Abstract
With the passage of time banking sector has witnessed tremendous changes. Banks
are introducing innovative services to suit the customer requirement. Few years
back banking transactions were tedious and took long time, but with the passage of
time things have changed and every transaction is now just a clicked away. The
New Age Banking / Modern Banking based on automation and internet made the
banking sector really dynamic to suit the customer requirement, now banks are
giving customize solutions to the customer by advising on mutual funds, insurance
related investment advisory and other allied banking relatedservices. Present day
banking is not limiting to acceptance of money deposit and withdrawals rather
focus on customization and need based products. The research paper studied about
the preference of customers towards modern banking over traditional banking with
special reference to Dena Bank(Now Bank of Baroda) in Raipur city of
Chhattisgarh. Inthe present studywe have taken sample of 175 DenaBank
(NowBank of Baroda)customers out of which 160 responses were taken for
analyzing and interpretation of data. The responses of customers were measured
through Five–Point Likert Scale. The reliability of data have been tested through
statistical tools like, mean, standard deviation and further t- test, standard error
being used to reach to the accuracy. The findings of the study suggest that modern
banking is now more popular among the customers of Dena bank(Now Bank of
Baroda) rather than traditionally banking techniques.
Keywords: New age banking, Traditional banking, Dena bank.
Introduction:
Banks are those financial institutions which plays very important role for the
development of the country’s economy. In recent last few decades banks have
many crucial innovative changes took place. Traditionally bank itself deals with all
their operations and controls transactions. In traditional banking customers
personally visit to branch of banks, that’s why it was called as branch banking.
Today not only in urban area but in rural area also net banking is famous among
the customers. This facility is availed by the customers and transparency is made
between the bank and customers regarding the transactions. Now this banking
service is not only “nice to have” but it becomes “need to have” among the
customers. These services are not only availed by customers for home, but also
from anywhere and at everywhere without any boundation of border. Modern
banking techniques are being used with the help of ATM cards, credit cards, online
banking, mobile banking etc. currently banking role is being totally changed with
innovative practices. Various novelties took place with the enhancement of modern
banking. Customers are more attracted towards digitalization through modern
banking. From last two decades banks are being modifying their services for
customers. Now banks are no more branch based banking, it has become a
customer oriented and banks are trying to provide additional services through
various different channel like, credit cards, ATM, net banking, mobile banking,
mobile wallet etc. All these transactions have been reduced and it provides
customers an improved services. Among various different channels of delivering
services modern banking had became most popular and convenient mode of
banking for customers.
Review of Literature:
Shet R. Aruna (2015), in her study “Technological Innovations in Indian Banking
Sector”, as now banking sector has become more stronger for customers as
compare to earlier with an improved technology with low cost. Today banks are
more successful to understand the customer’s needs in better way.
SikkaSanchit&VenkataSrinathUpadrasta, through their study “Innovation in
Banking Products and Services”, finds that banks provide more innovative
products and services to their customers. Banks now tries to meets the desires of
customers. As it is future oriented and banking are becoming more user friendly,
convenient and personal for the users with less effort.
Jindal Shubhara (2015), made an attempt to study of “E-Banking Scenario in
India” as e-banking has a bright future in India. Younger generation will adopt it
more rapidly will be satisfied with technological development in banking sector
and for them it is most preferable mode of banking.
Singh Inderpal&BhallaRajini, their study is based on responses of selected
sample of 53 users as respondents. “Internet Banking and Impact on Traditional
Banking Services” findings revealed by them that there is significant impact on the
traditional banking services. As study was done on certain variables like gender,
marital status, education, profession, income are more significant in using internet
banking.
Sharma Sonia (2016), “A Detail Comparative Study on E-Banking VS traditional
Banking”, through their study they finds that users of internet banking are more
safety concerns for accessing their daily accounting activity. It is beneficial for its
low charges and also suits all the requirements of customers. It has an efficiency to
control risks.
VyasShilpan, the author in their study concludes that internet banking is more
advantageous than of traditional banking. At cheapest rate banks provides their
services to customers. All the risks are being controlled through IT system.
Research Gap:-
Since, the many researchers studied about the e-banking growth, its innovative
services, and its impact over traditional banking including the various factors like
gender, income, education with different advantage of e-banking. No research
work on Dena Bank (Now Bank of Baroda) regarding new age banking and
traditional banking was done in the past.
