Study On Awareness Of Internet Banking

Study On Aw atomic routine 18ness Of meshwork Banking net income asserting allows guests of a financial institution to conduct financial transactions on a secure entanglementsite operated by the institution, which bum be a retail or virtual argot, conviction union or building purchase order .It may include of either transactions related to online usage. To portal a financial institutions online entrusting facility, a guest having personal meshing overture essential register with the institution for the help, and set up some crownword for customer verification. The password for online banking is normally non the same as for tele border banking. m adepttary institutions now routinely allocate customer exits whether or non customers intend to access their online banking facility. Customer numbers be normally not the same as report numbers, beca role a number of discovers discharge be cogitateed to the one customer number. The customer go out link to the cus tomer number any(prenominal) of those accounts which the customer controls, which may be cheque , savings, charge, conviction greenback and other accounts.To access online banking, the customer would go to the financial institutions website, and move in the online banking facility using the customer number and password. Some financial institutions lark set up additional security steps for access, but at that place is no consistency to the approach adopted. network banking (or E-banking) center any exploiter with a personal computer and a web browser netherstructure stomach connected to his bank -s website to perform any of the virtual banking functions. In net profit banking trunk the bank has a centralized database that is web-enabled. All the services that the bank has permitted on the meshwork are displayed in menu. Any service put up be selected and further interaction is dictated by the nature of service. The tralatitiousistic branch model of bank is now givi ng place to an utility(a) language channels with ATM network. Once the branch offices of bank are interconnected by dint of terrestrial or satellite links, there would be no physical identity for any branch. It would a border slight entity permitting anytime, anywhere and anyway banking. The network which connects the diverse locations and gives connectivity to the central office at bottom the organization is called intranet. These networks are limited to organizations for which they are set up. SWIFT is a live manikin of intranet operation.FUNCTIONS OF INTERNET BANKING1. Pay a bill.2. Schedule pays in advance.3. Transfer finances.4. carry away all your accounts in one place.5. View images of your checks online.6. Apply for a loan or credit mailing. 7. Purchase and manage CD accounts.8. Order travelers checks.9 Order a cheque book.10 View up-to-the-minute account landed e affirmments and balance.11 Track your payment history.12 Change contact details. profit banking all ows customers to perform a wide range of banking transactions electronically via the banks entanglement site. When first introduced, Internet banking was exercised mainly as an entropy demo medium in which banks marketed their products and services on their Web sites.With the development of asynchronous technologies and secured electronic transaction technologies, however, more(prenominal) banks have come forward to physical exertion Internet banking both as a transactional as sound as an informational medium.Internet banking can perform chase banking transactionsWriting checks stipendiary billsTransferring currencyPrinting statementsInquiring slightly account balanceThe prevalent services covered under E-banking are -1. Automated Teller Machines2. address Cards3. Debit Cards4. Smart Cards5. electronic cash in hand Transfer6. Cheque Payment constitution7. Mobile BankingInternet banking in indiaThe Reserve Bank of India constituted a working group on E- Banking. The gro up divided the net profit banking products in India into following 3 levels of access Information Only System General Information like chase rates, branch location, bank products and their features, loan and deposit calculations are provided in the banks website. there exist facilities for downloading various types of application forms. The communication is normally done by means of e-mail. on that point is no interaction between the customer and banks application system. No identification of the customer is done. In this system, there is no possibility of any unauthorized person narrowting into production systems of the bank through internet. Electronic Information Transfer System The system provides customer- specific information in the form of account balances, transaction details, and statement of accounts. The information is still generally of the read only format. Identification and authentication of the customer is through password. The information is fetched from the banks application system either in batch mode or off-line. The application systems cannot straightway access through the internet.Fully Electronic Transactional System This system allows bi-directional capabilities. Transactions can be submitted by the customer for online update. This system requires high point in time of security and control. In this environment, web server and application systems are linked over secure infrastructure. It comprises engineering science covering computerization, networking and security, inter-bank payment gateway and legal infrastructure.Benefits of E-BankingThe operating cost per unit services is cut down for the banks.It offers convenience to customers as they are not required to go to the banks premises.There is very low incidence of errors.The customer can obtain funds at any time from ATM machines.The credit cards and debit entry cards enables the Customers to obtain discounts from retail outlets.The customer can