Customer Satisfaction with E Banking in Bangladesh

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As an indispensable part of BBA program, Department of Management studies, Jagannath University, all the students have to undergo project report program. Theoretical Knowledge is not enough for a business student. There is a gap between the theoretical knowledge and practical knowledge. Under this program the students are required to write report based on interview, discussion and study about concerning field and experiences during the course of work. I was assigned to “customer attitude toward E-banking in Bangladesh’’ to complete the program.

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So, this report has been prepared as an academic requirement under the BBA program of the Department of management studies, Faculty of Business Studies, Jagannath University, Dhaka. The report will be submitted to project report supervisor Rabeya Rahman of the same department.

1.2 Objectives
The main objectives of the study are to evaluate the efficiency and effectiveness of the E-banks in Bangladesh that are directly related to customer satisfaction. The satisfaction level creates positive or negative attitude toward E-banks. However, besides this, the study is an attempt to fulfill the following objectives: The objectives of the study are:

* to examine the present status of E-banking in the country * to assess the impacts of E-banking on bank industry of our country * To identify the future aspect and future challenges of E-banking for the economic growth of Bangladesh.

* To assess customer attitude to E-banking

* To assess the existing E-banking scenario in Bangladesh * To explore how customer attitude can be positive of E-Banking in Bangladesh context * A few recommendations on the policy issues regarding E-banking in Bangladesh.

1.3 Scope of the study
At present the number of E-banks in Bangladesh is increasing every year. This study is about customer attitude toward E-bank which is the result of
present banking services. The scope of the study is only for E-banking professionals. The report covers the background, overall banking activities and performance of the E- banking activities.

1.4 Methodology
The study was conducted on the basis of primary and secondary sources of data which are collected from the customers and bankers of the banks through questionnaire and form design, internet and website of different commercial banks of Bangladesh. 1.4.1 Data Collection Procedure

Data has been gathered from the customers and bankers. When they (customers) came for service to Bank, The report provided questionnaire to those customers who were interested in participating in the survey. As well as I asked questionnaire to the bankers. 1.4.2 Data Analysis Procedure

After collecting the data, it was analyzed by Microsoft Word & Excel. Then the findings were made. Based on the findings, the present situation was explained and recommendation was made. 1.4.2 Data Collection

This report is prepared on the basis of mixed methodology. Both the primary and secondary data have been used in this report. So the report was based on both the secondary and primary data. 1.4.3 Sources of Data

The sources of data were of two types-
1.4.4 Primary Sources-
* customer interview with questionnaire

1.4.5 Questionnaire
A questionnaire is a research instrument consisting of a series of questions and other prompts for the purpose of gathering information from respondents. The questionnaire was invented by me and with the help of Rabeya Rahman. As a tool for collecting primary data a questionnaire was constructed to carry on the sample survey. 1.4.5 Sampling Plan:

A sampling plan is a detailed outline of which data collection will be taken
at what times, on which material, in what manner, and by whom. 1.4.6 Population:
Total E-bank Customers in Bangladesh.
1.4.7 Sample element:
The sample element is the individual customer.
1.4.8 Sample frame:
No structured sample frame was found.
1.4.9 Sample size:
The sample size is 30 customers.
1.4.10 Data analysis and reporting:
Quantitative and qualitative data were collected and analyzed according to acceptable standards of practice. Different tables and graphs were used to make the data meaningful. 1.4.11 Secondary Sources/ External Sources-

* Web site of different bank’s web site.
* Various journals of various Banks.
* Various Internship reports of various Banks.
* Bangladesh Bank Report.
* Newspaper, magazines

1.5 Literature Review

With the extensive technology innovation and telecommunication, we have seen new financial distribution channels increasing rapidly both in the numbers and form, from ATMs, telephone banking, PC banking to internet banking. (Earring Wood and Story, 1996. Sathye (1999) proposed a model for Internet Banking in Australia is significantly influenced by variables of system insecurity, case of use awareness of service and its benefits, reasonable price, availability of infrastructure and resistance to change.

The transformation from traditional brick-and-mortar banking to E-Banking has been Automatic Teller Machine (ATM) and thus the retail banking industry witnessed significant and extensive change. Formally, E-banking comprises various formats or technologies, including
telephone (both land line and cell phone banking, direct bill payment (EFT), and PC or internet banking (Power, 2000). Weitzman, (2000), Lassar, Manolits and Lassar, (2005),

The transformation from traditional brick-and-mortar banking to E-banking has been automatic teller machine (ATM) has the retail banking industry witnessed such significant and extensive change. Formally, E-banking comprises varies formats or technologies, including telephone (both landline and cell phone banking, direct bill payment (EFT), and PC or internet banking (Power, 2000); Weitzman, 2000; Lassar, Ehou and Chou (2000) identified five basic services associated with online banking: view account balances, and transaction histories, paying bills, transferring funds between accounts, requesting credit card advance, and ordering checks.

Electronic Cash and Internet Gaming (2003), has defined electronic banking as “an umbrella term for the process by which a customer may perform banking transactions electronically without visiting a brick and mortar institution”.

The following terms all refer to one form or another of electronic banking: personal banking, (pc) virtual banking, on line banking, home Banking, remote electronic banking, and phone banking are the most frequently used designations, (Joris, Claessens,Valentine Dem et.al,2001),

E-banking is the waves of the future. It provides enormous benefits to consumers in terms of case and cost of transactions, either through internet, telephone or other electronic delivery channels (Nsouli and Schaechter, 2002)

E-banking development would lead to two classes of surviving banks, which are very large banks and small niche ones (Dewan and Seismanm, 2002).

Gerrard and Cunningham have described electronic banking as an umbrella term for the process by which a customer may perform banking transactions
electronically without visiting a brick and mortar institution (Gerrard and Cunningham, 2003). Personal banking, virtual banking, on line banking, home banking, remote banking, and phone banking are one or other form of e-banking. The ‘on line e-banking system’ gives everybody the opportunity for easy access to their banking activities. E-banking activities include retrieving an account balance, money transfers1 and retrieving an accounting history. In e-banking banks provide also services like stock market transactions, submission of standardized accounting payment files for bank transfer to third parties, etc

on line electronic banking system give everybody the opportunity for easy access to their banking activities. These banking activities may include; retrieving an account balance, money transfers 3 (Between a user’s accounts, from user’s account to someone else’s account) retrieving an accounting history. Some banks also allow services such as stock market transactions, and the submission of standardized accounting payment files for bank transfer, to third parties, As technology evolves, different kinds of electronic banking system emerge, each bringing a new dimension to the interaction between user and bank. The ATM is the first well-known system that was introduced to facilitate the access of the user to his banking activities, (M. Rahman, 2003), Manolits and Lassar, (2005), Ehou and Chou (2000) identified five basic services associated with online banking: view account balances, and transaction histories; paying bills, transferring funds between accounts; requesting credit card advanced; and ordering checks. Majority of banks is planning to introduce ICT for integration of banking service and new Finance service, which will play a vital role in bragging efficiency in the financial sector (Raihan, 2001). The most commonly factors are ease of use, transaction security, convenience and speediness (Wan, Luk and Chow, 2005).Uddin and Islam (2005) observed that the multifarious projections of ICT in human life plead a wining case for institutional integration of ICT related components in rural support programs taken by Governments and NGOs. Chaffey (2006) dealt with strategy and applications of E-Business and E-Commerce in a logical but robust manner. He stressed that e-business and e-commerce is very important for management implications as such a bridge to link leading
edge research and professional practice is required. Pires and Stanton (2007) commented that policy wise government must recognize that the ability of countries to engage in e-commerce is tied both directly and indirectly to their attractiveness for FDI. Ahmed and Islam (2008) observed that adopting e-banking services, banks in developing countries are faced with strategic options between the choice of delivery channels and the level of sophistication of services provided by these delivery channels. Shamsuddoha(2008) argued that in Bangladesh, banking industry is mature to a great extent than earlier period. It has developed superb image in their various activities including electronic banking. Now modern banking services have launched by some multinationals and new local private commercial banks. Electronic banking is one of the most demanded and latest technologies in banking sector. Ahshan(2009) argued that online transaction would boost the gross domestic product (GDP) growth and thus help Bangladesh achieve the Millennium Development Goals (MDGs). In the era of globalization, the Internet makes the world smaller and e-commerce facilitates marketing and shopping from home. E-commerce facilitates business with customers over the internet. In e-commerce, customers can buy goods and services over the Internet.

