Midterm Report

Comparative study of User Experience of

Banking Application vs Banking Website

SUBMITTED
BY

SHREYA SHETTY 170902160

Under the Guidance of:

External Guide:
DASHRATHRAJ K SHETTY
Associate Professor
Humanities Department
Manipal Institute of Technology

Internal Guide
SHEEBA DAVIS
Associate Professor
Department of Biomedical Engineering
Manipal Institute of Technology
 TABLE OF CONTENTS

Chapter 1 Introduction Pg no
1.1 Background 4
1.2 Need for the Project 5
1.3 Schedule of the Work 5
Chapter 2 Literature Review
2.1 Online Banking 6
2.2 Evolution of E-banking in India 6
2.3 Mobile Banking 7
2.4 User Experience 7
2.5 Importance of User Experience in Internet Banking 8
Chapter 3 Methodology
3.1 Research Background 9
3.2 Design 9
3.3 Implementation 10
3.4 Collection of Data 10
3.5 Analysis 10
3.6 Sample Questionnaire 11
Chapter 4 References 15
 LIST OF FIGURES

Figure Number Figure Title Pg. No

3.2 TAM model 9
3.3 Conceptual Model 10
3.6 Questionnaire 11
 INTRODUCTION

1.1 Background
The global economy has undergone a modern phenomenon in the last few years, the
birth of Internet-based Economy, which is seen as one of the most significant developments since
the industrial revolution. In light of the advantages offered by the use of the Internet, the banks
have begun to invest in this market. In the country of economic growth, banks play an important
role. A country's economic growth entails investments in different economic fields. Small
amount public deposits are collected by the bank to spend in different initiatives. The banks
generally do different agency jobs for their clients and contribute to the country's economic growth.
The Internet plays an important role in transforming the banking situation through accelerated
technological growth. It offers an online portal that offers various services such as online payment,
online transfer of funds, online stock trading and online purchases etc. It supports various financial
transactions.
The use of internet as a delivery channel for banking services is increasing widely in
banking sector. Internet banking facilities enable financial institution and customers to access their
accounts, transactions and getting information on financial products & services. Nowadays most
of the commercial banks have launched various services through internet banking including latest
service like opening online saving accounts and demand for these services is increasing rapidly.
Increased online payment interest increases its market needs. The introduction of mobile
payment shows how technology is becoming more prevalent in people's lives. It also allows
innovative technologies to meet the demands of consumers, such as simplicity and speedy
transfers. When opposed to conventional methods of payment, this modern approach offers many
benefits. People are using less and fewer plastic credit or debit cards to make purchases. It seems
that mobile payment has an effect on our day-to-day lives.
In our electric commerce period, the traditional payment methods cannot keep the pace
of high-speed fund transactions. The emergence of mobile payment provides various services. As
a new payment method, mobile payment guides a whole new payment concept and trend. Its
high speed improves the quantity and quality of mobile business. “Next Generation Payment,”
the other name for mobile payment, makes a huge impact on the credit card or debit card
payment. It might replace those traditional payments for it makes the payment process more
convenient. The mobile payment takes advantage of smartphones which people prefer to carry
than physical cards.
User experience is defined as the overall experience of a person using a product such as
a website or application especially in terms in how easy or pleasing it is to use it. Understanding
the context has been highlighted as important in the field of Human Computer Interaction (HCI)
so contextual scale plays a major role. It includes Physical Context, Technical Context, Task
Context and Temporal Context. Using the contextual scale, the user experience of any
application can be evaluated, in this case it used to compare the user experience of payment apps
and the online applications provided by Banks.
1.2 Need for the project:
In today’s world where everything is getting digitized that includes money, online
payment apps are the new norm. While banks have come up with their own applications, and
websites, one seems to be dominating the other. So, this comparative study will help to analyze
what it is that the latter lacks and to come up with a feasible model to enhance its User Experience.

1.3 Schedule of the work

February 2021

• Data collection
• Analysis of the Data
• Finishing the Literature Review

March 2021

• Define the dimensions and sub-dimensions of context relevant for the

evaluation of UX (User Experience).
• Model Creation.
• Designing the questionnaire.

April 2021

• Data collection from the questionnaire.

