an empirical analysis of the awareness

The IUP Journal of Marketing Management, Vol. XI, No. 1, 201262

An Empirical Analysis of the Awarenessand Satisfaction Level of Internet BankingUsers with Respect to Demographic Profile

© 2012 IUP. All Rights Reserved.

* Professor, DAV Institute of Engineering & Technology, Jalandhar 144008, Punjab, India.E-mail: [email protected]

** Assistant Professor, DAV Institute of Engineering & Technology, Jalandhar 144008, Punjab, India.E-mail: [email protected]

IntroductionThe Internet, as a part of information technology, has become an integral constituent ofresearch and development. Only 0.1% of the total population of India was using Internetin 1998, whereas in 2007, the figure increased to 3.7%, and by 2015, the onlinepopulation is expected to reach 70 million. This illustrates the phenomenal increase inthe use of Internet and the high probability of increase in Internet usage in the future.According to a recent report by Akamai, a firm that runs a global distributed network ofservers, India ranked 143rd globally with an average connectivity speed of 0.8 Mbps inQ3 of 2010. The report shows that Internet penetration in India has risen by 23%.According to the study of Forcht and Wex (1996), “Internet provides opportunities forbusinesses to increase their customer base, reduce transaction costs and sell their productsglobally”. Sathye (1999) stated that Internet is transforming the banking and financialindustry in terms of the nature of core products and services. The Internet is claimed to

This study is an attempt to explore the sources of awareness regarding Internet bankingand usage of Internet banking services. The study also assesses the satisfaction level of therespondents on the basis of their demographic profile across the public and private sectorbanks. The data was collected from 120 respondents belonging to State Bank of India(SBI), Punjab National Bank (PNB) and Canara Bank among the public sector banks,and Industrial Credit and Investment Corporation of India (ICICI) Bank, HousingDevelopment Finance Corporation (HDFC) Bank and Axis Bank among the privatesector banks in the state of Punjab. The survey was conducted from February to April2011. The study reveals that age has a statistically significant effect on the choice of aparticular bank. Income also has a significant influence on the number of banks used. Asregards gender and customers’ preference of bank, it was found that there is a significantinfluence of gender on the preference of bank. An analysis also demonstrates that statisticallythere is no significant relation between age and number of banks used, gender and numberof banks used and income and customers preference of banks.

Sonia Chawla* and Ritu Sehgal**

63An Empirical Analysis of the Awareness and Satisfaction Levelof Internet Banking Users with Respect to Demographic Profile

be the base of a new industrial structure (Furash, 1999), that will uproot the medievalfoundations of the banking system (Nehmzow, 1997). Internet has greatly influencedthe expansion of banking services. Durkin and Howcraft (2003) stated that “in thebanking industry, the use of the Internet has been recognized as an effective relationshipmarketing tool”. Services provided through Internet banking are e-tax payment, accessingthe account, online trading of shares, online remittance of money, electronic bill payment,railway reservation, transfer of funds from one customer’s account to another andapplication of loan, to name a few. Today, customers prefer to transact through user-friendly devices. Therefore, they prefer to conduct transactions through the Internet.Les Echos (2004) found that in France, 94.3% of the people visit their bank’s website tocheck their accounts and 63.4% visit the website to transfer funds. Novametrie (2004)stated that in Europe, a majority of the clients use banking through the Internet thanother networks. Ashford (2007) reported that in UK, the use of Internet banking increasedby 174% between 2001 and 2006 for a total of 17 million cyber-clients.

Awareness about various services is very essential so that people can utilize theservices to the maximum and service providers can also increase their customer base.Awareness about Internet banking services can be brought about by different meanssuch as TV, radio, magazines, journals, newsletters, newspapers, Internet, bank officialsand so on. The demographic profile of the customers should also be taken into accountso that satisfaction can be provided as per their expectations and requirements.

