Study on E-Banking Services Offered by Banks with Special Reference to Peruvallur Panchayath, Malappuram Dr

Research Article Volume 10 Issue No.5 Study on E-Banking Services Offered by Banks with Special Reference to Peruvallur Panchayath, Malappuram Dr. Edakkotte Shaji1, Dr. Dhanya Babu. V2 Associate Professor Vice Principal & Head of Post Graduate1, Assistant Professor2 Department of Commerce1, Department of Commerce & Management2 Government Arts and Science College, Calicut, India1 Malabar College of Advanced Studies, Vengar, India2

Abstract: Banks operate in a highly globalized, liberalized, privatized and a competitive environment. Banks use information technology for surviving in this dynamic environment. Today the banking sector faces a huge challenges in providing services to the customers and with the advent of technology banks enables the customers to avail services either from homes and offices, 24 hours a day and 365 days a year through E-banking. E-banking is electronic banking and it refers to the use of electronic devices that facilitate banking transactions. The use of technology which allows customers to access banking services electronically whether it is to pay bills, transfer funds, view accounts or to obtain information and advices. The different type of devices used for E-banking include; smart phones, tablets, computers, ATM’s, POS machines and other devices that are coming up every day. E-banking activity is considered as a the common trend in our country. Gone the days of falling in line in banks, waiting tons of hours, days and weeks . All can be done with one card, one gadget. But still people are having a hard time using it, as they are used to doing things in the old traditional way, people who are illiterate about E-banking and people who don’t have access to E-banking devices and technology. Through advertising, people are now motivated to use E-banking as it eliminates the hassle encountered when using the old process of banking. The concept and scope of E-banking is still evolving. The development in Banking sector offers a higher level of convenience for managing one’s finances. However, it continues to be present challenges to the financial security and personal privacy. The present paper is designed to explore to evaluate the adoption of electronic banking functionality and study the perception of the customers regarding the E-Banking services offered.

I. INTRODUCTION and fast manner without any paper money. It also provides an opportunity to move collections to an electronic platform.

E-banking is gaining in popularity as an important distribution Automated Teller Machine channel to provide banking services and is an inevitable Known as ATM’s can be seen in every nook and corner of a development in the information age, sound and effective place provides the function of balance enquiries, cash banking system is the backbone of an Economy. The Economy withdrawals, and many other facilities depending upon the of a country can function smoothly and without many hassles policy of the bank. only if the banking system backing it is not only flexible but also capable of meeting the new challenges and opportunities Debit Card posed by the technology and other internal as well as external Debit cards are another advanced E-banking technology. It is a factors. The importance and role of information technology for plastic card which provides the cardholder electronic access to achieving this benign objective cannot be undermined. There is his or her bank account at the financial institutions. Cash an urgent need for not only technology up gradation but also its withdrawal or can be used for easy shopping at various counters. integration with the general way of functioning of banks to give them an edge in respect of services provided to the customers. Credit Card The earlier brick and monarch branch is no longer sufficient; Credit cards a small plastic card issued to users as a system of technology is now taking banks to the homes or offices, 24 payment. provide credit to the customers.., extra charges or interest will be charged if the money borrowed is not paid back hours a day and 365 days a year through ATM’s, phone booking within the grace period of 25-30 days and PC banking. Technology has emerged as a source of achieving higher efficiency, control of operations, productivity Charge Card and profitability for banks as well as it is the realization of their It is a means of obtaining a very short loan for purchases 'anywhere, anytime, anyway, banking dream for customers (usually one month). The balance on a charge card account is payable in full and cannot be rolled over from one billing cycle II. VARIOUS FORMS OF E BANKING INFORMATION to the next. TECHNOLOGY Smart Card Electronic Fund Transfer For storing and retrieving personal information a smart card is Electronic fund transfer commonly known as EFT offers fast used. Contains electronic money and possibly an embedded payments to account holders of other banks in a very efficient integrated circuit.

