Business Research Methods CCE-2

Classs : F.Y M.M.S

DIVISION : MHO

Group : 13

Title of Study: A Study on the customer perception

towards e-banking facilities.

Roll NO: M2224042

M2224043
M2224074
M2224077
M2123135
 Research Proposal :

Title: A Study on the customer perception towards e-

banking facilities

I. INTRODUCTION

In the present scenario online services have become an added feature in

the banking sector. Online banking or Internet banking allows customers to conduct
financial transactions on a secure website. Credit goes to internet that provided ultimate ease
to the customers at their door step. Online banking allows people to perform all the banking
related activities such as money transfer, past transactional information, cash withdrawals
and deposits etc with a just one click of a mouse. Clients can easily check the account balance
every day just by visiting the website of their bank. This provides the place and time utility
to people provided if one has Internet access. Online banking also eliminates unnecessary
waste, which an organization incurs in the form of office supplies.
This facet has also helped in meeting the social concerns. However, using internet for
money transaction is never been free from risk. More importantly, security is always been an
issue with Internet transactions. Despite several counter measures taken by the banks in the
form of information encryption, firewalls, encoding etc but still reluctance prevails in
relaying totally at online banking especially in developing countries like India.
This led to the foundation of this study. The core purpose of this research study was to
figure out the most critical factors having an impact on consumer perception towards online
banking in India with the help of Technology Acceptance Model (TAM)(Davis and
Venkatesh, 1996; Davis et al., 1989). Online banking was introduced in the 80’s but its growth
across the globe took place in the 90’s. Europe has been and still is the leader in Online
banking technology and usage (Schneider, 2001). In Hyderabad city, many of banks
introduce online banking. By introducing online banking, its help to build reputation and
increasing the customers towards banks.
Online banking, also known as internet banking, e-banking or virtual banking, is an
electronic payment system that enables customers of a bank or other financial institution to
conduct a range of financial transactions through the financial institution's website. The
online banking system will typically connect to or be part of the core banking system
operated by a bank and is in contrast to branch banking which was the traditional way
customers accessed banking services.
To access a financial institution's online banking facility, a customer with internet access will
need to register with the institution for the service, and set up a password and other
credentials for customer verification. The credentials for online banking is normally not the
same as for telephone or mobile banking
. Financial institutions now routinely allocate customers numbers, whether or not customers
have indicated an intention to access their online banking facility. Customer numbers are
normally not the same as account numbers, because a number of customer accounts can be
linked to the one customer number.
Technically, the customer number can be linked to any account with the financial
institution that the customer controls, though the financial institution may limit the range of
accounts that may be accessed to, say, cheque, savings, loan, credit card and similar accounts.
International Journal for Research in Applied Science & Engineering Technology (IJRASET)
ISSN: 2321-9653; IC Value: 45.98; SJ Impact Factor: 6.887 Volume 6 Issue V, May 2018-
Available at www.ijraset.com 632 ©IJRASET: All Rights are Reserved II. REVIEW OF
LITERATURE A literature review is an evaluative report of information found in the
literature related to selected area of study. The review should describe, summarize, evaluate
and clarify this literature. It gives a theoretical base for the research and helps the author to
determine the nature of the research.
1) Jadhav Anil (2004) described various channels of e-banking services such as ATM,
Telephone banking (Tele-banking), Mobile banking, Internet banking and its features. The
focus is also given on e-banking opportunities, challenges and security aspects while
performing the banking transactions on the internet. Comparison of public, private,
foreign and co-operative banks and barriers to the growth of e-banking in India are also
discussed. Finally the paper discusses an overview of the major private sector banks such
as ICICI banks which provides e-banking services.
2) Heber Raveendranath (2004) described that the advancements made in computing.
Banks are developing alternative channels of delivery like ATM, telebanking, remote
access, internet banking etc.
3) Janeetal (2004) stated that Online banking requires perhaps the most consumer
involvement, as it requires the consumer to maintain and regularly interact with
additional technology (a computer and an Internet connection).
4) Uppal R.K (2007) the study concludes that the customers of e banks are satisfied with the
different e-channels and their services in the spread of e banking services. It also suggests
some measures to make e banking service more effective in the future. The present study is
mainly concerned with the Indian banking industry in general and particular those banks
that are producing service through e-channels.
5) Safeena (2010) determined the consumer attitude on internet banking adoption. Finding
shows that perceived usefulness, perceived ease of use, consumer awareness and perceived
risk are the important determinants of online banking adoption and have strong and
positive effect on customers to accept the online banking system.
6) Uppal, R.K (2011) threw light on growth of information technology in various banks. The
objective of this research is to analyze the extent of technological developments in various
bank groups. Findings shows as compared to new private sector banks and foreign banks,
in public sector banks very less IT has taken place. The maximum technology is taking
place in new generation private sector banks and foreign.
7) Rao, K. Rama Mohana and Lakew, Tekeste Berhanu (2011) examines the service quality
perceptions of customers of public sector and private sector banks in the city of
Visakhapatnam, India. The author reveals that the Reliability and Assurance dimensions of
service quality scored the highest ratings while the Tangibles dimension got the lowest
score.
Moreover, the study found a strong dissimilarity in service quality perceptions between
customers of private sector and public sector banks.
8) Dharma lingam, S. Anand Kannan. V. (2012) evaluated the service quality in retail
banking in the Tamil Nadu, based on different levels of customers’ perception regarding
service quality. Data are collected from Three Private Banks, i.e. ICICI, AXIS and HDFC
Bank. Sample size of this research is 240. The result indicates that customers’ perception
is highest in the tangibles area and lowest in the Product Variety area.
9) Bahl, Sarita, (2013) determined that security and privacy issues are the big issue in
e-banking. If security and privacy issues resolved, the future of electronic banking can be
very prosperous.

