My Ssec Capstone Project “Economic Analysis of Consumers’ Perception of E-Banking Services

“Economic Analysis of Consumers’ Perception of E-Banking Services

“Economic Analysis of Consumers’ Perception of E-Banking Services: A Comparative Study of Public and Private Banks (w.s.r. to Jabalpur District”)

Thesis
Submitted For
Doctor of Philosophy
By
Alice Chettiar
(nee Alice Rashmi Rajan)
In The Department of Economics
Faculty of Social Science
of Rani Durgawati University
Year 2018
CHAPTER I
INTRODUCTION
1.1 INTRODUCTION
The banking industry is one of the prodigious service sectors in India. The primary function of the banking sector is to deliver dynamic and efficient services to its customers. It comprises of public and private sector financial banks whose objective is to lend a hand to people for their banking, financial and economic needs. Technology has brought major changes to the face of banking over the past few years.
Financial services industry over time has opened to notable shift that can be labeled as e-developments which are progressing swiftly in all parts of financial intermediation and financial markets such as e-finance, e-money, e-brokering, e-insurance, e-exchanges, etc. The Indian banking industry, keeping in pace with the approach of the country’s business, has undergone a sea of change in the past few years. The new information technology (IT) is evolving into a critical factor in the future of banking, creating banks’ marketing and business strategies. Banks and other businesses depend upon IT to improve business , service quality and enticing new customers (Kannabiran and Narayan, 2005). Technological innovations have resulted in various distribution channels for use by banks and these e-channels to perform banking transactions are together known as e-banking. Most of the regular banking transactions can today be carried out through the internet, mobile phones, and other e-channels. E-banking has amended the banking and financial industry with regard to the nature of core products /services and the way these are arranged, planned, conveyed and consumed.
Due to technological innovations, consumers are connected to various electronic devices in a larger diversity of circumstances from in-home to on-the-move. These accelerating tech-driven connections have changes banking customers expectations too. In a consumer trends survey from Fiserv, Inc. a leading global provider of financial services technology solutions, Mark Ernst, chief operating officer, Fiserv has said: “Consumers are living more digital lives, and that is being reflected in the way they pay,”. Customers have always desired an affable, effective and consistent service, but the development of new technology has raised their expectations exponentially. With the rapid growth in the services industry across the economy, customers have been unveiled to greater standards of service and customer adaptation. With swiftly changing consumer behavior businesses need to stay up-to-date with customer expectations. Delighting the customer with better service quality has the potential of changing consumer’s perception. It pays off the businesses in the long run in form of customer loyalty.

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1.3 MEANING OF E-BANKING
E-Banking is an offshoot of E-Commerce which covers the implementation of Information and Communication Technology (ICT) in Business Financial Management. E-commerce is the process of buying and selling products, services, through computer networks including the Internet. E-commerce includes a wide array of activities. The goal of e-commerce is to upgrade the way in which business is conducted, using technology. This constructs a computer-liaised relationship between consumer and business. Following figure 1.2 shows the stand of e-banking under e-commerce-
FIGURE 1.2 ELECTRONIC BANKING
Electronic banking (e-banking), mostly known as Internet banking, is a crown canopy where new and traditional banking products and services are delivered directly to customers through automated electronic channels. It is the ususal banking services provided through an electronic communication system – Internet. It also means transferring of funds, automation of banking process & payment using electronic devices such as computer or mobile etc.. In this; consumers perform banking transactions without visiting a brick-and-mortar institution. For many customers e-banking means 24/7 access to cash through ATM or direct deposit of pay cheques into a savings account but electronic banking involves much more. It includes services such as-
online banking
phone banking
electronic alert
SMS banking
fund transfer services
ATM and debit card services
mobile banking
fund transfer services
Point of sales banking
E-statements
Other e-commerce or value-added services
SMS banking
E-banking empowers financial institutions and customers to perform most of the banking transaction such as accessing their bank accounts, business transactions, receive information about financial products and services through the internet and without any paper transaction.
Enhanced productivity and cost-cutting of the transaction are the most obvious benefits of e-banking. The differences between branch banking services and services based on internet has given rise to growth of e-payments, e-banking, and online credit risk management etc. While the banks in developed countries are working primarily via the internet as non-branch banks, the Indian banking industry is expected to be a leading player in e-business soon.

1.4 MEANING OF CONSUMER’S PERCEPTION
A “Consumer” is the one who pays to consume the goods and services produced. ” They play a vital role in the economic system of a nation. With the absence of effective consumer demand, producers would miss one of the central motivations to produce: to sell to consumers. What consumers buy, how they buy, where and when they buy, in how much quantity they buy, majorly depend on Customer’s Perception. It is a buzzword today, is an integral part of an organization. Though an ambiguous and abstract concept, it explains individuals’ opinions about companies and the merchandise they offer. It describes how customers and potential customers view a company and its products and services. It involves elongated features, such as customer assistance, maintenance services, training, or alluring payment options.
The word “Perception” originated from the Latin word “perception”. This word is used when one needs to understand the presented information, or the environment by organization, identification, and interpretation of sensory information. Human brain’s perceptual systems enable individuals to see & experience the world around. Satisfaction can be defined as pleasure derived from the fulfillment of one’s wishes and expectation.
1.4.1 Importance Of Consumer’s Perception
Urbanization, Increased awareness and improvements in living standards has led to an increase in the changing preferences. This has compelled the producers and service provider to change their product features, packaging styles, and distribution channels. The customer today is more demanding with the growing affluence, more leisure and the growing complexity of goods and services. Marketers are seeking to build a proper fruitful and functional relationship with their customers. The advances in systems based on technology, especially those dependent on the internet, are leading to basic and fundamental changes in the way companies communicate with their customers. It is necessary to identify the key success factors in terms of customer perception in order to survive in intense competition and increase the market share. Innovative businesses are finding it valuable for directly tracking their customer’s perception to signal important strategic success.
There are notable proofs to place a high priority on customer satisfaction which is crucial for improving organizational performance in a global market scenario. With a better understanding of customers’ perception, companies can determine the actions required to meet their customers’ needs. They can recognize their own strengths and weaknesses, where they stand in comparison to their competitors and they can determine a path for future progress and improvement.

1.4.1.1 Consumer’s Perception A Key Determinant Of Consumer’s Buying Behavior
The eventual aim of every business is to increase their sales by discovering the factors that motivate consumer’s buying decisions. Consumer perception theory tries to analyze and explain consumer behavior. Perception being subjective varies from customers to customers for the same product or service. Consumer perception theory analyses the same by checking out what exactly influences a consumer behavior in purchasing or not purchasing a specific product.

With ever increasing competition in the global economy, it is hard for products and services to get differentiated from other alike offerings in the market. Varied products have to face tough competition from industry, outsiders, from new bundles or offerings and substitutes. It results in reduced prices than before as the most of the businesses would want to entice their consumers along with the product differences. As per the report ” Customers 2020: A Progress Report” published by Walker information customer experience will overtake price and product as the key differentiator by 2020. Soon there will be a time world where customers’ perception of both your brand and quality of service will take precedence over traditional competitive advantages such as pricing, features, or usability. The modern consumer is more of a mix. Consumers today are very sensitive to prices. They are constantly looking out for branded and other luxury products at lower costs in the form of discounts and bargains. Being well-aware, they are mindful of their powers.
The only solution available to a business in such situations is to invigorate the bond between the company and the consumers. This is likely to give a competitive edge as this relationship is not limited to the aspect of price, quality etc. The better experience a consumer has with the company at different stages of interaction such as efficiency and reliability and speed of the process, higher are the chances that he or she is likely to come back again. A problem arising from a single transaction is likely to damage the relationship forever.

Companies toil hard to keep their consumers perfectly informed about the different of the company and how the offerings are likely to augment consumer’s life. The companies make sure that they are able to convince the consumers about how their products if purchased by the consumers can give more benefit than that of the competitors. Therefore it is important to expand the consumer perception to appreciate the finer aspects of the company’s offerings
1.4.1.2 Consumer’s Perception A key Determinant of Consumer’s Satisfaction(CSAT)
Usually, consumers’ perception and satisfaction are not distinguished while in use. They are often used as exchangeable terms. ISO 9001 defines customer satisfaction as a degree of customer’s perception at which the customers’ requirements have been fulfilled. This definition clearly indicates that customer satisfaction is subjective discernment of whether their requirements not necessarily the contractual obligations are fulfilled. It also indicates that customer satisfaction is not just a condition of yes/no problem, rather it is a range of many degrees of satisfaction. Consumers’ perception of service quality explains the way a given service matches to the expectation level of the customer, that they had been receiving. Customer perception identifies if customers are satisfied or not. Customer satisfaction figures out the level to which the customer is delighted or not with the services received.

1.4.1.3 Importance Of Consumer’s Perception In Banking Sector
Banking is mainly a customer-oriented business and good customer service is crucial to banks’ growth and stability. Though the banks have made huge investments in creating the best applications, offers, or products, the good customer service is still remains the main idea for banks in order to maintain long lasting relationships with their customers. Customer service has identifies with various meanings for different businesses. It always boils down to the same basic features such as giving high levels service to its customers. Parsuraman, Zeithaml ; Berry (1985) mentioned that “Service quality is the difference between the service expectation and service actually received by the customer”. Service quality and customer perception are critical concepts in the banking industry in order to remain competitive in business. They lead to an impression about product or service in the mind of consumers’ which in turn motivates consumers’ buying behavior.

We are living in days where technology continues to evolve; therefore quality customer service in banking should include keeping pace with both live and digital options to handle everything from simple to complex transactions. In the age of cut-throat competition amongst banks, it is customer service that “becomes the only differentiating factor” that has to be leveraged to stay relevant and forge ahead in the business. For banks, it is very important to know how to measure these factors from the consumers’ eyes so that they understand consumer’s demands well and satisfy them.

FIGURE 13 .RELATIONSHIP BETWEEN SERVICE QUALITY ; CONSUMER’S BUYING BEHAVIOR

Service quality is a vital and essential tool for attaining operational efficiency and improved business performance which helps to satisfy and retain customers. Though there has been a drastic transformation in the way relationships are built and managed between a bank and its customers due to the internet, if banks continue to invest more in order to improve their customer experiences and perception, they will reap huge benefits.
With this background, a study on Economic analysis of consumer’s perception of e-banking and a comparative analysis of e-banking services of private and public sector bank sounds interesting. For which this study finds out the factors affecting the demand and supply of e-banking services and their effect on the consumer’s behavior.

1.5 ECONOMIC ANALYSIS OF CONSUMER’S PERCEPTION OF E-BANKING SERVICES
The economic analysis involves factors that are largely influenced by the interaction of supply and demand in the goods, services and factor markets. Supply and demand are the indispensable tools of economic analysis. Majority of the applications used for economic reasoning involve supply and demand in one form or another. It is a systematic approach in which economists and other professionals will estimate the economic environment and its strengths and weaknesses. It plays an important role in determining how traders will want to position them in a Market.

For the purpose of this study demand and supply factors are derived from the SERVQUAL model. The model of service is quality widely known as the gaps model. It was developed by a group of American authors, A. Parasuraman, Valarie A. Zeithaml and Len Berry, between 1983 and 1988. This model describes the principal components of service quality (SERVQUAL) and suggests possible reasons for problems arising with regard to service quality. This study aims to perform an economic analysis of consumer’s perception based on SERQVUAL dimensions.

SERVQUAL instrument used by businesses to find out possible service quality problems and their likely causes. The model of service quality is based on the expectancy-confirmation model which explains service quality in terms of consumer’s perceptions of how well a given service delivery meets their expectations. Thus, service quality can be conceptualized as a simple equation:
SQ = P- E
where;
SQ is service quality
P is the individual’s perceptions of given service delivery
E is the individual’s expectations of a given service delivery
The output of above equation measures service quality as
Low service quality = Customer Expectations ; Perceptions of received delivery
High service quality= Customer’s Expectations < Perceptions of received delivery
With this backdrop, an economic analysis framework has been designed to examine the impact of e baking service quality provided by banks on individual customers’ perception.
Consumers’ Expectations towards E- Banking Services
Consumers’ Perception regarding E- Banking Services
Determinants of Demand side of E- Banking services
Determinants of Supply side of E- Banking services
FIGURE 1.4 ECONOMIC ANALYSIS FRAMEWORK OF CONSUMER’S PERCEPTION OF E-BANKING SERVICE
Measures Service Quality Of the Bank
Creates Consumers Perception about E banking Service
Determines Consumers’ Loyalty
Positive Impact on Banks Annual Income

1.5.1Demand-side : “Consumers’ Expectations”
Consumer’s expectation from the service provider as for this study from banks with regard to e-banking services; based on the SERVQUAL dimensions form the demand side of the economic analysis.
FIGURE 1.5: DEMAND SIDE: “CONSUMERS’ EXPECTATIONS”
SERVQUAL
Consumers’ Expectations
Consumers’ Expectations Demand Curve (CEDC)

The above-mentioned diagrams represent the demand side of the economic analysis of consumer’s perception of e-banking services. The CEDC curve shows the inverse relationship between SERVQUAL and the consumer’s expectation. It is based on the assumption that initially consumer’s expect many things from its service provider’s. As the service provider keeps meeting consumer’s expectations gradually, its declines. At this level, it is not in the expectation category but moves to either consumer’s satisfaction or dissatisfaction. Therefore CEDC is a downward sloping curve. It should be noted here that to simplify the model elasticity of the demand curve is assumed to be unitary.

1.5.2 Supply Side:”Consumers’ Perception”
Consumer’s perception about the services provided by the service provider (for this study from banks with regard to e-banking services) according to the SERQUAL dimensions form the supply side of the economic analysis
FIGURE 1.6: SUPPLY SIDE:” CONSUMERS’ PERCEPTION”
SERVQUAL
Consumers’ perception

Consumers’ Perception Supply Curve (CPSC)

The above-mentioned diagrams represent the supply side of the economic analysis of consumer’s perception of e-banking services. The CPSC curve shows the direct relationship between SERVQUAL and the consumer perception. It is based on the assumption that higher service quality leads to a higher degree of satisfaction level. Higher the service quality, the higher the satisfaction will be. Therefore CPSC is an upward sloping curve. It should be noted here that to simplify the model elasticity of the Supply curve is assumed to be unitary.

1.5.3Consumer’s Satisfaction: An Equilibrium Determined By Consumers’ Expectation And Consumer’s Perception
The degree of consumers’ satisfaction or dissatisfaction is determined by the level of their expectation and perception. Based on the above-mentioned demand and supply factors, Consumer’s Satisfaction is the equilibrium set by the interplay of demand and supply forces as per the SERVQUAL model.

FIGURE 1.7 : CONSUMER’S PERCEPTION DETERMINED BY CPDC & CPSC
CEDC
EXPECTATION <PERCEPTION= HIGH SRVICE QUALITY & SATISFACTIONN
EXPECTATION > PERCEPTION= LOW QUALITY & DISSATISFACTIONN
CPSC
SERVQUAL
Consumers’ Expectations ; Perception
Consumers’ Satisfaction where expectation and perception meet

An equilibrium determined by consumers’ perception and expectations identifies consumers’ satisfaction. Higher perception than consumer expectation, in turn, creates a highly satisfied customer resulting in consumers’ loyalty. Loyal consumers’ repeat purchase directly impacts banks annual income.

1.7 SIGNIFICANCE OF THE STUDY
Customer perception towards E-Banking is gaining popularity as it is a convenient method of dealing with banks nowadays. It is dynamic and should be studied regularly. It is important for businesses because it can influence consumer behavior, which ultimately affects the profitability of a business. Banks in India have been toiling to meet their customer expectations in areas of digital payments, omnichannel exposure, staying connected and in-person service. With this backdrop, this study aims to identify the consumers’ expectation and their perception determined by the service quality of banks with regard to e-banking services in the context of Jabalpur.
Managing the value of e-banking services and assessing their role to reinforce the relationship between banks and their customers justifies the resource invested by banks in these services. The process of e-banking services value management requires integrating customer requirements with a bank’s ability to meet those requirements. The study presents. the antecedents of e-banking services perceived value together with the factors shaping the ability of banks to create and deliver these requirements. This integrated view considers both demand and supply side of e-banking services and the reality of the e-banking environment in Jabalpur. The study will contribute in identifying the gap between customer’s expectation and perception (i.e. Customer Satisfaction) with regard to service quality of e-banking services in the context of Jabalpur. Understanding customers? behavior with regard to e-banking services will help private and public sector banks in Jabalpur, to improve the expected role with regard to service quality.
REVIEW OF LITERATURE

To-day, we cannot think about the success of a banking system without information technology and communication. It has enlarged the role of banking sector in the economy. Various empirical and theoretical studies have been undertaken at the national and international level to analyze the impact of e-banking and information and communication technology (ICT) on banking sector, customers, and service quality and payment system. To know the impact of e-banking on various aspects, the research studies undertaken for the review have been classified into two categories-
Studies related to Consumers’ Perception Of E-Banking Services of Indian Banks
From the customer’s angle the studies primarily focus upon; why customers choose e-banking products and increase in their level of satisfaction due to phone banking, mobile banking, internet banking, website services, ATMs, etc. These services have not only improved the satisfaction level of customers, but also helped in reduction of processing time and transaction time. The productivity of banks in terms of time saving and attending the customers at the branches have also improved.

The studies related to Comparative analysis of Nationalized and Private Sector Banks
There were many important changes that took place in the functioning of Banks in India only after LPG (liberalization, globalization and privatization). It has become compulsory to research and to comparatively analysis of services of Public sector Banks and Private Sector banks. Rise in competition and expansion of new information technologies and thereby reducing processing costs ; geographic boundaries, and less restrictive governmental regulations have all played a major role for Public Sector Banks in India to forcefully compete with Private Banks.

