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Recent and Future Trends in E – Banking services for Indian Banking sector

Article · December 2019

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 ISSN: 0374-8588
Volume 21 Issue 16s, December 2019

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RECENT AND FUTURE TRENDS IN E –

BANKING SERVICES FOR INDIAN
BANKING SECTOR
* Dr. S. Chandrasekaran, **Sri. M. Narayanan
1
Assistant Professor in Commerce, 2Research Scholar,
Post Graduate & Research Department of Commerce, Vivekananda College,
Tiruvedakam West, Madurai - 625 234.

Abstract
The fast emerging economy is bringing with it rapidly changing technologies, increasing
knowledge intensity in all areas of business and services delivery channels to the customers such
as E – Banking. Today e banking services as smart banking, touch banking, 360 degree banking,
innovative banking, virtual banking and internet banking services available at any time. The
competition has been especially tough for public sector banks, as the newly established private
sector banks and foreign banks are leaders in the adoption of e banking services. The fast
advancing global information infrastructure enable the development of electronic commerce at a
global level. The paper tries to focus for e banking services provided by Indian bnaking
industries. Finally paper concludes the technology changes and future trends in E – banking
services which helps for the development.

Keywords: Usage of E – banking services, customer satisfaction of e _ banking services, current

influences and future trends of indian banking services, etc.,
______________________________________________________________________________
Introduction
The new information technology (IT) is turning into the most important factor in the
future development of banking, influencing banks’ marketing and business strategies. The
driving forces behind the rapid transformation of banks are influential changes in the economic
environment: innovation in information technology, innovations in financial products,
liberalization and consolidation of financial markets, deregulation of financial intermediation etc.
How E – Banking changes the way customers relate with the service provider, etc. the financial
services industry has recently been open to historic transaction. So – called E – developments are
emerging and advancing rapidly in all areas intermediation and financial markets: e- money, e-
banking, e- brokering, and E – insurance, e- exchanges, and even e – supervision.
The digital world that we live in today is that where every civilian has a bright prospect
to transform the lives in many ways that were hard to envision just a couple of years ago. It is the
outcome of several innovations and technology advances. Today, every nation wants to be fully
digitalized that will empower society in a better manner. the aim is to provide seamlessly

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integrated across departments or jurisdictions, making services available in real time from online
& mobile platform, making all citizen entitlements to be available on the cloud, making services
digitally transformed for improving Ease of Doing Business, making financial transactions
electronic & cashless etc.

Need of the study

India’s banks are transforming and empowerment of investing heavily in digital
technologies to catch up with leading global competitors offering wide-ranging and sophisticated
services. At the same time, current innovations and future trends of the Indian banking sector, are
creating a rapidly growing digital citizenry. These digital consumers are increasingly demanding
that India’s banks not only keep pace with global leading practices, but leapfrog far beyond them
by developing new, uniquely Indian products, services and business models.

Review of literature
Charles K. et. al (2016), the researchers are to investigate factors affecting e-
banking usage based on electronic service (e-service) quality, attitude and customer
satisfaction. A conceptual model to investigate factors that influence e-banking usage was
developed based on review of existing literature. The model employed e-services quality
variable, diffusion of innovation construct and self-efficacy to better reflect the users’ views
of e-banking usage. The result reveals that perceived e-service quality has a strong influence
on customer satisfaction and use of e-banking, which means that greater quality of e-
service, has the potential to increase satisfaction and consequently result in to more use of e-
banking.
Johri and Jauhari (2010), also analyse the “importance of technology and issues
emerging from this technology”. According to them, technology is emerging as a key-driver of
business in the financial services industry. The advancement in computing and
telecommunication has revolutionised the financial industry and banking on the net is fast
catching on. As e-commerce gets transformed into m-commerce with the increasing use of
technologies like WAP, banking business is in for a major overhaul.
Chandrasekhar. M and Rajendra Sonur.M (2009), “An analysis of the impact of
information technology on the productivity Indian Banks”. An analysis made from the
government and private sector of 29 banks helped them to conclude that IT has a beneficial
impact on bank productivity. Studies carried out at group levels and individuals provided further
insights into the effect of IT. This great performance for Indian Banks had once remained a
mystery.

