1.

Introduction

There is little doubt that the Internet has revolutionized the entire communication
system. As much as banking involves communication in one way or the other,
banks have joined the communication bandwagon. Having observed the
astronomical growth rate and acknowledging the potential banks adapting and
often adapting the Internet to suit their functions and roles. As in any new venture
there are setbacks in terms of issue of security and associated costs. As a
consequence banks are working towards remedying these shortcomings so as to
take full advantage of the digital revolution.

The tremendous advances in technology and the aggressive infusion of

information technology had brought in a paradigm shift in banking operations. For
the banks, technology has emerged as a strategic resource for achieving higher
efficiency, control of operations, productivity and profitability. For customers, it is
the realization of their anywhere, anytime, anyway banking dream. This has
prompted the banks to embrace technology to meet the increasing customer
expectation and face the tough competition.

The recent trends show that most brick and mortar banks are shifting from a
product-centric model to a customer-centric model as they develop their new e-
banking capabilities. They have, over a long time, been using

electronic and telecommunication networks for delivering a wide range of value

added products and services. The delivery channels include direct dial up
connections, private networks, public networks etc and the devices include
telephone, Personal Computers including the Automated Teller Machines, etc.
With the popularity of PCs, easy access to Internet and World Wide Web
(WWW), banks increasingly use Internet as a channel for receiving instructions
and delivering their products and services to their customers. This form of banking
is generally referred to as Internet Banking, although the range of products and
services offered by different banks vary widely both in their content and
sophistication (RBI, 2001).

Internet banking involves consumers using the Internet to access their bank
account and to undertake banking transactions. At the basic level, Internet banking
can mean the setting up of a Web page by a bank to give information about its
product and services. At an advance level, it involves provision of facilities such
as accessing accounts, funds transfer, and buying financial products or services
online. This is called ``transactional'' online banking (Sathye, 1999).

There are two ways to offer Internet banking. First, an existing bank with physical
offices can establish a web site and offer Internet banking in addition to its
traditional delivery channels. Second, a bank may be established as a branchless,
Internet only, virtual bank without any physical branch. Broadly, the levels of
banking services offered through INTERNET can be categorized in three types: (i)

The Basic Level Services use the banks websites which disseminate information
on different products and services offered to customers and members of public in
general. It may receive and reply to customers queries through e-mail, (ii) In the
next level are Simple Transactional Websites which allow customers to submit
their instructions, applications for different services, queries on their account
balances, etc, but do not permit any fund-based transactions on their accounts, (iii)
The third level of Internet banking services are offered by Fully Transactional
Websites which allow the customers to operate on their accounts for transfer of
funds, payment of different bills, subscribing to other products of the bank and to
transact purchase and sale of securities, etc. (RBI, 2001)
Most of the banks providing Internet banking products and services offer, to a
large extent, an identical and standard package of banking services and
transactional capabilities. In general, Internet banking products are offered in a
two-tiered structure. A basic tier of Internet banking products includes customer
account inquiry, funds transfer and electronic bill payment. A second or premium
tier includes basic services plus one or more additional services. The list of
Internet banking products and services is not inclusive.

Basic: 1) Account inquiry. 2) Funds transfer. 3) Electronic bill presentment and

payment.

Premium: 1) Brokerage. 2) Cash management. 3) Credit applications. 4) Credit

and debit cards. 5) Customer correspondence. 6) Demat holdings. 7) Financial
advice 8) Foreign exchange trading. 9) Insurance. 10) Online trading. 11) Opening
accounts 12) Requests and intimations. 13) Tax services. 14) E-shopping. 15)
Standing instructions. 16) Investments. 17) Asset management services etc.

1.1 Evolution of Internet Banking in India

Indian banking industry, today, is in the midst of an IT revolution. The technology

changes have put forth the competition among the banks. This has led to
increasing total banking automation in the Indian banking industry. New private
sector banks and foreign banks have an edge over public sector banks as far as
implementation of technological solutions is concerned. However, the later are in
the process of making huge investment in technology.

The financial reforms that were initiated in the early 90s and the globalization and
liberalization measures brought in a completely new operating environment to the
banks. Services and products like Anywhere Banking, Tele-Banking, Internet
Banking, Web Banking, E-Banking etc. have become the buzzwords of the day
and the banks are trying to cope with the competition by offering innovative and
attractively packaged technology based services to their customers.

Private and foreign banks have been the early adopters of e-banking while the
Public sector banks are also beginning to hold on to the competition. ICICI Bank
and HDFC Bank are the first banks to introduce Internet Banking in India.

1.2 Types of Internet Banking

Currently, there are three basic kinds of Internet banking that are being employed
in the marketplace:

Information

This is the most basic level of Internet banking. The bank has marketing
information about its products and services on a stand-alone server. This level of
Internet banking service can be provided by the bank itself or by sourcing it out.
Since the server or Web site may be vulnerable to alteration, appropriate controls
must therefore be in place to prevent unauthorized alterations to data in the server
or web site.

Communication

This type of Internet banking allows interaction between the bank’s systems and
the customer. It may be limited to electronic mail, account inquiry, loan
applications, or static file updates. The risk is higher with this configuration than
with the earlier system and therefore appropriate controls need to be in place to
prevent, monitor, and alert management of any unauthorized attempt to access
bank’s internal network and computer systems. Under this system the client makes
a request to which the bank subsequently responds. Works on the same principle
as the e-mail.
Transaction

Under this system of Internet banking customers are allowed to execute

transactions. Relative to the information and communication types of Internet
banking, this system possesses the highest level of risk architecture and must have
the strongest controls. Customer transactions can include accessing accounts,
paying bills, transferring funds, etc. These possibilities demand very stringent
security.

1.3 Advantages of Internet Banking

The benefits of Internet banking are plentiful as witnessed by the consequential

reaction of a tremendous rise in usage and application. The potential appears to
be unlimited ranging from virtual banks to e-cash.

Reduced Transaction Costs

It has been repeated shown that as a delivery or distribution channel, the Internet
could bring a substantial cost advantage for banks. The frequently quoted Booz-
Allen and Hamilton study showed that the cost of a customer walking into the
branch and using a teller is USD1.01, where as the cost of conducting the same
transaction on the Internet is only a tenth of the cost. No doubt the ATM is
considerably cheaper than a teller, but even so, the Internet is nearly 3 times
cheaper than the ATM usage. In short, replacing a teller with an Internet channel
should in theory, show a 10 fold increase in the distribution revenue for the bank.
This reason alone should be sufficient for banks to encourage this form of
distribution channel. Figure 4 illustrates the cost function.
Perfect Information

Internet makes perfect information available to all market participants by

bringing about efficiencies in the search process. For buyers of banking services,
there are sites that aggregate information on product offerings from different
providers at a single location. By merely making information available to
customers about multiple providers, the Internet performs the function of
dismantling the oligopoly of a few providers and bringing about a structure
favorable towards perfect competition. A good example of this would be e-loan.
It allows potential borrowers to search and compare the offerings of thousands of
providers. On the other hand, seeking out bank branches, researching product
catalogues and making phone calls cannot achieve this function with the same
level of efficiency. Eliminating the agent’s commission effects a further reduction
in mortgage costs. E-loans also allow for the monitoring of mortgages over its
lifetime and alert the borrower to cheaper refinance options whenever available.
Perfect information would be available to the bank as well. The Internet makes it
less likely, for example, for an individual to hide a bad credit history from
prospective providers and to beat the system by switching providers frequently.
All this means that there is limited room for hearsay, verbal/oral accounts, and its
related subjectivity. In short the Internet has resulted in a wider dissemination of
quality information.

