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A Study on Customer’s Predictions Towards E-Banking With Special Reference to Ahmedabad City
Mr. Krupal Acharya1
Abstract
This article’s goal is to examine the state and issues surrounding e-banking in Ahmedabad. One of the most important service industries is the baking sector. The banking sector is currently undergoing a new phase known as e-banking. The old banking system is rapidly being replaced by e-banking. The combination of technological advancements and significant shifts in the communication sector has created a favourable environment for the growth of e-banking. The perception of customers regarding electronic banking is the topic of this paper. A standardized questionnaire was created for this reason, and a sample of Ahmedabad was obtained from the city's public and private banks.
Key Words: E-banking, Customer Perception, Banking Sector, Traditional Banking.
Introduction
The banking industry feeds a country. Any economy's present and future rely on the development and expansion of banking. The foundation of the nation and its people is Indian banking. The Indian banking sector is currently at the centre of the revolution in information technology. The increase in overall banking automation within the Indian banking system can be attributed to the competition between banks. "Delivery of bank's services to a client at his workplace or home by exploitation of electronic technology will be termed as Electronic Banking," is how electronic banking is defined.
Online, web, or e-banking banking allows the buyers of financial transactions to do so on a secure website run by the business—which could be a retail bank, virtual bank, banking company or savings and loan. The privileged services overed under E- banking includes of;
1 Faculty and Research Scholar, Department of Management, Government B.B.A. College (SFI), Maninagar.
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The scope and perception of online banking are still expanding. It significantly speeds up the delivery of banking services by facilitating an efficient payment and accounting system.
A thriving E - banking offers:
Free monthly checking, free bill payment, and ATM rebates
Overcharges Low-rate credit cards
Simple online applications for all types of accounts, such as mortgages and personal loans, and round-the-clock account access
Excellent customer service with individualised attention
Advantages afore command by massive money establishments have contracted significantly (Kirti Thakkar, October-December 2019)Internet Banking Mobile Banking
Automatic Teller Machine Debit Card
Credit Card Smart Card Tele Banking Point of Sale
Electronic Data Interchange E-cheque
Electronic Fund Transfer Telephone Banking
electronic Clearing System
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Difference Between Traditional Banking and E- Banking
The physical presence of traditional banks serves their clientele. However, since services are offered online, e-banking does not have a physical location.
Because consumers must visit banks to complete transactions, traditional banking takes a lot of time. Because users of e-banking do not need to visit banks in order to check their balances or transfer money between accounts, it saves time.
Consumers with a computer and internet access can easily access their accounts from any location.
In the old days of banking, customers could only visit banks during business hours.
In contrast, 24-hour access to e-banking is possible at any time.
Customers who travel frequently in the traditional banking system often don't give their finances much thought. On the other hand, e-banking users who take frequent international trips have more financial control.
To visit a bank in the traditional sense, customers must spend money. Customers of online banking, however, do not make purchases to visit banks. They have the option of paying the bill electronically, straight from their account to the merchant, or avoiding bank fees that are reversible for specific teller transactions.
The use of e-banking reduces postage costs.
Traditional banks bear a large amount of fixed and operating costs. Since banks don't have a physical presence, these expenses are eliminated with online banking.
Few clients can be served at once by bank employees and clerical staff in traditional banks. With online banking, clients can complete some bank transactions without having to wait in line.
In traditional banking, customers can interact in person. Customers using e- banking, however, are limited to electronic communication.
Challenges Faced by E-Banking
Literature Review
(Mrs. Namitha Krishnan, 2020) conduct research on “A study on customer’s problems and prospects towards e-banking with special reference to Palakkad district, Kerala”
This paper talks about why e-banking is awfully a trustworthy approach to deal with Challangs
Faced by E- Banking Traditional
Banking Habits
Security
Transaction Difficulty Technical
Issue Small Budgets
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funds. Internet banking offers great value in terms of handiness, customer intimacy, time saving, inexpensiveness and consistency in banking. Regardless of a few disadvantages, E-banking is a much recommended, new know-how.
