A PROJECT REPORT ON

ONLINE BANKING VS TRADITIONAL BANKING

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 Project Report

(Submitted for the Degree of [Link] Honours in Accounting and Finance

under the University of Calcutta)

Title of the Project

ONLINE BANKING vs. TRADITIONAL BANKING

Submitted by

Name of the Candidate.: Twinkle Agarwal

Registration No.: 034-1211-1372-18

University Roll No.: 181034-11-0859

College Roll No: 266

Name of the College: Shri Shikshayatan College

Supervised by

Name of the Supervisor: Prof. Sapna Shaw

Name of the College: Shri Shikshayatan College

Month & Year of Submission

30th June 2021

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Annexure- I

Supervisor’s Certificate

This is to certify that Twinkle Agarwal a student of [Link] Semester 6 Honours in

Accounting & Finance of Shri Shikshayatan College under the University of
Calcutta has worked under my supervision and guidance for her Project Work and
prepared a Project Report with the title Online Banking vs. traditional banking.

The project report, which she is submitting, is her genuine and original work to
the best of my knowledge.
Place: Signature:
Date: Name: Twinkle Agarwal
Designation:
Name of the college: Shri Shikshayatan College

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Annexure: II

Student’s Declaration

I hereby declare that the project work with the title ONLINE BANKING VS.
TRADITIONAL BANKING submitted by me for the partial fulfilment of the
degree of [Link]. Honours in accounting & finance under the University of
Calcutta is my original work and has not been submitted earlier to any other
university for the fulfilment of the requirement for any course of study.

I also declare that no chapter of this manuscript in whole or in part has been
incorporated in this report from any earlier work done by others or by me.
However, extracts of any literature which has been used for this report has been
duly acknowledged providing details of such literature in the references.
Place: Kolkata Signature
Date: 30/06/2021 Name: TWINKLE AGARWAL
Address: C/o- Twinkle Motors, Soro

Dist- Balasore, Odisha-756045

C.U. Reg. No: - 034-1211-1372-18

C.U. Roll. No: - 181034110859

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 ACKNOWLEDGEMENT

I express my thanks to the Principal of our college for providing the excellent
infrastructure for completion of this project work.

My sincere thanks to Prof. Sapna Shaw who have provided support directly or
indirectly for completion of my project.

I am also indebted to my tuition sir, my friends and my family members who have
extended support and help for completion of this project.

I am grateful to all other teachers of The Shri Shikshayatan College for their
valuable suggestions. I express my sincere thanks to our librarian and all staff
member of our Library Department for their kind co-operation during the
execution of this project work.

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 CHAPTER 1

INTRODUCTION

1.1 BACKGROUND OF STUDY:

Most people are very familiar with how a bank operates. The concept is very
simple; you take your money to the bank and they will keep it safe for you and
you can collect it later. There are other uses of a bank, such as loans and interest.
But with nearly everything going digital, including money transfers, paychecks,
bill payments and debit cards, cash is practically becoming obsolete. And while
some might be slightly nervous to make the switch to an online-only bank, there
are some terrific benefits to online banking. Some of the best online banking
services

People are probably very comfortable walking into your local bank and
depositing a check or making a withdrawal. However, you are also probably very
familiar with the lines associated with doing even the most basic tasks. And in
order to get into the building, you will have to keep in mind all the federal
holidays and other banking days when the bank won’t be open. And if you need
to visit the bank past regular business hours, forget it, it ‘ll just have to wait until
the next day. Traditional banking has some serious flaws in hours of operation
and convenience, which is why online banking can be so appealing.

With online banking, you will not ever have to worry about full access to your
account. You ‘ll have quick and easy 24-hour access from anywhere in the
world. The online bank will not ever be closed for a holiday or for maintenance.
You will not ever have to rush over to the bank after work and fight lines because
with online banking, you can access your account from any computer with an
internet connection. Also, because online banking services don’t have to rent a
building, they often offer higher interest rates with their savings accounts.