easily impartation the fun ds from one place to another place electronicallyThe following services can be availed through E-Banking Bill payment service You can facilitate payment of electricity and telephone bills, mobile phone, credit card and insurance premium bills as each bank has tie-ups with various utility companies, service providers and insurance companies, across the country. To pay your bills, all you get to do is complete a simple one-time registration for each biller. The bank does not charge customers for online bill payment. Fund transfer You can transfer any amount from one account to another of the same or any another bank. Customers can send money anywhere in India. Once you login to your account, you take aim to mention the payeess account number, his bank and the branch. The transfer exit take place in a day or so, whereas in a traditional rule, it takes about three working days. Credit card customers With Internet banking, customers can not only pay their credit card bills online but excessively get a loan on their cards. If you flake out your credit card, you can report lost card online. Railway pass This is something that would interest all the aam janta. Indian Railship canal has tied up with ICICI bank and you can now make your railway pass for local trains online. The pass give be delivered to you at your doorstep. But the facility is limited to Mumbai, Thane, Nashik, Surat and Pune. Investing through Internet banking You can now open an FD online through funds transfer.Now investors with interlinked demat account and bank account can easily trade in the rip market and the amount will be automatically debited from their respective bank accounts and the shares will be credited in their demat account. Moreover, some banks even give you the facility to purchase mutual funds directly from the online banking system. Recharging your prepaid phoneNow just top-up your prepaid mobile cards by enter in to Internet banking. By just selecting your operators name, entering your mobile number and the amount for recharge, your phone is again back in action within few minutes. Shopping With a range of all kind of products, you can shop online and the payment is also made conveniently through your account. You can also buy railway and air tickets through Internet banking. certificate Precautions The security precautions employ in internet banking areBuy redeeming(prenominal) antivirus, It is very important to protect against vir maps. Such antivirus is Quick heal, Kasper sky, Net shielder etc.Scan Your Computer Daily with antivirus to ensure your system is safe. change Firewall for better protection. Avoid access net banking from cyber cafe or any other PCs having virus. With in periodical intervals, change your net banking password. There is persist log-in Date in your net banking account. Check it daily. Use current version of Browser like Mozilla Firefox 3.1 and above,IE 7.0 and above,Opera 9.5 and above,Safari 3.5 and above, Googl e chrome,etc. Use Newer Operating System. Do non Disclose your Password to anyone.Before log-in into your account check the website universal resource locator having https// . it means it is secured site.Do not click on any link showing Update Your Password .Ensure that the logged in session is decently signed out.CHAPTER 2Review of LiteratureIntroduction and development of e-banking particularly began in 1990s (Pikkarainen et al.2004, p.224) A inquiry made in U.S in year 1999 stated that there have been huge increases in the use of e-banking in America. Examining the development of online banking in the world, one can say that the European countries are still the leader of the use of new(a)est banking technologies and online banking (Pyun et al, 2002,p.73). According to a learn, less than 15 percent of banks with transactional websites will realize profits directly ascribable to those sites (Courchanne et al,2002, p.354).According to Zeithaml et al. (2008), consumer percepti on plays a vital role particularly in pre-purchase decision making of services with high credence attributes as their pre-purchase military rating is difficult. Althoughinternet banking provides recognized benefits for customers over the traditional banking system, however, thecustomers adoption of internet banking depends upon the pre-purchase perception of its proposed benefits insteadof the potential difference benefits it can actually provide, collectable to its high credence nature (Eriksson et al, 2005). primal customer perceptions, expiation and other behavioral constructs have, therefore, become research-worthy subjects for the researchers and practitioners in this vault of heaven of watch, however, customer perception has been given an escalating grandness in the empirical studies due to its significant role in service evaluation (International Business political economy Research Journal April 2011)The vast legal age of the banks that avoided Internet banking in th e germ did so because they simply did not beguile the benefits of using it. Polatoglu Kin (2001) state that the average internet banking transaction cost 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 roaring with it and thus be more likely to adopt it. According to bronze and Teo (2000) if customers are given the get hold to try the innovation, it will minimize received fears, especially when customers found that mistakes could be rectified and thus providing a inevitable situation. A more speedy diffusion occurs when consumers can have low-cost or low- take a chance trial of the service. Internet banking services are free.