1. ,,,,
IntroductIon
E-banking:-
Internet banking (or E-banking) means any user with a
personal computer and a browser can get connected to his bank -s website
to perform any of the virtual banking functions. In internet banking system
the bank has a centralized database that is web-enabled. All the services
that the bank has permitted on the internet are displayed in menu. Any
service can be selected and further interaction is dictated by the nature of
service. Once the branch offices of bank are interconnected through
terrestrial or satellite links, there would be no physical identity for any
branch. It would a borderless entity permitting anytime, anywhere and
anyhow banking.
The delivery channels include direct dialup connections, private
networks, public networks, etc. with the popularity of computers, easy
access to Internet and World Wide Web (WWW), Internet is increasingly
used by banks as a channel for receiving instructions and delivering their
products and services to their customers. This form of banking is generally
referred to as Internet Banking, although the range of products and
services offered by different banks vary widely both in their content and
sophistication.
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2. Meaning of E-Banking
E-bank is the electronic bank that provides the financial service for the
individual client by means of Internet.
observatIon of study
DEFINITION OF E-BANKING
For this booklet, e-banking is defined as the automated delivery of new and
traditional banking products and services directly to customers through
electronic, interactive communication channels. E-banking includes the
systems that enable financial institution customers, individuals or
businesses, to access accounts, transact business, or obtain information on
financial products and services through a public or private network,
including the Internet. Customers access e-banking services using an
intelligent electronic device, such as a personal computer (PC), personal
digital assistant (PDA), automated teller machine (ATM), kiosk, or Touch
Tone telephone. While the risks and controls are similar for the various e-
banking access channels, this booklet focuses specifically on Internet-based
services due to the Internet’s widely accessible public network.
Accordingly, this booklet begins with a discussion of the two primary types
of Internet websites: informational and transactional.
E-BANKING SUPPORT SERVICES
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3. WebLInKInG
A large number of financial institutions maintains sites on the World Wide
Web. Some websites are strictly informational, while others also offer
customers the ability to perform financial transactions, such as paying bills
or transferring funds between accounts.
WIreLess e-banKInG
Wireless banking is a delivery channel that can extend the reach and
enhance the convenience of Internet banking products and services.
Wireless banking occurs when customers access a financial institution's
network(s) using cellular phones, pagers, and personal digital assistants (or
similar devices) through telecommunication companies’ wireless networks.
Wireless banking services in the United States typically supplement a
financial institution's e-banking products and services.
Person-to-Person Payments
Electronic person-to-person payments, also known as e-mail money, permit
consumers to send “money” to any person or business with an e-mail
address. Under this scenario, a consumer electronically instructs the
person-to-person payment service to transfer funds to another individual.
The payment service then sends an e-mail notifying the individual that the
funds are available and informs him or her of the methods available to
access the funds including requesting a check, transferring the funds to an
account at an insured financial institution, or retransmitting the funds to
someone else. Person-to-person payments are typically funded by credit
card charges transfer from the consumer’s account at a financial institution.
Since neither the payee nor the payer in the transaction has to have an
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4. account with the payment service, such services may be offered by an
insured financial institution, but are frequently offered by other businesses
as well.
banKInG servIces throuGh Internet:
4

5. 1. The Basic Level Service is the banks’ web sites which disseminate
information on different products and services offered to customers
and members of public in general. It may receive and reply to
customer’s queries through e-mail;
2. In the next level are Simple Transactional Web sites which allows
customers to submit their instructions, applications for different
services, queries in their account balances, etc. but do not permit any
fund-based transactions on their accounts;
3. The third level of Internet banking service are offered by Fully
Transactional Web sites which allow the customers to operate on their
accounts for transfer of funds, payment of different bills, subscribing to
other products of the bank and to transact purchase and sale of
securities, etc. The above forms of Internet banking service the
customer or by new banks, who deliver banking service primarily
through Internet or other electronic delivery channels as the value
added services. Some of these banks are known as ‘Virtual’ banks or
‘Internet only’ banks and may not have physical presence in a country
despite offering different banking services.
the IndIan scenarIo: -
• Internet banking, both as a medium of delivery of banking services and as
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6. a strategic tool for business development.
• At present, the total internet users in the country are estimated at 9 lakh.
However, this is expected to grow exponentially to 90 lakh by 2003. Only
about 1 percent of Internet users did banking online in 1998. This is
increased to 16.7 percent in March 2000.
- (India Research, May 29, 2000, Kotak Securities)
• Cost of banking service through the Internet from a fraction of costs
through conventional methods. Rough estimates assume teller cost at Re.1
per transaction, ATM transaction cost at 45 paise, phone banking at 35
paise, debit cards at 20 paise and Internet banking at 10 paise per
transaction.
PLastIc cards as medIa for Payment: -
There are four types of plastic cards being used as media for
making payments. These are:
1. Credit Card
2. Debit Card
3. Smart Card
4. ATM Card
1. credIt cards: -
6