Studies which provided information on service quality dimensions and its impact on banking services
In today’s technology driven competitive world, it has become compulsory for every business to constantly & strategically involve IT to improve their . Banking industry is no exception to this as it offers many services to its customers such as Automated Teller Machine (ATM), Debit Card, electronics money and internet banking to name a few. Internet banking is no more just as a service, but has evolved as a new marketing channel. Time and again researches have been carried out to propose a conceptual solution, to provide better service quality in the area of internet banking, aiming at enhancing the satisfaction of online users of banking services. Better understanding of the e-service quality dimensions that increase e-customer satisfaction in internet banking; the relationship of e-service quality that will influence the e-customer satisfaction using internet banking services had been the need of the hour for some time now.

The studies which provide information on the impact of s of E- Banking Services on the profitability of the Banks
With the passing time electronic banking has become indispensable for all. The electronic banking services provided by the banks consists of balance enquiry, utility bills payment, funds transfer, cheque payment, funds deposit, statement of account, remittance, draft, pay order, phone banking, mobile banking, ATM, credit cards, funds transfer, cheque payment, funds deposit, PC banking etc. With growth of e banking, the efficiency of banks has been increased, the labour costs have decreased, as now less number of employees are required to deliver the services. Electronic means brought accuracy of transactions and maintenance as computer has taken the place of humans. Hence, decreasing human errors, the procedures, processes and services are now fast and reliable which saves time, efforts and costs. The customers are more satisfied with the services, their accuracy and timeliness. This has in turn augmented the efficiency of banks; decreasing the costs and increasing profits.

Studies Related To Consumers’ Perception of E-Banking Services of Bank In India
Rapa Rege Nitsure (2003) in his study “E- banking: Challenges and Opportunities” analyzed problems in developing countries, which have a low piercing of information and telecommunication technology in realizing the advantages of e-banking initiatives. The ‘digital divide’ being a major concerns such as social inequalities, the different functional environments for public and private sector banks, risk of security and authentication, management and regulation are highlighted. It also suggested ways to overcome these obstacles and exploit trends in e-banking to derive the desired benefits. The problem of a digital divide provide a rich international experience from which India can learn many lessons and include the poor within the net of e-banking.

F.Sameni Keivani, M.Jouzbarkand1, M.Khodadadi1 and Z.Khalili Sourkouhi (2012) made a study “A General View on the E-banking” aiming to give a general overview of electronic money along with its history. It examined the impact of E- Banking on traditional services and the role of E-Banking in the Banking Sector. Better customer services is one of the primary requirements of a customer while adopting a new channel. The consumers consider the benefits and weigh them against the costs associated. The Internet has a lot to offers when it come to benefit the consumers, such as any time anywhere banking, updated information, convenience, faster transaction, etc. E – Banking services are taking the place of traditional services and generating a new scale of modification. The results indicate non-existence of enough knowledge and trust have led to decrease in using e-banking in the world and education can increase usage of electronic banking services among the banks’ customers in the world.

Dr. Roshan Lal and Dr. Rajni Gupta Saluja (2012) in “E-Banking: The Indian Scenario” has explained the growth of e-banking in Indian banking industry through many specifications such as Computerization of branches, Automated Teller Machines, banking transaction through Retail Electronic Payment Methods etc to name a few. It highlighted the challenges faced by Indian banks in adoption of technology and recommendations are made to tackle these challenges. The study recommended that banks must provide awareness to its customer about e-banking products and services. Customers should be educated about the use of e-banking products and services. Special arrangements should be made by banks to ensure full security of customer funds, technical faults should be avoided, employing well trained and expert technicians in field of computers, so that loss of data can be avoided. It had also recommended personalization of E-banking services with regards to age, gender, occupation etc of customer so that their needs and requirements are met accordingly.

Saurabh Joshi, Priya Grover, Amit Ghosh and Jitendra Singh (2013) in their study “Changing Parameters Of Customer – Bank Relationship In The Light Of Electronic Banking System” identified and elaborated the parameters that determine changes in the customer- bank dealings before and after EBS era. It was observed that the system of EBS is more prevalent among the educated young salaried class. The customers rely more on public sector banks and have been very loyal customers. The introduction of EBS system has reduced the frequency of visits of the customers to the banks but has enhanced the employee-bank relationship. The banks are focusing more on customized services. The bank employees are comparatively skilled and trained to satisfy queries of customers. But still, the system of EBS is restricted to a selected class of customers. Customers in a country like India needs to be provided better and customized services. It was suggested that Banks must be concerned about the attitudes of customers with regard to acceptance of online banking. In order to broaden its base, banks need to address the other segments of customers, generate awareness and give proper training to their customers also from time to time so that they feel comfortable using EBS. The banks also need to employ new technologies for the smooth functioning of EBS. Banks may organize seminars and conference to educate the customer regarding the advantages of online banking and also address their security and privacy concerns. Some customers are reluctant to use online banking due to lack of computer skills. They need to be educated on basic skills required to conduct online banking. Banks must emphasize the convenience that online banking can provide to people. Banks must emphasize the cost saving that online can provide to the people, such as reduced transaction cost etc.

The Studies which Provide Comparative Analysis Of Public And Private Banks
Maya B. Lohani and Kamlesh Kumar Shukla (2011) carried out a research to find out the level of satisfaction among its customers about the services provided by the banks(analyze the services provided by ICICI and Bank Of Baroda (BoB) banks). This study attempted to help the bank in analyzing the reasons as to why the customers are not using the services that are provided by the bank, to finalize its marketing strategy by suggesting few marketing steps that would help the bank in obtaining larger market share and also to frame certain competitive marketing strategies to outperform the market leader. The study found out that the quality of services provided by ICICI bank is comparatively better than Bank of Baroda in Lucknow city. Apparently public sector banks have a powerful existence in the market, but in recent times they are facing tough competition from private sector banks with respect to quality of services offered. In the present scenario banks have to be service oriented in order to keep ahead of competition. Public sector banks must concentrate on giving the latest information to its customers with regard the new services offered by them. They must also change their policies and the standard of customer service standards and service efficiency with regard to the strategies adopted by private sector banks.

Dr. Vijay M. Kumbhar (2011) carried out a study about the customers perception of internet banking services provided by public and private sector banks in India in his study The research study made an attempt to assess the correlation between the demographics and customers’ satisfaction with regard internet banking. It also examined relationship between service quality and customers’ satisfaction as well as made a comparison of satisfaction levels with respect to internet banking service provided by the public sector bank private sector banks. The study found out that, demographics of the customers are one of the most important factors which influences the use of internet banking services. Overall results show that highly educated, a person who are employees, businessmen and belongs to higher income group and younger group are using this service, however, remaining customers are not using this services. The research concluded that the satisfaction among employees, businessmen and professionals are higher as far as internet banking services are concerned. There is considerable variation in the customers’ perception about internet banking services provided by the public and private sector banks. Private sector banks provide better service quality as far as internet banking is concerned in comparison of service provided by the public sector banks. Hence, improving the internet banking services according to the expectations of their customers has become compulsory for public sector banks .

Ms.Malarvizhi (2011) in her study “An Analysis On The Usage Of E-Banking Services In Coimbatore City” attempted to present an overview of e-banking services offered by both public and private sector banks in Coimbatore city. This analysed the socio-economic profile of e-banking users in order to study the magnitude of the effect awareness has on the usage of e-banking Services. By doing this he ascertained the customer’s satisfaction about various e-banking services. The study suggested that Customers have to be educated in the use of every new technology. The study found out that overall e-banking has fulfilled all the essential prerequisites for a flourishing banking industry by increasing operational efficiencies and reduced costs. It also gave a platform for offering value added services to the customer. In short, to meet the sprouting challenges banks have to set about a series of changes in original structure, functions, practices and marketing to promote e-banking.

Studies which provided information on service quality dimensions and its impact on banking services
RAJIV SINDWANI AND DR. MANISHA GOEL (2012) In Their Research “Online Banking Service Quality: A Review” reviewed some of the important studies conducted in different countries across the world with regard to service quality dimensions of online banking. On the basis of review, it had found that there is no harmony among researchers on dimensions of online banking service quality. The study recommended that there is need for advance research to develop a scale based, generalised, & universally accepted dimensions to measure online banking service quality. The service quality had been a major evaluative factor of the performance of various service organizations including banks .The extensive use of Internet within the service sector presented various challenges to service quality researchers. Many models of online service quality have been suggested time to time by various researchers. Internet banking is one of the fastest growing services which needed improvised services by improving online service quality in order to satisfy and retain customers. On the basis of review, it concluded that there is no agreement among researchers with regard to dimensions of online banking service quality. But there are no universally accepted dimensions for measuring service quality for online banking. So it recommended further research in order to develop a standardised dimensions to measure service quality .

DR MOHAMMED A. T. ALSUDAIRI (2012) carried out research “E Quality Strategy: Achieving Customer Satisfaction In Online Banking ” with the objective of building a customer satisfaction strategy and measuring e-service quality. The study related it to the web service quality. This paper will The study led to construct an innovative e-service model which could be applied to evaluate the web based internet banking service quality. Many theories and models have been studied for the research . Customer satisfaction has posed many challenges in today’s competitive world of e-businesses. Banking sector business is one of these service sectors. These businesses are excessively trying to expand customer relationship management and boost up the connections between business and customer for their satisfaction. Online banking gives services to the customers in which IT has a significant role to play in improving the service quality to achieve customer satisfaction .

Sevenpri Candra(2014) carried out a research with the objective of this paper was to propose the measurement model in the field of internet banking for e-service quality and e-customer satisfaction. Majority of banks have introduced internet banking as a guarantee to their customers to maintain a vying quality of service. Based on the proposed model bank can predict to measure e-service quality and e-customer satisfaction. This research examined the relationships between eservice quality dimensions and e-customer satisfaction by broadening previous researches in the field of internet banking service quality. The research concluded that each bank that implemented internet banking has met the customer requirements, but the design was still not comfortable with customers. As majority of customers were using smart phone to access their internet banking, and if the banks did not provide mobile version for their internet banking, can cause problems for customers to access and use it. It also found that that in general satisfaction levels are similar in each banks that provide internet banking. The study’s results, advised banks to develop different services through internet banking, e.g. mobile internet banking through mobile phones like Android, IOS, Blackberry and Windows Phone.
Aftab Alam (2013) examined the correlation between online banking services provided by different banks in Riyadh (Saudi Arabia)in a research study titles “Online Service Quality and Customers’ Satisfaction: A Case Study of the selected Commercial Banks in Riyadh (Saudi Arabia)” different dimensions of the SERVQUAL model for example tangibles, reliability, responsiveness, and empathy have been identified as carrier of customer satisfaction. With descriptive statistics and dichotomous logistic regression model the relationship between each individual dimension and customer satisfaction was investigated. Data was collected with the help of Purposive sampling , of 100 respondents from only those customers’ who are familiar with online banking services. The study revealed that these dimensions are the significant factors to bring overall satisfaction of the customer though the significance levels was different. Out of all dimensions proposed in this study, tangibles and reliability were found to be the most crucial dimensions category to increase customers’ overall satisfaction.

The studies which provide information on the impact of s of E- Banking Services on the profitability of the Banks
Ahmad Zakaria Siam (2006) in his study “Role of the Electronic Banking Services on the Profits of Jordanian Banks” analysed the impact of electronic banking on bank’s profitability. The factors that make this study essential and one of a kind is that, it discusses solely the topic of the effects of electronic banking on banks profitability. Many other studies discuss the topic in general term. The study found out the impact of electronic banking on banks’ profitability will be feature of the short run due to the capital investment by the banks on infrastructure and training. But it will be positive on the long run. In his study he suggested that in order to have customer satisfaction and increase in banks profitability banks have to expand their electronic services in a planned and strategic way for the long run.
Sana Haider Sumra (2011) in her study “The Impact of E-Banking on the Profitability of Banks: A Study of Pakistani Banks” covers twelve banks across Pakistan. It was a qualitative study that examined different objectives which ascertained the performance of banks majorly in terms of profitability. It also explained how provision of services gets impacted by customers’ literacy; from banks’ perspective. It also discussed the basic motive of banks to adopt e-banking services. The findings of the study showed that e-banking has enhanced the profitability of banks. It has enabled the banks to cut their costs and gain profits even in the short span of time. The study did not regarded illiteracy of customers as a major hindrances in provision of their products and services. For banks, the one of the main reasons to adopt e-banking is to increase their customer base and to retain them. The profitability of banks has magnified by transitioning to e-banking medium.

NOTEWORTHY CONTRIBUTIONS IN THE FIELD OF PROPOSED RESEARCH WORK:
Surabhi Singh and Renu Arora (2011) attempted to study customers’ perception of service quality of transaction based and IT enabled banking services of fundamental public sector, private sector and foreign banks. The study “A Comparative Study of Banking Services and Customer Satisfaction in Public, Private and Foreign Banks” performed research analysis, with the objective to analyze the extent of use of services, especially the IT enabled services in these banks. It also analyzed the main factors impacting customer satisfaction with regard to the quality of services. The study found that a small number of respondents were using IT enabled services other than ATM. Security, lack of facility, improper awareness and so on were found to be the reasons for not using IT enabled services.

Maya B. Lohani and Kamlesh Kumar Shukla (2011)carried out a research on to analysis of services provided by ICICI and Bank Of Baroda (BoB) banks and find out the level of satisfaction about the services provided by both the banks among its customers. This study attempted to help the bank in analyzing the reasons as to why the customers are not using the services that are provided by the bank, to finalize its marketing strategy by suggesting few marketing steps that would help the bank in obtaining larger market share and also to frame certain competitive marketing strategies to outperform the market leader. The study identified that the perceived quality of services provided by ICICI banks is better than Bank of Baroda in Lucknow city . It is evident that public sector banks have a strong presence in the market, but in recent times they are facing stiff competition from private sector banks in the range and quality of services offered. In the present scenario banks have to be service oriented in order to keep ahead of competition. Public sector banks must focus on providing latest information to customers with regard to the new service rules efficiency standards with reference to the strategies adopted by private sector banks.

Dr. Vijay M. Kumbhar (2011) carried out a study about the customers perception of internet banking services provided by public and private sector banks in India in his study. The research study made an attempt to assess the correlation between the demographics and customers’ satisfaction with regard internet banking. It also examined relationship between service quality and customers’ satisfaction as well as made a comparison of satisfaction levels with respect to internet banking service provided by the public sector bank private sector banks. The study found out that, demographics of the customers are one of the most important factors which influences the use of internet banking services. Overall results show that highly educated, a person who are employees, businessmen and belongs to higher income group and younger group are using this service, however, remaining customers are not using this services. The research concluded that the satisfaction among employees, businessmen and professionals are higher as far as internet banking services are concerned. There is considerable variation in the customers’ perception about internet banking services provided by the public and private sector banks. Private sector banks provide better service quality as far as internet banking is concerned in comparison of service provided by the public sector banks. Hence, improving the internet banking services according to the expectations of their customers has become compulsory for public sector banks .

Vishal Mohan Goyal & Mrs. Gania Goyal (2012) “Customer perception towards Internet banking w.r.f to private and foreign banks in India” states that Internet technology works as a crucial weapon to transform the way they banks operate, deliver, and compete against each other. As a result Online Banking was initiated as a medium where bank customers could carry out their financial transactions electronically through their banks’ Web sites. The differences between bank customers risk perceptions using Internet Banking and those not using Internet Banking was studied. It indicated that among Customer who were not using the internet, risk perceptions with regard to financial, psychological and safety risks were more significant than those using internet banking. Customers who did not adopt internet banking were of the opinion that they would be defrauded when using this service. Therefore they are particularly cautious about high risk expectation while transferring money from and between accounts.

CHAPTER – III
RESEARCH DESIGN
CHAPTER-III
RESEARCH DESIGN
The present study is an attempt to perform an economic analysis of consumers’ perception of e-banking services in Jabalpur. This chapter discusses the research methodology of the thesis. It discusses the scope, objectives, period and sample of the study etc. The statistical techniques used for analysis of the data and limitations of the study have also been included.

3.1OBJECTIVES OF THE STUDY
Following are the objectives of the study :
To identify the most used e-banking service by the customers of public and private sector banks in Jabalpur
To identify the gap between consumers’ expectation and consumers’ perception with regard to e-banking services provided by public and private sector banks in Jabalpur
To compare consumers’ satisfaction with regard to e-banking services provided by public and private sector banks in Jabalpur
To examine the impact of consumers’ satisfaction on consumers’ loyalty in public and private sector banks in Jabalpur
To make recommendations to improve consumers’ perception in accordance with customers’ expectations to increase customers; satisfaction and customer loyalty.

3.2SAMPLE PERIOD
In the Indian banking sector adopted electronic banking system mainly from 2003 onwards. Although ICICI Bank was the first to introduce internet banking in 1997, yet the services like Real Time Gross Settlement System, National Electronic Fund Transfer, Cheque Truncation System were introduced after the year 2003 only. The growth of e-banking in Jabalpur could evidently be seen from 2006 onwards. For this study, I will only discuss the growth of e-banking services public and private sector banks and their consumer’s perception with regard to Risk and Service Quality in Jabalpur district over the period of 2008- to 2016.

3.4 SCOPE OF THE STUDY
The scope of the study includes scheduled commercial banks. The scheduled commercial banks are categorized into the public sector, the private sector, foreign banks and regional rural banks. For the data collection, only public and private sector banks in Jabalpur are taken into consideration.
3.5SAMPLE OF THE STUDY
The core focus of the study will be a comparative analysis of e-banking services and the consumer’s perception with referncce to Private sector banks and Public Sector Banks of Jabalpur District. From the available private and Public sector banks in Jabalpur, Total of 400 respondents were randomly selected 200 for private sector banks and 200 for public sector banks to carry out the comparative analysis.

3.6SOURCE OF DATA
The study is based on both primary and secondary data for the analysis.

3.6.1Primary Data
The collection and analysis of raw data is a vital part of the research. The strength of the analysis depends on good quality data that in turn stems from a good design of the data collection instrument, i.e. the questionnaire, and of the collection procedures. A crucial part of good research design concerns making sure that the questionnaire design addresses the needs of the research.
This chapter overviews the process of designing the questionnaire, used to collect primary data for this study. A structured and self-administered questionnaire was designed to find out the impact of various demands (consumer’s expectation) and supply factors (consumers’ satisfaction level) on the service quality of banks which in turn builds consumer’s perception about E-banking services of the respective banks. Collection of Primary data was done with a careful & three-phased approach.

