I. INTRODUCTION:

The increasingly competitive environment in the financial service market has resulted in pressure to develop and utilise alternative delivery channels. The most recently delivery channel introduced is online or electronic banking also known as e-banking (Daniel and Storey, 1997). It is a radical technological innovation with potential to change the structure and nature of banking. To sustain business competitiveness, more and more banks are transforming from their traditional approach of “bricks and mortar” into a “clicks and mortar” one under the recent emergence of electronic commerce and business (Safeena, Date and Kammani, 2010).

Electronic banking is the faster delivery channel of banks' information and services to customers via different electronic platforms that can be used with different devices like personal computer (PC), mobile device and ATM. It also allows customers to use banks website to perform simple and advanced transactions without physical presence in bank such as access account information 24 hours and 7 days a week, transfer fund electronically, pay bill, shop online, recharge, book ticket and many such facilities.

E-banking has also led to the emergence of new banks, which operate only through the internet and do not exist physically. Such banks are called virtual banks or internet only banks. Customers use e-banking services because they do not want to queue in banks for long time, or wait on the phone for regular transactions. They want to perform their financial operations anywhere and anytime. With the number of computers increasing every year, the electronic delivery of banking services is becoming the ideal way for the banks to meet their customers’ expectation (Khan, 2011).

Table I: Different Types of E-banking Services

Types of E-banking	Description
Account access	Customers can access account information anytime and anywhere over internet.
Balance transfer	Transfer money between accounts.
Bill payment	Customer can pay any type of bill such as utility bills, electricity, phone, credit cards and insurance premium.
Electronic funds transfer (EFT)	Customer can transfer funds from one bank account to another bank account without any paper money changing hands.
Core banking solution (CBS)	Core banking solution allows customer to operate account from different branches of bank or different locations. It includes the collection, storage, transfer and processing of information.
E-commerce	Customers can conduct business over net without exchanging any papers or any meeting between two persons.

Source: (Shah and Clarke, 2009, p. 23)

A. Benefits of Electronic Banking:

Electronic banking is totally concerned with the internet, providing the facility to its customers to use different kinds of online banking services like access the account information, transfer fund from one place to another place, pay bills, purchase product over the network, request a cheque book, recharge mobile and make online investments. “It is essential for the banks to have the official bank website providing the possibility to do transactions so that banks can be qualified as providing the online banking services” (Sardar and Shamim, 2010, p. 8). This facilitates customers to avail online banking services anytime, anywhere and make them more independent in the choice where and when to bank. The adoption of e-banking by the financial institutions creates lots of benefits to them for instance banks have reduced their staff for working in banks because online banking will save lots of time, reduce paper work and improve efficiency of bank. It is faster, easy to use, time saving and cost saving technique which is free from place restriction and more efficient in cross border payments. Hassle free execution of all transaction and easiness provides to adopt the new trend of technology to trade information among different groups and business parties (Sardar and Shamim, 2010).

II. REVIEW OF LITERATURE:

Wu, Hsia and Heng estimated the difference between bricks-and-mortar banking and e-banking. The study indicates that the nature of e-banking innovation is disruptive, leading to drastic changes in both technological knowledge and business model. E-banking creates extraordinary opportunities for the banks in the ways they organize financial product development, delivery of services, and marketing via the internet. While it offers new opportunities to banks, it also poses challenges such as the innovation of IT applications, the entrance of new competitors and emergence of new business models. Muraleedharan threw light on drastic changes at structural and organizational levels of banking sector. Modern banking has developed human life into a virtual mode that allows people to purchase and pay online, perform banking operations online without risking themselves to facing errors and frauds. In modern banking, internet has revolutionized and created a new business class of online bankers and online brokers. Internet banking offers low-cost delivery channels to the customer by creating a joint venture between the banks and the information portals by offering core banking facilities such as ATM, credit card, debit card and smart card. Mannan determined the perception of the customers towards the implementation of technology in Indian banks. The findings indicate that customers are satisfied with the technology related banks products and services. Further findings suggest that bankers need to focus on improvement in e-banking services and also create the awareness of electronic banking products and services to each and every section of the society. Sawant showed various technologies which are used by customers in e-banking like automated clearing house (ACH), national automated clearing house association (NACHA), and national electronic fund transfer (NEFT), electronic funds transfer (EFT), core banking and automated teller machine (ATM).

