E Banking

Study of CRM in E-Banking services provided by SBI
INDEX
1. Introduction
1.1. Customer relationship management
1.2. E-banking
13
1.3. History of SBI
23
1.4. CRM strategy use in E-Banking
42
1.5. SBI E-banking service strategy in banking sector
45
1.6. Customer satisfaction in E-banking and benefits.
50
2. Review of literature
54
3. Data Analysis
58
4. Finding
75
5. Conclusion
76
6. Questionnaire
77
7. Bibliography
80
76
Executive summary
In online banking face to face interaction between bank and customer is not
seen. This create huge service gap for banks how to serve and maintain
customer relations in online environment. The aim of this thesis is to
investigate how banks use Customer Relationship Management tool to
maintain their customer relations by using the Internet, and what benefits are
derived by using this E-banking CRM tool and how successfully this tool is
implemented in a bank and also find the customer satisfaction relating to Ebanking. The aim of this research is to investigate customer relationship
management (CRM) activities in e-banking among Indian banks.
The main components of my research to find the customer
satisfaction relating E-banking services. These banks are already adopting
CRM and approaching it differently, and achieving different rates of success in
terms of customer satisfaction and CRM.
76
6. Introduction to the study
6.1. Objective of study
To study the various e-banking services provided by the SBI to their

customers.
Find the customer satisfaction relating to E-banking service.
To know the customer perception toward the E-banking.
To understand the use and importance of E-Banking in banking sector.
6.2 limitation of the study
The research study has been done from a selective material on the
internet.
Only selective journals, papers and articles have been put to use
because of the time factor.
There is the possibility of further updating of this research paper

because of limited sources.
The period of the study is limited 7 weeks only.
It was difficult to know whether the respondents are truly given the
exact information. Customer preferences and opinions are supposed to
change from time to time.
The study was conducted in Mumbai city.
76
6.3 Methodology & sources of Data
3.1. Nature of the study

The study is Descriptive in nature.
3.2. Method of Data Collection
Primary data:Survey by distributing questionnaire to the people taking sample size of

50, Interviews conducted with bankers; accumulating knowledge and
help from friends, etc.
Secondary data:Gathering data through books, websites, newspapers, etc.
3.3. Population
Students and bank customers of State Bank of India.
3.4. Sample Size

Sample size-50
76
1. INTRODUCTION
1.1 Customer Relationship Management

CRM (Customer Relationship Management) is a
comprehensive approach for creating, maintaining and expanding customer
relationships. Are the concepts used by organizations to manage their
relationships with customers. Customer relationship management (CRM) has
attracted the expanded attention of practitioners and scholars. More and more
companies are adopting customer-centric strategies, programs, tools, and
technology for efficient and effective customer relationship management. They
are realizing the need for in-depth and integrated customer knowledge in
order to build close cooperative and partnering relationships with their
customers. The emergence of new channels and technologies is significantly
altering how companies interface with their customers, a development
bringing about a greater degree of integration between marketing, sales, and
customer Service functions in organizations. For practitioners, CRM
represents an Enterprise approach to developing full-knowledge about
customer behavior.
The CRM is an overall business strategy. CRM is an integrated business
approach that connects back office and front office, uniting them into a single
entity for the benefit of the customer. Different and unrelated functions like
sales force automation, inventory Management, customer services, sales and
after-sales support come together for a common Cause customer
satisfaction.CRM is a philosophy that places the customer at the center of an
organization's processes, activities and culture to improve his satisfaction
levels and, in turn, maximize profits for the organization.CRM stands for
customer relationship management and helps the management to deal with
customer concerns and issues. Different Banking Services and products Like
"Anywhere Banking" "Phone-Banking" "Electronic banking" etc. are most
commonly Used by the customers now a day and the banks are trying to offer
76
innovative and convenient technology-based services to their customers.

Simultaneously, CRM helps in maintaining customer database and providing
better services. The use of CRM in banking has gained Importance with the
aggressive approaches used for customer acquisition and retention by the
bank in todays competitive era. It has resulted in the adoption of various CRM
initiatives by these banks. There is a shift from bank centric activities to
customer centric activities. The private sector banks in India deployed much
innovative strategies to attract new customers and to retain existing
customers. Banking is the process associated with the activities of banks; it
includes various activities like issuance of cheque and cards, monthly
statements, online and mobile banking etc. CRM involves gathering of
customer data, and then using it to facilitate customer service transactions by
making the needed information available to resolve the Specific issue and
concern of the customers. This results in more satisfied customers, a more
profitable business and more resources available to the support staff. Some
recent CRM packages integrate the speech-enabled specific application
functions which embrace customer support, order management and sales
force automation or modules within individual applications. These products
are provided by companies such as Siebel system, Oracle, and SAP.CRM in
banking industry entirely different from other sectors, because banking
industry purely related to financial services, which needs to create the trust
among the people. Establishing customer care support during on and off
official hours, making timely information about interest payments, maturity of
time deposit, issuing credit and debit cards, ATM card, creating awareness
regarding online and e-banking, adopting mobile request etc are required to
keep regular relationship with customers. This paper deals with the role of
CRM in banking sector and the need for it is to increase customer value by
using some analytical methods in CRM applications.
CRM as a significant business policy which is a highly
important factor to achieve great returns in business transactions/projects. It
would not be an exaggeration to say that Customer is the King. These days
according to the banks and financial institutions productivity is measured in
terms of established concept of CRM. This concept is based on the integrated
76
business activities to discover, create and satisfy customers need. This Term
CRM is further related to three-pronged integrated business activity;
Operational, Collaborative and the last one is Strategy. Whereas the
operational aim is to deal with sales, marketing and services, the collaborative
policy is to interact with the customers mind set and the last one, strategy,
Comprises of software packages to adopt the CRM practices in the bank and
other categories of financial institutions & corporations.
Customer relationship management (CRM) has attracted the expanded
attention of practitioners and scholars. More and more companies are
adopting customer-centric strategies, programs, tools, and technology for
efficient and effective customer relationship management. They are realizing
the need for in-depth and integrated customer knowledge in order to build
close cooperative and partnering relationships with their customers. The
emergence of new channels and technologies is significantly altering how
companies interface with their customers, a development bringing about a
greater degree of integration between marketing, sales, and customer service
functions in organizations. For practitioners, CRM represents an enterprise
approach to developing full-knowledge about customer behavior and
preferences and to developing programs and strategies that encourage
customers to continually enhance their business relationship with the
company.
76
Definition of CRM (Customer Relationship Management)
Customer Relationship management is a comprehensive

approach for creating, maintaining, and expanding the customer. Lets take a
closer look at what this definition implies. First, consider the word
comprehensive. CRM does not belong just to sales and marketing. It is not
the sole responsibility of the customer services group. Nor is it the brain child
of the information technology team. While any one of these areas may be the
internal champion for CRM in your organization, in point of fact, CRM must be
a way of doing business that touches all areas. When CRM is delegated to
one area of an organization, such as IT, customer relationship will suffer.
Likewise, when an area is left out of CRM planning, the organization puts at
risk the very customer relationships it seeks to maintain. The second key word
in our definition is approach.
An approach, according to Webster, is a way of treating
or dealing with something. CRM is a way of treating or dealing with customer
relationships. We might also use the word strategy here because, done well,
CRM involves A clear plan. In fact, we believe that your CRM strategy can
actually serve as a benchmark for every other strategy in your organization.
Any organizational strategy that doesnt serve to crate, maintain, or expand
relationships with your target customers doesnt serve the organization. And
strategy always sets the direction for your organization.
Customer Relationship Management is a comprehensive strategy & process
of acquiring, retaining & pertaining with selective customers to create superior
value for company and the customer.
CRM is Business strategies that integrate people, process and technology to
optimize the relation of an organization with all types of Customers. CRM is
best suited to help business use people, processes &Technology to gain
insight into the behavior & value of customer.CRM is the commitment of
brands to put Customer experience at center of its priorities. Successful CRM
76
stresses on understanding needs & desires of customer in order to have

strong relationship with them.
Purpose of CRM in Every organization and Industry
To Increase turnover.
To push to up sales with existing customers.
To give excellent Post selling service, using customer integrated

information.
To define new selling procedure & Services.
To Increase Loyal modern values.
To design product as per specification of consumer.
76
Types of CRM adopted by bank

Generally, three types of CRM Are adopted by banks:-
Operational
CRM
CRM
Analytical
CRM
Collaborativ
eCRM
1. Operational CRM
In this, CRM software packages are used to track and efficiently
organize inbound and outbound interactions with customers
including the management of marketing campaigns and call
centres. Operational CRM supports frontline processes in sales,
marketing and customer service, automating communications and
interactions with the customers.
2. Analytical CRM
It is about analyzing customer information to better address
marketing and customer service objectives and deliver the right
76
message to the right customer at the right time through the right
channel. It involves the use of data analysis to extract knowledge for
optimizing customer relationships.
3. Collaborative CRM
These involve systems facilitating customers to perform services on
their own through a variety of communication and interactive
channels.
Need for Customer Relationship Management in the banking industry.
The important f actors that establish the need for CRM in the Banking Industry
are detailed below:
Intense Competition: There is intense competition among the Private Sector

Banks, Public Sector Banks and Foreign Banks and they are all taking steps
to attract and retain the customers. New technologies, research facilities,
globalization of services, the flood of new products and the concept of all the
facilities under one roof to provide better customer service leading to
customer delight.
Well Informed Customers: The Customers in Banking Industry today are well
informed. With the introduction of new technology, the world has become like
a small village. Thus, if a Bank wants to have more customers, it should
develop a good relationship with its present customers and try to maintain the
same in the future also.
76
Declining Brand Loyalty: In the present scenario, brand loyalty is on decline.

