Journal of Contemporary Issues in Business and Government Vol. 27, No.
05, 2021
https://cibg.org.au/
P-ISSN: 2204-1990; E-ISSN: 1323-6903
DOI: 10.47750/cibg.2021.27.05.083
CUSTOMER SATISFACTION TOWARDS E-BANKING SERVICES
WITH REFERENCE TO ICICI BANK
Dr.P.KANAGARAJU
Assistant Professor and Research Advisor, PG and Research Department of Commerce,
Thanthai Hans Roever College (Autonomous),
Perambalur-621 220, Tamil Nadu.
G.BALAMURUGAN
PH.D Research Scholar, PG and Research Department of Commerce,
Thanthai Hans Roever College(Autonomous), Perambalur-621 220, Tamil Nadu Affiliated to
Bharathidasan University, Tiruchirappalli, Tamil Nadu.
Reference Number:16446/Ph.DK4/Commerce/Part-time/October 2017.Date.22.08.2017
ABSTRACT
Indian banks are trying to make your life easier. Not just bill payment, you can make
investments, shop or buy tickets and plan a holiday at your fingertips. In fact, sources from
ICICI Bank tell us, "Our Internet banking base has been growing at an exponential pace over
the last few years. Currently around 78 percent of the bank's customer base is registered for
Internet banking." To get started, all you need is a computer with a modem or other dial-up
device, a checking account with a bank that offers online service and the patience to complete
about a one-page application- which can usually be done online.
Key words: customers, satisfaction, ICICI bank.
INTRODUCTION:
E-banking is defined as the automated delivery of new and traditional banking products and
services directly to customers through electronic, interactive communication channels. E-
banking includes the systems that enable financial institution customers, individuals or
businesses, to access accounts, transact business, or obtain information on financial products and
services through a public or private network, including the Internet. Customers access e-banking
services using an intelligent electronic device, such as a personal computer (PC), personal
digital assistant (PDA), automated teller
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DOI: 10.47750/cibg.2021.27.05.083
machine (ATM), kiosk, or Touch Tone telephone. While the risks and controls
are similar for the various e-banking access channels, this booklet focuses
specifically on Internet-based services due to the Internet’s widely accessible
public network. Accordingly, this booklet begins with a discussion of the two
primary types of Internet websites: informational and transactional.
E-banking can be offered in two main ways. First, an existing bank with physical
offices can also establish an online site and offer e-banking services to its
customers in addition to the regular channel. For example, Citibank is a leader in
e-banking, offering walk-in, face-to-face banking at its branches throughout many
parts of the world as well as e- banking services through the World Wide Web.
Citibank customers can access their bank accounts through the Internet, and in
addition to the core e-banking services such as account balance inquiry, funds
transfer, and electronic bill payment, Citibank also provides premium services
including financial calculators, online stock quotes, brokerage services, and
insurance.
STATEMENT OF THE PROBLEM:
India's handset market, one of the largest in the world, continues to grow strongly every
year. Back in the early 2000s, mobile phones were typically only found in key urban
centers and primary cities due to the low number of models in the market, high handset
costs, expensive tariffs and limited network coverage. The situation has changed over
the past few years with the entry of more global brands and the emergence of
homegrown manufacturers in the handset market. Wider availability of more affordable
handsets, including Smartphone’s, and significantly lower call rates has catalyzed
growth in the market, most notably in rural areas. Competition within the crowded
market is intense with more than 50 device manufacturers now selling their products.
Foreign mobile market is making use of the brand name to steal Indian mobile market
brand though low price module, high end latest features and many such. Students are
the key -player in mobile market, hence their preference towards market needs
thorough study. Worldwide Smartphone market grew at a robust CAGR (compound
annual growth rate) of 31.6% during 2011-2015 due to increased preference of
consumers for advanced phones, increased penetration of low-cost devices (sub-$125)
in the emerging markets and ongoing replacements in the mature markets.