Literature ReviewA number of studies have been undertaken to analyze the awareness and satisfactionlevel of Internet banking users. Daniel (1999) reported that demographic factors have agreat impact on consumers’ perceptions and intentions towards Internet banking.Balachandher and Balachandran (2001), in their study, found that there were greaterpromotional efforts on the part of banks to create greater awareness of Internet bankingand its benefits were important for the success of Internet banking services patronage.Karjaluoto et al. (2002) found that Internet banking users in the Finnish market weregenerally highly educated and relatively young. Demographic factors affect online bankingbehavior (Laforet and Li, 2005). Mann and Sahni (2008) conducted an in-depth studyof the overall demographic profile of the active users of Internet banking. The studyfound that the most frequently used sources of awareness were bank personnel (50.57%),followed by bank literature and periodicals (26.2%), friends/colleagues (17.1%) andnewspapers (6.13%). It was also found that in the case of private sector banks, Internetbanking was most frequently used for sending e-mails to the banks for any query (2.92%),followed by balance inquiry (2.90%), ordering for check book (2.25%), bill payment(2.09%), fund transfer (2.04%), opening of fixed deposit account (1.98%), paying creditcard bills (1.85%), stopping payments on check (1.72%), check tax deduction (1.62%),ordering demand drafts (1.61%) and applying for loans (1.54%). It was also found thatin both the sectors, i.e., public and private sector banks, Internet banking users use itmostly for balance enquiry. This study revealed that the users of private sector banks


use Internet banking services more often than the users of public sector banks. Almahmeedet al. (2008) conducted a research on all Kuwaiti and non-Kuwaiti banks. It was foundthat the awareness of Internet banking proved to be relatively high among businessfirms. The most frequently used services by the customers were: reviewing the accountbalance, obtaining detailed transaction histories, obtaining information about deposits,loan interest rates, transfer funds between company’s own accounts, transfer funds toother accounts within Kuwait, transfer funds to other accounts outside Kuwait andissuing standing orders. It was found that the level of satisfaction with non-Kuwaitibanks was relatively higher than with Kuwaiti banks. Khurana (2009) studied theperception of Internet banking users through the relationship between demographiccharacteristics of users along with the five independent factors, namely, responsiveness,reliability, efficiency, privacy of information and ease of use. It was found that there wasno significant relation between age and preference of bank, profession of the customerand preference of bank, and gender and number of banks used. The study revealed thatthere was no significant impact of demographic variables on responsiveness, except thenumber of banks used. It was also found that the age of the respondents had a significantbearing on the efficiency. As regards reliability, customers had no trust in websites. Thestudy also revealed that there was no significant impact of demographic variables, exceptage of customers on privacy of transactional information. The factor ease of use wasloaded high by the respondents. Maiyaki and Mokhtas (2010) found that there was nosignificant relationship between e-banking facilities and choice of banks. It was alsofound that statistically there is a significant relationship between customers’ employmentsector and their age group on the one side and their choice of bank on the other side.Selvam and Nanjappa (2011), in their study, examined customers’ awareness andsatisfaction about e-banking of ICICI bank on the basis of demographic profile of theInternet banking users. It was found that the awareness level of college level educationgroup respondents was high as compared to other educational groups. The study revealedthat awareness level of income group above 10,000 per month was high as comparedto other income groups. It was also found that there was a significant difference betweensmall and large size families as regards the satisfaction level of respondents.

Research ObjectivesThis study aims to achieve the following objectives:

• To analyze the demographic factors (age, gender and income) of respondentswith the number of banks for availing Internet services;

• To analyze the demographic factors (age, gender and income) of respondentsusing Internet banking with their preference of banks;

• To assess the satisfaction level of respondents using Internet banking withrespect to demographic factors (age, gender and income level) across publicand private sector banks; and

• To study the awareness level of respondents using Internet banking acrosspublic and private sector banks.


Implications of the StudyNowadays, banks provide novel services/facilities in order to retain the existing customersand attract new ones, and Internet banking is one of such services. Therefore, thisresearch is being made from the customers’ perspective to analyze their awareness levelregarding various Internet banking services offered by the banks. This enables the banksto take important steps to improve the awareness level of the customers by using the lessused/non-used sources of awareness. This study was also conducted to analyze thesatisfaction level with respect to the respondents’ demographic profile. This study has apractical value as the findings can be used by banks as guidelines to work with thecustomers in the future and serve them better by providing services as per their expectationsand requirements.

