5. Methodology
- Qualitative Research:
A Qualitative approach is chosen for this research as individual depth interviews which are conversational than structured are applied. First hand observation of the participant in the field setting is perceived. The research involves testing the psyche of the customer through tests and so qualitative techniques are implemented. The results will be quantified in the later stages of analysis and report so that Bank of Baroda can take the appropriate move to solve their problem.
(ii) Survey:
Our survey is a ‘Self - Administered’ one done through interceptions. This form of survey was opted so that we get a rapid collection of data in less time. It is a cross-sectional study and questionnaires would do a decent job to get the required information from the respondents. We have done the surveys in the city of Ahmedabad at: Law Garden (early in the morning to interact with the older generation who come for Yoga), C.G.Road (few specific shops where old usually visit), left questionnaires at medical shops and collected them later, faculty of Institute of Management, Nirma University and Physio therapy centre at Vasthrapur. To maximize the participation, we framed a questionnaire with simple English. Self – Administered survey also minimizes the costs and saves a lot of time.
(iii) Instruments:
- Questionnaires provided us the data we required to get to the perception of customers on ‘Usage of Technology.’ They were a guiding tool for further analysis to come to a consensus as to why technology is not received well by the public at large. We used scales to ask each question in the right way and in the right order to collect the appropriate data for desired analysis.
Scales used:
- Likert Scale for Q.3.
- Attitude scale for Q.6 to Q.9
- Multiple Choice questions for the rest.
Questionnaire
Questionnaire
Name : ___________________________________
Age : _____________
Sex : Male Female
Occupation : Business Service Retired Others
Bank’s name : _________________________________
- Tick whichever applies:
-
How often do you visit bank branch in a month?
-
Once or less
-
Less than 5
-
5 to 10 times
- More than 10 times
- For ATM:
For Internet banking:
For Mobile banking:
For Core banking:
- What are the purposes for which you use services like ATM’s, Internet services and mobile banking?
-
Cash Withdrawal
-
Payment of bills
-
Money transfer
-
Stock trading
-
Others
- Why you often do not use technology for banking services?
-
Safety issues
- Lack of awareness
- Complex process
- Quality of services
- Availability
-
Other
Please mention two most important reasons: ________________________________
- Do you think that bank should create more awareness among customers regarding the services like Internet banking, core banking, mobile banking etc.?
-
Yes b. No
- Do you think that bank should provide training or assistance to the customers to facilitate the use of technology?
-
Yes b. No
- If bank offers some incentives like points for using internet and mobile banking then would you prefer to use technology more often?
-
Yes b. No
- If bank provides above three facilities to you then would you like to use the services?
- Extremely likely
- Somewhat likely
- Not likely
- Will not apply
Any Suggestions:
________________________________________________________________________________________________________________________________________________________________________________
-
SPSS software is the other instrument which we used in our survey to study the analysis.
SPSS - Statistical Package for the Social Sciences
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(iv) Sampling plan:
1. Target audience:
a. Elderly customers (age 55 & above) of bank of Baroda in Ahmedabad.
b. Elderly customers of other banks in Ahmedabad.
Classification of Customers:
2. Sampling frame:
List of customers is not available.
3. Sample Type:
We used non probability sampling because we did not have the list of customers so we collected the sample on the basis of availability and quota (based on occupation).
Quota:
- Business people
- Service
- Retired
- Others
The sampling method will be non-probability sampling as it is a qualitative research. The element selection is unrestricted as each sample element is drawn individually from the population at large. Since it is a non-probability method on an unrestricted sample, the technique we used is that of “Convenience.” We picked up respondents for the survey out of convenience from parks, medical shops, faculty at our college and physio therapy centre.
4. Sample size:
132 Respondents.
5. Element:
The elderly customers of Bank of Baroda and other banks form the element.
6. Research Analysis
Data is collected from the field study and entered in to the SPSS accordingly.
(a) To check out whether there is any relation between the occupation field and those who are not using the technology.
Correlations
Correlations
Chi-Square Test
Test Statistics
a 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 10.0.
b 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 20.0.
Core Banking:
Correlations
Chi-Square Test
Test Statistics
a 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 15.5.
b 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 31.0.
Internet Banking:
Correlations
Correlations
* Correlation is significant at the 0.05 level (2-tailed).
Chi-Square Test
Test Statistics
a 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 22.0.
b 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 44.0.
Mobile Banking:
Correlations
* Correlation is significant at the 0.05 level (2-tailed).
Chi-Square Test
Test Statistics
a 25 cells (100.0%) have expected frequencies less than 5. The minimum expected cell frequency is 4.6.
b 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 57.0.
Occupation is significant in influencing the individuals in using the technology. From the above statistics, it is clear that the perception or view point of individuals with different occupations is different. Reactions are the same and there is no significance when it comes to ATM usage. All of them feel the same and utilize it on similar terms. But when it comes to Mobile banking, Internet banking and core banking, the responses are different among the sectors of Business, Service and Retired.
(b) How many are aware of the ‘usage of technology?’
ATM
There are very few who are unaware of the ATM service provided by the bank i.e. around 1.5 percent. There is a chunk of 21.2 percent in the sample who are aware but do not use it.