NEED FOR THE STUDY
One has to approach the branch in person, to withdraw cash or deposit a cheque or
request a statement of accounts. In true Internet banking, any inquiry or transaction
is processed online without any reference to the branch (anywhere banking) at any
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Journal of Contemporary Issues in Business and Government Vol. 27, No. 05, 2021
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P-ISSN: 2204-1990; E-ISSN: 1323-6903
DOI: 10.47750/cibg.2021.27.05.083
time. Providing Internet banking’s increasingly becoming a "need to have" than a
"nice to have" service. The net banking, thus, now is more of a norm rather than an
exception in many developed countries due to the fact that it is the cheapest way of
providing banking services. Banks have traditionally been in the reform of
harnessing technology to improve their products, services and efficiency.
OBJECTIVES OF THE STUDY:
To study about the factors that affects the customer perception towards e-
banking of ICICI bank.
To know about the satisfaction level of customer towards e-banking services.
To find out the major problems faced by the customers while using e- banking
services.
REVIEW OF LITERATURE
Singh and Malhotra (2007) made an attempt to discover factors affecting a
bank’s decision to adopt internet banking in India. The study was based on 88
banks comprising of public, private and foreign banks covering financial years
from 1997 to 2005. The results of the study showed that large banks having high
fixed expenses, high income and expenditure tend to use more technology. Banks
had used internet banking as complementary channel to existing branch network.
However, the private and foreign banks were quick adopter to internet banking
than public sector banks. The adoption of this innovation by other banks increases
the probability that a decision to adapt will be made as it has increased the
profitability and productivity of banks.
Suresh (2008) highlighted that recently developed e-banking technology had
created unpredicted opportunities for the banks to organize their financial
products, profits, service delivery and marketing. The objectives of the study were
to evaluate the difference between traditional and e-banking, and to identify the
core capabilities for the best use of e-banking. The author analyzed that e-banking
will be an innovation if it preserved both business model and technology
knowledge, and disruptive if it destroys both the model and knowledge. He also
differentiated e-banking from traditional banking in five ways, namely, value
proportion, market scope, cost structure, profit potential and value network.
Manoharan (2007) highlighted the e-payment system in India and its
performance impact on Indian banking sector. The author described that
competition in banking industry had forced the banks to rethink the way they
operate their business. So, e-banking has made it possible to find alternate
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DOI: 10.47750/cibg.2021.27.05.083
banking practices. In the paper, the author divided the payment system in
India into three parts, i.e., large value payment system, retail payment system,
and retail electronic system. Each one includes different categories of e-
payment. The author studied the performance of various Indian payment
systems in the last three years in which RTGS emerged as the principal
payment system in India for wholesale payment. The study focused that
having a huge opportunity of e-payment system in India still 90 per cent of
transactions were cash based. So, an effort should be made to increase the use
of e-payment, and RBI should make efforts to strengthen the legal framework
of electronic banking system.
DATA COLLECTION:
Primary data refers to the data, which is collected for the first time. The primary data
collection was done with the help of questionnaire method.
Secondary data refers to the study made by others for their own purposes. It was
collected from books, journals, magazines and websites.
TOOLS USED FOR DATA COLLECTION:
The required data for this analysis were gathered by adopting questionnaire method.
Simple percentage analysis were admired in all questions were ever required and
multiple regression analysis were used for satisfaction.
SAMPLE SIZE:
In this research project Descriptive research design is used. Judgment and
Convenience sampling method will be used to get the information about
online banking. This method is used because we are interested in
exploring gender, age, or occupation disparities in terms of online banking
in the population. For conducting this research, a structured questionnaire is
prepared and sample of 50 customers is taken from ICICI bank.
