Submitted To: Submitted By:

Lect. Nisha Aggarwal Monika

Roll No. 40

BBA-6th Sem
Synopsis on E-Banking

Executive Summary

It is an umbrella term for the process by which a customer may perform banking
transactions electronically without visiting a brick-and-mortar institution. The following
terms all refer to one form or another of electronic banking: personal computer (PC)
banking, Internet banking, virtual banking, online banking, home banking, remote
electronic banking, and phone banking. PC banking and Internet or online banking are
the most frequently used designations. It should be noted, however, that the terms used to
describe the various types of electronic banking are often used interchangeably.

Introduction to E-Banking

E-banking is defined as the automated delivery of new and traditional banking products
and services directly to customers through electronic, interactive communication
channels. E-banking includes the systems that enable financial institution customers,
individuals or businesses, to access accounts, transact business, or obtain information on
financial products and services through a public or private network, including the
Internet.

Customers access e-banking services using an intelligent electronic device, such as a

personal computer (PC), personal digital assistant (PDA), automated teller machine
(ATM), kiosk, or Touch Tone telephone. While the risks and controls are similar for the
various e-banking access channels, this booklet focuses specifically on Internet-based
services due to the Internet's widely accessible public network. Accordingly, this booklet
begins with a discussion of the two primary types of Internet websites: informational and
transactional.
PC banking is a form of online banking that enables customers to execute bank
transactions from a PC via a modem. In most PC banking ventures, the bank offers the
customer a proprietary financial software program that allows the customer to perform
financial transactions from his or her home computer. The customer then dials into the
bank with his or her modem, downloads data, and runs the programs that are resident on
the customer's computer. Currently, many banks offer PC banking systems that allow
customers to obtain account balances and credit card statements, pay bills, and transfer
funds between accounts.

Internet banking, sometimes called online banking, is an outgrowth of PC banking.

Internet banking uses the Internet as the delivery channel by which to conduct banking
activity, for example, transferring funds, paying bills, viewing checking and savings
account balances, paying mortgages, and purchasing financial instruments and
certificates of deposit. An 0Internet banking customer accesses his or her accounts from
474725browser- software that runs Internet banking programs resident on the bank's
World Wide Web server, not on the user's PC. Net Banker defines a " true Internet bank"
as one that provides account balances and some transactional capabilities to retail
customers over the World Wide Web. Internet banks are also known as virtual, cyber,
net, interactive, or web banks.

To date, more banks have established an advertising presence on the Internet- primarily
in the form of informational or interactive web sites-than have created transactional web
sites. However, a number of Banks that do not yet offer transactional Internet banking
services have indicated on their web sites that they will offer such banking activities in
the future.

Internet banks generally have lower operational and transactional costs than do traditional
brick-and-mortar banks; they are often able to offer low-cost checking and high-yield
Certificates of deposit. Internet banking is not limited to a physical site; some Internet
banks exist without physical branches, for example, Tele bank (Arlington, Virginia) and
Bank net (UK). Further, in some cases, web banks are not restricted to conducting
transactions within national borders and have the ability to make transactions involving
large amounts of assets instantaneously. According to industry analysts, electronic
banking provides a variety of attractive possibilities for remote account access, including:

• Availability of inquiry and transaction services around the clock;

 • worldwide connectivity;
• Easy access to transaction data, both recent and historical; and
• "Direct customer control of international movement of funds without
intermediation of financial institutions in customer's jurisdiction.

