bank account.
3.5 Various Forms of E-banking

E-banking promotes paperless transactions. Technology has helped the banking companies reach
the customers' doorsteps by scaling geographical barriers of branch banking and easing the time,
resource, and volume constraints. It comes with several rights, responsibilities, and fees as well.
The range of services covered under E-banking is,
1. Internet Banking
A banking facility is provided to the customers through which the customers can perform some
monetary and non-monetary transactions using the internet, through the bank's website or
application.
2. Mobile Banking
Almost all Banks have designed their mobile applications with which customers can perform
transactions at their fingertips. Four things are required- a smartphone, internet, mobile
application, and mobile banking service enabled in a customer's bank account.
3. ATM
Automated Teller Machine, popularly known as ATM, is one of the most common and initial
services under E-banking. It is not just a machine with which customer can withdraw cash as and
when required, but it also allows them to check their account status, transfer fund, deposit fund,
changes mobile number, and change debit card PIN.
4. Debit Card
Debit cards are used in our day-to-day life to perform the end number of transactions. Debit cards
are linked to the customer's bank account, and so the customer only needs to swipe the card to
make payment at Point-of-Sale outlets, online shopping, ATM withdrawal. In this way, the amount
is deducted from the customer's account directly.
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5. Credit Card
Like a Debit card, a credit card is also a payment card that the bank issue to the customers at their
request, after checking their credit score and history. It enables the cardholder to borrow funds up
to the pre-approved limit and make payments. The limit is granted by the banks which issue the
card. The cardholder promises to repay the amount within a stipulated time, with some changes,
to use a credit card.
6. Smart Card
A smart card usually contains an embedded 8-bit microprocessor. The microprocessor is under a
contact pad on one side of the card. Think of the microprocessor as replacing the usual magnetic
stripe present on a credit or debit card.
The microprocessor on the smart card is there for security. The host computer and card reader talk
to the microprocessor. The microprocessor enforces access to the data on the card. The chips in
these cards are capable of any transaction.
7. Tele Banking
Undertaking a host of banking-related services, including financial transactions from the
convenience of customer chosen place anywhere across the Globe and any time of date and night
has now been made possible by introducing online Telebanking services. By dialling the given
Tele Banking number through a landline or a mobile anywhere, the consumer can access his
account. Following the user-friendly menu, entire banking can be done through the Interactive
Voice Response (IVR) system.
8. Point of Sale (POS)

The point-of-sale system refers to the point of date, time, and place (retail outlet) where the
customer makes a payment using a plastic card for the purchase made or received.
9. Electronic Data Interchange (EDI)

EDI is a new communication mode between businesses electronically using a standardized format,
which was conventionally paper-based.
10.E-Cheque
An E-Cheque is the electronic version or representation of a paper cheque. The information and
legal framework on the E-Cheque are the same as that of the paper cheque. It can now be used in
place of a paper cheque to do any remote transactions.
An E-Cheque works the same way a cheque does. The cheque writer writes the E-Cheque using
one of many electronic devices and electronically gives the E-Cheque to the payee. The payee
deposits the electronic cheque, receives credit, and the payee's bank clears the E-Cheque to the
paying bank. The paying bank validates the E-Cheque and then charges the cheque writer's account
for the cheque.
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11.Electronic Fund Transfer (EFT)
When money is transferred electronically from one bank to another, it is called electronic fund
transfer. It covers direct debit deposits, wire transfers, NEFT, RTGS, IMPS, and others.
12.Telephone Banking
Telephone banking is a service provided by a bank or other financial institution that enables
customers to perform over the telephone a range of financial transactions which do not involve
cash or financial instruments, without the need to visit a bank branch or ATM.
13.Electronic Clearing System (ECS)

An electronic Clearing System is an electronic method of fund transfer from one bank account to
another. It is generally used for bulk transfers performed by institutions for making payments like
dividends, interest, salary, pension, and others.
3.6 Difference between Traditional Banking and E-banking

➢ Traditional banks exist physically to serve the customers. On the other hand, E-banking does
not have a physical presence as services are provided online.
➢ Traditional banking consumes much time as customers have to visit banks to carry out bank
transactions. E-banking does not consume time as customers do not have to visit banks to check
bank balances or transfer money from one account to another. Customers can access their
accounts readily from anywhere with a computer and internet access.
➢ In traditional banking, people have to visit banks only during working hours. In comparison,
E-banking is available at any time and provides 24 hours access.
➢ In the traditional banking system, customers who travel frequently often do not pay much
attention to their finances. However, e-banking customers who frequently travel abroad have
more control over their finances.
➢ Traditional banking customers need to spend money to visit banks. However, e-banking
customers do not spend money to see banks. They can avoid bank fees that are reversible for
certain teller transactions or pay the bill electronically – directly to merchants from their
account. E-banking helps save money on postage.
➢ The cost incurred by traditional banks includes much operating and fixed costs. In e-barking,
such costs are eliminated as the banks do not have a physical presence.
➢ In traditional banks, the employees and clerical staff of the bank can attend only a few
customers at a time. In E-banking, the customers do not have to stand in queues to carry out
certain bank transactions.
➢ Customers can have face-to-face contact in traditional banking. Whereas in E-banking,
customers can have only electronic communication.
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3.7 Challenges faced by E-banking
Online banking has many benefits. Two of the most important are speed and convenience. People
who participate in online banking can access their accounts, view their statements, make
transactions, pay bills, and more, all from their homes or on the go.
However, despite the benefits of online banking, there are also several distinct issues and
challenges in the online banking sector. These are highly significant for banks that offer online
banking and their customers, who depend on the banks to operate effectively.
Here are some of the issues and challenges in the online banking sector that marketers need to be
aware of:
1. Traditional Banking Habits

Despite the benefits of online banking, 49 percent of American adults do not participate in it. This
banking issue happens because traditional banking is what many people are used to, and it can take
time for them to break habits. So, online banking marketers should focus on convincing traditional
banking users to start using online banking services.
These marketing efforts should specifically highlight the numerous benefits of online banking.
They need to show people how online banking can solve traditional banking problems more
efficiently.
2. Security
Security is one of the most significant challenges for online banking marketers. In the past, if a
robber were going to steal a person's bank savings, they would have to break into the bank vault
and make a daring escape with the money. The security was a challenging prospect and involved
a lot of danger and risk. With online banking, cybercriminals need to ascertain certain personal
information to break into a person's account and steal their money. It can be done anonymously
and involves significantly less physical danger than in the past.
In fact, in 2015, roughly 130 million British pounds were stolen from online bank accounts through
fraud in the UK. So, security is still a significant issue for online banks and their customers.
Marketing professionals in the online banking sector need to focus on demonstrating and
explaining the security of online banks to overcome this challenge.
3. Transaction Difficulty
It can be significantly more difficult and time-consuming to deposit or withdraw money from an
online bank. Not only do online banks often have fewer ATMs than their traditional counterparts,
but it also can simply take more extended amounts of time for deposits to be processed and put
into a bank account.
For example, it takes roughly 3-5 days for deposits to show up in accounts for PayPal, one of the
largest online banks. It is an issue that online banking marketers will most likely struggle with
until online banks speed up their transaction times.
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4. Technical Issues
Online banks rely so heavily on their online platforms. Technical issues mean that they can
generate substantial losses if their systems crash or bugs in their code. A single technical issue that
causes a bank to be down for a day could cost the bank millions in losses.It can also wreak havoc
for bank customers who may not make payments or conduct transactions when the site is down.
Fifty-four percent of consumers now use a mobile banking app. So, it is critical not just for banks
to have their online platforms running smoothly but also, their mobile apps. A loss of funds or data
due to a crash can be very worrisome for bank customers. So, marketers should prioritize
alleviating this worry by explaining how account funds will not be lost if technical issues occur.
5. Small Budgets
Many startups have to operate on shoestring marketing budgets before they grow to a larger size.
A small budget can be a significant challenge. If the customer marketing budget is small, then he
needs to focus on the priority expenses.
The inbound marketing strategies of creating a search engine optimized website, making accounts
for all of the most extensive social media networks (Facebook, Linked In, Twitter, other.), and
starting a blog should all be prioritized.
On the website, they should also have an option to allow visitors to join the mailing list.
Furthermore, a good PPC campaign can be an excellent investment for a company. Businesses
make an average of $3 on every $1.60 they spend on AdWords.
3.8 Growth in E-banking

Numerous factors, including competitive cost, customer service, and demographic considerations,
motivate banks to evaluate their technology and assess their electronic banking strategies. The
challenges for national banks are making sure the savings from e-banking technology offset the
costs and risks of conducting business in cyberspace. Some of the market factors that may drive a
bank's strategy include the following:
➢ Competition
Studies show that competitive pressure is the dominant driving force behind increasing internet
banking technology, ranking ahead of cost reduction and revenue enhancement in second and third
places. Banks see e-banking as a way to keep existing customer and attract new to the bank.
➢ Cost Efficiencies
National banks can deliver banking services on the internet at transaction costs far lower than
traditional brick-and-mortar branches. The actual cost to execute a trade will vary depending on
the delivery channel used. The prices are expected to decline.
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➢ Geographical Reach
E-banking allows expanded customer contracts through increased geographical reach and lower-
cost delivery channels. Some banks doing the internet do not have traditional banking offices and
only reach their customers online. Other financial institutions use the internet as an alternative
delivery channel to reach customers and attract new customers.
➢ Branding
Relationship building is a strategic priority for many national bans. E-banking technology and
products can provide a means for national banks to develop and maintain an ongoing relationship
with their customers by offering easy access to a broad array of products and services. By
capitalizing on brand identification and providing a wide array of financial services, banks hope
to build customer loyalty.
➢ Wireless or Personal Digital Assistant Banking