3.6.1.1 Exploratory Phase:- Pilot Study
The exploratory survey was carried out with 30 respondents ( bank customers )to understand the attitude of its customers towards e-banking services and their requirements or expectations with regard to e-banking services. This phase helped us in gauging the attitude of both users and nonusers of e-banking services towards banking transaction. The respondents/ users were chosen by random sampling method irrespective of the private or public sector banks. The only requirement for the customers to be chosen for the study was, to have a bank account in any one of the Indian banks. First general information was asked such as age, education, income group, occupation etc. During the general inquiry, respondents were given the knowledge of factors included in e-banking services. The factors included in E-banking services are- use of internet banking for fund transfer, online bill payment, online purchase or any other banking transactions which can be done at a bank branch by using any electronic device ( PC computer, laptop or mobile). Based on their response they were categorized into two segments-(1) e-banking users (2) nonusers. Nonusers of e-banking were then catechized about possible factors which may discourage the use of e-banking facilities. Their opinion on various e-banking aspects, such as background knowledge, ease of access, issues related to security, cost of transactions and satisfaction level with traditional delivery systems and if they intend to use e-banking in the future. Respondents rated these factors on a Likert-type scale from one to five.

Users of E-banking services were examined about the frequency of use of e-banking services, the purpose of use and whether they would recommend the service to others. Both users and nonusers of the e-banking facility were also requested to share their baking experience and recommendations for improvements in future.

3.6.1.1.1Findings of the Exploratory Phase
3.6.1.1.1.1E-banking Users In Jabalpur:
The finding with regard to e-banking users’ opinion can be seen from the below
Table 3.1-E-banking Users
(18 out of 30= 60 % of total respondents of the exploratory survey)
1 Frequency of use Weekly Monthly Rarely Total No of Users 8 6 4 18 % of Total E banking users 44.4% 33.3% 22.2% 100% 2 Purpose of Use Fund Transfer Utility Bill Payments Online bookings online shopping Others
No of Users 14 8 12 7 4
% of Total E banking users 77.8% 44.4% 66.7% 38.9% 22.2%
3 Time Span Less than 1 year 2-3 year more than 3 years Total No of Users 8 6 4 18 % of Total E banking users 44.4% 33.3% 22.2% 100 4 If they would recommend Yes No Total No of Users 11 7 18 % of Total E-banking users 61.1% 38.9% 100% 5 Overall satisfaction Satisfied to some extent Highly Satisfied Dissatisfied Total No of Users 13 2 3 18 % of Total E banking users 72.2% 11.1% 16.7% 100% 6 Expected Changes Free of Cost Better Security Easy Access More Informative No of Users 10 7 14 13 % of Total E banking users 55.6% 38.9% 77.8% 72.2% Findings of Exploratory Survey about E-banking Users In Jabalpur:
A large proportion of the e-banking users (61%) confirmed that they would recommend e-banking to their acquaintances, which indicates future prospects of attaining more e-banking users in the future.

Majority of the users (44%) use e-banking services on a weekly basis.

Mostly e baking user use the services for fund transfer app approximately 77%, followed by online bookings 66%. Only 38% of users use e-banking for online shopping, which indicates that cash on delivery is still the most famous mode of payments among online shoppers in Jabalpur.

Approximately 44% of the respondents are using banking services for less than 1 year, which is higher than the people using it for 2-3 years (33%). This indicated the adoption rate of e- banking services is increasing.

Though 72% of the e- baking users were satisfied but only to some extent. Only 11% of users were found fully satisfies. This indicated that there are many rooms for improvements to increase customer satisfaction with regard to e-banking services in Jabalpur
55% of e-banking users in Jabalpur expect these services to be free of cost, which indicates that to promote e-banking usage in Jabalpur, banks need to reduce cost or initiate more cash back offers.

Easy access and more information of e-banking are most expected aspects. Approximately 78% 72 % respectively of the users expressed these as a priority. This also indicates that if customers have adequate information banks e-banking services and they are easily accessible, the user would not mind paying some additional charges for using e baking services, as people who expected e-banking services to be free are 55% (lesser than who expect easy access and more information). Hence, if banks want to increase their income through e-banking transaction charges their services must be easy to use and customers should be well aware of e-banking services.

3.6.1.1.1.2Non-Users of E-banking services in Jabalpur :
Nonusers of banking services were interrogated to gauge the factors which inhibit the use of e-banking services. These factors are shown in the following Table
Table 3.2 Non Users of E-banking Services
(12 out of 30= 40 % of total respondents of the exploratory survey)
1 Difficult to Use Lack of IT Literacy No Access to Computer Total
No of Users 7 5 12
% of Total E-banking users 58% 42%  
2 Lack of information About offered Service About Benefits Total
No of Users 4 8 12
% of Total E-banking users 33% 67%  
3 Internet Security Disbelief Trust Don’t Trust Total
No of Users 7 5 12
% of Total E-banking users 58% 42%  
Findings of Exploratory Survey Of Non-Users of E-banking services in Jabalpur:
Among nonusers of e-banking services in Jabalpur, 58% of the people find it difficult to use due to inadequate IT literacy skills and remaining 42 % find it difficult as they don’t have electronic devices such as a computer, laptop etc to use banking services electronically.

67% of nonusers don’t use e-banking as they are unaware of the benefits of the e-banking. They seem to believe that e-banking services are more beneficial for the banks rather than to consumers. This emphasizes the need for e-banking services recommendation by acquaintances rather than advertisements. Banks might consider initiating referral bonus schemes.

Interestingly it is observed that out of nonusers of e-banking services of e-banking 58% trust the internet security system, still do not use e-banking services. This factor does not explain exclusively why people do not use e baking services.

3.6.1.2 SECOND PHASE: QUESTIONNAIRE DESIGN AND RELIABILITY TEST

The second phase of the study aims to analyze the e-banking services, in accorddance with service quality dimensions, which is an integral part of the analysis. During the pilot, study respondents were asked to share their experience/ feedback about the concerned bank. This intended to examine consumers’ expectations of the bank and if those expectations were met. Feedback such given constructed the base for the further research.
Table 3.3 Some of the Feedbacks Given by Customers During Exploratory Phase
Sr. No. Feedback Specific Expectations
1 “Whenever I use online net banking, the password never comes on my registered mobile number. You cannot rely on this* banks net banking in case of emergency. I need a bank which gives me 100% assurance about timely OTPs.”
“I bought a card from —* Bank & was told that was told by 8 pm same day the card will get activated and I paid full amount equivalent to$1781. I was on my trip to the united states of America in the weekend and to my surprise the card was neither activated nor loaded with amount. I returned and I visited a branch with the card & had an argument. Reliability
2 In all these six years, I had probably only two issues which took more than 2 days to resolve, one of which involved the closure of my credit card. The issue took time because I had a credit card linked to my FD account and was resolved after I got in touch with the service manager. On another occasion, a cash deposit was made on a wrong account(last two digits of acct got interchanged and the cashier initiated the deposit without checking the details – causing the cash to go to a wrong account). This issue also took more than one day to resolve but didn’t cause me many problems, the customer service provided me the contact details of the regional manager who spoke to me over the phone and promptly assisted me in resolution. Overall, one of the best customer services among private banks. Responsiveness
3 The bank is regularly creating problems in case of remittance made for FCNR or NRI deposit. They will not credit preferential rates and in case of FCNR request, they will make some excuse and arbitrarily use some exchange rate not even published on their site and convert the deposits.
Trust
4 Whenever I transact online using its net banking, the online transaction password never comes on my registered mobile number. You cannot trust …..* net banking in case of emergency. Ease of Access
5 It’s Three years now since I am using ……* bank as my salary gets deposits in this bank. I am using Debit card, for 2 years. The Fuel Surcharge waiver in not working. I was not getting the promised feature of this card. And still the charges of this card had increased by Rs 100+ taxes. There are a lot of changes made in the policies(regarding Platinum Edge Debit Card) Issue is not with the policies, but the changes made in the policies are never informed. Since the time I am using the debit card at online merchants and at the fuel stations, I was not getting the benefits of the scheme as per my knowledge. After reading the policies l realized that all the polices now have terms and conditions attached. Not even a single message(on mobiile/email) was sent by the bank to go through the new policies regarding the changes made in Debit and Credit card. Lack of Information
6  I used to transfer funds from ……*bank account to my other account in an other bank. I have done this a few times successfully in the past. After a gap of a few months, I repeated this with a small amount 2 years ago. The problem is that this amount never got credited to my other account even after 2 and half years. Bank promptly deducted the amount on the day itself. I must have spent at least half of the amount I transferred in enquiring bank and other banks and also RBI in this regard. The end result is none. The point is that the response and information given by bank for this transaction is just pathetic. Security
With the help of the list of feedback/experiences shared by customers services, quality dimensions were identified to identify the gap between consumers’ expectations and consumers’ perception.
3.6.1.2.1 Selected SERVQUAL Dimensions For the study
For measuring of the gap between consumers’ expectations and consumers’ perception, a model named SERVQUAL was developed by Parasuraman (1988). The model included ten components. SERVQUAL furnishes a tool for measuring and managing service quality. Through this model, service quality is expressed as a multidimensional construct. In the initial formulation, Parasuraman et. al (1985) explained ten components of service quality. In their 1988 work, these ten dimensions were reduced to five dimensions.

From the customer feedback obtained through the pilot survey, it was found that below mentioned service quality dimensions play a major role in determining the expectations of the customers in Jabalpur with regard to e-banking services. For understanding the impact of electronic banking on consumers’ perception of service quality, a questionnaire has been developed which included following service quality dimensions
Communication
Security
Ease of Access
Curtsey and responsiveness
Trust and Reliability
After identifying service quality dimensions, a detailed and structured questionnaire was prepared to get the required information from respondents for further analysis. Following table shows the questions to check each dimension of the service quality. These questions were the reworded for testing expectations and perception-
3.6.2 SECONDARY DATA
Secondary data is collected from the authorized Indian statistical database – RBI, Economic Survey of India, Working Papers, Review of World Economics, The Indian Journal of Banking, various IBA Bulletins published by Indian banks, statistical tables relating to banks of India, Trends and Progress Reports of RBI, and annual reports of the banks and from the website of google.com.

3.6.3 THE STUDY VARIABLES
This questionnaire explored the factors for the analysis of consumer’s perception of E-banking Services. In developing the number of statements measuring each dependent and independent variables two issues were considered. The first issue was the length of the questionnaire and the second was generating a sufficient number of items to represent both the factors.

3.6.3.1Independent Variables
This included two independent variables: consumer’s expectation & consumer’s perception i.e. demand ; supply factors. The literature and feedback from the interviewees from the pilot phase of the interview were used in developing statements measuring each factor. These factors were expanded to identify the various dimensions of service quality provided by banks. The questionnaire also aimed at measuring consumer’s loyalty towards banks in both public and private sector banks.

3.6.3.2Dependent Variables
In this quantitative study four dependent variables were recognized:
Consumers’ Perception: Consequence of Service Quality
Consumers’ Satisfaction: Result of Expectations met
Consumer’s Loyalty: Result of the degree of satisfaction of consumer
3.6.3.3Other Variables
These variables represent the profile of the sample which includes age, gender, socioeconomic status expressed by education, occupation and income level. Age categories started from 18 years which is the minimum legal age to deal with the bank officially. Education categories include till secondary, graduate and postgraduate. This was done to clearly understand the impact of uneducated and poorly educated on the usage of E-banking service. The annual income categories are taken as bifurcated as per income tax payment bracket 2014-15. The occupation categories include Service, self-employed and others (housewives, students etc). All professionals are segregated under service or self-employed. Also, relationship with the bank, usage pattern of e_banking services and type of bank variables were placed in the questionnaire to understand the context in which the impact of consumers’ perception on consumers’ satisfaction and loyalty could be maximized.
3.6.4 Questionnaire Layout (Annexure: 1 )
A questionnaire was designed to achieve the main objective of the study which related to performing an economic analysis of consumers’ perception of e-banking services. The data required for conducting this study was collected using a self-administered questionnaire specially designed to achieve the said objective, which was drawn from customers of both public and private sector banks in Jabalpur. All the questions in the questionnaire are compulsory to answer by the respondents.

Firstly Section A of the questionnaire is related to the demographic information. It contained information about the respondents regarding their gender, marital status, educational qualification, occupation and household income.

Section B of the identifies which of e-banking services were majorly used by customers of private and public sector banks in Jabalpur. This also checks the frequency of using such e-banking services. The following table shows the list of e-banking services classified for the purpose of this study-
Table 3.4 List of Electronic Banking Services
Sr. No. Electronic Banking Services
1 Internet Banking Services
Balance Enquiry and Statement
Transaction History
Online Transfer of Funds
Prepaid Mobile Recharge
Open Fixed Deposit and Recurring Deposit
Request for Cheque Book
Stop Payment Request
Request for Debit Cards
Deactivate/ Activate ATM/ Debit Card
Change Password
Bills Payment
Loan Details
Online Shopping
Ticket Booking
Demat Holdings
Convert to EMI
Customer Correspondence
Demonstration of I-Banking
2 Phone Banking Services
Enquire Your Account-Balance
Statement of Account
Request for Fund Transfer
Mobile Banking Registration
Stop Cheque Payment Instructions
Customer Inquiry
3 Mobile Banking Services
Account Balance
Making Payment of Bills
Details of Credit Card Balance
Loan Information
I-Mobile
Purchase and Redemption of Mutual Fund Units
Last Three Transactions
4 ATM Services
24 Hours Access to Cash
Transfer Fund Between Accounts
View Account Balances and Mini Statement
Pin Change Option
Section C of the questionnaire has the questions based on the five service quality dimensions chosen for this study to check consumers’ expectations with regard to e-banking services in Jabalpur. These questions are scaled on a 5 points Likert Scale.
Section D of the questionnaire includes questions based on the five service quality dimensions chosen for this study to check consumers’ perception with regard to e-banking services in Jabalpur. These questions are scaled on a 5 points Likert Scale.
Below table shows the section C & D of the questionnaire in relation with service quality dimensions.
Table 3.5 Demand and Supply Factors & Service Quality Dimensions
Sr. No I would use E-Banking services more if- “Consumers’ Expectations” Service Quality Dimensions Using E-banking Service I found that – “Consumers’ Perception”
Demand Factors Supply Factors
1 The bank should keep me up to date with information about its products and services through email/SMS/ phone banking etc. Communication My bank keeps me up to date with information about its products and services through email/SMS/ phone banking etc.

2 Bank’s web site should provide enough information about new E-banking services. Communication My bank’s website is always updated with the latest information.

3 In case of any change in services, rules, regulations, they should be promptly communicated by the bank. Communication My bank promptly communicates every change in services, rules, and regulations.

4 Banks website/mobile app should provide info in my local language. Communication My bank’s website/mobile app provide info in my local language.

5 Banks e-banking services should assure the customer that the problem will be handled. Communication Banks e-banking services assure the customer that problem will be handled.

6 I should get instant alerts by SMS /mail for any E-banking transaction. Security My bank provides instant alerts about any E-banking transaction through SMS/mail.

7 The bank should publish important info/tips on how to maintain security while using either of the e-banking tools. Security My bank provides enough info./tips to maintain security while using any E-banking tool.

8 Bank through password or OTP facility should ensure the physical security of the transaction. Security My bank ensures the physical security of
the transaction through password or OTP.

9 The bank should provide enough security measures for its Mobile banking app. Security My bank ensures security measures for its mobile banking app.

10 I must be assured that my personal info. that I filled in KYC form of the bank will not be revealed. Security I am confident that my personal info. (KYC form)is not revealed to anyone,
11 I case of loss of debit/credit cards
my card should be blocked immediately. Security My bank immediately blocks the debit
or credit cards in case of reporting a loss
of card.

12 E-banking service is accessible via Internet banking, Mobile banking, EFT, ECS, ATM. Ease of Access E-banking service is accessible via Internet banking, Mobile banking, EFT, ECS, ATM.

13 My banks operating hours convenient to resolve E-banking Problems. Ease of Access My banks operating hours convenient to resolve E-banking Problems.

14 It provides convenient location of service facility(location of ATM, POS terminals) Ease of Access It provides convenient location of service facility(location of ATM, POS terminals)
15 My banks mobile app is very user friendly. Ease of Access My banks mobile app is very user friendly.

16 Online purchase of goods and services including online payment is easier Ease of Access Online purchase of goods and services including online payment is easier
17 It is easy to make any bill payment using e-banking than physical payment. Ease of Access It is easy to make any bill payment using e-banking than physical payment.

18 In case of any problem, the bank should show sincere interest in resolving it. Responsiveness ; Courtesy My bank puts sincere efforts to solve e-banking issues.

19 When I call to the customer care I
Should not wait too long to get my problem solved. Responsiveness ; Courtesy It is easy to get through the customer care of my bank to solve E_ banking services.

20 When I visit the branch for help with
E-banking, I should immediately attend by one of the bank’s employees. Responsiveness & Courtesy When I visit the branch for any help with E-banking services, I am immediately attended by their employees.

21 The bank should not have any hidden cost for using its E-banking services. Trust and reliability My bank never charges any extra amount apart from what is required to pay.

22 I should get the accurate bill for all my e-transactions. Trust and reliability All my credit card bills/ e-statement are accurate.

23 I should be assured that any extra payment will be waived off in the current/next bill. Trust and reliability I am confident that even if any extra amount is charged by the bank, it will be waived off in the next bill.

24 I get OTPs or Security codes (required for performing any e-banking transaction) instantly. Trust and reliability I get OTPs/ Secure codes/password immediately in case of making any payment using E-banking.

* Different color identifies different dimensions
**Service Quality dimensions are arranged randomly, the order of dimensions not indicate their importance in any way.