NEED OF THE STUDY:
Satisfaction is the customer‘s fulfillment response. It is a judgment that a product or a
service feature, or the product or service itself, provides a pleasurable level of
consumption – related, fulfillment. In minimal technical terms, this definition can be
translated to mean that satisfaction is the customers evaluation of a product or service in
It is also important to recognize that, to measure the customer satisfaction at a particular
point of time as if it were static, satisfaction is a dynamic, moving target that may evolve
over the time, influenced by a variety of factors. Particularly when product usage or the
service experience takes place over the time, Satisfaction may be highly variable
depending on which point the usage or experience cycle is focused on.
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DOI: 10.47750/cibg.2021.27.05.083
ANALYSIS AND INTERPRETATION
GENDER OF THE RESPONDENT
GENDER
Female
20%
Male
80%
Source: Primary data
The result shows that among the sample size of 50 respondents, 40
of them are male and 10 female who were using e-banking services.
This shows e- banking services are mainly used by men as they are the
people who work as employees and doing business in various fields
more than females.
USAGE OF E-BANKING SERVICES
Source: Primary data
Usage of e-banking services
No
0%
Yes
100%
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DOI: 10.47750/cibg.2021.27.05.083
The result shows that all the 50 respondents are using e-banking services this shows how
e-banking is popular among people in current generation
FAIRNESS OF SERVICE CHARGES IN E-BANKING
Fairness of service charges in e-
banking
20%
80%
Source: Primary data
The result shows that majority of respondents are satisfied with the service
charges for Internet banking .Only 20% of respondents are not satisfied with
the charges , it is not fair in their point of view.
LEVEL OF CONFIDENCE ON E-BANKING SERVICES
Confidence on e-banking
Very High
4%
Little
18%
High
38%
Average
40%
Little Average High Very High
Source: Primary data
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DOI: 10.47750/cibg.2021.27.05.083
The result shows that 40% of respondents has an average confidence in e-
banking, closely followed by 38% of respondents having high confidence in
this service.
REASON FOR USING E-BANKING SERVICES
Reason for using e-banking services
24Hr Services
Better
Information 32%
30%
Simplification Of
processes 38%
Better information Simplification of processes 24Hr services
Source: Primary data
The result shows closer percentages for all the given options which clearly explains
that the people are using e-banking services frequently for different reasons. The way
of simplifying the process in e-banking has been attracted 38% of respondents which
stands as the main reason for using e-banking through this survey.
MOSTLY USED SERVICE IN E-BANKING
Mostly used service in e-banking
Other 4%
Shopping Balance and
14% transaction
history
search
Lock / activate 26%
debit card /ATM
22%
Online fund
transfer 34%
Source: Primary data
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DOI: 10.47750/cibg.2021.27.05.083
The result shows that the fund transfer through online is the most using service
among the respondents with 34% and secondly balance and transaction history got
26%.
FREQUENCY OF TRANSACTIONS
Frequency of transactions
1 Daily, 17
1 2-3 Times per Once per
Week, 13 Month, 13
1
1
Once per
8 week,
6
4
2
2-3 Times per week Daily Once per month Once
per week
Source: Primary data
The result shows that people are using e-banking transaction daily as it stands first
with 17 respondents among the 50. Secondly transaction made 2-3 times per week
and once per month have equal number of results with 13 respondents.
SECURITY OF TRANSACTIONS THROUGH INTERNET
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DOI: 10.47750/cibg.2021.27.05.083
Security of transactions through internet
25
20
20
15
10 12
11
5
4 3
0
Very much Much Average Little Not at all
Source: Primary data
The result shows that people are believing much in the securing service of e-
banking as it leads with maximum number of respondents 20. The least position
was taken by Not at all option as only very few respondents are feeling that e-
banking transaction is not securable.
SATISFACTION ON USING E-BANKING
Satisfaction on using e-banking
24%
76%
Source: Primary data
The result shows that 76% of people are satisfied with e-banking services among
the 50 respondents and only 24% are unsatisfied with the service the reason may be
they are expecting even more facilities in e-banking.
