Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

CHAPTER - 01
INTRODUCTION

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

1.1 Prelude

In the present world money is circulated all over the globe. Globalization, technological
advances and other factors money is circulating unimaginably. Financial Institutions mainly
Banks play a Pivotal role in matching a depositor and lenders and channeling money and
making the Economy more efficient. Although the history of Banking goes back to the 14th
century in Europe but Banks are now everywhere. The competition in the banking industry has
intensified more than ever before. Global financial crisis, share market crash, recessions and
other factors affected the banking industry. So, banks should position themselves at a unique
place in the minds of the customers by offering attractive offers such as higher interest rates or
by offering superior service to the customers. Services include financial advice, flexible rates
or dates of payment, portfolio management etc. E- Banking is a service offered to the customers
which includes viewing the balances on accounts, checking the transactions, downloading
useful information, transfer of funds, paying third parties, making loan applications etc. from
a secured website of the bank. To operate online an individual, need the customer number and
password. E- Banking has started in the 1980s but it is relatively a new concept in Bangladesh.
The competition in the banking industry is intensifying and it is the bank’s priority to satisfy
its respective customer.

1.2 Background of The Study

The internship program which is necessary to complete the BBA program exercise a significant
importance as it enables a student to be familiar with the practical business activities. The
students work getting close with the people of an organization and learn about the function of
that organization. This program enables a student to develop his/her analytical skill and
scholastic attitude.

As a student for the Bachelor of Business Administration Degree of Human Resource

Management department, I was required to complete an internship in a suitable business
organization and submit a report on my findings. According to the requirement, I have
completed my Internship program in Sonali Bank Limited (Suagazi Branch). On the basis of
my practical experiences as well as theoretical knowledge; I have prepared this report on
“Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited.”

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

1.3 Objectives of The Study

Objective of the study acts as a bridge between the starting point and the goals of the study. To
illustrate the objectives properly, presented into two parts:
Broad Objectives:
The general objective is to prepare a report as partial requirement of BBA program by
exploring and evaluating the ― Effects of e-banking on customer satisfaction: A Study on
Sonali Bank Limited.

Specific Objectives:
The specific objectives of the study may be spelled out as follows –

→ To know about the objective, scope, methodology and the limitation of the report.
→ To know about the bank overview.
→ To know the factors which affect the online bank management of Sonali Bank.
→ To know about the findings & analysis of the report.
→ To know the recommendation & Conclusion of the report.

1.4 Methodology of The Study

Methodology is a system of broad principles or rules from which specific methods of

procedures may be dived to interpret or solve different problems within the scope of a
particular discipline.

Research methodology is the specific procedures or techniques used to identify, select, process
and analyze information about a topic. In a research paper, the mythology section allows the
reader to critically evaluate a study’s overall validity and ratability. The methodology section
answers two main question: How was the data collected or generated? How was it analyzed?

For this purpose, I use my personal observation during my internship program. Through
conversation with the different level officers of the Bank, I also gather knowledge about the
general banking system. Data have been collected from office records, discussions with
employees and from different paper circulars and annual report of Sonali Bank Limited. For
the report preparation, concepts. I used pie chart by MS Office 2016 for analysis findings.

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

Sample size 50, Sample Unit is 10. I was survey in Sonali Bank Ltd., Suagazi Branch and also
nearest branches and techniques are gathered from bank manuals and review books. The study
inputs were collected from two sources:

Primary Sources: The primary data are collected from the following primary sources:
➢ Practical desk work.
➢ Face to face conversation with the respective officers and staffs.
➢ Relevant file study provided by the officers concerned.

Secondary Sources: For this report some tools are used and these are collected from-
➢ Annual Report of Sonali Bank Limited.
➢ Relevant books, research paper and journals.
➢ Internet and various study selected reports.

1.5 Scope of the Study

The scope of this internship report is limited by the information given by the supervisor of
Sonali Bank Limited since there is lots of confidential information which they are not willing
to disclose. The report has also given the readers the opportunity to learn about the general
banking procedures and online banking mechanism, the related regulations, and the
obligations. The research that this report has covered would give the central bank the necessary
feedback information regarding their new online reporting system, which would help them
figure out the problems of the new system for further upgrading. Therefore, the scope of this
report is limited up to the Online Banking System (OBS) and management. This report mainly
covered overall online banking system of SBL and Bangladesh.

1.6 Limitations of The Study

There were some problems while I am doing internship. A wholehearted effort was applied to
conduct the internship and to bring a reliable and fruitful result. In spite of having the
wholehearted effort, there exit some limitations, which acted as a barrier to conduct the
program. The limitations were: -

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

➢ It was very difficult to collect the information from various personnel for the job
constrain.
➢ The department people sometimes remain busy so they could not dedicate their full
efforts.
➢ As some of the fields of banking are still not covered by our courses, there was difficulty
in understanding some activities.
➢ The time is insufficient to know all activities.
➢ Lack of opportunity to access the internal data.

With all this limitation, I tried my best to make this report as best as possible. So, readers are
requested to consider these limitations while reading justifying any part of my study.

