H&G H MANSUKHANI INSTITUTE OF MANAGEMENT

ULHASNAGAR

A STUDY ON THE CONSUMER

ACCEPTANCE OF ONLINE BANKING.

PROJECT SUBMITTED TO
H&G H MANSUKHANI INSTITUTE OF MANAGEMENT
IN PARTIAL FULLFIMENT OF THE REQUIREMENT FOR
MASTER IN MANAGEMENT STUDIES.

BY

NAME – ROHAN NANDESHWAR

ROLL NO- 60
SPECIALIZATION- FINANCE
BATCH- 2021-2023

Under the guidance of

Internal Guide (PROF. KRISHIKA)

H&G H MANSUKHANI INSTITUTE OF MANAGEMENT

ULHASNAGAR
 Students Declaration

I hereby declare that this report is submitted in partial fulfillment of the requirement of MMS Degree of
University of Mumbai to H. & G. H. Mansukhani Institute of Management. This is my original work and is
not submitted for award of any degree or diploma or for similar titles or prizes.

Name: Rohan Nandeshwar

Class: SYMMS

Roll No.: 60

Place: Ulhasnagar

Date:

Students Signature:
 Consumer acceptance of online
banking.

INTRODUCTION-:

In the present scenario online services have become an added feature in the banking
sector. Online banking or Internet banking allows customers to conduct financial transactions on
a secure website. Credit goes to internet that provided ultimate ease to the customers at their door
step. Online banking allows people to perform all the banking related activities such as money
transfer, past transactional information, cash withdrawals and deposits etc with a just one click of
a mouse. Clients can easily check the account balance every day just by visiting the website of
their bank. This provides the place and time utility to people provided if one has Internet access.
Online banking also eliminates unnecessary waste, which an organization incurs in the form of
office supplies. This facet has also helped in meeting the social concerns. Online banking in this
study is defined as an Internet portal, through which customers can use different kinds of
banking services ranging from bill payment to making investments. Therefore banks’ Web sites
that offer only information on their pages without possibility to do any transactions are not
qualified as online banking services

An Online Banking user is expected to perform at least one of the following transactions online:
1. Checking account balance and transaction history
2. Paying bills
3. Transferring funds between accounts
4. Requesting credit card advances
5. Ordering checks
6. Managing investments and stocks trading
From a bank’s perspective, using the Internet is more efficient than using other distribution
mediums because banks are looking for an increased customer base. Using multiple distribution
channels increases effective market coverage by enabling different products to be targeted at
different demographic segments (Wang, et. al, 2003). Also Banks cannot risk losing customers to
competitors within the aggressive competition in the banking industry around the world.
Moreover Internet delivery offers customized service to suit the needs and the likes of each user
(Dannenberg and Kellner, 1998). Mass customization happens effectively through Online
Banking. It reduces cost and replaces time spent on routine errands with spending time on
business errands. Online Banking means less staff members, smaller infrastructure demands,
compared with other banking channels (Fredriksson, 2005). From the customers’ perspective,
Online Banking provides a convenient and effective way to manage finances that is easily
accessible 24 hours a day, seven days a week. In addition information is up to date. Nevertheless
Online Banking has disadvantages for banks like how to work the technology, set-up cost, legal
issues, and lack of personal contact with customers. And for customers there are security and
privacy issues.

Internet banking has several advantages for bank customer perspectives. The most important
advantage is that the customer avoids traveling to and from a bank branch. Internet banking
provides saving time and money.
The advantages of internet banking from customer point of view can be listed as follows:

 Speed of banking transaction,

 Minimize the use of traditional branch banking,

 Reduce cost of physical branch banking,

 Raised attainability and time saving banking processing can be made all hours a day.

