A STUDY ON CUSTOMER AWARENESS ON E- BANKING SERVICES AT UNION BANK OF INDIA, MANGALORE

Abstract

E-banking is fast becoming a norm in the developed world, and is being implemented by many banks in developing economies around the globe. The main reason behind this success is the numerous benefits it can provide, both to the banks and to customers of financial services. For banks, it can provide a cost effective way of conducting business and enriching relationship with customers by offering superior services, and innovative products which may be customized to individual needs. For customers it can provide a greater choice in terms of the channels they can use to conduct their business, and convenience in terms of when and where they can use e- banking. Over the last decade India has been one of the fastest adopters of information technology, particularly because of its capability to provide software solution to organizations around the world. This capability has provided a tremendous impetuous to the domestic banking industry in India to deploy the latest in technology, particularly in the Internet banking and e-commerce areas. Technology is playing a major role in increasing the efficiency, courtesy and speed of customer service. An Online Banking user is expected to perform transactions online such as Checking account balance and transaction history, Paying bills, Transferring funds between accounts, Requesting credit card advances, ordering checks, Managing investments and stocks trading. From a bank‟s perspective, using the Internet is more efficient than using other distribution mediums because banks are looking for an increased customer base. Moreover Internet delivery offers customized service to suit the needs and the likes of each user. Mass customization happens effectively through Online Banking. It reduces cost and replaces time spent on routine errands with spending time on business errands. Online Banking means less staff members, smaller infrastructure demands, compared with other banking channels. From the customers‟ perspective, Online Banking provides a convenient and effective way to manage finances that is easily accessible 24 hours a day, seven days a week. In addition information is up to date. Nevertheless Online Banking has disadvantages for banks like how to work the technology, set- up cost, legal issues, and lack of personal contact with customers. And for customers there are security and privacy issues.