Synopsis On E-Banking: Executive Summary
Synopsis on E-Banking
Executive Summary It is an umbrella term for the process by which a customer may perform banking transactions electronically without visiting a brick-and-mortar institution. The following terms all refer to one form or another of electronic banking: personal computer (PC) banking, Internet banking, virtual banking, online banking, home banking, remote electronic banking, and phone banking. PC banking and Internet or online banking are the most frequently used designations. It should be noted, however, that the terms used to describe the various types of electronic banking are often used interchangeably. Introduction to E-Banking E-banking is defined as the automated delivery of new and traditional banking products and services directly to customers through electronic, interactive communication channels. E-banking includes the systems that enable financial institution customers, individuals or businesses, to access accounts, transact business, or obtain information on financial products and services through a public or private network, including the Internet. Customers access e-banking services using an intelligent electronic device, such as a personal computer (PC), personal digital assistant (PDA), automated teller machine (ATM), kiosk, or Touch Tone telephone. While the risks and controls are similar for the various e-banking access channels, this booklet focuses specifically on Internet-based services due to the Internet's widely accessible public network. Accordingly, this booklet begins with a discussion of the two primary types of Internet websites: informational and transactional. PC banking is a form of online banking that enables customers to execute bank transactions from a PC via a modem. In most PC banking ventures, the bank offers the customer a proprietary financial software program that allows the customer to perform financial transactions from his or her home computer. The customer then dials into the bank with his or her modem, downloads data, and runs the programs that are resident on the customer's computer. Currently, many banks offer PC banking systems that allow customers to obtain account balances and credit card statements, pay bills, and transfer funds between accounts. Internet banking, sometimes called online banking, is an outgrowth of PC banking. Internet banking uses the Internet as the delivery channel by which to conduct banking activity, for example, transferring funds, paying bills, viewing checking and savings account balances, paying mortgages, and purchasing financial instruments and certificates of deposit. An 0Internet banking customer accesses his or her accounts from 474725browser- software that runs Internet banking programs resident on the bank's World Wide Web server, not on the user's PC. Net Banker defines a " true Internet bank" as one that provides account balances and some transactional capabilities to retail customers over the World Wide Web. Internet banks are also known as virtual, cyber, net, interactive, or web banks.
To date, more banks have established an advertising presence on the Internet- primarily in the form of informational or interactive web sites-than have created transactional web sites. However, a number of Banks that do not yet offer transactional Internet banking services have indicated on their web sites that they will offer such banking activities in the future. Internet banks generally have lower operational and transactional costs than do traditional brick-and-mortar banks; they are often able to offer low-cost checking and high-yield Certificates of deposit. Internet banking is not limited to a physical site; some Internet banks exist without physical branches, for example, Tele bank (Arlington, Virginia) and Bank net (UK). Further, in some cases, web banks are not restricted to conducting transactions within national borders and have the ability to make transactions involving large amounts of assets instantaneously. According to industry analysts, electronic banking provides a variety of attractive possibilities for remote account access, including: Availability of inquiry and transaction services around the clock; worldwide connectivity; Easy access to transaction data, both recent and historical; and "Direct customer control of international movement of funds without intermediation of financial institutions in customer's jurisdiction. Need, objective, scope & methodology Need of the study To determining growth direction of online banking service. Promoting E-banking services in banking industry. Customer perception will be taken into consideration about the internet banking. Objectives To study about the factors that affects the customer perception towards e Banking of bank To know about the current and future prospects of E-Banking to the customers To find out the major problems faced by the customers while using e -banking Services. Hypothesis Ease of Use Ease of use does not influence the use of E Banking services. Ease of use does influence the use of E Banking services. Direct Access Direct Access does not influence the use of E Banking services. Direct Access does influence the use of E Banking services. Friends/Relatives Friends/Relatives do not influence the use of E Banking services. Friends/Relatives do influence the use of E Banking services. Scope of the Study . All the classes of the customers were taken into consideration . This study was covered E-Banking service sector. This is a realistic source directly collected from the customers of Bank. Research Methodology Research Methodology is defined as human activity based on intellectual
