CUSTOMER PERCEPTION TOWARDS MOBILE BANKING SERVICES – A

STUDY IN TIRUPPUR DISTRICT

CHAPTER- I

INTRODUCTION AND DESIGN OF THE STUDY

INTRODUCTION

Bank is a financial institution that accepts deposits from public and lends money to
needed persons. The contribution of banks in economic system much quite because no
country survive or developed without the banking systems, it boosts the economy by way of
increasing GDP, issuing currency, funding and assisting with various welfare plans of the
Government. Growth of the banking industry is tremendously developing agriculture,
business, education, etc., Banks are considered as an economic indicator of the country.
Development in information and communication technology (ICT) leads to changes in
various services industries including the banking sector. The banking sector has changed its
traditional operations and services into modern after introduction of computers. Technology
up gradation has become most essential for the banking sector. The range of services is
increasing day-by-day and customers are enjoying the convenience offered by the banking
sector. In order to retain the customers and meet the heavy competition banks are ready to
adopt various modern innovations, as a result it offers various.
Now the trend is moved to communication devices like smart phones, so banks are
changing their face of services to mobile banking (M-Banking). The availability of smart
phones with a number of features will attract more number of persons to use it. Therefore the
usage of mobile phones in world level is increased. India is one of the fastest growing
countries in terms of mobile use. Now mobile phones are not only a medium of
communication, but also widely used for mobile services. With the introduction of m-
commerce through wireless internet services and smart phones, people are enjoying various
m-services such are M-agriculture, M- education, M-finance and M-shopping.
Mobile based services or M-services are defined as electronic services that are delivered
to the customers via mobile technologies using mobile devices. M-services is able to provide
services anywhere at any time. Due to this reason this concept becoming popular among
people. Investments in M-services are growing and these services stand to offer the promise
of creating a social impact in the area of healthcare, agriculture, financing, governance and
education etc., As these days technology is considered as the easiest mode of reaching
customers in any remote login area, private and public sector banks have to efficiently use the
internet and mobile base

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 3G or 4G technologies to reach their clients and spread knowledge about their banking
functions.

Mobile banking is replacing Internet Banking; Most of the customers prefer mobile
banking because of its quick accessibility, no restriction in the number of transactions,
reduced manpower and efficiency of operation. In recent years, the banking industry around
the world has been undergoing a rapid transformation. The deepening of information
technology has facilitated better tracking and fulfillment of commitments, multiple delivery
channels for online customers and faster resolution of issues.

In the early 1990s, in India the deregulation process has created heightened competition
and higher risks for banks and financial intermediaries. Currently, the customer expects high
quality services from banks with affordable price and also need new services in order to
safeguard their satisfaction. Mobile banking is newly adopted service in both Public and
Private sector. According to Reserve Bank of India’s monthly bulletin, mobile wallet
transactions were raised in 16 in May 2018.

NEED FOR BANKING

A bank is a financial institution which is involved in borrowing and lending money.

Banks take customer deposits in return for paying customers an annual interest payment. The
bank then uses the majority of these deposits to lend to other customers for a variety of loans.
The difference between the two interest rates is effectively the profit margin for banks.
Banks play an important role in the economy in offering a service for people wishing to
save. Banks also play an important role in offering finance to businesses who wish to invest
and expand. These loans and business investment are important for enabling economic
growth. Banks serve as a cornerstone of social and economic development. Here are a few
reasons,
i. Banks serve as an intermediary for trade and trade related transactions
ii. Banks are institutions that regulate exchange rates, aid in currency circulation and
management, provide funds for development and for safekeeping of money and/or
precious items
iii. Banks are monetary tools utilized to regulate inflation
iv. Banks support business entities and individuals by providing financial services and in
any case non-financial services for growth, education, consumption, housing and
transportation needs

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CUSTOMER PERCEPTION

Perception is a marketing concept that encompasses a customer's impression,

awareness and consciousness about a company or services. The study about customer
perception is getting more important because the company or service provider should retain
its customers by way of analyzing their behavior. Customer perception is typically affected
by advertising, reviews, public relations, social media, personal experiences and other
channels.
STAGES IN PERCEPTION

Perception establishes the meaning about a product or brand when a consumer makes
the initial contact. In marketing, this is described as consumer information processing. At this
stage all of the senses are engaged in receiving brand marketing communicate messages. In
the marketing literature, four distinct stages of perception occur during consumer information
processing, they are explained below::
Figure1.1.Perception process

The above figure1. 1 clearly explains the perception process. The first stage in perception
process is sensation, followed by attention, interpretation and retention. While consuming a
product or rendering services from professionals these stages are involved.

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SENSATION

Sensation describes what occurs when a person's senses are initially exposed to the
external stimulus of a product, service and brand marketing. The sensory receptors of a
consumer are engaged by product or brand cues through sight, sound, smell, taste and texture.
For example, Starbucks engages all the senses in its sensory brand marketing. A customer
who enters a Starbucks coffee shop may hear the sounds and smell the aroma of the grinding
of fresh coffee in the store. Background music and a unique store design round out the
experience of the taste of hot or cold coffee and food products that can be enjoyed in-store at
quaint cafe tables.

ATTENTION

Consumer information processing, attention occurs when a person lingers and gives
the mental processing capacity to the external stimulus from a product, service and brand.
Selective perception is when a consumer pays attention to messages that are consistent with
her attitudes, beliefs and needs. When a product is inconsistent with these factors, the
consumer will withdraw attention.

INTERPRETATION

Interpretation occurs when a person assigns a meaning to the sensory stimulus from a
product or brand marketing. Comprehension is aided by expectations and familiarity. A
consumer scans his memory to retrieve previous experiences with the brand or a similar
brand. Store-brand marketing frequently capitalizes on the interpretation stage when product
packaging design contains logos, colors and other elements that are similar to national brands
that consumers are generally more familiar with.

RETENTION

The last stage of the consumer perception process is the retention stage. This is marked by the
storage of product or brand information in short-term and long-term memory. The marketer's
goal is to provide positive stimuli in the proceeding stages that translate into consumers
storing the information about the product or the brand into long-term memory.

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FACTORS FOR CONSUMER PERCEPTIONS
Kotler (2005) says that perception is a process through which information is received,
selected, organized and interpreted by an individual. Factors that influence consumer
perceptions of a brand are:
• Quality
It is one of the factors which consumers take into account when making their choice of
brand. According to Uggla (2001), an important part of brand identity is quality.
• Price
According to McDonald and Sharp (2000) price can be used for brand choice in two
ways: either by going for the lowest price to escape financial risk or by going for the highest
price to achieve product Loyalty. People sometimes felt that the higher charger, priced goods
were superior and low priced goods were emperor goods. Hence price is an important factor.
Consumers are always conscious about price they compare it with other brands before buying
the product.
• Influence by others
The advices of other people have a strong influence on consumer buying behaviour.
However, the degree of such influence depends on the situation or individual. Later adapters
tend to be more influenced than early adopters. The members in customer family are also
induced to buy some products. Marketers cannot sharpen the influence of others. For
example, a consumer wants to buy dauber, while in the shop he or she comes in contact with
a friend who says Colgate makes my teeth brighter and whiter. The consumer can be forced
to buy Colgate. But he also considers about the influencing factor.
• Advertising
The aim of the advertisement is to build awareness. Advertisement is a notification
form of communication. According to Aaker (2000), to make a brand strong of the product or
service, it needs to have advertising, promotion and packaging embrace regular positioning
strategy over a period of time. Some ways of reaching and communicating with the
consumers is with the help of advertising through television, cinema, radio, billboard, etc.
Modern technology also gave a scope for new forms of advertising option to marketers such
as mobile SMS, ads via Facebook and other social media.
• Packaging
The process of designing the cover of a brand/product is called packaging. According
to Kotler et al (2000), the packaging is a type of advertisement that sales duties such as

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attracting consumers, describing and selling the product. The attractive packaging will impress
the buyer to buy it.
•Convenience
According to Lin and Chang (2003) on consumer and easy access to brand/product in
store when buying low involvement product convenience of a brand has a significant effect.
Availability of product also influenced in perception.
INFLUENCE OF CONSUMER PERCEPTION ON THE PERFORMANCE OF
A BUSINESS
The success or failure of a business to a great extent is influenced by consumer
perception. Survival of business depends upon customer satisfaction. To know the
satisfaction level the business unit must conduct lots of market research or survey. In this
manufacturer or marketer tries to know customers expectation, perception and satisfaction of
a particular product or service. Customers share their actual experience to the manufacturer
regarding its Price, quality, branding, availability, branding, packaging and usefulness etc.,
The positive opinion about a specific Goods or Service will result in greater business
while a negative view about a specific product or company will lead to its losses. Thus,
consumer perception, not only influences consumer behavior, but also affects the
performance and profitability of the business. This is the reasons for large business houses
spend huge amounts of money to influence the perceptions of consumers.
CONSUMER PERCEPTION AND IMPLICATIONS FOR MARKETERS
Consumer perception has implications for a marketer. The marketer should
understand that people perceive things differently because of the perceptual mechanism that
differs between people and their taste. Every person is unique in himself with unique
backgrounds, experiences, expectations, etc., and so the resulting perceptions are also unique.
PERCEPTUAL SELECTIVITY:
• The marketer should manage the sensory and perceptual factors to influence consumers.
• Human beings are simultaneously exposed to various stimuli in his/her environment.
The choice of the stimuli that they select would depend on what they feel is relevant for
them and are appropriate for them. In the field of marketing, stimuli could include the
product, the brand name, the features and attributes, the packaging, the advertisement,
etc..
• The marketer should give attention to factors external and related to the stimuli, as well
as to factors, internal and related to the perceiver. External stimuli could take the form
of size, intensity, contrast, motion, repetition, familiarity, novelty, etc. The stimuli
should possess one or more of such characteristics to get selected. Internal stimuli refer
to factors
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 that are related to an individual viz., factors like motivation, learning, personality and
self-imAge etc. Perceptual selection of a person would depend upon what he considers
relevant and appropriate as per phase.
• Keeping perceptual selectivity in mind, marketers should offer different products for
different segments and position them accordingly.
• In order to get noticed, the marketer should understand that the absolute threshold for a
stimulus should be kept high;
• The marketer should understand that while making changes in his 4Ps, he should keep
the differential threshold in mind. For certain changes like a decrease in price or
discounts, he could keep the high so that it is noticeable, and consumers are attracted
towards the discounted price; and in case of price increase, he should keep the low and
increase the price gradually, so that it does not get noticed by the consumer. They
should be used in a manner that while positive changes (e.g. reduced price, discounts,
“extra” quantity, product improvement etc.) should be noticeable to the consumers,.
• Marketers should understand that consumers are selective in their exposure to the
various stimuli that they are exposed to, and often block themselves from unpleasant
and undesirable stimuli (Selective exposure). The marketer must try and present a
pleasant stimulus.
• Of the many stimuli that people are exposed to, people are attracted to those stimuli that
they consider to be relevant in terms of a match with their needs (Selective attention).
• Sometimes people may select stimuli which they later find as psychologically
threatening and uncomfortable. In such cases, they have a tendency to filter out that
stimulus, although initial exposure has taken place (Perceptual defense). The marketer
must try and present pleasant stimuli.
• When exposed to a large number of stimuli simultaneously, people may often block the
various stimuli, as they get stressed out (Perceptual blocking). So a marketer must not
clutter the media with too much of stimuli.

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PERCEPTUAL ORGANIZATION:
During perceptual organization, the marketer should give attention to factors external
and related to the stimuli, as well as to factors, internal and related to the perceiver. The
external factors refer to the external and observable characteristics of the stimulus, i.e. of the
person, object, thing or situation; in marketing terms, it refers to the characteristics of the
product, brand, packaging, advertisement, etc. Such factors would include size, intensity,
motion, repetition, familiarity and novelty, color and contrast, position, and isolation.The
individual factors refer to factors internal to and related to the perceiver; in marketing terms,
it refers to the characteristics of the consumer. For example, motivation, learning, personality
and self- imAge etc. The marketer should aim at making the principles of the Gestalt
philosophy work in the product's favor. Drawing from the principles of perceptual
organization, marketers should keep the following in mind.
Figure and ground:
While placing their brands in a store, the packaging should be such that the brand
stands out against the many others which should recede to the background. Thus, the
packaging design should be chosen very carefully. While designing advertisements, it is
essential that footage is given to the product and or brand rather than the spokesperson
(model, celebrity, expert etc.). The marketing stimulus (for example, the product and its
image as well as the message), must be seen as the figure and not the ground.
The advertisements should not be so entertaining, visually or emotionally that such
elements become the figure and the product recedes to the background. The target audience
should be able to differentiate the product image and the message as the figure, clearly
distinct from the scenery or the model, which will be the ground. The product should stand
out as the figure and the spokesperson should recede into the ground.
Grouping:
Consumers perceive that products that are similar to each other in appearance and use
are related to each other. That is why the marketers of “me-too” products try and copy the
packaging of the original brands. When a marketer launches new brands, they should try and
brand it as the blanket family name or go for a corporate name combined with individual
product names, and have the brand logo. Consumers perceive the new brand to be related to
the old one, in terms of the fact that they share the same logo.
The benefits associated with the original product get translated to the newer product
as well. Marketers should design their promotional messages in a manner that uses cues and
stimuli in close proximity to the product. The result is that the positive feelings generated by

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one or few stimuli can be translated to the rest in totality, so as to generate a positive
outcome. Consumers relate the various stimuli that lie in proximity to each other. A product
is perceived in the same way as the other stimuli are perceived in the proximate surroundings.
If the mood generated by the surrounding. If the mood generated by the surrounding stimuli
is regal and royal, the product tends to get related to sophistication and style. So the marketer
must be careful in using stimuli that blend perfectly with the product.
Closure:
The principle of closure can be applied by a marketer to encourage audience
participation, which increases the chance people will attend to the message. Teaser elements
may be used in advertisements, and the consumers may be asked to fill up the gaps. This
generates consumer attention and involvement, interest and excitement.
Simplification:
The marketer should avoid a clutter of information. The information that he needs to
provide should be short, crisp and precise. The important inputs that the marketer wants to
provide to the consumers must be highlighted in size, font and color.
PERCEPTUAL INTERPRETATION:
Perceptual interpretation is also influenced by the forces external and related to the
stimuli, as well as forces internal and related to the perceiver. It is also affected by the
situation under which perception takes place.
• People have a tendency to perceive things which they feel are relevant for them
(Selective perception). Marketers should relate the product and service offerings
through a need-benefit association, and could also go for need-benefit segmentation.
They must work within the consumer's needs to categorize products.
• People often judge others (or the stimuli) on the basis of physical appearance and
looks (Physical appearance). Marketers should design their product and service
offerings aesthetic. They must take advantage of physical appearance as an
influencing factor to their advantage. They should also use attractive models as their
spokesperson, which are more persuasive than average looking models.⦁ People judge
another person (or the stimuli) on the basis of the characteristics of the group to which
he belongs (Stereotypes). Thus, marketers launch a product/service under the blanket
family name, so that the image that a time tested successful enjoys can be transferred
to the new offering as well. The marketer should be careful that in this case, the
offering is not disappointing to the customer, lest the image of the family brand could
be tarnished.

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 • People make interpretations on the basis of irrelevant and not meaningful stimuli, so
the products should be positioned accordingly. Aesthetics and looks have a big role to
play.
• People often make judgments on the basis of the first impression. A new product
should never be introduced in the market before it has been market tested. In case it is
not tested and launched, and subsequently fails, it could be disastrous for the
company. All subsequent attempts to satisfy the customer would fail as first
impression is long lasting.
PRODUCT AND SERVICE OFFERING AND IMAGERY:
While making purchase decisions, consumers are faced with numerous alternatives,
and purchase decisions are often made on the basis of the image that the product/service
offering or the brand holds.
PERCEIVED PRICE AND IMAGERY:
The manner in which a marketer prices a product and creates an image also has an
impact on consumer decision making. Marketers must identify appropriate reference prices
(from a consumer’s perspective), and estimate those levels (higher/lower) that are regarded as
uncomfortable and unacceptable by consumers. They must price their offerings accordingly.
• Consumers consciously or sub-consciously, give a lot of importance to fairness of the price.
• Various kinds of slogans in various formats can be used by a marketer to his/her
advantage; Slogans tend to communicate “value” to the customer, through perceptions of
increased savings and lower price. The wording and the semantics used to denote price or
any information related to prices can also affect a consumer’s perception about price.
• Tensile prize claims are spread over across a range have a greater impact on consumer
psyche than objective price claims that are indicative of a single discount. Tensile price
claims help build store traffic, and subsequently larger sales and revenue.
• Bundle pricing has a positive effect on the consumers’ perception. The consumer feels
happy with regard to the increased savings that he would be able to get out of buying the
products together, rather than buying them individually at a higher price.

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PERCEIVED QUALITY AND IMAGERY:
Marketers must communicate product or service features in a manner that develops
perceptions of product or service quality. Consumers judge the quality of the product offering
on the basis of internal and external causes; internal cues refer to the physical characteristics
internal to the product or service, like size, color, etc. while extrinsic cues refer to cues that
are external to the product or service, like the price of the product, brand imAge retail store
imAge or the country of origin.
PRICE/QUALITY RELATIONSHIP AND IMAGERY:
Consumers relate price with quality and price is seen as an indicator of quality.
Consumers also relate the increased price to the product/service attributes, features and the
overall benefits that the offering provides. However, when a consumer has prior experience
with the brand or is familiar with the brand name and the brand imAge price would become a
less important factor in the assessment of quality.
RETAIL STORE AND IMAGE:
Just as product and service offerings are positioned and clearly indicate the segment(s)
for which they are aimed, similarly retail stores are also positioned. Not only are they
indicative of the products/service offerings that they sell, but the layout, design, ambience and
the price of the offerings clearly demonstrate the segment(s), for which they exist. Consumers
tend to shop in stores that have images consistent with their own self-images. Thus, retail
stores create images for their self, which illustrate the kind of and the quality of products they
stock and carry.
• They layout, design and ambience of a retail store reflects the kind of product lines it
carries.
• Consumers relate the well-known retail name with the assortment that it carries. They
perceive high quality and value in goods that bears a well-known retail name. The
effects of the store image translate into the products as well and vice versa.
• The retail store and its image is greatly impacted by the price of the offerings and the
discounts that it offers. Stores that offer a small discount on a large number of items
are perceived to be having lower prices overall than stores that offer large discounts
on a smaller number of products.

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MANUFACTURER NAME AND IMAGE:
Consumers are more receptive to product and service offerings that emanate from a
respectable, credible and reputed manufacturer, rather than one who is less favorable, or
neutral, or totally unknown.
BRAND IMAGE:
Consumers tend to form images of a brand; brand image is defined as the manner in
which a consumer forms perception about a brand. Marketers should aim at creating and
maintaining a positive image about their brands. Such an image gets created by product
features, attributes, quality as well as the satisfaction.
PERCEIVED RISK:
The purchase process results in a state of anxiety and tension with respect to the
negative consequences that could result from product use. This state is known as “perceived
risk”; it refers to a feeling of uncertainty that arises within an individual when he fails to
predict the consequences of product choice, usage and resultant experience.
Perceive risk can be lessened or even ignored, thereby ending the state of tension and
anxiety. Marketers must identify the consumer's perception of risk and help reduce the
perception of risk through risk reduction strategies. Some risk-reduction measures that can be
taken by the marketer are as follows: i) providing information; ii) building and maintaining
brand loyalty and/or Store loyalty; iii) creating a favorable brand image and/or Store image.
STUDY AREA PROFILE – TIRUPPUR DISTRICT
Tiruppur District is a district of the Tamil Nadu, which is situated in India. It was
formed in February 2009 as the 32nd District of Tamilnadu, carved out of the Coimbatore and
Erode districts. It is one of the ten most industrialized and economically developed districts of
Tamil Nadu. The Tiruppur banana industry, the cotton market, Kangeyam bull and the
famous article butter, among other things, provide for a vibrant economy. Every year, the
Tiruppur Banian industries contribute a reasonable share in Indian Export business. The city
of Tiruppur is the administrative headquarters for the district. As of 2011, the district had a
population of 2,479,052 with a sex-ratio of 989 females for every 1,000 males.

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 HISTORY
The district is named after the city of Tiruppur, In Mahabaratham Pandavas returned
the cattle captured by enemies and returned to Dharapuram Nirai Thiruputhal and become
Tiruppur.
Industrial and business activities are the predominant core area of Tirupur and its
surroundings. Since the 1990s, the exporters of Tiruppur had been urged to form the new
Tiruppur District. They believed that a new district would facilitate administration of the
region and allow more aggressive development measures. Before the formation of Tiruppur
district, Avinashi, Madathukulam, Palladam, Tiruppur, and Udumalpet were talks of
Coimbatore district; and Dharapuram and Kangeyam were talks of Erode district.
GEOGRAPHY AND CLIMATE
Tiruppur district lies in the western part of Tamil Nadu and bordering the Western
Ghats. The district enjoys a moderate climate. The district is surrounded by Coimbatore
district in the west, Erode district to the North and northeast and Karur district in the east and
Dindigul district in the southeast. To the south the district is surrounded by Kerala state
(Idukki District). The district has an area of 516.12 square kilometers. The southern and
southwestern parts of the district enjoy maximum rainfall, due to the surrounding of Western
Ghats. The rest of the district lies in the rain region of the Western Ghats and experiences
hygienic climate most parts of the year, except the extreme east part of the district.
The mean maximum and minimum temperatures for the Tiruppur city during the
summer and winter vary between 35 °C to 18 °C. The average annual rainfall in the plains is
around 700 mm with the North East and the South West monsoons contributing to 47% and
28% respectively to the total rainfall. The major rivers flowing through the district are Noyyal
and Amaravathi. The Amaravati River is the main source of irrigation in the district.
Amaravathi Dam, which created Amaravathi Reservoir, is located at
Amaravathinagar.Thirumurthy dam, which is created by the PAP project is situated in this
district. Both Amaravathi dam and Thirumurthy dam are the prime source of irrigation in the
district, whereas the upper dam is another dam which receives water from seasonal rains.

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 DEMOGRAPHICS
According to the 2011 census, Tiruppur district had a population of 2,479,052 with a
sex-ratio of 989 females for every 1,000 males, much above the national average of 929. A
total of 241,351 were under the age of six, constituting 123,612 males and 117,739 females.
Scheduled Castes and Scheduled Tribes accounted for 15.97% and.22% of the population,
respectively. The average literacy of the district was 71.02%, compared to the national
average of 72.99%. The district had a total of 712,210 households. There were a total of
1,266,137 workers, comprising 130,331 cultivators, 216,945 main agricultural laborers,
36,139 in household industries, 785,181 other workers, 97,541 marginal workers, 5,486
marginal cultivators, 29,388 marginal agricultural laborers, 4,849 marginal workers in
household industries and 57,818 other marginal workers.
The city of Tiruppur, is at the heart of the district. Textile center is the main source of
economy. The agricultural sector is predominantly small and marginal farmers with land
holdings of less than two hectares. Tiruppur is also known as the knitwear capital of India,
accounting for 90% of India's cotton knitwear export. It has spurred up the textile industry in
India for the past three decades. It contributes to a huge amount of foreign exchange in India.
In the Fiscal year 2013, exports were ₹17, 500. The city provides employment to around
400,000 workers, with the average salary per worker being around ₹ 9,000 per month.
Special Industrial Parks have been developed to support the textile industry. Nethaji
Apparel Park, Tirupur Export Knitwear Industrial Complex, SIDCO Industrial Estate and J.
S. Apparel Park are a few that are operational. Nethaji Apparel Park has 53 companies
manufacturing knitwear for exports .The NAP presently provides employment to 15,000
people and generates export revenue of Rs. 15 billion from the apparels produced in it.
Tirupur Export Knitwear Industrial Complex was established in 1992 and has 189 sheds
builtover a 4200 square foot area. World’s largest retailers
including C&A, Nike, Walmart, Primark, Adidas, Switcher, Polo Ralph
Lauren, Diesel, Tommy Hilfiger, M&S, FILA, H&M, Reebok import textiles and clothing
from Tiruppur.

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 It houses more than 6000 Textile units which predominantly consist of Knitting and
Garments, Tirupur currently undertakes exports of over USD 3 Billion (90% of India’s
Knitwear Exports) European countries are the major importers of Tirupur Textile Products
(majorly Knitted variety) In order to strengthen and promote the Textile Industry, a number
of initiatives have been undertaken by TEA (Tiruppur Exporters Association), they are
• Tirupur Exports Knitwear Industrial Complex
• Inland Container Depot
• TEAKTEX : Garments Processing & Production Complex
• NIFT-TEA Knitwear Fashion Institute
• Nethaji Apparel park
• TEA-St John Logistics
• TEA-E-Readiness Center : Jointly with Microsoft
• India Knit fair.
SIGNIFICANCE OF THE STUDY
With the changing environment, banks have implemented tele-banking, mobile
banking and call center services, ATM and other services. Due to the rapid change in
technology and the entry of private and foreign banks a number of new products, services and
delivery channels have been introduced. Among the major initiatives, mobile banking is
being implemented by the banks for the convenience of the customers. Mobile banking is a
subset of electronic banking which underlies not only the determinants of the banking
business, but also the special conditions of the mobile commerce. Technological innovations
are having significant importance in human general and professional life. This area can safely
be attributed to as technology revolution. The quick expansion of information technology has
imbibed into the lives of millions of people. However, not enough is known regarding how
customers perceive and evaluate electronically delivered services. The spread of mobile
technology across the globe is one of the most remarkable achievements in the last decades.
Mobile phones have increasingly become tools that customers use for banking, payments,
budgeting, and shopping. Advances in mobile technology have revolutionized almost every
facet of society, from information to education, granting enhanced access to an ever-growing
number of people in the country.

STATEMENT OF THE PROBLEM

“Change will be in permanent mode” these statements justify the importance of tending to
adopt some new things. Business people were succeeded when they focus on new trends
because, the customers are the boss and their satisfaction is a crucial factor for survival of the

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business, so business people are always passion about fashion. Banking industry also admires
and adopts the technological innovations in their service offering. Indian Banking
Association is urged to heavily invest in technologies that can evolve and protect against
future threats, as well as tackle current pressures from.

