Impact Of Internet Banking On Bankers Satisfaction Finance Essay - Free Essay Example

Sample details Pages: 5 Words: 1548 Downloads: 9 Date added: 2017/06/26 Category Finance Essay Type Analytical essay Did you like this example? In last few years, Indias banking system has several outstanding achievements to its credit. Banks are now no longer confined to only metropolitans or cosmopolitans in India. In fact, Indian banking system has reached each and every corner of the country. It has also helped in growth process of India. The first bank in India was established in 1786. Journey of Indian Banking System can be segregated into three distinct phases- Don’t waste time! Our writers will create an original "Impact Of Internet Banking On Bankers Satisfaction Finance Essay" essay for you Create order Phase -I Early phase from 1786 to 1969 In this phase deposit mobilization by banks was very slow. People preferred Postal Saving bank facility offered by Department of Post of Government of India as it was comparatively safer and convenient. Phase- II Nationalisation of Indian banks In July, 1969, fourteen major commercial banks in the country was nationalised. In 1980 seven more banks were nationalised. This step of Government of India brought 80% of the banking segment in India under its ownership. Nationalisation of banks had a very positive impact on their deposits and advances. Phase-III Indian Banking Sector Reforms (From 1991- Till Date) Indian Banking Sector reforms helped in introduction of many more products and facilities in the banking sector. In 1991, the process of liberalisation of banking practices was started. It resulted in entry of foreign banks in India. New services like mobile banking, Net banking, Phone banking, ATM services etc. was introduced for the first time in the country.The entire system became more convenient and swift. Time is given more importance than money. Introduction of concept of Information Technology helped banks in improving customer service, book keeping, MIS and productivity. RBI played very important role in insisting banks for adoption of Information Technology for its daily operations. It has helped banks in reducing their administrative costs. Online banking facility has enabled customers to access their accounts, take print out of bank statements and even transfer of money without leaving the comfort of their home or office. So we can say that in addition to its convenience, online banking also helps in savings time and money. Banks are using Information Technology to increase returns on investment, improve customer relationship management (CRM) and employee productivity. But, with reduction in cost of transactions, it has also brought certain risks to bank like Transactional risk which is the most common form of risk associated with internet banking. Security risk may also arise on account of unauthorized access to a banks critical information stores like accounting system, risk management system, portfolio management system, etc. In addition to these external attacks, banks are also exposed to certain security risk from internal sources e.g. employee fraud. Compared to banks in foreign countries, Indian banks offering online services still have a long way to go. LITERATURE REVIEW Balasubramanya S. (2002) in his study examined that the automation in the banking sector has come a long way starting with the Rangarajan Committee report on the banking sector reforms in the eighties, followed by reports of the Narasimhan Committee in the nineties. With more than 65,000 branches of the banks (public, private and the cooperative sector) in the India, the researcher have found that the percentage of branches enclosed by automation was not satisfactory and there is need to speed up process of automation. Vij Madhu (2003) in her study examined the varying profile of Indian banks with the help of a comparative study of three private sector banks in India namely ICICI bank, HDFC bank and IDBI bank. The comparative examination of the 3 private sector banks shows that HDFC is at number one, ICICI at number two and IDBI Bank at the bottom in area of usage of Information Technology. In the study the investigator emphasised that in future challenge would be to take maximum advantage of Internet Banking. Rajshekhara K. S. (2004), in his research concluded that at present IT has become an inseparable part of banking industry. The adoption of IT in the banking sector has resulted in the development of various concepts of banking such as Electronic banking, Internet Banking, Online Banking, Telephone Banking, ATM services etc. Information technology has helped in providing certain quick service with low transaction cost to the customers resulting in customers satisfaction. Security is also one important issue in the area of concern in E-banking. The development of technology for minimizing costs, reducing frauds in this sector. This study has not covered views of bank employees on computerization of banks. Ananthakrishnan G. (2005) in his study found that customers expectations are increasing. At the present time customers are no