Research MethodologyIn accordance with the objectives of the present study, the relevant data was obtainedfrom secondary as well as primary sources. The secondary information sources used forthe present research include various journals and magazines. The primary data wascollected from 120 respondents, out of which 56 respondents belong to public sectorbanks and 64 belong to private sector banks. A well-structured questionnaire (Appendix)was prepared and distributed to the customers of the State Bank of India (SBI), PunjabNational Bank (PNB) and Canara Bank among the public sector banks, and IndustrialCredit and Investment Corporation of India (ICICI) Bank, Housing DevelopmentFinance Corporation (HDFC) Bank and Axis Bank among the private sector banks inthe state of Punjab. Convenience and judgment sampling techniques were adopted inthe selection of the bank customers. Convenience sampling involves selecting samplerespondents as per the convenience of the researcher, while judgment sampling is basedon the intuitive knowledge of the researcher so as to include only those respondentswho have knowledge about the particular problem. Data was collected from Februaryto April 2011. Percentage analysis, frequencies, cross-tabulations, Analysis of Variance(ANOVA) and F-test have been applied for analyzing the data. ANOVA has been appliedin order to determine the significance of the differences across the two categories ofbanks on account of different variables. The data was analyzed through the statisticalpackage, SPSS.

Development of Null HypothesisH1: There is no significant relation between age and customers’ preference of banks.

H2: There is no significant relation between age and number of banks used.

H3: There is no significant relation between gender and customers’ preference of banks.

H4: There is no significant relation between gender and number of banks used.

H5: There is no significant relation between income and customers’ preference of banks.

H6: There is no significant relation between income and number of banks used.

v

Highlight


H7: There is no significant relation between age and satisfaction level across public andprivate sector banks.

H8: There is no significant relation between gender and satisfaction level across publicand private sector banks.

H9: There is no significant relation between income and satisfaction level across publicand private sector banks.

Data Analysis and InterpretationThe demographic profile of respondents under study is presented here and the resultsare discussed as per the hypothesis taken. The level of awareness and usage of Internetbanking has also been discussed here.

Demographic Profile of the RespondentsTable 1 shows that in the gender response rate of survey, male respondents (80%) arefour times more than the female respondents (20%). A scrutiny of the age group showsthat a majority of the respondents are young, i.e., less than 30 years. The table illustratesthat 40% of the respondents are less than 30 years of age, followed by age groups of 30-40 years (36.7%), 40-50 years (15%) and above 50 years (8.3%). Similarly, an analysisdone on the basis of income groups reveals that the dominating group using Internetbanking belongs to the income group of 3-5 lakh. The table depicts that 40% of the

Demographic Variables Public Sector Private Total PercentageBanks Sector Banks

Gender Male 50 46 96 80

Female 6 18 24 20

Total 56 64 120 100

Age Less than 30 years 24 24 48 40

30-40 years 18 26 44 36.7

40-50 years 4 14 18 15

Above 50 years 10 – 10 8.3

Total 56 64 120 100

Income Upto 3 lakh 12 12 24 20

Level 3-5 lakh 22 26 48 40

5-7 lakh – 8 8 6.7

7-9 lakh 14 14 28 23.3

Above 9 lakh 8 4 12 10

Total 56 64 120 100

Table 1: Demographic Profile of Respondents Using Internet Banking


total respondents belong to 3-5 lakh income group, followed by 23.3% respondents7-9 lakh income group, 20% respondents of up to 3 lakh income group, 10% respondents

of above 9 lakh income group, and 6.7% respondents of 5-7 lakh income group.

Table 2 shows the respondents’ choice of banks. Analysis done on the basis of havingaccounts in different banks, reveals that a maximum number of respondents (83.4%)have account only in one bank and the remaining (16.6%) have account in more thanone bank. Out of the total of 120 respondents, 20% have bank account in ICICI,followed by 18.3% in SBI, 16.7% in HDFC, 11.7% in AXIS bank, 10% in PNB, 6.7%in Canara Bank, 5% in two banks, i.e., SBI and ICICI, 3.3% in HDFC and ICICI,3.3% in PNB and HDFC, and 3.3% in PNB and SBI, and the least number ofrespondents (1.7%) in HDFC and AXIS bank.