The customers are switching over frequently to avail the better facilities from
other banks. Newer and superior products and services are being introduced
continuously in the market. Thus, the banks have to upgrade their products,
improve customer service and create bonds of trusts through proper care of
customer needs and regular communications. With the help of CRM, strong
customer loyalty and a good image for the organization can be developed.
Improved Customer Retention: In the intensely competitive banking industry,

retention of existing customers is vital, which can be achieved through the
process of CRM.
The Generic Constitutes of CRM is:-
1. Customer Acquisition: It can be considered the connectivity between advertising and

customer relationship management. This critical connectivity
facilitates the acquisition of targeted customers in an effective
fashion.
2. Customer Retention: Customer retention is more than giving the customer what they
expect; its about exceeding their expectations so that they
become loyal advocates for your brand.
3. Customer Value: A customer value proposition is a business or marketing

statement that describes why a customer should buy a product
or use a service. It is specifically targeted towards potential
customers rather than other constituent groups such as
76
employees, partners or suppliers.
4. CRMS BENEFITS TO THE BANKING INDUSTRY
Benefits of CRM can be categorized into three groups namely:
CRM benefits to the

banking Industry
Customer
Employee
Bank
Benefits for Customers
Coordinated and professional approach to customer contact.
Up-to-date customer information, Banks can offer more personalized

services.
Customers feel empowered if they have greater access to products

and services. For example 24 hours banking.
Targeted product and service offerings can be timed to coincide with

customer events and requirements e.g., Education Loans and Tourism
Loans.
Develop better communication channels
76
Collect vital data, like customer details and order histories
Create detailed profiles such as customer preferences
Deliver instant, company-wide access to customer histories
Identify new selling opportunities
Benefits for Employees
Employees are empowered with the information to deliver high quality

service and meet customer expectations.
Employees have more time to serve customers.
Employees have higher satisfaction ratings.
Benefits for Banks
Managers are empowered with information that can help them manage
customer relationships and make Better decisions.
Optimum use of bank resources.
Customer satisfaction and increased loyalty.
CRM permits businesses to leverage information from their databases

to achieve customer retention and to cross-sell new products and
services to existing customers
It helps in capitalizing on short windows of opportunities in the market.
significant reduction in and limitation of operational costs through

system automation and standardization
76
1.2. E-Banking
Information and Communication Technology ICT has virtually revolutionized
the banking behavior at local, national and international levels. On account of
act , we find a new business paradigm in the world of banking .We name it in
different ways such as online banking ,e-banking, electronic banking, net
banking or internet banking .in the system, we find any transactions or enquiry
to be processed online without any reference to the branch and therefore we
also call it anytime-banking ,anywhere-banking .In USA and other developed
countries ,we find it becoming old but in the Indian perspective ,it is at the
growing stage and in near future we expect it to be at the maturity stage. In
plain words, we can also say that online banking or e-banking is banking on
internet. we can-not negate that during post-globalization, the process of
technological sophistication gained a rapid momentum and as a result, we
find significant development in the field of ICT when trade and commerce
activities were found developing at a high pace ,it was essential that the
banking system also witness sophistication and the concept of e-banking
started gaining popularity .in a true since ,technology plays the role of a
differentiator and when ICT started dominating the banking system, the
costumer realized a big difference in the quality of services made available
through e-banking.
With the beginning of 21st century, the impact of
globalization was found showing impact on almost all the areas. The
liberalization provided an opportunity to the new generation of private and
foreign banks to infuse technology so that customers find the services
different to their counterparts in the public sector. We cannot deny that techno
driven services lured bank customer and they were found tempted to the
private and foreign banks. This made it essential that even the PSBs promote
infusion of technology. It right to mention that during the yester decades, the
banking industry has witnessed tremendous transformation. In the India
perspective, we find different phases of this dramatic transformation. In the
first phase, bank targeted to reduce their 0perating cost by improving
76
operational efficiency. This necessitated streamlining of back-office

processing and eliminated error-prone manual input of data. In the second
phase, the banks were found witnessing new opportunities in servicing their
existing customer and at the same time also attracting the new customers by
offering to them the new products and services as well as enhancing the
conveniences and value addition process. In the third phase, the banks are
now in the position to develop and implements virtually changed the
perception of banking services found in our minds during the period of manual
banking. Now the virtual banking has been replacing manual banking services
found in our minds during the period of manual banking. Now the virtual
banking replacing manual banking and online banking has been replacing
branch banking.
The banks in India unlike the global banks have
hooked on to computerization drive during 1980s and 1990s but the pace was
found gaining momentum from the beginning of the 21 st century. They started
with PC-based system and further move to total branch automation (TBA) and
later to networking and implementation of centralized core banking solution
(CBS).but it also right to mention that transition to CBS has not been smooth
in a large number of traditional banks specially in the public sector. this has
been affecting their CBS packages lending to reduced effectiveness and
efficiency of the solution. The rural and small branches are still to enjoy the
benefits of online banking. In a majority of the PSBs, we find bank employees
not well aware of the management of technology because they have not been
made available educational aid and training facilities for smooth operation and
maintenance. This has also been obstructing the process of channelizing the
real benefits of technology to the customers.
The rural segment of bank customer may get advantages of
new generation of technology, if we find bank authorities evincing interest in
developing and expanding wireless technology. The latest innovation in the
area low cost ATMs, point of sale terminal (PoS), smart card, etc., which may
come to the help of remote villages. it is pertinent that banks identify the rural
potential for mobilizing low cost deposits through electronic banking channels.
76
We cannot negate that the processed of mobilizing small saving with the help
of techno-driven would also be cost effective.
The E-banking liberated the customers from the constraints of
time and space. The ATM channel has transformed the way customers
activate their banking transaction. However, we cannot deny that even today
occasional disruptions such as failure of communication link, nonreplenishment of cash on time have been obstructing the credibility of
electronic banking channel. This draws priority attention of bank professionals
on the fact that they make sincere effort to remove the occasional barriers. It
is also right to mention that all the banks have not been found making
available to the customers the uniform quality of services because quality of
services at different branches varies widely. The customers are found
spending considerable time ate the branch counters to complete their
transaction the bank professional have to control such type of variation and
for that they can make use of six sigma quality level implementation.
The private and foreign banks have been found using technology as
a differentiator especially in terms of improving the customer convenience and
therefore we find them getting the competitive advantage. The PSBs also
need to copy their counterparts we find copious avenues for bank to use
technology as differentiator. This focuses our attention on innovation products
and creative promotion to counter the aggressive competition in the market.
Even in the coming years the E-banking would witness a number of
developments. The banks will continue to experiment with new technologies
and electronic, information based services to serve their customer better.
Online banking is an electronic payment system that enables customers of
a financial institution to conduct financial transactions on a website operated
by the institution, such as a retail bank, virtual bank, credit union or building
society. To access a financial institution's online banking facility, a customer
with Internet access would need to register with the institution for the service,
and set up some password (under various names) for customer verification.
The password for online banking is normally not the same as for telephone
banking. Financial institutions now routinely allocate customers numbers (also
76
under various names), whether or not customers have indicated an intention

to access their online banking facility. Customers' numbers are normally not
the same as account numbers, because a number of customer accounts can
be linked to the one customer number. The customer can link to the customer
number any account which the customer controls, which may be cheque,
savings, loan, credit card and other accounts. Customer numbers will also not
be the same as any debit or credit card issued by the financial institution to
the customer.
To access online banking, a customer would go to the financial institution's
secured website, and enter the online banking facility using the customer
number and password previously setup. Some financial institutions have set
up additional security steps for access to online banking, but there is no
consistency to the approach adopted.
76
INTERNET BANKING SYSTEM

