International Research Journal of Business and Management IRJBM

ISSN 2322-083X

Customer Awareness and Preference towards E-Banking Services of

Banks (A Study of SBI)
Miss. R. Elavarasi
II Yr MBA Student, School of Management,
SASTRA University, Thanjavur, South India
Dr.S.T.Surulivel
Senior Assistant Professor, School of Management,
SASTRA University, Thanjavur, South India

ABSTRACT
The purpose of this study is to create customer awareness & to find out what they most
preferred e-banking services of banks. The study has been done in Kumbakonam City
comprising a sample size of 200.After the data collection, researcher has identified which
commercial bank provide better service with regards to e-banking services to customers and
also identified satisfaction level of customer view about internet banking website of banks.
The result of this analysis is showed that mean age of e-banking users is 0.795and 0.205
respectively and the respondents were mostly men as compared to women. The data analysis
shows that age, educational qualification, occupation, income level of customer are
significant factor that decide usage of e-banking services of various banks in the study area.
KEYWORDS: Banks, Awareness, Preferred E-Banking Services, Satisfaction Level,
Occupation, Income level.
INTRODUCTION
Now a days information technology plays a vital role in banking sector. Day by day
increasing change in technology world, it leads to improve e-banking services of various
banks. Traditional branch model of bank is now changing into new form of e-banking
services like kiosk marketing machine, coin vending machines of SBI. It provides various
advantages to customer of various banks.Now-a-days people are educated more than olden
days, today human lives becomes machine oriented and they dont have enough time to visit
bank branch than ever before.
E-Banking means providing banking products and services through electronic delivery
channels like ATM,Internet banking,Telephone banking and other electronic delivery
channels.SBI has over 4500 ATM centres in India approximately. Automated Teller Machine
(ATM) is electronic computerised telecommunication device that allows a customer to
directly use a secured method of communication to access their bank accounts or make cash
withdrawals and other services. Internet banking highly useful to the customer one who have
computer with internet connection, they need not visit bank branch for their business
transactions. Simply they can transact anywhere, anytime if they have internet connection. By
dialing the telebanking number customer can get various facilities like cheque book request,
balance inquiry etc.

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International Research Journal of Business and Management IRJBM

ISSN 2322-083X

State bank of India introduced coin vending machine, kiosk marketing machine for their
customers to get their services quickly without delay. Apart from these services, SBI provide
SBI e-tax, demateservices-pay, State bank mobicash.
STATEMENT OF THE PROBLEM
SBI introduced ATM facility since the last four-five years. As the use of ATM is increasing
day by-day, it is important to study the customer preference towards use of ATM services in
Kumbakonam city. This study is one of such an attempt. Identification of information needed
to solve the problem,Selection or development of instruments for gathering the
information,Identification of target population and determination of sampling
procedure,Design of procedure for information collection,Collection of information,Analysis
of information,Generalizations and/or predictions.
OBJECTIVES OF THE RESEARCH

To evaluate the awareness of E-Banking among the customers of SBI.

To measure the customer satisfaction in E-Banking services provided by SBI.
To study the most preferred E-Banking service offered by SBI
To know which age group of customers is using different e-banking facilities.
To know the cause why customers are not using internet banking.

LIMITATION OF THE STUDY

Some respondents were hesitating to give true responses.

The data was collected within 1 month time period.
The inferences apply only to the respondents of Kumbakonam City and are not
applicable to any other place and cannot be generalized.

RESEARCH METHODOLOGY
This research follows the survey research methodology based on previous research in related
area;a questionnaire was constructed to study the customer preference towards e-banking
services of banks. After pilot testing the questionnaire was administered to 200 persons who
have account in SBI.Here we take minimum age as 20 years. The data was obtained through
the use of structured questionnaire and convenience sampling.The data were analysed with
percentage method, frequencies and correlation, chi-square tests.Charts and tables are also
prepared.
REVIEW LITERATURE
Abou-Robich, Moutaz (2005)studied how to analyse comfort levels and attitude of users
towards online banking facilities. The findings resulted that there is a correlation between
attitude towards e-banking and feeling of security with regard to their demographic variables.
Isern, Jennifer (2008) pointed out that a positive relationship between the level of financial
infrastructure and the level of competition and a negative relationship between the degree of
state ownership in a banking sector and the level of competition.
Reynolds, John (2007) said that 2006 e-banking technology services industry customer
loyalty survey data results in order to improve marketing resource allocation for corporate ebanking products and services.

