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Online Banking Tools of Standard Chartered Bank and its Impact on Building and Maintaining
Customer Relationships
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Table of Contents Abstract ........................................................................................................................................... 5
Chapter One: Introduction .............................................................................................................. 6
Background ................................................................................................................................. 6
Purpose or Rationale ................................................................................................................... 6
Research Aims ............................................................................................................................. 6
Research Objectives .................................................................................................................... 6
Research Questions ..................................................................................................................... 7
Hypothesis ................................................................................................................................... 7
Chapter Two: Literature Review .................................................................................................... 9
Demand of SCB’s Online Banking Tools ................................................................................... 9
Future Demand of Online Banking Tools ................................................................................. 10
Customer Relationship Management and Online Banking Tools ............................................. 11
SCB’s online Banking Tools ..................................................................................................... 11
Advantages ............................................................................................................................ 12
Internet Banking Tools and Customer’s Satisfaction ................................................................ 12
Cost Perspectives of Online Banking ........................................................................................ 15
Customer’s Perception on usage of Online Banking Tools ...................................................... 15
Determinants of Customer’s Satisfaction with Online Banking ............................................... 17
Determinants of Consumers Behavior ................................................................................... 18
Measurement of Service Quality ............................................................................................... 18
Perceived Soft Quality of Service ......................................................................................... 19
Measurement of Client Factors.............................................................................................. 19
Customer’s Satisfaction towards Online Banking Services ...................................................... 20
Consumers Satisfaction ......................................................................................................... 20
Corporate Image .................................................................................................................... 21
Consumer Retention .............................................................................................................. 21
Switching Barriers ................................................................................................................. 21
Service Quality, Customer Trust, Customer Satisfaction and Loyalty in Online Banking ....... 23
Service Quality Dimension of Customers Satisfaction in Online Banking .............................. 25
Tangibles ............................................................................................................................... 26
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Reliability .............................................................................................................................. 27
Responsiveness ...................................................................................................................... 27
Empathy ................................................................................................................................. 28
Assurance............................................................................................................................... 28
Chapter Three: Research Methodology ........................................................................................ 31
Research Approach ................................................................................................................... 31
Research Strategy and Design ................................................................................................... 32
Qualitative Method ................................................................................................................ 32
Quantitative Method .............................................................................................................. 33
Primary Data Collection ........................................................................................................ 34
Sampling Selection .................................................................................................................... 36
Data Analysis ............................................................................................................................ 37
Ethical Issues ............................................................................................................................. 37
Accessibility Issues ................................................................................................................... 37
Research Limitations ................................................................................................................. 38
Chapter Four: Results & Analysis ................................................................................................ 39
Users of Internet Banking ......................................................................................................... 39
Reason for Using Internet Banking ........................................................................................... 40
Frequency of Using Online Banking Tools ............................................................................... 41
Online Banking Service Attribute ............................................................................................. 42
Additional Attributes of Online Banking Tools ........................................................................ 43
Customer Level of Satisfaction ................................................................................................. 44
Bill Payment .......................................................................................................................... 45
Online Cheque Book Ordering System ................................................................................. 45
(Table 7) ................................................................................................................................ 47
Bank Transfer ........................................................................................................................ 47
Stop Payment ......................................................................................................................... 48
Balance Inquiry...................................................................................................................... 49
Accessing Bank Statement .................................................................................................... 50
Additional Service Attributes of Online Banking Tools ........................................................... 50
Preferences of Online Banking Tools ....................................................................................... 52
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Awareness of the Services and its Benefits ........................................................................... 52
Ease of Use or User Friendliness ........................................................................................... 53
Safety and Security of Transacting Over the Internet ........................................................... 54
The Cost of Using Internet Banking ......................................................................................... 54
Security and Privacy of Online Banking ................................................................................... 55
Importance of Interaction in Online Banking ........................................................................... 57
Customer Satisfaction Level of Online Banking ....................................................................... 58
Hypothesis Result .......................................................................................................................... 58
Focus Group Discussion............................................................................................................ 64
Chapter Five: Discussion .............................................................................................................. 66
Chapter Six: Conclusion/Recommendations ................................................................................ 68
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Abstract In current dynamic corporate environment, online banking tools are most commonly used by
Standard Chartered Bank as primary resource to satisfy its customer. Online transactions and
online banking will further increase in future years because online banking tools used by
Standard Chartered Bank provides strong base for e-commerce. Furthermore recent trend of
having online trading and e-commerce division along with physical existence of business caused
by increase in requirement of processing fast transactions. It is justified to express that online
banking tools have became promising field to facilitate the business of 21st Century. Further to
Asia, Eastern Europe and African markets have also potential for online banking tools used by
Standard Chartered Bank.
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Chapter One: Introduction Background
Not only in banking industry, information technology acted as major and primary driver
of changing the operating styles of almost every industry. More specifically among information
technology tools, internet or online technology had played substantial role in changing the
operational styles or methodology by improving efficiency of organization and reducing cost
which further strengthens the efficiency of an organization (Riquelme, Mekkaoui& Rios, pp. 1-6,
2009).
Purpose or Rationale
Along with the introduction of e-commerce methodology where overall business
operation is conducted through using online technology; this also includes placing or processing
customer orders online (Ho & Lin, pp.5 – 24, 2010). In order to support the payment function of
online orders of customers, SCB have to start its operating activities online in order to provide
fast, easy and quality services along with satisfying the new emerging need of its customers.
Research Aims This research is aimed to analyze the current online banking tools used by Standard
Chartered Bank (SCB) in order to meet the newly emerged need of its customers. Further to this,
in order to include the future or potential impact of online banking tools, this research is also
aimed to explore the potential of improvement in online banking with the help of current online
banking tools used by SCB.
Research Objectives • To analyze how online banking tools satisfy the customers.
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• To examine the current level of customer satisfaction in terms of online banking tools at
standard chartered bank
• To gain understanding of quality dimensions that impact level of satisfaction while using
internet banking tools.
• To make recommendation to SCB about potential improvement in online banking tools
after considering the online banking needs.
Research Questions • What are the specific customer needs or expectations regarding online banking services
offered by SCB?
• Are online banking tools currently used by SCB adequate enough to satisfy its customers
need?
• What is the potential demand of online banking tools currently used by SCB? Should
SCB invest further in its online banking tools?
• What are the competitive and Customer enhancements associated with online banking
tools of SCB?
• What are the primary benefits of online banking tools to the customers of SCB?
Hypothesis H0: Customer’s level of satisfaction in terms of online banking services offered by SCB is
positively related to service attributes.
Ha: Customer’s level of satisfaction in terms of online banking services offered by SCB is not
positively related to online service attributes.
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Chapter Two: Literature Review
All over the 20th Century, there is much remarkable advancement in terms of
technological updates. However, among the all, internet is the one of major technological
advancement occurred in the second last decade of 20th Century. Specifically, online tools have
impacted service, trading and banking activities and they all are conducted through internet
technology (Yap, Wong, Loh&Bak, p. 8-14, 2010). Different phases of business starting through
purchasing raw materials to management of supply chain including payments, sales and all
financing activities have been evolved due to adoption of online tools in business activity.
Furthermore recent trend of having online trading and e-commerce division along with
physical existence caused by increase in urgency of processing fast transactions, payments,
transfers, deposits, etc. (Sharma, p. 29-36, 2011), along with increase in growth of internet users
and considering the importance of banking role in all trading and transition activities, it is
justified to express that online banking tools have became promising field to facilitate the
business of 21st Century (Riquelme, Mekkaoui& Rios, pp. 1-6, 2009).
Demand of SCB’s Online Banking Tools In current dynamic corporate environment, online banking tools are most commonly used
by SCB as primary resource to satisfy its customer. With the help of online banking tools, all
communication can be processed immediately along with length and distance of communication
decreases the cost (Phan& Vogel, pp.58 – 72, 2010). There is a tremendous growth of online
baking tools for SCB in future because of growth of internet population all over the world.
Specifically Asia is the most dominant region where online banking customers are consistently
increasing (ECL, pp. 26-31, 2007).
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Future Demand of Online Banking Tools Online transactions and online banking will further increase in future years because
online banking tools used by SCB are the strong base for e-commerce. This means for trade that
are actually taken place over internet using online technology, where buyer visits the seller’s
website and processes its transactions there (Ngaia, Xiub&Chaua, pp. 56-62, 2009). Such way of
doing business is consistently increasing and will increase in future. Considering the fact that
these methodology of business can only be adopted by using online banking tools offered by
SCB, the demand of such tools will also increase in future. Further to this, online banking of
SCB not only satisfy the needs of large corporate users, but it also serves further type of
businesses either service, small, large, B2C, B2B and production (Zhengwei, pp. 1601-1608,
2012).
Comparative to current demand of online banking tools, there is a slow pace of
introducing new online banking tools or using existing online banking tools by SCB because of
lacking in using a reliable communication and networking infrastructure along with inadequate
control and planning techniques (Guttmann, pp. 14-19, 2002). However, SCB is (IPM) adopting
interpersonal main), EFTOPS (Electronic funds transfer at point of sale) and another supporting
technological tools to strengthen the level of confidence and reliance of its customers over online
banking channels and tools offered by SCB (Baskar, p. 45 – 51, 2010).
After implementation of such tools by SCB and other industries it will then increase the
use of online banking tools specifically after wireless systems and technology will become
uniform all over the industry and all over the world. Demand of online banking tools offered by
SCB will further grow and when the transaction all over the world could be carried out through
online banking channel, exchange rate problem that business faces will be resolved to significant
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extent (Yu-Qian& Chen, p. 482-498, 2012). Because all transactions would be carried out in real
time so they will be having sufficient applicable information about the exchange rates.
Customer Relationship Management and Online Banking Tools The first response of SCB’s customer towards after offering online banking tools was like
“show me my money.” It was the instinctive reaction of SCB’s customers when they realized
that their personal finances can be represented on any anonymous computer (Lee, pp. 27-35,
2007). It was the significant transformation of banking from high streets to cyberspace. When the
online banking tools allowed the customers of SCB to access their account at anywhere, at any
time either day or night despite of visiting their local branch or branch where they have opened
account (Yu-Qian& Chen, p. 482-498, 2012).
