E-BANKING SERVICES- CUSTOMER AWARENESS AND PREFERENCE-

A STUDY OF SYNDICATE BANK

(With a Special Reference to Uttara-Kannada District)
Abstract

Technological advancement has made an outstanding transformation in the modern

banking sector. IT( Information Technology) played a pivotal role and remarkable changes in
the Banking industry especially in private sector and foreign banks.(Uppal R.K. (2011). The
present study meticulously attempts to present the assessment of adoption and usage of e-
banking from customers perspective with a special reference to Uttara-Kannada Dist. Uttara-
Kannada Dist is east part of Karnataka and has different classes of people. They have also
technology concerns relating to banking sector. Then,Syndicate bank one of the oldest banks in
India which was established before independence in 1925 in Udupi has always been leading in
adoption of technology. Banking Technology Award is there to its credit for innovative use of
Banking Applications on INFINET.This has been the First Public Sector Bank in adopting the
latest technology. It has even focused on Customer Delight concept. The latest outcome of E-
Business is E-Banking. Due to the advancement of Information and Technology everyday, the
modern banks are rushing towards its adoption to cater to the changing needs of the customers.
The main driving force behind this thrust has been to strengthen their performance by providing
their products and services by exploiting latest technology. The study investigates that there are
considerable advantages for electronic banking in terms of convenience, cost effective tool based
on the survey made on 100 customers in the District. It was also investigated that there is a
significant association between demographic factors of respondents and the level of satisfaction
they obtain from the adoption and usage of E- banking. It was also found that they are also
experiencing some challenges with E- Banking and expect that some conditions the banks must
set to make them satisfied.
(Key words: E-Banking, Conventional, cost-effective, IT, e-products)

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1.Introduction:

Banking Industry is the driving force in the financial sector any economy. After liberlisation and

deregulation, it has received expected impetus. The Globalisation also posed various external

challenges. Due to the dyamism in the expectations of today’s customers,modern banks are

compelled to faster their services with the right mix of technology.This is the question of their

servival.It has forced the entire banking industry to strengthen their performance efficiency.

During the last two decades ,the banking sector has witnessed remarkable

transformation.However it needs to address several issues which will impact on its future

survival. In digital era, the banking sector has witnessed outstanding innovations. This

phenomena needs to continue for the success of the Banking industry. Both use of computer

and telephone is covered in the term E-Banking

2.Statement of the Problem:

Technology has been so fast changing, that it has become troublesome for both the customers

and the banks to choose the best approach. All over the Globe, the banks are restructuring their

business strategies towards new opportunities provided by e-banking technology. The bankes are

impelled to search for innovative way to attract more customers to utilize their services.

Understanding the changing needs of the customers is the challenge for the banking industry.The

most dynamic element of today’s banking is changing customer preferences and demand for new

and innovative products and services at the click of the mouse.’Time’ is the most essential

element. So, today customers are not willing to be restricted to any geographical and time factors

for performing their banking dealings. Customer Satisfaction is very vital for every banking

sector. The major task of today’s banking sector is to recognize the perception of the customers

and structure the strategies to satisfy the customers and to strenghthen the service quality. The

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main thrust behind the present investigation is to examine and understand the effectiveness of

the adoption and utilization of e-banking and also to peep into all those adequacies of

prefering to e-products in the selected Syndicate Bank branches in Uttara Kannada Dist.

3.Objectives of the Study:

 To know the preference of the customers towards E- Banking Services.

 To examine the awareness of the customers about E- Banking Services.

 To assess the awareness of the customers regarding various e-products provided by the

banks.

 To recognize the factors persuading the adoption and usage of e-banking

 To understand the satisfaction level of customers towards e-banking services.

 To learn the specifics regarding the challenges in front of the banking industry

3.Limitaions of the study:

 The inferences can be applied only to two cities namely Yellapur and Ankola of Uttarakannada

Dist and hence it cannot be generalized.

 The data collected relates to only 1month and 15 days (From Jan 15 to 29 feb 2020)

 Some respondents were not willing to respond.