7. The credit card enables the cardholders to: Purchase any item like clothes,
jewellery, railway/air tickets, etc.
Pay bills for dining in a restaurant or boarding and lodging in hotel
Avail of any service like car rental, etc.
2. debIt cards: -
A debit card is issued on payment of a specified amount by the issuing
company like a telephone company to a customer on cash payment or on
debiting his account by a bank.
Thus it is like an electronic purse, which can be read and debited by the
required amount.
It may be noted that while through a credit card, the customer first makes a
purchase or avails service and pays later on, but for getting the debit card, a
customer has to first pay the due amount and then make a purchase or
avail the service. For this reason, debit card are not as popular as credit
cards.
3. smart cards: -
7

8. Smart Cards have a built-in microcomputer chip, which can be used for
storing and processing information. For example, a person can have a smart
card from a bank with the specified amount stored electronically on it. As
he goes on making transactions with the help of the card, the balance keeps
on reducing electronically. When the specified amount is utilized by the
customer, he can approach the bank to get his card validated for a further
specified amount. Such cards are used for paying small amounts like
telephone calls, petrol bills, etc.
4. atm cards: -
The card contains a PIN (Personal Identification Number) which is selected
by the customer or conveyed to the customer and enables him to withdraw
cash up to the transaction limit for the day. He can also deposit cash or
cheque.
LIterature revIeW
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9. A new review by Tower group of 10 top US e- banking web sites evaluated
several aspects of core online banking components. Group found that there
is difference in terms of actual functionality and usability. Among different
banks and their services.
The UK's first home online banking services were set up by the Nottingham
Building Society (NBS) in 1983 ("History of the Nottingham". Retrieved on
2007-12-14.). The system used was based on the UK's Prestel system and
used a computer, such as the BBC Micro, or keyboard (Tan data Td1400)
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.
An American study conducted last year by Booz-Allen projects that by the
year 2000, 16 million US households will be using Internet banking. While
these numbers do not appear to be significant as compared to the total
population, each Internet user is projected to be 50-250% more profitable
than the average banking customer. It is expected that these Internet
customers will be some of the banking system's most profitable customers
representing close to 30% of all retail banking profits. The study projects
that by 1999, 1,500 banks will have Internet Web sites and at least 500 of
these banks will be offering full-fledged Internet banking services.
In 2001 Micro banker send detailed questionnaire to the leading vendors of
internet banking software27 companies responded with information on
thirty programs the aggregate outcome of the outcome was that almost all
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10. the companies have developed functions for internet banking and have
inbuilt feature to aid with one to one marketing on the web.
IcIcI banK
ICICI Bank Online Banking Services provide the largest private bank in
India right here at your desktops. Banking becomes a pleasure as the
transactions and services become instant with ICICI Bank online
Internet banking. The services provided are totally secure and unique.
These cover online account transactions and operations, credit card and
account applications and payments, share trading and investments
through mutual funds, bill payments, statement generation and a virtual
demo of each service. See in brief in final report.
roLe of customer When usInG e-banKInG
• You can access ICICIBank.com only by using your User ID and
Password. During the first login attempt, it is mandatory to change
both passwords - login and transaction – which would have been
mailed to you by the bank.
• If you forget your password, you will have written to us using the
"Email Us" option. The Bank will then issue a new password and send
it to your mailing address as per our records. Kindly check with your
branch that this address is updated...
• Make sure no one can see the account login name or password you
are entering when you log on to ICICIBank.com.
• Logout of ICICIBank.com before moving on to other Websites.
• Before leaving the PC please "close" the browser.
• Do not write your ICICIBank.com login name or password anywhere.
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11. • Do not leave your login name and password such that someone
sitting at your computer could see them.
• Never reveal your ICICIBank.com login name and password to
anyone (no representative of ICICI Bank will ever ask you for your
ICICIBank.com password).
• Notify ICICI Bank immediately if you notice any unusual account
activity.
• Keep all documents that include your account information in a secure
location.
• When you login you can view the date and time of your last log in.
11

