A STUDY ON CUSTOMER new.docx

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A STUDY ON ATTITUDE AND USAGE OF CUSTOMERS TOWARDS CASH DEPOSITING MACHINE IN KOLLAM

A STUDY ON ATTITUDE AND USAGE OF CUSTOMERS TOWARDS

CASH DEPOSITING MACHINE IN KOLLAM

Abstract:This paper shows a study on customer’s attitude and usage in using cash deposit

machines at Kollam Disrrict. Banking sector plays an active role in the economic development of a country. The new technologies help the banks to reduce the work load. The green channel

counters help the customers to have convenient and comfortable banking transactions The study

has been formulated based on the following objectives.

To identify the factors that influences the customers’ satisfaction of green channel

counter To identify the factors leading to Green Channel Counter

To offer suggestion to satisfy and retain the customers.

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INTRODUCTION

Banking sector plays an active role in the economic development of a country. Their ability to

make a positive contribution in igniting the process of growth depends to a great extent on the

way the banking policies are pursued and the banking structure is evolved. It is therefore no

exaggeration to say that an effective efficient and disciplined banking system greatly helps the

growth of economic development. It functions as a catalytic agent in bringing about economical

industrial and agricultural growth and prosperity of the country.In kerala the cash deposit

machine was first indroduced by !BI at the Kanhangad branch on march "#$%..

Bankn! n In"a in the modern sense originated in the last decades of the $&th century. 'mong

the first banks were the Bank of (industan which was established in $))# and li*uidated in

$&"+,-" and the /eneral Bank of India established $)&0 but failed in $)+$.

The largest bank and the oldest still in existence is the !tate Bank of India. It originated as

the Bank of 1alcutta in 2une $. In $+ it was renamed as the Bank of Bengal. This was one

of the three banks funded by a presidency government the other two were the Bank of

Bombay and the Bank of 3adras. The three banks were merged in $+"$ to form the Imperial

Bank of India which upon India4s independence became the !tate Bank of India in $+55. 6or

many years the presidency banks had acted as *uasi,central banks as did their successors untilthe 7eserve Bank of India was established in $+-5 under the 7eserve Bank of India 'ct $+-%.

In $+0# the !tate Banks of India was given control of eight state,associated banks under the

!tate Bank of India 8!ubsidiary Banks9 'ct $+5+. These are now called its associate banks. In

$+0+ the Indian government nationalised $% ma:or private banks. In $+ 0 more private banks

were nationali;ed. These nationalised banks are the ma:ority of lenders in the Indian economy.

They dominate the banking sector because of their large si;e and widespread networks.

The Indian banking sector is broadly classified into scheduled banks and non,scheduled banks.

The scheduled banks are those which are included under the "nd !chedule of the 7eserve Bank

of India 'ct $+-%. The scheduled banks are further classified into< nationalised banks !tate

Bank of India and its associates 7egional 7ural Banks 877Bs9 foreign banks and other Indian



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private sector banks.=0> The term commercial banks refers to both scheduled and non,scheduled

commercial banks which are regulated under the Banking 7egulation 'ct $+%+.

Banking was one of the more preferred lines of business in Kerala , as well as in the princel

states of Travancore and 1ochin and the 3alabar ?rovince of British India that originally

comprised it , in the twentieth century. ' list of some of the Banks that operated in that territory

during that period are given below. Due to various reasons most of them were either closed or

amalgamated with other banks leaving only a handful now.

T#$ K$ra%a bank s$ct&r &'$rat$s t#r$$ t('$s &) banks

Nat&na%*$" banks< The list of nationali;ed banks includes the !tate Bank /roup Bank of

India 1entral Bank 1anara Bank and 1orporation Bank.

Pr+at$ banks< 3a:or private players in the Kerala bank industry are I1I1I bank (D61 'xis

bank and The Karur @ysya Bank.

F&r$!n banks< !everal foreign,based banks also play key role in Kerala such as 1itibank

(!B1 and 'B3 '37A

Trends in services offered by banks

Traditionally retail banks have used branches 'T3 call centers mobile and Internet to interact

with their customers though newer direct channels such as social media have emerged recently.

