Assignment ON Minimization of Gaps in The Marketing of E-Banking in India

ASSIGNMENT
ON
MINIMIZATION OF GAPS
IN THE MARKETING OF
E-BANKING IN INDIA
Submitted to:
Submitted by:
Dr Subhajit Bhattacharya
No. 51 to 60
Roll
INTERNET BANKING
INTRODUCTION
Internet banking is an electronic conglomerate system
that enables customers of a bank or other financial
institution to conduct a range of financial transactions
through the financial institutions 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.
E-BANKING IN INDIA
For growth and development and to promote e-banking
in India the Indian government and RBI have been
taken several initiatives
The GOI enacted the IT Act,2000 with effect from
October 17, 2000 which provided legal recognition
to electronic transactions and other means of
electronic commerce.
The Reserve Bank monitors and reviews the legal
requirements of e-banking on a continuous basis to
ensure that challenges related to e-banking may
not pose any threat to financial stability of the
nation.
RBI is striving to make the payment systems more
secure and efficient.
National Payments Corporation of India(NPCI) was

permitted by the RBI to enhance the number of
mobile banking services and widens the IMPS
channels like ATMs,internet, mobile etc.
Questionnaire As Given to the Customers
QUESTIONARIES
GAP 1 UNDERSTANDING GAP

The UNDERSTANDING Gap, is the difference between customer expectations of service
and company understanding of those expectations. A primary cause in many firms for not
meeting customers expectations is that the firm lacks accurate understanding of exactly what
those expectations are. Many reasons exist for managers not being aware of what customers
expect: They may not interact directly with customers, they may be unwilling to ask about
expectations, or they may be unprepared to address them. Closing the Listening Gap requires
that management or empowered employees acquire accurate information about customers
expectations. Customer expectations must be assessed accurately before new services are
developed, and they must be tracked after the services are introduced
Security Issues While making online payments or transferring money from one account to
another, the online bankers are always concerned about the hackers and anti-social elements.
Hacking enables the unethical hackers to penetrate the accounts of online bankers, and spend
their money. Availability of confidential information which is just secured by a user name and
password makes it vulnerable to such threats. Most of the banks try to make their sites
secured by implementing latest network security software. However, there have been plenty
of cases in which web surfers were accidentally exposed to the financial details of online
bankers
Risks e-banking poses some different risks as compared to the traditional banking. These
risks are more pronounced in the case of Internet banking. Firstly, the risk of technological
changes has to be carefully watched. This is essential to update technologies and remain cost
effective and customer friendly. The technologies are generally obtained from outside parties.
The banks have to be careful about risks involved in such agreements. The security is an
important area of risk. In fact it will be very crucial for the expansion of Net Banking.
Technical difficulties Sometimes online banking Websites go down. When this happens,
there's no backup branch that you can go to -- and the phone lines will be clogged. To protect
yourself, always keep a local bank or credit union account open with some emergency cash
so you won't be penniless while they fix the problem.
Financial fraud
How to minimize this gap?
Financial literacy is very important and this is something that banks are neglecting for
a very long time. Financial literacy not only mean money management but it also
includes the new technological reforms in managing the money. E-banking services
like online fund transfer, recharge are all come under this head.
Banks should be focused on the create awareness towards its customer so that the
misconception towards e-banking services and be resolved.
GAP 2 TRANSLATION GAP

Gap between consumer expectation and management perception: This
gap arises when the management or service provider does not
correctly perceive what the customer wants or needs. In a customerorientated business, it is important to have a clear understanding of
the consumers need for service. To close the gap between the
consumers expectations for service and managements perception of
service delivery will require comprehensive market research.
Customers generally have a tendency to compare the service they
'experience' with the service they 'expect' to receive; thus, when the
experience does not match the expectation, a gap arises.
Banking Companies nowadays provide highly secured website and
mobile application for proper facilitation of online transaction but they
are not able to convey this message to its customers and due to which
customer still feel insecure using e-banking and feared that their data
can be stolen.
When someone apply for e-banking, the bank give them UserID and
password but they doesnt provide a detailed information about how
they can registered for e-banking service and how they can make
transaction, this make customer very conservative in using e-banking
service.
How to minimize the gap?
Banks should create advisements which convey the message of
security to its customer.
Banks should tell their customer about the technological reforms
and motivate their customer to use e-banking
Gap 3 DELIVERY GAP

