PROJECT REPORT

Submitted for the Degree of B. Com. Honours in Accounting &

Finance under

Title of the project

ONLINE BANKING
Submitted by Name of

the Candidate:

Registration No.

Roll No.

Name of the College:

Supervised by

Name of the Supervisor:

Name of the College:

Month & Year of Submission

 ACKNOWLEDGEMENT
I am thankful to all faculty members, providing their valuable time and guidance
elaborating view of studying the project details and getting the right vision for its
implementation.

I pay my immense gratitude to prof._________ faculty of __________COLLEGE for

his continuous and deliberate discussion on the topic and indeterminable burden
taken by her in helping me throughout conducting the project.

Secondly I would like to thank ______, the manager of PNB, for spending his precious time
for my project and giving me ample of good ideas about the project.

Last but not the least I am grateful to all our family members and friends for being
our side always. Without their help and motivation it would have been impossible to
complete this project
 ABSTRACT
This project aims at creation of a secure internet banking system. This will be
accessible to all customers who have a valid id and password. This is an approach to
provide an opportunity to the customers to have some important transactions to be
done from where they are at present without moving to bank. In this project we are
going to deal the existing facts in the bank i.e.; the transactions which takes place
between customer and bank. We provide a real time environment for the existing
system in the bank. We deal in the method transaction in the bank can be made faster
and easier that is our project is an internet based computerized approach towards
banking. Our scenarios are based on solely on publicly available online information.
Here we discuss methods, advantages as well as disadvantages of net banking and
their analysis. The online banking system can be considered as one of the great tool
supporting many customers as well banks and financial institutions to make many
banking activities through online.
 TABLE OF CONTENT
Chapter Particulars Page
no. no.
1 INTRODUCTION:
1) Background of Study
2) Literature Review
3) Research Gap
4) Objectives of Study
5) Research Methodology
6) Limitation of Study
7) Chapter Plan
2 Conceptual Framework
1) Concept
2) Industry Profile
3) Company Profile
4) National Scenario
5) International Scenario
6) SWOT/SWOC analysis
3 Presentation and Analysis of Data

4 Conclusion

Bibliography

Annexures
Annexure-II

Supervisor’s Certificate

This is to certify that Miss _____________, student of B.Com Honours in Accounting & Finance
of ______________college under the University of Calcutta has worked under my supervision
and guidance for her Project Work and prepared a Project Report with the title “A Project on
Online Banking in India”.

The project report which she is submitting is her genuine and original work to the best of my
knowledge.

Place: Kolkata Signature:

Date: Name: Prof.

Designation:
 Annexure-III

Student’s Declaration

I hereby declare that the Project Work with the title “Online Banking in India” submitted by me
for the partial fulfillment of the degree of B.Com. Honours in Accounting & Finance under the
University of Calcutta is my original work and has not been submitted earlier to any other
University/Institution for the fulfillment of the requirement for any course of study.

I also declare that no chapter of this manuscript in whole or in part has been incorporated in this
report from any earlier work done by others or by me. However, extracts of my literature which
has been used for this report has been duly acknowledged providing details of such literature in
the references.

Signature:

Place: Kolkata Name:

Date: Address:

Registration No:

CHAPTER : 1 INTRODUCTION
1.1 Background of Study:-
The internet banking is changing the banking industry and is having the major effects on banking
relationships. Even the Morgan Stanley dean witter internet research emphasized that web is
more important for retail financial services then for many other industries. Internet banking
involves use of internet for delivery of banking products & services. It falls into four main
categories, from Level 1 – minimum functionality sites that offer only access to deposit account
data – to Level 4 sites – highly sophisticated offering enabling integrated sales of additional
products and access to other financial services – such as investment and insurance. In other
words a successful internet banking solution offers – • Exceptional rates on savings, CDs, and
IRAs.
• Checking with no monthly fee, free bill payment and rebates on ATM surcharges.
• Credit cards with low rates
• Easy online applications for all accounts, including personal loans and mortgages.
• 24 hour account access.
• Quality customer service with personal attention

