This is further supported by Sharma that fees and charges rendered by the banks for being e-banking C. The survey was developed based on the works of Nupur , Responsiveness 0.
The developed questionnaire has 35 questions including some demographic questions for Dependent variable more interpretation of responses. The prepared Customer 0. Descriptive statistics questionnaire.
Descriptive Statistics D. Methods of data analysis N Mean Std. SPSS statistics version 21 was used to analyse the collected primary data from the questionnaire. Demographics of respondents Valid N listwise Total of questionnaires was distributed, out of which were considered for the study. Accordingly, males. In terms of age, the majority of the people are 3.
Customers are fairly satisfied with all variable as the mean values are B. Reliability having small variation between all independent Reliability is a measure that indicates the stability and variables.
The standard deviation for all variables also consistency of a measure where the internal provides overall a good variance analysis as well. As shown in table 1, it demonstrates run to identify the strength of the relationship between that the coefficient for internal consistency is very variables in e-banking in Colombo district. Indeed, the author has carefully designed each D. Correlation analysis individual question for this variable which leads the Correlation is a tool that enables the researcher to researcher to ensure a higher consistency for all items.
Therefore, the researcher has conducted Independent variables the correlation analysis to identify the relationship Convenience 0. As we can see that in the correlation table, the Pearson H4a: There is a relationship between correlation is 0.
The statistical significance of the correlation banking between those variables is 0. The results demonstrate that the Pearson correlation Therefore, H1a hypothesis is accepted and the null for responsiveness is 0. Similarly, the significance level is customer satisfaction in e-banking 0. The significance value is 0. Thus, customer satisfaction in e-banking. Correlation is significant at the 0. But, the calculated significance value of major role in ensuring customer satisfaction since reliability 0.
Therefore, overall regression statistics are favourable to the hypothesis. Error of Residual It shows an R- square value of 0. The R-value of 0. Model Unstandardized Standardized t Sig.
Coefficients Coefficients B Std. Beta V. From the statistical analysis and theoretical Reliability -. The a. It is evident from multiple regression The above table provides necessary information to analysis that convenience, security and cost are the predict customer satisfaction from each independent most influencing factors of customer satisfaction in e- variable such as convenience, reliability, security, banking.
The study concludes that more customers are responsiveness and cost. Even 0. If the level of satisfaction is measured after 3 Some recommendations are provided below. Available at: customers when handling their requests. The researcher has found following limitations while doing the research.
Ahmad, A. Research has conducted within a single bank AlHaliq, H. Accessed: 6 September It recommends that the same study could be undertaken industry-wide banking industry Consumers Affairs Authority A digital Sri Lanka consumers can trust. September Elsevier [Online] DOI: V and Morgan, D. Available Psychological Measurement, 30, pp. Available at: Kumbhar, V. Practise, 3 4 , pp. Available September Marete, J. E 9. Jayasiri, N. Education and Communication technology, 2 1 , pp.
Nochai, R. Kamburugamuva, A. Kariyawasam, N. Available at: 1 , pp. India: Pearson Educations. Available at: edn. Research methods for business students. Worku, G.
Journal of Applied Research, 2 7 pp. Available at: [Online]. Toor, A. Wang, C. Master thesis. Rasika and T. The concept and scope of e-banking is still evolving. It facilitates an effective payment and accounting system thereby enhancing the speed of delivery of banking services considerably. The government of India enacted the IT Act, , which provides legal recognition to electronic transactions and other means of electronic commerce.
The RBI has been preparing to upgrade itself as regulator and supervisor of the technologically dominated financial system. It issued guidelines on the risks and controls in computer and telecommunication systems to all banks, advising them to evaluate the risks inherent in the systems and put in place adequate control mechanisms to address these risks.
Electronic banking is one of the truly widespread avatars of E-commerce the world over. Various authors define E-Banking differently but the most definition depicting the meaning and features of E-Banking are as follows: 1.