1.4 Disadvantages of Internet Banking

There are always two sides to a coin. Similarly Internet banking too has a ‘bane’
side to it. The bane lies in its inexorable slide towards higher risk from various
facets of bank operations. Risk is the potential that unexpected events may have
an adverse impact on the banks earnings. Internet banking risks consists of risk
associated with credit, interest rate, transaction, etc. These risks are not mutually
exclusive but invariably all of these are associated with Internet banking.

Credit Risk

Credit risk is the risk to earning and eventually capital, arising from a borrower’s
failure to meet the terms of a credit contract with the bank or otherwise to
perform as agreed. It is found in all activities where success depends on
counterparty, issuer, or borrower performance. It arises any time bank findings
are extended, committed, invested, or otherwise exposed through actual or
implied contractual agreements, whether on or off the bank’s balance sheet.

Internet banking provides the opportunity for banks to expand their geographic
range. Customers can reach a given institution from literally anywhere in the
world. In dealing with customers over the Internet, absent of any personal
contact, it is challenging for institutions to verify the bona fide of their customers,
which is an important element in making sound credit decisions. Verifying
collateral and perfecting security agreements can also be challenging with out-of-
area borrowers.

Unless properly managed, Internet banking could lead to a concentration in out-

of-area credits. Moreover, the question of which state’s or country’s laws control
an Internet relationship is still very much at an infancy stage of development.

Effective management of a portfolio of loans obtained through the Internet

requires that effective policies, processes, and practices are in place to control the
risk associated with such loans.

Interest Rate Risk

Interest rate risk is the risk to earnings arising from movements in interest rates.
From an economic perspective, a bank focuses on the sensitivity of the value of
its assets, liabilities and revenues to changes in interest rates. Interest rate risk
arises from differences between the timing of rate changes and the timing of cash
flows (repricing risk); from changing rate relationships among different yield
curves affecting bank activities (basis risk); from changing rate relationships
across the spectrum of maturities (yield curve risk); and from interest-related
options embedded in bank products (options risk) (Comptroller’s Handbook,
1999). Evaluation of interest rate risk must consider the impact of complex
illiquid hedging strategies or products, and also the potential impact that changes
in interest rates will have on fee income. In situations where trading is managed
separately, it refers to structural positions and not trading portfolios. The
attracting of inflow (deposits) done instantaneously and independently from
outflow (loans) with rates moving in between could cause major upheavals if not
managed properly. Of course this risk existed even prior to the Internet era but
real time implications due to Internet applications have exacerbated the risk.

Liquidity Risk

Liquidity risk is the uncertainty arising from a bank’s inability to meet its
obligations when they are due, without incurring unacceptable losses. Liquidity
risk includes the inability to manage unplanned changes in market conditions
affecting the ability of the bank to liquidate assets quickly and with minimal loss
in value.

Internet banking increases deposit volatility from customers who maintain

accounts solely on the basis of rates or terms. Increased monitoring of liquidity
and changes in deposits and loans maybe warranted depending on the volume and
nature of Internet account activities. In a nutshell, the Internet allows all
transactions to occur in real time. The management must therefore be prepared
for immediate changes and consequently immediate solutions.
Transaction Risk

Transaction risk is the current and prospective risk to earnings and capital arising
from fraud, error, the inability to deliver products or services, the failure to
maintain a competitive position and services, and the inability to manage
information properly. This risk is evident in each product and service offered and
encompasses product development and delivery, transaction processing, systems
development, computing systems, complexity of products and services, and the
internal control environment (Comptroller’s Handbook, 1999). A high level of
transaction risk may exist with Internet banking products, particularly if those
lines of business are not adequately planned, implemented, and monitored. Banks
that offer financial products and services through the Internet must be able to
meet their customer’s expectations. Banks must also ensure they have the right
product mix and capacity to deliver accurate, timely, and reliable services to
develop a high level of confidence in their brand name. Customers who conduct
business over the Internet are likely to have little tolerance for errors or omissions
from financial institutions that do not have sophisticated internal controls to
manage their Internet banking business. Likewise, customers will expect
continuous availability of the product and Web pages that are easy to navigate.

Software to support various Internet banking functions is provided to the

customer from a variety of sources. Banks may support customers using
customer-acquired or bank-supplied browsers or Personal Financial Manager
(PFM) software. Good communications between banks and their customers will
help manage expectations on the compatibility of various PFM software
products.

Attacks or intrusion attempts on banks’ computer and network systems are also a
major concern. Surveys point towards systems being more vulnerable to internal
attacks than external, because internal system users have knowledge of the
system and access. Banks should therefore have sound preventive and detective
controls to protect their Internet banking systems from exploitation, both
internally and externally.

Contingency and business resumption planning is necessary for banks to be sure

that they can deliver products and services in the event of confrontation with
adverse circumstances. Internet banking products connected to a robust network
may actually make this easier because back up capabilities can be spread over a
wide geographic location. Security issues should be considered when the
institution develops its contingency and business resumption plans. In such
situations however, security and internal controls at the back-up location should
be as sophisticated as those at the primary processing site. High levels of security
and control systems will be a key expectation of customers and this will most
likely differentiate success levels among financial institutions selling Internet
products and services ..
 [Link] of Literature
Sathye (1997) surveyed the status of Internet banking in Australia. The study
found that only two of the 52 banks started Internet banking services at that time.
However still there was a lot of room for Internet banking to expand in Australia.

Booz Allen Hamilton (1997) conducted a global survey covering 386 retail and
corporate banking institutions in 42 countries to assess the strategic impact of
Internet banking on the financial service industry. According to the study, there is
a huge perception gap between North American/European banks and Japanese
banks regarding the future of Internet banking. North American and European
banks expect Internet banking to become the most important retail channel within
10 years, but Japanese banks expect traditional branches to remain the most
important channel. The study also indicates the rapid growth potential of Internet
banking. Many of the banks that responded have plans to upgrade the functionality
of their Internet service offerings.