Bank Name Frequency Percentage

PNB 12 10.0

SBI 22 18.3

Canara 8 6.7

AXIS 14 11.7

HDFC 20 16.7

ICICI 24 20.0

HDFC and AXIS 2 1.7

HDFC and ICICI 4 3.3

PNB and HDFC 4 3.3

PNB and SBI 4 3.3

SBI and ICICI 6 5.0

Total 120 100.0

Table 2: Tabular Presentation of Respondents’ Choice of Banks

ResultsThe Results of the hypotheses (mentioned earlier) are discussed below:

Age and Customers’ Preference of BankTable 3 presents the cross-tabulation between age and customers’ preference of banks.

The table value of F is 2.68 at 5% level of significance. Calculated value is greaterthan table value at 5% level of significance (Table 4). Hence, the null hypothesis (H1) isrejected at 5% level of significance. It shows that the factor age has significant effect onchoice of a particular bank.


Age (Years)

Bank Name Less Than 30-40 40-50 Above Total30 Years Years Years 50 Years

PNB 10 (8.34) 2 (1.66) 0 0 12

SBI 6 (5) 8 0 8 22

Canara 6 (5) 0 0 2 (1.66) 8

AXIS 6 (5) 4 4 0 14

HDFC 6 (5) 12 2 (1.66) 0 20

ICICI 10 (8.34) 8 6 (5) 0 24

HDFC and AXIS 2 (1.66) 0 0 0 2

HDFC and ICICI 0 2 (1.66) 2 (1.66) 0 4

PNB and HDFC 2 (1.66) 0 2 (1.66) 0 4

PNB and SBI 0 2 (1.66) 2 (1.66) 0 4

SBI and ICICI 0 6(5) 0 0 6

Total 48 44 18 10 120

Table 3: Cross-Tabulation Between Ageand Customers’ Preference of Bank

Note: Values in brackets are %.

Sum of Squares df Mean Square F Sig.

Between Groups 4.119 3 1.373 6.186 0.001

Within Groups 25.747 116 0.222

Total 29.867 119

Table 4: ANOVA and F-Test for Ageand Customers’ Preference of Bank

Age and Number of Banks Used

Table 5 depicts the cross-tabulation between age and number of banks used. The age ofsample respondents was categorized into four classes—less than 30 years, 30-40 years,40-50 years and above 50 years.

The table value of F is 2.68 at 5% level of significance. The calculated value of F isless than table value at 5% level of significance (Table 6). Therefore, the null hypothesis(H2) is accepted. It shows that age does not depend on the number of banks used.



Between Groups 0.989 3 0.330 2.253 0.086


Total 17.967 119

Table 6: ANOVA and F-Test for Age and Number of Banks Used

Age (in Years)

Less 30-40 40-50 Above Total than 30 50

One Bank 44 34 12 10 100

More than One Bank 4 10 6 0 20

Total 48 44 18 10 120

Table 5: Cross-Tabulation Between Age and Number of Banks Used

Number of Banks Used

Gender and Customers’ Preference of BankTable 7 reveals the cross-tabulation between gender and customers’ preference of banks.

GenderTotal

Male Female

PNB 12 0 12

SBI 20 2 22

Canara 6 2 8

AXIS 14 0 14

HDFC 16 4 20

ICICI 10 14 24

HDFC and AXIS 2 0 2

HDFC and ICICI 4 0 4

PNB and HDFC 4 0 4

PNB and SBI 2 2 4

SBI and ICICI 6 0 6

Total 96 24 120

Table 7: Cross-Tabulation Between Gender and Customers’ Preference of Bank

Bank Name

The table value of F is 3.92 at 5% level of significance. The calculated value of F ismore than the table value (Table 8). Hence, the null hypothesis (H3), there is a significantinfluence of gender on the preference of bank, is rejected.



