CUSTOMER SATISFACTION TOWARDS MGOVERNANCE AN EMPIRICAL STUDY OF BANKING SECTOR V. Swathi Assistant Professor, Department of Management Studies, Laqshya Institute of Technology & Sciences, Khammam District, Telangana State, (India) ABSTRACT Governance is the work of leading by the governments or several other organizations which can be defined as “The manner in which power is exercised in management of country’s monetary and societal resources of development”. Step by step this governance has become e-governance which uses Information and Communication Technology (ICT) at all levels of government to deliver services to ordinary man along with the business world. Here, the author selects the m-governance which is a sub domain of e-governance, where the customer services are set up to deliver in their palms with the developing technical warhead i.e. Mobile Phone. In this research the author tries to extract the factual information about satisfaction level of customers using mobile banking services of public and private sector banks. The author selects the customers located in Khammam District, Telangana as sample unit.
Key Words: Customer Satisfaction, E-Governance, M-Governance. I. INTRODUCTION M-governance is only a sub-domain of E-governance which is not a replacement. The Indian government is also encouraging implementation of M-governance services in all industries to reduce the physical productivities and develop the electronic based productivities. This mode of technological adoption in service industry is an added advantage for companies to reach very nearer to customers‟ expectations. Mobile Phone has become a major platform for implementing and accessing of M-governance in Indian. In present scenario, due to technological advancements in service industry the mobile banking service is uplift from e-banking service. Tap, click, and swipe – these are the novel echoes of the world‟s most valuable term „Money‟. Recently Banks have radically converted from the traditional use of banking to branchless positions of banking. The latest adoption of using technology has helped banks to extend their customer base, while electronic banking has proved to be the main advancement. Mobile banking categorized as the latest development in electronic bank services, where the customers can review: Balance enquiry, credit transfer, checking account, SMS, payment transaction and other services.
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The concept „Customer satisfaction‟ is a quantifying device to measure the quality of tangible or intangible (service) products of a firm whether they meet or go beyond their expectations. Customer satisfaction is the sign of customer reliability and re-purchasing intentions. It is equally important because customers seen it as a key differentiator in today‟s competitive market place and customer satisfaction increases the life time value of the customers (Beard, 2014). The term Customer Satisfaction is an important task for every industry especially banking sector to satisfy customers where „service‟ is the major product. Reliability, tangibility, responsiveness, and positive consumer attitudes in terms of „satisfaction‟ are the major areas to concentrate by the private banks in Bangladesh (Karim & Chowdhury, 2014). Mobile banking users are specially concern with security issues like financial frauds, account misuse and user friendliness issue - difficulty in remembering the different codes for different types of transaction, application software installation & updating due to lack of standardization. Mobile banking transactions can be broadly classified into two: push type and pull type. Push type is a one-way transaction where our bank sends us information pertaining to our account via SMS. Pull type is a two-way transaction, where we send a request and the bank replies.
1.1 Customer Satisfaction in Mobile Banking Service For a customer having a mobile phone especially a smart phone with internet data in his palm, it is an effortless task for him to complete financial transactions like bill payments, mobile recharges, booking movie and travel tickets, transferring money to others etc. Basically, a customer‟s major expectation is to trim down the psychological/physiological strains in connection with purchasing a product or utilizing a service which makes him satisfied. Making this point as a major source of marketing strategy, the public and private banks initiated to take a step forward from e-banking to m-banking services to bring the world into the palms of customers. Technology is not only making banking convenient for customers, it has also allowed banks to expand their businesses faster and bring down costs. With the help of this far-reaching strategy of mobile banking services provided by the banks, the customers can send money to everyone and everywhere he knows, he also can purchase any product or service he wish by staying at home. Day-by-day the count of customers utilising mobile banking services are increasing with increasing facets of technology in banking sector. The findings of this study will show actual facts about customer satisfaction with respect to mobile banking services. The study shows the level of mobile banking awareness among customers and satisfaction levels of various areas on m-governance services by banking sector.