Branches have always played an important role and remain a key banking channel. (owever the

changing needs and preferences of customers coupled with growing technological innovations

has led to the increased popularity and adoption of direct channels over the last decade. Because

of their growing popularity direct channels are expected to hold the highest share of global

banking transaction volume by "#$" though traditional channels are still expected to command

the highest share of the sales volume$ . 's branch networks typically constitute around )5 of a

banks’ total distribution costs the key challenge banks face today is to :ustify the high branch,


https://en.wikipedia.org/wiki/Banking_in_India#cite_note-BF:Banks-6https://en.wikipedia.org/wiki/Banking_in_India#cite_note-BF:Banks-6https://en.wikipedia.org/wiki/Banking_in_India#cite_note-BF:Banks-6


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operating costs at a time of lower branch,driven revenue growth. The current economic scenario

gives banks an opportunity to identify channels that are most important to their customers and

provide a positive experience across them. Banks are shifting their customers from high,cost to

lower,cost channels thus reducing their total cost,to,serve. There is a growing trend to achieve a

seamless multi,channel integration by banks who want to make their customer interactions

channel,agnostic. This will help banks leverage their distribution networks by offering the right

products to the right customer segment through a desired channel resulting in overall cost

savings and an enhanced customer experience. Banks also face highly saturated markets where

product and price no longer remain the key differentiators thus pushing up retention costs.

Innovations around better and faster delivery of the right products to a customer will help banks

provide a differentiated customer experience thus supporting better customer retention. /lobal

IT spending on retail banking channels remained stagnant in "##+ but is expected to grow to

C%5.&bn at a compound annual growth rate of %." through "#$"" . Key trends are emerging

which are expected to drive future growth and transform the key customer touch points for

delivering better and more costeffective client service. Banks globally are investing in enterprise

mobile financial service solutions to deliver more mobile,based banking services and reduce the

overall cost of operations. 's the adoption rate of online banking continues to increase globally

banks are expected to increase their online marketing presence by leveraging technologies such

as eb ".# and social networks which have evolved as an integral part of the banking channel

mix. Banks are also increasingly spending on customer,centric analytical tools to better

understand client buying and channelusage patterns which can help build and improve customer

relationships.

Customer attitude towards banking services in India

Eiberalisation trends in the emerging economies have led the banking sector devisemarketing strategies to accommodate the changing needs of their customers’ 8Krishnan

et al. $+++9. The Indian industry has witnessed sweeping reforms in the banking and

financial sector in the last decade. The first banks in India were established by the British

Fast India 1ompany in the first half of the $+th century G the Bank of Bengal in $+ the

Bank of Bombay in $&%# and the Bank of 3adras in $&%-. Eater these banks were



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amalgamated to a new bank called Imperial Bank which was renamed as the !tate Bank

of India in $+55. In $+0+ $% ma:or banks were nationalised and in $+ six ma:or

private sector banks were taken over by the government 8Indiaonline "##+9. In recent

years the 1entral Bank of India 87BI9 initiated a number of liberalisation measures to

encourage commercial banks to move towards market driven system 8Kumbhakar and

!arkar "##-9. The banking sector reforms have focused on customer,satisfaction

asset,liability management investments training of human resource and use of

technology to make banking convenient 8Bedi "#$#9. These reforms had a positive

impact on the banking sector. The highly regulated market pre,deregulation had stifled

the growth of the public sector banks and they had become inefficient and were losing

productivity 8Kumar and /ulati "##+9. The earlier banking system crippled the

operations of banking sector and made it incompetent 83ohan "##)9. Kumar and /ulati

8"##+9 state< HIn order to impart more vitality and autonomy to banks in their operations

the policy makers successfully adopted the route of partial privatisation of public sector

banks interest rate deregulation relaxing entry norms for domestic private and foreign

banks and removal of financial repression’ through reduction in statutory

pre,emptionsJ. There have been consistent efforts by the government to improve the

banking structure and allow more autonomy to the public sector banks 87oland "##&9.