With a phone number and a unique PIN, a customer can access his account balance from his
circular device.
• Allows a user to pay bills, transfer funds between accounts and check accounts from
anywhere.
• It offers wireless banking.
• Security is an essential issue in wireless banking.
• Newsbytes reports that wireless banking users will number over seven million in the US.
3.9 Online Security System

The concern of security remains the most significant barrier to the growth of e-banking. Most
people seem to believe that it is a hacker jungle out there and stay very wary of simplifying their
lives by using cyberspace. Some of the most common security features are firewalls, data
encryption, and personal identification number.
➢ Firewalls
A firewall is a software that protects the bank's computers and data from being accessed by any
outsider. The firewall is located where the bank's world connects with the rest of the world. This
firewall is a gatekeeper, checking each attempt at delivering data with a list of strict specifications.
➢ Public Key Infrastructure

Public critical infrastructure can be defined as the solution to secure electronic business
communication incorporating signatures and encryption technology. Every user in PKI transaction
owns a pair of keys: A public key known to everybody and a private key known only to the owner.
The keys have two main characteristics. Once, they are complementary sets of passwords. This
password means that a private key and vice-versa can only decrypt a document encrypted by a
public key.
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➢ Encryption
Encryption is the process of converting information into a more secure format for the transaction.
In other words, the plain text is converted to scrambled code while being transmitted, and then the
plain text is at the receiving end of the transmission. It is comparable to writing a letter, converting
it to code, putting it in an envelope and mailing it with the recipient descrambling the code.
➢ Digital Signatures
Digital signatures essentially use encryption to scramble information so that only the party who
issued the certificate can decrypt and read it. By using digital signatures, customers are reassured
that any sensitive information they send across the web, such as postal addresses and credit card
details, is protected from interception along the way. Meanwhile, online merchants can be more
confident that the customer placing the purchasing order is indeed entitled to use the payment card.
Security experts believe that digital signatures will encourage more customers to purchase goods
online.
➢ Access Codes
The access codes used to identify you to the online banking system are called passwords and are
further protected using PINs.
3.10 Benefits of E-Banking

Consumers are embracing the many benefits of Internet banking.
3.10.1 Benefits to Customers
❖ Consumers can use their computers and telephone modem to dial in from home or sit where
they have access to the computer.
❖ The services are available seven days a week, 24 hours a day.
❖ Transactions are executed and confirmed quickly, although not instantaneously. Processing
time is comparable to that of an ATM transaction.
❖ In general, the customer will find lower fees and higher interest rates for deposits due to the
reduced cost of operating online and not needing numerous physical bank branches.
❖ And the range of transactions available is relatively broad. Customers can do everything from
simply checking on an account balance to applying for a mortgage.
❖ The interface is very user-friendly and often intuitive. Additionally, business customers will
most likely use the internet for more than cash management. They will be accustomed to a
similar "look and feel" among all applications they use.
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3.10.2 Benefits to the Bank
The internet has levelled the playing field and afforded opened access to customers in the global
marketplace. Internet banking is a cost-effective delivery channel for financial institutions. The
bank can generate revenue, decrease operational and transactional costs, increase productivity, and
attract new customers.
❖ Ability to Increase
Financially, the bank can benefit a great deal from providing their customers with an online
banking service. The ban can increase revenue by generating user and transaction fees for the use
of a bill payment product and charging an account access fee for using the online system. Online
banking provides an excellent promotional opportunity to generate revenue by helping the bank
cross-sell products such as credit cards, loans, certificates of deposits, and other financial services.
❖ Save Money
In addition to making money, the bank can save money with an Internet banking system. Online
banking can decrease operating costs by reducing the daily reproduction and distribution of paper-
drawn transactions and delivering and processing statements for accounts, credit cards, and bills.
Performing transactions via the internet also provides cost savings, as indicated by a study done
by Booz, Allen & Hamilton that shows a transaction over the phone costs $.54. At an ATM, it cost
$.27, and via the internet, the cost is $.0.1. Using the internet to perform transactions dramatically
reduces the cost to the bank.
❖ Improves Productivity
Internet banking improves productivity as well. Bank representatives can process data more
quickly and efficiently, track account activity with automated reports, help customers achieve daily
tasks via the internet and reduce time spent handling service problems. There can be a dramatic
reduction in customer service calls, as some banks providing this service have proven.
❖ Marketing & Competitive Tools

Electronic banking also offers the bank an exceptional marketing and competitive tool. Large
banking such as Nations Banks and Wells Fargo have already capitalized on the internet as a
mechanism to attract new customers in the United States. The majority of people using the internet
are middle to high income, and polls indicate that 50% of the people are also the ones who want
to have the convenience of online banking for home or business use. E-banking is an excellent
opportunity for the community bank to keep their hometown customers looking to national
institutions for an online product.
Innumerable services are available via the internet today. Internet banking provides a higher level
of convenience that both commercial and retail customers desire to have. With this service, the
bank not only has the opportunity to manage their business better but can also help their customer
achieve a much more efficient process of managing their finances.
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3.11 Disadvantages of E-Banking
The most apparent disadvantage is that technophobes need not apply, i.e., if you are still not
comfortable using a computer, e-banking is not for you.
❖ Investment of time upfront can be formidable. The data entry is necessary before the numbers
can be massaged and money managed successfully. Online bill payment is an example of an
effort that requires setting up, which leads to ultimate convenience.
❖ Switching software or bank re-entry of data, although internet-based systems are fewer impacts
by this. But competition seems to be minimizing this problem. The personal finance
management software Microsoft money enables users of competing software to import data
easily.
❖ Like anything that deals with transferring a large amount of money, security is a significant
factor of online banking. It is taken very seriously during online banking procedures.
❖ With a system as complex as Online Banking, some errors are inevitable. i.e., an interrupted
online session, late arrival of payments are mistakes made by either the user or the banks in
question can affect both, causing problems. For example, an 'Infinity' (ICICI's Online Banking
Brand name) customer from Bangalore paid his cell phone bill through the bank, only to
receive another invoice the following month, with late fees. The amount had been debited from
his account but not passed on to the cellular operator.
❖ When dealing with computers, there is always the concern of the system crashing, viruses
entering the system or power cut. There are considerable problems and are not easily solved.
Many people would be affected in all these cases, information may be lost, and a backup plan
would have to be initiated.
3.12 E-banking Risk

E-banking using the internet as an added delivery channel may shift bank risk profiles to some
degree and create new risk control challenges for banks. Accordingly, supervisors need to consider
the implication of a bank's use of e-banking delivery channels on its strategic risk, operational risk,
reputational risk, legal risk, market risk, and foreign exchange risk.
❖ Strategic Risk and Business Risk

Strategic risk is one of the most significant risks that e-banking activity presents for the banking
organization. Strategic risk differs from other risk categories in that it is more general and broader
in nature. The strategic decision to be given by the bank's board of directors and executive
management will implicate all other risk categories. Some of the strategic risks involve with e-
banking are directly linked with timing issues. There can be significant strategic risk associated
with management's decision to be a technology pioneer, particularly if the institution becomes
burdened with the system made redundant by rapid technological changes.
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❖ Operational Risk
Because of the reliance on technology for all facets of banking, operational risk is one of the most
significant risks. To limit operational risk, a banking organization may want to consider
implementing an integrated enterprise comprehensive architecture and technology infrastructure
that can facilitate interoperability, ensure the security, integrity and availability of data and support
the management of the relationship with the third-party services providers.
➢ Technological Infrastructure
E-banking has brought the issue of technological systems and applications integrated to the
forefront. Many large banks are now faced with integrating systems for e-banking activities with
their existing legacy system and with the approach of multiple service providers and partners.
These banks are exposed to significant operational risk from errors in transaction processing if the
systems for e-banking are not adequately integrated.
➢ Security
The majority of the bankers surveyed by EBS (electronic banking group) members identified
security risk as a primary concern relating to E-banking external threats such as "hacking,"
"sniffing," "and denial of services" attacks expose banks to new security risks. Open electronic
delivery channels create new security issues for banks concerning confidentiality and integrity of
information, non-repudiation of transactions, authentication of users and access control.
➢ Data Integrity
Data integrity is an essential component of system security. Banking organizations must improve
interoperability within and across enterprises to effectively manage relationships with customers,
other banks and external services providers.
➢ System Availability
In addition to ensuring secure internal networks for their e-banking activities, effective capacity
planning is critical to ensuring the ongoing availability of e-banking products and services.
Competitive pressures and increased reliance on having services available 24 hours a day and
seven days a week (24*7) have considerably raised customer expectations and, in turn, reduced
the tolerance for error. To complete effectively and avoid potentially significant reputation risks
that could arise from system outage, banks offering e-banking services may sliver the right mix of
products and services securely, accurately and consistently. Moreover, trends in outsourcing make
it necessary for bankers to ensure that similar plans are in place at their external services providers
and are periodically tested for effectiveness.
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➢ Internal Control/Audit
The ability to correct and detect errors is a critical internal control component of any banking
operation. Much of the efficiency and reduction in e-banking services stem from bank's ability to
implement "straight-through processing." While the benefit of straight-through processing is
many, the reality is that e-banking modifies how internal controls, proper segregation of duties and
clear audit trails are applied overbroad access channels.
❖ Reputational Risk
The bank's reputation can be impacted by any adverse development that precludes the availability
of its e-banking delivery channels. Bank has long based their business on the importance of trust.
The ability to provide a trusted network to support e-banking is critical. A bank's reputation can
be damaged by internet banking services that are properly executed or otherwise alienate
customers and the public. Bank’s reputation can suffer if it fails to deliver secure, accurate and
timely e-banking services consistently. A bank's reputation can also be adversely impacted if it
fails to respond to inquiries posted via email, does not provide proper disclosure, or violates
customer privacy.
❖ Legal Risk
Legal risk arising from e-banking activates another area of increased concern. Currently,
supervision in every jurisdiction and examining how existing legal and regulatory frameworks
initially design to address issues affecting the "physical" world of banking interact with the
developing e-banking delivery channels and explore potential ambiguities. A bank that develops
relationships via the internet with the customer in other jurisdictions may be unfamiliar with the
banking and customer protection laws and regulations specific to those countries and may incur
heightened legal risk.
❖ Other Traditional Banking Risks