The Global Mobile Banking Report found that m-banking is rapidly adopted by new
users and it is the largest banking channel by volume of transaction. The most interesting
finding was that adoption rates are highest in developing countries reaching about 60-70% in
India and China. The main reason of increasing in trend of m-banking is that it helps to
perform banking activities at anytime and anywhere. M-banking ensures customers in
clearing and settlement of transactions through nationwide and enabling real fund transfer in
any bank account and operated by users using mobile banking services of any operators. The
convenience of use of mobile, people can take advantage of banking services 24 hrs a day and
wherever he needs. It not only saves time for costumers but also reduce costs for banks.

In India the number of mobile phone users is increasing year by year in 2017 it is
recorded as 730.7 million. It is predicted that the number of smart phone users in 2021 are
468 million by 2021. Even though in our country, more than 60% smart phone users, banks
were having only few percentage of mobile banking users. Mobile banking continues to be a
focus area for all banks in India. The present study indicates that they are not only looking at
this channel as a way to increase their customer engagement in urban areas, but also to reach
out to new ones in rural regions, and thereby significantly further their financial inclusion
agenda. Mobile banking services in India are still in their infancy, leaving a great deal of
room for development. The banks in India use this latest technology to reduce their
operational costs and increase customer base. An important question here is why customers
are slow in adopting mobile banking. The answer to this question could help banks to come
up with a right solution to improve their mobile banking services and Mobile banking usage
rate. Hence it induces the researcher to study about customer perception and their satisfaction
towards mobile banking services in Tiruppur District.

16
 SCOPE OF THE STUDY

This study is confined to customers who are having account in public or private banks
and their opinion towards M- banking services offered and so the research scope is limited
and more specifically, it is associated with mobile banking. This study is narrow and
extensive due to the selection of the study area, namely the nine talks of Tiruppur District,
namely Tiruppur North, Tiruppur South, Avinashi, Uthukuli, Kangeyam, Madathukkulam,
Palladam, Dharapuram, and Udumalpet. However the research topic Customer Perception
towards Mobile banking services in Tiruppur District has wider scope for future research.
This study focuses their attention to analyze the customer’s perception and satisfaction of
mobile banking services offered by both private and public sector banks.

OBJECTIVES OF THE STUDY

The main objectives of the study are:

• To study the customer awareness towards Mobile Banking.

• To evaluate the factors, influencing the use of mobile banking.
• To inquire the level of utilization of mobile banking.
• To understand the level perception towards mobile banking.
• To find out the level of satisfaction among the customers towards mobile banking.
• To offer suggestions for the improvement of mobile banking services.

PILOT STUDY

Before starting the main study, it was planned to do a pilot study in order to find out
whether the research methodologies, instruments, processes and plans were on the right track
or not. A sample of 100 bank customers in Tiruppur District was randomly selected and
surveyed. Questionnaires were personally distributed to and collected from each participant
in order to reduce non sampling administrative errors.

The outcomes of the pilot study were quite encouraging. Research methodologies,
instruments, measurement scale, and processes used were on the right track. After getting
positive results from the pilot study, it was decided to proceed with the main study.

RESEARCH METHODOLOGY

The formidable problem that follows the task of defining the research problem is the
preparation of the design of the research project, popularly known as the Research Design.
The Research Design constitutes the blue print for the collection, measurement and analysis
of Data. The methodology of the present study is outlined here below::

17
 Population

Population for selecting sample units of the study includes bank customers who are
having account in public and private banks.

Period of the Study

This study was carried out for the period of one year from September 2017 to August
2018.

Sampling Design

A sample design is a definite plan for obtaining samples from a given population. It
refers to the technique or the procedure the researcher would adopt in selecting items for the
sample.

1.10.3. A. Sampling Technique

In this study, the purposive stratified sampling technique is used to select the sample.

B. Sample Size

The determination of sample size is a very important issue, because samples that are
too large may waste time, resources and money. While samples that are too small may lead to
inaccurate results. The questionnaire is distributed and collected from 50 bank customers from
each talks in Tiruppur District, as a total of 450 questionnaires. Out of which 384 questionnaires
which are properly filled are taken for the study.

Source and Tool for Data Collection

In this study both primary and secondary data were used. The primary data is
collected through a well-structured questionnaire. The Questionnaire is constructed on the
basis of the objectives of the study. The Secondary Data were collected from Magazines, Books,
Journals, Government Reports and Statistics, Websites etc.,

Tools for Analysis

In this study the Statistical Software package SPSS is used for analysis. The various
statistical tools used in this study are simple percentage analysis, Reliability analysis,
Multiple regression analysis, Chi-square test, Garrett ranking technique, Weighted average
score analysis, Factor analysis, Discriminant analysis, T-test.

18
 LIMITATIONS OF THE STUDY

An attempt has been made to complete the research work in the best manner possible,
but still, there are a few obvious limitations. They should be addressed to encourage more
sound research in future. The limitations of this study are,

• The study is confined to Tiruppur District only.

• Since it is an empirical study, there may be personal bias in getting the data where
the respondents may be reluctant to provide some of the information.

• The findings cannot be generalized to the universe.

CHAPTER SCHEME

• Chapter I – titled “Introduction and Design of the Study” outlines the significance,
statement of the problem, scope, the objectives, the methodology used and tools of
analysis and limitations of the study.

• Chapter II - Gives an overview of the literature reviews for the purpose of the research.

• Chapter III - Deals with an overview of the Banking sector.

• Chapter IV - Deals with perception and satisfaction analysis.

• Chapter V - Presents findings, suggestions and conclusions.

19
 CHAPTER – II

REVIEW OF LITERATURE

INTRODUCTION

“A problem well put is half solved” this cites the importance of formulation of the
Research problem. The success rate of the research is increased whether that problem is
clearly defined and formulated. The formulation of the research problem depends on enough
knowledge of the research which is gained from the researcher’s own interest and subject
intelligence, discussion with research experts and reviewing of previous research studies.
Hence for planning the research the researcher needs previous studies which are aiding his
study.

A literature review identifies, evaluates and synthesizes the relevant literature within a
particular field of research. It illuminates how knowledge has evolved within the field,
highlighting what has already been done, what is generally accepted, what is emerging and
what is the current state of thinking on the topic. In addition, within research-based texts such
as a Doctoral thesis, a literature review identifies a research gap (i.e. unexplored or under-
researched areas) and articulates how particular research the project addresses this gap.

LITERATURE REVIEW

Here the parental study which guides the present study is listed.

Nidhi Singh & Neena Sinha (2016), studied a comparative analysis of Public and
Private sector banks with reference to Impact of Mobile Banking services in India. They
pointed out that there are 900 million Mobile users in India but approximately 40 million
were used mobile banking services. They rightly put it as the reason for such low usage was
cost, lack of accessibility, lack of awareness about mobile banking app, need of active
collaboration between banks and telecom company etc. ., they marked that banks must work
on creating awareness among consumers regarding mobile apps and mobile banking benefits.

Shamsher Singh (2016), extends a study and rightly put it as Internet technology is
regarded as the third wave of revolution after the agricultural and industrial revolution. After
the phone and net banking, technology is heralding the era of mobile banking in India More
so, with India all set to emerge as the second-largest mobile subscriber base in the world after
China, the telecom operators and banks are raring to use this medium to offer banking
services including fund transfers to all sorts of people. Mobile banking can be categorized as
the latest

20
advancement in electronic banking. This study examined the adoption and impact of mobile
banking in on customer of different banks. The study surveys the opinion of 200 customers of
banks located in Delhi. ANOVA and Factor Analysis have been used for having insights into
the mobile banking services provided by different banks. The population studied here is
urban population which can be considered as representative of banking customers in Delhi.
Arunkumar.S (2015), studied an attitude and intention of Malaysian consumers
towards adoption of On-line banking. In this study, the adoption rate of Internet Banking was
estimated by analogy to the adoption pattern. This study explores the factors contributing to
the adoption of Internet banking in Malaysia. The technology acceptance model was used to
study attitude and intention towards Internet banking. This study reveals that Perceived ease
of use, Perceived usefulness, and perceived enjoyment are the three factors which influence
the attitude and intention towards using Internet banking. Perceived enjoyment is considered
as the major factor for attitude and intention.

Geetha & Malarvizhi (2015), studied e-banking acceptance among consumers and
pointed out that the rapid advancement in electronic distribution channels has produced
tremendous changes in the financial industry in recent years, with an increasing rate of
change in technology, competition among players and consumer needs. They also said that e-
banking services usage are also gained an increase among Indian consumers,
Computerization of banking units even in rural areas are also done in a step by step manner.

Nishi (2015), measured the satisfaction level of rural customers from mobile banking
services and also analyzed the factors that influencing rural customers satisfaction from
electronic banking. The research-based on primary data collected through questionnaire from
rural mobile banking customers. The study found that rural customers were neutrally opinion
with the provision of updating, accuracy of transactions and convenience. Majority of 72
percent of the customers feel uncomfortable in transacting with electronic banking services
because of inadequate computer knowledge, availability of ATM and language problems.
However, they were not found to be more satisfied with the rules and regulation and
compensation are given in case of a fraudulent attack by unknown person or mistake by the
bank and projected better services should be provided for differently able persons.

Verah Okombo (2015), conducted a study and explains that despite the bank's heavy
investment in mobile banking customers has not embraced the service due to a myriad of
factors. This study aim was to investigate the influence of customers’ perception of the
adoption of mobile banking using the case of selected branches of Commercial Bank of
Africa. This

21
study was guided by 4 hypotheses derived from the objectives of study. Empirical literature
published by various scholars was reviewed. The study is grounded on the Tam Model in
conjunction with the theory of perceived benefits. The interrelationship between variables
under study is captured in the conceptual framework. A descriptive survey design was
adopted with a target population of 107 customers from selected branches. Using the Krejcie
and Morgan table for determining sample size, 86 respondents were selected to constitute the
sample size for this study. The desired representation of the target population was achieved
using simple random sampling and proportional sampling. An interview guide and a 6 point
questionnaire were used for data collection instruments with questions constructed using 5
points Likert scale. The questionnaire contained a section on respondents details with the
other sections designed based on the objectives under study. Pilot testing was done using ten
respondents a week prior to the actual data collection and results used to refine the data
collection instrument. The questionnaire was be tested for reliability using Cronbach-Alpha
Coefficient while validity was determined using content and construct validity.

Aijaz A. Shaikh & Heikki Karjaluoto (2014), analyzed and synthesize existing studies
of m-banking adoption and map the major theories that researchers have used to predict
consumer intentions to adopt it. The findings indicate that the m-banking adoption literature
is fragmented, though it commonly relies on the technology acceptance model and its
modifications, revealing that compatibility (with lifestyle and device), perceived usefulness,
and attitude are the most significant drivers of intentions to adopt m-banking services in
developed and developing countries. Moreover, the extant literature appears limited by its a
narrow focus on SMS banking in developing countries; virtually no studies address the use of
m-banking applications via smartphones or tablets or consider the consequences of such
usage. Further, this study makes several recommendations for continued research in the area
of mobile banking.

Bharati Vidhyapeeth (2014), conducted a study and quoted that recent innovations in the
telecommunication have proven to be a boon for the banking sector and its customers. one of
these is Mobile Banking, where customers interact with the bank via mobile phones and
banks provide them the services like short message services, fund transfers, account details,
issue of checkbook etc. Presently almost all the banks in the world have started providing
their customers “Mobile Banking” services. This study also discusses the various steps that
mobile banking providers should take to increase their mobile banking services user’s
database.

22
 Centeno (2014) studied Internet banking adoption and rightly said that the habit of
modern banking usage is spread among consumers. He argues that speed, the convenience of
remote access, 7/24 availability and price incentives are the main motivation factors for
consumers to use internet banking. He also pointed out that recent innovation in
communication technology also changes the service providing pattern including banking
sectors. Modern age group people need such innovations to simplify their life, they need not
go to the bank for their financial transactions, they access the bank in their place with a
modern device.

John Jayaseelan & Ramola Premalatha (2014), examined the influence of

demographic variables Age gender, Marital status educational level, occupation, monthly
income and type of account held by the clients in nonmetro cities of Tamil Nadu, India. In
this study quantitative analysis was carried out by collecting response through a well-
designed questionnaire to clients who have a bank account in the private sector banks and
living in non metro cities of Tamil Nadu. A sample of 200 customers from private sector
banks was surveyed from Vellore city which is a non-metro city. To analyze the data, chi-
square tests were used in testing the association of the demographic variables with internet
bank acceptance. This study found that out of seven demographic variables associated with
intention to use and the study revealed that five variables like Age gender, educational
qualification, monthly income and type of account held illustrate significance towards
acceptance of internet banking services in Vellore city.

Nitin Nayak , Vikas Nath & Nancy Goel (2014), analyzed Adoption behavior of Indian
consumers related to Mobile Banking services. The main issue of this study is to understand
the factors which contribute to the user’s intention to use mobile banking services. It also
discusses the various steps that mobile banking providers should take to increase their mobile
banking services. They reveal that the adoption of mobile banking services in India is just
2%. So it becomes important for the service providers to increase the rate of adoption of
mobile banking users and suggested that banks should create awareness about mobile
banking services through Advertisements, Pamphlets, Demo Fares, Campaigning, etc. so that
the customer feel informed and it may create interest among them.

Chilumuri Srinivasa Rao (2013), studied E-banking services of SBI in rural India and
found that the consumer’s awareness about the services provided by the SBI is less,
particularly regarding all internet banking services the awareness is very low in rural area. It
is suggested that the SBI should launch a campaign to educate and create awareness to
consumers. Instead of merely displaying the information in the branches through posters and
banners, media could use intensively for this purpose in the local language. He also pointed
23
out that there is a need

24
to prioritize the protection of rural consumers by strengthening the enforcement mechanism
and should introduce transparent fee the structure on the use of e-banking services in order to
maximize accessibility, frequency of services and to reduce the doubts of the customers.

Yogesh Jain (2013), examined the Adoption and challenges of mobile banking in
Southern Rajasthan. This study is based on Exploratory Research. This research is both
quantitative and qualitative. This research is based on the data collected through
“Questionnaire” with Mobile banking User and Non-user. The total period for this study was
forty days. This study indicates that consumers get disheartened by the complicated functions
while accessing the mobile banking services which lead them to the dissatisfaction level as no
proper guidance is to be provided to them. The fact is that the factor risk and security are the
most considerable significant factors for banking service adoption, and particularly in relation
to `new' electronic environment. Further, it indicates that consumers are serious about the risk
of conducting banking via a wireless channel, measured in terms of overall security and
trustworthiness of the services offered. However, because of various problems in the m-
banking system, this is not widely accepted by South Rajasthan bank customers.

Alsamydai et al., (2012) measured the satisfaction level of customer and impact on
the continuity in dealing with E-Banking services. The study the build was divided into five
attributes like E-Banking service quality, personal factors, perceived usefulness, customer
satisfaction and continuity of dealing with E-Banking services. The findings showed that
there is a significant relationship between all attributes and also the factors relating to E-
Banking service quality, perceived usefulness and personal factors have an influence on
customer satisfaction and continuation in dealing with E-Banking services.

Lochab and Dalal (2012) investigated the behavioral intention to use internet banking by
customers in hotels. It searches into the extent to which internet banking was accepted among
hotel customers and investigated the factors that affect the adoption of this latest and
advanced service of making payments through E-Banking system in the hotel industry. The
results showed that perceived ease of use, perceived security and privacy were main factors
that influence the usage of internet banking among hotel customers. It observed that having
internet access at hotels encourages the use of internet banking in hotel premises. Further,
unwillingness to change had a significant negative impact on the implementation of internet
banking. The customers were permitted to come at any time without any card and cash
necessity. Customers would like to pay sometimes through internet or debit/credit card
banking which was also types of E-Banking.

25
 Lydia (2012), determine the present level of customer satisfaction at Centenary Bank and
find out the relationship between E-Banking and customer satisfaction at Centenary Bank.
The study found that customers are high level satisfied with banking needs and usage of E-
Banking services. ATM machine sometimes breaks down and customers are waiting in long
queues lowers the level of satisfaction. This study can be concluded that the responses of
customers on E-Banking variable were positive, most of the respondents agree and strongly
agree to the effects of electronic banking channels employed at Centenary Bank, the service
was speedy, easy to use, easy to fund transfer from one account to another account through
internet banking. The inadequate number of ATM booths and the customer representatives
for on-line services fairly respond to customers doubt on a timely fashion.

Roshan Lal & Rajni Saluja (2012) said that today most of the banking happens while
customers are sipping coffee or taking an important call. ATMs are at the doorstep of the
customers. Banking services are accessible 24x7. There are more plastic cards in the wallet
than currency notes. A huge part of this change is due to the advent of IT. Introduction of
communication devices induce the service providers to offer their services in an easy
accessible way without direct physical contact. He also pointed out the origin of e- banking
services and its evolution in the Indian context.

Samudra & Phadtare (2012) analyzed the adoption of mobile banking services and used
the UTUAT model to investigate adoption behavior. The study reveals that mobile banking
services should be promoted to middle-level managers whose salaries are in the range of 1-6
lacs and the age group is 25-30 as this is the most active age groups of 3G mobile. In UTUAT
model, five factors are used to study the adoption of mobile banking: Performance
expectancy, Effort expectancy, Social Influence, Facilitating Conditions and Voluntariness.
Facilitating conditions seem to dominate in this study. They suggest as banks make easy to
use services the adoption rate will increase.

Vinayagamoorthy and Sankar (2012), conducted a study and said that banks are
constantly updating their technology and want to increase their customer base by reaching to
each and every customer. He also discussed mobile banking and according to them it is a
term that is used for performing various banking transactions like fund transfer, balance
check, payments, etc. via mobile phones. There are many advantages of using mobile
banking, such as people in rural or remote areas can also get easy access to mobile banking
whenever required.

Khan and Fozia (2011) identified the customers’ perception of traditional banking and
E- Banking services and also investigated the character of internet and core banking

26
services

27
offered by banks in traditional banking and E-Banking. The study was concluded that the
informational, modified and self-service assistance improved the existing function of
traditional banking. Online services were differentiating from traditional retail banking to E-
Banking. E-Banking makes obsolete, the technological knowledge of traditional banking. In
addition, the new value propositions of E-Banking will create the fundamental changes in
business model dimensions such as customer value, cost structure, customer base, market
sector and revenue source. Finally, both the technological knowledge and business model
dimension between traditional banking and E-Banking are definitely different. Therefore, it is
essential to identify the customers’ perception of E-Banking services provided by commercial
banks incorporation of Tamil Nadu.

Maya B. Lohani, &Kamlesh Kumar Shukia(2011) both attempted a comparative study

between Bank of Baroda (BOB) and ICICI in Lucknow and found that the younger customers
are interested to use internet related services(ATM,NEFT,RTGS etc).most of the respondents
preferred NEFT(National Exchange Fund Transfer) followed by ATM and Mobile banking.
They are more inclined towards services provided by private sector bank than the public
sector bank. They concluded that the perceived quality of services provided by private sector
bank (ICICI) is better than public sector bank (Bank of Baroda) in Lucknow city region.

Sadi & Noordin (2011), analyzed M-commerce in the banking industry and they claimed
that all the 13 factors i.e. Perceived Usefulness, Perceived ease of use, Personal
Innovativeness, Perceived Trust, Perceived Cost, Subjective Norm, Social Influence, Self-
Control, Perceived Behavioural Control, Facilitating condition, Self-Efficacy, Attitude
towards use, and Intention to use M-commerce are statistically significant and by using
exploratory factor analysis. They concluded that the mere introduction of M-commerce is not
sufficient but focus should be laid on the improvement of attributes that effect the M-
Commerce adoption. Out of all the factors, perceived usefulness is found to be the critical
factor thus, the service provider should take care that customers should perceive their services
as valuable and useful to keep up with their fast- paced lifestyle. This research also found that
trust is also an important factor and should be taken into consideration by the Service
providers; if consumers do not feel secure they will be reluctant to use the services.

Yesodha Devi, Nancy Sebastina & Kanchana (2011), conducted a study on

Customer Awareness, Opinion, Reasons for Opting Mobile Banking and pointed out that with
mobile technology banks can offer a wide range of service to their customers such as doing
fund transfer while traveling, receiving online updates of stock price or even performing
stock

28
trading while being stuck in traffic. This study highlights that 17% of the population has
accessed a bank transaction via mobile phone. This study concluded that there is no
significant difference among the education groups in the average awareness score on mobile
banking usAge there is no significant difference among the monthly income groups in the
average awareness score on mobile banking usAge there is no significant difference among
the bank account and average awareness score on mobile banking usAge there is no
significant difference between a public and private bank in the average problem score of
internet banking.

Malhotra and Singh (2009) analyse the acceptance of customers towards internet
banking and said that the usage of internet banking gains slow and steady growth in the
Indian banking sector. Developments in information technology lead to changes in the service
industry. Due to heavy competition banking sector, both public and private sector banks offer
various technology-enabled services like ATM, Internet banking, etc., but the acceptance of
these services by the customers is important for their progress. Awareness about modern
technology, cost, education, the usability of modern devices is the most important factors in
acceptance behavior towards e-banking services.

Tai-Kuei Yu and Kwoting Fang (2009), examined post – adoption customer

perception of mobile banking services and rightly said that with liberalization and
internationalization in the financial market and progress in information technology, banks
face dual competitive pressures to provide service quality and administrative efficiency. This
study reveals that the adoption of mobile banking is largely based on technological criteria.
The purpose of this study is to establish a better measurement model for post adoption user
perception of mobile banking services. Based on 458 valid responses of mobile banking
users, the result shows that the instrument, consisting of 21 items and 6 factors is a reliable,
valid and useful measurement for assessing the post-adoption perception of mobile banking.

Ching Poon (2008) studied customers’ acceptance of electronic banking services in

Malaysia. The researcher identified ten factors such as convenience of usAge accessibility,
availability of features, bank management and imAge security, privacy, design, content,
speed and fees and charges. The result showed that out of ten factors accessibility, the
convenience of usAge design, and content are the major sources of satisfaction privacy and
security are the main sources of dissatisfaction. Whereas, the availability of features, speed,
service charges and bank management are dangerous to the success of the E-Banking
services. Hence, the researcher is to identify that satisfaction level of security point in E-
Banking services.

29
 Piya Baptista (2008), conduct a comparative study of m-banking user’s and non-
user’s behaviors in five countries, with particular focus on the BOP market, in order to draw
general conclusions that will benefit a broad m-banking audience globally. The study will
work with both MNOs and FIs to reach users and non-users. This study simply reveals that
users are expected to be individuals who are currently availing of m-banking services, mainly
under additive models, while non-users are individuals who own a mobile phone but do not
have a bank account.

Hoffman, Karen Epper (2007), conducted a study on Mobile Banking and said that
banks in the U.S. had begun to develop or had rolled out a mobile banking service to their
customers, either through a proprietary mobile Internet banking site or via an application
embedded into the handset. Cell phone banking will grow quickly based on ubiquitous cell
phone usage and consumers' growing expectation of anywhere/anytime access. Banks
providing the service to customers for free and carriers clamoring for a piece of the action, a
business case remains elusive. This study concluded that Banks will justify the investment
based on strengthening customer relationships, lowering delivery channel costs and paving
the way for more sophisticated mobile financial services in future years.

Stephan Buse and Rajnish Tiwari (2006), examined the viability of mobile financial
services on both national and international level. Empirical surveys of more than 450
potential customers and over 50 banks worldwide revealed that Mobile banking has gained
increasing acceptance amongst various sections of the society in subsequent years. The
reason for this growth can be traced back to technological and demographical developments
that have influenced many aspects of socio-cultural behavior in today’s world. This the study
concluded that mobile banking presents a sizable opportunity for banks to retain their
existing, technology-savvy customer base by offering value-added innovative services and to
attract new customers from corresponding sections of Society.

Hundal .B.S & Abhay Jain (2005), analyzed the forces that stimulate mobile banking
service adoption in Northern India. This study made an attempt to identify various
stimulators, viz exhilaration, ease and inquisitiveness, development pace, compatibility and
perceived risk regarding the adoption of mobile banking services. This study found that
customers feel more comfortable with mobile banking and are likely to adopt it because
mobile banking service facilitates customers to access their bank accounts from any location,
at any time of the day and it provides a tremendous advantAge comfort and convenience to
users. They concluded that despite all the possibilities offered by the new electronic
channels for banking services,

30
there are various psychological and behavioral issues which appear to influence the acceptance
of mobile banking and the banks are in a position to understand these needs.

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23. Yesodha Devi, Nancy Sebastina & Kanchana, “A Study on Customer
Awareness, Opinion, Reasons for Opting Mobile Banking”, ZENITH International
Journal of Multidisciplinary Research Vol.1 Issue 7, pp- 218- 233, November 2011.
24. Malhotra and Singh, “Consumer acceptance of internet banking: the influence of
internet trust”, International Journal of bank marketing, Vol.26 (7), pp. 483-504, 2009.
25. Tai-Kuei Yu and Kwoting Fang, “Measuring the Post- Adoption customer
perception of Mobile banking services”, Journal of Cyber Psychology & Behaviour,
Vol.12 Issue.1, (2009).
26. Wai Ching Poon, “Users Adoption of E-Banking Services: The Malaysian
Perspective”, Journal of Business and Industrial Marketing, Vol. 23, No.1, PP.59-69,
2008.
27. Piya Baptista, “Mobile banking users and non-users behavior study” May 28,
International Journal of Information Management, pp. 213-225, 2008.
28. Hoffman, Karen Epper, “Mobile Banking: Where's the Business Case?”, Journal
of Banking Strategies, Vol. 83, Issue 5, pp40-47, Sep - 2007.
29. Dr.Stephan Buse and Rajnish Tiwari , “The Mobile Commerce Prospects: A
Strategic Analysis of Opportunities in the German Banking Sectors ”, 2006 retrieved
from www.zenithresearch.org .in.
30. Hundal .B.S & Abhay Jain, “Stimulators of Mobile banking adoption in India”,
ICFAI Journal of service marketing, vol.3, Issue No.4, ,pp .44- 52, Dec 2005.