IJESC, May 2020 25542 http:// ijesc.org/ Real Time Gross Settlement (RTGS) • Loss of heavy incomes at times of settlement of higher Real Time Gross Settlement, RTGS is typically used for high magnitude. value transactions, generally above two Lakhs. not subject to any waiting period, the transaction are being settled as soon as Statement of the problem they are processed. Immediate Payment System (IMPS) The development of technology is uplifting the functioning and services of banking sector. The banking industry are being Instant Money Transfer (IMT) forced to change rapidly as a result of open market forces such IMT is an innovative card-less cash withdrawal service. It is a as competition, consumer demand, and technological domestic money remittance service that allows to send money to innovations such as internet banking. In order to retain their anybody with a mobile phone. competitiveness, they must focus on consumer retention. The increasing consumer involvement, banks have to constantly Internet Banking think of innovative customized services to remain competitive. On line banking which is commonly known as internet banking This present study focus on perception of rural customers or web banking Internet banking is the most convenient way to regarding E-banking services in a fast-developing village: do banking with ease and comfort. Peruvallur in Malappuram district.

Tele banking Significance of the study By dialling the given Tele banking number through a landline or In India in the recent times most of the banks are providing E- a mobile from anywhere, the customer can access his account banking services but many people hesitate to use E-banking and by following the user-friendly menu, entire banking can be services due to lack of knowledge. By understanding and done through Interactive Voice Response (IVR) system. knowing the E-banking habits among the rural customers, banks can adopt new techniques to improve the outreach of rural E-cheque population in gaining access to E-banking and enable them to It is the electronic version or representation of paper cheque. use this facility with less difficulty in times of emergency or need and to encourage them to access E-banking for a hassle- Immediate payment system free life and thereby increasing transparency in transactions, IMPS Is an instant payment electronic fund transfer system , taking into consideration the above this study is being attempted. facilitating transfer of fund through Mobile phones Objectives of the study Advantages of E-banking • To study the Perception of rural customers residing in E-banking has several advantages over traditional banking Peruvallur Panchayath, Malappuram towards E-banking activities • To study the customer satisfaction while availing the facility Online account is simple to open and easy to operate. There is of E-banking. less chance of error • Helps in quick payment of bills, transfer funds between Scope of the study accounts, etc. The present study is focus on the customer perception to the E- • It is available all the time, i.e. 24x7. You can perform your banking services in Peruvallur Panchayath, Malappuram. and to tasks from anywhere and at any time; even in night when the study the satisfaction in availing the E Banking activity. bank is closed or on holidays. The only thing you need to have is an active internet connection. Research design • It is fast and efficient, funds get transferred from one account A descriptive and analytical study is being undertaken which to the other very fast. includes collection of data from customers of banks selected • Through E-banking, you can keep an eye on your transactions from Peruvallur Panchayath, Malappuram. and account balance all the time. It also acts as a great medium for the banks to endorse their products and services. The Research instrument services include loans, investment options, and many others. The research instrument for this study is a structured • It offers cost saving opportunities for customers. questionnaire for the collection of primary data. The variables included in the questionnaire were identified by referring the Disadvantages of E-banking studies conducted previously.

The disadvantages include the following: Sampling • The beginner who is new to e banking activities usually face some difficulty. • E-banking can be accessed only with internet connectivity. The target population is entire customers of Banks who are • Account information might get hacked by unauthorized people using banking facilities in Peruvallur Panchayat, Malappuram. over the internet. • Password security is a must, chance that it can Bemis used by someone who gets to know password inadvertently. The sample size consists of 80 respondents. • Highly dependable on the bank’s server, if is down, it cannot be used. • cause to break down of system in case of power failure. Judgemental sampling was adopted for the study.

IJESC, May 2020 25543 http:// ijesc.org/ • Inclusion criteria 1. Simple percentages Data was collected from different customers of banks who were 2. Bar chart and pie charts willing to provide information. Limitations of the study Source • Only few selected rural population in Peruvallur were considered for the study, hence result cannot be generalized. • Ambiguous replies or omissions of replies to certain questions. Primary data was collected from the sample customers of Banks • The study is based on sampling method, so sampling errors are who were found using E-banking facilities in Peruvallur bound to happen. Panchayat, Malappuram using a structured interview schedule. • Reliability of secondary data is questionable.