Banks offers internet banking services for 24 hours a day, no weekends and no vacations. For
that reason, clients can access, modify and conduct their banking activities at any time they want
with no delays. The presence of large number of computers connected to the internet has allowed
customers to conduct their banking activities from their home, office or even public places. On
average it was found that internet banking transaction costs are much lower than conducting the
same transaction traditionally. Internet banking allows users to conduct their banking activities
almost from any place where a computer is available; therefore users are allowed to save their
travelling costs. In addition, they can save money by decreasing the postage costs and
government charges. In traditional banking activities, the procedure is to ask the bank to conduct
transactions and then the bank will act on behalf of the customer. Customers are able to
customize their banking site in the format they want. If available, they can customize their site to
provide the information they want and they control how those information are shown, display
particular product of their interest. As they learn how to use online banking, consumers can
conduct their banking activities in a relatively shorter time compared to that time needed to visit
their physical branch.
Meaning –
Online banking, also known as internet banking, e-banking, or virtual banking, refers to
carrying out banking operations on the Internet. For example, it may include paying bills,
transferring money, or checking one’s balance online. It also refers to setting up regular
payments online. Online in this context, means on the Internet. Virtually every bank today offers
the service. Customers can conduct their financial affairs through the Internet rather than having
to come into the branch.
You can conduct online banking from your computer, tablet, or smart phone. According to banks
and most customers, the main advantages online banking offers are permanent access to one’s
account. It is also much cheaper and accessible from almost anywhere. If you do not currently
have an internet banking facility and want it, talk to your bank. Most financial institutions will
give you the choice of having a telephoning or internet banking service. In fact, you can have
both. They will give you a password and username. Some banks let you choose them. In some
cases, they may change regularly. In fact, with some accounts, the customer has to enter a
different code each time.
Online banking allows a user to execute financial transactions via the internet. Online banking is
also known as "internet banking" or "web banking." An online bank offers customers just about
every service traditionally available through a local branch, including deposits these are done
online, using ATMs or through the mail and online bill payment.

Online banks do not provide direct ATM access, but they make provisions for consumers to use
ATMs at other banks and retail stores, and they may reimburse consumers for some of the ATM
fees charged by other financial institutions. The reduced overhead costs associated with not
having physical branches typically allow online banks to offer consumers significant savings on
banking fees; they also offer higher interest rates on accounts. Online banks handle customer
service by phone, email, or online chat. Online banking is frequently performed on mobile
devices now that Wi-Fi and 4G networks have become widely available. In the United States,
prominent online banks include Ally Bank, Bank5 Connect, Discover Bank, GE Capital Bank,
and Synchrony Bank.

Define-

According to Oxford Dictionaries, online banking is “A method of banking in which the

customer conducts transactions electronically via the Internet
HISTORY

The concept of Internet banking has been simultaneously evolving with the development of the
World Wide Web. Programmers working on banking data bases came up with ideas for online
banking transactions, sometime during the 1980s. The creative process of development of these
services was probably sparked off after many companies started the concept of online shopping.
The online shopping promoted the use of credit cards through Internet. Many banking
organizations had already started creating data ware housing facilities to ease their working
staffs. The development of these databases was widely used during the development of ATM's.

Sometime in 1980s, banking and finance organizations in Europe and United States started
suggestive researches and programming experiments on the concept of 'home banking'. Initially
in the 80's when computers and Internet were not so well-developed, 'home banking' basically
made use of fax machines and telephones to facilitate their customers. The widespread of
Internet and programming facilities created further opportunities for development of home
banking.

In 1983, the Nottingham Building Society, commonly abbreviated and referred to as the NBS,
launched the first Internet banking service in United Kingdom. This service formed the basis for
most of the Internet banking facilities that followed. This facility was not very well-developed
and restricted the number of transactions and functions that account holders could execute. The
facility introduced by Nottingham Building Society is said to have been derived from a system
known as Prestel that is deployed by the postal service department of United Kingdom.

The first online banking service in United States was introduced, in October 1994. The service
was developed by Stanford Federal Credit Union, which is a financial institution. The online
banking services are becoming more and more prevalent due to the well-developed systems.
Though there are pros and cons of electronic cash, it has become a revolution that is enhancing
the banking sector
The precursor for the modern home loan banking services were the distance banking services
over electronic media from the early 1980s. The term 'online' became popular in the late 1980s
and referred to the use of a terminal, keyboard and TV to access the banking system using a
phone line. 'Home banking' can also refer to the use of a numeric keypad to send tones down a
phone line with instructions to the bank. Some of the earliest services started in New York in
1981 when four of the city's major banks offered home banking services.