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Depositing funds and using the online banking services is simple and quick. The
most common and easiest way to use the internet bank is to have a direct deposit
established with an employer. Most employers prefer direct deposit and setting
up an account is free and simple. You can also move funds into an online bank
via an online transfer or money transfer. Most online banks have check scanning
and check entry money depositing options as well. And, of course, there’s always
the standard United States Postal Service mailing system to deposit funds as well.

When you need to withdraw funds from your online banking service, you can use
a debit card or a standard ATM card. Many of the cards have very similar setups
as the standard and more traditional banks. You can use the debit card for any
online or retail shopping and the ATM cards work in any ATM machine. There
is almost no difference between the ways you would use an online banking
service card and a card from a traditional bank.

Online banking can be intimidating if you are new to the idea. But with the
added convenience, higher interest rates and overall better-quality service, it is
an appealing option for many.

 TECHNOLOGY in Banking

Many of the largest and most successful banks in the world emerged from the
technical changes, they can recognize at an early stage. India’s Banking sector
has a long way to go before it can compete globally. Situation is especially
maintained in the late introduction of ICT in Indian banks. Our information
technology is designed to compete with information technology in the world and
when we are in the area very quickly, it may be difficult for us to benefit from
liberalization.

Bank, with the right technology to provide timely information to increase

productivity and thus see a competitive advantage. Compete in the economy,
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which has been opened, it is certainly the Indian banks to comply with the latest
technology and adapt to its surroundings. Except that the banks need much
improved use of technology to customer-friendly, efficient, and competitive in
the current authorities and businesses, they also need the technology to new
products and new forms of service and the increasingly dynamic global
environment to offer. Information technology allows banks to build new
systems, which bite the needs of many customers that cannot be considered
today.

Online banking, for example, promises customers to conduct banking

transactions in a direct access to the core of the bank customer account works.
Customers to verify all information, all so far, all the checks, all credit card
information.

In future, the banks freed from the constraints of a delivery channel. They can
create package, market, and product niches and because the tumbling price of
the technology, they can do so cost-effectively.

Technology gives banks the opportunity to be closer to customers, to a broader

range of services at lower costs, streamline the March belong system, so that all
information in one place where it can be used for the trends that can quickly
lead into new products. Electronic banking data can be gathered and analyzed.
Interactivity allows the consumer to save the settings, directing the development
of truly new products.

The development of IT has helped the boom of E-Commerce. So it is also

important to know the concept of E-Commerce.

1.2 Need of Study

This study is needed to find out the working of online banking in respect to
traditional banking system and its importance to customer as well as to bank.

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1.3 Review of Literature

Rogers,1983 identifies and describe the adoption issues that exist in Indian banks
regarding internet banking, I have read many articles like diffusion model by
analyzed consumers’ attitude towards direct banking (Lockett and Littler,1997).
The main advantage that I found in these researches regarding internet banking
is that its availability 24 hours a day and 7 days a week. The main disadvantages
associated with direct banking, however, included its complexity and the
security risks involved in using it. The results of this exploratory study are used
to confirm the choice of approach to the main study.

In December,2005 the global internet access exceeded the 1000 million mark;
this was one of the most important milestones in the internet revolution
(IWS,2006). According to ABA (2004) and FOX (2005) internet-based strategy
is more effective than the traditional banking as according to reports it is more
profitable, loyal, and produces committed consumers. According to Black tabs
(2002)-In the new banking environment, internet banking is increasingly
managed as an operational activity and an important component of multi-channel
strategy.

R.K Uppal in his book ‘BANKING WITH TECHNOLOGY’ mentions that

India’s banking made rapid strides in reforming and aligning itself to the new
competitive business environment.

