ISSN: 1204-5357

TECHNOLOGY ADOPTION AND CUSTOMER SATISFACTION IN BANKING TECHNOLOGICAL SERVICES

Karthikeyan P*

School of Management Studies, Kongu Engineering College, Perundurai, Erode-638052, Tamil Nadu, India

Soniya K

Happy Valley Business School, Velandavalam Road, Veerapanur, Pichanur Post, Coimbatore, Tamil Nadu, India

*Corresponding Author:
Karthikeyan P
School of Management Studies
Kongu Engineering College
Perundurai, Erode-638052
Tamil Nadu, India
Tel: +919843641321
E-mail: ptp_karthi@yahoo.co.in
Visit for more related articles at Journal of Internet Banking and Commerce

Abstract

A sound and effective banking system is the backbone of an economy. The economy of a country can function smoothly and without many hassles if the banking system is not only flexible but also capable of meeting the new challenges posed by the technology and other external as well as internal factors. The aim of the study is to compare the banks based on their adoption/usage of technology in banking services and to identify and analyze the factors influencing the customer’s adoption/usage of technology in banking services in Coimbatore city. For this purpose a sample of (100) from ICICI bank and (100) from HDFC bank were taken in to consideration and percentage analysis, F-test, and t-test were used as statistical tools to analyze the data. The conclusion is that the dimensions used for the study can be used for decision making process of the study as the level of significance is less than 0.05 in all the dimensions and if the employees are not satisfied from their job, working conditions, work culture, management etc. they can never make the customers satisfied with better quality services. This paper explores factors that affect the adoption or intention to adopt three e‐banking technologies and changes in these factors over time. Using a Federal Reserve Board commissioned data set, the paper finds that relative advantage, complexity/simplicity, compatibility, observability, risk tolerance, and product involvement are associated with adoption. Income, assets, education, gender and marital status, and age also affect adoption. Adoption changed over time, but the impacts of other factors on adoption have not changed. Implications for both the banking industry and public policy are discussed. This study proposes a new method to investigate adoption of new technologies and tests this method by looking into the determinants of internet banking adoption. This paper seeks to develop our understanding of consumer attitudes towards bank delivery channels. Accordingly, a questionnaire was designed to obtain information about which delivery channels consumers had used when acquiring four types of financial service.

Keywords

Customer Satisfaction; Technology; Financial Services; Banking

Introduction

Banking has always been a highly information intensive activity that relies heavily on information technology (IT) to acquire, process, and deliver the information to all relevant users. Not only is IT critical in the processing of information, it provides a way for the banks to differentiate their products and services. Banks find that they have to constantly innovate and update to retain their demanding and discerning customers and to provide convenient, reliable, and expedient services. Driven by the challenge to expand and capture a larger share of the banking market, some banks invest in more bricks and mortar to enlarge their geographical and market coverage. Others have considered a more revolutionary approach to deliver their banking services via a new medium: the Internet. Since the introduction of the Internet in 1969, it has evolved from the sole domain of the computer nerd and the academic to a mainstream channel of communication [1].

Review of Literature

Advances in technology along with increasing labor costs have caused service firms to explore self service delivery options. Nowadays, the service industry in the world is changing, thus new technology has changed the method of customer provide services in many service organizations [2].

Gupta et al. [3] aim to focus on the customer’s perception about technology being used for delivery of financial products and services by Public Sector Banks (PSBs) of India. The study finds that public sector banks need to understand the factors that influence the perception of an individual to add greater value to customers in terms of delivering financial products and services through innovative delivery channels.

The importance of security and privacy for the acceptance of online banking has been noted in many banking studies [4-10]. Security on the Internet can be defined as any factor affecting the perceived risk with both financial and personal matters such as, privacy [11].

Bindiya et al. have studied perception of Indian customers towards the use of technologies with respect to such factors as convenience, privacy, security, ease of use, real time accessibility, and accurate record of varied transaction that enable customer’s adoption of Banking Technology. They found there is no significant difference between adoption rates of banking technologies by the customers of different private banks.

Methodology

Statement of the Problem

The study is about comparing the banks from private sector based on the technology used by the banks to provide survive for their customers. The study may help the concerns to know about the updation on technology about their bank and also their competitor based on the perception of customers.

Objectives of the Study

• To compare the banks based on their adoption/usage of technology in banking services.

• To study about the service quality dimensions and to study about the level of satisfaction of customers of two selected banks.

• To know about the problems on use of technology in selected banks.

• To identify and analyze the factors influencing the customer’s adoption/usage of technology in banking services in Coimbatore city.