Rahman(2010) who is the Governor of Bangladesh Bank argued that Bangladesh Bank has achieved a historic milestone in the trade and business arena departing from conventional banking with the introduction of e-commerce recently; a giant stride towards digital Bangladesh .

From the aforesaid literature review, it is evident that electronic banking can as a complementary towards e-business. With the help of e-business the country create opportunities as this will help both producers and customers. Electronic banking is the metamorphosis of banking world. All the change has been for the betterment of customers as well as banks too. Customer at first doesn’t take change easily still revolutionary change in banks in Bangladesh formed E-bank has already established in customers mind.

1.6 Limitations

Observing and analyzing the broad performances of E-banks and one of its Branches are not that easy. The following limitations are apparent in the report— * Every organization has their own secrecy that is not revealed to others. Due to obvious reasons of security and confidentiality, the bank personnel did not provide all the statistical information about their organization. * Since the bank personnel are very busy with their activities, they had interested to help me but got a little time to do that. * I had little opportunity to verify the satisfaction level of clients and receive their suggestions in banking activities. * Lack of practical knowledge

E- BANKING

2. Background of the study
Multinational organizations worldwide have adopted globalization as their first strategic choice. Advancement in technology has facilitated globalization too. There has been a marked improvement particularly in the area of maintenance, storage, availability and transfer of data. The world has literally shrunk to become a "global village". Banks have transformed themselves and are offering services through internet. From computerization to networking to ATMs and now E-Banking, banks have moved up the value chain. Internet banking refers to the use of internet as a remote delivery channel for banking services. Thus the number of contacts required to perform a transaction and solve a problem has been reduced through online banking. The usual branches of banks have culminated into PC networks, whereby the consumer can draw all the benefits and services of the bank at a single click of the mouse. Once the branch offices of bank are interconnected through terrestrial or satellite links. It would a borderless entity permitting anytime, anywhere and anyhow banking. But no significant research has been conducted whether IT (e-banking) application actually results in profit increase and better customer service in Bangladesh. So from this point of view I have chosen the topic “customer attitude toward e-banking in Bangladesh”. In this report I have tried to describe a complete concept on e-banking and how customers perceive about electronic banking in Bangladesh. 2.1 Brief History of E-Banking

The concept of Internet banking has been simultaneously evolving with the development of the World Wide Web. Programmers working on banking data bases came up with ideas for online banking transactions, sometime during the 1980s.. Many banking organizations had already started creating data ware housing facilities to ease their working staffs. The development of these databases was widely used during the development of ATM's.

Sometime in 1980s, banking and finance organizations in Europe and United States started suggestive researches and programming experiments on the concept of 'home banking'. Initially in the 80's when computers and Internet were not so well-developed, 'home banking' basically made use of fax machines and telephones to facilitate their customers. The widespread of Internet and programming facilities created further opportunities for development of home banking.

In 1983, the Nottingham Building Society, commonly abbreviated and referred to as the NBS, launched the first Internet banking service in United Kingdom.. The facility introduced by Nottingham Building Society is said to have been derived from a system known as Prestel that is deployed by the postal service department of United Kingdom. The first online banking service in United States was introduced, in October 1994. The service was developed by Stanford Federal Credit Union, which is a financial institution. The online banking services are becoming more and more prevalent due to the well-developed systems. Though there are pros and cons of electronic cash, it has become a revolution that is enhancing the banking sector. Electronic banking, or E-banking, is the term that describes all transactions that take place among companies, organizations, and individuals and their banking institutions. First conceptualized in the mid-1970s, some banks offered customers electronic banking in 1985. However, the lack of Internet users, and costs associated with using online banking, stunted growth. The Internet explosion in the late-1990s made people more comfortable with making transactions over the web. Despite the dot-com crash, e-banking grew alongside the Internet. (Wikipedia, 2011)

2.2 Ventures in Electronic Banking
In order for this industry to expand further, secure transactions with the trust of the consumers are necessary. Many banks are advertising secure on-line service, allowing their customers a wide range of activities that they can do. Security First Network Bank is the first federally approved on-line bank that is certified by the Office of Thrift Supervision, the federal regulatory body for the saving bank industry. With the support of the federal agencies, Security First Network Bank can give their customers more than just their assurance, but the assurance of the government, which gives consumers a large incentive to try electronic banking. For a truly convenient system, banks need to connect to customers as well as to other financial institutions. Creating a common link between multiple banks so that banks can better and more safely communicate amongst themselves is becoming more of a reality. Fifteen of North America’s leading banks and IBM are working together to form an integrated network called Integrion Financial Network. The banks will be able to offer their customers access to their services through the public Internet and Parallel private network access, with security and privacy. In Europe, the Inter-bank Standards Association Belgium has established the Belgium’s electronic banking system to connect Belgium’s three largest banks together to develop uniform standards for electronic payments in Belgium. This system, developed by Utimaco uses electronic signatures according to the RSA method to guarantee accountability and security against the forging of electronic transaction. Internationally, GENDEX Bank International is trying to connect the banking systems of various nations, states, independent principalities, and sovereign individuals to form an international banking system. This integration of electronic banking communities will promote the standardization of this industry. However, the primary concern today is the security issue. (Cracknel, 2004) 2.3 Why E- Banking?

E-Banking (Electronic banking) brings the potential to extend low cost virtual bank accounts to a large number of currently un-banked individuals worldwide. Change is being driven by falling costs of technology, by competition and by the ability of electronic banking solutions to offer customers an enhanced range of services at a very low cost. Whichever
technical option is chosen the development of an electronic banking solution should consider the customer perspective – the customer value proposition; the institutional perspective – the business. (Cracknel, 2004) 2.4 What does electronic banking mean?

E-banking can be defined as a facility provided by banking and financial institutions that enable the user to execute bank related transactions through Internet. The biggest advantage of Internet banking is that people can expend the services sitting at home, to transact business. Due to which, the account holder does not have to personally visit the bank. With the help of Internet banking many transactions can be executed by the account holder. When small transactions like balance inquiry, record of recent transaction, etc. are to be processed, the Internet banking facility proves to be very handy. The concept of Internet banking has thus become a revolution in the field of banking and finance. E-banking is a service provided by many banks, and Financial Institutions that allows one to conduct banking transactions over the Internet using a personal computer, mobile telephone, or handheld computer (such as a "personal digital assistant"). Through electronic banking one may be able to: • Access accounts round-the-clock, even on weekends

• See balances on line and find out whether checks or deposits have cleared • Transfer funds between accounts
• Receive and pay bills E-banking (without check writing, envelopes, or stamps) (Chandra et.al, 2010)
2.4.1 Customer Perspective: The Value Proposition
For electronic banking products to succeed they must consider how their product meets the expressed needs of their customers. To meet the needs of the poor the value proposition must consider product features, accessibility, affordability and ease of use. 2.4.2 The Institutional Perspective: The Business Case