longer willing to wait in queues and want prompt services. Researcher found that banks must provide following services to its customers to retain them- Quicker payment/receipts in cash counter Optimistic attitude of the bank staff Proper attention to the customers and time bound services Sakalya Venkata (2007) in his study have identified 15 important factors for bank customers i.e. Safety of Deposits, Size and Strength of bank, Accuracy in transactions,General Service Quality, Speed of Delivery, Proximity, Security, attitude of Staff, Service Charges, Bank Product, Image in eyes of General Public, Bank image in eyes of Peer, Face Lift (Structural), friendship with Bank Employees and Advertisement and Publicity. According to the findings, based on the experimental study, the first six factors have the maximum influence, next four have moderate influence and the rest five have comparatively lower influence. Thus, retail banks must give due attention to these factors. Kamakodi et al.(2008) have done one survey and obtained views of 292 respondents on issues related to electronic banking channels. He concluded that beyond a point, IT along with personal touch will be essential for the banks to retain existing customers and to attract new ones and banks have to make strategy for the same. Sharma Himani, Aggarwal Vikrant (2010) The employment of the Tata Consultancy Services(TCS) Bancs Core Banking at the State Bank of India (S.B.I.) in addition to its affiliate banks symbolize the largest centralized core system implementation ever performed.The overall effort incorporated the conversion of about 140 million accounts held at 14,600 domestic branches of State Bank of India and its affiliate banks. This study outlines the history of the State Bank of India details the effort to modernize the banks core processing system. It also recognizes the drivers to modernization, the critical success factors, as well as the conversion method. RESEARCH METHODOLOGY Objectives of the Study: The present study was undertaken with the following objectives: 1. To evaluate the impact of Internet banking services on bankers performance in terms of customer base, profitability, work pressure on staff, speed and correctness of work, customer relations, fraud control etc. 2. To evaluate the Impact of Internet Banking services on banks customer satisfaction in terms of saving of time, convenience etc. 3. To have a comparison between the Information Technology enabled services provided by selected public sector, private sector and foreign banks. 4 To suggest various measures regarding Internet banking through which performance and customer satisfaction can be improved. Hypotheses: The following Hypothesis would be tested- H1a: There is a significant difference between public, private and foreign banks on the basis of impact of Internet banking on Bankers Performance. H1b: There is a significant difference between public, private and foreign banks on the basis of impact of Internet banking on Customer Satisfaction. Data Collection and Analysis: In this study, total six banks i.e. State Bank of India ICICI Bank Ltd. Standard Chartered Bank,Punjab National Bank HDFC Bank Ltd. HSBC Ltd are identified for the study so that adequate representation to public sector, private sector and foreign banks could be given. Further two states i.e. Haryana and Punjab and two Union Territories i.e. Delhi and Chandigarh are identified for study. In next step Ludhiana of Punjab, Gurgaon of Haryana are identified where all six banks have their branches. Next step would be to select one branch of each bank from Ludhiana, Gurgaon, Delhi and Chandigarh using random sampling technique. Next step would be to select twenty five customers of each branch of the sample banks using convenience sampling. Structured Questionnaire would be made for them. Senior Manager of each selected branch would also be given Questionnaire to collect necessary data for research.Both primary and secondary sources of data would be used for analysis.The primary data would b e collected through two questionnaires i.e. one for customer and one for the bankers. The first questionnaire would be formulated to know the customers views and second questionnaire would be designed to study the opinion of bankers. The secondary data would be collected from the Reserve Bank of India publications and from the websites of the sample banks. For the analysis of the data, appropriate statistical techniques and tests like Chi Square test etc. would be used. Nature of the study This study is descriptive cum exploratory study. Sampling Technique- Radom Sampling Technique is used for selection of branches of selected six banks. Convenience Sampling would be used to select 600 customers of 24 selected branches i.e. 25 customers from each branch. LIMITATIONS OF THE STUDY 1 Study is confined only to six selected banks. 2 Study is limited to only two states i.e Haryana and Punjab and two Union Territories i.e. Delhi and Chandigarh 3 Primary data would be collected only from 25 customers from each 24 selected branchs of 6 banks due to limited time and other resources