International Research Journal of Business and Management – ISSN 2322-

IRJBM 083X
Customer Awareness and Preference towards E-Banking Services of
Banks (A Study of SBI)
Miss. R. Elavarasi
II Yr MBA Student, School of
Management, SASTRA University,
Thanjavur, South India

Dr.S.T.Surulivel
Senior Assistant Professor, School of
Management, SASTRA University, Thanjavur,
South India

ABSTRACT

The purpose of this study is to create customer awareness & to find out what they most
preferred e-banking services of banks. The study has been done in Kumbakonam City
comprising a sample size of 200.After the data collection, researcher has identified which
commercial bank provide better service with regards to e-banking services to customers
and also identified satisfaction level of customer view about internet banking website of
banks. The result of this analysis is showed that mean age of e-banking users is 0.795and
0.205 respectively and the respondents were mostly men as compared to women. The data
analysis shows that age, educational qualification, occupation, income level of customer are
significant factor that decide usage of e-banking services of various banks in the study area.

KEYWORDS: Banks, Awareness, Preferred E-Banking Services, Satisfaction Level,

Occupation, Income level.

INTRODUCTION

Now a day’s information technology plays a vital role in banking sector. Day by day
increasing change in technology world, it leads to improve e-banking services of various
banks. Traditional branch model of bank is now changing into new form of e-banking
services like kiosk marketing machine, coin vending machines of SBI. It provides various
advantages to customer of various banks.Now-a-days people are educated more than olden
days, today human lives becomes machine oriented and they don’t have enough time to
visit bank branch than ever before.

E-Banking means providing banking products and services through electronic delivery
channels like ATM,Internet banking,Telephone banking and other electronic delivery
channels.SBI has over 4500 ATM centres in India approximately. Automated Teller
Machine (ATM) is electronic computerised telecommunication device that allows a
customer to directly use a secured method of communication to access their bank accounts
or make cash withdrawals and other services. Internet banking highly useful to the
customer one who have computer with internet connection, they need not visit bank branch
for their business transactions. Simply they can transact anywhere, anytime if they have
internet connection. By dialing the telebanking number customer can get various facilities
like cheque book request, balance inquiry etc.

IRJBM – www.irjbm.org April - 2014 - Volume No – IV Page 1

© Global Wisdom Research Publications – All Rights
Reserved.
 State bank of India introduced coin vending machine, kiosk marketing machine for their
customers to get their services quickly without delay. Apart from these services, SBI
provide SBI e-tax, demateservices-pay, State bank mobicash.

STATEMENT OF THE PROBLEM

SBI introduced ATM facility since the last four-five years. As the use of ATM is increasing
day –by-day, it is important to study the customer preference towards use of ATM services
in Kumbakonam city. This study is one of such an attempt. Identification of information
needed to solve the problem,Selection or development of instruments for gathering the
information,Identification of target population and determination of sampling
procedure,Design of procedure for information collection,Collection of
information,Analysis of information,Generalizations and/or predictions.

OBJECTIVES OF THE RESEARCH

To eva

 luate the awareness of E-Banking among the customers of SBI.

 To measure the customer satisfaction in E-Banking services provided by SBI.
 To study the most preferred E-Banking service offered by SBI
 To know which age group of customers is using different e-banking facilities.
 To know the cause why customers are not using internet banking.

LIMITATION OF THE STUDY

 Some respondents were hesitating to give true responses.

 The data was collected within 1 month time period.
 The inferences apply only to the respondents of Kumbakonam City and are not
applicable to any other place and cannot be generalized.

RESEARCH METHODOLOGY

This research follows the survey research methodology based on previous research in
related area;a questionnaire was constructed to study the customer preference towards e-
banking services of banks. After pilot testing the questionnaire was administered to 200
persons who have account in SBI.Here we take minimum age as 20 years. The data was
obtained through the use of structured questionnaire and convenience sampling.The data
were analysed with percentage method, frequencies and correlation, chi-square tests.Charts
and tables are also prepared.

REVIEW LITERATURE

Abou-Robich, Moutaz (2005)studied how to analyse comfort levels and attitude of users
towards online banking facilities. The findings resulted that there is a correlation between
attitude towards e-banking and feeling of security with regard to their demographic
variables.

Isern, Jennifer (2008) pointed out that a positive relationship between the level of
financial infrastructure and the level of competition and a negative relationship between the
degree of state ownership in a banking sector and the level of competition.

Reynolds, John (2007) said that 2006 e-banking technology services industry customer
loyalty survey data results in order to improve marketing resource allocation for corporate
e- banking products and services.
Huang, Haibo (2005) reveals that the successful introduction electronic money and e-
banking services depends mainly on people acceptance.The major finding is that although
e- banking customers more or less have some common characteristics, they differ across
different types of e-banking services.

