Comparative Study on Customer perception of Technology Adoption in Public & Private Sector Banks

Srirup Goswami (10DM026) Amit Kumar Das (10DM031) Sourav Dutta (10DM037) Yashdeep Dabas (10DM048) Anirban Bose (10DM054)

Introduction
Banks in India need to be complimented on the inculcation of technology in a large way in their day-today operations. Credit must be given to Indian Banks who have brought on the new wave of techno-banking in the country. Customers of banks have felt the positive impact of technological solutions implemented by banks starting from banking to the advancement of e-banking. The customer of banks of today have a virtual menu of option from Automated Teller Machines, electronic based funds transfers, Internet banking, mobile banking.

Introduction (Contd.)
They are some of the latest technology based payment solutions, which have gained large acceptance amongst the Indian banking. The focus area for Banks in India is use of Business Intelligence for regulatory reporting, customer and corporate purposes. Straight through processing (STP) and 24 x 7 operations will be key differentiators in banking technology going forward. Adoption of technology differs from public sector banks to private sector banks. Customer perception regarding the same differs accordingly.

Research Objective
Changes in banks external environment have made the banking sector highly competitive.

Banks find it hard to compete on price, and need to look at other ways to retain customers.
As customers become more sophisticated, banks consider the use of technology to respond to their continuously changing requirements. Current scenario in India shows the pace at which technology in Internet banking proceeds doesnt match with the customers usage rate.

Objective of our research is to know about the customer perceptions regarding adoption of technology in public and private sector banks.

Research Methodology
Data Collection
Secondary Data- From internet and online forums. Primary Data- Structured questionnaire.

Variables:Convenient way of operating banking transactions. Reliability. Time factor. Real time access to information. Easy to use and user friendliness. Anytime and anywhere banking facility. Queue management.

Sampling Design:Convenience sampling method. Snowball Sampling method. Target Population : All persons holding bank accounts in different banks irrespective of private sector and public sector banks. Sample Size: Our sample size is 56 based on Facebook response collection as on 6th March, 2011 [time: 11:00 a.m. to 11 p.m.]

What Do The Facts & Figures Show ??

SM Assignment.docx

Which bank are you a Customer of

Standard Chartered 2%

Others 10%

HSBC 2%

Bank Of Boroda 9% State bank of India 37% Bank Of India 7%

HDFC Bank 11% Punjab National Bank 7% ICICI Bank 6%

Axix Bank 7%

Allahabad Bank 2%

Interpretation: Most of the respondents (37%) are State Bank of India customers signifying the importance of public sector banks along with SBIs goodwill in the customers perception.

Findings
There has been a heightened difference noted in case of customer perception regarding use of technology in public sector banks and private sector banks. The main reasons of these differences according to us are: ~ Customers unawareness of a lot many services offered by banks which indicates the lack of enough educating the customers by the banks about the existing facilities and lack of sufficient promotion of these services. ~ Some services are too complicated to handle and lack userfriendliness. ~ Brand preference is a factor. People are mostly favored towards the well known banks with goodwill. ~ Phishing, pharming and other attacks to account information are a major issue. People evidently prefer going for banks which are reliable enough to fight these issues successfully. ~ All kinds of facilities are not available in a widespread manner.

Recommendations
Internet banking in public Sector Banks should be
made more user friendly Availability of ATMs of Private Sector Banks should be increased Customers should be made aware and educated about the existing and new technologically advanced facilities provided by the banks (especially P.S.U. banks) Customer authentication and account security should be given prior importance.