COSTUMER BEHAVIOR TOWARDS INTERNET BANKING
Prepared by:
Asmita Jayswal
PU Registration No: 2019-2-03-1165
Symbol No:20030020
Introduction
◦ Internet banking, also known as online banking or e-banking, is a digital financial services that allows
customers to conduct various banking transactions.
◦ Internet banking was first introduced in Nepal by Kumari Bank Limited in 2002. Laxmi bank was first to
introduce mobile banking or SMS banking in Nepal in 2004.
◦ By using online banking services, anyone can easily access their banking activity. These banking
operations could involve getting account balances, transferring funds between users account to other.
Statement of Problem
◦ Aims to analyze the factors influencing customer behavior.
◦ Make people aware of the progressing technology in the banking field .
Objective of the Study
1. To assess the level of convenience perceived by customers in using internet banking services, including factors such as ease of access,
transaction speed, availability of services, and user-friendliness.
2. To investigate the impact of security measures implemented by internet banking systems on customer trust, including the perception of data
protection, authentication mechanisms, and overall trustworthiness of the platform.
3. To identify the perceived risks associated with internet banking usage from the customers' perspective, including concerns related to data
breaches, fraudulent activities, privacy issues, and financial losses.
4. To explore the influence of technological advancements and innovations in internet banking systems on customer behavior, including the
adoption of new features, mobile banking applications, and integration with emerging technologies.
5. To evaluate the impact of user-interface design on customer engagement and satisfaction with internet banking services, including the
usability, visual appeal, and responsiveness of the platform.
Theoretical Framework
Convenience
Security
Customer Behavior towards Trust
Internet Banking
Perceived Risk
Technology
User-Interface
Research Methodology
◦ Quantitative research
◦ The primary source of data
◦ Questionnaire
◦ Sample size:100 out of which 102 people respondent
◦ Non- probability sampling technique
Data Analysis
51
Frequency
30
60 56
11
10
50 46
40
Frequency
20-25 26-31 3 5 ab o v e 18
30
20 Age
10
0
Male Female
Gender
63
60
40 56
20
20 18
Frequency
Frequency
t r 8
en ed de er
28
d ye l ld
St
u
pl
o b ho b ho
em e Jo t Jo
lf- at en
11
S e riv n m
P r
o ve
G
Bach el o r Mast er an d ab o v e 10+2
Profession
Education
42
58
33
Frequency
Frequency
18
18
9
13
13
2 - 3 t i m es i n E v er y d ay On ce i n a Ver y r ar el y
Bel o w Rs. Ab o v e Rs. Rs. 5 0 , 0 0 0 - Rs. 7 5 , 0 0 0 -
a week month
50, 000 1, 00, 000 Rs. 7 5 , 0 0 0 Rs. 1 , 0 0 , 0 0 0
Frequently use of Internet Banking
Income
28
66
19
15
60
11
11
11
7
40 21
Frequency
20 7 4 4
Frequency
0
Bank Account
Uses of Internet Banking
Cross Tabulation between Profession and Uses
Bar Chart
45
40
40
35
30
25
Count
20
15
10 11 12
10
5
4 4 4 5
0 3 2 2 2
1
Student Self- employeed1 Government Jobholder Private Jobholder1
What is your profession?
What do you use Internet Banking for mostly? Money Transfer Balance Inquiry
Load Wallet Stock Transactions Other
Cross Tabulation between Gender and Bank Account
Bar Chart
Which bank is your account in? Nabil Bank Siddhartha Bank Global IME Bank
Nepal Rastra Bank Nepal Bank Ltd Citizen Bank Other
15
13
11
11
8
Count
6
5
4
3
3
2
Mal e F em al e
What is your gender?
Correlation Analysis
Variables X1 X2 X3 X4 X5 X6 Y
X1 1 .615** .584** .510** .633** .446** .670**
<.001 <.001 <.001 <.001 <.001 <.001
102 102 102 102 102 102
X2 1 .692** .602** .633** .526** .516**
<.001 <.001 <.001 <.001 <.001
102 102 102 102 102
X3 1 .723** .602** .658** .542**
<.001 <.001 <.001 <.001
102 102 102 102
X4 1 .473** .514** .509**
<.001 <.001 <.001
102 102 102
X5 1 .627** .581**
<.001 <.001
102 102
X6 1 .560**
<.001
102
Y 1
Regression Analysis
Model Beta (B) T-Value Sig. VIF
(Constant) 0.419 1.276 0.205
Convenience 0.455 4.647 0 2.013
Security -0.018 -0.167 0.868 2.429
Trust -0.042 -0.333 0.74 3.271
Perceived Risk 0.135 1.316 0.191 2.218
Technology 0.103 0.962 0.338 2.408
User Interface 0.259 2.6 0.011 2.086
Dependent Variable: Customer Behavior towards Internet Banking
R Square 0.547
F Value 19.132
Sig 0.001
Conclusion
◦ Convenient and faster access to the services
◦ People more leaning towards IB services
◦ Banking sectors are trying to retain their customer through various IB system
Recommendation
◦ Access internet banking only from secure devices and networks.
◦ Regularly monitor account transactions and statements.
◦ Never share login details or personal information with anyone.
◦ Keep device software and internet banking apps updated.
◦ Access your bank’s internet banking through official apps /websites only.
