A STUDY ON CUSTOMER BEHAVIOR TOWARDS BANKING SERVICES WITH SPECIAL REFERENCE TO PUBLIC SECTOR BANKS IN SIVAGANGAI DIST

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1 A STUDY ON CUSTOMER BEHAVIOR TOWARDS BANKING SERVICES WITH SPECIAL REFERENCE TO PUBLIC SECTOR BANKS IN SIVAGANGAI DIST DR. K.ALAGARSAMY*; S.WILSON** *ASSISTANT PROFESSOR IN COMMERCE R.D.GOVT.ARTS COLLEGE, SIVAGANGAI. ** ASSOCIATE PROFESSOR HEAD OF THE DEPT OF ECONOMIC R.D.GOVT ARTS COLLEGE SIVAGANGAI. The banking system forms the important role in the financial sector of an economy. The role of commercial banks is particularly important in third world countries through (i) The Mobilization of resource. (ii) Better allocation. (iii) The development process of under developed countries. (iv) By giving attractive saving schemes (v) And ensuring safety of deposits commercial banks encourage willingness (vi) To save among the people in rural areas. (vii) They help to convert idle saving in to effective one. (viii) Commercial banks improve the allocation of resources by lending money to priority sectors of the economy. The public sector banks in India operate (i) In a highly competitive environment with competition from non banking financial institution. (ii) Foreign banks intensifying walk business for Indian banks in respect of deposits can no longer be expected. In order to survive in these days of fierce competition public sector banks have to apply (i) (ii) Marketing approach product differentiation is often employed as a major technique to survive in a competitive market. Each bank follow different procedure it is very difficult to follow the customers. Even through the customer is well educated some time high technology banking services hesitate the customer for the transaction. For the effective banking transaction the banks should have 183

2 (i) (ii) (iii) good communication Soft skill must need. The bank management need to educate the employees for the banking activities and process universal banking procedure can help the customer for the better transaction. CUSTOMER FOCUS OVER THE DECADES Customer are now demanding multiple channels through which they can interact with their providers including (i) Face to face contact (ii) Phone (iii) Websites mobile device etc. Which has forced the banking sector to explore new distribution channels, so that ordinary customer which have more information about multiple banking products than even before. This is aimed not only to present the customer from taking their business elsewhere but also to ensure that they are offered the product and services that are most appropriate and most likely to result in new revenue for the bank. There is a phenomenal change and paradigm shift towards customer focus over the past five decades. The banking business found standing on the pillars of customer s satisfaction it is pertinent that policy makers and branch manager think over the problem on priority basis. DECADE-FOCUS ON CUSTOMER Serving the customer Satisfying the customer Pleasing the Customer Delighting the customer 00 and beyond - Retaining the customer ROLE OF BANKS IN NEW ECONOMICS From the economy point of view the major task of banks and other financial institution is to 1) Act as an intermediate 2) Channeling savings to investment and 3) Consumption through them, the investment requirement of savers are reconciled with the credit needs of investors and consumers. In this process of transaction is to be carried out efficiently it is absolutely essential that the banks be involved. Indian banking has aided the economic development in an effective way during the post independence period. The banking sector has shown remarkable responsiveness to the needs of the planned economy. It has brought about a considerable progress in 1) In its efforts at deposits mobilization and 2) It has taken a number of measure in the recent past to accelerate the rate of growth of deposits. To achieve this wants commercial banks opened a 1) Number of branches a) Urban b) Semi urban c) Rural areas and 2)Introduced a number of attractive schemes 3)Free services to customer attract more customer. 184

3 STATEMENT OF THE PROBLEM Sivagangai city there are more public sector and private sector banks were functioning. The investigator have chosen this topic to study about banking services provided by public sector banks there is a problem of 1)Abnormal delays in receiving and 2) marketing payment 3) Customers have to wait in definitely without any body attending to them properly at the counter. This leads to frustration among customers. The procedures laid down at the banks are lengthy and also it was not easy to follow by them. Even the issue of cheque book takes twenty to thirty minutes because the banks officers is always busy with cheque and vouchers and registers, updating of pass book also takes long time. The present customer services systems lacks motivation and initiatives, these adversely affect the customer service. OBJECTIVES To identify the working and living conditions of the customers in public sector banks at Sivagangai city. To verify the customer satisfaction towards the services given by banks. To analyze the recent banking technology and its repercussions on the quality of customer services. To analyze the problems involved in banking transactions. To suggest suitable remedial measure to improve their banking services. METHODOLOGY The study covers both primary and secondary data. The primary data collected by interview method through the well structured questionnaire. For this research five public sector banks were selected in Sivagangai district State bank of India-6, Canara bank-6, Indian overseas bank-16, Indian bank-16 Oriental bank of commerce-2 among these branch the researcher has chosen five banks from each one. From the five public sector banks each bank customers were selected by using random sampling method. The secondary data was collected from the published records, books journals encyclopedias, government surveys and web portals. The collected data have been processed and analyzed with the help of the following, SPSS tools used to test the hypotheses 1) X 2 test 2) t test 3) Standard devision,4) Arithmetic man were used. EDUCATIONAL QUALIFICATION Education in the largest sense is any act or experience that has a formative effect on the mind, character or physical ability of an individual. In its technical sense, education is the process by which society deliberately transmits its accumulated knowledge, skill and values form one generation to another. 185

