1018am - 72.EPRA JOURNALS 10728

SJIF Impact Factor 2022: 8.197| ISI I.F. Value: 1.241| Journal DOI: 10.
36713/epra2016 ISSN: 2455-7838(Online)

EPRA International Journal of Research and Development (IJRD)
Volume: 7 | Issue: 6 | June 2022 - Peer Reviewed Journal
CUSTOMER PERCEPTION TOWARDS E-BANKING SERVICES

IN SELECTED PUBLIC SECTOR BANKS – A STUDY IN
BALASORE DISTRICT OF ODISHA
Aumkar Prasad
Ph.D. Research Scholar, Department of Business Administration, Berhampur University, Odisha
ABSTRACT
Banking is a highly information-intensive activity that relies heavily on information technology (IT) to acquire, process, and deliver
information to all relevant customers. Banks used Internet technology as a strategic weapon to revolutionize the way they operate,
deliver, and compete against each other. As a result, E-Banking was introduced as a channel where bank customers could perform
their financial transactions electronically via their banks’ Web sites. In this study, an analysis of the differences in risk perceptions
between bank customers using E-Banking and those not using E-Banking was done and it showed that risk perceptions in terms of
financial, psychological, and safety risks among customers not using the internet were more meaningful than those using E-
Banking. Customers not preferring to use E-Banking thought that they would be swindled when using this service, and therefore, are
particularly careful about high-risk expectations during money transfers from and between accounts. In the present paper, efforts
have been made to study the satisfaction level of the customers as well as the perception of the customers towards E-Banking services
rendered by the public sector banks in the Balasore district of Odisha.
KEY WORDS: Information Technology, Customer satisfaction, Public Sector Banks, E-banking, Customer responsiveness
1. INTRODUCTION as the Internet and telecommunications systems enable the

E-banking is an umbrella term by which a customer development of electronic commerce at a global level. The
can carry out simple and advanced transactions electronically nearly universal connectivity which the Internet offers has
without a brick-and-mortar model. The term includes using made it an invaluable business tool. These developments have
ATMs, telephone transactions, and also a website which does created a new type of economy, which many call the “digital
not entail the physical presence of the customer in the physical economy”. This fast-emerging economy is bringing with it
environment of a bank. Though e-banking has been in India rapidly changing technologies, increasing knowledge intensity
for over a decade now Internet has brought about in all areas of business, and creating virtual supply chains and
unprecedented changes in the banking sector. There is a new forms of business and service delivery channels such as
significant growth in e-banking and e-banking transactions E-banking.
which signals a huge increase in business potential Technology has become more accessible, cheaper, and
opportunities. Banks need to have a long-term view of easier to use, which has a major impact on the world’s trade
customer acquisition goals and expected business growth to and commerce. With the introduction of the Internet and the
build a long-term view of the server technology to be adopted. World Wide Web, companies recognized IT as a tool to do
A recent study by the Boston Consulting Group (BCG) business while consumers acknowledged it as not only an
estimates that e-commerce spending would grow to $60-70 opportunity to purchase goods over the internet and services
billion in the next three-four years, from $16-17 billion now. but also to obtain information. It has also changed the way of
Further Indian digital banking survey conducted by the Boston doing banking transactions. It creates new products, service
Consulting Group, indicates that usage of Internet Banking market opportunities, and better service output. Technology
and Mobile Banking had gone up but remains limited. The adoption by the banks has enabled the use of different
percentage of customers using internet banking with PSU technology tools in banking, which enable the bank to reduce
bank accounts had gone up by 0.14 percentage points to 2.64 transaction costs, save money, and also save more time. It is
percent in 2015, while for Private bank accounts; the categorized as electronic banking.
corresponding number had gone up by 0.33 percentage points Only 37% of Indian Internet users come from the Top
to 24.21 percent. 10 cities i.e., Mumbai, Bangalore, Delhi, Calcutta, Chennai,
The fast-advancing global information infrastructure Pune, Hyderabad, Ahmedabad, Surat, and Nagpur. Another
including information technology and computer networks such day and another number. As per IAMAI and I-cube, the
2022 EPRA IJRD | Journal DOI: https://doi.org/10.36713/epra2016 | www.eprajournals.com |398 |