Research Methodology

Descriptive Research design is used for this study. Convenience sampling method was used for this study. The actual number of subjects chosen as a sample to represent the population characteristics. In terms of Market capital, the top two private sector banks are considered for the study. It includes HDFC Bank and ICICI Bank. The total Sample Size for this study is 200 and was collected from both the banks 100 sample respectively in Coimbatore city. The primary data was collected through personal interview along with a well-structured questionnaire consists of close-ended questions and questions with 5-point Likert type scale. The scale of response is 5 Likert Scale and the questions are adopted from Singh [2], Barun, Kumbhar, Al-Hawari et al. [12], Collier et al., Wolfinbarger and Gilly, Joseph and Stone, Lee and Lin, Mobarek and Yee-Loong Chong et al. Some of the questions were modified to suit the nature of the operations in its environment and few questions were added in consideration of the reliability and validity. For some respondents questionnaire method was used to collect data. Secondary data are the data that have already been gathered by researchers, data published in statistical and other journals, and information available from any published or unpublished source available either within or outside the organization, all of which might be useful to the researcher [13]. The secondary data for this project are collected from text book, journals and from internet. The various statistical tests are used which includes mean, independent sample t-test, one-way ANOVA and Friedman’s test for rank analysis (Table 1).

Table 1: Demographic Profile of the Customers.

Particulars Category ICICI Bank HDFC Bank
Gender Male 49 46
Female 51 54
Age 18-25 51 27
26-30 20 39
31-40 12 30
41-50 12 4
51-60 5 0
Level of Education Illiterate 0 0
High school 11 0
Intermediate 0 11
Degree 39 45
Master Degree 50 44
Others 0 0
Marital status Married 53 41
Unmarried 36 59
Widowed 11 0
Divorce 0 0
Occupational Distribution Govt employee 4 22
Private employee 81 51
Business 5 18
Student 10 5
House wife 0 4
Others 0 0
Income wise Composition of Respondents Up to 10000 23 8
10000-15000 0 5
15001-20000 8 4
20001-25000 15 11
25001-30000 12 12
30001-35000 20 13
35001-40000 17 8
40001-50000 5 14
50001 and above 0 25
Total 100 100

Results and Discussion

It’s inferred that majority of the respondents are female from ICICI and HDFC banks and there is no significant relationship between both the banks while comparing the gender. The age group of 18-25 in ICICI bank and most of the respondents are from the age group of 26-30 from HDFC and there is a significant relationship between both the banks while comparing the age of the respondents. The respondents have completed their master degree in ICICI bank and most of the respondents have completed their degree in HDFC and there is a significant relationship between both the banks while comparing the level of education of the respondents. Majority of the respondents are married in ICICI bank and majority of the respondents are unmarried in HDFC and there is a significant relationship between both the banks while comparing the marital status of the respondents (Table 2). Majority of the respondents are private employees in both ICICI bank HDFC and there is a significant relationship between both the banks while comparing the occupational distribution of the respondents. Majority of the respondents are earning from 30001-35000 in ICICI bank and most of the respondents are earning above 50001 in HDFC and there is a significant relationship between both the banks while comparing the income of the respondents.

Table 2: Status of Internet Usage of Respondents.

Status ICICI Bank HDFC Bank
Less than 1 year 0 12
1-5 years 32 57
5-10 years 29 23
10-15 years 34 8
above 15 years 5 0
Total 100 100

It’s inferred that most of the respondents holding their account for 10-15 years in ICICI bank and majority of the respondents are holding for 1-5 years in HDFC there is no significant relationship between both the banks while comparing the account status of the respondents (Table 3).

Table 3: ANOVA Analysis on Customer Satisfaction of Service Quality- Tangibility.

Satisfaction Levels of Tangibility Bank Name Extremely
Satisfied
Satisfied Neutral Dissatisfied Extremely
Dissatisfied
F value Sig
Bank has up-to-date equipment and technology ICICI 24 64 12 0 0 12.543 0.000**
HDFC 52 47 7 0 0
Location of the bank ICICI 27 43 30 0 0 11.917 0.000**
HDFC 26 58 16 0 0
Sufficient number of ATM machines ICICI 37 21 38 0 0 3.728 0.984
HDFC 27 52 21    
Counter partitions in bank and its branches ICICI 31 13 56 0 0 8.510 0.002**
HDFC 12 41 26 8 13
Materials associate with the banks office (pamphlets, brochures) are visually appealing at the banks of office ICICI 31 57 12 0 0 10.313 0.007**
HDFC 10 34 45 8 3
The employees approach ICICI 29 39 32 0 0 7.405 0.045*
HDFC 19 27 46 4 4
Guide sings indicating as to which counters are offering which
services
ICICI 40 38 18 4 0 3.925   0.067    
HDFC 17 33 38 4 8