Internet Banking System is a system that has been developed in order to help
clients with the daily day-to -day transactions. Internet banking systems
means that clients can now do banking at the leisure of their homes. Also
known as online banking, the system allows both transactional and non
-transactional features. Online banking or internet banking allows customers
to conduct financial transactions o n a secure website operated by the retail or
virtual bank.
HISTORY OF INTERNET BANKING

in the late '80s and referred to the use of a terminal, keyboard and TV (or
monitor) to numeric keypad to send tones down a phone line with instructions
to the bank. Online bank, Chase Manhattan, Chemical and Manufacturers
Hanover) offered home banking services using the videotext system. Because
of the commercial failure of videotext these banking services never became
popular except in France where the use of videotext was subsidized by the
telecom provider and the UK, where the Prestel system was used.
Society (NBS) in 1983 .The system used was based on the UK's Prestel
system and used a computer, such as the BBC Micro, or keyboard 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. Typical recipients were gas, electricity and
telephone companies and accounts with other banks. Details of payments to
be made were input into the NBS system by the account holder via Prestel. A
cheque was then sent by NBS to the payee and an advice giving details of the
payment was sent to the account holder. BACS was later used to transfer the
payment directly. Stanford Federal Credit Union was the first financial
institution to offer online internet banking services to all of its members in Oct,
1994. Later on it was adopted by worldwide banks
76
State bank of India:And oldest bank. Tracing its roots back some 200 years to the British East
India Company (and initially established as the Bank of Calcutta in 1806), the
bank operates more than 15,000 branches within India, where it also owns
majority stakes in six associate banks. State Bank of India (SBI) has more
than 80 offices in nearly 35 other countries, including multiple locations in the
US, Canada, and Nigeria. The bank has other units devoted to capital
markets, fund management, factoring and commercial services, credit cards,
and brokerage services. The Reserve Bank of India owns about 60% of State
bank of India.
Internet banking at State Bank of India:
WHERE SBI WAS?
These manual procedures were inherited from the Imperial Bank. Traditional
procedures were evolved over decades Very few changes were brought in
those procedures as per the need of time. In that time, mainframe or mini
computers were used for MIS, Reconciliation fund settlement process, or we
can say that for backhand operations purpose.
CHANGES BROUGHT IN INFORMATION TECHNOLOGY BY SBI
In the next decade internet facility was provided for individuals.
2001 - KMPG appointed consultant for preparing IT Plan for the Bank.
Later on Core banking proposed by the IT consultancy company.
All SBI Branches connected and ATMs were launch
2002 All branches computerized but on decentralized systems, there

the initiative of core banking took place.
2008- more than 6500 branches (95% of business) on Core Banking

Solution (CBS)
76
Internet banking facilities for corporate customers were also launched

in early 2008.
More Interfaces developed with e- Commerce & other sites through

alternate channels like ATM & Online Banking.
All Foreign Offices were brought on Centralized Solution
Large network is playing the role of backbone for connectivity across

the country
The Online banking facilities offered by various financial institutions have

many features and capabilities in common, but also have some that are
application specific.
The common features fall broadly into several categories:
A bank customer can perform non-transactional tasks through online banking,
including
viewing account balances
viewing recent transactions
Downloading bank statements, for example in PDF format
viewing images of paid cheques
ordering cheque books
Download periodic account statements
Downloading applications for M-banking, E-banking etc.
Bank customers can transact banking tasks through online banking,

including -
76
Funds transfers between the customer's linked accounts
Paying third parties, including bill payments
Investment purchase or sale
Loan applications and transactions, such as repayments of

enrollments
Credit card applications
Register utility billers and make bill payments
Financial institution administration
Management of multiple users having varying levels of authority
Transaction approval process
the process of banking has become much faster
Some financial institutions offer unique Internet banking services, for

example:-Personal financial management support, such as importing data into
personal accounting software. Some online banking platforms
support account aggregation to allow the customers to monitor all of their
accounts in one place whether they are with their main bank or with other
institutions.
76
Advantage of Internet Banking

As per the Internet and Mobile Association of India's report on online banking
2006, there are many advantages of online banking. It is convenient, it isn't
bound by operational timings, there are no geographical barriers and the
services can be offered at a miniscule cost. Through Internet banking, we can
check our banking transactions at any time of the day, and as many times as
we want to. We also get quarterly statements from the bank. If the fund
transfer has to be made outstation, where the bank does not have a branch,
the bank would demand outstation charges. Whereas with the help of online
banking, it will be absolutely free for us. Thus the advantages of internet
banking can be listed as follows:-
The customer can access his account anytime and from any part of the
world, attracts new customers.
Facilitate the offering of more services.
No monthly payments are required for availing this service.
Free of charge bill Reimbursement and refunds on ATM surcharges.
Attractive interest rates on CDs, savings, etc.
Credit card service at minimal charges.
Simple online submissions for personal accounts, loans and credits.
Increase customer loyalty.
Provide services offered by competitors.
Reduce customer attrition.
High-tech technical advancements in the form of intrusion detection

systems.
76
1.3. History of SBI
The evolution of State Bank of India can be traced back to the first decade
of the 19th century. It began with the establishment of the Bank of Calcutta in
Calcutta, on 2 June 1806. The bank was redesigned as the Bank of Bengal,
three years later, on 2 January 1809. It was the first ever joint-stock bank of
the British India, established under the sponsorship of the Government of
Bengal. Subsequently, the Bank of Bombay (established on 15 April 1840)
and the Bank of Madras (established on 1 July 1843) followed the Bank of
Bengal. These three banks dominated the modern banking scenario in India,
until when they were amalgamated to form the Imperial Bank of India, on 27
January1921.
An important turning point in the history of State Bank of
India is the launch of the first Five Year Plan of independent India, in 1951.
The Plan aimed at serving the Indian economy in general and the rural sector
of the country, in particular. Until the Plan, the commercial banks of the
country, including the Imperial Bank of India, confined their services to the
urban sector. Moreover, they were not equipped to respond to the growing
needs of the economic revival taking shape in the rural areas of the country.
76
Therefore, in order to serve the economy as a whole and rural sector in

particular, the All India Rural Credit Survey Committee recommended the
formation of a state-partnered and state-sponsored bank.
The All India Rural Credit Survey Committee proposed the takeover of the
Imperial Bank of India, and integrating with it and the former state-owned or
state associate banks. Subsequently, an Act was passed in the Parliament of
India in May 1955. As a result, the State Bank of India (SBI) was established
on 1 July1955. This resulted in making the State Bank of India more powerful,
because as much as a quarter of the resources of the Indian banking system
were controlled directly by the State. Later on, the State Bank of India
(Subsidiary Banks) Act was passed in 1959. The Act enabled the State Bank
of India to make the eight former State-associated banks as its subsidiaries.
The State Bank of India emerged as a pacesetter, with its operations carried
Out by the 480 offices comprising branches, sub offices and three Local Head
Offices, inherited from the Imperial Bank. Instead of serving as mere
repositories of the community's savings and lending to creditworthy parties,
the State Bank of India catered to the needs of the customers, by banking
purposefully. The bank served the heterogeneous financial needs of the
planned econ
76
Adoption of Information Technology in Banking System
The IT revolution had a great impact in the Indian banking system. T he use of
computers had led to introduction of online banking in India. The use of the
modern innovation and computerisation of the banking sector of India has
increased many folds after the economic liberalization of 1991 as the
country's banking sector has been exposed to the world's market. The Indian
banks were finding it difficult to compete with the international banks in terms
of the customer service without the use of the information technology and
computers
The RBI in 1984 formed Committee on Mechanization in the Banking Industry
(1984) whose chairman was Dr C Rangarajan, Deputy Governor, Reserve
Bank of India. The major recommendation of this committee was introducing
MICR Technology in all the banks in the metropolis in India. This provided use
of standardized cheque forms and encoders.
In 1988, the RBI set up Committee on Computerization in Banks (1988)
headed by Dr. C.R. Rangarajan which emphasized that the settlement
operation must be computerized in the clearing houses of RBI in
Bhubaneswar, Guwahati, Jaipur, Patna and Thiruvananthapuram.It further
stated that there should be National Clearing of inter-city cheques at Kolkata,
Mumbai, Delhi, Chennai and MICR should be made Operational. It also
focused on computerization of branches and increasing connectivity among
branches through computers. It also suggested modalities for implementing
on -line banking. The committee submitted its reports in 1989 and
computerization began form 1993 with settlement between IBA and bank
employees' association. In 1994, Committee on Technology Issues relating to
Payments System, Cheque Clearing and Securities Settlement in the Banking
Industry (1994) [10]z was set up with chairman Shri WS Saraf, Executive
Director, Reserve Bank of India. It emphasized on Electronic Funds Transfer
(EFT) system, with the BANKNET communications network as its carrier. It
also said that MICR clearing should be set up in all branches of all banks with
more than 100 branches.
76
Committee for proposing Legislation on Electronic Funds Transfer and other