(www.arraydev.com)An American study conducted last year by Booz-Allen projects that by the year 2000, 16 million US households will be using Internet banking. While th ese numbers do not issue to be significant as compared to the total population, each Internet user is projected to be 50-250% more profitable than the average banking customer. It is expected that these Internet customers will be some of the banking systems most profitable customers representing close to 30% of all retail banking profits. The study projects that by 1999, 1,500 banks will have Internet Web sites and at least 500 of these banks will be religious offering full-fledged Internet banking services.In 2001 Micro banker send detailed questionnaire to the leading vendors of internet banking software27 companies responded with information on thirty programs the aggregate outcome of the outcome was that approximately all the companies have developed functions for internet banking and have inbuilt feature to aid with one to one market on the web.The vast studyity 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.( www.pewinternet.org/Reports/2006/OnlineBanking-2006.aspx)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.The concept of electronic banking has been defined in umteen ways (e.g. Daniel, 1999) . According to Karjaluoto (2002) electronic banking is a construct that consists of several distribution channels. Daniel (1999) defines electronic banking as the obstetrical delivery of banks information and services by banks to customers via different delivery platforms that can be used with different terminal devices such as a personal computer and a mobile phone with browser or desktop software, telephone or digital television. Electronic banking also commonly known as internet banking or e-banking. Internet Banking, defined as the delivery of banking services through the open-access computer network (the internet) directly to customers home or private address. (Lau, 1997) has experienced phenomenal growth in recent years. In 2006, Pew Internet and American Life externalize reported that nearly half of internet users in the United States 63 million adults bank online (Fox and Beier, 2006). In many ways, e-banking is not unlike traditional payment, inquiry, and information pr ocessing system, differing only in that it utilizes a different delivery channel. Any decision to adopt e-banking is normally influenced by a number of factors. Liao et al. (2008) stress that the success in Internet banking will be achieved with well-kept financial products and services that fulfill customer wants, preferences and quality expectations. Mattila (2001) concedes that customer felicity is a key to success in Internet banking and banks will use different media to customize products and services to fit customers specific needs in the future(.(Journal of internet banking and commerce)Since personal and financial information can be intercepted and used for fraudulent purposes, online investing involves greater security concerns than conventional trading users need a sense of security when conducting financial transactions, and it is still one of the major barriers to e-commerce growth (Lee and Turban, 2002). Perceived security was defined as a scourge that creates a circ umstance, condition, or event with the potential to cause economic trouble to data or network resources in the form of destruction, disclosures, and modification of data, self-abnegation of service, and/or fraud, waste and abuse (Kalakota and Whinston, 1997). Security, which involves the use of technical advancements like cryptography, digital signature and certificates aimed at defend users from risk of fraud, hacking or phishing, has a confirming influence on the intention to purchase online (Lian and Lin, 2008).A legal age of studies set off the fact that security is the biggest single concern for customers when faced with the decision to use internet banking. Security has always been an issue, but its scope has changed from mere doubts about the privacy of personal information to worries of financial loss (Sayar and Wolfe, 2007). White and Nteli (2004) reign that security is the most important attribute for UK internet banking customers. It is followed by responsiveness of service delivery (speed and timeliness), ease of use, credibility of the bank, and product variety. Akinci et al. (2004) reckon that the survival of the fittest of an internet banking service provider is effected by security, reliability and privacy. Security, which involves protecting users from the risk of fraud and financial loss, has been another important issue in safe use of the internet when conducting financial transactions in Saudi-Arabian Arabia (Sohail and Shaikh, 2007).The banking sector was reluctant to use e-commerce applications as they felt that transactions conducted electronically were open to hackers and viruses, which are beyond their control. As well as positive(p) that online services are a mixture of customer insecurities, technology coronation costs and a lack of market-readiness have all conspired to make e-banking uninviting (Abdulwahed and Yaqoub, 2006). Perceived risk was one of the major factors affecting consumer adoption, as well as customer sati sfaction, of online banking services (Polatoglu and Ekin, 2001). Perceived risk usually arises from uncertainty. Howcroft et. al., (2002) the monger characteristics that inhibit online banking adoption are security and privacy. An interview held on web security and showed four screen shots of a browser connecting to a website and asked participants to state if the link was secure or not secure and to affirm the do factor for their appraisal. It was discovered that about 72 participants cannot tell if a connection is secure (Friedman et. al., 2002).CHAPTER 3OBJECTIVE OF STUDYThe proposed research study is to be centered around fulfilling the following objectives.To study the level of cognisant(predicate)ness of internet banking among the customers of Indirapuram AreaTo find out the ways to improve AwarenessTo find the customer satisfaction relating to e-banking servicesChapter-4Scope of the studyThe study attempts to lay the