Executive Summary

Purpose : This study is an attempt to show the extent and quality of services and
products offered

on and off the internet by various banks in India. Particularly, it seeks to examine
the area of electronic banking (popularly known as e-banking) and its influence on
the population of a developing country like India.

Approach: The data for this study primarily consists of annual reports and the ratios
to show the

strength of banks in different sectors of the banking industry such as private, public,
foreign,
regional rural and cooperative. Data for e-banking analysis is collected from the
banks’
respective websites.

Findings: The results show that internet banking is still not very popular in India and
is in the

development stage. The Quantitative Evaluation Method (QEM) has helped evaluate
the
presence of e-banking in India. Some banks have still not provided their customers
with internet
banking facilities while there are other banks that are excelling in the field of
internet banking.

Limitations: One of the main limitations of this research is its scope and size which
may have

an affect on the strength of conclusions that can be drawn. But, any conclusions in
this research

are proved fully with statistical evidence.

Originality/Value: The knowledge and understanding of the subject of ‘e-banking’ is

necessary

for the ‘modern individual’ to survive in this generation-X. E-banking also provides
banks to
further their grip in their respective target markets and provide extensive services
in the dawn of
the e-banking age in India.

Keywords: Banking, services, quality, e-banking, influence, statistical evidence,

India.
Literature Review

Who

Topic

When

Method

Results

Links
Yazan

K.A

Migdadi

Quantitative Evaluation
of the Internet Banking
Service Encounter's
Quality: Comparative
Study between Jordan
and the UK Retail
Banks.

August

, 2008
Quantitati
ve
descriptive
survey
methodolo
gy

UK – Developed and

Jordan – Developing.

Results were the same

(not much of a difference
in quality).

http://www.
arraydev.co
m/commerc
e/jibc/2008-
08/Yazan_1.
pdf

Himani

Online Banking

June,

2008

Contingenc

y Analysis

Method

Regulation and
supervision required for
the smooth working of e-
banking.

Solution – Setting up of
EBG (Electronic Banking
Group) for risk
management.

http://www.
oppapers.co
m/essays/O
nline-
Banking/15
2188

The above mentioned research papers are fairly new and in tune with the needs of
this research. Researchers as Evans and King (1999), Olisna et al. (1999), Mateos et
al. (2001) and Miranda et al. (2006) used the web site quantitative evaluation
method (QEM) as a powerful approach to assess the artefact quality, the process of
(QEM) is; categorizing, identifying factors, identifying weights, rating the factors,
and identifying the total quality indices.

The same process of QEM has been used for this research where, the categories are
identified
and rated quantitatively and final indices are assigned. This helps in surveying the
services with a
range of criteria in hand and obtaining standard results.

Introduction:

The Indian banking industry is passing through a phase of customers market. The
customers have

more choices in choosing their banks. A competition has been established within
the banks

operating in India. Now, banks are also adding services to their customers.
With stiff competition and advancement of technology, the services provided by
banks have
become more easy and convenient. Gone are those days when long lines had to be
formed to
apply for a new cheque book or to transfer money to another account or to get a
bank pass book
updated.

Welcome to the era of internet banking or electronic banking or e-banking.

Whatever the name, it

serves the same purpose.

Banks are ready to incur costs of around INR400,000 – INR500,000 for setting up
the basic
services and for the high end, sophisticated services, INR4 million – INR5 million are
spent.
These are investments of negligible value as compared to the expenditure on
physical
infrastructure of these banks and their operations.

Electronic Banking is conducting ones banking or bank account online through a

computer and
an internet connection. Through e-banking one can check the status of his/her
account, place
queries and also can be facilitated with a wide range of transaction services
simultaneously.

These days, a range of services is provided by banks making it a very wide

spectrum, from the
very basic services such as fixed deposit enquiries, cheque book application,
account statements,
etc., to the high end services such as bill payments, fund transfers, payment of
credit card dues
and much more.

The current statistics show that hardly 10 per cent of Indian customers use the
internet for
banking. Among all the facilities provided, the maximum of them uses only for
checking balance
or requesting for a cheque book. Very few customers use the advance interactive
services
provided by the banks.
According to statistics provided by banks, 17 per cent of ICICI bank customers use
the Internet
for banking and 10 per cent of HDFC bank customers prefer it.

Advantages of Net Banking

The Banks’ Perspective

The hindrance of geographical barriers is removed with the help of internet banking,
banks can
reach out to a much wider base of customers as compared to the traditional way.
Internet banking
has enabled the local banks to operate in the global scenario.

This is a very efficient and cost effective technique of banking. It has provided the
banks with the challenge of developing and catching up with the fast pace of the
industry and banks failing to adopt this technique prove to be lagging behind and
underdeveloped.

The Customers’ Perspective

Electronic banking has come to be developed as a host of a wide bouquet of

services ranging
from queries to real time transactions. It offers the customers the flexibility of
banking from any
part of the world which has narrowed the physical gap between the banks and their
customers.

Banking in India

In India the banks are segregated in different groups. Each group has their own
benefits and
limitations in operating in India. Each has their own dedicated target market. Few of
them only
work in rural sector while others in both rural as well as urban. Many even are only
catering in
cities. Some are of Indian origin and some are foreign players.
This research includes the following categories:

Reserve Bank

Private Sector

➢HDFC Bank

➢ICICI Bank

Regional Rural

➢United Bank of India (UBI)

➢Sindhanur Urban Souharda Co-operative Bank (SUCO Bank)

Foreign Banks

➢CITI Bank
➢HSBC Bank

Public Sector

➢Bank of Baroda

➢Canara Bank

More shall be discussed about these banks in the course of this report.