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1
Satish Munjal, ‘Banking Operations’, Print well Publishers, Jaipur, 1990.
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Amato-McCoy, D, “Creating virtual value”, Bank Systems and Technology, Vol.1(22),
2005.
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Maya B. Lohani & Kamlesh Kumar Shukia “Comparative Study of Customer Perception
Towards Services Provided By Public Sector Bank and Private Sector Bank”. International
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147. www. Science and nature org.
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http://simhanaidu.blogspot.com/2013/09/list-of-nationalized-banks-in-india.html
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Roshan Lal & Rajni Saluja, “E-Banking: The Indian Scenario”, Asia Pacific Journal of
Marketing & Management Review, Vol.1 (4), December 2012.
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1
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1
“M-Services in India : A study on Mobile banking and applications”, retrieved from
https://www.researchgate.net.

34
 CHAPTER – III
BANKING INDUSTRY IN INDIA
INTRODUCTION

In early days those in which no money barter system is exists and goods are
exchanged for goods but after introduction of currency, goods are exchanged for money.
Finance is the life blood of Trade, Commerce and Industryi. Business man needs money for
starting the business, manufacturing and distribution of goods. In each trade cycle they want
money. For getting finance, the business man needs banks. Now a day’s banking acts as the
backbone of modern business. One country’s development is mainly depends on a good
banking system.
Banks are financial institutions where people deposited their valuables to keep them
safe. Today, banks offer a wide range of services not only keeping deposits but also they act
as agent institution for their customers. Banks lies at the heart of the financial markets. They
use money deposited in them to generate interest for savers and make loans that benefit
individuals and businesses. They offer a wide range of services not only banking but also
they rendering services which are assists their customers for instance banks pay insurance
premium to insurance company on behalf of its customer. They provide lot of loan with a
view to develop the nation by way of developing individuals. In collaboration with Various
Government agencies they involved to implement various welfare schemes. Collectively
banks carry out a wide range of roles from personal finance to raising funds for governments
and underwriting issues of bonds and shares. They are essential for businesses and the
economy.

Banks are places where individuals and organizations can save money which they
don't wish to use at any given time. The money and other precious items cannot be stored
more safely in their own premises, so people prefer banks for their holdings. The term 'bank'
now refers to any establishment licensed to accept deposits, pay interest, clear cheques, make
loans and act as an intermediary in financial transactions. They also provide a range of other
financial services to their customers.

Banks are lend money to individuals and organizations to cater the needs of their
customers by way of providing various types of loans like personal loan, housing loan,
educational loan, business loan Vechicle loan etc., Banker has the liability to meet the
demand of the customer along with interest for their deposit, for that they invest the deposits
accepted in other businesses, shares, Government bonds etc., The banking system acts to
channel society's surplus wealth to individuals and organizations that can use it productively.
Most of the wealth which is created by banks is utilized to make roads, airports, railways, and
35
factories etc., which help society as a whole to grow richer.

36
 Banks are also act as facilitators and play a vital role in helping governments and large
corporations to raise funds by issuing bonds and shares in the capital markets. They offer
advice and they underwrite the issues, which takes much of the risk out of them. They also
act as middle men in financial transactions, by providing short-term credit to enable large
financial transactions to go through smoothly. This is a great help in keeping the wheels of
commerce turning. They help the companies to manage their assets and make best use of
money available for investment, often investing on their behalf. They also help companies
trading internationally to bring their wealth into the country.
Banking in India is considered as fairly mature in terms of supply, product range and
reach-even though reach in rural India still remains a challenge for the private sector and
foreign banks.
DEFINITIONS TO BANK AND BANKING
The word “Bank‟ was derived from “Banco‟, “Bancus‟, “Banque‟ or “Banc‟ all of
which mean a bench upon which the mediaeval European Money-lenders and Money –
Changers used to display their coins. Anyhow this word has been in use from the middle ages
in connection of a bank. In the words of German writer W. Frankace, a long stool or bench
was said to be replaced by Bank, Banker etc. in the Scandinavian and Mid- European
countries. Again, Dutch and French words “Banque‟, “Bangko‟ were used to mean stool or
bench and in course of time the word “Bank‟ came into effect.
Different Authors and Economists have given some structural and functional
definitions on Bank from different angles:
 “Bank as an institution dealing in money and credit. It safeguards the savings of the
public and gives loans and advances” - Banking Companies Act of 1949.
 “Bank is a financial intermediary institution which deals in loans and advances”---
Cairn Cross.
 “Bank is an institution which collects idle money temporarily from the public and
lends to other people as per need.” R.P. Kent.
 “Bank provides service to its clients and in turn receives perquisites in different forms.”-
-- P.A. Samuelson.
Banking can be defined as the business activity of accepting and safeguarding money
owned by other individuals and entities, and then lending out this money in order to earn a
profit. However, with the passage of time, the activities covered by banking business have
widened and now various other services are also offered by banks. The banking services these

37
days include issuance of debit and credit cards, providing safe custody of valuable items,
lockers, ATM services and online transfer of funds across the country / world.
According to the Banking Companies Act of 1949, Banking is defined as, “accepting
for the purpose of lending or investment of deposit money from the public, repayable on
demand or otherwise and with draw able by cheque draft, order or otherwise”.
OBJECTIVES OF BANK
The banks are established for the following purpose,
1. To establish as an institution for maximizing profits and to conduct overall
economic activities.
2. To collect savings or idle money from the public at a lower rate of interests and
lend these public money at a higher rate of interests.
3. To create propensity of savings amongst the people.
4. To motivate people for investing money with a view to bringing solvency in them .
5. To create money against money as an alternative for enhancing supply of money.
6. To build up capital through savings.
7. To expedite investments.
8. To extend services to the customers.
9. To maintain economic stability by means of controlling money market.
10. To extend co-operation and advices to the Govt. on economic issues.
11. To assist the Govt. for trade& business and socio-economic development.
12. To issue and control notes and currency as a central bank.
13. To maintain and control exchange rates as a central bank.
FUNCTIONS OF BANKING
The main functions of the banking sector are as following:
 It provides liquidity for economic growth of a country
 It acts as the main pillar of the whole financial system
 It offers safety for the depositors who want to deposit their savings in the Bank
 It offers liquidity for the borrowers both on short and long-term basis based on their need
 It provides credit or loan to dealers, households, small as well as large business houses
 It helps to manage all the financial transactions between different parties
 It provides the Government with the flexibility to reach to the masses across the country
INDIAN BANKING SYSTEM
Banking plays a silent, yet crucial part in our day-to-day lives. The banks perform financial
intermediation by pooling savings and channelizing them into investments through maturity

38
 and risk transformations, thereby keeping the economy’s growth engine revving. Prof K.V.
Bhanu Murthy has also segregated the Indian banking periods into four eras. These are:
 Early historical and formative era: 1770-19052
 Pre-independence era: 1906-19463
 Post-independence regulated era: 1947-19934
 Post-independence deregulated era from 1993 onwards
EVOLUATION OF BANKS
 Banking in India has a very long history starting from the late 18 th century.
 The origin of modern banking started from 1770 in the name of “Bank of Hindustan” by
English agency ‘House of Alexander & Co’ in Kolkatta however it was closed in 1832.
 Further in 1786 “General Bank of India” was started and it failed in 1791.
 The banking sector was developed during the British era. British East India Company
established three banks,
1. Bank of Bengal – 1809
2. Bank of Bombay – 1840
3. Bank of Madras – 1843
These three presidency banks were re-organized and amalgamated to form a single
entity named “Imperial Bank of India” on 27 th
January, 1927. It was later transformed into
“State Bank of India” in 1955.
 The Reserve Bank of India was established in 1935, followed by the Punjab National
Bank, Bank of India, Canara Bank and Indian Bank. They have been the pallbearers in the
History of Banking in India.
 In 1969, 14 major banks were nationalized and in 1980, 6 major private sector banks were
taken over by the government.
Indian banking system, over the years, has gone through various phases. For ease of study
and understanding, it can be broken into four phases:-

39
 Figure – 3.1.
PHASES OF INDIAN BANKING SYSTEM
Early Phase
During the first phase, the growth was very slow and banks experienced periodic failures
during the Early Phase between. There were approximately 1100 banks, mostly small which
failed in the early phase.
Pre Nationalization Phase
Breakthrough happened in this phase, was Reserve Bank of India. Reserve Bank of India
(RBI) was created with the central task of maintaining monetary stability in India. This phase
of Indian banking was eventful and was a phase of restructuring, regulation. However,
despite these provisions, control and regulations, banks in India except the State Bank of
India, continued to be owned and operated by private persons
Post Nationalization Phase
This phase of Indian banking not so happening for entry of new banks. Undoubtedly, it was
a phase of expansion, consolidation and increment in many ways. The banking sector grew at
a phenomenal rate, fruits of nationalization were evident, and the common man was now
banking with great trust.
Modern Phase
This is the phase of “New Generation” tech-savvy banks. This phase can be called as
“The Reforms Phase”ii. Currently, banking in India is generally fairly mature in terms of
supply, product range and reach-even though reach in rural India still remains a challenge for
the private sector and foreign banks.

40
STRUCTURE OF ORGANISED INDIAN BANKING SYSTEM
The banking system in India, through a measure, gradual, caution and steady process
has undergone a substantial transformationiii. Banks have come a long way from the temples
of the ancient world, but their basic business practices have not changed. The organized
banking system in India can be classified as given below::

Figure – 3.2.
STRUCTURE OF INDIAN BANKING SYSTEM

Reserve Bank of India (RBI):

The RBI is the supreme monetary and banking authority in the country and controls
the banking system in India. It is called the Reserve Bank’ as it keeps the reserves of all
commercial banks.
 RBI not only acts as a banker to the commercial banks. It also acts as a banker to the
government of India and the state government.

41
  In India, the currency notes are issued by the Reserve Bank of India (RBI), which is
the monetary authority in India; however, the coins are issued by the Government of
India.
 When RBI purchase or sell government securities to the general public in a bid to
increase or decrease the stock of high powered money in the economy is called Open
Market Operation.
 RBI Fix the rate of Cash Reserve Ratio (CRR) and Statutory Liquid Ratio (SLR)
increases or decreases, then it leads to a decrease or an increase the value of the
money multiplier and money supply in the economy.
Commercial Banks:
Commercial banks mobilize savings of general public and make them available to
large and small industrial and trading units mainly for working capital requirements.
Commercial banks in India are largely Indian-public sector and private sector with a few
foreign banks. The public sector banks account for more than 92 percent of the entire banking
business in India— occupying a dominant position in the commercial banking. The State
Bank of India and its 7 associate banks along with another 19 banks are the public sector
banks.
Scheduled and Non-Scheduled Banks:
The scheduled banks are those which are enshrined in the second schedule of the RBI
Act, 1934. These banks have a paid-up capital and reserves of an aggregate value of not less
than Rs. 5 lakhs, hey have to satisfy the RBI that their affairs are carried out in the interest of
their depositors. All commercial banks (Indian and foreign), regional rural banks, and state
cooperative banks are scheduled banks. Non- scheduled banks are those which are not
included in the second schedule of the RBI Act, 1934. At present these are only three such
banks in the country.
Regional Rural Banks:
The Regional Rural Banks (RRBs) the newest form of banks, came into existence in
the middle of 1970s (sponsored by individual nationalized commercial banks) with the
objective of developing rural economy by providing credit and deposit facilities for
agriculture and other productive activities of all kinds in rural areas.
The emphasis is on providing such facilities to small and marginal farmers,
agricultural labourers, rural artisans and other small entrepreneurs in rural areas.
Other special features of these banks are:
(i) Their area of operation is limited to a specified region, comprising one or
more districts in any state;

42
 (ii) (ii) Their lending rates cannot be higher than the prevailing lending rates of
cooperative credit societies in any particular state;
(iii) (iii) The paid-up capital of each rural bank is Rs. 25 lakh, 50 percent of which
has been contributed by the Central Government, 15 percent by State
Government and 35 percent by sponsoring public sector commercial banks
which are also responsible for actual setting up of the RRBs.
These banks are helped by higher-level agencies: the sponsoring banks lend them
funds and advise and train their senior staff, the NABARD (National Bank for Agriculture
and Rural Development) gives them short-term and medium, term loans: the RBI has kept
CRR (Cash Reserve Requirements) of them at 3% and SLR (Statutory Liquidity
Requirement) at 25% of their total net liabilities, whereas for other commercial banks the
required minimum ratios have been varied over time.
Cooperative Banks:
Cooperative banks are so-called because they are organized under the provisions of
the Cooperative Credit Societies Act of the states. The major beneficiary of the Cooperative
Banking is the agricultural sector in particular and the rural sector in general.
The cooperative credit institutions operating in the country are mainly of two kinds:
agricultural (dominant) and non-agricultural. There are two separate cooperative agencies for
the provision of agricultural credit: one for short and medium-term credit, and the other for
long-term credit. The former has three tier and federal structure.
At the apex is the State Co-operative Bank (SCB) (cooperation being a state subject in
India), at the intermediate (district) level are the Central Cooperative Banks (CCBs) and at
the village level are Primary Agricultural Credit Societies (PACs).
Long-term agriculture credit is provided by the Land Development Banks. The funds
of the RBI meant for the agriculture sector actually pass through SCBs and CCBs. Originally
based in rural sector, the cooperative credit movement has now spread to urban areas also and
there are many urban cooperative banks coming under SCBs.
CURRENT BANKING SCENARIO IN INDIA
As per the Reserve Bank of India (RBI) report, India’s banking sector is sufficiently
capitalized and well-regulated. The financial and economic conditions in the country are far
superior to any other country in the world. Credit, market and liquidity risk studies suggest
that Indian banks are generally resilient and have withstood the global downturn well.
Indian banking industry has recently witnessed the roll out of innovative banking
models like payments and small finance banks. RBI’s new measures may go a long way in

43
helping the restructuring of the domestic banking industry. The digital payments system in
India has evolved the most among 25 countries with India’s Immediate Payment Service
(IMPS) being the only system at level 5 in the Faster Payments Innovation Index (FPII).
Market Size
Banking system in India has gradual and steady growth. It adopts new trends for their
services. Since nationalization the number of banks is increased year by year.
Table 3.1.
NUMBER OF BANKS (AS ON NOVEMBER 2018)
CATEGORY NUMBERS
Public Sector Banks 27
Private Sector Banks 26
Foreign Banks 49
Regional Rural Banks 56
Urban Cooperative Banks 1,574
Rural Cooperative Banks 94,384

Source: Reserve Bank of India, Press Information Bureau,www.pmjdy.gov.in

The above table 3.1. Indicates that the Indian banking system consists of 27 public
sector banks, 26 private sector banks, 49 foreign banks, 56 regional rural banks, 1,574 urban
cooperative banks and 94,384 rural cooperative banks, in addition to cooperative credit
institutions.
India’s banking sector is also poised for robust growth as the rapidly growing business
would turn to banks for their credit needs. The advancements in technology have brought the
mobile and internet banking services to the fore. The banking sector is laying greater
emphasis on providing improved services to their clients and also upgrading their technology
infrastructure, in order to enhance the customer’s overall experience as well as give banks a
competitive edge.

44
 Table 3.2.
FINANCIAL PERFORMANCE OF PUBLIC SECTOR BANKS
(AS ON 31-03-2018)

Source: IBEF Report, www.ibef.org

 Public-sector banks control over 70 per cent of banking sector assets, leaving a
smaller share for their private peers.
 In FY07-18, total lending increased at a CAGR of 10.94 per cent and total deposits
increased at a CAGR of 11.66 per cent. India’s retail credit market is the fourth largest
in the emerging countries. It increased to US$ 281 billion on December 2017 from
US$ 181 billion on December 2014.
 India’s digital lending stood at US$ 75 billion in FY18 and is estimated to reach US$
1 trillion by FY2023 driven by the five-fold increase in the digital disbursements.
 India moves up to 28th rank in Government e-payment adoption Survey
Investments/developments
Key investments and developments in India’s banking industry include:

45
  As of September 2018, the Government of India launched India Post Payments Bank
(IPPB) and has opened branches across 650 districts to achieve the objective of
financial inclusion.
 The total value of mergers and acquisition during 17 in NBFC diversified financial
services and banking was US$ 2,564 billion, US$ 103 million and US$ 79 million
respectively.
 The biggest merger deal of FY17 was in the microfinance segment of IndusInd Bank
Limited and Bharat Financial Inclusion Limited of US$ 2.4 billion @.
 In May 2018, total equity funding's of microfinance sector grew at the rate of 39.88 to
Rs 96.31 billion (Rs 4.49 billion) in 2017-18 from Rs 68.85 billion (US$ 1.03 billion)
#.
Government Initiatives
 As of September 2018, the Government of India has made the Pradhan Mantri Jan
Dhan Yojana (PMJDY) scheme an open ended scheme and has also added more
incentives.
 As part of government’s capital infusion plan of Rs 65,000 crore (US$ 9.70 billion) in
21 public sector banks during FY19, Rs 11,336 crore (US$ 1.69 billion) will be
infused in Punjab National Bank, Andhra Bank, Allahabad Bank, Corporation Bank
and Indian Overseas Bankiv.
3.6 ROLE OF BANKS IN INDIAN ECONOMY
In the modern’s economic system, banks play a very important role in economic
development. Commercial banks, which is an important part of the financial system of the
country that contribute more in India’s GDP. According to joint report prepared by KPMG-
Confederation of Indian Industry (CII), Indian banking sector is poised to become fifth largest
by 2020.
The report also states that bank credit is expected to grow at a compound annual
growth rate of 17 per cent in coming years. After post economic liberalization and
globalization, there has been a significant impact on the banking industry. Public-sector banks
control nearly 80 percent of the market, thereby leaving comparatively much smaller shares
for its private peers. Banks are also encouraging their customers to manage their finances
using mobile phones. Standard & Poor’s estimates that credit growth in India’s banking
sector would improve to 11- 13 per cent in FY17. The bank plays the following roles for
economic development.
1. Removing the deficiency of capital formation
Economic development is not possible unless there is an adequate amount of capital
formation in any economyv. The serious capital deficiency in developing Countries is
46
removed

47
by banks. A sound banking system mobilizes small savings of the community and makes
them available for investment in productive enterprises. Banks mobilize deposits by offering
attractive rates of interest and thus convert savings into active capital. Otherwise that amount
would have remained idle. Banks distribute these savings through loans among productive
enterprises which are helpful in nation building. It facilitates the optimum utilization of the
financial resources of the community.
2. Helps in generating employment opportunity
Banks helps in providing financial resources to industries and that helps in
automatically generate employment opportunity. Especially employment generated by
banking sector every year runs in millions. Equally revenue generation through tax and
dividend collection by the government invested every year. While revenue and employment
generation are two very important contributions, successfully maintaining healthy credit line
to industrial sector as well as to overall economy is another important contribution of
financial sector.
4. Financial assistance to Industries
The commercial banks finance the industrial sector in a number of ways. They provide
short-term, medium-term and long-term loans to industry .The Industrial Development Bank
of India is the main institution in India providing financial assistance to the industrial sector.
It provides direct financial assistance to the industrial enterprises in the form of granting loans
and advances, and purchasing or underwriting the issues of stocks, bonds or debentures. The
creation of the Development Assistance Fund is the special of the IDBI. The Fund is used to
provide assistance to those industries which are not able to obtain funds mainly because of
heavy investment involved or low expected rate of returns. IDBI gives guidance to start a
business.
To facilitate an easy access to finance by Micro and Small Enterprises, the
Government/RBI has launched Credit Guarantee Fund Scheme to provide guarantee cover for
collateral free credit facilities extended to MSEs upto Rs 1 Crore . Moreover, Micro Units
Development & Refinance Agency (MUDRA) Ltd. was also established to refinance all
Micro- finance Institutions (MFIs), which are in the business of lending to micro / small
business entities engaged in manufacturing, trading and services activities up to Rs 10 lakh.
5. Promote saving Habits of the people
Bank attracts depositors by introducing attractive deposit schemes and providing higher
rates of interest. Banks providing different kinds of deposit schemes to its customers. It
enables to create saving habits among people. Bank open different accounts to attract
customer. These

48
accounts are opened as per the requirements of customers such as current account, fixed
deposit account, saving account and recurring account etc.
6. Financial assistance to Consumer
People in underdeveloped countries being poor and having low incomes do not have
sufficient financial resources to buy durable consumer goods. The commercial banks advance
loans to consumers for the purchase of such items as houses, furniture, refrigerators, etc. In
this way, they also help in raising the standard of living of the people in developing countries
by providing loans for consumption activities.
7. Helps in implementing Monetary Policy
The commercial banks help the economic development of a country by implementing the
monetary policy of the RBI. RBI depends upon the commercial banks for the success of its
policy of monetary management in keeping with requirements of a developing economy.
Thus the commercial banks contribute much to the growth of a developing economy by
granting loans to agriculture, trade and industry, by helping in capital formation and by
following the monetary policy of the country.
8. Financial facilities for Trade
The commercial banks help in financing both internal and external trade. The banks
provide loans to retailers and wholesalers to purchase goods in which they deal. They also
help in the movement of goods from one place to another. Banks provide all types of facilities
such as discounting and accepting bills of exchange, providing overdraft facilities, issuing
drafts, etc. for promoting the trade. Moreover, they finance both exports and imports of
developing countries by providing foreign exchange facilities to importers and exporters of
goods. EXIM Bank of India and the Government of Andhra Pradesh has signed a
Memorandum of Understanding (MoU) to promote exports in the state.
9. Foreign Currency Loans
Foreign currency loans are meant for setting up of new industrial projects. Banks also
helps in providing loans for expansion, diversification, modernization or renovation of
existing units. Banks also helps in financing import of equipment from abroad and/or
technical knowhow. 10. Promotion of New Entrepreneurs
Development banks in India have also achieved a success in creating a new class of
entrepreneurs and spreading the industrial culture. Special capital and seed Capital schemes
have been introduced to provide equity type of assistance to new and technically skilled
entrepreneurs who lack financial resources of their own. Development banks have been
actively involved in the entrepreneurship development programmes.

49
 Innovations are an essential prerequisite for economic development. These
innovations are mostly financed by bank credit in the developed countries. But in
underdeveloped countries, entrepreneurs hesitate to invest in new ventures and undertake
innovations largely due to lack of funds and high chances of risk. Facilities of bank loans
enable the entrepreneurs to step up their investment on innovational activities, adopt new
methods of production and increase productive capacity of the economy.
11. Balanced Development
Modern banks spreading its operations throughout the world. We can see number of
big banks like city bank, SBI, PNB, Baroda bank etc. It helps a country to spread banking
activities in rural and semi urban areas. With the spreading of banking operations all over the
country, helps to attain balanced regional development by promoting rural areas. The Reserve
Bank of India (RBI) has granted in-principle licenses to 10 applicants to open small finance
banks, which will help expanding access to financial services in rural and semi-urban areas.
IDFC Bank has become the latest new bank to start operations with 23 branches,
including 15 branches in rural areas of Madhya Pradesh. Modern bank plays important role in
the economic development of the country. A developed banking system enables the country
to attain balanced development without any special consideration of rich and poor, cities and
rural areas etc. They transfer surplus capital from the developed regions to the less developed
regions, where it is scarce and most needed. This reallocation of funds between different
regions will promote economic development in underdeveloped areas of the country.
12. Financial assistance to agriculture sector
Agriculture is the backbone of economy of any country like India. The commercial
banks help the large agricultural sector in developing countries. They provide loans to traders
in agricultural commodities. They open a number of branches in rural areas to provide
agricultural credit. They provide finance directly to agriculturists for the marketing of their
produce, for the modernization and mechanization of their farms, for providing irrigation
facilities, for developing land, etc.
The share of commercial banks in total institutional credit to agriculture is almost 48
percent followed by co-operative banks with a share of 46 percent and RRBs about 6 percent.
. Most of the credit related schemes of the government to uplift the poorer and the under-
privileged sections have been implemented through the banking sector. They also provide
financial resources for animal husbandry, dairy farming, sheep breeding, poultry farming, and
horticulture. The small and marginal farmers and landless agricultural workers, artisans and
petty shopkeepers in rural areas are provided financial assistance through the regional rural

50
banks in India. There are various studies which show that in India 40% farmers are
committing suicide because of not able to fulfill the loan amount of banks. Commercial banks
are providing credit to the poor farmers but this is not free from the other problems.
13. An Agent of Economic.
Generally, commercial banks help fund government spending by purchasing bonds
issued by the Department of the Treasury. Both long and short term Treasury bonds help
finance government operations, programs and support deficit spending.
Recent important reforms over past few years government has taken many steps to
make banking sector even more robust, although it will take quite a few years to see positive
impact of these reforms. Moreover, these reforms will open new stream of revenue and
employment generation for the economy. Following are some of these reforms
• In 2015, RBI took unprecedented step by opening up the much anticipated ‘payment
bank’ sector. It Imperial awarded payment bank licenses to 11 entities, these 11 payment
banks are expected to give further boost to growth of financial sector as well as to overall
Indian economy.
• To reduce the burden of loan repayment on farmers, a provision of Rs 15,000 crore
has been made in the Union Budget 2016- 17 towards interest subvention.
• Under Pradhan Mantri Jan Dhan Yojna (PMJDY), 250.5 million accounts have been
opened and 192.2 million RuPay debit cards have been issued as of October 12, 2016. These
new accounts have mustered deposits worth almost Rs 44,480 crorevi.
• The Reserve Bank of India (RBI) has issued guidelines for priority sector lending
certificates (PSLCs), according to which banks can issue four different kinds of PSLCs—
those for the shortfall in agriculture lending, lending to small and marginal farmers, lending
to micro enterprises and for overall lending targets – to meet their priority sector lending
targets.
• To make banks more ‘credit friendly’, RBI has allowed banks to raise funds via
long- term bonds for financing the critical infrastructure sector. This means banks no longer
have to meet cash reserve ratio, statutory liquidity ratio or priority sector norms to disburse
credit for big infrastructure projects.
• In July 2016, the government allocated Rs 22,915 crore as capital infusion in 13
public sector banks, which is expected to improve their liquidity and lending operations, and
shore up economic growth in the country. • Indian government started Mudra Scheme, under
which Indian banks will be providing cheap and affordable credit to new & small
entrepreneurs.

51
 MOBILE BANKING
Everything is going mobile. A modern bank can hold a leading position on the market
only with a well-designed mobile application and allowing users to do the same things they
would on the website — or even more. This approach has a lot of benefits not only for
customers but also for banks.