Banking these days is a combination of two, Electronic technology and Banking. Electronic Banking is a process by which a customer performs banking Transactions electronically without visiting a brick-and-mortar institutions i. E-Banking denotes the provision of banking and related service through Extensive use of information technology without direct recourse to the bank by the customer.
In true Internet banking, any inquiry or transaction is processed online without any reference to the branch anywhere banking at any time. Providing Internet banking is 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 forefront of harnessing technology to improve their products, services and efficiency. They have, over a long time, been using electronic and telecommunication networks for delivering a wide range of value-added products and services. The delivery channels include direct dial — up connections, private networks, public networks etc and the devices include telephone, Personal Computers including the Automated Teller Machines, etc. With the popularity of PCs, easy access to Internet and World Wide Web WWW , Internet is increasingly used by banks as a channel for receiving instructions and delivering their products and services to their customers.
This form of banking is generally referred to as Internet Banking, although the range of products and services offered by different banks vary widely both in their content and sophistication. The term online became popular in the late '80s and refers to the use of a terminal, keyboard and TV or monitor to access the banking system using a phone line. Because of the commercial failure of videotext these banking services never became popular except in France where the use of videotext Minitel was subsidized by the telecom provider and the UK, where the Prestel system was used.
The system used was based on the UK's Prestel system and used a computer, such as the BBC Micro, or keyboard Tan data Td connected to the telephone system and television set.
The system known as 'Homelink' allowed on-line viewing of statements, bank transfers and bill payments. In order to make bank transfers and billpayments, a written instruction giving details of the intended recipient had to be sent to the NBS who set the details up on the Homelink system.
Typical recipients whereas, electricity and telephone companies and accounts with other banks. Details of payments to be made were input into the NBS system by the account holder via Prestel. A cheque was then sent by NBS to the payee and an advice giving details of the payment was sent to the account holder. BACS was later used to transfer the payment directly. Stanford Federal Credit Union was the first financial institution to offer online internet banking services to all of its members in Oct, The use of technology, at that time, was limited to keeping books of the bank.
Through Convenience banking, the bank is carried to the doorstep of the customer. The banking industry was simply waiting for these technologies. Now with distribution technologies, one could configure dedicated machines called front- end machines for customer service and risk control while communication in the batch mode without hampering the response time on the front-end machine.
They had to reinvent and improve their products and services to make them more beneficial and cost effective. Technology in the form of E-banking has made it possible to find alternate banking practices at lower costs. More and more people are using electronic banking products and services because large section of the banks future customer base will be made up of computer literate customer, the banks must be able to offer these customer products and services that allow them to do their banking by electronic means.
If they fail to do this will, simply, not survive. New products and services are emerging that are set to change the way we look at money and the monetary system. The use of electronic banking has removed personnel that facilitate the transactions and has placed additional responsibilities on the customers to transact with the service. But here are few cases where Internet banking will turn out to be a better option in terms of saving your money.
Through Internet banking, you can check your transactions at any time of the day, and as many times as you want to. On the other hand, in a traditional method, you get quarterly statements from the bank and if you request for a statement at your required time, it may turn out to be an expensive affair.
The branch may charge you Rs 25 per page, which includes only 30 transactions. Moreover, the bank branch would take eight days to deliver it at your doorstep. If the fund transfer has to be made outstation, where the bank does not have a branch, the bank would demand outstation charges. Whereas with the help of online banking, it will be absolutely free for you. As per the Internet and Mobile Association of India's report on online banking , "There are many advantages of online banking.
It is convenient, it isn't bound by operational timings, there are no geographical barriers and the services can be offered at a miniscule cost. After all, if there are risks inherent in going into e-banking there are other risks in not doing so.
It is too early to have a firm view on this yet. Even to practitioners the future of e-banking and its implications are unclear. It might be convenient nevertheless to outline briefly two views that are prevalent in the market. The view that the Internet is a revolution that will sweep away the old order holds much sway.
Arguments in favor are as follows: E-banking transactions are much cheaper than branch or even phone transactions. This is commonly known as the "beached dinosaur" theory.