SJIF Impact Factor 2022: 8.197| ISI I.F. Value: 1.241| Journal DOI: 10.36713/epra2016 ISSN: 2455-7838(Online)
number of active Internet users (i.e., ones who log on to the reference to Mysuru City”, the study indicates service and
Internet at least once a month) is now 32 million and the employee commitment are very important for customer
number who have used the Internet at least once stands at 46 satisfaction. This study focused on two important parameters
million. The maximum of the person who is going on internet like service and employee commitment. A structured
banking lies in the age bracket of 26- 35. But the rises in the questionnaire is distributed to customers to know their
age the level of users becomes low. For Electronic Banking, responses on employee commitment and service. From the
the numbers were even fewer as only 0.62 percent of PSU study, it is very clear that the service has a major role in
bank account holders used E-Banking in 2015 as compared to providing customer satisfaction. The banks have provided
0.55 percent in 2014 while Private Banks saw 11.73 percent of very good ATM facility, E-banking facility, phone banking
their customers use Electronic Banking, an increase of 2.05 facility, plastic money facility, good interest on loans, and
percentage points. According to (Sahoo & Pati, 2020) it has other financial facilities which is satisfying customers.
been found that very few customers are there who are aware Employee commitment is also playing a major role in
of the usage of ICT for availing banking services The reason customer satisfaction, how employees respond to the problems
is a lack of awareness and fear among customers. Though of the customer is also very important for customer
there is an enormous opportunity for growth in the banking satisfaction but our study indicates somewhere the employees
sector due to the implementation of e-banking technology in are failed to solve the problems of the customers. The
India, again online banking poses natural barriers for banks problems identified in this research are the customers are
such as KYC issues and the mandatory need to have an finding a problem with locker facilities and employee
account. That ease of banking has not been provided yet and commitment to solving customer satisfaction. Further research
the banks need to be more stringent while dealing with money can be carried out in-depth to understand the factors
as a commodity. influencing customer satisfaction towards private banks. Ms.
Fozia (2013), “A Comparative Study of Customer Perception
2. LITERATURE REVIEW toward E-banking Services Provided by Selected Private &
Anita Singh and Timira Shukla (2016), “E-Banking: A Public Sector Bank in India”, this study has analyzed the
Study of Employees‟ Views on Its Efficacy”, this study overall perception of customers regarding the services of E-
concluded from the above study that there are many teething Banking. Age and occupation are the important demographic
issues related to technology implementation in the banking factors in the banks that have been used to measure the
sector. The public sector banks have earmarked budgets for perception of the customers of e-banking services. E-Banking
employee training and development and have set up dedicated will be successful for banks only when they have a
training centers but there is a gap between management view Commitment to e-Banking along with a deeper understanding
and employees‟ views as elucidated in the discussion. In the of customer needs. This can come only when the bank has a
era of increased competition, banks need to have efficient very big base of customers, the best people, and a service
manpower that can keep pace with changing times. Training is attitude. Banks should concentrate on the above lines to have
an important sub-system in the banking organizational system, effective e-banking practices The study concluded that
which has its prime objective of the development of different age group of customers have different perception
employees at all levels, for contributing towards toward the e-banking services and the usage level of these
organizational effectiveness. The study has provided an bank’s customer is different so the bank should concentrate on
insight into the employee expectations from the bank. B. all the age group of customers for betterment of e-banking
Raghavendra and P. Sravan Kumar (2016), “Customers banks. It has also been seen that different occupation groups
Satisfaction towards Internet Banking Services (A Study of customers have different perceptions of e-banking services.
Focused on Public Sector Banks in Rayalaseema Region)”, There is a good number of customers in every group like a
The study focused on select public sector banks and customer student, service class, business class, and professionals, which
opinion from one region which has common social shows that they all are keenly interested in using the e-banking
background resulting that the prompt response, confidentiality, services. Dr. K. Alagarsamy and S. Wilson (2013), “A Study
web site design and ease of use factors that affect customer on Customer Behaviour towards Banking Services with
satisfaction. The customer’s gender, age, education, and special reference to Public Sector Banks in Sivagangai
income levels influence customer satisfaction. The usage of District”, this study argue for the banking sector challenging
up-to-date information and technologies for customer and tough job for the bankers in retaining the existing
communication enhances customer satisfaction. The study is customer base and winning a new customer. The bankers aim
limited to exploring customer satisfaction with internet to make the customers comfortable and happy to achieve their
banking services provided by banks and the effect of targets. To achieve the highly challenging task of customer
demographics on satisfaction. Future studies can focus on satisfaction bankers turn to technology for help. Bankers are
mobile banking, telephone banking, and support services not only satisfying the customer but should also trigger the
provided by banks and include private banks for exploration. attitude of the customers towards the bank. Each bank follows
Ramya T J and Dr. PSV Balaji Rao (2016), “A Study on different procedures it is very difficult to follow the
Customer Satisfaction towards Private Banks with special customers. Even though the customer is well educated time