The e-banking delivery channels also imply other traditional banking risks such as credit risk.,
Liquidity risk, interest rate risk and market risk.
➢ Credit Risk
The credit risk of banking institutions can be affected by e-banking activities in many ways. The
use of an internal delivery channel may allow banks, minimal institutions, to expand very rapidly,
which could lead to heightened asset quality and internal control risks. The use of the interior also
enables the bank to expand their geographical reach out of their traditional area, which increases
the challenge of understanding local market dynamics and risks, verifying collateral and perfecting
security lions with out-of-area borrowers. In addition, the internal also makes it more difficult to
authenticate the identity and creditworthiness of potential customers, which are essential elements
to sound credit decisions.
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➢ Liquidity Risk
The speed with which the information and misinformation move over the internet can imply the
liquidity risk profile of banks. Adverse information about a bank, whether true or not, can be
quickly disseminated over the internal through bulletin boards. Negative information causes
depositors to withdraw funds in mass at any time of the day, any day of the week. Accordingly,
increased monitoring of liquidity and changes in deposits and loans may be warranted depending
on the volume of activity created through e-banking.
➢ Market Risk
The impact of recent growth in securities issuance and trading over the internet on bank's market
risk is complex. From a market standpoint, the increased volume of securities, which are traded
over the internet, volatility, but on the other hand, it can lead to increased liquidity. From an
individual bank's standpoint, banks may be exposed to increased market risk if they create or
expand deposit brokering, loan sales, or securitization programmer due to internet banking
activities. As with liquidity risk, the effect of the increased E-banking activities on market
volatility needs to be monitored by banks and supervisors.
➢ Foreign Exchange Risk

A bank may be exposed to risk if it accepts deposits from foreign customers or creates accounts
denominated in currencies other than their local currency. Since the internet allows banks to
expand their geographic range, even internationally, some banks may take a greater foreign
exchange risk through e-banking activities than they have through their traditional delivery
channels. Supervision should ensure that a bank initiating cross-border e-banking activities
through the internet has the appropriate risk management systems and expertise to manage these
risks appropriately.
3.13 RBI Guidelines for E-Banking

The Reserve Bank of India Friday released its final operative guidelines for e-banking. The central
bank has decided to limit the ticket size for e-banking to Rs 2,500 per transaction and Rs 5,000 per
day. Banks have also been allowed to put in place a monthly transaction limit, depending on the
bank's risk perception of the customer. While the guidelines will enable lenders such as the State
Bank of India and Axis Bank to go ahead with their launch of mobile banking services, the central
bank has decided to restrict the services only to debit and credit cards holders. The card user base
in the country is 80 million, with 55 million debit card users and 25 million credit card users. Only
Indian rupee-based domestic services shall be provided on the mobile- payment platform, and the
use of mobile banking for cross-border transactions has been strictly prohibited. Banks that are
based, licensed and supervised in India will be allowed to offer such services. Further, only banks
that have implemented the core banking platform will be allowed to provide e-banking. At the
same time, the RBI has recommended that all e-banking transactions are validated through a two-
factor authentication system, thereby complying with the latest security and encryption standards.
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CHAPTER 4
DATA ANALYSIS AND INTERPRETATION
The most crucial step after the collection of data is research analysis and interpretation of collected
data. The analysis means to calculate the total number of respondents and study and clarity bin
further. Interpretation means explaining as to make out what does the research says, and it means
what one understands from the analysis.
During the study, questionnaires were circulated among the rural, semi-urban, and urban people
of Dakshina Kannada district, and collected 320 filled questionnaires were received back by the
respondents. The response towards using information sources and their characteristic is discussed
below.
4.1 Gender of the Respondents

Analyzing the Gender profile is crucial because it explains the gender distribution in research as
this research is a general topic and not related to any gender. Hence, the researcher collected data
randomly from both the groups of Gender.
Table No.4.1: Gender of the Respondents
Gender Frequency Percent Valid Percent Cumulative

Percent
Male 130 40.6 40.6 40.6
Female 190 59.4 59.4 100.0
Total 320 100.0 100.0
Source: Survey Data 2021
Figure No.4.1: Gender of the Respondents
Gender
200
150
100
50
0
Male Female
Gender
Interpretation: Table No.4.1 and Figure No.4.1 explains that most respondents are female 54.9%,
and 40.4% of the respondents are Male. It indicates that there is a tremendous change in e-banking
users in the district. More female students are using e-banking services.
26

4.2 Age Profile of the Respondents
Table No.4.2: Age Profile of the Respondents
Age Frequency Percent Valid Percent Cumulative

Percent
18-24 264 82.5 82.5 82.5
25-35 52 16.3 16.3 98.8
36-44 2 0.6 0.6 99.4
45-55 2 0.6 0.6 100.0
56 Above 0 0 0 100.0
Total 320 100.0 100
Figure No.4.2: Age of the Respondents
Age Profile
300
250
200
150
100
50
0
18-24 25-35 36-44 45-55 56 above
Age Profile
Interpretation: It can be observed from above Table No. 4.2 and figure No. 4.2 that out of 320
respondents, 82.5% of the respondents belonged to the age group ranging between 18 and 24 years,
followed by 16.3% belonged to the age group ranging between 25 and 35 years, and 0.6% belonged
to the age group ranging between 36 and 44 years and 45 and 55 years. Here one thing observed
that age group above 56 are not responded to the circulated questionnaire. From the study, it is
clear that most of the users of e-banking services belonged to the age group ranging between 18
and 24 years.
27

4.3 Marital Status of the Respondents
Table No.4.3: Marital Status of the Respondents
Marital Status Frequency Percent Valid Percent Cumulative

Percent
Married 24 7.5 7.5 7.5

Single 296 92.5 92.5 100.0
Total 320 100.0 100.0
Figure No.4.3: Marital Status of the Respondents
Marital Stutus
350
300
250
200
150
100
50
0
Maried Single
Marital Stutus
Interpretation: It can be observed from the above Table No. 4.3 and Figure No. 4.3 Out of 320
respondents, 92.5% were unmarried, 7.5% of the users were married. From the above table and
charts, it shows that most of the users are unmarried.
28

4.4 Educational Status of the Respondents
Table No.4.4: Educational Status of the Respondents
Educational Frequency Percent Valid Percent Cumulative

Status Percent
Under Graduate 24 7.5 7.5 7.5

Graduate 84 26.3 26.3 33.8
Post Graduate 198 61.9 61.9 95.7
Professional 14 4.3 4.3 100.0
Total 320 100.0 100.0
Figure No.4.4: Educational Status of the Respondents
Education
250
200
150
100
50
0
Under Graduate Graduate Post Graduate Profession
Education
Interpretation: An analysis of the above Table No. 4.4 and Figure No. 4.4 reveals that out of 320
respondents, 61.9% were postgraduates, followed by 26.3% of the respondents were graduates,
7.5% of the respondents were undergraduates, and 4.3% of the respondents were professionals.
From the above table and figure, it is clear that the majority of the e-banking users were
postgraduates.
29

4.5 Income Profile of the Respondents
Table No.4.5: Income Profile of the respondents
Monthly Frequency Percent Valid Percent Cumulative

Income Percent
Under 10000 200 62.5 62.5 62.5

10000-25000 66 20.6 20.6 83.1
25000-40000 30 9.4 9.4 92.5
40000-55000 6 1.9 1.9 94.4
Above 55000 18 5.6 5.6 100.0
Total 320 100.0 100.0
Source Survey Data 2021
Figure No.4.5: Income of the Respondents
Income
250
200
150
100
50
0
Under 10000 10000-25000 25000-40000 40000-55000 Above 55000
Income
Interpretation: An analysis of the above Table No.4.5 and Figure No. 4.5 reveals that out of 320
respondents, 62.5% of the respondents were earning a monthly income of below 10000, followed
by 20.6% of the respondents were earning the monthly income ranging between 10000-25000,
9.4% of the respondents were earning monthly income ranging between Rs.25000 and Rs.40000,
1.9% of the respondents were earning monthly income ranging between Rs.40000 and Rs.55000
and remaining 5.6% of the respondents were earning the monthly income Above 56000. From the
above table and figure, it is clear that the majority of the e-banking users were making a monthly
income below Rs.10000.
30

