A PROJECT REPORT ON

CUSTOMER SATISFACTION OF E-BANKING

SERVICES
SUBMITTED FOR THE PURPOSE OF INTERNAL
EVALUATION OF BRM

Submitted to:

Dr. Krishnendu Ghosh

Submitted by
1) Supriya Das (20BSP2562)
2) Pruthibi Pattanaik (19BSP2045)
3) Anant Bansal (20BSP0233)
4) Swapneel Paul (20BSP2586)
5) Zeba Akhtar (20BSP2902)
6) Hamza Shakil Ahmed (20BSP0810)

SECTION: A
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DECLARATION
Title of Dissertation: - “Analysis of Customer Satisfaction from E-Banking
Services.”

Hereby We declare that the project report presented for assessment in this
dissertation is our own, that it has not previously been presented for another
assessment and that our debts (for words, data, arguments and ideas) have been
appropriately acknowledged. That the work confirms to the guidelines for presentation
and style set out in the relevant documentation.

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PREFACE

The underlying aim of the project is to do a study of the satisfaction of customer

about the E-Banking services. The primary bank data for the studies were obtained
from the questionnaire and field study and the secondary data were collected from
banks websites and articles published in newspapers. E-banking is defined as the
automated delivery of new and traditional banking products and services directly to
customers through electronic, interactive communication channels.
This project gave us a great learning experience and at the same time it gave
enough scope to implement our analytical ability. This report will help to know about
the customer satisfaction and e-banking services and its various aspects. This
project also helps to customer satisfaction about the e-banking services.

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ACKNOWLEDGEMENT

We take this opportunity to express our deep sense of gratitude to all those who
have contributed in making my report a success. Every project is a blend of efforts
and learning on the part of students and knowledge and experience of the experts in
their respective fields.
We would like to express our sincere gratitude to our faculty guide “DR. Krishnendu
Ghosh” for him continued guidance, encouragement, support and cooperation
throughout our project, without which the present work would not have been possible.
We would also like to thank our group members, for the constant support and help in
the successful completion of our project.

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EXECUTIVE SUMMARY

This project aims at study on Customer Perception Towards E-banking service. In

this research study of 94 respondents from the Banks were taken, After analyzing
the results of the questionnaire we conclude that even now a days banks are
providing innovative services day by day, but still there are a lot of customers who
are even not aware about these services, the usage of these services is a different
issue, Today Banks are using huge amount of funds to provide differentiate
services to their customers from their competitors like by using new software or
by providing new innovative services like internet banking, mobile banking, and
many others but still they are focusing only to provide the innovative services to
the customers not focusing too aware them regarding these services and also there
is a need to aware the customers about the use and benefits to the services provided
by the bank, because it‘s the way to get competitive advantage, as per as we all
know that today most of the organizations are focusing on the promotion- element
of marketing mix, which is providing financial as well as non- financial benefits
like Brand image, so these Banks is not focusing over this element, Majority of the
respondent in Bank have savings account with banks.

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TABLE OF CONTENTS

Sr.No. TITLE Page No.

1 Scope of Study 7

2 Research Methodology 8-10

3 Sources of Data 11

4 Introduction to Industry 12

7 Literature Review 13

8 Data Analysis and Interpretation 14-20

9 Facts & Findings 21

10 Conclusion 22

11 Questionnaire 23-25

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TITLE
The title of the project is ‘Customer Satisfaction of E-banking Services’.

OBJECTIVES OF THE REPORT:

• To study about the factors that affects the customer perception towards E-
banking.
• To know about the current and future prospects of E-Banking to the
customers.

SCOPE OF THE STUDY

 Area is restricted to only KOLKATA.
 All the classes of the customers were taken into consideration.
 This study was covered E-Banking service sector.

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Research Methodology:
 The methodology adopted to achieve the project objective involved Descriptive
research methodology.
 The information required for fulfilling the objective of study was collected from
various primary and secondary sources.

 It indicates the numbers of people to be surveyed. Though large samples give

more reliable results than small samples but due to constraint of time the sample
size was restricted to 94 respondents.
 Convenience sampling method will be used to get the information about online
banking. This method is used because we were interested in exploring gender,
age, or occupation inequalities in terms of online banking in the population.
 The data will be analyzed through the application of statistical techniques, such
as bar graphs and pie charts.
 It includes not only the research methods but also considers the logic behind
the methods used in the context of the study and explains why only a particular
method or technique has been used. It also helps to understand the
assumptions underlying various techniques and by which they can decide that
certain techniques will be applicable to certain problems and other will not
 The methodology adopted for studying the objectives was surveying the
customers of banks in the city of Kolkata.