(Bhai.P.S, 2018) survey on "Indian E-Banking: Issues and Opportunities" This paper aims to investigate and evaluate the issues and potential of electronic banking in India.
(Lavuri, May 2018) conducted a study on "Public and Private Banks' Perceptions of E- Banking Services." Understanding aspects of E-banking services, motivational factors, and issues related to E-banking services are necessary to comprehend customer perception of E-banking services toward the banking sector. The goal of the current research paper is to determine the levels of customer perception.
(Francis Onuman, 2016) researched on “Prospects and Challenges of Electronic Banking in Société Generale Ghana Limited: Evidence from Accra Metropolis” The results revealed that about 97% of respondents used E-banking products. These products include: ATM, text message, internet. Electronic mail, and Telephone. ATM is most popular Ebanking products used by the respondents. The study further revealed the following benefits which the respondents derived from the use of E-banking products: saving of time, quickness in banking transactions, easy access to account details and reduction of long queues in banking halls.
(Mayur Rao, Mar-22) conducted research on "Views on Issues and Future Potential of E-Banking." The only people who can use the E-Banking services are customers, and they fully integrate with the current core banking system. This paper aims to investigate and evaluate the issues and potential of electronic banking.
(Kirti Thakkar V. , Dec-19) According to a survey on "Challenges and Opportunities of E-Banking in India," online banking has many advantages that increase customer satisfaction by enabling banks to provide higher-quality services while also giving them a competitive edge over rivals.
(Singh, 2014) made a study on “Critical Success Factors In E-Banking: An Indian Perspective”The top three elements that are essential to success of e-banking included:
cost and promotion; security and privacy; ease of use. Apart from these banks need to pay attention towards enhancing of its services and developing simpler websites with useful content.
Objective of the Study
1. To study the customer prediction regarding e-banking.
2. To find out the benefits of online banking to customers.
3. To study challenges that appeared in e-banking.
4. To suggest the improvement of e-banking.
Methodology
The study's focus is on how customers anticipate using online banking services from public and private banks. To that end, primary and secondary data were gathered from sample customers in Ahmedabad using a carefully thought-out questionnaire. To conduct a literature review, secondary data were gathered from journals and research articles. For the study, the convenience sampling method is employed. There are fifty
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respondents in the sample. The information was examined using Microsoft Excel. A table was used to display the data.
Results and Analysis
1. Demographic
Table 1 Gender
Male Female Total No. of responses %
No. of responses % No. of responses %
22 44 28 56 50 100
Table 1.1 Age
18-24 25-35 36-44 45-55 56 ABOVE No. of
responses % No. of
responses % No. of
responses % No. of
responses % No. of
responses % No. of responses %
30 60 14 28 4 8 2 4 0 0 50 100
The demographic profile of the chosen Ahmedabad city online banking users is displayed in Tables 1 and 1.1 above. In the Ahmedabad region, 60% of customers between the ages of 18 and 24 use e-banking services. Fifty-six percent of all respondents are women.
2. Use of Internet Banking
Table 2 Use of E-
banking
Strongly
Agree Agree Not Certain Disagree Strongly
Disagree No. of
responses % No. of
responses % No. of
responses % No. of
responses % No. of responses % Transaction
through internet is secure
15 30 19 38 12 24 2 4 2 4
The cost of e-banking services is lower than that of other banking services.
10 20 12 46 11 22 5 10 1 2
The processes for
conducting transactions through e- banking are
12 24 27 54 8 16 1 2 2 4
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and easy.
Banks provide sufficient details regarding online banking.
6 12 27 54 8 16 7 14 2 4
E-banking is less convenient than
manual banking.
6 12 8 16 13 26 16 32 7 14
human contact is important for banking relation
10 20 12 24 11 22 14 28 3 6
entered my personal data is protected during the process
7 14 17 34 16 32 8 16 2 4
In terms of efficiency, e-banking outperforms branch banking.