Data analysis and interpretation Secondary data required for the study was collected from the journals, newspapers and websites. Age of respondents The E-banking services can be influenced by their age. Hence Data analysis and tools classification of respondents based on age group is made in The statistical analysis was carried out with the help of SPSS Table 1. software. Following tools were used for data analysis.

Table.1. Age wise classification of respondents Age of the respondent Frequency Percentage

Below 20 3 4 20-30 19 24 30-40 15 18 40-50 18 22 50-60 19 24 Above 60 6 8

Total 80 100 Source: Primary data

From Table 1 it can be seen that , 24percent are from the age Attributes of banks group 20-30, 24percent are from the group 50-60, 22percent are Customers of banks may have different preferences regarding from the age group 40-50, 18percent are from the age group 30- various attributes they may like while choosing a bank, therefore 40, 8percent are from above age group above 60 and the the classification on the like for various attributes of the remaining 4percent from the age group below 20. respondents are made in Table 2.

Table.2. Classification of the respondents on the basis of attribute valued most Attribute Frequency Percentage Quality of service 21 26 Technology 12 16 Trust 26 32 Location 10 12 Type of bank 11 14 Total 80 100 Source: Primary data

From the table 2, it can be stated that the majority 32percent of Factors prompting to use new banking techniques the customers value trustiness of the bank, 26percent value the There can be difference in the likes of customers that prompt quality of services of the bank, 16percent value the technology them to use new banking techniques. Hence classification of used by banks, 14percent value the type of bank (they prefer respondents is made on the basis of the factors that prompt them govt. Banks) and remaining 12percent value the location of the to use new banking techniques in Table 3. bank.

IJESC, May 2020 25544 http:// ijesc.org/ Table.3. Classification of respondents on the basis of factors promoting to use the new techniques in banking Factor Frequency Percentage

Time 26 32 Cost 16 20 Ease of use 26 32 Technology 12 16 Total 80 100 Source; Primary data

From Table 3, it is clear that 32percent of customers prefer in E-banking awareness using latest techniques because of less time of transactions, The awareness of customers to use E- banking facilities are 32percent prefer to use it because of the ease of use, 20percent different. Hence classification of respondents on the basis of prefer it because of cost effectiveness and 16percent prefer new their familiarly with using E-banking facilities are made in banking because of being technology savvy. Table 4.

Table.4. Classification of respondents based on familiarity with usage of E-banking Familiarity level Frequency Percentage

No knowledge 14 18

Beginner 18 22

Average knowledge 25 32

Advanced knowledge 13 16

Expert 10 12

Total 80 100 Source: Primary data

It can be seen from the table 4 that 32percent of the respondents Duration of having bank account have average knowledge, 22percent of the respondents are Customers might have started availing banking services by beginners, 18percent of respondents have no knowledge, taking an account in the bank from different periods. Hence 16percent of respondents have advanced knowledge and classification of respondents based on of their duration of having remaining 12percent of respondents are experts. a bank account is made in Table 5.

Table 5: Classification of respondents on the basis of period of having bank account Period Frequency Percentage

Below one year 5 6 1-5 years 16 20 6-10 years 18 22 Above 10 years 41 52 Total 80 100 Source; Primary data

Table 5 shows that 52percent of respondents have bank account varied view regarding the safety and security in banking for above 10 years, 22percent of respondents have bank account transactions through internet. Hence classification of for 6-10 years, 20percent of respondents have bank account for respondents on the basis of their opinion regarding safety and 1-5 years and remaining 6percent for below one year. security in such transactions is made in Table 6. View on banking through internet: Customers might have a