When the clicks-and-bricks euphoria hit in the late 1990s, many banks began to view web-based
banking as a strategic imperative. Stanford Federal Credit Union was the first financial
institution to offer online internet banking services to all of its members in October 1994. In
1996 OP Financial Group, also a cooperative bank, became the second online bank in the world
and the first in Europe. The attraction of banks to online banking are fairly obvious: diminished
transaction costs, easier integration of services, interactive marketing capabilities, and other
benefits that boost customer lists and profit margins. Additionally, online banking services allow
institutions to bundle more services into single packages, thereby luring customers and
minimizing overhead.
A mergers-and-acquisitions wave swept the financial industries in the mid- and late 1990s,
greatly expanding banks' customer bases. Following this, banks looked to the Web as a way of
maintaining their customers and building loyalty. A number of different factors are causing
bankers to shift more of their business to the virtual realm.

While financial institutions took steps to implement e-banking services in the mid-1990s, many
consumers were hesitant to conduct monetary transactions over the internet. It took widespread
adoption of electronic commerce, based on trailblazing companies such as America Online,
[Link] and eBay, to make the idea of paying for items online widespread. By 2000, 80%
of U.S. banks offered e-banking. Customer use grew slowly. At Bank of America, for example, it
took 10 years to acquire 2 million e-banking customers. However, a significant cultural change
took place after the Y2K scare ended. In 2001, Bank of America became the first bank to top 3
million online banking customers, more than 20% of its customer base. In comparison, larger
national institutions, such as Citigroup claimed 2.2 million online relationships globally, while
J.P. Morgan Chase estimated it had more than 750,000 online banking customers. Wells Fargo
had 2.5 million online banking customers, including small businesses. Online customers proved
more loyal and profitable than regular customers. In October 2001, Bank of America customers
executed a record 3.1 million electronic bill payments, totaling more than $1 billion. In 2009, a
report by Gartner Group estimated that 47% of United States adults and 30% in the United
Kingdom bank online.

The early 2000s saw the rise of the branch-less banks as internet only institutions. These
internet-based banks incur lower overhead costs than their brick-and-mortar counterparts. In the
United States, deposits at most direct banks are FDIC-insured and offer the same level of
insurance protection as traditional banks.

Operation

To access a financial institution's online banking facility, a customer with internet access will
need to register with the institution for the service, and set up a password and
other credentials for customer verification. The credentials for online banking are normally not
the same as for telephone or mobile banking. Financial institutions now routinely allocate
customers numbers, whether or not customers have indicated an intention to access their online
banking facility. Customer numbers are normally not the same as account numbers, because a
number of customer accounts can be linked to the one customer number. Technically, the
customer number can be linked to any account with the financial institution that the customer
controls, though the financial institution may limit the range of accounts that may be accessed to,
say, cheque, savings, loan, credit card and similar accounts.
The customer visits the financial institution's secure website, and enters the online banking
facility using the customer number and credentials previously set up.
Each financial institution can determine the types of financial transactions which a customer may
transact through online banking, but usually includes obtaining account balances, a list of recent
transactions, electronic bill payments, financing loans and funds transfers between a customer's
or another's accounts. Most banks set limits on the amounts that may be transacted and other
restrictions. Most banks also enable customers to download copies of bank statements, which can
be printed at the customer's premises (some banks charge a fee for mailing hard copies of bank
statements). Some banks also enable customers to download transactions directly into the
customer's accounting software. The facility may also enable the customer to order a cheque
book, statements, report loss of credit cards, stop payment on a cheque, Advise change of
address and other routine actions.

Technology Acceptance Model:

The technology acceptance model is an information system theory that models how to
users come to accept a technology and how they use that technology. Developed by Fred Davis
in 1989.
User acceptance is the biggest barrier to the success of new Information Technology –IT -
(Gould, et al., 1991). Davis suggested that adopting an application happens primarily because of
the functions it performs and secondarily for how easy or hard is it to make the system perform
these functions. Moreover TAM provides bases for tracking the impact of the external factors on
internal beliefs, attitude and intention.
TAM has proved valid both inside and outside the organization context. It is capable of
explaining user behavior across a broad range of end-user computing technologies and user
populations. Because of its parsimony and the wealth of recent empirical support for it, TAM has
become popular suggested that TAM’s robust and parsimonious structure allow applications in
other technological adoption situations with the right adjustments. The model specifies the casual
linkages between the key beliefs: Perceived Usefulness and Perceived Ease of Use, and also
users' attitudes, intention and adoption Behavior
Background of Technology Acceptance Model.