application in the investigation of matter. The primary purpose for applied research is discovering, interpreting, and the development of methods and systems for the advancement of human knowledge on a wide variety of scientific matters of our world and the universe. The term research is also used to describe an entire collection of information about a particular subject. Methodology Methodology is the method followed while conducting the study on a particular project. Through this methodology a systematic study is conducted on the basis of which the basis of a report is produced. It is a written game plan for conducting Research. Research methodology has many dimensions. It includes not only the research methods but also considers the logic behind the methods used in the context of the study and explains why only a particular method or technique has been used. It also helps to understand the assumptions underlying various techniques and by which they can decide that certain techniques will be applicable to certain problems and other will not. Therefore in order to solve a research problem, it is necessary to design a research methodology for the problem as the some may differ from problem to problem. The methodology adopted for studying the objectives was surveying the in-house customers of these two banks. Nature The methodology adopted to achieve the project objective involved descriptive research method. The i n f o rma t i o n r e q u i r e d f o r f u l f i l l i n g t h e o b j e c t i v e o f s t u d y w a s c o l l e c t e d f r om v a r i o u s p r ima r y a n d secondary sources. Type of Research This study is DESCRIPTIVE in nature. It helps in breaking vague problem into smaller and precise problem and emphasizes on discovering of new ideas and insights. Research Design Research design constitutes the blue print for the collection, measurement and analysis of data. The present study seeks to identify the extent of preferences of E Banking over traditional banking among service class. The research design is descriptive in nature. For the selection of the sample, convenient sampling method was adopted and an attempt has been made to include all the age groups and gender of every class. Research Instrument The instrument used for gathering data was questionnaire. To get further insight in to the research problem, interview regarding their buying practices too was made. This was done to crosscheck the authenticity of the data provided. To supplement the primary data and to facilitate the process of drawing inference, secondary data was collected from published sources like magazines, journals, newspapers etc. Data Collection Keeping in view the nature of requirements of the study to collect all the relevant information regarding the extent of awareness of the customers using Ebanking
facilities offered by bank, direct personal interview method with structured questionnaire was adopted for the collection of primary data. Secondary data has been collected through the various internet sites by surfing on Internet and from the records available with the bank. Sources of data: Following are the methods of sources of data: Secondary data: Articles on E-Banking taken from journals, magazines published from time to Time. Through internet. Primary Data: Questionnaire was used to collect primary data from respondents. The questionnaire was structured type and contained questions relating to different dimensions of e-banking preferences among service class such as level of usage, factors influencing the usage of e-banking services, benefits accruing to the users of e-banking services, problems encountered. An attempt was also made to elicit reasons for its non-usage. The questions included in the questionnaire were open-ended, dichotomous and offering multiple choices. Sample Design and Size In this research project Descriptive research design is used. Judgment and Convenience sampling method will be used to get the information about online banking. This method is used because we are interested in e x p l o r i n g g e n d e r , a g e , o r o c c u p a t i o n d i s p a r i t i e s i n t e rms o f o n l i n e b a n k i n g i n t h e p o p u l a t i o n . F o r conducting this research, a structured questionnaire is prepared and sample of 150 customers is taken from ICICI and HDFC bank. Sampling Size It indicates the numbers of people to be surveyed. Though large samples give more reliable results than small samples but due to constraint of time and money, the sample size was restricted to 150 respondents. The respondents belong to different income group and profession. Sampling Unit It defines the target population that will be sampled i.e. it answers who is to be surveyed. In this study, the sampling unit is the people of ICICI and HDFC, SBI & PNB. Tools and techniques of analysis: The data so collected will be analyzed through the application of statistical techniques, such as bar graphs and pie charts. Data formulation: SPSS Data Analysis tools: CHI SQUARE TEST Questionnaire for E Banking? 1 Do you use any e-banking services? A- Yes (91) B- No (64) 2 How often do you use e-banking per week? A- Never (5)
B- 1 time (47) C- 2-3 times (17) D- 4-6 times (11) E- Every day (10) 3 Do you use any of the follows when you use e-banking?(choose the most Frequently used one) A. Security deivce (47) B. SMS text password (2) C. E-certificate (6) D. never use these (36) 5 How often do you use the item you chose per week? A- Never (31) B- 1 time (35) C- 2-3 times (10) D- 4-6 times (5) E- Every day (2) 6 Please rate, how convenient do you think of using this e-banking item? A- 1 (3) B- 2 (8) C- 3 (27) D- 4 (30) E- 5 (11) 7 Please rate, how reliable do you think of using this e-banking item? A- 1 (3) B- 2 (6) C- 3 (24) D- 4 (34) E- 5 (13) 8 Which of the follows do you prefer most to use for authentication (verification)? A. Security deivce (84) B. SMS text password (receive the one-time used password from the bank via SMS) (33) C. E-certificate (38) 10 Age range A- 15 - 18 (6) B- 19 - 23 (144) C- 24 - 29 (4) D- 30 - 35 (0) E- 36 - 41 (1) F- 42 - 47 (0) G- 48 or above (0) 11 Gender A- Male (83) B- Female (72) Bibliography a) http://www.scribd.com/doc/49627165/consumer-behaviour-towards-E-Banking-