Egland (1998) conducted the first important study that estimated the number of
U.S. banks offering Internet banking and analyzed the structure and performance
characteristics of these banks. They have found no evidence of major differences
in the performance of the group of banks offering Internet banking activities
compared to those that do not offer such services.
Furst et. al. (1998) a U.S. based study found out a significant shift by consumers
and businesses to electronic payments. In response to developments in electronic
payments and remote banking, banks have greatly increased their investment in
technology, particularly in retail banking. The gains from technological
advancements in banking and payments are likely to be substantial, both from the
point of view of individual financial institutions and economy-wide. In this
environment, banks should review and, if necessary, adjust their risk management
practices in tandem with upgrading their technology activities.

Diniz (1998) reported a survey of web sites of banks in USA. It was found that
most of the bank websites were basic and intermediate level. No website was
found to be of advanced level.

Furst et. al. (2000) presented data on the number of national banks in U.S. offering
Internet banking and the products and services being offered. Only 20 percent of
national banks offered Internet banking in the third quarter of 1999. However, as a
group, these Internet banks accounted for almost 90 percent of national banking
system assets, Banks in all size categoriesand 84 percent of small deposit
accounts. offering Internet banking tend to rely less on interest-yielding activities
and core deposits than do non-Internet banks. Also, Institutions with Internet
banking outperformed non- Internet banks in terms of profitability.

Sullivan (2000) found that Internet banks in 10th Federal Reserve District incurred
higher expenses but also generated higher fee income and concluded that the
measures of profitability for Internet banks are similar to those of the non-Internet
banks.

Guru et. al. (2000) examined the various electronic channels utilized by the local
Malaysian banks and also accessed the consumers reactions to these delivery
channels. It was found that Internet banking was nearly absent in Malaysian banks
due to lack of adequate legal framework and security concerns. However over 60
percent of the respondents were having Internet access at home and thus
represented a positive indication for PC based and Internet banking in future.

DeYoung (2001a) investigated the performance of Internet-only banks and thrifts

in the U.S. The empirical analysis found that the newly chartered Internet-only
banks substantially underperform the established banks at first, but these
performance gaps systematically diminish over time as new banks grow older and
larger. The study suggested that the Internet-only banking model may be feasible
when executed efficiently.

DeYoung (2001b) found that the average one year old Internet-only bank earned
significantly lower profits than the average one year old branching bank, due to
low business volumes and high non-interest expenses. It supports the proposition
regarding the Internet-only banks, fast growth but low (or no) profits.

Jasimuddin (2001) found that within one year of the introduction of Internet
service in Saudi Arabia, Saudi banks had at least decided on their Internet
presence. 73% of the Saudi banks possessed their own web sites and 25% of the
web sites were offering full services over Internet. The banks viewed the Internet
as a key alternative delivery channel.

Suganthi et. al. (2001) conducted the review of Malaysian banking sites and
revealed that all domestic banks were having a web presence. Only 4 of the ten
major banks were with transactional sites. The remaining sites were at
informational level. There are various psychological and behavioral issues as trust,
security of Internet transactions, reluctance to change and preference for human
interface which appear to impede the growth of Internet banking

Furst et. al. (2002) provided a comparative study of Internet and non-Internet
banks in U.S. and found that institutions with Internet banking outperformed non-
Internet banks in profitability. Also, banks in all categories of size offering
Internet banking tended to rely less on interest yielding activities and deposits than
non-Internet banks do.

Koedrabruen et. al. (2002) investigated, designed and developed an Internet based
retail banking prototype that meets the requirements of the Thai customers. It
found that more than half of the sample Internet users in Thailand are very
interested in using the Internet banking services. The main features needed are
balance inquiry, bill payment, fund transfer, business information, and payment
for goods purchased. The prototype was then developed and validated. The survey
from the executives of four Thai banks revealed that there was a potential growth
for retail Internet banking in Thailand.

Corrocher (2002) investigated the determinants of the adoption of Internet

technology for the provision of banking services in the Italian context and also
studied the relationship between the Internet banking and the traditional banking
activity, in order to understand if these two systems of financial services delivery
are perceived as substitutes or complements by the banks. From the results of the
empirical analysis, banks seem to perceive Internet banking as a substitute for the
existing branching structure, although there is also some evidence that banks
providing innovative financial services are more inclined to adopt the innovation
than traditional banks.

Hasan (2002) found that online home banking has emerged as a significant
strategy for banks to attract customers. Almost 75 percent of the Italian banks have
adopted some form of Internet banking during the period 1993-2000. It also found
that the higher likelihood of adopting active Internet banking activities is by larger
banks, banks with higher involvement in off-balance sheet activities, past
performance and higher branching network.
Janice et. al. (2002) based on interviews with four banks in Hong Kong noted that
banks view the Internet as being a supplementary distribution channel for their
products and services in addition to other forms of distribution channels such as
Automated Teller Machines (ATMs), phones, mobile phones and bank branches.
Basic transactions and securities trading are the most popular types of operations
that customers carry out in Internet banking.

Lustsik (2003) based on the survey of experts of e-banking in Estonian banks

found that Estonia has achieved significant success in implementation of e-
banking and also on the top of the list in emerging countries. All the major banks
are developing e-business as one of the core strategies for future development.

Awamleh et. al. (2003) found that banks in Jordan are not fully utilizing concepts
and applications of web banking. In comparison to developed international
markets, it is fair to say that this sector is largely undeveloped. Indeed, only two
banks offered limited number of services through their web. The major challenge
facing further development of web banking in Jordan is, for example, the high cost
of telecommunication. Another element is the non-availability of information
technologies, packages, solutions, and human resources, which facilitates optimum
use of technology. The study revealed that Jordanian banks have been successful
in the introductory phase of web banking. However Jordanian banks are required
to move towards web banking usage with a view to conducting real financial
transactions and improving electronic customer relations.

There are a series of papers that observe that Internet banking has revolutionized
the banking industry and the banking industry is under pressure to offer new
products and services. However, to succeed in todays electronic markets a
strategic and focused approach is required.
In the Indian context many publications throw light over the importance of
Internet banking and also its prospects for the Indian banking industry. However
these papers dont identify key differences between Internet banks and non-Internet
banks.

Unnithan et al. (2001) studied the drivers for change in the evolution of the
banking sector, and the move towards electronic banking by focusing on two
economies Australia and India. The paper found that Australia is a country with
Internet ready infrastructure as far as telecommunication, secure protocols, PC
penetration and consumers literacy is concerned. India, by comparison, is
overwhelmed by weak infrastructure, low PC penetration, developing security
protocols and consumer reluctance in rural sector. Although many major banks
have started offering Internet banking services, the slow pace will continue until
the critical mass is achieved for PC, Internet connections and telephones.
However, the upsurge of IT professionals with growing demands is pressuring the
government and bureaucracy in the country to support and develop new initiatives
for a faster spread of Internet Banking. The economy is classically the catch-up
one, trying to develop and catch up with leading economies.

Rao et. al. (2003) provided a theoretical analysis of Internet banking in India and
found that as compared to banks abroad, Indian banks offering online services still
have a long way to go. For online banking to reach a critical mass, there has to be
sufficient number of users and the sufficient infrastructure in place.