The theoretical framework selected for the study was the TAM model, which was originally
developed by Davis (1986) to predict user acceptance of computer technology in the workplace.
It has the advantage of being well grounded in established social psychology theory, being based
on the Theory of Reasoned Action (TRA) (Ajzen and Fishbein, 1980). The model specifies key
linkages between two key belief constructs (i.e. perceived usefulness and perceived ease of use)
and users’ attitudes, intentions and adoption behavior. It is posited that attitude towards using a
new information system is determined by users’ perceptions of usefulness and ease of use of the
system. Attitude towards using the system, in turn, is the key determinant of behavioral intention
to use, which ultimately determines actual system use. In addition, the effects of external
variables such as individual differences or situational constraints are expected to impact on user
acceptance only as far as they are mediated by the two key belief constructs of perceived
usefulness and perceived ease of use.
In addition, Davis et al., (1989) found that perceived usefulness may impact on actual use
irrespective of attitude, provided that the use of the system offers direct benefits to the user. As a
result of several applications and replications, TAM is considered to be well-established and
robust (see Venkatesh and Morris, 2000) and consistently explains a substantial proportion of the
variance (i.e. around 40%) in usage intentions and behavior (Venkatesh and Davis, 2000). The
original model was developed to predict user acceptance of computer technology within the
workplace, latterly, the TAM framework has been considered to be suitable as a theoretical basis
for understanding the use, behavior and acceptance of new Internet-based technologies

TAM has been applied in a range of recent studies to understand consumers’ adoption of a
variety of forms of business-to-consumer (B2C) e-commerce. For example, Jiang et al. (2000)
used TAM to explore the usage of the Internet by college students, while Pavlou (2003) saw its
practical utility in understanding the key drivers for consumer acceptance of web-based retailing.
More recently, in the context of m-banking, Kleijnen et al.’s (2003) examination of consumer
acceptance of wireless finance treated consumer characteristics as moderators of attitude.
The current study applies TAM in the context of web-based retailing of FS in order to explain
the extent to which consumers make use of the Internet as a distribution channel. Extent of
usage, as we define it, represents a continuum that captures information search and the number
of purchases. The bulk of past research investigated adoption a technological system in terms of
a binary outcome and ignored other stages of the buying decision-making process. There have
been a few exceptions. One study that has distinguished between adoption at information search
and purchase was not based on TAM; instead its conceptual underpinning was derived from
Klein’s (1998) Interaction Model of pre-purchase information search and the Theory of Planned
Behavior (Ajzen, 1991) (see Shim et al., 2001 and their Online Pre purchase Intentions Model).
A further study that accommodates the stages of the buying decision making process is the
Extended Web Assessment Model, an evaluation tool designed for the assessment of e-
commerce applications by Schubert (2002/3), who modified TAM to examine consumer
perspectives of websites across the three classic transaction phases of electronic markets (i.e.
information phase, agreement phase and settlement phase), followed by the after-sales phase Our
definition of extent of use represents a continuum that integrates those transaction phases and
in addition accounts for the variety of FS purchases over the Internet.
A recent literature review generally relating to the adoption of technology-based channels of
distribution by Hewer and Howcroft (1999) notes the importance of factors such as convenience
and ease of use to adopters (e.g. Moutinho and Meidan, 1989; Rugimbana, 1995; Marr and
Prendergast, 1993; Lockett and Littler, 1997). Conversely, reasons for non-adoption have
included preference for dealing with a real person (Zeithaml and Gilly, 1987), concerns about
safety and risk (Lewis, 1991) and complexity (Leblanc, 1990). More recently, studies
specifically relating to the Internet (Black et al., 2001; Bradley and Stewart, 2002; Kerem, 2004)
and the adoption of mobile banking (Kleijnen, et al., 2003; Suoranta, 2003) have highlighted the
significance attached to attributes such as convenience, flexibility and accessibility.
CHARACTERSICS-:

□ Customer must go through a series of security steps in order to log on. Such as PIN number,
password, position of random characters in a phrase, maybe a random number entry from
hand-held card and so on.

□ Customers can see details of their accounts online.