1.2. Mobile Banking Services Most common mobile banking services that inculcate customer satisfaction are:
Accounts alert, security alerts and reminders
Account balances, updates and histories
Customer service via mobile
Branch or ATM location information
Bill Pay (i.e. electric bill), deliver online payments by secure agents and mobile client applications
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Funds transfer
Transaction verification
Mortgages alerts
1.3. Customer based returns and shortcomings of mobile banking service The Reserve Bank of India recently informed banks to encourage mobile banking. In coming days we will see more number of people getting addicted to the ease of mobile banking. In the internet epoch, mobile banking can be considered as windfall and curse. However, many people still are not able to relay on mobile banking due to its exposure to risk. Here are some advantages and disadvantage engross in mobile banking services. I.3.a. Customer based Returns:
Anytime banking - Mobile banking gives you the privilege of anytime and anywhere banking. A customer can do most of the banking transactions after banking hours from anywhere, irrespective of location as well as situation.
Mobile banking is Free – The service provided by bank is free of charge, there is no limit for accessing account in mobile application.
Banking services – Various banking services provided include “Account Balance inquiry, Credit/Debit alerts, Bill payment alerts, Transaction history, Fund transfer facilities, Minimum balance alerts etc., can be accessed from your mobile.
Secure banking – Some banks assure that, by downloading the bank mobile service application directly from the server, the data won‟t be stored in a smart phone or even in a SIM/memory card.
I.3.b. Customer based Shortcomings
To make maximum benefit of mobile banking one should have smart phone. Some banks have specific software for specific mobile such as iphone and Blackberry people should download different apps based on the smart phone they own.
Many experts believe that mobile banking is more secure than internet banking as very few virus or Trojans can exist in phone. However, that does not mean that they are immune to any kind of threats.
As phishing exist for internet banking users, there is “Smishing” for mobile banking users. When a mobile banking user receives a fake text message asking for bank account details from hacker.
There are also very limited anti-virus software options for mobile devices. People are less careful with their mobile compared to laptop. You must also update your anti-virus on the mobile if you are a frequent user of mobile banking.
II. REVIEW OF LITERATUR Jairam Sridhara, said, “In value terms, internet and mobile transactions are already comparable. In number terms, if present growth rates sustain, mobile transactions should cross internet transactions in a short time period.
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Rajnish Khare, said, “In value terms, internet and mobile transactions are already comparable. In number terms, if present growth rates sustain, mobile transactions should cross internet transactions in a short time period. K.R. Mahalakshmi and P. Kalaiyarasi, aimed to analyze the customer response and customer satisfaction based on usage of mobile banking with the determinants like cost effectiveness, security, accuracy and efficiency. The authors in this study opined that, the banks and mobile service providers have to work together to create awareness about the benefits of using mobile banking services among customers. Mushina Jannat and Imran Ahmed, undertake this research to file the most high-ranking factors of customer satisfaction of mobile governance in second-generation banks. Transaction speed, security & trust, ease of use, accuracy of transaction, system availability, responsiveness, convenience and cost effectiveness are the nine influencing factors on customers satisfaction towards M-banking. The findings say that the customers‟ satisfaction towards the above cited factors are not so good and they expect better service quality. In this case, the second-generation banks have to concentrate to improve satisfaction levels of customers‟ towards mobile banking services which is a potential task for banking sector in this advancing technological environment. Kumari and Janaka, investigated and recited the factors that influence the customers‟ satisfaction headed for M-banking services are usefulness, ease of use, relative advantage, perception of risk, lifestyle and on changing needs of a customer. The authors also thought that the whenever the banks introduces new m-banking services, they have to give a clear outlook on the service life customers benefits, ease of use, satisfying needs of a customer. Dr. Philemon Bureti, Abigael Jepleting, Sangora Oscar, in this research make a trial to evaluate the effects of mobile banking services in the banking sector. Here, the authors took equity bank located in Eldoret Town. The authors found that the customers who utilize the mobile services by the equity bank are satisfied; however majority of the customers expressing doubts in usage of those mobile based