a study on innovative services of banks and threats if any"

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WELCOME

‘A Study on customer awareness about Innovative Services of Banks and Threats if any to Customers: With special reference to Sangli city’ : 

‘A Study on customer awareness about Innovative Services of Banks and Threats if any to Customers: With special reference to Sangli city’

INTRODUCTION : 

INTRODUCTION The financial sector reforms in the country during the early 1990s was the outcome of the analysis and recommendations of expert committee such as Narsimham Committee /working groups set up by Govt.of India. Mahatma Gandhi’s famous quote “ Customer is the king. He is the most important visitor on our premises. He is the purpose of it. He is not the outsider on our premises.He is a part of it,we are not doing him a favour by serving him. He is doing us a favour by giving us an apportunity to do so....’’ Based upon the recommendations of Goiporia Committee for customer services ,the RBI has issued various guidelines in respect of collection of cheques, payment of interest for delay in collection of cheques , issuance of DDs, cheque books.

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Based upon the recommendations of Goiporia Committee for customer services ,the RBI has issued various guidelines in respect of collection of cheques, payment of interest for delay in collection of cheques , issuance of DDs, cheque books. As per the recommendations of Rangrajan committee , technology was introduced in Indian Banking. Banks are providing services of online banking, Debit Card and Credit Card facilities, Mobile banking etc. Only producing innovative goods is not enough to survive in global competition, but bank should take efforts for promotion of these product. Banks should provide the information , education , trainning to its customers for accessing the usage of its innovative product

Objectives of the Study : 

Objectives of the Study 1)To examine customer awareness about innovative services of banks and present threats in modern banking . 2)To suggest some measures for further development and to increase awareness among customers

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Research Methodology Collection of Data – Primary data is collected through questionnaire, interview and observations. Secondary data is collected from books, newspapers, journals, periodicals,RBI Bulletines, banks as well as from internet. Sample selection Sangli District is having an excellent network of bank branches with adequate branches .  The Researcher has selected Sangli city for the purpose of the study. The main reason behind the selection is convenience for the collection of data.The purposive sampling method is used for the study. She has selected different category of 100 respondents working in different sectors.The respondents are Doctors,Judges, Advocates, Lectures, Traders, Officers, household female members, Farmers, Professional graduates, non-proffessional graduates etc

Limitations of the Study : 

Limitations of the Study For the reseach study only selected group of respondents from different sector on the bases of education, profession , income level etc is undertaken . For this research study only frauds related to E-banking is taken in to account .

Innovative services of Banks : 

Innovative services of Banks Electronic Clearing Services :- It is the mode of electronic fund transefer from one bank a/c to another bank a/c using machanisam of clearing house.The customer of ECS has no need to visit to bank for depositing papers and instruments. ATM:- Automated Tailler Machine. ATMs are electronic machines linked to the accounts and records of banking institutions.It enables customer to withdraw amount without visiting bank building.

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Number of ATMs in India during June end 2008

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Credit Card :-It is a system of payment. It is a small plastic card issued to the users of the system. Credit Card is gaining popularity for online payments. There has been tremendous increase in the number of credit cards issued by the banks. Internet Banking: -Net banking offers prompt and quick services to its customers. It is a banking from customers desk. E-banking customers can view their account balance, transfer funds, pay electricity and phone bills within few minutes..   Mobile banking: India is the fastest growing mobile marketing in the world. At the end of Dec. 2006, India had more than 146 million mobile subscribers. It is expected that by 2010, Indian wireless subscriber base will cross 400 millions.

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The Number of Credit Cards issued in India during……

On line banking threats and the techniques : 

On line banking threats and the techniques Security system is the most important aspect of E-commerce. Unauthorized user tries to access confidential information by using stolen password for the purpose of committing fraud. Credit card fraud is a wide-ranging term for theft and fraud committed by using creditcard or any similar payment mechanism Central State Home Minister Mr.Shakil Ahmad reported in the Loksabha that “Using marketing software tools, cyber criminals are suspected to have collected data of over 12,000 online banking customers of ICICI and HDFC Bank in India and abroad, who have a minimum of (on an average) Rs one lakh in their account”.

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Increasing frauds in Private sector banks

The techniques involved in online banking frauds : 

The techniques involved in online banking frauds Spoofing:-Hackers can configure a system to access information on systems that trusts the system being mimicked. A hacker collect the information about login ID, an IP address, a server, credit card etc. The Hacker registers a domain name that is very similar to a legitimate sales site, only keeping the difference of a single letter such as Amazom.com (USA) instead of Amazon or hnt.com (in India) instead of hmt.com. Sniffing:- When a hacker has gained access to a host, he may set up sniffing progamme to observe traffic and storing information (Ids or password) .It is unauthorized network monitoring. Sniffer attacks begin when a computer is compromised and the hacker installs sniffing programme that monitors the network to which the machine is attached.