Need, objective, scope & methodology

Need of the study
• To determining growth direction of online banking service.
• Promoting E-banking services in banking industry.
• Customer perception will be taken into consideration about the internet banking.
Objectives
• To study about the factors that affects the customer perception towards e
Banking of bank
• To know about the current and future prospects of E-Banking to the customers
• To find out the major problems faced by the customers while using e-banking
Services.
Hypothesis Ease of Use
• Ease of use does not influence the use of E Banking services.
• Ease of use does influence the use of E Banking services.
Direct Access
Direct Access does not influence the use of E Banking services.
Direct Access does influence the use of E Banking services.
Friends/Relatives
• Friends/Relatives do not influence the use of E Banking services.
Friends/Relatives do influence the use of E Banking services.
Scope of the Study
.• All the classes of the customers were taken into consideration
.• This study was covered E-Banking service sector.
• This is a realistic source directly collected from the customers of Bank.
Research Methodology
Research Methodology is defined as human activity based on intellectual
application in the investigation of matter. The primary purpose for applied
research is discovering, interpreting, and the development of methods and systems
for the advancement of human knowledge on a wide variety of scientific
matters of our world and the universe. The term research is also used to
describe an entire collection of information about a particular subject.
Methodology
Methodology is the method followed while conducting the study on a
particular project. Through this methodology a systematic study is
conducted on the basis of which the basis of a report is produced. It is a written
game plan for conducting Research. Research methodology has many dimensions.
It includes not only the research methods but also considers the logic behind the
methods used in the context of the study and explains why only a particular
method or technique has been used. It also helps to understand the assumptions
underlying various techniques and by which they can decide that certain
techniques will
be applicable to certain problems and other will not. Therefore in order to solve a
research problem, it is necessary to design a research methodology for
the problem as the some may differ from problem to problem. The
methodology adopted for studying the objectives was surveying the in-house
customers of these two banks.
Nature
The methodology adopted to achieve the project objective involved
descriptive research method. The
information required for fulfilling the objective of study w
a s c o l l e c t e d f r o m v a r i o u s p r i m a r y a n d secondary sources.
Type of Research
This study is DESCRIPTIVE in nature. It helps in breaking vague
problem into smaller and precise problem and emphasizes on discovering
of new ideas and insights.
Research Design
Research design constitutes the blue print for the collection,
measurement and analysis of data. The present study seeks to
identify the extent of preferences of E Banking over traditional
banking among service class. The research design is descriptive in nature. For
the selection of the sample, convenient sampling method was adopted and an
attempt has been made to include all the age groups and gender of every class.
Research Instrument
The instrument used for gathering data was questionnaire. To get
further insight in to the research problem, interview regarding their
buying practices too was made. This was done to crosscheck the
authenticity of the data provided. To supplement the primary data and to facilitate
the process of drawing inference, secondary data was collected from published
sources like magazines, journals, newspapers etc.
Data Collection
Keeping in view the nature of requirements of the study to collect all the relevant
information regarding the extent of awareness of the customers using E-
banking facilities offered by bank, direct personal interview method with
structured questionnaire was adopted for the collection of primary data.
Secondary data has been collected through the various internet sites by surfing on
Internet and from the records available with the bank.
Sources of data:
Following are the methods of sources of data:
Secondary data:
• Articles on E-Banking taken from journals, magazines published from time to
Time.
• Through internet.
Primary Data:
Questionnaire was used to collect primary data from respondents. The
questionnaire was structured type and contained questions relating to different
dimensions of e-banking preferences among service class such as level of usage,
factors influencing the usage of e-banking services, benefits accruing to the users
of e-banking services, problems encountered. An attempt was also
made to elicit reasons for its non-usage. The questions included in the
questionnaire were open-ended, dichotomous and offering multiple choices.
Sample Design and Size
In this research project Descriptive research design is used. Judgment and
Convenience sampling method will be used to get the information about online
banking. This method is used because we are interested in
exploring gender, age, or occupation disparities in terms of
o n l i n e b a n k i n g i n t h e p o p u l a t i o n . F o r conducting this research,
a structured questionnaire is prepared and sample of 150 customers
is taken from ICICI and HDFC bank.
Sampling Size
It indicates the numbers of people to be surveyed. Though large samples give
more reliable results than small samples but due to constraint of time and money,
the sample size was restricted to 150 respondents. The respondents belong to
different income group and profession.
Sampling Unit
It defines the target population that will be sampled i.e. it answers who is to
be surveyed. In this study, the sampling unit is the people of ICICI and HDFC,
SBI & PNB.
Tools and techniques of analysis:
The data so collected will be analyzed through the application of statistical
techniques, such as bar graphs and pie charts.
Data formulation: SPSS
Data Analysis tools: CHI SQUARE TEST
Questionnaire for E Banking?
1 Do you use any e-banking services?

A- Yes (91)
B- No (64)

2 How often do you use e-banking per week?

A- Never (5)
B- 1 time (47)
C- 2-3 times (17)
D- 4-6 times (11)
E- Every day (10)

3 Do you use any of the follows when you use e-banking?(choose the most
Frequently used one)

A. Security deivce (47)

B. SMS text password (2)
C. E-certificate (6)
D. never use these (36)

5 How often do you use the item you chose per week?

A- Never (31)
B- 1 time (35)
C- 2-3 times (10)
D- 4-6 times (5)
E- Every day (2)

6 Please rate, how convenient do you think of using this e-banking item?
 A- 1 (3)
B- 2 (8)
C- 3 (27)
D- 4 (30)
E- 5 (11)

7 Please rate, how reliable do you think of using this e-banking item?

A- 1 (3)
B- 2 (6)
C- 3 (24)
D- 4 (34)
E- 5 (13)
8 Which of the follows do you prefer most to use for authentication (verification)?
A. Security deivce (84)
B. SMS text password (receive the one-time used password
from the bank via SMS) (33)
C. E-certificate (38)
10 Age range
A- 15 - 18 (6)
B- 19 - 23 (144)
C- 24 - 29 (4)
D- 30 - 35 (0)
E- 36 - 41 (1)
F- 42 - 47 (0)
G- 48 or above (0)

11 Gender
A- Male (83)
B- Female (72)
Bibliography

a) http://www.scribd.com/doc/49627165/consumer-behaviour-towards-E-Banking-

Final-report

b) http://www.oppapers.com/essays/Challenges-Of-E-Banking-In-India/569710
c) http://www.scribd.com/doc/18028736/Online-Banking-System
d) http://www.indianmba.com/Faculty_Column/FC545/fc545.html