Electronic Payments (1995) emphasized on EFT system. Electronic banking
refers to DOING BANKING by using technologies like computers, internet and
networking, MICR, EFT so as to increase efficiency, quick service, productivity
and transparency in the transaction.
76
E-banking of SBI
State Bank of India (SBI) offers a wide range of banking products
and services to corporate and retail customers. Online SBI is the Internet
banking portal for State Bank of India.
The portal provides anywhere, anytime, online access to accounts for State
Banks Retail and Corporate customers. The application is developed using
the latest cutting edge technology and tools. The infrastructure supports
unified, secure access to banking services for accounts in over 13,000
branches across India.
RETAIL BANKING:The Retail banking application is an integration of severalfunctional
areas, and enables customers to:
Issue Demand Drafts online
Transfer funds to own and third party accounts
Credit beneficiary accounts using the VISA Money Transfer,

RTGS/NEFT feature
76
Generate account statements
Setup Standing Instructions
Configure profile settings
Use E-Tax for online tax payment
Use E-Pay for automatic bill payments
Interface with merchants for railway and airline reservations
Avail DEMAT and IPO services
CORPORATE BANKING:The online SBI corporate banking application provides features to administer
and manage corporate accounts online. The corporate module provides roles
such as regulator, admin, uploaded, transaction maker, Authorizer, and
auditor. These roles have access to the following function:-
Manage users; define rights and transaction rules on corporate

accounts
Access accounts in several branches with a single sign-on mechanism
Upload files to make bulk transactions to third parties, supplier, vendor

and tax collection authorities.
Use online transactional features such as fund transfer to own

accounts, third party payments, and draft issues
Make bill payments over the Internet.
Authorize, modify, reschedule and cancel transactions, based on rights

assigned to the user
76
Generate account statement
Enquire on transaction details or current balance
E-banking application also provide Value added services
Tax payments to central and state governments through site to site

integration.
Supply Chain Finance (e-VFS- Electronic Vendor Finance Scheme)
Direct Debit Facility (supplier direct debited to the customer)
E Collection Facilities for:
Core Banking Transactions
Interbank transaction for incoming RTGS/NEFT transaction.
76
1. E-TICKETING:To book you trains tickets your train ticket, just log on to irctc.co.in and create
an ID threat if you do not have one. Submit your travel plan and book the
ticket(s)-either I-ticketing (where the delivery tickets will be made at your
address) or E-tickets (where in after successful payment transaction, an eticket is generated which can be printed any time. For an e-ticket, the details
of photo identity card will required to be filled in) and select state bank of India
in payment option. You will be redirected to internet banking site of SBI
(www.onlinesbi.com). After submitting the respective ID and password, you
can select your account. After a successful debit, railways will generate the
ticket. E-ticket can be printed by you where as i-ticket will be dispatch by
IRCTC at the given address. Services charges @ rupees.10/- per transaction
shall be levied in addition to the cost of the tickets. Cancellation of e-ticket can
be done by logging on to IRCTCs site; refund amount will be credited to your
account directly within 2-3 day for cancellation of i-ticket, you shall be required
to submit your ticket at a computerized counter of railway and on cancellation.
The amount shall be credited back to your account.
You can also book your air ticket through the e-ticketing features.log on to
India airlines website to make a payment for an e-ticket through state bank of
India, you need to select SBI as the payment option. the payment request will
be redirected to internet banking site. The request may be process best on
value send from the airline website. Once the transaction is process, an
appropriate response will be send to airline site to update the status of the
transaction. you can print the e-ticket immediately
76
2. SBI E-TAX:You can pay your taxes online through SBI E-Tax. This facility enables you
to pay TDS, Income tax, Indirect tax, Corporation tax, Wealth tax, Estate Duty
and Fringe Benefits tax. Click the e-Tax link in the home page. You are
displayed a page with two links Direct Tax and Indirect Tax. Click the Direct
Tax link. You will be redirected to the NSDL site where you can select an
online challan based on the tax you wish to pay. Provide the PAN, name and
address, assessment year, nature of payment and bank name. On selecting
the bank name as SBI and submitting the form, you will be redirected to the
Internet Banking site. After submitting the respective ID and password, you
can select your account for making payment of taxes. After payment is
successful you can print the E-Receipt for the payment.
The E-receipt can be printed at a later date also and the same can be
retrieved from:
Enquiries
Find Transactions
Status Enquiries
Click on the respective transaction to print the tax receipt.

The Indirect Tax link is used to make Central Excise
and Service Tax payments to Central Board of Excise and Customs. The
online payment feature facilitates anytime, anywhere payment and an instant
E-Receipt is generated once the transaction is complete. The Indirect Tax
payment facility is available to Registered Central Excise/Service Tax
Assesses who possesses the 15 digit PAN based Assesses Code. You can
make CBEC payments using the Indirect Taxes link available in the
Payments/Transfers tab. You need to provide your assesses codes registered
with CBEC and select the minor heads towards which you intend to pay tax.
Select the appropriate tax type and enter the tax amount. Select an account
for debiting the total tax amount. You can use any of your transaction
accounts to make the payment. If a payment is successful, CBEC provides a
link to generate an E-Receipt for the payment. Internet banking customers
can pay tax through site to site integration. For government agencies, which
76
are not Internet-enabled, Online SBI offers the Government Tax Payment
facility. This facility is available as a post login feature in the retail and
corporate banking sites of the Online SBI portal. Please note that the cut-off
time for OLTAS and CBEC payment is 8 P.M. IST. Any transactions created
after the cut off time will be processed after 7 A.M. on the following day.
3. E-Bill Payment:-
A simple and convenient service for viewing and paying your bills online.
No more late payments
No more queues
No more hassles of depositing cheque
Using the bill payment you can 'view and Pay various bills online, directly
from your SBI account. You can pay telephone, electricity, insurance, credit
cards and other bills from the comfort of your house or office, 24 hours a day,
365 days a year.
76
4. Third party transfer:You can transfer funds to your trusted third parties by adding them as third
party accounts. The beneficiary account should be any branch SBI. Transfer
is instant. You can do any number of under profile section. You will receive a
One Time SMS password on your mobile phone to approve a third party. If
you do not have a mobile number, third party approval will be handled by your
branch. Only after approval of third party, you will be able to transfer funds to
the third party. You can set limits for third party transactions made from your
accounts or even set limits for individual third parties. Transactions in a day
for amount aggregating Rs.1lakh.To transfer funds to third party having
account in SBI, you need to add and approve a third party, you need to
register your mobile number in personal details link
5. Demand Draft:The Internet Banking application enables you to register demand drafts
requests online. You can get a demand draft from any of your Accounts
(Savings Bank, Current Account, Cash Credit or Overdraft). You can set limits for
demand drafts issued from
6. Account Opening Request:Online SBI enables you to open a new account online. You can apply for a
new account only in branches where you already have accounts. You should
have an INB-enabled account with transaction right in the branch. Funds in an
existing
account
are
used
to open
the
new account.
You
can
Open Savings, Current, Term Deposit and RecurringDeposit accounts of Resi

dents, NRO and NRE types.Just log on to retail section of the Internet
Banking site with your credentials and select the New Account link under
76
Requests tab. You can see all types of accounts. Select the account and
account type you wish to open and submit the same. Then, you need to select
the branch and enter the initial amount to open the account. You can select
any of your accounts for debiting the initial amount. Then, submit the
transaction. Your new account opening request will be processed by the
branch.
7. Account Statement:The Internet Banking application can generate an online, downloadable

account statement for any of your accounts for any date range and for
any account mapped to your username. The statement includes the
transaction details, Opening, closing and accumulated balance in the account.
You can generate the online account statement for any date range or for any
month and year. The account statement can be viewed online, printed or
downloaded as an Excel or PDF file. You also have the option to select the
number of records displayed in each page of the statement. The options are
25, 50, 75, 100 and all.
76
8. Demat Account Statement:Online SBI enables you to view Demat account statement and maintain such
accounts. The bank acts as your depository participant. In the third party site,
you can mark a lien on your Demat accounts and use the funds to trade on
stock using funds in your SBI savings account. You can view Dee mat account
details, and generate the followings statements: statement of holding,
statement of transactions, statement of billing.
9. Donation:You
can
make
donation
to
religious
and
charitable
institution
by
using Internet Banking of SBI. Simply log on to http://www.onlinesbi.com/with

your credentials and go to Payment and transfer and click on make donation
link. After selecting the debit account select the religious/charitable institution
that you want to offer donation. After successful payment you can print an Ereceipt for the donation made.
10. ATM (Automatic Teller Machine): State bank network service the bank offers you the convenience of over
26,000 ATMs in India, the largest network in the country and continuing to
expand fast. This means that you can transact free of cost at the ATMs of
State Bank Group (This includes the ATMs of State Bank of India as well as
the Associate Banks - namely, State Bank of Bikaner & Jaipur, State Bank of
Hyderabad, State Bank of Mysore, State Bank of Patiala, and State Bank of
Travancore) and wholly owned subsidiary viz. SBI Commercial and
International Bank Ltd., using the State Bank ATM-cum-Debit (Cash Plus)
card.
76
ATM (Automatic Teller Machine) of state bank of India
76
Other information about SBI web site
Customers using SBI's Internet Banking Service.

