International Journal of Mechanical Engineering and Technology (IJMET) Volume 9, Issue 1, January 2018, pp. 905–914 Article ID: IJMET_09_01_099 Available online at http://iaeme.com/Home/issue/IJMET?Volume=9&Issue=1 ISSN Print: 0976-6340 and ISSN Online: 0976-6359
© IAEME Publication Scopus Indexed
THE USAGE OF E-BANKING TECHNOLOGY BY INDUSTRIAL EMPLOYEES AT DHANLAXMI BANK IN MYSURU
Aashish.C.I Professor, Department of Management & Commerce Amrita School of Arts and Sciences, Mysuru Amrita Vishwa Vidyapeetham, Karnataka, India
Madesh. H.R Department of Management & Commerce Amrita School of Arts and Sciences, Mysuru Amrita Vishwa Vidyapeetham, Karnataka, India
ABSTRACT Electronic Banking refers to providing of banking product and services through electronic delivery channels. E-Banking comes under service industries. E-banking provides a larger usage of technology base system particularly those associated with the web. This allows banks to understand the fundamental changes in how banks interact with customers. E-Banking permits the clients, for those who have personal computer with internet access. It allows their customers to do the banking activities all over the world at their fingertips at any point of time. Customers need not visit the bank branches for their transactions. It facilitates various services like cheque book request, online loan facilities, balance enquiry, fund transfers etc. Emergence of e- banking has enabled the banks to supply real time dealings and integrate all customers connected functions. E-Banking has vital growth in several countries and incorporates amendments. E-Banking channel has provided competitive advantage to the banks. It helps the banks to satisfy the increasing requirements of customers effectively and efficiently. The data analysis shows that significant factors that decides the usage of e-banking services by industrial employee. The impact of E-Banking is rapidly growing with the technology. This research throws light on how the industrial employees are aware about usage of E-banking services provided by Dhanlaxmi Bank at Mysuru. For this study 50 industrial employees were selected as sample size. The data were collected from the employees using questionnaires and the analysis was made to study the industrial employees usage of e-banking, correlation between usage of e-Banking and industrial employees and also the frequency of usage. For analysis purpose hypothesis was framed initially followed by Karl Pearson’s and chi square methods were used.
http://iaeme.com/Home/journal/IJMET 905 [email protected] Madesh. H.R and Aashish.C.I
Key words: E-Banking, Technology, Industrial employees, Awareness. Cite this Article: The Usage of E-Banking Technology by Industrial Employees at Dhanlaxmi Bank In Mysuru, Madesh. H.R and Aashish.C.I, International Journal of Mechanical Engineering and Technology 9(1), 2018. pp. 905–914. http://iaeme.com/Home/issue/IJMET?Volume=9&Issue=1
1. INTRODUCTION Bank is a financial institution, which provides financial services to customers. The basic function of the bank is to accept deposit from customer and lending money back to customer on their demand. It involves the activities of lending loan for various activities of customer such as housing loan, vehicle loan, personal loan, business loan, gold loan by charging interest and accepts the fixed deposits. The study is focused towards the customer who are segmented to industries. The usage of these services are prevalently seen in the regular customers, but the industrial employees are reluctant to use the facilities, may be because of their awareness factor, and also due to their literacy level. Bank provides various types of accounts such as savings account, current account and recurring account fixed deposit account. Savings account and recurring account can be opened by individual. Current account can be opened by trading people. Bank acts like a bridge between business and consumers.
Importance of banking 1. Encourages savings 2. Money transfer 3. Overdraft facilities 4. Collection of savings and advancing loans 5. Discounting bill of exchange 6. Financing internal and external trade 7. E-Banking Electronic banking is called as E-banking also known as online banking. E-Banking is a method of doing transactions through electronic via internet. E-banking is easy, safe, fast and efficient electronic service that provides access to customer to do the transaction through online 24hours/7days in a week for 365days in a year. E-Banking provides banking services to customer at anywhere and at anytime, there is no limitation of place and no limitation of time. The transaction types are fund transfer, administrative transaction, account statement and enquiry. Customer need not visit the bank for their banking activities, all activities can be done through E-banking. This technology enables the customer to order cheque book, stop payment on a cheque, statements, buying and selling of shares, apply for loans, advice change of address and other routine activities. To access the E-Banking facility customer need to register with banking service, and set up a password for their security purpose.