Purpose of the Study:-

The main purpose of this study to get an overview of the internet banking sector in
The Indian economy and study as to how it has helped change the banking habits of
various individuals.
1.2-Literature Review:-
 Dannenberg and Kellner (1998), in their study, overviewed the opportunities for
effective utilization of the Internet with regard to the banking industry. The authors
evaluated that appropriate application of today’s cutting edge technology could ensure
the success of banks in the competitive market. They valuated the services of banks via
internet as websites provide sophisticated line of products and services at low price. The
authors analyzed that transactions via internet reduce the risk of data loss to customers,
chance to cut down expenses, higher flexibility for bank employees, re-shaping the
banks’ image into an innovative an technologically leading institute, etc. The researchers
found that banks could move one step further by entering into a strategic alliance with
internet service provider. So the bank of tomorrow stands to be feasible with today’s
technology.
 Daniel (1999), in his research paper, described e-banking as the newest delivery channel
offered by the retail banks in many developing counties. The objective of the study was
to analyze the current provision of electronic services of major retail banking
organization in the UK. The researcher thought a questionnaire found that 25% in the UK
were those already providing e-banking services, 50% banks were testing or developing
such services while 25% were not providing any e-banking services. Electronic channels,
PC, digital TV and all these provide greater accessibility and services at lower price. To
make services more adaptable, customers should provided maximum choice and
convenience. Restriction and limitation within organization to operate the services and its
market share or strength were viewed as important to decide and operate the e-banking
services.
 Sureshchander and Rajendran (2003), in their paper, focused on investigating the
important factors of customers’ perceived quality in banks of developing economy like
 India. The authors had taken 15 public sector banks, 14 private banks and 14 foreign
banks for the period under study. The researcher found that there seems to be a great
variation in respect of services offered by three groups of banks. They used core services
such as human element, systemization of services, tangibility of services and social
responsibility as critical factors. They analyzed that three groups of banks in India seem
to vary significantly in terms of service quality factors but from the customers perception
of service quality, it could be acceptable only if could be acceptable only if customers’
need could be satisfied at the right time in a right manner.
 Slam (2006), in his study observe that the effects of electronic banking on the
profitability of Jordanian banks. The study investigated the reasons behind providing
electronic banking service through internet, their impact on banking service in general,
and banks profitability in particular. The result of the study revealed that electronic
infrastructure, cost of training to employees and also the cost involved in creation of
environment where the banks can operate smoothly. However, these services had a
positive impact in the long run on the profitability of banks. The researcher recommended
that banks need to carry out awareness and promotion campaigns to educate clients aware
them of feasibility through reduce time, cost, effort and also to hold training courses for
employees to understand the e-banking business strategies.
 Kautish (2008), describe the paradigm shift of banking sector from traditional banking to
online banking. The objective of the paper was to discuss the derivation of value added
tool of online banking system which was used to attract new customers and retain the
existing ones. It helped the banks to acquire more business from existing customers.
People preferred to use online banking because of its availability, better performance,
ubiquity, speed and its effectiveness. Further, the author discussed two bank models
integrated banking model where the banks provide internet banking service as an
extension to their basic services like ATM and mobile banking. So, it is a kind of hybrid
approach and the other was stand alone internet banking model, where the banks totally
rely on the channel. To improve the service through e-banking, banks should think from
the customers’ perspective and there should be creativity and innovation in designing and
implementation of e-banking was a relatively new concept in the global banking scenario
so the best of this concept was yet to come.
1.3 Research Gap:-

The research into adoption of new technology domain has attracted many researchers and
practitioners as well. Internet banking is one of the most important information technology
applications. A review of the literature indicated that past studies dealt with the internet banking
issue from many angle every researcher has provided the factors that influence behavioral
intension from his or her point of view. The majority of the past studies focused on exploring
factors that affect the adoption or intension to accept internet banking services for ex:
convenience of internet banking transactions, internet experience (Awamleh, 2005), bank’s web
design and transaction speed (Yoon, 2010), switch caused , offline loyalty and offline trust (lee ,
Tsai and lanting,2011).however, several studies have investigated the effect of internet banking
service quality on adoption .for ex: Broderick and Vachirapornpuk (2002), Joseph and stone
(2003) ,Khan and Mahapatra (2009), Zarei (2010) indicated that the internet banking service
quality play a significant role in influencing the adoption of internet banking services . At the
same time, other previous studies have paid attention to security and perceived risk.
Base on the researcher knowledge, there has been no study that investigated the relationship
between individual technology readiness and their intention toward the adoption of internet
banking services. The technology readiness refers to “people’s propensity to embrace and use
new technology for accomplishing goals in home life and at work”. Technology readinessreflect
an overall state of mind; it is not a measure of competence, it describes a person not the
technology.