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International Research Journal of Business and Management IRJBM

ISSN 2322-083X

Huang, Haibo (2005) reveals that the successful introduction electronic money and ebanking services depends mainly on people acceptance.The major finding is that although ebanking customers more or less have some common characteristics, they differ across
different types of e-banking services.
Taft, Jeanette (2007) pointed out that Technology Acceptance Model (TAM) as applied to a
specific type of technology: e-banking.They suggested that e-banking prior training,
perceived ease of use of e-banking technology.
Jeon, Kiyong (2014) have said that consumer prefer larger banks in U.S.Because they has to
reduce their transportation cost by way of larger banks have multiple ATM centres across
the country.
Lee, Jihyun (2003) examined that to identify whether customer intention affecting to use
online financial services.The effects of attitude toward behaviour,subjective norm were
examined.Demographic variables were included as control variables.
Ding, Xin (2007) reveals that consider for research consumer behaviour on internet in the last
years.The findings conclude that customer behaviour from self-service, Service quality and
experience design perspectives.
Wamalwa, Tom (2006) said that whether internet banking strategies were aligned with the
banks core business based or not identified.
Featherman, MauricioSanchez (2002) studied that perceived risk inhibited consumer
adoption intentions as well as perception of the usability, usefulness of online payment.
Bayles, MichelleEsther (2004) have said that investigating factor contribute their decision to
bank online, frequency of banking activities.
Massad, Nelson (2003) contributed at a theoretical level by providing deeper understanding
of the transactions between customers and service providers.
Yee Yen, Yuen (2011) have said that comparison between factors affecting consumer
acceptance of internet banking services between developed and developing countries.
Siregar, DonaD (2004) investigate that the relative importance of different factors influence
bank decision on going public over consolidating with other banking organisations.Many
banks experienced consolidation through merger acquisitions (M&A).
Bauer, Keldon.J (2002) examined that bankers and consumers are both interested in the
potential for internet banking. Thefindings show that banks too have been developing their
infrastructure to address what they perceive as a growing demand for online services.
Yousafzai, Shumaila Yakub Khan (2005)has said that to develop aconceptual model that
determines how intentions towards the use of internet banking are formed and to what extent
they are related to the actual use of internet banking.
Ubadineke, Francis.N (2009) indicated that advances ininformation technology and
telecommunications are resulting in new delivery channels for bank products and services in
the developing countries.

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International Research Journal of Business and Management IRJBM

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Nor, KhalilMd (2005) results indicate that the model provides a good understanding of
factors that influence the intention to use internet banking.
Chen,Lisa(2012)
studied
that
will
increase
our
understanding
in
financial,accounting,management of information system,business administration and decision
making related to the adoption of Internet banking in Mainland China.
Adham, KhairulAkmaliah (2000) indicated that Malaysian banks could be grouped into two
in regard to their reasons for adopting the electronic delivery systems.
DATA ANALYSIS& INTERPRETATION
In the present scenario preference among customer for e-banking services of banks is differ
from one person to other person, so to understand preference of different customer the
researcher have used various dimension such as usage of e-banking service,most preferred
service, convenience,security, accessibility,satisfaction level of customer using internet
banking.
Table 1- FREQUENCY ANALYSIS OF DEMOGRAPHIC VARIABLES
Variables
Gender

Age

Educational Qualification

Occupation

Category
Male

Frequency
159

Percentage
frequency
79.5

Female

41

20.5

20-25
26-35
36-45
46-60
Above 60
Up to SSLC
UG
PG

41
67
67
20
5
10
70
70

20.5
33.5
33.5
10
2.5
5
35
35

Professional
Other
Business

30
20
20

15
10
10

Employee

70

35

Professional

30

15

Student

70

35

Other

10

Source: Primary data

Above table 1- shows that most of the respondents are men (79.5%), they are using e-banking
service in research area as compared to women in the city. On a Percentage basis, 26-35 age
group falls on 33.5%, similarly 36-45 age group falls on the same percentage.35% of
respondents qualification is UG and also same percentage of qualification is PG too. Out of

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International Research Journal of Business and Management IRJBM

ISSN 2322-083X

200 respondents, 35% of them are employee and as well as student and remaining fall under
other category.
Table 2- Relationship between Occupation & Their Use of E-Banking Services
Correlation
Occupation

Occupation

E-banking services

0.086

Above table 2 shows that there is a weak relationship between occupation and use of EBanking services of SBI. This means that changes in occupation are not correlated with
changes in use of E-Banking services of SBI. If r = 0.01, finally it conclude that these
variables were not strongly correlated.
Table 3- Correlation between Convenience and Ease of Use in Banking Website

Correlation
Rate convenience as a
reason for opening
account

Rate convenience as areason

for opening account

View about ease of use in bank

website

0.368

Above table 3 shows that there is a strong relationship between convenience as a reason for
opening internet account and view about ease of use in bank website.It clearly shows that
changes in convenience are correlated with changes in view about ease of use in bank
website.It concludes that these variables were strongly correlated.
Chart 1- Frequency Analysis of Most Preferred E-Banking Services ofSBI

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International Research Journal of Business and Management IRJBM

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Above chart -1 indicate that 42% of respondents were prefer ATM &Online banking for their
day-to-day activities. 23% of them were preferred using ATM as their next preference in
various e-banking channels. 17% of the respondents were preferred mobile banking because
new applications are introduced day by day by the information technology world.so it is
highly useful to them to transact fraction of second using new mobile banking
applications.Sms banking preferred by 4% of the respondents.
Chart 2- Reasons for Non-Adoption of Internet Banking By the Customers