Eiberalisation policies pursued by the government have made it easy for multinational

banks to make investments into Indian banking industry. The multinational banks with

their advanced technologies and superior service portfolios have revolutionarised the

banking services. The Indian banks with their inefficient services are faced with the

challenge to improve their facilities. Indian Banking !ector 6orecast 8"##+9 posits that

the Indian banking industry is well poised as compared to their banking industries in the

western countries which have been affected by the financial crisis. The strong economic

growth low defaulter ratio absence of complex financial products regular intervention

by central bank and proactive ad:ustment of monetary policy provided the right mix for

investments in Indian banking sector. The multinational banks are eyeing the Indian

banking sector as it promises steady growth and opportunity to serve Indian customers

with better productservice portfolios. The predominant factors which have been

responsible for steady growth are strong economic cycle. The foreign and private banks



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have grown at 5# while public sector banks have improved their growth rate to $5.

The share of the private sector banks has increased by -5 and that of foreign banks

increased to "# of total sector assets 83cKinsey "#$#9.

Increasing competition and variety in banking services have acted as a catalyst for the

growing inclination of Indian customers towards multinational banks 83oody’s Banking

!ector 7eport "##& Business ire "##+9. The key focus of banking sector reforms was

on technology upgradation and improvement of human resource 8Bhaumik and

3ukher:ee "##$9. The competition presented by private and multinational banks forced

the public sector banks to adopt aggressive strategies increase their presence in rural

India and expand their customer base 8!ureshchandar et al. "##- 7eddy "##) Bedi

"#$#9. They are focusing on innovative marketing strategies like cross selling packaged

selling of retail products and technology based banking 8Business ire "##+

3cKinsey "#$#9.

Banks that provide good *uality service to their customers definitely would be able to

increase their profits and revenues by being paid in terms of customer retention 8Bennett

and (iggins $+&&9 and loyalty. The difference in the perception of the customer related

to the *uality of the services provided by different banks is dependent upon customers’

perceptual construct and their earlier experiences with the banks. To be able to serve

customers it becomes imperative for banks to combine promptness with convenience

and mixing technology with human element. The research adapted the !F7@LM'E scale

to understand the customers’ perceptions and attitude regarding service *uality of

multinational banks in India. The results would enable multinational banks to define their

strategies for capturing Indian market according to customers’ perspective.

Gr$$n C#ann$% C&,nt$r

The /reen 1hannel 1ounter is functioning in most of the banks in India. The 1ustomer has to

swipe their 'T3 card for withdrawal or has to deposit the money in the counter. The customer

has to select the transaction type and enter their pin number to complete the transaction within

time. The information will be displayed to the counter clerk who in turn would issue a slip to the

customer after completion of the transaction. This new system would enable the customer to



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complete the transactions without paper work. Fach customer would be allowed to either deposit

or withdraw amount up to 7s.%# ### per transaction.

Cas# D$'&st Mac#n$

It is a "%N) self,service banking terminal which accepts cash deposits using 'T3. 1ustomer’s

account will be instantly credited with the cash deposited. ' receipt will be issued to you for each

successful deposit. Deposit service is available "% hours a day ) days a week. 6or the

convenience of the customers the customers can deposit cash without the need for a card or

passbook. They can simply touch the screen and follow the step by step guide. This machine

accepts cash deposits only and does not dispense cash. Anly Indian currency is accepted. The

accepted denominations are 5rs $#rs "#rs 5#rs $##rs 5##rs and $###rs. The fake currencies

are also detected. 7s %++++ are the cash limit that can be withdrawn at a time. It is set so to avoid

income tax issues. The bundle of notes can comprise of mixed denominations place in any order.

The respective account is credited immediately after detecting the fake currencies. Ane possible

reason could be your notes are crumpled soiled defaced or folded. ?lease ensure that your notes

are properly straightened i.e. without folds dogged,ears etc before depositing.