4.Research Methodolgy:

The investigator has selected the sample size of 100 customers who have their bank account in

syndicate banks of Yellapur and Ankola in UttaraKannada District on random basis to examine

the preference of customers towards e- banking services. Both the Primary Data and Secondary

Data have been used. The primary information has been gathered through the use of a

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structured questionnaire and the secondary data have been collected from published and

unpublished Articles, National and international Journals, Ph.D.Thesis, Books, Even News

Papers,Magazines and websites also.

5.Research Methodolgy:

The questionnaire consists of both close -ended and open –ended questions. Concerning to close-

ended questions checklist and Liker scale were included. The analysis of the has been carried

out by using percentage method,frequencies and chi-Square tests. Charts and tables are also

used.

6.Literature Review:

Ogunlowore Akindele John and Oladele Rotimi(2014).They investigated that there is a critical

connection between electronic banking and bank-customers' satisfaction. Because of presentation

of electronic banking money, there is a critical change, by and large, banking services and

Electronic banking has helped to build banks market share.

Chakravarty, (1996).He explored explored that Customers-centred services form a significant

critical part for the banking industry and also the customers benefits should be a identifying

factor.It is neccessar on the part of the banking machinery to reduce the costs, accelerate

effectiveness, enhance benefits leading to consumer satisfaction.

Hess, L R (1999) He investigated on consumer satisfaction and explored that the bank-

customers' overall satisfaction of the customers’ is influenced by the satisfaction of bank officer.

The investigation explores that the previous service involvement of the customer with an

association significantly influences customers's general fulfilment with the establishment.

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Karjaluoto et al. (2002) Explored that 'banking is not confined to any age and geographical

area. customers feel pleasurable only when they have reasonably effortless access to their

records, 24 hours for every day, and seven days a week.

Puja Khatri and Yukti Ahuja (2010) They worked on consumer satisfaction and researched

that consumer satisfaction is particularly affected by service quality given to them. The

investigation discovered that private banks appear to have satisfied their bank-customers superior

to Public sector banks by giving better facilities.

Elavarasi. R. and Surulivel (2014) explored that which commercial bank gives better services

in connection with electronic banking services to customers in Kumbakonam City. The after

effect of their investigation showed that the mean age of E-banking users is 0.795 and 0.205

respectively and the majority of the respondents were men as compared to women.

7.Analysis and Interpretation:

A sound structured questionnaire was designed by considering the problems faced by the

customers in their banking dealings. An analysis as to how the customers respond to the e-

banking technology and what are their appreciations and recommendations all have been

summarized in this part of the study.To study the perception and awareness of customers

regarding e-banking, the data were collected,classified and analysed systematically using tables,

percentages and statistical tools like Chi-Sqaire .The out come after the assessment of the usage

and adoption of e-banking and awareness towards this technolgy by the customers having their

bank account in Syndicate bank concerning to Uttarakannada district has been prsented in the

next part:

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 Awareness Analysis:

A)Accessibility

Sl No Accessability Percentage
1 Access to E- banking 95%
2 Non-Access to e-Banking 05%
The above table reveals that 95% of respondents are having access to e-banking. Only 5

percent don’t have access to e-banking.

B) Know-E-Banking

Sl No Awareness Percentage
1 Know E- banking 98%
2 Don’t Know E-Banking 02%
The above table reveals that 98% of the respondents are aware of e-Banking. But only

2% are not aware of e-Banking. It indiactes that almost all the customers in consideration are

well aware of e-banking.

