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Study on Customers’ Satisfaction on Mobile Banking Services

Article  in  International Journal of Current Microbiology and Applied Sciences · August 2020

DOI: 10.20546/ijcmas.2020.908.155

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 Int.J.Curr.Microbiol.App.Sci (2020) 9(8): 1366-1372

International Journal of Current Microbiology and Applied Sciences

ISSN: 2319-7706 Volume 9 Number 8 (2020)
Journal homepage: http://www.ijcmas.com

Original Research Article https://doi.org/10.20546/ijcmas.2020.908.155

Study on Customers’ Satisfaction on Mobile Banking Services

S. Loganathan1, P. Balaji2*, K. R. Ashok2 and S. Parameshwari2

1
ODL, TNAU, Coimbatore-03, India
2
Department. of Agriculture and Rural Management, CARDS, TNAU, Coimbatore, India

*Corresponding author

ABSTRACT

Keywords
In 2019, 503 Public and Private Banks' customers are availing mobile banking services,
Mobile banking irrespective of the mobile networks (RBI,2019).Mobile phone is a banking tool that
service, Customer consumers use for banking, payments, budgeting, shopping, etc. Today, banking industry
satisfaction, focuses on internet technology which provides branchless banking services to the
Anywhere Anytime customers. This study was conducted in order to analyze the customer satisfaction of
Banking mobile banking services in Tamil Nadu. A questionnaire was developed and then
distributed to customers of major mobile banking service providers in Tamil Nadu.
Article Info Primary data were collected using Google form through online method, from 67
Accepted:
respondents, who are all account holder of public and private banks. The results show that
15 July 2020 majority of the respondents have 'extremely satisfied'/ 'satisfied' and opined the positive
Available Online: usage of mobile banking services provided by public and private banks in Tamil Nadu
10 August 2020 State.

Introduction landscape. In order to meet customer

expectations, banks compete with each other
The spread of mobile technology across the to have using new and innovative services to
globe is one of the most remarkable ensure a competitive edge (Shi and Lee
achievements in the last decades. 2008). Presently, the internet technology has
Advancements in mobile technology have brought a third revolution to this world-that
revolutionized almost every facet of society, is, mobile banking. The banking sector has
from information to education, granting been upgrading their services with the use of
enhanced access to an ever-growing number technology from time to time like introducing
of people. The changes have been catalysed the ATM (Automatic Teller Machine), which
by technological advancements, global took more than a decade to get popular while
commerce, competitiveness and customer the phone and net banking took half as much
demands can be stated as the important as the ATM. Mobile banking, on the other
factors. As a result, banking services have hand, is the third era in technology of banking
quickly developed to adopt new delivery sector, after phone and net banking;
means to adapt to the changing commercial comparatively, its growth was phenomenal

