Mayas Publication 9
A STUDY ON CUSTOMER USAGE TOWARDS ONLINE
BANKING SERVICES IN PRIVATE BANKS
EIJFMR
Dec-15th 2018
www.eijfmr.com
TSR. VIJAY JANANI Research Scholar Bharathiar University Arts and
Science College, Valparai Dr. L. RAMESH Research supervisor Bharathiar University Arts and
Science College, Valparai .
Received : 10th November 2018
Accepted : 29th November 2018 Published : 15th Decmber 2018
Reviewer : Dr.S.R.Keshava Dr.Vijaya
ABSTRACT
The present study is concerned with the usage of online banking in private banking. The research was constructed on customers familiar with online banking and their usage was studied. A sample of 150 customers is personally surveyed using a structural questionnaire. The data is analyzed using frequency distribution and ANOVA with proposed hypothesis are tested. The findings reveal about various factors that effect usage of online baking with the demographic details of the respondents.
Key words: online banking, usage of online banking, service
INTRODUCTION
Banking system of a nation is the backbone of a nation’s economy. A bank is a financial institution which deals with money and credit. The Indian banking system with one of the largest networks in the world, has witnessed a series of reforms over the past few years such as the use of online banking and increased participation of private sector banks.
The advent of online has initiated an electronic revolution in a global banking sector as the dynamic and flexible nature of this communication channel has helped in leveraging a variety of banking services.
OBJECTIVES OF THE STUDY
The main objective of the study is to identify the level of usage of online banking
The other objectives are to identify the purpose and reason for which online banking facilities were used.
METHODOLOGY Data collection:
Primary data was collected directly from private bank customers using a structured questionnaire method.
Sample size and sample method:
For the purpose of the study non – probability sampling technique has been adopted. 150 respondents who were using online banking services were selected.
Significance tools:
Mayas Publication 10
ANALYSIS AND INTERPRETATION
GENDER TABLE 1
Particulars Frequency Percent
Male 90 60.0
Female 60 40.0
Total 150 100.0
Table 1 shows majority of the respondents are Male (60%)
AGE TABLE 2
Particulars Frequency Percent
Below 30 66 44.0
31 - 40 15 10.0
41 - 50 54 36.0
51 - 60 7 4.7
Above 60 8 5.3
Total 150 100.0
Table 2 shows that the age group of the respondents fall majorly under “Below 30” (44%) followed by the age group of 41 – 50(36%) and 31 – 40 age group (10%)
MARITAL STATUS TABLE 3
Particulars Frequency Percent
Married 91 60.7
Unmarried 59 39.3
Total 150 100.0
Table 3 shows that majority of the respondents are Married with 60.7%
EDUCATION TABLE 4
Particulars Frequency Percent
Under Graduate level 56 37.3
Post Graduate level 41 27.3
Professional Education 47 31.3
Diploma and others 6 4.0
Total 150 100.0
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OCCUPATION TABLE 5
Particulars Frequency Percent
Business 20 13.3
Government
employee 7 4.7
Private employee 80 53.3
House wife 9 6.0
Student 27 18.0
Others 7 4.7
Total 150 100.0
Table 5 shows 53.3 % of the respondents are private employee, 18% of the respondents are students and 13.3% respondents are doing Business.
INCOME TABLE 6
Particulars Frequency Percent
Up to 20,000 p.m 20 13.3
Rs. 20,001 - to Rs. 30,000 p.m 17 11.3
Rs. 30,001 to Rs. 40,000 p.m. 10 6.7
Rs. 40,001 to Rs. 50,000 p.m. 18 12.0
Above Rs. 50,000 p.m. 85 56.7
Total 150 100.0
Table 6 shows that highest income group pertains to the category of “above Rs 50000 p.m.” and the lowest income group (6.7%) fall under “ Rs 300001 – 40000p.m”
REASON FOR USING ONLINE BANKING FACILITY TABLE 7
S.No Particulars Frequency Rank
1 Convenience 62 1
2 To save time 46 2
3 Access any time 28 3
4 Quick service 11 4
5 Status of symbol 3 5
Total 150
From table 7, Ranking is made according to the frequency and it shows very clearly that respondent use online banking facility primarily for “Convenience”, followed by “To save
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PURPOSE OF USING ONLINE BANKING TABLE 8
S.No Particulars Frequency Rank
1 Funds transfer 70 1
2 Online shopping 30 2
3 Bill payment 24 3
4 To see balance 15 4
5 Statement 10 5
6 Other purpose 1 6
Total 150
Table 8 shows that Funds transfer is the main purpose of using online banking, followed by online shopping and bill payment.
ANOVA
Null Hypothesis: There is no significant difference in the usage of online banking and
gender of the respondents.
Alternate Hypothesis: There is significant difference in the usage of online banking
and gender of the respondents.
