A STUDY ON ANTECEDENTS OF SATISFACTION TOWARDS

INTERNET BANKING SERVICES WITH SPECIAL REFERENCE TO

PUBLIC SECTOR BANKS IN COIMBATORE CITY

Dissertation submitted to Bharathiar University

in partial fulfillment of the requirements for the award of the degree of

MASTER OF PHILOSOPHY IN COMMERCE

Submitted By
SARANYA.D
(Reg.No:2018R0569)

UNDER THE GUIDENCE OF

Dr.V.POONGODI M.Com., M.Phil., Ph.D., PGDCA..
Associate Professor
Head, Department of Commerce
CONTENTS….
 INTRODUCTION
 REVIEW OF LITERATURE
 RESEARCH METHODOLOGY
 DATA ANALYSIS & INTERPRETATION
 FINDING
 SUGGESTIONS
 CONCLUSION
 BIBLIOGRAPHY
 APPENDIX
INTRODUCTION…
1.1 INTRODUCTION TO BANKING INDUSTRY
 The economy of a country can function smoothly and without many
hassles if the banking system is not only flexible but also capable of
meeting the new challenges posed by the technology and other external as
well as internal factors.

 The importance and role of information technology for achieving this

objective cannot be undermined. Technology advances have accelerated
changes resulting in higher production of goods & services.

 The information technology has transformed the functioning of business

across the world. It bridged the gap in terms of both reach and the
coverage of system and in the process enabling better decision making
based on latest and accurate information and improvement in
efficiency through various new processes, products and services offered by
both state owned banks, private sector banks and foreign banks and
financial institutions
INTRODUCTION…
Structure of Indian Banking System
 India’s banking system broadly consists of “non – schedules banks”
and scheduled banks”. Further, Scheduled banks consist of “scheduled
commercial banks: and “scheduled cooperative banks”.

The former are further divided into four categories:

 Public sector banks (that are further classified as “Nationalized banks” and
the “State Bank of India (SBI) banks”
 Private sector banks (that are further classified as “old private sector banks”
and “new private sector banks” that emerged after 1991
 foreign banks in India and

 Regional rural banks.

STATEMENT OF THE PROBLEM
 Electronic banking as it has demonstrated the velocity of its growth is
incredibly fast and efficient. It has allowed individuals including
companies to perform their banking businesses from their homes or offices
in a very cost-effective way. Studies have shown that with this new
technology, it has become possible for both the banks and customers to
have an immediate insight about the status and operations of their
accounts.

 There is a need to have an adequate level of infrastructure and human

capacity building before the developing countries can adopt global
technology for their local requirements. In developing countries, many
consumers either do not trust or do not access to the necessary
infrastructure to be able to process e-processing through banks.
 OBJECTIVES OF THE STUDY
 To study about the demographic profile of the respondents.
 To study level of usage of various E-banking facilities provided by the
banks.
 To analyse the satisfaction towards specific E-banking facilities provided by
the banks.
 To study opinion towards various E-banking facilities provided by the
banks.
 To study the level of satisfaction towards E-banking provided by the banks.
 To compare the demo graphic variables with level of satisfaction towards E-
banking provided by the banks.
 To suggest the perception of customers to the banks related to E-banking.
 SCOPE OF THE STUDY
The present study highlights the extent of utilization of the e-banking services
offered by the banks by the sample respondents. It also limelight’s the
customer’s perception towards CRM practices and satisfaction level of e-
banking offered by banks. The study helps in identifying the lacuna in
implementing e Banking Perspective and to suggest various measures in
making 100% technology based banks. In this Global environment the
customer is more knowledgeable, their expectations are very high and they
need more convenience in any services they avail.
The major services offered by the public sector Banks are taken into
consideration in order to study the customers relationship practices offered
by the public sector banks. As such, there is a scope to examine whether the
services provided by the Banks cater to the needs of various classes of
customers. The present study not only brings to light the relationship
strategies adopted, but also satisfaction towards instilled technological
support by the banks.
NEED OF THE STUDY…
 The main need of the chapter is to analyse the e-banking
satisfaction towards e-banking.
 It will help the banks to know about the perception of customers
towards the service provided by the bank.
 Helps in finding out the important factors influencing e-banking.
 LIMITATIONS OF THE STUDY