12. features offered by IcIcI banK for Internet banKInG
• Balance enquiry and statement
• Transfer fund online
• Card to card fund transfer
• Use debit card online
• Prepaid mobile recharge
• Subscribe for mobile banking
• Link bank account to ATM
• Lock / activate debit cards /ATM
• Request a cheque book
• Stop payment
hdfc
Net Banking is HDFC Bank's Internet Banking service. Providing up-to-
the-second account information, Net Banking lets you manage your
account from the comfort of your mouse - anytime, anywhere.
features offered by hdfc banK for Internet banKInG
• View account balances and statements
• Transfer funds between accounts
• Request stop payments
• Pay bills
• Create fixed deposit online
• Order cheque books
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13. objectIve of study
• Find the customer satisfaction relating to E-banking service.
• To study the awareness of internet banking among the customers of
ICICI and HDFC banks.
LImItatIon of study
• Banks are not giving me all information about E-banking services.
• They do not permit to meet any of the employees in their bank.
INTRODUCTION
13

14. EVOLUTION OF MARKETING
marketing Spelled Pronunciation mahr-ki-ting]
– noun
1. the act of buying or selling in a market.
2. the total of activities involved in the transfer of goods from the
producer or seller to the consumer or buyer, including advertising,
shipping, storing, and selling.
At the beginning of the century, social life was mostly local. It was followed by a
period in which commodities were produced on a mass scale. Consumer Marketing
operated on mass marketing principles and business primarily concerned itself with
how to build the best sales force. At the end of the century, there is an emerging global
culture. The major driver of these changes is technology. Technological change has
moved steadily back focusing on the individual. These changes shape the possibility
and conduct of business. Marketing is especially tied to communication and
transportation revolution. As the tools and reach of marketing increase, the job and
responsibilities of marketers have evolved with them.
Philip Kotler formalized this evolution with his book "Marketing Management". His
key stages are production, sales and brand management. Each of these is strongly
motivated by technological opportunities, which permit new methods and new
opportunities. A fourth stage, a focus on the individual customer, is also important. As
the new technology of the Internet develops, it reinforces the new marketing emphasis
- which in many ways is a return to business at the turn of the centu
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15. In today’s technology driven world, a new fast paced digital economy is emerging.
Tomorrow there will be companies that will exist only inside computer networks.
Most business transactions will be made electronically, directly from the producer to
the consumer, bypassing the supply chain. In the digital marketing environment, the
consumer becomes an integral player in the development of the product. In fact, a
consumer might build the product himself from a wide array of parts provided by the
Company. It is e-commerce that is changing the way products and services are
conceived, manufactured, promoted, priced, distributed and sold. The reason being
that it is much cheaper; it allows vast coverage and helps in serving the customer
better.
ADVERTISING
ad⋅⋅ver⋅⋅tis⋅⋅ing Show Spelled Pronunciation [ad-ver-
tahy-zing
1. the act or practice of calling public attention to one's
product, service, need, etc., esp. by paid announcements
in newspapers and magazines, over radio or television, on
billboards, etc.: to get more customers by advertising.
2. paid announcements; advertisements.
3. the profession of planning, designing, and writing
advertisements.
15

16. Advertising is a paid form of communication, although some forms
of advertising, such as public service announcements, use donated
space and time. Second, not only is the message paid for, but the
sponsor is identified. Third, most advertising tries to persuade or
influence the consumer to do something, although in some cases
the point of the message is simply to make consumers aware of the
product or company
Fourth and fifth, the message is conveyed through many different
kinds of mass media reaching a large audience of potential
consumers. Finally, because advertising is a form of mass
communication, it also non-personal
A definition of advertising, then, includes all six features
Advertising is paid non-personal communication from an
identified sponsor using mass media to persuade or influence
an audience
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17. Functions of Advertising
Advertising is an important promotional tool for any marketing campaign.
So much so that whenever we think of marketing we think of advertising
although it is just one of the marketing tools. Till now only companies with
a profit motive went in for advertising. But today government bodies as
well as non-governmental organizations (NGOs) go for high profile
advertising campaigns. The purpose here is not to increase the sales figure
but to increase the awareness of people regarding the relevant topics.
Even though each ad or campaign tries to accomplish goals unique to its
sponsor, advertising performs three basic functions:
1. Provide product or brand information
Although many ads are devoid of information, providing the consumer
with relevant information that will aid decision making is still the main
function of advertising. The information given depends on the needs of
the target audience. In the case of purchasing a new suit, needed
information might simply include price and outlet location. For
technical products, the information is likely to be very detailed.
2. Provide incentives to take decision
In most instances, consumers are reluctant to change established behavior. Even
if there are somewhat dissatisfied with the current product or service, a habit has
been established and learning about a new product is deemed difficult.
Advertising provides the consumer with reasons to switch brands by presenting