3.6.4 .1 Translation of the Questionnaire:
In a short period of time plethora of information/ data can be gathered through survey method. The accuracy of the data is very important for any kind of research. The quality of the survey would not be at the desired level if respondents feel uncomfortable or not free to express their opinions. Any improper cultural or linguistic reference in the questionnaire may be wrongly interpreted by the respondent and will lead to misleading answers. In order to achieve accurate results with conceptual and semantic equivalences of the original questionnaire, the questionnaire in English was translated in the local language of Jabalpur, Hindi. Hindi translation ensured that even poorly educated respondents will be able to understand the questionnaire. Though there are people who could understand the questionnaire as it is drafted in English, yet considering the fact that majority of the people in Jabalpur prefer and are comfortable communicating in Hindi, the questionnaire was translated. Slipshod translations can ruin the research project. Therefore to ensure the accurate translation, two experts, who have good knowledge of both the languages English and Hindi along with the knowledge of the banking industry were assigned the task of translation. (Annexure:-2)
3.6.5 Main Quantitative Techniques Used in the Study
The following statistical tools were employed for the analysis of data:
1.Descriptive Analysis: Measures of central tendency such as mean, standard deviation, weighted average score, ranks, etc. were worked out to study the nature and distribution of scores on different variables.

2. T-test: In order to measure the distinctiveness between two constructs, the t-test has been carried out. The test statistics, ‘t’, is calculated from the sample data and then compared with its probable value based on t-distribution at a specified level of significance for concerning degrees of freedom for accepting or rejecting the null hypothesis.

3. Cronbach Alpha: This statistical tool is used in factor analysis to measure the reliability of data. If the value of Cronbach’s alpha is greater then 0.5 then the data for
the said purpose is reliable for factor analysis.

4. Kaiser-Meyer-Olkin (KMO) measure of sampling adequacy and Bartlett’s test of
sphericity help in measuring the reliability of data
All statistical calculations have been made by the use of Microsoft Excel and R software.

A brief description of some important tools and the formulas is given as under:
1. Mean (X) = ?x
N
? = symbol for summation
Where ?x = sum of series of observation
N = number of items

2. S.D. (?) = ? ?x2/N
Where, ? = (x – x), x is the mean of the series and (x – x) is the deviation from
the mean
N = number of items
3.6.6 Reliability Analysis
Prior to the analysis of results, the research instrument was tested for its reliability. The internal consistency of the grouping of the items was estimated using reliability co-efficient called Cronbach’s alpha and alpha value of 0.50 or above is considered to the criterion for demonstrating internal consistency of new scales and established scales respectively.

The Cronbach’s (alpha) ? value of service quality dimensions more than 0.5 testifies
strong scale reliability.

Cronbach’s ? is defined as
N (?2x – ?N ?2yi

i=1

?2x
Where, N is the number of components, ?2
x is the variance of the observed total test
scores, and ?2
y is the variance of component i.

3.6.7 Limitations of The Study
Every research work encounters certain limitations, and this study is not an exception. The data used for the analytical purpose is gathered through primary and secondary data sources for the period. Any primary data collected through a questionnaire experience the basic limitation of the possibility of discrepancy between what is recorded and what is the truth, irrespective of the how conducting the interviews with utmost care. The present study also suffers from this limitation because the people might not have deliberately reported their true opinion due to some biases. Thus, the validity and reliability of the results will depend upon the validity and reliability of the data provided by the customers and by the secondary source. The secondary data based information collected for this study carries all the limitations inherent in such data. Moreover, the responses for the study have been solicited from the Jabalpur district only. The expectations of the customers in Jabalpur may vary from those of the rest of India. Another limitation is that the customers of only six banks were selected for the present study to compare the service quality of the public and private sectors. As a result, the generalization of the findings of the present research should be considered carefully.
The primary data for the research was collected before the effect of demonetisation. Therefore the designed quetionnaire and the analysis carried out, does not consider the effect of demonetisation.

CHAPTER IV
GROWTH OF E-BANKING SERVICE AND INFORMATION ;
COMMUNICATION TECHNOLOGY IN INDIA
4.1 GROWTH OF E-BANKING SERVICES IN INDIA
The Indian banking industry, keeping in pace with the approach of the country’s business, has undergone a sea of change in the past few years. With the rapid growth in the services industry across the economy, customers have been exposed to higher standards of service and customer orientation. The shift in Indian banks in the last few decades has been extraordinary — from local branch banking to the global presence and anywhere-anytime banking. Most of the regular banking transactions can today be carried out through the internet and mobile phones. Sustained reforms and information technology (IT) have played a pivotal role in this transformation.

The roots of banking can be traced back to ancient times, starting with primitive money lending and bartering practices for agriculture and commodity. Banks started operating and gained a great importance after the industrial revolution in Europe in the 17th century. In India, banking as an institution originated in the late 18th century and primarily catered the needs of the British. After independence, in 1969 the nationalization of major private sector banks made banking believable and handy for the unbanked population in India.
The liberalization and the economic and financial sector reforms introduced in the country since the early 1990s resulted in the creation of an efficient and competitive banking system. Liberalization has opened the turf to new players and brought greater competition among banks as it welcomed new private banks in India. All these banks were quick to modify the emerging technology and were competitive in winning customers by providing professional services. This infused a sense of urgency in Indian banks (Private and Public) to mend their ways, which in turn completely revitalized banking operations in India.

4.2 ROLE OF RESERVE BANK OF INDIA IN THE GROWTH OF E-BANKING
Development of modern payment and settlement systems initiated with computerization in the banking industry in India. The emphasis was given on commercially important centers which account for 65 percent of the banking business in terms of value. To serve bulk and repetitive payments Electronic Clearing Service (ECS) was launched in the 1990s. Amendments in the payment and settlement systems have been initiated by Reserve Bank’s three dimensional approach 1.consolidation,
2.Developmen
3.Integration.
To manage various credits to beneficiary accounts National Electronic Clearing cell was started. National Electronic Clearing Service (NECS) works on the basis of core banking solution of its member banks. In the year 2000, there was a propelling need of consolidation of the existing payment systems in the form of Computerised Cheque Clearing (CCC), Electronic Clearing Services (ECS) and Electronic Funds Transfer (EFT). Emphasis continued to be given to increase the levels of usage of electronic funds movement system.
In November 2005, a robust electronic payment system was launched to allow one to one fund’s transfer requirement of individuals and corporate. The National Payments Corporation of India was established in 2009 for all retail payment systems (under section 25 of the Companies Act). In order to consolidate and integrate the multiple banking systems into a national standard business process for all retail systems it was established.
The ever-increasing number of mobile phone users in India exceeds the number of cardholders and their network covers a very large area. During 2012-13, 53 million transactions valued at around `60 billion were transacted, thus registering a growth of 108 percent and 229 percent, respectively, over the previous year. The document elucidated the possibility of the movement away from cash transactions to electronic transactions, leading to their goal of a ‘less-cash economy’
4. 3 Banking Sector Growth indicators
4.3.1 Growth Indicators Given By World Bank
In 2006 World bank as a part of a series on how the Financial Sector Development Indicators (FSDI) enhances the assessment of banking sectors has expanded the range of dimensions beyond size to cover access, efficiency and stability.
Traditional indicators used for assessing the development of a country’s banking sector were:
• The ratio of M2 to GDP
• The ratio of private credit to GDP.

Both of these measures have been particularly used to examine the causal effects of financial development on economic growth of a nation.

New indicators given by Financial Sector Development Indicators (FSDI) assesses banking sector growth beyond size and will help in examining access, efficiency and stability of banking systems. Performance of Banking systems can be judged differently on each of these four dimensions. Therefore it is mandatory to consider these dimensions jointly and in various combinations. The as new indicators for the assessment of banking system are summarized in the table below.

Table 4. 1: New indicators for Banks Performance
for going beyond size
Size Access Efficiency Stability
Deposit money bank assets to GDP
Central bank assets to GDP
M2 to GDP
Deposits to GDP
Intermediation
Private credit to GDP
Private credit to total credit
Private credit to deposits Broad access
Branch and ATM density
Average loan and deposit size
Loan ; deposit accounts per capita
Household access
% of people with a bank account
Firm access
Collateral needed for loan
% of firms with financing constraints Profitability
Return on assets
Net interest margin
Efficiency
Operating costs
Lending spread
Days to clear the cheque
Competitiveness
Concentration ratio
Ownership Capital adequacy
Capital adequacy ratio
Asset quality
Lenders
Non-performing loans
Real credit growth
Loan concentration
Large loan exposures to capital
Borrowers
Firm leverage
Interest coverage ratio
Household debt to GDP
Liquidity
Liquid asset ratio
Other
Net FX position-to-capital
Default probability of banks
Source: Financial Sector Development Indicators (www.worldbank.org)
4.3.2Growth Indicators of E-banking Services in India
E-Banking transactions such as debit/credit cards, Immediate payment services (IMPS), National Electronic Funds Transfer (NEFT), and Real Time Gross Settlement (RTGS), are carried out through various e-channels moving Indian economy from a cash-based economy to A cashless economy. The initiative of the Government of India name Digital India has envisioned to convert India into a knowledge economy and a digitally empowered nation . One of the professed roles of Digital India is “Faceless, Paperless, Cashless”. The growth of e-banking in India can be analyzed based on the trend analysis of progress in payment systems in India over the years.

4.4 TREND ANALYSIS OF PROGRESS IN PAYMENT SYSTEMS IN INDIA
The Reserve Bank’s continued to make efforts towards the introduction of newer digital modes of payment. The analysis of Trend and Progress of Payment Systems in India over the years will help in understanding the trends in total retail payment system’s move from paper base to an electronic base. The structure of total retail payments made by Banks in India can be presented as shown below-

4.4.1Analysis of Trend in a Paper-based clearing in Indian Banking Sector
Paper-based clearing of retail payment system includes cheque truncation system (CTS), MICR(magnetic ink character recognition) clearing ; NON-MICR clearing. As seen in the below table and figure there has been a decline in paper-based retail payment clearing in banks in India. This is an indicator of the growth of electronic-based clearing in the Indian banks.

Table: PAPER CLEARING (VOLUME IN MILLION)
YEAR 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Cheque Truncation System(CTS) 160.4 180 275.116 591.4 964.9 958.4 1111.9
MICR Clearing 994.6 934.9 823.3 440.1 22.4 0 0
Non MICR Clearing 232.3 227 215.3 225.9 208.5 138 94.8
Total Paper Clearing 1387.3 1341.9 1313.716 1257.4 1195.8 1096.4 1206.7
Note:- there is no Magnetic Ink Character Recognition (MICR) due to total cheque volume migrating to the cheque truncation system (CTS),

source: www.rbi.org- Payment and Settlement Systems and Information Technology
4.4..2Analysis of Trend in Electronic based clearing in Indian Banking Sector
4.4.2.1Trend in Total retail electronic Clearing
Retail Electronic clearing includes ECS (Electronic Clearance Service Dr. ; Cr.), National Electronic Funds Transfer (NEFT), Immediate Payment Service (IMPS) ; National Automated Clearing House. Below mentioned table and figure has shown an increase in the total retail electronic clearing over the years.
Table: TOTAL RETAIL ELECTRONIC CLEARING
  (VOLUME IN MILLION)
YEAR 2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
Total Retail Electronic Clearing 232.3 512.5 694.1 1108.3 1687.4 3141.5 4205
Total Card Payments (Debit Card +Credit Card+ Prepaid Payment Instruments) 502.2 647.5 678.1 1262.1 1737.7 2707.3 5450.1
Total Electronic Transaction 734.5 1160 1372.2 2370.4 3425.1 5848.8 9655.1

source: www.rbi.org- Payment and Settlement Systems and Information Technology
4.4.2.2Total Card Payments Trend
Card payment includes the payment made by using a debit card, credit card and prepaid Instruments (PPI). Below shown table has been prepared form the data available under Table IX.1: “Payment System Indicators – Annual Turnover” in RBI’s Annual Report for different years. The table and figure show an increase in the payment made by various cards. This indicates promotion of digital payment and Indian economy’s movement towards a cashless society.

Table: TOTAL CARD PAYMENTS
(VOLUME IN MILLION)
YEAR 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17
CREDIT CARD 320.0 396.6 509.1 615.1 785.7 1087.1
DEBIT CARD 327.5 469.1 619.1 808.1 1173.6 2399.3
PREPAID PAYMENT INSTRUMENT 30.6 66.1 133.9 314.5 748.0 1963.7

source: www.rbi.org- Payment and Settlement Systems and Information Technology
4.5 GROWTH OF INFORMATION AND COMMUNICATION TECHNOLOGY IN INDIA
Technology is changing at a blurring rate. We are seeing game-changing advances in many areas from user interfaces to Internet TV. It’s not just transactions that are moving to the Internet but conversations and relationships, and Banking is no exception to this. Technology has brought about a complete transformation in the day to day working of banks and delivery of banking services. In former times every banking transaction required a visit to the bank branch. Today, the majority of transactions can be carried out from the comforts of one’s dwelling and customers are not required to visit the bank branch for anything. Technology is no longer a facilitator, but a business driver. The expansion of the internet, mobiles and communication technology has added various ingredients to banking. Indian banks are also no longer geographically restricted as they have worldwide operations now. IT has been instrumental in the global expansion of banks. India witnessed a sustained period of strong economic growth since the onset of economic reforms in the early 1990s. With the advancement in information technology, the world has turned into a global village and it has caused a revolution in the banking industry. The banks appear to be on fast track for IT-based products and services. Bank customers are becoming very insistent and it is the comprehensive use of technology that allows banks to satisfy the requirement of customers.

This has involved the usage of the internet for delivery of banking products and services. The electronic banking has been evolving the environment with the development of the world web. The development of information technology has been a big boon to the banking industry. It has helped the banking industry in several ways, especially in improving its customer relations. The banking industry has undertaken various activities due to the introduction of electronic media in its operations. The aggrandizement of E-banking technology enabled the banks to intensify its operations with cost-cutting in order to handle daily banking affairs via online banking channel. Banks are trying to grease the wheel for its Customers by allowing them t carry out their transactions via the internet instead of personally visiting the branches. 
The banking industry along with many other financial service industries is facing a swiftly changing market. Latest technologies, economic unpredictability, vying, extremely demanding customers and the changing climate has presented an unprecedented set of challenges for banks. Banking is oriented completely towards the services industry, therefore, the customer is the main focus along with customer service to be the differentiating element. Banks have identified that all industries majorly depends on consumer service and their satisfaction. Therefore this is compelling them to revamp customer service and build up a relationship with customers. With the recent shift in the functional orientation of banks, the purpose of banking is readdressed. The main driver of this shift is evolving customer needs and expectations. Customers are not willing to wait in long lines and spend many hours to perform banking transactions anymore. This change in customer outlook has gone along with the increase in number of of ATMs, phones and internet banking in order to make service available at the customer’s doorstep. With the universal banking unfolding, banks set their site to be customer-centric
4.6Historical Perspective Of Information and Communication Technology( ICT) in the Banking Sector
ICT in Indian banking sector has emerged in the year 1980 in banking industry through the Rangarajan Committee recommendations. It completely changed the way the banks and financial institutions were functioning. Bill Gates words that, “we need banking, do we really need banks?” is absolutely true in this area. According to RBI the two major advantages of technological adoptions –
Reduction in banks operational cost.

Facilitating more efficient transactions among customers within the same network.

The RBI has played a proactive role in the implementation of IT in the banking sector. Over the year RBI has increased the role of technology in the day to day operation of banks.
4.6.1Phases Of ICT Development In Indian Banking Sector
Today, no banking business or corporate strategy is veritable without information technology. There were various phases introduced during the evolution of ICT in the banking sector. To have a clear idea of the developments of ICT, it has been broken down into six phases. During the First phase of development, the banks were concentrating majorly on automation of the laborious accounting process and the functions that were performed at back office operations such as maintenance of & ledger accounts, calculation of interest. The second phase of development started in 1980 when the banking operations (front and back office) were automated. This aided in bettering the customer service, cut off the processing time on the front office and back office operations to a large extent. The third phase was started by establishment of new generation private sector banks. The networking concept and centralized operations were introduced by these banks as they had a small network and the advantage of opening the branches under the computerized environment from day one. With further funding in ICT, the banks could furnish innovative financial products at the minimum cost. The CORE (Centralized Online Real-time Exchange ) banking solution was initiated and today banks have already captured substantial business under CBS. Now the branch-customer concept is replaced with bank customer concept which avoided the problems of a decentralized network, database and related operational costs and the banks were able to lower the service cost with the adoption of centralized operations.

The centralized operations opened the door for the fourth phase of development where the customer performed his own required transactions via automated teller machine, mobile banking, internet banking, and phone banking. The AAA key of anywhere, anytime and anyhow implemented through ATMs, internet banking, and mobile banking. The operational costs for transactions via ATMs are relatively less for increased flexibility for the customers. The other field where there is a high possibility to transact and operate by the customers with low operating cost is “Internet banking”. Internet banking has the least cost per transaction than mobile banking, ATM, telephone banking, and normal branch transaction. The fifth stage of development known as interbank connectivity. This connectivity of inter-bank and inter-branch has been possible through “Real Time Gross Settlement System”. The concept of “bank-customer” has further improved to “banking industry-customer”. In this system, the transactions are on real-time basis as and when they occurred. The banking industry is now in sixth phase – revolutionary banking with economic digitization. On one side Indian banks aiming to handle a cashless society and on the other side is beginning to adopt artificial intelligence (AI), quite aggressively. The AI applications in use in the leading commercial banks in India, for example, SBI is currently using an AI-based solution developed by Chapdex, with which the bank will now construct a dislay board that will identify the effectiveness of employees or tellers based on customer feedback. Banks are now using AI to improve the customer experience, reduce costs and improve efficiency.

figure: Development Of Information and Communication Technology( ICT) in
Banking Sector
Artificial Intelligence

4.7 ICT Developments and Business Process Reengineering in Indian Banking
From the different phases of the banking sector, it is now clear that technological developments have completely changed the banking sector. So, computerization, information technology and automation of services are essential factors for banks to thrive in a competitive environment as it touches everybody’s work in one way or the other. But this cannot be done in a day. Banks do need to make huge investments in technology to meet all the requirements and to reduce the transaction costs.

