Customer Awareness and Satisfaction of E-Banking facilities: A study of

Syndicate Bank

Dissertation Submitted to the Mangalore University

In partial fulfillment of the requirements

For the award of the degree of

Master of Philosophy in Commerce

Submitted by Mrs. Shobha Prabhu.

Under the Guidance of

Dr. C.K.Hebbar, Associate professor, Coordinator,P.G. Studies in Commerce, University College,

Hampanakatta, Mangalore.

To know the awareness of e-banking facilities like ATM card, creditcard,Telebanking,internetbanking,onlinebanking,mobilebanking offered by syndicate bank to its customer.

To know the reasons for using and not using e-banking facilities offered by syndicate bank to its customers.

To know the reasons for inconvenience by the customer while using the e-banking facilities.

To know benefits enjoyed by the users of e-banking facilities.

To know the level of satisfaction of the users of e-banking facilities.

The survey is conducted to the customers of syndicate bank of Udupi, Manipal, Mangalore & Padubidri.

The sample size:200

The respondents include employees, businessmen , employers , retired people and students .The employees include lecturers of degree colleges.

The respondents are from the age group of 18 to 48 and above.

A primary data is collected by giving structured questionnaire

to the respondents. The secondary data is collected through books and

websites. The respondents were selected on convenience basis.

• There is problem of bias.

• Time is the limiting factor.

• It is subject to sampling error.

• The results of the survey cannot be

generalized.

E-banking has brought dislocation in the present system of banking. The average Indian consumer is still computer illiterate and is not able to get the benefits of e-banking.

The customers still prefer human touch over technology driven service. Again the consumer behavior towards technology will also take some time to change.

The installation of electronic machine require regular supply of electricity.

There is problem of privacy erosion associated with electronic banking.

There is problem of security. There is a possibility of hackers break into a website and then enter the internal system of the bank and the customers.

There is fear of technology to the customers. Fear of technology puts the average customer away from electronic channel.

There is a problem of trained staff regarding e-banking.

There is much scope for electronic error and fraud.

The cost of acquiring a personal computer is not within the reach of middleclass family.

If limited number of transactions are routed over the web, the e-bank cannot think of profit as service charges are low.

There is capital cost associated with the installation of sophisticated and costly technology. It will be necessary to import know – how, parts and in some cases full computer system especially for foreign exchange transactions.

In the survey it is found that majority of the customer faced the problem of breakdown of ATM while using it and technical snag while using online and internet banking facilities.

Majority of the users of mobile banking facilities faced the problem of delay, line busy and technical snag.

The survey is conducted to 200 respondents.The major findings are: 38 percent of the respondents are falling under the age

group 18-28.

50 percent are males and remaining 50 percent are females.

62 percent are employees.

46 percent are falling under the income group Rs. 5000-Rs.20000.

50 percent are graduates

73 percent of respondent are aware of Tele -banking facilities.

` 72 percent of respondents are aware of online

banking facilities.

71 percent of respondents are aware of internet banking facilities.

78 percent of respondents are aware of mobile banking facilities

63 percent of respondents are aware of core banking solution systems.

82 percent of respondents are users of ATM card .

32 percent of respondents are users of credit card.

47 percent of respondents are users of online banking facilities.

49 percent of respondents are users of mobile banking facilities.

40 percent of the respondents are the users of internet banking facilities.

38 percent of the respondents do not use ATM card because of risk of misuse.

34 percent of the respondents do not use credit card because of expensiveness.

70 percent of the respondents do not avail the benefit of internet banking because of no computer with internet connection.

65 percent of the respondents who are using ATM card benefited by anytime withdrawal.

39 percent of users of online banking facilities were benefited due to transfer of funds to and from other branches.

38 percent of the respondents who are using credit cards are benefited because there is no risk of holding cash.

69 percent of the respondents who are using mobile banking are benefited to make balance enquiry.

56 percent of respondents who are using ATM card faced inconvenience due to breakdown of machine.

41 percent of respondents who are using online banking facility faced inconvenience due to technical snag.

48 percent of users of internet banking facilities faced inconvenience due to technical snag.

75 percent of the beneficiaries of internet banking facilities are finding easy to get access to internet banking.

91 percent of the respondents have mobile phones

Of the users of ATM card, 68 percent are satisfied.

Of the users of credit card, 81 percent are satisfied.

Of the users of online banking facilities, 79 percent are satisfied.

Of the users of internet banking facilities, 69 percent are satisfied.

Of the users of mobile banking facilities, 74 percent are satisfied.

Syindicate Bank should reengineer themselves and update their information skills.

There is need for standardization of hardware operating system, software etc.

The banker should create awareness of multi delivery channels among the

customers. Bank should set up more ATM centers.

There should be installation of reliable ATM.

There should be better security systems so that error and fraud is minimized.

E-banking facilities should be extended even to rural areas.

Proper training should be given about E-banking to the employees also.

The bank must plan marketing and promotion strategies and popularise the e-banking system.

The bank must encourage the customer to use e-banking services.

As the use of e-banking requires computer literacy on

the part of customers, the Syndicate bank should create

awareness of e-banking facilities offered by it. There

should be infrastructure of power supply, up gradation

of environmental conditions and development of latest

technical skills and system. It is found through the

survey that mobile phones are used by 91 percent of

respondents. So, there is more scope for mobile

banking . It is also found through the survey that ATM

cards are used by 82 percent of the respondents among

the multi delivery channels. There is more scope for e-

banking in future as younger generation is having

computer literacy.

Thank You