high technology banking services hesitate the customer for the financial landscape has transformed since the introduction of
transaction. For effective banking transactions, the banks E-Banking. Innovative developments such as Internet banking
should have good communication, soft skill must need. At have supplanted traditional service delivery routes, saving
every level of delaying with the bank the customer, the bank clients time, energy, and work paper. This study is an attempt
management needs to educate the employees on the banking to bring out the customers' perceptions of online banking
activities and process. Universal banking procedures can help services provided by public sector banks, in line with
the customer for a better transaction. M.E.Dodda Raju and customer satisfaction, by taking into account the importance
Dr.T.Narayana Reddy (2014), “Customer Perception Study- of information technology and computer networking, their
Towards E-Banking Services Of Public and Private Sector pivotal role in the banking sector, and customers' preference
Banks - With Special Reference to Chittor District of Andra for online banking services offered by the bank.
Pradesh”, this research study has analyzed the overall
perception of customers regarding the services of e-banking in 4. OBJECTIVES OF THE STUDY
Chittoor District of Andrapradesh. The study concluded that  To measure the perception of the customers towards
different age groups of customers have different perceptions online banking services rendered by the selected
toward the e-banking services and the usage level of these public sector banks in the Balasore District of
banks‟ customer is different so the bank should concentrate on Odisha.
all the age group of customers for betterment of E-Banking. It  To measure the level of customer satisfaction
has also been seen that different occupation groups of towards online banking services.
customers have different perceptions of e-banking services.  To suggest the measures to strengthen the online
There is a good number of customers and there is a significant banking services provided by the
difference between the occupation of the customer and their Public Sector Banks.
perception of e-banking services. Dr. Pinki Insan and Sapna
Kumari (2015), “Customer’s Perception Towards Internet 5. RESEARCH METHODOLOGY
Banking: A Study of Sirsa City”, The analysis of the study The current research is based on both primary and
points out that a greater part of the Customers in the Sirsa is secondary sources of information. Through a structured
using the internet banking services like checking balance, questionnaire, primary data was obtained from clients of three
applying for consumer loan and credit cards online. Majority public sector banks: State Bank of India, Punjab National
of customers‟ preferred opening saving accounts in PNB. Bank, and Canara Bank. Secondary data was gathered from
People are also aware and satisfied with the internet banking journals, periodicals, the Internet, and other publicly available
services provided by their banks. The most important factor sources. In this study, a convenience sampling approach was
behind using internet banking is that it is more convenient. used to gather a sample of 400 customers in the Balasore
The study also suggests that the internet banking services can District of Odisha to assess their degree of satisfaction with
also be improved by dealing with customers with polite the above-mentioned public sector banks' online banking
behavior and making personal contacts, providing some extra services.
benefits to the users of this facility so that they won't switch to
any other side. P. V. Nandhini (2016), Customer Satisfaction
6. DATA ANALYSIS & INTERPRETATION
towards Online Banking in Coimbatore District, nowadays,
The measure of Perception of Customers towards Online
due to an increase in competition, customer satisfaction is
Banking Services The perception of the sample customers
considered to be the most important thing in the banking
regarding the efficiency, fulfillment, trust, and responsiveness
industry. So, the bankers are in the position to apt to the
dimension has been analyzed with the help of a scaling
information technology to change the way of service to attract
technique. The above-mentioned perception dimension has
customers and increase their satisfaction levels. This study
been measured with the help of scores allotted to five
gives information about online banking and their services
statements related to four categories of dimension on a five-
methodology, design and validation of questionnaire, and
point scale viz SA-Strongly Agree (5), A-Agree (4), No-No
factor analysis were used to enhance the reliability of findings.
Opinion (3), DA- Disagree (2) and SDA- Strongly Disagree
(1)
3. STATEMENT OF THE PROBLEM
The Internet is revolutionizing the way financial
services are developed and provided to customers. The whole

