Volume-3, Issue-06, June 2016 ISSN: 2349-7637 (Online) RESEARCH HUB International Multidisciplinary Research Journal (RHIMRJ) Research Paper Available online at: www.rhimrj.com A Study on Consumers Adoption and Awareness of Net - Banking in Ahmedabad City Dr. Viral Bhatt 1st Director, Sal Institute of Management, Ahmedabad, Gujarat (India) Sandip Nakrani 2nd Student, MBA (Finance) Sal Institute of Management, Ahmedabad, Gujarat (India) Kinjal Korat 3rd Student, MBA (Finance) Sal Institute of Management, Ahmedabad, Gujarat (India) Abstract: In recent years, the adoption and awareness of net-banking began to occur quite extensively as a channel of distribution for financial services due to rapid advances in emerging technology and intensive competitive banking markets. This research paper aims to check if the current and prompt technological revaluation altering the whole world has crucial impact on the banking sector in Ahmedabad (Gujarat). It is mainly based on data, collected from banking customers in different commercial banks of Ahmedabad. Hence the findings of this research will help the banks to establish a customer oriented strategy to retain their customers in future. It mainly focuses on investigating the important factors influencing the net-banking customer s satisfaction and awareness with the overall service quality of their concerned bank. The methodologies used for this research involved 500 interviews with bank customers of the case study banks and administration of questionnaires to 500 bank customers of Ahmedabad. Keywords: Net-banking, Banking, Technology, Commercial banks Global Scenario of Net- Banking: I. INTRODUCTION In Asia, the major factor restricting growth of E-banking is security, in spite of several countries being well connected via Internet. Access to high-quality E-banking products is an biggest challenges. Majority of the banks in Asia are simply offering basic services compared with those of developed countries. In spite of all hurdles of net-banking services is future of the world. It is considered that E-banking will succeed if the basic features, especially bill payment, are handled well. Bill payment was the most popular feature, cited by 40 percent of respondents of the survey. However, providing this service would be difficult for banks in Asia because it requires a high level of security and involves arranging transactions with a variety of players. Experience of India on Net-Banking: The impact of Net-Banking in India is not yet apparent. Many global research companies believe that Net-banking adoption in India in the near future would be slow compared to other major Asian countries. Indian Net-banking is still nascent, although it is fast becoming a strategic necessity for most commercial banks, as competition increases from private banks and non-banking financial institutions. Need of Internet Baking in Indian Banking System: Net-Banking is a modern banking system. The Net-Banking is changing the ways of doing banking business with modern technologies and techniques. The Electronic System has further enhanced the capacity and capability of overall banking system in terms of productivity, profitability, efficiency, quality of service and cost effective delivery of numerous products/services. The computerization of branch is the main requisite condition to move towards Net-Banking but automation in isolated form does not play active role. The main objective of Net-Banking is to provide right information to the right user (customer or bank) at the right time and at the right place. The Net-Banking is the consolidation and accessibility of all branches databases at a central location by using distributed database-computing Technology. In addition to this, it uses data mining and data warehousing technologies on consolidated customers database to facilitate the strategic planners to identify potential customers, markets and possibilities of emerging opportunities and risks. It is a platform to deliver secure, user-friendly, cost effective, secure, integrated and speedy form of services to the end users. 2016, RHIMRJ, All Rights Reserved Page 1 of 7 ISSN: 2349-7637 (Online)
II. REVIEW OF LITERATURE Electronic banking challenges in India: an empirical investigation (Majid Karimzadeh) The objective of this study was to identify the challenges of e-banking from the perspective of employees and bank customers. The present investigation has shown that legal and security issues, socio-cultural barriers, and management-banking issues are accepted as challenges for e-banking development in India. Socio-cultural barriers rated as the most important challenge followed by legal, security issues and Management-banking. Knowledge, economic and infrastructural barriers are the least important according to both staff and customers. Electronic Banking in India: Innovations, Challenges and Opportunities (Karamjit Kaur, Rajneesh) In the past few years, the Indian banking sector has completely transformed. The banks are facing many challenges and many opportunities are available with the banks. Many financial innovations like ATMs, credit cards, RTGS, debit cards, mobile banking etc. have completely changed the face of Indian banking. But still there is a need to have more innovative solutions so that the