Between Groups 1.408 1 1.408 5.840 0.017


Total 29.867 119

Table 8: ANOVA and F-Test for Gender and Customers’ Preference of Bank


Between Groups 0.300 1 0.300 2.004 0.160


Total 17.967 119

Table 10: ANOVA and F-Test for Gender and Number of Banks Used

Gender and Number of Banks UsedTable 9 shows the cross-tabulation between gender and number of banks used.

One Bank 78 22 100

More than one Bank 18 2 20

Total 96 24 120

Table 9: Cross-Tabulation Between Gender and Number of Banks Used

Number of Banks Used Age (in Years)

Male FemaleTotal

The Table value of F is 3.92 at 5% level of significance. The calculated value of F isless than the table value (Table 10). Hence, the null hypothesis (H4), there is no significantrelation between gender and number of banks used, is accepted.

Income Level and Customers’ Preference of Bank

Table 11 presents the cross-tabulation between income level and customers’ preferenceof banks.

The table value is 2.45 at 5% level of significance. The calculated value F is less thanthe table value (Table 12). Hence, the null hypothesis (H5), there is no significant relationbetween income level and customer’s preference of bank, is accepted.

Income Level and Number of Banks UsedTable 13 illustrates the cross-tabulation between income level and number ofbanks used. Income level was categorized into five levels—less than 3 lakh per annum,3-5 lakh per annum, 5-7 lakh per annum, 7-9 lakh per annum and above 9 lakh

per annum.


Age (in Years)

Bank Name Less Than 3-5 5-7 7-9 Above Total3 lakh lakh lakh lakh 9 lakh

PNB 4 6 0 2 0 12

SBI 4 6 0 8 4 22

Canara 2 6 0 0 0 8

AXIS 2 4 4 2 2 14

HDFC 4 6 2 8 0 20

ICICI 6 16 2 0 0 24

HDFC and AXIS 0 0 0 2 0 2

HDFC and ICICI 0 0 0 2 2 4

PNB and HDFC 0 0 0 2 2 4

PNB and SBI 2 0 0 0 2 4

SBI and ICICI 0 4 0 2 0 6

Total 24 48 8 28 12 120

Table 11: Cross-Tabulation Between Income Leveland Customers’ Preference of Bank


Between Groups 2.283 4 0.571 2.380 0.056


Total 29.867 119

Table 12: ANOVA and F-Test for Income Leveland Customers’ Preference of Bank

Income Level (per annum)

Less than 3-5 5-7 7-9 Above Total3 lakh lakh lakh lakh 9 lakh

One Bank 22 44 8 20 6 100

More than One Bank 2 4 0 8 6 20

Total 24 48 8 28 12 120

Table 13: Cross-Tabulation Between Income Level and Number of Banks Used

Number of Banks Used


The table value is 2.45 at 5% level of significance. The calculated value of F isgreater than table value at 5% level of significance (Table 14). Therefore, the nullhypothesis (H6) is rejected. It shows that the factor income level has significant influenceon the number of banks used.


Between Groups 3.038 4 0.760 5.851 0.000


Total 17.967 119

Table 14: ANOVA and F-Test for Income Level and Number of Banks Used

Table 15: Cross-Tabulation Between Age and Satisfaction Levelof Public and Private Sector Banks

<30 30- 40- >50 Total <30 30- 40- >50 Total40 50 40 50

Satisfied 16 8 2 4 30 12 8 4 – 24 54

Not Satisfied 8 10 2 6 26 12 18 10 – 40 66

Total 24 18 4 10 56 24 26 14 – 64 120

Age (in Years) Respondentsof Public Sector Banks

Age (in Years) Respondentsof Private Sector BanksSatisfaction

Level Total


Between Groups 0.751 3 0.250 0.988 0.406


Total 13.929 55

Table 16: ANOVA for Age and Satisfaction Levelof Respondents from Public Sector Banks

Age and Satisfaction Level

The sample respondents have been classified into four categories of age to assess theirsatisfaction level, the cross-tabulation of whichis shown in Table 15.

Table 16 shows that calculated value of F (0.988) is less than the table value (2.76)at 5% level of significance. Therefore, the null hypothesis (H7), there is no relation inage and satisfaction level of respondents of public sector banks, is accepted.

