A STUDY OF CONSUMER SATISFAC
TION REGARDING INTERNET BANK
ING
INTERNET BANKING
Electronic payment system
Enables customers to conduct a range of financial
transactions
Part of the core banking system operated by a bank
contrast to branch banking which was the traditional
way customers accessed banking services
“Virtual banks" (or “direct banks”) have only an internet
presence, which enables them to lower costs than tradition
al brick-and-mortar banks
BACKGROUND TO THE
STUDY
Customer satisfaction
Customer satisfaction is a measure of how products and
services supplied by a company meet a surpass customer
expectation.
Customer satisfaction is also defined as “ the number of
customer, or percentage of total customers, whose reported
experience with a firm, its products or its services (ratings)
exceeds specified satisfaction goal”.
CONT…
Technology is making a tremendous impact upon banks
in a general and the financial services is no exception. The
application of information and communication technology
concepts techniques, policies and implementation strategies
to banking services has become a subject of fundamentals
importance and concerns to all banks and indeed a
prerequisite for local and global competitiveness in banking
industry. As a result of this technological improvement
business environment in financial sector is extremely
dynamic and experience rapid changes and demand banks
to serve their customers through the use of internet.
CONT…
But the technology is creating issues
Machine out of order
Machine out of cash
No printing statements
Cards get blocked
Frequent breakdown of ATM services; etc.
Due to all these problems it has created doubts in the m
inds of customers thereby affecting their level of satisfa
ction.
OBJECTIVE
The following are the objectives of this study:
To examine the components of internet banking
To examine the impact of internet banking on customer’s
satisfaction
To determine the factors limiting the use of internet bank
ing
SIGNIFICANCE OF THE STUDY
The following are the significance of the study :
Outcome of this study will be useful guide for the
management of banks at determining the impact if
internet banking on customer satisfaction
This research will also serve as a resource base to
other scholars and researchers interested in carrying
out further research in this field subsequently, if applied
will go to an extent to provide new explanation to the
topic
LIMITATION OF THE STUDY
This study on the impact of internet banking on customer
satisfaction will cover all the components of internet
banking with a careful examination of its impact on
customer’s satisfaction.\
Financial constraint – Insufficient fund tends to
impact the efficiency of the researcher in sourcing for
the relevant materials, literature or information and in
the process of data collection (internet, questionnaire
and interview)
Time constraint – The researcher will simultaneously
engage in this study with other academic work. This
consequently will cut down on the time developed for
the research work
CONT…
There may be some bias in the response of the
respondents which cannot be ruled out fully
Sudden change in internet banking policies can effect
the results
The study is limit to areas of Delhi NCR only
As the study is based on a sample, therefore, the
findings may not reveal the factual information about
the topic
LITERATURE REVIEW
Internet banking has gained higher acceptance from the
customers who are highly supportive of new technology.
Internet banking acts as a kind of financial intermediation
which makes transaction through Internet (Ahanger, 2011).
In the banking industry, Internet banking is the industry
which uses computer technology to provide better services
to customers and help in the development of banking
practices (Rahmath and Hema, 2010).
CONT…
Technological innovations are one of the effective ways to
increase the level of service quality to satisfy customer
needs. Through the advanced technology and innovation in
the financial and banking sectors, Internet banking has
become more familiar to the customers of traditional banks
(Acharya et al., 2008). Internet banking is offered by the
retail banking in many developed countries and customers
can make transactions without having to leave their homes
or workplace (Munusamy et al., 2010).
CONT…
In Internet banking, e-service quality is important to the
banks because it will affect customer satisfaction. Zhao and
Saha, (2005) have identify the nine dimensions of e-service
quality. According to Nupur (2010), a partial of the service
quality dimension showed a significant relationship with
customer satisfaction .
Web Design and Content Web design is an important
elements to attract the usage of Internet banking and the
importance of web design will be reflected in the customers’
satisfaction level (Ahmad and Al-Zu’bi, 2011).Thus, it will
pose a positive significant impact on customer satisfaction.
CONT…
Furthermore, the basic requirements for a good web design
should include a good screen layout and design, clear
graphics and vibrant color configuration (Ahmad and
AlZu’bi, 2011). Websites are an important factor in a bank’s
marketing and communications activities with customers.
CONCEPTUAL FRAMEWORK
Customer service
Web design
Satisfaction Assurance
Preferential treatment
Information provision
METHODOLOGY
Research Methodology
We will do the exploratory research because here we want
to know the satisfaction level of customer towards internet
banking services
Research Design
Population: The population include the people of different
cities who are using internet banking services
CONT…
Sample size:
The sample size should be around 5000
Sample Technique:
we will take simple random sampling because popula
tion is too large
CONT…
Collection Instrument & Procedure:
We will try to collect sample through online survey after
the do use Internet banking services
Data analysis method:
Data type is Nominal & ordinal so for this survey we will
use Chi-square method.
RECOMMENDATIONS AND
SUGGESTIONS
Give proper training to customers for using e- banking
Create a trust in mind of customers towards security of
their accounts
Prompt dealing with the customers and speedy transactions
without harassing them
Time to time seminars should be arranged in different area
about news norms & facilities
IMPACT OF INTERNET
BANKING ON CUSTOMER
SATISFACTION
Trust
Service Quality
Perceived Ease of Use
Perceived Usefulness
Business Performance
CONCLUSION
The satisfaction level of people who is using internet
Banking services are extremely good
Mostly Youth and Business man are using Internet
Banking services
Despite of so many advantages of Online Banking
services, still people consider it as an alternative for
analyzing their bank records