The study indicates that the Indian banks are using information technology (IT) not only to improve their own internal processes but also to increase facilities and services to their customers. Efficient use of technology has facilitated accurate and timely management of the increased transaction volume of banks that comes with larger customer base. Lohani and Shukla determined the overall perception of the customers towards the services provided by ICICI and Bank of Baroda (BOB) in Lucknow city. Finding shows that private sector bank (ICICI) is better than public sector bank (BOB) in Lucknow city region. Mohideen intended to determine the perceptions of customers regarding the service quality in Indian banking sector. In this research, five important dimensions of service quality such as tangibility, reliability, responsiveness, assurance and empathy were used for the study. Finding shows that customers have different perception towards overall service quality of internet banking. Bahl determined that security and privacy issues are the significant issues in e-banking. If security and privacy issues are resolved, the future of electronic banking can be very prosperous. Ananth, Ramesh and Prabaharan evaluated the customers’ perceptions of service quality in selected private sector banks. In this study, six key dimensions of service quality such as tangibility, reliability, responsiveness, assurance, empathy and accessibility were taken to determine the gap between customer expectation and perception.

The finding shows that empathy-reliability-assurance positively influences the service quality. Rao and Lakew scrutinised the service quality perceptions of customers of public sector and private sector banks in the city of Visakhapatnam, India. Finding of the study shows that the private sector banks need to focus more on tangibility, empathy and responsiveness to enhance quality perceptions of the customers. On the other hand the public sector banks need to focus more on responsiveness. Mistry identified the important service quality dimensions in banking industry. In this study five service quality dimensions such as tangibility, reliability, responsiveness, assurance and empathy were used. Finding indicates that customers give highest importance to reliability, responsiveness and assurance dimensions of service quality.

III. OBJECTIVE OF THE STUDY:

· To determine the differences in customers’ perception towards service quality dimensions of E-banking in public and private banks.

· To suggest/propose strategies of E-banking for public and private banks.

IV. METHODOLOGY:

The present study is based on both primary and secondary data sources for collecting facts and figures related to topic. Primary data is collected with the help of a well structured questionnaire which is prepared on Likert’s five point scale and the respondents have been asked to tick the relevant satisfaction/dissatisfaction agreement. The questionnaire is divided into four variables based on service quality dimensions of E-banking viz. Tangibility, Reliability, Responsiveness, Security and Privacy.

For this research, researcher has selected top three public banks i.e. State Bank of India, Bank of Baroda, Punjab National Bank and top three private banks i.e. ICICI, HDFC, Axis Bank of NCR as it is not possible to cover all the public and private banks of NCR on account of time, finance and other resources required for the purpose. About 500 questionnaires have been distributed out of which 320 completely filled questionnaire have been received from the public and private banks customers of NCR, India. The sample for this study is selected on the basis of convenience sampling method because it is an easy way to collect data for further analysis. In this study Cronbach Alpha Test of Reliability is used to test the reliability of scale, KMO measure and Bartlett test of Sphericity is used for validity of the data. Finally t-test is used to show the differences between the perception of customers between the public and private banks.

A. Reliability Test:

Reliability is the consistency of measurement or the degree to which an instrument measures the same way each time it is used under the same condition with the same subject. In short, it is the repeatability of measurement or consistency of the outcomes.

Table II: Reliability of the Scale

S.No	Dimensions	No. of item	Cronbach’s alpha (α)
1.	Tangible	3	0.702
2.	Reliability	4	0.806
3.	Responsiveness	4	0.825
4.	Security andPrivacy	6	0.871
	Overall reliability	17	0.922

The above table indicates the reliability of Cronbach’s alpha for four dimensions. The items where the value of alpha is more than 0.6 are considered significant for this research. The reliability table shows the variable wise values of alpha, which is more than 0.6 in each variable. Therefore, it is inferred that the data is reliable for further analysis. In the context of reliability of data, the tangibility with reliability of 70 percent, reliability of 80 percent, the Cronbach Alpha of Responsiveness is 0.825, the Security and privacy variable has reliability 0.873, Cost effectiveness Cronbach Alpha value is 0.871, whereas, the overall Cronbach Alpha is 0.922. The Cronbach’s alpha (α) values of the 17 items are narrated in four service quality dimensions namely Tangibility, Reliability, Responsiveness and Security and Privacy.