13 26 23 46 8 16 4 8 2 4
Because it removes the risk of carrying cash, it is convenient.
15 30 23 46 5 10 6 12 1 2
satisfied with E-
banking 18 36 24 48 4 8 2 4 2 4
The awareness of online banking among a selected group of customers is displayed in Table 2. It was found that 38% of respondents concur that online transactions are safe. E- banking services are less expensive, according to 46% of respondents. A majority of 54%
of participants concur that the process is simple. Of those surveyed, 54% believe they know enough about online banking. 32% of respondents said they were against manual banking.
The claim that interpersonal relationships are crucial for e-banking relationships is
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rejected by 28% of respondents. Because they believe their data won't be disclosed while using e-banking services, 34% of respondents are satisfied. Of those surveyed, 46% concur that online banking is more efficient. 46% of respondents concur that using e-banking removes the danger of carrying cash. 48% of people are satisfied with e-banking services.
3. Limitations of Using E-banking
Table 3 Limitations Strongly
Agree Agree Not Certain Disagree Strongly
Disagree No. of
responses % No. of
responses % No. of
responses % No. of
responses % No. of responses % problem
about E- banking service, banks provide
support
6 12 15 30 19 38 6 12 4 8
Inadequate understanding of online banking
1 2 6 12 13 26 15 30 15 30
E-banking is complicated
to use 1 2 5 10 15 30 21 42 8 16
E-banking requires little work on your part.
5 10 23 46 10 20 8 16 4 8
Possess knowledge regarding the E-banking transaction
9 18 24 48 10 20 5 10 2 4
E-banking transactions are complex
1 2 7 14 19 38 13 26 10 20
The issues that the customers have are listed in Table 3. 38% of respondents are unclear about the issue with support and services provided by banks.Thirty percent of respondents said they didn't know enough about online banking. 42% of participants refute the claim that using e-banking is difficult. According to 46% of respondents, using e-banking just requires minimal work. 38% of those surveyed are unsure about how complicated transactions can be.
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Conclusion
The Indian economy is developed through banking transactions. Therefore, the digital- based transaction should be accessible to and used by everyone. To educate the public about the advantages of electronic transactions, the government must occasionally devote more resources to financial literacy campaigns. App-based digital transfers have changed people's behavior and aided in the uptake of the E-banking system. Customers of today expect concern and commitment; they will not settle for simple politeness and care. Thus, it is imperative that we adopt a customer-centric approach today. Only the "Best" will prevail in this cutthroat environment, not the oldest, not the strongest, or the first. As a result, using contemporary technology to provide better service is essential. Despite being aware of E-banking services, respondents were concerned about their personal information. They are concerned about the safety of the E-banking platform. So, by providing a more secure service to customers and also educating users of the E-banking service, the customer's use of e-banking increases significantly. Users of E-banking services will increase as security improves. There is no doubt that everyone uses E-banking services because they provide better service. It will promote cashless transactions in the banking industry.
References
D. L. Bhai.p.s. (2018). E-banking in India - problems and prospects. The IJCESR is an international journal of current scientific and engineering research.
Francis D. B. Onuman (2016). Evidence from the city of Accra highlights the potential of Societé Generale Ghana Limited's electronic banking as well as its challenges.
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V. Kirti Takkar (Dec. 19). The advantages and disadvantages of online banking in India.
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Lavuri, R. (2018 May). An analysis of how customers view online banking services across public and private banks. International Journal of Engineering Technology and Applied Science Research (ijraset).
P. A. Mayur Rao (Mar. 22). Views on the drawbacks and future potential of online banking.
International journal for science, engineering, and management research.
Mrs. D. S. Namitha Krishnan (2020). An investigation into the issues and future potential of online banking, specifically focusing on the Palakkad district of Kerala.
Kozhikode's Indian Institute of Management 2020—the fourth international conference on technology, society, and marketing.
M. M. Singh (2014). Indian perspective on critical success factors in e-banking.
International Journal of Technology and Management Science Research.