ICICI Bank

The webpage of ICICI Bank clearly mentions about the banks general information
and history.
The financial results are clearly given in figures and well explained, annual reports
are well
updated and employment information is also mentioned in the website which
provides links for
career opportunities, campus recruitment and careers counseling. A separate
section for updated
news is maintained which is a good feature for a bank webpage. Rates for senior
citizens are
mentioned separately. Net banking is easy to access, which makes transfer of
money from
different places and account transfers are made simple.

Calculators are a comprehensive feature of the homepage. Bill payment service is

the best online

service provided by ICICI Bank.

Drawbacks are numerous. Links to financial information, community information,

local and non-
local business are difficult to search. The website also needs to improve on its
search function.
Though being one of the top banks in India, Hindi language facility is not provided.
The
aesthetics of the webpage are not very pleasing.

Bank of Baroda
The webpage of Bank of Baroda has very extensive information on the bank profile.
It has an accurate annual report which shows all the financial educational
information. Interest rates on different products and services are updated regularly.
It also provides calculators on various transactions. There is an added feature to the
calculators – the EMI calculator.

With all the basic facilities being provided, Bank of Baroda has fallen short on some
important
features i.e. account information access and access to various online services such
as online
insurance, online brokerage and online trusts. The does not even provide
information on wireless
capabilities such as phone banking, SMS banking, etc.

The website is quite easy to access and has the shades of the Indian national flag
which is very

aesthetically appealing.

Canara Bank

It has the details of general banking and history provided with accurate annual
reports along with an auditors report addressing the President of India. Interest
information is very well updated and the bank has provided its customers with a
view of the external market as well. Canara Bank has not filled the homepage with
its own information only.

Financial calculators are easily accessible, applications for various services and
account

information accessibility are well explained.

The employment information seems to be left on its own as the clicks resulted in
very outdated
and useless databases. Does not have a very wide range of internet banking
services and
corporate services and does not have a Hindi language facility which makes it very
inconvenient
for Hindi literate customers to access various services.

The aesthetics though are very pleasing, search functions, community information,
local and

non-local business links are very ideally placed on the website.

HSBC Bank
General banking information and the profile of the bank are very well put up on the
webpage.
The annual reports are well updated along with many other review reports.
Employment
information such as career opportunities, campus recruitment and career
counseling are a very
integral part of HSBC Bank. It also hosts the CV builder which makes it very easy for

prospective employees to build their CVs according to the needs of the various
sectors of the

bank. The interest rates and financial calculators are available on the homepage.

Account information access and applications for services are well defined. All the
services that
can be linked with e-banking are found under one single canopy of the webpage of
HSBC bank.
Corporate services, online insurance, bill payments are some of the very best
services provided
by the bank. Links to financial information, community information, local and non-
local
business are very easily available. The bank is proud to host a webpage of this kind
which is
extremely user friendly with all the possible services provided.

Just one drawback of this webpage is that Hindi language facility is not provided
which makes it

very difficult for the Hindi literate customers to access any part of the webpage.

CITI Bank

The general banking information and history is not very up to the mark. Financial
educational information is very well set up for the customers accessing this
webpage. Financial calculators and interest rates as in the case of all other banks,
are provided. Account information access and applications for services are not on
the homepage but have a separate link which leads to their access. All internet
banking services are very quickly accessible. CITI bank guarantees that no money is
held in ‘cyber-space’ and that all transactions are quickly processed.

The portal is linked to all the essential information such as financial information,
community
information, local and non-local businesses. Wireless capabilities, search functions
are found on
the webpage.
The drawbacks of the webpage are that the aesthetics are not very pleasing and
Hindi language

facility is not provided.

1

Total

Score

Level (0) Informational

1. General Bank info. & Hitory

10 4

7.2

2. Financial Educational Info.

7
-

5.6

3. Employment Info.

5.8

4. Interest/Murabaha

8
8

6.3

5. Financial Calculator

7.

4.6

Level (1) Administrative

6. Accounts info. Access

6
5.7

7. Application for services

6.4

Level (2) Transactional

8. Personal Finance and Software

Application

2.1

9. Account Transfer Capabilities

-

7.

4.9

10. Bill-Pay Services

11. Corporate Services

7
-

4.7

12. Online Insurance

4.1

13. Insurance Brokerage

-
6

2.5

14. Online Trust

7.

5.

2.4

Level (3) Portal

15. Links to Financial Info.

10

10 8

8
7.6

16. Links to Community Info.

6.

6.8

17. Links to Local Business

6.3

18. Links to non-local Business

5
7

8.

5.7

Level (4) Others

19. Wireless Capabilities

4.3

20. Search Function

10 7

-
7

7.5

21. Provide Hindi Language Facilities

10-

3.6

Overall Score

8.

7
6

Presence Percentage (%)

97

95 93 60

63

96

91 84 72

Ranking

Average of Presence (%)

88
85 92 55

60

89

75 76 69

Add-ons?????

10

Ease/Difficulty to access Website 1-10

Aesthetics of Website 1-10

8
8

Ease to Read & Understand 1-10

10 8

66/100

Internet Banking Report - Final

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This study is an attempt to show the extent and quality of services and products
offered on and off the internet by various banks in India. Particu... (More) This study
is an attempt to show the extent and quality of services and products offered on
and off the internet by various banks in India. Particularly, it seeks to examine the
area of electronic banking (popularly known as e-banking) and its influence on the
population of a developing country like India. (Less)

EBANKING
internet banking

net banking

indian banks

report india

india internet

users statistics

(more tags)

EBANKING

internet banking

net banking

indian banks

report india

india internet

users statistics

banking india

ratio

baroda

banking users

net banking

india report

statistics regarding

stats india

uk

regarding internet

(fewer)

Imaad Ali Khan

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