Mobile banking is the act of making financial transactions on a mobile device (cell phone,
tablet, etc.). This activity can be as simple as a bank sending fraud or usage activity to a
client’s cell phone or as complex as a client paying bills or sending money abroad.
Advantages to mobile banking include the ability to bank anywhere and at any time.
Disadvantages include security concerns and a limited range of capabilities when compared
to banking in person or on a computer.

ESSENTIAL FEATURES FOR A MOBILE BANKING APP

Mobile banking Leeds a banker to introduce separate mobile app for effective service.
The mobile app must have the following features:

Simple yet secure sign-in

 Multi-factor authentication is a secure but time-consuming technology that in most

cases irritates users, especially when we compare this method to authentication based
on biometric data.

 Biometric authentication technology checks physical metrics to recognize and verify a

person. This technology can recognize a person’s voice, typing rhythm, and even
gestures. Yet many other characteristics can be used too.

Bank account management

By using bank account management feature, users can monitor their cards and bank
accounts, check their balances and transaction histories, and make money transfers.

 Set a saving goal — User can set a desired amount and a time by which they want to
save it.

 Make an investment — User can place an investment order if they have an

investment account.

 Make repeat payments — If Users have already sent money to a friend or family
member, they can tap on a previous transaction and send money again without
entering any recipient data.

52
 This advanced functionality lets users do more with the app without a need to use the web
application.

Intelligent chatbot

Providing the most personalized approach to your clients is the key to your success.
Banks are need to make sure that their customers have 24/7 support and can get professional
consultation or advice anytime they need it. A smart chatbot can easily answer hundreds of
customers at the same time without making them wait in line. Chatbots work around the
clock, are always polite, and never get tired.

ATM locator

An ATM locator may seem like a very basic feature, but bank shouldn’t neglect it.
The small things show care for customers. Banks are adding new technologies to make
mobile app more interesting and achieve some great results. Royal Bank of Canada has
demonstrated how this works. This unique feature in mobile app allows users to find the
nearest branch or ATM with the help of Virtual Reality technology.

QR code payments

Scanning QR codes directly from a mobile banking app is an easy, fast, and
convenient way to pay for goods and services. Besides, all that users need to scan QR codes
is a smart phone. Although QR codes aren’t a new technology, only a few bank apps have
implemented payments via QR code so far.

Alerts and notifications

Alerts and notifications can help the banker to keep in touch with their customers,
engage them, and promote banker services effectively. The only thing bank has to remember
does that client hate intrusive notifications. Users should be able to easily set up notifications
to control what information they receive, when, and how often. This way they will get only
information they really care about.

The above features which are listed in the above are the core feature of Mobile app,
but the bank can attract their customer they grab their attention to make the mobile app
innovative, appealing and interesting not only for existing customers but for non- customers
too. The following are the special features bank should consider making a competitive app.

53
Tracking spending habits

Users can get more control over their finances and reach their saving goals by using
mobile budgeting apps and spending trackers. Bank should consider adding such
functionality to its banking app.

 Saving goals. Users should be able to choose among predefined goals, add their own,
and set a timeline for fulfilling them.

 Customized reports. Analytical charts are a great way to demonstrate personal

progress and motivate users. Users should be able to indicate what information they
want to receive and in what form.

 Budgets. Include a lot of spending categories and the ability to add new ones.
Customers should be able to set an amount for each category for a week, month, or
year and see how much money they’ve spent and how much is left.

 Notifications. Notifications can remind users to input data about spending in the
evening, show reports, and remind about upcoming payments.

 Scheduled bills and payments. Make sure that customers can schedule bill payments
to individuals or businesses and choose the frequency of money transactions, for
instance weekly, monthly, or yearly.

MOBILE BANKING IN INDIA

Banks are constantly adopting new technology to expand its business and to reach
different level of customers and also to meet heavy competition in the field. Apart from ATM
and Online banking, banks provide mobile banking services. Some of the banks State bank of
India, Union Bank of India, Punjab National Bank, HDFC, ICICI and AXIS banks are
entered in providing mobile banking servicesvii. In India Licensed banks with the provision of
core banking solutions (CBS) are permitted to offer mobile-banking services to their
customers after obtaining necessary permissions from the Department of Payments and
Settlement Systems, Reserve Bank of India. As of now, only rupee-based services within
India are allowed; cross- border transfers of any kind are prohibited.
According to RBI’s bank-wise mobile-banking transactions data, State Bank of India
topped the list in volumes while HDFC bank topped the list in terms of value. Mobile
banking has seen an increase of 88.75 per cent in one year, going up from 8.89 million
transactions as of December 2016 to 16.78 million in December 2017. The value of
transaction was Rs 22.61 billion in December 2016 and has gone up to Rs 113.23 billion, up
400 timesviii.

54
 Mobile banking is not restricted to smart phones. National Payments Corporation of
India offers mobile banking services on a National Unified USSD Platform (NUUP) through
a short code – *99#. This number allows banking customers to access banking services with a
single number across all banks – irrespective of the telecom service provider, the mobile
handset make, or the region. The following table exhibits the banks and telecom company
who is tie up with NUUP and provide mobile banking services to their customers in India.
Table 3.3.
Participating Banks in NUUP
Allahabad Bank HDFC Bank
Andhra Bank ICICI Bank
Axis Bank IDBI Bank
Bank of Baroda Indian Bank
Bank of India ING Vysya Bank
Bank of Maharashtra Indian Overseas Bank
Canara Bank Karur Vysya Bank
Central Bank of India Kotak Mahindra Bank
Corporation Bank Oriental Bank of Commerce
Dena Bank Punjab & Sind Bank Punjab National Bank
State Bank of Bikaner & Jaipur State Bank of Travancore
Vijaya Bank State Bank of Patiala
State Bank of Mysore State Bank of Hyderabad
Syndicate Bank UCO Bank
Union Bank of India United Bank of India
Source: BFSI Report
Table 3.4.
Telecom Companies in NUUP
Aircel Airtel
BSNL Idea
MTNL Videocon
Quadrant Reliance
Tata Uninor
Source: BFSI Report

55
 MOBILE BANKING SERVICES
Banks are offered a wide range services to their customers. Mobile-Banking Services
include the following:
Account information
Banks provides details about customers account when they are asked via mobile. The
banking provides the following services.
 Mini statements and account history
 Alerts on account activities
 Monitoring term deposits
 Access to loan and/or card statements
 Insurance policy management
Funds transfer
Banks main function is to provide or repays the deposited amount to its customers
whenever they demanded. They also make a payment via credit cards and debit cards.
Through mobile banking the following services are made.
 Fund transfers between customer-linked accounts
 Fund transfers to other accounts
 Bill payments
 Credit card payments
Investment
Banks render advisory service in order to safe guard the customer’s investments. Mobile
banking renders the below: services.
 Portfolio management
 Real-time stock quotes
 Personalized alerts and notifications on security prices
Support services
Banks provide the following support services to their customers via its mobile app.
 Cheque book and card requests
 Complaint filing and tracking
 ATM location
RBI GUIDELINES ON MOBILE BANKING
The guidelines issued by Reserve Bank of Indiaix on ‘Risks and Controls in
Computers and Telecommunications’ will apply mutatis mutandis (‘the necessary changes
having been made’) to mobile banking. The guidelines issued by RBI on ‘know your
customer’ (KYC),

56
‘anti-money laundering’ (AML) and ‘combating the financing of terrorism’ (CFT) from time
to time will be also applicable to mobile-based banking services.
 Banks should offer mobile-based banking service only to their own customers, be it
bank account or credit card account holders. However, for the purposes of remittance
of funds for disbursement in cash, the receipts could be non-account holder also.
 Banks should have a system of document-based registration with mandatory physical
presence of their customers before commencing mobile-banking service.
 There can be two levels of mobile-based banking service. The first level is in the
nature of information like balance enquiry, SMS alert for credit or debit, status of last
five transactions, and many other information-providing services. The account-
opening form, at the time of opening new bank account, should clearly indicate the
option for ‘mobile banking’.
 The second or standard level of mobile-banking services could involve financial
transactions such as payments, transfers and stop payments.
 Banking transactions up to Rs 5,000 can be facilitated by banks without end-to-end
encryption.
 Banks are permitted to offer mobile-banking facility to their customers without any
daily cap for transactions involving purchase of goods/services. In case of cash-out,
the maximum value of such transfers shall be Rs 10,000 per transaction.
 Banks may place a suitable cap on the velocity of such transactions, subject to a
maximum of Rs 25,000 per month per beneficiary.
 Banks are required to maintain security and confidentiality of customers’ accounts
since in the mobile banking scenario the risk of banks not meeting the above
obligation is high.
 Banks are required to make mandatory disclosures of risks, responsibilities and
liabilities of the customers on their websites and/or through printed material.
 Banks may carry out due diligence of the persons before appointing them as
authorized agents for such services. Banks shall, however, be responsible as principals
for all the acts of omission or commission of their agents.
 The existing mechanism of handling customer complaints/grievances may be used for
mobile-banking transactions as well.
 However, in view of the fact that the technology is relatively new, banks should set up
a help desk and disclose on their websites the details of the help desk and escalation

57
 procedure for lodging complaints. Such details should also be made available to the
customers at the time of sign-up.
 In cases where the customer files a complaint with the bank disputing a transaction, it
will be the responsibility of the service-providing bank to address the customer
grievance.
 Banks should formulate charge-back procedures for addressing such customer
grievances. The grievance-handling procedure including the compensation policy
should be disclosed.
 Customers’ complaints/grievances arising out of mobile-banking facility will be
covered under the Banking Ombudsman Scheme.
INNOVATIVE MOBILE BANKING SERVICES IN BANKS
Banks are offering innovative services on mobile-banking platform. They are listed
below::
• Pockets:
ICICI Bank launched its digital wallet called Pockets. It is a virtual place to store
money and use it whenever needed The Pockets Wallet can be created instantly and it lets
customers send money to anyone they wish, receive money from anyone, book movie tickets,
gift physical/e-vouchers, pay bills, recharge mobiles and split expenses with friends. The
wallet uses a virtual VISA card that enables users to transact on any website or mobile
application in India. Customers can also request for a physical card to use it at any retail
outlet.
• Chillr:
HDFC Bank’s Chillr app lets customers send money immediately to anyone in their
phonebook 24 x 7x. There is no need to have recipients’ bank or account details.
• Video talk:
IndusInd Bank customers can connect and have a video talk with their branch
manager, relationship manager or a centralized video branch executive from anywhere in the
world. The service is available for all IndusInd account holders using Android (2.3 and
higher) and Apple (OS 6, 7 and higher) devices.

58
 CHAPTER – IV

ANALYSIS AND INTERPRETATION

4. FRAMEWORK OF ANALYSIS
On the basis of data collected, the data have been analyzed by using statistical
techniques and tests were conducted at five per cent and one per cent level of significance.
The objectively collected data have been suitably classified and analyzed by tables in
appropriate chapters. The following are the techniques adopted for the analysis of data
i. Simple percentage analysis
ii. Reliability Analysis
iii. Multiple Regression Analysis
iv. Chi-square test
v. Garrett Ranking Technique
vi. Weighted Average Score Analysis
vii. Factor Analysis
viii. Discriminant Analysis
ix. T – Test

59
 (i). SIMPLE PERCENTAGE ANALYSIS
Simple percentage analysis is one of the basic Statistical tools which is widely used in
analysis and interpretation of primary data. It deals with the number of respondents' response
to a particular question in percentage arrived from the total population selected for the study.

Formula

Number of respondents’ response to a question

X 100
Total number of samples selected for the study

It is one of the simple forms of analysis which is very easy for anyone to understand
the outcome of the research. It is normally used by commercial research organizations and
pictorially presented with different diagrams.

60
 Table 4.1.1
Classification of the respondents’ of socio-economic profile

S.No. Age Frequency Percentage

1 18 Years to 27 Years 203 52.9

2 28 Years to 37 Years 109 28.4

3 38 Years to 47 Years 52 13.5

4 48 Years to 57 Years 15 3.9

5 Above 57 Years 5 1.3

Total 384 100.0

S.No. Gender Frequency Percentage

1 Male 218 56.8

2 Female 163 42.4

3 Third gender 3 .78

Total 384 100.0

S.No. Marital Status Frequency Percentage

1 Unmarried 205 53.4

2 Married 169 44.0

3 Separated 8 2.1

4 Widow 2 .5

Total 384 100.0

S.No. Education level Frequency Percentage

1 Upto SSLC 9 2.3

2 HSC 31 8.1

3 Graduation 307 79.9

4 Diploma 33 8.6

5 ITI/Certificate 4 1.0

Total 384 100.0

61
 S.No. Occupational Status Frequency Percentage

1 Home Maker 9 2.3

2 Government Service 12 3.1

3 Private Service 227 59.1

4 Self Employed 124 32.3

5 Agriculture 12 3.1

Total 384 100.0

S.No. Monthly Income Frequency Percentage

1 UPTO Rs.10,000 162 42.2

2 Rs.10,0001 to Rs.20,000 184 47.9

3 RS.25,001 to Rs.50,000 30 7.8

4 Above Rs.50,000 8 2.1

Total 384 100.0

S.No. No. of Earning members of Family Frequency Percentage

1 2 Members To 4 Members 341 88.8

2 5 Members To 7 Members 35 9.1

3 Above 7 Members 8 2.1

Total 384 100.0

S.No. Nature of Family Frequency Percentage

1 Nuclear Family 345 89.8

2 Joint Family 39 10.2

Total 384 100.0

Source: Primary data
From the above table 4.1.1, it is obvious that the respondents belong to the age group
of 18 years to 27 years (52.9 percent), 28 years to 37 years (28.4 percent), 38 years to 47 years
(13.5 percent) 48 years to 57 years (3.9 percent) and above 57 years (1.3 percent). Maximum
of the respondents belong to the age group of 18 years to 27 years (52.9 percent).
Obvious that (42.4 percent) of the respondents are female and (56.8 percent) of the
respondents are male, (.78 percent) of the respondents are third gender
The majority of the respondents are male (56.8 percent)

62
 Clearly show that (53.4 percent) of the respondents are unmarried and (44.0 percent)
of the respondents are married, (2.1 percent) of the respondents are separated and (0.5
percent) of the respondents are widow. Majority of the respondents are unmarried (53.4
percent).
Educational level of the respondents is up to SSLC (2.3 percent), HSC level
(8.1percent), graduation level (79.9 percent), diploma level (8.6 percent) and ITI/certificate
(1.0 percent). Majority of the respondents belong to the graduation level (79.9 percent).
The respondent Occupational level of the respondents is agriculturalist (3.1 percent),
home maker (2.3 percent), government service (3.1 percent), private service (59.1 percent)
and self-employed (32.3 percent). Maximum of the respondents belong to the occupational
status of private service (59.1 percent).
It is obvious that the monthly income of the respondents is to less than Rs. 10,000
(42.2 percent), Rs.10, 0001 to RS.20, 000 (47.9 percent), Rs.25,001 to Rs.50, 000 (7.8
percent), and above Rs.50,000 (2.1 percent). Maximum of the respondent's monthly income is
less than 10000 (42.2 percent).
The family size of the respondent is up to three members (34.1 percent), four
members (35.4percent), five members (19.3 percent), and above five members (11.2 percent).
Maximum of the respondents belong to the family size of 4 members (35.3percent).
Size of the family of the respondent is Up to 3 members (34.1 percent) 4 members
(35.3 percent), male 5 members (19.3 percent) and Above 5 members (11.2 percent).
Majority of the respondents belong to the Up to 3 members (34.1 percent).
Nature of the family of the respondent is joint family (10.2 percent) and Nuclear
Family (89.8 percent).Majority of the respondents belong to the Nuclear Family (89.8
percent).
It is obvious that the number of earning members of the respondent's family is 2
members to 4 members (88.8 percent), 5 members to 7 members (9.1 percent), and above 7
members (2.1 percent). Majority of the respondents have 2 to 4 earning members
(88.8percent) in the family.

63
 Table 4.1.2.
Classification of the respondents on the basis accounts holding in bank

Type of bank Frequency Percentage

1 Public Sector Bank 213 55.5

2 Private Sector Bank 171 44.5

Total 384 100.0

Source: Primary data

From the above table 4.1.2, It is obvious that the type of bank of the respondent is
public sector bank (55.5 percent) and private sector bank (44.5 percent).Majority of the
respondents belong to the public sector bank (55.5 percent).

Table 4.1.3
Classification of the respondents on Utilization of mobile banking

Name of the Bank Frequency Percentage

State bank of India 41 10.8

Punjab National Bank 3 .8

Syndicate Bank 17 4.4

Corporation Bank 2 .5

Indian Bank 33 8.6

Indian Overseas Bank 24 6.3

Bank of Baroda 27 7.0

Canara Bank 19 4.9

Union Bank of India 11 2.9

Vijaya Bank 6 1.6

64
 Bank of India 3 .8

Central Bank of India 16 4.2

IDBI Bank 12 3.1

ICICI Bank 31 8.1

AXIS Bank 28 7.3

HDFC Bank 24 6.3

Dhanalakshmi Bank 3 .8

Tamilnadu Mercantile Bank 7 1.8

Catholic Syrian Bank 1 .3

City Union Bank 12 3.1

Karur Vysa Bank 18 4.7

Lakshmi Bank 3 .8

Kotak Mahindra Bank 10 2.6

Digi Bank 13 3.4

Federal Bank 1 .3

Karnataka Bank 19 4.9

Total 384 100.0

Source: Primary data

From the above table 4.1.3 it is obvious that out of 384 respondents is state bank of
India (10.8) percent, Indian bank (8.6) percent, ICICI bank (8.1) percent, Bank of Baroda
(7) percent, Axis bank (7.3) percent, HDFC bank (6.3) percent and Indian Overseas bank
(6.3) percent.
Majority of the respondents belong to the State bank of India customers (10.8) percent.

65
 Table 4.1.4
Classification of the respondents on factors to know about mobile banking

Factors Frequency Percentage

Self interest 37 9.6
Friends 168 43.8
Advertisements 25 6.5
Bank staff 151 39.3
Bank sms 3 .8
Total 384 100.0

Source: Primary data

From the table 4.1.4, it is obvious that the respondent's come to know about mobile
banking through self-interest (9.69 percent), Friends (43.8percent), advertisements (6.5
percent), Bank staff (39.3 percent) and Bank SMS (0.8 percent). Majority of the respondents
come to know about mobile banking through friends (43.8percent).
Table 4.1.5
Classification of the respondents on opinion towards mobile banking

Mobile Banking is
Frequency Percentage
Essential
In-essential 2 0.5
Least essential 2 0.5
Essential 7 1.8
Very essential 82 21.4
Most essential 91 75.8
Total 384 100.0

Source: Primary data

From the table 4.1.5, it is clear that the respondent's opinion towards mobile banking
essential (1.8 percent), in-essential (0.5 percent),Very essential (21.4 percent) and Most
essential (75.8 percent). Majority of the respondent’s opinion towards mobile banking is Most
essential (75.8 percent).

66
 Table 4.1.6
Classification of the respondents on often you are using mobile banking

How often you are using mobile

Frequency Percentage
banking
Very frequently 13 3.4
Frequently 95 24.7
Monthly 170 44.3
Weekly 58 15.1
As and when need raises 48 12.5
Total 384 100.0

Source: Primary Data

From the table 4.1.6 the respondents use mobile banking Very frequently (3.4
percentage), frequently (24.7 percentage), Monthly (44.3 percentage), Weekly (15.1
percentage) and as and when need raises (12.5 percentage). Majority of the respondents use
mobile banking monthly (44.3 percentage).

67
 (ii). WEIGHTED AVERAGE SCORE ANALYSIS

For the purpose of analysis five point scaling technique was used to convert the
qualitative information into quantitative one. For the opinion about awareness level of the
score assigned are as follows:
1. Very good 2. Good, 3. Bad, 4. Very Bad, 5.Worst.
In this section, for each product factor of the product, the level of opinion about
awareness level was determined and the results are given in the tables with suitable
interpretations.

Table 4.2.1
Classification of the respondents on factors that influenced mobile banking

Std.
Factors Mean Sum Rank
Deviation
Speed of the app 8.5885 1.48534 3298 I

Often I face problem with connection and internet 8.0833 1.72475 3104 II

Banking web page can be accessed quickly 7.8359 2.75485 3009 III

Banking web page is trustworthy and security

6.0937 2.25446 2340 IV
oriented
Internet bank operations 5.2083 1.95867 2000 V
Network interruption 4.125 1.97107 1584 VII

Source: Primary data

The above table 4.2.1 indicates the level of satisfaction towards factor influenced mobile
banking. Speed of the app, have a high mean is 8.58. Followed by it, Often I face problem
with connection and internet have ranked second have a mean is 8.08. Banking web page can
be accessed quickly and banking web page is trustworthy and security oriented have ranked
fourth have a mean is 7.83 and 6.09 respectively. Internet bank operations ranked fifth have a
mean as 5.20. Network interruption is ranked sixth 4.1. Thus, it is been found the Speed of
the app occupies first rank have a mean is 8.58.
.

68
 Table 4.2.2
Classification of the respondents on infrastructure facility satisfaction

Infrastructural facility Mean Std. Deviation Sum Rank

Net banking Services 2.93 1.33 1127 V

Service Available Everywhere 4.29 0.74 1647 I

Availability of customer care 3.47 0.83 1332 IV

Third-party Services 3.59 1.17 1380 II

No difficulty in managing account 3.48 1.37 1338 III

Source: Primary Data

The above table 4.2.2 indicates the level of satisfaction towards infrastructural mobile
banking. Service Available Everywhere, have a high mean is 4.29. Followed by it, third-party
services (like paytm/google pay) second have a mean is 3.59. No difficulty in managing
account and availability of customer care ranked fourth have a mean is 3.48 and 3.47
respectively. Thus, it is been found that net banking Services occupies last rank have a mean
is 2.93.
Table 4.2.3
Classification of the respondents on self-control satisfaction

Self-control Mean Std. Deviation Sum Rank

Independently use 2.42 1.55 931 IV

Can do like others 4.23 0.71 1625 I

Confidentially of Internet banking 3.78 0.77 1452 II

Purchase facility 3.78 1.03 1450 III

Source: Primary Data

From the above table 4.2.3 indicates the level of satisfaction towards mobile banking.
Can do like others first rank have a high mean is 3.78. Confidentially of internet banking
second rank have a mean is 3.78. Purchase facility third have a mean is 3.78 and
independently use have fourth rank mean is 2.42.

69
 Table 4.2.4

Classification of the respondents on inducing factors satisfaction

Std.
Inducing Factors Mean Sum Rank
Deviation
Lot of advertisements towards
3.2318 .99656 1241.00 IV
mobile banking
Customer Agent Influence for
3.3568 1.17427 1289.00 III
Mobile Banking
Profession Influence to use
2.9323 1.37132 1126.00 V
mobile banking
Family and Friends Influence to
3.6510 1.15986 1402.00 II
Use mobile banking
Hearing and seeing the use of
3.8203 1.32716 1467.00 I
mobile banking among the public

Source: Primary Data

The above table 4.2.4 indicates the level of satisfaction towards mobile banking.
Hearing and seeing the use of mobile banking among the public first rank have a high mean is
3.8. Family and Friends Influence to Use mobile banking second rank have a mean is 3.65.
Customer agent influence for mobile banking third rank have a mean is 3.35. Lot of
advertisements towards mobile banking fourth rank have a mean is 3.23 and Profession
Influence to use mobile banking fifth rank have a mean is 2.93.

70
 Table 4.2.5

Classification of the respondents on perceived risk satisfaction

Perceived Risk Mean Std. Deviation Sum Rank

Extra charge taken by customer agent 3.2969 1.25804 1266.00 IV

Not available money at Customer Agent 3.4193 1.19124 1313.00 III

Mobile banking security allot 3.4583 1.21493 1328.00 II

Service charge 3.5339 1.43216 1357.00 I
Knowledge of the Mobile Banking 2.9834 1.1923 1260.00 V

Source: Primary Data

From the above table 4.2.5.indicates the level of satisfaction towards mobile banking.
Service charge first rank have a mean is 3.5. Mobile banking security allot second rank have a
mean is 3.4. Not available money at Customer Agent three rank have a mean is 3.4. Extra
charge taken by customer agent fourth rank have a mean is 3.29 and Knowledge of the
mobile banking fifth rank have a mean is 2.9.

71
 Table 4.2.6
Classification of the respondents on ease of use satisfaction

Ease of use Sum Mean Std. Deviation Rank

Money transfer 1292.00 3.3646 .97348 III
Easy Access to bank
1538.00 4.0052 1.25579 I
account
24/7 Anytime and
1216.00 3.1667 1.38938 II
anywhere banking
To follow standing
instruction of mobile 1187.00 3.0911 1.15147 IV
banking

Source: Primary Data

From the above table 4.2.6 indicates the level of satisfaction towards mobile banking.
Easy Access to bank first rank have a high mean is 4.0. 24/7 anytime and any-where banking
second rank have a mean is 3.16. Money transfer third rank have a mean is 3.36. To follow
standing instruction of mobile banking has scored last rank with mean score of 3.09.

72
 Table 4.2.7

Classification of the respondents on customer support s system satisfaction

Customer support system Mean Std. Deviation Sum Rank

Help available at any time 3.3646 .97348 1292.00 III

PIN password recovery futures 4.0052 1.25579 1538.00 I

Tracking of mischievous/fraud
3.1667 1.38938 1216.00 V
transactions
Checking for authentication 3.0911 1.15147 1187.00 VI
Caution is provided 3.6510 1.27564 1402.00 II
Easy to get checked for each
3.1432 1.19083 1207.00 IV
transaction

Source: Primary Data

From the above table 4.2.7 indicates the level of satisfaction towards mobile banking.
PIN password recovery futures first rank have a high mean is 4.0. Caution is provided second
rank have a mean is 3.6. Help available at any time third rank have a mean is 3.3 . Easy to get
checked for each transaction fourth rank has a mean is 3.14. Tracking of mischievous/fraud
transactions fifth rank has a mean is 3.16.Checking for authentication last rank with a mean
score is 3.09.

73
(iii) GARRETT RANKING TECHNIQUE
This technique was used to rank the preference of the respondents on different
aspects of the study. The order of merit given by the respondents were converted into ranks
by using the following formula.

The percentage position of each rank thus obtained is converted into scores by
referring to the table given by Henry Garrett. Then for each factor the scores of individual
respondents are added together and divided by the total number of respondents for whom the
scores were added. These mean scores for all the factors were arranged in the descending
order, ranks given and most important aspects identified.

