Abstract:

In recent years, the banking industry around the world has been undergoing a
rapid transformation. The deepening of information technology has facilitated better tracking
and fulfilment of commitments, multiple delivery channels for online customers and faster
resolution of issues. In India too, the wave of deregulation in the early 1990s has created
heightened competition and greater risks for banks and financial intermediaries. Today,
customers expect highest quality services from banks which, if fulfilled, could result in
significantly improved customer satisfaction levels. This empirical research study mainly
focuses on investigating the major factors that influence online customers’ satisfaction with
the overall service quality of their banks. This study also helps in assessing the power of
these factors in the context of Online (Internet) banking and would, therefore, help the bank
management not only in improving the level of satisfaction but also strengthening the bond
between the banks and their customers, thereby helping them to retain and/or expand their
overall customer base.

Introduction:

Banks have traditionally been in the forefront of harnessing technology to

improve their products, services and efficiency. 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), Internet is increasingly used by banks 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.
Even though started as network primarily for use by researchers in defence and scientific
community, with the introduction of WWW in early 1990s, use of Internet for commerce has
grown tremendously. Ecommerce involves individuals and business organizations
exchanging business information and instructions over electronic media using computers,
telephones and other telecommunication equipment’s. Such form of doing business has been
in existence ever since electronic mode of data / information exchange was developed, but its
scope was limited only as a medium of exchange of information between entities with a pre-
established contractual relationship. However, Internet has changed the approach to
ecommerce; it is no longer the same business with an additional channel for information
exchange, but one with new strategy and models

Objectives of the Study:

In this context, the present research study was undertaken:

1. To Study/understand the types of banking account normally used by customers.

2. To investigate the factors that influence the level of satisfaction of online customers
(i.e. Customers using Online or Internet banking services) of SBI banks in Amravati
city; and

3. To assessment of relative significance of these factors on overall satisfaction of these

online banking customers of SBI in Amravati city.

4. To Study/ understand the problems of customer while dealing with internet banking
transaction.

5. To measure the awareness level of the customers towards services provided by the
bank

Research of Literature:
Internet banking as an ‘Internet portal, through which customers can
use different kinds of banking services ranging from bill payment to making investments’.
With the exception of cash withdrawals, Internet banking gives customers access to almost
any type of banking transactions at the click of a mouse. The use of the Internet as a new
alternative channel for the distribution of financial services has become a competitive
necessity instead of just a way to achieve competitive advantage with the advent of
globalization,2008 defined Customer‘s satisfaction as the banks’ ability to fulfil the business,
emotional, and psychological needs of its customers. However, customers have different
levels of satisfaction as they have different attitudes and experiences as perceived from the
company. Customer’s satisfaction is affected by the importance placed by the customers on
each of the attitudes of the product/ service. Customer satisfaction measurement allows an
organization to understand the key drivers that create satisfaction or dissatisfaction; and what
is really driving their satisfaction during a service experience.
 When customers pay money to buy a service he has some minimum
expectations from the transaction. These expectations for the purchase have to be met
substantially, if not entirely for the customer to become a loyal customer of the service. These
expectations are fulfilled of a promise- quality, fair price, availability, after sale services,
complaints handling process, information, and variety etc. the customers are demanding high
quality of services and low prices or charges. Better quality for the same cost is the motto of
the customers.

Research Methodology:

Population of Study: Amravati city. A total of 100 consumers from old bypass road,
Amravati were surveyed for this research study.

Primary Data:
Tools Used: Questionnaire & Interview
Sample frame: All customers who are using or are willing to use or adopt Internet
banking in Amravati.
Sample size: 100

Questionnaire: This is divided into two parts: The questionnaire was self-administered by
the researcher. According to, a research study designed to reveal factor structure should have
more observations than variables, and that the minimum absolute sample size should be 50
observations. Furthermore, as rule of thumb, the number of observations per variable should
be a minimum of five.

Part 1 is the demographic study and it consist questions pertaining to the respondents’
demographic profiles, such as age, gender, marital status, educational qualification,
occupation, employment sector, designation and monthly income were asked.
Part 2 (Consumer Opinion) had questions related to major factors of online customer
satisfaction.

Secondary data: was collected through research papers, Newspapers, journals, websites,
books, project reports and so on.
Needs of the Project:
In this study we will be study all the aspects of internet banking, its
introduction, its development, adoption by the customers, consumer’s perception about this
service, its success and security related issues. But a very few researchers had studied the net
banking service with respect to the SBI Bank.

Scope of the Study:

Traditional branch based retail banking remains the most wide spread
method for banking transaction. However the internet technology rapidly changing the way
of designing and delivering the personal services. Now Commercial banking is introduced
internet based e- banking system to improve their operations and to reduce the cost. Despite
all their efforts aimed at developing better and easier internet banking system, these systems
remain unnoticed by the customer. Therefore there is a need to understand user
s’ acceptance of internet banking and a need to identify the factors that can affect their
intention to use the Internet Banking. The area where the study will be conducted is Amravati
City
Limitations of the Study:

It is not possible for any market study to make accurate due to many
hurdles in the collection and computation of data. Some limitations of study are listed below,

1. The Sampling frame to conduct the study has been restricted to the area
Amravati.
2. Respondents show reluctance towards giving correct information.
3. Findings of the study are based on the assumption that respondents have
disclosed in the questionnaires.
4. Time is major constraints.

Chapterization :

1. Abstract
2. Introduction
3. Objective of the study
4. Research of Literature
5. Research Methodology
6. Need , Scope and Limitations of project
Conclusion:
This research study revealed that Banking Needs, followed by Core Services,
Problem Resolution, Cost Saved, Convenience and Risk and Privacy Concerns were the
major factors that strongly affect the overall satisfaction of online consumers. On the other
hand, Feature Availability and Consumer Continuation were found to moderately affect the
overall satisfaction of customers using Online or Internet banking services. In order to
promote customer satisfaction, it is inevitable for banks give due emphasis to all the above-
mentioned factors.

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Research Candidate Research Supervisor