Customer Satisfaction Survey Internet Banking Bank of Baroda by Amit Dubey

―Customer Satisfaction Survey‖
INTERNET BANKING
Summer Internship Project Report

Submitted towards Partial fulfillment
Of
Post Graduate Diploma in Management-IT
(Approved by AICTE, Govt. of India)
Academic Session
2010-2012
Submitted By:
Amit Dubey
BM-010187
amit1anu@gmail.com
Under the Guidance of:
Industry Guide Faculty Guide

Mr. Anil Malhotra Prof. Sachin Malhotra
Chief Manager Chairperson PGDM-IT
Bank of Baroda-Rajnagar Branch IMS, Ghaziabad
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DECLARATION
I hereby declare that all information and data provided in this report is collected from secondary source and
is true to the best of our knowledge.
Students name: Signature:

AMIT DUBEY (BM-010187)
PGDM-IT
IMS Ghaziabad
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ACKNOWLEDGEMENT
No task whatever big or small can be completed without proper guidance and encouragement. It gives
us a great pleasure to our deep sense of gratitude and reverence to every person who created a congenial
atmosphere for successful completion of this project.
We would like to express our gratitude and profound thanks to Mr. Anil Malhotra (Chief
Manager), & All The Staff members of Bank of Baroda, Rajnagar Ghaziabad for his valuable
sustained, guidance, invaluable suggestions and constant encourag ement without which it would not
have been possible for us to complete this project.
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PREFACE
Internet Banking is one of a major part of Banking Methods available to the customers.
My Objective of study was to deal with Customer Satisfaction regarding Internet Banking., I generally deal with the
customers of Ghaziabad-Rajnagar branch region. The purpose of the Internet banking survey was to gather
information on banks‘ practices and procedures related to enrolling customers in online banking, opening accounts
online, and monitoring, detecting, and preventing bank account fraud perpetrated using the Internet as a channel.
The survey addresses practices for consumer, business, and wholesale accounts regarding to Bank of Baroda.
According to an August 2010 survey of U.S. consumers by the American Bankers Association (ABA), Internet
banking is now the No. 1 method of banking.
One-quarter of respondents preferred Internet banking to using branches, ATMs or any other channel.
Here are the actual numbers for the “Preferred banking method of U.S. consumers”:   -
Internet banking 25%  - Branches 21%  - ATM 17%  - Mail 9%  - Telephone 4%  - Mobile 1%  - Unknown
23%
And, according to the survey of Indian consumers by the Indian Bankers Association (IBA).
One-quarter of respondents preferred Internet banking to using branches, ATMs or any other channel.
Here are the actual numbers for the “Preferred banking method of Indian consumers”:   -
Internet Banking 18%  - Branches 45%  - ATM 29%  - Mail 5%  - Telephone 2%  - Mobile 1%
Internet banking was not only popular with the youngest consumers—it was the top response of all those under age
55. Older bank customers still preferred their local branch (26%) and ATMs (17%), but the popularity of branches
and ATMs was down in all age groups (compared to 2008).
The results of this survey make it clear that for the first time, more consumers prefer the speed and convenience of
conducting their banking transactions on the Internet, rather than visiting their local branch. It also indicates that
consumers now have more confidence in the accuracy and security of online banking.
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TABLE OF CONTENTS
1. DECLARATION………………………………………………………………………………………. i
2. ACKNOWLEGEMENT…………………………………………………..………………………….... ii
3. PREFACE………………………………………………………………………………………………. iii
5. TABLE OF CONTENTS………………………………………………………………………………. iv
6. LIST OF TABLES AND CHARTS……………………………………………………………….…… v
7. EXECUTIVE SYNOPSIS…………………………………………………………………….…………1
8. INTRODUCTION. ………………………………………………………………………………………2
INTRODUCTION TO SUBJECT……………………………………………………………….2
INTRODUCTION TO ORGANISATION………………………………………………………10
8. LITERATURE REVIEW………………………………………………………………………….…….18
9. OBJECTIVE…………………………………………………………………………….……………….21
10. RESEARCH METHODOLOGY……………………………….……………………………………….22
11. DATA ANALYSIS………………………………………………………………………….……….....23
12. RECOMMENDATION. ………………………………………………………………………………..37
13. LIMITATION. ………………………………………………………………………………………….42
14. CONCLUSION……………...………………………………………………………..…………………43
15. BIBLIOGRAPHY……………………………………………………………………………………….44
16. APPENDIX……………………………………………………………………………………………...45
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LISTS OF TABLES / GRAPHS / FIGURES
LIST OF TABLES:
Table 1- Data Table for the Estimation of ―Growth Rate‖ & ―Forecasting‖ (Page No. 22)
Table 2- Data Table of Customer Satisfaction Survey ―INTERNET BANKING‖ #1 (Page No.- 24.a)
Table 3- Data Table of Customer Satisfaction Survey ―INTERNET BANKING‖ #2 (Page No.- 24.b)
Table 2- Gender Ratio (Page No. 24)
Table 3- Age Group (Page No. 26)
Table 4- Satisfaction Analysis (Page No. 27)
Table 5- Reason to Choose "Online-Banking" (Page No. 28)
Table 6- Customers Accessing their A/c (Page No. 28)
Table 7- Bill Payment (Page No. 29)
Table 8- E-Alerts (Page No. 30)
Table 9- Fund Transfer (Page No. 31)
Table 10- Stop Payment (Page No. 32)
Table 11- Balance Enquiry (Page No. 33)
Table 12- Check Retrieval (Page No. 34)
Table 13- Bank Statement (Page No. 35)
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LIST OF CHARTS:
Chart 1- Growth rate of Baroda-Connect (Page No. 23)
Chart 2- Gender Ratio (Page No. 24)
Chart 3- Age Group (Page No. 26)
Chart 4- Satisfaction Analysis (Page No. 27)
Chart 5- Reason to Choose "Online-Banking" (Page No. 28)
Chart 6- Customers Accessing their A/c (Page No. 28)
Chart 7- Bill Payment (Page No. 29)
Chart 8- E-Alerts (Page No. 30)
Chart 9- Fund Transfer (Page No. 31)
Chart 10- Stop Payment (Page No. 32)
Chart 11- Balance Enquiry (Page No. 33)
Chart 12- Check Retrieval (Page No. 34)
Chart 13- Bank Statement (Page No. 35)
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EXECUTIVE SYNOPSIS
Internet banking is still at infancy stage in the world. Many studies focused on usage of Internet banking but many
factors on non-usage were overlooked. This research was carried out to validate the conceptual model of Internet
banking. The causes were identified and researched through correcting the causative factors so that more people
can use Internet banking. This will help the banking operations to be more cost effective.
The research is focused on what are the customer‘s perceptions about Internet banking and what are the drivers
that drive consumers. How consumers have accepted Internet banking and how to improve the usage rate were the
focus of research area in this study.
Qualitative exploratory research using two different questionnaires was applied. More than 100 respondents were
selected for study after initial screening. They were all bank customers.
The studies revealed that education, gender, income play an important role in usage of Internet banking. Not much
research has been done on these areas as they were focused more on the acceptance of technology rather than on
people. The research corroborated the conceptual framework stating that if skills can be upgraded there will be
greater will to use internet banking by consumers. Inhibitory factors like trust, gender, education, culture, religion,
security, price can have minimal effect on consumer mindset towards Internet banking.
My research is based on Bank of Baroda‘s Baroda-Connect Internet banking facility avail to the customers, and to
proceed with the research on Customer Satisfaction Survey on Internet Banking.
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INTRODUCTION TO SUBJECT
Knowledge cannot be gained only on the basis of theoretical understanding from books. A practical insight is
necessary for the learning process to make it complete and effective. This is especially in case of Management
Education, banking is one of the emerging or rather to say it one of the fastest growing in India. Today the banking
sector has transcended the normal banking activities and has diversified into insurance, merchant banking,
advisory services and many more.
My project aims at Comparative study on Customer Perception Towards E-banking With Respect To Bank Of
Baroda. In this research study 100 respondents from the Banks were taken, After analyzing the results of the
questionnaire we conclude that even now a days banks are providing innovative services day by day, but still there
are a lot of customers who are even not aware about these services, the usage of these services is a different issue,
Today Banks are using huge amount of funds to provide differentiate services to their customers from their
competitors like by using new software or by providing new innovative services like internet banking, mobile
banking, and many others but still they are focusing only to provide the innovative services to the customers not
focusing too aware them regarding these services and also there is a need to aware the customers about the use and
benefits to the services provided by the bank, because it‘s the way to get competitive advantage, as per as we all
know that today most of the organizations are focusing on the promotion- element of marketing mix, which is
providing financial as well as non financial benefits like Brand image, so these Banks is not focusing over this
element, Majority of the respondent in Bank have savings account with banks. The facility that was availed by
most of the people at these Banks was that of ATM/Debit Cards. The most important channel that aware customer
most regarding the innovative services is family& friends.
This is the marvelous kinds of innovation in technology and hard line blend of it with information technology
made a paradigm shift in the banking industry. Technology itself created its world in the globe of human beings.
Advent of Internet banking happened in early 1990. Internet banking is a kind of systems that enable financial
institution customers, individuals or businesses, to access accounts, transact business, or obtain information on
financial products and services through the Internet.
The Government of India enacted the IT Act, 2000 (Information Technology Act). This act came into effect from
the 17th of October 2000. The purpose of this act, in context of banking, was to provide legal recognition to
electronic transactions and other means of Electronic Commerce. The working group set by Reserve bank of India,
has been working as a watchdog on the different aspect of the Internet banking. Bank of Baroda was the pioneer
bank to use Internet banking first time in Sept 2006 with its services in India. Bank of Baroda and a lot of other
Indian banks use the Internet banking system to provide online banking solution.
In the current scenario Indian customers are moving towards Internet banking, slowly but steadily. Most of the big
Indian banks like SBI, BOB, and PNB etc. have started providing Internet banking services.
There is a clear need to develop a better understanding of how consumers evaluate these services and develop e-
loyalty. Service quality is one of the main factors determining the success/failure of electronic. The customer
perception and preferences of service quality have a significant impact on bank‘s success. The main aim of this
research is to find out the acceptance of Internet banking among Indian consumers and how they perceive it. This
becomes important especially when education level is only 67% in India. A study of an Internet portal for
understanding customer perception about service quality, customer satisfaction and loyalty goes a long way in
figuring out how these e-services are evaluated.
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As India is taking giant leaps towards globalization Internet banking is the sector to be studied with great interest.
The question of how attitude towards elements of existing banking service might influence the consumer‘s
decision to use Internet banking has not been investigated. As consumers get more and more educated, getting
insight about modern banking, via Internet banking has evolved as primary area of concern for all leading and
upcoming banks in India.
INTRODUCTION OF E-BANKING
The world is changing at a staggering rate and technology is considered to be the key driver for these changes
around us. An analysis of technology and its uses show that it has permeated in almost every aspect of our life.
Many activities are handled electronically due to the acceptance of information technology at home as well as at
workplace. Slowly but steadily, the Indian customer is moving towards the internet banking. The ATM and the Net
transactions are becoming popular. But the customer is clear on one thing that he wants net-banking to be simple
and the banking sector is matching its steps to the march of technology. E-banking or Online banking is a generic
term for the delivery of banking services and products through the electronic channels such as the telephone, the
internet, the cell phone etc. The concept and scope of e-banking is still evolving. It facilitates an effective payment
and accounting system thereby enhancing the speed of delivery of banking services considerably.
Several initiatives have been taken by the Government of India as well as the RBI (Reserve Bank of India); have
facilitated the development of e-banking in India. The government of India enacted the IT Act, 2000, which
provides legal recognition to electronic transactions and other means of electronic commerce. The RBI has been
preparing to upgrade itself as regulator and supervisor of the technologically dominated financial system. It issued
guidelines on the risks and controls in computer and telecommunication systems to all banks, advising them to
evaluate the risks inherent in the systems and put in place adequate control mechanisms to address these risks.
WHAT IS E-BANKING?
Electronic banking is one of the truly widespread avatars of E-commerce the world over. Various authors define E-
Banking differently but the most definition depicting the meaning and features of E-Banking are as follows:
 Banking is a combination of two, Electronic technology and Banking.
 Electronic Banking is a process by which a customer performs banking Transactions electronically without
visiting a brick-and-mortar institutions.
 E-Banking denotes the provision of banking and related service through Extensive use of information
technology without direct recourse to the bank by the customer.
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NEED FOR E-BANKING
One has to approach the branch in person, to withdraw cash or deposit a cheque or request a statement of accounts.
In true Internet banking, any inquiry or transaction is processed online without any reference to the branch
(anywhere banking) at any time. Providing Internet banking is increasingly becoming a "need to have" than a "nice
to have" service. The net banking, thus, now is more of a norm rather than an exception in many developed
countries due to the fact that it is the cheapest way of providing banking services.
Banks have traditionally been in the forefront of harnessing technology to improve their products, services and
efficiency. They have, over a long time, been using electronic and telecommunication networks for delivering a
wide range of value added products and services. The delivery channels include direct dial up connections, private
networks, public networks etc. and the devices include telephone, Personal Computers including the Automated
Teller Machines, etc. With the popularity of PCs, easy access to Internet and World Wide Web (WWW), banks
increasingly use Internet as a channel for receiving instructions and delivering their products and services to their
customers. This form of banking is generally referred to as Internet Banking, although the range of products and
services offered by different banks vary widely both in their content and sophistication.
More and more people are using electronic banking products and services because large section of the banks future
customer base will be made up of computer literate customer, the banks must be able to offer these customer
products and services that allow them to do their banking by electronic means. If they fail to do this will, simply,
not survive. New products and services are emerging that are set to change the way we look at money and the
monetary system.
USAGE OF E-BANKING
The rise in the e-commerce and the use of Internet in its facilitation along with the enhanced online security of
transactions and sensitive information has been the core reason for the penetration of online banking in everyday
life. According to the latest official figures from the office of National Statistics (ONS 2007) indicate that
subscriptions to the internet has grown more than 50% from 25 million in 2005 to 45 million in 2007 in India. It
has also been estimated that 60% of the population in India use internet in their daily lives. The fundamental shift
towards the involvement of the customer in the financial service provision with the help of the technology
especially internet has helped to reduce the costs of financial institutions as well as helped client to use the service
at anytime and from virtually anywhere with access to an internet connection. The use of electronic banking has
removed personnel that facilitate the transactions and has placed additional responsibilities on the customers to
transact with the service. The computerization of the banking operations has made maximum impact on: -
 Internal Accounting System
 Customer service
 Diversification of system
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The Conceptual Model of Internet Banking
INTERNET BANKING VERSUS TRADITIONAL BANKING
In spite of so many facilities that Internet banking offers us, we still seem to trust our traditional method of
banking and is reluctant to use online banking. But here are few cases where Internet banking will turn out to be a
better option in terms of saving your money.
'Stop payment' done through Internet banking will not cost any extra fees but when done through the branch, the
bank may charge you Rs 50 per cheque plus the service tax.
Through Internet banking, you can check your transactions at any time of the day, and as many times as you want
to.
On the other hand, in a traditional method, you get quarterly statements from the bank and if you request for a
statement at your required time, it may turn out to be an expensive affair. The branch may charge you Rs 25 per
page, which includes only 30 transactions. Moreover, the bank branch would take eight days to deliver it at your
doorstep.
If the fund transfer has to be made outstation, where the bank does not have a branch, the bank would demand
outstation charges. Whereas with the help of online banking, it will be absolutely free for you. As per the Internet
and Mobile Association of India's report on online banking 2006, "There are many advantages of online banking.
It is convenient, it isn't bound by operational timings, there are no geographical barriers and the services can be
offered at a miniscule cost."
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TYPES OF INTERNET BANKING OR E-BANKING
Understanding the various types of Internet banking will help examiners assess the risks involved. Currently, the
following three basic kinds of Internet banking are being employed in the marketplace.
 Informational- This is the basic level of Internet banking. Typically, the bank has marketing information
about the bank‘s products and services on a stand- alone server. The risk is relatively low, as informational
systems typically have no path between the server and the bank‘s internal network. This level of Internet
banking can be provided by the banks or outsourced. While the risk to a bank is relatively low, the server
or web site may be vulnerable to alteration. Appropriate controls therefore must be in place to prevent
unauthorized alterations to the bank‘s server or web site.
 Communicative- This type of Internet banking systems and the customer. The interaction between the
bank‘s system and the customer. The interaction may be limited to electronic mail, account enquiry, loan
applications, or static file updates (name and address change). Because these servers may have a path to the
bank‘s internal networks, the risk is higher with this configuration than with informational systems.
Appropriate controls need to be in the place to prevent, monitor, and alert management of any unauthorized
attempt to access the bank‘s internal networks and computer systems. Virus controls also become much
more critical in this environment.
 Transactional- This level of Internet banking allows customers to execute transactions. Since a path
typically exists between the server and the bank or outsourcer‘s internal network, this is the highest risk
architecture and must have the strongest controls. Customer transactions can include accessing accounts,
paying bills, transferring funds etc.
FEATURES OF E-BANKING
Transactional: (e.g. performing a financial transaction such as an account to account transfer, paying a bill or
applications like applying for a loan, new account, etc.)
 Electronic Bill Presentment and Payment (EBPP).
 Funds transfer between customers own checking and savings accounts, or to another customers account.
 Investment purchase or sale.
 Loan application and transactions such as repayments.
Non-transactional: (e.g. online statements, Check links, Chat, Co-browsing etc.) Financial Institution
Administration- features allowing financial institutions to manage the online experience of their end users. ASP/
Hosting Administration – features allowing the hosting company to administer the solution across financial
institution.
ADVANTAGES OF E-BANKING:-
 Convenience- Unlike your corner bank, online banking sites never close; they‘re available 24 hours a day,
seven days a week, and they‘re only a mouse click away. With pressures on time and longer travelling
periods, more and more people find it tiresome waiting in queues. People want flexibility, and Internet
banking offers just that.
 Ubiquity- If you‘re out of state or even out of the country when a money problem arises, you can log on
instantly to your online bank and take care of business, 24\7.
 Transaction speed- Online bank sites generally execute and confirm transactions at or quicker than ATM
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processing speeds.
 Efficiency-You can access and manage all of your bank accounts, including IRA‘s, CDs, even securities,
from one secure site.
 Effectiveness- Many online banking sites now offer sophisticated tools, including account aggregation, stock
quotes, rate alert and portfolio managing program to help you manage all of your assets more effectively.
Most are also compatible with money managing programs such as quicken and Microsoft money.
 Cheaper alternative: - With increasing competition, it seems to be the cost factor that is driving banks to
offer the facility. The Internet is still a very cheap alternative to opening a physical branch, and most of the
push seems to be coming from the supply side. The costs of a banking service through the Internet form a
fraction of costs through conventional methods.
 From snob value to necessity:- A couple of years ago, there was a belief even among bankers that
customers opening new accounts wanted the online banking facility, just to "feel good" and very few of
them actually used the services. Today, bankers believe that the trend from `nice to have' is changing to
`need to have'. The "snob value" of banking with an organization that could offer service on the Internet
has given way to a genuine necessity, he feels. "It all depends on how busy a person is."
DISADVANTAGES OF INTERNET BANKING
 Start-up may take time-In order to register for your bank‘s online program, you will probably have to
provide ID and sign a form at a bank branch. If you and your spouse wish to view and manage their assets
together online, one of you may have to sign a durable power of attorney before the bank will display all of
your holdings together.
 Learning curves- Banking sites can be difficult to navigate at first. Plan to invest some time and\or read the
tutorials in order to become comfortable in your virtual lobby.
 Bank site changes- Even the largest banks periodically upgrade their online programs, adding new features
in unfamiliar places. In some cases, you may have to re-enter account information.
HOW E-BANKING CAN EASE YOUR LIFE
Indian banks are trying to make your life easier. Not just bill payment, you can make investments, shop or buy
tickets and plan a holiday at your fingertips. In fact, sources from ICICI Bank tell us, "Our Internet banking base
has been growing at an exponential pace over the last few years. Currently around 78 per cent of the bank's
customer base is registered for Internet banking." To get started, all you need is a computer with a modem or other
dial-up device, a checking account with a bank that offers online service and the patience to complete about a one-
page application-- which can usually be done online. You can avail the following services.
1. Bill payment service: Each bank has tie-ups with various utility companies, service providers and insurance
companies, across the country. It facilitates the payment of electricity and telephone bills, mobile phone,
credit card and insurance premium bills. To pay bills, a simple one-time registration for each biller is to be
completed. Standing instructions can be set, online to pay recurring bills, automatically. One-time standing
instruction will ensure that bill payments do not get delayed due to lack of time. Most interestingly, the
bank does not charge customers for online bill payment.
2. Fund transfer: Any amount can be transferred from one account to another of the same or any another bank.
Customers can send money anywhere in India. Payee‘s account number, his bank and the branch is needed
to be mentioned after logging in the account. The transfer will take place in a day or so, whereas in a
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traditional method, it takes about three working days. ICICI Bank says that online bill payment service and
fund transfer facility have been their most popular online services.
3. Credit card customers: Credit card users have a lot in store. With Internet banking, customers can not only
pay their credit card bills online but also get a loan on their cards. Not just this, they can also apply for an
additional card, request a credit line increase and God forbid if you lose your credit card, you can report
lost card online.
4. Railway pass: This is something that would interest all the aam janta. Indian Railways has tied up with
ICICI bank and you can now make your railway pass for local trains online. The pass will be delivered to
you at your doorstep. But the facility is limited to Mumbai, Thane, Nasik, Surat and Pune. The bank would
just charge Rs 10 + 12.24 percent of service tax.
5. Investing through Internet banking: Opening a fixed deposit account cannot get easier than this. An FD
can be opened online through funds transfer. Online banking can also be a great friend for lazy investors.
Now investors with interlinked demat account and bank account can easily trade in the stock market and
the amount will be automatically debited from their respective bank accounts and the shares will be
credited in their demat account. Moreover, some banks even give the facility to purchase mutual funds
directly from the online banking system. So it removes the worry about filling those big forms for mutual
funds, they will now be just a few clicks away. Nowadays, most leading banks offer both online banking
and demat account. However if the customer have there demat account with independent share brokers,
then need to sign a special form, which will link your two accounts.
6. Recharging your prepaid phone: Now there is no need to rush to the vendor to recharge the prepaid phone,
every time the talk time runs out. Just top-up the prepaid mobile cards by logging in to Internet banking.
By just selecting the operator's name, entering the mobile number and the amount for recharge, the phone
is again back in action within few minutes.
7. Shopping at your fingertips: Leading banks have tie ups with various shopping websites. With a range of
all kind of products, one can shop online and the payment is also made conveniently through the account.
One can also buy railway and air tickets through Internet banking.
INTERNET BANKING IN INDIA
The Reserve Bank of India constituted a working group on Internet Banking. The group divided the Internet
banking products in India into 3 types based on the levels of access granted. They are:
 Information Only System: General purpose information like interest rates, branch location, bank products
and their features, loan and deposit calculations are provided in the banks website. There exist facilities for
downloading various types of application forms. The communication is normally done through e-mail.
There is no interaction between the customer and bank's application system. No identification of the
customer is done. In this system, there is no possibility of any unauthorized person getting into production
systems of the bank through Internet.
 Electronic Information Transfer System: The system provides customer- specific information in the form
of account balances, transaction details, and statement of accounts. The information is still largely of the
'read only' format. Identification and authentication of the customer is through password. The information
is fetched from the bank's application system either in batch mode or off-line. The application systems
cannot directly access through the Internet.
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 Fully Electronic Transactional System: This system allows bi-directional capabilities. Transactions can be
submitted by the customer for online update. This system requires high degree of security and control. In
this environment, web server and application systems are linked over secure infrastructure. It comprises
technology covering computerization, networking and security, inter-bank payment gateway and legal
infrastructure. It includes the followings:
o ATM
o DEBIT CARDS
o SMART CARDS
o MOBILE BANKING
THE INDIAN SCENARIO
DRIVERS OF CHANGE: Advantages previously held by large financial institutions have shrunk considerably.
The Internet has leveled the playing field and afforded open access to customers in the global marketplace. Internet
banking is a cost- effective delivery channel for financial institutions. Consumers are embracing the many benefits
of Internet banking. Access to one's accounts at anytime and from any location via the World Wide Web is a
convenience unknown a short time ago. Thus, a bank's Internet presence transforms from 'brouchreware' status to
'Internet banking' status once the bank goes through a technology integration effort to enable the customer to
access information about his or her specific account relationship. The six primary drivers of Internet banking
includes, in order of primacy are:
• Improve customer access
• Facilitate the offering of more services
• Increase customer loyalty
• Attract new customers
• Provide services offered by competitors
• Reduce customer attrition
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INTRODUCTION TO ORGANISATION
Bank of Barod12a was founded in July 20, 1908 with a paid up capital of Rs 10 lakhs. Since then bank has
traversed an eventful and successful journey of almost 100 years. Today, Bank of Baroda has a network of 2737
branches including 39 overseas branches spread over 20 countries. In mid-80‘s, the Bank of Baroda diversified
into areas of merchant banking, housing finance, credit cards and mutual funds. In 1995 the Bank raised Rs 300 cr
through a Bond issue. In 1996 the Bank tapped the capital market with an IPO of Rs 850cr.
Bank of Baroda (BOB) (BSE: 532134) is the third largest bank in India, after the State Bank of India and the
Punjab National Bank and ahead of ICICI Bank. Bank Of Baroda has total assets in excess of Rs. 2.27 lakh crores,
or Rs. 2,274 billion, a network of over 3,403 branches and offices, and about 1,100 ATMs. IT plans to open 400
new branches in the coming year. It offers a wide range of banking products and financial services to corporate
and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in
the areas of investment banking, credit cards and asset management. Its total business was Rs. 4,402 billion as of
June 30.
As of August 2010, the bank has 78 branches abroad and by the end of FY11 this number should climb to 90. In
2010, BOB opened a branch in Auckland, New Zealand, and its tenth branch in the United Kingdom. The bank
also plans to open five branches in Africa. Besides branches, Bank Of Baroda plans to open three outlets in the
Persian Gulf region that will consist of ATMs with a couple of people.
Bank of Baroda took the lead in shifting from manual operating systems to a computerized work environment.
Today, the Bank has 1918 computerized branches, covering 70% of its network and 91.64% of its business.
Bank of Baroda gives high priority to quality service. In its quest for quality, the Bank has secured the ISO
9001:2000 certifications for 15 branches. By end of the 2005-06, the Bank is targeting 54 more branches for this
quality certification.
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Centenary Year
On the 20th July 2007, the Bank entered its Centenary year. In its quest to become a world-class bank with global
best practices, the Bank is, now, well poised to takeoff with the most modern business and HR systems and
processes. The Bank has already initiated myriad HR interventions with special thrust on internal talent discovery,
upgrading the managerial skills through training, and improving the motivational level of the employees of the
bank
Mission Statement
To be a top ranking National Bank of International Standards committed to augmenting stakeholders' value
through concern, care and competence.
Education is the most important investment one makes in life. Higher studies and specialization in certain fields
call for additional financial support from time to time.
Whether you are planning school education (nursery to standard XII) of your child, pursuing a graduate or post-
graduate degree, the Bank of Baroda Education Loans, can help finance your ambitions and goals.
Objective of Bank of Baroda
1) Special focus on improving ―relations‖ with the existing corporate customers as well as efforts to add new
quality customers to the Bank‘s Book.
2) Thrust on business process reengineering to reduce the ―transaction costs‖.
3) A dedicated effort to add 2.5 to 3.0 million quality customers to Bank‘s book in FY09 and in subsequent
years
International Presence:
In its international expansion, the Bank of Baroda followed the Indian diaspora. It has significant international
presence with a network of 72 offices in 25 countries, six subsidiaries, and four representative offices. Among the
Bank of Baroda‘s 42 overseas branches are ones in the world‘s major financial centers as well as a number in other
countries. The bank is engaged in retail banking via 17 branches of subsidiaries in Botswana, Guyana, Kenya,
Tanzania, and Uganda. The Bank of Baroda also has a joint-venture bank in Zambia with nine branches. The Bank
of Baroda maintains representative offices in Malaysia, China, Thailand, and Australia. It plans to upgrade its
offices in China and Malaysia shortly to a branch and joint venture, respectively.
18
The slogan of Bank of Baroda is "India's International Bank".
Global Presence of Bank Of Baroda:

 Australia
 Bahrain
 Belgium
 Botswana
 China
 Ghana
 Hong Kong
 Guyana
 Mauritius
 Malaysia
 South Africa
 Singapore
 Tanzania
 Thailand
 Uganda
 Trinidad & Tobago
 United Arab Emirates
 United Kingdom
 United State of America
 Zambia
Branch Network of BOB in India

Area No. Of Branches
Metro 604
Urban 504
Semi-urban 619
Rural 1100
Total 2827
Branch Network Overseas

Foreign (Overseas) 71
Total Global 2897
19
International Operations
Wide global network
Bank of Baroda started its overseas journey by opening its first branch way back in 1953 in Mombassa, Kenya.
Since then the Bank has come a long way in expanding its international network to serve NRIs/PIOs and locals.
Today it has transformed into India's International Bank.
It has significant international presence with a network of 72 offices in 25 countries including 48 branches/offices
of the Bank, 21 branches of its eight Subsidiaries and 3 Representative Offices in Malaysia, Thailand&Australia.
The Bank also has one Joint Venture in Zambia with 9 branches
The Bank has presence in world's major financial centers i.e. New York, London, Brussels, Dubai, Hong Kong,
and Singapore.
20
The "round the clock around the globe" Bank of Baroda is further in the process of identifying/opening more
overseas centers for increasing its global presence to serve its 33 million global customers in still better way.
Recently, it upgraded its operations in Guangzhou, China from Representative Office to a branch on 2nd August
2008. It also has plans to upgrade its Representative Offices in Australia and Malaysia.
It has further plans to establish overseas offices in Houston (USA), Canada, New Zealand, Qatar, Saudi Arabia,
Mozambique, Russia etc. Besides this, it has plans to extend its reach in existing countries of operations in UK,
UAE, Uganda, Kenya and T&T etc.
Customers:
 Individual
 Stock Broking Entities
 HUF (Hindu Undivided Family)
 Proprietorship Concerns
 Public Limited Companies
 Private Limited Companies
 Corporate Partnership Firms
Competitors: SBI, HDFC, ICICI, PNB, HSBC etc.

Strength:
It has diversified customer profile, including Blue chip companies, small and medium sized companies, retail
customers, self-help groups, and high net worth individuals.
It has strong brand equity and a wide customer base of over 5 million.
Bank of Baroda‘s financial strength has been recognized by international credit rating agencies.
A strong capital base ensures that it is well placed for growth of business.
The bank, which has consistently earned profit since its inception, has committed and competent human capital to
power its aggressive growth plan.
21
Future of the bank:
Bank of Baroda looks confidently into future to face & thrive in intense competitive environment that is emerging
in global era. The Bank has now gained experience and has in place the strategies required for gaining a leadership
position.
The values of the bank:
Management Team- The core strength of Bank.
Technology and Tech Initiatives
Strategic Initiatives
Corporate Banking and Credit
The Bank Of Baroda bank family
Product profile
Wholesale Banking Deposit Products
SME Banking Loan Products
Retail Banking ATM / Debit Cards
Rural/Agri Banking Internet Banking
Wealth Management Rapid Funds2India
Demat Baroda e-Trading
22
BANK OF BARODA SERVICES
NET BANKING: Baroda-ConnectisBank Of Baroda‘s Internet Banking service. Providing up-to-the-second

account information, Net Banking lets you manage your account from the comfort of your mouse - anytime,
anywhere.
BOB Net Banking Secure Access

Bank Of Baroda has implemented a new security solution for its customers –Baroda-Connect.As your security is
our top priority, we have initiated the Secure Access solution to protect you from fraudsters and hackers - who are
looking to find a way to access your account.
Currently following transactions are covered under Secure Access
 Transfer from one Bank account to other Bank account holders.(under distinct customer ID)
 Transfer from HDFC Bank account to any other Bank's account (also knownas RTGS & NEFT)
 Visa Money Transfer
 Third Party Demand Draft through Net Banking
Third Party Transfer?

Third-Party Transfer is a Net Banking feature for which you will need your unique Customer ID and Login
password. Login to Retail/Corporate Banking to confirm that your ID is active in our records.
What is TPT?
With Third-Party Transfer (TPT) you can transfer funds online from your Bank account to another Bank/Other
Bank account (beneficiary), anywhere in India. This is a real-time transaction and the debit and credit will reflect
in the respective accounts immediately.
Third Party Transfer can be initiated:

From your Account to other Bank Accounts using-
National electronic Funds Transfer (NEFT) - Funds will be credited to the beneficiary account in two
working days.
Real Time Gross Settlement (RTGS) - Funds will be credited to the beneficiary account on the same
working days.
From your Bank account to other Bank accounts (different cuts ids).
From your account to any Visa Card (Debit or Credit) within India.
For issuance of Third Party Demand Drafts from your account.
23
Organizational Structure:
24
LITERATURE REVIEW
The Internet, much like the ATM that came before it, is fundamentally a new distribution channel through which
banks can deliver traditional banking products and services. Initially, banks promoted their core capabilities,
namely, products, channels and advice, through the Internet. Then, they entered the Internet commerce market as
providers/distributors of their own products and services
Malhotra, Pooja & Singh, B. (2010) This study is an attempt to present the present status of Internet banking in
India and the extent of Internet banking services offered by Internet banks. In addition, it seeks to examine the
factors affecting the extent of Internet banking services. The data for this study are based on a survey of bank
websites explored during July 2008. The sample consists of 82 banks operating in India at 31 March 2007.
Multiple regression technique is employed to explore the determinants of the extent of Internet banking services.
The results show that the private and foreign Internet banks have performed well in offering a wider range and
more advanced services of Internet banking in comparison with public sector banks. Among the determinants
affecting the extent of Internet banking services, size of the bank, experience of the bank in offering Internet
banking, financing pattern and ownership of the bank are found to be significant. The primary limitation of the
study is the scope and size of its sample as well as other variables (e.g. market, environmental, regulatory etc.),
which may have an effect on the decision of the banks to offer a wide range of Internet banking services. The
purpose of the study is to help fill significant gaps in knowledge about the Internet banking landscape in India. The
findings are expected to be of great use to the government, regulators, commercial banks, and other financial
institutions, e.g. co-operative banks planning to offer Internet banking, bank customers and researchers. The
bankers as well as society at large will come to know where the banks lag in terms of adoption of Internet banking
and in providing different products and services. An understanding of the factors affecting the extent of Internet
banking services is essential both for economists studying the determinants of growth and for the creators and
producers of such technologies. Moreover, this paper contributes to the empirical literature on diffusion of
financial innovations, particularly Internet banking, in a developing country, i.e. India.
Uppal, R.K. & Chawla, R. (2009) this study highlights customer perceptions regarding e-banking services. A
survey of 1,200 respondents was conducted in October 2008 in Ludhiana district, Punjab. The respondents were
equally divided among three bank groups namely, public sector, private sector and foreign banks. The present
study investigates the perceptions of the bank customers regarding necessity of e-banking services, quality of e-
banking services, bank frauds, future of e-banking, preference of bank customers regarding banks, comparative
study of banking services in various bank groups, preferences regarding use of e-channels and problems faced by
e-bank customers. The major finding of this study is that customers of all bank groups are interested in e-banking
services, but at the same time are facing problems like, inadequate knowledge, poor network, lack of infrastructure,
unsuitable location, misuse of ATM cards and difficulty to open an account. Keeping in mind these problems
faced by bank customers, this paper frames some strategies like customer education, seminars/meetings, proper
network and infrastructure facilities, online shopping facilities, proper working and installation of ATM machines,
etc., to enhance e-banking services. Majority of professionals and business class customers as well as highly
educated and less educated customers also feel that e-banking has improved the quality of customer services in
banks.
25
Azouzi, D. (2009) this paper aims to check if the current and prompt technological revolution altering the whole
world has crucial impacts on the Tunisian banking sector. Particularly, this study seeks some clues on which we
can rely in order to understand the customers' behavior regarding the adoption of electronic banking. To achieve
this purpose, an empirical research is carried out in Tunisia and it reveals that panoply of factors is affecting the
Customer‘sattitude toward e-banking. For instance; age, gender and educational qualifications seem to be
important and they split up the group into electronic banking adopters and traditional banking defenders and so,
they have significant influence on the customers' adoption of e-banking. Furthermore, this study shows that despite
the presidential incentives and in spite of being fully aware of the e-banking's benefits, numerous respondents are
still using the conventional banking. It is worthy to mention that the fear of loss because of transactions errors or
hackers plays a significant role in alienating Tunisian customers from online banking.
B. Dizon, J.A. (2009) In this study they have founded that while big banks still conduct the bulk of their business
in brick and mortar bank branches, the finance sector has been increasingly investing on e-banking facilities to
offer 24-hour, queue- free services to their regular clients, whether through ATM machines, mobile phones or the
Internet. "E- Banking's appeal is primarily its convenience. Clients nowadays want instant results; they don't want
to wait anymore," said Francisco M. Caparros, Jr., senior vice-president of Asia United Bank and president of
Banc Net. It's also turned out to be a more efficient way to process transactions, as e-banking does away with most
of the paperwork that clients have to accomplish. "A lot of people don't like filling forms," Mr. Caparros added.
"Online banking, in particular, relies on user names and passwords which need to be protected," said Ferdinand G.
La Chica, first vice- president and marketing group head for Sterling Bank of Asia.
These anti- theft barriers are at times supplemented by transaction passwords and "tokens", often a keychain-like
device that is issued to the client and generates random, one-time passwords to enable him to log into his account
online. Last year, the Rural Bank Association of the Philippines announced that its members are looking to appoint
local merchants like sari-sari stores as third party agents where consumers can open new accounts and make large
payments. Such informal outlets will enable banks to reach out to small-income businesses and individuals,
particularly those in the agrarian sector, most of who are based outside the city center.
Nitsure, R.R. (2003), this article indicates the E-banking Challenges and opportunities lies in the banking industry.
e-banking has the potential to transform the banking business as it significantly lowers transaction and delivery
costs. This paper discusses some of the problems developing countries, which have a low penetration of
information and telecommunication technology, face in realizing the advantages of e- banking initiatives. Major
concerns such as the 'digital divide' between the rich and poor, the different operational environments for public
and private sector banks, problems of security and authentication, management and regulation, and inadequate
financing of small and medium scale enterprises (SMEs) are highlighted.
Picado, Gonzalez & Eckelman (2004), this study investigated the customer satisfaction using QFD and a
research on service quality and customer satisfaction has become significant in the service industries. This study
develops a case study that considers both external and internal service management issues and subsequent service
innovations based on the framework of quality function deployment (QFD). The application of the customer
window quadrant (CWQ) and the action plan matrix in the analysis of customer and service elements constitute a
different approach for QFD. Some benefits and disadvantages of the QFD process are discussed as compared to
extant service quality and customer paradigms. Finally, suggestions and directions are offered for future
applications, with particular interest in the e-bank service management issues.
26
Shah & Braganza (2007), this survey indicates the Critical Success Factors in e- banking and the author suggest
in this article that the organizational factors, which are critical to the success of e-banking, are investigated.
Different pieces of literature report different factors as key to success and generally based on subjective, perceptual
data. A synthesis of existing literature is a basis for survey questions. The top factors found to be most critical for
the success in e-banking are: quick responsive products/services, organizational flexibility, services expansion,
systems integration and enhanced customer service. An important lesson from this research is that organizations
need to view the e-banking initiative as a business critical area rather than just a technical issue. They need to give
attention to internal integration, which may include channels, technology and business process integration, and
improving the overall services to their customers.
Malhotra, P. & Singh, B. (2007) stated about this research tells us that the larger banks, banks with younger age,
private ownership, higher expenses for fixed assets, higher deposits and lower branch intensity evidence a higher
probability of adoption of this new technology. Banks with lower market share also see the Internet banking
technology as a means to increase the market share by attracting more and more customers through this new
channel of delivery. Further, the adoption of Internet banking by other banks increases the probability that a
decision to adopt will be made. An understanding of the factors affecting this choice is essential both for
economists studying the determinants of growth and for the creators and producers of such technologies. From this
perspective, understanding the factors determining the adoption of technology becomes highly relevant from the
policy point of view. Moreover, the studies on the adoption of financial innovations are related to developed
markets, e.g. US or European banking markets. Hence, this paper contributes to the empirical literature on
diffusion of financial innovations, particularly Internet banking, in a developing country.
Reeti, Sanjay, and Malhotra, A. (2009), stated about the Customers‘ perspectives regarding e-banking in an
emerging economy. So that, the author determining various factors affecting customer perception and attitude
towards and satisfaction with e-banking is an essential part of a bank's strategy formulation process in an emerging
economy like India. To gain this understanding in respect of Indian customers, the study was conducted on
respondents taken from the northern part of India. The major findings depict that customers are influenced in their
usage of e-banking services by the kind of account they hold, their age and profession, attach highest degree of
usefulness to balance enquiry service among e-banking services, consider security & trust most important in
affecting their satisfaction level and find slow transaction speed the most frequently faced problem while using e-
banking.
27
OBJECTIVES
 To study about the factors that affects the customer perception towards e- banking of Bank of Baroda
 To know about the current and future prospects of E-Banking to the customers.
 To find out the major problems faced by the customers while using e-banking services.
 To determining growth direction of online banking service.
 Promoting E-banking services in banking industry.
 Customer perception will be taken into consideration about the Internet banking.
28
RESEARCH METHODOLOGY
I have collected data from ―Bank of Baroda Annual Reports and Statistics‖ from year 2005 to 2011; I estimate the
growth rate and calculate the forecasting of the Baroda-Connect users in future.
We have used different set of formula as follows:-
To Calculate CGR i.e. Compound Growth Rate-
We know that:-
y=ab^t
log y = log a + t*log b
∑logy = N*log a + log b∑t
∑t*log y =log a*∑t + log b*∑t²
Growth Rate = [(Antilog b) - 1]*100
Forecasting is done for the year 2015, assuming prediction year to be 2015 and our base year as 2008
Since we know that,
For Forecasting,
log y = log a + t*log b
Where, t = (predicted year- base year)
t = 2015-2008 (i.e.t = 7 years)
Later on, On the basis of whole price index assuming price of food articles as (X) and all production of food grains
as (Y) we find the regression, co-relation and various tests including residual output too.
29
DATA ANALYSIS
Data Table for the Estimation of ―Growth Rate‖ & ―Forecasting‖
This data table is provided to have an overview at the total no. Of users of Baroda-Connect and later on, I‘ve
calculated the growth rate and the forecasting of Baroda-Connect.
30
No. of Baroda-Connect users Year-wise
700000
600000
500000
400000
300000
200000
100000
0
31-Mar-06 31-Mar-07 31-Mar-08 31-Mar-09 31-Mar-10 31-Mar-11
This shows the growth rate of Baroda-Connect users Year wise from the financial Year 2006 to Year 2011.
The growth rate of BARODA-CONNECT is 39 %, and based on the financial data the calculation tells that the
Forecasting for the users in year 2015 assuming 2008-09 as base year. The value comes 12,76,555.
It means that 12,76,555 customers get registered through ―BARODA CONNECT‖.
31
Data for Customer Satisfaction Survey
“INTERNET BANKING”
Here two Surveys are

Enclosed
Customer Satisfaction Survey 1

Based on Questionnaire # 1
Customer Satisfaction Survey 2

Based on Questionnaire # 2
(*Note: - Questionnaire are attached in APPENDIX at the last)
32
“Customer Satisfaction Survey”
INTERNET BANKING
This survey is based on the set of questionnaire filled up by the customers using the Baroda-Connect facility of
Bank Of Baroda.
1st questionnaire is to analyze the behavior of Customers, i.e. they are using Internet Banking or not, their age,
incomes, and their taste and preferences regarding and also to analyze whether they are a frequent internet user or
not.
And,
2nd questionnaire is a detailed study of the features of the Bank of Baroda in BARODA-CONNECT
DATA ANALYSIS & INTERPETATION

Based on 1st questionnaire
1. Gender:-
Gender Total
Male 46
Female 104
Pie-Chart Analysis:-
Gender Ratio
31%
Male
Female
69%
Interpretation: The result shows that majority of respondents i.e. 69% are males who are using the E-banking services and
31% are the female who are using E-banking services. Female are not using this service because they have less knowledge
about the internet and they trust face to face interaction more. So it shows that E-banking is more famous among male.
33
2. Age:-
Age Total No.

Below 20 0
21-30 51
31-40 57
41-50 38
Above 51 4
Age Group
3% 0%
25% 34%
Below 20
21-30
31-40
41-50
38% Above 51
Interpretation: The result shows that majority of respondents i.e. 34% and 38 % falls under the category of 21-30 years and
31-40 years, where as 25 %falls under 41-50years it shows that E-banking is mainly famous among youngsters as they are
the major users of E-banking and least comes under above 51 years.
34
3. Third factor which I came to know about the choices and preferences of the customers, and they opinion
i.e. they are satisfied with the internet banking facility, and also they asked to score the services out of 10.
Yes No Total
Male 83 21 104
Female 39 7 46
Total 122 28 150
Satisfaction (Yes-No)
90
80
70
60
50
Male
40 Male, Yes, 83
Female
30
20 Female, Yes, 39
10 Male, No, 21
Female, No, 7
0
Yes No
Interpretation: The results show that 122 respondents who are aware of E-banking they are availing E-banking services and
28 are not availing E-banking services yet they are aware of E-banking the reason is that they still have faith in traditional
banking. They fell that their would be the Risk factor involved with the online usage of their bank accounts, other than risk
factor, the browser compatibility, and lack of knowledge of features led to the less satisfaction level of the customers.
DATA ANALYSIS & INTERPETATION
35
Based on 2nd questionnaire
As stated earlier my 2nd questionnaire is entirely based on the Baroda-Connect features avail to the customers, the
2nd questionnaire is totally customer centric, to check whether the Baroda-Connect is fulfilling the customer‘s
requirements or not, Is customer satisfied with the banking facilities over internet ?
Here I apply the ―likert scaling” to find out the actual score provided by the customer, the were give a 7 rating
scale to choose their options.
1. What were your reasons for choosing our online banking service?
Reason to Choose "Online-Banking"
8%
20%
Convenience
35%
To save Time
24 hr. Acess to Acc.
37% Others
Interpretation: The results shows that approximately 70% respondents use the facility to save their time, and to
have 24 hr. access to their A/c, it is 20 % customer feels convenient to facility, 8% choose the option ―others‖ and
the study tells that respondents found it difficult to access their bank online because of lack of internet knowledge
and connectivity.
2. How often do you use our online services?
Access their A/c
150 121
100 78
35
50 26
0
Daily Weekly Monthly Never
36
3. Online features of Bank of Baroda ―BARODA CONNECT‖
A. Bill Payment:-
Bill Payment Rating Total No.‘s

1 0
2 1
3 3
4 8
5 5
6 65
7 68
Total 150
Bill Payment 5%
0% 1% 2%
3%
1
2
45%
3
4
44%
5
6
7
Interpretation: The most of the customers are really liked the facilities provided by banks as they agree that the
facilities are good for them so they like to avail the E-banking services provided by the banks and the result shows
that approximately 90% respondents are highly satisfied with the e-banking services provided by their bank and
10% respondents are not satisfied with the e-banking services provided by the bank.
37
B. E-Alerts:-
E-Alerts Rating Total No.‘s

1 0
2 0
3 2
4 6
5 3
6 66
7 73
Total 150
0% 0% E-Alerts 4%
1% 2%
1
2
49%
3
44% 4
5
6
7
38
C. Fund Transfer:-
Fund Transfer Rating Total No.‘s

1 0
2 0
3 1
4 7
5 39
6 71
7 32
Total 150
Fund Transfer
0% 1%
0%
5%
21% 1
26% 2
3
4
5
47% 6
7
Interpretation: The most of the customers are really liked the facilities provided by banks but they need the
improvement in the services, they feel that the usage of fund transfer facility is bit complicated, or some of them
were not able to understand the process that‘s why they think so. 47% respondents are satisfied with the e-banking
services provided by their bank and around 30% respondents feel that the change in the services usage is required.
39
D. Stop Payment:-
Stop Payment Rating Total No.‘s

1 0
2 0
3 0
4 6
5 22
6 70
7 52
Total 150
Stop Payment
0% 0% 0%
4%
15% 1
35%
2
3
4
5
46% 6
7
Interpretation: The most of the customers are really liked the facilities provided by banks but they need the
improvement in the services, they feel that the usage of stop payment facility is bit complicated, or some of them
were not able to understand the process that‘s why they think so. 46% respondents are satisfied with the e-banking
services provided by their bank and around 44% respondents feel that the change in the services usage is required.
40
E. Balance Enquiry:-
Balance Enquiry Rating Total No.‘s

1 0
2 0
3 0
4 1
5 1
6 59
7 89
Total 150
Balance Enquiry
0% 0% 0% 1% 1%
39% 2
3
59% 4
5
6
7
41
F. Check Retrieval:-
Check Retrieval Rating Total No.‘s

1 0
2 0
3 0
4 0
5 6
6 81
7 63
Total 150
Check Retrival
0% 0% 0%
0%
4%
1
42% 2
3
4
54%
5
6
7
42
G. Bank Statement:-
Bank Statement Rating Total No.‘s

1 0
2 0
3 0
4 0
5 0
6 69
7 71
Total 150
Bank Statement
0% 0% 0%
0% 0%
1
2
49%
51% 3
4
5
6
7
43
RECOMMENDATIONS
We can see the time is changing and we the passage of time people are accepting technology there is still a lot of
perceptual blocking which hampers the growth it‘s the normal tendency of a human not to have changes work on
the old track, that‘s also one of the reason for the slow acceptance of internet banking accounts.
 Banks should obey the RBI norms and provide facilities as per the norms, which are not being followed by
the banks. While the customer must be given the prompt services and the bank officer should not have any
fear on mind to provide the facilities as per RBI norms to the units going sick.
 Internet banking facility must be made available in all branches of these two Banks.
 Each section of these Banks should be computerized even in rural areas also.
 Personalized banking should be given a thrust as more and more banks areachieving in usual services.
 Covering up the towns in rural areas with ATMs so that the people in those areascan also avail better
services.
 Prompt dealing with permanent customers and speedy transactions without harassing the customers.
 Fair dealing with the customers. More contributions from the employees of the bank. The staff should be co-
operative, friendly and must be capable of understanding the problems of the customers.
 Give proper training to customers for using I-banking.
 Create a trust in mind of customers towards security of their accounts.
 Provide a platform from where the customers can access different accounts at single time without extra
charge.
 Make their sites more users friendly. Customers should be motivated to use I-banking facilities more.
Keeping in view the terms of reference, the recommendations in case of secure-transactions over Internet. A
summary of these recommendations is given below.
1. Technology and Security Standards:
The role of the network and database administrator is pivotal in securing the information system of any
organization. Some of the important functions of the administrator via-a-vis system security are to ensure that only
the latest versions of the licensed software with latest patches are installed in the system, proper user groups with
access privileges are created and users are assigned to appropriate groups as per their business roles, a proper
system of back up of data and software is in place and is strictly adhered to, business continuity plan is in place
and frequently tested and there is a robust system of keeping log of all network activity and analyzing the same.
Organizations should make explicit security plan and document it. There should be a separate Security Officer /
Group dealing exclusively with information systems security. The Information Technology Division will actually
44
implement the computer systems while the Computer Security Officer will deal with its security. The Information
Systems Auditor will audit the information systems.
Access Control: Logical access controls should be implemented on data, systems, application software, utilities,
telecommunication lines, libraries, system software, etc. Logical access control techniques may include user-ids,
passwords, smart cards or other biometric technologies.
Firewalls: At the minimum, banks should use the proxy server type of firewall so that there is no direct connection
between the Internet and the bank‘s system. It facilitates a high level of control and in-depth monitoring using
logging and auditing tools. For sensitive systems, a stately inspection firewall is recommended which thoroughly
inspects all packets of information, and past and present transactions are compared.
Isolation of Dial Up Services: All the systems supporting dial up services through modem on the same LAN as
the application server should be isolated to prevent intrusions into the network as this may bypass the proxy server.
Security Infrastructure: PKI is the most favored technology for secure Internet banking services. However, it is
not yet commonly available. While PKI infrastructure is strongly recommended, during the transition period, until
IDRBT or Government puts in place the PKI infrastructure, the following options are recommended
1. Usage of SSL, which ensures server authentication and the use of client side certificates issued by the
banks themselves using a Certificate Server.
2. The use of at least 128-bit SSL for securing browser to web server communications and, in addition,
encryption of sensitive data likes passwords in transit within the enterprise itself.
Isolation of Application Servers: It is also recommended that all unnecessary services on the application server
such as ftp, telnet should be disabled. The application server should be isolated from the e-mail server.
Security Log (audit Trail): All computer accesses, including messages received, should be logged. All computer
access and security violations (suspected or attempted) should be reported and follow up action taken as the
organization‘s escalation policy.
Penetration Testing: The information security officer and the information system auditor should undertake
periodic penetration tests of the system, which should include:
1. Attempting to guess passwords using password-cracking tools.
2. Attempt to overload the system using DdoS (Distributed Denial of Service) & DoS attacks.
3. Check if commonly known holes in the software, especially the browser and the e-mail software exist.
4. The penetration testing may also be carried out by engaging outside experts (often called ‗Ethical Hackers‘).
Physical Access Controls: Though generally overlooked, physical access controls should be strictly enforced. The
physical security should cover all the information systems and sites where they are housed both against internal
and external threats.
Back up & Recovery: The bank should have a proper infrastructure and schedules for backing up data. The
backed-up data should be periodically tested to ensure recovery without loss of transactions in a time frame as
given out in the bank‘s security policy. Having disaster recovery sites, where backed-up data is stored, should
ensure business continuity. These facilities should also be tested periodically.
Monitoring against threats: The banks should acquire tools for monitoring systems and the networks against
intrusions and attacks. These tools should be used regularly to avoid security breaches.
45
Education & Review: The banks should review their security infrastructure and security policies regularly and
optimize them in the light of their own experiences and changing technologies. They should educate on a
continuous basis their security personnel and also the end-users.
Log of Messages: The banking applications run by the bank should have proper record keeping facilities for legal
purposes. It may be necessary to keep all received and sent messages both in encrypted and decrypted form.
Certified Products: The banks should use only those security solutions/products, which are properly certified for
security and for record keeping by independent agencies (such as IDRBT).
Maintenance of Infrastructure: Security infrastructure should be properly tested before using the systems and
applications for normal operations. The bank should upgrade the systems by installing patches released by
developers to remove bugs and loopholes, and upgrade to newer versions which give better security and control.
Approval for I-banking: All banks having operations in India and intending to offer Internet banking services to
public must obtain an approval for the same from RBI. The application for approval should clearly cover the
systems and products that the bank plans to use as well as the security plans and infrastructure. It should include
sufficient details for RBI to evaluate security, reliability, availability, auditability, recoverability, and other
important aspects of the services. RBI may provide model documents for
Security Policy, Security Architecture, and Operations Manual.
2. Legal Issues
The banks providing Internet banking service, at present are only accepting the request for opening of accounts.
The accounts are opened only after proper physical introduction and verification. Considering the legal position
prevalent, particularly of Section 131 of the Negotiable Instruments Act, 1881 and different case laws, the Group
holds the view that there is an obligation on the banks not only to establish the identity but also to make enquiries
about integrity and reputation of the prospective customer. The present legal regime does not set out the
parameters as to the extent to which a person can be bound in respect of an electronic instruction purported to have
been issued by him. Generally authentication is achieved by security procedure, which involves methods and
devices like user-id, password, personal identification number (PIN), code numbers and encryption etc., used to
establish authenticity of an instruction.
In Internet banking scenario there is very little scope for the banks to act on stop- payment instructions from the
customers. Hence, banks should clearly notify to the customers the timeframe and the circumstances in which any
stop-payment instructions could be accepted.
The banks providing Internet banking service and customers availing of the same are currently entering into
agreements defining respective rights and liabilities in respect of Internet banking transactions. A standard format /
minimum consent requirement to be adopted by banks may be designed by the Indian Banks‘ Association, which
should capture all essential conditions to be fulfilled by the banks, the customers and relative rights and liabilities
arising there from. This will help in standardizing documentation as also develop standard practice among bankers
offering Internet banking facility.
The Consumer Protection Act 1986 defines the rights of consumers in India and is applicable to banking services
as well. Currently, the rights and liabilities of customers availing of Internet banking services are being determined
by bilateral agreements between the banks and customers. It is open to debate whether any bilateral agreement
defining customers rights and liabilities, which are adverse to consumers than what is enjoyed by them in the
traditional banking scenario will be legally tenable. Considering the banking practice and rights enjoyed by
46
customers in traditional banking, it appears the banks providing I-banking may not absolve themselves from
liability to the customers on account of unauthorized transfer through hacking. Similar position may obtain in case
of denial of service.
3. Regulatory and Supervisory Issues
All banks, which propose to offer transactional services on the Internet, should obtainapproval from RBI prior to
commencing these services. Bank‘s application for such permission should indicate its business plan, analysis of
cost and benefit, operational arrangements like technology adopted, business partners and third party service
providers and systems and control procedures the bank proposes to adopt for managing risks, etc. The bank should
also submit a security policy covering recommendations made in chapter-6 of this report and a certificate from an
independent auditor that the minimum requirements prescribed there have been met. After the initial approval the
banks will be obliged to inform RBI any material changes in the services / products offered by them.
RBI may require banks to periodically obtain certificates from specialist external auditors certifying their security
control and procedures. The banks will report to RBI every breach or failure of security systems and procedure and
the latter, at its discretion, may decide to commission special audit / inspection of such banks.
Record maintenance and their availability for inspection and audit is a major supervisory focus. RBI‘s guidelines
on ‗Preservation and Record Maintenance‘ will need to be updated to include risks heightened by banking on the
net. The enhancements will include access to electronic record only by authorized officials, regular archiving of
data, a sufficiently senior officer to be in charge of archived data with well defined responsibilities, use of proper
software platform and tools to prevent unauthorized alteration of archived data, availability of data on-line, etc. If
not available on-line, the system should be capable of making available the data for the same financial year within
24 hours and past data within a period of maximum 48 hours.
Banks should develop outsourcing guidelines to manage effectively, risks arising out of third party service
providers such as risks of disruption in service, defective services and personnel of service providers gaining
intimate knowledge of banks‘ systems and mi utilizing the same, etc. Alternatively, IBA or IDBRT may develop
broad guidelines for use of the banking community.
Inter-bank payment gateways must have capabilities for both net and gross settlement. All settlement should be
intra-day and as far as possible, in real time. It must be obligatory for payment gateways to maintain complete
trace of any payment transaction covering such details like date and time of origin of transaction, payee, payer and
a unique transaction reference number (TRN).
Connectivity between the gateway and the computer system of the member bank should be achieved using a leased
line network (not through Internet) with appropriate data encryption standard. All transactions must be
authenticated using user-id and password. Once, the regulatory framework is in place, the transactions should be
digitally certified by any licensed certifying agency. SSL / 128 bit encryption must be used as minimum level of
security. Adequate firewalls and related security measures must be taken to ensure privacy to the participating
institutions in a payment gateway. Internationally accepted standards such as ISO8583 must be used for
transmitting payment and settlement messages over the network.
47
The credit risk associated with each payment transaction will be on the payee bank. The legal basis for such
transactions and settlement will be the bilateral contracts between the payee and payee‘s bank, the participating
banks and service provider and the banks themselves. The rights and obligations of each party must be clearly
stated in the mandate and should be valid in a court of law.
It will be necessary to make customers aware of risks inherent in doing business over the Internet. This
requirement will be met by making mandatory disclosures of risks, responsibilities and liabilities to the customers
through a disclosure template. The banks should also provide their latest published financial results over the net.
Hyperlinks from banks‘ websites often raise the issue of reputational risk. Such links should not mislead the
customers in to believing that they sponsor any particular product or any business unrelated to banking. Hence,
hyperlinks from banks‘ websites should be confined to only those portals with which they have a payment
arrangement or sites of their subsidiaries or principals. Hyperlinks to banks‘ website from different portals are
normally meant to pass information pertaining to purchases made by banks‘ customers in the portal. Banks must
follow the minimum recommended security precautions while dealing with such request, which includes customer
authentication through user-id and password, independent confirmation of transaction by the customer and
authorizing payment, use of SSL and 128-bit encryption for all communication both with the portal and customer
browser terminal, etc.
48
LIMITATIONS
Every research is conducted under some constraints and this research is not an exception.
Limitations of this study are as follows: -
 As a research is based on a sample, therefore, the findings may not reveal the factual information about the
research problem, though an utmost care will be taken to select a truly representative sample.
 There may be some bias in the responses of the respondents, which cannot be ruled out fully.
 Sudden change in the e- banking practices during the course of research can affect the results.
 The study is limited to areas of Rajnagar only.
 The sample size of only 150 was taken from the large population for the purpose of study, so there can be
difference between results of sample from total population.
 People were reluctant to go in to details because of their busy schedules.
 Merely asking questions and recording answers may not always elicit the actual information sought.
 Due to continuous change in environment, what is relevant today may be irrelevant tomorrow.
49
CONCLUSIONS
In this paper a new conceptual perspective on how to measure user experience in the Internet banking context was
introduced. The user experience in Internet banking was a construct of three underlying dimensions:
1) Satisfaction,
2) Appearance, and
3) Ease of use.
In addition, when markets of electronic services mature a good user experience of customer could be a competitive
advantage, with which companies could differentiate their products and services. From this perspective, it could be
argued that evaluation of user experience and different user experience scales will be likely needed in the future.
This study attempted to identify key quality attributes of Internet banking services by analyzing Internet banking
customers & their comments on banking experience. The findings of this study show that despite of many
advantages of online banking. People still consider it as an alternative for analyzing their bank records. Although
every bank today provides the facility of online banking but most of people use it only once a month. This reason
is that in case of Internet banking interpersonal interaction with customers is seldom possible. Identification &
measurement of customer‘s expectations of the Internet banking services provide a frame of reference & their
related quality dimension. The main factors, which persuade people to use online banking, are comfort &
convenience & the facility, which attracts them most, is quality & quantity of information. Therefore the
implementation of quality initiatives should begin with defining customer‘s need & preferences & their related
quality dimensions
There is still a lot needed for the banking system to make reforms and train their customers for using internet for
their banking account. Going through the survey the main problem lies that still customer have a fear of hacking of
accounts and thus do not go on for internet banking. Banks are trying their level best by providing the best security
options to the customers but then to there is lot of factors which betrays a customer from opening an internet bank
account.
Banks are providing free Internet banking services also so that the customers can be attracted. By asking the bank
employs we came to know that maximum numbers of Internet bank account holders are youth and businessman. E
Banking is an innovative tool that is fast becoming a necessity. It is a successful strategic weapon for banks to
remain profitable in a volatile and competitive marketplace of today. If proper training should be given to
customer by the bank employs to open an account will be beneficial secondly the website should be made
friendlier from where the first time customers can directly make and access their accounts. In future, the
availability of technology to ensure safety and privacy of e-transactions and the RBI guidelines on various aspects
of internet banking will definitely help in rapid growth of internet banking in India.
50
BIBLIOGRAPHY
 Bailey, J., & Pearson, S. (1983). Development of a Tool for Measuring and Analyzing Computer User
Satisfaction. Management Science, 29(5), 530-545.
 Beckett, A., Hewer, P., & Howcroft, B. (2000). An exposition of consumer behavior in the financial
services industry. The International Journal of Bank Marketing, 18(1).
 Daniel, E. (1999). Provision of electronic banking in the UK and the Republic of Ireland. International
Journal of Bank Marketing, 17(2), 72-82.
 DeVellis, R. (2003). Scale Development: theory and applications (2 ed. Vol. 26). California: Sage
Publications.
 Hadden, R., & Whalley, A. (2002). The Branch is dead, long live the Internet! (or so you'd have
thought if we hadn't listened to the customer). International Journal of Market Research, 44(3), 283.
 Ives, B., Olson, M., & Baroudi, J. (1983). The Measurement of User Information Satisfaction.
Communications of the ACM, 26, 785-793.
 Johnson, G. (1996). Exploring Novel Banking User Interfaces: Usability Challenges in Design &
Evaluation. IEE Colloquim on Interfaces, 126(3), 1-3.
 Joseph, M., McClure, C. And Joseph, B. (1999). Service quality in the banking sector: the impact of
technology on service delivery. International Journal of Bank Marketing, 60, 50-68.
 Lewis, J. (2002). Psychometric Evaluation of the PSSUQ Using Data from Five Years of Usability
Studies. International Journal of Human-Computer Interaction, 14(3&4), 463-488.
 Otter, M., & Johnson, H. (2000). Lost in hyperspace: metrics and mental models. Interacting with
Computers, 13, 1-40.
 Sheshunoff, A. (2000). Internet Banking - an update from frontlines. ABA Banking Journal, 92(1)
51
APPENDIX
Questionnaire # 1
Customer Satisfaction Survey ―INTERNET BANKING‖
Name- _________________________________ Location-________________________ Date-
Personal Profile:
1. How old are you?
Below 25 years old 25 – 30 years old
31 – 35 years old 36 – 40 years old
41 – 45 years old 46 years old and above
2. What is your gender?
Male Female
3. What is your qualification?
Matriculation Sr. Secondary
Diploma Bachelor of Degree
Master Doctor of Philosophy (PhD)
4. What is your current profession?
Priv./ Govt. Sector employee Self employee
Student Others
5. What is your monthly income?
Less than Rs 20,000 Rs 20,000 – Rs 35,000
Rs 35,000 – Rs 50,000 Rs 50,000 – Rs 65,000
Rs 65,000 and above
6. How many banks are you dealing with?
1 2
3 4
52
5 and above
Name of the Banks-_______________________________________________________
Internet Banking Questionnaire
1. How long have you been using the Internet Banking?
Less than 1 month 1 to 6 months
7 to 12 months More than 1 year
2. How frequently do you use Mobile-banking services per month (for example, balance inquiry, fund transfer between accounts)?
Never 1 to 4 times
5 to 8 times 9 to 12 times
Over 12 times
3. How frequently do you visit your bank branch per month?
Never 1 to 4 times
5 to 8 times 9 to 12 times
Over 12 times
4. How frequently do you use an Automated Teller Machine (ATM) per month?
Never 1 to 4 times
5 to 8 times Over 9 times
5. What is the main reason that you typically visit your bank branch (please choose the single most important reason)?
Make a deposit Investment advice
Balance inquiry Cash Withdrawal Other
6. Have you purchased any product through Internet Banking?
Yes No
7. Approximately how many times have you purchased any product through the Internet in the last 12 months?
Never 1 to 4 times
5 to 8 times Over 9 times
53
This survey is designed to understand Internet users‘ perspectives on Internet banking, their experience with Internet banking, and their expectations of
Internet banking services. Only summary measures and conclusions from this survey will be reported. Your participation in this survey is greatly
appreciated.
-Thank You-
Questionnaire # 2
Customer Satisfaction Survey
“INTERNET BANKING”
Name- _____________________________________ Location-________________ Date-
Dear customer,
We continually strive to improve our products and services. Please complete this survey about our Internet-Banking to help
us serve you even better in the future.
1* What were your reasons for choosing our online banking service? Please select all that apply.
Convenience
To save time
24 hour access to accounts
Other
2* How often do you use our online services?
Daily
Weekly
Monthly
Never
3* Which online features do you use regularly? Please select all that apply.
Pay bills
Make an account inquiry
Transfer funds between accounts
Wire Transfers
Process payroll
Order check books
54
Other
4* Please rate the following online features of Bank of Baroda (e-banking)...
Bill payment
1 2 3 4 5 6 7
Very Bad Excellent
E-alerts
1 2 3 4 5 6 7
Very Bad Excellent
Wire Transfer
1 2 3 4 5 6 7
Very Bad Excellent
Stop Payment
1 2 3 4 5 6 7
Very Bad Excellent
Balance Inquiry
1 2 3 4 5 6 7
Very Bad Excellent
Check Image Retrieval

1 2 3 4 5 6 7
55
Very Bad Excellent
Retrieving Bank Statement

1 2 3 4 5 6 7
Very Bad Excellent
Your participation in this survey is greatly appreciated.
-Thank You-
56

Customer Satisfaction Survey Internet Banking Bank of Baroda by Amit Dubey

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―Customer Satisfaction Survey‖

Summer Internship Project Report

Under the Guidance of:

Industry Guide Faculty Guide

Students name: Signature:

Table 2- Gender Ratio (Page No. 24)

Table 3- Age Group (Page No. 26)

Table 4- Satisfaction Analysis (Page No. 27)

Table 5- Reason to Choose "Online-Banking" (Page No. 28)

Table 6- Customers Accessing their A/c (Page No. 28)

Table 7- Bill Payment (Page No. 29)

Table 8- E-Alerts (Page No. 30)

Table 9- Fund Transfer (Page No. 31)

Table 10- Stop Payment (Page No. 32)

Table 11- Balance Enquiry (Page No. 33)

Table 12- Check Retrieval (Page No. 34)

Table 13- Bank Statement (Page No. 35)

Chart 1- Growth rate of Baroda-Connect (Page No. 23)

Chart 2- Gender Ratio (Page No. 24)

Chart 3- Age Group (Page No. 26)

Chart 4- Satisfaction Analysis (Page No. 27)

Chart 5- Reason to Choose "Online-Banking" (Page No. 28)

Chart 6- Customers Accessing their A/c (Page No. 28)

Chart 7- Bill Payment (Page No. 29)

Chart 8- E-Alerts (Page No. 30)

Chart 9- Fund Transfer (Page No. 31)

Chart 10- Stop Payment (Page No. 32)

Chart 11- Balance Enquiry (Page No. 33)

Chart 12- Check Retrieval (Page No. 34)

Chart 13- Bank Statement (Page No. 35)

INTERNET BANKING VERSUS TRADITIONAL BANKING

DISADVANTAGES OF INTERNET BANKING

HOW E-BANKING CAN EASE YOUR LIFE

INTERNET BANKING IN INDIA

THE INDIAN SCENARIO

Objective of Bank of Baroda

Global Presence of Bank Of Baroda:

Branch Network of BOB in India

Branch Network Overseas

Total Global 2897

Wide global network

Competitors: SBI, HDFC, ICICI, PNB, HSBC etc.

The values of the bank:

Management Team- The core strength of Bank.

Technology and Tech Initiatives

Corporate Banking and Credit

The Bank Of Baroda bank family

Wholesale Banking Deposit Products

SME Banking Loan Products

Retail Banking ATM / Debit Cards

Rural/Agri Banking Internet Banking

Wealth Management Rapid Funds2India

Demat Baroda e-Trading

NET BANKING: Baroda-ConnectisBank Of Baroda‘s Internet Banking service. Providing up-to-the-second

BOB Net Banking Secure Access

Third Party Transfer?

Third Party Transfer can be initiated:

For issuance of Third Party Demand Drafts from your account.

Data Table for the Estimation of ―Growth Rate‖ & ―Forecasting‖

Here two Surveys are

Customer Satisfaction Survey 1

Customer Satisfaction Survey 2

(*Note: - Questionnaire are attached in APPENDIX at the last)

Name- _________ Location- Date-

Name- _____________________ Location- Date-