For the financial institution the business case for e-banking needs to be strong. Simply put there must be a profit. Profits are attained from developing an e-banking solution that can host products targeted at
different segments and thereby build sufficient transaction volume to generate sufficient fee income to cover costs. To ensure transaction volumes a distribution system must be carefully designed and implemented. Multiple profitable partnerships will be required to ensure accessible, easy to use products. (Cracknell, 2004) 2.5 Argument for e-banking

Sound management of banking products and services, especially those provided over the internet, is fundamental to maintaining a high level of public confidence not only in the individual bank and its brand name but also in the banking system as a whole. Key components that will help maintain a high level of public confidence in an open network environment include: 2.5.1 Security

Banks must have a sound system of internal controls to protect against security breaches for all forms of electronic access. 2.5.2 Authentication
Transactions on the internet or any other telecommunication network must be secured to achieve a high level of public confidence. In cyberspace, as in the physical world, customers, banks, and merchants need assurances that they will receive the service as ordered or the merchandise as requested, and that they know the identity of the person they are dealing with. 2.5.3 Trust:

Public and Private key cryptographic systems can be used to secure information and authenticate parties in transactions in cyberspace. A trusted third party is a necessary part of the process. That third party is the certification authority

2.5.4 Privacy:
For the case of internet banking personal information is very confidential. So the information should be very much private. The banks should ensure the privacy of all these information. 2.5.5 Availability:

The bank should maintain their service at every moment. The customers of internet banking are time conscious and time is much more important to them. So the service should be available all the time. (Khalil et.al, 2006)

2.6 Features of the Electronic banking:
With business processes becoming increasingly digitized, business models, and, with them, the risk structure of credit institutions, are changing. The following characteristics of E-banking are therefore at the center of banking. Table: Common Features Offered by Electronic Banking Products Accessibility|

ATM .| Withdrawals and deposits, account transfers, money transfers, purchase of airtime and bill payments| Merchant network | Ability to use solution to make purchases at merchants| Visa / Maestro issuing | Cards branded Visa or Maestro (or MasterCard) enabling the cards to be used throughout the Visa or MasterCard infrastructure. | Cash back | The ability to withdraw cash from the card through a merchant network| Person to person transfer| The ability to transfer funds onto the card| Third Party Deposits| The ability to deposit money into the card through third parties e.g. Post Offices| Ease of Use / User Training|

Uniformity of service | Services are provided in a standardized manner regardless of point of service| Assistance at service | points Assistance can be provided by the merchant or through assisted service points| Transparency|

Statement Printing | A statement showing recent history on the electronic account is printed on request| Balance Enquiry | A balance enquiry either prints the account balance or shows it on a screen| Transaction Receipt | A receipt is printed by the ATM or POS device following the completion of the transaction| Security|

PIN based verification | Verification of the user through use of a secret numerical code called a Personal Identification Number.| Biometrics | Using finger print or iris scans to verify the identity of the user| Value Added Services|

Electronic Funds Transfer(EFT)| Electronic funds transfer allows electronic payments into an e-banking Account| Source: (cracknel, 2004)

2.7 E-Banking Components
E-banking systems can vary significantly in their configuration depending on a number of factors. Financial institutions should choose their E-banking system configuration, including outsourcing relationships, based on four factors; * Strategic objectives for e-banking

* Scope, scale, and complexity of equipment, systems, and activities * Technology expertise
* Security and internal control requirements
Financial institutions may choose to support their E-banking services internally. Alternatively, financial institutions can outsource any aspect of their e-banking systems to third parties. The following entities could provide or host (I.e., allow applications to reside on their servers) Q-banking related services for financial institutions: * Another financial institution

* Internet service provider
* Internet banking software vendor or processor
* Core banking vendor or processor
* Managed security service provider
* Bill payment provider
* Credit bureau, and
E-banking systems rely on a number of common components or processes. The following list includes many of the potential components and processes seen in a typical institution: * Website design and hosting

* Firewall configuration and management
* Intrusion detection system or IDS (network and host-based)
* Network administration
* Security management
* Internet banking server
* Internal network servers
* Core processing system
* Programming support, and
* Automated decision support systems
These components work together to deliver E-banking services. Each component represents a control point to consider. Through a combination of internal and outsourced solutions, management has many alternatives when determining the overall system configuration for the various components of an e-banking system. (Chandra et.al, 2010)
2.8 Different form of E-banking
The terms ‘PC banking’, ‘online banking’, ‘Internet banking’, ‘Telephone banking’ or’ mobile banking’ refer to a number of ways in which customers can access their banks without having to be physically present at the bank branch. E-banking may be understood as term that covers all these ways of banking business electronically.

2.8.1 PC Banking
The increasing awareness of the importance of literacy of computer has resulted in increasing use of personal computers through the entire world. The term ‘PC banking’ is used for banking business transacted from a customer’s PC. Using the PC banking now customers can use their personal computers at home or at their office to access their accounts for transactions by subscribing to and dialing into the banks’ Intranet proprietary software system using password. Basically, PC banking may be categorized into two types-

* Internet banking
* Online banking

2.8.2 Internet Banking
Internet banking would free both bankers and customers of the need for
proprietary Software to carry on with their online banking transactions. Customer behavior is changing rapidly. Now the financial service is characterized by individuality, independence of time and place and flexibility. These facts represent huge Challenges for the financial service providers. So the Internet is now considered to be a ‘Strategic weapon’ for them to satisfy the ever-changing customers’ demand and Innovative business needs. Adequate legal framework and maximum security are the two essential factors for Internet banking. The comprehensive security infrastructure includes layers of security from the network to the browser, including sophisticated encryption that protects customers’ from intrusion when they access the bank over the public network.

2.8.3 Online banking:
At present, 29 scheduled banks offer any branch banking facilities through their respective bank online network that provides facilities like transaction through any branch under the respective bank online network; payment against pay order or pay order encashment, demand draft encashment, opening or redemption of FDR from any branch of the same bank; remote fund transfer, cash withdrawal, cash deposit, account statement, clearing and balance enquiry within branches of the same bank; and L/C opening, loan repayment facility to and from any branch of respective bank under its own online network.

2.8.4 Mobile Banking
Actually mobile banking is a variation of Internet banking. Mobile banking is a good example of how the lines between the various forms of e-banking are becoming gradually Blurred. Due to the new transmission technologies such as WAP (Wireless Application Protocol), portable terminal like mobile phones, personal digital assistant (PDA) or small hand-held PCs are providing bank customers with access to the Internet and thus paving the way to Internet banking. It assures immense flexibility and makes the financial services independent of time and place. However, the use of mobile banking is still in a nascent state. The slower transmission speed of the WAP standard and the limited amount of information available are just two of the factors inhibiting the use of those terminals. 2.8.5 E-Money

E-money includes electronic debit and credit system, smart card. The smart card has been defined many ways, but is generally defined as “portable data storage device with intelligence (chip memory) and provision for identity and security.” In their simplest forms, these cards are small microcomputers—lacking only external power supply, displays, and keyboards.

2.8.6 Card-Debit/ ATM card and credit card.
Debit Card Purchase or Payment Transactions let you make purchases or payments with a debit card, which also may be your ATM card. This could occur at a store or business, online, or by phone. The process is similar to using a credit card, with some important exceptions. While the process is fast and easy, a debit card purchase or payment transfer’s money – fairly quickly – from your bank account to the company’s account. 2.8.7 Tele-banking

Tele-banking service is provided by phone. To access an account it is required to dial a Particular telephone number and there are several options of services. Options included * Checking account balance

* Funds transfer between current, savings and credit card accounts * Bill payments
* Stock exchange transaction
* Receive statement via fax
* Loan payment information

2.8.8 Other forms
1. Any branch banking/ anywhere banking.
2. SMS banking.
3. Electronic fund transfer system.
4. Virtual banking. (Baten, 2010)

2.9 Electronic Banking Technology
There are a number of options facing institutions thinking about investing in electronic banking for the mass market, these include: * Personal
Digital Assistants to automate loan officer operations * ATM machines & POS

* Magnetic Stripe Cards … often referred to as “magstripe” * Smart Cards
* Cell-phone banking frequently debit card and smart card options are integrated with Automated Teller Machines (ATMs) (cracknell ,2004) 2.10 Software used
All the modern banks uses two common software developed by Bangladesh bank named NIKASH for check clearing purposes and PC bank for maintaining the ledger of clients. Besides Dhaka Bank ltd. and Eastern bank ltd. uses FLEXCUBE, Mercantile bank ltd. and Mutual Trust Bank ltd. uses FLORA Bank, the City bank ltd. and Arab Bangladesh Bank ltd. uses FINACLE.