Objectives of the study:-
To study the preference towards internet banking over traditional banking.
To study the customer’s attitude towards modern banking over traditional
banking.
Scope of the study: –
The scope of this research study is confined with the factors influencing the
preference for mode of banking among Dena bank (Now Bank of Baroda)
customers in Raipur city. There are enormous banks of private and public
sector in urban as well as rural sector doing banking transactions. Raipur is
called as metropolitan city of India, mainly in C.G.
Research Methodology:-
Collection of data is done through both primary as well as secondary sources.
Primary data have been collected through questionnaire and simple random
sampling method is used to select the customers as respondents for this research.
Secondary data are collected from various books and journals, from banks reports,
magazines and through websites. The questionnaire was prepared and distributed
among customers of Dena bank (Now Bank of Baroda) for gathering the required
information. The convenience sampling method used for taking the sample size of
175 customers as respondents. The statistical tools implemented for testing
hypothesis are t-test, mean, standard deviation and standard error to draw results.
Sample Size:-
The sample unit for this research study is 175 customers from the study area.
Researcher studied to give equal importance to both male and female customers
choose from Dena bank (Now Bank of Baroda). Among which 160 responses are
used for study and analyzing, in which 96 male and 64 female customers were
taken as respondents. Out of 175 customers 15 customers were neutral, they didn’t
respond.
Limitations of the study:-
a. Only Dena bank (Now Bank of Baroda) customers are taken for this study.
b. The results of this study may vary if the sample size will change.
c. Interpretation of data is done on collected responses from customers.
d. Some customers had become neutral for giving information.
e. As the area was limited in Raipur city.
Hypothesis:-
There is significant difference between the usage of modern bankingand
traditional banking among the customers of Dena bank (Now Bank of
Baroda).
There is significant difference between male and female customers using
modern banking and traditional banking.
Data Analysis and Interpretation:
Table-1 Customers of different age group
Age Group
Traditional
Banking
Modern
Banking
Mean Mean
Up to 20 33.18 78.15
20-30 56.08 71.51
30-40 42.19 68.38
40-50 71.12 62.17
50 &above 59.4 49.06
Since from the above table it can be observed that traditional banking is more
popular among the age group customers of 40-50 years of age 27% are as users
where modern banking is more famous among the customer’s upto-20 years of age.
Table-2 Customers of different qualification
Educational
Qualification
Traditional
Banking
Modern
Banking
Mean Mean
Illiterate 49.96 67.85
Upto + 2 46.89 63.32
Graduates 39.01 68.73
Post Graduates 35.48 75.09
Professionals 32.41 79.07
The above description clarifies that illiterate customers are more as the users of
traditional banking as incase of Modern banking professionals as younger
generation are the regular users of it as 22% of customers.
24%
21%
21%
19%
15%
Modern Banking
Up to 20
20-30
30-40
40-50
50 &above
25%
23%
19%
17%
16%
Traditional Banking
Illietrate
Upto + 2
Graduates
Post Graduates
Professionals
19%
18%
20%
21%
22%
Modern Banking
Illietrate
Upto + 2
Graduates
Post Graduates
Professionals
13%
21%
16%
27%
23%
Traditional Banking
Up to 20
20-30
30-40
40-50
50 &above
Parishodh Journal
Volume IX, Issue III, March/2020
ISSN NO:2347-6648
Page No:5131
Table-3 Customers of different income group
Income Group Traditional Banking Modern Banking
Mean Mean
Upto 20000 47.66 57.5
20000-40000 57.86 63.18
40000-60000 43.23 75.85
60000-80000 49.72 76.13
80000 & above 48.09 64.57
From the above table it is clear that majority of customers Rs.40000-60000 are
more attached towards traditional banking where as Rs.60000-80000 income group
customers i.e. 23% users uses modern banking.
Table-4 Customers of different occupation
Occupation
Traditional
Banking
Modern
Banking
Mean Mean
Professional 59.85 69.13
Self-Employers 65.29 70.38
Government Employees 43.82 62.76
Private Employees 34.23 68.07
Business Persons 37.15 76.67
Others 46.89 65.33
0%
17%
19%
22%
23%
19%
Modern Banking
Upto 20000
20000-40000
40000-60000
60000-80000
80000 & above
0%
19%
23%
18%
20%
20%
Traditional Banking
Upto 20000
20000-40000
40000-60000
60000-80000
80000 & above
Majority of government employee’s i.e.23% are regular users of traditional
banking, business persons are more user friendly towards modern banking for their
transactions i.e. with 19%.