4.6 Professional Profile of the Respondents
Table No.4.6: Professional Profile of the Respondents
Professional Frequency Percent Valid Percent Cumulative

Profile Percent
Private Sector 92 28.7 28.7 28.7

Public Sector 4 1.3 1.3 30.0
Retired 0 0 0 30.0
Student 208 65.0 65.0 95.5
Does not Work 16 5.0 5.0 100.0
Total 320 100.0 100.0
Figure No.4.6: Profession of the Respondents
Profession
250
200
150
100
50
0
Private Sector Public Sector Retired Student Does not work
Profession
Interpretation: An analysis of the above Table No. 4.6 and Figure No. 4.6 reveals that out of 320
respondents, 65.0% of the respondents were students. They are the maximum users' e-banking
service. 28.7% of the respondents were private sector, 5.0% were from does not work, and 1.3%
were from the public sector. Here one thing clear that retired people not responded to circulated
questionnaire. It can be observed from the above table and chart that the majority of the
respondents were students.
31

4.7 Living Area of the Respondents
Table No.4.7: Living Area of the Respondents
Living Area Frequency Percent Valid Percent Cumulative

Percent
Rural 158 49.4 49.4 49.4
Semi-urban 104 32.5 32.5 81.9
Urban 58 18.1 18.1 100.0
Total 320 100.0 100.0
Figure No.4.7: Living Area of the Respondents
Area
180
160
140
120
100
80
60
40
20
0
Rural Semi-Urban Urban
Area
Interpretation: The analysis of the above Table No. 4.7 and Figure No. 4.7 reveals that out of
320 respondents, 49.4% were rural people, 32.5% of the respondents were semi-urban people, and
18.1% of the respondents were urban people. From the figures, it is clear that the majority of rural
people were using e-banking services.
32

4.8 Number of Banks Respondent Transacts
Table No.4.8: Number of Banks Transact
Number of Frequency Percent Valid Percent Cumulative

Banks Percent
1 126 39.4 39.4 39.4

2 130 40.6 40.6 80.0
3 26 8.1 8.1 88.1
4 and more 38 11.9 11.9 100.0
Total 320 100.0 100.0
Figure No.4.8: Number of Banks
Number of banks
140
120
100
80
60
40
20
0
1 2 3 4 and above
Number of banks
Interpretation: From the above Table No. 4.8 and Figure No. 4.8, it is observed that 40.6% of the
respondents were transacting with two banks, followed by 39.4% of the respondents were
transacting with only one bank, 11.9% of the respondents were transacting with more than four
banks, and 8.1% of the respondents were transacting with three banks. The majority of the
respondents were transacting with two banks.
33

4.9 Usage of E-banking
Table No.4.9: Usage of E-banking
Usage of E- Frequency Percent Valid Percent Cumulative

banking Percent
Yes 300 93.8 93.8 93.8
No 20 6.2 6.2 100.0
Total 320 100.0 100.0
Figure No.4.9: Usage of E-banking
Usage of E-banking
Yes No
320 respondents, 93.8% of the respondents were using E-banking services, and 6.2% of the
respondents were not using E-banking services. The majority of the respondents were using E-
banking services.
34

4.10 Mode of Banking
Table No.4.10: Mode of Banking
Mode of Frequency Percent Key Valid Cumulative

Banking Percent Percent Percent
Internet 154 48.1 20.5 20.5 20.5

ATM 230 71.9 30.7 30.7 51.2
Mobile 250 78.1 33.3 33.3 84.5
Branch 116 36.3 15.5 15.5 100.0
Total 750 100.0 100.0
Figure No.4.10: Mode of Banking
Mode of Banking
120
100
80
60
40
20
0
Internet ATM Mobile Branch
Mode of Banking
320 respondents, 33.3% (MRR=2.34) of the respondents were using Mobile banking as a mode of
E-banking. Followed by 30.7% (MRR=2.35) of the respondents using ATM, 20.5% (MRR=2.37)
of the respondents used Internet banking, and only 15.5% (MRR=2.32) of the respondents visiting
bank branches for the transaction. The above analysis clears that most of the respondents were
using mobile banking as a mode of E-banking. The respondents were chosen more than one option
with an MRR of 2.34.
35

4.11 Frequency of E-banking
Table No.4.11: Frequency of E-banking
Usage Frequency Percent Valid Percent Cumulative

Percent
Daily 50 15.6 15.6 15.6

Weekly 118 36.9 36.9 52.5
Monthly 122 38.1 38.1 90.1
Yearly 14 4.4 4.4 95.0
Never 16 5.0 5.0 100.0
Total 320 100.0 100.0
Figure No.4.11: Frequency of E-banking
Frequency of E-banking
140
120
100
80
60
40
20
0
Daily Weekly Monthly Yearly never
Frequency of E-banking
Interpretation: It can be observed from the above Table No. 4.11 and Figure No. 4.11 that out of
320 respondents, 38.1% of the respondents were using E-banking service monthly basis. Followed
by 36.9% of the respondents were using a weekly basis, 15.6% of the respondents were using a
daily basis, and 4.4% of the respondents were using a yearly basis. One thing observed that 5.0%
of the respondents were not using e-banking services. From the above figures, it is clear that most
of the respondents were using a monthly basis.
36

4.12 Years of Using E-banking Service
Table No.4.12: Years of usage
Years of usage Frequency Percent Valid Percent Cumulative

Percent
Less than 1 year 46 14.4 14.4 14.4

1-2 80 25.0 25.0 39.4
2-3 102 31.9 31.9 71.3
4-5 76 23.7 23.7 95.0
More than 5 16 5.0 5.0 100.0
years
Total 320 100.0 100.0

Figure No.4.12: Years of usage
Years of Usage
120
100
80
60
40
20
0
Less than 1 year 1--2 2--3 4--5 More than 5 years
Years of Usage
320 respondents, 37.5% of the respondents were using E-banking from last 2-3 years, followed by
25% of the respondents were using from 1-2 years, 23.7% of the respondents were using from 4-
5 years, 14.4% of the respondents were started using from less than one year, and 5% of the
respondents were using more than five years. From the above figure, it is clear that the majority of
the respondents were stated to use E-banking services for 2-3 years.
37

4.13 Reasons to Use E-banking
Table No.4.13: Reasons to Use E-banking
Reasons Frequency Percent Key Valid Cumulative

Percent Percent Percent
Banking transactions are 250 78.1 30.1 30.1 30.1
easy
24 hours availability 250 78.1 30.1 30.1 60.2
Save time 240 75.0 28.9 28.9 89.1
Curiosity 24 7.5 2.9 2.9 92.0
Transaction cost is cheap 66 20.6 8.0 8.0 100.0
Total 830 100.0 100.0
Figure No.4.13: Reasons to Use
Reasons to use
120
100
80
60
40
20
0
Banking 24 hours Save Time Curiosity Transaction cost is
transactions are availability cheap
easy
Reasons to use
320 respondents, 30.1% (MRR=2.60) of the respondents were using E-banking services for both
banking transactions were accessible and 24 hours availability. Followed by 28.9% (MRR=2.58)
of the respondents were using it because E-banking saves time, 8% (MRR=2.54) of the
respondents were using it because the transaction is cheap, and the rest of the 2.5% (MRR=2.67)
of the respondents were using only for curiosity. It is clear that the majority of the respondents
were using the E-banking service for its transactions is accessible and available at any time, i.e.,
24 hours. The respondents were selected more than one reason to use an E-banking service with
an MRR of 2.59.
38

4.14 Satisfaction with E-banking Service
Table No.4.14: Satisfaction Level
Satisfaction Frequency Percent Valid Percent Cumulative

Level Percent
Yes 306 95.6 95.6 95.6
No 14 4.4 4.4 100.0
Total 320 100.0 100.0
Figure No.4.14: Satisfaction Level
Satisfaction Level
Yes No
Interpretation: The analysis of Table No. 4.14 and Figure No. 4.14 reveals that out of 320
respondents, 95.6% of the respondents were satisfied by their bank's E-banking service, and only
4.4% of respondents were dissatisfied by the E-banking service. The majority of the respondents
were satisfied with the E-banking service provided by their bankers.
39

4.15 Utility of E-banking
Table No.4.15: Utility of E-banking
Utility of E-banking Frequency Percent Key Valid Cumulative

Pay the bills 230 71.9 25.3 25.3 25.3
Pay Rent 54 16.9 5.9 5.9 31.2
Check the account 240 75.0 26.2 26.2 57.4
Transfer money between 266 83.1 29.3 29.3 86.7
accounts
Requesting Credit Card and 60 18.8 6.6 6.6 93.3
Credit Card Transactions
Purchase and Sale of 22 6.9 2.5 2.5 95.8
Foreign Exchange
Stock Transactions 38 11.9 4.2 4.2 100.0
Total 910 100.0 100.0
Figure No.4.15 Utility of E-banking
Utility of E-banking
100
90
80
70
60
50
40
30
20
10
0
Pay the Bills Pay Rent Check the Transfer Requesting Purchase and Stock
Account Money Credit Card Sale of Transaction
between and Credit Foreign
Accounts Card Exchange
Transaction
Utility of E-banking
40