2.11 Impact of E-banking
It has been observed that customers who adopt E-banking are typically more profitable to the bank, stay with the bank longer and use more products strengthening the bank customer relationship. Information Technology and Internet banking has bridged the information gap, which was interestingly because of human involvement. Banks can make the information of products and services available on their site, which is, an advantageous proposition. Prospective customer can gather all the information from the website and thus if he comes to the branch with queries it will be very specific and will take less time of employee. Customer can visit these websites and can compare the services offered by a bank with that of another. Customer can get all the information, by saving money and time. The trend thus emerging out is that of virtual corporate system where the human role is minimized to maximum effect. The overall banking size and structure has increased considerably. It can also be attributed to the current market characteristics. Earlier nationalized bank dominated the scenario. Now after deregulation private banks have emerged as a powerful force. As a result, there is a fierce competition among these players for capturing the savings of individuals and current accounts of organizations. This has been organized by the liberalization in the insurance industry. Insurance industry is giving fierce competition through their offerings on various policies. This sudden surge has necessitated the use of technology in
offering better services competitively. Most of the banks have coupled IT with their offering to add value. Several banks have been positioning themselves as a one-stop shop financial service provider with a fairly exhaustive range of products, including deposit products, loans, credit cards, debit cards, depository (custody services), investment advice, bill payments and various transactional services. These apart, banks have also been entering into the business of selling third-party products such as mutual funds and insurance to the retail customers. To provide their customers greater flexibility and convenience as well as to reduce servicing costs, banks have been investing to computerize their branches and in new delivery channels such as ATMs, phone banking, internet banking and mobile banking. ((Baten, 2010)

CURRENT SCENARIO OF E-BANKING IN BANGLADESH

3. Introduction
E-Banking is a short for Electronic Banking where the entire transaction taken place electronically via Internet/computers. Every step of the bank is related by this method. This method is much easier, earlier than conventional Banking. Bill payment, Funds Transfer, Investments, Shopping everything is possible by e-Banking.

There are currently 53 Banks working together in Bangladesh. The competition is going up day by day, especially between the personal commercial banks. They are trying to experience themselves as the better one to their customers by prove new banking services, mounting the existing services and so on. E-Banking is known to Bangladesh since 1990. Electronic Banking has got incredible importance in banking sector and banking customers too. (Bangladesh Bank)

3.1 Banking system in Bangladesh
The commercial banking system dominates Bangladesh's financial sector. Bangladesh Bank is the Central Bank of Bangladesh and the chief regulatory authority in the sector. The banking system is composed of four state-owned commercial banks, five specialized development banks, thirty
private commercial Banks and nine foreign commercial banks. The Nobel-prize winning Grameen Bank is a specialized micro-finance institution, which revolutionized the concept of micro-credit and contributed greatly towards poverty reduction and the empowerment of women in Bangladesh. 3.1.1 Central Bank

Pursuant to Bangladesh Bank Order, 1972 the Government of Bangladesh reorganized the Dhaka branch of the State Bank of Pakistan as the central bank of the country, and named it Bangladesh Bank with retrospective effect from 16 December 1971. 3.1.2 Bangladesh Bank

Bangladesh Bank (BB) has been working as the central bank since the country's independence. Its prime jobs include issuing of currency, maintaining foreign exchange reserve and providing transaction facilities of all public monetary matters. Bangladesh Bank is also responsible for planning the government's monetary policy and implementing it thereby.

3.1.3 State-owned Commercial Banks
The banking system of Bangladesh is dominated by the 4 Nationalized Commercial Banks In which 3 is totally controlled by government and 1 (Rupali Bank) bank is controlled by both government and private sector Which together controlled more than 54% of deposits and operated 3388 branches (54% of the total) as of December 31, 2004. The nationalized commercial banks are: * Nationalized Commercial Bank of Bangladesh:

* Sonali Bank
* Agrani Bank
* Rupali Bank
* Janata Bank
3.1.4 Private Commercial Banks
Private Banks are the highest growth sector due to the dismal performances of government banks (above). They tend to offer better service and products. There were no domestic private commercial banks in Bangladesh until 1982; When the Arab-Bangladesh Bank Ltd. commenced private commercial banking in the country. Five more commercial banks came up in 1983 and initiated a
moderate growth in banking financial institutions Now 31 private commercial banks are operating in Bangladesh. Here is the list - * United Commercial Bank Limited

* Mutual Trust Bank Limited
* BRAC Bank Limited
* Eastern Bank Limited
* Dutch Bangla Bank Limited
* Dhaka Bank Limited
* Islami Bank Bangladesh Ltd
* Uttara Bank Limited
* Pubali Bank Limited
* IFIC Bank Limited
* National Bank Limited
* The City Bank Limited
* NCC Bank Limited
* Mercantile Bank Limited
* Prime Bank Limited
* Southeast Bank Limited
* Al-Arafah Islami Bank Limited
* Social Islami Bank Limited
* Standard Bank Limited
* One Bank Limited
* Exim Bank Limited
* Bangladesh Commerce Bank Limited
* First Security Islami Bank Limited
* The Premier Bank Limited
* Bank Asia Limited
* Trust Bank Limited
* Shahjalal Islami Bank Limited
* Jamuna Bank Limited
* ICB Islamic Bank
* AB Bank
* Jubilee Bank Limited
* Foreign Commercial Banks
* 10 Foreign Commercial Banks are operating in Bangladesh. These are - * Citibank
* HSBC
* Standard Chartered Bank
* Commercial Bank of Ceylon
* State Bank of India
* Habib Bank Limited
* Union Bank Limited,
* Modhumoti Bank Limited,
* The Farmers Bank Limited,
* Meghna Bank Limited,
* Midland Bank Limited
* South Bangla Agriculture and
* Commerce Bank Limited.
* National Bank of Pakistan
* Woori Bank
* Bank Alfalah
* ICICI Bank
3.1.5 Specialized Development Banks
Out of the specialized banks, two (Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank- only for the development of the agriculture of the north bengal of Bangladesh) were created to meet the credit needs of the agricultural sector while the other two ( Bangladesh Shilpa Bank (BSB) & Bangladesh Shilpa Rin Sangtha (BSRS) are for extending term loans to the industrial sector.[1] The Specialized banks are: * Karmasangsthan Bank

* Bangladesh Krishi Bank
* Rajshahi Krishi Unnayan Bank
* Progoti Co-operative Landmortgage Bank Limited (Progoti BanK) * Grameen Bank
* Bangladesh Development Bank Ltd
* Bangladesh Somobay Bank Limited(Cooperative Bank)
* Ansar VDP Unnyan Bank
* BASIC Bank Limited (Bangladesh Small Industries and Commerce Bank Limited)
(Wikipedia)

3.2 Different Forms of Electronic-banking available

At present, several private commercial banks (PCBs) and foreign commercial banks (FCBs) in Bangladesh offer limited services of tele banking, internet banking, and online banking facilities working within the branches of individual bank in a closed network environment. The FCBs have played the pioneering role with adoption of modern technology in retail banking during the early 1990s whereas the state-owned commercial banks (SCBs) and PCBs came forward with such services in a limited scale during the late 1990s.