Advantages of E-Banking 1. Provides privacy to customer. 2. Saves time and money. 3. Provides banking services throughout the year 24/7 4. Reduces paper work 5. Easy to access
http://iaeme.com/Home/journal/IJMET 906 [email protected] The Usage of E-Banking Technology by Industrial Employees at Dhanlaxmi Bank In Mysuru
2. DIFFERENT TYPES OF E-BANKING SERVICES PROVIDES BY BANKS
1. Internet Banking Internet banking is a retail banking which facilitates customers to operate their account from anywhere and anytime. Internet Banking provide Fund Transfer, bill payments, request issue of demand draft, credit PPF account, online bill payments, request For loan, online ticket booking, online share trading, LIC premium payments, online donation payment of taxes etc.
2. NEFT/RTGS National Electronic Fund Transfer(NEFT) system and Real Time Gross Settlement (RTGS) System which ensures an effective service, economical and reliable system of transfer of funds from one account to another account as well as from remitter’s in a particular bank to beneficiary’s bank account in another bank across the country. It is highly useful to customers to transfer funds from one bank branch to another branch which is quick and simple.
3. Automated Teller Machine Automated Teller Machine (ATM) is a very popular service in the current scenario. The Automated Teller Machine is an effective delivery channel, which plays a vital role in consumer satisfaction and cost control of transaction of banks. ATMs are emerging as the most useful tool to ensure “Any time Banking” or Any Time Money. ATM card is magnetic stripe card which operates with particular PIN Number. ATM card is used for balance enquiry, Cash withdrawal Fast cash Updating of cash book, utility bill payments etc. Recently the advanced ATM the cash can also be deposited.
4. Mobile Banking Mobile banking is a system that make easy to perform a number of financial transaction through mobile device such as immediate payments service (IMPS), DTH and mobile recharge, bill payments and E-shopping etc.
5. SMS Banking SMS banking service is providing with the help of mobile phone of the customers. It offers balance enquiry, alert for password generations, last three transactions statements, cheque status etc.
6. Cards Facility Banks provides debit cards and credit cards facility. Customer can swiping the card wherever there is a provision for point of sale (POS) machines. Through these debit and credit cards customer can purchase, can make electronic transaction, and also can pay bills. There will be interest rate applicable for the credit card holders.
7. Telephone Banking Bank provides this telephone banking service with the help of telephone to customer’s. This services is provided with secure ID and Telephone Personal Identification Number (TPIN) number. Telephone banking provides balance enquiry, cheque status enquiry, stop payment of cheque, change of TPIN service.
http://iaeme.com/Home/journal/IJMET 907 [email protected] Madesh. H.R and Aashish.C.I
8. KIOSK Machine KIOSK machine is the recent service provided by the banks for their customers. Which facilitates for passbook printing without any support of bank staff.
Objectives: 1. To study the usage of E-Banking by industrial employees. 2. To study the correlation between Industrial employees and usage of E-banking. 3. To understand the frequency of usage of E-Banking by industrial employees. 3. ANALYSIS Calculation of usage of E-Banking among industrial employees Options Values Yes 35 No 15
H0: 70% of industrial employees are not using E-banking provided by Dhanlaxmi bank
H1: 70% of industrial employees are using E-banking provided by Dhanlaxmi bank Expected frequency= total frequency/total number 50/2=25 Chi-square = sigma (Oi-Ei)/Ei = [(35-252/25) + (15-252/25)] = 4+4 Calculated value = 8 Degree of freedom= (n-1) (2-1)= 1 Alpha value=0.05 Table value=3.841 Usage of E-banking
30%
using not using
70%
Interpretation The above pie chart shows that the usage of e-Banking by industrial employees. This pie chart tells that out of 50employees 35 employees are accessing e-Banking technology and out of 50 industrial employees 15 employees are not using e-Banking service, it means 70% of
http://iaeme.com/Home/journal/IJMET 908 [email protected] The Usage of E-Banking Technology by Industrial Employees at Dhanlaxmi Bank In Mysuru industrial employees are using E-Banking technology provided by Dhanlaxmi bank and 30% of industrial employees are not using E-Banking technology. According to the hypothesis taken at alpha value being 0.05 or 95% confidential level with degrees of freedom being 1, null hypothesis is rejected therefore alternative hypothesis which is sated that70% of industrial employees are using e-banking provided by Dhanlaxmi bank is accepted.