Agarwal et. al. (2003) explored the role of e-banking in e-democracy. With the
development of asynchronous technologies and secured electronic transaction
technologies, more banks and departments were using Internet for transactional
and information medium. Initiatives such as E-SEVA and FSC are the milestones
towards achieving comprehensive e-governance.
Mookerji (1998), Pegu (2000), Gupta (1999) and Dasgupta (2002) found that
Internet banking is fast becoming popular in India. However, it is still in its
evolutionary stage. By the year 2005, a large sophisticated and highly competitive
Internet banking market will develop. Almost all the banks operating in India are
having their websites but only a few banks provide transactional Internet banking.
The purpose of this paper is to describe the current state of Internet banking in
India and also identifies key differences between Internet banks and non-Internet
banks with special reference to commercial banks operating in India. The study is
based on the survey of websites of the banks only. E-mail correspondence was
also conducted with the experts of the banks.
 [Link] Methodology

3.1 Objectives of the Study

The factors influencing the use of Internet banking among employed people of
Chennai
The major factors contributing to the use of Internet banking
The benefits of internet banking to the users
The intention to adopt internet banking

3.2 Methodology

The Methodology adopted in this study is by administering Questionnaire to the

respondents to find out the Use of Internet banking. The Questionnaires were
given to the Employed people working in Chennai. The Sample was collected
from 61 respondents. The sampling method used was Convenience Random
Sampling.

3.3 Period Of the Study

The Period of the Study was from March 2007 to May 2007. Data from the
respondents was collected during this period.
3.4 Limitations of the Study
Due to time Constraint Questionnaires could not be administered to more
respondents.
Due to the Cost factor enumerators were not appointed to collect data.
There was a delay in submission of the filled up questionnaires from the
respondents.
 4. Data Analysis

Data was Analyzed based on the Demographic factors like Gender, Age,
Occupation, Education & Monthly income. Analysis was done to find out Whether
he is Internet banking user , the duration of Internet banking use, Frequently used
Internet banking services, Frequency of Internet banking use and Internet Banking
Access.
The Questions were rated by using rating Method ( Strongly agree, Agree,
Neutral, Disagree and Strongly disagree). The Parameters that were rated are
Relative Usefulness, Perceived risk, Computer self efficacy, Image, Subjective
Norm, Result Demonstrability and Intention to adopt.
Table 4.1 Gender of Respondents

No of
Gender Respondents
Male 56
Female 5
Total 61

Inference
The study was Conducted among 61 respondents among them 56 were males and
5 were females

Fig 6.1 Gender of respondents

Table 4.2 Age of the Respondents

[Link] Cumulative
Age Respondents Percentage Percentage
20-35 41 67.21 67.21
36-50 19 31.15 98.36
>50 1 1.64 100.00
Total 61

Inference

The age group of the respondents are 20-35 – 41 persons, 36-50 -19 persons and
>50 – 1 person

Age of Respondents

50

40

30
[Link] Respondents
20

10

0
20-35 36-50 >50

[Link] Respondents 41 19 1

Fig 6.2 Age of Respondents

Table 4.3 Occupation of Respondents

[Link] Cumulative
Occupation Respondents Percentage Percentage
Public Sector 2 3.28 3.28
Private
Sector 57 93.44 96.72
Others 2 3.28 100.00
Total 61

Inference

The occupation of the respondents are Public Sector – 2 Persons , Private Sector –
57 persons and Others – 2 persons

OCCUPATION

60

50

40

30 [Link] Respondents

20

10

0
Public Sector Private Sector Others

[Link] Respondents 2 57 2

Fig 6.3 Occupation of Respondents

Table 4.4 Education of Respondents

[Link] Cumulative
Education Respondents Percentage Percentage
Diploma
Holder 1 1.64 1.64
Graduate 33 54.10 55.74
Post Graduate 27 44.26 100.00
Total 61

Inference

The Education of respondents are Diploma Holders – 1, Graduate – 33 , and Post

graduate – 27 Persons.

EDUCATION OF RESPONDENTS

35

30

25

20
[Link] Respondents
15

10

0
Diploma Holder Graduate Post Graduate

[Link] Respondents 1 33 27

Fig 6.4 Education of Respondents

Table 4.5 Monthly Income of Respondents

Monthly [Link] Cumulative

Income Respondents Percentage Percentage
<5,000 2 3.33 3.33
5,000 -
10,000 10 16.67 20.00
10,000 -
20,000 13 21.67 41.67
>20,000 35 58.33 100.00
Total 60

Inference

The Monthly Income of the Respondents are <5,000 – 2 Persons, 5,000 – 10,000 –
10 Persons, 10,000 – 20,000 – 13 Persons & >20,000 – 35 Persons

MONTHLY INCOME OF RESPONDENTS

40

35

30

25

20 [Link] Respondents

15

10

0
10,000 -
<5,000 5,000 - 10,000 >20,000
20,000
[Link] Respondents 2 10 13 35

Fig 6.5 Monthly Income of Respondents

Table 4.6 Internet Banking user

Internet
Banking User [Link] Respondents Percentage Cumulative Percentage
Yes 55 90.16 90.16
No 6 9.84 100.00
Total 61

Inference

The Number of respondents using Internet banking are Yes – 55 Persons & No – 6
Persons

INTERNET BANKING USER

60

50

40

30
[Link] Respondents

20

10

0
Yes No
[Link] Respondents 55 6

Fig 6.6 Internet Banking User

Table 4.7 Duration of Internet Banking Use

Duration of
Internet [Link] Cumulative
Banking use Respondents Percentage Percentage
< 6 Months 16 28.07 28.07
6 Months - 1
Year 7 12.28 40.35
> 1 Year 34 59.65 100.00
Total 57

Inference

The Duration of Internet Banking Use among the respondents are <6 Months – 16,
6 Months – 1 Year – 7& >1 Year – 34

DURATION OF INTERNET BANKING USE

40

35

30

25
< 6 Months
20
6 Months - 1 Year
15 > 1 Year

10

0
[Link] Respondents
< 6 Months 16
6 Months - 1 Year 7
> 1 Year 34

Fig 6.7 Duration of Internet banking use

Table 4.8 Frequently Used Internet Banking Services

Frequently used No of Percentage Cumulative
Internet Banking Respondents Percentage
Services by Usage
Statement Enquiry 53 15.68 15.68
Utility Payments 2 0.59 16.27
Loan Application 5 1.48 17.75
Debit or credit Cards 11 3.25 21.01
Applications Inquiries &
Complaints
Fund transfer 41 12.13 33.14
Bill Payment 28 8.28 41.42
Cheque Book Ordering 34 10.06 51.48
Card Lost Informing 3 0.89 52.37
Cheque Stop payment 6 1.78 54.14
Balance Enquiry 46 13.61 67.75
Opening Accounts 4 1.18 68.93
Third Party Transfer 18 5.33 74.26
Receive Alerts 16 4.73 78.99
E – Shopping 12 3.55 82.54
Credit Card Payments 28 8.28 90.83
Customer 4 1.18 92.01
Correspondence
Demat Holdings 9 2.66 94.67
Investments 3 0.89 95.56
Financial Planning 4 1.18 96.75
Trading Online 7 2.07 98.82
Demonstration of Internet 4 1.18 100.00
banking
Total 338

