CHAPTER 5

CONCLUSION AND SUGGESTIONS

5.1 Conclusion :
An objective way of looking into the future of the financial services industry is to appeal to
banking theories. As the intermediary channelling funds from savers to borrowers, bank engage
in information production when making loans and commit themselves not to take excessive risks
by having a fragile capital structure consisting of demand deposits. Thus, regardless of how
financial modernization progressive, these core activities that defy aggressive, banks are
expected to be preserved, suggesting that there may be a limit to the transformation of bank
balance sheets through financial innovations. Furthermore, to the extent that certain
characteristics are unique to banks, such as gathering demand deposits in the course of proving
payment integration over securities firms or insurance companies. This may be further
accentuated by the disparity in supervision and regulation between banking organizations and
non-banking financial firms. It is also notable that bank are one of the key players in any country
to proceed towards the development and as the modernization phase continues with innovation
and new technology it would be beneficial to any country economically but also it can play a key
role in the implementation the financial inclusion policy.

5.2 Findings :

The present finding from the interpretation of the result regarding factors considered for adopting
E-banking / internet banking services by bank customers, functional / psychological barriers, and
usefulness and benefits of E-banking services are enumerated here.

 Internet centre in the study area is the place for using internet for around 50 percent of the
respondents.
 Though majority of the bank customers perceive the ATM usage has important, the
importance of ATM usage is significantly related to location, education and occupation
of the bank customers based on the present study.
 The perceived importance of Tele-banking is dependent on the location and income but
depends upon sex, age, education and occupation of the bank customers.
 The internet banking is important for bank customers and at the same time the importance
of internet banking significantly related to their age, education, occupation and income.
 The extent of services like online inquiry, Online payment, credit card and telephone
banking has been at -fair- level whereas the extent of services such There is significant
difference in the extent of services has provided by both public and private sector banks.
 There is significant difference in the extent of services has provided by both public and
private sector banks.
  Most of the customers have not availed of the e-banking / internet banking services
because they do not trust the internet channel presuming it as complicated. So banks may
set up a team of personnel to train the customers to get acquainted with internet channel.
 The bank customers have perceived the risk of getting wrong information from e-banking
/ internet banking services. These illusions should be removed from the minds of the
customers by bank people as these factors are the barriers for most of the customers for
not adopting these services.
 There is significant relationship between functional / psychological barriers / benefits and
importance of Internet banking among bank customers.
 Perceiving adoption of internet banking as “good option next to traditional banking” tend
to be more positive if bank customers are female with less educational status and likely to
be housewives with high monthly income who prefer e-banking but not adopted e-
banking, make less number of monthly bank visits, less number of internet banking
transaction in a week but tend to do more number of bank transaction in a month.
 An adoption of e-banking / internet banking provided by the private sector banks is more
beneficial in terms of “time and cost”, “providing accurate, relevant and up-to date
information” and “accessibility with convenience” compared to public sector banks.
 The perceived level of benefits of e-banking / IB is independent of gender of the bank
customers.
 Almost all the services are perceived to be useful by both user and nonuser of e-banking
services, but the level of perception about usefulness of e-banking among non-user group
is significantly less than that of user group.
 There is significant difference in the perceived status of usefulness of e-banking / internet
banking services by educational status of the bank customers.
 The bank customers are intended to continue e-banking / internet banking in the future”
as it is useful in getting account details and balance statements as well as for transferring
funds. Further, bank customers tend to strongly recommend to others to use e-banking /
internet banking as it is useful for loan transaction, paying bills using available cash in
the accounts, making order to buy and sell shares and generating latest reports of banking
transactions.
 It is found that some bank customers have not adopted e-banking services as they do not
trust the internet as a channel for banking and it is complicated to use as well as they
cannot afford the Internet fee.
 It is identified that “convenient and easy to use”, “Complications and Difficulties in using
IB initially”, “good option next to traditional banking” and “risk of getting wrong
information” are the major factors for functional / psychological aspects of internet
banking.
 According to our study we can say that the accessibility of the bank in remote are is
scarce at some point banks should focus on that.

5.3 Suggestions
 The e-banking / internet banking system should be enhanced to make the online enquiry
and online payment much more easier to the customers.
 Most of the customers have not availed of the e-banking / internet banking services
because they do not trust the internet channel presuming it as complicated. So banks may
set up a team of personnel to train the customers to get acquainted with internet channel.
 The bank customers have perceived the risk of getting wrong information from e-
banking / internet banking services. These illusions should be removed from the minds
of the customers by bank people as these factors are the barriers for most of the
customers for not adopting these services.
 Though e-banking / internet banking is convenient and easy to use, customers are afraid
of adopting these services because they think that using these “services are difficult and
complicated”. So, on-site training can be provided to the bank customers who intend to
use e-banking / internet banking services.
 Banks should take necessary steps to increase its outreach it is noted In our study that
banks are less accessible in the remote location the special force to deal with this crisis
should be formed to resolve the problem.
 To achieve this sound financial and banking service is essential and therefore Indian
bankers should take resolutions to implement the policy of “inclusion” in all the
branches, which enable its customers to enhance the knowledge of e-banking and avail
all form of banking services.