As far as the researcher knowledge there is no internet banking study that focuses on the
irrational dimension (i.e. Innovativeness, optimism, discomfort and insecurity) in the past
studies. Furthermore the reviews of the existing literature of technology readiness have also
rebuild that there is no previous study conducted into technology readiness in the domain of
internet banking therefore there is an opportunity for the researcher to conduct research and
bridge this gap in the internet banking research field. Moreover, findings from previous models
about the influences of difference variables on individual intension to accept new technology are
inconsistent . There is a contradiction between previous technology models , which one model
includes some variables, whereas other models omitted them out for ex: UTAUT ignored
attitude , while other theories (TRA, TAM, TPB and DTPB) considered it as one of the most
important variable.

One major criticism of the technology acceptance theories/model is that they have not taken into
account irrational dimension influence. The research to date has tended to focus on specific
factors (i.e. attitude, subjective norms and perceived behavioral control) rather than
irrational/emotional dimension(i.e. optimism, innovativeness, skepticism and discomfort) that
significantly technology readiness , which in term has significant role in influencing individual
intension to accept to reject a new technology (Chen and li, 2010, Berndt, Saunders and
petzer ,2010;Chan and lin ,2010).

1.4 Objectives of the Study:

Objectives of a project tell us why project has been taken under study. It helps us to know more
about the topic that is being undertaken and helps us to explore future prospects of thetopic.
Basically it tells what all have been studied while making the project.
The various research objectives of the study are:
1. To study the internet banking facilities offered by the banks to its customers
2. To study as to how much internet banking has penetrated in the minds of
thecustomers
3. To gain insights about functioning of internet banking.
4. To explore the future prospects of internet banking.
5. To study the benefits that are provided to the individual under internet banking

1.5 Research Methodology:-

The study is concerned with the banking industry in India. Post-liberalization, privatization and
globalization period has shown transformation in banking industry. Particularly, with the
introduction of IT in banking industry a lot of changes have taken place in public sector banks
but slowly whereas in new private sector banks and foreign banks working in India, these
changes have come at fast pace because these banks are fully computerized by birth. Many
public sector banks are managing transformation manually not through IT channels (due to some
internal and external constraints) but on the other hand new private sector banks and foreign
banks are managing whole process through e-channels. New private sector banks and foreign
banks as compared to public sector banks provide many new products and services.

The study is confined to Indian Banking Industry. Hence, the universe of the study is banking
industry of India. The performance is analyzed on bank, bank group and industry level. Four
bank groups and further four banks from each bank group have been selected for the study. The
study is descriptive and empirical in nature where secondary and primary data is used to address
the objectives. The Indian banking industry was divided into four major bank groups for the
purpose of the required analysis:

Public Sector Banks

(SBI and its Associates-7 and Nationalized Banks - 19) (26 Banks)
Old Private Sector banks (15 Banks)
New Private Sector banks (07 Banks)
Foreign Banks (32 Banks)

1.6 Limitation of Study:-

The major Limitation of the study are:

• A small sample size respondent is taken to primary data analysis. So I cannot draw proper
inferences about the respondent from this sample size
• I have not used modern statistical tools to analysis the data.
• Due to shortage of time I have not been able to make a depth study.
• I could not collect data from out site of new market.
• This study is based on the prevailing respondents’ satisfaction. But their satisfaction may
change according to time, fashion need etc.

1.7 Chapter Plan:-

The study is divided into six chapters with reference:

Chapter-1 Introduction

Chapter-2 Conceptual Framework

Chapter-3 Presentation of Data, Analysis and Findings

Chapter -4 Conclusion

Chapter-5 Bibliography

Chapter-6 Annexures
CHAPTER: 2 CONCEPTUAL
FRAMEWORK
2.1 Concept (Definition, advantages & disadvantages).

Definition:

• Online banking is an electronic payment system that enables customer of a financial

institution to conduct financial transaction 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 other terms.
• Online banking or E-banking is an umbrella term for the process by which a customer
may perform banking transaction electronically without visiting a brick-and-mortar
institution.
• Online banking is the practice of making bank transaction or paying bills via the internet.
Thanks to technology, and the internet in particular, people no longer have to leave the
house to shop, communicate, or even do their banking.