74
 Table 4.3.1
Classification of the respondents on factors that influenced mobile banking

Mean Garrett
Factors Garrett
Score Score Rank

Internet Service 24488 63.771 I

Technology 14240 37.083 VIII
Social Influence 17666 46.005 VII
Self Interest 23719 61.768 II
Convenience 19672 51.229 V
Security 21019 54.737 IV
Easy to Use 22214 57.849 III
Awareness of Services 13199 34.372 X
24/7 (All time and Every Where) banking facility 13566 35.328 IX
Advertisement 15852 41.281 VI

Source: Primary data

From the above table 4.3.1 It is obvious that Internet Service has scored first rank
with mean score of 63.771, self Interest has scored second rank with mean score of 61.768,
easy to use has scored third rank with mean score of 57.849. Security has scored fourth rank
with mean score of 54 .737.Convenience has scored first fifth with mean score of 51.229,
Advertisement has scored sixth rank with mean score of 41.281. Social Influence has scored
seventh rank with mean score of 46.005. Technology has scored eighth rank with mean score
of 37.083. 24/7 (all time and every where) banking facility has scored ninth rank with mean
score of 35.328 and awareness of services scored last rank with mean score of 34.372.

75
 Table 4.3.2
Classification of the respondents on factors doubts that arise in the minds of the
customers
Factors/doubts Garrett Score Mean Score Garrett Rank

Money Transfers 21808 56.792 I

Account/Balance Verification 20347 52.987 III

Security Issues 20935 54.518 II

Mobile banking locking facility in case of

16778 43.693 V
loss of mobile

One-Time Password 19240 50.104 IV

Security PIN 16092 41.906 VI

Source: Primary Data

From the table 4.3.2 It is obvious that Money Transfers has scored first rank with
mean score of 56.792, Security Issues has scored second rank with mean score of 54.518,
Account/Balance Verification has scored third rank with mean score of 52.987, One-Time
Password has scored fourth rank with mean score of 50.104, Mobile banking locking facility
in case of loss of mobile has scored fifth rank with mean score of 43.693 and Security PIN
has scored last rank with mean score of 41.906.

76
 Table 4.3.3
Classification of the respondents on purpose of using mobile banking
Purpose of Using Mobile Banking Total Score Mean Score Rank
Cash Transfers 21764 56.677 I

Payment of Bills for Services 16342 42.557 III

Payment of Bills for Purchases 13251 34.508 V

Payment of Loans/Borrowings 14017 36.503 IV

Payment of Online Purchases 18208 47.417 II

Source: Primary Data

From the table 4.3.3, It is obvious that Cash Transfers has scored first rank with mean
score of 56.677, Payment of Online Purchases has scored second rank with mean score of
47.417, Payment of Bills for Services has scored third rank with mean score of 42.557,
Payment of Loans/Borrowings has scored fourth rank with mean score of 36.503 and
Payment of Bills for Purchases has scored last rank with mean score of 34.508.

77
 Table 4.3.4

Classification of the respondents on operations of the mobile banking over the internet

Mobile Banking over the Internet Total Score Mean Score Rank
Quality of the Internet service
19910 51.849 II
Technology Self-efficacy
17450 45.443 IV
Trust and Security
17931 46.695 III
Convenient operation
17125 44.596 V
Speed of the Net is fast
21141 55.055 I
Source: Primary Data

From the table 4.3.4 It is obvious that Speed of the Net is fast has scored first rank
with mean score of 55.055, Quality of the Internet service has scored second rank with mean
score of 51.849, Trust and Security has scored third rank with mean score of 46.695,
Technology Self-efficacy has scored fourth rank with mean score of 45.443 and Convenient
operation has scored last rank with mean score of 44.596.

78
(iiv).CHI-SQUARE ANALYSIS

The Chi-square test is an important test amongst the several tests of significance
developed by statisticians. Chi-square, symbolically written as X2, is a statistical measure
used in the context of sampling analysis for comparing a variance to a theoretical variance. It
is a non-parametric test, “it could be used to determine if categorical data shows dependency
or the two classifications are independent. It can also be used to make comparisons between
theoretical populations and actual data when categories are used. Thus, the Chi-square test is
applicable in large number of problems. The test is a technique through the use of which it is
possible for all researchers to do the following 2.I) Test the goodness of fit, ii) Test the
significance of association between two attributes and iii) Test the homogeneity or the
significance of population variance.

STEPS INVOLVED IN APPLYING CHI-SQUARE ANALYSIS

1. Calculate the expected frequencies on the basis of given hypothesis or on the basis of null
hypothesis.

2. Obtain the difference between observed and expected frequencies and find out the squares
of such differences i.e. calculate (Oij-Eij) 2.

3. Divide the quantity (Oij-Eij)2 obtained as stated above by the corresponding expected
frequency to get (Oij-Eij)2/Eij and this should be done for all the cell frequencies or the group
frequencies.

4. Find the summation of (Oij-Eij)2/ Eij values or what we call a (Oij-Eij) 2 / Eij. This is the
required C2 value. The X2 value obtained as such should be compared with relevant table
value of X2 and then inference be drawn.

79
 Table 4.4.1

Classification of the respondents on age and level of essential towards usage of mobile
banking (two-way table)

Level of Essential towards Usage of Mobile Banking

Total
Age In- Least Very Most
Essential
Essential Essential Essential Essential

No. of
48 years to 57 38 years to 47 28 years to 37 18 years to 27

4 3 2 20 174 203
Respondents
years

% 2.0% 1.5% 0.9% 9.85% 85.7% 100%

No. of
2 0 3 19 85 109
Respondents
years

% 1.8% 0.0% 2.75% 17.43% 78.0% 100%

No. of
1 0 5 28 18 52
Respondents
years

% 1.9% 0.0% 9.61% 58.82% 34.6% 100%

No. of
0 1 0 4 10 15
Respondents
years

% 0.0% 6.7% 0 26.68% 66.7% 100%

No. of
0 0 0 1 4 5
Above 57

Respondents
years

% 0.0% 0.0% 0% 20% 80.0% 100%

No. of
7 4 10 72 291 384
Total Respondents

% 1.8% 1.0% 2.60% 18.75% 75.8% 100%

Source: Primary Data

From the table 4.4.1, the relationship between age and level of essential towards usage
of mobile banking is shown in table. Out of the 384 respondents, 203 respondents belong to
age group of below: 18years to 27 years. In this faction, 85.7 percent of the respondents fall

80
under most essential category, 10.8 percent fall under essential category. About 1.5 percent
had not essential usage of mobile banking. A considerable number of respondents (2 percent)
do in-essential level. Among the age group of 28 years to 37 years about 78 percent most
essential, (20.2 percent under essential and 1.8 percent in-essential. Almost a very megar
trend was observed among the respondents who belong to the age group of 38 years to 47
years and 48 years to 57 years. In order to find out the relationship between age and level of
essential towards usage of mobile banking, a Chi-square test has been employed to test the
hypothesis given below::

Table - 4.4.2

Chi-square test

Pearson Chi-Square Calculated Chi-square Value Df p.value S/NS Remarks

Age 5.527 12 .000** S Rejected

** - Significant at 1% level S-Significant

From the above table 4.4.2, it has been divulged from the chi-square test that the p-
value (.000) has been less than 0.01 and the result has significance at 1 percent level. Hence,
the null hypothesis (H0) has been rejected and the alternative hypothesis (H1) has been
accepted. From the analysis it has been concluded that there is a relationship between age and
level of essential towards usage of mobile banking.

81
 Table 4.4.3
Classification of the respondents on gender and level of essential towards usage of
mobile banking (two-way table)
Level of Essential towards Usage of Mobile Banking

Gender In- Least Very Most Total

Essential
Essential Essential Essential Essential

No. of
3 0 7 67 148 218
Respondents
Male

% 1.4% 0.0% 3.20% 30.7% 67.9% 100.0%

No. of
4 4 3 13 141 162
Female

Respondents

% 2.5% 2.5% 1.85% 8.02% 87.0% 100.0%

No. of
Third Gender

0 0 0 2 2 4
Respondents

% 0.0% 0.0% 0 50% 50.0% 100.0%

No. of
7 4 10 72 291 384
Total Respondents

% 1.8% 1.0% 2.6% 18.75% 75.8% 100.0%

Source: Primary data

From the above table 4.4.3, in order to find out the relationship between gender and
level of essential towards usage of mobile banking, a chi-square test has been employed to
test the hypothesis given below::

82
 Table - 4.4.4

Chi-square test

Pearson Chi- DF S/NS Remarks

Calculated Chi-square Value p.value
Square

Gender 35.013 6 .000** S Rejected

** - Significant at 1% level S-Significant

From the above table 4.4.4, it has been divulged from the chi-square test that the p-
value (.000) has been less than 0.01 and the result has significance at 1 percent level. Hence,
the null hypothesis (H0) has been rejected and the alternative hypothesis (H1) has been
accepted. From the analysis it has been concluded that there is a relationship between Gender
and level of essential towards usage of mobile banking.

83
 Table 4.4.5
Classification of the respondents on Marital Status and Level of Essential towards
Usage of Mobile Banking (Two-Way Table)
Level of essential towards usage of mobile
Banking

Total
Marital Status
In- Least Very Most
Essential
Essential Essential Essential Essential

No. of Respondents 2 3 5 23 172 205

Unmarried

% 1.0% 1.5% 2.43% 11.21% 83.9% 100.0%

No. of Respondents 5 1 5 47 111 169

Married

% 3.0% 0.6% 2.95% 27.81% 65.7% 100.0%

No. of Respondents 0 0 0 2 6 8
Separated

% 0.0% 0.0% 0% 25% 75.0% 100.0%

No. of Respondents 0 0 0 0 2 2
Widow

% 0.0% 0.0% 0% 0% 100.0% 100.0%

No. of Respondents 7 4 10 72 291 384

Total
% 1.8% 1.0% 2.60% 18.75% 75.8% 100.0%

From the above table 4.4.5, in order to find out the relationship between marital status
and level of essential towards usage of mobile banking, a Chi-square test has been employed
to test the hypothesis given below::

84
 Table - 4.4.6

Chi-square test

Pearson Chi-
Calculated Chi-square Value DF p.value S/NS Remarks
Square

Marital status 20.361 9 .016* S Rejected

* - Significant at 5% level S-Significant

It has been divulged from the chi-square test that the p-value (.016) has been less than
0.05 and the result has significance at 5 percent level. Hence, the null hypothesis (H0) has
been rejected and the alternative hypothesis (H1) has been accepted. From the analysis it has
been concluded that there is a relationship between marital status and level of essential
towards usage of mobile banking.

85
 Table 4.4.7

Classification of the respondents on Educational Qualification and Level of Essential

towards Usage of Mobile Banking (Two-Way Table)

Level of essential towards usage of mobile

Banking

Total
Educational qualification
In- Least Very Most
Essential
Essential Essential Essential Essential

No. of Respondents 0 1 3 3 2 9
UPTO
SSLC

% 0.0% 11.1% 33.3% 33.3% 22.2% 100.0%

No. of Respondents 0 1 0 2 28 31
HSC

% 0.0% 3.2% 0% 6.45% 90.3% 100.0%

No. of Respondents 5 2 7 75 228 307

GRADU
ATION

% 1.6% .7% 2.28% 24.44% 74.3% 100.0%

No. of Respondents 0 0 0 2 31 33
DIPLO
MA

% 0.0% 0.0% 0% 6.05% 93.9% 100.0%

No. of Respondents 2 0 0 0 2 4
ITI/CER
TIFICA
TE

% 50.0% 0.0% 0% 0% 50.0% 100.0%

No. of Respondents 7 4 10 72 291 384

Total
% 1.8% 1.0% 2.60% 18.75% 75.8% 100.0%

In order to find out the relationship between educational qualification and level of
essential towards usage of mobile banking, a Chi-square test has been employed to test the
hypothesis given below::

86
 Table - 4.4.8

Chi-square test

Calculated chi-square
Pearson chi-square Df P.value S/NS Remarks
value

Educational
86.469 12 .000** S Rejected
Qualification

** - Significant at 1% level S-Significant

From the above table 4.4.8, it has been divulged from the chi-square test that the p-
value (.000) has been less than 0.01 and the result has significance at 1 percent level. Hence,
the null hypothesis (H0) has been rejected and the alternative hypothesis (H1) has been
accepted. From the analysis it has been concluded that there is a relationship between
Educational qualification and level of essential towards usage of mobile banking.

87
 Table - 4.4.9

Classification of the respondents on Occupation and Level of Essential towards Using

Mobile Banking (Two Way Table)

LEVEL OF ESSENTIAL TOWARDS USAGE OF

MOBIL BANKING
Occupation

Total
In- Least Very Most
Essential
Essential Essential Essential Essential

No. of
1 1 0 4 3 9
MAKER
HOME

Respondents

% 11.1% 11.1% 0 44.4% 33.3% 100.0%

No. of
GOVERNM

0 0 0 0 12 12
Respondents
ENT

% 0.0% 0.0% 0% 0% 100.0% 100.0%

No. of
2 3 9 66 147 227
PRIVATE
SERVICE

Respondents

% .9% 1.3% 3.96% 29.09% 64.8% 100.0%

No. of
EMPLOYE

2 0 1 2 119 124
Respondents
SELF

% 1.6% 0.0% 0.80% 1.6% 96.0% 100.0%

No. of
AGRICULT

2 0 0 0 10 12
Respondents
URE

% 16.7% 0.0% 0% 0% 83.3% 100.0%

No. of
7 4 10 72 291 384
Total Respondents

% 1.8% 1.0% 2.60% 18.75% 75.8% 100.0%

88
 In order to find out the relationship between occupation and level of essential towards
usage of mobile banking, a Chi-square test has been employed to test the hypothesis given
below::

Table - 4.4.10

Chi-square test

Pearson Chi- DF S/NS Remarks

Calculated Chi-square Value p.value
Square

Occupation 86.764 12 .016* S Rejected

* - Significant at 5% level S-Significant

From the above table 4.4.10, it has been divulged from the chi-square test that the p-
value (.016) has been less than 0.05 and the result has significance at 5 percent level. Hence,
the null hypothesis (H0) has been rejected and the alternative hypothesis (H1) has been
accepted. From the analysis it has been concluded that there is a relationship between
occupation and level of essential towards usage of mobile banking.

89
 Table 4.4.11

Classification of the respondents on Monthly Income and Level of Essential towards

Usage of Mobile Banking (Two-Way Table)

Level of Essential towards Usage of Mobile Banking

Total
Monthly Income In- Least Very Most
Essential
Essential Essential Essential Essential

No. of
0 1 1 2 158 162
RS.10,000

Respondents
UPTO

% 0.00% 0.60% 0.61% 1.23% 97.50% 100.00%

No. of
to RS.20,000
RS.10,0001

0 1 7 58 118 184
Respondents

% 0.00% 0.50% 3.80% 31.50% 64.10% 100.00%

No. of
RS.25,001 to

7 2 2 9 10 30
RS.50,000

Respondents

% 23.30% 6.70% 6.66% 29.97% 33.30% 100.00%

No. of
0 0 0 3 5 8
RS.50,000

Respondents
Above

% 0.00% 0.00% 0% 37.5% 62.50% 100.00%

No. of
7 4 10 72 291 384
Respondents
Total

% 1.80% 1.04% 2.60% 18.75% 75.80% 100.00%

From the above table 4.4.11, in order to find out the relationship between monthly
income and level of essential towards usage of mobile banking, a Chi-square test has been
employed to test the hypothesis given below::

90
 Table - 4.4.12

Chi-square test

Pearson Chi- DF S/NS Remarks

Calculated Chi-square Value p.value
Square

Monthly Income 163.187 9 .000** S Rejected

** - Significant at 1% level S-Significant

From the above table 4.4.12, it has been divulged from the Chi-square test that the p-
value (.000) has been less than 0.01 and the result has significance at 1 percent level. Hence,
the null hypothesis (H0) has been rejected and the alternative hypothesis (H1) has been
accepted. From the analysis it has been concluded that there is a relationship between
monthly income and level of essential towards usage of mobile banking.

91
 Table 4.4.13

Classification of the respondents on Number of Dependents and

Level of Essential towards Usage of Mobile Banking (Two-Way Table)

Level of Essential towards Usage of Mobile Banking

Total
No. of Dependents In- Least Very Most
Essential
Essential Essential Essential Essential

No. of
2 To 4 Members

6 4 9 64 258 341
Respondents

100.0
% 1.8% 1.2% 2% 18.77% 75.7%
%

No. of
5 To 7 Members

0 0 1 6 28 35
Respondents

100.0
% 0.0% 0.0% 2.85% 17.14% 80.0%
%

No. of
1 0 0 2 5 8
Respondents
Above 7
Mbers

m
e 100.0
% 12.5% 0.0% 0% 25% 62.5%
%

No. of
7 4 10 72 291 384
Respondents
Total

100.0
1.8% 1.0% 2.60% 18.75% 75.8%
% %

In order to find out the relationship between number of dependents and level of
essential towards usage of mobile banking, a Chi-square test has been employed to test the
hypothesis given below::

92
 Table - 4.4.14

Chi-square test

Pearson Chi-
Calculated Chi-square Value DF p.value S/NS Remarks
Square

No.of Dependents 6.502 6 .369 NS Accepted

NS-Not Significant

From the table 4.4.14, it has been divulged from the chi-square test that the p-value
(.369 ) has been more than 0.05 and the result has significance at 5 percent level. Hence, the
null hypothesis (H0) has been accepted and the alternative hypothesis (H 1) has been rejected.
From the analysis it has been concluded that there is no relationship between Number of
dependents and level of essential towards usage of mobile banking.

93
 Table 4.4.15

Classification of the respondents on Type of Family and Level of Essential towards

Usage of Mobile Banking (Two-Way Table)

Level of essential towards usage of mobile banking

Total
Type of family In- Least Very Most
Essential
Essential Essential Essential Essential

No. of
7 4 8 67 259 345
Nuclear

Respondents

% 2.0% 1.2% 2.31% 19.42% 75.1% 100%

No. of
0 0 2 5 32 39
Respondents
Joint

% 0.0% 0.0% 5.12% 12.82% 82.1% 100%

No. of
7 4 10 72 291 384
Respondents
Total

% 1.8% 1.0% 2.60% 18.75% 75.8% 100%

From the above table 4.4.15, in order to find out the relationship between type of
family and level of essential towards usage of mobile banking, a Chi-square test has been
employed to test the hypothesis given below::

94
 Table - 4.4.16

Chi-square test

Pearson chi-square Calculated chi-square value Df p.value S/ns Remarks

Type of family 1.704 3 .636 NS Accepted

NS-Not Significant

From the above table 4.4.16, it has been divulged from the chi-square test that the p-
value (.636) has been more than 0.05 and the result has significance at 5 percent level. Hence,
the null hypothesis (H0) has been accepted and the alternative hypothesis (H1) has been
rejected. From the analysis it has been concluded that there is no relationship between type of
family and level of essential towards usage of mobile banking.

95
 Table 4.4.17
Classification of the respondents on Type of Bank and Level of Essential towards Usage
of Mobile Banking (Two-Way Table)
Level of essential towards usage of mobile banking

Total
Type of the bank In- Least Very Most
Essential
Essential Essential Essential Essential

No. of
Public sector

4 0 8 43 158 213
Respondents
bank

% 1.9% 0.0% 3.75% 20.19% 74.2% 100.0%

No. of
sector bank

3 4 2 29 133 171
Private

Respondents

% 1.8% 2.3% 1.16% 16.96% 77.8% 100.0%

No. of
7 4 10 72 291 384
Total Respondents

% 1.8% 1.0% 2.60% 18.75% 75.8% 100.0%

From the table 4.4.17, in order to find out the relationship between type of bank and
level of essential towards usage of mobile banking, a Chi-square test has been employed to
test the hypothesis given below::

96
 Table - 4.4.18

Chi-square test

Pearson Chi-
Calculated Chi-square Value DF p.value S/NS Remarks
Square

Type of the bank 6.655 3 .084 NS Accepted

NS-Not Significant

From the above table 4.4.18, it has been divulged from the chi-square test that the p-
value. (.084) has been more than 0.05 and the result has significance at 5 percent level.
Hence, the null hypothesis (H0) has been accepted and the alternative hypothesis (H1) has
been rejected. From the analysis it has been concluded that there is no relationship between
type of bank and level of essential towards usage of mobile banking.

97
 Table 4.4.19

Classification of the respondents on Age and Level of Perception towards the

Supportiveness and Information provided by the Bank Staff (Two-Way Table)

Level of Perception towards supportiveness and

information provided by the bank staff
Age

Total
Effective and
Unsatisfactory Moderate
Satisfactory

No. of
4 60 139 203
18 years to
27 years

Respondents

% 2.0% 29.6% 68.5% 100.0%

No. of
28 years to
37 years

2 35 72 109
Respondents
% 1.8% 32.1% 66.1% 100.0%

No. of
0 16 36 52
38 years to
47 years

Respondents

% 0.0% 30.8% 69.2% 100.0%

No. of
0 3 12 15
48 years to
57 years

Respondents

% 0.0% 20.0% 80.0% 100.0%

No. of
0 0 5 5
Above 57

Respondents
years

% 0.0% 0.0% 100.0% 100.0%

No. of
6 114 264 384
Respondents
Total

% 1.6% 29.7% 68.8% 100.0%

98
 In order to find out the relationship between age and Level of Perception towards
supportiveness and information provided by the bank staff, a Chi-square test has been
employed to test the hypothesis given below::

Table - 4.4.20

Chi-Square Test

Pearson Chi- DF S/NS Remarks

Calculated Chi-square Value p.value
Square

Age 4.694 8 .790 NS Accepted

NS-Not Significant

From the above table 4.4.20, it has been divulged from the chi-square test that the
p-value (.790) has been more than 0.05 and the result has significance at 5 percent level.
Hence, the null hypothesis (H0) has been accepted and the alternative hypothesis (H1) has
been rejected. From the analysis it has been concluded that there is no relationship between
age and level of perception towards supportiveness and information provided by bank staff.

99
 Table 4.4.21
Classification of the respondents on Gender and Level of Perception towards the
Supportiveness and Information provided by the Bank Staff (Two-Way Table)
Level of Perception towards supportiveness
and information provided by the bank staff
Gender

Total
Effective and
Unsatisfactory Moderate
Satisfactory

No. of
1 81 136 218
Male Respondents

% .5% 37.2% 62.4% 100.0%

No. of
4 33 125 162
Female Respondents

% 2.5% 20.4% 77.2% 100.0%

No. of
1 0 3 4
Third gender Respondents

% 25.0% 0.0% 75.0% 100.0%

No. of
6 114 264 384
Total Respondents

% 1.6% 29.7% 68.8% 100.0%

In order to find out the relationship between gender and Level of Perception towards
supportiveness and information provided by the bank staff, a Chi-square test has been
employed to test the hypothesis given below::

100
 Table - 4.4.22

Chi-Square Test

Pearson Chi-
Calculated Chi-square Value DF p.value S/NS Remarks
Square

Gender 29.609 4 .000** S Rejected

** - Significant at 1% level S-Significant

From the above table 4.4.22, it has been divulged from the chi-square test that the p-
value (.000) has been less than 0.01 and the result has significance at 1 percent level. Hence,
the null hypothesis (H0) has been rejected and the alternative hypothesis (H1) has been
accepted. From the analysis it has been concluded that there is a relationship between gender
and level of perception towards supportiveness and information provided by bank staff.

101
 Table 4.4.23
Classification of the respondents on Marital Status and Level of Perception towards the
Supportiveness and Information provided by the Bank Staff (Two-Way Table)

Level of perception towards

supportiveness and information
provided by the bank staff

Total
Marital status
Effective and
Unsatisfactory Moderate
Satisfactory

No. of
5 67 133 205
Unmarried Respondents

% 2.4% 32.7% 64.9% 100.0%

No. of
0 47 122 169
Married Respondents

% 0.0% 27.8% 72.2% 100.0%

No. of
1 0 7 8
Separated Respondents

% 12.5% 0.0% 87.5% 100.0%

No. of
0 0 2 2
Widow Respondents

% 0.0% 0.0% 100.0% 100.0%

No. of
6 114 264 384
Total Respondents

% 1.6% 29.7% 68.8% 100.0%

In order to find out the relationship between marital status and Level of Perception
towards supportiveness and information provided by the bank staff, a Chi-square test has
been employed to test the hypothesis given below::

102
 Table - 4.4.24

Chi-square test

Pearson chi-square Calculated chi-square value Df P.value S/ns Remarks

Marital status 15.025 6 .000** S Rejected

** - Significant at 1% level S-Significant

It has been divulged from the chi-square test that the p-value (.000) has been less than
0.01 and the result has significance at 1 percent level. Hence, the null hypothesis (H0) has
been rejected and the alternative hypothesis (H1) has been accepted. From the analysis it has
been concluded that there is a relationship between Marital status and level of perception
towards supportiveness and information provided by bank staff.

103
 Table 4.4.25

Classification of the respondents on Educational Qualification and Level of Perception

towards the Supportiveness and Information provided by the Bank Staff

(Two-Way Table)

Level of Perception towards

supportiveness and information

Educational provided by the bank staff

Total
Qualification
Effective and
Unsatisfactory Moderate
Satisfactory

No. of
2 4 3 9
UPTO SSLC Respondents

% 22.2% 44.4% 33.3% 100.0%

No. of
1 19 11 31
HSC Respondents

% 3.2% 61.3% 35.5% 100.0%

No. of
3 70 234 307
GRADUATION Respondents

% 1.0% 22.8% 76.2% 100.0%

No. of
0 18 15 33
DIPLOMA Respondents

% 0.0% 54.5% 45.5% 100.0%

No. of
ITI/ 0 3 1 4
Respondents
CERTIFICATE
% 0.0% 75.0% 25.0% 100.0%

No. of
6 114 264 384
Total Respondents

% 1.6% 29.7% 68.8% 100.0%

104
 In order to find out the relationship between educational qualification and Level of
Perception towards supportiveness and information provided by the bank staff, a Chi-square
test has been employed to test the hypothesis given below:

Table - 4.4.26

Chi-square test

Pearson Chi-
Calculated Chi-square Value DF p.value S/NS Remarks
Square

Educational
64.856 8 .000** S Rejected
qualification

** - Significant at 1% level S-Significant

From the above table 4.4.26, it has been divulged from the chi-square test that the p-
value (.000) has been less than 0.01 and the result has significance at 1 percent level. Hence,
the null hypothesis (H0) has been rejected and the alternative hypothesis (H1) has been
accepted. From the analysis it has been concluded that there is a relationship between
educational qualification and level of perception towards supportiveness and information
provided by bank staff.

