laggards and movers of internet banking

8/7/2019 Laggards And Movers Of Internet Banking

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Laggards And Movers Of

Internet BankingIn India

Student Name: Faculty Guide:

Ms. Sneha Bhatt Dr. R. S. Rai


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Company Profile

Standard Chartered Bank is the largest international banking Group inIndia with 78 branches in 30 cities. The Bank is having a combined customer base of 2.5 million in retail banking and over 1200 corporatecustomers.

The name is derived from Standard & Chartered. Standard Bank of BritishSouth Africa merged with Chartered Bank of India, Australia and Chinain 1969.

The key businesses of Standard Chartered Bank in India include consumerbanking - primarily credit cards, mortgages, personal loans and wealthmanagement - and - wholesale banking, where the Bank specializes in theprovision of cash management, trade, finance, treasury and custodyservices.


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MethodologyResearch Instrument:Questionnaire: A total of 200 customers were contacted and 187 correctlycompleted questionnaires were obtained from all categories of customers (thebreakup of which is given in Table 1). The respondents were asked to assess theirbanks performance, various expectations, threats, etc on each of the criteria ofservice quality on a five-point Likert scale (ranging from 1 indicating stronglydisagree to 5-indicating strongly agree).

Sampling Plan:

The study entailed data collection in India. The sampling method can be descriedas random sampling, as care was taken to complete designed number of questionnaires from both the genders, income levels, age. Data was collected bypersonally contacting the respondents and explaining in detail about the survey.

Tools for Data Analysis:

Basically MS Excel and SPSS 17 software has been used to conduct analysis.


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Introduction

Transition from Traditional Banking to Internet Banking

Traditionally spoken, a bank is a financial institution licensed by acountrys government. Its most important activities include borrowing and

lending money. Many other financial activities were allowed over time likeconducting checking of current accounts for customers, paying cheques drawn bycustomers on the bank, and collecting cheques deposited to customers' currentaccounts. Banks also enable customer payments via other payment methods suchas telegraphic transfer, ATMs etc... Slowly we saw the evolution of Internet

Banking. Internet Banking or Online Banking basically refers to systems thatenable bank customers to access accounts and general information on bankproducts and services through a personal computer (PC) or other intelligentdevice. Traditional banks have been fulfilling the above functionsoutstandingly, and internet banks intend to continue the same function. The

only difference is in the way the transactions are made.


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DataAnalysis

Basis Pro Internet Banking Against Internet Banking

Age 30-45 (23%), 45-60 (8%) 18-30 (33%)

Gender Males (61%) Females (79%)

Literacy Post Graduates (23%), Graduates

(18%)

Post Graduates (18%), Graduates (15%)

Income Rs.1.5L-3L (23%) Under Rs.1.5L (26%), 3L-6L (13%)

Ease ofOperations

Very Easy (25%), Easy (21%) Easy (20%), Neutral (15%)


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DataAnalysis

Potential Utilities Preferred By Customers

Account balance

44%

Investment

13%

Loan

10%

Money Transaction

33%

Internet Banking Utilities Opted By Customers

35%

13%13%

39%Account balance

Investment

Loan

Money Transaction

CURRENT T REND

FUT URE POSSIBI L I T Y


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DataAnalysisBasis MostMotivated Least Motivated

Motivating

Factor

Instant Balance Checking, Anytime

Transaction, Anywhere Transaction(3.7)

Minimizing Monthly Charges (2.8)

Gender Females-Instant Balance Checking(4.5)

Males-Minimizing Monthly Charges(2.6)

Marital Status Single-Anywhere Transaction (4.7) Married-Minimizing MonthlyCharges (2.2)

Education Technical College-Anytime

transaction, Instant balancechecking (approx 5)

Class 12- Anytime Transaction

(approx 1)

Income Rs.6L above-Instant Balance

Checking, Anytime Transaction,Anywhere Transaction (3.7)

Rs.3L-6L- Monthly charges,

Security of transactions (1.9)

* 5 being maximum rating for every individual factor


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DataAnalysisBasis Highest Threat Lowest Threat

Income Under Rs.1.5L-Security of

online transactions (4.8)

Rs.3L-6L-Precautions for

online setting (2.8)

Education Technical college-Hacking,Misuse of Confidential data

(approx 5)

Class 12-Security of onlinetransactions, Precautions

for online setting (1.0)

Age 18-30- Hacking (3.9) 45-65- Virus/Worms/

Malware (2.5)

Marital Status Single-Hacking (4.1) Married- Virus/Worms/

Malware (2.7)

Gender Female-Hacking (4.1) Males- Virus/Worms/

Malware (3.0)

* 5 being maximum rating for every individual factor


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Conclusions & Suggestions

Part 1 The process of implementing Internet Banking should start with

familiarizing the customer to new environment by demo version of software on bank's web site. This might contain a tour through the

features which are to be included. Next phase provides services such as account information and balances,

statement of account, transaction tracking, mail box, check book issue,stop payment, financial and customized information.

The next phase may include additional services such as fund transfers,

DD issue, standing instructions, opening fixed deposits, intimation ofloss of ATM cards.

The last phase should include advanced corporate banking services likethird party payments, utility bill payments, establishment of L/Cs, CashManagement Services etc.


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Conclusions & Suggestions

Part 2Another unconventional option to this hitch could be by starting up an

Internet Banking setup located at the physical setup of banks where there

will be many computer systems connected to the internet located within thebanks itself. On these systems those customers of the banks who like to do

traditional banking can come and make the transactions all by

himself/herself in the banks premises through the internet. This way

Internet Banking can be picked up from any banks very own premises and

slowly spread to offices and homes.


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Sources1. http://en.wikipedia.org/wiki/Standard_Chartered_Bank2. Dovvling, G. & Staclin, R. (1994), "A model of perceived risk and

intended risk handling aetivity", Journal of Consumer Research. 3.223-232.

3. http://ezinearticles.com/?A-Brief-History-of-Internet-

Banking&id=3534504. http://www.onlinebankingreport.com/subscriptions/subscription.ht

ml?pid=1&PHPSESSID=20090619061731342627556

5. http://www.banknetindia.com/banking/ibkgintro.htm

6. Kim, K. and Prabhakar, B. Initial Trust, perceived risk and the

adoption of internet banking, (online) (cited 18 July, 2005, Availablefrom: .

7. http://www.icmrindia.org/casestudies/catalogue/IT%20and%20Systems/The%20Indian%20Internet%20Banking%20Journey-IT%20and%20Systems.htm

8. http://www.management-hub.com/cm-online-banking.html

laggards and movers of internet banking

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