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LITERATURE REIE!

alfried 8"###9 defined service as a set of characteristics that meet the clients4 needs

strengthen the links between the organi;ation and them and enhance the clients4 value as well

's per !ection 58b9 of the Banking 7egulation 'ct $+%+ ObankingO means the accepting for

the purpose of lending or investment of deposits of money from the public repayable on

demand or otherwise and withdraw able by che*ue draft order or otherwise.

Kolter and 'rmstrong 8$+++9 defended the customer satisfaction as the customer4s. ?erception

that compare their pre,purchase expectations with post purchase perception

Dr. 'rvind '. Dhond 8"#$-9 conducted study tiled H'n empirical study on /reen 1hannel

1ounter in BanksJ. The researcher identified some problem faced by the customers and banks

he given solution that the green channel counter helps to solve the problems. The ob:ectives are

to provide insight into /reen Banking initiative of !tate Bank of India by introducing /reen

1hannel 1ounter to determine the level of awareness about /reen Banking and /reen 1hannel

1ounter among the public in general !BI customers and to draw conclusions based on the

primary data survey results. (e concludes that the future banks will be customer friendly

banking approach and the customers will welcome these types of green innovations in banking

sector. There was no study conducted in !BI /reen 1hannel 1ounter except the above study.

Based on the above study and related publications the researcher designed the following

ob:ectives.

6rascati 3anual defiant Technological innovations comprise new products and processes and

significant technological changes of products and processes. 'n innovation has been

implemented if it has been introduced on the market 8product innovation

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Kasper et al state< HLuality is an ambiguous term. An the one hand everyone knows 8or thinks

they know9 what *uality is. An the other hand formulating a comprehensive and uniform

definition is a big G if not insurmountable G problemJ

!cheduled BankJ is defined by !ection 58$9 8m9 of the Banking 1ompanies 'ct $+%+ as Ha bank

for the time being included in the !econd !chedule to the 7eserve Bank of India 'ct $+-%J

Ponscheduled bank in India means a banking company as defined in clause 8c9 of section 5 of

the Banking 7egulation 'ct$+%+ 8$# of $+%+9 which is not a scheduled bankO

Dhira: @asant Kapare etc9 conducted study tiled , 'utomatic 1ash Deposite 3achine ith

1urrency Detection Msing 6luorescent 'nd M@ Eight8"#$-9Department of FQT1 Fngineering

Imperial 1ollege of engineering ?une India 1ash Deposit 3achines 81D39 has altered the

relationship between banks and their depositors as well as the competitive relationships among

banks. In this paper I survey the literature to describe the ways have influenced these aspects of

banking markets. The pro:ect is designed to provide fully automatic cash deposit machine. It is

combination of Fmbedded DI? Q 'utomation. In 3at lab every data image of note is compared

with ideal stored image of every appropriate type of note. Fvery note is passed through M@ light

to detect the originality of note which conse*uently results in acceptance and re:ection of faulty

notes.

'rpita Khare8"#$$9 9 conducted study tiled 1ustomers’ perception and attitude towards service

*uality in multinational banks in India

STATEMENT OF THE PROBLEM

' !tudy on 'ttitude and usage of customers towards 1ash Depositing machine at Kollam

District.

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OB-ECTI.ES OF THE STUDY

To find out the attitude of customer’s towards 1ash Depositing 3achine

To find out customer’s satisfaction towards 1ash Depositing 3achine

To know the factors influencing the use of 1D3

To find out the problems usually faced by the customers while using 1D3 in a bank

M$t#&"&%&!( an" T&&%s ,s$"

The study is based on primary data. !tructured *uestionnaire was used to collect data from

-## customers those who are using /reen 1hannel 1ounter in various banks in Kollam.

1onvenient sampling method was used to collect the data from the respondents.conclusive

case study method is used. Eikert point scale techni*ue was used to measure the customers’

satisfaction. The factors influence 1ustomer satisfaction were identified and mean score were

calculated to find out the factor which highly influence the satisfaction.