TYPE OF RESEARCH
This study is DESCRIPTIVE in nature. It helps in breaking vague problem into
smaller and precise problem and emphasizes on discovering of new ideas and
insights.

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RESEARCH DESIGN
Constitutes the blue print for the collection, measurement and analysis of data.
The present study seeks to identify the extent of preferences of E- Banking over
traditional banking among service class. The research design is descriptive in
nature. The research has been conducted on customers of Banks within
KOLKATA. For the selection of the sample, convenient sampling method was
adopted and an attempt has been made to include all the age groups and gender
of every class.

RESEARCH INSTRUMENT
The instrument used for gathering data was questionnaire. To get further insight in
to the research problem, interview regarding their buying practices too was made.
This was done to crosscheck the authenticity of the data provided. To supplement
the primary data and to facilitate the process of drawing inference, secondary data
was collected from published sources like magazines, journals, newspapers etc.

SAMPLE DESIGN AND SIZE

In this research project Descriptive research design is used. Judgment and
Convenience sampling method will be used to get the information about online
banking. This method is used because we were interested in exploring gender, age,
or occupation disparities in terms of online banking in the population. For conducting
this research, a structured questionnaire is prepared and sample of 94 customers is
taken from bank.

SAMPLING SIZE
It indicates the numbers of people to be surveyed. Though large samples give more
reliable results than small samples but due to constraint of time and money, the
sample size was restricted to 94 respondents. The respondents belong to different
age group and gender.

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SAMPLING UNIT
It defines the target population that will be sampled i.e. it answers who is to be
surveyed. In this study, the sampling unit is the peoples of KOLKATA, West Bengal.

TOOLS AND TECHNIQUES OF ANALYSIS

The data so collected will be analyzed through the application of statistical
techniques, such as bar graphs and pie charts.

DATA COLLECTION
Keeping in view the nature of requirements of the study to collect all the relevant
information regarding the extent of awareness of the customers using E-banking
facilities offered by bank, direct personal interview method with structured
questionnaire was adopted for the collection of primary data. Secondary data has
been collected through the various internet sites by surfing on Interne t and from the
records available with the bank.

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SOURCE OF DATA

Following are the methods of sources of data:

SECONDARY DATA:
• Articles on E-Banking taken from journals, magazines published from time to time.
• Through internet.

PRIMARY DATA: Questionnaire was used to collect primary data from respondents.
The questionnaire was structured type and contained questions relating to different
dimensions of e- banking preferences among service class such as level of usage,
factors influencing the usage of e-banking services, benefits accruing to the users of
e-banking services, problems encountered. An attempt was also made to elicit
reasons for its non-usage. The questions included in the questionnaire were open-
ended, dichotomous and offering multiple choices.

NEED OF THE STUDY

• To determining growth direction of online banking service.
• Promoting E-banking services in banking industry.

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INTRODUCTION TO INTERNET BANKING:
1. Online banking, also known as internet banking or web banking, is an
electronic payment system that enables customers of a bank or other
financial institution to conduct a range of financial transaction through
the financial institution's website
2. The online banking system will typically connect to or be part of the
core banking system operated by a bank and is in contrast to branch
banking which was the traditional way customers accessed banking
services.
3. Some banks operate as a “direct bank" (or “virtual bank”), where they
rely completely on internet banking.
4. Internet banking software provides personal and corporate banking
services offering features such as viewing account balances, obtaining
statements, checking recent transactions, transferring money between
accounts and making payments.

LITERATURE REVIEW:
For the purpose of our study we have decided to look into a variety of articles
and research papers already published on the global scale. Some of the
papers that we have read for the purpose of study are as follows: -

(Malhotra & Singh,2007) studied the (Determinants of Internet banking

adoption by banks in India,2007) to see present status of Internet banking in
India and the extent of internet banking services offered by Internet banks.
In addition, they examined the factors affecting the extent of Internet banking
services. The data for this study is based on a survey of bank websites
explored during July 2008. The primary limitation of the study is the scope
and size of its sample as well as other variables like market, environment,
which have an effect on the decision on the banks to offer a wide range of
internet banking services.

(Uppal & Chawla,2009) conducted their study on (E-Delivery Channel-

Based Banking Services- An Empirical Study,2009) which highlighted the
customer perceptions regarding e-banking services. A survey of 1,200
respondents was conducted in October 2008 in Ludhiana district, Punjab.