320 respondents, 29.3% (MRR=2.83) of the respondents were using the E-banking service for
transfer money from one account to another, 26.2% (MRR=2.86) of the respondents were using
for check the account, 25.3% (MRR=2.84) of the respondents were using for pay the bill, 6.6%
(MRR=2.86) of the respondents were using E-banking service for request credit card and make
credit card transactions, 5.9% (MRR=2.84) of the respondents were using for pay rent, 4.2%
(MRR=2.92) of the respondents were using for the stock transaction, and 2.5% (MRR=2.75) of
the respondents were using for purchase and sale of foreign exchange pieces of equipment. From
the above, it is clear that most of the respondents were using an E-banking service to transfer
money between the accounts. The respondents were responded to more than one option with an
MRR of 2.84.
41

4.16 Opinion of Service Charge
Table No.4.16: Opinion of Service Charge
Opinion Service Frequency Percent Valid Cumulative

Charge Percent Percent
Yes 204 63.7 63.7 63.7
No 116 36.3 36.3 100.0
Total 320 100.0 100.0
Figure No.4.16: Service Charge
Service Charge
Yes No
320 respondents, 63.7% of the respondents mentioned that the bank charges fees for E-banking
service and 36.3% of the respondents mentioned that the bank does not charge fees for E-banking
service. From the above data, it is clear that banks charge a service charge for the E-banking service
they provide.
42

4.17 Factors Motivate to Use E-banking
Table No.4.17: Factors Motivate to Use of E-banking
Factors Motivate Frequency Per cent Key Valid Cumulative

Rewards 148 46.3 25.0 25.0 25.0
Simpler Service 218 68.1 36.6 36.6 61.6

Higher Security 128 40.0 21.6 21.6 83.2
Free Transaction 100 31.3 16.8 16.8 100.0
Total 594 100.0 100.0
Figure No.4.17: Factors Motivate to Use E-banking
Factors Motivate to Use e-banking

140
120
100
80
60
40
20
0
Rewards Simpler Service Higher Security Free Transaction
Factors Motivate to Use e-banking
Interpretation: It can be observed from the above Table No. 4.17, and Figure No. 4.17 that out
of 320 respondents, 36.6% (MRR=1.86) of the respondents were motivated to use E-banking for
its more uncomplicated service, followed by 25% (MRR=1.85) of the respondents were using for
its rewards, 21.6% (MRR=1.86) of the respondents were using for its safety purpose, and rest of
the 16.8% (MRR=1.85) of the respondents were motivated by its free transaction. The majority of
the respondents were inspired by more simple services provided by E-banking providers. The
respondents were responded more than one option with an MRR of 1.86.
43

4.18 Perception about E-banking System
Table No.4.18: Perception about E-banking
Perception Frequency Percent Valid Cumulative

Percent Percent
Complicated Technique 92 28.7 28.7 28.7
Not easy 68 21.3 21.3 50.0
Difficult Accessibility 34 10.6 10.6 60.6
Rigidity 48 15.0 15.0 75.6
Don’t get required response 46 14.4 14.4 90.0
Poor Feedback 32 10.0 10.0 100.0

Total 320 100.0 100.0
Figure No.4.18: Perception about E-banking
Perception
100
80
60
40
20
0
Complicated Not easy Difficult Rigidity Don’t get Poor Feedback
Technique accessibility required
response
Perception
320 respondents, 28.7% of the respondents faced difficulty in complicated techniques while using
E-banking services, followed by 21.3% of the respondents were thought that it is not easy to use,
15% of the respondents were faces rigidity, 14.4% of the respondents were not getting proper
response from E-banking providers, 10.6% of the respondents were thought that it is difficult to
use and 10% of the respondents had poor feedback to E-banking providers. Now it is clear that the
majority of the customers were having the complicated techniques used by E-banking providers.
44

4.19 Degree of Confidence in Using E-banking
Table No.4.19: Degree of Confidence
Degree of Frequency Percent Valid Percent Cumulative

confidence Percent
Little 44 13.8 13.8 13.8
Some 120 37.5 37.5 51.3
Not at all 16 5.0 5.0 56.3
High 132 41.2 41.2 97.5
Very High 8 2.5 2.5 100.0
Total 320 100.0 100.0
Figure No.4.19: Degree of Confidence
Degree of confidence
140
120
100
80
60
40
20
0
Little Some Not at all High Very High
Degree of confidence
320 respondents, 41.2% of the respondents had the degree of confidence about E-banking was
high, followed by 37.5% of the respondents were some, 13.8% of the respondents were little, 5%
of the respondents were not at all, and 2.5% of the respondents were a very high degree of
confidence about E-banking service. From the above, it is clear that the degree of faith of the
majority of respondents about the E-banking service is high.
45

4.20 Reasons for Not Using E-banking
Table No.4.20: Reasons for Not Using E-banking
Reasons for Not Using E- Frequency Percent Key Valid Cumulative

banking Percent Percent Percent
Not Sufficient Knowledge 88 27.5 18.4 18.4 18.4
about e-banking
The Absence of the Habit of 82 25.6 17.2 17.2 35.6
Using E-banking
Bank Officer should be in 52 16.3 11.0 11.0 46.6
front of me during the Process
The Idea of making an 100 31.3 20.9 20.9 97.5
Incorrect Operation
Be difficult of use E-banking 44 13.8 9.1 9.1 76.6
Not Safe 112 35.0 23.4 23.4 100.0

Total 478 100.0 100.0
Figure No.4.20: Reasons for Not Using E-banking
Reasons for not using E-banking

80
70
60
50
40
30
20
10
0
Not Sufficient The Absence of Bank Officer The Idea of Be difficult of Not Safe
Knowledge the Habit of should be making an use E-banking
about e-banking Using E- infront of me Incorrect
banking during the Operation
Process
Reasons for not using E-banking
320 respondents, 23.4% (MRR=1.49) of respondents think that E-banking is not safe, followed by
20.9% (MRR=1.49) of the respondents avoided for incorrect operations, 18.4% of respondents not
have sufficient knowledge, 17.2% (MRR=1.39) of respondents were the absence of the habit of
using E-banking, 11% (MRR=1.49) of respondents wants bank officer while transactions are
made, and 9.1% (MRR=1.52) of the respondents think that it is not easy. Now it is clear that the
majority of the respondents were avoiding E-banking service for reasons that it is not safe. The
respondents were selected for more than one option with an MRR of 1.49.
46

4.21 Purpose of Using E-banking
Table No.4.21: Purpose of Using E-banking
Purpose of using E- Frequency Percent Key Valid Cumulative

banking Percent Percent Percent
Balance and Transaction 228 71.3 22.1 22.1 22.1

History Search
Online Fund Transfer 178 89.0 17.5 17.5 39.6
Lock/Activate Debit Card 44 13.8 4.4 4.4 44.0
Card to Card Transfer 68 21.3 6.6 6.6 50.6
Request Cheque Book 26 8.1 2.5 2.5 53.1
Open FD 32 10.0 3.1 3.1 56.2
Stop Payment 18 5.6 1.9 1.9 58.1
Railway Pass 14 4.4 1.3 1.3 59.4
Shopping 206 64.4 20.3 20.3 79.7
Ticket Booking 94 29.4 9.1 9.1 88.8
Share Payment 114 35.6 11.2 11.2 100.0
Total 1022 100.0 100.0
Figure No.4.21: Purpose of Using E-banking
Purpose of Using E-banking

80
70
60
50
40
30
20
10
0
Balance and Online Fund Lock/Activate Card to Card Request Cheque Open FD Stop Payment Railway Pass Shopping Ticket Booking Share Payment
Transaction Transfer Debit Card Transfer Book
History Search
Purpose of Using E-banking
47

Interpretation: It can be observed from the above Table No. 4.21, and Figure No. 4.21 that out
of 320 respondents, 22.1% (MRR=3.21) of the respondents were using E-banking for balance
enquiry and check transaction history purposes, followed by 20.3% (MRR=3.17) of the
respondents were using shopping purposes, 17.5% (MRR=3.18) of the respondents were using E-
banking for transfer funds, 11.2% (MRR=3.17) of the respondents were using for payment share,
9.1% (MRR=3.24) of the respondents were using E-banking for book tickets, 6.6% (MRR=3.24)
of the respondents were using for the card to card transfer, 4.4% (MRR=3.14) of the respondents
were using for activate or block debit cards, 3.1% (MRR=3.20) of the respondents were using for
open fixed deposits, 2.5% (MRR=3.25) of the respondents were using for request cheque
book,1.9% (MRR=3.0) of the respondents were using for stop payments and 1.3% (MRR=3.5) of
the respondents were using for railway pass. From the above, it is clear that most of the respondents
were using E-banking services to check their bank account balance and transaction history. The
respondents were chosen more than one purpose with an MRR of 3.19.
48

4.22 Difficulties in E-banking
Table No.4.22: Difficulties in E-banking
Difficulties in E-banking Frequency Percent Key Valid Cumulative