Under the dimension of customer satisfaction of service quality with reference to tangibility the services which were highly influential in customer satisfaction of service quality are bank has up-to-date equipment and technology, location of the bank, counter partitions in bank and its branches, and materials associate with the banks office (pamphlets, brochures) are visually appealing at the banks of office [14]. The f-values for these services are 0.000**, 0.000**, 0.002**, 0.007** respectively, which is less than .01 level of significance. The services which are less influential in customer satisfaction of service quality are the employees approach and the f value is 7.405 which is less than 0.05 level of significance (Table 4). Materials associated with sufficient number of ATM machines, and guide sings indicating as to which counters are offering which services were not influential in this dimension. The f-test shows 3.728 and 3.925 which is not significant.

Table 4: ANOVA Analysis of Customer Satisfaction of Service Quality – Reliability.

Satisfaction Levels of Reliability Bank Name Extremely
Satisfied
Satisfied Neutral Dissatisfied Extremely
Dissatisfied
F value Sig
The bank website does not freeze after customer put in all the information ICICI 80 20 0 0 0 6.723 0.001**
HDFC 56 41 3 0 0
Information provided on website ICICI 63 29 4 4 0 12.978 0.000**
HDFC 11 78 11 0 0
up to date content ICICI 57 8 15 20 0 16.667 0.048*
HDFC 20 55 25 0 0
Process of transactions ICICI 52 8 20 20 0 11.561 0.529
HDFC 12 32 49 7 0
Wide range of products provided ICICI 47 9 20 8 16 8.864 0.015*
HDFC 16 29 37 9 9

Under the dimension of customer satisfaction of service quality with reference to reliability the services which were highly influential in customer satisfaction of service quality are the bank website does not freeze after customer put in all the information, and Information provided on website. The f-values for these services are 6.273 and 12.978 respectively, which is less than 0.01 level of significance [15,16]. The services which are less influential in customer satisfaction of service quality is up to date content and wide range of products provided and the f value is 16.667 and 8.8654 which is less than 0.05 level of significance. A material associated with Process of transactions is not influential in this dimension (Table 5). The f-test shows 11.561 which are not significant.

Table 5: ANOVA Analysis of Customer Satisfaction of Service Quality- Responsiveness.

Satisfaction Levels of Responsiveness Bank Name Extremely
Satisfied
Satisfied Neutral Dissatisfied Extremely
Dissatisfied
F value Sig
Customer service representative ICICI 24 43 33 0 0 8.67 0.007**
HDFC 59 37 4 0 0
Bank performs the services right the first time ICICI 8 81 11 0 0 5.38 0.064
HDFC 8 77 15 0 0
Quick confirmation ICICI 16 36 48 0 0 14.3 0.083
HDFC 7 51 42 0 0
Our request are handled promptly ICICI 32 29 27 12 0 8.16 0.053
HDFC 12 30 52 6 0

Under the dimension of customer satisfaction of service quality with reference to responsiveness the services which were highly influential in customer satisfaction of service quality are customer service representative and the f-values for these services are 8.670 which is less than 0.01 level of significance [17-19]. Materials associated with bank performs the services right the first time, quick confirmation, and our request are handled promptly is not influential in this dimension (Table 6). The f- test shows 5.387, 14.301, and 8.163 respectively which is not significant.

Table 6: ANOVA Analysis of Customer Satisfaction of Service Quality – Assurance.

Satisfaction Levels of Assurance Bank Name Extremely
Satisfied
Satisfied Neutral Dissatisfied Extremely
Dissatisfied
F value Sig
Employees knowledge to answer ICICI 12 68 20 0 0 18.615 0.000**
HDFC 38 38 24 0 0
Politeness and friendly staff ICICI 12 69 19 0 0 4.257 0.285
HDFC 13 28 47 3 0
Employees are always willing to help you ICICI 12 65 23 0 0 2.113 0.112
HDFC 22 28 47 3 0
Experienced management team ICICI 16 57 27 0 0 4.677 0.018*
HDFC 23 39 24 10 4

Under the dimension of customer satisfaction of service quality with reference to assurance the services which were highly influential in customer satisfaction of service quality is Employees of bank have the knowledge to answer customer questions and the f-values for the services is at 18.615 which is less than 0.01 level of significance (Table 7). The services which are less influential in customer satisfaction of service quality is experienced management team and the f value is 4.677 which is less than 0.05 level of significance [20]. Materials associated with Politeness and friendly staff, and Employees are always willing to help you are not influential in this dimension. The f- test shows 4.257 and 2.113 respectively which is not significant.