 Study area was restricted to only 10 banks in Coimbatore

district by considering cost and time, hence lacks universal
applicability.
 Since the collection of data is made manually, the chance of
testing usage rate of technology may not be ensured with each
respondent.
 The sample was restricted to 150 selective respondents only.
REVIEW OF LITERATURE
 Gupta and Dev, (2012) The purpose of this paper is to identify the
factors impacting customer satisfaction in Indian banks and analyze
their effects the level of customer satisfaction through a regression
analysis. The primary contribution of this study is the analysis and
resulting insights on the critical factors impacting client satisfaction
within the Indian retail banking sector. A 28 item questionnaire was
prepared based on literature review and discussions with current
customers of Indian banks. The questionnaire was then sent out to
current customers of 13 retail banks in India. In total, 420 completed
questionnaires were received, out of which 400 were found to have
been accurately and completely answered. The 28‐item instrument
has been empirically tested for unidimensionality, reliability and
validity using Cronbach alpha and exploratory factor analysis. A
factor analysis suggests that there are five factors driving customer
satisfaction: “service quality”, “ambience/hygiene”, “client
participation/involvement”, “accessibility” and “financial”.
Subsequent multiple regression analysis revealed that “service
quality”, “ambience and hygiene”, and “client participation and
involvement” in that order are the most important factors impacting
client satisfaction.
RESEARCH METHODOLOGY
 Methodology
Research Methodology is a way to systematically solve the research problem.
It may be understood as a science of studying how research is done
scientifically.
 Research Design
The study is descriptive in nature. Descriptive studies are more than just a
collection of data they involve measurements, classifications, analysis
comparisons, and interpretations.
 Source of Data
 The data that is collected for the purpose of study is been obtained from
Primary Source
 Primary data:
 The primary data were collected through structured questionnaire.

 Secondary data:
 The required secondary was collected from books, magazines and web-sites.
RESEARCH METHODOLOGY
Sample Size
 300 respondents in the Coimbatore city have been selected as the sample for the study.

Sampling Method
 The sampling method used for this study is convenient sampling.

Sampling Techniques
 The methodology followed for collecting data, selection of sample, and analysis of data is as
follows:

Data Collection Technique

 The questionnaire has been designed and supplied to the respondents for collecting primary
data from customers to conduct the study.

STATISTICAL TOOLS USED

 Chi-square Analysis
 Rank Correlation
 Simple percentage analysis method
 Anova
 Factor Analysis
INDUSTRY PROFILE
 Banking Reforms in India
 The government of India, under the chairmanship of Sh. M. Narasimham,
an Ex- Governor of RBI, appointed the Narasimham Committee-I (NC-I) in
April 1991.
 The committee examined all the aspects relating to the structural
organization, functions and procedures of financial system and submitted its
report on November 16, 1991.
 The NC-I had proposed wide ranging reforms for improving the financial
viability of the banks, increasing their autonomy from government
directions, restructuring unviable banks, allowing a greater entry of the
private sector in banking,
 liberalizing the capital market, further improving the operational flexibility
and competition among the financial institutions and setting up of proper
supervisory system.
INDUSTRY PROFILE
History of E-banking
 Online banking also known as internet banking is an electronic payment
system that enables customers of a bank or other financial institution to
conduct a range of financial transaction through the financial institution's
website.

 The online banking system will typically connect to or be part of the core
banking system operated by a bank and is in contrast to branch banking
which was the traditional way customers accessed banking services.
 Precursors
 Internet and customer reluctance
COMPANY PROFILE
 E Banking in India
 In India, from the early I990's, electronic banking is gaining in popularity
as an important distribution channel to provide banking services. This
direction is being taken by the batiks to differentiate their services to the
consumers to gain their loyalty. The strategies adopted by the Indian banks
to survive the increased competition are the focus of this study.
 Technology is enabling banks to provide the convenience of anytime-
anywhere-banking. Banks are now reengineering the way in which their
services can be reached to their customers by bringing in flexibility in their
"distribution channels". The earlier brick-and-monar branch is no longer
sufficient; technology is now taking banks to the homes or offices, 24
hours a day, 365 days a year through ATMs, phone banking and PC
banking. The financial supply chain is undergoing a fundamental strategic
change.
COMPANY PROFILE
TECHNOLOGY USED IN E-BANKING
 The Electronic Fund Transfer (EFT)