Advantages:

To the customer:
 ➢ Anywhere banking no matter wherever the customer is in the world. Balance enquiry,
request for services, issuing instructions etc., from anywhere in the world is possible.
➢ Anytime Banking-Managing funds in real time and most importantly, 24 hours a day, 7
days a week.
➢ Brings down “Cost of Banking” to the customer over a period of time. ➢ Cash
withdrawal from any bank/ATM.
➢ On-line purchase of goods and services including online payment for the same.

To the Banks:

➢ Innovative, scheme, address competition and present the bank as technology driven in the
banking sector market.
➢ Reduces customer visits to the branch and thereby human intervention.
➢ Inter-branch reconciliation is immediate thereby reducing chances of fraud and
misappropriation.
➢ On-line banking is an effective medium of promotion of various schemes of the bank, a
marketing tool indeed.
➢ Integrated customer data paves way for individualized and customized services.

Disadvantages:
➢ A customer may have to face some risky transactions and frauds.
➢ Failure or interruption of power supply cause to break down in e-banking.
➢ Financial loss of heavy income at times of settlement of higher magnitude.
➢ Cost to be incurred for training the staff may not be profitable.

2.2 Industrial Profile

Without a sound and effective banking system in India it cannot have a healthy economy. The
banking system of India should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and internal factors.

For the past three decades India’s banking system has several outstanding achievements to It’s
credit. The most striking is its extensive reach. It is no longer confined to only metropolitans or
cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners of
the country. This is one of the main reasons of India’s growth process.

The government regular policy for Indian bank since 1969 has paid rich dividends with the
nationalization of 14 major private bank of India.Not a long ago, an account holder had to wait
for hours at the bank countries for getting a draft or for withdrawing his own money. Today, he
has a choice. Gone are days when most efficient bank transferred money from one branch to
another in two days. Now it is simple as instant messaging or dial a pizza. Money have become
the order of the day.
The first bank in India, though conservative, was established in1786 till today, the journey of
Indian Banking System can be segregated into three distinct phases. They are as mentioned
Below:
• Early phase from 1786 to 1969 of Indian Banks.
• Nationalization of Indian Banks and upto 1991 prior to Indian banking sector
reforms.
• New phase of Indian Banking System with the advent of Indian Financial &
BankingSector Reforms after 1991.
The General Bank of India was set up in the year 1786. Next came Bank of Hindustan and
Bengal Bank. The East India Company established Bank of Bengal(1809), Bank of
Bombay(1840) and Bank of Madras(1843) as independent units and called it Presidency Banks.
These three banks were amalgamated in1920 and imperial bank of India was established which
Started as private shareholders banks, mostly European shareholders.
In 1865 Allahabad bank was established and first time exclusively by Indians , Punjab National
Banks Ltd. was set up in 1894 with headquarters at Lahore.Between1906 and 1913, Bank of
India, Central Bank of India, Bank of Baroda, Canara Bank,Indian Bank and Bank of Mysore
were set up. Reserve Bank of India came in 1935.During the first phase of growth was very slow
and banks also experienced periodic failures between 1913 and 1948. There were approximately
1100 banks, mostly small. To streamline the functioning and activities of commercial banks, the
government of India came up with TheBanking Companies Act, 1949 which was later changed
to Banking Regulation Act 1949 as per Amending Act of, 1965(Act No.23 of 1965). Reserve
Bank of India was vested with extensive powers for the supervision of banking in India as the
Central Bank Authority.Government took major steps in this Indian Banking Sector Reform after
independence. In 1955,It nationalized imperial bank of India with extensive banking facilities on
a large scale especially In rural and semi urban are.It formed State Bank of India to act as the
principal agent of RBI and to handle banking transactions of the Union and State Governments
all over the country.Seven banks forming subsidiary of State Bank of India was nationalized in
1960 on 19th july,1969. 14 major commercial banks in the country was nationalized. This phase
has introduced many more products and facilities in the banking sector in its reforms , in 1991 ,
a committee set up by his name which worked for liberalization of banking practices.The country
is flooded with foreign banks and their ATM stations. Efforts are being put to give a satisfactory
service to customers .phone banking and net banking is introduced . the entire system became
more convenient and swift . time is given more importance then money. The financial system of
India has shown a great deal of resilience . it is sheltered from any Crisis triggered by any
external macroeconomics shock as other East Asian countries suffered . this is all due to a
flexible exchange rate regime , the foregin reserves are high , the capital account is not yet fully
convertible , and banks and theur customers have limited faregin exchange exposure.