B. Factor Analysis:

Factor analysis is a statistical technique used for replacing a large number of variables with a smaller number of “factors” that reflect what sets of variables have in common with one another (“Factor analysis,” n.d.). It also can be used to analyze inter-relationships among a large number of variables and to explain these variables in terms of their common underlying dimensions (factors). Following table shows the results of Kaiser-Meyer-Olkin Measure of Sampling Adequacy of the data.

Table III: KMO and Bartlett's test

Kaiser-Meyer-Olkin Measure of Sampling Adequacy.	.915
Bartlett’s test of Sphericity Approx. Chi-Square	2.615E3
Df	136
Sig.	.000

Table shows 3 several very important parts of the output: the Kaiser-Meyer-Olkin Measure of Sampling Adequacy and Barlett’s test of Sphericity. The Kaiser-Meyer-Olkin Measure of Sampling Adequacy is an index used to examine the appropriateness of factor analysis. High value indicating factor analysis is appropriate (Malhotra and Dash, 2010). For the present study, the Kaiser-Meyer-Olkin Measure of Sampling Adequacy and Barlett’s test of Sphericity has been run to check data adequacy for conducting exploratory factor analysis The value of Kaiser-Meyer-Olkin (KMO) is 0.915, which is greater than 0.6 (Hair et al., 2003) and significance value is .000 which indicates that data is sufficient for conducting factor analysis

This has been found that the above table 4 that all 17 statements have the Factor Loading more than 0.4, so therefore the data is found suitable for further analysis.

V. HYPOTHESES:

Ho1: There is no significant difference in the mean value of Tangibility as a dimension of E-banking between the Public and Private Banks.

Ho2: There is no significant difference in the mean value of Reliability as a dimension of E-banking between the Public and Private Banks.

Ho3: There is no significant difference in the mean value of Responsiveness as a dimension of E-banking between the Public and Private Banks.

Ho4: There is no significant difference in the mean value of Security and Privacy as a dimension of E-banking between the Public and Private Banks.

VI. TESTING OF HYPOTHESES:

Ho₁: There is no significant difference in the mean value of Tangibility as a dimension of E-banking between the Public and Private Banks.

The hypothesis seeks to test whether there is no significant difference in the mean value of Tangibility as a dimension of E-banking between the public and private banks. To test this hypothesis, Independent Samples T-test has been used.

Table V: mean, std. deviation, t value and sig. value of tangibility between the public and private banks

Results of T-test
Tangibility vs. Type of Banks
Type of Banks	N	Mean	Std. Deviation	T value	Sig
Public Banks	164	3.49	.832	-7.899	.000
Private Banks	156	4.11	.534	-7.899	.000

In the above table, results of T-test are shown. This table indicates the mean value, standard deviation, t-value and significant value obtained by the public and private banks on Tangibility. This has been found from the above table that the mean value of the private banks is 4.11, which is more than the public banks mean value i.e. 3.49. This is a clear indication that the private banks customers have a positive perception towards Tangibility as compared to the customers of the public banks. Further the above table shows the results of Independent Sample T-test which was put to assess the differences in the perception of customers on Tangibility as a dimension of E-banking between the public and private banks. The t-value is -7.899 and sig. value is .000, which is less than 0.05 (95 percent confidence interval), which indicates that there is a significant difference in the mean value of Tangibility as a dimension of E-banking between the public and private banks. Hence, the hypothesis that there is no significant difference in the mean value of Tangibility as a dimension of E-banking between the public and private banks stands rejected and alternative hypothesis is accepted.

Ho₂: There is no significant difference in the mean value of Reliability as a dimension of E-banking between the Public and Private Banks.

The hypothesis seeks to test whether there is no significant difference in the mean value of Reliability as a dimension of E-banking between the public and private banks. To test this hypothesis, Independent Samples T-test has been used.