never heard others of e banking 27% 13%
concerned abot security 60%
Out of 15 industrial employees who are not using E-Banking technology, 13% are never heard of E-Banking technology, 60% of employees are aware of e-banking technology but concerned about security and 27% of employees gave other reasons such as employees heard of E-Banking service but don’t know to operateE-Banking technology and some are having less awareness. Calculation of Correlation between different industrial employees and usage of E- Banking by employees.
X= different industrial employees (independent variable) Y= usage of E-banking among different industrial employees (dependent variable) Serial no. X Y xy x2 y2 1 9 5 45 81 25 2 18 13 234 324 169 3 9 9 81 81 81 4 11 7 77 121 49 5 3 1 3 9 1 Total 50 35 440 616 325
Σ ΣΣ Σ Σ∑ Σ 5440 5035 5616 505325 35
Correlation = 0.9342
http://iaeme.com/Home/journal/IJMET 909 [email protected] Madesh. H.R and Aashish.C.I
20 18 16 14 12 10 8 Industries 6 4 Usage of E-Banking by 2 industrial employees 0
Interpretation The above clustered column chart shows different type of industries and usage of E-Banking technology among different industrial employees. Since the value is 0.9342 which is positive so, there is positive relation between different industrial employees and usage of E-Banking technology by employees. Since the correlation is very strong, due to the compulsion by the government also at the same time has made the banks to adopt to new changes. One of the reasons being that the industrial employees are also aware by force or by chance, which is evidently seen in the analysis done above. During the start of the research I was speculative of the fact that e-banking and its awareness would not have such a strong correlation. But the fact that the analysis shows a strong correlation would help with the indication that e-banking can be made compulsion. Calculation of frequency of usage of E-Banking technology by industrial employees Options Values Daily 15 Weekly 11 Monthly 5 Occasional 4
H0: 70% of industrial employees are not frequently use E-Banking
H1: 70% of industrial employees are frequently using E-Banking Expected frequency= total frequency/total number 35/4=8.75 Chi-square = sigma (Oi-Ei)/Ei = [(15-8.752/8.75) + (11-8.752/8.75) + (5-8.752/8.75) + (4-8.752/8.75)] = 4.464+0.578+1.607+2.578 Calculated value = 9.227 Degree of freedom= (n-1) (4-1)=3 Alpha value=0.05 Table value=7.81
http://iaeme.com/Home/journal/IJMET 910 [email protected] The Usage of E-Banking Technology by Industrial Employees at Dhanlaxmi Bank In Mysuru
Frequency of using E-Banking
Occational
Monthly Daily
weekly
Interpretation Above table shows the frequency of usage of E-Banking technology by industrial employees. Through the data analysis come to know that out of 50 industrial employees 35 employees are using E-banking facility. Among 35 employees 43% of industrial employees are using E- Banking daily, 31% of industrial employees are using weekly, 14% are using monthly and 12% of industrial employees are using occasionally. According to the hypothesis taken at alpha value being 0.05 or 95% confidential level with degrees of freedom being 3, null hypothesis is rejected therefore alternative hypothesis which is sated that 70% of industrial employees are using E-banking provided by dhanlaxmi bank is accepted.
