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Introduction

E-banking:-

Internet banking (or E-banking) means any user with a

personal computer and a browser can get connected to his bank -s website

to perform any of the virtual banking functions. In internet banking system

the bank has a centralized database that is web-enabled. All the services

that the bank has permitted on the internet are displayed in menu. Any

service can be selected and further interaction is dictated by the nature of

service. Once the branch offices of bank are interconnected through

terrestrial or satellite links, there would be no physical identity for any

branch. It would a borderless entity permitting anytime, anywhere and

anyhow banking.  

  The delivery channels include direct dialup connections, private

networks, public networks, etc. with the popularity of computers, easy

access to Internet and World Wide Web (WWW), Internet is increasingly

used by banks as a channel for receiving instructions and delivering their

products and services to their customers. This form of banking is generally

referred to as Internet Banking, although the range of products and

services offered by different banks vary widely both in their content and

sophistication.

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Meaning of E-Banking

E-bank is the electronic bank that provides the financial service for the

individual client by means of Internet.

Observation of study

DEFINITION OF E-BANKING

For this booklet, e-banking is defined as the automated delivery of new and

traditional banking products and services directly to customers through

electronic, interactive communication channels. E-banking includes the

systems that enable financial institution customers, individuals or

businesses, to access accounts, transact business, or obtain information on

financial products and services through a public or private network,

including the Internet. Customers access e-banking services using an

intelligent electronic device, such as a personal computer (PC), personal

digital assistant (PDA), automated teller machine (ATM), kiosk, or Touch

Tone telephone. While the risks and controls are similar for the various e-

banking access channels, this booklet focuses specifically on Internet-based

services due to the Internet’s widely accessible public network.

Accordingly, this booklet begins with a discussion of the two primary types

of Internet websites: informational and transactional.

E-BANKING SUPPORT SERVICES2

WEBLINKING

A large number of financial institutions maintains sites on the World Wide

Web. Some websites are strictly informational, while others also offer

customers the ability to perform financial transactions, such as paying bills

or transferring funds between accounts.

WIRELESS E-BANKING

Wireless banking is a delivery channel that can extend the reach and

enhance the convenience of Internet banking products and services.

Wireless banking occurs when customers access a financial institution's

network(s) using cellular phones, pagers, and personal digital assistants (or

similar devices) through telecommunication companies’ wireless networks.

Wireless banking services in the United States typically supplement a

financial institution's e-banking products and services.

Person-to-Person Payments

Electronic person-to-person payments, also known as e-mail money, permit

consumers to send “money” to any person or business with an e-mail

address. Under this scenario, a consumer electronically instructs the

person-to-person payment service to transfer funds to another individual.

The payment service then sends an e-mail notifying the individual that the

funds are available and informs him or her of the methods available to

access the funds including requesting a check, transferring the funds to an

account at an insured financial institution, or retransmitting the funds to

someone else. Person-to-person payments are typically funded by credit

card charges transfer from the consumer’s account at a financial institution.

Since neither the payee nor the payer in the transaction has to have an

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account with the payment service, such services may be offered by an

insured financial institution, but are frequently offered by other businesses

as well.

Banking Services through Internet:4

1. The Basic Level Service is the banks’ web sites which disseminate

information on different products and services offered to customers

and members of public in general. It may receive and reply to

customer’s queries through e-mail;

2. In the next level are Simple Transactional Web sites which allows

customers to submit their instructions, applications for different

services, queries in their account balances, etc. but do not permit any

fund-based transactions on their accounts;

3. The third level of Internet banking service are offered by Fully

Transactional Web sites which allow the customers to operate on their

accounts for transfer of funds, payment of different bills, subscribing to

other products of the bank and to transact purchase and sale of

securities, etc. The above forms of Internet banking service the

customer or by new banks, who deliver banking service primarily

through Internet or other electronic delivery channels as the value

added services. Some of these banks are known as ‘Virtual’ banks or

‘Internet only’ banks and may not have physical presence in a country

despite offering different banking services.

The Indian Scenario: -

• Internet banking, both as a medium of delivery of banking services and as 5

a strategic tool for business development.

• At present, the total internet users in the country are estimated at 9 lakh.

However, this is expected to grow exponentially to 90 lakh by 2003. Only

about 1 percent of Internet users did banking online in 1998. This is

increased to 16.7 percent in March 2000.

