EFFECT OF MOBILE BANKING ON

CUSTOMER SATISFACTION
 ABSTRACT

India is the second biggest mobile phone user country in the world. In India mobile
phones are not only used as a medium of voice communication but also for a mobile
services. Mobile services are defined as E-services that helps the consumers to handle
financial transactions by using Mobile Devices. Technology is a driving force in the
global age and is taking over in every way; mobile and internet banking is just a few
examples of the ever developing technology advancements. Mobile banking is a new
way of banking, as it makes it easier for consumers to access their finances, even from
rural/remote areas. For the commercial banks to improve on the current mobile
banking services they provide to the consumers they should first find out what the
expectations of consumers are and whether they are satisfied with the current services
provided by the banks. Banking is the foundation of each industry and for surviving in
the competitive world technology plays a very important role. M-banking is the new way
of banking. The reason behind growing trend of M-banking is that, it helps the
consumer to perform banking at anytime and anywhere. It makes consumers to access
their banking transactions very easily 24X7. In this research study we assess the
impact of M-banking on customer satisfaction
 CHAPTER 1
INTRODUCTION
 INTRODUCTION

At present the number of mobile phone account is higher than the population due to
the speedy development in wireless technology. It is also a fact that at present mobile
communications is not considered as luxury as it has reached the grass root of the
society where everybody could own a mobile phone. Further, the mobile operators
come up with various kinds of services to expand their network to fill any gap that
exists. Hence, mobile phones have created a platform to expand commercial
transactions in a very easy manner and have created a wide array of business
opportunities through the expansion of wireless communication. These developments
facilitate business transactions, trading, and purchasing of goods and services without
much effort. As a result of this, mobile phone has Become a very vital in day to day life
of banking customers.In this cashless society, majority of people would not like To
spend their valuable time at a bank branch for financial Transactions. Specially, young
customers feel that they should Enjoy latest technology even in banking activities.E-
Banking is defined as the automated delivery of new and traditional banking products
and services directly to customers through electronic,interactive communication
channels. Mobile banking, internet banking, tele banking, etc.. are electronic services
introduced by banks. Mobile banking is one of the fastest growing areas of modern
banking.In many countries, Mobile banking has risen as a well-known method of
banking. mobile banking is the fastest adopted technology in the world. Mobile
banking is the term used for performing banking transactions like balance enquiry,
money transfer, investment, paying bills, etc. using cell phone devices.Adoption rate of
M-Banking is highest in developing countries like India and China. In India, for the
customer satisfaction banking industry moving their concentration from traditional
banking to innovation (technology) banking. Mobile-banking removes the space & time
constraints from different banking transactions Internet banking also helps the
customer to access their banking facility anytime and anywhere. Customers can check
their bank statements, get the account details, transfer the money to the other account
and also can easily pay the bills sitting anytime, anywhere in the world. But the
disadvantage of the Internet banking is that, it requires the Internet connectivity and
computer. Cell phone usage has been increasing day by day mainly in Asian countries
like India. That’s why it can be said that, Mobile Banking has overcome this biggest
limitation of Internet Banking because it just requires the Smart Mobile
Phone.Customer satisfaction is a major aspect as to how the services provided by the
organizations should meet the expectations as well as should also exceed the
expectations of the customer. If the customer expectations of safety, reliability, security
& trust etc. is met by the services then we will say that, more consumers will connect
with into M-banking (High Customer Satisfaction) and if the expectations will not met
then we will say that customer satisfaction is low

OBJECTIVES OF THE STUDY

1.To examine the impact of mobile banking services on enhancing customer

satisfaction.

2.To examine the concept of ease of product use and customer satisfaction.

3. To examine the relevance of technology proficiency when using

mobile banking Platforms on customer satisfaction

SCOPE OF THE STUDY

As per TRAIS report on the telecommunication industry in india,the mobile phone

connections were increased very fast India’s total mobile subscribers base including
active and inactive users has reached more than 1,176 million. So, it indicates that
there is a great scope for mobile banking as the number of mobile users in india are
increasing rapidly.so a deeper understanding of mobile banking and various
parameters of it with respect to customer satisfaction will broaden the customer friendly
business amoung bankers. The research study will enlarge the scope for finding
new market, innovative product and suitable market segmentation amoung the new
players in the area of mobile banking
 METHODOLOGY

To conduct this project, both primary and secondary data were required

(a) Primary Data : Questionnaires are used to collect primary data

Different tools were used for the analysis and interpretation of data. Tool used as follows ;