Inference
The Frequently Used Internet Banking Services among the Respondents are
Statement Enquiry, Balance enquiry, Fund Transfer, Cheque Book Ordering, Bill
Payments & Credit Card payments
Fig 6.8 Frequently used Internet Banking Services
 FREQUENTLY USED INTERNET BANKING SERVICES

60 Statement Enquiry

Utlity Payments

Loan Application

Debit or Credit Card Applications Inquiries &

complaints
50 Fund Transfer

Bill Payments

Cheque Book ordering

Card Lost Informing

40 Cheque Stop Payment

Balance Enquiry

Opening Accounts

Third Party Transfer

30
Receive Alerts

E - Shopping

Credit Card Payments

Customer Correspondence
20
Demat Holdings

Investments

Financial Planning

Trading Online
10
Demonstration of Internet Banking

0
[Link] Respondents by usage
Statement Enquiry 53
Utlity Payments 2
Loan Application 5
Debit or Credit Card 11
Applications Inquiries &
complaints
Fund Transfer 41
Bill Payments 28
Cheque Book ordering 34
Card Lost Informing 3
Cheque Stop Payment 6
Balance Enquiry 46
Opening Accounts 4
Third Party Transfer 18
Receive Alerts 16
E - Shopping 12
Credit Card Payments 28
Customer Correspondence 4
Demat Holdings 9
Investments 3
Financial Planning 4
Trading Online 7
Demonstration of Internet 4
Banking
Table 4.9 Frequency of Internet Banking use

Frequency of Internet Banking [Link] Cumulative

Use Respondents Percentage Percentage
Daily 17 29.82 29.82
Bi - Weekly 16 28.07 57.89
Weekly 8 14.04 71.93
Fortnightly 6 10.53 82.46
Monthly 6 10.53 92.98
Once in a While 4 7.02 100.00
Total 57

Inference

The Frequency of Internet banking among the respondents are 29.8 % were Using
Daily and 28.1% were using Bi –weekly

FREQUENCY OF INTERNET BANKING USE

18
16
14 Daily
12 Bi - Weekly
10 Weekly
8 Fortnightly
6 Monthly
4 Once in a While

2
0
[Link] Respondents
Daily 17
Bi - Weekly 16
Weekly 8
Fortnightly 6
Monthly 6
Once in a While 4

Fig 6.9 Frequency of Internet Banking Use

Table 4.10 Internet Banking Access

[Link]
Respondents by Cumulative
Internet Banking Access usage Percentage Percentage
Home 30 35.71 35.71
Work Place 47 55.95 91.67
Browsing Centres 7 8.33 100.00
Total 84

Inference

Among the respondents 56 % were Using Internet Banking from Workplace , 35.7
% from home and 8.33% from browsing centres.

Fig 6.10 Internet Banking Access

Table 4.11 Relative Usefulness – Internet Banking is compatible to my banking needs

No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 24 39.34 39.34
Agree 24 39.34 78.69
Neutral 12 19.67 98.36
Disagree 1 1.64 100.00
Strongly Disagree 0 0.00 100.00
Total 61

Inference

24% of the respondents Strongly agreed and agreed that Internet banking is Compatible
to my banking needs

Fig 6.11 Internet Banking is compatible to my banking needs

Table 4.12 Relative usefulness – Internet Banking is easy to use

No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 22 36.07 36.07
Agree 34 55.74 91.80
Neutral 5 8.20 100.00
Disagree 0 0.00 100.00
Strongly Disagree 0 0.00 100.00
Total 61

Inference

36.07% of the respondents strongly agreed and 55.74% agreed that Internet
banking is easy to use

Fig 6.12 Internet Banking is easy to use

Table 4.13 Relative Usefulness – Internet Banking is a cheaper way to
conduct banking
No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 28 45.90 45.90
Agree 21 34.43 80.33
Neutral 10 16.39 96.72
Disagree 0 0.00 96.72
Strongly Disagree 2 3.28 100.00
Total 61

Inference

45.9% Strongly agreed & 34.4 % Agreed that Internet Banking is Cheaper Way to
Conduct Business.

Fig 6.13 Internet Banking is cheaper way to conduct business

Table 4.14 Relative usefulness - Internet Banking is self Service

No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 24 39.34 39.34
Agree 24 39.34 78.69
Neutral 11 18.03 96.72
Disagree 1 1.64 98.36
Strongly Disagree 1 1.64 100.00
Total 61

Inference

39.3% strongly Agreed & 39.3% Agreed that Internet banking is self service

Fig 6.14 Internet banking is self service

.
Table 4.15 Relative usefulness – Internet Banking makes it easier for me to conduct my
banking transactions
No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 25 40.98 40.98
Agree 28 45.90 86.89
Neutral 6 9.84 96.72
Disagree 2 3.28 100.00
Strongly Disagree 0 0.00 100.00
Total 61

Inference

45.9% agreed and 41% strongly agreed that Internet Banking is easier for me to
Conduct My Banking needs

Fig 6.15 Internet Banking makes it easier for me to conduct my banking

Transactions
Table 4.16 Relative usefulness – Internet Banking eliminates Geographic
constraints

No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 17 27.87 27.87
Agree 26 42.62 70.49
Neutral 17 27.87 98.36
Disagree 0 0.00 98.36
Strongly Disagree 1 1.64 100.00
Total 61

Inference
42.6 % of the respondents agreed and 27.87% strongly agreed and were neutral in
responding to Internet banking eliminates Geographic constraints

Fig 6.16 Internet Banking eliminates Geographic constraint

Table 4.17 Relative Usefulness – Internet Banking is convenient way to manage
finances is available 24 hrs a day
No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 28 45.90 45.90
Agree 21 34.43 80.33
Neutral 8 13.11 93.44
Disagree 3 4.92 98.36
Strongly Disagree 1 1.64 100.00
Total 61

Inference

45.9% of the Respondents Strongly Agreed and 34.4 % of the Respondents agreed
that Internet Banking is convenient way to Manage Finances is available 24 hrs a
day.

Fig 6.17 Internet bank is convenient way to manage finances is available 24

hrs a day
Table 4.18 Relative Usefulness – Internet banking is more easy to use than existing
banking channels
No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 19 30.65 30.65
Agree 29 46.77 77.42
Neutral 10 16.13 93.55
Disagree 4 6.45 100.00
Strongly Disagree 0 0.00 100.00
Total 62

Inference

46.8% agreed and 30.6% of the respondents strongly agreed that Internet banking
is more easy to use than existing banking channels.