E-banks are easy to set up so lots of new entrants will arrive. Instead, they will be adaptable and responsive. E-banking gives consumers much more choice. Consumers will be less inclined to remain loyal. Deposits will go elsewhere with the consequence that these banks will have to fight to regain and retain their customer base. This will increase their cost of funds, possibly making their business less viable.
Lost revenue may even result in these banks taking more risks to breach the gap. Portal providers are likely to attract the most significant share of banking profits.
Indeed banks could become glorified marriage brokers. They would simply bring two parties together — e. The products will be provided by mono lines, experts in their field. Traditional banks may simply be left with payment and settlement business — even this could be cast into doubt.
Traditional banks will find it difficult to evolve. Not only will they be unable to make acquisitions for cash as opposed to being able to offer shares, they will be unable to obtain additional capital from the stock market.
There is of course another view which sees e-banking more as an evolution than a revolution. E-banking is just banking offered via a new delivery channel.
It simply gives consumers another service just as ATMs did. Like ATMs, e-banking will impact on the nature of branches but will not remove their value. Customers want full service banking via a number of delivery channels. Traditional banks are starting to fight back. The start-up costs of an e-bank are high.
Establishing a trusted brand is very costly as it requires significant advertising expenditure in addition to the purchase of expensive technology as security and privacy are key to gaining customer approval. E-banks have already found that retail banking only becomes profitable once a large critical mass is achieved. Consequently many e-banks are limiting themselves to providing a tailored service to the better off. Nobody really knows which of these versions will triumph.
This is something that the market will determine. Automated Teller Machine ATM : These are cash dispensing machine, which are frequently seen at banks and other locations such as shopping centers and building societies.
Their main purpose is to allow customer to draw cash at any time and to provide banking services where it would not have been viable to open another branch e. However it is fastly becoming one of the most popular products.
Customer can perform a number of transactions from the convenience of their own home or office; in fact from anywhere they have access to phone. This system basically, accepts only TONE dialed input. Like the ATM customer has to follow particular process, initially account number and telephone PIN are fed for the process to start. Also the VRS system provides the users within additional facilities such as changing existing password with the new desired, information about new products, current interest rates etc.
Mobile Banking: Mobile banking comes in as a part of the banks initiative to offer multiple channels banking providing convenience for its customer. A versatile multifunctional, free service that is accessible and viewable on the monitor of mobile phone. Mobile phones are playing great role in Indian banking- both directly and indirectly. They are being used both as banking and other channels.
Internet Banking: The advent of the Internet and the popularity of personal computers presented both an opportunity and a challenge for the banking industry. Now that their customers are connected to the Internet via personal computers, banks envision similar advantages by adopting those same internal electronic processes to home use.
They started web based banking as early as august Currently, the following three basic kinds of Internet banking are being employed in the marketplace. This level of Internet banking can be provided by the banks or outsourced.
While the risk toa bank is relatively low, the server or web site may be vulnerable to alteration. The interaction maybe limited to electronic mail, account enquiry, loan applications, or static file updates name and address change. Virus controls also become much more critical in this environment.
Customer transactions can include accessing accounts, paying bills, transferring funds etc. Some online banking platforms support account aggregation to allow the customers to monitor all of their accounts in one place whether they are with their main bank or with other institutions. Apart from periods of website maintenance, services are available 24 hours a day and days round the year. In a scenario where internet connection is unavailable, customer services are provided round the clock via telephone.
This hastens the banking processes hence increasing their efficiency and effectiveness. The time for changing mailing address is greatly reduced, ordering of additional checks is availed and provision of actual time interest rates.
It can include reversal of an undeserved service charge. However, there are no perfect systems. Accounts are prone to hacking attacks, phishing, malware and illegal activities. Customary banks may call for meetings and seek expert advice to solve issues. Not just bill payment, you can make investments, shop or buy tickets and plan a holiday at your fingertips. You can avail the following services: 1. Bill payment service: Each bank has tie-ups with various utility companies, service providers and insurance companies, across the country.
