Title: Factors Influencing the Customers to Adopt the E-Banking Services: A Study with Special Reference to Chennai City
Abstract: AbstractThe enormous growth of information technology, e-banking has become one of the core components of the present economic growth. In the wake of internet and usage of computer, e-banking is ideal for banks to fulfill the customer's needs. Due to huge competition among the banks, the banks are providing quality and innovative services to customers through e-banking to retain their market share. Nowadays e-banking system is globally accepted due to its noticeable advantages to customers and business entities. This paper investigates the factors influencing the customers to adopt the e-banking services in Chennai city.The primary data was collected from the 400 respondents through a structured questionnaire. Descriptive statistics was used to explain demographic profile of respondents and factor analyses were used to know the factors influencing the customer to adopt e-banking services. The study found that five factors influenced the customers to adopt the e-banking services in Chennai city namely Security and Trust, Awareness, Familiarity, Satisfaction and Technical and Additional services.Keywords: E-Banking, Safety, Security, Awareness, Quality service.IntroductionIn the globalized era, banking sector plays a very vital role for economic growth. Because of enormous growth of information technology, e-banking has become one of the core components of the present economic growth. In the wake of internet and usage of computer, e-banking is ideal for banks to fulfill the customer's needs. Due to huge competition among the banks, the banks are providing quality and innovative services to customers through e-banking to retain their market share. Nowadays e-banking system is globally accepted due to its noticeable advantages to customers and business entities.The e-banking is a web-based service; it enables the customers to operate their accounts at any place with one click of mouse. It allows the customers to log on to the banks website with the help of user id and password provided by the banks. After log on, the banking system verifies the input and allows them to access their accounts. Banks are providing wide range of services to customers through e-banking like Internet Banking, Electronic fund Transfer, Electronic clearing services, Telephone banking, Mobile banking, Electronic data inter change, Automated teller machine and so on. These services become very popular among the customers because of safety, security, easy access and its convenience. Even though it has become very popular, in India most of the customers are very reluctant to use due to hectic procedures, misconceptions like password hacking, privacy, security, etc. However in spite of some hurdles to adopt e-banking services, many of the customers are adopting e-banking services because of simplicity, safety, security, quickly and convenience. Therefore, the present study is undertaken to find out the factors influencing the customers to adopt the e-banking services.Review of LiteratureVerma22 analyzed the impact of IT on public and non-public sector banks. According to the research, IT is a threat for the public sector banks. Non-public sector banks are fully computerized and are providing e-banking services to its customers. The researcher suggested that the public sector banks provide satisfactory e-banking services to its customers to withstand the threat posed by the competitorsUppal18 used a stratified sampling of 500 bank customers explaining the impact of computerization on the satisfaction of customers of all bank groups and concluded that customer services are quite better in ffrlly computerized banks and further in e-banks as compared to that in partial or non-computerized banks.Sakthivel14 found that Convenience is the most important factor for the customers to go for e-banking services. The most significant problem of e-banking customer was the high minimum balance.It was observed that the customers are satisfied with the quality of e-banking services. …
Publication Year: 2014
Publication Date: 2014-04-01
Language: en
Type: article
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