- (India Research, May 29, 2000, Kotak Securities)

• Cost of banking service through the Internet from a fraction of costs

through conventional methods. Rough estimates assume teller cost at Re.1

per transaction, ATM transaction cost at 45 paise, phone banking at 35

paise, debit cards at 20 paise and Internet banking at 10 paise per

transaction.

Plastic Cards as Media for Payment: -

There are four types of plastic cards being used as media for

making payments. These are:

1. Credit Card

2. Debit Card

3. Smart Card

4. ATM Card

1. Credit Cards: -

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The credit card enables the cardholders to: Purchase any item like clothes,

jewellery, railway/air tickets, etc.

Pay bills for dining in a restaurant or boarding and lodging in hotel

Avail of any service like car rental, etc.

2. Debit Cards: -

A debit card is issued on payment of a specified amount by the issuing

company like a telephone company to a customer on cash payment or on

debiting his account by a bank.

Thus it is like an electronic purse, which can be read and debited by the

required amount.

It may be noted that while through a credit card, the customer first makes a

purchase or avails service and pays later on, but for getting the debit card, a

customer has to first pay the due amount and then make a purchase or avail

the service. For this reason, debit card are not as popular as credit cards.

3. Smart Cards: -

Smart Cards have a built-in microcomputer chip, which can be used for

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storing and processing information. For example, a person can have a smart

card from a bank with the specified amount stored electronically on it. As

he goes on making transactions with the help of the card, the balance keeps

on reducing electronically. When the specified amount is utilized by the

customer, he can approach the bank to get his card validated for a further

specified amount. Such cards are used for paying small amounts like

telephone calls, petrol bills, etc.

4. ATM Cards: -

The card contains a PIN (Personal Identification Number) which is selected

by the customer or conveyed to the customer and enables him to withdraw

cash up to the transaction limit for the day. He can also deposit cash or

cheque.

Literature Review

A new review by Tower group of 10 top US e- banking web sites evaluated

several aspects of core online banking components. Group found that there

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is difference in terms of actual functionality and usability. Among different

banks and their services.

The UK's first home online banking services were set up by the Nottingham

Building Society (NBS) in 1983 ("History of the Nottingham". Retrieved on

2007-12-14.). The system used was based on the UK's Prestel system and

used a computer, such as the BBC Micro, or keyboard (Tan data Td1400)

connected to the telephone system and television set. The system (known

as 'Home link') allowed on-line viewing of statements, bank transfers and

bill payments. In order to make bank transfers and bill payments, a written

instruction giving details of the intended recipient had to be sent to the NBS

who set the details up on the Home link system.

An American study conducted last year by Booz-Allen projects that by the

year 2000, 16 million US households will be using Internet banking. While

these numbers do not appear to be significant as compared to the total

population, each Internet user is projected to be 50-250% more profitable

than the average banking customer. It is expected that these Internet

customers will be some of the banking system's most profitable customers

representing close to 30% of all retail banking profits. The study projects

that by 1999, 1,500 banks will have Internet Web sites and at least 500 of

these banks will be offering full-fledged Internet banking services.

In 2001 Micro banker send detailed questionnaire to the leading vendors of

internet banking software27 companies responded with information on

thirty programs the aggregate outcome of the outcome was that almost all

the companies have developed functions for internet banking and have

inbuilt feature to aid with one to one marketing on the web.

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ICICI Bank

ICICI Bank Online Banking Services provide the largest private bank in

India right here at your desktops. Banking becomes a pleasure as the

transactions and services become instant with ICICI Bank online

Internet banking. The services provided are totally secure and unique.

These cover online account transactions and operations, credit card and

account applications and payments, share trading and investments

through mutual funds, bill payments, statement generation and a virtual

demo of each service. See in brief in final report.

Role of customer when using e-banking

You can access ICICIBank.com only by using your User ID and

Password. During the first login attempt, it is mandatory to change

both passwords - login and transaction – which would have been

mailed to you by the bank.

If you forget your password, you will have written to us using the

"Email Us" option. The Bank will then issue a new password and send

it to your mailing address as per our records. Kindly check with your

branch that this address is updated...

Make sure no one can see the account login name or password you

are entering when you log on to ICICIBank.com.

Logout of ICICIBank.com before moving on to other Websites.

Before leaving the PC please "close" the browser.

Do not write your ICICIBank.com login name or password anywhere.

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Do not leave your login name and password such that someone

sitting at your computer could see them.

Never reveal your ICICIBank.com login name and password to

anyone (no representative of ICICI Bank will ever ask you for your

ICICIBank.com password).