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1.4 Objectives of study

The objectives of this paper are as follows:

1. To know about the activities being provided by traditional banking system.

2. To know how traditional banking concept defers from online banking
concept.
3. To know the role of internet in banking system
4. To analyze customers’ preferences between online banking or traditional
banking.
5. To know what the challenges of online banking are.
6. To know the extent of awareness of online banking among the people.
7. To know the advantages and disadvantages of both the concepts faced by
public in large.

1.5 DATA SOURCE AND METHODOLOGY:

Type of Data: -

A. PRIMARY DATA: -

Questionnaire was used to collect primary data from respondents. The

questionnaire was structured type and contained questions relating to different
dimensions of e-banking preferences among service class such as level of usage,
factors influencing the usage of e-banking services, benefits accruing to the users
of e-banking services, problems encountered. An attempt was also made to elicit
reasons for its non-usage. The questions included in the questionnaire were open-
ended, dichotomous and offering multiple choices.

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 B. SECONDARY DATA:

• Articles on E-Banking and traditional banking taken from journals, magazines

published from time to time.

METHODOLOGY: -
A well-structured questionnaire was administered among 30
respondents of which 25 respondents are aware of online banking.
Simple graphical tools are used as methodology.

1.6 Limitations of Study: -

1. The survey has been made only with 25 respondents.
2. Respondents were reluctant to give the actual feedback
3. The project has been made within a limited period.

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 CHAPTER 2

CONCEPTUAL FRAMEWORK

2.1 Online banking in detail

Online banking, also known as internet banking, e-banking or virtual banking, is an electronic
payment system that enables customers of a bank or other financial institution to conduct a range
of financial transactions through the financial institution's website. The online banking system will
typically connect to or be part of the core banking system operated by a bank and is in contrast to
branch banking which was the traditional way customers accessed banking services.

To access a financial institution's online banking facility, a customer with

internet access would need to register with the institution for the service and set
up a password and other credentials for customer verification. The credentials
for online banking is normally not the same as for telephone or mobile banking.
Financial institutions now routinely allocate customers numbers, whether
customers have indicated an intention to access their online banking facility.
Customer numbers are normally not the same as account numbers, because
several customer accounts can be linked to the one customer number.
Technically, the customer number can be linked to any account with the
financial institution that the customer controls, though the financial institution
may limit the range of accounts that may be accessed to, say, cheque, savings,
loan, credit card and similar accounts.
The customer visits the financial institution's secure website, and enters the
online banking facility using the customer number and credentials previously
set up. The types of financial transactions which a customer may transact
through online banking are determined by the financial institution, but usually
includes obtaining account balances, a list of the recent transactions, electronic
bill payments and funds transfers between a customer's or another's accounts.
Most banks also enable a customer to download copies of bank statements,
which can be printed at the customer's premises (some banks charge a fee for
mailing hard copies of bank statements). Some banks also enable customers to
download transactions directly into the customer's accounting software. The
facility may also enable the customer to order a cheque book, statements, report
loss of credit cards, stop payment on a cheque, advise change of address and
other routine actions

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Traditional banking in detail

Traditional banks are the checking-account-issuing financial intermediaries that

most often come to mind when the term "bank" is used. Like other depository
institutions that accept deposits and make loans, traditional banks are also
responsible for maintaining liquid checkable deposits that are used as money for
the economy. While mergers and bankruptcies change the number for year to
year, about 10,000 traditional banks operate in the U.S. economy.

Traditional banks are classified as either "national" or "state" depending on the

level of government that does the chartering. National banks are chartered by
the Comptroller of the Currency at the federal level. State banks are charted by
one of the fifty state corporation commissions. All traditional banks are subject
to regulations by the Federal Reserve System and the Federal Deposit Insurance
Corporation.

If an aspiring banking entrepreneur, such as Duncan Thurley, aspires to start a

"bank," then a traditional bank is bound to be at the top of the list. A traditional
bank would allow Duncan to provide any and all banking services that he might
desire to offer--checking accounts, savings accounts, car loans, free popcorn,
and little league sponsorship. It would allow Duncan to construction a fancy
building with marble pillars outside and a big vault inside.