4 Percentage Asia Pacific Journal of Marketing & Management Review ISSN Table 1 EDUCATIONAL QUALIFICATION OF THE RESPONDENTS S.No Educational Qualification No of Respondents Percentage 1. Illiterate Up to th th -12 th Under graduate Post graduate 6. Diploma 3 3 Source: Primary data Total 0 0 The above table reveals that 6 percent of respondents were comes under the category of illiterates and 24 percent of the respondents were studied up to th standard. The above table exhibit 35 percent of respondents were under graduates and also percent of respondent were post graduate. From this study it is clear that the bank has focus all the category of customer. Educational Qualifiication of the Respondents Illiterate Up to th 11th-12th Under graduate Educational Qualification Post graduate Diploma 186

5 Percentage Asia Pacific Journal of Marketing & Management Review ISSN OCCUPATION The following table shows that the customer occupation Table 2 OCCUPATION OF THE RESPONDENTS S.No Occupation No. of Respondents Percentage 1. Services Profession Business Pensioners Agriculture Other 7 7 Source: Primary data Total 0 0 From the above table indicates that 8 percent of the respondents were comes under services and majority of the respondents that is 47 percent of respondents professional and 26 per cent of respondents business it is clearly understood that the majority of the respondents working under some organization it shows their employability it will helps to growth of the nation. Only 3 percent of respondents were pensioner and also agriculturist because they are not willing to go bank. Occupation of the Respondents Services Profession Business Pensioners Agriculture Other Occupation 187

6 MONTHLY INCOME Income is the consumption and savings opportunity gained by an entity within a specified time frame, which is generally expressed in monetary terms. However, for households and individuals, income is the sum of all the wages, salaries, profits, interests payments, rents and other forms of earnings received in a given period of time. Simply we can say income is the reward of four facto of production that is land, labour, capital and organization. The following table explains the monthly income of respondents. Table 3 MONTHLY INCOME OF THE RESPONDENTS S.No Monthly income No. of Respondents Percentage (Income in Rs.) 1. Below Above Total 0 0 Source: Primary data The above table clearly shows that 9 percent of respondents earning below 5000 and 29 per cent of respondents were earning then 28 and 22 percent of the respondents getting income because they are working in organized sector in Sivaganga city. The above table reveals 12 percent of respondents earning income above 000 they are business people. So income is very important factor to determine the status of every person without income no cannot survive their life. 188

7 Monthly income Percentage Below Above 000 M onthly income NEW TECHNOLOGY IN BANKING SERVICES Bank should play a very important role servicing various kind of technology this will helps to the bank to avoid difficulty. The following table explains about the banking technology offered by the bank. Table 4 NEW TECHNOLOGY IN BANKING SERVICES S.No Banking Technique No of Respondents Percentage 1. ATM Tele banking Mobile banking 4. Electronic fund transfer Internet banking 66 6 Source: Primary data Total 0 0 The above table depict that the majority of the respondents were using ATM services because ATM is one of the most popularized services given by bank. The customer with draw money any part in the world so the percentage is very high. Only 2 per cent of respondents were using telephone banking. There are large number of respondents were using mobile banking now a days this banking popularized from the business people. Very less number of respondents were using other banking technique because of complex procedure they are not using internet banking. 189

8 Percentage Asia Pacific Journal of Marketing & Management Review ISSN New technology in banking services ATM 2 Tele banking Mobile banking 2 6 Electronic fund Transfer Internet banking Banking technique REGULARLY USING SERVICES Bank provide number of services to the customer but the customers were using limited services because lake of time, complex procedure and technical problem in the computer. This is may create problem to the customer. The following table explains the customer regularly using services. Table-5 REGULARLY USING SERVICES S.No Particulars No of Respondents Percentage 1. Deposit cash With draw money Demand draft Fund transfer Collection of cheque 3 3 Source: Primary data Total 0 0 The above table explains that 55 percent of respondents deposit their cash in a bank it shows that deposit cash in a bank one way it helps to the bank to mobilize fund and another way the customer with draw money in a bank are ATM during the need of cash.the study indicates that 25 per cent of respondents with draw money from the bank and 15 percent of respondents get 190