1.7 Structure of The Report

INTRODUCTION

AN OVERVIEW OF THE BANK

LITERATURE REVIEW

ANALYSIS AND FINDINGS

CONCLUSION AND RECOMMENDATIONS

Figure 01: Structure of the Report

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

CHAPTER 02- ORGANIZATIONAL PART:

AN OVERVIEW OF SONALI BANK LIMITED

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

2.1 Historical Background of Sonali Bank Limited

Soon after independence of the country Sonali Bank emerged as the largest and leading
Nationalized Commercial Bank by proclamation of the Banks' Nationalization Order 1972
(Presidential Order-26) liquidating the then National Bank of Pakistan, Premier Bank and Bank
of Bahwalpur. As a fully state-owned institution, the bank had been discharging its nation-
building responsibilities by undertaking government entrusted different socio-economic
schemes as well as money market activities of its own volition, covering all spheres of the
economy. The bank has been converted to a Public Limited Company with 100% ownership
of the government and started functioning as Sonali Bank Limited from November 15, 2007
taking over all assets, liabilities and business of Sonali Bank.

Sonali Bank, the largest state-owned Commercial Bank in Bangladesh was established in 1972
under Presidential Order No. 26 of 1972. The bank is fully owned by the government of the
People’s Republic of Bangladesh. The Bank had 1186 branches including two overseas
branches (Kolkata and Siliguri in India) as on 31st December 2004. Out of total 1186 branches,
696 are operating in the rural areas and 488 in the urban areas. Besides, 25 booths under
different branches are performing specialized functions at different locations. From 10
December 2002 Sonali Bank (UK) Ltd (a joint venture company of Sonali Bank and Govt. of
Bangladesh) has been operating to channelize banking activities covering the whole Europe.
A subsidiary company named Sonali Exchange Co. Inc. was incorporated on 4 April 1994
under the laws of the State of New York; Department of State licensed on 17 October 1994 by
the State of New York Banking Department and commenced operation as an International
Money Transmitter from 12 December 1994 through which Bangladeshi citizens living in the
USA are conveniently remitting money to Bangladesh .In 15 November 2007 the bank started
its new journey, changed its structure named Sonali Bank Limited. Mr. Md. Obayed Ullah Al
Masud joined Sonali Bank Limited as Chief Executive Officer and Managing Director on 24
August, 2016.

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

2.2 Management

The Management of the bank is vested on a board of directors, subject to overall supervision
and directions on policy matters by the board which is constituted in terms of Bangladesh bank
(Nationalization) order 1972 board of directors constituted by seven members has authority to
organize, and manage its affairs on commercial consideration within the board policy of
government. Other members of the board including MD are also government appointed out of
that at least three have the experience in the field of Finance, Banking, Trade, Commerce,
Industry and Agriculture. All line and staff personnel of bank are own recruitment except
member of board of Directors.

Deputy Managing Director (DMD)

General Manager (GM)

Deputy General Manager (DGM)

Assistant General Manager (AGM)

Senior Principal Officer

Principal Officer

Senior Officer

Officer

Figure 02: Managerial Structure of Sonali Bank Limited

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

2.3 Corporate Profile (AT A GLANCE)

Name of the Company : Sonali Bank Limited

Chairman : Mr. Ziaul Hasan Siddiqui

CEO and Managing Director : Mr. Md. Ataur Rahman Prodhan

Company Secretary : Mr. Md. Hasanul Banna

Legal Status : Public Limited Company

Genesis : Emerged as Nationalized Commercial Bank in

1972, following the Bangladesh Bank
(Nationalization) Order No. 1972(PO No.26 of
1972)
Date of Incorporation : 03 June, 2007

Date of Vendor's Agreement : 15 November, 2007

Registered Office : 35-42, 44 Motijheel Commercial Area, Dhaka,

Bangladesh
Authorized Capital : Tk.6000.00 core

Paid-up Capital : Tk.4530.00 core

Number of Employee : 21,839

Number of Branches : 1218

Phone-PABX : 9550426-31, 33, 34, 9552924

FAX : 88-02-9561410, 9552007

SWIFT : BSONBDDH

Website : www.sonalibank.com.bd

Table -01: Corporate profile of Sonali Bank Limited

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

2.4 Organogram of Sonali Bank Limited

Chairman

Board of Directors (BOD)

Managing Directors (MD)

Deputy Managing Directors

(DMD) at Head Office

General Manager (GM) General Manager (GM) General Manager (GM)

at Head Office & Local at Zone - 1 at Field GM Office - 1
Office - 1

Deputy General Manager Deputy General Manager

(DGM) at Divisional Head of (DGM) at Field Office (GMO,
Head Office - 8 PO & Cor. Branch) - 7

Assistant General Manager Assistant General Manager

(AGM) at Head Office (AGM) at Field Office

Other Executives Other Executives

SEO, EO, SO, Officer at SEO, EO, SO, Officer at Field
Head Office Office

Other Staffs at Head Office Other Staffs at Field Office

Figure 03: Organogram of Sonali Bank Limited

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

2.5 Vision, Mission of The Bank

Vision
Building a profitable and socially responsible financial institution focused on Markets and
Business with growth potential, thereby assisting SONALI and stakeholders build a "just,
enlightened, healthy, democratic and poverty free Bangladesh.
Mission
Dedicated to extend a whole range of quality products that support divergent needs of people
aiming at enriching their lives, creating value for the stakeholders and contributing towards
socio-economic development of the country

2.6 Slogan of The Bank

Your trusted partner in innovative banking.