For customers using the SBI Internet Banking, all visitor
information is collected along with any information that
customer while using SBI's web site.
Links to, or from, SBI's web site.

SBI is not responsible for information practices employed by
web sites linked with SBIs web site. Generally, links to non-SBI
web sites are provided solely as pointers to information on
topics that may be useful to users of SBI's web site.
Encrypted information.
76
Information provided by customer
on SBI's web site is
encrypted or scrambled in order to secure information. Privacy

policy is subject to change periodically.
Advantages of Internet Banking
As per the Internet and Mobile Association of India's report on online banking
2006, there are many advantages of online banking. It is convenient, it isn't
bound by operational timings, there are no geographical barriers and the
services can be offered at a miniscule cost. Through Internet banking, we can
check our banking transactions at any time of the day, and as many times as
we want to. We also get quarterly statements from the bank. If the fund
transfer has to be made outstation, where the bank does not have a branch,
the bank would demand outstation charges. Whereas with the help of online
banking, it will be absolutely free for us. Thus the advantages of internet
banking can be listed as follows:-
The customer can access his account anytime and from any part of the
world, attracts new customers.
Facilitate the offering of more services.
No monthly payments are required for availing this service.
Free of charge bill Reimbursement and refunds on ATM surcharges.
Attractive interest rates on CDs, savings, etc.
Credit card service at minimal charges.
Simple online submissions for personal accounts, loans and credits.
76
Increase customer loyalty.
Provide services offered by competitors.
Reduce customer attrition.
High-tech technical advancements in the form of intrusion detection

systems.
Need for CRM in the banking industry
A Relationship-based Marketing approach has the following benefits: -
Over time, retail bank customers tend to increase their holding of the
other products from across the range of financial products /services
available.
Long-term customers are more likely to become a referral source.
The longer a relationship continues, the better a bank can understand

the customer.
Customers in long-term relationships are more comfortable with the

service, the organization, methods and procedures
Private banking and CRM
Private Banks has traditionally viewed them as exceedingly 'Customer

Centric'.
They believe in the concept of The wealthier the customers, the more
demanding they are.
The first step towards successfully winning, of private banking

is to understand what customers wants and needs are.
76
Their prime focus is to create differentiated customer experience.
Customer experience
To be a credible player in the market, a private bank must be able to

deliver this customer experience.
The important factors that establish the need for CRM in the Banking
Industry are detailed below:
Intense Competition:There is intense competition among the Private Sector Banks, Public Sector
Banks and Foreign Banks and they are all taking steps to attract and retain
the customers. New technologies, research facilities, globalization of services,
the flood of new products and the concept of all the facilities under one roof to
provide better customer service leading to customer delight.
Well Informed Customers:The Customers in Banking Industry today are well informed. With the
introduction of new technology, the world has become like a small village.
Thus, if a Bank wants to have more customers, it should develop a good
relationship with its present customers and try to maintain the same in the
future also.
Declining Brand Loyalty:In the present scenario, brand loyalty is on decline. The customers are
switching over frequently to avail the better facilities from other banks. Newer
and superior products and services are being introduced continuously in the
76
market. Thus, the banks have to upgrade their products, improve customer
service and create bonds of trusts through proper care of customer needs and
regular communications. With the help of CRM, strong customer loyalty and a
good image for the organization can be developed.
Improved Customer Retention:In the intensely competitive banking industry, retention of existing customers
is vital, which can be achieved through the process of CRM.
Bank use the CRM marketing and advertisement technology in Ebanking in such a way
This generation is created much attraction power over the internet
To collect accurate information on customers with fill the online form

over the internet.
While the moving to the any website the bank advertisement will
appear.
To join bank web site link and show the advertisement with the famous
website through.(e.g. Facebook.com, youtube.com etc)
To target products and services with the life stages of customers
To provide greater customer access to products

internet banking services
(24- Hour banking services)
76
and services like
1.4. CRM strategy use in E-Banking.

In E-banking face to face interaction between bank and customer is not seen
so it plays their rolls simultaneously.
Elements of CRM in E-banking.

The CRM strategies are use in Electronic gadgets and Internet services. And
this internet strategy are also using in banking.
Customer relationship management cycle
Custom
er
Selectio
n
Custom
er
Acquisit
ion
Custom
er
Extensio
n
Custom
er
Retentio
n
76
1. Customer Selection
It refers to customer targeting, segmenting, and mass
customization which offers customized product which fulfils the individual
needs and maintains a low-cost position via mass-market operations. Mass
customization has been introduced into business processes which created
new developments. First, customers have individual lives, and everyone has a
unique set of needs and desires. Second, the fast growth of information and
production technologies has made it possible to meet these individual needs
to a high degree. The Internet integration with Customer Relationship
Management (CRM) gives possibility to capture and analyses customers click
streams data e.g., by monitoring customers behavior when they are online
and surf the website and make purchase. There are two benefits of mass
customization. First, it is done properly and with accuracy which increases the
customer satisfaction level because only those services and products are
provided which create benefit. Second, mass customization gives the
potential to lock and bind the customer which will reduce the threat of
switching to another website.
2. Customer Acquisition
It focuses on promotion and other
incentives to acquire new customers and to serve existing customers to come
online. While in online channels the firm should have at least the e-mail
address of the customer. Detail customer profile includes information like age,
financial status, and personal interests and customers role in purchase
process. To get this information, customers are offered incentives like gift
certificates or free product samples. Primarily it is done through banner
advertising. Marketers are using tools like viral marketing where the
customers forward web address or company information to others via e-mail
or by using SMS.
76
3. Customer Retention
It turns one-time customers to regular customers and
keeps them as long as possible in online environment. It is achieved from two
dimensions: personalization and communities. While personalization of
website is done by considering the needs of the customer and it makes
possible for him to stick to particular website. While online communities create
network effect with different users. Both types make the users stay on a
particular website.
4. Customer Extension
It has focus on the maximization lifetime
value of a customer. Companies expand this through existing customer
relationship via cross-selling like if there is some change in customer account
like address change, marital status change, large money transfer etc.
76
1.5. SBI E-banking service strategy in banking sector
Banks get benefits of CRM technology in online banking :SBI offers competitive financial products and advisory services, like by having
online banking facility and cash management services in North Europe, a
customer can have real-time overview of its liquidity and currency position, it
can make local payments and across the border transactions, in that way cost
and administrative work is minimized. Similarly SBI has large staff at backoffice operations; on any problem this staff can be accessed. Through SBI
website a customer can pay his bills, have alert of its cash balance via email
or SMS, can get electronic account statement, order foreign currency, able to
access financial markets, monitor investments, trade securities by using SBI
investment tool. A customer can use a PC or a Mac, SBI security system is of
the highest standard. These are the main features of SBI online banking
system; all are not available in English in all operating countries.
A customer can see online information available
for help, see products, services, jobs, organizational structure, browse the
website to get inside information of bank services, a customer can email, call
for instant help to customer support office, or make appointment with bank
staff. Their enquiry is forwarded to the concerned branch, so a customer does
not need to contact other channels. On its website, a customer can see
financial results of many years, profits, speeches of management, bank
announcements, and this is available online and can be accessed instantly.
With Market Online module, a customer can have all information related to
securities prices, interest rates and foreign exchange rates. A customer can
choose its own price profile. Similarly with Trade Finance module at SBI, a
customer can create and process these facilities, like export and import
documentary credits, export and import collections and international
guarantees and can see current their status. It is user friendly overview can
be seen quickly to transactions.
SBI has implemented Direct Marketing tool in
76
May2008 including personalized marketing across all channels and new