9 demand draft for the different purposes. Only meager amount of respondents were transferring their funds and collecting cheque. Regularly using Services Percentage Deposit cash Demand draft 2 3 Collection of cheque Particulars IMPORTANT REASON TO CONTACT THE BRANCH For the many reason the customer visiting to the bank. The following table shows the most important reason customer conducting the branch. Table 6 IMPORTANT REASON TO CONTACT THE BRANCH S.No Important reason No of Respondents Percentage 1. Loan enquiry Complaints 3. Confirming fund transfer Inquires about my credit card 5. Other reasons Total 0 0 Source : Primary data 191

10 Among the 0 respondent 40 percent 40 per cent of them to contact the branch to conforming their funds it is shown in the above table. Some of the respondents to visit the branch enquiry about the loan, complaint inquiries about their credit card. It significant to note that 19 percent of the respondents conducting branch some other reason. Important reason to contact the branch CUSTOMER DIFFICULTIES IN BANK TRANSACTION Customers faced many difficulties during the financial transactions. The subsequent table explains particulars about the major difficulties faced by the customer. Table: 7 CUSTOMER DIFFICULTIES IN BANK TRANSACTION S.No Customer difficulties in No of Respondents Percentage bank transaction 1. Delay in banking function Problem of ATM Service charge Improper behavior of employees Total 0 0 Source: Primary data 192

11 Percentage Asia Pacific Journal of Marketing & Management Review ISSN of the respondents were faced in delay in banking function it is shown in the above table 7. It is clearly indicate that other services like problem of ATM, Service charge, Service charge and improper behavior of employees is not giving more difficulties to the customer. Customer difficulties in bank transaction Delay in banking function 16 Problem of ATM Service charge Customer difficulties in bank transaction Improper behavior of employees OVER ALL QUALITY OF SERVICE IN BANK. Quality itself has been defined as fundamentally relational quality is the ongoing process of building and sustaining relationship by assessing, anticipating and fulfilling stated and implied needs. This following table has shown the quality of services in bank. Table 8 QUALITY OF SERVICE IN BANK S.No Quality of Service No.of Respondents Percentage 1. Excellent Very good Good 4. Average Poor 4 4 Source: Primary data Total

12 It is clear that from the above table the majority of the respondents were told the banking services are excellent.the table exhibit that the 32 percent respondents were told the banking activities is very good.most of them accepted the banking services is good. Qualifty of Service in bank Percentage Excellent Very good Good Average Poor Quality of service FINDINGS After a detailed analysis of the study researcher could arrive at the following findings. These findings will help the researcher to give proper suggestions to the bank for better functioning. From the Survey the customers are well educated in Sivaganga city majority of the people well educated. The major occupation of the customer plays a very important role most of the customer belongs to profession and business people. Income is very important factor to determine the status of every person without income no cannot survive their life nearly half of respondents earning Among the 0 respondents 40 percent of them to conduct the branch to conforming their funds. It is clearly indicate that other services like problem of ATM, Service charge, Service charge and Improper behavior of employees is not giving more difficulties to the customer. 194

13 It is important to note that among the 0 respondents 60 of them were said not providing quick services. It shows the bank inabilities to satisfy the customer expectation. It is clear that from the above table the majority of the respondents were told the banking services are excellent. SUGGESTIONS Programme at least 6 month once to educate the bank up dating. Customers are excepted the bank prospect in order to know the bank procedure. Customers ombudsman should opened main city of the district. The bank should provide good environment in order to face huge number of customer like head branch all sub branch need same facility. The bank charge deposit rate and discount rate the bank should inform to the customers mobiles. Effective use of communication net work by the bank If the bank introduced new bank scheme the notice board should display in front of the bank. Customer queries should be opened in order to avoid mistake. The separate counters should be allotted for providing passbook and collection of cheque. CONCLUSION The banking sector has under gone many changes the new economic policy based on privatization, globalization and liberalizations adopted by government of India. Customer is the king in the present day banking. Since the banks are providing tailor made services to the changing needs of the ultra modern customer to face their stiff competition from the rival banks. Today the customer services preference keep on changing at a rapid speed and their demands. For the banking sector challenging and tough job for the bankers in retaining the existing customer base and winning new customer. The aim of the bankers is to make the customers comfortably and happy to achieve their targets. To achieve the highly challenging task of customers satisfaction bankers turning to technology for help. Bankers are not only satisfying the customer but should also trigger to attitude of the customers towards the bank. Each bank follow different procedure it is very difficult to follow the customers. Even though the customer is well educated some time high technology banking services hesitate the customer for the transaction. For the effective banking transaction the banks should have good communication, soft skill must need. At every level of delaying with the bank the customer the bank management need to educate the employees for the banking activities and process. Universal banking procedure can help the customer for the better transaction. 195

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