18. reasons through copy or graphics. Convenience, high quality, lower price,
warranties, or a celebrity endorser are all possibilities.
3. Provide reminders and reinforcement
It’s amazing how much advertising is directed at current customers. Consumers
forget why they bought a particular brand of microwave or automobile. Advertising
must remind the customer constantly about the name of the brand, its benefits, its
value, and so forth. These same messages help reinforce the customers decision.
Most television advertising seems to provide this function.
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19. Types of Advertising
Advertising is a form of selling. It tries to make consumers buy goods or services.
Advertisers must be aware of the factors that influence people's buying habits and
then use advertising strategies based on this knowledge. Advertising can be
classified in number of ways.
1. Print Advertising: Newspapers, Magazines, Brochures, Fliers
The print media have always been a popular advertising medium. Advertising products
via newspapers or magazines is a common practice. In addition to this, the print media
also offers options like promotional brochures and fliers for advertising purposes.
2. Outdoor Advertising: Billboards, Kiosks, Tradeshows and Events (OOH)
Outdoor advertising is also a very popular form of advertising, which makes use of several
tools and techniques to attract the customers outdoors. The most common examples of
outdoor advertising are billboards, kiosks, and also several events and tradeshows
organized by the company. The billboard advertising is very popular however has to be
really terse and catchy in order to grab the attention of the passersby. The kiosks not only
provide an easy outlet for the company products but also make for an effective advertising
tool to promote the company’s products. Organizing several events or sponsoring them
makes for an excellent advertising opportunity. The company can organize trade fairs, or
even exhibitions for advertising their products. If not this, the company can organize
several events that are closely associated with their field.
3. Broadcast advertising: Television, Radio and the Internet
Broadcast advertising is a very popular advertising medium that constitutes of
several branches like television, radio or the Internet. Television advertisements
have been very popular ever since they have been introduced. The radio might
have lost its charm owing to the new age media however the radio remains to be
the choice of small-scale advertisers.

20. 4. Covert Advertising: Advertising in Movies
Covert advertising is a unique kind of advertising in which a product or a
particular brand is incorporated in some entertainment and media channels
like movies, television shows

21. or even sports. There is no commercial in the entertainment but the brand or the product
is subtly (or sometimes evidently) showcased in the entertainment show.
5. Surrogate Advertising: Advertising Indirectly
Surrogate advertising is prominently seen in cases where advertising a particular
product is banned by law. Advertisement for products like cigarettes or alcohol
which are injurious to heath are prohibited by law in several countries and hence
these companies have to come up with several other products that might have the
same brand name and indirectly remind people of the cigarettes or beer bottles of
the same brand. Common examples include Fosters and Kingfisher beer brands,
which are often seen to promote their brand with the help of surrogate advertising.
6. Public Service Advertising: Advertising for Social Causes
Public service advertising is a technique that makes use of advertising as an
effective communication medium to convey socially relevant messaged about
important matters and social welfare causes like AIDS, energy conservation,
political integrity, deforestation, illiteracy, poverty and so on.
7. Celebrity Advertising
Although the audience is getting smarter and smarter and the modern day
consumer getting immune to the exaggerated claims made in a majority of
advertisements, there exist a section of advertisers that still bank upon celebrities
and their popularity for advertising their products. Using celebrities for advertising
involves signing up celebrities for advertising campaigns, which consist of all
sorts of advertising including, television ads or even print advertisements.
8. Internet Advertising

22. Internet promotion is one of the newer types of advertising and can be
accomplished in a number of ways. Flash advertising refers to messages that
jump onto your computer screen and often move around. They can be hard to
close and are annoying, but effective at gaining your attention. Pop up and
scrolling ads are other examples of these types of advertising. Pay per click
advertising refers to marketers paying to have their web pages placed high on
search engine results pages. These are also called sponsored links.