Table 7: ANOVA Analysis of Customer Satisfaction of Service Quality – Empathy

Satisfaction Levels of Empathy Bank Name Extremely
Satisfied
Satisfied Neutral Dissatisfied Extremely
Dissatisfied
F value Sig
Time bound work of employee ICICI 20 41 39 0 0 9.797 0.004**
HDFC 43 45 12 0 0
Help desks, call centers of bank ICICI 4 48 48 0 0 9.182 0.000**
HDFC 11 58 31 0 0
Specific needs understood ICICI 26 17 53 4 0 5.551 0.008**
HDFC 20 48 28 4 0
Provisions of financial advices ICICI 37 18 40 5 0 10.279 0.236
HDFC 16 36 37 8 3

Under the dimension of customer satisfaction of service quality with reference to empathy the services which were highly influential in customer satisfaction of service quality are Time bound work of employee, Help desks, call centers of bank, Specific needs understood and the f-values for the services are at 9.797, 9.182, 5.551 respectively which is less than 0.01 level of significance (Table 8). Material associated with Provisions of financial advices is not influential in this dimension [21]. The f- test shows 10.279 which are not significant.

Table 8: : ANOVA Analysis of Customer Satisfaction of Service Quality – Efficiency.

Satisfaction Levels of Efficiency Bank Name Extremely
Satisfied
Satisfied Neutral Dissatisfied Extremely
Dissatisfied
F value Sig
Faster login facility ICICI 25 59 16 0 0 7.305 0.002**
HDFC 38 51 8 3 0
Performance of plastic cards (ATM, debit/credit) ICICI 16 44 40 0 0 13.991 0.205
HDFC 6 56 31 4 3
Transfer of funds (NEFT,RTGS) ICICI 16 44 40 0 0 6.618 0.000**
HDFC 14 32 46 4 4
Clearing services (ECS-credit/debit) ICICI 9 35 52 4 0 9.365 0.000**
HDFC 13 33 40 14 0

Under the dimension of customer satisfaction of service quality with reference to efficiency the services which were highly influential in customer satisfaction of service quality are Faster login facility, Transfer of funds (NEFT,RTGS), and Clearing services (ECS-credit/debit) [22-24]. The f-values for the services are at 7.305, 6.618, 9.365 respectively which is less than 0.01 level of significance. Materials associated with Performance of plastic cards (ATM, debit/credit) are not influential in this dimension. The f- test shows 13.991 which are not significant (Table 9).

Table 9: ANOVA Analysis of Customer Satisfaction of Service Quality – Accuracy.

Satisfaction Levels of Accuracy Bank Name Extremely
Satisfied
Satisfied Neutral Dissatisfied Extremely
Dissatisfied
F value Sig
Problem solving through instant information ICICI 22 59 15 4 0 9.375 0.000**
HDFC 32 49 19 0 0
Bank insist on error-free transaction records ICICI 36 40 24 0 0 11.589 0.000**
HDFC 13 57 30 0 0
Electronic bills payments ICICI 49 36 15 0 0 16.781 0.001**
HDFC 19 31 46 4 0
Service charges ICICI 28 38 28 6 0 3.711 0.020*
HDFC 8 38 46 8 0

Under the dimension of customer satisfaction of service quality with reference to accuracy the services which were highly influential in customer satisfaction of service quality are Problem solving through instant information, Bank insist on error-free transaction records, and Electronic bills payments (Table 10). The f-values for the services are at 9.375, 11.589, 16.781 respectively which is less than 0.01 level of significance. The services which are less influential in customer satisfaction of service quality are Service charges and the f value is 3.711 which is less than 0.05 level of significance.

Table 10: ANOVA Analysis of Customer Satisfaction of Service Quality – Security.

Satisfaction Levels of Security Bank Name Extremely
Satisfied
Satisfied Neutral Dissatisfied Extremely
Dissatisfied
F value Sig
Security of ATMs ICICI 20 72 4 4 0 2.027 0.433
HDFC 27 53 16 4 0
Online filling ICICI 32 62 6 0 0 3.874 0.017*
HDFC 10 51 35 4 0
Protection of banking transactions ICICI 37 21 42 0 0 5.910 0.344
HDFC 13 57 23 3 4
Privacy/confidentiality of the bank ICICI 28 33 39 0 0 5.902 0.001**
HDFC 29 16 43 12 0
Care in collection of personal information ICICI 36 37 27 0 0 8.943 0.000**
HDFC 11 34 43 8 4

Under the dimension of customer satisfaction of service quality with reference to security the services which were highly influential in customer satisfaction of service quality are Privacy/confidentiality of the bank, and Care in collection of personal information. The f-values for the services are at 5.902 and 8.943 respectively which is less than 0.01 level of significance [25]. The services which are less influential in customer satisfaction of service quality are online filling and the f value is 3.874 which is less than 0.05 level of significance (Table 11). Materials associated with Security of ATMs, and Protection of banking transactions is not influential in this dimension. The f- test shows 2.027 and 5.910 respectively which is not significant.

Table 11: ANOVA Analysis of Customer Satisfaction of Service Quality - Easy and Convenient Banking.

Satisfaction Levels of Easy and Convenient Banking Bank Name Extremely
Satisfied
Satisfied Neutral Dissatisfied Extremely
Dissatisfied
F value Sig
Language and information content ICICI 24 72 4 0 0 8.965 0.010*
HDFC 40 36 24 0 0
Easy to find and change ICICI 57 43 0 0 0 5.671 0.016*
HDFC 21 48 31 0 0
Instruction on the website ICICI 32 40 28 0 0 4.432 0.521
HDFC 24 37 31 8 0
User friendly system ICICI 37 47 12 4 0 4.475 0.102
HDFC 11 34 43 12 0
Convenient hours of operations (24*7) ICICI 48 28 20 4 0 5.865 0.008**
HDFC 14 31 48 3 4

Under the dimension of customer satisfaction of service quality with reference to easy and convenient banking the services which were highly influential in customer satisfaction of service quality is convenient hours of operations (24*7). The f-values for the services are at 5.865 which is less than 0.01 level of significance (Table 12). The services which are less influential in customer satisfaction of service quality are Language and information content, and Easy to find and change [26]. The f values are at 8.965 and 5.671 which is less than 0.05 level of significance. Materials associated with Instruction on the website, and User friendly system is not influential in this dimension. The f- test shows 4.432 and 4.475 respectively which is not significant.

Table 12: ANOVA Analysis of Customer Satisfaction of Service Quality - Customer Service.

Satisfaction Levels of Customer Service Bank Name Extremely
Satisfied
Satisfied Neutral Dissatisfied Extremely
Dissatisfied
F value Sig
Customer friendly environment at bank ICICI 32 64 4 0 0 16.592 0.000**
HDFC 37 53 3 7 0
Customer feedback services ICICI 4 42 15 0 0 7.413 0.000**
HDFC 11 71 18 0 0
Capable of solving complaints adequately ICICI 44 21 31 4 0 9.101 0.044*
HDFC 15 40 45 0 0
Brochures to educate new users ICICI 37 51 12 0 0 6.739 0.701
HDFC 24 34 31 8 3
Special services for the elders and disabled ICICI 53 31 16 0 0 2.620 0.373
HDFC 3 43 47 3 4

Under the dimension of customer satisfaction of service quality with reference to customer Service the services which were highly influential in customer satisfaction of service quality are Customer friendly environment at bank, and Customer feedback services. The f-values for the services are at 16.592 and 7.413 respectively which is less than 0.01 level of significance (Table 13). The services which are less influential in customer satisfaction of service quality are capable of solving complaints adequately. The f value is at 9.101 which is less than 0.05 level of significance. Materials associated with Brochures to educate new users and Special services for the elders and disabled are not influential in this dimension. The f- test shows 6.739 and 2.620 respectively which is not significant.

Table 13: ANOVA Analysis of Satisfaction level of ATM Services.

Satisfaction Levels of ATM Services Bank Name Extremely
Satisfied
Satisfied Neutral Dissatisfied Extremely
Dissatisfied
F value Sig
Promptness of card delivery ICICI 10 81 9 0 0 5.735 0.281
HDFC 28 61 11 0 0
Number of transactions ICICI 24 32 44 0 0 12.84 0.194
HDFC 23 51 23 3 0
The quality of notes (currency) ICICI 32 35 29 4 0 2.288 0.074
HDFC 17 36 47 0 0
Conveniently located ICICI 6 57 37 0 0 2.290 0.098
HDFC 26 52 18 4  0

Under the dimension of Satisfaction level of ATM Services material associated with Promptness of card delivery, Number of transactions, the quality of notes (currency), conveniently located is not influential in this dimension (Table 14). The f- test shows 5.735, 12.840, 2.288, 2.290 which is not significant.

Table 14: ANOVA Analysis of Satisfaction level of Internet Banking Services.

Satisfaction Levels of Internet banking Services Bank Name Extremely
Satisfied
Satisfied Neutral Dissatisfied Extremely
Dissatisfied
F value Sig
Accounts information and balance enquiry ICICI 27 57 16 0 0 12.27 0.008**
HDFC 38 40 19 3 0
E-payments ICICI 19 47 34 0 0 7.615 0.282
HDFC 10 72 15 3 0
Account to account transfer ICICI 28 39 29 4 0 7.902 0.243
HDFC 12 59 26   3 0
Due installment enquire ICICI 27 27 37 9 0 5.907 0.081
HDFC 12 40  41 4 3
Statement requests
( by email, fax)
ICICI 27 26 21 18 8 3.705 0.025*
HDFC  15 39 33 4 9

Under the dimension of satisfaction on Technological services usage and problems with reference to Internet banking Services which were highly influential in customer satisfaction of service quality are Accounts information and balance enquiry. The f-values for the services are at 12.278 respectively which is less than 0.01 level of significance (Table 15). The services which are less influential in satisfaction on Technological services usage and problems is Statement requests (by email, fax) [27]. The f value is at 3.705 which is less than 0.05 level of significance. Materials associated with E-payments, Account to account transfer, and Due installment enquire are not influential in this dimension. The f- test shows 7.615, 7.902 and 5.907 respectively which is not significant.

Table 15: ANOVA Analysis of Satisfaction level of Telephone Banking Services.

Satisfaction Levels of Telephone Banking Services Bank Name Extremely
Satisfied
Satisfied Neutral Dissatisfied Extremely
Dissatisfied
F value Sig
Pleasant music background ICICI 10 69 30 0 0 21.613 0.000**
HDFC 56 29 8 7 0
Reasonable number of voice prompts ICICI 38 42 20 0 0 15.486 0.000**
HDFC 8 80 8 4 0
Clear instructions ICICI 18 37 41 4 0 21.333 0.000**
HDFC 32 50 14 4 0
Voice directions/ online directions for new users ICICI 23 39 34 4 0 3.507 0.071
HDFC 23 39 34 4 0
Provide additional options ICICI 27 27 33 13 0 2.569 0.143
HDFC 27 27 33 13 0

Under the dimension of satisfaction on Technological services usage and problems with reference to Telephone Banking Services which were highly influential in customer satisfaction of service quality are Pleasant music background, Reasonable number of voice prompts, Clear instructions and the f-values for the services are at 21.613, 15.486, and 21.333 respectively which is less than 0.01 level of significance (Table 16). Material associated with Voice directions/ online directions for new users, and Provide additional options are not influential in this dimension. The f-test shows 3.507 and 2.569 respectively which is not significant.

Table 16: ANOVA Analysis of Satisfaction level of Mobile Banking Services.

Satisfaction Levels of Mobile Banking services Bank Name Extremely
Satisfied
Satisfied Neutral Dissatisfied Extremely
Dissatisfied
F value Sig
Reward point status ICICI 20 49 27 4 0 7.114 0.001**
HDFC 29 63 8 0 0
Prepaid mobile recharge ICICI 23 57 20 0 0 11.306 0.000**
HDFC 9 72 19 0 0
SMS alerts about specific information to the bank services/new products ICICI 15 60 25 0 0 2.751 0.002*
HDFC 8 47 41 4 0
Transaction status ICICI 15 48 37 0 0 4.806 0.000**
HDFC 18 27 41 14 0
Expensive ICICI 28 44 28 0 0 10.928 0.000**
HDFC 22 8 60 3 7

Under the dimension of satisfaction on Technological services usage and problems with reference to Mobile Banking Services which were highly influential in customer satisfaction of service quality are Reward point status, Prepaid mobile recharge, SMS alerts about specific information to the bank services/new products, Transaction status, Expensive and the f-values for the services are at 7.114, 11.306, 2.751, 4.806, and 10.928 respectively which is less than .01 level of significance (Table 17).

Table 17: ANOVA Analysis of ATM Problems.

ATM Problems Bank Name Often Rarely Never F value Sig
Cards get blocked ICICI 4 66 30 13.313 0.001**
HDFC 48 49 3
Machine out of cash ICICI 20 47 33 6.176 0.782
HDFC 11 81 8
None printing of services ICICI 16 51 33 7.985 0.163
HDFC 20 53 27
Machine out of order ICICI 28 28 44 8.485 0.140
HDFC 37 33 30
Long waiting times in queues ICICI 15 53 32 14.977 0.460
HDFC 6 66 28
Reduction in balance without cash payments ICICI 11 53 36 20.471 0.000**
HDFC 7 55 38

Under the dimension of Problems of technology usage with reference to satisfaction levels of tangibility which were highly influential in Problems of technology usage are Cards get blocked, Reduction in balance without cash payments and the f-values for the services is at 13.132 and 20.471 respectively which is less than 0.01 level of significance [28]. Material associated with Machine out of cash, none printing of services, Machine out of order, and long waiting times in queues are not influential in this dimension (Table 18). The f-test shows 6.176, 7.985, 8.485 and 14.977 respectively which is not significant.

Table 18: ANOVA Analysis of Internet Banking Problems.

Internet Banking Problems Bank Name Often Rarely Never Fvalue Sig
Not providing information ICICI 19 51 30 6.231 0.076
HDFC 57 35 8
Not being able to maintain security ICICI 15 80 25 12.663 0.027*
HDFC 16 76 8
Not giving fast response ICICI 15 48 37 5.883 0.001**
HDFC 27 39 34
Leaving the operation unfinished ICICI 11 36 53 9.944 0.197
HDFC 41 33 26
Internet banking can be tampered with by others ICICI 20 16 64 5.521 0.001**
HDFC 21 62 17
Waiting for long time for conducting of transactions ICICI 20 26 54 8.569 0.000**
HDFC 10 47 43
Too many steps in processing transactions ICICI 11 49 40 11.605 0.000**
HDFC 37 22 41

Under the dimension of problems of technology usage with reference to Internet Banking Problems which were highly influential in Problems of technology usage are Cards get blocked, Reduction in balance without cash payments and the f-values for the services is at 13.132 and 20.471 respectively which is less than 0.01 level of significance (Table 19). Not giving fast response, Internet banking can be tampered with by others, waiting for long time for conducting of transactions and too many steps in processing transactions and the f values for the services are at 5.883, 5.521, 8.569, and 11.605 respectively. The services which are less influential in satisfaction on Technological services are not being able to maintain security. The f-value is at 12.663 which is less than 0.05 level of significance. Materials associated with E Not providing information, and leaving the operation unfinished are not influential in this dimension. The f- test shows 6.231 and 9.944 respectively which is not significant.

Table 19: ANOVA Analysis of Telephone Banking Problems.

Tele Phone Banking Problems   Bank Name Often Rarely Never Fvalue Sig
Lack of knowledge of customer service representative ICICI 15 73 12 23.776 0.000**
HDFC 43 50 7
Absents immediate connection to the services ICICI 16 58 26 15.038 0.212
HDFC 11 78 11
Lack of prompt services ICICI 19 39 42 11.514 0.100
HDFC 14 56 30
Lack of clear guidelines ICICI 11 49 40 4.638 0.002**
HDFC 15 25 60

Under the dimension of problems of technology usage with reference to Tele Phone Banking Problems which were highly influential in Problems of technology usage are Lack of knowledge of customer service representative and Lack of clear guidelines and the f-values for the services are at 23.776 and 4.638 respectively which is less than 0.01 level of significance [29]. Materials associated with Absents immediate connection to the services and Lack of prompt services are not influential in this dimension (Table 20). The f- test shows 15.038 and 11.514 respectively which is not significant.

Table 20: ANOVA Analysis of Mobile Banking Problems.

Mobile Banking Problems   Bank Name Often Rarely Never F value Sig
Log in/sign off are not easy ICICI 15 73 12 10.921 0.009**
HDFC 36 51 13    
Lack of security in transactions ICICI 16 58 26 8.813 0.074
HDFC 8 80 12    
Lack of appropriate software ICICI 19 52 29 5.985 0.102
HDFC 11 36 53    

Under the dimension of problems of technology usage with reference to Mobile Banking Problems which were highly influential in Problems of technology usage are Log in/sign off are not easy and the f-values for the services are at 10.921 which is less than .01 level of significance [30,31]. Materials associated with Lack of security in transactions and Lack of appropriate software is not influential in this dimension (Table 21). The f- test shows 8.813 and 5.985 respectively which is not significant.

Table 21: T-test analysis of Overall Satisfaction Level of Services.

Dimensions Bank Name N Mean Standard deviation Std. Error
Mean
t value Sig
ATM Services ICICI 100 2.1375 0.67575 0.0675 32.82 0.000**
HDFC 100 2.2975 0.7225 0.0722
Internet banking Services: ICICI 100 2.13 0.74925 0.07475 33.78 0.000**
HDFC 100 2.1675 0.767 0.07675
Telephone Banking Services ICICI 100 2.12 0.71775 0.072 36.21 0.000**
HDFC 100 2.0525 0.73 0.07275
Mobile Banking services: ICICI 100 2.12 0.71775 0.072 37.40 0.000**
HDFC 100 2.2125 0.71325 0.07125

Under the dimension of problems of technology usage with reference to Overall Satisfaction level of services. The level of significance of all the factors under the dimensions are taken in to consideration as the significance level is at 0.000 which is less than 0.05.

Findings Policy Implications and Conclusion

Findings

• Majority of the respondents are female from ICICI and HDFC banks and there is no significant relationship between both the banks while comparing the gender.

• Majority of the respondents are from the age group of 18-25 in ICICI bank and most of the respondents are from the age group of 26-30 from HDFC and there is a significant relationship between both the banks while comparing the age of the respondents.

• Majority of the respondents have completed their master degree in ICICI bank and most of the respondents have completed their degree in HDFC and there is a significant relationship between both the banks while comparing the level of education of the respondents.

• Majority of the respondents are unmarried in HDFC and there is a significant relationship between both the banks while comparing the marital status of the respondents.

• Majority of the respondents are private employees in both ICICI bank HDFC and there is a significant relationship between both the banks while comparing the occupational distribution of the respondents.

• Most of the respondents are earning from 30001-35000 in ICICI bank and most of the respondents are earning above 50001 in HDFC and there is a significant relationship between both the banks while comparing the income of the respondents.

• Most of the respondents holding their account for 10-15 years in ICICI bank and majority of the respondents are holding for 1-5 years in HDFC there is no significant relationship between both the banks while comparing the account status of the respondents.

• Bank has up-to-date equipment and technology, location of the bank, counter partitions in bank and its branches, and materials associate with the banks office (pamphlets, brochures) are visually appealing at the banks of office are highly influenced.

• The bank website does not freeze after customer put in all the information, and Information provided on website are highly influenced under the dimension of customer satisfaction of service quality with reference to reliability the services.

• Customer service representative under the dimension of customer satisfaction of service quality with reference to responsiveness the services which were highly influential in customer satisfaction of service quality.

• Employees of bank have the knowledge to answer customer questions Under the dimension of customer satisfaction of service quality with reference to assurance the services which were highly influential in customer satisfaction of service quality.

• Faster login facility, Transfer of funds (NEFT, RTGS), and Clearing services (ECS-credit/debit) under the dimension of customer satisfaction of service quality with reference to efficiency the services which were highly influential in customer satisfaction of service quality.

• Problem solving through instant information, Bank insist on error-free transaction records, and Electronic bills payments under the dimension of customer satisfaction of service quality with reference to accuracy the services which were highly influential in customer satisfaction of service quality.

• In t-test analysis the level of significance of all the factors under the dimensions are taken in to consideration as the significance level is at 0.000 which is less than 0.05.

Policy Implications

• The fast augment in number of computerized deliverance channels and customers’ preference to use the online products because of versatile attributes are placing pressure on banks to respond aggressively to meet the customers’ needs. The study provides required input to bank management to increase customers’ involvement through improving service quality; lowering risk; and enhancing security of operations.

• Banks should develop strategies to inspire non-users through awareness, education, personalized services, and demonstrating the functions of internet and mobile banking services. This study shows that recognizing both technological and trust-based issues are important in increasing employee customer’s behavioral intention to use banking services.

• The dimensions used for the study can be used for decision making process of the study as the level of significance is less than 0.05 in all the dimensions.

• Indian Banking Industry is in transformation stage in order to keep pace with the global banking practices all over the world. In recent years the banking reforms with reference to BASEL NORMS by the Central Government under the regulation of RBI. The banking sector reforms introduced recently started giving positive outcomes. Basel III norms which were intended to streamline bank capital requirements by increasing banks liquidity through liquid assets and decreasing bank leverage.

Conclusion

The banking sector in India is on a growing trend. It has vastly benefitted from the surge in disposable income of individuals in the country. Banking has always been a highly information intensive activity that relies heavily on information technology (IT) to acquire, process, and deliver the information to all relevant users. The main objective of the study is to compare the banks based on their adoption/usage of technology in banking services and to identify and analyze the factors influencing the customer’s adoption/usage of technology in banking services in Coimbatore city. For this purpose a sample of 200, (100) from ICICI bank and (100) from HDFC bank were taken in to consideration were percentage analysis, F-test, and t-test were used as statistical tools to analyze the data. The conclusion is that the dimensions used for the study can be used for decision making process of the study as the level of significance is less than 0.05 in all the dimensions and if the employees are not satisfied from their job, working conditions, work culture, management etc. they can never make the customers satisfied with better quality services. So the management has to take remedy measures to analyze about the satisfaction of the employees.

Limitaions of Study

This study has a number of limitations. First, the study is limited by the instrument and applicable to Coimbatore city only. Though the suggestion of multiple methods is a recognition that it increases confidence in the results, the validity and versatility of the single instrument for this study is never in doubt and so the outcomes of the study. The data was collected from only 200 respondents from ICICI and HDFC bank.

References

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