• Data Analysis

May 2021

• Documentation
• Presentation of the research.
 CHAPTER 2

LITERATURE REVIEW
2.1 Online Banking

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 the nature of online banking is that
a bank remotely can provide the client with the whole range of banking services that the client
could receive by coming to the bank's office. Today, many operations are conducted online, which
means real-time operations.
Customers now have the opportunity to control their accounts anytime, anywhere, while banks
can reduce their costs, decreasing the number of branches and branch employees. (Satheesh Raju
2015).

Sharil Sharma (2014) identifies online banking as follows: Online banking is an electronic
payment system that enables customers of a financial institution to conduct financial transactions
on a website operated by the institution, such as a retail bank, virtual bank, credit union or building
society. Online 8 banking is also referred as Internet banking, e-banking, virtual banking and by
other terms.

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).

E-banking came into being in UK and USA in 1920s. It became prominently popular during
1960s through electronic funds transfers and credit cards. The concept of web-based banking came
into existence in Europe and USA in the beginning of 1980s. It has been estimated that around40
percent of banking transaction would be done through Net and bill payments

2.2 Evolution of E-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. [1]
Opening up of economy in 1991 marked the entry of foreign banks. They brought new
technology with them. Banking products became more and more competitive. There was need for
differentiation of products and services. The ICICI Bank kicked off online banking in 1996. 1996
to 1998 marked the adoption phase, while usage increased only in 1999, owing to lower Internet
Service Provider (ISP) online charges, increased PC penetration and a tech-friendly atmosphere.
To cope with the pressure of growing competition, Indian commercial banks have adopted several
initiatives and e-banking is one of them. The competition has been especially tough for the public
sector banks, as the newly established private sector and foreign banks are leaders in adoption of
e-banking
The need for this study is because of Although Internet banking has been widely adopted in
developed countries, there is still a group of customers resisting the services. In other words,
Internet banking, although proven to be a successful innovation, has still not become adopted by
the laggards, and hence, has not met all the expectations of banks. (5) Banks are required to
continue to offer ATM payment service despite the additional costs involved when compared to
Internet channel. Although Internet banking is a growing phenomenon, the factors inhibiting its
diffusion are not sufficiently recognised (Bradley & Stewart, 2002; Mols, 1999)

2.3 Mobile Banking

The internet and the mobile phone are two technological advancements that have profoundly
affected human behaviour in the last decade ñ have started to converge. Mobile banking provides
yet another channel for banking services, and in emerging markets, provides some possibility for
becoming a primary channel. [6]
A study found that self-efficiency was the strongest antecedent of perceived ease-of-use, which
directly and indirectly affected behavioural intention through perceived usefulness in mobile
banking. [7]
A study published by Raddon Research Insights (Raddon 2019) noted that growth in mobile
banking usage increased from 7% in 2010 to 41% in 2017. Mobile banking users are among the
most attractive customers for financial institutions. Such clients conduct more monthly debit card
transactions and online banking transactions than customers who do not use this service channel.
(Raddon 2019)
Modern mobile banking applications of traditional banks offer the user a wide range of services,
including checking balances, transfers, and searching for the nearest ATMs, but they are not
enough to stand out. Using mobile capabilities makes it possible to stand out, introducing new
functionality and services using a camera, voice command or biometric authentication with which
the user would able to solve problems. (Agwu, Carter 2016).

2.4 User Experience:

User experience (UX) or user experience design (UXD) is responsible for designing user
interaction with the service or product. It is thought over throughout the project and serves to
ensure that the application or a webpage is logical, convenient to use, and solves specific problems
of the end-user. UX design is responsible for the impressions and feelings that the user will receive
from using the application and how exactly they will use this application. (Moreno 2014;
Mockplus.com 2017)
In this research we are using the UX design approach will be used to test the usability, ease of use
of both Internet banking and Mobile banking application.