3.2.1 PC banking: PC banking refers to use of personal computer in banking activities while under PC home banking customers use their personal computers at home or locations outside bank branches to access accounts for transactions by subscribing to and dialing into the banks' Internet proprietary software system using password. Basically, PC banking may be categorized into two types such as online banking and Internet banking.

3.2.2 Internet banking:. Only 7 out of 48 banks are providing some banking services via internet that include account balance enquiry, fund transfer among accounts of the same customer, opening or modifying term deposit account, cheque book or pay order request, exchange rate or interest rate enquiry, bills payment, account summary, account details, account activity, standing instructions, loan repayment, loan information, statement request, cheque status enquiry, stop payment cheque, refill prepaid card, password change, L/C application, bank guarantee application, lost card (debit/credit) reporting, pay credit card dues, view credit card statement, or check balance.

3.2.3 Mobile banking: The standard package of activities that mobile banking covers are: mini-statements and checking of account history; alerts on account activity or passing of set thresholds; monitoring of term deposits; access to loan statements; access to card statements; status on cheque, stop payment on cheque; ordering check books; balance checking in the account;
recent transactions; due date of payment; PIN provision, change of PIN and reminder over the internet; blocking of (lost/stolen) cards; domestic and international fund transfers; micro-payment handling; mobile recharging; commercial payment processing; bill payment processing; peer to peer payments; withdrawal at banking agent; and deposit at banking agent. Despite huge prospects, only a few banks adopted mobile banking in Bangladesh during the last year. (Baten et.al, 2010)

3.2.4 Mechanical Teller Machine (ATM)
An ATM is simply a data terminal with two input and four output devices. Like any other date terminal, the ATM has to connect to, and communicate through a host processor. Now only DBBL (Dutch Bangla Bank Limited) has more than hundred of ATMs in Bangladesh.

3.2.5 Tele Banking:
Tele Banking is form of remote banking which is fundamentally the deliverance of branch financial services via telecommunication devices, where the bank customer can perform retail connections by dialing a touch one telephone or mobile announcement unit.

3.2.6 Online Banking:
Banks are considering online backings as a powerful “value added” tool to attract and retain new customers. Online Banking (Internet Banking) is a term used to perform transactions, payments etc. over the internet through a bank’s secure website. Currently the internationally usage of VISA or MasterCard online from Bangladesh is very limited, which is an obstacle in the way of the online workers, who has to perform online transactions recurrently. As Pay Pal, a trusted 3rd party online Transactions Company is still not available in Bangladesh, the banks should come ahead and take steps to solve this problem. It will boost the principle of making Digital Bangladesh. (Bangladesh Bank)

3.3 Electronic Banks in Bangladesh
3.3.1 Dutch-Bangla Bank Limited (DBBL)
Dutch-Bangla Bank Limited (DBBL) was the first bank in Bangladesh to introduce ATM and e-banking in 2003, and further additions and features are continuously being added and upgraded. DBBL has adopted the same exact Automation solution used by international banking giants (DBBL Annual Report, 2010). A DBBL client has unlimited access to banking from any DBBL branch, ATM and Point of Sale (POS). ATM access to all DBBL clients is unlimited and free of cost. All of these services are affordable for everyone. With 800 ATMs nationwide DBBL has the largest ATM network in Bangladesh which gives its clients full access to ‘anytime anywhere 'banking. All international and many local banks use the ATM network of DBBL for their clients. However, if a client of a member bank uses a DBBL ATM, the member bank may add a transaction charge to its client. DBBL has an off-site Data Recovery Site (DRS) which ensures that customer records are safe, backed-up, and up to date in the event of a major catastrophe at the Electronic-Banking Division headquarters. Since 2004, DBBL has introduced mobile and SMS banking. With a mobile phone, customers can perform many banking operations .DBBL is a primary license holder for both VISA and MasterCard. It is authorized to issue and accept payments from both organizations. DBBL offers also Visa and MasterCard Debit Cards. It does also Internet and SMS Banking and provides other services. DBBL has established drawing arrangement network with banks located in the important countries of the world namely in the United Arab Emirates, State of Kuwait, State of Qatar, State of Bahrain, Italy, Canada and United States of America. Bangladeshi Wage Earners can send their money with confidence, safety and speed to their respective beneficiaries in Bangladesh in shortest possible time. DBBL has set up a representation agreement with Western Union Financial Services Inc, USA, which is a reliable international money transfer company. Using the service of DBBL, Bangladeshi Wage Earners can send and receive money quickly from over 225,000 Western Union Agent located in 197 countries and territories worldwide only by visiting any branches of Dutch-Bangla Bank Limited in Bangladesh. DBBL offers banking facilities through a wide range of mobile phones. Customer using HTML browser has access to the internet banking facilities of DBBL.

3.3.2 HSBC
Business Banking Account enables a person to receive credit of all the cash or cheque deposits along with inward remittance and make all local payments and provide access tothe wide range of services for the business requirements. A person may deposit uptoBDT50,000 cash per transaction and any BDT amount in cheque 24 hours a day, 7 days a week through the ATM Machines, conveniently located Sales and Service Centers. Easy Pay Machines are also available for deposit of BDT 50,000 cash per transaction and any BDT amount in cheque to the Business Banking Account. With Easy Pay Machines both HSBC and Non-HSBC customers can make deposits and pay their utility bills, credit card payments and etc.

3.3.3 Standard Chartered Bank
Standard Chartered Bank offers the client a comprehensive range of Cash Management services. Whether it is a financial institution, a multi-national corporation or a domestic company, Electronic Banking application has the capability to support full range of Cash Management reporting and transaction initiation needs. It provides the secure, reliable and effective link between the client and client’s accounts anywhere across the Standard Chartered network. Electronic Banking provides various types of support through a wide range of operating systems, sweeping transaction accessories with the provision of reporting features or other special functions. There are 10 offices and 50 employees under this division, which operates in 26 countries.

3.3.4 Premier Bank
Premier Bank has set up Wide Area Network using Radio, Fibre-Optics & other communication systems to provide branch banking to its customers (Premier Bank Annual Report, 2009). Customer of one branch is now able to deposit and withdraw money at any of the branches. All Branches are included in the Wide Area Network. So, no TT/DD or cash carrying is necessary. Premier Bank has been giving SMS Banking Service since 2006. The customers of Premier Bank can have information about banking transactions and inquiries through SMS Banking. They can check their balance, stop a cheque payment, or get statements. Its
SMS Banking provides the customers with real time account information by using mobile phones and instruction capabilities from the mobile phones at ‘anywhere, anytime, anyhow’. The service is available round the clock seven days a week. Premier Bank SMS banking service is free for customers.

3.3.5 Prime Bank Limited
Prime Bank Limited provides Internet Banking with a secure connection of the client’s access to the accounts 24 hours a day, 7 days a week from any Internet connection (Prime Bank Annual Report, 2010). It provides the opportunity to verify account balances, transfer funds, and pay loans, every time when the customers log on to their on-line account. The customers can monitor account activity, get real-time account balance, and transfer funds at convenience. Prime bank’s Internet Banking requires no special software; it is available through its website. Account access isn't limited to a specific PC with special software installed and data stored. Anywhere the customers have access to the Internet, have access to their Prime bank accounts. Prime bank’s Internet Banking lets the customers download their latest on-line account information. Prime bank’s Internet Banking gives opportunity of bill paying for its customers through Prime bank’s Bill Payer program.