2.7 Main Focus

The main focus of the SBL is to provide all types of banking services to the doorsteps of the
people. The bank participates in various socio-economic activities and development programs.
It also takes part in implementation of various plans and programs made by the Government.
As the largest state-owned commercial bank, SBL has the responsibility to run it as a service
oriented and professionally managed leading profitable organization of the country.

2.8 Objectives of Sonali Bank:

Sonali Bank has a various type of Objectives. Important objectives of Sonali Bank are as
follows:
➢ To collect of deposits ➢ To expand trade and commerce
➢ To alleviate poverty ➢ To helps in industrialization
➢ To secure deposit ➢ To increase the capital formation
➢ To inspire savings ➢ To provide the customers service
➢ To create employment ➢ To earn profit
➢ To control loan ➢ To ensure Regional Development.
➢ To create medium of exchange

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

Without those objectives, there are some others too. The bank is responsible to provide all
types of banking services to the door steps of people. The bank participates in various socio-
economic development activities and also takes part in implementation of various polities and
program made by government. As the largest state oriented and professional managed leading
bank of the country.

2.9 Sonali Bank Core Business:

➢ Project finance ➢ NGO-linkage loan

➢ Corporate banking ➢ Loan syndication
➢ SME Finance ➢ Investment
➢ Trade finance ➢ Rural and micro Credit
➢ Consumer credit

2.10 Corporate Social Responsibility (CSR)

To develop CSR engagements & practices the Bank has taken up leading programs at lower
rate of interest like:

➢ Special credit program for freedom fighters,

➢ Special Scholarship brilliant students
➢ Special credit program for Government Primary School Teacher,
➢ Credit Program for overseas Employment,
➢ Collateral-free group –based Credit Program for the landless & sharecroppers,
➢ Green Banking programs like biogas & solar plants

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

2.11 Some notable features of the Bank are as follows:

Capital Structure:
1. Authorized Capital : Tk. 6000.00 Crore
2. Paid up Capital : Tk. 4530.00 Crore

Branches & Subsidiaries:

1. Total No of Branches 1218

a) No of Foreign branches 2
b) No of Local branches 1216
i. No of Rural Branches 749
ii. No of Urban Branches 467
2. No of Regional Offices 16
3. No of Principal Offices 46
4. No of G.M. Offices 11

Subsidiaries:
➢ Sonali Exchange Company Incorporated (SECI) having 10 (Ten) branches in USA.
➢ Sonali Investment Limited (Merchant Banking) having 4 (Four) branches at
Motijheel, Paltan, Uttara, Mirpur in Dhaka and 1 (One) branch in Khulna, Bangladesh.

Associates:
➢ Sonali Bank (UK) Limited having 2 (Two) branches in UK.
➢ Sonali Polaris FT Limited
➢ Representative Offices: 3 1(One) in Jeddah, KSA; 1 (One) in Riyadh, KSA and 1
(One) in Kuwait.
➢ Correspondence: 639

Table 02: Some notable features of Sonali Bank

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

2.12 Ancillary Services:

→ Deposit Products. → Municipal holding Tax.

→ Credit Products. → Passport fees, visa fees.
→ E-services. → Customs & Excise duties.
→ Rural Credits. → Source tax and VAT.
→ Ready Cash. → Jakat fund.
→ Electricity bills & Gas bills. → Hajj deposit.

2.13 Automation Status:

Digitalization status of Sonali Bank Limited:

Branch Computerization: 1148 branches are on live Operation. Out of 1194 branches at
home, 1179 branches have already been entered in the automation network.

Foreign Remittance: Bank's own in-house software "Remittance Management System"

(RMS+), having, among others, the feature of paying foreign remittance instantly over the
counter is being implemented at all branches. This web-based software provides digital
services to the expatriates through its unique advantage of sending confirmation message to
the mobile phone of the remitter/beneficiary.

ATM: Sonali Bank Limited is a member of Q-Cash ATM network. At present the bank has 53
ATM booths. Sonali Bank's ATM cardholders enjoy the access to the ATMs and POS of Dutch
Bangla Bank Ltd. and Brac Bank Ltd. besides those of Q-Cash consortium. Sonali Bank
recently launched Credit Card.

Online and SMS Banking: At present109 branches of Sonali Banks are included in the Online
Any Branch Banking (ABB) network. SMS Banking service is running in 73 branches. The
bank is seriously working on connecting all branches in the Real-time Online Banking network
gradually. Branches having ABB facility are also rendering SMS banking services.

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

CHAPTER - 03
LITERATURE REVIEW

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

3. Literature Review

In this section of the study will introduce some relevant researches with concepts and their
findings evolved by earlier researchers. It will also help to rationalize the study gap that
identified for present study and to frame appropriate objectives for the proposed evaluation.
The present study is to measure the financial performance of Sonali Bank Limited in
Bangladesh. Growth of Electronic banking in a country depends on many factors, such as
success of internet access, new online banking features, household growth of internet usage,
legal and regulatory framework. E-banking can offer speedier, quicker and dependable services
to the customers for which they may be relatively satisfied than that of manual system of
banking. E-banking system not only generates latest viable return, it can get its better dealings
with customers. The rationale of this research is to recognize the impact of variables of e-
banking on customer pleasure in Bangladesh.