Desire towards Using Traditional Banking
Serial No. Variables Mean Rank
1 Illiterate 5.23 I
2 It is evident for slip 4.23 II
3 Bulk transactions 1.98 VII
4 Feel comfortable 2.58 III
5 Sense of security 2.47 IV
6 Mistakes can be avoid 1.23 VIII
7 Easily update 3.05 VI
8 Unavailability of Technology 3.98 V
21%
23%
15%
12%
13%
16%
Traditional Banking
Professional
Self-Employers
Government Employees
Private Employees
Business Persons
Others
17%
17%
16% 15%
19%
16%
Modern Banking
Professional
Self-Employers
Government Employees
Private Employees
Business Persons
Others
Desire towards using of traditional banking services illiterate is in top list as with
(5.23), followed with evident for slip as (4.23), technology unavailability in most
of the areas (3.98), easily customers can be updated through banks staff (3.05), it is
comfortable for all types of customers as with (2.58), in this customers feel safe
and secure with personal contact with the staff, bulk transactions can be done
(1.98), by avoiding mistakes (1.23).
Desire towards Using Modern Banking
Serial No. Variables Mean Rank
1 247 Hours Service available 4.98 I 2 Quick way transactions 4.67 II 3 Low charges for transactions 4.2 III 4 Not required to visit branch 3.68 IV 5 Feel comfortable 3.49 V 6 Can be access at anywhere 3.15 VI 7 Easy way to access 3.11 VII 8 Can use at free time also 2.98 VIII 9 At emergency also it available 2.85 IX 10 Protected through pin 2.79 X 11 Past transactions can be easily check 1.21 XI 12 Transfer money to its destination can be known 1.1 XII 21% 17% 8% 11% 10% 5% 12% 16% Desire Towards Using Traditional Banking Illiterate It is evident for slip Bulk transactions Feel comfortable Feel safe and security Mistakes can be avoid Easily update Unavailiability of Technology Parishodh Journal Volume IX, Issue III, March/2020 ISSN NO:2347-6648 Page No:5134 Desire towards Using Modern Banking Desire towards using modern banking services on various aspects, it is available on 247 hrs. services that is ranked at (4.98), transactions can be quickly
done (4.67), with low charges (4.20), there is no need to wait for queue (3.68), not
required to visit on branch (3.49), it can be operated from anywhere (3.15), it can
be easily access by customers with one click (3.11), unlimited transactions can be
operated by our self (3.09), banking services can be used in free time also (2.98), at
the time of urgency the transactions are being possible (2.85), it is fully protected
with the help of pin, previously accounts transactions can easily checked (1.21),
transit of money can be viewed through it (1.10).
H1: There is significant difference between the usage of modern banking and
traditional banking among the customers of Dena bank.
0 1 2 3 4 5 6
24*7 Hours Service available
Quick way transactions
Low charges for transactions
Not requried to visit branch
Feel comfortable
Can be access at anywhere
Easy way to access
Can use at free time also
At emergency also it available
Protected through pin
Past transactions can be easily …
Transfer money to its destination …
Series1
Table-5Results of male and female customers desires to use the banking
facility.
Variables Number Mean SD t – value S.De
Male 96 36 19.42 1.984 3.1624
Female 64 34 11.07
Since the computed value of t (1.984) which is less than its critical value
(2.262) the hypothesis is correct. From the above it is seen that the differences in
the opinions of both the variables is at significant level. Hence it can be concluded
that male customers are more users friendly towards the use of modern banking as
rather than traditional banking. They give more importance to modern banking.
H2: There is significant difference between male and female customers using
modern banking and traditional banking.
Table-6 Customers desire towards the use of traditional banking and modern
banking.
Variables Mean S.D
Traditional Banking 45.09 6.15
Modern Banking 77.9 9.59
Since net banking (77.90) and traditional banking (45.09) through which it is clear
that customers are given more importance to modern banking rather than
traditional banking.
Through it is understood that customers are very close to modern banking
technology. Cost and time are major cause for preference of new age banking.