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The respondents were equally divided among three bank groups namely,
public sector, private sector and foreign banks. The study investigated the
perceptions of the bank customers regarding necessity of e-banking
services, quality of e-banking services, bank frauds, future of e- banking,
preference of bank customers regarding banks, comparative study of
banking services in various bank groups, preferences regarding use of e-
channels and problems faced by e- bank customers. The major finding of the
study is that customers of all bank groups are interested in e-banking
services, but at the same time are facing problems like inadequate
knowledge, poor network, lack of infrastructure, unsuitable location, miss-
use of ATM cards and difficulty to open an account.

(Agarwal & Mehrotra,2009) stated about the (Customers perspectives

regarding e-banking in an e-merging economy,2009). They determined
various factors affecting customer perception and how attitude and
satisfaction towards e- banking is an essential part of a bank’s strategy
formulation process in an emerging economy like India. The major findings
depict that customers are influenced in their usage of E- banking services by
the kind of account they hold, their age, and profession. They summarized
that security & trust are most important in affecting their satisfaction level.

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DATA ANALYSIS & INTERPRETATION
AGE

Interpretation: -
The result shows that majority of respondents i.e. 85% falls under the category of
18-30 years and 15% falls under the category of 31-40. It shows that E-banking is
mainly famous among youngsters as they are the major users of E-banking and least
comes under category of 41-50 & above 50 years i.e. 5%.

GENDER

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Interpretation: -

The result shows that majority of respondents i.e. 59.6% are males who are using
the E-banking services and 40.4% are the female who are using E-banking services.

Q.1)

Interpretation: -
Out of 94 responses received from Online Survey, it is found that 59.6% represents
male and rest 40.4% represents female which has been depicted on the pie chart.
Out of the 94 responses received from the online survey, it is found that 98.9%
thinks that E- Banking is useful and the rest thinks it is not useful.

Q.2)

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Interpretation: -
Out of 94 responses from the online survey, it is found that 45.7% strongly agrees
that Internet banking is more convenient than Physical Banking, 39.4 % simply
agrees that Internet Banking is more convenient than physical banking, 13.8%
remains neutral about the convenience of Internet banking over Physical banking.

Q.3)

Interpretation: -
94 responses were recorded for this question, after interpreting the data it is clearly
visible from the pie diagram that 42.6% people prefer SBI bank over other banks,
25.5% people prefer Punjab National Bank over other bank, 11.6% people prefer
Axis Bank over other bank. The remaining banks are least preferred by people.

Q.4)

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Interpretation: -

94 responses were recorded for this question, after interpreting the data it is clearly
visible from the pie diagram that 61.7% people prefer E banking because of its 24-
hour service, while 33% people believe that E banking process is way simpler while
the remaining percentage of people believe that E Banking provides better
information to people and that is why they use it.

Q.5)

Interpretation: -
94 responses were recorded for this question, after interpreting the data it is clearly
visible from the pie diagram that 61.7% people consider that the best benefit of E
banking is Time Saving, 23.4% people prefer it over traditional banking methods
because of easy funds transfer feature while the remaining 13.8% prefer it for its
easy processing.

Q.6)

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Interpretation: -
Most of the people faced slow internet connection. The percentage is very high,
almost 65%. Many of them also thinks that E-Banking is a bit complex process and
some of them thinks that it’s difficult to understand the whole process.

Q.7)

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Interpretation: -

As we can see 52% prefer Internet Banking, Mobile Banking, Online Banking and
Debit/Credit Cards. After that as per our survey only 16% prefer only Mobile
Banking and only 10% prefer Internet Banking and 4% only prefer Debit/Credit
Cards but nobody prefer only Online Banking.

Q.8)

Interpretation: -
As we can see the majority of responses shows that people use e banking
for transactions once a week which stands at 37.2% that is around 35
respondents out of 94, then at 34%, 32 people out of the responses do the
transaction daily, 24 respondents that is 25.5% use internet banking once in
a month. The remaining 3.3% responses shows that transactions are done
by them rarely or twice / thrice a week. So we can see that the majority lies
where either transaction is done once a week/ daily or very less used that is
once a month.

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Q.9)

Interpretation: -

The results show that 78.7% respondents who are aware of E-banking they are
availing and feel that transactions through internet are secure & 21.3%
respondents think that transactions through internet are not secure.

Q.10)

Interpretation: -
The results show that 29.8% respondents who are aware of E-banking they are
availing and they are strongly satisfied with their bank’s e-banking services. 59.6%
are satisfied & 10.6% are neutral. While, no one seems dissatisfied according to the
respondents.