Above chart 2 shows the results that main reason for not opening an internet bank account by
the customers of SBI. Based on this study finds that major reason that literacy level is low as
compared to other cities because they depend on mainly agriculture business in this area and
also customers of State bank of India not aware of internet banking facilities and they dont
know how to use it.
Table 3- Based on Age Group Preference onE-Banking Facilities ofBanks.
Age
20-25
26-35
36-45
46-60
Above 60
Source: Primary data

Preference on e-banking facilities

80
50
30
22
22

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Chart 3 Based on age group preference on e-banking facilities

Above chart 3- resulted that 80% of the respondents under 20-25 age group category were
prefer ATM& Online banking for their financial transactions.26-35 age group were prefer
ATM&Mobile banking. 30% of the respondent under 36-45 were prefer ATM.Remaining 4660 age group and Above 60 age group category prefer ATM,Sms banking, Telephone
banking, other etc..
Table 4- Customer Satisfaction Level in Internet Banking Website
Variables

Mean Rank

Page setup/menu flow

1.22

Ease of use/navigation

1.45

Speed of page loading

1.57

Content

1.39

Variety of transactions

1.22

Visual design

1.70

Chi-square significance at 5%level

90.440
Df=3
P=0.000

Above table 4 shows that outcome of satisfaction level of customer using bank website. It
clearly resulted that significant value = 0.000,so null hypothesis(H0) is accepted, there is a
significant relationship between view about internet banking website and customer
satisfaction.

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International Research Journal of Business and Management IRJBM

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Table 5- Relationship between factors as a reason for opening internet bank account.
Variables
Convenience
Ease of use
Security
Accessibility
Bank service
User friendliness
Customer relations
Account security
Online shopping

chi-square value Significant value

102
0.000
237
0.000
267
0.000
262
0.000
274
0.000
135
0.000
97
0.000
527
63

0.000
0.000

Results
H0 is accepted
H0 is accepted
H0 is accepted
H0 is accepted
H0 is accepted
H0 is accepted
H0 is accepted
H0 is accepted
H0 is accepted

Above table 5 shows that outcome of relationship between various factors like convenience,
accessibility, ease of use, security, etc are important reason for opening an internet bank
account. Based on this analysis find that there is a significant relationship between reason of
opening bank account and security of transaction, ease of use, accessibility, bank service
online shopping, and customerrelations significant relationship between them.
FINDINGS, RECOMMENDATIONS & CONCLUSION
It is found from this study that younger generation were using electronic banking services are
more as compared to older generation because of new innovation in information technology
and their adoption level is high in e-banking .Above 60 age group category were using ebanking services are less than others.Risk is one of the factor customer were consider while
opening an internet bank account .They didnt feel secure in the internet banking. The
respondents preferred ATM, Online banking, Mobile banking, Sms banking for their
financial transactions. From customer point of view that private bank provide better services
as compared to public banks, But for secured transaction public banks will be preferred by
most of the respondents.
On the basis of data analysis and interpretations, the following suggestions can be made,
To increase awareness among people, SBI should advertise and conduct special awareness
programs to make E-Banking services more popular among customers.SBI should increase
ATM centres nearby customer place like cinema theatres, markets etc.Most of the
respondents like E-banking services provided by SBI.But they hesitate to use because they
dont know how to use it in correct manner. SBI should try to give proper training or other
solution to solve this problem and it should try to improve their service level to face the stiff
competition given by other commercial banks.
E-banking technology is highly useful to customers as well as banks and other organisations
like government organsiations.To increase productivity, efficiency, service quality of banks,
expansion of banks globally e-banking is major important of all commercial banks to adopt in
their countries as well as their customers. SBI should try to maintain proper system of
maintenance for internet banking.

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International Research Journal of Business and Management IRJBM

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REFERENCES
1. Abou-Robieh, Moutaz A study of e-banking security perceptions and customer
satisfaction issues.(2005)
2. Ding, Xin Three studies of service operations and customer experience design in
online services (2007).
3. Featherman, Mauricio Sanchez Evaluative criteria and user acceptance of Internetbased financial transaction processing systems (2002).
4. Huang,HaiboEssays in electronic money and banking(2005)
5. Isern,Jennifer A cross-country analysis of the effects of e-banking and financial
infrastructure on financial sector competition: A Schumpeterian shift?(2008)
6. Jeon, KiyongEssayson banking industry: ATM(Automatic Teller Machine)(2014)
7. Lee, Jihyun Factors affecting intention to use online financial services (2003).
8. Reynolds, John A retrospective data examination of customer loyalty in the ebanking technology services industry: Strategies for new successes(2007)
9. Taft, Jeanette An examination of the antecedents of electronic banking technology
acceptance and use(2007)
10. Wamalwa, Tom The impact of internet banking on banks: A descriptive and
evaluative case study of a large United states bank (2006).

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