 Automated Teller Machines

 Debit Cards

 Credit Cards

 Charge Cards

 Smart Cards

 Payment and Settlement Systems and Information Technology

DATA ANALYSIS AND INTERPRETATIONS
 In this chapter the analysis is carried out to known about the respondent’s opinion regarding
various factors and their preference towards online payment systems. This chapter is
classified into two divisions:
 4.1 Simple Percentage Analysis
 4.2 Chi-Square Analysis
 Simple Percentage Analysis:
 Simple Percentage Analysis method is used for comparing certain feature. The collected
data represented in the form of tables and graphs in order to give effective visualization of
comparison made. It can obtain by applying the following formulae
 Simple percentage = Actual Population × 100
 Sample Size
 Chi-Square Analysis:
 Chi- Square analysis is used to test significance difference among dependent and independent
variables in online shopping. The Chi-Square test is one of the simplest and most widely used
non parametric tests in statistical work. The quality Chi-Square describes the magnitude of
discrepancy between theory and observations
 The formula used to test the significant is as follows:
 X2 = (O – E) 2
 E
 Where, O = Observed frequency E = Expected frequency
DATA ANALYSIS AND INTERPRETATIONS
CHART
FINDINGS
 Most of the respondents are male in our survey.
 Most of the respondents are from the age group of above 35.
 Most of the respondents have completed their UG in our survey.
 Most of the respondents are from urban area.
 Most of the respondents are earning below Rs.30,000/month.
 Most of the respondents are using bank account for more than 3 years.
 Maximum of the respondents are using savings account.
 Maximum of the respondents are having awareness towards E-banking.
 Maximum of the respondents said that e-banking system is not that much easy to
handle with.
 Maximum of the respondents said that the service charges charged by E-banking by
the banks are fair.
SUGGESTIONS
 The communication skills of the employees can be developed by providing training
programs to them.
 More employees can be employed in call centers so that the respondents will be
satisfied for the respondents will be satisfied for the quick response given by them in
future period of time.
 The service quality of the banks can be improved in all levels and also different
types of service provided by the banks to their customers.
 To improve productivity per employee, Public Sector Banks have to either improve
deposit and advances rate of the branches or to decrease the number of employee by
introducing VRS scheme again.
 The banks should adopt more aggressive marketing strategies in line with the new
private sector banks to add to the business volumes both in terms of deposits as well
as advances.
CONCLUSION
 Indian banking system broadly consists of “non–schedules banks” and
scheduled banks”. Further, Scheduled banks consist of “scheduled
commercial banks: and “scheduled cooperative banks”. The main
objective of the study is to trace the developments and the deployment of
the technology in banking sector and to study the level of satisfaction of
customers towards various technology used in SBI banking.

 For this purpose a sample of 300 was collected from the respondents and
the respondents are those who use banking services in Coimbatore were
percentage analysis, rank correlation chi square, factor analysis and
oneway Anova were used as tools to analyse the data. The conclusion is
that the overall the customers are satisfied with the service provided by
the banks.
BIBLIOGRAPHY

 References
 Vijay Kumbhar Service quality perception and customers' satisfaction in
internet banking service: a case study of public and private sector banks
 Dr. Manvi nder Si ngh Pahwa Comparative Analysis of Customer
Satisfaction of ATM Services Provided by Public and Private Sector Banks
in Singapore
 Abdulla M. Alhemoud, (2010) "Banking in Kuwait: a customer satisfaction
case study", Competitiveness Review: An International Business Journal,
Vol. 20 Iss: 4, pp.333 – 342
 Nicolaus Lundahl, Fatima Vegholm, Lars Silver, (2009) "Technical and
functional determinants of customer satisfaction in the bank‐SME
relationship", Managing Service Quality: An International Journal, Vol. 19
Iss: 5, pp.581 – 594
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