2.3 Company Profile:

• In early 1990’s more than 7000 branches were using traditional manual procedures.
• Thesemanual procedures wereinherited from the imperial bank.
• Traditionalprocedureswereevolved over decades.
• Very few changes were brought in those procedures as per the need of time.
 • In that time, mainframe or mini computers were used for
MIS,RECONCILLATION& FUND SETTLEMENT PROCESS, or we can say
that for backhand operations purpose.

Changes brought in information Technology by ALLADHABAD BANK:-

• In the next decades internet facility was provided for individuals

• All ALLADHABAD BANK branches were connected and ATM’S were launch
• 2001- KMPG appointed consultant for preparing IT Plan for the bank.
• Later on Core banking proposed by the IT consultancy company.
• All ALLABAD BANK branches were connected and ATM’S were launch
• 2001 – KMPH appointed IT Plan for the bank.
• Later on Core banking proposed by the IT consultancy company.
• 2002 – All branches computerized but on decentralized system , there the
initiative of core Banking took place
• 2008 –more than 6500 branches (95%Of business ) on Core Banking solution
(CBS)
• Internet Banking facility for corporate customers were also launched in early 2008
• More Interfaces developed with e- Commerce &other sites through alternate
channels like ATM&Online Banking
• All Foreign Offices were brought on centralized Solution
• Large Network is playing the role of backbone for connectivity across the country
• Multiple service providers are providing the links –BSNL, MTNL,
Reliance,Tata& Reliance which are making the system errorless and provide high
speed.
• Multiple technologies to support the networking infrastructure-Leased lines,
Dialup, CDMA & VSAT

2.4 NATIONAL SCENARIO OF ONLINE 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
 traditional model of banking i.e. branch based banking was prevalent, but after
that non-branch banking services were started. The Indian Government enacted
the IT Act, 2000, with effect from the 17 th October 2000. To examine different
aspects of internet banking RBI set up a committee on Internet Banking. The
committee has focused on three major area of Internet Banking, Technology and
security issues, legal issues and regulatory and supervisory issues. RBI had
accepted the suggestions and recommendations of the working committee and
accordingly issued guidelines to banks to implement internet banking in India.
The old manual systems which were prevalent in Indian Banking for centuries
seem to replace by modern technologies.

Table no. 1,2 and 3exhibit a few facts and figures related to internet/electronic
banking to present its current scenario. Table 1
Shows evidence for ATM, POS (Point of sale) and electronic cards
(credit& debit cards) deployed and issued by the schedule commercial
bank(SCBs) in India as on December 2014. It also provides evidence of growing
statistics of mobile banking users in India. According to it, currently 1,76,410
ATM,10,58,642 Point of sale devices,20.36 million credit cards and 500 million
debit cards are working in India and 35.5 million bank customers are using mobile
banking .Table also shows growth rate of these banking channels and it seems to
be great in Indian context. Table no. 2 shows current transaction statistics
performed through these banking delivery channels. As high as 6090.98 million
transactions are electronically done through ATM s. Table no. 3 shows NEFT and
RTGS transactions performed in the current financial year 2014-15. Table no. 4
shows the increasing growth interest users.

Table no. 1

Type of internet/electronic No. of channels

Channels

Year Growth in %

2010 2014

No. of ATM deployed (In 60,153 1,76,410 193.27

actual Figure)
 No. of POS deployed in (In 5,95,958 10,58,642 77.64
actual Figure)

No. of CREDIT CARDS 18.33 20.36 11.07

issued (In Millions)

No. of DEBIT CARDS 181.97 500.08 174.81

issued (In Millions)

No. of MOBILE BANKING 5.96 35.5 495.64

users (In Million)

Table no. 2

TRANSACTIONS THROUGH INTERNET / ELECTRONIC BANKING DELIVERY

CHANNELS

No. of transaction (In Million)

Transaction through Growth in %

No. of transaction (In Million)