level of sensory faculty among the people of Indirap uram Area , regarding Online banking services provided by Banks. The study also indentifies the attitudes and preferences of consumers. The abide by for this purpose was confined to the Indirapuram Area, GhaziabadChapter-5Research Methodology supposal-H0 null scheme Let us consider that residents of Indirapuram Area are full alive(predicate) of internet banking services provided by banks.H1 alternate hypothesis Let us consider that residents of Indirapuram Area are not fully aware of internet banking services provided by banks.Research Design- preliminary ResearchWe first used preliminary Research. Exploratory research is a type of research conducted for a problem that has not been clearly defined. Exploratory research helps determine the best research design, data collection method and selection of subjects. It should draw definitive conclusions only with extreme caution. Given its entire nature, exploratory research often concludes that a perceived problem does not actually exist.The working of the research was started with the questionnaire. In this we have used concealment criterion to identify target group of our research. Screening of certain questions has been done.The study went through the perception of the target group about the manual banking also. feeling about manual banking by the target group helped to measure match of manual banking transactions. Then, our study was divided into two streams the customer, who uses Internet banking and who doesnt use it. These parameters helped to match the information between both kinds of customers. This also helped to evaluate the current satisfaction level of the customers who were using Internet banking.Then we used descriptive Research. Descriptive research is used to obtain information concerning the current status of the phenomena to attract what exists with respect to variables or conditions in a situation. The methods involved range from the survey which describes the status quo, the correla tion study which investigates the relationship between variables, to developmental studies which examine to determine changes over time. To accurately portrait the characteristics of person of situation or group we used Descriptive Research DesignSample sizing and Design-Target Population- Universe or the whole mass under study will be residents of Indirapuram area.Sample Frame- will be educational qualifications, working and non-working males and females, professionals , students and business class.Sampling Unit- Individuals.Sampling method -Non Probability method under which convenient Sampling method.Sample size will be around 200.Method of Data Collection- Primary dataTools of Data Collection- Questionnaire period The primary data is proposed to be collected through various means of communications, i.e. In person, by telephone, e-mail , between 10.01.2013 to 25.01.2013 the period and mode of collection data shall be reviewed suitably at the appropriate times so as to make it meaningful and closest possible to the objectives set for the research study.Chapter-6DATA ANALYSISQuestionnaireNameOccupation Gender Contact no1) You have a bank account? class resolving powerYesNo2) You aware of the internet banking facility? If answer to q-2 is No ,move to q 9)CATEGORYAnswerYesNo3) Level Of Awarenes of online banking services provided by Banks?CATEGORYAnswerin truth effectualGoodFairPoorVery Poor4) spring of awareness CATEGORYAnswerPrint MediaElectronic MediaFamilyFriendsAny other(a)5) Your awareness of latest banking trendsCATEGORYGOODFAIRPOORRTGSM-WALLETE-BANKINGM-BANKING6) Since how many years you are availing internet banking facility?CATEGORYAnswer little than 1 year1 to 3 years3 to 5 yearsMore than 5 years7) Type of service in the main you avail?CATEGORYAnswerOnline shoppingOnline bill paymentsTransfer funds onlineBank statementsAny former(a)8) Please rank the following factors base on your experienceCATEGORYRatingConvenienceSaves times24 hour access t o accountWish to access account without tour branchSafe and secureLow service charge tardily to maintain transactions9) Rate your experience in getting internet banking facility from the branch?CATEGORYRatingExcellentVery GoodGoodSatisfactoryUnsatisfactory10)Reasons you are unaware of Internet Banking ?CATEGORYAnswerYou are not tech savyLack of Interest cull to have personal human relationLack of SourcesAny OtherThis survey is being conducted as a part compliance of my degree in MBA (Insurance Banking) from Amity University and is a pre-requisit for award of Degree. The project is for academic purposes and confidentiality will be maintained.FINDINGSIn Indirapuram area majority of respondents i.e 88% are aware of internet banking services provided by banks while 12% respondents are not aware of internet banking servicesElectronic Media is the source of awareness for majority of respondents of Indirapuram Area.The services which are mostly used by customers are make bank statements and transferring funds onlineMajority of people are not aware of Internet banking because of Lack of sources or they are not tech savyCHAPTER 7RECOMMENDATIONSBanks should attract consumer attention to internet banking services through better marketingBank should make efforts to increase customers awareness about internet banking facilities by conducting training programmes.Banks should conduct various training programmes for employees so that they will get aware with the terms of internet banking and could create awareness amongst the customers.Banks should increase the awareness about various features, advantages and benefits of internet banking, especially its convenience.Bank should make the customers aware about internet banking at the time of building relationship.Banks should extend the technology which is used in internet banking in order to remove the difficulties.CHAPTER 8