C&n+$n$nc$ sa/'%n!

1onvenience sampling is a non,probability sampling techni*ue where sub:ects are selected

because of their convenient accessibility and proximity to the researcher.The sub:ects are

selected :ust because they are easiest to recruit for the study and the researcher did not consider

selecting sub:ects that are representative of the entire population.In all forms of research it

would be ideal to test the entire population but in most cases the population is :ust too large that

it is impossible to include every individual. This is the reason why most researchers rely on

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sampling techni*ues like convenience sampling the most common of all sampling techni*ues.

3any researchers prefer this sampling techni*ue because it is fast inexpensive easy and

the sub:ects are readily available.

D'T' 'P'ER!I! 'PD 6IPDIP/!

The ob:ective of the study is to identify and analyse the 1ustomer satisfaction in 1ash

Deposit 3achine services in Kollamthe impact of technology on banking operations and

comparative analysis between ?ublic and ?rivate sector banks.

!urvey isconducted by C#an", sa0$$+an1Aks#a(2P1A/a%$s# C#an"ran2S1Sa)ar A%

S38TK3 institute of managementKollam9 under the guidance of Dr2Sant#&s# .2A 8'ssociate?rofessor TK3 Institute of managementkerala university9. ?lease be assured that your responses

will be strictly confidential. ?lease put a 4 5 mark to indicate your preference



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STUDY ON ATTITUDE AND USAGE OF CUSTOMERS TOWARDS CASH

DEPOSITING MACHINE IN KOLLAM

N#$ #% Re&'#()e(*& T#*a+

Ge()e,Ma+e 32

5"Fe-a+e 2

Age

.e+#/ 2" 11

5"2"03" 3"

A#e 4" !

E)a*#(

U()e, G,a)a*e 11

5"G,a)a*e 17

P#&*0G,a)a*e !

O*e,& 3

O'a*#(

.&(e&& 16

5"

P,#%e&&#( 6

G#*$ Se*#, E-'+#ee 5

P*$ Se*#, E-'+#ee !

O*e,& 4

I(#-e

Le&& *a( 5"8""" 45

5"5"8""" 9 18""8""" 3

18""8""" 9 28""""" 1

M#,e *a( 28""8""" 1



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FINDINGS

1. Gender

Ma+e

Fe-a+e

2.Age



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1 0 25

26 0 3"

31 9 4"41 9 5"

51 9 6"

A#e 6"

3.Educational Qualifcation

U()e, G,a)a*e

G,a)a*e

P#&*0G,a)a*e

O*e,&



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4.Marital Status

Ma,,e)

U( -a,,e)

5.Proession

G#* E-'+#ee

P,a*e E-'+#ee

.&(e&&

Se+% E-'+#ee

S*)e(*

H#&e W%e



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6.Monthl !nco"e

U'*# 1"8"""

1"8"""0 158"""

158""102"8"""

2"8""10258"""

258""103"8"""

A#e 3"8"""

#.Status o usage

Le&& *a( 1 ea,

1 9 5 ea,&

5 9 1" ea,&

1" 9 15 ea&

A#e 15 ea,&



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$. %o ou &no' a(out )%M*cash de+osit "achine, -

Ye& N#

"

5

1"

15

2"

25

3"35

4"

45

5"

.!s it eas to use-

Ye& N#

"

5

1"

15

2"

25

3"

35

4"



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672Ar$ (&, ab%$ t& "$'&st cas# 8t# CDM4cas# "$'&st /ac#n$5 9

Le&& *6a( 5 -(*e& 501" -(*e& M#,e *6a( 1" -(*e&

"

5

1"

15

2"

25

3"

35

11.Are ou satisfed 'ith the s+eed -

Ye& N#

"

5

1"

15

2"

25

3"

35

4"

45



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12.%o ou 'ant the "enu in our language -

Ye& N#

"

5

1"

15

2"

25

3"

35

4"