banking services. The researchers felt that the equity bank should develop a trust among the customers regarding their mobile banking services with vast endeavours. The equity bank has to have to make high efforts towards their value added services guaranteed with money security, easy accessing, and ultimate honesty with regard to customer expectations. Finally, the authors say that the equity bank shall meet the entire guarantees delivered by the bank at the time of advertisements. Praful S.Gudadhe, has opined that in now-a-days customers expect higher quality services from banks which results in improving customer satisfaction levels which depends on better and efficient banking services. The researcher also states that the E-Banking Channels are transforming very fast with the development of information technology which brought e-revolution in banking operations. In this study, the researcher states that SBI is the first public sector bank in utilizing the advanced technology for computerization and core banking services. Researcher also found that there is an impact of IT in banking sector even in rural, semi-urban and urban areas where customers highly satisfied with the services provided by SBI in Yavatmal District. Zohra Saleem and Kashif Rashid, initiate a study to explore the relationship between customer satisfaction and mobile banking adoption in Pakistan banking sector. In this study, the researchers gave a trial to catalogue the factors for adopting mobile banking technology which powers the customer satisfaction. The verdicts of the
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study states that most of the customers are more concerned about security, legitimacy, and trustworthiness of the technology advancement in banking sector based on a mobile application. To develop the customers‟ trust on mobile banking services the banks have to create awareness about the features and benefits of m-governance in banking services like reduction of risk over day-to-day transactions through mobile apps, spreading out of more banking services in mobile banking which makes the customer to reduce service costs, wastage of time etc.,
2.1. Objectives of the Study: 1. To identify the customer awareness on Mobile banking services depending on their level of education. 2. To explore the various reasons for a customer to utilize mobile banking services based on their occupation. 3. To identify the satisfaction levels of customers various age groups in usage of mobile banking for their financial transactions.
2.2. Scope of the Study: The present study focus on customer satisfaction levels on M-governance in banking sector. The private and public sector banks located in Khammam district are selected as population, and the sample consists of customers who consume the mobile banking services from public and/or private banks. The research findings results in identifying the level of customer awareness, utilization, and customer satisfaction through M-Banking services provided by banks in Khammam district.
2.3. Limitations of the Study: The study has been conducted on customers from both rural and urban backdrop and the number of customers consulted for data collection has been restricted to 800 among which only 780 respondents have given clear and precise responses and other 20 respondents have been constrained due to inaccuracy fillings in a questionnaire provided.
III. RESEARCH METHODOLOGY The researcher adopted “Descriptive research design” and the types of data i.e. primary data has been collected with the help of well structured questionnaire with an ease in understanding language as the sample size covers both rural and urban areas. The secondary data has been attained from journals, websites, and text/reference books. Sampling Technique: In the present research convenience sampling technique has been adopted to select the customers of private and public banks in Khammam district. The targeted sample size is 1000, where the availability of sample units due to some constraints made a restriction to 800 sample units, but considering the accurate responses of a respondent sheet the sample size has been finalised at 780 respondents. Statistical Tools: The statistical tools taken for analyzing the primary data are: Karl Pearson‟s Correlation Coefficient, ANOVA Two-Way Classification.
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III.1. DATA ANALYSIS & INTERPRETATION TABLE-1: Customer Awareness on M-Governance in Banking Sector PG (N=456)
Opinions/ Responses
UG (N=246)
Bel. UG (N=54)
YES
NO
YES
NO
YES
NO
Awareness M-banking
76.32%
23.68%
60.98%
39.02%
55.56%
44.44%
services
(N=348)
(N=108)
(N=150)
(N=96)
(N=30)
(N=24)
84.21%
15.79%
82.93%
17.07%
100%
0%
(N=384)
(N=72)
(N=204)
(N=42)
(N=54)
(N=0)
Satisfied with services or not Source: Questionnaire Interpretation:
(A) Majority of customers based on their educational levels says that they are conscious about the concept of mobile banking and the services comprised with mobile banking in public/private banks. Only a few numbers of customers from the considered sample size says that they don‟t know any information about all the banking services provided by banks in mobile applications.