products have been distributed. SBI Bank is building a Digital Banking
strategy with main focus on self service, channel shift and automation like
where leads are pushed to the customer at specific times, such as turning 18,
specific products are offered. To do effective marketing it is essential to secure
campaign matching to the specific customer and the ability to push product
offerings in online channels. SBI tracking system is so strong that its central
database locates the browsing customer or visitor on its website and can see
the specification of connected computer sand their location so SBI customers
feel comfortable that no one can interfere in the transactions communication.
Its people who are dealing with customers in financial instruments have
completed training programmed. The cost of operation has reduced because
of automation, reduced staff and self service. Bank has introduced new no-fee
personal banking packages; this has been adopted by thousands of old and
new customers and SBI customers have increased. These no-fee packages
were introduced in Sweden last summer and started this campaign in Norway
in January, 2008.By using IT development and by increased use of the digital
signature, the cost of operation of bank has reduced.
Customers interaction has increased due to
24/7 access and providing the customers the ability to compare multiple
providers. This IT platform has helped because a customer contact via
different channels include bank desk, online channels and they are provided
same service because of central data base. By using SBI e-Banking, its
customers have looked their individual personal fees report pages which were
at least 450,000 by year 2007. By having full information of customers it is
possible to offer differentiated products based on customer recognition and
due to relevant product offering customers loyalty has increased at the bank.
Customers are required to install SBI security software to protect the online
security of transactions. It has e-Safe key security system which meets the
requirements of Danish Bankers Association. It has become a competitive
advantage and has created loyalty for SBI because of online channels where
contents are customized like an example it could come with a message to the
customer can see your house has increased in value, do you know that you
can increase your loan by 1 Million. SBI has done investment in Digital
76
Banking product development, improved process efficiency and give better

customer experience.
How can banks implement CRM technology successfully in online banking?
The fact that online banking makes life easier and saves a lot of time; it is the
number one factor for loyalty. To analyze the customer behavior the tricky part
is to have enough staff and systems that can execute all the marketing
activities and there should be a proactive CRM plan. And the potential is
immense if it is compared with the traditional channels. By doing the
marketing in SBI sin logged environment or by e-mail SBI get several
advantages like:
Lower cost, due to automatic execution of transactions SBI cost is less.
Faster transaction time which means that it can have information from
the customers in about two to three days which mean more sales
opportunities.
In-house production due to in house customer data.
Effective follow-up.
Tracking system that shows leads.
Despite these great potential of an internet site there is necessity to

have a fast and professional in-person support and SBI has the
following possibilities:
Telephone/ general banking support
76
Telephone / support desk for questions regarding the functions on it

sin-logged environment
Branches in many cities
Secured mailing through the in logged environment
Generally, the customers do their transactions by themselves so there is no

need to have operations department to do that. Another cost-cutting
advantage is definitely that SBI has fewer branches and also less people
working there and mostly to focus on online banking. A customer can
communicate with the bank through the in logged environment and via e-mail
which is low- cost communication as compare to postal units or telemarketing.
This e-banking has a great potential and SBI has seen that the online
customers are more active and therefore also more profitable for the bank.
The challenge is how it makes the customer seven more active and what the
triggers are. When it comes to marketing activities SBI see three points. For
personalization on the site.
1. Automatic triggers -for example, alerts that the customer has to pay his ebill. This is through the website, SMS or E-mail.
2. Non-manual information and offers for example, when the customer

exceeds a high balance on the checking account, one should have the
automatic message one should transfer some part to a higher yield account.
Another example is a sales or buying indication.
3. Narrow groupings of manually produced information and offers. By

convincing and proving to the customers that their internet bank is not only a
site where one does the everyday transactions on a 24 hours basis. That SBI
offer help and advice on how to solve and improve the economic situation
through the different life-stages of the customer. This is going to become even
76
more crucial with younger generations that have high requirements of modern
technology.
Successful factor for CRM

It is quite necessary to consider the following factors for successful
implementation of CRM in banking industry:
To motivate customers to initiate revenue generating contacts.
To understand customers needs even before themselves.
To decrease customer churn by increasing customers satisfaction.
To use technology to improve customers service enables a greater

degree of customer differentiation in order to deliver unique customer
interaction.
To make customer and employee friendly through CRM.
To ensure that employees at all levels are accurately collecting the

information of the CRM system.
76
1.6.
Customer satisfaction in E-banking and benefits.
Benefits of E-banking
To the Customer
To the Bank
1. Benefits to the customer

The E-banking is found very useful to customer. The emergence of technodriven services has librated the customer from the constant of time and space
thanks to the world class service quality and standard, the E-banking has
been providing to the customer. The customer have freedom to have access
to the bank any-time and any-where. The cyber banking option help them in
having the view of account, statement, etc. the better found management,
encryption and digital certification provide to the customers the confidence
that their information and accounts are protected from unauthorized access all
financial data can be obtained by them, 24 hours a day and 7 days per week.
The account holder is armed with the password which help protection of their
funds the customer are not required to carry high cost. The transaction cost is
found lower among the entire conventional electronic delivery channel.
The E-banking enables NRI in many ways. They are position to
monitor their local bank account and transfer money to their joint account
even from abroad. The NRIs now can transfer or invest in India in open
ended schemes using the internet through a web address. They are not
required visit a bank because the entire process investing money he can be
done over the net it offers and assures security to get electronic statement
printed or downloaded.
The customers are not required to stand in a queue to complete
their financial transactions. They just press a few keys to order a draft or pay
76
or bill. Internet banking services provide remote banking services and facilities
and provided information needed by online customers. It attracts feature
customers to generate potential business for the bank. With facility like mobile
alerts, the customers get real time information about transactio9n in their
accounts. The internet services also provide to the customer account details
and statement, financial modeling tools which allow the simulation of various
deposits option to arrive.
The above mentioned facts make it clear that E-banking its
found advantages to the customers in many ways. We cannot negate that Ebanking has redefines the quality of customer services. They get innovative
services and also enjoyed the advantages of value addition process. The
concept of anywhere, anytime-banking has lured the customer to such an
extent that we find them developing addiction. It is upon the bank that they
keep on moving t5he process of innovation and offers to the customers the
best quality of services with their counterpart do not offer.
Though we find e-banking or internet banking offering to the banks and
customers a number of services however there are some limitations which
need due care and precaution. The increasing cases of frauds make it
essential that level of security is assigned due weight age.
2. Benefits to the banks

The banks are substantially benefited by promoting online banking. They are
found in a position to eliminate or minimize the endless paper-based
statement, spreadsheets, bulky accounts, ledgers including the use of
calculator. With just a PC link, online banking is found to be operational and
the link allows accessibility to customer. With online presence, the banks can
rebuild their brand in terms of service at low cost and even worldwide. The
workload of branches is considerably reduced with the help of online banking.
The banks find it easier to identify both individuals and NRIs through the
internet. The operational flow and accuracy are found of high rate in the ebanking. The banks find it easier to minimize the operational costs. The
76
quality of services can be innovated and competitive advantages of online

banking help bankers in excelling competition. In a true sense, the banks are
in a position to make use of e- banking as a diffentiator. In india , the foreign
banks and the new generation of private banks had the early advantages of
promoting e- banking which have helped them in establishing an edge over
their counterparts. Innovative services helps in excelling the aggressive
competition.
By promoting ICT, the banks are efficacious of using technology as a
strategic resource and align it well with their business strategies and
objectives. Banks are also in a position to mobilized low-cost deposits
particularly in the rural areas. The latest innovation in wireless technology, low
cost ATMs. Point of sales (POS) terminals, smartcard etc. may help banks in
capitalizing on the earn tab opportunities found in the rural areas. Banks are
also in a position of taking the advantages of being in buyers market with
tactful planning and avoid becoming captive users. the core banking (CBS)
enhance banking services in a visible manner and the banks are found
successful in increasing the number of satisfied customers.
In view of the above, it is right to mention that E-banking multifaceted benefits
to the banks and therefore we find banks in a general evincing special interest
in promoting the infusion of new generation of technology. Improving general
customers and increasing the number of royal customers, reduction of cost of
operations, increase in the revenue and volume of business and reduction in
service delivery time for most B2C transaction are the outstanding benefits of
E-banking.
76
2. Review of Literature
The relevant literature relating to the topic is reviewed as under:

Joseph M. et al (1999), the study investigates role of technology on Australian
Banking sector and 300 customers were surveyed. The findings suggested
that except from convenience/accuracy and efficiency e banking services did
not match with importance rating specified by customers.
Nath Ravi & Schrick Paul (2001), e-Service Journal, Bankers' Perspectives on
Internet Banking, Vol. 1, no. 1. In every industry, E-commerce is
revolutionizing the way business is conducted. New business models are
replacing outdated ones and organizations are rethinking business process
designs and customer relationship management strategies. Banks are no
exception to this transformation. This study examines bankers views on
providing banking services to customers using the web. The results show that
Internet banking is in its nascent stage only a small number of banks offer
web-based banking to customers and the full benefits of Internet banking are
still to be realized by many banks.
Zhou, L (2004), The study analyzed impact of service quality in banks on

customer satisfaction in Indians retail banking and it was found out that
reliability and assurance were the primary drivers of customer satisfaction. It
was also found out that there were significant variations in expectations and
perceptions in customers
Debashis and Mishra (2005), the study analyzed and measured customer
76
Satisfaction in branch services provided by nationalized banks in northern