Table VI: mean, std. Deviation, t-Value and sig. Value of Reliability between the Public and Private banks

Results of T-test
Reliability vs. Type of Banks
Type of Banks	N	Mean	Std. Deviation	T value	Sig.
Public Banks	164	3.53	.750	-6.403	.000
Private Banks	156	4.00	.527	-6.403	.000

In the above table, results of T-test are shown. This table indicates the mean value, standard deviation, t-value and significant value obtained by the public and private banks on Reliability. This has been found from the above table that the mean value of the private banks is 4.00, which is more than the public banks mean value 3.53. This is a clear indication that the private banks customers have a positive perception towards Reliability as compared to the customers of the public banks. Further the above table shows the results of Independent Sample T-test which was taken to assess the differences in the perception of customers on Reliability as a dimension of E-banking between the public and private banks. The t-value is -6.403 and sig. value is .000, which is less than 0.05 (95 percent confidence interval), which indicates that there is a significant difference in the mean value of Reliability as a dimension of E-banking between the public and private banks. Hence, the hypothesis that there is no significant difference in the mean value of Reliability as a dimension of E-banking between the public and private banks stands rejected and alternative hypothesis is accepted.

Ho₃: There is no significant difference in the mean value of Responsiveness as a dimension of E-banking between the Public and Private Banks.

The hypothesis seeks to test whether there is no significant difference in the mean value of Responsiveness as a dimension of E-banking between the public and private banks. To test this hypothesis, Independent Samples T-test has been used.

Table VII: mean, std. deviation, t-value and sig. value of responsiveness between the public and private banks

		Results of T-test
		Responsiveness vs. Type of Banks
		Type of Banks	N	Mean	Std. Deviation	T value	Sig
	Public Banks		164	3.321	.787	-5.745	.000
Private Banks			156	3.799	.695

In the above table, results of T-test are shown. This table indicates the mean value, standard deviation, t-value and significant value obtained by the public and private banks on Responsiveness. This has been found from the above table that the mean value of the private banks is 3.799, which is more than the public banks mean value i.e. 3.321. This is a clear indication that the private banks customers have a positive perception towards Responsiveness as compared to the customers of the public banks. Furthermore, the above table shows the results of Independent Sample T-test used to assess the differences in the perception of customers on Responsiveness as a dimension of E-banking between the public and private banks. The t-value is -5.745 and sig. value is .000, which is less than 0.05 (95 percent confidence interval), which indicates that there is a significant difference in the mean value of Responsiveness as a dimension of E-banking between the public and private banks. Hence, the hypothesis that there is no significant difference in the mean value of Responsiveness as a dimension of E-banking between the public and private banks stands rejected and alternative hypothesis is accepted.

Ho₄: There is no significant difference in the mean value of Security and Privacy as a dimension of E-banking between the Public and Private Banks.

The hypothesis seeks to test whether there is no significant difference in the mean value of Security and Privacy as a dimension of E-banking between the public and private banks. To test this hypothesis, Independent Samples T-Test has been used.

Table VIII: mean, std. deviation, t-value and sig. value of security and privacy between the public and private banks

Results of T-test
Security and Privacy vs. Type of Banks
Type of Banks	N	Mean	Std. Deviation	T value	Sig
Public Banks	164	3.565	.772	-6.407	.000
Private Banks	156	4.044	.540	-6.407	.000

In the above table, results of T-test are shown. This table indicates the mean value, standard deviation, t-value and significant value obtained by the public and private banks on Security and Privacy. This can be seen in the above table that the mean value of the private banks is 4.044, which is more than the public banks mean value i.e. 3.565. This is a clear indication that the private banks customers have a positive perception towards Security and Privacy as compared to the customers of the public banks. Moreover, the above table exhibits the results of Independent Sample T-test that was used to assess the differences in the perception of customers on Security and Privacy as a dimension of E-banking between the public and private banks. The t-value is -6.407 and sig. value is .000, which is less than 0.05 (95 percent confidence interval), which indicates that there is a significant difference in the mean value of Security and Privacy as a dimension of E-banking between the public and private banks. Hence, the hypothesis that there is no significant difference in the mean value of Security and Privacy as a dimension of E-banking between the public and private banks stands rejected and alternative hypothesis is accepted.