The calculated value of F (1.281) is less than the table value (3.15) at 5% level ofsignificance (Table 17). Therefore, the null hypothesis (H7), there is no relation in ageand satisfaction level of respondents of private sector banks, is accepted.



Between Groups 0.604 2 0.302 1.281 0.285


Total 15.000 63

Table 17: ANOVA for Age and Satisfaction Levelof Respondents from Private Sector Banks

Gender and Satisfaction Level

Table 18 shows the cross-tabulation between gender and satisfaction level of respondentsof both the sectors. The respondents are classified into two categories—male and femaleto assess their satisfaction level.


Between Groups 0.115 1 0.115 0.450 0.505


Total 13.929 55

Table 19: ANOVA for Gender and Satisfaction levelof Respondents from Public Sector Banks

Table 18: Cross-Tabulation Between Gender and Satisfaction Levelof Public Sector Banks and Private Sector Banks

Males Females Total Males Females Total

Satisfied 26 4 30 18 6 24 54

Not Satisfied 24 2 26 28 12 40 66

Total 50 6 56 46 18 64 120

Gender(Public Sector Banks)

Gender(Private Sector Banks)Satisfaction

Level Total

The calculated value of F (0.180) (Table 20) is less than the table value (4.0) at 5%level of significance. Therefore, the null hypothesis (H8), there is no relation in genderand satisfaction level of respondents of private sector banks, is accepted.

The calculated value of F (0.450) (Table 19) is lesser than the table value (4.0) at5% level of significance. Therefore, the null hypothesis (H8), there is no significantrelation between gender and satisfaction level of respondents from public sector banks,is accepted.


Income and Satisfaction Level

Table 21 reveals the cross-tabulation between income and satisfaction level.


Between Groups 0.043 1 0.043 0.180 0.673


Total 15.000 63

Table 20: ANOVA for Gender and Satisfaction Levelof Respondents from Private Sector Banks


Between Groups 1.742 3 0.581 2.478 0.071


Total 13.929 55

Table 22: ANOVA for Income and Satisfaction Levelof Respondents from Public Sector Banks

The calculated value of F (2.414) (Table 23) is less than the table value (2.53) at5% level of significance. Therefore, the null hypothesis (H9), there is no relation inincome and satisfaction level of respondents of private sector banks, is accepted.

Table 21: Cross-Tabulation Between Income and Satisfaction Levelof Public Sector Banks and Private Sector Banks

<3 3-5 5-7 7-9 >9 Total <3 3-5 5-7 7-9 >9 Total

Satisfied 10 8 – 8 4 30 0 12 4 6 2 24 54

Not Satisfied 2 14 – 6 4 26 12 14 4 8 2 40 66

Total 12 22 – 14 8 56 12 26 8 14 4 64 120

Public Sector Banks Private Sector BanksSatisfactionLevel Total

The calculated value of F (2.478) (Table 22) is less than the table value (2.76) at5% level of significance. Therefore, the null hypothesis (H9), there is no relation inincome and satisfaction level of respondents of public sector banks, is accepted.


Between Groups 2.110 4 0.527 2.414 0.059


Total 15.000 63

Table 23: ANOVA for Income and Satisfaction Levelof Respondents from Private Sector Banks


Analysis of Awareness Level of Internet Banking UsersTable 24 reveals that bank officials/employees have been found to be the most importantsource of awareness regarding Internet banking in both the sectors. Data collected fromprimary sources reveals that 60.71% respondents in the case of public sector banks and50% respondents from private sector banks consider bank officials/employees as themost influential source of awareness of Internet banking, whereas 25% respondents ofthe public sector banks and 31.24% respondents of private sector banks regard friends/relatives as the source of awareness of Internet banking, followed by 10.72% respondentsfrom public sector banks and 9.38% respondents from private sector banks who considerprint media as the source of awareness. Only 3.57% respondents of public sector banksand 9.38% respondents of private sector banks consider online advertisement as thesource of awareness of Internet banking. No respondent considers TV or radio as thesource of awareness of Internet banking in both the sectors.