105
 Table 4.4.27

Classification of the respondents on Occupation and Level of Perception towards the

Supportiveness and Information provided by the Bank Staff (Two-Way Table)

Level of Perception towards

supportiveness and information

Occupation provided by the bank staff

Total
Effective and
Unsatisfactory Moderate
Satisfactory

No. of
Home maker

1 3 5 9
Respondents

% 11.1% 33.3% 55.6% 100.0%

No. of
Government

0 2 10 12
Respondents
service

% 0.0% 16.7% 83.3% 100.0%

No. of
5 101 121 227
Private

Respondents
service

% 2.2% 44.5% 53.3% 100.0%

No. of
0 6 118 124
employed

Respondents
Self

% 0.0% 4.8% 95.2% 100.0%

No. of
Agriculture

0 2 10 12
Respondents

% 0.0% 16.7% 83.3% 100.0%

No. of
6 114 264 384
Total Respondents

% 1.6% 29.7% 68.8% 100.0%

106
 In order to find out the relationship between occupation and Level of Perception
towards supportiveness and information provided by the bank staff, a Chi-square test has
been employed to test the hypothesis given below::

Table - 4.4.28

Chi-square test

Pearson Chi-
Calculated Chi-square Value DF p.value S/NS Remarks
Square

Occupation 73.552 8 .000** S Rejected

** - Significant at 1% level S-Significant

From the above table 4.4.27, it has been divulged from the chi-square test that the p-
value (.000) has been less than 0.01 and the result has significance at 1 percent level. Hence,
the null hypothesis (H0) has been rejected and the alternative hypothesis (H1) has been
accepted. From the analysis it has been concluded that there is a relationship between
Occupation and level of perception towards supportiveness and information provided by bank
staff.

107
 Table 4.4.29

Classification of the respondents on Monthly Family Income and Level of Perception

towards the Supportiveness and Information provided by the Bank Staff

(Two-Way Table)

Level of Perception towards supportiveness

and information provided by the bank staff
Monthly income

Total
Effective and
Unsatisfactory Moderate
Satisfactory

No. of
Upto 2 37 123 162
Respondents
Rs.10,000
% 1.2% 22.8% 75.9% 100.0%

No. of
Rs.10,0001 1 60 123 184
Respondents
to Rs.20,000
% .5% 32.6% 66.8% 100.0%

No. of
Rs.25,001 to 2 16 12 30
Respondents
Rs.50,000
% 6.7% 53.3% 40.0% 100.0%

No. of
Above 1 1 6 8
Respondents
Rs.50,000
% 12.5% 12.5% 75.0% 100.0%

No. of
6 114 264 384
Total Respondents

% 1.6% 29.7% 68.8% 100.0%

In order to find out the relationship between monthly income and Level of Perception
towards supportiveness and information provided by the bank staff, a Chi-square test has
been employed to test the hypothesis given below::

108
 Table - 4.4.30

Chi-Square Test

Pearson Chi-
Calculated Chi-square Value DF p.value S/NS Remarks
Square

Monthly Income 29.958 6 .000** S Rejected

** - Significant at 1% level S-Significant

From the above table 4.4.29, it has been divulged from the chi-square test that the p-
value (.000) has been less than 0.01 and the result has significance at 1 percent level. Hence,
the null hypothesis (H0) has been rejected and the alternative hypothesis (H1) has been
accepted. From the analysis it has been concluded that there is a relationship between
Monthly income and level of perception towards supportiveness and information provided by
bank staff.

109
 Table 4.4.31

Classification of the respondents on No. of Dependents and Level of Perception towards

the Supportiveness and Information provided by the Bank Staff (Two-Way Table)

Level of Perception towards

supportiveness and information

No. of dependents provided by the bank staff

Total
Effective and
Unsatisfactory Moderate
Satisfactory

No. of
2 Members to 3 102 236 341
Respondents
4 Members
% 0.9% 29.9% 69.2% 100.0%

No. of
5 Members to 3 8 24 35
Respondents
7 Members
% 8.6% 22.9% 68.6% 100.0%

No. of
Above 7 0 4 4 8
Respondents
Members
% 0.0% 50.0% 50.0% 100.0%

In order to find out the relationship between number of dependents and Level of
Perception towards supportiveness and information provided by the bank staff, a Chi-square
test has been employed to test the hypothesis given below::

110
 Table - 4.4.32

Chi-square test

Pearson Chi-
Calculated Chi-square Value DF p.value S/NS Remarks
Square

No. of dependents 14.234 4 .007** S Rejected

** - Significant at 1% level S-Significant

It has been divulged from the chi-square test that the p-value (.007) has been less than
0.01 and the result has significance at 1 percent level. Hence, the null hypothesis (H0) has
been rejected and the alternative hypothesis (H1) has been accepted. From the analysis it has
been concluded that there is a relationship between no.of dependents and level of perception
towards supportiveness and information provided by bank staff.

111
 Table 4.4.33

Classification of the respondents on Type of Family and Level of Perception towards the
Supportiveness and Information provided by the Bank Staff (Two-Way Table)

Level of Perception towards supportiveness

and information provided by the bank staff
Type of Family

Total
Effective and
Unsatisfactory Moderate
Satisfactory

No. of
4 104 237 345
Nuclear Respondents

% 1.2% 30.1% 68.7% 100.0%

No. of
2 10 27 39
Joint Respondents

% 5.1% 25.6% 69.2% 100.0%

No. of
6 114 264 384
Total Respondents

% 1.6% 29.7% 68.8% 100.0%

In order to find out the relationship between type of family and Level of Perception
towards supportiveness and information provided by the bank staff, a Chi-square test has
been employed to test the hypothesis given below::

112
 Table - 4.4.34

CHI-SQUARE TEST

Pearson Chi-
Calculated Chi-square Value DF p.value S/NS Remarks
Square

Type of Family 3.773 2 .152 NS Accepted

Not-Significant

It has been divulged from the chi-square test that the p-value (.152) has been more than
0.05 and the result has not significance at 5 percent level. Hence, the null hypothesis (H 0) has
been accepted and the alternative hypothesis (H1) has been rejected. From the analysis it has
been concluded that there is no relationship between Type of family and level of perception
towards supportiveness and information provided by bank staff.

113
 Table 4.4.35

Classification of the respondents on Type of Bank and Level of Perception towards the
Supportiveness and Information provided by the Bank Staff (Two-Way Table)

Level of Perception towards supportiveness and

information provided by the bank staff
Type of the Bank

Total
Effective and
Unsatisfactory Moderate
Satisfactory

PUBLIC No. of
0 62 151 213
SECTOR Respondents

BANK % 0.0% 29.1% 70.9% 100.0%

PRIVATE No. of 6 52 113 171

SECTOR Respondents
BANK % 3.5% 30.4% 66.1% 100.0%

No. of
6 114 264 384
Total Respondents

% 1.6% 29.7% 68.8% 100.0%

In order to find out the relationship between type of bank and Level of Perception
towards supportiveness and information provided by the bank staff, a Chi-square test has
been employed to test the hypothesis given below::

114
 Table - 4.4.36

Chi-square test

Pearson Chi-
Calculated Chi-square Value DF p.value S/NS Remarks
Square

Type of bank 7.847 2 .020* S Rejected

*Significant at 5% level
It has been divulged from the chi-square test that the p-value (.020) has been less than
0.05 and the result has not significance at 5 percent level. Hence, then the null hypothesis
(H0) has been rejected and the alternative hypothesis (H 1) has been accepted. From the
analysis it has been concluded that there is relationship between type of bank and level of
perception towards supportiveness and information provided by bank staff.

115
 Table 4.4.37
Classification of the respondents on Age and Level of Perception towards Using Mobile
Banking (Two-Way Table)

Level of perception towards using

Total
Age mobile banking
VF F M W AWNR
No. of
18 years to

7 65 89 25 17 203
27 years

Respondents

% 3.4% 32.0% 43.8% 12.3% 8.4% 100.0%

No. of
28 years to

5 20 46 23 15 109
37 years

Respondents

% 4.6% 18.3% 42.2% 21.1% 13.8% 100.0%

No. of
38 years to

1 7 24 7 13 52
47 years

Respondents

% 1.9% 13.5% 46.2% 13.5% 25.0% 100.0%

No. of
48 years to

0 1 8 3 3 15
57 years

Respondents

% 0.0% 6.7% 53.3% 20.0% 20.0% 100.0%

No. of
0 2 3 0 0 5
above 57

Respondents
years

% .0% 40.0% 60.0% .0% .0% 100.0%

No. of
13 95 170 58 48 384
Respondents
Total

% 3.4% 24.7% 44.3% 15.1% 12.5% 100.0%

In order to find out the relationship between age and level of perception towards usage
of mobile banking, a Chi-square test has been employed to test the hypothesis given below::

116
 Table - 4.4.38
CHI-SQUARE TEST

Pearson Chi-
Calculated Chi-square Value DF p value S/NS Remarks
Square

Age 28.889 16 .025* S Rejected

* - Significant at 5% level S-Significant

It has been divulged from the chi-square test that the p-value (.025) has been less than
0.05 and the result has significance at 5 percent level. Hence, the null hypothesis (H0) has
been rejected and the alternative hypothesis (H1) has been accepted. From the analysis it has
been concluded that there is a relationship between age and Level of perception towards using
mobile banking.

117
 Table 4.4.39
Classification of the respondents on Gender and Level of Perception towards Using
Mobile Banking (Two-Way Table)
Level of perception towards using mobile

Total
Gender banking

VF F M W AWNR
No. of
5 64 89 33 27 218
Respondents
Male

% 2.3% 29.4% 40.8% 15.1% 12.4% 100.0%

No. of
7 29 80 25 21 162
Female

Respondents

% 4.3% 17.9% 49.4% 15.4% 13.0% 100.0%

No. of
1 2 1 0 0 4
Respondents
gender
Third

% 25.0% 50.0% 25.0% .0% .0% 100.0%

No. of
13 95 170 58 48 384
Respondents
Total

% 3.4% 24.7% 44.3% 15.1% 12.5% 100.0%

In order to find out the relationship between gender and level of perception towards
usage of mobile banking, a Chi-square test has been employed to test the hypothesis given
below::

118
 Table - 4.4.40
Chi-Square Test

Pearson Chi- DF S/NS Remarks

Calculated Chi-square Value p value
Square

Gender 15.702 8 .047* S Rejected

* - Significant at 5% level S-Significant

It has been divulged from the chi-square test that the p-value (.047) has been less than
0.05 and the result has significance at 5 percent level. Hence, the null hypothesis (H0) has
been rejected and the alternative hypothesis (H1) has been accepted. From the analysis it has
been concluded that there is a relationship between gender and Level of perception towards
using mobile banking.

119
 Table 4.4.41
Classification of the respondents on Marital Status and Level of Perception towards
Using Mobile Banking (Two-Way Table)

Level of perception towards using mobile

Total
Marital status banking

VF F M W AWNR
No. of
Unmarried

7 65 93 26 14 205
Respondents

% 3.4% 31.7% 45.4% 12.7% 6.8% 100%

No. of
5 27 73 31 33 169
Married

Respondents

% 3.0% 16.0% 43.2% 18.3% 19.5% 100%

No. of
Separated

1 3 3 1 0 8
Respondents

% 12.5% 37.5% 37.5% 12.5% .0% 100%

No. of
0 0 1 0 1 2
Widow

Respondents

% .0% .0% 50.0% .0% 50.0% 100%

No. of
13 95 170 58 48 384
Respondents
Total
% 3.4% 24.7% 44.3% 15.1% 12.5% 100%

In order to find out the relationship between marital status and level of perception
towards usage of mobile banking, a Chi-square test has been employed to test the hypothesis
given below:

120
 Table - 4.4.42
Chi-square test

Pearson Chi- DF S/NS Remarks

Calculated Chi-square Value p value
Square

Marital Status 30.117 12 .003** S Rejected

** - Significant at 1% level S-Significant

It has been divulged from the chi-square test that the p-value (.003) has been less than
0.01and the result has significance at 1 percent level. Hence, the null hypothesis (H 0) has
been rejected and the alternative hypothesis (H1) has been accepted. From the analysis it has
been concluded that there is a relationship between marital status and Level of perception
towards using mobile banking.

121
 Table 4.4.43

Classification of the respondents on Educational Qualification and Level of Perception

towards Using Mobile Banking (Two-Way Table)

Level of perception towards using mobile

banking

Total
Educational qualification
AW
VF F M W
NR
No. of
0 2 4 2 1 9
UPTO Respondents
SSLC
% 0.00% 22.20% 44.40% 22.20% 11.10% 100.

No. of
HSC 4 9 7 4 7 31
Respondents
% 12.90% 29.00% 22.60% 12.90% 22.60% 100.
GRADUATION No. of
8 57 153 52 37 307
Respondents
% 2.60% 18.60% 49.80% 16.90% 12.10% 100.
No. of
DIPLOMA 1 25 6 0 1 33
Respondents
% 3.00% 75.80% 18.20% 0.00% 3.00% 100.
No. of
0 2 0 0 2 4
ITI/CERTIFICATE Respondents
% 0.00% 50.00% 0.00% 0.00% 50.00% 100.
No. of
13 95 170 58 48 384
Total Respondents
% 3.40% 24.70% 44.30% 15.10% 12.50% 100.

In order to find out the relationship between educational qualification and level of
perception towards usage of mobile banking, a Chi-square test has been employed to test the
hypothesis given below:

122
 Table - 4.4.44
Chi-square test

Pearson Chi-
Calculated Chi-square Value DF p value S/NS Remarks
Square

Educational
78.443 16 .000** S Rejected
qualification

** - Significant at 1% level S-Significant

It has been divulged from the chi-square test that the p-value (.000) has been less than
0.01and the result has significance at 1 percent level. Hence, the null hypothesis (H 0) has
been rejected and the alternative hypothesis (H1) has been accepted. From the analysis it has
been concluded that there is a relationship between Educational qualification and Level of
perception towards using mobile banking.

123
 Table - 4.4.45
Classification of the respondents on Occupation
How often you are using mobile banking?

Total
Occupation
VF F M W AWNR

No. of Respondents 2 3 2 0 2 9
Home maker
% 22.22 33.33 22.22 0 22.22 100
Government No. of Respondents 1 6 5 0 0 12
Service % 8.33 50 41.67 0 0 100
No. of Respondents 6 47 98 39 37 227
Private service
% 2.64 20.71 43.17 17.18 16.3 100
No. of Respondents 3 35 61 19 6 124
Self employed
% 2.41 28.23 49.19 15.32 4.839 100
No. of Respondents 1 4 4 0 3 12
Agriculture
% 8.33 33.33 33.33 0 25 100
No. of Respondents 13 95 170 58 48 384
Total
% 3.38 24.74 44.27 15.1 12.5 100

In order to find out the relationship between occupation and level of perception
towards usage of mobile banking, a Chi-square test has been employed to test the hypothesis
given below:

124
 Table - 4.4.46
Chi-Square Test

Pearson Chi- DF S/NS Remarks

Calculated Chi-square Value p value
Square

Occupation 37.537 16 .002** S Rejected

** - Significant at 1% level S-Significant

It has been divulged from the chi-square test that the p-value (.002) has been less than
0.01and the result has significance at 1 percent level. Hence, the null hypothesis (H 0) has
been rejected and the alternative hypothesis (H1) has been accepted. From the analysis it has
been concluded that there is a relationship between occupation and Level of perception
towards using mobile banking.

125
 Table 4.4.47
Classification of the Respondents on Monthly Family Income in Rupees and Level of
Perception towards Using Mobile Banking (Two-Way Table)

How often you are using mobile banking?

Monthly income
VF F M W AWNR Total
No. of
5 54 62 26 15 162
Upto Rs.10,000 Respondents
% 3.0864 33.333 38.272 16.0494 9.259 100
No. of
4 34 90 30 26 184
Rs.10,0001 to Rs.20,000 Respondents
% 2.1739 18.478 48.913 16.3043 14.13 100
No. of
3 5 15 1 6 30
Rs.25,001 to Rs.50,000 Respondents
% 10 16.667 50 3.33333 20 100
No. of
1 2 3 1 1 8
Above Rs.50,000 Respondents
% 12.5 25 37.5 12.5 12.5 100
No. of
13 95 170 58 48 384
Total Respondents
% 3.3854 24.74 44.271 15.1042 12.5 100

In order to find out the relationship between monthly family income and level of
perception towards usage of mobile banking, a Chi-square test has been employed to test the
hypothesis given below:

126
 Table - 4.4.48
Chi-Square Test

Pearson Chi-
Calculated Chi-square Value DF p value S/NS Remarks
Square

Monthly Income 23.903 12 .021* S Rejected

* - Significant at 5% level S-Significant

It has been divulged from the chi-square test that the p-value (.021) has been less than
0.05 and the result has significance at 5 percent level. Hence, the null hypothesis (H0) has
been rejected and the alternative hypothesis (H1) has been accepted. From the analysis it has
been concluded that there is a relationship between Monthly income and Level of perception
towards using mobile banking.

127
 Table 4.4.49

Classification of the Respondents on No. of Dependents and Level of Perception towards

Using Mobile Banking (Two-Way Table)

How often you are using mobile banking?

No. of Dependents Total
VF F M W AWNR
2members No. of
10 86 146 56 43 341
to 4 Respondents
members % 2.90% 25.20% 42.80% 16.40% 12.60% 100%
5 members No. of
1 8 20 2 4 35%
to 7 Respondents
members % 2.90% 22.90% 57.10% 5.70% 11.40% 100%
Above 7 No. of
2 1 4 0 1 8%
members Respondents
% 25% 12.50% 50.00% 0.00% 12.50% 100.00%
No. of
13 95 170 58 48 384%
Total Respondents
% 3.40% 24.70% 44.30% 15.10% 12.50% 100%

In order to find out the relationship between number of dependents and level of
perception towards usage of mobile banking, a Chi-square test has been employed to test the
hypothesis given below:

128
 Table - 4.4.50
Chi-Square Test

Pearson Chi- DF S/NS Remarks

Calculated Chi-square Value p value
Square

No. of dependents 17.503 8 .021* S Rejected

* - Significant at 5% level S-Significant

It has been divulged from the chi-square test that the p-value (.021) has been less than
0.05 and the result has significance at 5 percent level. Hence, the null hypothesis (H0) has
been rejected and the alternative hypothesis (H1) has been accepted. From the analysis it has
been concluded that there is a relationship between Number of dependents and Level of
perception towards using mobile banking.

129
 Table4.4.51
Classification of the respondents on Type of Family and Level of Perception towards
Using Mobile Banking (Two-Way Table)

How often you are using mobile banking?

Total
Type of family

VF F M W AWNR

No. of Respondents 11 86 146 56 46 345

Nuclear
% 3.19 24.9 42.32 16.23 13.3 100
No. of Respondents 2 9 24 2 2 39
Joint
% 5.13 23.1 61.54 5.128 5.13 100
No. of Respondents 13 95 170 58 48 384
Total
% 3.39 24.7 44.27 15.1 12.5 100
In order to find out the relationship between type of family and level of perception
towards usage of mobile banking, a Chi-square test has been employed to test the hypothesis
given below:

130
 Table - 4.4.52
Chi-Square Test

Pearson Chi- Calculated DF S/NS Remarks

Table value
Square Chi-square Value

Type of family 8.109 4 .088 NS accepted

Not-Significant

It has been divulged from the chi-square test that the p-value (.088) has been less than
0.05 and the result has significance at 5 percent level. Hence, the null hypothesis (H0) has
been accepted and the alternative hypothesis (H1) has been rejected. From the analysis it has
been concluded that there is no relationship between type of family and Level of perception
towards using mobile banking.
Table 4.4.53

Classification of the respondents on Type of Bank and Level of Perception towards

Using Mobile Banking (Two-Way Table)

How often you are using mobile banking?

Bank Total
VF F M W AWNR
No. of
PUBLIC 6 42 106 32 27 213
Respondents
SECTOR
BANK % 2.80% 19.70% 49.80% 15.00% 12.70% 100.00%

PRIVATE No. of
7 53 64 26 21 171
SECTOR Respondents
BANK % 31.00% 37.40% 15.20% 12.30% 100.00%
No. of
13 95 170 58 48 384
Respondents
Total
% 3.40% 24.70% 44.30% 15.10% 12.50% 100.00%

In order to find out the relationship between type of bank and level of perception
towards usage of mobile banking, a Chi-square test has been employed to test the hypothesis
given below:

131
 Table - 4.4.54
Chi-Square Test

Pearson Chi Calculated

DF Table value S/NS Remarks
Square Chi-square Value

Type of bank 8.607 4 .072 NS Accepted

Not-Significant

It has been divulged from the chi-square test that the p-value (.072) has been more than
0.05 and the result has significance at 5 percent level. Hence, the null hypothesis (H0) has
been accepted and the alternative hypothesis (H1) has been Rejected. From the analysis it has
been concluded that there is a no relationship between type of bank and Level of perception
towards using mobile banking.

132
(v) FACTOR ANALYSIS

Factor Analysis is a set of technique which by analyzing correlations between

variables reduces their numbers into fewer factors which explain much of the original data,
more economically. Even though a subjective interpretation can result from a factor analysis
output, the procedure often provides an insight into relevant psychographic variables, and
results in economic use of data collection efforts. The subjective element of factor analysis is
reduced by splitting the sample randomly into two and extracting factors separately from both
parts. If similar factors result, the analysis is assumed as reliable or stable

A. METHODS OF CONDUCTING FACTOR ANALYSIS

There are two stages in factor analysis.

Stage 1 Factor Extraction process,- this process is primarily used to determine how many
factors will be extracted from data.

Stage 2 Rotation of Principal Components.-This is actually optional, but highly

recommended. In this study, the rotation of principal component is used. After extracting the
factors, the next task is to interpret and title the relevant factors. This is done by the process
of identifying which factors are associated with which original variables. The factor matrix is
used for this purpose. The rotated factor matrix comes about in stage 2, these rotated factor
matrices is used to analyses and interpret the factors.

The factor matrix gives us the loading of each variable on each of the extracted
factors. This is similar to a correlation matrix with ‘loadings’ are having values between 0
and 1. Values close to 1 represent high loadings and those close to 0, denotes low loadings.
The normal procedure is to identify the high loading factors and provide a suitable title.

B. STEPS INVOLVED IN CONDUCTING FACTOR ANALYSIS

The steps involved in conducting factor analysis are as follows,

 The first step is to formulate the factor analysis problem and identify the variables to be
factor analyzed
 The next step is to develop a correlation matrix of the variables and the method of factor
analysis is selected.
 The next step involves the researcher's decision on extraction of number of factors and the
method of rotation.
 Next, the rotated factors should be interpreted

133
 Depending on the objective, the factor scores may be calculated, or surrogate variables
selected to represent the factors in subsequent multivariate analysis.
Table 4.5.1
Classification of the respondents on Dimensionality of the multi-scale items.
Kmo and Bartlett’s test for factors related to mobile banking operation services

Kaiser-Meyer-Olkin Measure of Sampling Adequacy. .733

Approx. Chi-Square 914.892

Bartlett's Test of Sphericity Df 28
P.value .000

**p<0.01 S-Significant
From the above table, two tests, namely Kaiser-Meyer-Olkin Measure of Sampling
Adequacy (KMO) and Bartlett’s Test of Sphericity have been applied to test whether the
relationship among the variables has been significant or not. The Kaiser-Meyer-Olkin
Measure of sampling adequacy shows that the value of test statistics is 0.733, which means
the factor analysis for the selected variable is found to be appropriate or good to the data.
Bartlett’s test of sphericity is used to test whether the data are statistically significant or not
with the value of test statistics and the associated significance level. It shows that there exists
a high relationship among variables.

134
 Table –4.5.2
Classification of the respondents on Eigen values and proportion of total variance of
each underlying factors related to mobile banking operation services
Extraction Method: Principal Component Analysis
Total Variance Explained
Extraction Sums of Rotation Sums of Squared
Initial Eigen values
Squared Loadings Loadings
Component

Cumulative

Cumulative

Cumulative
Variance

Variance

Variance
Total

Total

Total
% of

% of

% of
%

%
1 2.39 29.88 29.88 2.39 29.88 29.88 2.33 29.14 29.14
2 1.64 20.50 50.38 1.64 20.50 50.38 1.68 21.05 50.19
3 1.25 15.67 66.05 1.25 15.67 66.05 1.27 15.86 66.05

The results of the factor analysis presented in the table –regarding factors related to
influence in choosing Mobile banking operation services, have revealed that there are eight
factors that had Eigen value exceeding “one”. Among those three factors, the first factor
accounted for 29.88 per cent of the variance, the second 20.50 per cent, the last factor 15.67
per cent of the variance in the data set. The first four factors are the final factors solution and
they all together represent 66.05 per cent of the total variance in the scale items measuring the
factors related to influence in mobile banking operations. Hence from the above results, it is
certain these are the factors that are related to perception of mobile banking services.

135
 Table -4.5.3
Communalities for factors related to Mobile banking operation services
Communalities
Extraction Method: Principal Component Analysis

Initial Extraction
Banking web page can be accessed quickly 1.000 .233
Speed of the app 1.000 .793
Banking web page is trustworthy and security oriented 1.000 .701
Internet Bank operations 1.000 .682
Network Interruption 1.000 .768
Often I face problem with connection and internet 1.000 .798
Handling in critical situations 1.000 .501
Banking web page is slow 1.000 .808

The above table 4.5.3 (Communalities) represents the application of the Factor
Extraction Process, it was performed by Principal Component Analysis to identify the
number of factors to be extracted from the data and by specifying the most commonly used
Varimax rotation method. In the principal component analysis, total variance in the data is
considered. The proportion of the variance is explained by the eight factors in each variable.
The proportion of variance is explained by the common factors called communalities of the
variance. Principal Component Analysis works on initial assumption that all the variance is
common. Therefore, before extraction the communalities are all 1.000. Then the most
common approach for determining the number of factors to retain i.e. examining Eigen values
was done.