Taft, Jeanette (2007) pointed out that Technology Acceptance Model (TAM) as applied to
a specific type of technology: e-banking.They suggested that e-banking – prior training,
perceived ease of use of e-banking technology.

Jeon, Kiyong (2014) have said that consumer prefer larger banks in U.S.Because they has
to reduce their transportation cost by way of larger banks have multiple ATM centre’s
across the country.

Lee, Jihyun (2003) examined that to identify whether customer intention affecting to use
online financial services.The effects of attitude toward behaviour,subjective norm were
examined.Demographic variables were included as control variables.

Ding, Xin (2007) reveals that consider for research consumer behaviour on internet in the
last years.The findings conclude that customer behaviour from self-service, Service quality
and experience design perspectives.

Wamalwa, Tom (2006) said that whether internet banking strategies were aligned with the
bank’s core business based or not identified.

Featherman, MauricioSanchez (2002) studied that perceived risk inhibited consumer

adoption intentions as well as perception of the usability, usefulness of online payment.

Bayles, MichelleEsther (2004) have said that investigating factor contribute their decision
to bank online, frequency of banking activities.

Massad, Nelson (2003) contributed at a theoretical level by providing deeper

understanding of the transactions between customers and service providers.

Yee Yen, Yuen (2011) have said that comparison between factors affecting consumer
acceptance of internet banking services between developed and developing countries.

Siregar, DonaD (2004) investigate that the relative importance of different factors
influence bank decision on going public over consolidating with other banking
organisations.Many banks experienced consolidation through merger acquisitions (M&A).

Bauer, Keldon.J (2002) examined that bankers and consumers are both interested in the
potential for internet banking. Thefindings show that banks too have been developing their
infrastructure to address what they perceive as a growing demand for online services.

Yousafzai, Shumaila Yakub Khan (2005)has said that to develop aconceptual model that
determines how intentions towards the use of internet banking are formed and to what
extent they are related to the actual use of internet banking.

Ubadineke, Francis.N (2009) indicated that advances ininformation technology and

telecommunications are resulting in new delivery channels for bank products and services
in the developing countries.
Nor, KhalilMd (2005) results indicate that the model provides a good understanding of
factors that influence the intention to use internet banking.

Chen,Lisa(2012) studied that will increase our understanding in

financial,accounting,management of information system,business administration and
decision making related to the adoption of Internet banking in Mainland China.

Adham, KhairulAkmaliah (2000) indicated that Malaysian banks could be grouped into
two in regard to their reasons for adopting the electronic delivery systems.

DATA ANALYSIS& INTERPRETATION

In the present scenario preference among customer for e-banking services of banks is differ
from one person to other person, so to understand preference of different customer the
researcher have used various dimension such as usage of e-banking service,most preferred
service, convenience,security, accessibility,satisfaction level of customer using internet
banking.

Table 1- FREQUENCY ANALYSIS OF DEMOGRAPHIC VARIABLES

Percentage
Variables Category Frequency frequency
Male 159 79.5
Gender
Female 41 20.5
20-25 41 20.5
26-35 67 33.5
Age 36-45 67 33.5
46-60 20 10
Above 60 5 2.5
Up to SSLC 10 5
UG 70 35
Educational Qualification
PG 70 35

Professional 30 15
Other 20 10
Business 20 10

Occupation Employee 70 35
Professional 30 15
Student 70 35
Other 10 5
Source: Primary data

Above table 1- shows that most of the respondents are men (79.5%), they are using e-
banking service in research area as compared to women in the city. On a Percentage basis,
26-35 age group falls on 33.5%, similarly 36-45 age group falls on the same
percentage.35% of respondents qualification is UG and also same percentage of
qualification is PG too. Out of
200 respondents, 35% of them are employee and as well as student and remaining fall
under other category.

Table 2- Relationship between Occupation & Their Use of E-Banking Services

Correlation Occupation E-banking services

Occupation 1 0.086

Above table 2 shows that there is a weak relationship between occupation and use of E-
Banking services of SBI. This means that changes in occupation are not correlated with
changes in use of E-Banking services of SBI. If r = 0.01, finally it conclude that these
variables were not strongly correlated.
Table 3- Correlation between Convenience and Ease of Use in Banking Website

Rate convenience as areason View about ease of use in bank

Correlation
for opening account website

Rate convenience as a
reason for opening
account 1 0.368

Above table 3 shows that there is a strong relationship between convenience as a reason for
opening internet account and view about ease of use in bank website.It clearly shows that
changes in convenience are correlated with changes in view about ease of use in bank
website.It concludes that these variables were strongly correlated.

