A Study on Customer Perception and Awareness in the Usage of Internet Banking

Abstract

Internet banking is a subject receiving great attention in the banking industry and the regulatory body. As with other areas of e-commerce, discussions about Internet banking often proceed without reference to the actual state of market developments. This research describes the current state of Internet banking and discusses its implications for the banking industry. In today’s scenario most of banks offer Banking through the Electronic medium such as Internet, Mobile Banking as their distribution channels whereas a decade ago, all of this banks were generally offering their services only through the traditional way. Internet Banking’s impact on consolidation in the banking industry is uncertain. The economics of Internet banking may favor large institutions, either because of economies of scale and scope, or because of the need to advertise heavily and large capital investments. This research presents the related technology, security issues and data, drawn from a primary survey of some highly reputed banks that offers Internet banking facilities, on the products and services they offer. In addition to that, it investigates the profile of banks that offer Internet banking, using statistical analysis, relative to other banks with respect to profitability, cost efficiency, and other characteristics. The major tool for the data collection was a questionnaire. The study established that there was a significant positive relationship between Internet banking and customer satisfaction which is consistent with the findings.

Keywords: e- commerce, banking, technology, security issues, profitability, cost efficiency and customer satisfaction