Lack of Assistance 92 28.7 16.3 16.3 16.3
Security Concern 168 52.5 29.7 29.7 46.0
Overall Difficulty of using 32 10.0 5.6 5.6 51.6
E-banking system
Limited Service 82 25.6 14.7 14.7 66.3
Impersonality on Internet 92 28.7 16.2 16.2 82.5
Service
Unreliable 34 10.6 6.3 6.3 88.8
No Disadvantage 64 20.0 11.2 11.2 100.0
Total 564 100.0 100.0
Figure No.4.22: Difficulties in E-banking
Difficulties in E-banking
100
80
60
40
20
0
Lack of Assistence
Srecurity
Overall Difficulty
Concern of Using E-banking
limited
Impersonality
Service
system on InternetUnreliable
Service No Disadvantage
Difficulties in E-banking
320 respondents, 29.7% (MRR=1.77) thought that the security aspect is the difficulty E-banking
faces, followed by 16.3% (MRR=1.77) of the respondents were agreed for its lack of assistance,
16.2% (MRR=1.77) of the respondents were thought that it is impersonality service, 14.7%
(MRR=1.74) of the respondents were responded that E-banking is a limited service, 11.2%
(MRR=1.78) of the respondents were responded that it has no disadvantage at all, 6.3%
(MRR=1.7) of the respondents were thought that it has unreliable and 5.6% (MRR=1.78) of the
respondents were agreed with the overall difficulty in E-banking system. From the above data, it
is clear that the majority of the respondents were believed that the security concern is the primary
difficulty faced by the E-banking system. The respondents were having more than one difficulty
with an MRR of 1.76.
49

4.23 Recent Services Provided by the Banks
Table No.4.23: Recent Service Provided by the Banks

Recent Services Frequency Percent Key Valid Cumulative
Online Mortgage 52 16.3 9.4 9.4 9.4
Application
Online Small Business 82 25.6 15.0 15.0 24.4
Loans
Online Trust Funds 64 20.0 11.6 11.6 36.0
Online Investment and 78 24.4 14.0 14.0 50.0
Options Management
Online Deposit Accounts 138 43.1 25.0 25.0 75.0
Online Order of 30 9.4 5..6 5.6 80.6

Traveller’s Cheque
E-signature 106 33.1 19.4 19.4 100.0
Total 550 100.0 100.0
Figure No.4.23: Recent Service Provided by the Banks
Recent Service Provided by the

Banks
100
50
0
Online Mortgage Online Small Online Trust Funds Online Investment Online Deposite Online Order of E-signature
Application Business Loans and Options Accounts Traveller's Cheque
Management
Recent Service Provided by the Banks
320 respondents, 25% (MRR=1.73) of the respondents think that the online deposit to the account
is the current service provided by the banks, followed by 19.5% (MRR=1.71) of the respondents
responded E-signature is the current service offered by banks, 15% (MRR=1.71) of the
respondents think that online small business loans are current services provided by bankers, 14%
(MRR=1.73) of the respondents opined that investment and options management though online is
the current service provided by banks, 11.6% (MRR=1.73) of the respondents thought that the
online fund trust is a new service provided by banker, 9.4% (MRR=1.73) of the respondents
responded online mortgage application, and 5.6% (MRR=1.67) of respondents think that order of
traveller's cheque through online is the current service offered by the banks. The above shows that
the majority of the respondents were responded for online deposits account. The respondents
chosen more than one option for the current service provided by bankers with an MRR of 1.72.
50

4.24 Customers' Attitude Towards E-banking
Table No.4.24: Customers' Attitude Towards E-banking
Customers' Attitude Towards N Minimum Maximum Mean Standard
E-banking Deviation
E-banking service is less costly 320 1 5 3.39 1.216
than other banking services.
E-banking transaction 320 1 5 3.53 1.038
procedures are Simple and
Straightforward.
I am satisfied with E-banking 320 1 5 3.71 1.209
because I do not have to go to
the bank.
Bank gives enough information 320 1 5 3.17 1.075
about E-banking.
Are transactions through the 320 1 5 3.25 0.957
internet secure?
Manual banking is more 320 1 5 2.88 1.016
convenient than E-banking.
Do you think that human contact 320 1 5 3.01 1.062
is important for banking
relations?
I think I entered my personal 320 1 5 3.26 0.953
data is protected during the
process.
E-banking is more effective than 320 1 5 3.57 1.129
branch banking on time.
It is convenient because it 320 1 5 3.61 1.174
eliminates the risk of carrying
cash.
Websites are safe that offer E- 320 1 5 3.18 1.013
banking services.
I have any problem about E- 320 1 5 2.98 0.989
banking services, and banks
provide support.
Not have sufficient knowledge 320 1 5 2.53 1.114
about E-banking.
E-banking is complicated to use. 320 1 5 2.61 1.062
E-banking doesn't demand a lot 320 1 5 3.20 1.049
of effort.
I have information about the E- 320 1 5 3.48 1.103
banking transaction.
E-banking transactions are 320 1 5 2.77 1.121
complex.
Valid N (listwise) 320
51

Figure No.4.24: Customers' Attitude Towards E-banking
Customers' Attitude Towards E-banking

180
160
140
120
100
80
60
40
20
0 E-banking service is less E-banking transaction

costly than other banking procedures are simple
I am satisfied with E- Bank give enough
banking because I do not information about the E-
Are transactions through Manual banking is more Do you think that human I think, I entered my
internet secure ? convenient than E- contact is important for personal data is protected
E-banking is more
effective than branch
It is convenient because it Websites are safe that I have any problem about
eliminates the risk of offer E-banking service. E-banking service, banks
Not have sufficient
knowledge about E-
E-banking is complicated
to use.
E-banking doesn’t
demands a lots of effort.
I have information about E-banking transactions
the E-banking are complex.
services. and straightforward. have to go to bank. banking. banking. banking relation ? during the process. banking about time . carrying cash. provide support. banking. transaction.
1 2 3 4 5
Interpretation: The analysis of the above Table No. 4.24 and Figure No. 4.24 reveals that out
of 320 respondents, it can be observed that the majority of the respondents opined that they
satisfied with E-banking service because they do not go to bank with a mean value 3.71 (S.D.
1.216), followed by respondents think that E-banking is convenient because it eliminates the
risk of carrying cash with a mean value and standard deviation of 3.61 and ±1.174, followed
by respondents opined that E-banking is more effective than branch banking about time with
a mean value and standard deviation of 3.57 and ±1.129, followed by that E-banking
transaction procedures are simple and straightforward with a mean value and standard
deviation of 3.53 and ±1.038, Followed by respondents have sufficient information about E-
banking transaction with a mean value and standard deviation of 3.48 and ±1.103, followed by
the respondents were think that E-banking service is less costly than other mode of banking
service with a mean value and standard deviation of 3.39 and ±1.216, followed by respondents
were opined that the personal data entered in E-banking transaction are protected during the
process with a mean value and standard deviation of 3.26 and ±0.953, Followed by the
respondents were opined that transactions though internet is secure with a mean value and
standard deviation of 3.25 and ±0.957, Followed by respondents were think that E-banking
service does not demand lots of effort with a mean value and standard deviation of 3.20 and
±1.049, followed by respondents were opined that websites of E-banking service is safe with
a mean value and standard deviation of 3.18 and ±1.013, followed by the respondents think
that banks provide enough information about E-banking service with a mean value and
standard deviation of 3.17 and ±1.029, followed by respondents think that human contract is
52

important during the banking process with a mean value an standard deviation of 3.01 and
±1.062, followed by respondent opined that if they have any problem about E-banking service
then banks provide support to them with a mean value and standard deviation of 2.98 and
±0.989, followed by the respondents opined that manual banking is more convenient than E-
banking with a mean value and standard deviation of 2.88 and ±1.016, followed by respondents
were think that E-banking transactions were complex with a mean value and standard deviation
of 2.77 and ±1.121, followed by respondents opined that E-banking is complicated to use with
a mean value and standard deviation of 2.61 and ±1.062, followed by the respondents were
not have sufficient knowledge about e-banking service with a mean value and standard
deviation of 4.27 and ±1.183. So, it is clear from the above table and figure that most of the
respondents were satisfied with the E-banking service because they can avoid visiting banks.
53

CHAPTER 5
MAJOR FINDINGS, SUGGESTIONS AND CONCLUSION
A sample of 320 respondents was taken for the survey by the convenience sampling techniques in
order to know about the perception towards prospects and challenges of E-banking in Dakshina
Kannada District.
FINDINGS
➢ The study found that most of the respondents are female, and a smaller number of respondents
are male.
➢ It was found that the majority of the respondents are earning a monthly income RS below
10000. Moreover, included no earning respondents because the majority of the respondents
were students.
➢ It was found that the majority of respondents were unmarried.
➢ Through the survey, it was found that the majority of the respondents are students and
employees.
➢ It was found that the majority of the respondents are highly aware of the E-banking service
provided by their banks.
➢ It is observed that the respondent under the age group between 18-24 is more using E-banking
service.
➢ The majority of the respondents are aware of the E-banking facility provided by the banks
through the survey.
➢ From the study, it was found that the majority of the respondents were transacting with two
banks.
➢ The study observed that most of the respondents were using e-banking for the only reason for
checking balances and tracking their transaction history.
➢ All the respondents agreed that E-banking has many challenges, but it is still very beneficial
to both the banker and the customers.
➢ The majority of the respondents are satisfied E-banking service provided by their banks.
➢ The study observed that majority of the respondents were using Mobile banking as a mode of
E-banking.
➢ It is found that the majority of the respondents were using E-banking monthly basis.
➢ The majority of the respondents were using E-banking for two to three years.
➢ It is found that the majority of the respondents were using E-banking because the transactions
are easy and 24 hours available.
➢ The survey found that most of the respondents were using E-banking to transfer money from
one account to another.
➢ It is understood that there may be the possibility of mis-using the E-banking service by the
hackers.
➢ It is found that most of the respondents opined that E-banking service is not safe. That is the
reason to avoid E-banking services.
54