A. Perception of customers towards efficiency dimension

Table 1: Perception of customers towards efficiency dimension
S. No. Statements SA A NO DA SDA Total
1 Able to get on the website quickly 280 120 0 0 0 1880
2 Easy to find the need on the website 230 110 40 0 0 1770
Complete the transactions through
3 190 210 0 0 0 1790
bank’s website quickly
Using the bank’s website does not
4 120 220 20 20 0 1580
require lot of effort
Organisation and structure of online
5 135 170 95 0 0 1640
content is easy
Total 8660
Source: Author’s Calculation
It is observed from the above table that the perception of the website quickly gets the maximum score and using the bank’s
customers on the statement that able to get on the bank’s website does not require a lot of effort gets the least score.
B. Perception of Customers towards Fulfilment Dimension

Table 2: Perception of Customers towards Fulfilment Dimension
1 Bank keeps the promises 150 180 60 10 0 1670
Site is always available for
2 155 135 110 0 0 1645
business
Online transactions with the
3 bank are 220 180 0 0 0 1820
always accurate
Services delivered through
4 bank’s 130 180 90 0 0 1640
website is quick
Bank’s site makes accurate
5 promises 110 125 135 30 0 1515
about the services
Total 8290
It is observed from the above table that the perception of the bank’s site makes accurate promises about the services gets
customers on the statement that online transactions with the the least score.
bank are always accurate gets the maximum score and the
C. Perception of Customers towards Trust Dimension

Table 3: Perception of Customers towards Trust Dimension
Bank misuse the personal
1 0 0 175 127 98 877
information
Have confidence in bank’s
2 90 117 109 45 39 1374
service
Site launches and runs
3 12 29 23 198 138 779
quickly
Feel safe in my transactions
4 with the 143 177 27 31 22 1588
bank
Bank name is well known
5 and has 293 107 0 0 0 1893
good reputation
Total 6511

It is observed from the above table that the perception of the site launches and runs quickly gets the least score. Although
customers on the statement that bank name is well known and customers feel safe in making the transaction the bank scores
has good reputation gets the maximum score and the bank’s the second highest.
D. Perception of Customers towards Responsiveness Dimension

Table 4: Perception of Customers towards Responsiveness Dimension
Website design is aesthetically
1 149 222 29 0 0 1720
attractive
Give prompt responses to
2 requests by 102 98 112 48 40 1374
e-mail or other means
Bank is easily accessible by
3 92 148 89 40 31 1134
telephone
Quickly resolves the problems
4 encounter with online 98 109 149 24 20 1441
transactions
Customer service
5 representatives 17 30 47 159 147 811
available online
Total 6480
It is observed from the above table that the perception of the customer service representatives available online get the least
customers on the statement that bank website design is score.
aesthetically attractive gets the maximum score and the
E. Satisfaction level of the Customers towards Online Banking Services