IJESC, May 2020 25545 http:// ijesc.org/ Table.6. Classification of respondents based on view on banking through internet View Frequency Percentage Strongly agree 14 18 Agree 28 34 Undecided 13 16 Disagree 14 18 Strongly disagree 11 14 Total 80 100 Source:Primary data

Table 6 shows that 34percent of the respondents agree, Motives for not using E- banking services 18percent of respondents strongly agree, 18percent of the people There are different motives from using banking transactions disagree, 16percent of respondents are undecided, and remaining through internet. Hence respondents are classified on the basis 14percent strongly disagree on the safety and security of of their opinion regarding reasons for not using E-banking banking transactions through internet. services is made in Table 7.

Table.7. Classification of respondents on the basis of reasons for not using E-banking services Reasons Frequency Percentage

Confusing 11.42 14.28

Lack of information 25.71 32.14

Fear of security 17.14 21.42

Not interested 11.42 14.28

Others 14.28 17.85

Total 80 100 Source: Primary data

Table 7 shows that 32percent of respondents do not use E- Satisfaction towards E-banking channel banking services due to lack of information, 22percent do not The satisfaction of different customers might vary regarding use it out of fear of security, 18percent do not use it due to other usage of E-banking channels. Hence respondents are classified reasons, 14percent do not use it due to confusion and remaining on the basis of their opinion regarding satisfaction with E- 14percent do not use it as they are not interested. banking channel is made in Table 8.

Table.8. Classification of customers on the basis of satisfaction with E-banking channel

Satisfaction level Frequency Percentage

Highly satisfied 20 24 Satisfied 24 30

Neutral 16 20

Dissatisfied 14 18 Highly dissatisfied 6 8

Total 80 100 Source;Primary data

From the table above, it is evident that 30percent of the Reasons behind the dissatisfaction of E-banking respondents are satisfied with E-banking channel, 24percent are There are certain reasons that can cause dissatisfaction for highly satisfied, 20percent are neither satisfied nor dissatisfied, customers regarding the usage of E-banking services. Hence 18percent of respondents are dissatisfied and remaining 8percent respondents are classified on the basis of their opinion of respondents are highly dissatisfied. regarding dissatisfaction with E-banking channel is made in Table 9.

IJESC, May 2020 25546 http:// ijesc.org/ Table.9. Classification of respondents based on reasons for dissatisfaction of E-banking Reasons Frequency Percentage Security reasons 18.18 22.72 Problems with cash transactions 14.54 18.18 Extra charges 10.90 13.63 Others 10.90 13.63 None 25.45 31.81 Total 80 100 Source; Primary data

Table 9 shows that 32percent of the respondents have no Frequency in use of E-banking services dissatisfaction with E-banking services, 23percent have The frequency of usage of E-banking services differ from dissatisfaction regarding security reasons, 18percent have customers. To customer The respondents are classified based dissatisfaction in problems with cash transactions, 14percent on their frequency of using E-banking services is made in Table have dissatisfaction on other reasons and 13percent have 10. dissatisfaction regarding extra charges.

Table.10. Classification of respondents based on frequency of usage of E- banking Frequency Number of respondents Percentage Very frequently 12 16 Frequently 18 22 Occasionally 26 32 Rarely 14 18 Very rarely 10 12 Total 80 100 Source;Primary data

In the table 10, occasional users are 32percent of the Willingness to use- banking services in future respondents, 22percent of respondents are frequent users, There can be a difference in the willingness of customers 18percent of the respondents are rare users, 16percent of the regarding in the use of E-banking services even after giving an respondents are very frequent users and 12percent of the awareness class. Hence classification of respondents based on respondents are very rare users. their opinion regarding willingness to use E-banking facilities after getting an awareness class is made in Table 11.

Table 11: Classification on the basis of willingness to use E- banking if awareness classes are given Willingness to use Frequency Willing 80 Not willing 0 Source; Primary data

It is clear from Table 11 that all the respondents are willing to Reasons that obstruct rural customer from using E-banking use more of E-banking services if they are given awareness services: There can be a difference in the reasons that obstruct classes regarding it. rural people from using E-banking services. Hence classification of respondents on this basis is made in Table 12.