Notify ICICI Bank immediately if you notice any unusual account

activity.

Keep all documents that include your account information in a secure

location.

When you login you can view the date and time of your last log in.

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Features offered by ICICI bank for internet banking

Balance enquiry and statement

Transfer fund online

Card to card fund transfer

Use debit card online

Prepaid mobile recharge

Subscribe for mobile banking

Link bank account to ATM

Lock / activate debit cards /ATM

Request a cheque book

Stop payment

HDFC

Net Banking is HDFC Bank's Internet Banking service. Providing up-to-

the-second account information, Net Banking lets you manage your

account from the comfort of your mouse - anytime, anywhere.

Features offered by HDFC bank for internet banking

View account balances and statements

Transfer funds between accounts

Request stop payments

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Pay bills

Create fixed deposit online

Order cheque books

Objective of study

Find the customer satisfaction relating to E-banking service.

To study the awareness of internet banking among the customers of

ICICI and HDFC banks.

Limitation of Study

Banks are not giving me all information about E-banking services.

They do not permit to meet any of the employees in their bank.

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INTRODUCTION

EVOLUTION OF MARKETING

marketing Spelled Pronunciation mahr-ki-ting]

– noun

1. the act of buying or selling in a market.

2. the total of activities involved in the transfer of goods from the

producer or seller to the consumer or buyer, including advertising,

shipping, storing, and selling.

At the beginning of the century, social life was mostly local. It was followed by a

period in which commodities were produced on a mass scale. Consumer Marketing

operated on mass marketing principles and business primarily concerned itself with

how to build the best sales force. At the end of the century, there is an emerging global

culture. The major driver of these changes is technology. Technological change has

moved steadily back focusing on the individual. These changes shape the possibility

and conduct of business. Marketing is especially tied to communication and

transportation revolution. As the tools and reach of marketing increase, the job and

responsibilities of marketers have evolved with them.

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Philip Kotler formalized this evolution with his book "Marketing Management". His

key stages are production, sales and brand management. Each of these is strongly

motivated by technological opportunities, which permit new methods and new

opportunities. A fourth stage, a focus on the individual customer, is also important. As

the new technology of the Internet develops, it reinforces the new marketing emphasis

- which in many ways is a return to business at the turn of the centu

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In today’s technology driven world, a new fast paced digital economy is emerging.

Tomorrow there will be companies that will exist only inside computer networks.

Most business transactions will be made electronically, directly from the producer to

the consumer, bypassing the supply chain. In the digital marketing environment, the

consumer becomes an integral player in the development of the product. In fact, a

consumer might build the product himself from a wide array of parts provided by the

Company. It is e-commerce that is changing the way products and services are

conceived, manufactured, promoted, priced, distributed and sold. The reason being

that it is much cheaper; it allows vast coverage and helps in serving the customer

better.

ADVERTISING

ad⋅⋅ver⋅⋅tis⋅⋅ing Show Spelled Pronunciation [ad-ver-

tahy-zing

1. the act or practice of calling public attention to one's

product, service, need, etc., esp. by paid announcements in

newspapers and magazines, over radio or television, on

billboards, etc.: to get more customers by advertising.

2. paid announcements; advertisements.

3. the profession of planning, designing, and writing

advertisements.

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Advertising is a paid form of communication, although some forms

of advertising, such as public service announcements, use donated

space and time. Second, not only is the message paid for, but the

sponsor is identified. Third, most advertising tries to persuade or

influence the consumer to do something, although in some cases

the point of the message is simply to make consumers aware of the

product or company

Fourth and fifth, the message is conveyed through many different

kinds of mass media reaching a large audience of potential

consumers. Finally, because advertising is a form of mass

communication, it also non-personal

A definition of advertising, then, includes all six features

Advertising is paid non-personal communication from an

identified sponsor using mass media to persuade or influence

an audience

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Functions of Advertising

Advertising is an important promotional tool for any marketing campaign.

So much so that whenever we think of marketing we think of advertising

although it is just one of the marketing tools. Till now only companies with

a profit motive went in for advertising. But today government bodies as

well as non-governmental organizations (NGOs) go for high profile

advertising campaigns. The purpose here is not to increase the sales figure

but to increase the awareness of people regarding the relevant topics.

Even though each ad or campaign tries to accomplish goals unique to its

sponsor, advertising performs three basic functions:

1. Provide product or brand information

Although many ads are devoid of information, providing the consumer

with relevant information that will aid decision making is still the main

function of advertising. The information given depends on the needs of

the target audience. In the case of purchasing a new suit, needed

information might simply include price and outlet location. For

technical products, the information is likely to be very detailed.