However, the implementation of IT in banking without undertaking appropriate business process re-engineering (BPR) exercise will not prove to be fruitful. Proper business process re-engineering ensures the IT initiatives to meet the required objectives and ensures the financial outlay being properly utilized. There are a number of benefits that can be achieved from IT through BPR. Firstly, BPR enables banks to reap up the maximum benefits from absorption of IT in business operations, be it by way of process simplification or handling the large volume of transactions. Secondly, BPR should facilitate in process simplification in banking operations so that IT initiatives can be rendered in a much simpler and effective way in manual operations. Thirdly, BPR should reduce the time lag deliverables noticeably and accelerate the entire cycle of processes and procedures involved in banking operations. Fourthly, BPR process should enable the customers to undertake the banking transactions much more conveniently than earlier one. BPR process should target on improving the overall customer service levels. This can be accomplished by promoting the IT-based delivery channels like telebanking, remote customer inquiry terminals, kiosks, internet banking, ATMs, mobile banking, and phone banking so that customers are aided to carry out most of the transactions without having to visit the branch premises. It is clear from the above arguments that technology can be used in banking in four different ways:
• To control the expanded customer database.

• To curtail substantially the cost of handling payments.

• To un-restrict the banks from traditional constraints on time and place.

• To introduce new products and services to the customers.
Improved risk management practices :
Indian banks are majorly focusing on adoption of an integrated approach to risk management
Indian Banks have accepted the international banking supervision accord of Basel II; As per RBI, most of the banks meet capital requirements of Basel III, which has a deadline of 31 March 2019
Most of the banks have put in place the framework for asset-liability match, credit and derivatives risk management
Diversification of revenue stream
Banks are emphasizing on diversification of the revenue sources to protect themselves from interest rate cycle and its impact on interest income
A plethora of new asset management, wealth management, and treasury products are focusing more on increasing fee and fund based income
Technological innovations
Indian banks are committed to improving their technology infrastructure to enhance customer experience and gain a competitive advantage
Internet and mobile banking is gaining expeditious footing
Customer Relationship Management (CRM) and data warehousing will lead the next wave of technology in banks
Indian banks are rapidly focusing on SMAC (Social, Mobile, Analytics, and Cloud) techniques to reach new customers
Focus on financial inclusion
RBI has highlighted the need to focus on spreading the reach of banking services to the unbanked population of India
As per RBI, 490,000 unbanked villages were spotted and given to banks under the second phase of Pradhan Mantri Jan Dhan Yojna for coverage
Derivatives and risk management products
The growing dynamic business scenario and financial refinement has increased the need for customized exotic financial products
Banks are capturing the market share by developing innovative financial products and advanced risk management methods
Consolidation
Foreign banks have boosted the competition in the Indian banking sector
Banks are concentrating at consolidation to get greater benefits such as enhanced synergy, cost cut with economies of scale, organizational efficiency, and diversification of risks
Demonetization
RBI Deputy Governor said that the Central Bank has collected over USD 185.81 billion in demonetized notes from various bank branches
According to RBI, a total of USD 125.53 billion was deposited in banks till November 27, 2016
Focus towards Jan Dhan Yojana
A key objective of Pradhan Mantri Jan Dhan Yojana (PMJDY) is to increase the accessibility of financial services such as bank accounts, insurance, pension, credit facilities, etc. mostly to the low-income groups.
Under the Jan Dhan Yojana, as on November 9, 2016, 255.1 million new accounts were opened ; around USD6,971.68 million was deposited with the banks under this scheme.
‘Rupay’ debit cards worth 194.4 million were issued to users as on November 9, 2016,
Wide usability of RTGS and NEFT
NEFT and RTGS payment system is added to the existing list of methods, that a company can use for payment of a dividend or other cash benefits to their shareholders and investors by Securities Exchange Board of India (SEBI)
Know Your Client
The KYC policy is now compulsory for opening an account or making any investment such as mutual funds
CHAPTER V
DATA ANALYSIS : CONSUMERS’ PERCEPTION OF E BANKING SERVICES

For the research study the primary data was collected from 400 respondents of private and public sector banks(200 each) in Jabalpur. The collected data further used to analyze the consumers’ perception of e banking services and make a comparison of service quality provided by public and private sector banks in Jabalpur. The data acquired through questionnaire was analyzed in three parts-
Data reliability test
Descriptive analysis
A comparative analysis of e banking services provided by private and public sector banks in Jabalpur
Factor Analysis to explore relationship between service quality dimensions and E banking
A comparative service quality analysis of private and public sector banks in Jabalpur
A comparative customer satisfaction analysis in private and public sector banks in Jabalpur
Part I : Measuring the Reliability of Data
Table – Measuring Reliability of the Data
Source: authors own calculation using R
In order to know the various factors considered important for the customers, two tests were conducted under the factor analysis to judge the reliability of data, i.e., Kaiser- Meyer-Olkin measure of sampling adequacy and Bartlett test of sphericity. The results so obtained were subjected to both these tests. The value of KMO statistics in all the factors is ;0.5. Hence, not all the factors are given equally important for identification of the service quality of e-banking. Hence, the null hypothesis is rejected. Bartlett’s test of sphericity shows the value of Chi-square which is significant at 0.000 levels in all the dimensions of service quality. These two tests show that the data is fit for conducting the factor analysis.

Cronbach’s Alpha Cronbach’s Alpha based on Standardized Items No of Items
.741 .743 24
Source: authors own calculation using R
Cronbach’s Alpha’s value is 0.741 which represent a good level of internal consistency of the scale for all 24 numbers of the questions.

Part II – Descriptive Analysis
Descriptive Analysis was performed to present the profile of the respondents and to identify mean score and standard deviation for the items in the banking service quality dimensions used for this research study.

.1 Customer’ Demographic profile Analysis
Customers are the milestone of banking business, therefore it is essential to study the customer profile. They are the center of every study hence a very significant part of the primary survey consist of various information about respondents who answer the questionnaire. Any research analysis would remain incomplete and not provide meaningful insight if it’s not related to the respondents. In this study descriptive analysis was used to show the demographic details of the respondents. The sample size of 400 respondents which included 200 customers each from public and private sectors bank in Jabalpur in order to perform a comparative analysis. Therefore the first section of the questionnaire inquires basic attributes of the respondents such as age group, gender , occupation, educational qualification and income group. Table 5.1 to 5.5 and corresponding figure from 5.1 to 5.5 represent the detailed demographic profile of the respondents who participated in survey conducted for this research.

Gender Wise Distribution of E Banking Customers In Jabalpur
As per the 15th National census survey conducted by the Census Organization of India in 2011, gender wise population distribution in Jabalpur shows that total population of Jabalpur was 2,463,289 , out of which male and female were 1,277,278 and 1,186,011 respectively. The above figure indicate gender equality in Jabalpur to a great extent where 52% of the total population are male and 48% of the total population are female . Below mention table 5.1 and corresponding figure 5.1 shows the gender wise distribution of our respondents of public and private sector banks.

Table 5.1 Gender Wise Distribution of E Banking Customers In Jabalpur
Public Sector Banks In Jabalpur Gender Private Sector Banks In Jabalpur
Number %   Number %
143 72% Male 112 53%
57 29% Female 98 47%
         
200 100% Total 210 100%
Source: :www.censusindia.gov.in
Figure 5.1- Wise Distribution of E Banking Customers In Jabalpur

From the above table 5.1 ad figure 5.1 it can be seen that in out of respondents public sector banks in Jabalpur 67% are male ad 34% are female whereas out of respondents from in Private sector banks of Jabalpur 53% are male and 47% are female.

Age Wise Distribution of E Banking Customers In Jabalpur
For this research study only adult bank customers are included in the survey. Minor account holders are kept out of the purview of primary data collection. Though in the notification published on 6th may 2014 with regard to Opening of Bank Accounts in the Names of Minors RBI has given a free hand to all banks in India to provide extra banking facilities like ATM, debit card, credit card cheque book services, internet banking etc., subject to the save that minor accounts are not allowed to be over withdrawn and that these always be in credit. All scheduled commercial Banks  in India allow minors to operate bank accounts only along with a parent or a guardian along with few restricted transactions. Therefore it would not be fruitful to include minors in the analysis of consumer’s perception of e banking services in Jabalpur. For this study the customers are categorized in five groups. Below mentioned table 5.2 and corresponding figure 5.2 shows the age wise distribution of the public and private sector banks in Jabalpur district. Majority of the public sector e banking customers approx. 30 % fall in the age group of 60 and above whereas majority of the private sector e banking customers fall in the age group of 18-25.

Table 5.2 Age Wise Distribution of E Banking Customers In Jabalpur
Public Sector Banks In Jabalpur Age Group Private Sector Banks In Jabalpur
Number %   Number %
28 14% 18-25 68 34%
20 10% 25-35 40 20%
56 28% 35-45 44 22%
36 18% 45-60 24 12%
60 30% 60 above 24 12%
200 100% Total 200 100%
Source: Primary survey conducted by researcher

Source: Primary survey conducted by researcher
Education Wise Distribution of E Banking Customers In Jabalpur
Jabalpur has always been identified as an education hub in Madhya Pradesh being home for 30 engineering and medical colleges and almost 70 senior secondary and secondary schools. It has a literacy rate of 82.74 %. It’s important to understand the education wise spread of e banking customers as education is considered to be one of the influencing factors of e banking in India. Adoption of e banking increases with the level of
education. Below table and figure shows that public sector banks have less educated e banking customers than that of private sector bank. Graduate and postgraduate and above category shows 63% with private bank that is higher than the public sector with 45%.

Table 5. 3 Education Wise Distribution of E Banking Customers In Jabalpur
Public Sector Banks In Jabalpur Education Level Private Sector Banks In Jabalpur
Number %   Number %
43 22% Below Secondary 24 12%
67 34% Till Secondary 50 25%
46 23% Graduate 54 27%
44 22% Post graduate 72 36%
200 100% Total 200 100%
Source: Primary survey conducted by researcher

Source: Primary survey conducted by researcher
Occupation Wise Distribution of E Banking Customers In Jabalpur
As per Unit Level Data of National Sample Survey Organization, Employment and Unemployment Situation in India, 68th Round, 2011-12 work status shows that in Jabalpur district 39.7 % are self employed , 48.8% are Salaried and 11.4% fall under others category. For this research study also respondents from Public and private sectors banks in Jabalpur are also categorized in the same manner. Below table 5.4 and corresponding figure 5.4 shows details of the same. It can be seen that 49% of the total e banking users from public sector respondents are salaried class people. Among self employed and other e banking users private bank is preferred as it shows 35 % and 36% respectively for these group among respondents of private sector banks.

Table 5.4 Occupation Wise Distribution of E Banking Customers In Jabalpur
Public Sector Banks In Jabalpur Occupation Private Sector Banks In Jabalpur
Number %   Number %
97 49% Salaried 59 30%
38 19% Self employed 69 35%
65 33% Others 72 36%
200 100% Total 200 100%
Source: Primary survey conducted by researcher

Source: Primary survey conducted by researcher
Income Group Wise Distribution of E Banking Customers In Jabalpur
In the Indian tax system tax is levied on taxpayers pertaining to the individual income slabs. Income Tax slabs applicable for Individuals are Up to Rs.2.5 lakh, Rs.2,50,001-Rs.5 lakh , 5,00,001-Rs.10 lakh and above Rs.10 lakh. For the purpose of this study also respondents are categorized in this pattern. Out of respondents of this study, Public sector banks have 44% respondents earn under 2.5 Lakh whereas among private sector respondents approx 59% of the respondents earn above 5 Lakh.

Table 5.5 Income Slab Wise Distribution of E Banking Customers In Jabalpur
Public Sector Banks In Jabalpur Income Group Private Sector Banks In Jabalpur
Number %   Number %
87 44% Up to 2.5 L 36 18%
51 26% 25 L- 5 L 48 24%
36 18% 5L-10 L 57 29%
26 13% 10 L & above 59 30%
200 100% Total 200 100%
Source: Primary survey conducted by researcher

Source: Primary survey conducted by researcher
Part III: Comparative analysis of E-Banking behavior of customers of public and private banks in Jabalpur
A customer is considered as the king of the market therefore the study of consumer behavior becomes the center point of making any business decision. The primary data collected also used to analyze the consumer e-banking behavior in Jabalpur. This may provide a wide platform to the public and private sector banks to consider the various factors such as preferred banking channel, most performed banking transaction via e channel , operational difficulties and medium of awareness etc.

Respondents Preference With Regard To E Banking Channel
E banking takes into account multiple electronic channels to perform banking transactions. It includes Internet banking, Phone banking , mobile banking and ATM services. To identify most preferred e banking channel among respondents ranking was done based on the weighted average score . Below table shows a comparison of e channel preference to carry out banking transactions between respondents of private and public sector banks in Jabalpur.

Public Sector Banks In Jabalpur
E Banking Channels Rank 1 Rank 2 Rank 3 Rank 4 Was Overall Ranking
Internet Banking 40 53 44 63 2.35 3
Phone Banking 64 48 32 56 2.6 2
Mobile Banking 43 37 61 59 2.32 4
ATM 53 62 63 22 2.73 1
Private Sector Banks In Jabalpur
E Banking Channels Rank 1 Rank 2 Rank 3 Rank 4 Was Overall Ranking
Internet Banking 62 74 47 17 2.905 1
Phone Banking 41 42 44 73 2.255 3
Mobile Banking 59 49 57 35 2.66 2
ATM 38 35 52 75 2.18 4
Source: Primary survey conducted by researcher

Source: Primary survey conducted by researcher
Findings from the above tables and figure show that out of all the e-banking channels services public sector respondents first preference is still ATM followed by phone banking whereas in public sector ATM and phone banking are least preferred. Internet banking followed by mobile banking are the first choice of private sector respondents to carry out any banking transactions.

Most Performed E Banking Transaction Using e channel
There are various transactions that can be performed via e channels. Most commonly used transaction are ranked by the respondents of private and public sector banks in Jabalpur to make a comparative study. Weighted average score was calculated and accordingly ranking overall ranking was given.
Banking Transactions Mostly Performed via e channels
In Public Sector Banks In Jabalpur
E Banking Transactions via e channels Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 Rank 7 Rank 8 Rank 9 Weighted Average Score Overall Ranking
Balance Enquiry and Statement 49 22 11 37 17 13 18 24 25 5.9 3
Acquire information (offers/interest rates etc) 36 34 43 21 10 12 13 14 16 6.02 1
Transfer of Funds 16 25 32 31 12 11 21 19 13 4.86 6
Deactivate/ Activate ATM/ Debit Card 35 33 11 18 41 22 31 19 8 5.98 2
Bills Payment 23 27 34 20 22 34 21 11 9 5.605 5
Change Password 29 25 34 21 32 22 10 9 2 5.615 4
Online Shopping/Bookings 12 15 18 26 34 36 22 18 19 4.725 7
Demat Holdings 0 8 10 9 15 24 31 42 61 2.985 9
Customer Communication 0 11 7 11 29 41 34 22 45 3.515 8
Source: Primary survey conducted by researcher
Banking Transactions Mostly Performed via e channels
In Private Sector Banks in Jabalpur
E Banking Transactions via e channels Rank 1 Rank 2 Rank 3 Rank 4 Rank 5 Rank 6 Rank 7 Rank 8 Rank 9 Weighted Average Score Overall Ranking
Balance Enquiry and Statement 33 24 33 29 22 13 18 12 16 5.75 2
Acquire information (offers/interest rates etc) 35 23 23 21 10 15 17 25 31 5.14 5
Transfer of Funds 33 35 42 23 14 12 11 18 13 6.05 1
Deactivate/ Activate ATM/ Debit Card 22 22 22 18 27 22 31 21 14 5.04 6
Bills Payment 25 27 32 22 16 29 21 24 4 5.54 3
Change Password 29 24 23 21 28 22 21 21 11 5.42 4
Online Shopping/Bookings 12 26 12 36 33 22 22 19 18 4.96 7
Demat Holdings 5 8 6 19 21 24 29 32 56 3.37 9
Customer Communication 6 11 7 11 29 41 30 28 37 3.75 8
Source: Primary survey conducted by researcher
The above exhibit that there is a wide difference among respondents of public and private sector banks in Jabalpur with regard to purpose of using e banking. Respondents of Public sector banks use e banking mostly for acquiring information (offers/interest rates etc) with 6.02 weighted average score, followed by activating and deactivating cards (5.98), balance inquiry (5.9). Whereas respondents private sector banks mostly use e banking to transfer funds with 6.05 weighted sore followed by balance inquiry (5.75) and bill payment (5.54)respectively . Its noteworthy that banking transaction that are least performed using e channels have no difference among respondents of public and private sector banks in Jabalpur. Demat holding, customer communication & Online shopping are the transactions which are rarely performed using E_banking.
Operational Problems in the Use of Modern Technology
Technology is deep rooted itself in every aspects of a bank’s functioning . As it has become indispensable in banking operations, the challenge for the bank’s customers is, how effectively they are able to use technology to perform banking operations. below table shows the comparative statistics about various problems faced by customers of private and public sector banks in Jabalpur.

Technical Operational Problems Faced by Banks’ Customers
Private Public Total
Server Down 7
(3.5) 25
(12.43) 32
Untrained Personnel 17
(8.5) 18
(8.95) 35
ATM not Working Properly 39
(19.5) 37
(18.40) 76
Deposit of Cash 22
(11) 27
(13.43) 49
Ignorance 25
(12.5) 16
(7.96) 41
Not Attending Phone Call 17
(8.5) 16
(7.96) 33
Location 19
(9.5) 25
(12.43) 44
Availability of Currency 25
(12.5) 21
(10.44) 46
Risk of Loss of Currency 22
(11) 8
(3.98) 30
Delay in Services 7
(3.5) 7
(3.48) 14
Total 200 200 400
Source: Primary survey conducted by researcher
As regard to the technical operational problems faced by banks’ customers, in private sector 3.5 percent faced it due to server down, 8.5 percent due to untrained personnel, 19.5 due to ATM working, 25 percent for the ignorance of customer themselves, 25 percent for availability of cash and 7 percent due to delay of services. However in the public sector the situation is slightly different, here the customers encounters the problem due server down (12.43 percent), ATM not working properly (18.40 percent), location of onsite and offsite ATM (12.43 percent).