1. Revolution

The banking industry has been taken the leading position in e-business world for years. E-
Banking Revolution has fundamentally changed the business of banking by scaling borders
and bringing new opportunities. In simple words, E-Banking implies provision of banking
products and services through electronic distribution channels. The internet offers faster access
to the bank services for customers that is more suitable and available around the clock
irrespective of the customer’s location (Chavan, 2013). The internet banking phenomenon has
transformed the banking mode and method and it has brought new strategic directions for
investment in banking information and communication technologies (Sabi, 2014). The network
which connects the various locations and gives connectivity to the central office within the
organization is called intranet. Those intranet networks are limited to the organizations that use
it (Vyas, 2012). Internet banking is now used as the term for new age banking system Internet
banking is defined as the use of Internet to deliver banking activities such as funds transfer,
viewing current account’s data, paying bills and savings account balance, purchasing financial
instruments and paying mortgages and certificates of deposits (Opara et al., 2016). E–payment
is described as that whereby banking businesses are transacted through automated processes
and electronic devices such as personal computers, telephones, and fax machines, Internet card
payments and other electronic channels (Chaudhry et al., 2016).

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

2. Customer Satisfaction

In the advent of 21st century, E-Banking revolution has an impact nearly each facet of human
life. The new data technologies have some alters the whole image of service sector (Gautam,
2013). Despite banks attempt to mitigate shopper problems through giving on-line accounts
that generally attract diluted fees and better interest, managing the continuing tension between
potency and human interaction represents a challenge to banking establishments (Herington &
Weaven, 2009). The distinctive nature of the services, with the emergency of technology, had
semiconductor to contentions with internet banking. Despite the efficiencies created by e-
banking, continuing dependency on human reactions, many business area units are still keeping
duplicative ancient records and activity ancient banking tasks that cause but full
implementation of the technology (Wong et al., 2008). Banks on the planet are effectively
deploying data technology as associate degree innovative resource to realize speed, efficiency,
value reduction, client service and competitive advantage. Technology enabled product and
delivery channels provide banking activities to customers in anyplace and anytime (Joshua et
al., 2011). The previous research on E-Banking indicates that the perceived quality of E-
Banking services has a strong influence on customer satisfaction and use of E-Banking (Amin,
2016; George & Kumar, 2014).

3. Convenience

Internet banking gains an extraordinary acceptance in several countries because of its

advantages for both banks and customers. Adapa & Rindfleish (2013) indicate that developed
countries embrace technological innovations at a quicker pace; which internet banking is
strongly adopted by many shoppers. The structural relationships among electronic service
quality, total satisfaction and total service quality are examined by Kayabasi et al. (2013). A
high-level correlation has been found between perception of total service quality and
perception of total satisfaction. The benefit of use, variables responsiveness, security and
products portfolio, which are the scales of e-service quality, have an effect on total satisfaction
perception and total service quality perception in parallel with the literature. Security and
responsiveness have shown the best result on e-service quality perception.

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

4. Privacy Issues

“Information Privacy refers to the desire of individuals to control or have some influence over
data about themselves” (Bélanger & Crossler, 2011). The other studies also deal with the
connection of Privacy and adoption of E-Banking (Masoud & AbuTaqa, 2017). There are many
concerns about privacy of personal information and context confidentiality might hinder
customers from exploitation web banking, a reality that emphasizes the importance of
problems associated with privacy and security. The necessary gaps must be filled regarding
privacy concerns of clients on web banking. Furthermore, they found that the consumers often
rely that their bank is more concerned about privacy issues and their protect. (Howcroft et al.,
2002). (Chiu et al., 2016) As the number of products and services offered via the internet grows
rapidly, the consumers are more and more concerned about security and privacy issues.
Generally speaking, many consumers are unwilling to give private information over the
telephone or the internet, for example credit card information.

5. Cost

Customers are willing to pay low service charge for banking services. Even satiny low fee per
group action will become an enormous revenue generator, banks don't have to be compelled
to still expose e-services for gratis, but if they hope to charge for them, they're doing ought to
higher communicate the convenience and worth of these services (Valentine, 2014). Full prices
are obligatory on customers in three ways: worth, technology preferences, and distance
traveled to conduct a group action. Samples of the ways in which retail banks charge costs
embrace fees for a selected service, minimum account balances, periodic fees, and deals for
packages of services. Since banks place multiple locations throughout a vicinity, and customers
travel at random among the region, it's cheap to assume that customers don't live their distance
to one retail spiral outlet in evaluating their banking relationship (Reynold et al., 2011). Similar
to the study carried out by Aliyu and Tasmin (2012) which showed the association between
cost factor (linked with the use of internet and service charges) and adoption of online banking.
They suggested that customers who adopt online banking are aware of the fee charges and
found it acceptable. In brief, people may choose to support or against online banking system
based on their perception of the cost.