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FACTS & FINDINGS OF THE STUDY

From our study we have found out that 56 males and 38 females are using E-
banking services. The males have more knowledge about transactions and the
services provided by the banks as compared to the females.
Most of the respondents who lies under the age of 21- 30 are using E-
banking services as near about 80 respondents are using these services
because youngsters are keen towards adapting new technologies and
always want things to be done quick and fast.
We see that customers prefer SBI then HDFC and then Axis as top three
banks for e- services followed by other banks such as PNB, BOB etc. Major
respondents find it secure and also we see that major transaction take place
either daily, once a week or else once in a month.
E-banking constitutes services provided in terms of ATMs, Debit Card, Credit
Card, Mobile Banking, Internet Banking, others etc., of which the first six
have been covered. Amongst these 52% prefer online, internet, debit and
credit cards together. The frequency of Debit/Credit cards and mobile
banking is less as compared to the other services.
A study of the factors, taken into consideration for checking the importance
of e-banking services are better information, simplification of process,
24hours service, limited time available etc., and amongst the above factor’s
simplification of process and 24 hours’ service are ranked at the top followed
by limited time available and better information.
When asked to list various benefits accruing from the usage of e-banking,
timesaving received highest percentage score at (61.7%) among different
benefits easy fund transfer (23.4%), easy processing at (13.8%) and finally
inexpensive at the lowest. Quite interestingly, easy processing feature
scored more than the inexpensiveness of the e-banking services. The other
benefits accruing to the people include ready availability of funds, removal of
middlemen and no rude customer relation executives.
From the non-users, an attempt was made to elicit the reasons for its non-
usage. most important factors which have been considered by customers who
are not using e banking services are no access to internet, or slow internet

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connection, difficult to understand, a bit unsafe mobile then hidden cost factor,
sometime server problems.

CONCLUSION:
This study attempted to identify key quality attributes of internet banking services by
analysing internet banking customers & their comments on banking experience. The
findings of this study show that despite of many advantages of online banking.
People still consider it as an alternative for analysing their bank records. Although
every bank today provides the facility of online banking but many people use it only
once a month. This reason is that in case of internet banking interpersonal interaction
with customers is seldom possible. Identification & measurement of customer ‘s
expectations of the internet banking services provide a frame of reference & them
relate the quality dimension. The main factors which persuade people to use online
banking are comfort & convenience & the facility which attracts them most is quality
& quantity of information. Therefore, the implementation of quality initiatives should
begin with defining customer ‘s need & preferences & their related quality dimensions
There is still a lot needed for the banking system to make reforms and train their
customers for using internet for their banking account. Going through the survey the
main problem lies that still customer face slow internet connections and have
difficulty in understanding the process. Banks are trying their level best by providing
the best security options and making the process easier for the customers but then
to there is lot of factors which betrays a customer from opening an internet bank
account.

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QUESTIONNAIRE

Full Name

Contact Number

Email Address

Gender: Age:

1. ) Do you think E-Banking is useful?

A. Yes

B. No

2. ) Is Internet Banking more convenient than Physical Banking?

A. Strongly Agree

B. Agree

C. Neutral

D. Disagree

E. Strongly Disagree

3. ) Which bank do you prefer?

A. HDFC D. BOI
B. SBI E. Others:
C. AXIS

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4. ) Why is E-Banking important?

A. Better Information

B. Simplification of processes

C. 24 Hr. service

D. Limited time available

5. ) Which of the following benefits do you get while using E-Banking?

A. Time Saving

B. Inexpensive

C. Easy Processing

D. Easy Fund Transfer

6. ) What problems do you usually face while using E-Banking Services?

A. Slow Internet Connectivity

B. Complex Process

C. Difficult to understand

D. Others

7.) Which of the following E-Banking services are you aware of?
A. Internet Banking
B. Mobile Banking
C. Online Banking
D. Debit/Credit Cards

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8.) Frequency of transactions?
A. Once in a month
B. Once in a week

C. Daily

D. Others:

9.) Do you think transactions through internet are secure?

A. Yes
B. No

10.) How satisfied are you with your Bank’s E-Banking services?
A. Highly Satisfied
B. Satisfied
C. Neutral
D. Dissatisfied

Bibliography:
https://www.academia.edu/30249111/Customer_Satisfaction_of_Online_B
anking_in_SBI_and_ICICI_A_Comparative_Study_in_Pune_City
http://www.ijesrt.com/issues%20pdf%20file/Archive-2017/March-
2017/40.pdf

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