□ Customers can select an account and see the cash balance of each of their accounts and the
available money on each account.

□ Can select account they want and transfer money between their accounts or to another
person / business.

□ Can view their direct debit.

□ Can set up standing orders.

Can view historical statements by week/month for the previous six months.

□ Make one-off payments or transfers.

□ Will automatically log customer out if no action for a short period of time.

□ Message facility to communicate with bank about account or security issues. Response
usually from bank within 24 hours.
ADVANTAGES-:

1. Convenience: Banks that offer internet banking are open for business transactions anywhere a
client might be as long as there is internet connection. Apart from periods of website
maintenance, services are available 24 hours a day and 365 days round the year. In a scenario
where internet connection is unavailable, customer services are provided round the clock via
telephone.

2. Low cost banking service: E-banking helps in reducing the operational costs of banking
services. Better quality services can be ensured at low cost.

3. Higher interest rate: Lower operating cost results in higher interest rates on savings and
lower rates on mortgages and loans offers from the banks. Some banks offer high yield
certificate of deposits and don’t penalize withdrawals on certificate of deposits, opening of
accounts without minimum deposits and no minimum balance.
4. Transfer services: Online banking allows automatic funding of accounts from long
established bank accounts via electronic funds transfers.

5. Ease of monitoring: A client can monitor his/her spending via a virtual wallet through certain
banks and applications and enable payments.

6. Ease of transaction: The speed of transaction is faster relative to use of ATM’s or customary
banking.

7. Discounts: The credit cards and debit cards enables the Customers to obtain discounts from
retail outlets.

8. Quality service: E-Banking helps the bank to provide efficient, economic and quality service
to the customers. It helps the bank to create new customer and retaining the old ones
successfully.

9. Any time cash facility: The customer can obtain funds at any time from ATM machines
DISADVANTAGES
Technology and Service Interruptions
Anytime we use computers or internet service, we are at the mercy of the system's stability and efficiency.
Your ability to access accounts online will naturally be affected if your internet service is running slowly or
completely out for a period of time. Similarly, if the bank's servers go down or are temporarily unavailable due
to scheduled site maintenance, you won't be able to gain online or mobile access to your banking information.
1] Security and Identity Theft Concerns
In general, online banking sites and mobile apps are designed to be secure and banks are continually putting
updated security protocols in place. However, no system is completely foolproof and accounts can be hacked,
resulting in identity theft via stolen login credentials. So while you can use mobile or online banking with
general confidence, be careful to avoid using networks that are not secure and be careful to change passwords
and protect your login information.
2] Limitations on Deposits
Daily or monthly mobile deposit limitations may make it difficult for individuals, but especially businesses to
make large deposits online. Once you have reached your designated limit, you'll need to trek to a branch to
deposit money. Also, not all types of checks are easily read by computer scanning software. For example,
business checks that are handwritten and have a black line on the reverse side to make a carbon record in an
account register may be kicked out of the online deposit system, requiring an on-site deposit.
3] Convenient but Not Always Faster
While it may take very little time to deposit a check via a bank's mobile app, you still need to wait for access to
your money. Online banking provides convenience in terms of the amount of time saved in travel or waiting in
line at a branch location, but all deposits are reviewed and funds are released for access according to bank
policy, which may take up to three business days depending on the amount deposited.
4] Lack of Personal Banker Relationship
For the most part you may be able to handle your general banking needs by yourself. Yet when problems arise
if you don't have a personal relationship with a banker, it might be more difficult to get your issues resolved.
While online banking sites have customer service departments, you often need to work your way through a
phone tree and wait on hold before speaking with someone who has no knowledge of your needs or banking
history. In contrast, a local banker is motivated to serve their customers and strengthen their personal
relationships.
5] A Limited Scope of Services
Although you can do quite a bit with an online bank account, such as make deposits, check balances and pay
bills, there are limitations to the kinds of services you can access. You may be able to make an initial
application for opening a new account or applying for a loan or mortgage, but in most cases you will need to
visit a branch to sign forms and show identity documentation. Similarly, even though you can transfer money
to a checking account or debit card in order to make purchases, if you need cash, you'll have to visit a branch
office or a nearby ATM.
6] Potential to Overspend
The ability to check account balances in the spur of the moment could potentially cause some people to
overspend the limits of their checking accounts. Without a careful look at your checkbook or record of unclear
debit transactions, the account balance may not accurately reflect the true amount you have available.
Overdrafts and fees might occur if you don't keep close tabs on all your transactions.
STATEMENT OF PROBLEM-:

Nowadays User Friendly Technology is becoming more popular among customers, most of
the banks are providing online banking facility. Today, most of the customers are increasingly
using the technological banking facilities available in banking sector. It reduces cost and saves
time. From the customers perceptive towards technological banking provides a convenient and
effective way to manage finance that is easily accessible at 24hours a day in 7 days a week. On
the other hand, online banking has certain problems such as lack of knowledge to operate the
technology, set-up cost, legal issues, lack of relationship among banker and customer, securely
and privacy issues.
A system that satisfies user needs reinforces satisfaction with the system and is a perceptual
or subjective measure of system success. The more accepting of a new information system the
users are, the more willing they are to make changes in their practices and use their time and
effort to actually start using the new information system. The half of the people that have tried
online banking services will not become active users. Their confidence in technology was weak.
For some people the User Friendly Technology really simplifies their life style, while for others
it is very much threatening and complex. Therefore in this context, it is necessary to study the
perception of customers’ challenges towards User Friendly Technology.
Objectives-:
1] To study consumer perception for online banking.

2] To study factor effecting consumer for online banking.

3] To identify problems encountered while using online

banking. 4] To analysis satisfaction level regarding online

banking.
HYPOTHESIS-

1. H0-perceived perception has no effect on consumer acceptance of online banking.

H1- Perceived perception has a positive effect on consumer acceptance of online banking.

2. H0- Perceived factor has no effect on consumer acceptance of online banking

H1- Perceived factor has a positive effect on consumer acceptance of online banking.

3. Ho- Security and privacy does not effect on consumer acceptance of online banking.

H1- Security and privacy have a positive effect on consumer acceptance of online banking.

4. H0- Satisfaction level has no effect regarding online banking.

H1-Satisfaction level has positive effect regarding online banking.

Scope of study-:

1. Scope of this project was to find consumer awareness regarding online banking.

2. The study of acceptance and satisfaction of various online banking services in Kalyan of
India would give better picture of online banking adoption at national level.

3. A comparative study can also study consumer perception regarding online banking.

4. A detailed study can be carried out to identify the problems encountered while using
online services.
LIMITATION-:

1. Technology acceptance model studies are not consistent or clear and lack many
significant factors that influence adoption.

2. The second limitation concerns the sample. Although the sample size was quite small.

3. Many people are not use online services as daily basis they are not aware about online
services.

4. The other limitation of this work concerns the measures for user acceptance.

5. Subjective norms and other possible factors influencing the acceptance of online banking
were not included in the model.
 CH-2 RESEARCH METHODOLOGY

RESEARCH DESING & SAMPLE SIZE

SAMPLE DESIGN

1. SAMPLE SIZE –

150 students and 50 parents were selected for this research.

Area of study-

KALYAN CITY.

PRIMARY AND SECONDARY DATA

SOURCES OF DATA COLLECTION

There is two of data collection method, which is being used in the research:

1. Primary data
2. Secondary data

PRIMARY DATA
 Primary data involves getting original data directly about the product and market. Primary
research data is the data that did not exist before. It is designed to answer specific question of
interest to the researcher.

QUESTIONNAIRES-

A questionnaire is a research instrument consisting of a series of questions and other

prompts for the purpose of gathering information from respondents. Questionnaire where filled
by Google scholar. Also Questionnaire where filled by 150 students and 50 parents.

SECONDARY DATA

Secondary data research paper downloaded from Google scholar and other resources like
online library, Secondary data used in this researched was taken from internet, journals and also
from the report article, reference book. Data analysis will be done using excel software.
 Ch 3-REVIEW OF LITRETURE-:

Usability is the most traditional concept of study in human–computer interaction (HCI) research
(Olson and Olson, 2003; Karat, 2003). Usability has been defined as a ‘‘the measure of the
quality of a user’s experience when interacting with a product or system.