Core_Banking
7.6 percent are aware of core banking but 22.7 percent do not use it in spite of being aware.
Internet_banking
16.7 percent of the respondents are not aware of Internet banking which is a huge volume.
Mobile_banking
34.8 percent of the respondents are totally unaware of the usage of mobile banking!! Which is highly alarming. And out of the rest, 7.6 percent have the knowledge of it but do not use it.
(c)
Need of awareness
90.9 percent of the respondents mentioned that they need awareness on the benefits and usage of this technology.
(d)
Training_and_Assistance_by_bank
86.4 percent of the respondents mentioned that they require training and assistance on using the technology, as to how to go about the entire thing.
(e)
Incentive_on_usage_of_technology
67.4 percent of the respondents said that they will use the technology only if they are given incentives.
Occupation * Incentive_on_usage_of_technology Crosstabulation
Count
The respondents from the business and retired sectors are keener on receiving incentives for going the technology way.
Occupation * Training_and_Assistance_by_bank Crosstabulation
Count
100 percent of the respondents from the retired sector said they need training and assistance to make use of the technology.
(d)
ATM
ATM_comfortability
ATM_value_addtion
ATM_Frequency_of_use
Test Statistics
a 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 12.0.
b 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 12.7.
There is a significant relationship between ATM Comfortability and ATM frequency of use as p value is less than alpha at significance level of 95%.
Core banking
Frequencies
Test Statistics
a 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 17.3.
Comfortability, Value addition and frequency of use are the factors that are highly related to one other. It means the Comfortability factor have an impact on the frequency of use as well as customer’s perceived value of importance of core banking.
Internet Banking
Frequencies
Comfortability, Value addition and frequency of use are the factors that are highly related to one other. It means the Comfortability factor have an impact on the frequency of use as well as customer’s perceived value of importance of internet banking.
Mobile Banking
Frequencies
Comfortability is a crucial factor here that influences the people from using Mobile banking technology. Majority of the respondents are not using this facility because they find it difficult and not comfortable.
(e) Reasons of not using:
ATM
Majority of the respondents do not use ATM facility because of lack of awareness about the process and benefits, they do not find it safe and they find it difficult to operate.
Corebanking
25 percent of the respondents do not use Core banking as they do not find it to be a safe option. Another key result we found that customers are unaware about the core banking.
Internet Banking
Respondents are not using the Internet banking facility as they presume it to be unsafe and complex. Moreover, the awareness about the internet is very low among the customers.
Mobile Banking
Lack of awareness and Safety are the major concerns when it comes to Mobile banking.
(f) Reasons of not using any of the technology
The major reasons of not using any technology by the customers are Safety issues and the complex process as both accounts for 56% of the customers not using any of the technology.
(g) Does Occupation have a role to play in safety issue?
ATM_safety * Occupation
Count
Safety is a major concern for the businessmen and there is 48.4% of businessmen who do not feel safe while using ATM. Whereas the service class people prefer to use ATM and feel safe while using it.
Safety is a major concern for all be it businessmen, service class, retired or others while using Internet banking. Some businessmen feel safe only sometime.
Safety is a major concern for all be it businessmen, service class, retired or others while using mobile banking.
In terms of safety of core banking the businessmen are equally divided but major part of customers perceived core banking as safer option.
(h) Does customers visit in bank differs with public and private sector bank?
People of the public sector bank who visit the bank maximum number of times are the ones from the Business sector. This is quite evident from the graph and the table. Retired people come next with visits ranging from 1 to 5 in a month by majority of the respondents.
Frequency of visits comes down when we move from public sector bank to private sector bank. The major chunk is still constituted by the Business and Retired sectors.
7. Limitations
The survey will be done only in the Ahmedabad region but the customers of Bank of Baroda branch, Ahmedabad constitute people from different places.
The time on hand is not sufficient to finish the project to perfection. After the analysis we have realised that we could have framed the questionnaire in a better way to get a more deep understanding of the respondent. In order to apply certain techniques, we are void of certain data which we could have collected if the questionnaire was modified.
Since it is a cross-sectional study and not a longitudinal one, we cannot re-approach the respondents for further clarifications on their replies.
8. Interpretation - Managerial Implication
The main reason we went for this research is because of the statistics below. Bank of Baroda knew that majority are not availing the facilities provided.
Usage_In__prior_three_are_true_satisfied
The table says that when these services are provided and made available fully, still on 33.33 percent of them would utilize it. 50 percent are in the midway and 13.6 percent refuse point blank. This implies that there is some strong factor that is pulling the aged generation from using the technology in spite of making it available on a large scale. Bank of Baroda should focus on the 50 & 13.6 percent people and bring them to ‘Extremely Likely’ category.
Measures to be implemented:
-
Speaking of the gender, the females are not comfortable using the technology. They should be exposed to the benefits of this technology.
-
Occupation has a role to play here. Different sectors reacted differently for certain questions. Bank of Baroda should adopt different strategies for each of these sectors.
