Impact Of Internet Banking On Bankers Satisfaction Finance Essay

In last few old ages, Indias banking system has several outstanding accomplishments to its recognition. Banks are now no longer confined to merely metropolitans or cosmopolites in India. In fact, Indian banking system has reached each and every corner of the state. It has besides helped in growing procedure of India.

The first bank in India was established in 1786. Journey of Indian Banking System can be segregated into three distinguishable phases-

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Phase -I Early stage from 1786 to 1969

In this stage sedimentation mobilisation by Bankss was really slow. Peoples preferable Postal Saving bank installation offered by Department of Post of Government of India as it was relatively safer and convenient.

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Phase- II Nationalisation of Indian Bankss

In July, 1969, 14 major commercial Bankss in the state was nationalised. In 1980 seven more Bankss were nationalised. This measure of Government of India brought 80 % of the banking section in India under its ownership. Nationalization of Bankss had a really positive impact on their sedimentations and progresss.

Phase-III Indian Banking Sector Reforms ( From 1991- Till Date )

Indian Banking Sector reforms helped in debut of many more merchandises and installations in the banking sector. In 1991, the procedure of liberalization of banking patterns was started. It resulted in entry of foreign Bankss in India. New services like nomadic banking, Net banking, Phone banking, ATM services etc. was introduced for the first clip in the country.The full system became more convenient and fleet. Time is given more importance than money. Introduction of construct of Information Technology helped Bankss in bettering client service, book maintaining, MIS and productiveness. RBI played really of import function in take a firm standing Bankss for acceptance of Information Technology for its day-to-day operations. It has helped Bankss in cut downing their administrative costs. Online banking installation has enabled clients to entree their histories, take print out of bank statements and even reassign of money without go forthing the comfort of their place or office. So we can state that in add-on to its convenience, online banking besides helps in nest eggs clip and money. Banks are utilizing Information Technology to increase returns on investing, better client relationship direction ( CRM ) and employee productiveness. But, with decrease in cost of minutess, it has besides brought certain hazards to bank like Transactional hazard which is the most common signifier of hazard associated with cyberspace banking. Security hazard may besides originate on history of unauthorised entree to a bank ‘s critical information shops like accounting system, hazard direction system, portfolio direction system, etc. In add-on to these external onslaughts, Bankss are besides exposed to certain security hazard from internal beginnings e.g. employee fraud.

Compared to Bankss in foreign states, Indian Bankss offering online services still have a long manner to travel.


Balasubramanya S. ( 2002 ) in his survey examined that the mechanization in the banking sector has come a long manner get downing with the Rangarajan Committee study on the banking sector reforms in the 1880ss, followed by studies of the Narasimhan Committee in the 1890ss. With more than 65,000 subdivisions of the Bankss ( public, private and the concerted sector ) in the India, the research worker have found that the per centum of subdivisions enclosed by mechanization was non satisfactory and there is demand to rush up procedure of mechanization.

Vij Madhu ( 2003 ) in her survey examined the changing profile of Indian Bankss with the aid of a comparative survey of three private sector Bankss in India viz. ICICI bank, HDFC bank and IDBI bank. The comparative scrutiny of the 3 private sector Bankss shows that HDFC is at figure one, ICICI at figure two and IDBI Bank at the underside in country of use of Information Technology. In the survey the research worker emphasised that in future challenge would be to take maximal advantage of Internet Banking.

Rajshekhara K. S. ( 2004 ) , in his research concluded that at nowadays IT has become an inseparable portion of banking industry. The acceptance of IT in the banking sector has resulted in the development of assorted constructs of banking such as Electronic banking, Internet Banking, Online Banking, Telephone Banking, ATM services etc. Information engineering has helped in supplying certain speedy service with low dealing cost to the clients ensuing in client ‘s satisfaction. Security is besides one of import issue in the country of concern in E-banking. The development of engineering for minimising costs, cut downing frauds in this sector. This survey has non covered positions of bank employees on cybernation of Bankss.