India. 1200 customers were given questionnaires and it was found out that
computerization, accuracy in transactions, attitude of staff and availability of
staff Influenced customer satisfaction. Least important factor was promotion of
the products and various schemes.
Mushtaq M Bhat (2005), this study finds out service quality parameters in
bank through SERVQUAL and influence of demographic variables. The study
was limited to SBI, PNB, Jammu and Kashmir bank Citi bank and Standard
Chartered Grind lays bank. Sample size was 800 and study found out that
foreign banks are better than Indian banks. SBI was found to be relatively
poor on reliability and responsiveness. Banks in Delhi were comparatively
better in service quality.
Mohammad et al (2005), the study tries to develop a comprehensive model of

banking automated service quality taking into consideration unique attributes
of each delivery channel and other dimensions which influence service quality.
P K Gupta (2008), Objective of this study was to find out the behavior of
customers with respect to internet banking. The study found out that internet
banking was found to be easier and speedier than conventional banking and
trust, accuracy and confidentiality were the most important factors here.
Rod et al (2009), the study focused on relationship between service quality,

overall internet banking service quality and customer satisfaction in New
Zealand. The study found out that online customer service quality and online
information systems were significantly and positively related to overall
customer internet banking service quality. Overall internet banking service
quality and customer satisfaction were positively correlated
76
Pooja Malhotra & Balwinder Singh (2009), Eurasian Journal of Business and
Economics, the Impact of Internet Banking on Bank Performance and Risk:
The Indian Experience, Vol. 2 no. 4. The paper describes the current status of
internet banking in India and its implication for the Indian banking industry.
The attempt was made to see if there is any association between adoption of
Internet banking and the banks performance and risk. The internet banking
has a negative and significant impact on risk, which shows that, the adoption
of Internet banking has not increased the risk profile of banks.
Neha Dixit & Dr. Saroj K Dutta (2010), Journal of Internet Banking and
Commerce, Acceptance of E-banking among Adult Customers: An Empirical
Investigation in India. Points out that in a country like India there is a need for
providing better and customized services to the customers which can be
make possible through e-banking. The people have positive perception about
online banking, should be treated with the great value.
Sachin Mittal & Rajnish Jain (2010), this is basically for the banking industry
and effect of IT based services on customer satisfaction. The study highlights
customer satisfaction levels among young customers in banking industry. A
survey indicates the gaps between customers expectations and perception
with respect to IT based banking services. Findings indicated need to improve
the IT based services for enhancing customer satisfaction.
Joshua A J & Moli P Koshy (2011), Journal of Internet Banking and

Commerce, Usage Patterns of Electronic Banking Services by Urban
Educated Customers:-Glimpses from India, Vol. 16 no. 1. This paper
examines various usage patterns of technology-enabled banking self services
such as ATM services, internet banking services, tele-banking services and
76
mobile banking services. Only if the users start using all kinds of services
within the ambit of the electronic banking would the adoption of these services
would be complete and the users would then derive maximum benefit from
these electronic banking channels
Kumbhar, Vijay (2011), It examined the relationship between the
demographics and customers satisfaction in internet banking,. It also found
out relationship between service quality and customers satisfaction as well as
satisfaction in internet banking service provided by the public sector bank and
private sector banks. The study found out that overall satisfaction of
employees, businessmen and professionals are higher in internet banking
service. Also it was found that there is significant difference in the customers
perception in internet banking services provided by the public and privates
Sector banks.
76
3. Data Analysis
Analysis of Secondary data:The most general type of electronic banking in our times is banking via the
Internet, in other words Internet banking. This type of banking allows
consumers to check the balances in their accounts, transfer funds and order
electronic bill payments. Internet banking systems allowing customers to
apply for loans, trade stocks or mutual funds, and even view actual images of
their checks or deposit slips. The services available for Internet banking vary
from bank to bank. Now a day the Internet is the main channel for electronic
banking. Internet banking offers many benefits to banks and their customers.
The main benefits to banks customer service and satisfaction to customers
Internet banking offers also new value. With the help of the Internet, banking
is no longer bound to time or geography. Consumers all over the world have
relatively easy access to their accounts 24 hours per day, seven days a week.
It makes available to customers a full range of services including some
services not offered at branches. Internet banking has the advantage that the
customer avoids travelling to and from a bank branch. In this way, Internet
banking saves time and money provides convenience and accessibility.
Customers can manage their banking affairs when they want, and they can
enjoy more privacy while interacting with their bank. It has been claimed that
Internet banking offers the customer more benefits at lower costs indicated
that Internet banking is extremely beneficial to customers because of the
savings in costs, time and space it offers, its quick response to complaints,
and its delivery of improved services, all of which benefits make for easier
banking.
76
Analysis of primary data:Age target of customers
INTERPRETATION:As per the bar diagram we are having 50 customers review. this diagram is
indicated the maximum peoples are under the 26-35 range between. And
second age position is 36-45.
26-25 age bar customers are employee class and they are using
e-banking services more than 46 above customers.
76
1. Customers have using E-banking services currently

Number of customers
YES
Number of customers
48
NO
INTERPRETATION:As per the pie chart we are having 50 customers review. The overall
calculation of customers have using E-banking services currently is 48 and 2
persons are not using Internet banking services and this diagram is indicated
the maximum peoples are using the facility of Internet banking because of
Easiest way, any-where, any-time banking segment to transact fast with the
bank.
76
2. Type of E-banking service customers use mostly

Number of customers
Number of customers
ATM
43
Online ticketing
E-bill payment
RTGS/NEFT
INTERPRETATION:As per the bar diagram we are having 50 customers review. The overall
calculation of customers which type of E-banking service they use mostly is
ATM. The diagram shows the mostly customers are using ATM services of the
SBI bank. This diagram is indicated the maximum peoples are using the
facility of ATM because of customers always need for money it any-where,
any-time. And RTGS/NEFT is second number of position were the customers
using this services mostly after the ATM.
76
3. Customers use mobile banking services

Number of customers
YES
Number of customers
33
NO
17
calculation of customers uses mobile banking services. The diagram shows
the mostly customers are using mobile banking services of the SBI bank. This
diagram is indicated the maximum peoples are using the facility of mobile
banking.
Customers can transact easily and made the cash delivery
transaction and checking their account statement on their mobile it any-where,
any-time.
76
4. Customers use ATM services

Number of customers
YES
Number of customers
47
NO
calculation of customers using ATM services. The diagram shows the mostly
customers are using ATM services of the SBI bank. This diagram is indicated
the maximum peoples are using the facility of ATM because of customers
always need for money it any-where, any-time.
76
5. Customers using RTGS/NEFT services

Number of customers
YES
Number of customers
18
NO
32
calculation of customers using RTGS/NEFTservices. The diagram shows the
mostly customers are using RTGS/NEFT services of the SBI bank.
6. Customers using E-bill payment services
76
Number of customers
YES
Number of customers
26
NO
24
INTERPRETATION:As per the bar diagram we are having 50 customers review The overall
calculation of customers using E-bill payment services. The diagram shows
the mostly customers are using E-bill payment services of the SBI bank.
E-bill payment system in that person can be easily pay the online bill over
the Internet. That indicates the 52% customers use this system and they know
about it.
76
7. Customers using E-ticketing services

Number of customers
YES
Number of customers
20
NO
30
calculation of customers using E-ticketing services. The diagram shows the
mostly customers are not using E-bill payment services of the SBI bank.
E-ticketing system in that person can be easily paying the online bill over
the Internet. That indicated the 60% customers are not use this system and
they dont know about it.
76
8. How frequently customers using E-banking services of SBI

Number of customers
Number of customers
In a day
In a Month
In a Week
cant say
5
32
calculation of How frequently customers using E-banking services of SBI. This
diagram is indicated the 64% customers chosen cant say option so it means
the E-banking services will needed in any time.
9. Customers bank accounts satisfy their needs on time