III. OBJECTIVES
The main objective of this study is to examine the perception level of customers HDFC
bank in Hyderabad. In addition, the study's objective was accomplished through the
following objectives: A. To study the Socio -economic structure of demographical
respondents of Public and private banks B. To study the perception level of customers
towards E- banking services of Public and private banks C. To analyse the motivational
factors influenced on customer perception towards Public and private banks D. To identify
the problems faced customers towards E-banking services of Public and private banks

IV. TESTING OF HYPOTHESIS

The following are the hypothesis designed with above objectives
1) Ho1 : There is no significant difference in the mean variances in the study banks with
regard to the Source information, online services, E-banking services, problems faced
with E-banking, problems faced with E-banking, and motivational factor.

V. METHODOLOGY
The study is concerned with the customer perception towards online banking services of
Public and private banks based on that, both primary data and secondary data, the primary
data were collected directly from the sample customers through a well devised
questionnaire in Hyderabad city. Secondary data were collected from books, journals,
research articles and magazines for the purpose of review of literature. Convenience
Sampling method is used for the study. The sample size of the bank customers is 169.The
data analyzed by using percentage method, Independent sample t- test method used for data
analysis. Data was presented in the form of tables.

VI. SAMPLING DESIGN

Convenience sampling method used for the study. The study is conformed to only
Hyderabad city and the sampling unit is selected from the Public and private banks i.e. SBI
Bank and ICICI Bank in selected area. For understanding the influence of E-banking services
determinants on the customers towards selected public and private banks. The researcher
decided to select a sample size of 169 respondents from Public and private banks , those are
SBI Bank(85 respondents) and ICIC Bank (84 respondents) in selected area. The processing,
classification, tabulation, analysis and interpretation of the data are done with the help of
SPSS 20.0 Version, the followed statistical techniques have been applied depending on the
nature of the data collected from the respondents, Independent sample t- test method was
used.
From the Table 1, it shown that the questionnaire is tested for its reliability and presented
the results here under. The questionnaire developed is pretested and validated through face
validity as it was sent to a carefully selected sample of experts and it also has a sufficiently
good reliability score. The result given the value of the as 0.783. It indicates that, the data has
a high reliability and validity.
Summary Item Statistics: It is evident that the summary of the means, variances, covariance
and inter-item correlations are presented in the following table.