Chart 1- Frequency Analysis of Most Preferred E-Banking Services ofSBI

Above chart -1 indicate that 42% of respondents were prefer ATM &Online banking for
their day-to-day activities. 23% of them were preferred using ATM as their next preference
in various e-banking channels. 17% of the respondents were preferred mobile banking
because new applications are introduced day by day by the information technology
world.so it is highly useful to them to transact fraction of second using new mobile banking
applications.Sms banking preferred by 4% of the respondents.

Chart 2- Reasons for Non-Adoption of Internet Banking By the Customers

Above chart 2 shows the results that main reason for not opening an internet bank account
by the customers of SBI. Based on this study finds that major reason that literacy level is
low as compared to other cities because they depend on mainly agriculture business in this
area and also customers of State bank of India not aware of internet banking facilities and
they don’t know how to use it.

Table 3- Based on Age Group Preference onE-Banking Facilities ofBanks.

Age Preference on e-banking facilities

20-25 80
26-35 50
36-45 30
46-60 22
Above 60 22
Source: Primary data
 Chart 3 – Based on age group preference on e-banking facilities

Above chart 3- resulted that 80% of the respondents under 20-25 age group category were
prefer ATM& Online banking for their financial transactions.26-35 age group were prefer
ATM&Mobile banking. 30% of the respondent under 36-45 were prefer ATM.Remaining
46- 60 age group and Above 60 age group category prefer ATM,Sms banking, Telephone
banking, other etc..

Table 4- Customer Satisfaction Level in Internet Banking Website

Variables Mean Rank Chi-square significance at 5%level

Page setup/menu flow 1.22

Ease of use/navigation 1.45

Speed of page loading 1.57 90.440

Df=3
Content 1.39 P=0.000

Variety of transactions 1.22

Visual design 1.70

Above table 4 shows that outcome of satisfaction level of customer using bank website. It
clearly resulted that significant value = 0.000,so null hypothesis(H0) is accepted, there is a
significant relationship between view about internet banking website and customer
satisfaction.
Table 5- Relationship between factors as a reason for opening internet bank account.

Variables chi-square value Significant value Results

Convenience 102 0.000 H0 is accepted
Ease of use 237 0.000 H0 is accepted
Security 267 0.000 H0 is accepted
Accessibility 262 0.000 H0 is accepted
Bank service 274 0.000 H0 is accepted
User friendliness 135 0.000 H0 is accepted
Customer relations 97 0.000 H0 is accepted
Account security 527 0.000 H0 is accepted
Online shopping 63 0.000 H0 is accepted

Above table 5 – shows that outcome of relationship between various factors like
convenience, accessibility, ease of use, security, etc are important reason for opening an
internet bank account. Based on this analysis find that there is a significant relationship
between reason of opening bank account and security of transaction, ease of use,
accessibility, bank service online shopping, and customerrelations significant relationship
between them.

FINDINGS, RECOMMENDATIONS & CONCLUSION

It is found from this study that younger generation were using electronic banking services
are more as compared to older generation because of new innovation in information
technology and their adoption level is high in e-banking .Above 60 age group category
were using e- banking services are less than others.Risk is one of the factor customer were
consider while opening an internet bank account .They didn’t feel secure in the internet
banking. The respondents preferred ATM, Online banking, Mobile banking, Sms banking
for their financial transactions. From customer point of view that private bank provide
better services as compared to public banks, But for secured transaction public banks will
be preferred by most of the respondents.

On the basis of data analysis and interpretations, the following suggestions can be made,

To increase awareness among people, SBI should advertise and conduct special awareness
programs to make E-Banking services more popular among customers.SBI should increase
ATM centres nearby customer place like cinema theatres, markets etc.Most of the
respondents like E-banking services provided by SBI.But they hesitate to use because they
don’t know how to use it in correct manner. SBI should try to give proper training or other
solution to solve this problem and it should try to improve their service level to face the
stiff competition given by other commercial banks.

E-banking technology is highly useful to customers as well as banks and other

organisations like government organsiations.To increase productivity, efficiency, service
quality of banks, expansion of banks globally e-banking is major important of all
commercial banks to adopt in their countries as well as their customers. SBI should try to
maintain proper system of maintenance for internet banking.
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satisfaction issues.(2005)
2. Ding, Xin “Three studies of service operations and customer experience design in
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based financial transaction processing systems (2002).
4. Huang,Haibo”Essays in electronic money and banking(2005)
5. Isern,Jennifer” A cross-country analysis of the effects of e-banking and financial
infrastructure on financial sector competition: A Schumpeterian shift?(2008)
6. Jeon, Kiyong”Essayson banking industry: ATM(Automatic Teller Machine)(2014)
7. Lee, Jihyun” Factors affecting intention to use online financial services (2003).
8. Reynolds, John” A retrospective data examination of customer loyalty in the e-
banking technology services industry: Strategies for new successes(2007)
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