FACTORS INFLUENCING USAGE OF ONLINE BANKING AND GENDER TABLE 9
Sum of
Squares Df
Mean
Square F Sig.
Result of testing the hypothesis
Using online banking saves time
Between
Groups 1.778 1 1.778 3.364 0.07 Accept
Within
Groups 78.222 148 .529
Total 80.000 149
It enables quick service
Between
Groups 5.601 1 5.601 8.470 0.00 Reject
Within
Groups 97.872 148 .661 Total 103.473 149
It provides round the clock service
Between
Groups 3.121 1 3.121 5.072 0.03 Reject
Within
Groups 91.072 148 .615
Total 94.193 149
I feel using online banking is safety and secure
Between
Groups .490 1 .490 .432 0.51 Accept
Within
Mayas Publication 13 It is convenient
to me
Between
Groups 104.721 1 104.721 2.054 0.15 Accept Within
Groups 7546.372 148 50.989 Total 7651.093 149
I feel that using online banking is status of symbol
Between
Groups .588 1 .588 .303 0.58 Accept
Within
Groups 286.772 148 1.938 Total 287.360 149
It can be used anywhere
Between
Groups .538 1 .538 .658 0.42 Accept
Within
Groups 120.956 148 .817 Total 121.493 149
I use because friends / family members influence me
Between
Groups .218 1 .218 .109 0.74 Accept
Within
Groups 295.656 148 1.998 Total 295.873 149
Do not want to waste time to visit bank personally
Between
Groups .218 1 .218 .178 0.67 Accept
Within
Groups 181.256 148 1.225 Total 181.473 149
Circumstances influence me to use online banking
Between
Groups .188 1 .188 .121 0.73 Accept
Within
Groups 229.072 148 1.548 Total 229.260 149
Saves energy
Between
Groups 2.151 1 2.151 2.019 0.16 Accept
Within
Groups 157.722 148 1.066 Total 159.873 149
It is understood from the above table that the table significance ((0.00) and (0.003)) is less than 0.05 level of significance. The Null hypothesis in this case is rejected.
The alternate hypothesis is accepted ie. There is significant difference in the usage of online banking and gender of the respondents under the factors “It enables quick service” and “It provides round the clock service”
ANOVA
Null Hypothesis: There is no significant difference in the usage of online banking and
income level of the respondents.
Alternate Hypothesis: There is significant difference in the usage of online banking and
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FACTORS INFLUENCING USAGE OF ONLINE BANKING AND INCOME TABLE 10
Sum of
Squares df
Mean
Square F Sig.
Result of testing the hypothesis
Using online banking saves time
Between
Groups 7.029 4 1.757 3.492 0.01 Reject
Within
Groups 72.971 145 .503
Total 80.000 149
It enables quick service
Between
Groups 11.430 4 2.857 4.501 0.00 Reject Within
Groups 92.043 145 .635 Total 103.473 149
It provides round the clock service
Between
Groups 12.114 4 3.028 5.350 0.00 Reject Within
Groups 82.080 145 .566
Total 94.193 149
I feel using online banking is safety and secure
Between
Groups 6.521 4 1.630 1.462 0.22 Accept
Within
Groups 161.719 145 1.115 Total 168.240 149
It is convenient to me
Between
Groups 184.487 4 46.122 .896 0.47 Accept Within
Groups 7466.606 145 51.494 Total 7651.093 149
I feel that using online banking is status of symbol
Between
Groups 12.108 4 3.027 1.595 0.18 Accept Within
Groups 275.252 145 1.898 Total 287.360 149
It can be used anywhere
Between
Groups 4.942 4 1.236 1.537 0.19 Accept
Within
Groups 116.551 145 .804
Mayas Publication 15 I use because
friends / family members influence me
Between
Groups 23.120 4 5.780 3.073 0.02 Reject Within
Groups 272.753 145 1.881 Total 295.873 149
Do not want to waste time to visit bank personally
Between
Groups 12.371 4 3.093 2.652 0.04 Reject Within
Groups 169.102 145 1.166 Total 181.473 149
Circumstances influence me to use online banking
Between
Groups 37.052 4 9.263 6.988 0.00 Reject Within
Groups 192.208 145 1.326 Total 229.260 149
Saves energy
Between
Groups 21.297 4 5.324 5.571 0.00 Reject Within
Groups 138.577 145 .956 Total 159.873 149
It is understood from the above table that the table significance ((0.00), (0.001), (0.002), (0.003) and (0.004)) is less than 0.05 level of significance. The Null hypothesis in this case is rejected.
The alternate hypothesis is accepted ie. There is significant difference in the usage of online banking and income level of the respondents under the factors “Using online banking saves time, It enables quick service, It provides round the clock service, I use because friends / family members influence me, Do not want to waste time to visit bank personally, Circumstances influence me to use online banking and saves energy”
CONCLUSION