2.5 Importance of User Experience in Internet Banking:

The increasing importance of the web in people's daily life calls for device-independent
access to existing web sites. More than two billion people have a mobile phone today, and for
many of them, a mobile phone may be the only way to connect to the web. There is an order for
full web access on mobile phones, but it faces several challenges and the user experience is often
poor. Previous research has identified that the user's internal state, context, and system affect the
user experience, but product development needs a more concrete and comprehensive list of
attributes.
Maintaining a balance between security and a positive user experience in mobile and Internet
banking is becoming increasingly difficult for the providers of banking services. [4]
Durkin et al. (2008, p. 348) underline “the importance for banks to achieve a customer-oriented
balance between face-to-face relationship-managed activity and online enablement and to
understand now this balance varies according to customer and complexity of product”
Customers with varying levels of technology-related views and demographics hold different
beliefs about technology. The relationship between usefulness and behaviour was stronger for
younger males with high levels of optimism and innovativeness (explorers and pioneers), whilst
the relationship between ease of use and behaviour was stronger for older females with a high level
of discomfort (paranoids and laggards) [3]
There have also been benefits for the financial institutions. Banks spend a great deal of money
on Internet banking because it reduces costs relative to other forms of banking, and provides more
timely and complete customer information (Gerrard and Cunningham, 2003). It also increases
service quality which is necessary for survival in competitive markets (Rouibah et al., 2009).
However, achieving these goals requires customers to adopt Internet Banking. Thus, financial
service providers must aim to have, in the establishment and development of Internet banking
capabilities, a comprehensive understanding of how their customers feel about this technology
(Lassar et al., 2005). An important factor that influences customer adoption and use of Internet
Banking is their attitude toward the technology. By identifying the expectations and wants of
customers, and understanding their motivations for adopting (or not adopting) Internet Banking,
bank managers and policy-makers can develop strategies to improve the take up of such
technology.
During the last two decades, many researchers have used Technology Acceptance Model (TAM)
to explain an individual’s acceptance of new Information Technology (IT) and verified that the
perceived usefulness and the perceived ease-of-use are key constructs of individual acceptance
(Adams, Nelson, & Todd, 1992; Agarwal & Karahanna, 2000; Davis, 1989; Davis, Bagozzi,
& Warshaw, 1989; Doll, Hendrickson, & Deng, 1998; Hendrickson, Massey, & Cronan,
1993; Mathieson, 1991; Segars & Grover, 1993).
 CHAPTER 3

METHODOLOGY

For meeting the objective of the study on the basis of a lot of existing literature and research
already present, a quantitative analysis approach was finalized and this is carried out by a
questionnaire. Quantitative analysis fits best in this scenario since it can sample a large number of
users through questionnaire to get bias-free, measurable data about users in relevant situations.
Also since this is a comparative study, quantitative analysis helps determine whether the
differences observed are statistically significant and not due to random chance. Along with the
advantages mentioned before, conducting a quantitative analysis is also inexpensive and less time
consuming and also allows a researcher to acquire both quantitative scale and qualitative data from
a large sample group.
For all the above reason, a questionnaire was designed coupled with quantitative analysis
which was applied in the present study. The aim is to examine the variables in the adoption model
as well as to evaluate the difference in the user Experience of the audience while performing net
banking and banking via application.
The Likert scale is applied to each set of the questionnaire in order to examine how
strongly the user agrees or disagrees with a statement. (1) Strongly disagree, (2) Disagree, (3)
Nature, (4) Agree, (5) Strongly agree.

3.1: Research Background

In this part a thorough research of the existing data available and focusing on defining the need
and the significance for the research to be conducted. Then conducting literature reviews to provide
evidence and back up the need for the research. After studying all the data to come up with an
independent methodology in order to achieve the objective of the study.

3.2: Design

After going through all the data coming up with a tentative conceptual model that includes factors
which measure the objectives of the study and have already been defined that they do so. In this
study, TAM model was established to be the best way to go ahead.
3.3: Implementation

In this after finalizing the factors that not only fit in the model but also achieve the objectives,a
hypothesis model is designed. Based on this model, a questionnaire is prepared to measure each
one of the factors. This questionnaire will be used to carry out a survey.

3.4: Collection of Data

The survey is then circulated in order to collect feedback from users as sample data. After this
SEM is carried out in order to do factor analysis and to reduce the questionnaire. The final data is
then collected via Google Forms.

3.5: Analysis

In this phase, the data collected from the survey will be analysed using the SPSS software. All the
findings from the survey conducted and after their analysis will be documented.
3.6 Questionnaire
 CHAPTER 4
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