➢ It is found that the most important challenge of E-banking is the security concern of the e-
banking website.
➢ The study observed that most of the respondents think that an online deposit account is only
the current service offered by the banks in e-banking service.
➢ In a pandemic situation like Covid-19, E-banking is more useful and safer than visiting the
bank for each and everything.
➢ The customers all do not know e-banking service, so banking authority provides helpful
information about the usage of E-banking service.
➢ The study shows that many fraudulent activities exist nowadays in E-banking, which decreases
trust in E-banking services.
➢ The majority of the respondents were opined that bank charges service fair for e-banking
services provided by them.
➢ It is found that the majority of the respondents were thought that e-banking service is a
complicated technique.
➢ From the study, it is found that consumers’ confidence about E-banking services is on average.
➢ The study observed that most of the respondents were not using the E-banking service because
they did not have sufficient knowledge about it and the absence of the habit of using it.
➢ It is found that the majority of the respondents were agreed that E-banking is less costly than
traditional banking.
➢ The majority of the respondents were agreed that banks provide enough information about E-
banking.
➢ It is found that the majority of the respondents disagreed that manual banking is more
convenient than E-banking.
➢ The study found that most respondents think that the human contract is essential for banking
relationships.
➢ The majority of the respondents disagreed with banker support about the problem arises while
using E-banking service.
➢ The study found that the majority of the respondents disagreed with the statement that E-
banking transactions are complex.
55

SUGGESTIONS
➢ The respondents were aware of the E-banking service, but banks must educate properly about
the usage.
➢ The customers avoid E-banking services for reason of security purposes. So, banks are
suggested to improve the security aspect of the e-banking system.
➢ The customers also avoid using public wi-fi and use VPN software. To improve E-banking
safety.
➢ For the customers, we suggest checking the latest updates in the software system, changing
passwords regularly, registering for an SMS alert, and not sharing anything about personal
bank details, i.e., PIN, Credit/Debit card information, etc.
➢ E-banking must be more secure than other payment methods.
➢ The bank must educate the customer to use e-banking services to reduce risk during the
pandemic period.
➢ E-banking must cover all geographical area.
➢ Nowadays, mobile banking is one of the most used modes of banking. So, banks implement
mobile banking in a standard way.
➢ Banks must implement e-banking service use without internet facility also.
➢ Most of the respondents were using e-banking only to check their banking activity. So, bankers
increase customers to use other e-banking services also.
➢ E-banking service providers make easy to use banking services without any complicated
techniques.
➢ The confidence level of the respondents is some. So, the banker must implement their service
by increasing the confidence level of customers.
➢ In E-banking service, there are many disadvantages and challenges are included. So, by
removing that disadvantages and challenges, the e-banking service can develop in a significant
way.
➢ Some of the respondents mentioned that there are limited services in E-banking. Bankers can
add more services available to customers on the electronic form.
➢ The bank must provide more advertisement in rural areas so that the common people also can
make use of online banking.
➢ The bank employees should maintain good and cordial relationship with their customers.
➢ The banks must provide frequent updates of their online banking services to customers.
➢ The procedure for usage of online banking must be in a simple mode so that a common man
can make easy use of it. The processing speed should be increased for fast use of all services.
➢ Build awareness to all the students about Digitization in college campus.
➢ Electronic Banking encourages reduction of corruption everywhere.
➢ It is necessary for future generation because people’s busy life they can’t give separate time to
visit bank branch that is why E-banking is necessary.
➢ Bank should be avoided technical problems arising while transacting online.
➢ The people in urban areas use E-banking more often and better than the people in rural areas
because of their higher level of awareness about E-banking. Therefore, it is necessary to teach
how to use E-banking, what is the benefits of public etc.
56

➢ All banks should provide the security to all the online customers to make the transaction secure.
This privacy attracts more customers towards E-banking.
➢ The use of same password for a long time is not secure. Bank should make compulsory rule
regarding change of ATM pin, internet login and transaction password etc. after a specified
period.
➢ Electronic banking is better option so it should use instead of traditional banking because
traditional banking is time consuming and digital banking saves a lot of time.
➢ For online banking English is necessary so everybody should have basic knowledge regarding
English. So, banker implement E-banking service with regional language. It is helpful to all
regional people to use E-banking.
➢ The knowledge regarding how to do the online banking and basic computer operating
knowledge is necessary so customer should have knowledge of it.
➢ Covering up the towns the rural areas should be provided with sufficient ATMs so that the
people in those area scan also avail better services.
➢ Banks should educate people regarding use of genuine sites and give security tips regarding
payment via credit card, debit card etc.
➢ By all banks, access to internet banking should be allowed only after entering OTP which
comes in registered number.
➢ While transact with banking app banker provide reward points to the customer. This will attract
more customers to use E-banking service.
➢ The payment apps like Paytm, Phone pay, Google pay and Amazon pay, e-banking apps also
provide cash back facility for transaction made through banking apps.
➢ By providing biometric facility in E-banking service, it increases security of the transaction
and also save processing time.
➢ In E-banking service customer use different types of app for make different transactions. So,
bank can implement app such that which can be used for all type of transaction made though
only one app.
➢ Banks implement their E-banking platform such a way that it could not work without sim card
which linked with bank, like Paytm and other such apps.
➢ The important fact bank can follow in E-banking service is provide higher security to the user.
57

CONCLUSION
Customers actually agree with the government on the usefulness of cashless economy as it helps
to fight against terrorism, corruption, money lindies etc. But one of the biggest problems in the
working of electronic banking transaction in India is cyber-crime and illegal access. Therefore, it
is important to strengthen internet security from protection against online frauds. Customers
become aware of the higher level of risk in the application of digital transaction. Because large
number population is still below literacy rate especially in rural, government should educate the
rural people about E-banking. Government should also educate the bank customers about the risk
involved in E-banking. Banking transaction helps to develop the Indian economy. Hence, each
and every one should access and use the digital based transaction. The Government is required to
put more efforts financial literacy campaign time to time to make population aware of benefits of
electronic transactions. Digital transfers using apps has brought behavioral change and helped in
the adoption of E-banking system. Electronic banking is influenced by the education level of the
customer. If a person has studied beyond matriculation and internet savvy, he or she will be
inclined to use the digital transaction mode. It was also found that in the areas/region where
education level is high, the possibility of acceptance of digital transaction is much higher.
The level of awareness among the customers leads to increased preferences. Today’s customers
are not satisfied with care and courtesy alone, they expect concern and commitment. Therefore,
customer centric approach is need of the hour. In this competition environment not the oldest, not
the strongest and not the first can survive, but only the “Best” can survive. Therefore, usage of
modern technology for better service is imperative. Educational level of respondents influences
the use of internet banking facility and highly satisfied with secrecy maintenance, transaction
updating, account transfer and security followed by easy access while using the internet banking
services. The success of Internet banking not only depends on the technology but also on, to the
large extent the attitude, commitment and involvement of the operating at all levels and how far
the customers reap the benefits from Internet banking services.
Though the respondents were aware about E-banking service they concerned about their personal
information. They wary about the security of the E-banking platform. So, by provide better secured
service to the customers and also educate usage of the E-banking service to the customer then the
user of the e-banking significantly increases. Higher security will increase user of E-banking
service. Biometric system will increase security level of the E-banking platform. Therefore,
banking authority and the government must take initiative to increase security and other important
aspect of e-banking service. By providing better service, there is no doubt that everyone uses E-
banking service. It will encourage cashless transaction though out the banking industry.
58

