A report on The study of consumer awareness about E-Banking services and its application in selected area of Bangladesh

Introduction E-banking is defined as the automated delivery of new & traditional banking products & services directly to customers through electronic, interactive communication channels. E-banking includes the systems that enable financial institution, customers, individuals & businesses to access accounts, transact business or obtain information on financial products & services through a network including the internet.

The popular services covered under E-banking include:-

1. Automated Teller Machines2. Credit Cards3. Debit Cards4. Smart Cards5. Electronic Funds Transfer (EFT) System6. Cheque Truncation Payment System7. Mobile Banking.

Objective of the study The purpose of research is to discover answers to questions through the application of scientific procedures. The main aim of research is to find out the truth which is hidden and which has not been discovered as yet. Though each research study has its own specific purpose.

To know the awareness level of E-Banking in Dhaka City.To analyze the customer satisfaction level in Dhaka City.To know the problems in E-Banking operation faced by customers.To know the customers suggestions about new required features.

Research Methodology For this particular research we have used scientifically made questionnaire to do a survey to know about the consumers. The research survey was answered by a mix group of people living in Dhaka City. The survey was conducted through questionnaires to a group of people and only 50 respondents filled in our survey that focused on gathering information about awareness, usage of and expectations about the internet banking.

Research Question Research Design Sample size Sampling Method Data Collection

The respondent profile who participated in the study is given below

Sex Consumers pool Percentage Male 28 56% Female 22 44% Education High school 1 2% Undergraduate 36 72% Post Graduate 13 26%

Limitations There are certain limitations we have faced during this data collection period through these surveys. In our country, consumers are more likely to be conservative so that to process the information is difficult. Besides that, we have faced some more limitations. Those are stated below:

Consumers are not familiar with surveys.Many are not interested in giving their opinions.Information is not precisely given.Time consuming because of the awareness about surveys.Narrow sample size.Banks are not helpful for disclosing information.They do not permit to meet any of the employees in their bank.

Literature Review The vast majority of the banks that avoided Internet banking in the beginning did so because they simply did not see the benefits of using it. Polatoglu & Kin (2001) state that the average internet banking transaction costs the institution only one twentieth of teller transaction.On the importance of trainability, Rogers (1983) and Agarwal and Prasad (1998) stated that potential adopters of new technology, who are allowed to experiment with it, would feel comfortable with it and thus be more likely to adopt it. According to Tan and Teo (2000) if customers are given the chance to try the innovation, it will minimize certain fears, especially when customers found that mistakes could be rectified and thus providing a predictable situation. A more rapid diffusion occurs when consumers can have low-cost or low-risk trial of the service. Internet banking services are free. The cost and risk to trial are relatively low especially when Internet access is available from work.

Findings In this research we have selected 5 questions to determine the overall awareness level of the consumer on E-Banking in Dhaka. The people we use in our research are maximum undergraduate. But we ensure that they all have at least 1 bank account so that it would be easy to evaluate the results.

Through these following 5 questions we have evaluated the mean and the standard deviation level to determine the consumer awareness level which is the main objective of the research.

At first we have determine a descriptive statistics on the awareness about the E-banking tools from the Yes-No questions. The result is given below:

According to the standard deviation here, we can see that consumers are aware of ATM than the other E-Banking tools.

Q.1 Awareness level of the following E-Banking tools

Here we can say, according to the standard deviation consumer are most likely to be aware of Internet banking.

Q.2 Frequency level of using E-Banking tools

According to the descriptive statistics we can see that the credit card use has the least standards deviation so that it has the most frequent used E-banking tools.

Q.3 Convenience level of using E-Banking tools

In here, Internet Banking got the least standard deviation.

Q.4 Preference level of using E-banking tools than physical banking

Internet Banking got the most preference.

Q.5 Rate of overall satisfaction level with e-banking

Consumers are more likely to be satisfied with credit cards.

Recommendations After conducting the research we have concluded some recommendations for the banks to modify their banking system to meet the customer satisfaction level. The recommendations are stated below:

Banks should use several field programs to raise the awareness level especially about Internet Banking & Mobile Banking.Govt. should take several steps to raise the awareness level in the remote areas.Several media should be used to tell the detailed facilities of E-Banking rather than physical banking.Internet bandwidth and security level should be increased to secure the Internet banking system.Banks should ensure the safety level of Internet banking.ATM Booths should be maintained properly to reduce the harassment level.Banks should be more co-operative to dissolve the problems of the consumers.The operating procedures of Internet banking should be more convenient.Conditions for the credit cards should be loosening up.The whole banking procedures should be more advanced and feasible.

Conclusion According to the research done above we can conclude that the rate of consumer awareness about E-Banking in Dhaka is considerably good but the matter of fact is that people are using ATM and Mobile Banking as the E-Banking tools where the ratio of the use of Internet Banking is relatively low. In those two most usable E-Banking tools ATM is giving too much hassle so that consumers are also being diverted towards physical banking. People are still not so familiar with the service so, consumers should be aware of the Internet Banking system to be as fast as the consumers around the globe. So, Banks and Govt. should take necessary steps to raise the awareness level and meet the satisfaction level through the existing E-Banking tools.

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