23. INTERNET MARKETING
THE ADVENT OF THE INTERNET
The new millennium has brought us on the brink of the I.T. Revolution. This revolution has
been aided by the advent of the Internet in a big way. Internet is fast changing the way
people used to do things. Naturally, the same would have an impact on the advertisers.
The Internet has been accepted as the most powerful media for advertising due to the
absence of geographical barriers. The advent of the Internet and its subsequent
acceptance has once again challenged the traditional forms of advertising. Advertisers
are trying to use the 'net' to advertise their products and hence 'net' their customers.
Thus, with the Internet gaining prominence, advertising equations are fast changing.
Internet marketing, also referred to as web marketing, online marketing,
or eMarketing, is the marketing of products or services over the
Internet. Internet marketing ties together creative and technical aspects
of the Internet, including design, development, advertising, and sale.
The Internet has brought many unique benefits to marketing, one of
which being lower costs for the distribution of information and media to
a global audience. The interactive nature of Internet marketing, both in
terms of providing instant response and eliciting responses, is a unique
quality of the medium. Internet marketing is sometimes considered to
have a broader scope because it not only refers to digital media such as
the Internet, e-mail, and wireless media; however, Internet marketing
also includes management of digital customer data and electronic
customer relationship management (ECRM) systems

24. 7 P'S OF INTERNET MARKETING
The four P's - Product, Price, Place and Promotion have long been associated with
marketing, but things have changed on the Internet. So along with a change in the
nature of the four P’s there are three new P’s which are relevant to the internet
marketer: Presentation, Processes and Personalization.
1. Product
Product on the Internet usually changes form online, and the user experiences it
electronically, in the form of text, images and multimedia. Physical goods are usually
presented in the form of a detailed online catalogue that the customer can browse
through. Technology allows the user to virtually touch and feel the product on the
Internet - rotate it, zoom in or zoom out and even visualize the product in different
configurations and combination. Content and software are two avatars of digitized
products that can be even distributed over the Internet. On the Internet, E-marketing
will be based more on the product qualities rather than on the price. Every company
will be able to bring down the cost of its products and hence competition will not be
on price. It will rather be on the uniqueness of the product. To be able to attract the
customers and retain them, the company will have to provide nouvelle and distinct
products that forces the net users to purchase and come back for more.
2. Price
Price has been drastically changed over the Internet. It lets the buyer decides the
price. Also it gives the buyers information about multiple sellers selling the same
product. It leads to best possible deal for the buyers in terms of price. Pricing is
dynamic over the Internet.
3. Place

25. Place revolves around setting up of a marketing channel to reach the customer.
Internet serves as a direct marketing channel that allows the producer to reach the
customer directly. The elimination of the intermediate channel allows the producer
to pass the reduced distribution cost to the customer in the form of discounts.

26. 4. Promotion
Promotion is extremely necessary to entice the customer to its website,
as there are currently more than one billion web pages. Promoting a
website includes both online and offline strategies. Online strategies
include search engine optimization, banner ads, multiple points of entry,
viral marketing, strategic partnership and affiliate marketing. Presently,
the cyberspace is already cluttered with thousands of sites probably
selling similar products. For the customers to know of the Company’s
existence and to garner information on the kind of products or services
that the company is offering, promotion has to be carried out. There can
be traded links or banner advertisements for the same. Also the
traditional mediums like print, outdoor advertising and television can be
used to spread awareness.
5. Presentation
The presentation of the online business needs to have an easy to use
navigation. The look and the feel of the web site should be based on
corporate logos and standards. About 80% of the people read only 20%
of the web page. Therefore, the web page should not be cluttered with a
lot of information. Also, simple but powerful navigational aids on all web
pages like search engines make it easy for customer to find their way
around.
6. Processes

27. Customer supports needs to be integrated into the online web site. A
sales service that will be able to answer the questions of their
customers fast and in a reliable manner is necessary. To further
enhance after sales service, customers must be able to find out about
their order status after the sale has been made.
7. Personalization
Using the latest software it is possible to customize the entire web site
for every single user, without any additional costs. The mass
customization allows the company to create web pages products and
services that suit the requirement of the user. A customized web page
does not only include the preferred layout of the customer but also a pre
selection of goods the customer may be interested in.
concLusIon

28. The basic objective of my research was to analyze the
awareness among customers for internet banking in INDIA.
It gives direction to research tools, research types and
techniques. Although the findings reveal that people know
about the services but still many people are unaware and
many of them are non – users so the bank should by
promotion try to retain the customers. Banks should look
forward to have some tie – ups with other financial
institutions to increase the service base.
bIbLIoGraPhy
booK:-

29. • E-banking in India
• Banking service operation (ICFAI)
• Indian Banking
• Money & Banking