This gap deals with the gap between the service specification and service delivery in the case
of e-banking. This happens to the gap persisting between the service personnel and service
delivery. Due to lack of proper training and skills of the service providers this gap generally
arises.
In Bank we generally found the staff who is responsible for e-banking service doesnt know
all the know-how about the website. This is because of poor training. In banking job there is
process of switching of job of the staff from one department to another department due to
which staffs
Another reason of this gap is that banks dont provide special training programmes for its
employees about the technical know-how about the e-banking services. Without a proper
training the bank staffs is not able to deliver the service the way he/she supposed to.
Unwillingness to help is another reason of this gap. Many times we found a bank staff doesnt
want to help the customer because of his extra burden of work. Because of this extra
paperwork or workload he is not able to give time to the queries of its customers.
Generally the website of the bank is maintained and handled by the Head Quarter and they
change the specification of the website time to time but training related to that change take
time to improvise this leads to the delivery gap as they are not able to help their customer
when they face difficulty at the time using banks website.
A specialized training program should be adopted by the banks so that the employees
of the bank can get an in-depth knowledge about the technical know-how about the
website.
Extra paper work should not be given to the staff who is dealing with the queries of
the customer.
GAP 4 Communication Gap

This gap arises due to difference between service delivery and external communication.
Consumer expectations are highly influenced by statements made by company
representatives and advertisements. The gap arises when these assumed expectations are not
fulfilled at the time of delivery of the service.
Internet banking has improved a lot and now provides best security facility to its customer for
their safety but due to unawareness regarding the same, Negative word of mouth and past
experience of customer, communication gaps occur.
With times banks motivate customer to use their e-banking services by providing various
benefits like reward points etc. but when customer logged into their accounts they find lots of
option and various complication, thus bank is not able to maintain a realistic promise to its
customer.
Adding to that the customer care number provide slow processing of the problems of the
customers in some cases customer gets no response from the customer care number and they
had to go to the branch for problem solving.
Realistic Promise should be made by the banks.

Consumer education towards how to properly use of website should be provided.
Timely information and data flow so that queries of customer get resolved quickly
GAP 5 Discrepancy between customer expectations and their

perceptions of the service delivered
In this case, customer expectations are influenced by the extent of personal needs, word of
mouth recommendation and past service experiences.
Word of mouth is very important in e banking. For example, people take recommendation
from their friends about their experience in e-banking and according to that take decisions.
Generally there is negative word of mouth of e banking because of the past scams and
financial fraud experienced by customers.
Due to lack of knowledge of modern security up-gradation people still doesnt use e-banking.
Also a customer is able to tell about the quality of service when he/she has experienced it
earlier. If due to any instances the experience is bad, then the customer is not able to trust the
e-banking again and start spreading the negative word of mouth in his/her surrounding. For
example, if a customer had a problem in a financial transaction process then he might never
use it again and spread a negative word of mouth.
GAP 6 Between customer expectations and employees

perceptions
This gap arises due to differences in the understanding of customer expectations by front-line
service providers.
CONCLUSION

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ASSIGNMENT

National Payments Corporation of India(NPCI) was

Questionnaire As Given to the Customers

GAP 1 UNDERSTANDING GAP

How to minimize this gap?

GAP 2 TRANSLATION GAP

Gap 3 DELIVERY GAP

How to minimize this gap?

GAP 4 Communication Gap

Realistic Promise should be made by the banks.

GAP 5 Discrepancy between customer expectations and their

GAP 6 Between customer expectations and employees

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