(B) Large number of customers from PG and UG level is satisfied with the mobile banking services, whereas the sample strata from below graduation level are completely not satisfied with the services provided by the banks basing on mobile governance. This table shows that the based on the increasing level of customers‟ educational status, the concept of mobile governance in banking sector has turning into an easiest way for their bank transactions; but the customers from below graduation level are facing problems with understanding and adopting the upgrading technology in banking sector due to poor awareness on mobile banking services provided by banks which will make them to follow the traditional way of utilizing banking services like physical visits to bank or depending internet based transactions. It is also observed that the customers with low educational qualifications are not ready to make their bank transactions with the use of mobile phones in their palm.
For the particular study, the researcher wants to highlight the various purposes for exploiting mobile banking services among customers from various categories. For this purpose the researcher divided the total sample customers into five categories (sample strata) which include customers from business sector, professional jobs, students, house wives and others who do not related to above four mentioned areas. The size of each stratum is mentioned in the following table which also shows the percentage of customers who expresses their specific reasons for using mobile banking services through their mobile phones.
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TABLE – 2: Purpose of Mobile Banking Based on Customers' Occupation opinions/ responses Account balance check Ticket booking Payment of bills Stock trading
Business (%) (n=246) 76% 76% 66% 20%
Professional (%) (n=204) 63% 61% 61% 20%
Students (%) (n=252) 63% 80% 56% 0%
House Wives (%) (n=48) 15% 7% 5% 0%
Others (%) (n=30) 10% 5% 10% 2%
Source: Questionnaire Interpretation: Account balance check: Most of the customers from business, professional jobs and most of the students do verify their account balance when compared with the customers like house wives and others. Ticket Booking: It is observed that wide number of customers ranking from students, business people and those who are working utilize the mobile banking applications for booking movie, train and bus tickets etc., whereas only a small percentage of house wives and customers from other categories utilize the mobile banking services for booking online tickets. Payment of Bills: From the collected sample it is explored that higher number of business people, employees and students make their bill payments through online mode with the help of banking services which are available in their palm without going anywhere. Very less percentage of house wives and people from other categories utilize these mobile banking services for paying their bills in online mode. Stock Trading: The results out rightly shows that a very few percentages of business people and employees perform their stock trading activities through their mobile phones. It shows that maximum number of customers felt that it is not trustworthy to make trading activities through mobile phones. Here, the researcher has applied ANOVA two-way classification to test the null hypothesis that, H0age: There is no difference between the opinions shared by different age groups of customers. H0S.LEV: There is no significant difference among the satisfaction levels of customers from different age groups in a selected sample. Various factors are considered by the researcher to measure the responses given by the customers by cross functionalising the responses between age groups of customers and their satisfactory levels with respect to the mobile banking services provided by the public/private bankers.
Table – 3: Measuring level of customer satisfaction depending on their different age groups. S.NO
FACTORS
1 2 3 4 5
Mobile Recharge SMS alerts Transactions status Safe A/C Log in/Log out Secured transactions
P-VALUE AGE* 0.1326 0.3114 0.3848 0.2101 0.6031
Null Hypothesis S.LEV** 0.1063 0.0832 0.0942 0.1446 0.0137
AGE* ACCEPTED ACCEPTED ACCEPTED ACCEPTED ACCEPTED
S.LEV** ACCEPTED ACCEPTED ACCEPTED ACCEPTED REJECTED
* AGE = Different Age Groups of customers viz., 20-30, 31-40, 41-50, above 50 yrs ** S.LEV = Different levels of customer satisfaction viz., extremely satisfied, satisfied, neutral, dissatisfied, extremely dissatisfied. 19 | P a g e
Source: Questionnaire Interpretation: The above analysis is an evidence for exploring the customers‟ satisfaction levels among various factors that are considered as above. In consideration with the factors like Mobile recharge, SMS alerts, Transaction status, Safe login and log out it is observed that customers from unlike age groups opined in a similar way with no variations in their responses towards their different satisfaction levels. But, it also identified that there is no significant difference between the responses among the customers of different age groups, nevertheless the researcher see the sights of insignificance among the customers‟ judgments with respect to their satisfaction levels. This means, the customers of different age groups are similarly responding that they can‟t believe in the level of security while performing their financial transactions in mobile banking applications.