Fig 6.18 Internet Banking is More easy to use than existing banking channels
Table 4.19 Relative usefulness – Using Internet banking will reduce my transaction
costs such as fees paid to banks
No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 14 22.95 22.95
Agree 24 39.34 62.30
Neutral 12 19.67 81.97
Disagree 6 9.84 91.80
Strongly Disagree 5 8.20 100.00
Total 61

Inference

39.3% of the respondents agreed and 23% Strongly agreed that Using Internet
Banking will reduce my transaction costs such as fees paid to banks.

Fig 6.19 Using Internet banking will reduce my transaction costs such as fees
paid to banks
Table 4.20 Perceived Risk – I am afraid others will know information concerning my
Internet banking transactions
No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 1 1.64 1.64
Agree 19 31.15 32.79
Neutral 19 31.15 63.93
Disagree 17 27.87 91.80
Strongly Disagree 5 8.20 100.00
Total 61
Inference

31.1 % of the respondents agreed , 31.1% were neutral and 27.9% disagreed that I
am afraid others will know information concerning my Internet banking
Transactions

.Fig 6.20 I am afraid others will know information concerning my Internet

banking transactions
Table 4.21 Perceived Risk – I feel that others can tamper with information
concerning my internet banking transactions
No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 3 4.92 4.92
Agree 11 18.03 22.95
Neutral 26 42.62 65.57
Disagree 15 24.59 90.16
Strongly Disagree 6 9.84 100.00
Total 61

Inference

42.6% of the respondents were neutral and 24.6% of the respondents disagreed
that I feel that others can tamper with information Concerning my internet banking
transactions

Fig 6.21 I feel that others can tamper with Information Concerning my
Internet banking transactions
Table 4.22 Perceived Risk - I am not Confident about the Security aspects of
Internet Banking in India

No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 3 4.92 4.92
Agree 17 27.87 32.79
Neutral 25 40.98 73.77
Disagree 12 19.67 93.44
Strongly Disagree 4 6.56 100.00
Total 61

Inference

41% of the respondents were neutral and 27.9 % agreed that I am confident about
the security aspects of internet banking in India

Fig 6.22 I am not confident about the security aspects of Internet banking in
India
Table 4.23 Perceived Risk – I believe it is easy for my money to be stolen if using
Internet banking
No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 2 3.28 3.28
Agree 10 16.39 19.67
Neutral 13 21.31 40.98
Disagree 25 40.98 81.97
Strongly Disagree 11 18.03 100.00
Total 61

Inference

41% of the respondents disagreed and 21.3% were neutral in there response that I
believe it is easy for my money to be stolen if using Internet banking

Fig 6.23 I believe it is easy for my money to be stolen if using Internet

banking
.
Table 4.24 Perceived risk – I don’t trust Internet banking Services
No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 1 1.64 1.64
Agree 1 1.64 3.28
Neutral 13 21.31 24.59
Disagree 31 50.82 75.41
Strongly Disagree 15 24.59 100.00
Total 61

Inference

50.8 % of the respondents disagreed and 24.6% strongly disagreed that I don’t
trust Internet Banking Services

Fig 6.24 I don’t trust Internet banking Services

Table 4.25 Perceived Risk - I am Concerned about the Privacy of Internet
Banking Services

No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 5 8.20 8.20
Agree 19 31.15 39.34
Neutral 19 31.15 70.49
Disagree 12 19.67 90.16
Strongly Disagree 6 9.84 100.00
Total 61

Inference

31.1% of the respondents agreed and 31.1% were neutral in there response to I am
concerned about the privacy of Internet banking services

Fig 6.25 I am Concerned about the Privacy of Internet banking Services

Table 4.26 Computer Self Efficacy – I am confident of Using Internet
banking even if there was no one around to show me how to use it.

No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 16 26.23 26.23
Agree 32 52.46 78.69
Neutral 8 13.11 91.80
Disagree 5 8.20 100.00
Strongly Disagree 0 0.00 100.00
Total 61

Inference

52.5% of the respondents agreed and 26.2 % of the respondents strongly agreed
that there are confident of using Internet banking even if there was no one to show
them how to use it.

Fig 6.26 I am Confident of using Internet banking even if there was no one
around to show me how to use it
Table 4.27 Computer Self Efficacy – I am Confident of Using Internet banking even if I
have not used a system like it before.
No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 11 18.03 18.03
Agree 27 44.26 62.30
Neutral 15 24.59 86.89
Disagree 6 9.84 96.72
Strongly Disagree 2 3.28 100.00
Total 61

Inference

44.3% of the respondents agreed and 24.6% were neutral in there response to I am
confident of using internet banking even if I have not used a system like it before.

Fig 6.27 I am confident of using internet banking even if I have not used a
system like it before
Table 4.28 Computer Self Efficacy – I am confident of using Internet banking even if I
have only instructions for reference.
No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 8 13.11 13.11
Agree 29 47.54 60.66
Neutral 17 27.87 88.52
Disagree 2 3.28 91.80
Strongly Disagree 5 8.20 100.00
Total 61

Inference

47.5% of the respondents agreed and 27.9% of the respondents were neutral in there
response to I am confident of using internet banking even if I have only instructions for
reference.

Fig 6.28 I am Confident of using Internet banking even if I have only

instructions for reference.
Table 4.29 Image – Adopting Internet Banking I would be more prestigious
amongst peers
No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 7 11.48 11.48
Agree 19 31.15 42.62
Neutral 19 31.15 73.77
Disagree 10 16.39 90.16
Strongly Disagree 6 9.84 100.00
Total 61

Inference

31.1% of the respondents agreed and 31.1% were neutral in there response to
adopting Internet banking I would be more prestigious amongst peers.

Fig 6.29 Adopting Internet banking I would be more prestigious amongst

peers
Table 4.30 Image – Having Internet banking is trendy amongst my peers

No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 5 8.20 8.20
Agree 25 40.98 49.18
Neutral 21 34.43 83.61
Disagree 9 14.75 98.36
Strongly Disagree 1 1.64 100.00
Total 61

Inference

40.98% of the respondents agreed and 34.43 % were neutral to the response to
having internet banking is trendy amongst my peers

Fig 6.30 Having Internet banking is trendy amongst my peers

Table 4.31 Image – Adopting Internet banking would give me a higher status among
peers
No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 4 6.56 6.56
Agree 14 22.95 29.51
Neutral 22 36.07 65.57
Disagree 16 26.23 91.80
Strongly Disagree 5 8.20 100.00
Total 61

Inference

36.07% of the respondents were neutral and 26.23% of the respondents disagreed
to the response adopting internet banking would give me a higher status among
peers.