Number of customers
Number of customers
76
YES
34
NO
16
INTERPRETATION:As per the bar diagram we are having 50 customers review. Customers bank
accounts satisfy their needs on time are 68% of customers satisfied and 32%
of customers are not satisfied.
10. Bank provide customers the facilities that customers aware about
Number of customers
Number of customers
76
YES
22
NO
28
INTERPRETATION:As per the bar diagram we are having 50 customers review. Bank provides
customers the facilities that a customer aware about is 44% of customers are
aware about and 56% of customers are not aware about.
76
11. Bank satisfied your customer provides

Number of customers
YES
Number of customers
37
NO
13
INTERPRETATION:As per the bar diagram we are having 50 customers review. Bank satisfied
your customer provides 74% of customers are satisfied and 26% of customers
are not satisfied of SBI provides.
76
12. Customer think Others Bank will provide the best E-banking services
to their customer better than SBI
Number of customers
YES
Number of customers
31
NO
19
calculation customers think Others Bank will provide the best E-banking
services to the customer better than SBI. The diagram shows the 62%
customers are think that other bank provide the better services than SBI and
38% of customers are said no in this survey.
76
13. Grade of Customer management of SBI E-banking service

Number of customers
Number of customers
Excellent
Good
29
Average
Poor
Worst
INTERPRETATION: - As per the bar diagram we are having 50 customers

review. The overall calculation of customer management of SBI E-banking
service. This diagram is indicated the maximum peoples are given a good
grade of the customer management. This is a good sign for customer
relationship management in SBI e-banking services and SBI do to regulate
our facilities.
76
14. The grade of overall customer perception toward E-banking services
Number of customers
Number of customers
Excellent
Good
27
Average
12
Poor
INTERPRETATION:As per the bar diagram we are having 50 customers review. This diagram is
indicates the maximum number of customers are given good grade of their
overall perception toward E-banking services.
15. Overall grade of SBI E-banking service
76
Number of customers
Number of customers
Excellent
12
Good
21
Average
13
Poor
INTERPRETATION:As per the bar diagram we are having 50 customers review. The diagram
shows the mostly customers given good grade to the SBI E-banking services.
the maximum is 42% and minimum is 8% for poor grade of the SBI bank Ebanking services. This diagram is indicated the maximum peoples are using
the facility of ATM because of customers always need for money it any-where,
any-time. And RTGS/NEFT is second number of position were the customers
using this services mostly after the ATM.
76
4. FINDING
The findings indicate that banks use CRM mostly for mass
customization, customer profiling, self service, one to one interaction
and automatic locks in flow of financial data like security prices which
ultimately results in reduced cost of operation and increased customer
loyalty and more profits.
In online banking or internet banking made things much easier for the
people and saves lot of time.
Similarly customer feedback in online banking is considered as
backbone for successful implementation of CRM strategy.
This study states that internet banking provides greater reach to
customers. And the younger generation were using E-banking services
are more as compared to older generation because of new innovation
in Information Technology and there adoption level high in E-banking.
E-banking technology is highly useful to customer as well as bank and
other organization like government organizations. To increase the
productivity, efficiency, service quality of banks and expansion of bank.
From the customer point of view that private banks provides better
services as compared to public bank, but secured transaction public
banks(SBI) will preferred by most of respondent.
SBI should try to maintain proper system of maintenance of Internet
banking.
76
5. CONCLUSION
After studying the secondary data analysis, I came to know various

strengths of SBI such as quality customer service, greater reach,
customer loyalty, easy access to information, 24 hours access, easy
online applications etc.
After studying the primary data analysis, I came to know the maximum
number of SBI customers is satisfied to the E-banking services
customer management of SBI. And the customer perception toward EBanking is good grade indicates the primary data.
Personal attention can be given by bank to customer also quality
service can be served.
SBI should put efforts to multiply the number of strengths. In terms of
weakness I come to know some of the major weaknesses they are lack
of awareness of internet banking among the customers, obsolesce of
technology related to security, complicated procedures of availing
internet banking facilities, lack of knowledge among the employees of
SBI. SBI should concentrate on the weaknesses and reduce them to
zero.
Most of the respondents like E-banking services provided by SBI. But
they hesitate to use because they dont know how to use it in correct
manner. SBI Should try to give proper training or other solution to solve
this problem and it should try to improve their service level to face the
stiff competition given by other banks.
76
6. Questionnaires
NAME:-________________________________________________
AGE:-___________
Gender: - Male/ Female
Profession: - Employee
Student
Other
__________________________________________________________
1) You have using E-banking services currently?
Yes / No
2) Which type of E-banking service do you use mostly?

ATM Service
online tickets bookings.
online bill payment
RTGS/NEFT
3) Do you use mobile banking services?

Yes / No
4) Do you use ATM services?

Yes / No
5) Do you use RTGS/NEFT services?

Yes / No
76
6) Do you use E-bill payment services?

Yes / No
7) Do you use E-ticketing services?

Yes / No
8) How frequently you use SBI E-banking services?

Once in a day
once in a Week
once in a Month
cant say
9) Does your bank account satisfy your needs on time?

Yes / No
10) Is your bank provide you the facilities you aware about?
Yes / No
11) Is your bank satisfied your customer provides?

Yes / No
76
12) Do you think Others Bank will provide the best E-banking services to
you better than SBI?
Yes / No
13) How would you grade the Customer management of SBI E-banking
service?
Excellent
Good
Average
Poor
Worst
14) How would you grade the overall perception toward E-banking services?
Excellent
Good
Average
Poor
15) How would you grade SBI E-banking service?
Excellent
Good
Average
Poor
76
7. Bibliography
[1] S.M. Jha Bank marketing Himalaya publication house.
[2] Kristin Anderson and Carol Kerr customer relationship management TATA
McGraw hill edition.
[3] SBI Training guide for internet banking
[4] Personnel and Human Resource Management P.Subba Rao, Himalaya
Publications,2008.
[5]. Marketing Management Philip Kotler,13 th Edition.
[6]. Research Methodology C.R.Kothari, New Age Publishers,2nd Edition
www.sbi.co.in
www.finacle.com
www.onlinesbi.com
www.statebankofindia.com
76

E Banking

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

E Banking

Uploaded by

Copyright:

Available Formats

Study of CRM in E-Banking services provided by SBI

1.1. Customer relationship management

1.3. History of SBI

1.4. CRM strategy use in E-Banking

1.5. SBI E-banking service strategy in banking sector

1.6. Customer satisfaction in E-banking and benefits.

Study of CRM in E-Banking services provided by SBI

Study of CRM in E-Banking services provided by SBI

6. Introduction to the study

6.1. Objective of study

To study the various e-banking services provided by the SBI to their

Find the customer satisfaction relating to E-banking service.

To know the customer perception toward the E-banking.

To understand the use and importance of E-Banking in banking sector.

6.2 limitation of the study

There is the possibility of further updating of this research paper

The period of the study is limited 7 weeks only.

The study was conducted in Mumbai city.

Study of CRM in E-Banking services provided by SBI

6.3 Methodology & sources of Data

3.1. Nature of the study

3.2. Method of Data Collection

Primary data:Survey by distributing questionnaire to the people taking sample size of

Secondary data:Gathering data through books, websites, newspapers, etc.

3.4. Sample Size

Study of CRM in E-Banking services provided by SBI

1.1 Customer Relationship Management

Study of CRM in E-Banking services provided by SBI

innovative and convenient technology-based services to their customers.

Study of CRM in E-Banking services provided by SBI

Study of CRM in E-Banking services provided by SBI

Definition of CRM (Customer Relationship Management)

Customer Relationship management is a comprehensive

Study of CRM in E-Banking services provided by SBI

stresses on understanding needs & desires of customer in order to have

Purpose of CRM in Every organization and Industry

To push to up sales with existing customers.

To give excellent Post selling service, using customer integrated

To define new selling procedure & Services.

To Increase Loyal modern values.

To design product as per specification of consumer.

Study of CRM in E-Banking services provided by SBI

Types of CRM adopted by bank

Study of CRM in E-Banking services provided by SBI

Need for Customer Relationship Management in the banking industry.

Intense Competition: There is intense competition among the Private Sector

Study of CRM in E-Banking services provided by SBI

Declining Brand Loyalty: In the present scenario, brand loyalty is on decline.

Improved Customer Retention: In the intensely competitive banking industry,

The Generic Constitutes of CRM is:-

1. Customer Acquisition: It can be considered the connectivity between advertising and

3. Customer Value: A customer value proposition is a business or marketing

Study of CRM in E-Banking services provided by SBI

employees, partners or suppliers.

4. CRMS BENEFITS TO THE BANKING INDUSTRY

Benefits of CRM can be categorized into three groups namely:

CRM benefits to the

Benefits for Customers

Coordinated and professional approach to customer contact.

Up-to-date customer information, Banks can offer more personalized

Customers feel empowered if they have greater access to products

Targeted product and service offerings can be timed to coincide with