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

6. Ease of Use

Rapidly growing and dynamic revolutionized technologies have overwhelmed the world of
financial institutions. Those form of technological advancement has enhanced delivery of
banks’ services, it has an enormous effect on development of more flexible payment’s methods
and more user-friendly banking services (Dixit & Datta, 2010). Technologies enable both
customers and employees to be more effective in getting and providing services. During self–
service technologies customers can serve themselves more effectively (Wilson et al., 2016).
For example, via online banking customers can access their accounts, apply for loan, check
balances, shift money among accounts, and take care of their banking activities without the
assistance of the employees of banks (Ismail & Osman, 2012).

7. Personalization and Customization

Sundar and Marathe (2010) have defined the potential mediators of customization in terms of
customer perspective. Providing high customization drives the tangible benefits on customers
and strong control for them via using their system. In E-Banking, the service gives the
opportunities on electronic bill paying, mobile banking, provide paying the bills from the
computer or smart phone, eliminating the disputes to write checks and buy stamps. Instead,
once you enter your payment or account details to create a standing list, simply, the web page
forwards you to your banking profile and the clients can type the amount of payment and click
to send a payment each month (Wang et al., 2017; Moro et al., 2015). Another easy way of E-
Banking is that customers could put recurring level payments for such expenses as insurance,
your mortgage, or a car loan on autopilot, and they’ll be deducted each month on a certain date
you set. Customers also tend to bank bill pay services to the automatic electronic pay option
offered by many utilities, insurers, lenders, and other companies, because it gives the customer
more control over when and if a particular bill should be paid (Herzberg, 2003).

8. Security

Three reasons that consumers do not trust internet technology relate to security of the system,
worries about the reliability of internet services, and distrust of service providers. Reputation
is also considered important, as distrust of the service provider is a related factor. The risk
associated with the service is also the best reason for avoiding of internet banking usage

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

(Yousafzai, Pallister, & Foxall, 2003). Risk is related to reliability and system failure. Risk
usually arises from uncertainty when consumers cannot foresee the consequences of their use
of a certain product or service. Demographics may also be relevant in understanding the use
patterns of internet banking (Adapa & Rindfleish, 2013). Grabner-Krauter and Faullant (2008)
advocate that gender may also be a relevant factor influencing consumer resistance to use
internet banking, as women are regarded privacy protection and ethical standards more
seriously than men.

9. Trust

Hence, trust plays an important role in determining the level of loyalty towards the service
provider. Trust formed when customer believes that the bank will perform as promised
(credibility trust) and have confidence in the employee’s ability and courtesy (benevolence
trust) (Yap et al., 2012). Jjan and Abdullah (2014) reported that trust in the banking sector
increased the awareness on the importance of technology-related critical success factors.
Compared with conventional bank, image, and trust play an important role in influencing
Islamic bank customers’ loyalty level because bank users strongly believe that Islamic bank
management will execute and operate all banking activities according to the principles of
Islamic law so bank management should introduce loyalty program and extra benefit in
appreciation of the trust and support from customers to ensure that the bank could achieve the
established financial performance and successful with customers’ repeat visiting behavior in
the future (Al-jazzazi & Sultan, 2014; Siraj & Sudarsanan, 2012).

10. Service Quality

Service quality is formed when customers make a comparison between before-service

expectations with their actual-service expectations and with their actual-service experience
(Naik et al., 2010). In Internet banking, e-service quality is important to the banks because it
will affect customer satisfaction. Zhao and Saha, (2005) have identify the nine dimensions of
e-service quality. A customer’s perception on both advantages and disadvantages of a service
provider in general is deemed as service quality. Customers are more inclined to employ
services, become less price-sensitive, and endorse positive experiences on services received
through quality service. According to Nupur (2010), a partial of the service quality dimension
showed a significant relationship with customer satisfaction. A consumer’s perception on the

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

competence of a service provider encompasses service quality and is highly correlated to

customer satisfaction (Shin & Kim, 2008).

Code Factors/Variables Sources

V1 Revolution Chavan, 2013; Sabi, 2014; Vyas, 2012;
Opara et al., 2016; Chaudhry et al., 2016
V2 Customer Satisfaction Gautam, 2013; Herington & Weaven, 2009;
Wong et al., 2008; Joshua et al., 2011; Amin,
2016; George & Kumar, 2014
V3 Convenience Adapa & Rindfleish 2013; Kayabasi et al.
2013
V4 Privacy Issues Bélanger & Crossler, 2011; Masoud &
AbuTaqa, 2017; Howcroft et al., 2002; Chiu
et al., 2016
V5 Cost Valentine, 2014; Reynold et al., 2011; Aliyu
and Tasmin, 2012
V6 Ease of Use Dixit & Datta, 2010; Wilson et al., 2016;
Ismail & Osman, 2012
V7 Personalization and Sundar and Marathe, 2010; Wang et al.,
Customization 2017; Moro et al., 2015; Herzberg, 2003
V8 Security Yousafzai, Pallister, & Foxall, 2003; Adapa
& Rindfleish, 2013; Grabner-Krauter and
Faullant, 2008
V9 Trust Yap et al., 2012; Jjan and Abdullah, 2014;
Al-jazzazi & Sultan, 2014; Siraj &
Sudarsanan, 2012
V10 Service Quality Naik et al., 2010; Zhao and Saha, 2005;
Nupur, 2010; Shin & Kim, 2008

Table 03: Literature Review

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CHAPTER - 04
ANALYSIS & FINDINGS

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

5.1 Analysis

It is the most important part of my report. My objective was to analyze and find the E-banking
system and customer satisfaction of this bank. I try to do the job of my best. In the following I
have provided the survey analysis of my report.