Table IX: Summary of Hypotheses

No.	Hypotheses	Results
H₀₁	There is no significant difference in the mean value of Tangibility as a dimension of E-banking between the Public and Private Banks.	Rejected
H₀₂	There is no significant difference in the mean value of Reliability as a dimension of E-banking between the Public and Private Banks.	Rejected
H₀₃	There is no significant difference in the mean value of Responsiveness as a dimension of E-banking between the Public and Private Banks.	Rejected
H₀₄	There is no significant difference in the mean value of Security and Privacy as a dimension of E-banking between the Public and Private Banks.	Rejected

VII. CONCLUSION:

The findings of the study provide important insights to banks while framing their service quality e-banking strategies and policies. This study identified 17 attributes that are important to customers under four dimensions: Tangibility, Reliability, Responsiveness, security and Privacy. The results provide empirical evidence that the four service quality e-banking dimensions show significant difference between public and private of NCR, India. This study has limitations that need to be acknowledged. The present study is limited with bank customers’ perception about e-banking services and there is complete absence of the employees’ perception about the e-banking services. The another limitation of this study is geographically restricted to Delhi NCR due to time and financial limitation and is also restricted to public and private banks only. Co-operative and foreign banks are not included in the study.

VIII. SUGGESTIONS:

· E-banking should be simple, fast and user friendly, so that it can be easily understood by old age customers.

· Present age is an e-age. Therefore, it is necessary for all banks to provide more and more e-banking channels that should suit to all type of customers.

· There is cut throat competition between public and private banks. So public banks should provide latest and better technology to the customers as compared to private banks.

· The main problem of non adoption of E-banking in India is trust. The customers of E-banking do not have trust on online banking. So banks should take strong security measures to develop the trust of customers on E-banking.

IX. REFERENCES:

1. Ananth, A., Ramesh, R. and Prabaharan, B. Service quality gap analysis in private sector bank: A customer perspective. Indian Journal of Commerce and Management Studies, 2(1); 2011: 245-252.

2. Bahl, S. Emerging challenges in e-banking upheavals in global scenario. Radix International Journal of Economics and Business Management, 1(7); 2012:

3. Daniel, E., and Storey, C. On-line banking: Strategic and management challenges pergamon. PII: 4-5 (S0024-63010007). 1997.

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5. Hair, J. F., Celsi, M. W., Money, A. H., Samouel, P. and Page, M. J. Essentials of business research methods. ME Sharpe. 2003.

6. Hair, J. F. et al. Multivariate data analysis (Vol. 6). Upper Saddle River, NJ: Pearson Prentice Hall. 2006.

7. Khan, M. A. Global trends in e-commerce. New Delhi, India: Enkay Publishing House. 2011.

8. Lohani, M. B., and Shukla, K. K. Comparative study of customer perception towards services provided by public sector bank and private sector bank. International Journal of Engineering and Management Science, 2(3); 2011: 143-147.

9. Malhotra, N. K., and Dash, S. Marketing research: An applied orientation. prentice hall, Delhi, 2010.

10. Mannan, S. A. Technologies in Indian banks and customers’ perception: An empirical study in Maharashtra. Paper presented at International Conference on Business and Information 2010 Researching Realities of Management Phenomenon. Retrieved from http://kln.ac.lk/fcms/ICBI2012/images/ICBM/dccs /Microsoft%20Word%20-%20I CT004.pdf. 2010.

11. Mistry, S. K. H. Measuring customer satisfaction in banking sector: With special reference to banks of Surat city. Asia Pacific Journal of Marketing and Management Review, 2(7); 2013:132-140.

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13. Muraleedharan, D. (2009). Modern banking theory and practice, Delhi, PHI: Learning private limited.

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Received on 31.05.2015 Modified on 25.06.2015

Asian J. Management; 6(3): July-Sept., 2015 page 235-240

DOI: 10.5958/2321-5763.2015.00034.7

S.NO	Statements	Factor Loading
1.	Bank has up-to–date equipment and technology	.559
2.	Online bank website visually appealing	.557
3.	Sufficient number of ATMs machines	.518
4.	Relevant and precise information	.609
5.	Up to date information	.692
6.	Accurate records	.561
7.	Wide range of product and services provides	.549
8.	Prompt responses for online request	.619
9.	Customer service representative	.730
10.	Provide information with care and attention	.694
11.	Immediate assist for problem queries	.690
12.	Security for ATMs	.632
13.	No misuse of personal information	.696
14.	Safe with online transaction	.688
15.	Secured in account information	.673
16.	Website provides financial security and confidentiality	.704
17.	Website is secure for fund transfer	.528