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2.2 Advantages and Disadvantages of online banking and
traditional banking

ADVANTAGES:

ONLINE BANKING:

 It's generally secure. But make sure that the website you're using has a
valid security certificate. This lets you know that the site is protected from
cyber-thieves looking to steal your personal and financial information.
 You have twenty-four-hour access. When your neighborhood bank closes,
you can still access your account and make transactions online. It's a very
convenient alternative for those that can't get to the bank during normal
hours because of their work schedule, health or any other reason.
 You can access your account from virtually anywhere. If you're on a
business trip or vacationing away from home, you can still keep a watchful
on your money and financial transactions - regardless of your location.
 Conducting business online is generally faster than going to the bank. Long
teller lines can be time-consuming, especially on a Pay Day. But online,
there are no lines to contend with. You can access your account instantly
and at your leisure.
 Many features and services are typically available online. For example,
with just a few clicks you can apply for loans, check the progress of
your investments, review interest rates and gather other important
information that may be spread out over several different brochures in the
local bank.

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TRADITIONAL BANKING:

 Credit Unions typically pay higher dividend rates on savings

 Credit Unions typically offer lower rates on loans
 Credit Unions typically provide better service; since they are owned and
governed by their membership, they tend to prioritize the needs of their
members above all else
 Credit Unions operate on a not-for-profit business model, so excess
earnings are returned back to the membership in form of competitive
rates and lower fees, and sometimes even special dividends
 Many Credit Unions offer the same products and services found at banks
 Credit Unions often have added-value benefits, such as free financial
education, discounted theme park tickets, and special member rates for
services such as home alarm systems...even discounts at online retailers
like Barnes & Noble.

DISADVANTAGES:

Online banking

Discrepancies between what were expected by the customers and what were
delivered by the bank were found in the availability of the instructions in only
two to three languages. This is alarming because human interactions occur so
seldom and when they occur, they do so in critical situations. If these high-touch
interactions of the high-tech service process fail, there are fewer opportunities to
recover the mistake than in high-touch service processes. Indeed, based on the
nature of the relationship with customers, banking services involve a continuous
flow of interactions between the customer and the service provider.

1. Low Broadband Internet Penetration

India has one of the lowest broadband connectivity penetration rates in Asia as
compared to Japan, Taiwan, Korea, and Singapore. While the bigger cities such
as Mumbai, Delhi, Chennai, and Bangalore have relatively better broadband
penetration rates, PC users in smaller cities and towns still use dial-up options to

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connect to the Internet. Slow connectivity speeds often dampen the online
banking experience for many customers, eager to use such services.

2. Bank’s Ambivalent Commitment Levels

Internet banking did take off in India at the turn of the millennium but
soon faltered due to lack of takers. In the middle of this decade,
multinational and domestic private banks started offering net banking
services as a competitive differentiator. However, banks’ ambivalent
commitment levels and their reluctance to allocate huge budgets for net
banking branding initiatives, as well as a lack of industry advocacy
efforts, have resulted in poor acceptance levels of Internet banking by
customers.

3. Customers’ Preference for Traditional Branches

There are thousands of highly active traditional bank branches in India’s

crowded cities and major towns. Office workers take longer lunch breaks to
finish banking activities and transactions at these branches rather than conduct
them online. Most customers prefer the personal touch and customized service
offered by staff in brick-and-mortar bank branches. Many Indians are also
averse to calling call centers and banks’ customer contact lines to address
issues related to online bank accounts.

4. Fear of Online Threats/Scams

Ubiquitous and prevalent online threats about hackers, identity theft, stolen
passwords, viruses, worms, and spyware tend to make customers wary just like
in any other country. Conservative Indian bank customers used to years of saving
in an erstwhile mixed-socialist economy are always fearful of losing hard-
earned savings in online scams. These customers are also not sure about the
efficacy of banks’ websites and their commitment to allocate funds for reliable
16
encryption mechanisms and robust back-end technologies and systems.