Objectives of the study

 To study the present use E-banking services of customers
 To measure present satisfaction level of the customers towards E-banking
services.

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 To analyse the current influence and future trends E-banking services of
customers

Research Methodology
The study is based on the primary data based questionnaire method for 100 respondents.
The secondary data collected from different journals, magazines, sites, research articles,
periodicals, and websites and published data from various issues of RBI and different
Public/Private sector banks. Various studies on this subject available have also been referred in
this study. The focus is to know more about the concept, its application, its effect and the impact
on economy via other parameters. Therefore, qualitative and quantitative both data has been used
to see the impact of digitalisation on the life of India people.

Data Interpretation and Discussion

Usage of E-Banking
E-banking is the main source of making transactions in the modern world. It helps to
make the transaction easy and simple. So here we know about how long customers have been
using the E-banking services. Thus it was considered and analysed.
TABLE 1.1
USAGE OF E-BANKING
S.No Particulars Respondents Percentage
1 Less than 6 months 26 26
2 6 months-1 year 21 21
3 1-2 years 19 19
4 2-5 years 23 23
5 More than 5 years 11 11
Total 100 100
Source: Primary data
The above table shows that 26 percent of the respondents are using E-banking at less
than 6 months, 21 per cent of the respondents are using E-banking at between 6 months-1
year, 19 per cent of the respondents using E-banking at between 1-2 years, 23 per cent of the
respondents using E-banking at between 2-5 years, and 11 per cent of the respondents using
E-banking at more than 5 years.
The study reveals that majority (26 per cent) of the respondents are using E-banking at
less than 6 months.

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FIGURE 1.1
USAGE OF E-BANKING

USAGE OF E-BANKING

30

20

10

0
Less than 6 6 months-1 1-2 years 2-5 years More than
months year 5 years

Series1 Series2

CUSTOMERS SATISFACTION TOWARDS E-BANKING SERVICES

The following table shows the customers satisfaction as regards the E-banking services.
TABLE 1.2
CUSTOMERS SATISFACTION TOWARDS E-BANKING SERVICES
Total Weighted
S.No Factors Rank
value average
1 Security 421 4.21 III
2 Privacy 404 4.04 V
3 24*7 425 4.25 I
4 Easy access 422 4.22 II
5 Convenient 409 4.09 IV
6 Customer service 392 3.92 VII
7 Speed 402 4.02 VI
Multi options for payment
8 374 3.74 VIII
activity
Source: Primary data
From the above table it is evident that respondents have given first rank to ‘24*7’
service provided by the Indian banking sector as they are having highest satisfaction with the
weighted average score of 4.25. The ‘Easy access’ service provided by the Indian banking sector

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was given the second rank as the weighted average score is 4.22. The E- Banking service variable
‘Security’ gets fourth rank as it’s weighted average is 4.21.

FACTORS INFLUENCING CUSTOMERS TO USE E-BANKING IN RELATION TO

GENDER OF THE RESPONDENTS
Customers of different gender group have influenced by different factors to use E-
banking. In order to find out the significant difference between factors influence customers to use
E-banking among different gender group of the customers in Indian banking sector. ‘t’ test is
attempted with the null hypothesis as,
“There is no significant difference in the factors influencing the customers towards
E-banking services in relation to gender of the respondents”.

The result of ‘t’ test is presented in table 1.3.

TABLE 1.3
FACTORS INFLUENCE CUSTOMERS TO USE E-BANKING
Std.
Factors Gen N Mean ‘t’ P value
Devi
M 71 4.6197 .64067
Convenience .006 .995*
F 29 4.6207 .86246
M 71 4.4930 .65188
Time saving .732 .466*
F 29 4.3793 .82001
M 71 4.1268 .89330
Transparency 1.152 .252*
F 29 3.8966 .93903
Security and M 71 4.1268 .90915
1.182 .240*
privacy F 29 3.8966 .81700
Fastest M 71 4.4648 .82516
1.820 .072*
transactions F 29 4.1379 .78940
Quick access and M 71 4.1972 .80391
.885 .378*
services F 29 4.0345 .90565
M 71 4.1408 .89914
24*7 1.202 .232*
F 29 3.8966 .97632
Reasonable M 71 3.3803 1.1385
.728 .468*
service charges F 29 3.5517 .86957
Source: Primary data