It is obvious the minimum and maximum mean, Range, and variance values for item
means, item variances are positive. Maximum mean is witnessed for Item means is 4.642.
Maximum variance is 2.313, maximum inter item covariance is witnessed is 1.452 and
maximum
inter-item covariance is found to be .811
. Demographic Variables: The frequency distribution of demographic variables is
presented in the following table.
The descriptive analysis of all the demographical variables is shown in the Table 4, from
that more than 37% of respondents in the group of 31-40 years and 34% of respondents in the
group of 21-30 years, followed by 65% of the respondents belonged male and 34% of
respondents belonged female, and 29% of respondents studied PG and with followed 26%
of respondents studied degree, 39% of respondents working as a Private Employees, 31% are
the students, and 31% of respondents earned Rs.20,001-30,000 for month and 23% of
respondents earned above Rs.40,001 respectively.

A. Independent Sample T- Test The Independent Samples t Test compares the means of two
independent groups in order to determine whether there is statistical evidence that the
associated population means are significantly different. The Independent Samples t Test is a
parametric test.
The Mean, Standard Deviation and Standard Error Means of the SBI bank against the
dimension of Source of information, are found to be 3.6787, .67283, .and .08487, and for ICICI
bank with 3.7586, .62733, and .08002 respectively. Similarly, the Mean, Standard Deviation
and Standard Error Means of the SBI bank against the dimension of online services, are
found to be 3.8548, .68680, and .08573, and for ICICI bank with 3.9900, .69499, and .08869
respectively.
With respect to E-banking services, the Mean, Standard Deviation and Standard Error Means
of the SBI are found to be 4.3684, .31653and .04484, and for ICICI bank with 4.4265, .32613and
.04484 respectively. With regard to problems faced with E-banking, the Mean, Standard
Deviation and Standard Error Means of the SBI are found to be 4.1274, .39766, and .05402 and
for ICICI bank with 3.9778, .42738 and .05865 respectively.
With regard to motivational factor, the Mean, Standard Deviation and Standard Error Means
of the SBI are found to be 3.8784, .44768 and .05814 and for ICICI bank with 3.9394, .41524 and
.04563 respectively. Since, there are differences in the mean values and Standard deviations
in the responses of two study banks, with respect to different dimensions, Levine’s for
equality of variances and ‘ t’ test for equality of means are conducted with the following
hypothesis, and results are furnished in the following table. Ho: There is no significant
difference in the mean variances in the study banks with regard to the Source information,
online services, E-banking services, problems faced with E-banking, problems faced with
E-banking, and motivational factor.

LIMITATION
A. As the geographical area of the study is limited to Hyderabad area only, Hence
the findings and conclusion has its own limitations.
B. A convenience sample method was used for the data collection, which makes the
results not readily generalizable
C. The study carried out to understand the customer performance towards E-banking
of Public and private banks in Hyderabad city.

CONCLUSION
The major theme of the research was to study consumer perception on E-banking services
towards Public and private banks in the Hyderabad city. There are four major objective and
data collected with through questionnaire. It was analysed by the percentages and
Independent sample t- test . As per the results 37% of respondents in the group of 31-40
years and 34% of respondents in the group of 21-30 years, followed by 65% of the
respondents belonged male and 34% of respondents belonged female, and 29% of
respondents studied PG and with followed 26% of respondents studied degree, 39% of
respondents working as a Private Employees, 31% are the students, and 31% of respondents
earned Rs.20,001-30,000 for month and 23% of respondents earned above Rs.40,001
respectively.. The results of the Independent sample t- test from that there are no significant
difference between public and private banks with respect all dimensions of E- banking
services. finally no difference were found in the perceptions of customers of public and
private banks.