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3)Content alteration:-The method involved in delivering payments would be intercept a bank account number and change it to another. This is called content alteration. Sniffers involved in it capture the packets, alter the content and then send the new packet to its recipient.  4) Phishing and Vishing attacks-Some fraudulent e-mails (also known as Phishing e-mails) going out to customers of various banks inducing them to update sensitive account information like their, User IDs, Passwords, even transaction Passwords, etc., by clicking on an e-mail link or by visiting a website. Similarly, the same information is also asked via telephone call (globally known as Vishing attack).  5 )Skimming :- It means making counterfeit ATM cards using a skimmer, which reads the information on a consumer’s ATM card. Scammers insert on to an ATM ready to swipe information from customer. They take blank card and encode all the information from an ATM card when they swipe. The skimmer catches the PIN through a small camera mounted on a ATM.

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Presentation of Primary Data Percentage of customers in different banks Reasons of selecting the particular bank for dealing

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Age/Sexwise accession of innovaive services of banks in Sangli City

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Table showing type of occupation and accession of E-banking

Table showing Education level and their access to online banking : 

Table showing Education level and their access to online banking

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Table showing customer’s reaction to modern banking service charges

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Different innovative services of Banks Consumer awareness about E- Banking Threats

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General awareness about precautionary measures

Findings : 

Findings As the banks have been given freedom in respect of services charges.It is expected from these banks,while applying service charge,that the customer with low volume of activities should not be penalised.. While talking about service charges of banks, many of the customers are not satisfied. Due to ignorance of computer knowlege,ignorance of online banking procedure,fear of loss of money ,only few customers use such an innovative products of banks. The ATM users are not taking proper care to avoid the chance of becoming victim of ATM fraud.Once they inserted the PIN ,they never take efforts to change it after two/three months to live in safety.

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The women class, farmers and the “Aam Adami” are till away from E-banking services . Farmers and women are ignored in modern banking system. Only 6 female members (who are MBA graduates) are doing online banking. Most of the people can operate computer and internet. But they do not consume bank’s innovative products due to lack of knowledge about how to do onlinebanking and fear of money loss . When researcher asked the employees of some popular Banks about the E-banking threats, they are really unaware about the Phishing,Snoofing and Shamming.All these words were new to them. Only 15 customers are aware about Phishing. It means large number of customers have chances of becoming the victims of online banking.

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During the informal discussions with Bank officials in Sangli, researcher observed that, they are also unaware about different threats of online banking. It is observed by the researcher that highly educated people like Doctors, Lecturers, Judges, Advacates, LIC officers, Computer graduates and post graduates can also not aware about the procedure of online banking, using ATM cards for transactions.

Suggestions : 

Suggestions 1.It is the total responcibility of banking industry to take efforts for advertising ,introducing various schemes ,undertaking sales promotional activities ,expanding customer education ,to increase its sales volume so that to maximise its profit margine. 2.Customer care is very important to bank’s employees . There should be interpersonal two way interaction between employees and customers.Bank personnel should create and maintain quality services with proper customer care.The staff of the banks should be highly trained to adapt with the changing environment. 3. All Banks should concentrate on CRM.ie Customer Relationship Management strategy to survive in the competition. CRM helps in retaining not only existing customers but also helps in widening customer base by stregthening customer relationship.

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4..Appropreate measures to increase the awareness of the electronic payment products should be undertaken not only for its clients but also for won staff.It should initiate appropriate measures to stimulate greater usage of online banking. 5.Many banks are undergoing with change in orgnisational structure. Training should be given to its employees to improve their marketing skill,skills for operating in an electronic environment.Trained and educated bankers add value to banks. 6..The banks should give priority to fresh MBAs by conducting campus interviwes .This young generation of management with updated knowledge and capacity to access the innovative services of banks can train the customers too. 7.Bank should develop three dimentional web pages with voice recognition ,vedio technology to provide better education to its customers. Three dimentional set should also be kept in the banks with which customers who have to wait for hours by sitting on the benches of the banks, can be educated to access the modern services of banks .

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8.Bank should give emphasis on attracting women customers by orgnising special programmes and train them to access innovative services.As Syndicate Bank has created a history by starting an exclusive ladies branch at sheshadripuram near Benglore in 1962.This branch has 20,000 ladies customers who are accessing all the innovative facilities like Internet banking,ATM.Core banking etc.In such a ladies bank women feel homely atmosphere and access modern facilities . 9.The banks should advertise to creat awareness of the series of innovative services available to the customers.The importance of personal selling ,door to door selling should be taken into account. Bank officers should give home visits and give the demonstration of innovative services at the door step of customers. 10.Universities should come forword to introduce the modern banking system in the syllabus with practical knowledge .Not only Commerce students but all faculty students should be educated with practical knowedge of accessing modern bank services.Colleges should invite bank expert for giving online training to the students who are the future customers of the banks.

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11..Education about the preventive measures, neccessary precautions while using ATM card, Debit card, Credit card, doing online purchase, online banking etc should be given to the customers to remove the fear of threats. 12. As per the guidelines of RBI, Bank should display and circulate the preventive measures for its customer such as: Kindly don’t respond to Phished emails and fraudulent telephone calls. Do not use unsecured websites Do not write your PIN on the cards..Dont handover your card to any one. Use combination of alfabates and num bers as your password.Keep on changing the passwords frequentely. Change your PIN at least once in two months.Dont write PIN on card or anywhere.Just remember it.   13. As per the customer expectations during research study , they suggested that Banks should increase number of ATMs . ATM Card should be given as early as possible after the customers application for the same.