Table 5: Level of Customers’ Satisfaction
S. No. Satisfaction Level No. of Responses Percentage
1 Highly satisfied 91 22.75
2 Satisfied 107 26.75
3 Moderate 181 45.25
4 Dissatisfied 13 3.25
5 Highly Dissatisfied 08 2
It is observed from the above table that most of the customers C. Organization structure has to be changed to accommodate
have a moderate level of satisfaction with online banking IT experts to give training in computers to the employees.
services rendered by the banks. Even though the majority D. The call center concept has to be brought down to the STD
comes under the moderate level fair majority of the customers booth level in these aspects an ordinary person may have to
are satisfied with the online banking services rendered by the utilize the internet banking services.
selected public sector banks. E. Banks can also extend more loan facilities to buy
computers which in turn will increase the internet usage level
7. SUGGESTIONS among the customers of our banks.
A. Awareness level about internet banking is very less among F. An exclusive TV channel or program for public sector
customers. So, banks have to conduct customer meetings banks can be opened to educate customers regarding internet
regularly to educate the customers on internet banking. The services and their utilization.
bank can also distribute booklets containing information about G. The banker is expected to serve the customers without any
the new schemes and it can be distributed directly to the delay for quarries and it is advisable to follow time
customers. management principles consistently.
B. Introduction of core banking should be speeded up because H. Bank should provide proper security to the E-banking
the size of the bank is considered an important factor in transactions as well as should provide sufficient training
choosing internet banking.

programs on recent technology to the employees to update 2. Anita Singh and Timira Shukla (2016), E-Banking: A Study
themselves. of Employees‟ Views on Its Efficacy, International
I. It is crucial for customers to have faith in the system as Conference on Management and Information Systems,
technology continues to expand and for banks to maintain September, pp 23-24.
3. Arunachalam, L. and Sivasubramanian, M. (2007) „The
sophisticated levels of security to sustain client confidence. future of Internet Banking in
Banks must thus install computer security-related hardware India‟, Academic Open Internet Journal, Vol. 20.
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J. Customers were not using all of the online banking services services with special reference to erode district, Asian
provided by the bank because of different reasons such as lack Journal of Business and Economics Volume 1, No.1.4
of know-how regarding the method of using services, doubt Quarter IV.
about the safety and security of these services, etc., the 5. Dr. K. Alagarsamy and S.Wilson (2013), A Study on
customers must be apprised of the online banking services Customer Behavior towards Banking Services with special
reference to Public Sector Banks in Sivagangai District,
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this, the bank can increase the satisfaction level of their Of Public and Private Sector Banks - With Special
customers. Reference to Chittor District of Andra Pradesh” IFSMRC
AIJRM Volume-02 Issue-03.
8. CONCLUSION 7. Dr. Pinki Insan and Sapna Kumari (2015), Customer‟s
Perception towards Internet Banking: A Study of Sirsa
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is having a significant impact on banking relationships. Online JBM) PP 52-59.
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Perception toward E-banking Services Provided By
the whole banking industry operates has been changed by Selected Private & Public Sector Bank in India,
online banking services. It has improved the speed and International Journal of Scientific and Research
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SJIF Impact Factor 2022: 8.197| ISI I.F. Value: 1.241| Journal DOI: 10.

36713/epra2016 ISSN: 2455-7838(Online)

CUSTOMER PERCEPTION TOWARDS E-BANKING SERVICES

1. INTRODUCTION as the Internet and telecommunications systems enable the

2022 EPRA IJRD | Journal DOI: https://doi.org/10.36713/epra2016 | www.eprajournals.com |398 |

2022 EPRA IJRD | Journal DOI: https://doi.org/10.36713/epra2016 | www.eprajournals.com |399 |

2022 EPRA IJRD | Journal DOI: https://doi.org/10.36713/epra2016 | www.eprajournals.com |400 |

A. Perception of customers towards efficiency dimension

B. Perception of Customers towards Fulfilment Dimension

C. Perception of Customers towards Trust Dimension

2022 EPRA IJRD | Journal DOI: https://doi.org/10.36713/epra2016 | www.eprajournals.com |401 |

D. Perception of Customers towards Responsiveness Dimension

E. Satisfaction level of the Customers towards Online Banking Services

2022 EPRA IJRD | Journal DOI: https://doi.org/10.36713/epra2016 | www.eprajournals.com |402 |

2022 EPRA IJRD | Journal DOI: https://doi.org/10.36713/epra2016 | www.eprajournals.com |403 |

Bhubaneswar City. A Global Journal of Social Sciences, 3,

2022 EPRA IJRD | Journal DOI: https://doi.org/10.36713/epra2016 | www.eprajournals.com |404 |

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