Hence, modern banking is given more priority in this study as compare to
traditional banking.
Reasons for switching from Traditional Banking to E banking services / New
Age Banking services / Modern Banking Services:-
In the last 5 years a drastic change took place in banking sector which made
customer to shift from traditional Banking to New Age Banking Services / Modern
Banking Services.
- Banking transactions in olden days took lot of time, customers took holidays
to do their banking transactions, transferring money especially interbank
outstation money transfer took nearly 3 days and clearing of outstation
cheques took more than 3 days. - In traditional banking services, customers had to stand in long queues to do
their banking transactions and banking transaction procedures were tedious
and lengthy. - One of the limitation in traditional banking services transaction were, it was
possible only in banking hours, specially printing of passbooks, bank
statements, balance enquiry now it is possible anytime through internet
banking and mobile banking. - Another reason for shifting from traditional banking to modern banking
services is much of the time, energy and money spent on visiting bank
branches for doing the banking transaction and customers today have hardly
free time. - In traditional banking services bank staff have a limitation to attend and
resolve the customer’s issues. Now customer care, online chat and many
other services are available with the bank to resolve customer issue.
Findings:-
Net banking is a modern age banking system of this era, customers of Dena banks
(Now Bank of Baroda) find it more convenient and easy in comparison to
traditional banking as the transaction cost being charged is low.
The overall sample selected for the study are 175 out of which 160 responses
were taken for analysis, they were categorized as 96 males and 64 female
customers.
In our research study we found that customers belong to age less than 20
years and aged 20-30 years which represents middle aged person and youth
are the major users of modern banking services.
Majority of customers responded that net banking facility is faster and
convenient, 24*7 available facility for transactions is one of the major
reason for choosing Dena bank (Now Bank of Baroda) e- banking services.
Maximum customers have strongly agreed and satisfied with modern
banking services provided by Dena bank (Now Bank of Baroda).
Our research study suggests that there is significant difference between use
of modern banking and traditional banking among the customers of Dena
bank (Now Bank of Baroda).
Suggestions: –
Awareness camp and training programs should be organized by the
Dena Bank (Now Bank of Baroda) to educate the customers
regarding the usage and merits of e- banking services / new age
banking services.
Security reasons are one of major reason to adopt e -banking services
/ modern banking services and once the customer is assured that they
will adopt e- banking services.
Banks can take proactive approach to resolve the issues and barriers
arising out of usage of e- banking services/ modern banking services.
Dena Bank (Now Bank of Baroda) can work on reducing the charge
levied on usage of e- banking services / modern banking techniques.
The Bank can work on improving its e- banking services quality in all
the areas of Raipur city.
Conclusion
Now-a-days e-banking services / modern banking services is a catalyst to banks for
providing better, fast and convenient services to customers and the only choice to
be in the competition. Our research study suggests that usage of e-banking
services/ new age banking services is the key to success in the cut throat
competition today. Dena bank (Now Bank of Baroda) should take proactive
measures to protect the customer’s interest and to build customer confidence by
updating its e-banking services / modern banking services. Net Banking services
adoption is purely based on security reason, once the customer is confident and
satisfied then they will surely switch to e-banking services. With the passage of
time customers hardly have time to stand in long queues to do their transaction; ebanking
services are the preferred mode of banking over traditionalbanking. Time
is money today and customer really understands that.
References:- - BhallaRajni,SinghInderpal (2014), Internet Banking and Its impact on
Traditional Banking Services, pp. 255-270. - Sharma Sonia (2016), “A Detail Comparative Study on E-banking VS
Traditional Banking”, pp. 302-307. - Sharma k. Jitenda , “A study on Innovation in Banking and its Impact on
Customer Satisfaction”, pp. 70-74. - Amutha d (2016), “A Study of Consumer Awareness Towards banking”
International Journal of Economics & Management Sciences Volume 5,
Issue 4 pp. 1-4. - SikkaSanchit, VenkataSrinathUpadrasta, “Innovation in Banking Products
and Services” IOSR Journal of Business and Management, pp. 21-27. - Jindal Shubhara (2015), “Study of E-banking Scenario in India”, IJSR
pp.680-683. - Websites:
www.wikipedia.com
www.investopedia.com - Business India Newspaper.
