Customer Prefer

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enceIJEMR – March 2012-Vol 2 Issue 3 - Online - ISSN 2249 – 2585 - Print - ISSN 2249 - 8672

Factors influencing the Customer Preference towards E-Banking Services in Cuddalore District

*Ravichandran.S **Dr.A.Murugarathinam

* Assistant professor of commerce, DDE, Annamalai university, Chidambaram

** Assistant professor of commerce, DDE, Annamalai university, Chidambaram

Abstract The present study investigates the level of awareness among the customers on the use of e-banking and their expectations from e-banking. From the findings of the study, it is inferred that the customers are satisfied with the quality of e-banking services. But they face technical as well as administrative and procedural problems. Further to promote e-banking services, it is of importance that the banks must ensure quality in customer service. Quality in work and satisfaction of the customers are the two key words, which must be given sternest attention to promote a product. In India also, it has strongly impacted the strategic business considerations for banks. It must be noted, however, that while e-banking provides many benefits to customers and banks, it also aggravates traditional banking risks. Despite the low diffusion of technology in India, the momentum of e-banking has picked up recently, led by the foreign banks and the Indian private banks. It is evident from the present study that a majority of the customers are highly satisfied with the e-banking services. The customers prefer echannels with time and cost utility which provide efficient services. Moreover, banks are uncertain about the regulatory framework for conducting e-business and taxation issues for governing cyberspace present formidable problems. Any successful attempt at governing cyberspace will involve significant international cooperation. Although there are some drawbacks in e-banking like complaints regarding use of ATMs, high service charges and more working hours leading to frustration among the employees but still the e-banking is preferred as the efficiency of the employees working through e-channels is better.

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Introduction Nowadays banks are working hard to attract customers and retain their market share by providing them with various innovative services through e-banking. The banks are combining new electronic delivery channels almost every day to their existing services. Banks services are now just at the distance of one click from the mouse. Though e-banking is getting popular and spreading very fast, in India most people do not know it and people who know about it are reluctant to use it due to misconceptions like password hacking, privacy, security, etc. The present study investigates the level of awareness among the customers on the use of e-banking and their expectations from ebanking. From the findings of the study, it is inferred that the customers are satisfied with the quality of e-banking services. But they face technical as well as administrative and procedural problems. Further to promote e-banking services, it is of importance that the banks must ensure quality in customer service. Quality in work and satisfaction of the customers are the two key words, which must be given sternest attention to promote a product. Statement of the Problem With globalization and changes in technology, financial market, world over has become closely integrated. Customers can access their accounts anywhere and banks customers’ base is also spread across the world. Deregulation and liberalization have opened up new opportunities for banks but at the same time the pressure of competition has led to narrowing spreads, shrinking margins, consolidation and restructuring. Competition is going to be tough with financial liberalization and banks in India will have to benchmark themselves against the best in the world. If the quality of customer service is poor, the banks would surely not subsist in long run. The banks which are...
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