5. Other Problems

Workplace constraints and corporate policies about using external websites or

pursing personal activities such as online banking have affected its expected fast-
paced acceptance among the growing affluent class in India. Cultural issues, such
as parents giving priority use of the home PC to their children rather than using
it themselves, stifle the potential growth of home access to Internet Banking
Services. Public sector banks with vast customer bases also don’t tend to invest
money in training personal for e-banking initiatives, resulting in poor customer
services levels.

Traditional banking

 Limited Accessibility

Accessibility at traditional banks is limited, as you can only conduct business at

their brick-and-mortar locations. If you’re traveling or unable to make it into the
location during standard hours of operation, you won’t be able to do business.

 Less Efficient

Getting in the car, driving to a bank, and waiting in line to be served takes up
your valuable time. It is more efficient to do your banking online, where you can
open new accounts, set up auto bill pay, check account balances, and transfer
funds all from your own computer.

 Lower Interest Rates on Savings

Online banks are typically able to offer much lower interest rates than traditional
banks because they have much lower overhead costs. An October 2016 study by
[Link], revealed that the average interest rate for a savings account at
an online business was 0.569 percent, while it was just 0.123 percent at a
traditional bank.
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2.3 DIFFERENCE BETWEEN ONLINE BANKING AND
TRADITIONAL BANKING

Online banks are the way of future. Online banks seem to have it all: relatively
high interest rates, stellar customer service, low fees, and the added bonus of
24/7 access to your finances with the click of the button.
Still, online banking is not for everyone, and the line between the two concepts is
becoming blurred as more banks ramp up their web presence to compete
1. SECURITY- This is one issue that scares many people away from taking
their banking online. Even traditional banks have all your financial
information stored in a big data center that could be vulnerable to hackers.
“Data theft” is the very real risks these days, but, unfortunately, as a
consumer, it doesn’t come down whether you choose to bank online.
RICHARD BARRINGTON said.
2. FEES- online banks are friendlier to smaller depositors because they
typically required lower monthly balances. Barrington said, Traditional
banks require an average of about $4700 to be kept in your savings account
without charging you a nominal monthly maintenance fee. For online
banks, the number is much lower at $350. In additions, online banks are
about twice as lightly to offer free checking, he said.
3. ATMs- Banking is all about getting cash when you need it, and Barrington
said, people should look at a location of a bank’s ATMs before they open
an account. “you want to make sure you choose a bank where the
geographic footprint of the ATM network is similar to your regular
movements” Barrington said.

Traditional banks have ATMs allover in many major cities. Online banks often
have agreements with ATM networks at all points with surcharge free
withdrawals and most others offer to reimburse customers up to certain sum for
using out of network ATMs.
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4. DEPOSITS-Web based banks offer a few different options to deposit physical
checks. You can always mail them in, but most online bank also offer e-deposits
in which you can take a picture of the front and back of each check and upload it
to your account for deposits. A lot of people still would rather deposit a check
with a teller than a text message, but the options out there.” People are for the
most part checking their balances online, getting information online, but when it
comes to depositing a check, they’d much rather hand it to a teller,” Barrington
said.

5. INTEREST RATES- Online banks typically have better interest rate than
traditional banks because they don’t need to take any funds to operate brick and
mortar buildings. In recent study, online banks were found to have about six times
higher interest rates than the nationwide average.

6. CUSTOMER SERVICE- If you like to deal with the people managing your
money via email or over the phone, go digital. If you would rather have someone
to talk things through with face to face, stick with a regular bank. Nearly all banks
also have call centers and online message centers as well. Online banks are rarely,
if ever, “closed.” But if you would rather use a traditional bank to complete your
transaction or get question answer in person, you will need to visit your bank
during normal business hours and make sure it’s not a bank holiday.