challenges can be solved and opportunities can be availed efficiently by the banks. A Study on Emerging Opportunities & Challenges towards E-Banking System in India (Ms. Megha Arunkumar Jain Asst. Professor, Dr. G. H Barhate Associate Professor) The growth of information technologies in the world has been phenomenal. Thanks to these technologies, banks are being able to reach their customers anywhere at any time. Compared to banks abroad, Indian banks offering online services still have a long way to go. For online banking to reach a critical mass, there has to be sufficient number of users and the sufficient infrastructure in place. III. OBJECTIVES OF STUDY To study the adoption and use of Internet / electronic medium for banking transactions by individuals in India. To study the consumers perceptions regarding the issues and challenges of e-banking To understand a profile of e-banking users in India in terms of demographics and their personality related dimensions. To explore the relationship between consumers perception about e-banking and their background variables. To understand the relationship between consumers perception about e-banking and their personality related dimensions. IV. METHODOLOGY Data Collection: The primary and secondary sources of data collected were adopted in this research work. Primary Source: Data in the category were collected mainly though field survey and telephonic survey. Secondary Source: Secondary data in this research work were collected through the review of related literature; the relevant literatures were obtained from books journals, magazines, and newspapers, Internet website etc. Sample Size: The present study is based on data collected through 500 questionnaires that were selected for final Analysis Sampling Techniques: For the purpose of sample selection, a non-probability convenience sampling method was adopted. The contact methods used were personal contact survey, tele phonic survey method Sampling Tool and Technique: SPSS MS Excel V. MEASURES The net banking services were used to access consumer adoption and awareness. The services has 22 items and responses were scored on 7 point like scale (7 = strongly agree to 1= strongly disagree) VI. RESULTS Descriptive analysis Table: 1 Interpretation 2016, RHIMRJ, All Rights Reserved Page 2 of 7 ISSN: 2349-7637 (Online)
Mean: From the table 1 we can say that highest mean is 4.86. Hence its shows that most of respondent agree with the statement that net-banking services are all time available. Standard Deviation: From the table 1 we can say that highest S.D is 2.002 which is shows that most of respondent highly fluctuated with the statement that net-banking services are status symbol. Mode: From the table 1 we can say that All time available statement has highest mode is 7. Hence its shows that most of respondent strongly agree with that statement. Table: 2 Interpretations Mean: From the table 2 we can say that highest mean is 4.69. Hence its shows that most of respondent agree with the statement that they are feel insecure while they are use net-banking. Standard Deviation: From the table 2 we can say that highest S.D is 2.079 which is shows that most of respondent highly fluctuated with the statement that net-banking services problem are misuses of card. Mode: From the table 2 we can say that Insecure statement has highest mode is 7. Hence its shows that most of respondent strongly agree with that problem statement. Table: 3 Interpretations Mean: From the table 3 we can say that highest mean is 4.82. Hence its shows that most of respondent agree with the statement that they prefer to do by net-banking is money transfer. Standard Deviation: From the table 3 we can say that highest S.D is 1.915 which is shows that most of respondent highly fluctuated with the statement that they prefer to do by net-banking is request to stop payment on a cheque. Mode: From the table 3 we can say that Money transfer statement has highest mode is 6. Hence its shows that most of respondent strongly agree to do money transfer by net-banking. Table: 4 Interpretations Mean:From the table 4 we can say that highest mean is 4.86. Hence its shows that most of respondent agree with the statement that net-banking services feel I often seek out information about new products and brands. Standard Deviation:From the table 4 we can say that highest S.D is 1.921 which is shows that most of respondent highly fluctuated with the statement that net-banking services feel I take the advantage of the first available opportunity to find out about new and different products. Mode:From the table 4 we can say that I like to go to places where I will be exposed to information about new products and brands. statement has highest mode is 6. Hence its shows that most of respondent strongly agree with that statement. Reliability Analysis Name of scale Cronbach's Alpha Q.5 Factors influence 0.720 Q.6 Problem identified 0.587 Q.8 Purpose of use 0.588 Q.13 Acceptance of new things 0.634 As we can see in the above table that reliability of influences for using Net-banking is 72% hence our reliability aspect is more than 70% (which is desirable).the reliability value of problem identified in using E-banking is 58.7% which is more than 50% (acceptable) hence our scale is accepted.the reliability vale purpose of use in using Net-banking is 58.8% which more than 50% (acceptable) Hence our scale is acceptable. An acceptance of new things for using Net-banking is 63.4% which is more than 50% (acceptable) hence our scale is accepted. One-way- Anova analysis To understand the difference amongst various banks and net banking parameters we used one way Anova. QUE:05 Which of the following factors influence you the most for using Net-banking services? H0: There is no significance difference amongst banks and various net banking parameters. H1: There is a significance difference amongst banks and various net banking parameters. 2016, RHIMRJ, All Rights Reserved Page 3 of 7 ISSN: 2349-7637 (Online)