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The table 1.3 shows factors influencing customers to use E-banking among different
gender group of customers along with its respective ‘t’ statistics.
As regards the ‘Convenience’ the p value (.995) is more than 0.05 so the null hypothesis
is accepted at 5 per cent significance level, It is concluded that there is no significant difference
in ‘Convenience’ and gender group of customers.
As regards the ‘Time saving’ the p value (.466) is more than 0.05 so the null hypothesis is
accepted at 5 per cent significance level, It is concluded that there is no significant difference
between ‘Time saving’ and gender group of customers.
As regards the ‘Transparency’ the p value (.252) is more than 0.05 so the null hypothesis
is accepted at 5 per cent significance level, It is concluded that there is no significant difference
between ‘Transparency’ and gender group of customers.
As regards the ‘Security and privacy’ the p value (.240) is more than 0.05 so the null
hypothesis is accepted at 5 per cent significance level, It is concluded that there is no significant
difference between ‘Security and privacy’ and gender group of customers.
As regards the ‘Fastest transactions’ the p value (.072) is more than 0.05 so the null
hypothesis is accepted at 5 per cent significance level, It is concluded that there is no significant
difference between ‘Fastest transactions’ and gender group of customers.
As regards the ‘Quick access and services’ the p value (.378) is more than 0.05 so the null
hypothesis is accepted at 5 per cent significance level, It is concluded that there is no significant
difference between ‘Quick access and services’ and gender group of customers.
As regards the ‘24*7’ the p value (.232) is more than 0.05 so the null hypothesis is
accepted at 5 per cent significance level, It is concluded that there is no significant difference
between ‘24*7’ and gender group of customers.
As regards the ‘Reasonable service charges’ the p value (.468) is more than 0.05 then null
hypothesis is accepted at 5 per cent significance level, It is concluded that there is no significant
difference between ‘Reasonable service charges’ and gender group of customers.

Conclusion
Actually the customer had to physically visit the bank office in order to carry out banking
operations. With the introduction of E– banking customers are saving money and time since they
don’t have to physically visit the bank office. Every bank realizes that they must provide some
kind of E– banking to their customers in order to survive. Through E– banking, banks can better
maintain the relationship with customers because with E – banking customers tend to interact
more with provided services.
As electronic banking becomes more prevalent, now-a-days customers are evaluating
banks based more on their “high-touch” factors than on their “high-tech” factors in most of the
developing economy like India. The operationalization of customer satisfaction in banking sector
is somewhat hazy, and it should be operationalized along the same dimensions that constitute
service quality. Therefore, if the banking industry adopts the above mentioned recommendations
made by the researcher, it will certainly increase customer satisfaction with E-banking services.

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The digitalization of Indian banking systems faces a lot of challenges and stands for
developing. The greatest emphasis has been placed by the banking for the improvement of
electronic services, fund transaction facilities, and other services in E-banking. The paper
concludes that many changes is taking place with technology and helps to show trends in e-
banking. This creates drastic changes in banking industry. Thus, even though IT management is
a challenging task in future banking.

References
1. Ajay Bimbhat, “Technology-led customer service: The secret of success”. IT in Banks:
Strategic Issues, 1st edition, Hyderabad: ICFAI University press, 2010.
2. Gupta.S.C. “Executive summary – IBA report” Modern banking technology, 1stedition,
New Delhi: Northern book centre, 2007.
3. https://www.pwc.in/assets/pdfs/publications/2015/logging-into-digital-banking.pdf
4. https://idrbt.ac.in/assets/publications/Best%20Practices/Digital%20Banking%20Framewo
rk_Nov2016.pdf
5. http://www.ijaert.org/wp-content/uploads/2017/10/131446.pdf
6. https://www.pwc.in/assets/pdfs/publications/2017/digital-india-targeting-inclusive-
growth.pdf
7. https://www.ibm.com/downloads/cas/JJL8LL82

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