Perception Analysis based on Demographic factors

For the prsent study the following hypotheses have been designed

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 A) Ho=There is no significant association between gender and e- banking services

H1=There is a significant association between gender and e-banking services

Table :1

Table 1.Gender wise Satisfaction level of Respondents Convenience and Cost effective

SL. Gende No of % Convenience and Cost effective

Highly Neutral
No r Respondents
Satisfied Dissatisfied
satisfied
1 Male 65 65% 25 12 18 10
2 Female 35 45% 5 15 12 3
Total N=100 100% 30 27 30 13
Source Primary Data

Test Caluclated x2 Value d.f Table X2 Value

.
Chi-Sqaure Test 10.59 3 7.815

The above table 1 reveals that out of 100 respondents, Male are 65% and Female are 35%. 30

respondents are highly satisfied and 30 respondents are dissatisfied But the females are less

dissatisfied. Only 13 are neutral. This investigation was done on the satisfaction level of Male

and Female towards the ATM and NET banking functioning . The investigator applied chi-

square test of Karl Pearson on the above and got computed x2 value as 10.59, degree of freedom

is 6 and the table value is 7.815. Since the computed value is greater than assumed value null

hypothesis is rejected. So, there exists a significant association between Gender and usage of E-

Banking.

B) Ho=There is no significant association between Marital Status and e- banking services

H1=There is a significant association between Marital Status and E-banking services

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 Marital Status wise Satisfaction level of Respondents Convenience and Cost effective

SL. Gender No of %
Neutral
No Responde
Highly
nts Satisfied Dissatisfied
satisfied

1 Married 43 43% 15 8 12 8
2 Unmarried 57 57% 25 20 6 6
Total N=100 100% 40 28 18 14
Source Primary Data

Test Caluclated Value d.f. X2 Value

Chi-Sqaure Test 8.128 3 7.815
The above table 2 reveals that out of 100 respondents,43 are married and 57 are unmarried. 40

respondents are highly satisfied and of them 25 are unmarried.Ony 18 are dissatisfied. But the

females are less dissatisfied. Only 14 are neutral. This investigation was done on the satisfaction

level of Marital status and perception towards the ATM and NET banking functioning . The

investigator applied chi-square test of Karl Pearson on the above and got computed X2 value as

8.128, degree of freedom is 6 and the table value is 7.815. Since the computed value is greater

than assumed value null hypothesis is rejected. So, there exists a significant association between

Marital status and usage of E-Banking.

C) Ho=There is no significant association between Age and e- banking services

H1=There is a significant association between Age and E-banking services

Age- wise Satisfaction level of Respondents for Convenience and Cost effective

SL. Age No of %

Highly Neutral
No Respondents
Satisfied Dissatisfied
satisfied
1 Below-25 24 24% 12 9 3 0

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 2 25-35 43 43% 32 8 3 0
35-45 18 18% 8 3 4 3
Above 45 15 15% 7 4 2 2
Total N=100 100% 59 24 12 5

Test Caluclated x2 Value d.f. Table X2 Value

Chi-Sqaure Test 18.719 9 16.919

The above table 3 reveals that out of 100 respondents,24 are in the age range of below-25 and

there 43 in the age range of 25-35. The table reveals that 59 respondents are highly satisfied and

only 12 are dissatisfied. Only 06 are dissatisfied below the age of 35. That indicates that the

younger genaration is fully satisfied with the e-banking. This investigation was done on the

satisfaction level age-wise towards e-baking. The investigator applied chi-square test of Karl

Pearson on the above and got computed X2 value as 18.719, degree of freedom is 9 and the

table value is 16.919. Since the computed value is greater than assumed value null hypothesis is

rejected. So, there exists a significant association between age and usage of E-Banking.

A) Ho=There is no significant association between Education and e- banking services

H1=There is a significant association between Education and E-banking services

Education- wise Satisfaction level of Respondents Convenience and Cost effective

SL. Education No of % Convenience and Cost-effective

Highly Neutral
No Respondents
Satisfied Dissatisfied
satisfied
1 Up to SSLC 16 16% 4 3 6 3
2 Under 38 38% 25 8 5 0

graduates
Post-Graduate 36 36% 20 9 6 1
Professional 10 10% 5 1 3 1

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 Total N=100 100% 54 21 20 5

Test Caluclated x2 Value d.f. Table X2 Value

Chi-Sqaure Test 17.250 9 16.919

The above table 4 reveals that out of 100 respondents,54 respondents are highly satisfied and

Undergraduates and Postgraduates are more in number. Only 5 are neutral. The table also reveals

that 21 are satisfied and 20 are dissatisfied. This investigation was done on the satisfaction level

educational-wise towards e-baking. The investigator applied chi-square test of Karl Pearson on

the above and got computed X2 value as 17.250, degree of freedom is 9 and the table value is

16.919. Since the computed value is greater than assumed value null hypothesis is rejected. So,

there exists a significant association between age and usage of E-Banking.

A) Ho=There is no significant association between Occupation and e- banking services

H1=There is a significant association between Occupation and E-banking services

Occupation- wise Satisfaction level of Respondents for Convenience and Cost effective

SL. Occupaton No of % Convenience and Cost-effective

Highly Neutral
No Respondents
Satisfied Dissatisfied
satisfied
1 Employees 35 35% 15 15 2 3

(Salaried)
2 Businessmen 41 41% 30 10 1 0
Professionals 15 15% 12 2 1 0
Housewives 9 9% 5 1 2 1
Total N=100 100% 62 28 6 4

Test Caluclated x2 Value d.f. Table X2 Value

Chi-Sqaure Test 18.793 9 16.919

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The above table 5 reveals that out of 100 respondents,62 respondents are highly satisfied and among them

businessmen are ranking first.(30). Only 06 are dissatisfied and 04 are neutral. This investigation was

done on the satisfaction level Occupation-wise towards e-baking. The investigator applied chi-square test

of Karl Pearson on the above and got computed X2 value as 18.793, degree of freedom is 9 and the table

value is 16.919. Since the computed value is greater than assumed value null hypothesis is rejected. So,

there exists a significant association between occupation and usage of E-Banking.

D) Ho=There is no significant association between Annual Income and e- banking services

H1=There is a significant association between Annual Income and E-banking services

Income- wise Satisfaction level of Respondents for Convenience and Cost effective

SL. Occupaton No of % Covenience and Cost e-ffective

Neutral
No Respondent
Highly
s Satisfied Dissatisfied
satisfied

1 Less than Rs 3 Lakhs 26 26% 15 08 01 02

2 Rs 3 Lakhs to 5 Lakhs 47 47% 40 06 01 00
Rs 5Lakhs to 10Lakhs 16 16% 07 08 01 00
Above 10 Lakhs 11 11% 06 03 02 00
Total N=100 100% 68 25 05 02

Test Caluclated x2 Value d.f. Table X2 Value

Chi-Sqaure Test 21.698 9 16.919

The above table 6 reveals that out of 100 respondents,68 respondents are highly satisfied and among them

respondents having annual income ranging from Rs 300000 to 500000 are ranking first.(40). Only 05 are

dissatisfied and 02 are neutral. This investigation was done on the satisfaction level Income-wise towards

e-banking. The investigator applied chi-square test of Karl Pearson on the above and got computed X2

value as 21.698, degree of freedom is 9 and the table value is 16.919. Since the computed value is greater

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than assumed value null hypothesis is rejected. So, there exists a significant association between Income

and usage of E-Banking.

7.Summary of Findings:

1. 37 % of the respondents belonging to male category are highly satisfied.

2. 45% of the respondents belonging to Unmarried category are highly satisfied

3. 40% of the respondents covered under the age group of 25 to 35 years are highly satisfied

4. 33% of the respondents belonging to Under-Graduate category are highly satisfied

5. 40% of the respondents belonging to Business are highly satisfied

6. 46% of the respondents belonging to Annual Income group Rs 300000 to 500000

7. Out of 100 respondents, 15% of the respondents are dissatisfied who are not aware of e-

banking and the technology.

8. The Chi-Square test reveals that there is a significant association between Gender,Marital

Status,Age, Education and Income Group of the respondents.

7.Conclusions:

The vitality in the expectations of the customers has impelled the entire banking

mechanism to adopt the latest technology for their survial.Today the customers are not satisfied

with care and consideration only but they expect more concern and promise from banking

industry.Threrefore the banking industry has to concentrate on the changing needs of the

customers.The success of e-banking not depends only on the adoption of technology but also on

approach, assurance and involvement in operaration at all levels of the banking system.

Customers expect that some conditions the banks must set to make them satisfied.

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