4. CONCLUSION Most of the industrial employees have adopted e-Banking technology provided by Dhanlaxmi bank in Mysuru but some employees have not accessed e-banking technology because of lack of awareness and some are concerned about security. The bank has to take a step to make utilizing of e-Banking technology among non user of employees by providing, information about e-banking services and demo session regarding the usage of e-Banking facility. Different developments and changes have installed in Indian Banking. Among the various developments technology has influenced the way customer interacts with banks. Electronic channels and products such as ATMs, cards, internet banking and mobile banking are offered along with traditional banking channel. Differences in the usage of channels exist between developed countries and developing countries. Evidence suggests that there is a shift from traditional channel to electronic channels. There is greater propensity of customers to move towards digital channels. Banks which develop digital capabilities are going to be benefited. Industrial employees recognize greater convenience through digital channels. Government is supporting to use e-banking technology and helping to provide e-banking facilities in all financial areas. The Indian government is aiming to make cash less transaction by utilizing electronic technology, to support cash less transaction concept. Everybody should access the E-Banking technology. Therefore Dhanlaxmi bank is also in the aim of creating awareness among the industrial customers to ensure cash less transaction. Dhanalaxmi bank as such is
http://iaeme.com/Home/journal/IJMET 911 [email protected] Madesh. H.R and Aashish.C.I also not such a well-known brand in the banking industry. The bank and its objectives are also clear that they are not going all out to attract all the customers in general. As the information clarity is to ensure they target the group of Industries and Institutions, the study so conducted reveals the interpretation done on the basis of the data so collected and the analysis also. The target group that was selected was known and the system of e-banking with the use of its technology as well. Also the analysis reveal that there is a strong correlation between the industrial going employees and the usage of the banking facilities, shows the indication of adaptability of these technology and its implication of facilities being used at a much faster phase. Therefore Dhanalaxmi bank has used its facilities effectively to ensure that the industrial employees also utilize them in accordance to their expectations.
REFERENCE
[1] C Aniyhamary, M Harini has done a study on consumer awareness and usage of E- banking service (2017). In this study it has been observed that the customers who are aware of Internet banking channels are also not using this facility due to misunderstanding and lack of information, that kind of customer should be targeted. The study also says that customers are using only some features of various E-banking services. [2] Sufyan Habib has done a survey on Internet banking in India consumer concerns and banking marketing strategies (2012). This survey can conclude that E-banking is dominated by the Indian private and foreign banks. The use of online bank is limited to few consumer groups. The bank must use widely technologies, legal frame work because customers require an updating to streamlines. Bank can focus on strategic consumer groups and make them to use online banking so that banks can get revenue. Survey also tells that bans cannot avoid internet banking. [3] T Nadeers, Dr. P vidhyapriya has done a study on customer awareness on technology products of Karur Vysya bank (2014). The result tells that the use of banking online is still not wide spread. Found that only educated and some businessmen are using, author tells that there is an urgent need to spread awareness among the small businessman, housewives, persons working in unorganized department banking and electronic banking services. [4] K.T Geetha and V Malarvizhi (2010), their study on acceptance on E-banking among customer. It observes the factors that affect customer acceptance ofe-banking service indicating safety and privacy and other factors increase the acceptance of e-banking service. Indian customers said that if the bank provides the necessary guidance and to ensure the safety of its account, customers are willing to adopt electronic banking service. [5] Suil Kumar (2015) has done a study on consumer awareness and usage of E-banking services. As a result of this research, consumers do not often use these services, but they will have a strong desire to use these services in the future. The purpose of this study is to understand the awareness and use of electronic banking. [6] Bhavesh J, has conducted a survey on use of internet banking among rural consumer (2013). This survey found that the concept of E-banking is new to rural consumer but few people are aware of E-banking and using nearly to one year. The most facility is used by rural side is balance enquiry among many facilities. The concept of E-banking is not much developed compared to other facilities which are providing by bank such as FD, demand draft facility, term loan and etc. [7] Dr. Shamsher Singh (2014) researched on concept of E-banking customers. After the agricultural and industrial revolution, internet technology is considered to be the most important wave of revolution. In this paper, the adoption and usage of e-banking between customers of various banks has been examined. In India the banks are running to use latest technology to reduce operational costs and increase customer base. E-banking is much used for balance check, account transaction, payment etc.