1. VARIABLE- Usability.

Arora (2003) made an attempt to prove that technology had a definitive role in facilitating
transactions in the banking sector; and the impact of technology had resulted into the
introduction of new products and services by various banks in India. The author discussed
various initiatives taken by the banks to manage transformation and these initiatives had brought
customers the convenience of anywhere, anytime banking. The author concluded that technology
was a facilitator for advancement in the core business of banking and not an end in itself.

2. VARIABLE- Technology
Online banking offers many benefits to banks as well as to customers. However, in global terms
the majority of private bankers are still not using online banking channel. There exist multiple
reasons for this. To start with, customers need to have an access to the Internet in order to utilize
the service. Furthermore, new online users need first to learn how to use the service (Mols et
al., 1999).

3. VARIABLE- Utilize the service

Singhal and Padhmanabhan (2008) explored that the major factors responsible for internet
banking based on respondents‟ perception on various internet applications and internet banking
increasingly becoming popular because of convenience and flexibility. It also provides a
framework of the factors which are taken to assess the internet banking perception.

4. VARIABLE- Perception

Successful internet banking sites should be both easy to learn and use, since the perception about
these characteristics is likely to lead in higher adoption behavior (Jahangir and Begum,
2008). Hence, the prevention of the “under-used” useful system effect passed through the
development of systems that are both like to use and easy to learn. According to Moon and
Kim (2001), easy to use information systems will belles threatening to most users.

5. VARIABLE- Like
Consumer attitude and adoption of internet banking have shown that there are several factors
affecting the consumer’s attitude towards online banking such as person’s demography,
motivation and behavior towards different banking technologies and individual acceptance of
new technology. It has been found that consumer’s attitudes toward online banking are
influenced by the prior experience of computer and new technology (Laforet and Li 2005) [20]. As
far as online banking adoption is concerned, security, trust and privacy concerns have been
outlined as extremely important ones from the consumer’s standpoint (Benamati and Serva 2007)
[4]. Online banking requires perhaps the most consumer involvement, as it requires the consumer
to maintain and regularly interact with additional technology (a computer and an Internet
connection) (Jane et al, 2004). Consumers who use e-banking use it on an ongoing basis and need
to acquire a certain comfort level with the technology to keep using it (Servon, and Kaestner
2008)

6. VARIABLE- Factor aff

The concept of “Customer or User Satisfaction level” as a key performance indicator within the
businesses has been in use since the early 1980s (Bailey & Pearson 1983; Ives, Olson, & Baroudi
1983) [2]. Similarly, the end user computing satisfactions have been studied since the 1980
(Bailey & Pearson 1983; Chin, Diehl, & Norman 1988; Ives et al., 1983; Rivard & Huff 1988).
The user satisfaction can be seen as the sum of the user’s feeling and attitudes toward several
factors that affect the usage situation (Bailey et al., 1983).

7. VARIABLE- Satisfaction level.

Uppal and Chawla (2009) study about “ online banking channel based banking services an
empirical study investigated the customer perception regarding the necessity of online
banking services bank fraud , future of online banking , preference regarding use of online
banking and the problems encountered by online banking customers. The study depicted
that customer of all bank group are interested in online banking services but at the same they
face problem like inadequate knowledge , poor knowledge ,lack of infrastructure and
difficulty they face in opening an account

8. VARIABLE- problems

V1- Usability.

V2- Technology.

V3- Utilize the services.

V4- Perception.

V5- Like to use.

V6- Factors affecting.

V7- Satisfaction level.

V8- Problems encountered.

 h 4- Data Analysis

TABLE No-1.1

Gender No of responses percentage

male 126 63%

female 74 37%

total 200 100

CHART-1.1

INTERPRETATION:
From above pie chart 63% respondent are male and 37% respondent are female involved.

TABLE NO-1.2
 Age No of responses percentage

Below 20 67 33.5%

20-30 91 45.5%

30-40 24 12%

40 above 18 9%

total 200 100

INTERPRETATION:
From above pie chart 46% respondent age between20-30, and 33% respondent age is below 20,
12% are between30-40 and 9% respondent age is 40 above.
 Use online banking services

Use online banking services No of responses percentage

yes 168 84%

no 32 16%

total 200 100

CHART -1

INTERPRETATION:
From above pie chart the research revealed that84% respondent use online banking services.
And 16% people not use online banking services but 84% respondent feel that online banking
services is very useful for doing online banking transactions.
 Often do you use online Banking