Transaction through Years* Growth in %

2011-12 2013-14

ATM 5086.17 6090.98 19.76

POS 645.76 1128.12 74.7

CREDIT CARD 320.42 511.99 59.79

DEBIT CARD 5409.45 6707.1 23.99

MOBILE BANKING 25.55 94.6 270.25

Table no.3

NEFT AND RTGS TRANSACTIONS

No. of Transactions (In Millions)

Transaction Type Years* Growth in %

2010-11 2014-15

NEFT 132 927.55 602.69

RTGS 49 92.75 89.29

Source: compiled from Bank wise ATM/POS/CARD STATISTICS, Reserve Bank of

India and Report on Trends and Progress of Banking in India 2010-11 and RBI
website

Table no. 4

INCREASING INTEREST USER IN INDIA

Years

Users 2010 2011 2012 2013 2014

Internet 90,421,849 122,970,441 155,575,944 213,339,324 243,198,922

users

New users 19,486,779 32,548,593 32,605,503 57,763,380 29,859,598

Average 36,452,770

Growth 0% 36% 72% 136% 168%

Source: Internet Live Stats (www.internetlivestats.com)

Internet Banking offers different online services in India. According to a report

 published by RBI there are three different levels of banking services offered through
internet banking.

• The first level i.e. Basic Level Services: It is basically about website which
disseminates information about different services and products offered by banks.
It generally includes receiving and replying to customers’ queries through email.
• The next level i.e. Simple Transactional Website: It allows customers to submit
their instructions applications for different services, queries about their account
balance, etc. but do not allow any fund-based transactions on their accounts.
• The third level i.e. Fully Transactional Website: It allows customers to manage
their accounts, facility of fund transfer, bills payment, ticket booking, avail
facility of other banking products and services and trading in securities etc.

To sustain in the growing competition, commercial banks in India have adopted

several initiatives to improve banking services and to gain competitive advantage.
➢ Bank of India recently launched its card-less cash withdrawal services.
This facility helps customers to send money to anyone using internet
banking or by using ATM, with the help of receiver’s mobile number.
➢ ICICI Bank launched 24*7 electronic banking, which is a non-stop for all
banking transaction. It offers facilities such as cheque deposit machine and
an electronic kiosk through which customers can be accessed internet
banking services. ICICI Bank has also introduced E-Locker for its
customers. It is a virtual locker, which can be accessed through ICICI
internet banking which do46cuments, agreements, policies and various
important certificates.
➢ The banks are making their presence on social media like Facebook and
Twitter for targeting huge customer base as well as potential
customers,there will be round-the-clock tweets and comments on the
banks’ products and services.

2.5 International scenario

 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 type 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 has advent of internet has initiated an electronic revolution in the 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 intermediate’s 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 participants of a
nonfinancial services centric electronic market place. The trends 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 customer’ 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.

2.6 SWOT/SWOC ANALYSIS:-

STRENGTH:
 • Greater reach to customers.
• Quicker time to market.
• Ability to introduce new products and services quickly and successfully.
• Ability to understand its customers’ needs.
• Customers are given access to information easily across any location.
• Greater customer loyalty.
• Easy online application for all accounts, including personal loans and mortgage.
• 24 hours account access.
• Quality customer service with personal attention Weaknesses:

• Lack of awareness among the existing customers regarding online banking.

• Obsolesce of technology take place very soon specially in terms of security on internet.
• Procedure for applying for ID and password for using service related to online banking
takes time
• Lack of knowledge is found regarding in online banking in employees of SBI
• Implementation of newer technology is little bit complicated
• Employees needs training to obtain knowledge regarding internet – banking.
Opportunities:

• Approximately 75% of customers are not using internet banking.

• Core competency can be achieved in terms of banking if focus is made on awareness of
internet banking.
• Can become 1st virtual bank of India.
• Concentration of various services should be made using internet banking
Challenges:

• Maintaining Business Edge over competitors in the context of sameness in IT

infrastructure
• Multiple vender support is necessary for working of highly complex technology •
Maintaining secured IT infrastructure for business operations
• Alternative must be there in case of failure of system.
Chapter-3 PRESENTATION OF DATA, ANALYSIS
AND FINDINGS
 Customers perspection on Online Banking and Traditional Banking

A survey was conducted on online banking in India for the primary data among 25 people. The
analysis of this survey or data is as follows:-

Q1. Do you think online banking is better than traditional Banking?