7. PERSONAL PREFERENCES- Having a personal relationship with a banker

can be a big benefit for a people, especially those who like getting new products
and services pitched to them or getting in person financial advice. But keep in
mind that banks have been closing physical branches left and right to cut cost,
even installing ATMs that allow teller to answer questions via web cam. “As time
goes on, the comfort level will go more and more,” Barrington said. “If the
technology can prove itself people will use the technology.”

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If people are comfortable with technology and do not feel like they need to face
time with the people handling your cash, keeping their savings in an online bank
is a great option. Their money will grow faster with a big bank, and they will pay
less in fees. As far as checking accounts go, online and traditional bank are pretty
much neck in neck.

The common denominator is that online bank is cheaper for banks to provide
because they are not supporting a physical branch and people to staff that branch.
Even banks that offer both are like to offer you high rates and lower fees if choose
online options.

Conceptual framework and national and international scenario on

online and traditional banking system.
 National scenario on online banking-Today most of the banking
happens while you are sipping coffee or taking an important call. ATMs
are at your doorstep. Banking services are accessible 24x7. There are more
plastic cards in your wallet than currency notes. A huge part of this change
is due to advent of IT. Banks today operate in a highly globalized,
liberalized, privatized and a competitive environment. In order to survive
in this environment banks must use IT. Indian banking industry has
witnessed a tremendous development due to sweeping changes that are
taking place in the information technology. Electronic banking has
emerged from such an innovative development. The objective of the
present paper is to study and analyze the progress made by Indian banking
industry in adoption of technology. The study is secondary based and
analytical in nature. The progress in e-banking in Indian banking industry
is measured through various parameters such as Computerization of
branches, Automated Teller Machines, Transactions through Retail
Electronic Payment Methods etc. Statistical and mathematical tools such
as simple growth rate, percentages and averages etc. are used. The paper
also highlights the challenges faced by Indian banks in adoption of
technology and recommendations are made to tackle these challenges. The

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 paper concludes that in years to come e-banking will not only be acceptable
mode of banking but preferred mode of banking.
 National scenario on traditional banking-The banking industry in
India has a huge canvas of history, which covers the traditional banking
practices from the time of Britishers to the reforms period, nationalization
to privatization of banks and now increasing numbers of foreign banks in
India. Therefore, Banking in India has been through a long journey.
Banking industry in India has also achieved a new height with the changing
times. The use of technology has brought a revolution in the working style
of the banks. Nevertheless, the fundamental aspects of banking i.e., trust
and the confidence of the people on the institution remain the same. The
majority of the banks are still successful in keeping with the confidence of
the shareholders as well as other stakeholders. However, with the changing
dynamics of banking business brings new kind of risk exposure. In this
paper an attempt has been made to identify the general sentiments,
challenges and opportunities for the Indian Banking Industry. This article
is divided in three parts. First part includes the introduction and general
scenario of Indian banking industry. The second part discusses the various
challenges and opportunities faced by Indian banking industry. Third part
concludes that urgent emphasis is required on the Indian banking product
and marketing strategies in order to get sustainable competitive edge over
the intense competition from national and global banks. This article is a
small seed to existing branch of knowledge in banking industry and is
useful for bankers, strategist, policy makers and researchers.
 International scenario on online banking-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
21
 financial products or services online. This paper is an attempt to explore the various
levels of Internet Banking services provided by banks using the secondary data. It also
compares the traditional banking systems with net banking. It lists out the various
advantages of internet banking and the successful security measures adopted by
different banks for secured banking transactions. It also analyzes how E-banking can
be useful for banking industry during this global financial meltdown.
 International scenario on traditional banking- The traditional branch model of
bank is now giving place to an alternative delivery channels with ATM network. Once
the branch offices of bank are interconnected through terrestrial or satellite links, there
would be no physical identityfor any branch.