Further to this, online banking tools also helped SCB to keep record and track of
customer’s valuable information. Specifically, online banking tools enable SCB to individualize
the offer and customer services (Riquelme, Mekkaoui& Rios, pp. 1-6, 2009). Information
gathering about its customers and their preferences enabled SCB to personalize its products in
accordance with every expectation of its customers.
SCB’s online Banking Tools Between the accounts money transfer, paying utility bills and purchasing mobile credits
were the straight forward online banking tools initially offered by SCB. Round the clock,
accessing, controlling and managing account or money became easier for customers (Riquelme,
Mekkaoui& Rios, pp. 1-6, 2009). Further customer appreciated the online banking tools when
their cost of operating their accounts reduced, because customer of SCB can easily avoid
unnecessary several bank charges by using online banking tools of SCB.
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Advantages First and foremost advantage for SCB of using online banking tools is the low cost of
operating and selling its products and services to its customers (Lachowski, pp. 125-132, n.a).
Traditionally, serving cost of customers was very high, because SCB have to bear security,
supporting staff salaries, technical equipment, building maintenance and other types of fixed
costs. SCB has to invest substantial amount of money to bear its total fixed costs which
materially reduces the financial profits of bank. Or increasing the product and service prices
were the only option available to Standard Chartered in order to improve its financial profits
(Fjermestad& Romano, pp. 11-16, 2006)
Internet Banking Tools and Customer’s Satisfaction
Possibility of availing banking activities online with the help of online banking tools has
significantly improved the customer’s satisfaction level. One of the main satisfying factors is the
availability of banking activities 24/7, because official banking hours of Standard Chartered
collides with working hours of many customers (Zhengwei, pp. 1601-1608, 2012). Thus they
were unable to use banking activities, beside this; online banking tools of SCB resolved their
primary problem efficiently and effectively. Online banking tools of SCB provides quick and
efficient banking services as comparative to traditional banking tools.
Additionally, to facilitate its customers and capture more market, SCB has to establish its
branches in small towns where there were low potential of customers (Gardner, pp. 15-21, 2011).
However, after the introduction of online banking tools, Standard Chartered became in position
to facilitate those customers living in small towns where establishment of bank branches were
not financially sound (Yu-Qian& Chen, p. 482-498, 2012). Further to this, online banking tools
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does not brought expansion opportunity to local market level, but it also expended opportunity at
global market level
Implementation of information technology and advance communication tools changed
the way of doing business and increased the consumer needs, expectations, and demand. The use
of information technology and communication has created many new products, services, and
opportunities (Phan& Vogel, pp.58 – 72, 2010). Further, it created many new business oriented
ways and helping organizational staff in managing organizational core operations like planning,
controlling and co-ordination.
In order to support or facilitate the newly established ways of e-commerce, banks meets
customer’s new and changing expectations along with their new demand. Banking industry has
also introduced information and communication technology in order to make banking channel be
more competitive, reduce transaction cost, improve quality of services, fast response, creating
opportunities, facilitation of consumers and improve communication system between consumers
and bank management (Pikkarainen, Karjaluoto&Pahnila, pp.158 – 172, 2006).
SCB has competitive advantage in providing online banking services to its customers.
Further to SCB, other banks are also consistently making considerable investment in order to
utilize online banking tools to increase customer’s satisfaction. In 2008, by using information
technology some banks including SCB promote their banking servicing application software
(Ngaia, Xiub&Chaua, pp. 56-62, 2009). In order to increasing the role of information technology
in banking service, SCB introduce online banking and allowed consumers to team up with bank.
SCB is providing wide range of online banking products and services to its consumer.
SCB facilitates its consumers through online banking tools which allows them to receivemonthly
bank statements through e-mail, checked account status by online checking, using of online cash
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system, online funds transfer locally or internationally etc. (Mavri&Ioannou, pp. 552–560,
2006). All these SCB online services are creating competitive pressure to SCB competitors.
Here, one of the biggest think that, it is true in financial environment consumers has full freedom
to choose their satisfaction in their financial need. In considering these factors SCB is directing
their planning to increase consumer satisfaction and consumers loyalty by improving quality of
service (Mavri&Ioannou, pp. 552–560, 2006).
Quality of service is one the main issue for businesses and banking sector because,
through providing of good service quality banks are able to get consumers satisfaction. Because
consumer satisfaction is determine success or failure of business. SCB consider their consumers
first, in order to get consumers satisfaction SCB providing quality of online banking services to
its consumers and getting satisfaction from consumers because SCB known that consumers
satisfaction is require to becoming aggressive in working place (Pikkarainen,
Karjaluoto&Pahnila, pp.158 – 172, 2006).
In order to be competitive in working and consumers satisfaction SCB have adopted
online banking for its consumers. For the betterment of consumers satisfaction and service
quality SCB has offered online banking for communication with consumers concerning bank
statements. SCB has also been using online banking tools to give permit to its consumers to enter
their bank account anytime, anywhere and done local and international banking transactions
(Mavri&Ioannou, pp. 552–560, 2006). SCB is focusing many factors and also providing many
online banking services to maintaining consumer satisfaction. These services include sending
monthly bank statement through internet, allow checking cash in account through online cash
system and easily transfer of funds to local or international accounts through online transaction
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etc. All these online banking services provided by SCB is essential for banking success and
economic retune than competitors of SCB (Mannan&Oorschot, pp. 129-136, 2008).
Cost Perspectives of Online Banking Online banking service is becoming most important after the introduction of internet with
human. Another important perspective of online banking service is cost saving of banking
transactions and other banking activities (Kiang, Raghu, Shang &Huei-Min, pp 383-393, 2000).
Offering quality service to consumers and getting satisfaction form it at low cost, is the
prospective of aggressive benefit on online banking services.
SCB is considering the perspective of online banking services and has effectively reduced
in service, commission and organizational costs. With the help of online banking services SCB is
saving its cost and offering its consumer to use services at lowest cost and also offer highest
interest return to interest bearing consumers than other banks.
Customer’s Perception on usage of Online Banking Tools The amazing kind of modernization in technology and forceful combination of banking
with information technology made a standard shift in the banking sector. Technology creates its
world itself in the mind of users. Early nineties (1990) is considered as a time of involvement of
internet in banking sector (Lachowski, pp. 125-132, n.a). This start of internet banking is
established a unique system for banking sector. Internet banking is a type of system that permit
to financial consumers, individual or different businesses, to enter in account and get information
about funds, managing of business and gathering information about financial product or services
from internet.
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For the purpose of providing legal identification form online transaction, government of
United Kingdom is introduced Information Technology Act. After introducing the act of
information technology many banks of United Kingdom including SCB attempt internet banking
system to make available online banking solution (Lee, pp. 27-35, 2007). In recent scenario UK
consumers are going towards online banking service.
It is necessary to understand how consumers are appraised in online banking and creating
loyalty. Quality of service is main factor of determining the failure or success of online banking.
Consumer perception and their preferences of services quality have a considerable force on
banks success (Lachowski, pp. 125-132, n.a). Study about online banking helps in understanding
consumer perception against quality of service, consumer’s satisfaction, trust and loyalty and
also help in understanding about future of consumers behavior to evaluation of online banking.
In order tounderstand consumer’s attitude against recent banking service is able to
influence consumer decision to use online banking service or not. SCB believe consumers get
more and more educated, is able to getting insight in modern online banking (Lee, pp. 27-35,
2007). Now online banking is becoming leading concerning area for all upcoming banks in
United Kingdom.
Some studies indicate that the administration of bank is better understands consumers
perception about product and service offered by bank. Consumer perception is always influences
by consumer values. Consumers are considering valuable for every industry or businesses
because if consumers does not show their interest in company’s product or in servicing activities,
so all effort of organization consider meaningless (Mannan&Oorschot, pp. 129-136, 2008). Like
all industries or businesses, banking sector also require consumers acceptances or interest in their
activities. All banking sector require to fulfilling the consumers need and getting closer to firm
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because consumers have many alternative choices to get satisfaction. According to SCB,
consumers purchases based on values, SCB observed that consumers think neutrally and
positively about the result of product and situation during the use of product (Mavri&Ioannou,
pp. 552–560, 2006).
For the changing of consumer perception in favor of online banking service SCB hired
higher educated employees because employees were consider bank instrument and them services
create links between bank and consumer (Ngaia, Xiub&Chaua, pp. 56-62, 2009). Through
communicating with consumers and solving their problems, employees have ability to change
consumer trend and perception about online banking services.
SCB knows all influencing factors of consumer, consumers need quality of service, low
fees, high rate of return, and significant charges. For the fulfillment of consumers satisfaction
SCB providing excellent office services to its consumers, deposit based services, services to
consider consumers values, and also providing modern product and services to assure the
consumer needs, that is essential for consumers to pick online banking services offered by SCB
(Pikkarainen, Karjaluoto&Pahnila, pp.158 – 172, 2006).
All these promotional effect of SCB including providing significant information to
consumers by online banking in main areas, SCB is becoming able to change consumer
perception, level of satisfaction and level of loyalty.
Determinants of Customer’s Satisfaction with Online Banking Information about those factors is considerably important for financial sector to help in
getting consumer’s satisfaction, consumer’s loyalty and engaging to reused bank or organization
service (Lachowski, pp. 125-132, n.a). However, consumer satisfaction is closely related with
financial sector survival. Study conducted by Ian (2009) shows positive relationship between
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consumer’s satisfaction and consumer’s loyalty and online banking tools by which bank and
financial sector is getting income (Ian, pp. 61-69, 2009). Consumers need to get satisfaction at
lower cost offer by banks and financial sector.Financial sector knows the cost of attracting new
consumers higher than keeping existing consumer’s satisfaction and loyalty for higher earnings.
Financial banking sector focusing on consumer’s satisfaction, to giving satisfaction and loyalty
to make assure consumers exist with banks or financial sector (Ho & Lin, pp.5 – 24, 2010). All
these professional effort done by financial sector only for avoidance to consumer dissatisfaction.
Consumers require satisfaction and loyalty with the quality of service provider in one way or
another. However, if banks provide uninterested quality services product or services to it
consumers, so consumers have many ways to choose alternative services in option to switch off
from recent organization (Fjermestad& Romano, pp. 11-16, 2006).
Determinants of Consumers Behavior According to some studies there has been some misunderstanding over relationship
between quality of service and consumer satisfaction. Studies identify that satisfaction and
services quality determine original perception and therefore are the same (Guttmann, pp. 14-19,
2002). However, some studies identify that satisfaction with online transaction lead to overall
perception about firm’s perceived quality. As a common psychological perception that
satisfaction is initial step of consumer’s experience about quality of service (Gardner, pp. 15-21,
2011). So it is expected that high level of quality create higher level of consumer’s satisfaction.
Measurement of Service Quality In this regard we have some dimensions to measure service quality.
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Perceived Soft Quality of Service Perceived soft quality of service for financial sector indicate punctuality and power to
make agreements, contract and finalized budgets. Perceived soft quality of services also indicate
to done all work with speed and complete as early as possible (Greenbaum, pp. 103–104, 2012).
Perceived soft quality of service includes ability to understanding of consumers needs and
creates relationship between financial sector, cooperate and consumers with confidentiality.
Measurement of Client Factors Client factors identify the perceived advantage in financial institution by using time,
skills and finance in good way throughout the whole process from planning and implementation
steps.According to studies about United Kingdom consumer’s satisfaction was exists throughout
three measurement.
i. Overall Consumers level of satisfaction
ii. The level of which performance level up from expectation.
iii. Rating of performance related to provider of good services.
That is three measurements in which perceived value was operational and checked
quality and service relative to prices and prices related with quality of services (Ho & Lin, pp.5 –
24, 2010).
After considering those aspects, understanding soft process of service quality is less
important in service quality perception. This identify that SCB should need to focus on the hard
service quality area in order to influence consumers satisfaction (Ian, pp. 61-69, 2009). So it is
possible that, by the use of both hard and soft service quality SCB will be able to becoming
under in position on influences consumers behavior about quality of service of online banking
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service. Consumer satisfaction about the quality of service gives consumer loyalty and these
loyalty influence consumers to exits with SCB online service and continuously use those services
offered and provided by SCB.
Customer’s Satisfaction towards Online Banking Services After the valuable use of information technology all industry is becoming competitive,
not only banks but also other financial sectors are competing with each other (Kolodinsky,
Hogarth &Hilgert, pp.238 – 259, 2004). Mostly banks scarified their qualities of service in
competitive environment and focusing only one strategy to implement all possible factors to
remain competitive in banking industry.
Consumers Satisfaction It is require for organizations to understand consumers behavior because consumers
behavior identify consumers level of satisfaction and identify that consumers leave or stay with
an organization (Kolodinsky, Hogarth &Hilgert, pp.238 – 259, 2004). Organization is required to
understand how to maintain level of consumer satisfaction. Satisfied consumers do not looked
others because they that they never receive that services with satisfaction from to another place.
But unsatisfied consumers looked other organization to get better satisfaction. Different studies
indicate that approximately 40% of consumers leave their banks because they considered is to be
poor quality of services they have (Fjermestad& Romano, pp. 11-16, 2006). The only way to
keep consumers in hand, it is necessary for organization to provide better quality of services to
its consumer by which they get satisfaction.
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Corporate Image In recent days consumers have many options to fulfill their financial needs. Information
technology and globalization and high competition changed consumes expectation dramatically.
For keeping consumers in hand, one of the new factors used by organization and banking sector
is corporate image. Due to the improvement of corporate image many firms is using branding
techniques to being separate themselves (Guttmann, pp. 14-19, 2002).But here is a critical issue
for banking sector that all banks are offering same type of product to consumers. By using
branding, banks need to build and maintain their image through identifying the differences
between in all products which is also offered by its competitors (Fjermestad& Romano, pp. 11-
16, 2006).
Consumer Retention Consumer retention is important for organization to increase profitability by reducing of
cost for creating new consumers. A basic role of retention strategy consider as “zero cost of
getting profitable consumer” (ECL, pp. 26-31, 2007). Satisfaction with services and products
offer to it consumers by bank is important for generating consumers loyalty and that is absent in
retention situation. Here is different between loyalty and retention. Loyalty identifies consumer
repurchase behavior but situation is totally changed in consumer retention.
Switching Barriers Switching has been considered as a marketing strategy to make possible getting customer
satisfaction in low cost by switching to another organization. Use of switching barriers includes
different types of if consumer is thinks to leave (Duffee& Zhou, pp. 25-54, 2001). But negative
signs for organization that if they fail to satisfy consumers, so consumer will switch to other
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organization. In the way to avoid switching barriers firms need to fulfill consumer needs with
quality of services.
According to United Kingdom Commission study on people perceptions about online
banking service, study indicate consumer lack of trust on online banking and these lack of trust is
continuously discouraging consumer’s interest on e-banking (Claessens, Dem, De Cock, et. al.,
pp. 253-265, 2002). Understanding the difference between online banking and traditional
banking by SCB; SCB consider online banking system as a substitute of traditional banking
system, evidence of these consideration provide by SCB through offering modernized financial
services, more and more consumers adopting SCB modernized online banking services than
traditional banking system because technology is influenced to uses itself (Alsajjan& Dennis, p.
33-39, 2006).
Information technology is introducing new ways of businesses and also playing
significant role in increasing the level of banking sector. Initially SCB encourage their core
capabilities, products, services and advise to its consumers. After these SCB entered in online
banking and offer its online services and products (Fjermestad& Romano, pp. 11-16, 2006).
Future of banking sector is totally based on branchless system where consumers are able to enter
in banking system through remote. SCB believed that perception of consumers easy to change by
giving awareness about online banking. SCB needs to define online banking advantages to its
consumers like less charges, more profitable, friendly usage and secure system etc.
SCB thinks about consumers that they have two types of consumers one those consumers
who knows the internet use and able to enter in their online account easily, near SCB those
consumers who use internet easily to convinces and motivate about use of online banking and
also easy to change their perception and facilitate with moderated services (Bruce Ho & Dash
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Wu, p. 1835-1842, 2009). Second those consumers who does not use internet that consumers
becoming issue to SCB. It is a thing that SCB is concerning and thinking about the requirement
of awareness to those consumers to use internet and get benefit of online banking. SCB is
performing their best to enter those consumers in online banking toward traditionally or manual
banking (Baskar, p. 45 – 51, 2010).
Online banking service benefits like affordable charges, profitability, friendly usage and
secure system facilitates making payment on internet by using online transaction, transfer of
funds locally or international, applying of loans, making payments of loans, facilitate to perform
home business by using mobile or internet etc, and in more services like these SCB facilitates its
consumers effectively and efficiently (Greenbaum, pp. 103–104, 2012). These services offered
by SCB able to influences the individual perception about online banking use. Environment of
United Kingdom decision making of individual behavior surrounds in public (Guttmann, pp. 14-
19, 2002). So when people will see their friends, relatives and other people to performing online
transaction through online banking they may automatically influenced to use and get satisfaction
from online banking services.
Service Quality, Customer Trust, Customer Satisfaction and Loyalty in Online Banking
The important thing of accomplishment, survival and creating solid relationship with
consumers, it is necessary for financial institution to make sure consumers satisfaction, trust and
loyalty by focusing on service quality of online banking.
Different levels of studies show that trust of consumers totally based on quality of service
and quality of service increase level of consumers satisfaction and consumers satisfaction
increase loyalty of consumer (Aldás-Manzano, Lassala-Navarré, Ruiz-Mafé, et. al., pp.53 – 75,
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2009). These perceptive show that high level of consumers satisfaction cast high level of
consumer loyalty and loyalty influence to consumers to use product or services again and again
and show positive reaction in words for organization. On the bases of above lines we consider
that satisfaction and loyalty have strong positive relationship and also understand that
satisfaction is a leading determinant of consumer loyalty (Claessens, Dem, De Cock, et. al., pp.
253-265, 2002).
Now in recent days, online banking service is becoming important in international
business because of technology centric and based on information. In online operations banks and
financial sector is developing and providing best service quality to its consumers and improve
their service quality consistently (Acharya, Kagan & Lingam, pp.418 – 439, 2008). By giving
best service quality financial sectors have ability to affect consumer behaviors to online banking.
It is suggested in difference studies by delivering quality of service is influence consumer to use
services and get satisfaction with trust and would result in increasing consumer loyalty.
The relationship between consumer and service provider is the key to flourishing
business operation to maintaining business spirit and also helps in giving loyalty to consumer.
The result of relationship between consumer and service provider show that loyalty is influenced
by consumer satisfaction and consumers trust on online banking (Acharya, Kagan & Lingam,
pp.418 – 439, 2008). Studies suggest that online banking service providers improve their online
service quality to creating better relationship with their consumers to getting consumer
satisfaction and trust on online banking. And studies also suggest that poor online service quality
leads to reduce consumer satisfaction. For satisfaction of consumers financial institution needs to
provide better service with new trend of online banking and establish an environment where
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consumers will feel assurance, safety and familiarity (Bruce Ho & Dash Wu, p. 1835-1842,
2009). Banks needs to build beneficial relationship to establishing consumers trust.
On behalf of these phenomena SCB consider their existing consumers first though online
banking service (Chong, Ooi, Lin & Tan, p. 12-23. SCB gives best fulfillment of consumers need
because satisfied consumers more possible to reused SCB services and its opinion about SCB
will gather more consumers to SCB (Claessens, Dem, De Cock, et. al., pp. 253-265, 2002). By
providing good online banking services SCB performing their best to increase consumer level of
faith, assurance and feelings and convincing to use online banking services because SCB knows
bank image important for consumers to pick online banking services positively.
Service Quality Dimension of Customers Satisfaction in Online Banking Nowadays, onlinebanking services use is becoming important and use of internet in
businesses is becoming common part of our environment, importantly in communicating and
massaging technology (Bruce Ho & Dash Wu, p. 1835-1842, 2009). Online banking has
introduce many ways of banking for example, Television based banking, Personal Computer
banking, Telephone based banking, Internet banking etc all these banking activities require
internet to deliver online banking (Ho & Lin, pp.5 – 24, 2010). Experience of online banking
offered by SCB is continuously establishing by consumers satisfaction and service quality.
Consumer satisfaction is one of the essential for success of online banking. Consumers believe
that they are always right and consider them as a king. High level of consumer satisfaction
directly linked with high level of service quality (Greenbaum, pp. 103–104, 2012). In other
means, the return of high level of services quality influence consumers to use online banking
services.
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The usage of online banking offered by SCB to many financial organizations getting is
full of benefits. The main advantage of online banking is cost saving, secure privacy, getting
work done effectively and efficiently in shortest processing period. Through improving of
flexibility of business transaction and providing high speed of transaction SCB is getting
consumer satisfaction (Bruce Ho & Dash Wu, p. 1835-1842, 2009). All these are factors of
success for online banking to increasing consumer satisfaction. By the use of Online banking
services financial organizations and businesses unable to providing excellent services to its
consumers. So it is becoming important for organizations and businesses to make possible the
use of online banking system (Mannan&Oorschot, pp. 129-136, 2008). Online banking services
allow consumers to use their account from any place and any time in minimum cost. In recent
development by using smart phone online banking services growing extremely and many
consumers of traditional banking system is transferring to online banking system.
Understanding the relationship between consumers satisfaction and online banking
service quality. The studies indicate some dimensions of service quality as follows.
- Tangibles
- Reliability
- Responsiveness
- Empathy
- Assurance
Description of all dimensions identify in early step as below.
Tangibles Tangibles are means to providing physical service of bank premises; latest and up to date
setup of bank and manifestation of the bank’s human resources (Phan& Vogel, pp.58 – 72,
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2010). Generally consumers are always looked bank’s tangible signals about quality of services
which can be provided by SCB. Because of these tangibles consider most important factor on
behalf of consumer satisfaction (Phan& Vogel, pp.58 – 72, 2010). But here one of the important
factors is need to understand that, tangibles are not important to get consumers satisfaction in
online banking service.
Reliability It is essential for every business or organization to provide better technology and function
to its consumers with the accuracy and promises about services to get reliability of consumers
(Vatanasombut, Igbaria, Stylianou, et. al., 419-428, 2008). Reliability identify consumers feel
about services that they have paid for. Reliability considers the delivery of bank services toward
promises and expectation of consumers and accuracy. Studies about reliability shows, those
consumers are using online banking service consider essential determinant for reliability depth.
Further some studies concluded that consumers are more possible to use online banking services,
if they feel that their online transaction is more and more secure (Lee, pp. 27-35, 2007). Means
that consumer satisfaction is based on consumer reliability on online banking service is delivered
by SCB, if consumers relay on service quality of online banking they will automatically
influence to use online banking services.
Responsiveness Responsiveness shows quick response, service and power to resolve any issue or problem
if any issue or problem is found. Responsiveness also referred the ability of bank to provide their
punctual services to fulfill the consumer’s needs and get their satisfaction (Ngaia, Xiub&Chaua,
pp. 56-62, 2009). The users of online banking services feel that the online banking service is able
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to fulfill their needs faster than traditional banking system. Identification of important factors of
online banking services, fast transactions and easy access on accounts is considering main
elements for consumer satisfaction (Greenbaum, pp. 103–104, 2012). So due to faster service
and early response, responsiveness is considering important element of online banking service
for consumer satisfaction.
Empathy Empathy identifies the importance of concerning about individual behavior. Give
attention to individual consumer is important to getting consumers satisfaction. Communication
between bank staff and consumer are essential for identifying empathy depth. If consumers feel
that bank is giving significant importance to him individually (Mannan&Oorschot, pp. 129-136,
2008), so level of consumer satisfaction will automatically improve. In the lights of above
statement SCB is providing call center service to its consumers under online banking service,
through call center bank staff interacted with consumers and resolved consumers problems and
increase their level of satisfaction (Ho & Lin, pp.5 – 24, 2010). All these services of giving
importance to consumers, it is implementation on empathy by SCB.
Assurance Assurance is relate with believe of consumers on quality of service, degree of trust,
confidence, courtesy, knowledge and feeling of consumers about services (Bruce Ho & Dash
Wu, p. 1835-1842, 2009). Consumer assurance is one of the important factors of online banking
service. Consumers need assurance about online banking, if banks provide assurance about
quality of services, benefits, confidence, privacy, security, speed of working etc, all these factors
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of online service is able to influence or assure consumers positivity to use or utilize online
banking services.
This entire dimension like Tangibles, Reliability, Responsiveness, Empathy and
Assurance is playing important role to influencing consumer behavior to used online banking
services and in receiving of better satisfaction against traditionally banking system (Riquelme,
Mekkaoui& Rios, pp. 1-6, 2009). Though tangibles SCB is providing physical services by
upgraded bank setup to influence consumer behavior. By use of reliability SCB providing better
technological, functional services and accuracy to consumers for getting reliability of consumers
on online banking service. Responsiveness consider as quick response by organization
(Zhengwei, pp. 1601-1608, 2012). SCB always consider their consumers first in all places and
giving quick response to its consumer by using online banking, if consumers need SCB help.
Empathy is indicating to give importance to consumers individually.
In response of implementation on empathy, SCB is using call center services and also
hire educated person as employees and train him to interact with consumers in good behavior
and resolved consumers problems in friendly mode (Sharma, p. 29-36, 2011). Assurance
indicated consumers trust on services. SCB providing good services of online banking with fast
process, quality of services, accuracy, save and secure, privacy and many others benefit to
consumers for getting its assurance and satisfaction. Though statistical analysis we observed that
the relationship between online banking dimension and consumers satisfaction (Yu-Qian& Chen,
p. 482-498, 2012). By studies it is indicate that the consumer satisfaction directly influenced with
online banking dimensions and online banking dimensions able to change consumer behavior or
perception about the use of online banking services.
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Chapter Three: Research Methodology
The following chapter includes information about the research design. This chapter
highlights the means and ways utilized to conduct the underlying research. Specifically, this
chapter discuss about research approach, research methods, sampling technique and research
ethics. It will further discuss about qualitative method and quantitative methods along with
secondary and primary data, its reliability and validity.
Research Approach There are two most commonly utilized research approaches, which are inductive
approach and another is called deductive approach. These two are the primary stream of research
approaches. For the underlying research, deductive approach is utilized. This is also called top
bottom approach. Before conducting the research or data collection, broader theoretical concept
have been established and on the basis of those theoretical background, further theories are
narrowed down to reach in the depth of specific matters. This system is more systematic as
comparative to other research approaches.
However, on the other hand, inductive approach is just opposite of deductive research
approach. In deductive research approach, the direction of research is from top to bottom, but in
inductive research approach, the direction of research is from bottom to top. In this approach,
first data is collected. And after drawing desired sample size, it is then linked with the theoretical
concept. Basically, in this research approach theoretical background is tested on the basis of
sample size drawn from population of data collection.
Deductive research approach is utilized for this research as it is based upon identification
of underlying patterns and themes before data collection. In the second chapter of this research,
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theoretical literature regarding online banking, internet banking, customer satisfaction and
different relevant aspects of internet banking is reviewed. After then overall theoretical
framework is applied on online banking tools offered by Standard Chartered Bank.
Research Strategy and Design Further to research approach, explanatory, exploratory and descriptive are the three
specific research strategies to design the overall research strategy. Explanatory research strategy
is based on investigation of behaviour of variable associated with particular phenomena in
relation with the behaivour of other variables.
Descriptive research strategy is utilized for research issues which are previously
researched. It is just the presentation of information collected from different sources in
accordance with new point of views (Servon&Kaestner, p. 23-29, 2008). Exploratory research
is done on those variables that have never researched. Primary aim of exploratory research is to
find out findings for the first time. This research is not based on any theoretical concept. Instead
it creates theoretical backgrounds for other subsequent descriptive researches.
This research is based upon characteristics of explanatory research because it includes
obtaining information about the relationship between results and its causes among different
variables. And accordingly, in order to develop theoretical background, qualitative research
method is utilised. And for finding the behaviour of different variables, quantitative research
method is utilised.
Qualitative Method Qualitative research method is based upon theoretical data, it plays discussion role in
over all research. Qualitative method is used to discuss or express properties of variables that
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could not be expressed in numeric form (Servon&Kaestner, p. 23-29, 2008). Along with
different limitations, there are several advantages of using qualitative method. Firstly, it is based
on textual and narrative form which is more user friendly as comparative to quantitative research
method. Qualitative research method expresses the end result and outcome. It is considered as
direct channel of communication between researcher and the audience of research
(Sarel&Marmorstein, pp. 231-243, 2004). For this research, interviews, observations and focus
group discussion are the primarily used techniques to gather qualitative research. Further to these
qualitative data collection techniques, books and research articles were also played significant
role in overall establishment of literature review. On the other side, reliability of information is
the primary limitation of conducting research on the basis of qualitative data. Further to this, cost
and required time to conduct qualitative research are additional limitation to collect qualitative
data for the research.
Quantitative Method Quantitative research method is based on analysis of numeric data. Majorly, quantitative
data is collected through questionnaire and the same method is utilized to collect the quantitative
data for this research (Riquelme, Mekkaoui& Rios, pp. 1-6, 2009). Consent of respondents is
specifically considered during this activity and all respondents were provided by friendly
environment in order to gather unbiased and independent information. However, after gathering
response from all respondents sample responses are selected. It is assumed that the selected
sample perfectly represents the whole population and the overall population is normally
distributed.
Considering the advantages of both research methods, mix research method is used for
this research, that is quantitative and qualitative research method. Considering the fact that
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everything has its own advantages and disadvantages or limitations, combination or hybrid
approach is used to limit the inherent disadvantages of both research methods.
Primary Data Collection Investigation type of this research is twofold; it includes investigation of explanatory and
hypothesis testing study based quantitative as well as qualitative information (Zhengwei, pp.
1601-1608, 2012). More specifically, quantitative analysis would be based upon primary
research which will include collection of with the help of questionnaire.Further to this,
qualitative investigation would be based upon both primary and secondary information collected.
Questionnaire
Questionnaire comprised of 15 questions have sent to number of respondents who are
currently either customers of SCB and customer of any other bank, to collect the comparative
data.
Focus Group Interview
Focus group interview is conducted to collect wide range information regarding the
research questions through primary source. Participants in focus group interview were also
comprised of customers of SCB and other banks. However, it is specifically ensured that
respondents utilized in questionnaire activity do not participate in focus group interview, in order
to access wide range of information.
Secondary Data Collection
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Secondary data is called research on previously available data it could be both
quantitative and qualitative. For this research, journal articles, websites and books are manly
used to collect secondary data. However, the selection criteria are effectively implemented to
avoid selection of poor quality information source. Validity, availability and reliability are the
three main filter points to select secondary source of information. Accordingly, journals are the
most easily filtered secondary data sources as they usually represent current and relevant
information. On the contrary, book took long time to compile, edit, and printing, binding and
then publishing. Normally it takes at least a year to make it available for readers. Considering
this fact, current information could not be readily accessed through books. That is the primary
reason of using books in limited capacity to access secondary source of information.
Collection of unique data or collection of data for some specific purpose that is never
used before is called primary data (Yap, Wong, Loh, et. al. p. 8-14, 2010). As it includes
collection of unique data it requires cost and time to conduct such activity. For this research,
observation and questionnaire are the primary tools that are used to collect primary data.Further
to primary data collection, this data type also includes two main qualitative and quantitative data.
For this research, both qualitative and quantitative primary data is utilized. Main advantage of
using primary data is the control factor.
The whole research or data collection plan can be customized in accordance with the
research aim, objectives and purposes. By efficiently selecting the respondents, the reliability,
authenticity, validity and accuracy of data can be easily improved.
Further to this, customization of data property is easily modified in over developing the
framework for research. However, on the other side, data collection through primary sources
consumes time and it requires several re-testing of data in order to establish relationship between
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or among variables.Another main limitation of primary data collection is the time availability of
respondents. Often, respondents do not invest their time in our research without having any
benefit from our research. More specifically, no any type of benefit is provided to the
respondents of this research and accordingly response rate was less than 40%. However, it
constitutes that only serious respondents have participated in the primary data collection. So the
reliability, authenticity, validity and accuracy of data are inherently high.
There are two phases of research strategy. First phase of data collection includes data
collection from primary sources of information for both quantitative and qualitative
investigation. Moreover, quantitative data collection will be collected through conducting
questionnaire activity over selected sample class of people. However, data collection from
secondary sources for qualitative investigation will be from focus group interviews with SCB’s
employees and customers along with employees and customers of other banks in order to make
rational comparison among their satisfaction level.
Second phase of research strategy includes research from secondary sources for
qualitative investigation. It mainly includes data collection from previously conducted research
over online banking tools for customer relationship management in terms of customer
satisfaction. Among data collection from secondary sources, website of SCB will be widely used
to specifically gather data about specific online banking tools currently SCB to facilitate online
banking requirements of its customers. Further to this, peer reviewed journal articles and
different books are utilized to gather data from secondary sources.
Sampling Selection Overall population is divided in to two categories, customers of SCB and customers of
other banks. So, in order to ensure the selection of sample from every type of category, stratified
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sampling method is used for data sampling (Phan& Vogel, pp.58 – 72, 2010). And that is the
primary reason of using stratified random sampling considering the diversity of participants in
overall population. Overall population was65, and sample size is 50.
Data Analysis Data analysis plan is mainly divided in to threesections in accordance with the type of
investigation. Qualitative data is critically analyzed through focus group discussion in context
with other research over online banking tools for customer relationship management. However,
quantitative data is analyzed through two primary techniques; one is the percentage analysis and
another is testing of hypothesis against alternative hypothesis to meet the research objectives and
questions.
Ethical Issues Ethical issues always arise when researcher conducts data collection from primary
sources. Primary ethical issue is to protect the confidential information of participants especially
of those participants who are associated with SCB and other banks as employees. This ethical
issue is resolved by making personal information of participants confidential.
Accessibility Issues Accessibility issues is not experienced in data collection from previously conducted
researches or from secondary sources, because the selected sources are easily accessed through
online libraries or data bases like EBSCO Host, ERIC etc. and website of SCB is also easily
accessed. Further to this, there were some accessibility issues in data collection from primary
sources. As the data is collected from direct or online interaction with customers of SCB and
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other banks. Lack of time and low response rate was the primary accessibility issue for primary
data collection. However it has been easily managed by making proper coordination and
ensuring the commitment level of participants.
Research Limitations Information gathering from relevant and recent sources will be primary limitation at both
phases of research. However, such limitations are easily minimized by ensuring the reliability of
information source. Further to this, authenticity, sufficiency and adequacy of information were
another aspect of research limitation.
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Chapter Four: Results&Analysis
This research, conducted on online banking tools offered by Standard Chartered Bank
comprises of two sections. Section one represents the result of questionnaire by using percentage
analysis technique and hypothesis testing technique. Howeversection two represents focused
group discussion. The response rate of questionnaire was 80% which is far better than
expected.Overall, questionnaires were sent to 65 respondents belonging to SCB customer and
other bank’s customers. However, via random selection around 37 selected respondents were
SCB customers and 13 respondents were customers of other banks.
Users of Internet Banking
The table given below represents the user of internet banking within the selected sample.
From the data, irrespective of particular bank’s customer, it is clearly shown that most of the
people around 85% are the user of internet banking facility. However, only minimal percentage
around 14% of both categories is non users of internet banking that their respective bank offers.
It clearly illustrates that there is huge potential in offering banking tools to compete in the
industry.
SCB Customers
Other's Bank Customers
Total
Yes86%
No14%
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Yes 32 86% 11 85% 43 86% No 5 14% 2 15% 7 14% Total 37 100% 13 100% 50 100%
(Table 1)
Reason for Using Internet Banking
Graph clearly reveals the primary reason of using online banking tools in terms of
convenience, serving time, and 24 hour access by SCB and other bank’s customers. Results
represented in response of this question clearly reveal that majority of both SCB and other
bank’s customers use online banking due to 24 hour access to their account. Further to this,
convenience represents almost half percentage of primary reason. However, respondents who
were not the user of online banking of their respective banks market not applicable in the options
given.
Majority of online banking users of SCB uses online banking tools due to 24 hours access
to their account. It represents that there is a huge potential to also offer those banking services in
online banking tools that are currently not yet offered by SCB.
SCB Customer
Other's Bank Customer
Total
0 5 10 15 20 25
SCB Customer
Other's Bank Customer
Total
Not Applicable 24 Hour Access To Account To Serve Time Convenience
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Convenience 10 27% 9 69% 19 38% To Serve Time 4 11% 0 0% 4 8% 24 Hour Access To Account 18 49% 2 15% 20 40% Not Applicable 5 14% 2 15% 7 14% Total 37 100% 13 100% 50 100%
(Table 2)
Frequency of Using Online Banking Tools
The graph describes the frequency of using online banking tools offered by banks. The
response is measured on scale of daily, weekly, never, monthly and annually. It is quite clear to
note that the majority of customers of SCB and other banks are weekly users of online banking
tools. Further to this, daily users stand at second position of both categories. Moreover, it is also
justified to infer that majority user of online banking tools of SCB are satisfied with online
banking services as majority of respondents lie in frequent category. However, around 8% of
other banks’ customer uses online banking tools either monthly or annually. It illustrates SCB
customers are highly satisfied in e-commerce context.
SCB Customer Other's Bank Customer Total
Daily 14 38% 2 15% 16 32% Weekly 17 46% 2 15% 19 38% Never 5 14% 2 15% 7 14%
0%
20%
40%
60%
80%
100%
120%
-10
-5
0
5
10
15
20
25
Daily Weekly Never Monthly Annually
SCB Customer Other's Bank Customer
Total Expon. (Total)
Linear (Total)
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Monthly 1 3% 4 31% 5 10% Annually 0 0% 3 23% 3 6% Total 37 100% 13 100% 50 100%
(Table 3)
Online Banking Service Attribute
Further to analyzing the frequency of using online banking, it is important to further
analyze the particular online service attribute used by customers of SCB and other banks. It is
quite interesting to note that, material percentage of SCB and other banks’ customer uses online
banking tools for account inquiry. However, most of the SCB customers use online banking tools
to process payroll and then bill payments. It illustrates that in terms of offering of SCB are
efficiently aligned with customer’s expectation regarding their e-businesses. Payroll and bill
payments are most frequently used online banking tools for corporate purposes. However, wire
transfers are preferred for domestic use of online banks’ online banking tools. Questionnaire
response represents that most of the customers of other banks are satisfied for individual usage of
online banking tools. Further, it seems most of the other banks does not offers online order of
00.20.40.60.811.2
02468
10121416
SCB Customers Other's Bank Customers
Total 2 per. Mov. Avg. (SCB Customers)
2 per. Mov. Avg. (Total)
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cheque books but 8% of SCB customer uses this attribute which ultimately provides competitive
advantage to SCB over competitive banks.
SCB Customers
Other's Bank Customers
Total
Pay Bills 5 14% 0 0% 5 10% Make An Account Inquiry 11 30% 4 31% 15 30% Transfer Funds Between Account 2 5% 2 15% 4 8% Wire Transfer 4 11% 3 23% 7 14% Process Payroll 7 19% 2 15% 9 18% Order Chequebook 3 8% 0 0% 3 6% Not Applicable 5 14% 2 15% 7 14%
Total 37 100
% 13 100
% 50 100
% (Table 4)
Additional Attributes of Online Banking Tools
Above graph clearly illustrates usage of additional online banking tools (like open new
account, cheque book request, statement request, link account/card, change credit card pin, view
service request status, view foreign exchanges and view mail box) by customers of SCB and
customers of other banks. As far as security of online banking channel is concerned, it seems
02468
101214
SCB Customers Other's Bank Customers Total
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other banks’ customer are not much satisfied from security measures implemented by their bank
as majority of customer around 50% uses change credit card pin online. Comparatively, the same
additional attribute of SCB is also majorly used but it’s almost half as comparative to other
banks’ results. Moreover, the overall data gathered from SCB respondents is skewed among all
additional attributes online banking tools, as comparative to other banks’ where customer uses
only few additional service attributes offered by those banks.
SCB Customers
Other's Bank Customers
Total
Open A New Account 3 9% 0 0% 3 7% Chequebook Request 5 16% 0 0% 5 11% Statement Request 4 13% 1 8% 5 11% Link Account / Card Details 4 13% 2 17% 6 14% Change Credit Card Pin 7 22% 6 50% 13 30% View Service Request Status 5 16% 1 8% 6 14% View Foreign Exchanges 1 3% 1 8% 2 5% View Mailbox 3 9% 1 8% 4 9% Total 32 100% 12 100% 44 100%
(Table 5)
Customer Level of Satisfaction Following section of questionnaire is specifically designed to evaluate the level of
customer’s satisfaction in terms of online banking tools used by them in comparison with the
level of satisfaction of customers outside SCB.This section of questionnaire reveals the
customer’s level of satisfaction like excellent, good, and neutral particularly associated with
specific attributes that are bill payment, cheque book ordering system, bank transfer, stop
payment, balance inquiry and accessing bank statement.
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Bill Payment
As far as payment of bill is concerned, it seems that around equal percentage of
customers of both categories does not use bill payment or not preferred to disclose. However, it
is quite interesting to note that the pattern of customer’s level of satisfaction of SCB and other
banks’ is same. High percentage of people rated their satisfaction level as good which is further
followed by 17% response in excellent category. Thus the level of satisfaction of customer is
considerably satisfactory.
SCB Customers
Other's Bank Customers
Total
Excellent 3 17% 2 33% 5 21% Good 9 50% 2 33% 11 46% Neutral 1 6% 0 0% 1 4% Not Applicable 5 28% 2 33% 7 29% Total 18 100% 6 100% 24 100%
(Table 6)
Online Cheque Book Ordering System
SCB Customers Other's Bank Customers Total
Not Applicable 5 2 7
Nuteral 1 0 1
Good 9 2 11
Excellent 3 2 5
0
5
10
15
20
25
30
Excellent Good Nuteral Not Applicable
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As for cheque book ordering system, customers of other banks’ are excellently satisfied
from their services which is far good as comparative to only 36% satisfied customers in terms of
cheque book ordering system. SCB should improve its cheque book ordering system and
promote specifically for this attribute because 27% of its customers do not uses online cheque
book ordering system.
SCB Customers
Other's Bank Customers
Total
Excellent 4 36% 2 100% 6 46% Good 3 27% 0 0% 3 23% Neutral 1 9% 0 0% 1 8% Not Applicable 3 27% 0 0% 3 23% Total 11 100% 2 100% 13 100%
4
2
6
3
0
3
1
0
1
3
0
3
S C B C U S T O M E R S O T H E R ' S B A N K C U S T O M E R S T O T A L
Excellent Good Nuteral Not Applicable
Excellent Good Neutral Not Applicable
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(Table 7) Bank Transfer
It has already been revealed that majority of SCB’s customers do not preferably use bank
transfer system and the same is reflected in the above graph. However, it is quite interesting to
note that only 36% SCB’s customer rated this service as good and cent percentage of other
banks’ customer rated this services.
SCB Customers
Other's Bank Customers
Total
Excellent 1 10% 0 0% 1 9% Good 4 40% 1 100% 5 45% Neutral 1 10% 0 0% 1 9% Not Applicable 4 40% 0 0% 4 36% Total 10 100% 1 100% 11 100%
(Table 8)
10
1
4
1
51
0
1
4
0
4
SCB Customers Other's Bank Customers Total
Excellent Good Nuteral Not Applicable
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Stop Payment
Most of the bank offer this online banking service attribute to protect and increase the
security over transactions of their customers. This attribute allows customer to stop payment like
debit card blocking and stopping payment associated with issued signed cheque. Referring this
service attribute, the result reveals that this service is not frequently used by major portion of
customers of both categories. However, 25% of SCB customers rated these services as good but
only 20% of other banks’ customer rated this service attribute as good.
SCB Customers
Other's Bank Customers
Total
Excellent 0 0% 1 25% 1 9% Good 2 29% 1 25% 3 27% Neutral 1 14% 0 0% 1 9% Not Applicable 4 57% 2 50% 6 55% Total 7 100% 4 100% 11 100%
(Table 9)
0123456
Excellent
Good
Neutral
Not Applicable
SCB Customers Other's Bank Customers Total
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Balance Inquiry
This is very basic service attribute offered by most of the banks that uses online banking
tools to offer online banking services to their customers. Above graph clearly illustrates that
majority of customers of both categories have marked this service as neutral and further data of
SCB is skewed towards excellent and good. Thus, it is justified to interpret that all customers are
satisfied with underlying service attribute of online banking.
SCB Customers
Other's Bank Customers
Total
Excellent 1 10% 0 0% 1 9% Good 2 20% 0 0% 2 18% Neutral 4 40% 1 100% 5 45% Not Applicable 3 30% 0 0% 3 27% Total 10 100% 1 100% 11 100%
(Table 10)
0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5
SCB Customers
Other's Bank Customers
Total
Not Applicable Neutral Good Excellent
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Accessing Bank Statement
Regarding this service attribute, equal proportion of customers in both categories are
equally satisfied with particular service attribute of online banking tools used by banks.
SCB Customers
Other's Bank Customers
Total
Excellent 0 0% 1 33% 1 11% Good 2 33% 0 0% 2 22% Neutral 1 17% 1 33% 2 22% Not Applicable 3 50% 1 33% 4 44% Total 6 100% 3 100% 9 100%
(Table 11)
Additional Service Attributes of Online Banking Tools This section of questionnaire collected responses from SCB and other banks’ customer
about other service attributes irrespective of basic and traditionally used online banking tools in
terms of seeking product and rate information, download personal bank transaction, check
balance online, apply for credit cards or loans, inter account transfer, and prepaid vouchers.
0
1
2
3
4
5
6
7
8
Excellent Good Neutral Not Applicable
0
21
3
1
01
1
1
2 2
4
SCB Customers Other's Bank Customers Total
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Response from customer illustrates that only minimal number of customers who do not
uses aforesaid service attributes. However, highest proportion of SCB customer downloads
personal bank transaction activity where as only 8% of other banks’ customers uses this service
attribute. On the other hand, second highest percentage of SCB customer uses to apply for
consumer loan or credit cards and while other banks’ customer uses this service attribute almost
double times. Only 8% customers of other banks uses inter account transfer service attributes,
while almost double percentage of SCB customer uses interbank transfers.
SCB Customers
Other's Bank Customers
Total
Seeking Product And Rate Information 2 5% 2 15% 4 8% Download Personal Bank Transaction Activity 10 27% 1 8% 11 22% Check Balance Online 3 8% 2 15% 5 10% Apply For Consumer Loan Or Credit Cards Online 7 19% 5 38% 12 24% Inter Account Transfer 7 19% 1 8% 8 16% Online Bill Payments 3 8% 0 0% 3 6% Prepaid Vouchers 1 3% 0 0% 1 2% Not Applicable 4 11% 2 15% 6 12%
Total 37 100% 13 100% 50 100
% (Table 12)
02468
1012
Seeking Product
And Rate Information
Download Personal
Bank Transaction
Activity
Cheque Balance Online
Apply For Contotaler
Loan Or Credit Cards
Online
Inter Account Transfer
Online Bill Payments
Prepaid Vouchers
Not Applicable
2
10
3
7 7
31
42
12
5
10 0
24
11
5
12
8
31
6
SCB Customers Other's Bank Customers Total
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Preferences of Online Banking Tools This section of questionnaire gathers information about the preferences of using service
attributes of internet banking tools in terms of awareness about services, ease of use or user
friendliness, safety and security over transactions, and cost of using internet banking.
Awareness of the Services and its Benefits
Responses represented in above graph clearly describes that almost 80% of customers are
aware about services and benefits of online banking tools provided by their banks. However, still
there are a considerable percentage of customers who disagree means this is the potential area of
improvement where SCB has to conduct promotional activities to increase awareness about the
services and benefits that SCB offers.
SCB Customers
Other's Bank Customers
Total
Strongly Disagree 2 12% 0 0% 2 7% Disagree 1 6% 1 10% 2 7% Agree 7 41% 1 10% 8 30% Strongly Agree 7 41% 8 80% 15 56% Total 17 100% 10 100% 27 100%
1
1
2
7
1
8
7
8
15
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
SCB Customers
Other's Bank Customers
Total
Disagree Agree Strongly Agree
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(Table 13)
Ease of Use or User Friendliness
Above graph illustrates extremely poor position of other banks’ online banking system.
Result illustrates that customers of other banks’ are not satisfied from the user friendliness of
their online banking system. However, on the other side approximately 60% of SCB customers
are satisfied that online banking system of SCB is user friendly or easy to use. Whilst, 40% of
SCB customers are disagreeing about the user friendliness of online banking system. It is quite
interesting to note that improving the user friendliness of online banking system is another major
area for improvement for SCB and also for other banks. There is a high risk of losing customers
if other banks develop more users friendly online banking interface before SCB.
SCB Customers
Other's Bank Customers
Total
Strongly Disagree 0 0% 0 0% 0 0% Disagree 2 40% 0 0% 2 40% Agree 2 40% 0 0% 2 40% Strongly Agree 1 20% 0 0% 1 20% Total 5 100% 0 0% 5 100%
(Table 14)
00000111111
Strongly Disagree
Disagree Agree Strongly Agree
SCB Customers Other's Bank Customers Series6
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Safety and Security of Transacting Over the Internet
Above graph illustrates the response from customers in terms of safety and security of
transaction over internet. Regarding this, majority of SCB customers are confident or satisfied
with the security measures of SCB to facilitate online banking. However worst situation is
observed in case of other banks in which considerable 25% of customer strongly disagrees with
the safety and security measures.
SCB Customers
Other's Bank Customers
Total
Strongly Disagree 0 0% 1 25% 1 8% Disagree 1 13% 0 0% 1 8% Agree 2 25% 3 75% 5 42% Strongly Agree 5 63% 0 0% 5 42% Total 8 100% 4 100% 12 100%
(Table 15) The Cost of Using Internet Banking
0
1 11
0
1
2
3
55
0
5
0
1
2
3
4
5
6
S C B C U S T O M E R S O T H E R ' S B A N K C U S T O M E R S
T O T A L
Strongly Disagree Disagree Agree Strongly Agree
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Considering the importance of this factor, it has been analyzed in two different aspects to
find out the actual aspect in more reliable manner. There is a similar pattern of both above graph,
which illustrates that almost 100% customers of other bank agree with the low cost of online
banking services. However, around 80% which is also a material portion agrees in case of SCB
customers.
SCB Customers
Other's Bank Customers
Total
Strongly Disagree _
0 0% 0 0% Disagree 1 20% 0 0% 1 14% Agree 3 60% 1 50% 4 57% Strongly Agree 1 20% 1 50% 2 29% Total 5 100% 2 100% 7 100%
(Table 15)
Security and Privacy of Online Banking This section specifically provides the specific service attributes regarding security and
privacy over internet banking system in terms of changing password, nickname, contact details,
address information and funds transfer limit.
0123456
SCB CUSTOMERS OTHER'S BANK CUSTOMERS
TOTAL
0 0 00 0 0
5
1
6
3 3
6
Strongly Disagree Disagree Agree Strongly Agree
0 0 0
1
0
1
3
1
4
1 1
2
0
1
2
3
4
5
SCB Customers Other's Bank Customers
Total
Strongly Disagree Disagree Agree Strongly Agree
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Above graph illustrates that majority customers of SCB are satisfied due to instant
password changing service attributes to protect their security and privacy, which is further
followed by second highest percentage i.e. 21% in regards of contact details and address
information. However, in both cases changing funds transfer limit is not much preferred by
customers. Considering the importance of this service attributes, it is justified to note that
majority of customers may not aware about this service attribute in terms of security and privacy.
9
3
12
6
4
10
7
3
10
7
3
10
5
0
5
0
2
4
6
8
10
12
14
SCB Customers Other's Bank Customers Total
Password Change Change Nickname View Contact Details
Change Address Information Change Funds Transfer Limit
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Importance of Interaction in Online Banking
Primary motive behind this is to ensure the adequacy of internet banking tools offered by
SCB. Majority of customers of SCB and other banks’ prefers to have in-person interaction while
using online banking tools. This could be in consequence of low user friendliness of online
banking interface. SCB have also another potential area of improvement to gain the confidence
of customers. So that customers will be enable to use online banking independently with more
confidence and satisfaction.
SCB Customers
Other's Bank Customers
Total
Completely 14 38% 5 38% 19 38% Some What 13 35% 3 23% 16 32% Unsure 5 14% 3 23% 8 16% Not At All 5 14% 2 15% 7 14% Total 37 100% 13 100% 50 100%
(Table 15)
14
5
19
13
3
16
5
3
8
5
2
7
0
2
4
6
8
10
12
14
16
18
20
SCB Customers Other's Bank Customers Total
Completely Some What Unsure Not At All
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Customer Satisfaction Level of Online Banking
Above graph represents the satisfaction level of customers regarding online banking tools
provided by SCB and other banks. Significant number of customers is satisfied with the online
banking tools offered by their respective banks. It also represents the saturation level of SCB
customer’s satisfaction.
SCB Customers
Other's Bank Customers
Total
Very Satisfied 13 35% 6 46% 19 38% Satisfied 12 32% 5 38% 17 34% Neutral 7 19% 1 8% 8 16% Unsatisfied 4 11% 0 0% 4 8% Very Unsatisfied 1 3% 1 8% 2 4% Total 37 100% 13 100% 50 100%
(Table 16) Hypothesis Result
Response collected through questionnaire is tested for hypothesis through SPSS at alpha
value at 0.05against alternative hypothesis, which is represented below. The p-value result
reveals that the customer’s level of satisfaction in terms of online banking services offered by
SCB is positively related to service attributes defined in the above percentage analysis.
Do You Have An Internet Banking Facility With You?
1312
7
4
1
65
10
1
19
17
8
4
2
0
2
4
6
8
10
12
14
16
18
20
Very Satisfied Satisfied Neutral Unsatisfied Very Unsatisfied
SCB Customers Other's Bank Customers Total
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SCB customers Other's bank customers Total
P - value
Yes 32(86.5) 11(84.6) 43(86) No 5(13.5) 2(15.4) 7(14) 0.035 Total 37 13 50
What is the primary reason for using Online Banking Tools? Please select all that apply.
SCB customers Other's bank customers Total
P - value
Convenience 10(27) 9(69.2) 19(38) To Serve Time 4(10.8) 0(0) 4(8) <.000 24 Hour Access To A Account 18(48.6) 2(15.4) 20(40) Not Applicable 5(13.5) 2(15.4) 7(14) Total 37 13 50
How often, do you use Online Banking Tools?
SCB customers Other's bank customers Total
P - value
Occasionally 14(37.8) 2(15.4) 16(32) Frequently 17(45.9) 2(15.4) 19(38) Never 5(13.5) 2(15.4) 7(14) 0.526 Often 1(2.7) 4(30.8) 5(10) Very Often 0(0) 3(23.1) 3(6) Total 37 13 50
Please select which online banking tool you use frequently?
SCB customers Other's bank customers Total
P - value
Pay Bills 5(13.5) 0(0) 5(10) Make An Account Inquiry 11(29.7) 4(30.8) 15(30) Transfer Funds Between Account 2(5.4) 2(15.4) 4(8) 0.488 Wire Transfer 4(10.8) 3(23.1) 7(14) Process Payroll 7(18.9) 2(15.4) 9(18) Order Cheque Book 3(8.1) 0(0) 3(6) Not Applicable 5(13.5) 2(15.4) 7(14) Total 37 13 50
Do you use following additional online banking tools?
SCB customers Other's bank customers Total
P - value
Open A New Account 3 (9.4) 0 (0) 3 (6.8) Cheque Book Request 5 (15.6) 0 (0) 5 (11.4) Statement Request 4 (12.5) 1 (8.3) 5 (11.4) 0.74 Link Account / Card Details 4 (12.5) 2 (16.7) 6 (13.6)
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Change Credit Card Pin 7 (21.9) 6 (50) 13
(29.5) View Service Request Status 5 (15.6) 1 (8.3) 6 (13.6) View Foreign Exchanges 1 (3.1) 1 (8.3) 2 (4.5) View Mailbox 3 (9.4) 1 (8.3) 4 (9.1) Total 32 12 44
please rate the following online banking tools offered by your bank; bill payment
SCB customers Other's bank customers Total
P - value
Excellent 3(16.7) 2(33.3) 5(20.8) Good 9(50) 2(33.3) 11(45.8) 0.431 Neutral 1(5.6) 0(0) 1(4.2) Not Applicable 5(27.8) 2(33.3) 7(29.2) Total 18 6 24
Please Rate The Following Online Banking Tools Offered By Your Bank; Ordering Cheque Book
SCB customers Other's bank customers Total
P - value
Excellent 4(36.4) 2(100) 6(46.2) Good 3(27.3) 0(0) 3(23.1) 0.822 Neutral 1(9.1) 0(0) 1(7.7) Not Applicable 3(27.3) 0(0) 3(23.1) Total 11 2 13
Please Rate The Following Online Banking Tools Offered By Your Bank; Bank Transfer
SCB customers Other's bank customers Total
P - value
Excellent 1(9.1) 0(0) 1(8.3) Good 4(36.4) 1(100) 5(41.7) Neutral 1(9.1) 0(0) 1(8.3) 0.656 Not Applicable 4(36.4) 0(0) 4(33.3) Total 11 1 12
Please Rate The Following Online Banking Tools Offered By Your Bank; Stop Payment
SCB customers Other's bank customers Total
P - value
Excellent 0(0) 1(20) 1(7.7) Good 2(25) 1(20) 3(23.1) 0.822 Neutral 1(12.5) 0(0) 1(7.7) Not Applicable 4(50) 2(40) 6(46.2) Total 8 5 13
Please Rate The Following Online Banking Tools Offered By Your Bank; Balance Inquiry
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SCB customers Other's bank customers Total
P - value
Excellent 1(9.1) 0(0) 1(8.3) Good 2(18.2) 0(0) 2(16.7) 0.337 Neutral 4(36.4) 1(100) 5(41.7) Not Applicable 3(27.3) 0(0) 3(25) Total 11 1 12
Please Rate The Following Online Banking Tools Offered By Your Bank; Accessing Bank Statement
SCB customers Other's bank customers Total
P - value
Excellent 0(0) 1(33.3) 1(11.1) Good 2(33.3) 0(0) 2(22.2) 0.408 Neutral 1(16.7) 1(33.3) 2(22.2) Not Applicable 3(50) 1(33.3) 4(44.4) Total 6 3 9
What Banking Tools Do You Use That Are Provided By Your Bank? (Please Check All You Are Currently Using)
SCB customers Other's bank customers Total
P - value
Seeking Product And Rate Information 2 (5.4) 2 (15.4) 4 (8) Download Personal Bank Transaction Activity 10 (27) 1 (7.7) 11 (22) Cheque Balance Online 3 (8.1) 2 (15.4) 5 (10) Apply For Consumer Loan Or Credit Cards Online 7 (18.9) 5 (38.5) 12 (24) Inter Account Transfer 7 (18.9) 1 (7.7) 8 (16) 0.165 Online Bill Payments 3 (8.1) 0 (0) 3 (6) Prepaid Vouchers 1 (2.7) 0 (0) 1 (2) Not Applicable 4 (10.8) 2 (15.4) 6 (12) Total 37 13 50
Following Are Some Factors Which Affect The Preference For The Use Of Internet Banking Service Please Tick The Appropriate Opinion (Awareness Of The Services And Its Benefits_
SCB customers Other's bank customers Total
P - value
Strongly Disagree 2(11.8) 0(0) 2(7.4) Disagree 1(5.9) 1(10) 2(7.4) <.0000 Agree 7(41.2) 1(10) 8(29.6) Strongly Agree 7(41.2) 8(80) 15(55.6) Total 17 10 27
Following Are Some Factors Which Affect The Preference For The Use Of Internet Banking Service Please Tick The Appropriate Opinion (The Case Of Use)
SCB Other's bank customers Total P -
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customers value
Strongly Disagree 0(0) 0 (0) 0 (0) Disagree 2(40) 0 (0) 2(40) 0.086 Agree 2(40) 0 (0) 2(40) Strongly Agree 1(20) 0 (0) 1(20) Total 5 0 (0) 5
Following Are Some Factors Which Affect The Preference For The Use Of Internet Banking Service Please Tick The Appropriate Opinion (The Safety And Security Of Transacting Over The Internet)
SCB customers Other's bank customers Total
P - value
Strongly Disagree 0(0) 1(25) 1(8.3) Disagree 1(12.5) 0(0) 1(8.3) 0.646 Agree 2(25) 3(75) 5(41.7) Strongly Agree 5(62.5) 0(0) 5(41.7) Total 8 4 12
Following Are Some Factors Which Affect The Preference For The Use Of Internet Banking Service Please Tick The Appropriate Opinion (The Cost Of Using Internet Banking)
SCB customers Other's bank customers Total
P - value
Strongly Disagree _ _ _ Disagree 1(20) 0(0) 1(14.3) Agree 3(60) 1(50) 4(57.1) 0.788 Strongly Agree 1(20) 1(50) 2(28.6) Total 5 2 7
Following Are Some Factors Which Affect The Preference For The Use Of Internet Banking Service Please Tick The Appropriate Opinion (The Access To Computer Or Internet Curiosity)
SCB customers Other's bank customers Total
P - value
Strongly Disagree _ _ _ Disagree 1(11.1) 0(0) 1(10) Agree 6(66.7) 1(100) 7(70) <0.00 Strongly Agree 2(22.2) 0(0) 2(20) Total 9 1 10
Following Are Some Factors Which Affect The Preference For The Use Of Internet Banking Service Please Tick The Appropriate Opinion (Low Services Charges)
SCB customers Other's bank customers Total
P - value
Strongly Disagree _ _ _ Disagree _ _ _
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Agree 5(62.5) 1(25) 6(50) <0.00 Strongly Agree 3(37.5) 3(75) 6(50) Total 8 4 12
Following Are Some Factors Which Affect The Preference For The Use Of Internet Banking Service Please Tick The Appropriate Opinion (Convenience 24 Hours Service Any Where Connectivity)
SCB customers Other's bank customers Total
P - value
Strongly Disagree _ _ _ Disagree _ _ _ Agree 2(20) 2(40) 4(26.7) <0.00
Strongly Agree 8(80) 3(60)
11(73.3) Total 10 5 15
Following Are Some Factors Which Affect The Preference For The Use Of Internet Banking Service Please Tick The Appropriate Opinion ( Easy To Maintain My Banking Transaction Activity)
SCB customers Other's bank customers Total
P - value
Strongly Disagree 1(14.3) 0(0) 1(9.1) Disagree _ _ _ Agree 1(14.3) 3(75) 4(36.4) 0.125 Strongly Agree 5(71.4) 1(25) 6(54.5) Total 7 4 11
How Do You Consider Internet Banking In Matter Of Security And Privacy?
SCB customers Other's bank customers Total
P - value
Password Change 9(26.5) 3(23.1) 12(25.5) Change Nickname 6(17.6) 4(30.8) 10(21.3) View Contact Details 7(20.6) 3(23.1) 10(21.3) 0.5978 Change Address Information 7(20.6) 3(23.1) 10(21.3) Change Funds Transfer Limit 5(14.7) 0(0) 5(10.6) Total 34 13 47
Do You Think In-Person Interaction Is Important For Using Online Banking Tools?
SCB customers Other's bank customers Total
P - value
Completely 14(37.8) 5(38.5) 19(38) Some What 13(35.1) 3(23.1) 16(32) 0.798 Unsure 5(13.5) 3(23.1) 8(16) Not At All 5(13.5) 2(15.4) 7(14) Total 37 13 50
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Are You Confident About The Level Of Security Implemented Over Online Banking Tools
SCB customers Other's bank customers Total
P - value
Strongly Confident 13(35.1) 4(30.8) 17(34) Confident 10(27) 3(23.1) 13(26) Neutral 7(18.9) 4(30.8) 11(22) 0.936 Unconfident 3(8.1) 1(7.7) 4(8) Strongly Unconfident 4(10.8) 1(7.7) 5(10) Total 37 13 50
How You Are Satisfied With The Online Banking Tools Provided By The Bank?
SCB customers Other's bank customers Total
P - value
Very Satisfied 13(35.1) 6(46.2) 19(38) Satisfied 12(32.4) 5(38.5) 17(34) Neutral 7(18.9) 1(7.7) 8(16) 0.529 Unsatisfied 4(10.8) 0(0) 4(8) Very Unsatisfied 1(2.7) 1(7.7) 2(4) Total 37 13 50
Focus Group Discussion
Online banking tools provided by SCB to its consumers through which initially
consumers use some services easily like money transfer from account to another account, paying
utility bills, purchasing of different items through credit etc. (Sarel & Marmorstein, pp. 231-243,
2004) Time after time through the advancement in online banking tools controlling and
management of account and money became easier for consumers. Online banking tools provide
facilities to its consumers to avoid unnecessary services easily by which SCB paper work reduce
and cost of paper work reduce and also cost of supporting staff for these work is reduce, it is
saving of money and these saving transfer by SCB to its consumer.
Internet banking is a type of system that make possible to financial organization
consumers, persons or businesses, to entrance in accounts, execute business, or acquire
knowledge about financial products and services through the Internet. The implementation of
modern technologies of information and communication have changed the road of performing
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business transaction and meeting the increasing burden of consumers for most business
organizations (Shao, p1-13, 2007). In recent energetic corporate environment, most commonly
SCB has been using online banking tools as their principal resource to assure its customer
satisfaction. Through the facilitation of online banking tools, all queries can be processed
directly and also through the process of online banking tools the length it ultimately reduced the
resources required for operating activities (Smith, pp18-48, 2006). There is a great magnification
of online banking tools for SCB as in expectations because of enlargement of internet population
all over the world. Especially, Asia is the leading place of the world on behalf of online banking
now where customers level continuously increasing.
Lower charges of operating and services for consumers are the leading advantage of
online banking services for SCB. Before the introduction of online banking tools SCB is facing
higher fixed operating cost in shape of security, technical staff or equipments, maintenance,
supporting staff and salaries etc. (Phan & Vogel, pp.58 – 72, 2010). After including all these
things SCB has been facing large amount in expense and these expenses were continuously
reducing its financial profit. Under these conditions SCB has only one option to increase its
operational charges in order to recover its financial condition.
It was the natural response of SCB’s consumers when they feel that their individual
financial record can be represented on any unidentified workstation that was the considerable
revolution of banking to cyberspace from high streets. These revolution of online banking
provided by SCB to its consumers to easily approach their accounts anytime or anywhere
irrespective of day and night. Nor it is needed to visit the branch etc.
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Chapter Five: Discussion
Quality of service is the major issue for businesses and banking sector because through
providing of good service quality they are able to get consumers satisfaction and consumer’s
satisfaction determine the business failure or success (Vatanasombut, Igbaria, Stylianou, et. al.,
419-428, 2008). SCB consider their consumers first, in order to get consumers satisfaction SCB
providing quality online banking services to its consumers and getting satisfaction of consumers
because SCB known that consumers satisfaction is require to aggressive in working place.
Currently, customer level of satisfaction is increasing day by day and will increase in
future, after the implementation of such tools by SCB and other different organizations more
importantly after the technology of wireless system all industries and all over the world are
standardized. At the time of international online transaction through online banking tools the
exchange rate cast many problems and different types of issue (Vatanasombut, Igbaria,
Stylianou, et. al., 419-428, 2008). Online business units have been facing this issue directly, but
this problem will be resolved through significant coverage by which demand of online banking
tools provided by SCB will further be increase in future. Significant and sufficient information
about exchange rate is hardly needed because all online transactions would be carried out in real
time so significant and sufficient information of exchange rate cerate great role in growing online
banking.
Furthermore SCB is also getting help from online banking tools to keep track record of
its consumer’s helpful information. Subsequently it helps in determining quality dimensions of
online banking services provided by bank. Through consumers information SCB considers its
products in accordance with the demands of its consumers (Lee, pp. 27-35, 2007). In traditional
banking tools SCB banking services based on working hours that was a problem for different
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consumers because after SCB working hour they were unable to use their account and other
banking activities. Primary online banking tools resolved these problem after online banking
tools SCB offering its services to consumers 24/7 means that consumers free to used its account
and other financial or banking activities anytime, any day and anywhere (Ngaia, Xiub & Chaua,
pp. 56-62, 2009). Opportunity to use banking and financial activities online with the facilitation
of online banking tools the consumers level of satisfaction level have considerably improved.
With the help of online banking tools SCB is facilitating its consumers and looking
forward to increase their business and that is the potential room for improvement for SCB. For
the accomplishment of these task SCB should launch new branches in small towns more
importantly those towns where consumes have not potentially sound however, after online
banking tools SCB able to get lower income level consumer and facilitate them and also able
increase their life style. New branches in small town will act as first step to introduce online
banking to new customers.Cost of online banking tools are lower and these lower operational
cost cerate many local business opportunities, not only in local market but also creating many
opportunities in global market.
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Chapter Six: Conclusion/Recommendations
20th Century is a century of remarkable changes. In 20th Century we have seen
tremendous advancements like technological improvement. We have gone through different
changes and technological advancement; at the same time we see one of the greatest
advancement in the field of internet in the second last decade of 20th Century and it is the
commencement of online business activities and it has made a great phenomenal change
(Mannan & Oorschot, pp. 129-136, 2008). The amazing kind of modernization in technology
unified with information technology made a standard shift in the online business activities.
Through the use of internet technology and online services like trading and banking activities
create great impact. Though the adoption of online tools in business activities, all different
phases of business activities have been involved from purchasing of material to supply chain
management and also includes payments, sales and financing.
In present, because of the introduction of online trading and e-commerce division more
and more consumers started adopting the internet banking. Besides the physical existence caused
by increasing of fast transaction processing, payments, deposits and transfer etc, includes the
advancement of internet users and understanding the importance of banking role in overall
trading and transaction activities, all these activities show that online banking tools have become
the most important way to make 21st Century business possible (Ho & Lin, pp.5 – 24, 2010). On
behalf of internet importance and facilitation it becomes vital for banks to modernize their
approach to fulfill consumer requirement by using internet or online banking.
Through online tools SCB is providing e-commerce services successfully to its
consumers and consumers happily used their services because of these SCB have physically
powerful support in online services these powerful support not only helpful to SCB but due to
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these it is expected that the online banking and transactions will further increase in upcoming
years and also success of SCB is show that trade is truly depends on internet by using online
technology, where consumers visits producers and retailers website and show its demand by
making online transaction (Bruce Ho & Dash Wu, p. 1835-1842, 2009). These roads to doing
business are time after time increasing and expected to increase in upcoming years. SCB is
offering online banking tools to its consumers and different business organization and that is a
fact that all these advance procedure of business can only depends on using of online banking
tools. It is expected that the demand of online banking tools will further more increase in
upcoming years. Furthermore these online banking provide by SCB not only fulfill the needs of
corporate sector, but also fulfill the needs of all type of businesses and production units.
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