http://iaeme.com/Home/journal/IJMET 912 [email protected] The Usage of E-Banking Technology by Industrial Employees at Dhanlaxmi Bank In Mysuru
[8] Dr.Ala Eddin mohd Khalaf Ahmad, Dr. hasan has done a paper on E-Banking functionality and outcomes of customer satisfaction (2011), the results are E-banking function factors, accessibility of customer satisfaction and security protection has a positive significant. [9] Jyoti vij, kavita vij and vinod vij has conducted a study on role of E-banking in current scenario(2014) and their findings tells that consumer are visiting bank branch to make deposit this is the main reason and not all are using E-banking service and it is found that bachelor degree holders are using highest E-banking service. [10] Mrs T Amsaveni and Dr m Kanagarathinam conducted a study on consumer awareness of E-banking service in public sector bank in Coimbatore district. According to this study, modern banking services have taken up a new business paradigm to service in a technology world of high standards and expectation bank use information technology. This has helped in increasing the standard of transaction and has also helped in improving the service in banking industry. This study shows that the present trend focuses on going cashless and online transaction are at hike. [11] Mahammad Sakheer conducted a study on consumer awareness and usage of E-banking transaction through mobile phone. This study aims at the evaluation of awareness of E- banking and also to know the cause of why mobile banking is not much used. This also shows that most of the people are not aware of online banking and fare aware hesitates sometimes considering safety and privacy aspects. This study provides suggestion that bank must help people in believing and using online banking. [12] Amutha D done a study on consumer awareness towards E-banking. This paper deals with the consumer perception towards the system of E-banking with special reference of tuticorn district of tamilnadu. This study reveals that not much of the population is aware of net banking facilities. [13] Miss R Elavarasi done a study on customer and preference towards E-banking service of banks. The purpose of this study is to create awareness among the consumer and find out their preference of banking. This study also claims to find out the better services provided by the banks. The data analysis in this study shows that education, age, qualification, occupation and income level of consumer has a lot to do with the way of banking preferred. [14] Ashima Tandon and Sunita Bishnoi conducted a study on consumer awareness towards internet banking. This study says that internet banking has evolved during the ages and has experienced vast growth in many countries. This channel of banking has its own unique advantages as the customer has an access to number of services at a moment. This study is conducted to create awareness of net banking and understand the behavior of consumer towards it. The result shows that awareness is higher in case of private and foreign sector bank as compared to any public sector bank. [15] Dr. N Yesodha Devi, Mrs J Nancy Sebastina and Dr. V.S.Kanchana made a study on customer awareness, reasons for opting mobile banking. This study aims to find out the awareness of mobile banking which seems to be not so common in India. Mobile technology offers a wide range of services such as fund transfer, online updates etc. this aims at knowing the behavior of the consumer towards mobile banking and find out why consumers do not prefer online banking. [16] Mr.Laxmi Narayana.k, Mr.Sri Hari.V and Dr.P Parashivaiah conducted a study on customer satisfaction towards online banking service with reference to Bangalore city (2017). This study would likely to tell that providing consumer education will help in improve consumer confidence and ultimately the total customer satisfaction. [17] Uppal R.K (2007) Studies have concluded that E-Bank customers are satisfied with the spread of e-banking services with various e-channels and their services. This suggests some measures to make the e-banking service more effective in the future. The current study is mainly related to the Indian banking industry, and especially those banks which are producing service through e-channels.
http://iaeme.com/Home/journal/IJMET 913 [email protected] Madesh. H.R and Aashish.C.I
[18] Dr. Pinki Insan and Sapna Kumari conducted a study on Customer’s Perception towards Internet Banking (A Study of Sirsa city). This study shows that People are also aware and satisfied with internet banking services the most important factor behind using internet banking provided by their banks is that it is more convenient Studies also show that internet banking services can also be improved in dealing with the humble people. To make behavior and personal contact, this e-banking feature provides users some extra benefits. [19] S. Senthil Kumar and Dr. P. Abirami. Customer Usage Patterns and Satisfaction of E- Banking Services. International Journal of Advanced Research in Management, 8(1), 2017, pp. 12–20. [20] Dr .V.Antony Joe Raja, Global E-Banking Scenario and Challenges In Banking System, Volume 3, Issue 1, January- April (2012), pp. 205-213, International Journal of Management (IJM). [21] Mohamed Salih Yousif Ali, The Effect of E-Banking Orientation on Customer Service Quality KSA Banks Customers‟ Perspective. International Journal of Civil Engineering and Technology, 8(9), 2017, pp. 546–563
http://iaeme.com/Home/journal/IJMET 914 [email protected]