136
 Table- 4.5.4
Classification of the respondents on Rotated component matrix for factors related to
mobile banking operation services.
Rotated Component Matrix (a)
Component
1 2 3
Often I face problem with connection and internet .887 -.057 .088
Banking web page is trustworthy and security
.802 -.131 -.202
oriented
Internet Bank operations .635 .528 -.034
Banking web page can be accessed quickly .396 -.761 -.087
Banking web page is very slow -.140 .815 -.353
Network Interruption -.120 .804 .326
Speed of the app -.291 .047 .840
Handling in critical situations .472 -.059 .524
Extraction Method: Principal Component Analysis.
The above table 4.5.4 represents the Rotated Component Matrix, which is an
important output of principal component analysis. The coefficients are the factor loadings
which represent the correlation between the factors and the twelve variables (X 1 to X8). From
the above factor matrix it is found that coefficients for factor-I have high absolute correlations
with variable Often I face problem with connection and internet, Banking web page is
trustworthy and security oriented and internet Bank operations that is, .887, .802 and.635
respectively. Similarly factor-II has high absolute correlation with variable Banking web page
can be accessed quickly, Banking web page is very slow and Network Interruption that is,
.761, .815, and.804 respectively. Next, factor III has high absolute correlation with variable
Speed of the app and handling in critical situations that is, .840 and .524 respectively. For
example in this study, factor I is at least somewhat correlated with eight variable out of the
twelve variables with absolute value of factor loading greater than or equal to 0.5. In such a
complex matrix it is difficult to interpret the factor. So proceed to compute the rotated factor
matrix.

137
 Table 4.5.5
Component Transformation Matrix
Component 1 2 3
1 .964 -.242 -.111
2 .237 .970 -.055
3 .121 .026 .992
Extraction Method: Principal Component Analysis
The above table 4.5.5 reveals the factor correlation matrix. If the factors are
uncorrelated among themselves, then in the factor correlation matrix, the diagonal elements
will be 1’s and off diagonal elements will be 0’s. Since matrix was rotated with Varimax,
barring some variables all other variables are found to have, even if not zero correlations but
fairly, low correlation.
Thus the eight variables in the data were reduced to three Component factors and each
factor may be identified with the corresponding variables as follows:

Table 4.5.6

Showing the factors identified the factors related to mobile banking operations
Content % FACTOR

Often I face problem with connection and internet 78.68

Banking web page is trustworthy and security oriented 64.32 FACTOR I

Internet Bank operations 40.32

Banking web page can be accessed quickly 57.91

Banking web page is very slow 66.42 FACTOR II

Network Interruption 64.64

Speed of the app 70.56

FACTOR III
Handling in critical situations 27.46

138
 (vi) CORRELATIONS

To find out the level of satisfaction among the customers towards mobile banking

VARIABLES CODE
Satisfaction Y
Age X1
Gender X2
Marital status X3
Educational qualification X4
Occupation X5
Monthly family income in rupees X6
No. of dependents X7

Table 4.6.1
Classification of the respondents on Inter correlations matrix infrastructural facilities
Y X1 X2 X3 X4 X5 X6 X7 Method
Y 1
X1 0.033** 1
X2 0.017** -0.331 1

Step method
X3 0.089 ** 0.7 -0.12** 1
X4 0.289** -0.006 -0.215** -0.025** 1
X5 -0.039** -0.217 -0.009 -0.236** 0.209** 1
X6 0.189 0.404 -0.249** 0.285** 0.065 -0.195** 1
X7 0.031** 0.121 0.082** 0.1** 0.013** -0.016** 0.004** 1

Source: Primary Data **p<0.05, *p<0.10

Table 4.6.1 reveals that correlation analysis has been done on all the data collected
through the survey. This analysis is done to show the existing relation among the study
variables, namely, Age (X1), Gender (X2), Marital status (X3), Educational qualification (X4)
Occupation (X5), Monthly family (X6) and No. of dependents (X7), Overall opinion about
infrastructural facilities is significantly correlated with the Age (r = .033, p<0.01), Gender (r
= 0.017, p<0.00), Marital status (r = 0.089, p< 0.01), educational qualification (r = 0.289,
p<0.01), Occupation (r =-0.39, p<0.00) and Number of dependents (r = 0.031, p< 0.01). Here all
predictor variables were entered simultaneously. The predictor variables and the enter method was
used.

139
 Study shows that infrastructure facilities are positively correlated with Age gender, Marital
status educational qualification, monthly income and No.of dependents .Only one variable
occupation is not correlated with the infrastructure facilities

Table 4.6.2

Classification of the respondents on Inter Correlations Matrix- Self control

Y X1 X2 X3 X4 X5 X6 X7 Method
Y 1
X1 0.03 ** 1
X2 -0.009** -0.331** 1

Step method
X3 0.08** 0.7** -0.12** 1
X4 0.19 -0.006** -0.215** -0.025** 1
X5 -0.2 -0.217** -0.009** -0.236** 0.209** 1
X6 0.2** 0.404** -0.249** 0.285** 0.065** -0.2** 1
X7 0.01** 0.121** 0.082** 0.1** 0.013** -0.02** 0.004** 1

Source: Primary Data **p<0.05, *p<0.10

Table 4.6.2, reveals that correlation analysis has been done on all the data collected
through the survey. This analysis is done to show the existing relation among the study
variables, namely, Age (X1),Gender (X2), Marital status(X3), Educational qualification (X4)
Occupation (X5), Monthly family (X6), and No. of dependents (X7), Overall opinion about
self-control is significantly correlated with the Age (r = .003, p<0.01), Gender (r = -0.009,
p<0.00), Marital status (r = 0.08, p< 0.01), monthly income (r = 0.2, p<0.01) and Number of
dependents (r = 0.001, p< 0.01). Here all predictor variables were entered simultaneously. The
predictor variables and the enter method was used.

Study shows that self-control are positively correlated with Age Marital status educational
qualification, monthly income and No.of dependents .Two variables of Gender and occupation
are not correlated with the self-control.

140
 Table 4.6.3

Classification of the respondents on Inter correlations matrix- social influence

Y X1 X2 X3 X4 X5 X6 X7 Method
Y 1
X1 -0.087** 1
X2 0.041** -0.331** 1

Step method
X3 -0.087** 0.7** -0.12** 1
X4 0.21** -0.006** -0.215** -0.025** 1
X5 -0.012** -0.217** -0.009** -0.236** 0.209** 1
X6 0.042 0.404** -0.249** 0.285** 0.065** -0.195** 1
X7 0.012 0.121** 0.082** 0.1** 0.013** -0.016** 0.004** 1

Source: Primary Data **p<0.05, *p<0.10

Table 4.6.3, reveals that correlation analysis has been done on all the data collected
through the survey. This analysis is done to show the existing relation among the study
variables, namely, Age (X1),Gender (X2), Marital status(X3), Educational qualification (X4)
Occupation (X5), Monthly family (X6), and No. of dependents (X7), Overall opinion about
social influence is significantly correlated with the Age (r =-0.087, p<0.01), Gender (r =
0.041, p<0.00), Marital status (r =-0.087 0.08, p< 0.01), Educational qualification (r =-0.021,
p<0.01) and Occupation (r = 0.012, p<0.01) . Here all predictor variables were entered
simultaneously. The predictor variables and the enter method was used.

Study shows that social influence are positively correlated with gender, educational
qualification, monthly income and No.of dependents .Three variables of Age marital status and
occupation is not correlated with the social influence.

141
 Table 4.6.4

Classification of the respondents on Inter correlations matrix- perceived risk

Y X1 X2 X3 X4 X5 X6 X7 Method
Y 1
X1 0.201 1
X2 -0.366 -0.331** 1

Step Method
X3 0.097** 0.7** -0.12** 1
X4 0.227** -0.006** -0.215** -0.025** 1
X5 -0.01** -0.217 -0.009** -0.236** 0.209** 1
X6 0.33** 0.404 -0.249** 0.285** 0.065** -0.195** 1
X7 -0.11** 0.121** 0.082** 0.1 0.013** -0.016 0.004** 1

Table 4.6.4, reveals that correlation analysis has been done on all the data collected
through the survey. This analysis is done to show the existing relation among the study
variables, namely, Age (X1),Gender (X2), Marital status(X3), Educational qualification (X4)
Occupation (X5), Monthly family income (X6), and No. of dependents (X7), Overall opinion
about perceived risk is significantly correlated with the Marital status (r =-0.097 , p< 0.01),
Educational qualification (r =-0.227, p<0.01), Occupation (r = -0.01, p<0.01) , Monthly family
income (r =-0.033 , p< 0.01) and number of dependents (r = -0.11, p< 0.01). Here all predictor
variables were entered simultaneously. The predictor variables and the enter method was used.

Study shows that perceived risk are positively correlated with Age Marital status
educational qualification and monthly income .Three variables of gender, occupation and no.of
dependents are not correlated with the perceived risk.

142
 Table 4.6.5

Classification of the respondents on Inter correlations matrix- ease of use

Y X1 X2 X3 X4 X5 X6 X7 Method
Y 1.00
X1 -0.26** 1.00
X2 0.17** -0.33** 1.00

Step method
X3 -0.14 0.70** -0.12** 1.00
X4 0.05** -0.01** -0.22 -0.03** 1.00
X5 0.02 -0.22 -0.01 -0.24** 0.21** 1.00
X6 -0.11** 0.40** -0.25** 0.29** 0.06** -0.20** 1.00
X7 0.06** 0.12** 0.08** 0.10** 0.01** -0.02** 0.05 1.00

Table reveals that correlation analysis has been done on all the data collected through
the survey. This analysis is done to show the existing relation among the study variables,
namely, Age (X1),Gender (X2), Marital status(X3), Educational qualification (X4) Occupation
(X5), Monthly family income (X6), and No. of dependents (X7), Overall opinion about ease of
use is significantly correlated with the Age (r =-0.026 , p< 0.01), Gender (r =-0.17, p<0.01),
Educational qualification (r = -0.05, p<0.01), Monthly income (r = -0.011, p<0.01) and number
of dependents (r =-0.06, p< 0.01). Here all predictor variables were entered simultaneously. The
predictor variables and the enter method was used.

Study shows that ease of use are positively correlated with gender, educational
qualification, occupation and no.of dependents. Three variable of Marital status age and monthly
income are not correlated with the ease of use.

143
 Table 4.6.6

Classification of the respondents on Inter Correlations Matrix- Need for Interaction

Y X1 X2 X3 X4 X5 X6 X7 Method
Y 1.00
X1 0.21** 1.00
X2 -0.18** -0.33** 1.00

Step method
X3 0.23** 0.70 -0.12 1.00
X4 0.29** -0.01** -0.22** -0.03 1.00
X5 -0.16** -0.22** -0.01** -0.24** 0.21** 1.00
X6 0.28 0.40 -0.25 0.29** 0.06** -0.20** 1.00
X7 -0.07 0.12** 0.08** 0.10** 0.01 -0.02** 0.06** 1.00

Table reveals that correlation analysis has been done on all the data collected through
the survey. This analysis is done to show the existing relation among the study variables,
namely, Age (X1),Gender (X2), Marital status(X3), Educational qualification (X4) Occupation
(X5), Monthly family income (X6), and No. of dependents (X7), Overall opinion about need
for interaction is significantly correlated with the Age (r =-0.021 , p< 0.01), Gender (r =-0.18,
p<0.01), Marital status (r =-0.23, p<0.01), Educational qualification (r = -0.29, p<0.01) and
Occupation (r = -0.0.16, p<0.01). Here all predictor variables were entered simultaneously. The
predictor variables and the enter method was used.

Study shows that need for interaction are positively correlated with age marital status
educational qualification and monthly income. Three variables of gender, occupation and
no.of dependents is not correlated with the need for interaction.

144
 Table 4.6.7

Classification of the respondents on Correlation Matrix Usefulness

Y X1 X2 X3 X4 X5 X6 X7 Method
Y 1.00
X1 -0.19 1.00
X2 0.21** -0.33** 1.00

Step method
X3 -0.20** 0.70** -0.12 1.00
X4 0.05** -0.01** -0.22** -0.03** 1.00
X5 0.11** -0.22 -0.01** -0.24 0.21** 1.00
X6 -0.17 0.40** -0.25** 0.29** 0.06** -0.20** 1.00
X7 -0.02 0.12** 0.08 0.10 0.01 -0.02 0.560** 1.00

Table reveals that correlation analysis has been done on all the data collected through
the survey. This analysis is done to show the existing relation among the study variables,
namely, Age (X1),Gender (X2), Marital status(X3), Educational qualification (X4) Occupation
(X5), Monthly family income (X6), and No. of dependents (X7), Overall opinion about
usefulness is significantly correlated with the Gender (r =-0.21, p<0.01), Marital status (r =-
0.20, p<0.01), Educational qualification (r = -0.05, p<0.01) and Occupation (r = -0.0.11,
p<0.01). Here all predictor variables were entered simultaneously. The predictor variables and the
enter method was used.

Study shows that usefulness are positively correlated are age, gender, marital status,
educational qualification, monthly income and No.of dependents. Only one variable is not
correlated with the usefulness.

145
 Table 4.6.8

Classification of the respondents on Correlation Matrix Customer Support System

Y X1 X2 X3 X4 X5 X6 X7 Method
Y 1.00
X1 0.06 1.00
X2 -0.08** -0.33** 1.00

Step method
X3 0.12** 0.70** -0.12** 1.00
X4 0.25** -0.01** -0.22** -0.03 1.00
X5 -0.30** -0.22** -0.01 -0.24** 0.21 1.00
X6 0.31 0.40 -0.25** 0.29** 0.06** -0.20** 1.00
X7 -0.01** 0.12 0.08** 0.10 0.01 -0.02 0.450** 1.00

Table reveals that correlation analysis has been done on all the data collected through
the survey. This analysis is done to show the existing relation among the study variables,
namely, Age (X1),Gender (X2), Marital status(X3), Educational qualification (X4) Occupation
(X5), Monthly family income (X6) and No. of dependents (X7), Overall opinion about
customer support system is significantly correlated with the Gender (r =-0.08, p<0.01),
Marital status (r =-0.12, p<0.01), Educational qualification (r = -0.25, p<0.01) and Occupation
(r = - 0.0.30, p<0.01). Here all predictor variables were entered simultaneously. The predictor
variables and the enter method was used.

Study shows that customer support system are positively correlated are age, gender,
marital status, educational qualification, monthly income, and no.of dependents .Only one variable
is not correlated with the customer support system.

146
 (vii). RELIABILITY ANALYSIS
The reliability of scales used in this study was calculated by Cronbach's coefficient
alpha. Cronbach’s alpha reliability coefficient normally ranges between 0 and 1. However,
there is actually no lower limit to the coefficient. The closer Cronbach’s alpha coefficient is
to
1.0 the greater the internal consistency of the items in the scale. The coefficient alpha values
exceeded the minimum standard of 0.70. It has provided good estimates of internal
consistency reliability.
The formula is as follows:

• K is the number of items in the scale. kr

 1 (k 1)r
• r is the average correlation pairs of items.
• As the number of items in the scale (k) increases, the value of alpha becomes larger.
• If the inter-correlation between items is large, the corresponding alpha will also be larger.
Table 4.7.1
Classification of the respondents on the banking web site
operation, services etc., on mobile banking
Scale Mean if Cronbach's Alpha
Item Deleted if Item Deleted
Banking web page can be accessed quickly 29.1641 .816
Speed of the app 29.0625 .816
Banking web page is trustworthy and security
29.2161 .814
oriented
Internet bank operations 28.8229 .837
Network interruption 28.9766 .828
Often I face problem with connection and internet 29.3151 .807
Handling in critical situation 29.2552 .815
Banking web page is very slow 29.3203 .818
Mean 29.43
Variance 12.87
Std. Deviation 3.58
Cronbach's Alpha 0.838
N of Items 8

147
 Table 4.7.2
ANOVA
Mean
Sum of Sq Df F Sig
Square
Between People 616.297 383 1.609
Between Items 898.523 7 128.360 145.674 .000
Within
Residual 2362.352 2681 .881
People
Total 3260.875 2688 1.213
Total 3877.172 3071 1.263

It reveals that all the eight measurement scale items of the banking website operation,
services etc., on mobile banking are reliable as the Cronbach alpha coefficient of 0.838. It is
greater than the threshold level of 0.70. It’s provided good estimates of internal consistency
reliability and also coefficient alpha values ranged from 0.816 to 0.814 for all the constructs.
It is indicating that the scales used in this study were reliable. It clearly indicates that above
scale items are consistent with each other and they are reliable measure of the banking
website operation, services etc., on mobile banking, so that it can be used for next analysis.

148
 Table 4.7.3
Classification of the respondents on Opinion Towards, The Use and Satisfaction of
Mobile Banking Services

Scale Mean if Cronbach's Alpha if

Item Deleted Item Deleted
Net Banking Services 113.8672 .736
Service Available Everywhere 112.5130 .777
Availability of Customer Care 113.3333 .763
3rd party services 113.2083 .759
No difficulty in managing account 113.3177 .758
Independently use 114.3776 .725
Can do like others 112.5703 .775
Confidentially Internet banking 113.0208 .773
Purchase facility 113.0208 .769
Lot of advertisements towards mobile banking 113.5703 .756
Customer Agent Influence for Mobile banking 113.4453 .763
Profession Influence to use mobile banking 113.8698 .763
Family and Friends Influence to Use mobile
113.1510 .757
banking
Hearing and seeing the use of mobile banking
112.9818 .779
among the public
Knowledge of mobile banking 113.2292 .758
Extra charge taken by customer agent 113.5052 .768
Not available money at Customer Agent 113.3828 .765
Security alert 113.3438 .763
Service charge 113.2682 .759
Service in remote areas 113.7214 .748
Fast money transfer 113.4375 .755
Easy Access to bank account 112.7969 .770
24/7 Anytime and any-where banking 113.6354 .757
To follow standing instructions of mobile
113.7109 .755
banking
Family and Friends help is available 113.1510 .764

149
Help support from banks is available at any time 113.6589 .746
Funds transfer 113.2682 .759
Purchases and payments 113.7214 .748
Help available at any time 113.4375 .755

PIN password recovery features 112.7969 .770

Tracking of mischievous/fraud transactions 113.6354 .757

Checking for authentication 113.7109 .755
Caution is provided 113.1510 .764
Easy to get checked for each transaction 113.6589 .746
Mean 116.80
Variance 190.21
Std. Deviation 13.79
Cronbach's Alpha 0.765
No of Items 34

150
 Table 4.7.4
ANOVA
Sum of Mean
Df F Sig
Squares Square
Between People 2143.263 383 5.596 44.390 .000
Between Items 1925.023 33 58.334
Within
Residual 16609.153 12639 1.314
People
Total 18534.176 12672 1.463
Total 20677.440 13055 1.584

It reveals that all the thirty four measurement scale items of the use and satisfaction of
mobile banking are reliable as the Cronbach alpha coefficient of 0.765. It is greater than the
threshold level of 0.70. It’s provided good estimates of internal consistency reliability and
also coefficient alpha values ranged from 0.736 to 0.779 for all the constructs. It is indicating
that the scales used in this study were reliable. It clearly indicates that above scale items are
consistent with each other and they are reliable measure of use and satisfaction of mobile
banking services, so that it can be used for next analysis.
It is obvious that the 98.7 percent of the respondents was provided support and
information towards mobile banking from bank and 1.3 percent of the respondents was not
provided support and information towards mobile banking from bank. Majority of the
respondents had been provided and information towards mobile banking from bank
(98.7percent).

151
 Table 4.7.5
Classification of the respondents on the supportiveness and information provided by the
bank staff on mobile banking.

Frequency Percent
Effective and Satisfactory 6 1.6
INFORMATION
Moderate 114 29.7
PROVIDED BY THE
Unsatisfactory 264 68.8
BANK
Total 384 100.0

It is obvious that the bank had provided Effective and Satisfactory information to
respondents (1.6 percent), Moderate information to respondents (29.7 percent) and
unsatisfactory information to respondents (68.8 percent). Majority of the respondents had
provided unsatisfactory information from bank (68.8 percent).

152
(viii) MULTIPLE REGRESSION AND INTER-CORRELATION

Multiple regression analysis of overall opinion satisfaction (Y) (Infrastructural

facilities, Self-control, Social Influence, Perceived Risk, Ease of use, Need for Interaction and
Customer support) was performed with variables and Age (X1),Gender (X2), Marital
status(X3), Educational qualification (X4) Occupation (X5), Monthly family (X6), and No. of
dependents (X7), the following regression model is fitted for performance:

X16 = bo + b1X1 + b2X2 +b3X3 + ……….

Where b1, b2 ….and b6 are partial regression coefficients; bo-constant the results are
presented in the following table

153
 Table 4.8.1

Classification of the respondents on Multiple Regression Analysis

Dependent variable: overall opinion satisfaction towards infrastructural facilities

Unstandardized Standardized
Coefficients Coefficients t p.value S/NS
B Std. Error Beta
(Constant) 35.705 2.125 16.801 .000

Age -.444 .370 -.089 -1.200 .231 NS

Gender 1.038 .478 .117 2.168 .031* S

Marital status .856 .554 .106 1.544 .123 NS

Educational
2.658 .423 .317 6.291 .000** S
qualification
Occupation -.405 .340 -.061 -1.192 .234 NS

Monthly family
1.258 .351 .192 3.587 .000** S
income in rupees
No. Of dependents -.158 .566 -.014 -5.279 .000** S

R value .572
R square .139
Adjusted R square .123

Source: Primary Data **p < 0.01, S-Significant

As seen in Table 4.8.1. the Standardized Beta Coefficients give a measure of the contribution
of each variable to the model. A large value indicates that a unit change in this predictor
variable has a substantial effect on the criterion variable. The t and Sig ( p) values show a rough
indication of the impact of each predictor variable namely Gender (t- 2.168, p- 0.031, p< 0.05),
Educational qualification ( t – 6.291, p-0.00, p<0.01), Monthly family income (t – 3.587, p-
0.000, p< 0.01), and Number of dependents (t- 5.279, p- 0.00, P< 0.01), a big absolute t value
and p value suggests that a predictor variable has a large impact on the criterion variable.

It is found that gender, education qualification, monthly income and no. of dependents
are different significantly to satisfaction towards infrastructure facilities. In same case age,
marital status and occupation are not significantly to satisfaction towards infrastructure
facilities.

154
 Table 4.8.2 ANOVA

Model Sum of Sq Df Mean Square F p.value

Regression 1129.782 7 161.397 8.651 .000
1 Residual 7015.207 376 18.657
Total Data **p <0.01,8144.990
Source: Primary 383
S-significant

From Table it is clear the overall reports an ANOVA, which assesses the overall
significance of this model (F- 8.651, p value- 0.00). As p < 0.01, it is statistically significant.

155
 Table 4.8.3

Classification of the respondents on Multiple Regression Analysis

Dependent variable: overall opinion satisfaction towards self-control

Un-standardize Standardized
d Coefficients Coefficients
t p.value S/NS
Model

(Constant) Std.
B Beta
Error
13.354 1.173 11.388 .000
Age -.417 .204 -.152 -2.046 .041* S
Gender .082 .264 .017 .310 .756 NS
Marital Status .367 .306 .082 1.200 .231 NS
Educational
1.098 .233 .237 4.710 .000** S
Qualification
Occupation -.957 .188 -.260 -5.099 .000** S
1
Monthly Family
.634 .194 .175 3.276 .001** S
Income in Rupees
No. of Dependents .090 .313 .014 .286 .775 NS
R value .577
R square .142
Adjusted R square .126

Source: Primary Data **p <0.01, S-Significant

As seen in Table 4.8.3 the Standardized Beta Coefficients give a measure of the
contribution of each variable to the model. A large value indicates that a unit change in this
predictor variable has a substantial effect on the criterion variable. The t and Sig ( p) values show
a rough indication of the impact of each predictor variable namely Age (t- 2.046, p- 0.041, p<
0.05), Educational qualification ( t – 4.710, p-0.00, p<0.01) and Monthly family income (t –
3.276, p- 0.000, p< 0.01) a big absolute t value and p value suggests that a predictor variable has
a large impact on the criterion variable.

It is found that Age, education qualification, occupation and monthly income are different
significantly to satisfaction towards self-control. In same case gender, marital status and No. of
dependents are not significantly to satisfaction towards self-control.

156
Table 4.8.4 ANOVA

Sum of
Model Df Mean Square F P.value
Squares
Regression 353.036 7 50.434 8.878 .000

1 Residual 2135.954 376 5.681

table 4.8.4 it is2488.990
Total
From 383reports an ANOVA, which assesses the overall
clear the overall
significance of this model (F- 8.878, p value- 0.00). As p < 0.01, it is statistically significant.

Table 4.8.5

Classification of the respondents on Multiple Regression Analysis

Dependent variable: overall opinion satisfaction towards social influence

Un- Standardized
standardized
Coefficients
S/NS
Model

Coefficients t p.value
Std.
B Beta
Error
(Constant) 14.382 1.267 11.354 .000
Age -.157 .220 -.055 -.713 .476 NS
Gender .414 .285 .081 1.452 .147 NS
Marital Status -.342 .330 -.074 -1.034 .302 NS
Educational
1.132 .252 .236 4.494 .000** S
Qualification
Occupation -.284 .203 -.074 -1.402 .162 NS
1
Monthly Family
.284 .209 .075 1.356 .176 NS
Income in Rupees
No. of Dependents .098 .338 .015 4.290 .000** S
R value
.261
R square
.068
Adjusted R
.051
square

Source: Primary Data **p <0.01, S-Significant

157
 As seen in Table, 4.8.5 the Standardized Beta Coefficients give a measure of the
contribution of each variable to the model. A large value indicates that a unit change in this
predictor variable has a substantial effect on the criterion variable. The t and Sig ( p) values show
a rough indication of the impact of each predictor variable namely Educational qualification (t–
4.494, p-0.00, p<0.01) and Number of dependents (t – 4.290, p- 0.000, p< 0.01), a big absolute t
value and p value suggests that a predictor variable has a large impact on the criterion variable.

It is found that education qualification and no.of dependents are different significantly to
satisfaction towards social influence. In same case Age, gender, Marital status , occupation and
monthly income are not significantly to satisfaction towards social influence.