22
 CHAPTE 3

DATA ANALYSIS AND FINDINGS

DATA ANALYSIS: A survey was conducted on online banking in India

for the primary data among 25 people. The analysis of this survey or data is:

 Analysis based on age

14
12 Based on age
10
8
votes

6
Series1
4
2
0
18-28 29-40 40 and above
age

Poll out of 25:18-28-3, 29-40-12, 40 AND ABOVE-10

 Analysis based on sex.

Based on sex
16
14
12
10
votes

8 Series1

6
4
2
0
male female
sex

POLL OUT OF 25: MALE:15, FEMALE:10

23
  Analysis based on occupation
14
Based on occupation
12

10

6
Series1
4

0
BUSINESS SERVICES OTHERS
occupation

Poll out of 25: business: 12 services: 10 others :2

1. Are you aware of online banking?
30
Awareness of online banking
25

20
VOTE

15
Series1
10

0
yes no
RESPONSES

POLL OUT OF 30: YES:25 NO:5

Findings: The figure shows the % of users who are aware of the online banking
system across the past few years. The above figure shows the increased number
of users who are totally aware of this system.

24
2. What kind of banking do you prefer

12

10

6
Series1

0
COMPLETELY PARTIALLY NOT AT ALL

FINDINGS: This shows us the preference of the people towards the type of
banking. They prefer to use the services of both the online and traditional banking
rather than a particular type.

3. Show the preference of people between online and traditional banking?

Preferences of people
90%
80%
70%
60%
50%
40% Column1
30%
20%
10%
0%
online traditional

POLL out of 25; Online 21 Traditional 4

FINDINGS: The people understand that online banking is better than the
traditional banking because of its nature. While a few of the people are still not
fully convinced.
25
 4. Do you feel your account is secured in online banking?

50%

40% vote
Percentage

30%

20%

10%

0%
Yes No Can't Say
Security

POLL out of 25: Yes-11; No-7; Cannot Say-7

FINDINGS: Majority of the people think that their Account is secured, but not
all. Their security concern should be eradicated. This will attract customers.

5 How frequently do you use online banking?

50%
45%
40%
35%
Percentage

30%
25%
20%
15%
10%
5%
0%
Weekly Monthly Regularly Rarely
Time period

POLL out of 25: Weekly-5; Monthly- 11; Regularly-2; Rarely-7

26
FINDINGS: Most of the people do not need the services of banks regularly or
maybe there is no need. They may transact with the bank on monthly basis for
most of the time.

6 How happy are you with the services of online banking?

12
SATISFACTION OF CONSUMERS OF
10 ONLINE BANKING
8
NO OF POPLE

6
Series1

0
COMPLETELY PARTIALLY NOT AT ALL CAN’T
RESPONSE SAY

POLL out of 25: Completely-10; Partially-9; Not at all-4 Can’t say: 2

FINDINGS: The satisfaction level of people with the online banking services of
their banks has a mixed review. This may be due to multiple reasons.

7 What are the types of transactions offered?

50%

40%
Percentage

30%

20%

10%

0%
Check Balances Payments Transfer of Funds Other
Types of transactions

27
POLL out of 25: Check balances- 11; Payments-7; Transfer of Funds-2; Other- 5

FINDINGS: The utility of the online banking in service, is not used to the
extent it should be and it is being majority used for the purpose of checking the
balance in the account. The reason for this is the low volume of transaction
among people

8. Do you think online banking has growth potential in India?

16 Growth potential of online banking

14

12
No of people

10

8 Series1
6

0
yes no cant say
Responses

POLL OUT OF 25: YES: 15 NOS: 7 CAN’T SAY:3

Finding: people feel that online banking will definitely make a rapid growth in
its fields. Maximum people have trust on it while some still rely on traditional
form of banking and the rest have mixed responses.