NO
28%

YES
72%

POLL out of 25: Yes – 72%; No- 28%

FINDINGS: The people understand that online banking is better than the traditional banking
because of its nature.

Q2. Overall, how satisfied are you with our online banking service?

very satisfied
satisfied
neutral
unsatisfied
POLL OUT OF 25:very satisfied-28%; satisfied-40%; neutral-20%; unsatisfied-12%
FINDINGS:Majority of peoples are satisfied with online banking but some peoples are also
very satisfied, neutral, unsatisfied.

Q3. Is Bank –a –net easy to use?

yes
no

POLL OUT OF 25: yes-60%; No-40%

FINDINGS: Majority of people understand that online banking is easy to use because they can
save their time.

Q4. Do you trust the security of online banking service?

52%
51%
50%
49%
48%
47%
46%
YES NO

Poll out of 25: Yes –52%; No – 48%;

FINDINGS: Majority of the people think that their Account is secured, but not all. Their security
concern should be eradicated. This will attract customers.

Q5. How often do you use online banking?

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
WEEKLY MONTHLY REGULARLY RARELY

POLLoutof25: Weekly – 20%; Monthly – 44%; Regularly – 8%; Rarely – 28%

FINDINGS: Most of the people do not need the services of banks regularly or maybe there is no
need. They may transact with the bank on monthly basis for most of the time.

Q6. What type of transaction do you make in online banking?

50%
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
CHECK BALANCES PAYMENTS TRANSFER OF OTHER
FUNDS

POLL out of 25: Check balances – 44%; Payments – 28%; Transfer of fund – 8%;other -20%
FINDINGS: The utility of the online banking is service is not used to the extent is should be
and it is being majorly used for the purpose of checking the balance in the account. The reason
for this is the low volume of transactions among the people.

Q7.Are you aware of net banking services offered by the banks?

Awareness of internet banking services

No
12%

Yes
88%

POLL out of 25: Yes-88%; No-12%

FINDINGS: Itis good for the banks as most of the respondents were aware of the internet
banking and all the services provided under internet banking.

Q8.In which bank do you have your Acccount?

Account in the respective bank

Others
16% SBI
40%
HDFC
20%

PNB
24%

POLL out of 25: HDFC banks-20%; PNB-24%; SBI-40%; Others-16%

FINDINGS:It was witnessed that today public sector bank State bank of India has
the largest customer base but the private banks are also catching up and after State
Bank of India, PNB and HDFC has the highest customer base .Multi-national banks
are also making their presence noticeable in the Indian scenario.

Q9.Are you aware of the methods which can be undertaken to make any kind of
fraud?

Awareness of methods of fraud

Yes
32%

No
68%

POLL out of 25: Yes-32%; No-68%

FINDINGS:It’s pretty tragic but most of the respondents are unaware of the techniques which
can be taken up for any type of fraud.

Q10.Does your bank educate you about the internet banking services being offered?

Educating about internet banking

No
40%

Yes
60%

POLL out of 25: Yes-60%; No-40%

FINDINGS: Most of the respondents felt that they are not properly educated of internet
banking and its benefits to them.

Q11. What benefits do you see in internet banking?

benefits seen by customers

Time Convenience
10% 16%
Speed
21%
Transparency
53%

POLL out of 25: Convenience-16%; Speed-21%; Transparency-53%; Time-10%

FINDINGS:.Most of the respondents felt that the transparency provided by internet

banking is the highest motivating factor for an individual to use internet banking;
rest speed convenience and time are also the other motivating factors.

Q12.Would you prefer using net banking instead of visiting your bank every now
and then?

Prefer using net banking

No
12%

Yes
88%
Poll out of 25: Yes-88%; No-12%

Findings: It was witnessed that most of the respondents preferred using internet
banking over there conventional banking system. Thus, internet banking has a bright
future ahead.

Q13.Are you aware of the benefits of net banking which are available?

Benefits of Internet banking

No
12%

Yes
88%

Poll Out of 25: Yes-88%; No-12%

Findings: It is pretty amazing to see that most of the respondents are

aware of the benefits of internet banking.

Q14.What are main disadvantages of online banking?