Awareness Among Customers About e-banking Services
Awareness is a social factor that enhances the collective consciousness among the people. Success of the bank’s functioning is measured in term of its schemes/ latest services/initiatives. Today’s’ world offer many channels to publicize the products and services among customers to bring in customer awareness. Awareness about the product and services is one of the major factors that influences consumer buying behavior. Banks today are taking utmost care to send information about its schemes to the customers. Following table tries to find out through which channel customers of public and private sector banks came to know about e banking .

Awareness Among Customers About e-banking Services
Public Private Total
Advertisement 55
(27.36) 70
(35) 125
Manager 49
(24.37) 27
(13.5) 76
Website 34
(16.91) 31
(15.5) 65
E-mail 27
(13.42) 25
(12.5) 52
Other Customer 30
(14.92) 32
(16) 62
Mobile banking 5
(2.48) 15
(7.5) 20
Total 200 200 400
Source: Primary survey conducted by researcher
Above table shows that 70 (35 per cent) respondents of private sector and 55 (27 per cent) of public sector came to know about e-banking through advertisement, 27 (13.5 per cent) of private and 49(24 per cent) of public came to know through manager, through websites 31(15.5 per cent) in private and 34(16.9 per cent) in public sector. So the knowledge about e-banking services is highest through the advertisement of banks and lowest through the mobile banking services in both public sector and private sector banks. The knowledge through managers, websites, email and other customers comprises a very small proportion. In order to increase awareness without putting extra cost burden on the banks , they need to take to benefit of word-of-mouth publicity by keeping customers happy with better service quality. A happy customer can steer many new customers to bank’s way.
Part IV :- Factor Analysis For Identification Of Service Quality Dimensions
Factor analysis involves grouping similar variables into dimensions.  Factor analysis intends is to reduce many individual items into a lesser number of dimensions. Principal Component Analysis with Varian Rotation method was used for getting the factors of service quality for this study. All the variables with their factor loadings and percentage of variance, examined by each factor are given in the following tables, used on 24 items of service quality questionnaire. All the factors have been given appropriate names on the basis of various variables present in each case. The structure of these five factors is discussed below
Factor Loading Of SERVQUAL Dimensions
Table : Analysis of Customers’ Perceptions Regarding Communication Dimension
S. No. Variables Factor Loading
1 My bank keep me up to date with information about its products and services through email/SMS/ phone banking etc. 0.519
2 My bank’s website is always updated with the latest information. 0.520
3 My bank promptly communicates every change in services, rules and regulations. 0.698
4 My banks website/mobile app provide info in my native language. 0.695
5 It assures the customer that problem will be handled. 0.676
  Eigen value 1.57
  Cronbach Alpha 0.78
  Percentage of variance(sum of square loadings) 59.077
The factor loadings of all the statements were calculated and it was found that the loadings of all the statements were greater than 0.4, and thus, all were accepted. The values of Cronbach alpha and Eigen value so obtained suggest a good consistency of the data. The analysis shows that the Eigen value represents 59 per cent of the variance of data.

Table : Analysis of Customers’ Perceptions Regarding Security Dimension
S. No. Variable Factor Loading
1 My bank provides enough info./tips to maintain security while using any E-banking tool. 0.582
2 My bank provides instant alerts about any E-banking transaction through SMS/mail. 0.752
3 My bank ensures physical security of the transaction through password or OTPs. 0.687
4 My bank ensures security measures for its mobile banking app. 0.66
5 I am confident that my personal info.(KYC form)is not revealed to anyone, 0.701
6 My bank immediately blocks the debit or credit cards in case of reporting loss of card. 0.471
  Eigen value 1.811
  Cronbach’s Alpha 0.691
  Percentage of variance(sum of square loadings) 45.271
Table shows security dimension that consisted of six variables. The value of Cronbach alpha and Eigen values are 0.691 and 1.811 respectively, which suggest a good consistency of the data. The loadings of all the statements were greater than 0.4, and thus, all were accepted Only one factor having Eigen value greater than 1 explained 45.271 per cent of the data. One factor ‘instant alert’ having loading of 0.752 shows that people are highly satisfied with instant alerts about any E-banking transaction through SMS/mail. Instant alerts provides additional security measure for all the e-banking transactions.
Analysis of Customers’ Perceptions Regarding Ease of Access Dimension
S. No. Variable Factor Loading
1 E-banking service is accessible via Internet banking, Mobile banking, EFT, ECS, ATM. 0.467
2 My banks operating hours convenient to resolve E-banking Problems. 0.676
3 It provides convenient location of service facility(location of ATM, POS terminals) 0.794
4 My banks mobile app is very user friendly. 0.659
5 Online purchase of goods and services including online payment is easier 0.418
6 It is easy to make any bill payment using e banking than physical payment. 0.75
  Cronbach Alpha 0.556
  Eigen value 1.74
  Percentage of variance(sum of square loadings) 43.491
Different dimensions of ‘Access’ under e-banking were studied and six factors have been loaded on this factor. The factor loadings of all the statements were calculated and it has been found that the loading of all the statements is greater than 0.4, thus, all the statements will be accepted. The Eigen value and Cronbach’s alpha for this factor are 1.740 and 0.556 respectively. The Eigen value of the factor was greater than one and indicates that it fits well with the data from all the respondents on all the statements. The analysis shows that Eigen value explains 43.49 per cent of the variance from all the respondents and there is only one factor extracted having the factor loading closer to 1.

Table : Analysis of Customers’ Perceptions Regarding Responsiveness Dimension
S. No. Variable Factor Loading
1 My bank puts sincere efforts to solve e- banking issues. 0.798
2 It is easy to get through the customer care of my bank to solve E_ banking services. 0.668
3 When I visit the branch for any help with E-banking services, I am immediately attended by their employees. 0.523
  Cronbach’s Alpha 0.699
  Eigen value 1.502
  Percentage of variance(sum of square loadings) 50.061
The responsiveness factor consisted of three variables and each of these variables was analyzed using factor analysis. The factor loading of all the statements was calculated and it was found that the loadings of all the statements were greater than 0.4, and thus, all were accepted. The Cronbach alpha and Eigen values are 0.699 and 1.502 respectively which suggest a good consistency of the data. Only one factor having Eigen value greater than 1 explained 50.61 per cent of the data. Hence, only one component is extracted.

Table : Analysis of Customers’ Perceptions Regarding Reliability Dimension
S. No. Variable Factor Loading
1 My bank never charges any extra amount apart from what is required to pay. 0.776
2 All my credit card bills/ e statement are accurate. 0.722
3 I am confident that even if any extra amount is charged by the bank , it will be waived off in the next bill. 0.615
4 I get OTPs/ Secure codes/password immediately in case of making any payment using E-banking. 0.549
  Cronbach Alpha 0.699
  Eigen value 1.502
  Percentage of variance(sum of square loadings) 50.061
The reliability factor consisted of four variables and each of these variables was analyzed using factor analysis. The factor loading of all the statements was calculated and it was found that the loadings of all the statements were greater than 0.4, and thus, all were accepted. The Cronbach’s alpha and Eigen values are 0.699 and 1.502 respectively which suggest a good consistency of the data. Only one factor having Eigen value greater than 1 explained 50.61 per cent of the data. Hence, only one component is extracted.

Comparative Service Quality Analysis of Public and Private Sector Banks Using SERVQUAL Model
The research performed a comparative analysis of e-banking services between public and private sector banks. Five Parts of the dimensions of SERVQUAL is including communication, security, ease of access, responsiveness and reliability used for the comparison. As per the economic analysis framework discussed before consumers satisfaction is the difference between consumers’ expectation and the perceptions. Applying this concept mean score for consumers’ satisfaction was calculated and then T-test was applied to calculate the mean differences in consumers’ satisfaction level between public and private sector banks . All the Calculation were done using R .

Factor 1: Communication
 
Sector-wise Analysis of Customers’ Perception Regarding Communication Dimension
Sr. No. Statements Public Private t-value p-value
1 My bank keep me up to date with latest information about its products and services through email/SMS/ phone banking etc. 3.7 3.84 1.819 0.069
2 It explains the cost of service being used. 3.63 3.91 2.88 0.998
3 My bank promptly communicates every change in services, rules and regulations. 3.79 3.87 1.006 0.842
4 My banks website/mobile app provide info in my local language. 3.9 3.2 -3.811 0.000**
5 Bank’s e baking services assures that the customer that problem will be handled. 3.61 3.86 3.524 0.000**
** p-value is significant at 0.05 level.

The communication dimension shows that customer perception in public and private is almost same in all statements except in two statement with mean score of 3.90 ; 3.61 and 3.60 ; 3.8 respectively. First statistical difference shows that public sector respondents are more satisfied with banks communication as it even provides information in local language ( Hindi). Second statistical difference shows that private sector respondents are more assured about their problems being resolved..

Factor 2: Security
  Sector-wise Analysis of Customers’ Perception Regarding Security Dimension
Sr. No. Statements Public Private t-value p-value
1 I should get instant alerts by SMS /mail for any E banking transaction. 3.71 3.64 0.683 0.493
2 The bank should publish important info/tips on how to maintain security while using either of the e banking tools. 3.92 3.81 1.255 0.21
3 Bank through password or OTP facility should ensure physical security of the transaction. 3.79 3.86 -0.674 0.25
4 Bank should provide enough security measures for its Mobile banking app. 3.69 3.7 -0.097 0.922
5 I must be assured that my personal info. that I filled in KYC form of the bank will not be revealed. 3.71 3.80 0.937 0.349
6 I case of loss of debit/credit cards my card should be blocked immediately. 3.75 3.82 1.432 0.152
As is evident from table no. that there is no statistical significant difference between two sectors. It is observed that if public sector banks intend to enhance their service quality than they must improve the service quality in those dimensions where the score is either too low than private sector or customers are not satisfied with the services being provided. Both sector customers are neutral regarding their expectations from their banks with regard to security and require a further improvement. However customers will have increased sense of security if their banks publish important info/tips on how to maintain security while using either of the e banking tools and case of loss of debit/credit cards the card should be blocked immediately.

Factor 3: Ease of Access
Sector-wise Analysis of Customers’ Perception Regarding Ease of Access Dimension
Sr. No. Statements Public Private t-value p-value
1 E-banking service is accessible via Internet banking, Mobile banking, EFT, ECS, ATM. 3.91 3.78 1.374 0.17
2 My banks operating hours convenient to resolve E-banking Problems. 3.93 3.93 0.000 0.5
3 It provides convenient location of service facility(location of ATM, POS terminals) 2.26 3.77 -1.51 0.000**
4 My banks mobile app is very user friendly. 4.05 3.93 1.252 0.894
5 Online purchase of goods and services including online payment is easier. 3.87 4.01 -1.45 0.002**
6 It is easy to make any bill payment using e banking than physical payment. 3.79 4.06 -2.70 0.001**
** p-value is significant at 0.05 level.

*** Calculation done using R With the calculation shown in the above table it is evident that there is statistical difference in ease of access dimension in public and private sector banks. In the access dimension includes six statements out of which three statement show significant gap in the service quality of public and private sector banks. First statistical difference is noticed case of convenient location of service facility(location of ATM, POS terminals) with public sector having mean of 2.26 and public sector 3.77. Second statistical difference is noticed case of online purchase of goods and services, private sector is having 4.01 mean score and public sector with 3.87. Final statistical difference is seen in case of any bill payment using e banking than physical payment with public sector mean score of 3.79 and private sector mean score of 4.06. In all of the above statistical differences the p-value is significant at 5 per cent level. This shows that private sector seem to be higher beneficiary of online services of their respective banks.
Factor 4: Responsiveness
Sector-wise Analysis of Customers’ Perception Regarding Responsiveness Dimension
Sr. No. Statements Public Private t-value p-value
1 My bank puts sincere efforts to solve e- banking issues ASAP. 3.92 4.02 -1.048 0.295
2 It is easy to get through the customer care of my bank to solve E_ banking services. 4.03 3.76 2.666 0.008**
3 When I visit the branch for any help with E-banking services, I am immediately attended by their employees. 3.76 4.12 -3.686 0.000**
** p-value is significant at 0.05 level.

*** Calculation done using R
The results in responsiveness dimension shows significant difference in two out of three statements. Customers in both sectors agree that ‘bank puts sincere efforts to solve e- banking issues ASAP’ with 3.92 mean score for public sector and 4.02 for private sector. There is a significant difference with regard to “get through the customer care of my bank to solve E_ banking services” and “when customers visit the branch for any help with E-banking services”. In this regard private sector banks customers seem to be more satisfied than the customers of public banks in Jabalpur. This might be due to better customer relationship Management (CRM) solution, and effectiveness of employees in private sector bank.

Factor 5: Reliability
Sector-wise Analysis of Customers’ Perception Regarding Reliability Dimension
Sr. No. Statements Public Private t-value p-value
1 My bank never charges any extra amount apart from what is required to pay. 3.71 3.8 0.937 0.349
2 All my credit card bills/ e statement are accurate. 3.85 3.88 -0.334 0.738
3 I am confident that even if any extra amount is charged by the bank , it will be waived off in the next bill. 3.75 3.82 1.432 0.152
4 I get OTPs/ Secure codes/password immediately in case of making any payment using E-banking. 3.9 3.7 1.414 0.92
*** Calculation done using R
The above table reveals that there is no significant statistical difference between two sectors with regard to reliability dimension. However private sector bank’s customers are more satisfied than public sector customers in Jabalpur. If public sector banks intend to enhance their service quality then they must improve the service in these areas where the mean score is either too low than private sector or customers are not pleased with the services being provided.

With the above analysis the statistical difference in e-banking quality between private and public sector banks existed in following statements –
Banks website/mobile app provide info in my local language (p =0.000)
Bank’s e baking services assures that the customer that problem will be handled
(p =0.000)
Banks provides convenient location of service facility(location of ATM, POS terminals) (p =0.000)
Online purchase of goods and services including online payment is easier (p =0.002)
It is easy to make any bill payment using e banking than physical payment (p =0.001)
It is easy to get through the customer care of my bank to solve E_ banking services (p =0.008)
When I visit the branch for any help with E-banking services, I am immediately attended by their employees. (p =0.000)
In order to deliver better quality services to the customers, it is essential that services are standardized .. The conceptualization of SERVQUAL instrument extended great help in ascertaining the level of service quality and the expectation of customers in public and private sector banks in Jabalpur. This model will help banks to focus more upon providing qualitative electronic banking services to their customers. The dimensions of service quality provided a clear understanding and throw light on e- banking service quality. A closer scrutiny of the results shows of the comparative analysis of both sectors shows that, in the area of security and reliability there is no significant gap between private and public sector banks in Jabalpur. This might be due to the timely ; mandatory policy implementation by RBI. However, there exists a significant gap in communication, ease of access and responsiveness. For the greater adoption of e-banking among customers, firstly its on the part of the banks to assure that whether they are providing qualitative and timely e-banking services to their customers only than the level of satisfaction can be raised. Both the banks should work in a competitive spirit with each other to further improve the level of services.

CHAPTER- VI
SUMMARY OF FINDINGS, CONCLUSION AND SUGGESTIONS
CHAPTER- VII
SUMMARY OF FINDINGS, CONCLUSION AND SUGGESTIONS
Technology is changing at a blurring rate. We are seeing game-changing advances in many areas from user interfaces to Internet TV. It’s not just transactions that are moving to the Internet but conversations and relationships, and Banking is no exception to this. Technology has brought about a complete transformation in the day to day working of banks and delivery of banking services. In former times every banking transaction required a visit to the bank branch. Today, the majority of transactions can be carried out from the comforts of one’s dwelling and customers are not required to visit the bank branch for anything. Technology is no longer a facilitator, but a business driver. The expansion of the internet, mobiles and communication technology has added various ingredients to banking. Indian banks are also no longer geographically restricted as they have worldwide operations now. IT has been instrumental in the global expansion of banks. India witnessed a sustained period of strong economic growth since the onset of economic reforms in the early 1990s. With the advancement in information technology, the world has turned into a global village and it has brought a revolution in the banking industry. The banks appear to be on fast track for IT-based products and services. Bank customers have raised their expectation from the banks and it is the necessary to make use of the technology to enables banks to satisfy the requirement of customers.

The electronic banking has been evolving the environment with the development of the world web. The development of information technology has been a big boon to the banking industry. It has helped the banking industry in several ways, especially in improving its customer relations. The banking industry has undertaken various activities due to the introduction of electronic media in its operations. The aggrandizement of E-banking technology enabled the banks to intensify its operations with cost-cutting in order to handle daily banking affairs via online banking channel. Banks are trying to grease the wheel for its Customers by allowing them t carry out their transactions via the internet instead of personally visiting the branches. 
The banking industry along with many other financial service industries is facing a swiftly changing market. Latest technologies, economic unpredictability, vying, extremely demanding customers and the changing climate has presented an unprecedented set of challenges for banks. Banking is an industry mainly oriented to its a customer, therefore, the customer is the focus and customer service is the differentiating factors. Banks have identified that every industry majorly depends on its consumer service and their satisfaction level. Therefore this is compelling them to revamp customer service and build up a relationship with customers. With the recent shift in the functional orientation of banks, the purpose of banking is readdressed. The main driver of this shift is evolving customer needs and expectations. Customers are not ready to wait in long lines and spend hours to perform the banking transactions anymore. This shft in customer view has gone along with the expansion of ATMs, phone and internet banking and giving service right at the customer’s doorstep. With the universal banking unfolding, banks set their site to be customer-centric.
In the present scenario, banks running in a fiery challenge in connection with both the customer base and performance so as to deliver efficient services to its customers. Banks are doing its utmost to win customer satisfaction by rendering better quality services. Today banks are more concerned with customer satisfaction and retention than just acquisition. In today’s aggressive environment, banking services play a vital role in customer satisfaction and service quality and have surfaced as one of the key aspects.