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DOI: 10.47750/cibg.2021.27.05.083
COMPARISON OF SATISFACTION ON SERVICES VIA INTERNET TO
SERVICES VIA BANKS
Comparison of Satisfaction on
services via Internet to services via
Banks
2%4%
30%
26%
Source: Primary data 38%
The result shows that how Internet services are attracted to the respondents while
compared with services in bank. Among the 50 respondents 19 have chosen high level
satisfaction which stands first with 38% .This shows people are happy to use this service
more than bank services.
ENCOURAGEMENT TO USE MORE THE E-BANKING SERVICES
The result shows that 44% of respondents feels that the simpler/ clearer service
will encourage them to use more banking services through online . The least one
with 14% is free transaction.
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DOI: 10.47750/cibg.2021.27.05.083
FINDING OF THE STUDY
Most of the respondents who lies under the age of 20-39 are using
e-banking services as they are having more knowledge about the
services of e-banking.
Most of the respondents are satisfied with the service charges for e-
banking services as near about 80% of respondents are satisfied
with this while the remaining respondents thinks that it is not fair.
When asked about the confidence level on e-banking , the result
shows a close call between the high level and average level
satisfaction as it shows 38% on high and 40% on average, which
clearly shows that majority of respondents are having confident in
e-banking.
When asked about the main reason for using e-banking, among 50
respondents 19 of them have chosen the simplification of
processes, followed by the reason of 24Hr services.
The online fund transfers have received highest percentage of
mostly used e- banking services among the respondents. Secondly
balance and transaction history search took place with 26%.
SUGGESTIONS
Internet banking must be made available in all the branches of ICICI Bank.
Each section of the bank should be computerized even in rural areas also.
Covering up the towns in rural areas with ATMs so that the people in those
areas can also avail better services.
Prompt dealing with permanent customers and speedy transaction without
harassing the customers.
Give proper training to customers for using e-banking.
Create a trust in mind of the customers towards security of their accounts.
CONCLUSION
This study attempted to identify the key quality attributes of interest banking services by
analyzing Internet banking customers & their comments on the baking experience. The
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DOI: 10.47750/cibg.2021.27.05.083
findings of this study show that despite of many advantages of online banking, people
still consider it as an alternative for analyzing their banking records. Although every
bank today provides the facility of online banking but most of the people use it lesser in
a month. This reason is that in case of Internet banking interpersonal interactions with
the customers is seldom possible. Identification & measurement of customer’s
expectations of the internet banking service provide a frame of reference & their realtor
quality dimensions. The main factors which persuade people to use online banking are
comfort & convenience & the facility which attracts them most is quality & quantity of
information. Therefore there implementation of quality dimensions there is still a lot
needed for the banking system to make reforms and train their customers for using
internet for their banking accounts. Going through the survey the most problem lies that
still the customer have a fear of hacking of accounts and thus do not go on for Internet
banking. Banks are trying their level best be providing the best security options to the
customers but then to there is lot of factors which betrays a customer from opening an
Internet bank account.
WEBSITES:
Anthoney R. (2004), “User Friendly E-Banking: A Survey of Online E-Banking Retail
Initiatives”, Communications of the ACM, Vol.47, pp. 99-102.
Asghar, O. (2004), “Banking In a Cloud of Electrons”.
Awa mleh, R. (2006), “Diffusion of Internet Banking amongst educated consumers in a
high income Non-OECD country”, Journal of Internet Banking and Commerce, Vol. 11
Azouzi, D. (2009), “The Adoption of Electronic Banking in Tunisia”, Journal of
Internet Banking and Commerce, Vol. 14, pp. 1-11.
Baue r H. Hans, Malik H. & Falk T. (2006), “Measuring the quality of e banking
portals”, International Journal of Bank, Vol. 23.
B. Dizon, Javier A. (2009), “Special Feature: Electronic Banking”.
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