Overall Difficulty
Overall Difficulty of using
of using online
No online banking System
banking System
Disadvantage 32% Lack of assistance
40%

Security Concerns
Security Lack of assistance
Concerns 8%
No Disadvantage
20%
Poll Out of 25: Overall difficulty of using online banking System-32%; Lack of assistance-8% ;
Security Concerns-20%; No Disadvantage-40%
Findings:Most of the respondents felt that no disadvantage provided by internet
banking but some people also face problem like Overall difficulty of using online
banking system,Lack of assistance, Security Concerns.

15Q. Are you started to use more net banking after demonetization?
100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%
yes no

Poll out of 25: Yes-12%; No-88%

Findings:Most of the people who are not starting online Banking after
demonetization
CHAPTER: 4 CONCLUSION
From all of these, we have learnt that information technology has empowered customers
and businesses with information needed to make better investment decisions. At the time,
technology is allowing banks to offers new products, operate more efficiently, raise productivity,
expand geographically and compete globally. A more efficient, productive banking industry is
providing services of greater quality and value.

E-Banking is a generic term for delivery of banking services and products through
electronic channels, such as the telephone, the internet, the cell phone, etc. The concept and the
scope of e-banking is still evolving. It facilitates an effective payment and accounting system
thereby enhancing the speed of delivery of banking services considerably. While E-Banking has
improved efficiency and convenience, it has also posed severe challenges to the regulator and
supervisors. Several initiative taken by the government of India, as well as the RBI, have
facilitated the development of e-banking in India. The government of India enacted the IT Act,
2000, which provides legal recognition to electronic transactions and other means of electronic
commerce. The RBI has been preparing to upgrade itself as a regulator and supervisor of the
technologically dominated financial system. It issued guidelines on risks and control in computer
and telecommunication system to all banks, advising them to evaluate the risks inherent in the
system and put in place adequate control mechanism to address the risks. The existing regulatory
framework over banks has also been extended to E-Banking. It covers various issues that fall
within the framework of technology, security standards, and legal and regulatory issues.
 BIBLIOGRAPHY
State Bank of India- www.onlinesbi.com

Punjab National Bank- www.pnbindia.co.in

HDFC BANK- www.hdfcbank.com

Internet Banking in India-Part I- Dr A. K. Mishra

Hsbc bank :- www.hsbc.co.in

THE BUSINESS LINE.

ICICI BANK – www.icicibank.com

Bank netindia- http://www.banknetindia.com/banking/ibkgintro.htm

Ez articles:- http://ezinearticles.com/?A-Brief-History-of-Internet-

Banking&id=353450

Express cmputers:

http://www.expresscomputeronline.com/20020916/indtrend1.shtml

E-finance by Vasant C Joshi,

 ANNEXURES

QUESTIONNAIRE

Dear Respondent,

I am a student of ____________ College; I am doing this research to compare different

services provided by bank to its clients.

1. In which company bank do you have your account?

(a)PNB Bank

(b)State Bank of India

(c)HDFC BANK

(d)Others Bank

2. Do you think online banking is better than traditional banking?

(a)Yes

(b)No
3. Overall, how satisfied are you with our online banking service?

(a) Very satisfied

(b) Satisfied

(c)Neutral

(d) Unsatisfied

4. Is Bank-a-net easy to use?

(a)Yes

(b)No

5. Do you trust the security of online banking service?

(a) Yes

(b) No

6. How often do you use online banking?

(a)Weekly

(b)Monthly

(c)Regularly

(d) Rarely

7. What types of transaction do you make in online banking ?

(a) Check balance

(b)Payment

(c) Transfer of fund

 (d) Other

8. Are you aware of Net Banking services offered by the banks?

(a) Yes

(b) No

9. Are you aware of the methods which can be undertaken to make any kind of fraud?

(a) Yes

(b) No

10. Does your bank educate you about the Net Banking services being offered?

(a) Yes

(b) No

11. What benefits do you see in Internet banking?

(a) Convenience

(b) Speed

(c) Transparency

(d) Time

12. Would you prefer using net banking instead of visiting your bank every now and then?

(a) Yes

(b) No
13.Are you aware of the benefits of net banking which are available?

(a) Yes

(b) No

Q14. What are main disadvantages of online banking?

(a)Overall difficulty of using online banking System

(b) Lack of assistance

(c) Security Concerns

(d) No Disadvantage

Q15. Are you started to use more net banking after demonetization?

(a) Yes

(b) No

Personal Information

Name:

Age:

Sex: ( ) Male ( ) Female

Phone No:

Occupation: