To analyze the awareness of internet banking in Faridabad area with respect to HDFC bank and ICICI bank


Vijit Chaturvedi
ICFAI National College


Technological advancements have brought about various changes in the way in which the various products and services are delivered to the customers by the bank. Technology is expanding rapidly these days and the most popular services of banks are also given information technology as internet banking, mobile banking etc.

Internet banking being customer effective facilitates anytime anywhere banking helps in expansion of customer base and geographical reach. It adds to choice of customers to use multiple channels of banking depending on need and urgency.

This paper attempts to find out awareness among customers for internet banking in Fakirabad area with respect to HDFC and ICICI bank by using primary and secondary data. By this we will be benefited by finding their perception, demand, suggestions and complaints from such services.

Objectives of study

Primary objectives

To study the awareness of internet banking among the customers of ICICI and HDFC banks in Faridabad area.

Secondary Objective

1) To analyze reasons for introduction of internet banking
2) To analyze awareness among customers using internet banking.
3) To compare the difference in services of the banks
4) To analyze the level of security among customers in using these services
5) To analyze the popularity of the internet banking service in customer s as users and non –users along with reasons. (Reasons of not using)

Literature Review

A new review by Tower group of 10 top US e- banking web sites evaluated several aspects of core online banking components. Group found that there is difference in terms of actual functionality and usability. among different banks and their services.

The UK's first home online banking services were set up by the Nottingham Building Society (NBS) in 1983 ("History of the Nottingham". Retrieved on 2007-12-14.). The system used was based on the UK's Prestel system and used a computer, such as the BBC Micro, or keyboard (Tan data Td1400) connected to the telephone system and television set. The system (known as 'Home link') allowed on-line viewing of statements, bank transfers and bill payments. In order to make bank transfers and bill payments, a written instruction giving details of the intended recipient had to be sent to the NBS who set the details up on the Home link system.

An American study conducted last year by Booz-Allen projects that by the year 2000, 16 million US households will be using Internet banking. While these numbers do not appear to be significant as compared to the total population, each Internet user is projected to be 50-250% more profitable than the average banking customer. It is expected that these Internet customers will be some of the banking system's most profitable customers representing close to 30% of all retail banking profits. The study projects that by 1999, 1,500 banks will have Internet Web sites and at least 500 of these banks will be offering full-fledged Internet banking services.

In 2001 Microbanker send detailed questionnaire to the leading vendors of internet banking software27 companies responded with information on thirty programs the aggregate outcome of the outcome was that almost all the companies have developed functions for internet banking and have inbuilt feature to aid with one to one marketing on the web.

According to top 10 institutions almost 23 million consumers use their services to bank online which could be clarified by the following table -


Bank Name
( Retail bank only )

Estimated total customer base

Current number of banking users

Rate of internet banking use (%)

Online banking service provider

Bank of America




In –house

Wells fargo




In –house





In –house /conilian

Fleet boston




In –house

Washington mutual




Financial fusion

US bankcop




In house / financial fusion





Financial fusion

J.P moprgan chase





Bank one




In –house

Citi bank




In –house

Research methodology

In this research with a sample size of 50 (Both employees and customers) data in form of questionnaire was collected in terms of different factors influencing the use of internet banking.

Internet banking is considered as dependent variable and awareness among customers was considered as independent variable. The geographical area chosen for collecting data was Faridabad area by simple random sampling data was collected and analyzed and only the employees and customers of HDFC AND ICICI bank were taken as samples.

An introduction to internet banking

Internet banking , sometimes called online banking, is an outgrowth of PC banking. Internet banking uses the Internet as the delivery channel by which to conduct banking activity, for example, transferring funds, paying bills, viewing checking and savings account balances, paying mortgages, and purchasing financial instruments and certificates of deposit. An Internet banking customer accesses his or her accounts from a browser— software that runs Internet banking programs resident on the bank's World Wide Web server, not on the user's PC. NetBanker defines a " true Internet bank" as one that provides account balances and some transactional capabilities to retail customers over the World Wide Web. Internet banks are also known as virtual, cyber, net, interactive, or web banks.

To date, more banks have established an advertising presence on the Internet— primarily in the form of informational or interactive web sites—than have created transactional web sites. However, a number of Banks that do not yet offer transactional Internet banking services have indicated on their web sites that they will offer such banking activities in the future.

Although Internet banks offer many of the same services as do traditional brick-and-mortar Banks, analysts view Internet banking as a means of retaining increasingly sophisticated customers, of developing a new customer base, and of capturing a greater share of depositor assets. A typical Internet bank site specifies the types of transactions offered and provides information about account security.

Because Internet banks generally have lower operational and transactional costs than do traditional brick-and-mortar banks, they are often able to offer low-cost checking and high-yield Certificates of deposit. Internet banking is not limited to a physical site; some Internet banks exist without physical branches, for example, Telebank (Arlington, Virginia) and Banknet (UK). Further, in some cases, web banks are not restricted to conducting transactions within national borders and have the ability to make transactions involving large amounts of assets instantaneously. According to industry analysts, electronic banking provides a variety of attractive possibilities for remote account access, including:

  • Availability of inquiry and transaction services around the clock;
  • worldwide connectivity;
  • Easy access to transaction data, both recent and historical; and
  • " Direct customer control of international movement of funds without intermediation of financial institutions in customer's jurisdiction."

Internet banking is the technology that allows banking customers to do the things they would normally do at their banks from comfort of home with a connection to internet. In the year 2000 an estimated 14 million American banked online according to per internet and American life. By 2004 some 53 million Americans were performing online banking transactions.

Features of Internet banking

It is the most convenient and powerful way to manage account

It can be accessed anytime from anywhere to give complete control over your finances.

It is secure using industry standard technologies and infrastructure it gives peace of mind also. These virtual banks can offer higher interest rates than their traditional counterparts 

All the key features of Internet Banking are -:

    • Balance and transaction history search
    • Transaction history export
    • Order new statements 
    • Mobile banking
    • Transfers
    • Pay bills with BPAY
    • Receive bills online with BPAY View
    • Pay Anyone payments
    • Multi Payments
    • Daily Limits Packages for BPAY, Pay Anyone and Multi Payments
    • SMS banking services
    • Extra online security with the BOQ Security Token

Internet banking – Development and prospects

Among institutions offering internet banking services large banks are more likely than small banks to offer broad range of services among the banking services. They tend to rely less on interest yielding activity and deposits than non- interest banks do. An exception to superior performance of internet banks versus non-internet banks were de novo internet banks which were less profitable and efficient than non internet de novo. Large banks have more aggressive plans to offer business internet services in the future than smaller institutions.

Factors offered by ICICI bank for internet banking

  • Balance enquiry and statement
  • Transaction history
  • Transfer fund online
  • Card to card fund transfer
  • Use debit card online
  • Prepaid mobile recharge
  • Paying utility bills
  • Open FD and RD
  • Subscribe for mobile banking
  • Link bank account to ATM
  • Lock / activate debit cards /ATM
  • Request a cheque book
  • Stop payment

Features offered by HDFC bank for internet banking

  • View account balances and statements
  • Transfer funds between accounts
  • Request stop payments
  • Pay bills
  • Create fixed deposit online
  • Order cheque books

Results of empirical analysis

With reference to the topic " Analyzing awareness among customers about internet banking with reference to customers and employees in Faridabad area of HDFC and ICICI bank'' through open ended questionnaire which was distributed and after the data analysis it was concluded that customers are behaving differently according to their income level, professional level.

Security is the most important factor complaint by most customers hat is the process is in threat in absence of security in internet banking.

1) From the pie chart it is clear that 93%customers are aware of the services of internet banking and rest 7% are unaware about it till now

2) With consideration to knowledge about the service what is the source from where people come to know about internet banking -61% customers come to know about internet banking from banks itself and 25% from advertisement and 10% from reference and rest 8% from others.

3) With reference to users and non- users 65% people are using it and 35% people do not using it.

4) With consideration to services availed by customers 45% use internet ban in for transactions 24% for savings 30% for money transfer and 21% for others

5) Most attractive factors which have been chosen by the customers are 75%customers are attracted by easy transaction, 25% for information and other 9%are for transfer and security.

6) In the rating of security factors which has been provided in Internet banking to its customers are as 31% for good, 29% for very good, 16% for average and others having same ratings 10%-10% for both fair and poor

7) According to servicemen, wives, student and business. about awareness about internet business according to housewives 75% are aware about internet business and 25% are not. Servicemen and students are knowing 100% about Internet business and businessmen have 83% and 17% ratio of both awareness and non – awareness of Internet business

8) With reference to the source of advertisement through which people come to know about internet banking banks become the maximum ratings as a source of information of all types of customers with 78-55-67-40% of housewives, servicemen students and business respectively `

9) With reference to the users and non- users of internet banking  wives 50-50%, servicemen 64-36%, student40-60% and businessmen use 100%

10) With reference to type of services availed by people as per the profession housewife using 50-50%of both transaction and money transfer and servicemen have ratio of 50-26-26-9% for transaction, savings, money transfer and others respectively. Students are 100% depend on Internet banking for their transaction purpose whereas business class person have ratio of 33-33-33-17% respectively for services of internet banking

11) With reference to the most attractive service for customer's easy transaction ratio are more than any others

12) Ratio of level of security offered by their banks in internet banking it was revealed that maximum customers are satisfied by security level provided in internet banking


1) In Faridabad area there are mostly customers who are aware of internet banking with 93%in which students got the highest ranking as 100% students know about this service whether they are not using it or not. Services got second position in awareness of its various services.

2) In the ratio of promotion the bank itself got he highest position as the customers are directly connected with their banks.. Second position was that of advertisement through which people can know.

3) In the users ratio of internet banking 65% of customers are using this service in which business class is mostly dependent as it provides end number of services within less time consuming second position goes to service class as they also lack time due to 9 to 5 working hours of their own.

4) The services that are mostly used by maximum customers are transactions and others (Online trading, bill payment)

5) Most attractive factor in this service is easy transaction and after that information through which one check his account very easily

6) Although there is some feeling of insecurity also but still due to the multi- features service and business class prefer it. 

Shortcomings told by customers

Apart from the various features and benefits there are certain shortcomings also like

a) Limited criteria in online trading

b) Delay in fund transfer

c) When server downs the whole process becomes handicapped

d) Technical problems occur sometimes which affect customers badly

e) Late processing also sometimes in some services create a hurdle causing delay

f) Late security level in the service to cope with hacking  problem


1) All the complaints felt by the customers should be considered with seriousness and solution based approach to keep them satisfied and retain them in long run

2) The bank should extend their tie – up contracts with other various institutions whether financial or non – financial for convenience of its customers

3) Banks should extend the technology which is used in internet banking in order to remove the difficulties.

4) Bank should provide the services in different languages.


The basic objective of my research was to analyze the awareness among customers for internet banking in Faridabad area. it gives direction to research tools, research types and techniques. Although the findings reveal that people know about the services but still many people are unaware and many of them are non – users so the bank should by promotion try to retain the customers. Banks should look forward to have some tie – ups with other financial institutions to increase the service base.



Advertising express (July 2008, pg 47)
The ICFAI journal of Japanese bank December 2007, pg 37 )
Nagesh TR " Internet banking, A regulatory Framework "( August 2005, pg 54)


Vijit Chaturvedi
ICFAI National College

Source: E-mail November 18, 2008


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