3.3.6 Islami Bank Bangladesh Limited (IBBL)
Islami Bank Bangladesh Limited (IBBL) provides different services of e-banking to its customers (Islami Bank Annual Report, 2010). It has introduced ATM, SMS banking and Internet banking. For SMS banking registration is required. Under SMS banking of IBBL customers get different services. SMS and i-Banking facilities, however, are applicable only for online branches. The contract could be terminated by either side giving 30 days’ prior notice. The Internet Based Banking of IBBL is called i-Banking which has been introduced since 2009.

3.3.7 Arab Bangladesh Bank Ltd.
The first private bank of Bangladesh with a long standing experience in domestic and international banking. Its 153 branches in all the major
commercial centers of the country and 152 correspondents worldwide provide proficient banking services to its customers.-

3.3.8 IFIC Bank
IFIC Bank issues VISA Credit Cards for both local and international use (IFIC Bank Annual Report, 2010). The Local Cards can be used at any ATM displaying VISA Logo for withdrawal of cash and for purchase of goods & services at any POS displaying VISA Logo within Bangladesh. The International Cards, on the other hand, can be used at any ATM and POS displaying VISA logo anywhere in the world.

3.3.9 International credit card of IFIC
International credit card of IFIC Bank is a dual currency card and could be used at home & abroad. IFIC credit cardholders can enjoy 20 to 50days interest free period depending on the date of transaction and the date of statement generation. IFIC Bank Limited provides also opportunity for SMS Banking Card Services to its clients. Under Card Services the clients of IFIC can have Push /Pull Services. All Account & Card Holder of IFIC Bank are eligible to apply for SMS Banking and Card Services. (Baten et.al 2010)

3.4 The electronic banking and its services and software at a glance Table: The electronic banking and its services and software at a glance Bank’s Name| Software use| Vendor’s name| Service|

3.5 Services provided by electronic banks in Bangladesh
Internet banking enables customer to access his/her personal or business accounts anytime anywhere from home, office or when traveling. Internet Banking gives customer the freedom to choose his/her own banking hours. Account Summary: he Customer will be able to view the list of Current, Saving, Term Deposit and Loan accounts with the current balance. Account Details: he Customer can choose a particular account and see the account details including unclear fund, limit, interest accrued etc. Account Activity: The customer can see or print his transaction activity in a given account for a particular period. Transfer Funds: The customer can transfer funds from one of his accounts to another of his accounts within the bank. Third Party Transfer: The customer can transfer funds from one of his accounts to another customer’s account within the bank. Pay Bills: The customer can pay his utility bill (like Electricity, WASA, GAS, Telephone, Mobile, ISP etc.) Standing Instructions: The customer can setup, modify or
delete standing instructions for transferring fund from one of his account to another account (his account or 3rd party). Open/Modify Term Deposit: The customer can open a term deposit by transferring funds from one of his current or savings accounts with the bank. He can also modify the TD and redeem / part-redeem it. Loan Repayments: The customer can make payment of the loan installment from his CASA account. Statement Request: The customer can make a request for account statement for a required period. The bank will manually service this request. Cheque Book Request: The customer can make a request for a Cheque book. Cheque Status Inquiry: The customer can choose an account and enter the Cheque number for which the status should be viewed. Stop Payment Cheque: The customer can mark his Cheque leaf as stop payment. Interest Rate Inquiry: The customer can query on the interest rates on CASA & Term Deposit Products. Foreign Exchange Rate Inquiry: The customer can query on the Foreign Exchange (FX) Rates using this function. Refill Pre-Paid Card: The customer can buy a refill number for his pre-paid mobile phone or ISP link. Shopping: With a range of all kind of products, we can shop online and the payment is also made conveniently through our account. We can also buy railway and air tickets through Internet banking. (Chandra et.al, 2010)

3.7 Position of Electronic-banking in Bangladesh
Currently in Bangladesh, there are 4 state owned Banks have 34% branches, 5 specialized banks have 1311 branches, 30 local private marketable banks have branches all transversely the country. Table: Position of E-Banking in Bangladesh (As on November 20, 2011)

Source: Bangladesh Bank 3.8 Economic aspect of E-banking in Bangladesh
3.8.1 Advantages of E-banking in Bangladesh:
There are a substantial number of educated unemployed youth forces, with ability to read and write English exist in the country. They can be trained within a required skill in a short time. * Short term Benefits:

Reduce extra time; Increase productivity and efficiency; Eliminate duplication and wastage; Cut down maintenance, and shortage cost; Curtail
security cost.

* Long-term benefits:
Create new opportunities of jobs for jobless; Participate in the country’s economic health; proper planning and monitoring; Proper use resources.

* Job creation:
According to Bangladesh Bureau of Statistics, the number of unemployed people in Bangladesh in 1990-01 was 1.0 million. Among them 0.2 million are male and 0.8 million female, at the rate of unemployment is 1.1 which is extended 1.9. The issue of computers eliminating jobs of people is quite emotional and painfully real. But it has two sides that automation will eliminate certain types of job like record keeper and also create jobs like administrator, system analyst, programmer, operator etc. and help to reduce unemployment problem.

* Contribution to GDP:
Banks with a national economy, work towards building national capital, increasing national savings and mobilizing investments in trade and industry.

* Benefits from the banks’ point of view:
From the banks’ view point, the first benefits for the banks offering e-banking services is better branding and better responsiveness to the market. The other benefits are possible to measure in monetary terms. The main goal of every company is to maximize profits for its owners and banks are not any exception. Automated e-banking services offer a perfect opportunity for maximizing profits.

* Benefits from the customers’ point of view:
The main benefit from the bank customers’ point of view is significant saving of time by the automation of banking services processing and introduction of an easy maintenance tools for managing customer’s money.

3.8.2 The main economic benefits of e-banking
Increased comfort and timesaving-transactions can be made 24 hours a day,
without requiring the physical interaction with the bank. * Quick and continuous access to information
Corporations will have easier access to information as, they can check on multiple accounts at the click of a button. Better cash management. E-banking facilities speed up cash cycle and increases efficiency of business processes as large variety of cash management instruments is available on Internet sites of banks. * Economical benefits

E-banking serves so many benefits not only to the bank itself, but also to the society as a whole. E-banking makes finance economically possible: * Lower operational costs of banks
* Automated process
* Accelerated credit decisions
* Lowered minimum loan size to be profitable.

* Potentially lower margins

* Lower cost of entry
* Expanded financing reach increased transparency.

* Expand reach through self-service

* Lower transaction cost
* Make some corporate services economically feasible for society * Make anytime access to accounts (Hasan, et.al 2004)

3.9 Limitation of E- banking in Bangladesh
* Huge Number of branches all over the Bangladesh even outside the country and for the purpose of automation huge investment is necessary. * Most of the branches are in the rural areas where there are weak modern digital communication facilities. * Most of the users or clients of the banks are poor and uneducated village people having no knowledge about electronic banking and cannot afford it at the current cost level. * Most of the officials of these banks in the classical stage especially the state owned ones are aggie and cannot understand and are reluctant to accept modern
electronic banking. To turn around these banks at first the outdated mentality of these officials of the classical banks. * Illiteracy is a great problem in consideration of E-Banking activities execution. 3.10 Restriction of E-banking in Bangladesh

1. Availability and growth of telecommunication instructors. 2. ICT operation in electric banking sectors.
3. Culture of using electric banking.
4. Legal and regularity framework
5. The users of electric banking are in urban areas.
6. Infrastructure of villages is not suitable for electronic banking.

