“The Impact of E-Banking On Customer Satisfaction”

Project Report

On

“The Impact of E-Banking on Customer Satisfaction”

Bachelors of commerce

In

Banking and Insurance

Submitted by:

Atharv Prakash Koyande

TYBBI A019

V.G. Vaze College of Arts, Science and commerce.

 “The Impact of E-Banking On Customer Satisfaction”

Abstract

The paper fills significant gaps in knowledge about the consumer’s perspective
of Internet banking, trace its present growth and project the likely scenario. The
paper presents the data, drawn from a survey of Internet banking consumers and
the services providers (banks) that offer Internet banking and develops a
functional model for maximizing value to the consumers, which the banks may
choose to adopt Internet banking strategically. The paper identifies the
weaknesses of conventional banking and explores the consumer awareness, use
patterns, satisfaction and preferences for Internet banking vis-à-vis conventional
form of banking and also highlights the factors that may affect the bank’s
strategy to adopt Internet banking.

It also addresses the regulatory and supervisory concerns of Internet banking.

Internet banking has attracted the attention of banks, securities trading firms,
brokerage houses, insurance companies, regulators and lawmakers in
developing nations since the late 1990s. With the rapid and significant growth in
electronic commerce, it is obvious that electronic (Internet) banking and
payments are likely to advance. Researches show that impact of Internet banking
on cost savings, revenue growth and increased customer satisfaction on Industry
 “The Impact of E-Banking On Customer Satisfaction”

is tremendous and can be a potential tool for building a sound strategy. However,
it has raised many public policy issues before the banking regulators and
government agencies. Interestingly, reliable and systematic information on the
scope of Internet banking in Indian context is still not sufficient, particularly what
it means to the consumers and the bankers.
 “The Impact of E-Banking On Customer Satisfaction”

Chapter 1

Introduction:

Internet banking facilities enable financial institution and customers to access

their accounts, transactions and getting information on financial products &
services (Ingle and Pardeshi, 2012). Now a day’s most of the commercial banks
have launched various services through internet banking including latest service
like opening online saving accounts and demand for these services is increasing
rapidly. The concept of e-banking is fairly a new concept in India as compared to
its developed counterparts. So the paper deals with defining the concept of
Internet banking. Now with the changing times the traditional approach of
banking is being changed and banks are trying to match up with the recent
advancement in the field of technology. Revolutionary developments in
information and communication technology (ICT) in the past 20 years have
changed the way how banks deal with their bank customers. With the rapid
development of technology, internet plays a significant role in changing the
banking scenario. It provides an online platform for various banking transactions
through which it offers various services like online payment, online fund transfer,
online stock trading and online shopping etc.

The use of internet as a delivery channel for banking services is increasing

widely in banking sector.
This paper is to examine the consumer behavior with respect to Internet banking
vis-à-vis conventional banking, and to explore the possibility of blending these
 “The Impact of E-Banking On Customer Satisfaction”

banking systems. The paper also suggests strategies to banks to maximize the
value of services to consumers. The primary data used in the research consists
of survey conducted on a sample of 2000 consumers arrived at using relative
precision technique (Taylor, 1997). The survey includes in major cities of India,
instrument being questionnaires filled up from the consumers and personal
interaction, discussions with the front line executives of online banking divisions
of the major players, particularly their marketing and customer servicing
departments and the banking experts, personal visits at Automated Teller
Machine (ATMs), Point of Sale (POS) counters of major banks. The major
assumptions in this research are – (a) online banking is synonymous to Internet
banking (b) the behavior of the surveyed population viz. consumers and bankers
confirms to a normal distribution. The study limits itself to major cities given the
fact that Internet Banking has no geographical boundaries. The banks have
become an essential component of most of the economies as banking services
are described as “engines for economic growth” or act as “conduits towards
promoting economic growth” (Prema, 2011). In recent years the world economy
has gone through a new phenomenon which is considered as one the most
important changes since the industrial revolution, i.e. the birth of “Internet-based
Economy” (Singh, 2013). Considering the benefits of using internet the banks
have started to invest in this newly created market. At the initial level, banks
mainly focus on developing the commercial web- sites, with the purpose of
promoting their products and services using the internet (Karimzadeh and Alam,
2012). Gradually, it was realized by banks that the Internet can be an effective
distribution channel too.

 Definitions:

 E-Banking
 “The Impact of E-Banking On Customer Satisfaction”

E-banking is a blanket term used to indicate a process through which a

customer is allowed to carry out, personal or commercial banking
transactions using electronic and telecommunication network.
It is a product offered by banks which facilitates online banking, with the
help of which the customer can have access to the bank account in just
one click.

 Concept Of Customer Satisfaction:

Internet banking is an electronic payment system that enables customers of a

financial institution to conduct financial transactions on a website operated by
the institution, such as a retail bank, virtual bank, credit union or building society.
Online banking is also referred as Internet banking, e-banking, virtual banking
and by some other terms. This new channel has added a new dimension to the
concept of customer satisfaction and how it can be affected in a positive way. All
organizations exist and strive to become an integral part of the lives of their
customers and therefore always strive harder to keep satisfying their customers
through better channels of delivering their offerings

 History of E- Banking

Till 1990s banks are adopted traditional method of banking over branch
banking. After financial reforms, the banking business also viewed the
innovative movement of banking services. The Indian banking sector has
accepted computerisation since 1993, more out of sheer compulsion and
necessity to cope up increasing overload and incompatibility of the manual
 “The Impact of E-Banking On Customer Satisfaction”

system to sustain further growth. In 1993, the employees’ association of

the Indian banks (IBA) contracted an agreement with the bank management
about the introduction of computerised application in banks. This
agreement was the major breakthrough in the introduction of computerised
applications and the development of communication networks in banks.
The first initiative in the area of bank computerisation, however, stemmed
out of the landmark reports of the two committees headed by former RBI
governor, Dr. C Rangarajan. Both the reports had strongly recommended
computerisation of banking operations at various levels and suggested
appropriate architecture. In the year 1994 Reserve bank of India created a
committee under the head of W S Saraf, the committee strongly
recommended the use of Electronic fund transfer (EFT), the introduction of
electronic clearing services and extension of Magnetic Ink Character
Recognition (MICR) beyond metropolitan cities and branches. In 1996
Industrial Credit and Investment Corporation of India was the first to use
Electronic banking in India by introducing online banking services in
branches. Its initiatives were followed by HDFC Bank, IndusInd Bank and
Citibank, who started provided online banking facilities in 1999. Reserve
bank of India and government of India have been taken various initiatives
for the expansion and smooth functioning of Electronic banking in India.
The government of India passed the IT Act, 2000 which delivers a legal
acknowledgement to e-transactions and E-commerce.

 Evolution of E- Banking:

 In 1980 to 1990’s - Arrival of debit card and credit card.

 . From 1984 to 1988 – Banks started using computers, MICR cheques
were introduced.
 In 1987 – HSBC is the first bank to introduce the ATM concept in
India.
 In 1990 - ECS payment was introduced in India by the RBI.
 “The Impact of E-Banking On Customer Satisfaction”

 In 1991 – India joined Society for Worldwide Interbank Financial

Telecommunication.
 In 1987- Shared payment network system has been set up.
 In 1999 – A pilot project for S In 1mart cards conducted jointly by
Reserve bank of India, IIT (Mumbai) and IDRBT, Hyderabad.
 In 2000 – Information Technology act was passed,
 In 2002 – mobile banking was started in India by way of SMS
banking.
 In 2003 – Introductions of Special Electronic fund transfer.
 In 2004 – Introduction of Real-time gross settlement.
 In 2005 – overall 11 Percent of branches of Public sector banks have
been brought under Core banking solutions and the introduction of
national electronic funds transfer.
 In 2007 – the payment and settlement system act, 2007 was passed .
 In 2008 – Introduction of Cheque truncation system and operative
guidelines on mobile banking transactions were issued.
 In 2009 – Free cash withdrawal from ATMs.
 In 2010 – Introduction of Immediate payment service.
 In 2016- Bharat bill payment system & Unified Payments Interface is
stated in banks across the country started to upload their interface in
August 2016.
 In 2016 - Bharat Interface for Money (BHIM) is a mobile app
developed by National Payments Corporation of India (NPCI), based
on the Unified Payment Interface (UPI).

 Current Status of E- Banking:

Internet Banking has become an integral part of banking system in India. The
concept of e-banking is of fairly recent origin in India. Till the early 90 ‟ s
 “The Impact of E-Banking On Customer Satisfaction”

traditional model of banking i.e. branch based banking was prevalent, but after
that non-branch banking services were started. The credit of launching internet
banking in India goes to ICICI Bank. Citibank and HDFC Bank followed with
internet banking services in 1999. The Government of India 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 is monitoring and reviewing the legal and other requirements of e-banking
on a continuous basis to ensure that e-banking would develop on sound lines
and e-banking related challenges would not pose a threat to financial stability.
According to report of RBI in jan 2016, there are 196079 ATM and 1337310 point of
sale devices in India.

According to the RBI in its Annual Report 2020-21 stated that the payment systems
recorded a robust growth of 26.2% in terms of volume on top of the expansion of 44.2%
in the previous year. Here some of the major key facts are as follows:

 Private sector banks represent about 67% of the POS terminal market while public
sector banks account for 27%. Payments banks accounted for 5% market share,
and foreign banks represented 1%.

 The total number of cards in circulation stood at 960.25 million as of March 2021.
Out of which, there were 898.20 million debit cards and 62.05 million credit cards,
up by 8% and 7% YOY respectively.

 There were 2.20 billion prepaid payment instruments in the country. Out of which,
189.93 million comprised of prepaid cards and over 2.01 billion comprised of
mobile wallets.

 The number of transactions through mobile wallets in Q1 2021 was 1.13 billion
and the value was INR 411.75 billion. This includes the purchase of goods and
 “The Impact of E-Banking On Customer Satisfaction”

services and fund transfer through wallets. Transactions through wallets are
growing steadily.

 Consumers made 8.32 billion mobile-based payments whereas Net Banking /

Internet browser-based transactions were over 937.60 million. In terms of value,
INR 31.98 trillion was transacted through mobile while INR 131.34 trillion was
transacted through the internet

 Out of total UPI volume, 55% of transactions were P2P (Person-to-Person)

while 45% were P2M (Person-to Merchant). It clocked over 2.73 billion
transactions in volume and breached INR 5 trillion in terms of value.
 AePS transactions (Offers, BHIM Aadhaar Pay) in Q1 2021 recorded a
substantial volume of over 449.45 million transactions, registering about
120% growth over Q1 2020. It processed transactions worth INR 633.38
billion, an increase of 93% over Q1 2010.

 Features of E-Banking:

1. Faster Transaction:

E-banking provides the facility of instant transfer of funds to its customers. It

saves the time of customers as funds get transferred very fast from one account
to another. Whole system of E-banking is automated & works over the internet.
 “The Impact of E-Banking On Customer Satisfaction”

People don’t need to wait in queue to transfer their funds or pay off their bills;
they can easily do it through their device. It saves the time of customers as they
can easily access their account with the help of their device.

2. Lowers Transaction Cost:

E-Banking reduces the cost involved in doing financial transactions.

Electronic transactions are termed as the cheapest medium of doing
transactions. It has reduced the manpower requirements as workload is reduced.

Whole transactions are done online over the internet. It has also reduced the
paperwork in organisations as all transactions are recorded digitally. There is no
need to manually enter & store each record. 

3. Provides 24×7 Service:

This is the most important feature of E-banking. E-Banking provides customers

with all-time access facility to their accounts. Customers can easily access their
account anytime & from anywhere with no limitations. It provides convenience to
the customers as they can perform transactions as per their wish. 

4. Reduces The Chances Of Error:

E-banking has reduced the chance of human error. It has reduced the role of the
human in the whole transaction process. E-banking system works fully
 “The Impact of E-Banking On Customer Satisfaction”

automated over the internet. All transactions are recorded & stored digitally.
There is no need to manually maintain each & every record in books of account.
So, the chances of human error are minimised.

5. Develops Loyalty In Customers:

E-banking helps the banks to develop large number of loyal customers. Through
E-banking service banks are able to serve their customers well. They are able to
provide fast & better service to customers.

Customers are able to get a user-friendly interface from the banking website.
They are able to avail services any time even from their home comfort. This
develops a sense of loyalty among customers when they are happy with the
services of their banks.

6. Removes Geographical Barriers

E-Banking has removed all distance barriers for performing transactions. It

has removed all distance barriers that customers used to face in the
traditional method of performing transactions.

E-banking provides the facility of instant transfer of funds both nationally &
internationally. All systems are connected to each other online which
facilitate easy transfer of funds.

7. Provides Better Productivity

 “The Impact of E-Banking On Customer Satisfaction”

It has an efficient role in increasing the productivity of the businesses. Whole

financial transaction system is supported by automated software systems. These
systems are specially designed for doing transactions of funds.

It reduces the time required for doing transactions & also reduces the workload
of business organisations. Everything is stored digitally & they don’t need to
store anything manually. It increases the overall productivity of the businesses .

8. Reduce Frauds In Transactions

Another important feature of e-banking is that it helps in continuously

monitoring of accounts. You can easily track each & every transaction of
your accounts. You can easily track if any fraud is done by anyone in
financial transactions.

It provides a complete digital footprint of all those who can modify your
banking activities & commit fraud. It thereby adds transparency to your
accounts which reduces the overall chances of fraud.

 Statement Of Problem:

STATEMENT OF PROBLEM Indian banking industry today is one of the worlds

biggest. Indian banking has become an extremely beneficial and vibrant
organization a long way from being a quiet company organization. Indian banking
has lastly awakened to the-discerning Indian 5 consumer's rising requirements.
Consumer satisfaction is now regarded to be the most significant thing in
banking because of the rise in competition. A client always wants anything and
expects that in order to meet those requirements, the bank should reach the level.
 “The Impact of E-Banking On Customer Satisfaction”

India has been one of the greatest IT adopters in the last century. Electronic
banking introduction has innovated and reshaped how banks operated. As
technology is now seen as the primary contribution to the achievement of the
organization’s and their key competences. So the banks, whether national or
international, invest more in offering fresh technologies via e-banking to clients.
E-bank is a significant creation that has altered the banking company. Worldwide
banks are realigning their approaches towards fresh e-banking possibilities. The
latest trend demonstrates that the majority of ' bricks and mortar ' banks move
from a ' product-centered ' model as they grow their fresh e-banking capacities.
The common characteristic of internet banking also involves the importation of
information into private accounting software. Some mobile banking platforms
promote the aggregation of accounts to enable clients to monitor all their records
in one location. E banking is seen as a congratulatory service distribution station
rather than a replacement for brick and mortar banking offices. E-banks have
improved competition between banks, and both national and international banks
are increasingly providing contemporary methods of e-banking.

Like many other banking and finance sectors, the banking industry in India is
facing a quickly evolving market, fresh techniques, economic uncertainty,
strong rivalry, and more challenging clients; and the environment change
has posed immense difficulties. In the current situation, a question is raised
as to whether or not customers are satisfied and what are, in particular, the
elements of retail banking in general e-banking which lead to consumer
fulfillment or disappointment. Understanding of present satisfaction rates
and, in specific, the main satisfaction variables are useful to those in the
sector, enabling them to concentrate and further reinforce important regions
leading to extremely satisfied clients.

 Benefits for Customers:

 “The Impact of E-Banking On Customer Satisfaction”

 Less waiting time: It offers less waiting time and more convenience as
compared to the traditional banking system and significantly lowers the
cost structure than traditional delivery channels (Taft, 2007). It also reduces
the time and place limitation and it provides various benefits to consumers
so that they feel convenient while doing banking activities.

 Ease and Convenience: Internet banking is considered as more efficient in

term of ease of use and access (Jeon, 2014). It allows the consumers to
make transactions on internet provide them comfort of home or office
without going outside. It also enables consumers to keep an eye on their
transactions or account activities from their home, office or elsewhere so
they can feel satisfied and convenient. Even non transactional facilities like
ordering check books online, updating accounts, inquiring about interest
rates of various financial products etc. have become much simpler on the
internet.

 Self-service channel: Internet banking provides their customer a self-

service channel for various banking services they have not to depend on
the bank’s staff and other depending process to avail their services.
Internet banking is one of the most popular self-service banking
technologies. Continued use of self-service technology is positively
affected by buyers’ perceived usefulness (Ding, 2007).

 Save time and money: Now customers don’t have to go to branch to avail
banking services it consist various advantages such as: it will save time,
save fuel, do away from traffic, save the environment in term of reducing
the use of motor vehicles and reduce waiting time.

 Benefits for Bank:

 “The Impact of E-Banking On Customer Satisfaction”

 Increased Profitability: Adoption of internet helps the banks to increase

their profitability. Banks with Internet banking have better operating
efficiency ratios and profitability as compared to banks, which are not
using internet facilities (Wamalwa, 2006). The banks can provide banking
services to the consumers using internet banking at a far lower cost as
compared to the traditional banking.

 Cost effective mechanism: The internet banking provides an opportunity of

self-service channel to the consumers. This help the banks to cut their
workforce up to a particular extent that results in reducing the
administrative costs bear by the banks. Compared to traditional banking
system, internet banking is cost-effective as it reduces the administrative
costs and paperwork needed for the bank transactions [13]. Many studies
show that electronic banking has successfully reduced operating and
administrative cost and fees.

 Reach where there is no branch : Internet banking has expanded their

geographical reach and may increase customer base through deploying
electronic delivery channels at lower cost, some banks are doing in that
way, they are providing banking services exclusively via the Internet in
some areas because they do not have bank branches in these areas.
whereas many financial institutions are using the Internet banking as a
branchless banking to satisfy their existing customers and attract new
customers in the perspective of convenience and cost effectiveness.

 Improve Customer relationship: - Maintaining the relationship with

consumers has become a strategic priority for most of the banks. Using the
internet banking technology and facilities can provide a means for banks to
develop and maintain a good relationship with their customers by offering
 “The Impact of E-Banking On Customer Satisfaction”

easy access to a wide range of products and services [15]. Managing a

good relationship with the customers may help to make customer loyalty,
customer retention and improve cross-selling. Internet banking facilities
have become a useful tool for improving customer satisfaction and
increasing cross-selling opportunities.

 Eco-friendly image: Another important benefit of internet banking is that it

is eco-friendly is nature. Internet banking cuts down the paper usage and
reduces pollution as people do not have to travel physically and also does
not add carbon emissions. Implementing the e-banking facilities in the
banks show the concern of the bank towards the environment [17], this
further, will help the banks to create an eco-friendly image.

 Challenges In E-Banking:

 Security Risk: The problem related to the security has become one of the
major concerns for banks. A large group of customers refuses to opt for e-
banking facilities due to uncertainty and security concerns. According to
the IAMAI Report (2006), 43% of internet users are not using internet
banking in India because of security concerns. So it’s a big challenge for
marketers and makes consumers satisfied regarding their security
concerns, which may further increase the online banking use.

 The Trust Factor: Trust is the biggest hurdle to online banking for most of
the customers. Conventional banking is preferred by the customers
because of lack of trust on the online security. They have a perception that
online transaction is risky due to which frauds can take place. While using
 “The Impact of E-Banking On Customer Satisfaction”

e-banking facilities lot of questions arises in the mind of customers such

as: Did transaction go through? Did I push the transfer button once or
twice? Trust is among the significant factors which influence the
customers ‟  willingness to engage in a transaction with web merchants.

 Customer Awareness: Awareness among consumers about the e-banking

facilities and procedures is still at lower side in Indian scenario. Banks are
not able to disseminate proper information about the use, benefits and
facility of internet banking. Less awareness of new technologies and their
benefits is among one of the most ranked barrier in the development of e-
banking.

 Privacy risk: The risk of disclosing private information & fear of identity
theft is one of the major factors that inhibit the consumers while opting for
internet banking services. Most of the consumers believe that using online
banking services make them vulnerable to identity theft. According to the
study consumers ‟  worry about their privacy and feel that bank may
invade their privacy by utilizing their information for marketing and other
secondary purposes without consent of consumers.

 Strengthening the public support: In developing countries, in the past,

most e-finance initiatives have been the result of joint efforts between the
private and public sectors. If the public sector does not have the necessary
resources to implement the projects it is important that joint efforts
between public and private sectors along with the multilateral agencies like
the World Bank, be developed to enable public support for e-finance
related initiatives.
 “The Impact of E-Banking On Customer Satisfaction”

 Availability of Personnel services: In present times, banks are to provide

several services like social banking with financial possibilities, selective up
gradation, computerization and innovative mechanization, better customer
services, effective managerial culture, internal supervision and control,
adequate profitability, strong organization culture etc. Therefore, banks
must be able to provide complete personnel service to the customers who
come with expectations.

 Implementation of global technology: 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-payments.

 Handling Technology: Developing or acquiring the right technology,

deploying it optimally and then leveraging it to the maximum extent is
essential to achieve and maintain high service and efficiency standards
while remaining cost effective and delivering sustainable return to
shareholders. Early adopters of technology acquire significant competitive
advances Managing technology is therefore, a key challenge for the Indian
banking sector.

 E- Banking Global Perspective:

The advent of Internet has initiated an electronic revolution in the global

banking sector. The dynamic and flexible nature of this communication channel
as well as its ubiquitous reach hashelped in leveraging a variety of banking
activities. New banking intermediaries offering entirelynew types of banking
services have emerged as a result of innovative e-business models The Internet
has emerged as one of the major distribution channels of banking products .
 “The Impact of E-Banking On Customer Satisfaction”

The advent of Internet has initiated an electronic revolution in the global banking
sector. The dynamic and flexible nature of this communication channel as well as
its ubiquitous reach has helped in leveraging a variety of banking activities. New
banking intermediaries offering entirely new types of banking services have
emerged as a result of innovative e-business models. The Internet has emerged
as one of the major distribution channels of banking products and services, for
the banks in US and in the European countries.

Initially, banks promoted their core capabilities i.e., products, services and advice
through Internet. Then, they entered the e-commerce market as
providers/distributors of their own products and services. More recently, due to
advances in Internet security and the advent of relevant protocols, banks have
discovered that they can play their primary role as financial intermediators and
facilitators of complete commercial transactions via electronic networks
especially through the Internet. Some banks have chosen a route of establishing
a direct web presence while others have opted for either being an owner of
financial services centric electronic marketplace or being participants of a non-
financial services centric electronic marketplace. ‘

The advent of Internet has initiated an electronic revolution in the global

banking sector. The dynamic and flexible nature of this communication channel
as well as its ubiquitous reach has helped in leveraging a variety of banking
activities. New banking intermediaries offering entirely new types of banking
services have emerged as a result of innovative e-business models. The Internet
has emerged as one of the major distribution channels of banking products and
services,for the banks in US and in the European countries. Initially, banks
promoted their core capabilities i.e., products, services and advice
through Internet. Then, they entered the e-commerce market as
providers/distributors of their own products and services. More recently,
due to advances in Internet security and the advent of relevant protocols,
banks have discovered that they can play their primary role as financial
intermediators and facilitators of complete commercial transactions via
 “The Impact of E-Banking On Customer Satisfaction”

electronic networks especially through the Internet. Some banks have chosen
a route of establishing a direct web presence while others have opted
for either being an owner of financial services centric electronic
marketplace or being participants of a non-financial services centric
electronic marketplace.

The advent of Internet has initiated an electronic revolution in the global

banking sector. The dynamic and flexible nature of this communication channel
as well as its ubiquitous reach has helped in leveraging a variety of banking
activities. New banking intermediaries offering entirely new types of banking
services have emerged as a result of innovative e-business models. The Internet
has emerged as one of the major distribution channels of banking products and
services, for the banks in US and in the European countries.

The trend towards electronic delivery of banking products and services is

occurring partly as a result of consumer demand and partly because of the
increasing competitive environment in the global banking industry. The Internet
has changed the customers' behaviors who are demanding more customized
products/services at a lower price. Moreover, new competition from pure online
banks has put the profitability of even established brick and mortar banks under
pressure. However, very few banks have been successful in developing effective
strategies for fully exploiting the opportunities offered by the Internet. For
traditional banks to define what niche markets to serve and decide what
products/services to offer there is a need for a clear and concise Internet
commerce strategy.

 Global E-banking industry is covered by the following four

sections:

• E-banking Scenario: It discusses the actual state, prospects, and issues

related to E-banking in Asia with a focus on India, US and Europe. It also deals
with the impact of E-banking on the banking industry structure.

• E-banking Strategies: It reveals the key strategies that banks must

implement to derive maximum value through the online channel. It also brings
guidance for those banks, which are planning to build online businesses.
 “The Impact of E-Banking On Customer Satisfaction”

• E-banking Transactions: It discusses how Internet has radically

transformed banking transactions. The section focuses on cross border
transactions, B2B transactions, electronic bill payment and presentment and
mobile payments. In spite of all the hype, E-banking has been a non-starter in
several countries. • E-banking Trends: It discuses the innovation of new
technology.

 E-Banking Indian Perspective:

 Internet banking, both as a medium of delivery of banking services and as

a strategic tool for business development, has gained wide acceptance
internationally and is fast catching up in India with more and more banks
entering the fray. India can be said to be on the threshold of a major
banking revolution with net banking having already been unveiled.

 26% of Indian customers prefer to access services via their bank’s website,
and the same number would prefer to use a mobile app rather than talk to a
human agent.

 It has been noticed that 30% customers are such who are not aware of the
various facilities which come under the umbrella of E-Banking.

 It has been noticed that well established private banks have got dominance
in providing better e-banking services to Indian customers.

 It has also been observed that despite being educated, there is a class of
bank customers who finds online banking ‘Unsafe.’
 “The Impact of E-Banking On Customer Satisfaction”

 It is recommended that banks should take initiative in organizing some

training campaigns for their customers to boost the use of internet
banking.

 Banks should try to evaluate their performance periodically through the

context of net banking facilities they provide.