Table.12. Reasons that obstruct rural customer from using E-banking services Reason Frequency Percentage Lack of knowledge 58 60 Non-availability of facilities like computer, 10 12 internet etc. Fear of security 16 20 Others 6 8 Total 80 100 Source; Primary data

In the table 12 its show that 60percent of the respondents think think that it is out of fear of security, 12percent think that it due that lack of knowledge is the reason that obstructs rural people to non availability of facilities like computer, internet etc and in using services provided by banks , 20percent of respondents 8percent think that it is due to other reasons.

IJESC, May 2020 25547 http:// ijesc.org/ Major findings of the study on E-banking etc. It could be observed that majority of Majority of the respondents are from the age group 20-30 and respondents use E-banking services due to its reduced time of 50-60 both with 24percent. transactions and ease of use. Majority of the respondents have Trustiness of the bank is the attribute which is valued most by average knowledge on usage of E-banking and are found to be 32percent of respondents. occasional users. Lack of knowledge is the reason why the The factors which promote the respondents to the usage of respondent hesitate the use of E-banking. High majority of the new banking techniques is due to reduced time in transaction respondents are of the opinion that demonetization has created a and ease of use are each with 32percent. positive impact on E-banking. 32percent of the respondents have average knowledge regarding familiarity with usage level of E-banking. IV. REFERENCES 52percent of the respondents have bank account for above 10 years. [1]. Rangarajan, C. (2011). Role of Technology in Development 34percent of the respondents agree that banking through of Banking. Institute for Development and Research in Banking internet is safe and secure. and Technology. -banking is low, 32percent say that reason for less usage is due to lack of [2]. Chakrabarty, K. C. (2011). Financial inclusion and banks: information. Issues and perspectives. RBI Bulletin, November. -banking channel are only30percent of [3]. Debabrata Das published an article on “Banking revolution” -banking is high, Frontline, Volume 27 - Issue 24 Nov. 20-Dec. 03, 2010. 32percent say that they have no dissatisfaction with E-banking services and 23percent of the respondents are dissatisfied due to [4]. K. Srinivasa Rao (Dr.), Deputy General Manager, Bank of security reasons. Baroda, Mumbai, Paper on “Harnessing ICT Systems :The Spring-Board of Innovation” The Journal of Indian Institute of occasional users of E-banking services. Banking & Finance, January - March 2011,pp-5-12. n, hundred percent of the respondents are willing to use E-banking services [5]. Mittal, R. K., & Sanjay, D. (2007). Technology in banking 60percent of the respondents are of the opinion that lack of sector: issues and challenges. Vinimaya, 27 (4), 14-22. knowledge is the reason that obstructs rural people from using E-banking services. [6]. Nitsure, R. R. (2003). E-banking: Challenges and Opportunities. Economic and Political Weekly, 5377-5381. Suggestions The banks are to make their customers more aware about [7]. Nupur, J. M. (2010). E-banking and customers’ satisfaction various E-banking services through publicity and awareness in Bangladesh: An analysis. International review of business classes. research papers, 6(4), 145-156. -banking channel and also about their advantages. This would prompt the customers to shift from traditional brick and mortar channel. - Banking service and must be encouraged to use the same. advertising, spreading awareness about computer and net banking. to motivate the customer to use E-banking.

III. CONCLUSION

Withe the advancement of technology, globalisation and increased power, the customers are more aware about the rapid development in the Banking sector The people of today are better educated , employed, and have gained knowledge and are ready to adapt to the changes. The E-banking services proved to be time saving and much easier in process of conducting day to day transactions The present study has been focused on perception of customers towards E-banking services with special reference to Peruvallur, Malappuram taking into consideration various factors including that it is a rural area. The study was conducted among 80 people in Peruvallur to know their insight on E-banking, factor that promotes them to use new techniques, reasons for dissatisfaction, impact of demonetization

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