SUMMETED_05 Between 588.809 3 196.270 5.176.002 Groups Within 18808.413 496 37.920 Groups Total 19397.222 499 To significances value is 0.002 which is less than 0.05 so, H0 is rejected H1 is selected difference amongst banks and various net banking parameters. Post Hoc Tests There is a significance difference amongst various now we want to understand the differences hence we have applied the post tukkey t-test Multiple Comparisons Dependent Variable: SUMMETED_05 Tukey HSD Mean Difference (I) In which banks do you have your a/c? (I-J) PSU Bank Private Bank 1.71284 Foreign Bank -.33359 Co-operative bank 2.30235 * Private Bank PSU Bank -1.71284 Foreign Bank -2.04643 * Co-operative bank.58951 Foreign Bank PSU Bank.33359 Private Bank 2.04643 * Co-operative bank 2.63594 * Co-operative bank PSU Bank -2.30235 * Private Bank -.58951 Foreign Bank -2.63594 * *. The mean difference is significant at the 0.05 level. Result of post HSD (tukkey) test suggested that private bank and foreign bank have similarity amongst the net banking parameters that foreign bank and co-operative bank have similarity amongst the net banking parameters while there is less similarity amongst rest of the various. QUE: 06 the problems identified while using E-banking services? H0: there is no significance difference amongst various age groups and problems that identified in using net-banking services. H1: there is a significance difference amongst various age groups and problems that identified in using net-banking services. SUMMETED_06 Between Groups 237.680 3 79.227 1.716.163 Within Groups 22900.512 496 46.170 Total 23138.192 499 Table significances value is 0.163 which is more than 0.05 hence H0 hypothesis accepted it means there is no significance difference amongst various age groups and problems that identified in using net-banking services. QUE: 08 which of the following transactions you would prefer to do by Net-banking? 2016, RHIMRJ, All Rights Reserved Page 4 of 7 ISSN: 2349-7637 (Online)
H0: There is no significance difference amongst various qualification and purpose of use of net banking. H1: There is a significance difference amongst various qualification and purpose of use of net banking. SUMMETED_08 Between Groups 152.259 3 50.753 1.284 0.279 Within Groups 19613.059 496 39.542 Total 19765.318 499 Table significances value is 0.279 which is more than 0.05 hence H0 hypothesis accepted it means there is no significance difference amongst various qualification and purpose of use of net banking. QUE: 11 To what extant are you satisfied with your banks Net-banking services? To what extant are you satisfied with your banks E-banking services? Between Groups 29.119 3 9.706 2.896.035 Within Groups 1662.169 496 3.351 Total 1691.288 499 H0: There is no significance difference amongst various age group with respect to satisfaction level. H1: There is a significance difference amongst various age group with respect to satisfaction level. Table significances value is 0.035 which is less than 0.05 hence it, h0 is accepted it means there is a significances difference amongst various age group with respect to satisfaction level. Post Hoc Tests Multiple Comparisons Dependent Variable: To what extant are you satisfied with your banks E-banking services? Tukey HSD (I) Age (J) Age Mean Difference (I- J) 18-25 Year 26-40 Year -.001 41-60 Year.600 * More than 61 Year.263 26-40 Year 18-25 Year.001 41-60 Year.601 * More than 61 Year.265 41-60 Year 18-25 Year -.600 * 26-40 Year -.601 * More than 61 Year -.337 More than 61 Year 18-25 Year -.263 26-40 Year -.265 41-60 Year.337 *. The mean difference is significant at the 0.05 level. QUE:13 Please rate the following statements by assigning. H0: There is no significance difference amongst various age group for acceptance of new things. H1: There is a significance difference amongst various age group for acceptance of new things. SUMMETED_13 Between Groups 60.212 3 20.071.428.733 Within Groups 23256.180 496 46.887 2016, RHIMRJ, All Rights Reserved Page 5 of 7 ISSN: 2349-7637 (Online)