Table 24: Tabular Presentation of Sourcesof Awareness for Internet Banking

No. of % No. of % No. of %Respondents Respondents Respondents

Bank Officials/ 34 60.71 32 50 66 55Employees

Print Media 6 10.72 6 9.38 12 10

TV and Radio 0 0 0 0 0 0

OnlineAdvertisement 2 3.57 6 9.38 8 7

Friends/Relatives 14 25 20 31.24 34 28

Others 0 0 0 0 0 0

Total 56 100 64 100 120 100

Public Sector Banks Private Sector BanksSources ofAwareness

Total

Analysis of Respondents’ Awareness and Usage of Different InternetBanking ServicesTable 25 shows that in the case of public sector banks as well as private sector banks,100% respondents are aware of opening an account, issuing an account statement,stopping payment of lost/stolen checks, removing ‘stop check’ request, credit/debit card,redemption of term deposit account, receiving alerts, foreign currency accounts, fundtransfers, foreign transfers, recharge mobile phones, online trading, product informationand downloading application forms through Internet banking. It is also found that100% usage of services through Internet banking in the case of public sector banks aswell as private sector banks is for issuing an account statement, credit/debit card, receiving


alerts, fund transfers, recharging mobile phones and seeking product information.In the case of public sector banks, 89.3% respondents use Internet banking fordownloading application forms, followed by 87% for standing order instructions, 78.6%for ordering check book, opening an account and redemption of term deposit account,71.4% for online trading, demat holding and purchase of investment, 60% for stoppingpayment of lost checks and 56% for removing stop check payment. Only 21.4%respondents are using Internet banking for interest rate enquiry, TDS enquiry, charitypayment and foreign currency accounts. Only 3.6% respondents are using Internetbanking services for application for loans and loan account details. In the case of privatesector banks, 75% respondents use Internet banking for opening an account, standingorder instructions and downloading application forms, 71.9% respondents use it forordering check book and for redemption of term deposit, 59.4% for online trading,

1. Application/ Opening an Account 100 78.6 100 75

Requests (Saving, Current, Fixed)

For Issue an Account Statement 100 100 100 100

Order Check Books 100 78.6 100 71.9

Stop Payment of Lost/Stolen 100 60 100 58Checks

Remove ‘Stop Check’ 100 56 100 53Request

Credit/Debit Card 100 100 100 100

Redemption of Term 100 78.6 100 71.9

Deposit Account

Standing Order Instructions 90 87 85 75

Receive Alerts 100 100 100 100

Foreign Currency Accounts 100 21.4 100 18.8

Loan 64.3 3.6 100 0

2. Payments/ Inter-Account Fund Transfer 100 100 100 100

Transfers Fund Transfer to Utility 100 100 100 100Accounts

Table 25: Tabular Presentation of Respondents’ Awarenessand Usage of Internet Banking Services

S.No. Services Offered

% of Respon-dents from

Public SectorBanks


Private SectorBanks

Awareof

MakeUse of

Awareof

MakeUse of


demat holding and purchase of investment, 58% for stopping payment of lost checksand 53% for removing stop check payment. Only 31.2% respondents use Internet bankingfor interest rate enquiry and TDS enquiry. Only 18.8% respondents use Internet bankingfor charity payment and enquiry of foreign currency accounts. Only 15.6% of the totalrespondents use Internet banking services for foreign transfers. The number of respondentsis zero for loan enquiry and loan account details in the case of private sector banks.

Hence, it can be concluded that a maximum number of respondents in both thesectors are aware of the different Internet banking services and very few services are leftunused.

Findings and ConclusionAn in-depth study of Internet banking users was conducted and some of the findingshave been presented in Table 26.

It has also been found that statistically there is no relation between ‘gender andsatisfaction level’, ‘age and satisfaction level’ and ‘income and satisfaction level’ of the

Table 25 (Cont.)