BIBLIOGRAPHY
❖ Aaliya Noreen (2015), “Awareness of Electronic Banking and the Customers’ level of
Satisfaction in Pakistan”.
❖ Anushriya Bhargava (2017), “E-banking: Opportunities and Challenges in India”.
(ResearchGate).
❖ Ashutosh Arun (2019), “A Study on Awareness of Internet Banking Services in College
Students of Lucknow City”.
❖ Bader M Almohaimmed (2012), “Customer Behaviour towards Internet Banking: A Study
of the Dormant users of the Saudi Arabia”.
❖ C.L. Jeba Melvin (2013), “Attitude of Customers towards Internet Banking in
Kanyakumari District”.
❖ Das Amutha (2017), “A Study of Customer Awareness towards E-banking”.
❖ Dilara Aydm (2014), “Customer Perception towards the Internet Banking Service
Performed by the Turkish Banking System”.
❖ Harihara Sudhan Ramakrishnan (2012), “A Study on Customer Perception and Awareness
in the Usage of Internet Banking”.
❖ Jaspal sings “Digital Payments in India”
❖ Jayaram J (2018), “Problems and Prospects of E-banking: A study with reference to banks
in Kerala”.
❖ K. Anitha, “A Study on Challenges and Opportunities in E-banking Sector in India”.
(http://www.shanlaxjournals.in).
❖ Ms. Preeti sharma (2010), “Paper on E-banking”, Published by CBS E-Journal, Biz n
Bytes, Vol. 6.
❖ Rashmi Sharma (2014), “Prospects and Challenges in E-banking (A case study of selected
banks providing e-banking services in Rajasthan)”.
❖ Revathi Palaniswamy (2016), “Digital Banking Challenges and Opportunities in India”.
(ResearchGate).
❖ Reeta Clonia (2017), “E-banking in India: Current and future prospects”. (ResearchGate).
❖ Rimpi Jatana and Rajinder Kumar Uppal (2007), “E-banking in India: Challenges and
Opportunities”.
❖ Ruby Shukla and Pankaj Shukla (2011), “E-banking: Problems and Prospects”. (IJMBS
Vol.1, Issue 1).
❖ Sadaf Firdous (2017), “Impact of Internet Banking Service Quality on Customer
Satisfaction”.
❖ Shri. Tonape Chandrashekhar Laxman (2015), “A study of customers’ perception and
awareness about E-banking in Solapur district.” (53-82)
❖ S.P. Dhandayuthapani (2012), “E-banking Practices and Customer Satisfaction- in
Thanjavur District, Tamilnadu: An Empirical Study”.
❖ Suja Krishna (2018), “Customer’s Perception towards the Usage of the E-banking
Services”.
59

URL LINKS
❖ https://en.m.wikipedia.org/wiki/Online_banking
❖ https://www.quora.com/What-are-the-challenges-of-e-banking
❖ https://www.encyclopedia.com/finance/encyclopedias-almanacs-transcripts-and-
maps/electronic-banking
❖ https://www.ukessays.com/essays/information-technology/importance-of-e-
banking.php#:~:text=IMPORTANCE%20OF%20E%2DBANKING%3A,for%20both%2
0customers%20and%20banks.&text=It%20provides%20ways%20for%20international,an
y%20place%20have%20internet%20access.
❖ https://www.slideshare.net/rohitchanda/e-banking-in-india-15655155
❖ https://www.researchgate.net/publication/288965580_Problems_and_Prospects_of_e-
banking_in_India
❖ https://www.google.com/amp/s/www.enterpriseedges.com/role-of-digital-banking-
india/amp
❖ https://www.slideshare.net/arpanmukherjee77/ebanking-project-56134519
❖ https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2929164
❖ https://www.ijert.org/electronic-banking-in-india-innovations-challenges-and-
opportunities
❖ https://shodhganga.inflibnet.ac.in/handle/10603/287114
❖ https://www.academia.edu/5337192/_E_BANKING_IN_INDIA_AND_ITS_PRESENT_
SCENARIO_AND_FUTURE_PROSPECTS_
60

ANNEXURE
QUESTIONNAIRE
Dear Respondent,
I am AKSHAYA KUMAR pursuing MCOM in Mangalore University, Mangalagangothri. I am
conducting a survey on a topic called “PROSPECTS AND CHALLENGES IN E-BANKING:
A PERCEPTION STUDY.” I request you to spare your valuable time to respond my
questionnaire. Your precious opinion will help me in completing my project. I assure you the data
generated shall be kept confidential.
1. Name: ___________
2. Gender
o Male
o Female
3. Age
o 18 - 24
o 25 – 35
o 36 – 44
o 45 – 55
o 56 – above
4. Marital Status
o Married
o Single
5. Educational Status
o Under Graduate
o Graduate
o Post Graduate
o Professional
61

6. Monthly income
o Under 10,000
o 10,000 – 25,000
o 25,000 – 40,000
o 40,000 – 55,000
o Above 55,000
7. Profession
o Private Sector
o Public Sector
o Retired
o Student
o Does not work
8. Where you live?
o Rural
o Semi urban
o Urban
9. Number of the Banks you transact with?
o 1
o 2
o 3
o 4 and more
10. Do you use E-banking?
o Yes
o No
62

11. Which Banking channel you are using?
o Internet
o ATM
o Mobile
o Branch
12. How often do you use E-banking?
o Daily
o Weekly
o Monthly
o Yearly
o Never
13. How many years of E-banking services do you use?
o Less than 1 year
o 1–2
o 2–3
o 4–5
o More than 5 years
14. Reasons to use E-banking (You can choose more than one option)
o Banking transactions are easy
o 24 hours availability
o Save time
o Curiosity
o Transaction cost is cheap
15. Are you satisfied with your bank’s E-banking service?
o Yes, I am satisfied
o No, I am not satisfied
63

16. Which features of E-banking do you use? (You can choose more than one option)
o Pay the bills
o Pay rent
o Check the account
o Transfer money between accounts
o Requesting credit card and credit card transactions
o Purchase and sale of foreign exchange
o Stock transactions
17. Are service charges for E-banking fair?
o Yes
o No
18. What would encourage you to use more the E-banking services?
o Rewards
o Simpler Service
o Higher security
o Free translation
19. How you perceive E-banking system?
o Complicated Technique
o Not easy
o Difficult accessibility
o Rigidity
o Don’t get required response
o Poor feedback
64

20. Degree of confidence on E-banking
o Little
o Some
o Not at all
o High
o Very high
21. Reason do not use E-banking (You can choose more than one option)
o Not sufficient knowledge about E-banking
o The absence of the habit of using E-banking
o Bank officer should be Infront of me during the process
o The idea of making an incorrect operation
o Be difficult to use E-banking
o Not safe
22. Which type of service mostly use (You can choose more than one option)
o Balance and transaction history search
o Online Fund transfer
o Lock/active debit cards
o Card to card transfer
o Request cheque book
o Open FD
o Stop payment
o Railway pass
o Shopping
o Ticket booking
o Share payment
65

23. Disadvantages of E-banking
o Lack of assistance
o Security concern
o Overall difficulty of using E-banking system
o Limited service
o Impersonality on internet service
o Unreliable
o No disadvantage
24. Recently banks offer any following new services
o Online mortgage application
o Online small business loans
o Online trust funds
o Online investment and options management
o Online deposit accounts
o Online order of traveler’s cheque
o E-signature
66

25. Please you tick as appropriate for yourself.
The meaning of numbers as follows:
(1) Strongly Disagree (2) Disagree (3) Not Certain (4) Agree (5) Strongly Agree
Statements 1 2 3 4 5
i. E-banking service is less costly than other banking services.
ii. E-banking transaction procedures are simple and straightforward.
iii. I am satisfied with E-banking because I do not have to go to bank.
iv. Bank give enough information about the E-banking.
v. Are transactions through internet secure?
vi. Manual banking is more convenient than E-banking.
vii. Do you think that human contact is important for banking relation?
viii. I think, I entered my personal data is protected during the process.
ix. E-banking is more effective than branch banking about time.
x. It is convenient because it eliminates the risk of carrying cash.
xi. Websites are safe that offer E-banking service.
xii. I have any problem about E-banking service, banks provide support.
xiii. Not have sufficient knowledge about E-banking.
xiv. E-banking is complicated to use.
xv. E-banking doesn’t demand a lot of effort.
xvi. I have information about the E-banking transaction.
xvii. E-banking transactions are complex.
26. Suggestions: ______________
67

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PROSPECTS AND CHALLENGES IN E-BANKING:

DISSERTATION SUBMITTED TO MANGALORE UNIVERSITY IN

UNDER THE GUIDANCE OF

DEPARTMENT OF POST GRADUATE STUDIES AND RESEARCH IN

Electronic copy available at: https://ssrn.com/abstract=3957677

This is to certify that MR. AKSHAYA KUMAR is a bonafide student of IV Semester,

The dissertation report entitled “PROSPECTS AND CHALLENGES IN E-BANKING:

Date: ( DR. VEDAVA P)

Electronic copy available at: https://ssrn.com/abstract=3957677

Date: (MR. ABHINANDAN)

Place: Mangalagangothri Guide

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Date: AKSHAYA KUMAR

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I express my deep sense of gratitude to my project guide MR. ABHINANDAN, Lecturer,

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CHAPTER NO. TITLE PAGE NO.

Chapter 1 INTRODUCTION 1-4

Chapter 2 LITERATURE REVIEW 5-11

Chapter 3 CONCEPTUAL FRAMEWORK 12-25

Chapter 4 DATA ANALYSIS AND INTERPRETATION 26-53

Chapter 5 FINDINGS, SUGGETIONS AND CONCLUSION 54-58

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1.1 Executive Summary

1.2 Objectives of the Study

1.3 Hypothesis of the Study

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1.5 Research Methodology

1.5.1 Research Problem

1.5.3 Research Area

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1.5.4 Sample Size

1.5.5 Research Techniques

1.5.6 Data Collection Method

1.6 Limitations of the Study

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Chapter 2: Literature Review

Chapter 3: Prospects and Challenges of E-banking

Chapter 4: Data Analysis

Chapter 5: Findings, Suggestions, and Conclusion

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3.1 ELECTRONIC BANKING

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3.5 Various Forms of E-banking

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8. Point of Sale (POS)

9. Electronic Data Interchange (EDI)

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13.Electronic Clearing System (ECS)

3.6 Difference between Traditional Banking and E-banking

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1. Traditional Banking Habits

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