2. Provide incentives to take decision

In most instances, consumers are reluctant to change established behavior. Even

if there are somewhat dissatisfied with the current product or service, a habit has 19

been established and learning about a new product is deemed difficult.

Advertising provides the consumer with reasons to switch brands by presenting

reasons through copy or graphics. Convenience, high quality, lower price,

warranties, or a celebrity endorser are all possibilities.

3. Provide reminders and reinforcement

It’s amazing how much advertising is directed at current customers. Consumers

forget why they bought a particular brand of microwave or automobile. Advertising

must remind the customer constantly about the name of the brand, its benefits, its

value, and so forth. These same messages help reinforce the customers decision.

Most television advertising seems to provide this function.

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Types of Advertising

Advertising is a form of selling. It tries to make consumers buy goods or services.

Advertisers must be aware of the factors that influence people's buying habits and

then use advertising strategies based on this knowledge. Advertising can be

classified in number of ways.

1. Print Advertising: Newspapers, Magazines, Brochures, Fliers

The print media have always been a popular advertising medium. Advertising products

via newspapers or magazines is a common practice. In addition to this, the print media

also offers options like promotional brochures and fliers for advertising purposes.

2. Outdoor Advertising: Billboards, Kiosks, Tradeshows and Events (OOH)

Outdoor advertising is also a very popular form of advertising, which makes use of several

tools and techniques to attract the customers outdoors. The most common examples of

outdoor advertising are billboards, kiosks, and also several events and tradeshows

organized by the company. The billboard advertising is very popular however has to be

really terse and catchy in order to grab the attention of the passersby. The kiosks not only

provide an easy outlet for the company products but also make for an effective advertising

tool to promote the company’s products. Organizing several events or sponsoring them

makes for an excellent advertising opportunity. The company can organize trade fairs, or

even exhibitions for advertising their products. If not this, the company can organize

several events that are closely associated with their field.

3. Broadcast advertising: Television, Radio and the Internet

Broadcast advertising is a very popular advertising medium that constitutes of

several branches like television, radio or the Internet. Television advertisements

have been very popular ever since they have been introduced. The radio might

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have lost its charm owing to the new age media however the radio remains to be

the choice of small-scale advertisers.

4. Covert Advertising: Advertising in Movies

Covert advertising is a unique kind of advertising in which a product or a

particular brand is incorporated in some entertainment and media channels

like movies, television shows

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or even sports. There is no commercial in the entertainment but the brand or the product

is subtly (or sometimes evidently) showcased in the entertainment show.

5. Surrogate Advertising: Advertising Indirectly

Surrogate advertising is prominently seen in cases where advertising a particular

product is banned by law. Advertisement for products like cigarettes or alcohol

which are injurious to heath are prohibited by law in several countries and hence

these companies have to come up with several other products that might have the

same brand name and indirectly remind people of the cigarettes or beer bottles of

the same brand. Common examples include Fosters and Kingfisher beer brands,

which are often seen to promote their brand with the help of surrogate advertising.

6. Public Service Advertising: Advertising for Social Causes

Public service advertising is a technique that makes use of advertising as an

effective communication medium to convey socially relevant messaged about

important matters and social welfare causes like AIDS, energy conservation,

political integrity, deforestation, illiteracy, poverty and so on.

7. Celebrity Advertising

Although the audience is getting smarter and smarter and the modern day

consumer getting immune to the exaggerated claims made in a majority of

advertisements, there exist a section of advertisers that still bank upon celebrities

and their popularity for advertising their products. Using celebrities for advertising

involves signing up celebrities for advertising campaigns, which consist of all

sorts of advertising including, television ads or even print advertisements.

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8. Internet Advertising

Internet promotion is one of the newer types of advertising and can be

accomplished in a number of ways. Flash advertising refers to messages that

jump onto your computer screen and often move around. They can be hard to

close and are annoying, but effective at gaining your attention. Pop up and

scrolling ads are other examples of these types of advertising. Pay per click

advertising refers to marketers paying to have their web pages placed high on

search engine results pages. These are also called sponsored links.

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INTERNET MARKETING

THE ADVENT OF THE INTERNET

The new millennium has brought us on the brink of the I.T. Revolution. This revolution has

been aided by the advent of the Internet in a big way. Internet is fast changing the way

people used to do things. Naturally, the same would have an impact on the advertisers.