There is disparity found to some extent in the services provided by the banks with the E-banking services coming to light. So, it becomes necessary to study the consumer’s perception of the service quality of banks. Despite the increasing significance of E-banking services, the research with regard to e-banking in context of Jabalpur district has been limited. This research focuses on the impact of service quality of E-banking services on individual customers of public and private sector banks of India with reference to Jabalpur district by analyzing the gap between their expectations and satisfaction regarding the services consumed.
After the analysis, the key findings are as mentioned below-
7.1 Findings With Reference To Customer’s Profile:
For this research study total of 400 respondents were randomly selected (200 each from the private and the public sector). A comprehensive information about their demographic profile helped to understand e-banking with reference to the demography of Jabalpur district.

7.1.1.Gender wise Distribution Of – Banking Customers In Jabalpur
Census 2011, gender-wise population distribution shows that 52% of the population are male and 48% are female. Keeping this in mind, analyzing the gender wise population distribution of public and private sector banks, it was found that out of respondents public sector banks in Jabalpur 72% are male and 29% are female whereas out of respondents from in Private sector banks of Jabalpur 53% are male and 47% are female. Public sector shows unequal gender distribution of the customers whereas private sector shows nearly equal gender distribution of the customers.

7.1.2Age-wise Distribution Of – Banking Customers In Jabalpur District
The comparative demographic analysis of customers of public and private sector banks in Jabalpur district showed a contrast between the age wise distribution of private and public sector banks in Jabalpur. Approximately 30 % of e-banking users of public sector banks are of the age 60 and above and approx whereas for private sector its only 12%.34% of the private bank’s e-banking users are of age group 18-25 whereas in public sector its only 14%. There is a dominance of younger population approx 54% in the age group of 18-35 in private bank users whereas public sector banks show a dominance of older population approx 76% from age group 35 and above.

7.1.3Education wise Distribution of e-Banking Customers In Jabalpur District
Jabalpur being an education hub of Madhya Pradesh which has 82% literacy rate. In this light, the education wise distribution of the customers in public and private sector banks identified that in graduate and postgraduate and above category private sector has approx. 63% of the respondents whereas public sector showed only 45% respondents in this category. The public sector banks have less educated e-banking customers in Jabalpur than that of private sector banks. Private sector banks are more popular among highly educated people.

7.1.4Occupation wise Distribution Of – Banking Customers In Jabalpur District
For analyzing the occupation wise distribution of public and private sector banks, the respondents were classified into three categories- salaried, self-employed and others. The study found out that that 49% of the total e-banking users from public sector respondents are salaried class people. Among self-employed and other e-banking users private bank is preferred as it shows 35 % and 36% respectively for these group among respondents of private sector banks.

7.1.5Income-Group Wise Distribution Of – Banking Customers In Jabalpur District
When grouped as per the income tax slab respondents of public and private sector banks, it was found that out of 400 respondents of this study, Public sector banks have 44% respondents earn under 2.5 Lakh whereas among private sector respondents approx 59% of the respondents earn above 5 Lakh. It can be concluded that more of the taxpaying population of Jabalpur District have their bank accounts with private sector banks.

7.2Findings With Reference To E-Channels
7.2.1Most Preferred E-Banking Channel among customers of Jabalpur District
When it comes to e-channels, public and private sector banks in Jabalpur district offer the convenience of may channel to their customers to perform banking transaction. This study also found out the most preferred e-banking channels among e-banking users of Jabalpur district. It was found that out of all the e-banking channels services public sector respondents first preference is still ATM followed by phone banking whereas in public sector ATM and phone banking are least preferred. Internet banking followed by mobile banking is the first choice of private sector respondents to carry out any banking transactions.

7.2.2Most Performed Banking Transaction Using E-Channels
With the initiation of e-banking, the bank’s main objective was to allow its customer to perform most of the banking transaction via e-channels. This study also investigated about which banking transaction is carried out mostly by using e-channels by public and private sector banks of Jabalpur district. It was found that Among public sector respondents E-banking mostly used for only checking balance ; other information and activating or deactivating debit of credit cards whereas transfer of funds(ranked 6th with WAS 4.86), bill payments( ranked 5th with 5.61 WAS) and online shopping (ranked 7th with 4.73 WAS) are least performed using e channels. It can be concluded from the above that cash transactions are still the preferred mode of payment among respondents of public sector banks. Among private sector, banks’ respondents prefer payments using e-banking as the transfer of funds (ranked 1st with 6.05 WAS), bill payment (ranked 3rd 5.54 WAS). Yet for online shopping and booking, they prefer cash payments.
7.2.3Various Operational Problems Faced By Bank’s Customers with regard to e-banking
Use of technology to perform banking transactions causes many challenges for the customer. The study investigated the main problems faced by banks customers in this regards. It was found that Customers of both public and private sector banks in Jabalpur face operational problems with regard to e-banking services, however, the major problems faced by both banks customers are different. In private sector 3.5 percent faced it due to server down, 8.5 percent due to untrained personnel, 19.5 due to ATM working, 25 percent for the ignorance of customer themselves, 25 percent for availability of cash and 7 percent due to the delay of services. However in the public sector, the situation is slightly different, here the customers encounter the problem due to server down (12.43 percent), ATM not working properly (18.40 percent), the location of onsite and offsite ATM (12.43 percent). Operational difficulties at e-banking transactions may impact customer loyalty and lead to customers’ switching to other banks.

7.2.4Awareness Among Customers About E-Banking
A well informed consumer is very crucial for the business. He  is capable of making proper decisions, identify an insight about a bank’s product even before buying it. This study also examined that out of many available channels which one is more fruitful in order to bring awareness among e-banking customers of private and public sector banks of Jabalpur district. It was noticed that that 35% respondent of the private sector and 27 % of public sector come to know about e-banking through advertisement, 13.5% of private sector banks and 24% of the public sector bank came to know through the manager, through websites 15.5% in private and 16.9 % in public sector. So the knowledge about e-banking services is highest through the advertisement of banks and lowest through the mobile banking services in both public sector and private sector banks. The knowledge through managers, websites, email and other customers comprises a very small proportion.

7.3Findings Of Customer’s Perception With Regards To Service Quality Dimension
Comparative Service Quality Analysis of Public and Private Sector Banks Using SERVQUAL Model brought out many interesting facts about consumer’s perception of service quality dimensions. The major findings with respect to each dimension is given below-

7.3.1Customer’s Perception With Regard To Communication Dimension
The analysis of communication dimension shows that customer perception in public and private is almost same. Yet, Statistical difference between public and private sector with regard to language used by banks to communicate with customers, public sector customers are more satisfied as they can get information in the local language Hindi. Yet public sector banks fail to assure their customers about resolving their problems. Private sector banks customers are more confident about finding a solution to their problems with regard to e banking. It was found that customers of private sector banks in comparison with customers of public sector banks in Jabalpur are more confident that their issues with regards to any banking transaction is resolved using e banking channels.

7.3.2Customer’s Perception With Regard To Security Dimension
Security is the major concern for using e-banking services. After analysis it was found that both the sectors customers are neutral regarding their expectations from their banks with regard to security . Customers expectations are higher with regard to publishing important info/tips on how to maintain security while using either of the e banking tools and case of loss of debit/credit cards card should be blocked immediately.

7.3.3Customer’s Perception With Regard To Ease Of Access Dimension
It was found that there is significant difference in service quality with regard to ease of access. With regard to convenient location of service facility(location of ATM, POS terminals), online purchase of goods and services and in case of any bill payment using e banking than physical payment, private sector bank customers are more satisfied. During demonetization India has seen a phenomenal increase in the number of digital wallets to make payments easier. Less number of public sector banks offering e wallets may be one of the reason for less satisfaction among their customers. It can be concluded that with regard to ease of access dimension private sector customers are more satisfied than the public sector customers in Jabalpur district.

7.3.4Customer’s Perception With Regard To Responsiveness Dimension
Bank’s response to its customers query plays a significant role in determining perception. It was found that there is a significant difference with regard to “getting through the customer care of my bank to solve E_ banking services” and “when customers visit the branch for any help with E-banking services”. In this regard private sector banks customers seem to be more satisfied than the customers of public banks in Jabalpur. This might be due to various reasons such better customer relationship Management (CRM), and effectiveness of employees in private sector bank etc. to name a few.

7.3.5Customer’s Perception With Regard To Reliability Dimension
Furnishing a reliable customer service can increase customer loyalty to a great extent, reduce churn rate and enhance overall sales revenues of business. While examining the consumer’s perception with regard to reliability dimension of e-banking services in Jabalpur district it was found that there is no significant statistical difference between two sectors with regard to reliability dimension. However higher mean score for private sector showed that private sector bank’s customers are more satisfied than public sector customers in Jabalpur.
7.4Major Recommendations
Based on the above findings , this research study intends to make following recommendation to public and private sector banks operating in Jabalpur district.

Finding from the Public sector banks demographic info it can be concluded the public sectors banks in Jabalpur has a greater segment of female population unexplored. Initiating new awareness programs and marketing schemes in order to attract women customers in order to increase their customer base would help public sector banks in Jabalpur to a great extent.

Age wise distribution of respondents show that in public sector banks 28 % of the respondent are from the age group of 18-25 which is higher than the 20 % segment of 26-35 age group customers. This indicates that public sector banks are taking initiative to attract younger populations. However there is still a wide scope for the same. Hence public sector banks have to come up with more offers and schemes to cater to this age group.

Private sector banks have only 24% of the older population from the age group of 45 and above. It is noteworthy that this segment of the population has stable source of income therefore steps to attract more customer in this segment with have a positive impact of banks’ income and performance.

Private sector banks need to improve its communication & promotion process to increase awareness of its various e banking services and their benefits among less educated class.

Public banks in Jabalpur may need to offer additional & personalize e-banking services to attract high income group.

Due to various initiatives taken in the field of digitalization India is now moving towards a cashless economy. Therefore public sector banks needs to take regress actions for promoting internet banking and mobile banking.

Online net banking offers which allows customers to Save copiously  for example cash back offers etc , no surcharge/service charge for digital payments etc. and expansion of acceptance infrastructure of cards will boost e banking transactions among public bank customers in Jabalpur district.

In order to motivate banks’ customers to make digital payments, Public sector banks have to keep their incentives at par or beyond of what private sector banks offer to its customers. There is a great need to bring awareness about benefit of digital payments among public sector banks’ customers.

This fact presents a sea of opportunities for private and public sector banks in Jabalpur to introduce more attractive and exclusive offers, which may entice existing and new customers to use e banking for online shopping.

Public and private sector banks have their Grievance Redressal Mechanism in place which addresses customer complaints. However both the banks should aim at least operational difficulty for its customers
In both the public and private sector banks good customer experience is sporadic. Banks need to look forward to trigger word of mouth by better customer experience. Exceeding customer’s expectations will turn e bansking customers into banks’ ambassador to recommend their banking services.

In order to motivate customers to use e-banking services more than visiting the bank branch , private sector banks need to provide info in the Local language as banks’ customers in Jabalpur would prefer it. This finding if combined with the fact that India is a nation of many languages and majority of population living in rural area speaking regional languages, leaves many rooms for improvements in both public and private sector banks at national level. We cannot deny the fact that developing e banking website in regional language calls for a huge investment from both the banks. However such investment would be a onetime investment reaping long term benefits for the banks
Public sector banks in Jabalpur will have to take more efforts in order to resolve customers issues. This in the long run will positively impact customers loyalty and in turn increase profitability.

Customers higher expectation with regard to important information on how to maintain security, calls for more investment from banks in advertisement to be made in public interest through various media channels. Both public and private sector banks are suggested to make use of local media channels more to publish such important information. Always going out of the way to showcase the security measures banks have in place would help.

Both the banks are also suggested to keep service request for blocking the debit and credit card on high priority among all others services and such issues should be resolved immediately.

Public sector banks are suggested to reassess the location and number of their ATMs and POS terminals so that it is easily reachable by its customers. In case of online bill payment promoting usage of e-wallets it is recommended not only for public sector banks but also for private sector banks.

With regard to online purchase of goods and service it has been noticed that there are millions of online shoppers that are directed from social media to an online shopping website. Banks are suggested to evolve in a new way to improve interaction with customers through social media. It has the power to gather new business for the banks, provided the security measures are taken care of.
Banking customers today look for three things immediacy, high-quality, and personalization. It is recommended for the Public sector banks in Jabalpur to provide more competitive CRM solution to its customers. It also suggested to invest in employee training in order to handle customer requests be online or at branch in a way that constructs banks brand value.

7.5Direction for Future Research
The present study has made an attempt to understand consumer’s satisfaction through a comparative analysis of consumer perception of e-banking sector in Jabalpur District. This could be studied for all other districts of Madhya Pradesh and other states of India.
This study mainly focused on comparative performance of public and private sector banks. Future research can be carried out with reference to foreign banks also as they are the early adopters of e-banking.

Present study focuses only SERVQUAL model service quality, in future the research can be done with reference to other service quality models such as SERVPREF and KANO etc.

The study has been focused only on the consumer’s perception and service quality aspect of e-banking. The effect of e-banking on profitability has not been considered, that can be a good area for future research.

The study does not include effect of demonetization on e-banking preferences and consumer’s perception about e-banking. This can also be a good platform for further study.

7.3.5Customer’s Perception With Regard To Reliability Dimension
Furnishing a reliable customer service can increase customer loyalty to a great extent, reduce churn rate and enhance overall sales revenues of business. While examining the consumer’s perception with regard to reliability dimension of e-banking services in Jabalpur district it was found that there is no significant statistical difference between two sectors with regard to reliability dimension. However higher mean score for private sector showed that private sector bank’s customers are more satisfied than public sector customers in Jabalpur.
7.4Major Recommendations
Based on the above findings , this research study intends to make following recommendation to public and private sector banks operating in Jabalpur district.

Finding from the Public sector banks demographic info it can be concluded the public sectors banks in Jabalpur has a greater segment of female population unexplored. Initiating new awareness programs and marketing schemes in order to attract women customers in order to increase their customer base would help public sector banks in Jabalpur to a great extent.

Age wise distribution of respondents show that in public sector banks 28 % of the respondent are from the age group of 18-25 which is higher than the 20 % segment of 26-35 age group customers. This indicates that public sector banks are taking initiative to attract younger populations. However there is still a wide scope for the same. Hence public sector banks have to come up with more offers and schemes to cater to this age group.

Private sector banks have only 24% of the older population from the age group of 45 and above. It is noteworthy that this segment of the population has stable source of income therefore steps to attract more customer in this segment with have a positive impact of banks’ income and performance.

Private sector banks need to improve its communication & promotion process to increase awareness of its various e banking services and their benefits among less educated class.

Public banks in Jabalpur may need to offer additional & personalize e-banking services to attract high income group.

Due to various initiatives taken in the field of digitalization India is now moving towards a cashless economy. Therefore public sector banks needs to take regress actions for promoting internet banking and mobile banking.

Online net banking offers which allows customers to Save copiously  for example cash back offers etc , no surcharge/service charge for digital payments etc. and expansion of acceptance infrastructure of cards will boost e banking transactions among public bank customers in Jabalpur district.

In order to motivate banks’ customers to make digital payments, Public sector banks have to keep their incentives at par or beyond of what private sector banks offer to its customers. There is a great need to bring awareness about benefit of digital payments among public sector banks’ customers.

This fact presents a sea of opportunities for private and public sector banks in Jabalpur to introduce more attractive and exclusive offers, which may entice existing and new customers to use e banking for online shopping.

Public and private sector banks have their Grievance Redressal Mechanism in place which addresses customer complaints. However both the banks should aim at least operational difficulty for its customers
In both the public and private sector banks good customer experience is sporadic. Banks need to look forward to trigger word of mouth by better customer experience. Exceeding customer’s expectations will turn e bansking customers into banks’ ambassador to recommend their banking services.

In order to motivate customers to use e-banking services more than visiting the bank branch , private sector banks need to provide info in the Local language as banks’ customers in Jabalpur would prefer it. This finding if combined with the fact that India is a nation of many languages and majority of population living in rural area speaking regional languages, leaves many rooms for improvements in both public and private sector banks at national level. We cannot deny the fact that developing e banking website in regional language calls for a huge investment from both the banks. However such investment would be a onetime investment reaping long term benefits for the banks
Public sector banks in Jabalpur will have to take more efforts in order to resolve customers issues. This in the long run will positively impact customers loyalty and in turn increase profitability.

Customers higher expectation with regard to important information on how to maintain security, calls for more investment from banks in advertisement to be made in public interest through various media channels. Both public and private sector banks are suggested to make use of local media channels more to publish such important information. Always going out of the way to showcase the security measures banks have in place would help.

Both the banks are also suggested to keep service request for blocking the debit and credit card on high priority among all others services and such issues should be resolved immediately.

Public sector banks are suggested to reassess the location and number of their ATMs and POS terminals so that it is easily reachable by its customers. In case of online bill payment promoting usage of e-wallets it is recommended not only for public sector banks but also for private sector banks.

With regard to online purchase of goods and service it has been noticed that there are millions of online shoppers that are directed from social media to an online shopping website. Banks are suggested to evolve in a new way to improve interaction with customers through social media. It has the power to gather new business for the banks, provided the security measures are taken care of.
Banking customers today look for three things immediacy, high-quality, and personalization. It is recommended for the Public sector banks in Jabalpur to provide more competitive CRM solution to its customers. It also suggested to invest in employee training in order to handle customer requests be online or at branch in a way that constructs banks brand value.

7.5Direction for Future Research
The present study has made an attempt to understand consumer’s satisfaction through a comparative analysis of consumer perception of e-banking sector in Jabalpur District. This could be studied for all other districts of Madhya Pradesh and other states of India.
This study mainly focused on comparative performance of public and private sector banks. Future research can be carried out with reference to foreign banks also as they are the early adopters of e-banking.

Present study focuses only SERVQUAL model service quality, in future the research can be done with reference to other service quality models such as SERVPREF and KANO etc.