Fig 6.31 Adopting Internet banking would give me a higher status among
peers
Table 4.32 Image – Using Internet banking is sign of Modernity

No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 10 16.39 16.39
Agree 20 32.79 49.18
Neutral 24 39.34 88.52
Disagree 4 6.56 95.08
Strongly Disagree 3 4.92 100.00
Total 61

Inference

39.34% of the respondents were neutral and 32.79% agreed that Using Internet
Banking is a Sign of Modernity

Fig 6.32 using Internet Banking is sign of Modernity

Table 4.33 Subjective Norm – Decision to adopt Internet banking is influenced by
friends
No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 4 6.56 6.56
Agree 19 31.15 37.70
Neutral 16 26.23 63.93
Disagree 14 22.95 86.89
Strongly Disagree 8 13.11 100.00
Total 61

Inference

31.1% of the respondents agreed and 26.2 % were neutral and 22.95% disagreed

in responding to decision to adopt internet banking is influenced by friends

Fig 6.33 Decision to adopt Internet banking is influenced by friends

Table 4.34 Subjective Norm – My decision to adopt or not to adopt internet
banking is influenced by friends and relatives.
No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 2 3.28 3.28
Agree 9 14.75 18.03
Neutral 20 32.79 50.82
Disagree 20 32.79 83.61
Strongly Disagree 10 16.39 100.00
Total 61

Inference

32.8% of the respondents disagreed and 32.8% were neutral to my decision to

adopt Internet banking is influenced by friends

Fig 6.34 My decision to adopt or not to adopt internet banking is influenced

by friends and relatives
Table 4.35 Subjective Norm – Decision to adopt Internet banking is influenced by
colleagues
No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 5 8.20 8.20
Agree 17 27.87 36.07
Neutral 15 24.59 60.66
Disagree 15 24.59 85.25
Strongly Disagree 9 14.75 100.00
Total 61

Inference

27.9% of the respondents agreed ,24.6% disagreed 24.6% were neutral in

responding to decision to adopt internet banking is influenced by colleagues

Fig 6.35 Decision to adopt Internet banking is influenced by colleagues

Table 4.36 Subjective Norm – I prefer personal and face to face banking
No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 3 4.92 4.92
Agree 8 13.11 18.03
Neutral 23 37.70 55.74
Disagree 17 27.87 83.61
Strongly Disagree 10 16.39 100.00
Total 61

Inference

37.7% of the respondents were neutral and 27.9% disagrees in responding to I

prefer Personal & face to Face Banking

Fig 6.36 I Prefer Personal and face to face banking

Table 4.37 Subjective Norm – I don’t know how to use Internet banking

No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 2 3.28 3.28
Agree 5 8.20 11.48
Neutral 2 3.28 14.75
Disagree 18 29.51 44.26
Strongly Disagree 34 55.74 100.00
Total 61

Inference

55.7% of the respondents strongly disagreed and 29.5% disagreed in responding to

I don’t know how to use Internet banking.

Fig 6.37 I don’t know how to use Internet banking

Table 4.38 Subjective Norm – My bank doesn’t offer Internet banking

No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 2 3.28 3.28
Agree 2 3.28 6.56
Neutral 5 8.20 14.75
Disagree 19 31.15 45.90
Strongly
Disagree 33 54.10 100.00
Total 61

Inference

54.1% of the respondents strongly disagreed and 31.1% disagreed in responding to

my bank doesn’t offer internet banking

Fig 6.38 My bank doesn’t offer Internet banking

Table 4.39 Result Demonstrability – I believe I could Communicate to others the
advantages and disadvantages of using Internet banking
No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 16 26.23 26.23
Agree 30 49.18 75.41
Neutral 15 24.59 100.00
Disagree 0 0.00 100.00
Strongly
Disagree 0 0.00 100.00
Total 61

Inference

49.18% of the respondents agreed 26.23% disagreed and 23% were neutral in
responding to I believe I could communicate to others the advantages and
disadvantages of using internet banking.

Fig 6.39 I believe I could Communicate to others the advantages of Using

Internet Banking
Table 4.40 Result Demonstrability – I have no difficulty in telling others the
results of Internet banking
No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 15 24.59 24.59
Agree 32 52.46 77.05
Neutral 10 16.39 93.44
Disagree 3 4.92 98.36
Strongly
Disagree 1 1.64 100.00
Total 61

Inference

52.4.6% of the respondents agreed 24.59%strongly agree and 16.39% were neutral
in responding to I have no difficulty in telling others the results of Internet
Banking

Fig 6.40 I have no difficulty in telling others the results of Internet banking
Table 4.41 Result Demonstrability – The results of Internet banking are apparent to me
No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 15 24.59 24.59
Agree 28 45.90 70.49
Neutral 16 26.23 96.72
Disagree 1 1.64 98.36
Strongly
Disagree 1 1.64 100.00
Total 61

Inference
45.90% of the respondents agreed 24.59% strongly agreed and 17.6% of the
respondents were neutral in responding to the results of Internet banking are
apparent to me.

Fig 6.41 The results of Internet banking are apparent to me

Table 4.42 Intention to adopt – Be interested in using bill payment facility via
internet banking in the next 6 months
No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 12 19.67 19.67
Agree 28 45.90 65.57
Neutral 14 22.95 88.52
Disagree 6 9.84 98.36
Strongly
Disagree 1 1.64 100.00
Total 61

Inference
45.9% of the respondents agreed 23 % were neutral and 19.67% strongly agreed
in responding to whether they will be interested in using bill payment facility via
internet banking in the next 6 months

Fig 6.42 Be interested in using bill payment facility via Internet banking in
the next 6 months
Table 4.43 Intention to adopt – Be interested in making Credit Card payments facility
via Internet banking in the next 6 months
No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 12 19.67 19.67
Agree 26 42.62 62.30
Neutral 14 22.95 85.25
Disagree 6 9.84 95.08
Strongly
Disagree 3 4.92 100.00
Total 61

Inference
42.6% of the respondents agreed ,23% were neutral and 19.67% strongly agreed
in responding to whether they will be interested in making credit card payments
within the next 6 months

Fig 6.43 Be interested in making credit card payments via Internet banking
within the next 6 months
Table 4.44 Intention to Adopt – Plan to experiment or use Internet banking in
the next 6 months
No of Cumulative
Rating Respondents Percentage Percentage
Strongly Agree 9 14.75 14.75
Agree 24 39.34 54.10
Neutral 19 31.15 85.25
Disagree 3 4.92 90.16
Strongly
Disagree 6 9.84 100.00
Total 61

Inference
39.3% of the respondents agreed 31.1 % neutral and 14.75% strongly agreed in
responding to plan to experiment or use internet banking in the next 6 months.