Ananthakrishnan G. ( 2005 ) in his survey found that client ‘s outlooks are increasing. At the present clip clients are no longer willing to wait in waiting lines and want prompt services. Researcher found that Bankss must supply following services to its clients to retain them-

• Quicker payment/receipts in hard currency counter

• Optimistic attitude of the bank staff

• Proper attending to the clients and clip edge services

Sakalya Venkata ( 2007 ) in his survey have identified 15 of import factors for bank clients i.e. Safety of Deposits, Size and Strength of bank, Accuracy in minutess, General Service Quality, Speed of Delivery, Proximity, Security, attitude of Staff, Service Charges, Bank Product, Image in eyes of General Public, Bank image in eyes of Peer, Face Lift ( Structural ) , friendly relationship with Bank Employees and Advertisement and Publicity. Harmonizing to the findings, based on the experimental survey, the first six factors have the maximal influence, following four have moderate influence and the remainder five have relatively lower influence. Therefore, retail Bankss must give due attending to these factors.

Kamakodi et Al. ( 2008 ) have done one study and obtained positions of 292 respondents on issues related to electronic banking channels. He concluded that beyond a point, IT along with ‘personal touch ‘ will be indispensable for the Bankss to retain bing clients and to pull new 1s and Bankss have to do scheme for the same.

Sharma Himani, Aggarwal Vikrant ( 2010 ) The employment of the Tata Consultancy Services ( TCS ) Bancs Core Banking at the State Bank of India ( S.B.I. ) in add-on to its affiliate Bankss symbolize the largest centralized nucleus system execution of all time performed.The overall attempt incorporated the transition of about 140 million histories held at 14,600 domestic subdivisions of State Bank of India and its affiliate Bankss. This survey outlines the history of the State Bank of India inside informations the attempt to overhaul the bank ‘s nucleus processing system. It besides recognizes the drivers to modernisation, the critical success factors, every bit good as the transition method.


Aims of the Survey:

The present survey was undertaken with the following aims:

1. To measure the impact of Internet banking services on bankers ‘ public presentation in footings of client base, profitableness, work force per unit area on staff, velocity and rightness of work, client dealingss, fraud control etc.

2. To measure the Impact of Internet Banking services on bank ‘s client satisfaction in footings of salvaging of clip, convenience etc.

3. To hold a comparing between the Information Technology enabled services provided by selected populace sector, private sector and foreign Bankss.

4 To propose assorted steps sing Internet banking through which public presentation and client satisfaction can be improved.


The undermentioned Hypothesis would be tested-

H1a: There is a important difference between public, private and foreign Bankss on the footing of impact of Internet banking on Bankers ‘ Performance.

H1b: There is a important difference between public, private and foreign Bankss on the footing of impact of Internet banking on Customer Satisfaction.

Data Collection and Analysis:

In this survey, entire six Bankss i.e. State Bank of India ICICI Bank Ltd. Standard Chartered Bank, Punjab National Bank HDFC Bank Ltd. HSBC Ltd are identified for the survey so that equal representation to public sector, private sector and foreign Bankss could be given. Further two provinces i.e. Haryana and Punjab and two Union Territories i.e. Delhi and Chandigarh are identified for survey. In following measure Ludhiana of Punjab, Gurgaon of Haryana are identified where all six Bankss have their subdivisions. Following measure would be to choose one subdivision of each bank from Ludhiana, Gurgaon, Delhi and Chandigarh utilizing random sampling technique. Following measure would be to choose twenty five clients of each subdivision of the sample Bankss utilizing convenience sampling. Structured Questionnaire would be made for them. Senior Manager of each selected subdivision would besides be given Questionnaire to roll up necessary informations for research.Both primary and secondary beginnings of informations would be used for analysis.The primary informations would be collected through two questionnaires i.e. one for client and one for the bankers. The first questionnaire would be formulated to cognize the clients ‘ positions and 2nd questionnaire would be designed to analyze the sentiment of bankers. The secondary informations would be collected from the Reserve Bank of India publications and from the web sites of the sample Bankss. For the analysis of the informations, appropriate statistical techniques and trials like Chi Square trial etc. would be used.

Nature of the survey

This survey is descriptive semen exploratory survey.

Sampling Technique-

Radom Sampling Technique is used for choice of subdivisions of selected six Bankss. Convenience Sampling would be used to choose 600 clients of 24 selected subdivisions i.e. 25 clients from each subdivision.


1 Study is confined merely to six selected Bankss.

2 Study is limited to merely two provinces i.e Haryana and Punjab and two Union Territories i.e. Delhi and Chandigarh

3 Primary informations would be collected merely from 25 clients from each 24 selected subdivision of 6 Bankss due to limited clip and other resources

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