The study has been focused only on the consumer’s perception and service quality aspect of e-banking. The effect of e-banking on profitability has not been considered, that can be a good area for future research.

The study does not include effect of demonetization on e-banking preferences and consumer’s perception about e-banking. This can also be a good platform for further study.

7.1 Findings With Reference To Customer’s Profile:
For this research study total of 400 respondents were randomly selected (200 each from the private and the public sector). A comprehensive information about their demographic profile helped to understand e-banking with reference to the demography of Jabalpur district.

7.1.1.Gender wise Distribution Of – Banking Customers In Jabalpur
Census 2011, gender-wise population distribution shows that 52% of the population are male and 48% are female. Keeping this in mind, analyzing the gender wise population distribution of public and private sector banks, it was found that out of respondents public sector banks in Jabalpur 72% are male and 29% are female whereas out of respondents from in Private sector banks of Jabalpur 53% are male and 47% are female. Public sector shows unequal gender distribution of the customers whereas private sector shows nearly equal gender distribution of the customers.

7.1.2Age-wise Distribution Of – Banking Customers In Jabalpur District
The comparative demographic analysis of customers of public and private sector banks in Jabalpur district showed a contrast between the age wise distribution of private and public sector banks in Jabalpur. Approximately 30 % of e-banking users of public sector banks are of the age 60 and above and approx whereas for private sector its only 12%.34% of the private bank’s e-banking users are of age group 18-25 whereas in public sector its only 14%. There is a dominance of younger population approx 54% in the age group of 18-35 in private bank users whereas public sector banks show a dominance of older population approx 76% from age group 35 and above.

7.1.3Education wise Distribution of e-Banking Customers In Jabalpur District
Jabalpur being an education hub of Madhya Pradesh which has 82% literacy rate. In this light, the education wise distribution of the customers in public and private sector banks identified that in graduate and postgraduate and above category private sector has approx. 63% of the respondents whereas public sector showed only 45% respondents in this category. The public sector banks have less educated e-banking customers in Jabalpur than that of private sector banks. Private sector banks are more popular among highly educated people.

7.1.4Occupation wise Distribution Of – Banking Customers In Jabalpur District
For analyzing the occupation wise distribution of public and private sector banks, the respondents were classified into three categories- salaried, self-employed and others. The study found out that that 49% of the total e-banking users from public sector respondents are salaried class people. Among self-employed and other e-banking users private bank is preferred as it shows 35 % and 36% respectively for these group among respondents of private sector banks.

7.1.5Income-Group Wise Distribution Of – Banking Customers In Jabalpur District
When grouped as per the income tax slab respondents of public and private sector banks, it was found that out of 400 respondents of this study, Public sector banks have 44% respondents earn under 2.5 Lakh whereas among private sector respondents approx 59% of the respondents earn above 5 Lakh. It can be concluded that more of the taxpaying population of Jabalpur District have their bank accounts with private sector banks.

7.2Findings With Reference To E-Channels
7.2.1Most Preferred E-Banking Channel among customers of Jabalpur District
When it comes to e-channels, public and private sector banks in Jabalpur district offer the convenience of may channel to their customers to perform banking transaction. This study also found out the most preferred e-banking channels among e-banking users of Jabalpur district. It was found that out of all the e-banking channels services public sector respondents first preference is still ATM followed by phone banking whereas in public sector ATM and phone banking are least preferred. Internet banking followed by mobile banking is the first choice of private sector respondents to carry out any banking transactions.

7.2.2Most Performed Banking Transaction Using E-Channels
With the initiation of e-banking, the bank’s main objective was to allow its customer to perform most of the banking transaction via e-channels. This study also investigated about which banking transaction is carried out mostly by using e-channels by public and private sector banks of Jabalpur district. It was found that Among public sector respondents E-banking mostly used for only checking balance ; other information and activating or deactivating debit of credit cards whereas transfer of funds(ranked 6th with WAS 4.86), bill payments( ranked 5th with 5.61 WAS) and online shopping (ranked 7th with 4.73 WAS) are least performed using e channels. It can be concluded from the above that cash transactions are still the preferred mode of payment among respondents of public sector banks. Among private sector, banks’ respondents prefer payments using e-banking as the transfer of funds (ranked 1st with 6.05 WAS), bill payment (ranked 3rd 5.54 WAS). Yet for online shopping and booking, they prefer cash payments.
7.2.3Various Operational Problems Faced By Bank’s Customers with regard to e-banking
Use of technology to perform banking transactions causes many challenges for the customer. The study investigated the main problems faced by banks customers in this regards. It was found that Customers of both public and private sector banks in Jabalpur face operational problems with regard to e-banking services, however, the major problems faced by both banks customers are different. In private sector 3.5 percent faced it due to server down, 8.5 percent due to untrained personnel, 19.5 due to ATM working, 25 percent for the ignorance of customer themselves, 25 percent for availability of cash and 7 percent due to the delay of services. However in the public sector, the situation is slightly different, here the customers encounter the problem due to server down (12.43 percent), ATM not working properly (18.40 percent), the location of onsite and offsite ATM (12.43 percent). Operational difficulties at e-banking transactions may impact customer loyalty and lead to customers’ switching to other banks.

7.2.4Awareness Among Customers About E-Banking
A well informed consumer is very crucial for the business. He  is capable of making proper decisions, identify an insight about a bank’s product even before buying it. This study also examined that out of many available channels which one is more fruitful in order to bring awareness among e-banking customers of private and public sector banks of Jabalpur district. It was noticed that that 35% respondent of the private sector and 27 % of public sector come to know about e-banking through advertisement, 13.5% of private sector banks and 24% of the public sector bank came to know through the manager, through websites 15.5% in private and 16.9 % in public sector. So the knowledge about e-banking services is highest through the advertisement of banks and lowest through the mobile banking services in both public sector and private sector banks. The knowledge through managers, websites, email and other customers comprises a very small proportion.

7.3Findings Of Customer’s Perception With Regards To Service Quality Dimension
Comparative Service Quality Analysis of Public and Private Sector Banks Using SERVQUAL Model brought out many interesting facts about consumer’s perception of service quality dimensions. The major findings with respect to each dimension is given below-

7.3.1Customer’s Perception With Regard To Communication Dimension
The analysis of communication dimension shows that customer perception in public and private is almost same. Yet, Statistical difference between public and private sector with regard to language used by banks to communicate with customers, public sector customers are more satisfied as they can get information in the local language Hindi. Yet public sector banks fail to assure their customers about resolving their problems. Private sector banks customers are more confident about finding a solution to their problems with regard to e banking. It was found that customers of private sector banks in comparison with customers of public sector banks in Jabalpur are more confident that their issues with regards to any banking transaction is resolved using e banking channels.

7.3.2Customer’s Perception With Regard To Security Dimension
Security is the major concern for using e-banking services. After analysis it was found that both the sectors customers are neutral regarding their expectations from their banks with regard to security . Customers expectations are higher with regard to publishing important info/tips on how to maintain security while using either of the e banking tools and case of loss of debit/credit cards card should be blocked immediately.

7.3.3Customer’s Perception With Regard To Ease Of Access Dimension
It was found that there is significant difference in service quality with regard to ease of access. With regard to convenient location of service facility(location of ATM, POS terminals), online purchase of goods and services and in case of any bill payment using e banking than physical payment, private sector bank customers are more satisfied. During demonetization India has seen a phenomenal increase in the number of digital wallets to make payments easier. Less number of public sector banks offering e wallets may be one of the reason for less satisfaction among their customers. It can be concluded that with regard to ease of access dimension private sector customers are more satisfied than the public sector customers in Jabalpur district.

7.3.4Customer’s Perception With Regard To Responsiveness Dimension
Bank’s response to its customers query plays a significant role in determining perception. It was found that there is a significant difference with regard to “getting through the customer care of my bank to solve E_ banking services” and “when customers visit the branch for any help with E-banking services”. In this regard private sector banks customers seem to be more satisfied than the customers of public banks in Jabalpur. This might be due to various reasons such better customer relationship Management (CRM), and effectiveness of employees in private sector bank etc. to name a few.

7.3.5Customer’s Perception With Regard To Reliability Dimension
Furnishing a reliable customer service can increase customer loyalty to a great extent, reduce churn rate and enhance overall sales revenues of business. While examining the consumer’s perception with regard to reliability dimension of e-banking services in Jabalpur district it was found that there is no significant statistical difference between two sectors with regard to reliability dimension. However higher mean score for private sector showed that private sector bank’s customers are more satisfied than public sector customers in Jabalpur.
7.4Major Recommendations
Based on the above findings , this research study intends to make following recommendation to public and private sector banks operating in Jabalpur district.

Finding from the Public sector banks demographic info it can be concluded the public sectors banks in Jabalpur has a greater segment of female population unexplored. Initiating new awareness programs and marketing schemes in order to attract women customers in order to increase their customer base would help public sector banks in Jabalpur to a great extent.

Age wise distribution of respondents show that in public sector banks 28 % of the respondent are from the age group of 18-25 which is higher than the 20 % segment of 26-35 age group customers. This indicates that public sector banks are taking initiative to attract younger populations. However there is still a wide scope for the same. Hence public sector banks have to come up with more offers and schemes to cater to this age group.

Private sector banks have only 24% of the older population from the age group of 45 and above. It is noteworthy that this segment of the population has stable source of income therefore steps to attract more customer in this segment with have a positive impact of banks’ income and performance.

Private sector banks need to improve its communication & promotion process to increase awareness of its various e banking services and their benefits among less educated class.

Public banks in Jabalpur may need to offer additional & personalize e-banking services to attract high income group.

Due to various initiatives taken in the field of digitalization India is now moving towards a cashless economy. Therefore public sector banks needs to take regress actions for promoting internet banking and mobile banking.

Online net banking offers which allows customers to Save copiously  for example cash back offers etc , no surcharge/service charge for digital payments etc. and expansion of acceptance infrastructure of cards will boost e banking transactions among public bank customers in Jabalpur district.

In order to motivate banks’ customers to make digital payments, Public sector banks have to keep their incentives at par or beyond of what private sector banks offer to its customers. There is a great need to bring awareness about benefit of digital payments among public sector banks’ customers.

This fact presents a sea of opportunities for private and public sector banks in Jabalpur to introduce more attractive and exclusive offers, which may entice existing and new customers to use e banking for online shopping.

Public and private sector banks have their Grievance Redressal Mechanism in place which addresses customer complaints. However both the banks should aim at least operational difficulty for its customers
In both the public and private sector banks good customer experience is sporadic. Banks need to look forward to trigger word of mouth by better customer experience. Exceeding customer’s expectations will turn e bansking customers into banks’ ambassador to recommend their banking services.

In order to motivate customers to use e-banking services more than visiting the bank branch , private sector banks need to provide info in the Local language as banks’ customers in Jabalpur would prefer it. This finding if combined with the fact that India is a nation of many languages and majority of population living in rural area speaking regional languages, leaves many rooms for improvements in both public and private sector banks at national level. We cannot deny the fact that developing e banking website in regional language calls for a huge investment from both the banks. However such investment would be a onetime investment reaping long term benefits for the banks
Public sector banks in Jabalpur will have to take more efforts in order to resolve customers issues. This in the long run will positively impact customers loyalty and in turn increase profitability.

Customers higher expectation with regard to important information on how to maintain security, calls for more investment from banks in advertisement to be made in public interest through various media channels. Both public and private sector banks are suggested to make use of local media channels more to publish such important information. Always going out of the way to showcase the security measures banks have in place would help.

Both the banks are also suggested to keep service request for blocking the debit and credit card on high priority among all others services and such issues should be resolved immediately.

Public sector banks are suggested to reassess the location and number of their ATMs and POS terminals so that it is easily reachable by its customers. In case of online bill payment promoting usage of e-wallets it is recommended not only for public sector banks but also for private sector banks.

With regard to online purchase of goods and service it has been noticed that there are millions of online shoppers that are directed from social media to an online shopping website. Banks are suggested to evolve in a new way to improve interaction with customers through social media. It has the power to gather new business for the banks, provided the security measures are taken care of.
Banking customers today look for three things immediacy, high-quality, and personalization. It is recommended for the Public sector banks in Jabalpur to provide more competitive CRM solution to its customers. It also suggested to invest in employee training in order to handle customer requests be online or at branch in a way that constructs banks brand value.

7.5Direction for Future Research
The present study has made an attempt to understand consumer’s satisfaction through a comparative analysis of consumer perception of e-banking sector in Jabalpur District. This could be studied for all other districts of Madhya Pradesh and other states of India.
This study mainly focused on comparative performance of public and private sector banks. Future research can be carried out with reference to foreign banks also as they are the early adopters of e-banking.

Present study focuses only SERVQUAL model service quality, in future the research can be done with reference to other service quality models such as SERVPREF and KANO etc.

The study has been focused only on the consumer’s perception and service quality aspect of e-banking. The effect of e-banking on profitability has not been considered, that can be a good area for future research.

The study does not include effect of demonetization on e-banking preferences and consumer’s perception about e-banking. This can also be a good platform for further study.

7.3.5Customer’s Perception With Regard To Reliability Dimension
Furnishing a reliable customer service can increase customer loyalty to a great extent, reduce churn rate and enhance overall sales revenues of business. While examining the consumer’s perception with regard to reliability dimension of e-banking services in Jabalpur district it was found that there is no significant statistical difference between two sectors with regard to reliability dimension. However higher mean score for private sector showed that private sector bank’s customers are more satisfied than public sector customers in Jabalpur.
7.4Major Recommendations
Based on the above findings , this research study intends to make following recommendation to public and private sector banks operating in Jabalpur district.

Finding from the Public sector banks demographic info it can be concluded the public sectors banks in Jabalpur has a greater segment of female population unexplored. Initiating new awareness programs and marketing schemes in order to attract women customers in order to increase their customer base would help public sector banks in Jabalpur to a great extent.

Age wise distribution of respondents show that in public sector banks 28 % of the respondent are from the age group of 18-25 which is higher than the 20 % segment of 26-35 age group customers. This indicates that public sector banks are taking initiative to attract younger populations. However there is still a wide scope for the same. Hence public sector banks have to come up with more offers and schemes to cater to this age group.

Private sector banks have only 24% of the older population from the age group of 45 and above. It is noteworthy that this segment of the population has stable source of income therefore steps to attract more customer in this segment with have a positive impact of banks’ income and performance.

Private sector banks need to improve its communication & promotion process to increase awareness of its various e banking services and their benefits among less educated class.

Public banks in Jabalpur may need to offer additional & personalize e-banking services to attract high income group.

Due to various initiatives taken in the field of digitalization India is now moving towards a cashless economy. Therefore public sector banks needs to take regress actions for promoting internet banking and mobile banking.

Online net banking offers which allows customers to Save copiously  for example cash back offers etc , no surcharge/service charge for digital payments etc. and expansion of acceptance infrastructure of cards will boost e banking transactions among public bank customers in Jabalpur district.

In order to motivate banks’ customers to make digital payments, Public sector banks have to keep their incentives at par or beyond of what private sector banks offer to its customers. There is a great need to bring awareness about benefit of digital payments among public sector banks’ customers.

This fact presents a sea of opportunities for private and public sector banks in Jabalpur to introduce more attractive and exclusive offers, which may entice existing and new customers to use e banking for online shopping.

Public and private sector banks have their Grievance Redressal Mechanism in place which addresses customer complaints. However both the banks should aim at least operational difficulty for its customers
In both the public and private sector banks good customer experience is sporadic. Banks need to look forward to trigger word of mouth by better customer experience. Exceeding customer’s expectations will turn e bansking customers into banks’ ambassador to recommend their banking services.

In order to motivate customers to use e-banking services more than visiting the bank branch , private sector banks need to provide info in the Local language as banks’ customers in Jabalpur would prefer it. This finding if combined with the fact that India is a nation of many languages and majority of population living in rural area speaking regional languages, leaves many rooms for improvements in both public and private sector banks at national level. We cannot deny the fact that developing e banking website in regional language calls for a huge investment from both the banks. However such investment would be a onetime investment reaping long term benefits for the banks
Public sector banks in Jabalpur will have to take more efforts in order to resolve customers issues. This in the long run will positively impact customers loyalty and in turn increase profitability.

Customers higher expectation with regard to important information on how to maintain security, calls for more investment from banks in advertisement to be made in public interest through various media channels. Both public and private sector banks are suggested to make use of local media channels more to publish such important information. Always going out of the way to showcase the security measures banks have in place would help.

Both the banks are also suggested to keep service request for blocking the debit and credit card on high priority among all others services and such issues should be resolved immediately.

Public sector banks are suggested to reassess the location and number of their ATMs and POS terminals so that it is easily reachable by its customers. In case of online bill payment promoting usage of e-wallets it is recommended not only for public sector banks but also for private sector banks.

With regard to online purchase of goods and service it has been noticed that there are millions of online shoppers that are directed from social media to an online shopping website. Banks are suggested to evolve in a new way to improve interaction with customers through social media. It has the power to gather new business for the banks, provided the security measures are taken care of.
Banking customers today look for three things immediacy, high-quality, and personalization. It is recommended for the Public sector banks in Jabalpur to provide more competitive CRM solution to its customers. It also suggested to invest in employee training in order to handle customer requests be online or at branch in a way that constructs banks brand value.

7.5Direction for Future Research
The present study has made an attempt to understand consumer’s satisfaction through a comparative analysis of consumer perception of e-banking sector in Jabalpur District. This could be studied for all other districts of Madhya Pradesh and other states of India.
This study mainly focused on comparative performance of public and private sector banks. Future research can be carried out with reference to foreign banks also as they are the early adopters of e-banking.

Present study focuses only SERVQUAL model service quality, in future the research can be done with reference to other service quality models such as SERVPREF and KANO etc.

The study has been focused only on the consumer’s perception and service quality aspect of e-banking. The effect of e-banking on profitability has not been considered, that can be a good area for future research.

The study does not include effect of demonetization on e-banking preferences and consumer’s perception about e-banking. This can also be a good platform for further study.

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