 Tables

 Bar diagrams

 Pie diagrams

Sample Size

The respondents of the study consist of the people from kerala. A sample
of 100 persons has been selected for the purpose of collecting primary
data.Convenient sampling technique has been adopted for selecting the sample.
 CHAPTER 2
REVIEW OF LITERATURE
Siu and Mou (2008) examined the perception of customers regarding the service quality dimensions and
impact of e-SERVQUAL dimensions on customer satisfaction in internet banking. Factors like credibility,
efficiency, problem handling, and security were used to find the perception of customers towards the service
quality dimensions in internet banking. The data from 195 customers of banks were selected using an e-
SERVQUAL questionnaire and tools like factor analysis; t-test, one-way ANOVA and multiple regression tests
were used to find the perception of customers. Finding suggests that all three dimensions such as credibility,
efficiency, problem handling were found to be important in determining overall service quality perceptions of
customers except security. From the regression test, finding reveals that credibility, problem handling, and
security have significant impact on customer satisfaction

The study by Bharti M (2016) shows innovative virtual environment, immense efficiency, professed security,
improved timely updates and Enhanced Personalization were not associated with customer satisfaction related
to M-banking, Supportive access is an important factor directly associated with customer satisfaction related to
M-banking. The study concentrates on features of electronic banking on customer’s expectations and
satisfaction. This study also showed that, financial institutions should increase awareness of Mobile Banking
for fulfilling the expectations of the consumers.

The study of Jones (2015) reveled that, Mobile-banking offers various useful facilities like fund transfer and bill
payments, etc. Mobile banking also affects the customer’s behavior. Various applications of mobile phones
allows customers to do banking transactions by sitting at home. Customers can also do a money transfer or
balance enquiry with a single click. This kind of banking facility is urging customers to utilize mobile banking
services. Customers can perform their transactions on Mobile phones to save time and cost.

Kahandawa and Wijayanayake’s study (2014) showed that customer satisfaction is influenced by easy
accessibility, usefulness, etc. Study showed that in M-banking services, customer satisfaction is influenced by
relative advantage, usefulness, perception on risk, ease of use and current needs of consumers. It highlights
the factors by bringing out the positive relationship which any financial institution or bank should concentrates
on improving M-banking services”.

The study carried out by, Alalwan et al. (2018) clearly shows that edge of trending transactions, new creative
ways and perceived satisfaction are the parameters that decide adoption of online banking services amongst
customers. © 2020 JETIR August 2020, Volume 7, Issue 8 www.jetir.org (ISSN-2349-5162) JETIR2008390
Journal of Emerging Technologies and Innovative Research (JETIR) www.jetir.org 649 Purnima S. Sangle,
Preety Awasthi (2011) the study aims to understand the grounds for acceptance by customers in regards to
mobile banking. The findings of the study suggests that the operation must be user friendly/ ergonomics as
people are reluctant towards change and complicated technicalities of operation while doing any transactions.

Kumbhar (2011) examined important factors that have impact on customers’ satisfaction. In this study, fifteen
key dimension of service quality such as overall satisfaction, system availability, e-fulfilment, accuracy,
efficiency, security/ assurance, responsiveness, easy to use, convenience, cost effectiveness, problem
handling, compensation, contact, perceived value and brand perception were use. The data was collected
through a questionnaire from 150 customers of public and private banks who are using alternative banking
channel. Statistical tools like descriptive statistics, multiple correlation, Kruskal Wallis, Mann Whitney test and
principal component analysis were used to analyse the data. Further finding implies there was a significant
relationship between all dimensions and overall customer satisfaction.

Ramseook-Munhurrun and Naidoo (2011) examined the potential dimensions of internet banking and its
impact on customer satisfaction. Five key dimensions of service quality such as reliability-responsiveness,
security, ease of use, accessibility and satisfaction were taken for the study. The data was collected through
SERVQUAL model questionnaire from 242 internet banking customers. Tools like factor analysis, paired t-test
and regression test were used to analyse the data. Finding implies that reliability-responsiveness and
accessibility were found to be important in determining overall customer satisfaction, with accessibility having
the most significant impact.

Banerjee and Sah (2012) examined the perception of customers towards services provided by public and
private sector banks. The SERVQUAL instrument has been used by the researcher and the variables included
in the research were tangibility, reliability, responsiveness, assurance and empathy. The sample size of the
study was 230 respondents. The Mann Whitney U test was used to compare the perceptions of customers
towards the different attributes of the service dimensions between private and public-sector banks. Findings
unveil that customers are satisfied with private banks and expect more services from private banks. To satisfy
the customers, the public banks should focus on improving the service in terms of tangibility, reliability,
responsiveness and empathy.

Prameela (2013) analyzed the perceptions of the customers on the technology deployment in Andhra Bank &
ICICI Bank. The variables included in this research were tangibility, reliability, responsiveness, assurance,
empathy, efficiency, accuracy, security, easy and convenient banking. The data was collected through a well-
designed questionnaire from 500 customers. Tools like chi-square, ANOVA and t-test have been used to
analyse the data. Finding reveals that the perception and experience of the customers on the technology
deployment in Andhra Bank and ICICI bank were in favour of up gradation of technology.
 CHAPTER 3
ANALYSIS AND INTERPRETATION