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when compared to the first two eras. With the objective of the study is to examine the
adoption of mobile banking services, the customer satisfaction of mobile banking users
banking sector is having a tremendous growth in Tamil Nadu. The study will help to
across the globe including India. Today, examines mobile banking technologies,
mobile banking often performed via SMS or impact of mobile banking technologies and
the mobile internet but also using special understand the purpose of using mobile
programs that clients download to their banking service by measuring the level of
mobile device. Some of the significant user satisfaction. In this context, the purpose
reasons that compel financial firms to provide of this study is to find out the satisfaction
mobile banking services are: it is appealing to level of the mobile banking users with special
customers, reduces costs per transactions, reference to Tamil Nadu has been undertaken.
gaining revenue from service fees, enabling
new service channels, and supporting future Mobile banking (also known as M-Banking,
customers (Huili and Chunfang 2011). m-banking, SMS Banking) is an application
of mobile commerce which enables customers
The main reason why mobile banking scores to access bank accounts through mobile
over internet or phone banking is because it devices such as a mobile phone or Personal
enables 'Anywhere Anytime Banking'. Digital Assistant (PDA) to conduct and
Customers don't need access to a computer complete bank-related transactions such as
terminal to access their bank accounts, now checking account status, transferring money,
they can do so while on-the-go when waiting balancing cheques and selling stocks (Kim, et.
for the bus, travelling or when they are al., 2009; Tiwari and Buse, 2007). Mobile
waiting for their orders to come through in a Banking can perform various functions like
restaurant. Practically, mobile banking mini statement, checking of account history,
removes space and time limitations from SMS alerts, access to card statement, balance
banking activities. India, mobile banking check, mobile recharge etc. via mobile phones
service is a new theme and there is a strong (Vinayagamoorthy and Sankar, 2012). The
need to analyse the critical aspects of this use of mobile phones has facilitated the
service. Public and private banks in this expansion of markets, social business, and
country are exploring this avenue to make public services in both developing and
their services more convenient for their developed countries (Spence and Smith,
customers. Hence, mobile banking service 2010).
quality level and its effect on customer
satisfaction is a crucial matter to investigate. The high penetration of mobile phones across
Therefore, it is essential to analyze basic the strata of society makes it a natural tool for
structure of mobile banking services offered taking electronic banking to its next level. It is
by the banks, their evaluation of performance more than likely that Internet banking and
and customer satisfaction towards mobile mobile banking would exist as allies rather
banking services in Tamil Nadu State. than competitors for each other. Mobile
banking also allows customers to perform
In the current competitive world, banks have banking transactions 24 hours a day, 7 days a
to struggle their might to offer the best of the week, and 365 days a year (Eckhardt et al.,
customer satisfaction through various 2009). Banks can utilize the time saved by the
innovative strategies in order to survive in the channel migration of customers to mobile
industry. This study would stand as a sincere banking for expansion of business through
attempt to evaluate customer satisfaction of better marketing and sales activities.
mobile banking services in Tamil Nadu. The
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Materials and Methods followed by others. Monthly Income of the

respondents shows that 47.80% of the
A sample size of 67 respondents from mobile respondents belong to the monthly income of
banking users were collected through online, below Rs. 10000/- and 17.90% of the
covering entire Tamil Nadu. A proposed respondents belong to the monthly income of
sampling method was used to consciously Rs. 10, 001 to Rs. 20, 000 followed by others.
selected customers who meet the criteria of
having used mobile banking services for more Bank details of the respondents
than a years. The primary data were collected
from July to September 2019. Descriptive From Table 2, it is clearly indicated that
statistics by percentages, figures and tables 47.70% of the respondents have their
were generated from the software to establish accounts in other banks, whereas 35.80% of
relationship among variables. Descriptive the respondents have in SBI Bank followed
statistics allow the researchers to present the by others.
data acquired in a structured, accurate and
summarized manner. The analysis of data was Mobile devices used to down load mobile
done with the help of the statistical software banking app
of Statistical Package for Social Sciences
(Version 20). The relevant information was It can be referred from Table 3 that 95.50% of
obtained in a standard form using tables, the respondents have downloaded the mobile
frequencies and percentages to analyze and banking app on their Android Mobile phone
interpret the information. and about 4.50% of the respondents have
downloaded the Mobile banking app on their
Results and Discussion Iphone. It can be inferred that Android
Mobile phone is preferred by majority of the
Table 1 show that a slightly more than half of respondents, when compared Android Mobile
the respondents are female 52.20%, which Phone.
compared to the number of male 47.80%.
This implies that there is a fair distribution Respondents' customer satisfaction of
among respondents. seven categories, the mobile banking services
customers from the age group of 18-25 years
are the majority respondents for this study a This section outlines the findings on customer
response rate of 68.50%, and 7.50% who satisfaction of mobile banking services
belong to the age group of 26-30 years
followed by others and majority of the From the table 4, Balance checking were
respondents 50.80% are studied the UG 92.50% of the respondents are either
Level. 'extremely satisfied' or 'satisfied' with
checking account and 7.50% of the
Marital Status of the respondents shows that respondents are 'neutral'. Alert through SMS
73.10% of the respondents are fall under the for balance 88.00% of the respondents are
unmarried status and the remaining 26.90% 'extremely satisfied/ 'satisfied', followed by
belong to the married status. Current 9.00% of the respondents who are 'neutral'
occupation of the respondents shows 55.20% and 3.00% of the respondents are 'dissatisfied'
of the respondents are students, while 23.90% with the SMS alert.
of the respondents are from the Private sector

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Table.1 Demographic characteristic of respondents

Sl. No Particulars No of Respondents Percentage (%)

1. Gender
a) Male 32 47.80
b) Female 35 52.20
Total 67 100.00
2. AGE
a) 18-25 Years 46 68.50
b) 26-30 Years 5 7.50
c) 31-35 Years 4 6.00
d) 36-40 Years 4 6.00
e) 41-50 Years 4 6.00
f) 51-60 Years 3 4.50
g) Above 61 Years 1 1.50
Total 67 100.00
3. Educational Qualification
a) UG level 34 50.80
b) PG level 30 44.80
c) Professional 3 4.40
Total 67 100.00
4. Marital status
a) Married 18 26.90
b) Unmarried 49 73.10
Total 67 100.00
5. Current Occupation
a) Government Employee 7 10.40
b) Private Employee 16 23.90
c) Entrepreneur 1 1.50
d) Profession 3 4.50
e) Housewife 3 4.50
f) Student 37 55.20
Total 67 100.00
6. Monthly Income
a) Up to Rs. 10,000 32 47.80
b) Rs. 10,001 to Rs.20,000 12 17.90
c) Rs. 20,001 to Rs. 30,000 10 14.90
d) Rs. 30,001 to Rs. 40,000 4 6.00
e) Rs. 40,001 to Rs. 50,000 3 4.40
f) Rs. 50,001 and Above 6 9.00
Total 67 100.00
Source: Primary data collected through questionnaire, 2019

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Table.2 Bank details of the respondents

Sl. Bank details of No. of Percentage

No. the respondents Respondents
1 SBI Bank 24 35.80
2 ICICI Bank 2 3.00
3 HDFC Bank 6 9.00
4 Axis Bank 3 4.50
5 Other Bank 32 47.70
Total 67 100.00

Table.3 Mobile devices used to down load mobile banking app

Sl. Mobile devices used to down load No. of Percentage

No. mobile banking app Respondents
1 Android Mobile Phone 64 95.50
2 I phone 3 4.50
Total 67 100.00

Table.4 Mean, S.D., Frequency and Percentage of the Items in the Satisfaction Scale of Mobil
Banking Services (n=67)

Items Satisfaction of Mobile Banking Services

Mean S.D. D N S ES
(%) (%) (%) (%) (%)
1. Basis of balance checking in the account. 4.25 (0.58) 0 5 40 22
(7.50) (59.70) (32.80)
2. Basis of alert through SMS for balance. 4.17 (0.71) 2 6 37 22
(3.00) (9.00) (55.20) (32.80)
3. Basis of PIN provision, change of PIN, blocking of 4.11 (0.76) 2 10 33 22
Card (3.00) (14.90) (49.30) (32.80)
4. Basis of transport or movie ticket 4.08 (0.71) 1 11 36 19
(1.50) (16.40) (53.70) (28.40)
5. Basis of mobile of DTH 4.07 (0.72) 1 12 35 19
Recharging (1.50) (17.90) (52.20) (28.40)
6. Basis of bill payment processing 4.05 (0.71) 2 9 39 17
(3.00) (13.40) (58.20) (25.40)
7. Basis of status on 24 hours age Facilities 4.04 (0.84) 4 10 32 21
(6.00) (14.90) (47.80) (31.30)
8. Basis of checking account history 4.01 (0.70) 1 13 37 16
(1.50) (19.40) (55.20) (23.90)
9. Basis of status on deposit at 3.77 (0.67) 0 24 34 9
Banking Agent (35.80) (50.80) (13.40)
10. Basis of status on withdrawal at Banking 3.68 (0.76) 3 24 31 9
(4.50) (35.80) (46.30) (13.40)
Total 3.85 (0.47)

Note: Figures in the Parentheses indicates Percentages

D= Dissatisfied, N = Neutral, S=Satisfied, ES = Extremely Satisfied

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It can be inferred that majority of the most of the respondents 79.10% are
respondents 88.00% are 'extremely satisfied'/ 'extremely satisfied' / 'satisfied' with "24
'satisfied' by getting 'alert through SMS for Hours usage facility". Checking account
balance. Every mobile bank app is equipped history 79.10% of the respondents 'extremely
to accommodate these requests such as PIN satisfied' or 'satisfied' with checking account
provision, Change of PIN and Blocking of history using mobile banking services,
cards in that 82.1% of the respondents are 19.40% of the respondents feel 'neutral' and
extremely satisfied'/'satisfied' with using the rest of the respondents 1.50% are
mobile banking services, 14.90% of the 'dissatisfied'. Status on deposit at banking
respondents are 'neutral' and 3.00% of the agent, it can be observed that 64.20% of the
respondents are 'dissatisfied'. Transport or respondents are 'extremely satisfied' /
Movie ticket booking ware 82.1% of the 'satisfied' with using mobile banking services,
respondents are extremely satisfied'/'satisfied' followed by 35.80% of the respondents who
with "Transport or Movie ticket booking" by are 'neutral'. There are no respondents in
using mobile banking services, 16.40% of the 'dissatisfied' about this service. Withdrawal
respondents are 'neutral' and 1.50% of the and Deposit at banking agent shows that
respondents are 'dissatisfied'. No respondent 59.70% of the respondents are 'either
is 'extremely dissatisfied'. Recharge refers to extremely satisfied' or 'satisfied', followed by
usage of services after prior payment for a 35.80%oftherespondentswhoare"neutral"and
service, for example recharge of Prepaid 4.50%oftherespondentsare 'dissatisfied' with
mobile phone number and DTH (Direct to the service of withdrawal at banking agent. It
home) set top box connection (TV can be inferred that majority of the
subscription Recharging) are commonly respondents 59.70% of the respondents are
recharged by the customers. it can be 'either extremely satisfied' or 'satisfied'.
observed that 80.60% of the respondents are
'extremely satisfied' / 'satisfied' with using Public and private banks should make in-
mobile banking services, followed by 17.90 depth communication with their customers so
% of the respondents who are 'neutral'. Very that they can learn about the expectation of
few respondents 1.50% are 'dissatisfied' about customers regarding the service quality
this service. In Bill payment processing most dimensions. The survey should be made every
of the respondents 83.60% are either year on customer satisfaction for making
'extremely satisfied' or 'satisfied' with "PIN yearly comparison on service improvement
provision, followed by 13.40% of the and also analyzing the effect of this
respondents who are 'neutral' and only 3.00% improvement on customer’s perception and
of the respondents are 'dissatisfied'. It can be satisfaction. Public and private banks should
inferred that majority of the respondents educate, persuade and train mobile banking
83.60%are 'extremely satisfied' /'satisfied'. 24 service agents to deal effectively with
Hours usage facility found that 79.10% of the customers and solving their problems. The
respondents are 'extremely satisfied' / transaction must be secured and if any
'satisfied' with "24 Hours usage facility" of problem occurs then, it should be resolved as
mobile banking service, 14.90% of the soon as possible.
respondents are 'dissatisfied' with "24 Hours
usage facility" of mobile banking service. In conclusion the current study focused on
6.00% respondent is found 'extremely customer satisfaction of mobile banking
dissatisfied' with this service through the services. From the above analysis, majority of
mobile banking app. It can be inferred that the respondents are extremely satisfied /

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How to cite this article:

Loganathan, S., P. Balaji, K. R. Ashok and Parameshwari, S. 2020. Study on Customers’

Satisfaction on Mobile Banking Services Int.J.Curr.Microbiol.App.Sci. 9(08): 1366-1372.
doi: https://doi.org/10.20546/ijcmas.2020.908.155

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