It facilitates the payment of electricity and telephone bills, mobile phone, credit card and insurance premium bills. To pay bills, a simple one-time registration for each biller is to be completed. Standing instructions can be set, online to pay recurring bills, automatically. One-time standing instruction will ensure that bill payments do not get delayed due to lack of time.
Most interestingly, the bank does not charge customers for online bill payment. Fund transfer: Any amount can be transferred from one account to another of the same or any another bank. Customers can send money anywhere in India. The transfer will take place in a day or so, whereas in a traditional method, it takes about three working days.
ICICI Bank says that online bill payment service and fund transfer facility have been their most popular online services. Credit card customers: Credit card users have a lot in store. With Internet banking, customers can not only pay their credit card bills online but also get a loan on their cards. Railway pass: This is something that would interest all the aam janta. The pass will be delivered to you at your doorstep.
Investing through Internet banking: Opening a fixed deposit account cannot get easier than this. An FD can be opened online through funds transfer. Online banking can also be a great friend for lazy investors. Now investors with interlinked demat account and bank account can easily trade in the stock 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 the facility to purchase mutual funds directly from the online banking system.
So it removes the worry about filling those big forms for mutual funds, they will now be just a few clicks away. Nowadays, most leading banks offer both online banking and demat account. However if the customer have there demat account with independent share brokers, then need to sign a special form, which will link your two accounts.
Recharging your prepaid phone: Now there is no need to rush to the vendor to recharge the prepaid phone, every time the talk time runs out. Just top-up the prepaid mobile cards by logging in to Internet banking. By just selecting the operator's name, entering the mobile number and the amount for recharge, the phone is again back inaction within few minutes. Shopping at your fingertips: Leading banks have tie ups with various shopping websites.
With a range of all kind of products, one can shop online and the payment is also made conveniently through the account. One can also buy railway and air tickets through Internet banking. On strategic risk E-banking is relatively new and, as a result, there can be a lack of understanding among senior management about its potential and implications. People with technological, but not banking, skills can end updriving the initiatives.
E- initiatives can spring up in an incoherent and piecemeal manner in firms. They can be expensive and can fail to recoup their cost. Furthermore, they are often positioned as loss leaders to capture market share , but may not attract the types of customers that banks want or expect and may have unexpected implications on existing business lines.
Banks should respond to these risks by having a clear strategy driven from the top and should ensure that this strategy takes account of the effects of E- banking, wherever relevant.
Such a strategy should be clearly disseminated across the business, and supported by a clear business plan with an effective means of monitoring performance against it. Given the newness of E-banking, nobody knows much about whether E-banking customers will have different characteristics from the traditional banking customers. They may well have different characteristics.
This could render existing score card models inappropriate, this resulting in either higher rejection rates or inappropriate pricing to cover the risk. Banks may not be able to assess credit quality at a distance as effectively as they do in face to face circumstances. It could be more difficult to assess the nature and quality of collateral offered at a distance, especially if it is located in an area the bank is unfamiliar with particularly if this is overseas.
Furthermore as it is difficult to predict customer volumes and the stickiness of E-deposits things which could lead either to rapid flows in or out of the bank it could be very difficult to manage liquidity. Of course, these are old risks with which banks and supervisors have considerable experience but they need to be watchful of old risks in new guises.
In particular risk models and even processes designed for traditional banking may not be appropriate. This risk exists in each product and service offered. Since customers expect E-banking services to be available 24 hours a day, 7days a week, financial institutions should ensure their E-banking infrastructures contain sufficient capacity and redundancy to ensure reliable service availability.
Even institutions that do not consider E-banking a critical financial service due to the availability of alternate processing channels, should carefully consider customer expectations and the potential impact of service disruptions on customer satisfaction and loyalty. The key to controlling transaction risk lies in adapting effective polices , procedures, and controls to meet the new risk exposures introduced by E-banking.
Basic internal controls including segregation of duties, dual controls, and reconcilements remain important.
0コメント