3.11 The Environment for E-banking
There are well-developed banking and retail sectors, a supportive central bank, good communications and a generally positive policy environment. The environment for electronic banking is influenced by the: Evolution of the financial and retail sectors

The nature of the financial and retail market in which the solution is being launched is a key determinant of product features, accessibility, transaction volumes and financial literacy. Level of financial literacy

The level of financial literacy influences communication of the product, the nature of the distribution channel and the nature of transactions made. Regulatory and policy environment
The regulatory and policy environment should be supportive of electronic banking. This includes banking regulations and appropriate communications, security, and information policies. (Cracknell, 2004)

SWOT ANALYSIS

4.1 SWOT Analysis
To find out the viability of a particular product we must perform a SWOT Analysis of the product. This will analyze the Strengths, Weaknesses, Opportunities, and Threats of the particular product. For analyzing the
performance of Internet Banking in Bangladesh we the following SWOT Analysis is considered

4.1. Strengths
• Strong corporate identity
E-banks in Bangladesh has creates strong corporate image. With its strong corporate image and identity, it has better positioned itself in the minds of the customers. • Strong employee bonding and belongings

Employee’s banks are one of the major assets of this sector. The employees have a strong sense of commitment towards organization and also feel proud and a sense of belonging towards banks. • Efficient Performance

It has been seen from customers’ opinion that E-banks provide hassle-free customer services to its client comparing to other traditional banks of Bangladesh. • Empowered Work force
The human resource of E-bank is extremely well thought & perfectly managed. As from the very first, the top management believed in empowering employees, where they refused to put their finger in every part of the pie. This empowered environment makes E-banks a better place for the employees. • Hospitable Working Environment

Working environment in E-bank sector is so hospitable that any of the executives is likely to plop down at a table in its cafeteria & join in a lunch, chat with whoever is there. • Strong Financial Position

It has been seen that the net profit has been gradually rising over the years. Furthermore, E-banks are not just sitting on its previous year’s success, but also taking initiatives to improve.

4.2 Weaknesses
• Absence of strong marketing activities
E-banks currently don't have any strong marketing activities through mass media e.g. Television. TV ads play vital role in awareness building. DBL has no such TV ad campaign. Although they do a lot of CSR activities. • Not
enough innovative products

In order to be more competitive in the market, E-banks should come up with more new attractive and innovative products. This is one of the weaknesses that this sector is much lag behind in innovation of products and services. • Diversification

E-banks can pursue a diversification strategy in expanding its current line of business. The management can consider options of starting merchant banking or diversify it to leasing and insurance. In Bangladesh they can also offer these services. • Lack of Proper Motivation

The salary at E-bank is very decent, but it lacks other sorts of motivation. Incentives such as bonuses are given for acquiring a particular figure, but all in all these are the only motivational factors. • High Cost for maintaining account

The account maintenance cost for E-bank is comparatively high especially for card holder. Clients have to pay for maintaining account. • Outdated Software and Hardware
Some of the PCs in this branch have very outdated hardware which is very slow and affects the customers and hence the performance of the bank as a whole. The software themselves are pretty old. Bangladeshi E-banks are using backdated software that always can’t prevent cyber attack.

4.3 Opportunities
• Distinct operating procedures
E-bank runs its operation in distinct procedure that is almost different from traditional banking. This distinction is positive toward customer expected service. • Country wide network
Great opportunity for E-banks is to expand its operations to whole Bangladesh. Target for providing services through the country side will secure its existence in the lon run. • Experienced Managers

One of the key opportunities of E-banks is its efficient managers. It has
employed experienced managers to facilitate its operation. • Huge Population
Bangladesh is a developing country to satisfy the needs of the huge population, a large amount of investment is required. On the other hand, building EPZ areas and some Govt. policies easing foreign investment in our country made it attractive to the foreigners to invest in our country. So, E-bank has a large opportunity here. • New software

It is software which enables customers to deposit and withdraw money from any bank with the cheque or deposit of any other bank. • Bigger Market
Large number of population is in our country. Moreover our national income and its business scope is a huge untapped market that requires loans and intends to deposit also.

4.4 Threats
• Default Loans
The problem of non-performing loans or default loans is very minimum or insignificant. However, this problem may rise in the future thus; E-bank has to remain vigilant about this problem so that proactive strategies are taken to minimize this problem.

• Industrial Downturn
Bangladesh is economically and political unstable country. Flood, draught, cyclone, and newly added terrorism have become an identity of our country. Along with inflation, unemployment also creates industry wide recession. These caused downward pressure on the capital demand for investment.

• Financial Crisis
Although people have recovered a bit from the shock, it may still pose as a threat. People are still hesitant to take loans or even deposit them.

Findings and Analysis

5.1 What values persuade you to open Account?

Interpretation
Banks offer to the customers on the basis of customers demand. They offer services with new added values that persuade customers to open new account. Each and every value with special quality isolated customers in some different groups. So, customers are convinced to open account for bank value services. Among 30 respondents choose E-banking services for its 7/24% accessibility, and 7/24% account management.

5.2 Gender

Interpretation
Banks are for all. No extra facilities are provided to men or women. All classes of people own E-banking Account. Though two parts of them male and female are not equal in number in case of E-banking Account holding. Sample size for this report is 30 and 25 or 83% men whereas only 5/17% Women Possess E-Banking Account.

5.3 What form of e-banking services are you enjoying mainly?

Interpretation
Now a days Bangladeshi E-Banks are providing different forms of e-banking services to their customers. But customers are using these offers according to their own need. An Account holder can enjoy different forms of e-banking services at the sometime. But I have only focused on one major forms of services customers use at a time. Form my survey I among 30 respondents 12 use ATM mainly that is 40% of the total and the 5 or 17% respondents are using online services.
5.4 What is the most important common support services E- bank account?

Interpretation
E-banks offer customers major services for which it is established. Alongside these main services E-banks offer some support services to their customers that improve standard of living. Among my 30 respondents 7 customers accept both utility bill payment services and loan application and
approval.

5.5 What is the main reason of opening E-bank Account?

Interpretation
Bank and customer are interdependent. Banks are offering many opportunities to customer when customers go to the E-banks for different purposes. To identify the main reason of opening Account this question was asked to the respondents. Loan application is one of many of the purposes being E-bank customer that is appeared in this studies 12 respondents out of 30 have opened an E-bank account for loan.

5.6 How is the E-banking transaction?

Interpretation
Providing services up to the expectations of the customers is a great concern for banks as it is a matter of attraction of them among huge competitors. To measure the E-banking transaction flexibility level of the customers this question was asked the question to the customers and they show mixed responses. 46% of the total respondents are agreed to flexibility and 27% are strongly agreed to not flexible with the question.

5.7 E-banking is costlier than traditional banking. What is your opinion?

Interpretation
Banks provide customers better services in exchange of money. They use all the ways and pavements to reduce cost of customers. With a view to meeting the customer expectation E-banks offer better services within probably limited cost. But in our country customers are expecting that they will get better service but not by providing additional money what they paid for traditional banking service. This study shows that 14 respondents exclaim that e-banking charging higher cost than traditional banking. On the other hand only 7 customers seem that E-banking is charging less cost than traditional banking.

5.8 What problems you are facing in the E-banking?

Interpretation
Bangladesh banking principles recommend that customer service is to be fair, relentless and customer right (accessibility, information, good behave)must be ensured unless otherwise the bank official accused of breaking rules must be punished customers also expect that they always will get smooth service. They never want to face problems arising from bank. But unfortunately in Bangladesh some problems are to be confronted by E-bank customers. To measure the problems facing by customers of asked this question 11 customers face service facility problem and 6 customers face behavioral problem.

5.9 What are the major risks of E-banking you notice?

For smooth running bank specialists always keep hawk-eye on their transaction, activities, services, products etc. All problems aren’t always identified from the view point of researchers. Sometimes conscious customers keep knowledge of banks risk arouses from bankers’ performance. To recognize whether the respondents notice any risk of E-bank activities in Bangladesh. Among 30 respondents 8/27% customers thinks that credit risks is high in E-banking 6/21% customers seems that both market risk and security risk is in the second position in E-banking activities.