TABLE NO .2

Frequently use No of responses percentage

daily 48 24%

Once in week 58 29%

Once in month 59 29.5%

Once in six month 35 17.5%

total 200 100

INTERPRETATION:
Many people use online banking services frequently from above chart it can be seen 29%
respondent use online banking service once in monthly basis ,29% respondent use once in week
and 24% use daily and 18% respondent use online banking services once in six month.
 consumer perception for online banking is

TABLE NO.3

Perception for online banking No of responses percentage

positive 161 80.5%

Highly positive 25 12.5%

Negative 11 5.5%

Highly Negative
INTERPRETATION: 3 1.5%

total 200 100

Many people use online banking services frequently from above chart it can be seen 29%
respondent use online banking service once in monthly basis ,29% respondent use once in week

and 24% use daily and 18% respondent use online banking services once in six month.

online banking is useful for you to utilize banking service

 TABLE NO.4

Utilize banking services No of responses percentage

Time saving 142 71%

Easy to use 34 17%

Secure and private 17 8.5%

Clear and understandable 7 3.5%

total 200 100

INTERPRETATION:
From above pie chart it can be seen that online banking useful for utilize banking services 71%
respondent feel because it is time saving and 17% respondent feel it is easy to use ,8% feel
because secure and private and 4% respondent feel clear and understandable.

The contribution of online banking technology to the success of banking your

opinion is
 TABLE NO.5

Contribution online banking No of responses percentage

technology

High 116 58%

Very high 29 14.5%

Average 50 25%

Low 5 2.5%

total 200 100%

INTERPRETATION:
Contribution of online banking technology to the success of banking 58% respondent feel that
is high , 14% feel very high and 25% respondent feel contribution of new technology is average
,only 3% respondent feel contribution of new technology is low.
 consumer like to use online banking services

Consumer like to use online No of responses percentage

services

Easy to use 115 57.5%

See your banking A/c details 31 15.5%

Discounts and offers 20 10%

Paperless transaction 34 17%

total 200 100

TABLE NO.
 Satisfaction level regarding online banking

TABLE NO.7
Satisfaction Satisfied Extremely Neutral Dissatisfied Extremely
level satisfied dissatisfied
Bank has up 132 42 26 0 0
to date
technology
Process of 125 50 25 0 0
transaction
Faster log in 131 35 32 2 0
facility
Bank perform 124 47 25 4 0
right services
INTERPRETATION;
From above pie chart it can be seen satisfaction level regarding online banking is satisfied .bank
has up to date technology 132 respondent feel it is satisfied and 0 respondent are dissatisfied,
process of transaction 125 respondent feel satisfied and 25 neutral and 0 respondent dissatisfied
and 125 respondent are feel bank perform right services at right time.
 Problem encountered while using online
banking

TABLE NO.8

Problem encountered No of responses percentage

Lack of knowledge 54 27%

Lack of security 48 24%

Internet connection 80 40%

Transaction difficulty 18 9%

total 200 100

CHART-8

INTERPRETATION;
For using online banking services so many problems encountered 40% respondent feel because
of internet connection, 27% respondent feel lack of knowledge and 24% feel because lack of
security ,9% feel because transaction difficulty.
 factor affecting consumer for online banking

TABLE NO.9

Factor affecting No of responses percentage

Subjective norms 50 25%

Perceived usefulness 21 10.5%

New technology 74 37%

Security and trust aspects 55 27.5%

total 200 100

CHART-9

INTERPRETATION;
From above pie chart for using online banking services many factors are affecting 37%
respondent feel new technology, 28% feel security and trust aspect and 25% respondent feel
because of subjective norms, 10% feel because of perceived usefulness.
 Are you satisfied with overall online banking services

TABLE NO-10

Satisfy with overall banking No of responses percentage

services

Yes 162 81%

Cannot say 35 17.5%

No 3 1.5%

total 200 100

INTERPRETATION;

Overall satisfaction regarding online banking services are81% respondent feel it is yes and 17%
respondent feel no and 2% respondent cannot say. But 81% respondent satisfied with banking
services and they accept online banking service.
1. H0-perceived perception has no effect on consumer acceptance of online banking.

H1- Perceived perception has a positive effect on consumer acceptance of online banking.