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 9. Does e- banking makes life easier?

e-banking makes life easier

120%
no of respondents

100%

80%

60% Series1

40%

20%

0%
yes no
answer

Findings: There is no one who thinks that online banking has contributed
nothing in making our life easier. Every other person knows that apart from its
limitations it has made our life easy

29
 CHAPTER 4

CONCLUSIONS AND RECOMMENDATIONS

CONCLUSION:

• People are not confident enough to rely completely on online

banking. There is hesitancy in their minds in regard to preference.
So, they use both the techniques of banking i.e., Online and
Traditional.
• Because of the complexity and unawareness in the people,
regarding the online banking, there is less utilization of the online
banking services provided by the banks.

• People are not sure whether their account is completely secured in

online banking. Security concern is the main and the core reason,
why people do not tend to use online banking.
• People in India are not aware of the full utility of online banking
and the services that can be availed of in online banking.
• Most of the Indian population are salaried employees who do not
have that volume of transaction that can be used for online
transaction.
• Banks provide security and convenience for managing your
money and sometimes allow you to make money by earning
interest. Convenience and fees are two of the most important
things to consider when choosing a bank.
• Writing and depositing checks are perhaps the most
fundamental ways to move money in and out of a checking
account, but advancements in technology have added ATM and
debit card transactions and ACH transfers to the mix.
• All banks have rules about how long it takes to access your
deposits, how many debit card transactions you're allowed in a
30
 day, and how much cash you can withdraw from an ATM. Access
to the balance in your checking account can also be limited by
businesses that place holds on your funds.
• Debit cards provide easy access to the cash in your account, but
can cause you to rack up fees if you're not careful.
• While debit cards encourage more responsible spending than
credit cards, they do not offer the same protection or perks to
consumers.
• Regularly balancing your checkbook or developing another
method to stay on top of your account balance is essential to
successfully managing your checking account and avoiding fees
and bounced checks.

31
 RECOMMENDATION:

After analyzing the entire study on online banking with respect to both the
primary and the secondary data, the following recommendations are put forth: -

• The infrastructure for the development is not duly implemented in

a way that could be beneficial.
• There are various obstacles in the banking scenario with regard to
guidelines and issues for functioning. This has led to decline in
the usage of the online banking service of the banks.
• The banks should really arrange program to make people learn
online banking so that the customers do not have to rush to banks
which ultimately saves their time
• The banks will have to think about how people adopt their
technology
• Online banking is usually convenient so it should be used in place
of traditional banking as far as possible.
• Knowledge regarding the process to make use of online banking
should be taught and made aware in general public.
• The people having accounts may be urged to take-up an internet
banking facility. They should be motivated rather than just being
told that there exists a service of online banking.
• There are more people who are not actually aware of all the
benefits that they reap out of the transaction of online banking.
There should be proper awareness.
• Most of the people do not count online banking due to the
problem of security concerns. Proper security software should be
developed, and people should be convinced that their accounts are
secured in online transactions.

32
BIBLIOGRAPHY

Sites consulted

[Link]

[Link]

[Link]

[Link]

[Link]

[Link]

[Link]

[Link]

[Link]

[Link] [Link]

[Link]

[Link]
[Link]

• REFERENCE BOOKS:

UPPAL, R.K. (2008), ‘Banking with technology’, THE NEW

PUBLICATIONS,

ROGER, EVERRET.M. ‘Diffusion and innovation’ 1983 publications

Simon and Schuster, 2008

33
Questionnaire

1. Are you aware of online banking?

○
Yes
○
No
2. What kind of banking do prefer?
○
Online
○
Traditional
○
Both
3. Show the preference of the people between online and traditional banking?
○
Online
○
Traditional
4. Do you feel your account is secured in online banking?
○
Yes
○
No
○
Both
5. How frequently do you use online banking?
○
Yes
○
No
○
Can’t say
6. How happy are you with the services of online banking?
○
Completely
○
Partially
○
Not at all
○
Can’t say
34
7. What are the types of transactions offered?
○
Check balance
○
Payments
○
Transfer of funds
○
Other
8. Do you feel online banking has growth potential?
○
Yes
○
No
○
Can’t say
9. Does e banking make life easier?
○
Yes
○
no

THANK YOU

35