Table 4.8.6
ANOVA
Sum of Mean
Model Df F p.value
Squares Square
Regression 182.171 7 26.024 3.927 .000
1 Residual 2492.014 376 6.628
Total 2674.185 383

From Table 4.8.6 it is clear the overall reports an ANOVA, which assesses the
overall significance of this model (F- 3.927, p value- 0.00). As p < 0.01, it is statistically
significant.

158
 Table 4.8.7

Classification of the respondents on Multiple Regression Analysis Dependent

variable: overall opinion satisfaction towards perceived risk

Unstandardize Standardized
d Coefficients Coefficients
Model

t p.value S/NS
Std.
B Beta
Error
(Constant) 20.119 .971 20.713 .000
Age .118 .169 .049 .700 .485 NS
Gender -1.072 .219 -.250 -4.904 .000** S
Marital Status -.091 .253 -.023 -.359 .720 NS
Educational
.637 .193 .157 3.297 .001** S
Qualification
Occupation .020 .155 .006 .126 .900 NS
1 Monthly Family
.779 .160 .246 4.860 .000** S
Income In Rupees
No. of Dependents -.538 .259 -.096 -2.077 .039* S
R Value
R Square .576
.227
Adjusted R
.212
Square

Source: Primary Data **p <0.01, S-Significant

As seen in Table 4.8.7 the Standardized Beta Coefficients give a measure of the
contribution of each variable to the model. A large value indicates that a unit change in this
predictor variable has a substantial effect on the criterion variable. The t and Sig ( p) values show
a rough indication of the impact of each predictor variable namely Gender (t -4.094, p-0.00,
p<0.01) Educational qualification ( t – 3.297, p-0.00, p<0.01), Monthly family income (t -4.860,
p-0.00, p<0.01) and Number of dependents (t – 2.077, p- 0.39, p< 0.05) a big absolute t value
and p value suggests that a predictor variable has a large impact on the criterion variable.
It is found that gender, education qualification, monthly income and No.of dependents
are different significantly to satisfaction towards perceived risk. In same case Age marital status
and occupation are not significantly to satisfaction towards perceived risk

159
 Table 4.8.8
ANOVA
Sum of
Model Df Mean Square F P.value
Squares
Regression 429.421 7 61.346 15.740 .000
1 Residual 1465.451 376 3.897
Total 1894.872 383

From Table 4.8.8.it is clear the overall reports an ANOVA, which assesses the overall
significance of this model (F- 15.740, p value- 0.00). As p < 0.01, it is statistically
significant.

160
 Table 4.8.9
Classification of the respondents on Multiple regression analysis

Dependent variable: overall opinion satisfaction towards ease of use

Unstandardized Standardized
Coefficients Coefficients
Model

t p.value S/NS
Std.
B Beta
Error
(Constant) 13.471 1.054 12.783 .000
Age -.690 .183 -.288 -3.767 .000** S
Gender .414 .237 .096 1.743 .082 NS
Marital status .245 .275 .062 .890 .374 NS
Educational
.334 .210 .082 1.595 .112 NS
qualification
Occupation -.123 .169 -.038 -.732 .465 NS
1
Monthly family
-.010 .174 -.003 -4.059 .000** S
income in rupees
No. of dependents .466 .281 .083 1.659 .098 NS
R value
.676
R square
.327
Adjusted R
.312
square

Source: Primary Data **p <0.01, S-Significant

As seen in Table, 4.8.9. the Standardized Beta Coefficients give a measure of the
contribution of each variable to the model. A large value indicates that a unit change in this
predictor variable has a substantial effect on the criterion variable. The t and Sig ( p) values show
a rough indication of the impact of each predictor variable namely Age (t -3.767, p-0.00,
p<0.01) and Monthly family income (t -4.059, p-0.00, p<0.01) a big absolute t value and p value
suggests that a predictor variable has a large impact on the criterion variable.

It is found that age and monthly income are different significantly to satisfaction towards
ease of use. In same case gender, marital status, occupation and No. of dependents are not
significantly to satisfaction towards ease of use.

161
 Table 4.8.10
ANOVA
Sum of
Model Df Mean Square F p.value
Squares
Regression 175.320 7 25.046 5.459 .000(a)
1 Residual 1724.990 376 4.588
Total 1900.310 383

From Table.4.8.10 it is clear the overall reports an ANOVA, which assesses the
overall significance of this model (F- 5.459, p value- 0.00). As p < 0.01, it is statistically
significant.

162
 Table 4.8.11
Classification of the respondents on Multiple Regression Analysis

Dependent variable: overall opinion satisfaction towards need for interaction

Unstandardized Standardized
Coefficients Coefficients
Model

t p.value S/NS
Std.
B Beta
Er
(Constant) 4.620 .741 6.234 .000 NS
Age -.021 .129 -.012 -.166 .868 NS
Gender -.175 .167 -.054 -1.049 .295 NS
Marital status .470 .193 .159 2.432 .015* S
Educational
.945 .147 .309 6.413 .000** S
qualification
Occupation -.384 .119 -.158 -3.240 .001** S

1 Monthly family
.410 .122 .171 3.351 .001** S
income in rupees
No. of
-.351 .198 -.083 -1.777 .076 NS
dependents
R value
R square .561
.212
Adjusted R
.198
square

Source: Primary Data **p <0.01, S-Significant

As seen in Table 4.8.11. the Standardized Beta Coefficients give a measure of the
contribution of each variable to the model. A large value indicates that a unit change in this
predictor variable has a substantial effect on the criterion variable. The t and Sig ( p) values show
a rough indication of the impact of each predictor variable namely Marital status (t -2.432, p-
0.00, p<0.01) Educational qualification ( t –6.413, p-0.00, p<0.01), Occupation ( t –3.240, p-0.00,
p<0.01) and Monthly family income (t 3.351, p-0.00, p<0.01) a big absolute t value and p value
suggests that a predictor variable has a large impact on the criterion variable.

163
 It is found that Marital status education qualification occupation and monthly income are
different significantly to satisfaction towards need for interaction. In same case Age marital
status and occupation are not significantly to satisfaction towards need for interaction.

Table 4.8.12 ANOVA

Sum of Mean
Model Df F p.value
Squares Square
1 Regression 230.071 7 32.867 14.485 .000(a)
Residual 853.176 376 2.269
From Total 1083.247
Table it is clear 383 an ANOVA, which assesses the overall
the overall reports
significance of this model (F- 14.485, p value- 0.00). As p < 0.01, it is statistically
significant.

164
 Table 4.8.13
Classification of the respondents on Multiple Regression Analysis
Dependent variable: overall opinion satisfaction towards usefulness
Unstandardized Standardized
Coefficients Coefficients
Model

t p.value S/NS
Std.
B Beta
Error
(Constant) 5.201 1.078 4.825 .000
Age .077 .187 .031 .411 .682 NS
Gender .880 .243 .200 3.625 .000** S
Marital status -.640 .281 -.160 -2.277 .023 NS
Educational
.330 .214 .080 1.541 .124 NS
qualification
Occupation .165 .172 .050 .957 .339 NS
Monthly
1 family income -.255 .178 -.079 -6.432 .000** S
in rupees
No. of
-.112 .287 -.020 -.390 .697 NS
dependents
R value
R square .301
.091
Adjusted R
.074
square

Source: Primary Data **p < 0.01, S-Significant

As seen in Table,. the Standardized Beta Coefficients give a measure of the contribution
of each variable to the model. A large value indicates that a unit change in this predictor
variable has a substantial effect on the criterion variable. The t and Sig (p) values show a rough
indication of the impact of each predictor variable namely Gender (t -3.625, p-0.00, p<0.01) and
Monthly family income (t -6.432, p-0.00, p<0.01) a big absolute t value and p value suggests that
a predictor variable has a large impact on the criterion variable.

It is found that gender and monthly income are different significantly to satisfaction
towards usefulness In same case Age Marital status educational qualification, occupation and No
of dependents are not significantly to satisfaction towards usefulness

165
 Table 4.8.14
ANOVA
Sum of
Model Df Mean Square F p.value
Squares
Regression 179.669 7 25.667 5.346

1 Residual 1805.290 376 4.801 .000

Total 1984.958 383

From Table 4.54.4.it is clear the overall reports an ANOVA, which assesses the overall
significance of this model (F- 5.346, p value- 0.00). As p < 0.01, it is statistically significant

166
 Table 4.8.15
Classification of the respondents on Multiple Regression Analysis
Dependent variable overall opinion satisfaction towards customer support system
Un Standardized
standardized
Coefficients
t p.value S/NS
Model

Coefficients
Std.
B Beta
Error
(Constant) 18.416 1.405 13.104 .000
Age -.686 .244 -.194 -2.805 .005** S
Gender -.021 .316 -.003 -.067 .946 NS
Marital status .612 .367 .106 1.668 .096 NS
Educational
1.773 .279 .297 6.347 .000** S
qualification
Occupation -1.538 .225 -.324 -6.841 .000** S
1 Monthly family
1.296 .232 .277 5.583 .000** S
income in rupees

No. of dependents -.082 .375 -.010 -.219 .827 NS

R value
.508
R square .258
Adjusted R square
.244

Source: Primary Data **p <0.01, S-Significant

As seen in table the Standardized Beta Coefficients give a measure of the contribution of each
variable to the model. A large value indicates that a unit change in this predictor variable has a
substantial effect on the criterion variable. The t and Sig ( p) values show a rough indication of
the impact of each predictor variable namely Age (t -2.805, p-0.00, p<0.01) Educational
qualification ( t – 6.347, p-0.00, p<0.01), Occupation ( t – 6.841, p-0.00, p<0.01), Monthly
family income (t - 5.583, p-0.00, p<0.01) and Number of dependents (t – 2.077, p- 0.000, p<
0.01) a big absolute t value and p value suggests that a predictor variable has a large impact on
the criterion variable.

It is found that age, educational qualification, occupation and monthly income are
different significantly to satisfaction towards customer support system. In same case gender,
marital status and number of dependents are not significantly to satisfaction towards customer
support system

167
 Table 4.8.16
ANOVA
Mean
Model Sum of Sq Df F p.value
Square
Regression 1065.649 7 152.236 18.657 .000(a)
1 Residual 3068.007 376 8.160
Total 4133.656 383

From the above table 4.53.4, it is clear the overall reports an ANOVA, which
assesses the overall significance of this model (F- 18.657, p value- 0.00). As p < 0.01, it is
statistically significant.

168
 CHAPTER – V
Summary of findings , suggestion and conclusion
The respondents’ of socio-economic profile
 Maximum of the respondents belong to the age group of 18 years to 27 years (52.9
percent).

 The majority of the respondents are male (56.8 percent)

 Majority of the respondents are unmarried (53.4 percent).
 Majority of the respondents belong to the graduation level (79.9 percent).
 Maximum of the respondents belong to the occupational status of private service
(59.1%).

 Maximum of the respondent's monthly income is less than 10000 (42.2 percent).
 Majority of the respondents belong to the Nuclear Family (89.8 percent).
 Majority of the respondents have 2 to 4 earning members (88.8 percent) in the family.
The respondents on the basis accounts holding in bank
 Majority of the respondents belong to the public sector bank (55.5 percent).
 Majority of the respondents belong to the State bank of India customers (10.8 percent)
 Majority of the respondents come to know about mobile banking through friends
(43.8percent).

The respondents on opinion towards mobile banking.

 Majority of the respondent’s opinion towards mobile banking is Most essential 75.8
percent)

The respondents on often you are using mobile banking

 Majority of the respondents use mobile banking monthly (44.3 percentage).
 The level of satisfaction towards factor influenced mobile banking. Speed of the app,
have a high mean is 8.58.
 Infrastructural mobile banking. Service Available Everywhere, have a high mean
is 4.29.
 Self-control satisfaction Can do like others first rank have a high mean is 3.78.
 The level of satisfaction towards mobile banking hearing and seeing the use of mobile
banking among the public first rank have a high mean is 3.8.

169
 Service charge first rank have a mean is 3.5.
 Easy Access to bank first rank have a high mean is 4.0.
 Customer support s system satisfaction PIN password recovery futures first rank have a
high mean is 4.0.
 Internet Service has scored first rank with high mean score of 63.771.
 Factors doubts that arise in the minds of the customers are obvious that Money
Transfers has scored first rank with mean score of 56.792.
 Purpose of using mobile banking is obvious that Cash Transfers has scored first rank
with mean score of 56.677.
 Operations of the mobile banking over the internet is obvious that Speed of the Net is
fast has scored first rank with mean score of 55.055.
 Majority of the respondents had provided effective and satisfactory information from bank
(68.8 percent)
1. CHI-SQUARE ANALYSIS
Personal variables and level of essential towards usage of mobile banking
Chi-square test that the p-value (.000) has been less than 0.01 and the result has
significance at 1 percent level. Hence, the null hypothesis (H 0) has been rejected and the
alternative hypothesis (H1) has been accepted. That there is a relationship between Age
gender, Marital status education qualification, occupation, monthly income and the level of
essential towards usage of mobile banking.
Chi square test that the p-value .369 has been more then 0.05 and the result has significant
at 5 percent level. Hence the null hypothesis (Ho) has been accepted and the alternative
hypothesis (H1) has been rejected .That there is no relationship between number of
dependents, types of family and type of the bank.
Personal variables and level of perception towards the supportiveness and information
provided by the bank staffs
Chi square test that the p-value .790 has been more then 0.05 and the result has significant
at 5 percent level. Hence the null hypothesis (Ho) has been accepted and the alternative
hypothesis (H1) has been rejected that there is no relationship between age and type of family.
Chi-square test that the p-value (.000) has been less than 0.01 and the result has
significance at 1 percent level. Hence, the null hypothesis (H 0) has been rejected and the
alternative hypothesis (H1) has been accepted. That there is a relationship between gender,

170
marital status, educational qualification, occupation, monthly income , type of bank and
number of dependents.
Personal variables and level of perception towards using Mobile banking
Chi square test that the p-value .025 has been less than 0.05 and the result has significant
at 5 percent level. Hence the null hypothesis (Ho) has been rejected and the alternative
hypothesis (H1) has been accepted .that there is relationship between Age gender, marital
status education qualification, occupation monthly income and number of dependent.
Chi-square test that the p-value (.072) has been less than 0.05 and the result has
significance at 5 percent level. Hence, the null hypothesis (H 0) has been accepted and the
alternative hypothesis (H1) has been rejected. That there is a no relationship between type of
bank and type of family.
2. FACTOR ANALYSIS
The respondents on Rotated component matrix for factors related to mobile banking
operation services.

Rotated Component Matrix, which is an important output of principal component

analysis. The coefficients are the factor loadings which represent the correlation between the
factors and the three variables (X1 to X8). From the above factor matrix it is found that
coefficients for factor-I have high absolute correlations with variable Often I face problem
with connection and internet, Banking web page is trustworthy and security oriented and
internet Bank operations that is, .887, .802 and.635 respectively. Similarly factor-II has high
absolute correlation with variable Banking web page can be accessed quickly, Banking web
page is very slow and Network Interruption that is, .761, .815, and.804 respectively. Next,
factor III has high absolute correlation with variable Speed of the app and handling in critical
situations that is, .840 and .524 respectively. For example in this study, factor I is at least
somewhat correlated with eight variable out of the three variables with absolute value of
factor loading greater than or equal to 0.5. In such a complex matrix it is difficult to interpret
the factor. So proceed to compute the rotated factor matrix.

171
3. INTER CORRELATIONS MATRIX
 From the infrastructure facilities are positively correlated are age (0.033), gender (0.017),
marital status (0.089), educational qualification (0.289), monthly income (0.189), and
number of dependents (0.031). Only one variable of occupation is not correlated with the
infrastructure facilities.
 Because of self-control are positively correlated with age (0.03), marital status (0.089)
educational qualification (0.19), monthly income (0.2) and number of dependents
(0.01).Two variables of occupation (-0.2) and Gender (-0.009) are not correlated with the
self-control.
 This study reveals that social influence are positively correlated with gender (0.041)
educational qualification (0.21), monthly income (0.042) and number of dependents
(0.012) .
 It is clearly shows that perceived risks are positively correlated with age (0.201), marital
status (0.097), educational qualification (0.227) and monthly income (0.33). Three
variables of gender (-0.366), occupation (-0.01) and number of dependents (-0.11) are not
correlated with the perceived risk.
 Ease of use is positively correlated with gender (0.17), educational qualification (0.05),
occupation (0.02) and number of dependents (0.06). Three variable of marital status
(0.14), age (-0.26) and monthly income (0.11) are not correlated with the ease of use.
 Need for interactions are positively correlated with age (0.21), marital status (0.23),
educational qualification (0.29) and monthly income (0.28). Three variables of gender
(0.18), occupation (-0.16) and number of dependents (-0.07) is not correlated with the
need for interaction.
 Usefulness are positively correlated with gender (0.21), educational qualification (0.05),
occupation (0.11) .Four variable of age (-0.19), marital status (0.20), monthly income (-
0.17) and number of dependents (-0.02) not correlated with the usefulness.
 Customer support system are positively correlated with age (0.06), marital status (0.12),
educational qualification (0.25), monthly income (0.31) .Three variable of gender (-0.08),
occupation (-0.30) and number of dependents (-0.01) not correlated with the customer
support system.

172
4. RELIABILITY ANALYSIS
The respondents on the banking web site operation, services etc., on mobile banking
The eight measurement scale items of the banking website operation, services etc., on
mobile banking are reliable as the Cronbach alpha coefficient of 0.838. It is greater than the
threshold level of 0.70. It’s provided good estimates of internal consistency reliability and
also coefficient alpha values ranged from 0.816 to 0.814 for all the constructs. It is indicating
that the scales used in this study were reliable. It clearly indicates that above scale items are
consistent with each other and they are reliable measure of the banking website operation,
services etc., on mobile banking, so that it can be used for next analysis.

The respondents on opinion towards, the use and satisfaction of mobile banking
services
The thirty four measurement scale items of the use and satisfaction of mobile banking are
reliable as the Cronbach alpha coefficient of 0.765. It is greater than the threshold level of
0.70. Its provided good estimates of internal consistency reliability and also coefficient alpha
values ranged from 0.736 to 0.779 for all the constructs. It is indicating that the scales used in
this study were reliable. It clearly indicates that above scale items are consistent with each
other and they are reliable measure of use and satisfaction of mobile banking services, so that
it can be used for next analysis.

173
5. MULTIPLE REGRESSION AND INTER-CORRELATION

 Gender, education qualification, monthly income and number of dependents are different
significantly to satisfaction towards infrastructure facilities. In same case age marital
status and occupation are not significantly to satisfaction towards infrastructure facilities.
The overall reports an ANOVA, which assesses the overall significance of this model (F-
8.651, p value- 0.00). As p < 0.01 it is statistically significant.

 Age education qualification, occupation and monthly income are different significantly to
satisfaction towards self-control. In same case gender, marital status and number of
dependents are not significant to satisfaction towards self-control. The overall reports an
ANOVA, which assesses the overall significance of this model (F- 8.878, p value- 0.00). As
p < 0.01 it is statistically significant.

 Education qualification and number of dependents are different significantly to

satisfaction towards social influence. In same case Age gender, Marital status occupation
and monthly income are not significantly to satisfaction towards social influence. The
overall reports an ANOVA, which assesses the overall significance of this model (F-
3.927, p value- 0.00). As p < 0.01 it is statistically significant.
 Gender, education qualification, monthly income and number of dependents are different
significantly to satisfaction towards perceived risk. In same case Age, marital status and
occupation are not significantly to satisfaction towards perceived risk. The overall reports
an ANOVA, which assesses the overall significance of this model (F- 15.740, p value-
0.00). As p < 0.01 it is statistically significant.
 Age and monthly income are different significantly to satisfaction towards ease of use. In
same case gender, Marital status occupation and No. of dependents are not significantly to
satisfaction towards ease of use. The overall reports an ANOVA, which assesses the
overall significance of this model (F- 5.459, p value- 0.00). As p < 0.01 it is statistically
significant.
 Marital status, education qualification, occupation and monthly income are different
significantly to satisfaction towards need for interaction. In same case Age gender,
number of dependent not significantly to satisfaction towards need for interaction. The
overall reports an ANOVA, which assesses the overall significance of this model (F-
14.485, p value- 0.00). As p < 0.01 it is statistically significant.
 Gender and monthly income are different significantly to satisfaction towards usefulness.
In same case Age, marital status, education qualification, occupation and number of
dependents are not significantly to satisfaction towards usefulness. The overall reports
and ANOVA, which assesses the overall significance of this model (F- 5.346, p value-

174
 0.00). As p < 0.01 it is statistically significant.

 Age, educational qualification, occupation and monthly income are different significantly
to satisfaction towards customer support system. In same case gender, marital status and
number of dependents are not significantly to satisfaction towards customer support
system. The overall reports an ANOVA, which assesses the overall significance of this
model (F- 18.657, p value- 0.00). As p < 0.01 it is statistically significant.

175
SUGGESTIONS OF THE STUDY
1. It would be better for all the banks to be very transparent in their operations,
speedy & clear in their process & communication respectively & assured about unique and
advantageous products and services.

2. It indicates public sector banks equally offers all the modern banking services
but only needs to generate more users through providing effective responses of customer’s
dilemma through direct communication at the point of sales, which helps to better inform and
educate the customers. Banks can appoint candidates for direct communication for the place
where they find big crowd, Ex. Universities.

3. In comparison with private banks and public banks have to focus on their
layout, physical facilities, banking hours, speed in operations and reduced paperwork.

4. Today most of the youngsters are earned persons, so they prefer the best
banking services. So, all the bank categories could inform and attract such potentials by
adopting highly explored media internet, cinema, mobile, sports, and digital hoardings as
promotional tools. Pop-up ad for recalling Banks in mobile banking

5. Most of the category banks are likely to have the same product & services &
tiring to put customers at ease. So, to differentiate its identity from others each bank has to
make hard efforts to rebuild their brand perception among their customers.

6. As various qualified persons are not equally comfortable with skill &
competency of the employees as well as mission, vision, and objectives, banks need to
employ candidates of different levels to better understand, attract and retain their customers.

7. As per the finding, customers with different income & occupation having
different expectations as they differently satisfied, banks can provide customized products &
services to them.

8. Private sector banks need to do hard efforts to retain their customers according
to the findings. These banks can cut some service charges & be more responsible &
responsive for their services.

9. In today’s competitive environment, Banks will have to strive to attract and

retain customers by introducing innovative products, enhancing the quality of customer
service and marketing a variety of products through diverse channels targeted at specific
customer

176
groups. They have to meet the customer expectations on service and various mobile banking
services provided.
10. The bankers have to take a comprehensive view of their delivery channels.
Integrated Delivery channels could further enhance the successful adoption of technology like
e-mail, mobile banking, ATMs, etc. Advertising the products and explaining the products
elaborately will help in attracting more and more people. They must be gradually shifted from
the concept of Brick Banking to Click Banking. A system should be developed in such a way
that a customer can use his mobile banking and mobile banking PIN for authentication in a
transaction through the net. The mobile pin and login ID issued to a person must be unique so
that he is specifically identified by it and can do all transactions with it.

11. The changes in the Banking and financial sector require a fundamental shift in
skills required for mobile Banking. To meet increased competition, the need for specialized
banking functions, using IT as a competitive tool is required. Special skills in retail banking,
foreign exchange, etc., will have to be nurtured with care and built upon. Thus the twin pillars
of the banking sector i.e., human resources and IT will have to be strengthened. Proper
Technical training to staff must be provided to handle crisis situations.

12. With the increasing market orientation of the financial system and to face
competition and benefits accrued by technological developments, banks are making increased
use of outsourcing for reducing costs and increasing efficiency. A basic requirement in this
context is that a regulated entity seeking to outsource activities has in place a comprehensive
policy and programmer to address the outsourced activities and the relationship with the
service provider.

13. Mobile banking services like e-banking / i-banking must be provided free of
cost or at a cost less than the amount involved in Regular banking transactions. Mobile
banking services can also be provided free if the customer has availed another service. This
will facilitate customers to use more Mobile banking services provided and not to visit the
bank physically. Higher electronic transaction volumes will boost profits. Banks can also
utilize their time for better purposes.

14. Customers appreciate not only consistencies in services but also hassle-free
interface with technology. The level of frustration and dissatisfaction escalates when a
customer encounters problems due to technology either while transacting business on-site or

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off-site. When customers file a complaint, it must be resolved immediately. If not, proper
feedback must be provided to the customer regarding the status of the problem. Nowadays
customers can directly approach the grievances cell, Banking Ombudsman, Consumer Forum
for a redress of their complaints.

15. Marketing strategy must be formulated within the overall framework of

corporate objectives and strategy of a mobile Bank. Strategic marketing must begin with the
effort to identify an attractive set of opportunities for the bank. The Banker must embark
upon aggressive marketing of its products, particularly at the time of launching a new
product, which will inform the prospective customers regarding the product and at the same
time relieve staff at the branch level from explaining the product to all customers.

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5.3. CONCLUSION

The study reveals that there are vast opportunities as well as challenges for mobile
banking services provided by banks in India. It is found that due to technological innovations
and significant change in the demographic profile of customers, there is huge market
potential lying ahead. This study recommends among others that Banks should design new
products as well as improve on the existing mobile banking services provided. They should
make the packages more attractive and if possible unique.

They should ensure that the 4Ps -Products, Place, Promotion, Price) of mobile bank
services are customer-oriented. The study reveals that the awareness level of mobile bank
services is restricted to only a certain section of society. Hence, Banks must concentrate on
the needs and demands of various customers depending on their requirements. The study
also reveals that ATMs and Credit Cards are the most common mobile bank services utilized
by the respondents. Efforts must be made to market the other services namely, E-banking,
Demat accounts, Online tax filing and Anywhere banking, etc., So that the customers as well
as the banks are benefitted.

In a service industry like banking, where product differentiation is hard to maintain

and the quality of service depends on the service provider, it is imperative for the Bank to
have staffs who realize that they are a part of the business concern. They have to render
services to the satisfaction of the customers. The Banks need to equip themselves with
internal capabilities and build efficient and viable business models to create the advantage of
new opportunities available into a long term sustainable competitive advantage.
Implementation of Information technology to enhance customer service also calls for training
and change in the mindset and attitude of employees and the organization

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