Total 23316.392 499 Table significances value is 0.733 which is more than 0.05 hence Ho hypothesis is no significance difference amongst various age group for accepting new thigs. VII. CONCLUSION Bank, initially started as ancillary industry now has turned as core industry, contributing handsomely to GDP as well to economic growth of nation. With the change of environment banks also have accepted the modernization quickly. It may be computerizing of branches, installing ATM's, connecting to CBS, Mobile banking, or coming up with E-banking facility. All these changes have led to development of businesses. All up gradations are not been carried by all kinds of bank, viz; PSU, Private, Foreign bank have latest updating but cooperative bank still are queue of upgrading themselves. From past few years banks are promoting their Net-banking facility for one or the another reason; vis-à-vis to reduce paper work, to reduce difficulty of standing in long queue, for green marketing, to save time, to avail services for 24X7 hours, quick on tip transactions, status queo, secure transaction etc. This particular study has focused on Net-banking habits of the people. People those avoiding Net-banking out of them one fourth people says that they are satisfied with traditional banking rest one fourth people says its difficult process andthey feel lack of its functional use. Though stunning figure says three fourth people accepts bank try to educate them for Net-banking facility. Considering on demographic factors like qualification, income, occupation, age, gender doesn t effect on demand of Uniqueness as well as on Judgment making. But qualification and occupation effect lightly on Consumer Novelty seeking score whereas factors like age, income, gender doesn t effect on it. People who try to find uniqueness also try to find something new. These kinds of people not usually demand convenience, secured transaction, direct access. Again they are been influenced by friends/relatives and status symbol. The study conclude that the customer are ready to accept e-banking services in various area of banking like phone banking, mobile banking and Internet baking. The customers are also using other service like money transfer, debit and credit cards. People when make independent judgment they look for All time availability, ease of use, secured transaction and status symbol. Contradictory convenience and friends doesn t affect them much. Banks need to study all these factors minutely. This would lead them to success. Bank can use secure transaction as their USP. Bank need to bring customers under confidence for using Net-banking. Training program can be conducted for customers so they can be motivated and can motivate others for using Net-banking services. This would lead to overall economic development and of course can reduce paper work and save environment. The study made focused on some problems which are part of regular banking facility are ATM out of order, misplace of cards and other more.finally any bank even Indian or foreign bank need to give attention on better security and easy in understanding about service of Net-banking for adoption of system. Table: 1.Which of the following factors influence you the most for using Net-banking services? Factors Mean S.D Mode t- Value p(proportion) H 1 (One Tailed) 5.1) All time available 4.86 1.974 7 55.018 0.154 Yes 5.2) Ease of use 4.81 1.644 6 65.416 0.114 Yes 5.3) Convenience 4.73 1.641 5 64.443 0.108 Yes 5.4) Secured transaction 4.38 1.520 4 64.510 0.116 Yes 5.5) Direct access 4.14 1.662 5 55.638 0.19 Yes 5.6) Friends/relatives 3.98 1.611 4 55.221 0.208 Yes 5.7) Status symbol 3.62 2.002 1 40.410 0.364 Yes 2016, RHIMRJ, All Rights Reserved Page 6 of 7 ISSN: 2349-7637 (Online)
Table: 2. Rate the problems identified while using Net-banking services? Factors Mean S.D Mode T - Test P H1 6.1) Time consuming 4.61 1.769 5 58.283 0.138 Yes 6.2) Insecure 4.69 1.466 7 71.518 0.72 Yes 6.3) ATM out of order 4.68 1.461 5 71.681 0.64 Yes 6.4) Amount debited but not withdrawn 4.55 1.598 5 63.711 0.132 Yes 6.5) Problem of cheque in mobile no. 4.51 1.616 5 62.466 0.138 Yes 6.6) Password together 4.40 1.593 5 61.723 0.136 Yes 6.7) Card misplaced 4.30 1.794 5 53.631 0.216 Yes 6.8) Misuses of card 4.02 2.079 1 43.227 0.294 Yes Table: 3. Which of the following transactions you would prefer to do by Net-banking? Factor Mean S.D Mode T - Test P H1 8.1) Money transfer 4.82 1.768 6 60.998 0.116 Yes 8.2) Checking of your current balance 4.68 1.632 5 64.057 0.118 Yes 8.3) Create fixed deposits online 4.66 1.528 5 68.223 0.86 Yes 8.4) request a demand draft 4.39 1.559 4 62.939 0.108 Yes 8.5) Pay bills 4.27 1.582 3 60.279 0.136 Yes 8.6) Order a cheque book 4.06 1.741 3 52.071 0.21 Yes 8.7) Request stop payment on a cheque 3.72 1.915 3 43.427 0.33 Yes Table: 4. Please rate the following statements by assigning. Statement Mean S.D Mode T - Test P H1 13.1) I often seek out information about new products and brands. 13.2) I like to go to places where I will be exposed to information about new products and brands. 4.86 1.603 4 67.74 0.78 Yes 4.84 1.433 6 75.50 0.64 Yes 13.3) I like magazines that introduce new brands. 4.74 1.482 5 71.46 0.66 Yes 13.4) I frequently look for new products and services. 4.57 1.519 5 67.26 0.82 Yes 13.5) I seek out situations in which I will be exposed to new and different sources of product information 4.59 1.588 4 64.58 0.10 Yes 13.6) I am continually seeking new product experiences. 4.29 1.635 4 58.71 0.15 Yes 13.7) When I am shopping, I find myself spending very little time checking out new and different products. 13.8) I take the advantage of the first available opportunity to find out about new and different products. 4.55 1.659 4 61.31 0.13 Yes 4.08 1.921 3 47.5 0.23 Yes 2016, RHIMRJ, All Rights Reserved Page 7 of 7 ISSN: 2349-7637 (Online)