IV. CONCLUSION AND SUGGESTIONS This study draws attention towards customers‟ awareness, customers‟ purpose of utilizing and customers‟ satisfaction levels on mobile banking services provided by the both public and private bankers. Laying the foundation on the analysis performed to test the hypothesis it is clearly observed and bought to lime light about the customers‟ perception and heights of their satisfaction. By observing the overall analysis which mainly concentrates on three major areas like customers awareness, customer purpose and customer satisfaction with respect to customers‟ education, occupation and age groups, the researcher says that this study brings out a positive relationship for the hypothesis tested, it focused on few selected mobile banking services provided by bankers to check the satisfactory levels, to account the major purpose of customers‟ handling banking services in their mobiles and to study the customers‟ satisfaction with the services provided by bankers. The major drawback identified in this study is “safety bank account transactions in mobile”; which makes a customer to think twice to use the mobile banking application. As in present days, there is a much possibility for attacks on bank accounts by hackers; most of them believe that it is not safety for performing mobile bank transactions. The banks have to provide a trustworthy environment for a customer to utilize the services provided through mobile banking. In present busy life, the customer might not have sufficient time for visiting a bank or sitting in front of desktop with internet to make use of banking services. To overcome this major pitfall and retrench their customers‟ the banks are keep on updating technologically by adopting new encroachments in banking services like physical visits to bank has been changed to electronic banking system, which is again changed to mobile banking system to provide their banking services in the customers palms.
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[3] Kumari Kahandawa, Janaka Vijayanayake, Impact of Mobile Banking Services on Customer Satisfaction: A Study on Srilankan State Commercial Bank, International Journal of Computer and Information Technology. Vol: 3, Issue: 3, 2014, pp: 546-552. [4] Dr. Philemon Bureti, Abigael Jepleting, Sangora Oscar, Effects of Mobile Banking on Customer Satisfaction. A Case of Equity Bank of Eldoret Town, International Journal of Innovative research in Management. Vol: 3, Issue: 2, 2013, pp: 29-40. [5] Praful S.Gudadhe, Customer perception towards products and services of state bank of India-with special reference to Yavatmal District (M.S.) India, International Journal of Commerce, Business and Management. Vol: 2, No: 4, 2013, pp: 194-201. [6] Zohra Saleem, Kashif Rashid, Relationship between customer satisfaction and mobile banking adoption in Pakistan, International Journal of Trade, Economics, and Finance, Vol: 2, No: 6, 2011, pp: 537-544. [7] Rajnish Khare- Head of Digital and Mobile Banking, HDFC Bank Ltd (2015), in the event “MINT Annual Banking Conclave VIII-A New Banking Landscape for a new India”. [8] Jairam Sridharan- President & Head-Retail Lending & Payments, Axis Bank (2015), “Mobile Banking Comes of Age”, Times of India: TECH NEWS, [9] http://www.livemint.com/Industry/XUT9oCMrxPvFxZJ8wCrskN/The-future-of-banking-is-mobile.html [10] http://timesofindia.indiatimes.com/tech/tech-news/Mobile-banking-comes-ofage/articleshow/47918016.cms. [11] http://www.mgovworld.org/libra/mgovernance/papers/m-governance-leveraging-mobile-technology-toextend [12] http://timesofindia.indiatimes.com/tech/tech-news/Mobile-banking-comes-ofage/articleshow/47918016.cms [13] http://www.businesstoday.in/moneytoday/banking/india-e-banking-mobile-banking-popular-branchbanking-stays/story/191073.html [14] http://www.csi-sigegov.org/ppt/mGovernance_trends_csi_oct2011paper.pdf [15] https://en.wikipedia.org/wiki/M-government [16] https://mgov.gov.in/msdp_pressrelease.jsp [17] http://scroll.in/article/758348/full-text-india-needs-m-governance-mobile-governance-modi-tells-siliconvalley-titans
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