I have prepared ten questions to measure the customer satisfaction in E-banking and also the
bank itself. For this purpose I take fifty customers or respondents to do my survey. Among this
fifty some are private job holders, Govt. job holders, Businessman, House-wife, Student and
others. All of them provide their opinions to me like yard survey questions. There are so many
savings and current account holders so it was not possible for me to make a survey of all of
them. Moreover, I did not have enough time to take opinion from all of them.

From the 50 respondents that participated, the results and findings are as shown below:
Gender:

Gender

Female
38%
Male
62%

Male Female

Here, 38% are Female and 62% are Male respondents.

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

Age:

Age

46 or Above
14%
Below 25 Below 25
36-45 36% 26-35
20% 36-45
46 or Above
26-35
30%

Here, Responder Ages are 36% are Below 25, 30% are 26-35, 20% are 36-45 and 14% are 46
or Above.

Occupation:

Occupation

12%
20% Student
Self-employed
16%
Service Holder
Homemaker
28%
Does not work
24%

Here, Respondent Occupation are 20% are Student, 28% are Self-employyed, 24% are Service
Holder, 16% are Homemaker and 12% are Does not work.

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

1) Revolution:
E-Banking Revolution has fundamentally changed the business of banking by scaling borders
and bringing new opportunities.

Revolution

Stongly Disagree
8%
28% 10% Disagree
Neutral
16% Agree
Strongly Agree
38%

Here we can see that, 28% of the respondents are strongly agree that e-banking revolution has
fundamentally changed the business of banking by scaling borders and bringing new
opportunities, 38% of them are agree, 16% of them are neutral that means they are actually
neither agree nor disagree and 10% and 8% of them are disagree and strongly disagree
respectively.

2) Customer Satisfaction:
E-Banking indicates that the perceived quality of services has a strong influence on customer
satisfaction and use of E-Banking.

Customer Satisfaction

14% Strongly Disagree

26%
Disagree
16%
Neutral
Agree
12%
32% Strongly Agree

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

About 26% of respondents are strongly agree on that the perceived quality of services has a
strong influence on customer satisfaction and use of e-banking, 32% of them agree with it.
12% of them are neutral. That means they are not in agree and disagree position. 16% are
disagree about the question. 16% and 14% of them are disagree and strongly disagree
respectively. That means they are not believe that the perceived quality of services has a strong
influence on customer satisfaction and use of e-banking.

3) Convenience:
E-banking services afford great facilities & carry out anywhere.

Convenience

6%
24% Strongly Disagrere
22% Disagree
Neutral
Agree
28% 20% Strongly Agree

Here we can see that, 24% of the respondents are strongly agree that the bank services afford
great facilities & carry out anywhere, 28% of them are agree, 20% of them are neutral that
means they are actually neither agree nor disagree and 22% and 6% of them are disagree and
strongly disagree respectively.

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

4) Privacy Issues:
Client's privacy is one of the main features of E-banking services.

Privacy Issues

6% Strongly Disagree
6%
Disagree
42%
26% Neutral
Agree
Strongly Agree
20%

Here among fifty respondents, 42% of them are strongly agree on that the bank has modern
equipment & technology that satisfy their need, 20% of them are only agreed and only 26% of
them are neutral those who are neither agree nor disagree of the question. 6% and 6% of them
are disagree and strongly disagree respectively.

5) Cost:
E-banking services contribute in decreasing the price of service.

Cost

18% 18% Strongly Disagree

Disagree
Neutral
20%
30% Agree
Strongly Agree
14%

In this figure we see that 18% of the respondents are strongly agree claiming that services
contribute in decreasing the price of service, 30% of them are agree with it, 14% of them are

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

neutral that means they are neither agree nor disagree with the question. And only 20% of the
respondents are disagreed with their services. 18% of them respondents are strongly disagree.

6) Ease of Use
E-banking services are very simple for performs service immediately.

Ease of Use

20% 22% Strongly Disagree

Disagree
Neutral
22% 16% Agree
Strongly Agree
20%

About 20% of respondents are strongly agree on that the banking services are very simple for
performs service immediately. They correctly know the information that the customers’
required. 20% of them are neutral. That means they are not in agree and disagree position. 22%
are agree about the question. That means they believe that the employees of the bank are very
helpful, competent and knowledgeable about different policies and procedures. 16% and 22%
of them are disagree and strongly disagree respectively.

7) Personalization and Customization

There is no difficulty in dealing with attractive design and consistent colors language and other
webpage settings.

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

Personalization & Customization

2% 16%
16% Strongly Disagree
Disagree
Neutral

30% Agree
36%
Strongly Agree

In this figure we see that 2% of the respondents are strongly agree claiming that there is no
difficulty in dealing with attractive design and consistent colors language and other webpage
settings, 16% of them are agree with it. 30% of them are neutral that means they are neither
agree nor disagree with the question, 36% of the respondents are disagree with their service.
And 16% of respondents are strongly disagree.

8) Security
E-banking services supply a sufficient control through input, output and processes for the
safety of the client.

Security

4% 12%
20% Strongly Disagree
Disagree
Neutral
36% Agree
28% Strongly Agree

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

About 4% of respondents are strongly agree with that e-banking services supply a sufficient
control through input, output and processes for the safety of the client, 20% are agree with it,
28% are neutral and 36% of them are disagree that input, output & process for the non-safety
of the client and 12% of customers strongly disagree on this. So, Sonali Bank should monitor
on this to improve their position in customer mind.

9) Trust
Trust formed when customer believes that the bank will perform as promised.

Trust

8%
26% Strongly Disagree
16%
Disagree
Neutral
Agree
20%
30% Strongly Agree

Here we can see that 26% and 30% of respondents are strongly agree and agree respectively
on that customer believes that the bank will perform as promised, 20% are neutral on this topic
and 16% and 8% of them are disagree and strongly disagree respectively. So, overall, we can
say the trust formed when customer believes that the bank will perform as promised.

10) Service Quality

Service quality is the most important determinant in banking sector especially in evaluating
the satisfaction of customers.

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

Service Quality

8%
Strongly Disagree
34% 16%
Disagree
Neutral
Agree
18%
Strongly Agree
24%

In this figure we see that twenty 34% of the respondents are strongly agree claiming that they
are satisfied with the overall service they received from the bank, 24% of them are agree with
it, 18% of them are neutral that means they are neither agree nor disagree with the question,
16% of them disagree with it, And only 8% of the respondents are strongly disagree with their
service.

5.2 Findings

Sonali Bank is one of the very first commercial banks who introduced online banking services.
From the beginning they are striving to provide with better quality service. Based on seven
factors described below Sonali Bank’s Online Banking services are being evaluated.

❖ Customer Satisfaction:

Most of the customers are satisfied with the SMS Banking service of Sonali Bank Ltd. Though
some customers are dissatisfied about the ATM Booth service, hopefully, the organization will
meet a solution of this quickly.

❖ Convenience:

Sonali bank service of this branch is not attractive. Clients feel harassment to get service. The
bank has not adopted any digitalized modern banking technology and failed to customize
online facilities.

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

❖ Ease of Use:

It is not easy for us to become skillful at using Electronic Banking. Sonali bank customers
cannot easily access their accounts, apply for loan, check balances, shift money among
accounts, and take care of their banking activities without the assistance of the employees of
banks.

❖ Cost:

Price is a major factor that influences consumer adoption of any product. Sonali Bank Limited
is charging very minimum amount for online services. Sonali Bank Limited charges only TK
500 annually whereas other banks charge more than TK 500 annually.

❖ Service Quality:

Sonali bank always tries to provide the better-quality service. Even when the customers leave
any complain about online services, they try to respond within 24 hours. E-service quality is
important to the banks because it will affect customer satisfaction.

❖ Security Concern:

Security is one of the very important factors in determining the decision of consumers to use
internet banking service. This is fully concerned about the security factor and they are not
upgrade their system regularly. They have two factor authentication systems and their Altitude
website is verified by Verisign with „Verisign Class 3 Extended Validation SSL Certificate‟.

❖ Privacy Issues:

The necessary gaps must be filled regarding privacy concerns of clients on web banking. There
are many concerns about privacy of personal information and context confidentiality might
hinder customers from exploitation web banking, a reality that emphasizes the importance of
problems associated with privacy issues.

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

CHAPTER - 05
RECOMMENDATION AND CONCLUSION

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

6.1 Recommendation

In my internship period, I tried to look something deeply that what are the actual problems
behind the backward positions of Sonali Bank than other private commercial banks. From my
analysis and point of view, some recommendations are as follows-

1. The bank should effectively design its websites as a service providing mechanism and
it should also give information beyond the services offered by bank.
2. The bank can use various modes such as brochures, print media and other technologies
to enlighten users and potential users on step by step access and use of online banking.
3. The bank should emphasize on the advantages of the online banking usage i.e. time
saving, 24-hour service availability, information availability, convenience, low cost
services etc.
4. The bank should target right set of customers. Banks should attract those customers
who have strong financial position and adequate income level to adopt the e-banking
system.
5. The bank generally not serving customized services through e- banking. Banks should
focus upon more customize & innovative services.
6. The bank online services are not expectations of accuracy, user-friendliness, and user
involvement. online banking should be made as user-friendly as possible as not many
consumers are familiar with the electronic banking.
7. Must online have a Customer Care Centre. Online banking remains one of the cheapest
and more efficient delivery channels. Increasing the number of ATM booth.
8. The bank should do cost analysis especially on e-banking and communicate it to the
banking staff.
9. The bank has to improve their technical system to big data and analytics to understand
the customer needs and offer customers expected services for their convenience. The
bank should offer incentives such as special benefits for frequent users, loyalty reward
etc.
10. Technological innovations have been shown to increase productivity of the bank that
boost online banking services. The bank needs to upgrade their IT facilities as well as
more digitalization is required for the betterment.

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

11. The bank more invests on IT sector Upgrade IT structure. Provide more training on IT.
Employs more efficient and active professionals.
12. The frequency of the online transactions through e-banking is less. Thus, the bank
should provide motivation to banking customers to increase their frequency of e-
banking transactions.
13. Generally, customers use the online banking service to know the account statements.
Therefore, the bank should have a good marketing campaign to popularize the other
services offered by banks through e- banking.
Finally, Sonali Bank Limited need to remain up to date with future trends; in other words, they
need online bank management intelligence.

6.2 Conclusion

This study aims to examine the factors that influence the adoption of online banking in Sonali
Bank Limited. In summary, the findings showed that trust, and customers’ experience are the
major factors influencing adoption of online banking in Sonali Bank Limited while cost and
ease of use were found to be insignificant in this study. Results in this study provide important
information for bank providers in designing a mass-oriented or user-friendly internet banking
that would attract people to adopt online banking. Due to technological advancement online
banking is getting more popularity than traditional banking. With online banking, customer
won’t ever have to worry about full access to their account. They will have quick and easy
twenty-four-hour access from anywhere in the world. The online bank won’t ever be closed
for a holiday. Every service provider companies have limitations. Sonali Bank has too, but the
bank has bigger responsibilities towards clients. The bank can add up more products or service
schemes so that the bank can fill up the expectations of people that it has obtained throughout
the year. Besides that, the bank authority should monitor and provide necessary directions to
the officials to get the desired result. Every one of the workers of this bank is exceptionally
qualified and committed, who are continually endeavoring to give the best support of the
clients. In this bank, the representatives are extraordinarily energetic because of their
compensations and different advantages. Here, every one of the representatives is especially
agreeable with their clients, partners, and guests. To sum up, I am fortunate to join here as an
intern because I always get support and motivation to assemble knowledge from SBL.

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

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Website:
1. www.sonalibank.com.bd

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

APPENDIX

Survey on
Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited
Dear Participant,
We are conducting this survey to know your perceptions about the Effects of E-banking on
Customer Satisfaction
The following questionnaire is a part of academic study, and your kind participation in filling
this will be very helpful in the successful completion of the research project.
Your responses will be kept highly confidential.
Please attempt to answer all the questions. Your participation in the study will be highly
appreciated.
PART A: DEMOGRAPHIC PROFILE
1. Write Your Name:
2. Write Your Address:
3. You are ___________? (Choose one response only)
a) Male
b) Female

4. Which of the following categories includes your age? (Choose one response only)
1. 18 – 24 years
2. 25 – 29 years
3. 30 – 34 years
4. 35 – 39 years
5. 40 – 44 years
6. 45 – 49 years
7. 50 years or above

5. What is your occupation? (Choose one response only)

a) Student
b) Self-employed
c) Service holder
d) Dose not works
e) Homemaker
f) Others (Specify) ______________

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Effects of E-banking on Customer Satisfaction: A Study on Sonali Bank Limited

PART B: Effects of E-banking on Customer Satisfaction

Factors are listed in the Table 1. Effects of E-banking on Customer Satisfaction
Please ENCIRCLE the most appropriate number at the right side of each activity in the Table
1 and Table 2 on a scale of 1 to 5 to indicate how closely each of these factors is related to the
Effects of E-banking on Customer Satisfaction. The meaning of the numbers is as follows
which is also specified in the short form at the top of each column.
1 = Strongly Disagree (SD), 2 = Disagree (D), 3 = Neutral (N), 4 = Agree (A) and 5 = Strongly
Agree (SA)
Table 1: E-banking effects on customer satisfaction of the bank
Code Effects of E-banking on Customer Satisfaction: A 1= 2= 3= 4= 5=
Study on Sonali Bank Limited SD D N A SA
V1 E-Banking Revolution has fundamentally changed the 1 2 3 4 5
business of banking by scaling borders and bringing
new opportunities. (Revolution)
V2 E-Banking indicates that the perceived quality of 1 2 3 4 5
services has a strong influence on customer satisfaction
and use of E-Banking. (Customer Satisfaction)
V3 E-banking services afford great facilities & carry out 1 2 3 4 5
anywhere. (Convenience)
V4 Client's privacy is one of the main features of E- 1 2 3 4 5
banking services. (Privacy Issues)
V5 E-banking services contribute in decreasing the price 1 2 3 4 5
of service. (Cost)
V6 E-banking services are very simple for performs 1 2 3 4 5
service immediately. (Ease of use)
V7 There is no difficulty in dealing with attractive design 1 2 3 4 5
and consistent colors language and other webpage
settings. (Personalization and Customization)
V8 E-banking services supply a sufficient control through 1 2 3 4 5
input, output and processes for the safety of the client.
(Security)
V9 Trust formed when customer believes that the bank 1 2 3 4 5
will perform as promised. (Trust)
V10 Service quality is the most important determinant in 1 2 3 4 5
banking sector especially in evaluating the satisfaction
of customers. (Service Quality)

Thank you for taking your valuable time to complete the survey questionnaire

Sonali Bank Limited 40