5.10 Have you any suggestions?

Banks expect to customers that they will help by giving information. Customers are requested to give some required data stored in the customers. Among various sorts of question suggestions is one. To identify what types of suggestions, amendment, rectification and attachment to present service or deduction from present service customer expect. This question was asked to customer. Among 30 respondents 8or 27% suggests for service improvement and 6 or 21% suggests for behavioral improvement.

6.1 Recommendations

The survey results have given valuable information as to where improvements are necessary to improve the customer services quality of E-banking. Though this least number of respondents don’t represent the real scenario of E-banking of Bangladesh, yet these recommendations will be helpful for the progress of E-banking. Now I recommend the following major things, which will be helpful for building up positive customer attitude toward E-banking in Bangladesh.

* There should be career design for the experts in this sector. * Banks should have adequate research and technological background in this regard. * Banks should try to promote awareness of the clients about the e-banking * Banking is a service-oriented business. Its business profit depends on its service quality. That’s why the authority always should be aware about their service quality. * Long-term training very much required for the employees. * E-banking service should be according to the customer expectation and satisfaction. * E-banking service should be resolve the entire problems very quickly that the customer face in online transaction. * E-banking system should be more flexible.

* The decision making process should be faster.
* Need to establish more ATM booths.
* Government should be pioneer to increase the IT infrastructure.

6.2 Conclusions

With overall dialogue we can terminate the issue of customer attitude toward E-banking in Bangladesh. This study was developed to create a deeper understanding of consumer attitude of E-banking in Bangladesh. The technology acceptance model examined here is valuable in understanding and explaining how users’ perception affects their motivation to use E-Banking. With the resource of Bangladesh it can be favorable for the banks too. Just need some proper cares to be taken. It is also needed that the Govt. growth. The E-bank authorities need to deal with suitable authority to make E-Banking more available in Bangladesh.

At present all types’ business organization performs primarily for customer satisfaction. E-banking is service oriented industry. The first choice of E-banking is to customer satisfaction. Customers are habituated with organization culture. Culture is built up in the practice of years. So customer attitude toward organization is born observing and experiencing an organization’s practice and performance. Through innovative, structural and scientific training the employees of E-banking can provide better customer service. Favorable environment can be present. This environment draws the customers to the industry. Authority and employees have to be determined and committed to their recognition. They must try to find out more creative and better ways to improve their functions. They will have to add new and better performing IT infrastructure will enhance capability to create positive image. Customer attitude will be favorable to E-banking. They must be aware about customer survey and is to be taken account that are found on the customers suggestion and recommendation will encourage them for better and more dealings and relationship with E-banks. In this report some crucial information has been found out to build up a well ambience for E-banking. As customers always expect that organization will accept consider their opinion. Customer will be persuaded to continue their relationship. Customer expects that banking service facility, risk and security management and all other crucial issues regarding customer satisfaction must be maintained and monitored. Customer satisfaction is the prime components of positive customer attitude. For customer satisfaction, outcomes of the survey will provide some important information that can contribute to ensure good E-banking environment in Bangladesh. However with banking customers growing increasingly comfortable with the digital lifestyle, but Bangladeshi customers are not aware about e-banking in Bangladesh. They are not fully understand the power of technology and seek to leverage it to enjoy better control over their banking operations. To conclude that e-banking may also provide other benefits. For instance, creating new markets, and reducing operational costs, administrative costs and workforce are increasingly important aspects for the banks’ competitiveness, and e-banking may improve these aspects as well. So, Bangladeshi banks should take these advantages of e-banking in Bangladesh economy as early as possible.

Reference
* Analysis International Review of Business Research Papers Volume 6. Pp. 145 – 156

* Bangladesh”, Business Review, Vol.06, No.1&2, January to December.

* Baten & Kamil(2010) E-Banking of Economical Prospects in Bangladesh Journal of Internet Banking and Commerce, vol. 15, no.2

* Bhakta, Sarder&Reza(2007) On line Banking: Bangladesh Perspectives

* Biswas, Taleb, and Shinwary (2011) Electronic Banking in Bangladesh: Security Issues, Forms, Opportunities and Challenges Canadian Journal on Scientific and Industrial Research Vol. 2 No. 5,

* Emran Hussain (2010) Analysis of Credit Department of Dhaka Bank Limited

* Hasan, Baten, Kamil and Parveen(2010)Full Length Research Paper: Adoption of e-banking in Bangladesh: An exploratory study African Journal of Business Management Vol. 4(13), pp. 2718-2727, Available online at ISSN 1993-8233 ©2010 Academic Journals

* Muhammad Mahboob Ali (2010). E-Business and on line banking in Bangladesh: an Analysis. AIUB Bus Econ Working Paper Series, No 2010-03, http://orp.aiub.edu/WorkingPaper/WorkingPaper.aspx?year=2010

* Jannatul Mawa Nupur*(2010) E-Banking and Customers’ Satisfaction in Bangladesh: An

* Khalil, Ahmad and Khan (2010) Internet Banking: Development and Prospects in Bangladesh.

* Khan, A. S. (2001). Telecom Industry in Bangladesh: Current Status and Emerging Issues. Telecommunications in Bangladesh: Emerging Issues.

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APPENDIX
QUESTIONNAIRE

This survey is done only for the academic purpose; the objective is that to understand about the customer attitude toward e-banking in our country. 1. Name:………………………………………………………… 2. Age: ……………………………………………………….. 3. Gender

1. Male
2. Female
4. Do you have an E-bank Account?
1. Yes
2. No

5. What is the main reason of opening E-bank Account?
1. To make a deposit
2. Loan
3. Funds transfers
4. For savings
5. Current account

6. What values persuade you to open Account?
1. Account management
2. Facility to verify balances
3. 24 hours service
4. anywhere connectivity
5. Curiosity
6. Low service rate
7. Accessibility

7. What forms of e-banking services are you enjoying mainly? 1. ATM
2. Online banking
3. Tele- banking
4. Mobile banking
5. SMS banking
6. Point of Sale (POS)
7. anytime anywhere 'banking
8. VISA and MasterCard
9. Virtual Banking
10. Electronic Fund Transfer (EFT)

8. What is the most important common support services E- bank account? 1. Bill payment and presentment
2. Investment/Brokerage services
3. Loan application and approval
4. Business-to-business payments
5. Inward remittance
6. pay utility bills
7. Just in time services
8. transfer funds

9. In addition to Internet bank account, do you also have a traditional
bank account? 1. Yes
2. No

10. E-banking is providing better services than traditional banking. Select the following- 1. Strongly agree
2. Agree
3. None
4. Disagree
5. Strongly disagree

11. E-banking is costlier than traditional banking. What is your opinion? 1. More costly
2. Costly
3. Less costly
4. No comment

12. How is the E-banking transaction?
1. Highly flexible
2. Flexible
3. Not flexible
4. Neutral

13. Do you think that E-banking is safe?
1. Yes
2. No
3. Neutral

14. What problems you are facing in the E-banking?
1. Security problem
2. Network
3. Behavioral problem
4. Service facility
5. Time consuming

15. What are the major risks of E-banking you notice?
1. Operational risks
2. Security risks
3. System design
4. Maintenance risks
5. Strategic risks
6. Credit risks
7. Market risks and
8. Liquidity risks

16. If you need another account, will you open an E-bank account? 1. Very unlikely
2. Somewhat unlikely
3. Somewhat likely
4. Very likely
5. Not applicable

17. Have you any suggestions?
1. Service improvement
2. Security enhance
3. Behavioral training
4. Network development
5. Cost reduction

Signature and date: