A PRESENTATION FOR PRE-PHD VIVA ON TOPIC OF

“A STUDY ON CUSTOMER SATISFACTION OF E-BANKING

SERVICES IN SELECTED PRIVATE SECTOR BANKS IN GUJARAT.”
FOR DEGREE OF DOCTOR OF PHILOSOPHY

PRESENTED BY Under the Supervision of

MAHIDA AJAYKUMAR PROF. (DR.) SANDIP K BHATT
DILIPSINH
Registration Number: 1296 dated P.G. DEPARTMENT OF
07/04/2016 BUSINESS STUDIES

SARDAR PATEL UNIVERSITY

GAPS IN THE LITERATURE
• There are very few researches on E-banking services in private sector banks
in Gujarat. It is also observed that there are hardly few researches on E-
banking services either at global level or at national level. It is also observed
from the previous studies / researches that there is a constant literature gap
on E-banking services in India. The studies and / or researches are on the E-
banking services in all the public sector banks and / or all the private sector
banks in India as well as in the Gujarat. There are meagre researches /
reviews available pertaining to the E-banking services in respect of foreign
banks at national level but not in Gujarat. There is a significant number of
literature reviews on the customer satisfaction in the Indian banks at national
and international level but, the combined researches or reviews on the E-
banking services and customer satisfaction is not available in the Gujarat.
SCOPE OF STUDY
• According to the observations from the literature review, the
present study is confined to the various selected factors
associated with the influence of E-banking and their influence
on customers in deciding their level of satisfaction on E-
banking services.
• The present study is on measuring study on customer
Satisfaction of E-Banking Services in selected private sector
banks in Gujarat. The E-banking services taken for present
study are only ATM, IB and MB services. The customers of all
5 private sector banks have been taken for present study.
 OBJECTIVES OF THE STUDY
• 1. To study the profile of bank’s customers, their awareness level on Core Banking
Systems, ATMs, Internet Banking and Mobile Banking services and their banking habits
towards ATMs, Internet Banking and Mobile Banking Services.

• 2. To analyse the level of satisfaction of customers in ATM services.

• 3. To analyse the level of satisfaction of customers in Internet Banking services.

• 4. To analyse the level of satisfaction of customers in Mobile Banking services.

• 5. To examine the influence of demographic variables on the level of satisfaction on ATMs,

Internet Banking and Mobile Banking services.
HYPOTHESIS
• In order to achieve a sharp pinning down of the research problems and
objectives, the following hypothesis were formulated.
• 1. There is no association between ‘the banking habits of customers’ and ‘the level of
satisfaction of ATM services’.
• 2. There is no association between ‘the awareness level of customers’ and ‘the level
of satisfaction of ATM services’.
• 3. There is no association between ‘the banking habits of customers’ and ‘the level of
satisfaction of Internet banking services’.
HYPOTHESIS
•
4 . There is no association between ‘the awareness level of customers’ and ‘the level of
satisfaction of Internet banking services’.
• 5. There is no association between ‘the banking habits of customers’ and ‘the level of
satisfaction of Mobile banking services’.
• 6. There is no association between ‘the awareness level of customers’ and ‘the level of
satisfaction of Mobile banking services’.
• 7. There is no significant influence of demographic variables of customers on
satisfaction level of E-banking services.
RESEARCH METHODOLOGY

Research Design
•The research design is empirical in nature. Since the study is
conducted using both analytical and diagnostic type of research. The
study is conducted in two-stage format, with a preliminary pilot study
followed by the main study. The major part of the study is based on
primary data.
Study Area

• The Gujarat state has been chosen for the purpose of study because of
the following reasons:
• Gujarat state is a major commercial, cultural, economic and educational
center in West India. It is also known as the "Cultural Capital of West India.
The state has been termed as ‘India's wealth capital. Gujarat has a diversified
economic broad base anchored by the automobile, software services,
hardware manufacturing, computer, technology, health care and financial
services industries. As of 2019, the state is India's one of the larger exporter
of various products and technologies. A major part of India's automobile
industry is also now in the state.
Sources of Data

•Primary data have been collected from the customers of the 5

private sector banks having their existence in the Gujarat state.
Secondary data is collected from various published and unpublished
sources including Journals, Magazines, Publications, Reports, Books,
Dailies, Periodicals, Articles, Research papers, Bank publications,
Manuals and Booklets, Websites, E-books and E-articles.
Sampling Technique

Proportionate convenient sampling method is adopted to collect the primary data.

The respondents for the purpose of the study are selected on proportionate
convenient sampling basis. In this research, the researcher deals with 3 types of E-
banking services namely ATM, IB and MB services. It is important to get the
responses from the customers who are all well acquainted with all the 3 services.
Since, Gujarat consists of several branches of different banks, the researcher
adopted proportionate convenient sampling process based on the random private
bank branches in Gujarat.
Sample frame
•The customers of the selected private sector banks existing in
Gujarat have been taken into consideration for the purpose of study.
Sample size

•All the 5 private sector banks were chosen for the purpose of
study. Totally number of questionnaires distributed was 1600. The
number of questionnaires returned was 1550 and the number of
questionnaires found usable was 1500. Hence, the exact sample size is
1500.
Scale Development
• This study employs three different scales in its measurement of the influence of
E-banking on customer satisfaction in the Indian banking sector. Each scale has its
own range and options. The scales are of Likert’s five point scale, bipolar scale
(yes / no type) and objective type scale.

• The questionnaire used both optional type and statements in Likert’s five points
scale. The responses of these sections were obtained in the five point scale from the
customers in Gujarat. This five point scale ranges as 5– Highly Satisfied, 4-
Satisfied, 3 – Neutral, 2 – Dissatisfied and 1- Highly Dissatisfied.
 •This allowed for the standardization of results as well as making it easier for
respondents to complete the questionnaire. The author and supervisor discussed
the Likert’s five point scale and decided to assign the numerical value 3 for
undecided or neutral. By referring to several approaches in statistics, it was
decided to assign 3 to neutral. Undecided had a connotation that, the statements in
the questionnaire do not have proximity to the respondents. But neutral implies
that they are well acquainted with the statements in the questionnaire but they
want to remain equidistant from the two extremities of satisfied and dissatisfied.
This would not affect the high Cronbach’s value.
 •Percentage analysis
Data Analysis •Factor analysis

•The •Cluster analysis

primary data collected were
analysed using Statistical Package for Social •t- test
Sciences (SPSS V- 15) computer packages.
•Parametric chi-square analysis
The following statistical tools have been
employed in the study to obtain torrent of •Non-parametric chi-square analysis
results from the primary data analysis.
•One way analysis of variance (ANOVA)

•Karl pearson’s co-efficient of correlation

Percentage analysis

•Percentage Analysis has been applied to determine the

contribution of variables in both bi-polar and objective typed
questions present in the questionnaire.
 RESEARCH OUTCOME
Findings Pertaining to Objective 1: 1. To study the profile of bank’s customers, their awareness
level on Core Banking Systems, ATMs, Internet Banking and Mobile Banking services and their
banking habits towards ATMs, Internet Banking and Mobile Banking Services

Age Group
Demographic profile analysis

• The maximum of 35.9% of 6%

customers lying in the age group 25% 0-20

21-40

21 – 40 followed by 32.6% in the

41-60
33% Above 60

age group 41 – 60, 25.2% in the

age group upto 20 and minimum 36%

of 6.3% in the age group above

60.
GENDER GROUP

It is also found that

64.5% of the 64.5% Male
customers are Group
belonging to male
group and 35.5% of
the customers are 35.5% Female
belonging to female Group
group
 Married

Unmarried
Customers

Customers
63.1% 36.9%

The married customers and unmarried customers are 63.1% and

36.9% respectively are respondents in this study to decide the
influence of E-banking services on their satisfaction
EDUCATION
LEVEL

The graduates constitute

a maximum of 36.8% of the Graduates
School
Level
36.8%
sample unit followed by 36.7%

school level, post-graduate

Post Above Post
and above post-graduate of Graduate graduate
21.2% 5.3%

36.7%, 21.2% and 5.3%

respectively.
BANKING
EXPERIENCE

It is found that the 34.3%

of sample unit has the
Above 6-10
banking experience of 20 Years Years -
above 20 years. The - 34.3% 26.3%
customers whose banking
experience is between 6 –
10 years, between 11 – 20 11-20 Upto 5
years and Upto 5 years Years - Years -
constitute 26.3%, 20% 20% 19.4%
and 19.4% of sample unit
respectively.
Findings Pertaining to Objective 2: To analyse the level of
satisfaction of customers in ATM services.

- Consistency of variables, reduction of factors and classification of customers regarding ATM services
Accessibility & Service Efficiency.

- User-Friendly and Safety & Privacy.

- Association between ‘the awareness of customers on CBS’ and ‘their level of satisfaction in ATM services’.

- Association between ‘the banking habits of customers’ and ‘their level of satisfaction in ATM services’.

- Association between ‘the Awareness of Customers’ and ‘their Level of Satisfaction in ATM Services’.

- Association between ‘different demographic variables of customers’ and ‘their satisfaction level on ATM
services’.
Findings Pertaining to Objective 3: To analyse the level of
satisfaction of customers in Internet Banking services.

- Consistency of variables, reduction of factors and classification of customers regarding Internet Banking services.

- Convenient Accessibility and Real Time Service Efficiency.

- User Friendly & Advantageous Benefits and Safety & Trustworthy.

- Association between ‘the awareness of customers on CBS’ and ‘their level of satisfaction in Internet Banking
services’.

- Association between ‘the banking habits of customers’ and ‘their level of satisfaction in Internet Banking services’.

- Association between ‘the awareness of customers’ and ‘their level of satisfaction in Internet Banking services’.

- Association between ‘different demographic variables of customers’ and ‘their satisfaction levels on Internet
Banking Services’.
Findings Pertaining to Objective 4: To analyse the level of
satisfaction of customers in Mobile Banking services.

- Consistency of variables, reduction of factors and classification of customers regarding MB services.

- Instantaneous Accessibility and Any Moment Service.

- Potential Benefits & Multiple Options and Safety and Less Risk.

- Association between ‘the awareness of customers on E-banking and ‘their level of satisfaction in MB services’.

- Association between ‘the banking habits of customers’ and ‘their level of satisfaction in MB services’.

- Association between ‘the awareness of customers’ and ‘their level of satisfaction in MB services’.

- Association between ‘different demographic variables of customers’ and ‘their satisfaction levels on MB
services’.
Findings Pertaining to Objective 5: To examine the influence of demographic variables

on the level of satisfaction on ATMs, Internet Banking and Mobile Banking services.

- Customers are not habbituate with the online transcations

- Customers are not ready to pay additional charges to avail the online services

- Customers are afraid of the online thefts

- Illitrate customers dont prefer the online services due to lack of knowledge

- Some customers dont have facility to access the online services

LIMITATIONS OF THE STUDY
 This study has been conducted in the Gujarat only and hence, the findings of this study
may not be applicable for the entire country. Therefore, a care has to be exercised in
extending the result to other areas and other products.
 The data collected is primary data which is based on questionnaires and hence, the results
would bear all the limitations of the primary data.
 The data were collected from those customers who are availing the E-banking services of
selected private sector banks and resident of the Gujarat state.
 The number of respondents was relatively small. i.e. Only 1500.
 The study has been confined to only ATM, IB and MB services and hence, the findings
may not be applicable to other type of E banking services.
SUGGESTIONS
- Use of Global Advanced Technology Needed

- Feasible Suggestions to be Implemented Immediately

- Unbanked and Under Banked Population to be Brought in the Sphere of Banked Population

- Bright Scope for Huge Customer Base in Future – Good Opportunity for Banks

- Needs and Expectations of the Customers of all Demographic Profile to be fulfilled –Special
Initiatives Required

- Customers to be Made to Avail Technology Based E-banking Services – Education and

Encouragement are Must
SUGGESTIONS
- Quick and Fruitful Actions to find out Solutions to Complaints – Special Focus to be Given

- Benefits of E-banking Services to be Realised by the Customers – Motivation Must

- Increase of Awareness on E-banking Services to be Focused

- Safety and Security Aspects in E-banking Services to be Reassured

- Customers to be Encouraged to Avail Continuous Benefits of E-banking Services – Needed

- Service Quality to be Improved – Advanced Technology Based Measures are Must

SCOPE FOR FURTHER RESEARCH
• Studies on awareness level on banking services including the E-banking services in rural, semi-
urban and urban areas may be conducted. Study of customer satisfaction level may be conducted
in respect of various types of transactions that they were made.
• Study on customer satisfaction level on banking services including E-banking services in rural,
semi-urban and urban areas may be conducted.
• Study on E-banking services provided by foreign banks in India and their customer satisfaction
level may be conducted.
• Study on comparison on the service quality of E-banking services offered by any two or more
types of banks among the banks in the Indian banking system may be conducted.
• Study on comparison on the customer satisfaction level of E-banking services offered by any two
or more types of banks among the banks in the Indian banking system may be conducted.
• Security is the prime concern among customers. So, study on safety and security measures
prevailing in E-banking services may be conducted. Study on customer grievances in banking
system may also be conducted.
CONCLUSIONS
• Technology, People and Customers are the three tripods on which the banking
industry rests. All customers are not the same and so is their knowledge on
consumerism. Indian banking industry is one of the largest industry in the world
and has been great surge in efficient customer services. Satisfied customers are the
important key factors and are a basic assumption for long-lasting success
concerning (online) business.
• Therefore, this is time for PSBs and PRSBs in India to look at the changed
banking environment afresh and understand the designs and intentions of the
technology banking in order to formulate suitable strategies to meet the current
situation. There is a need of constant innovation in retail banking. Thus, the banks
which are acknowledging the customer needs, in designing and delivering services
with technical superiority undoubtedly will get success.
CHAPTERISATION

• Chapter 1 Introduction
• Chapter 2 Review of Related Literature
• Chapter 3 ATM, Internet Banking and Mobile Banking Services – An Overview
• Chapter 4 Analysis and Discussion on Demographic Profile of Customers and
Awareness Level of Customers on the Core Banking System
• Chapter 5 Analysis and Discussion on Awareness Level, Banking Habits and
Satisfaction Level of Customers
• Chapter 6 Summary of Findings, Suggestions and Conclusions
THANK YOU