The Internet has been accepted as the most powerful media for advertising due to the

absence of geographical barriers. The advent of the Internet and its subsequent

acceptance has once again challenged the traditional forms of advertising. Advertisers

are trying to use the 'net' to advertise their products and hence 'net' their customers.

Thus, with the Internet gaining prominence, advertising equations are fast changing.

Internet marketing, also referred to as web marketing, online marketing,

or eMarketing, is the marketing of products or services over the

Internet. Internet marketing ties together creative and technical aspects

of the Internet, including design, development, advertising, and sale.

The Internet has brought many unique benefits to marketing, one of

which being lower costs for the distribution of information and media to

a global audience. The interactive nature of Internet marketing, both in

terms of providing instant response and eliciting responses, is a unique

quality of the medium. Internet marketing is sometimes considered to

have a broader scope because it not only refers to digital media such as

the Internet, e-mail, and wireless media; however, Internet marketing

also includes management of digital customer data and electronic

customer relationship management (ECRM) systems

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7 P'S OF INTERNET MARKETING

The four P's - Product, Price, Place and Promotion have long been associated with

marketing, but things have changed on the Internet. So along with a change in the

nature of the four P’s there are three new P’s which are relevant to the internet

marketer: Presentation, Processes and Personalization.

1. Product

Product on the Internet usually changes form online, and the user experiences it

electronically, in the form of text, images and multimedia. Physical goods are usually

presented in the form of a detailed online catalogue that the customer can browse

through. Technology allows the user to virtually touch and feel the product on the

Internet - rotate it, zoom in or zoom out and even visualize the product in different

configurations and combination. Content and software are two avatars of digitized

products that can be even distributed over the Internet. On the Internet, E-marketing

will be based more on the product qualities rather than on the price. Every company

will be able to bring down the cost of its products and hence competition will not be

on price. It will rather be on the uniqueness of the product. To be able to attract the

customers and retain them, the company will have to provide nouvelle and distinct

products that forces the net users to purchase and come back for more.

2. Price

Price has been drastically changed over the Internet. It lets the buyer decides the

price. Also it gives the buyers information about multiple sellers selling the same

product. It leads to best possible deal for the buyers in terms of price. Pricing is

dynamic over the Internet.

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3. Place

Place revolves around setting up of a marketing channel to reach the customer.

Internet serves as a direct marketing channel that allows the producer to reach the

customer directly. The elimination of the intermediate channel allows the producer

to pass the reduced distribution cost to the customer in the form of discounts.

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4. Promotion

Promotion is extremely necessary to entice the customer to its website,

as there are currently more than one billion web pages. Promoting a

website includes both online and offline strategies. Online strategies

include search engine optimization, banner ads, multiple points of entry,

viral marketing, strategic partnership and affiliate marketing. Presently,

the cyberspace is already cluttered with thousands of sites probably

selling similar products. For the customers to know of the Company’s

existence and to garner information on the kind of products or services

that the company is offering, promotion has to be carried out. There can

be traded links or banner advertisements for the same. Also the

traditional mediums like print, outdoor advertising and television can be

used to spread awareness.

5. Presentation

The presentation of the online business needs to have an easy to use

navigation. The look and the feel of the web site should be based on

corporate logos and standards. About 80% of the people read only 20%

of the web page. Therefore, the web page should not be cluttered with a

lot of information. Also, simple but powerful navigational aids on all web

pages like search engines make it easy for customer to find their way

around.

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6. Processes

Customer supports needs to be integrated into the online web site. A

sales service that will be able to answer the questions of their

customers fast and in a reliable manner is necessary. To further

enhance after sales service, customers must be able to find out about

their order status after the sale has been made.

7. Personalization

Using the latest software it is possible to customize the entire web site

for every single user, without any additional costs. The mass

customization allows the company to create web pages products and

services that suit the requirement of the user. A customized web page

does not only include the preferred layout of the customer but also a pre

selection of goods the customer may be interested in.

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Conclusion

The basic objective of my research was to analyze the

awareness among customers for internet banking in INDIA.

It gives direction to research tools, research types and

techniques. Although the findings reveal that people know

about the services but still many people are unaware and

many of them are non – users so the bank should by

promotion try to retain the customers. Banks should look

forward to have some tie – ups with other financial

institutions to increase the service base.

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Bibliography

Book:-

E-banking in India

Banking service operation (ICFAI)

Indian Banking

Money & Banking

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