Fig 6.44 Plan to experiment or use Internet banking in the next 6 months

5. Major Findings
5.1 Major Findings
1. From the study we find that 90% of the respondents were Internet banking
users

2. Around 60% of the respondents were using internet banking for more than
one year

3. The frequently used Internet banking services among the respondents are
statement enquiry, balance enquiry fund transfer, cheque book ordering ,
bill payments and credit card payments

4. 29% of the respondents were using Internet banking daily and 28% were
using internet banking bi weekly

5. 56% of the respondents were accessing internet banking from workplace

and 36% were accessing from home

6. Most of the respondents strongly agreed and agrees that Internet Banking
was Relatively useful for them

7. 31% of the respondents strongly agreed 31% were neutral and 28%
disagreed when responding to I am afraid others will know information
concerning my internet banking transaction

8. Most of the respondents were neutral and some of the respondents

disagreed when responding to I feel that others can tamper with information
concerning my internet banking transactions.
9. 41% of the respondents were neutral and 28% agreed when responding to I
am confident about the security aspects of internet banking in India.

10. 41% of the respondents disagreed and 21.3% were neutral when responding
to I believe it is easy for my money to be stolen when using internet
banking

11. Most of the respondents disagreed and strongly disagreed when responding
to I don’t trust internet banking transactions

12. Most of the respondents agreed that they were confident of using internet
banking

13. Most of the respondents were neutral and some disagreed when asked
whether there image will increase for using internet banking

14. 31% of the respondents agreed and 26% were neutral when responding
decision to adopt Internet banking is influenced by friends.

15. 38% of the respondents were neutral and 28% disagreed when responding I
prefer personal and face to facer banking

16. Most of the respondents strongly disagreed and disagreed to I don’t know
how to use internet banking

17. Respondents strongly disagreed to my bank doesn’t offer internet banking

18. Respondents strongly agreed and agreed that they did not have any problem
in telling others the results of internet banking
19. Respondents agrees they plan to use Internet banking in the Future

20. Both graduates and Post graduates agreed that Internet Banking Useful to
them and it was easy to use.
 6. Conclusions & Suggestions

6.1 To the Users

Using Internet banking is Convenient and time Saving to the Users
Using Internet Banking reduces Transaction Costs.
Internet Banking is very useful for the employees travelling on official visits and
employees posted at the customer site for a longer period of time.
The Cost of Internet Connectivity being reduced and better Communication
networks the Users can access Internet banking from the Homes.
The Users can start using Others Services like E- Shopping, Opening Demat
Accounts, Online Share trading and Investments.

6.2 To the Banks

Proper development, design interface and promotion of Internet banking is
required
Banks should publicize its Internet banking services and make the Internet banking
procedures less complex
Banks should take advantage of the Internet in order to increase the level of
Service and reduce transaction costs and to achieve competitive advantage and for
better customer satisfaction.
 Bibliography

1. [Link] (2004) “Research Methodology Methods & techniques”

Second edition New age International (p) Ltd Publishers

Websites accessed
1. [Link] (Journal of Internet banking & Commerce)
2. [Link]
3. [Link]
4. [Link]
5. [Link]
 Appendices

Questionnaire

1. Name

Tick the Appropriate Box

2. Gender Male Male Female

3. Age 20 – 35 36 – 50 > 50

4. Occupation

Public Sector Private Sector Others

5. Education

Diploma Holder Graduate Post Graduate

6. Monthly Income

<5,000 5,000 - 10,000 10,000-20,000 >20,000

7. Internet Banking User

Yes No

8. Duration Of Internet banking Use

< 6 Months 6 Months – 1 year >1 year

9. Frequently used Internet banking Services

Particulars Tick The

Service Used
Statement Enquiry
Utility Payments
Loan Application
Debit or Credit card Application Inquiries &
complaints
Fund Transfer
Bill payments
Cheque Book ordering
Card Lost Informing
Cheque Stop payment
Balance Enquiry
Opening Accounts
Third Party Transfer
Receive Alerts
E-Shopping
Credit Card Payments
Customer Correspondence
Demat Holdings
Investments
Financial Planning
Trading Online
Demonstration of Internet Banking

10. Frequency Of Internet banking use

Daily
Bi – Weekly
Weekly
Fortnightly
Monthly
Once in a While

11. Internet Banking Access

Home
Work Place
Browsing Centers

Scale : 5 = Strongly Agree; 4 = Agree; 3 = Neutral; 2 =Disagree 1 = Strongly

Disagree
Rate the Below Questions
12. Relative usefulness
S. No Particulars Rating
1. Internet Banking is Compatible to my banking needs

2. Internet Banking is easy to use

3. Internet Banking is a cheaper way to conduct banking

4. Internet Banking is self service

5. Internet Banking makes it easier for me to Conduct my
banking transactions
6. Internet Banking eliminates Geographic Constraint

7. Internet Banking is Convenient way to manage Finances,

is available 24 hrs a day
8. Internet Banking is more easy to use than existing
banking Channels
9. Using Internet banking will reduce my transaction costs
Such as fees paid to banks

Scale : 5 = Strongly Agree; 4 = Agree; 3 = Neutral; 2 =Disagree 1 = Strongly

Disagree
Rate the Below Questions

13. Perceived Risk

1. I am afraid others will Know information Concerning my
Internet Banking Transactions
2. I feel that Others can tamper with Information
Concerning my Internet Banking transactions

3. I am not Confident about the Security aspects of internet

Banking in India
4. I believe it is easy for my money to be stolen if using
Internet banking
5. I Don’t trust Internet Banking Services

6. I am Concerned about the Privacy of Internet Banking

services

14. Computer Self Efficacy

 1. I am Confident of using Internet banking even if there
was no one around to show me how to use it
2. I am Confident of using Internet banking even if I have
not used a system like it before
3. I am Confident of using Internet banking even if I Have
Only Instructions for reference

Scale : 5 = Strongly Agree; 4 = Agree; 3 = Neutral; 2 =Disagree 1 = Strongly

Disagree
Rate the below Questions
15. Image
S. No Particulars Rating
1. Adopting Internet banking I would be more
prestigious amongst peers
2. Having Internet Banking is trendy amongst my peers

3. Adopting Internet banking would give me a higher

Status among peers
4. Using Internet Banking is Sign of Modernity

Scale : 5 = Strongly Agree; 4 = Agree; 3 = Neutral; 2 =Disagree 1 = Strongly

Disagree

Rate the below Questions

16. Subjective Norm

1. Decision to adopt Internet Banking is influenced by
friends
2. My decision to adopt or not to adopt internet
banking is influenced by friends and relatives
3. Decision to adopt Internet Banking is influenced by
colleagues

4. I Prefer Personal and face to face banking

5. I don’t know how to Use Internet banking

6. My Bank doesn’t offer Internet Banking

17. Result Demonstrability
1. I believe I could communicate to others the
advantages and disadvantages of using Internet
banking
2. I have no difficulty in telling others the results of
Internet Banking
3. The results of Internet banking are apparent to me

19. Intention to Adopt

1. Be Interested in Using Bill Payment facility via
Internet Banking in the next 6 months
2. Be Interested in making Credit Card payments via
Internet Banking within the next 6 months
3. Plan to experiment or use Internet banking in the
next 6 months