-
90.9 percent said they need more awareness and 86.4 percent said they need training and assistance. This shows that majority are either not aware of such service being existent or those who are aware of the existence do not know how to use it. Bank of Baroda should set up a separate unit of people in their respective banks who would keep a track of all the customers who are entering the bank for cash withdrawals or bill payments or few other activities which could otherwise be done at ease using the technology. This unit should approach those individuals and give an insight about the benefits of ‘using the technology.’ There is every possibility of people also reaching out to the unit if they sit under the banner that says “Make banking easier and safe through technology. For Queries please do come here.”
- 67.4 percent of the respondents said they will use the technology if they are given incentives like reduced transaction cost, increase interest.....so and so forth. The bank can take this move for the initial stages and slowly back out on giving incentives. It might work as people would have got habituated to using the technology and they would not want to revert back to the traditional methods. So the bank should provide incentives until the public starts liking technology and get used to it. This can be measured with observational studies.
-
Business people visit the bank the most. The bank should find out the reason as to why they visit so often and carry out necessary actions. If these people are visiting the bank for large amount of cash withdrawals, then the bank should improvise the ATM facility for them. Business people might not find it safe to withdraw from ATM and so they visit the bank. They should be educated and assisted about the benefits of withdrawing from ATM and should also be given assurance for the same.
-
Most of them are at ease while using ATM except for the fact that few fear that their card might get stuck in the machine and their money will get stuck too. These fears can be wiped off by proper assistance. Training should be given to those who do not know how to use the card, how to insert it or swipe it.
-
Working on the internet is still a nightmare for the older generation. Bank should develop a user friendly site and publicize it to the core so that people will at least use it once. On using it, they would realize the benefits of it. Complexity of internet banking should be reduced and assurance of safety should be given.
-
Majority of the respondents are devoid of the concept of mobile banking. The bank should prioritize on publicizing about mobile banking. It should put up posters and banners in and around the bank, the ATMs to make people aware of the benefits of using mobile banking.
-
Core banking should be taken to a higher level and incentives should be provided to the business sector for using this facility. Individuals should be educated on this front not verbally but with proper demonstrations. They should be given a trial and be assisted at that time. The confidence of the aged will build up and they would consider it safe to go for core banking.
9. Time Schedule
1st week (06/11 to 13/11) – Understanding of the project and Literature Survey.
2nd , 3rd week (13/11 to 27/11) – Data Collection
4th, 5th week (27/11 to 07/12) – Processing of Data.
6th week (07/12 to 21/12) – Research Analysis
7th, 8th week (21/12 to 28/12) – Report and Presentation
29/12 - Report Submission
10. Costs incurred
Transportation Rs. 400
Printing and Stationery Rs. 300
Miscellaneous Rs. 200
Total Expenses: Rs. 900
11. Research Team
Members:
A.Aasritha Poorna-
Computer Science Engineer, graduated from Jawaharlal Nehru Technological University, Hyderabad. Currently pursuing Masters in Business Administration from Institute of Management, Nirma University as a Fresher.
Akhil Goyal-
Commerce graduate from Devi Ahilya University, .Currently pursuing Masters in Business Administration from Institute of Management, Nirma University as a Fresher.
Akshay Mehta-
Mechanical Engineer, graduated from Government engineering college Ujjain. Worked for 2 years at Adani group as Operation and purchase engineer. Currently pursuing Masters in Business Administration from Institute of Management, Nirma University.
12. Bibliography
-
Official website of Bank of Baroda :
2.
3. Business Research Methods written by Donald R cooper and Pamela S Schindler
4. http://managementhelp.org/research/research.htm
13. Appendix
Terms used:
ATM:
An automated teller machine (ATM) is a computerized telecommunications device that provides the of a with access to in a public space without the need for a human or . On most modern ATMs, the customer is identified by inserting a plastic with a or a plastic with a , that contains a unique card number and some security information, such as an expiration date or (CVV). is provided by the customer entering a (PIN).
Using an ATM, customers can access their bank in order to make withdrawals (or cash advances) and check their account balances as well as purchasing mobile cell phone prepaid credit.
Core Banking:
Core Banking is normally defined as the business conducted by a banking institution with its retail and small business customers. Many banks treat the retail customers as their core banking customers, and have a separate line of business to manage small businesses. Larger businesses are managed via the Corporate Banking division of the institution.Core banking basically is depositing and lending of money.
Normal core banking functions will include deposit accounts, loans, mortgages and payments. Banks make these services available across multiple channels like , , and branches.
Internet banking:
Online banking (or Internet banking) allows customers to conduct financial transactions on a secure website operated by their retail or , or .the common services provided by internet banking are fund transfer, loan application, payment of bills, wire transfer, IPO application etc.
Mobile Banking:
Mobile banking (also known as M-Banking, mbanking, SMS Banking etc.) is a term used for performing balance checks, account transactions, payments etc. via a mobile device such as a . Mobile banking today (2007) is most often performed via or the but can also use special programs called clients downloaded to the mobile device. Mobile Banking refers to provision and availment of banking- and financial services with the help of mobile telecommunication devices.The scope of offered services may include facilities to conduct bank and stock market transactions, to administer accounts and to access customised information."
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