S.No. Services Offered


Public SectorBanks


Private SectorBanks

Awareof

MakeUse of

Awareof

MakeUse of

Fund Transfer to Other 100 100 100 100Local Bank Account

Recharge Mobile Phones 100 100 100 100

Foreign Transfer 100 17.9 100 15.6

Charity (Online Payment 89.3 21.4 78.1 18.8

of Charity)

3. Enquiry/ Product Information 100 100 100 100

Seeking Download Application Forms 100 89.3 100 75

Information Interest Rate Enquiry for 46.4 21.4 50 31.2Different Deposits

TDS Enquiry 46.4 21.4 50 31.2

Loan Account Details 60.7 3.6 53.1 0

4. Online Online Trading 100 71.4 100 59.4

Trading/ Demat Holdings 96.4 71.4 100 59.4

Investment Purchase of Investment 71.4 71.4 62.5 59.4


S. No. Null Hypotheses Results

1. There is no significant relation between age and customers’ Rejectedpreference of banks

2. There is no significant relation between age and number of Acceptedbanks used

3. There is no significant relation between gender and customers’ Rejectedpreference of banks

4. There is no significant relation between gender and number of Acceptedbanks used

5. There is no significant relation between income and customers’ Acceptedpreference of banks

6. There is no significant relation between income and number of Rejectedbanks used

Table 26: Findings of the Study

respondents of public sector banks as well as private sector banks. The satisfaction levelcan be improved with some more efforts of the banks by providing Internet bankingservices as per the users’ expectations. An attempt has also been made to find the mostinfluential source of awareness regarding Internet banking and to find some other sourceswhich can be used for awareness. Only bank officials/employees have been found to bethe most influential source of awareness (55%) regarding Internet banking. Therefore,print media, TV and radio can also be used to make the people aware of Internetbanking facilities in both the sectors. It is also found that there is a high level of awarenessand usage of most services through Internet banking, except those related to foreignexchange transactions, loan interest rate enquiry on deposits, TDS enquiry and onlinecontribution to charity.

Thus, it is believed that banks must try to find out the specific needs of differentcustomers so that pertinent services as per their expectations can be provided to attractcustomers and retain the market share. J

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AppendixQuestionnaire

Section A

1. Name: ______________________________________________________

2. Gender: Male Female

3. Current Age (Years)

Less than 30 30-40 40-50

Above 50

4. Marital Status: Single Married

5. Income Level: Upto 3 lakh 3-5 lakh

5-7 lakh 7-9 lakh

Above 9 lakh

Section B

6. How many banks are you using currently for Internet banking services?

(a) One Bank (b) More than one bank

7. With which banks are you contacting with?

...........................................................................................................

...........................................................................................................

...........................................................................................................

8. What are the sources of awareness about Internet banking? Please mark against the relevantbox:

Bank Officials/Employees

Print Media

TV and Radio

Online Advertisement

Friends/Relatives

Others, please specify


Appendix (Cont.)

9. Are you aware of and make use of the following services through Internet banking?(Tick against relevant boxes)

1. Application/Requests for Opening an Account (saving,current, fixed)

Issue an Account Statement

Order Cheque Books

Stop Payment of lost/stolencheques

Remove 'stop cheque' request

Credit/debit card

Redemption of term depositaccount

Standing order instructions

Receive alerts

Foreign currency accounts

Loan

2. Payments/Transfers Inter-account fund transfer

Fund transfer to Utilityaccounts

Fund transfer to other localbank account

Recharge mobile phones

Foreign transfer

Charity (online paymentof charity)

3. Enquiry/Seeking Product Information

Information Download Application Forms

Interest rate enquiryfor different deposits

TDS enquiry

Loan account details

4. Online Trading/ Online trading

Investment Demat holdings

Purchase of Investment

Services OfferedS.No.

Aware of Make Use of

Yes No Yes No


10. Are you satisfied with Internet banking of your bank?

(a) Yes (b) No

Section C

11. Any suggestions from your side.

________________________________________________________________________________________________________

________________________________________________________________________________________________________

Thanks for your cooperation and sparing your precious time

Signature:_____________________ Date:__________________________

Appendix (Cont.)

Reference # 03J-2012-02-03-01

Reproduced with permission of the copyright owner. Further reproduction prohibited without permission.

an empirical analysis of the awareness

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