45

13./o' "uch ti"e it 'ill ta&e to re0ect in our accountater de+ositing in )%M*is it real ti"e,

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Le&& *a( 5 -(*e& 501" -(*e& M#,e *a( 1" -(*e&

"

1"

2"

3"

4"

5"

6"

14.!s good notes ou are +utting in get reected -

Ye& N#

"

5

1"

15

2"

25

3"

35

4"

45

15.%oes the "achine identifes counter eet notes-

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Ye& N#

"

5

1"

15

2"

25

3"

35

4"

45

5"

16.%oes our note get stuc&s in the "achine oten-

Ye& N#"

1"

2"

3"

4"

5"

6"



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1#.%o ou 'ant to associate AM 'ith the )%M -

Ye& N#

"5

1"

15

2"

25

3"

35

4"

45

62D& (&, t#nk t s r$%ab%$ t& s$n" /&n$( )&r $/$r!$nc( 'r&'&s$s9

Ye& N#

"

1"

2"

3"

4"

5"

6"



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1.hich categor o the (an&s do ou consider as "ost

technologicall adanced-

P+ &e*#, a(: P,a*e &e*#, a(:

"

5

1"

15

2"

25

3"

35

4"

2./o' a"iliar are ou 'ith co"+uter usage leel o our(an&-

N # : (

# / + e ) g e # %

4 # -

' * e ,

A e , a g e : (

# / + e ) g e

E ; ' e , *

"246

1"1214161



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21.hich actor +ro"otes ou to use the ne' cash de+osit

"achine-

1 2 3 4

"

5

1"

15

2"

22.hich attri(ute o the (an& do ou alue the "ost-


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23. /o' satisfed are ou 'ith or&ing through green

channels-

H g + 7

S a * & = e )

S a * & = e )

N

e * , a +

D & & a

* & = e )

H g + 7 D & & a

* & = e )

"

5

1"

15

2"

25

3"

35

24./o' "uch "one do ou usuall de+osit-

6

U ' * #

1 " 8 " " "

1 " 8 " " "

0 1 5 8 " " "

1 5 8 " " 1

0 2 " 8 " " "

2 " 8 " " 1

0 2 5 8 " " "

2 5 8 " " 1

0 3 " 8 " " "

3 " 8 " " 1

9 3 5 8 " " "

"

2

4

6

1"

12

14

16



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25. /o' re7uentl do ou use the ollo'ing (an&ing

serices +er "onth-

N+ 1 *# 3 3 *# *# 12 Oe, 12

"

2

4

6

1"

12

14

16

1



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CONCLUSION AND SUGGESTIONS

3a:ority of the respondents in the banks satisfied with the cash depositing machine. (ence it is

suggested the banks to developed and improvise the proper mechanism to resolve the grievance

settlement as it leads to customer comfort and satisfaction. 1omfort and convenience is very

important in any business.3a:ority of the customers are dissatisfied with the sufficient number of

1D3s. 1omplaint book is most important at the 1D3s it is found respondents stated that no

compliant book is available at 'T3 counter hence it is suggested the banks to put the complaint

book in 'T3 counter then the customers utili;e and make the complaint and also suggestions to

the banks for effective functioning. The most important issue the bank administration should

concentrate on proper mechanism on /rievances settlement besides that customers’ data isincreasing day by day correspondingly the number of 1D3s should be increased so it leads to

customers’ satisfaction.

REFERENCES



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$. Bishnoi !unita 8"#$-9 H'n Fmpirical !tudy of 1ustomers4 ?erception 7egarding 'utomatedTeller 3achine in Delhi and P17J Integral 7eview, ' 2ournal of 3anagement @ol.0 Po.$ pp%), 0#

". 1hattopadhyay ?. and !aralelimath !. 8"#$"9 Hcustomer preferences towards use of 1D3services in pune cityJ international :ournal of marketing financial services and managementresearch @ol.$ issue,) 2uly "#$" 8I!!P< "")) -0""9

-. Kumbhar @i:ay 3 8"#$$9 H1ustomer satisfaction in 1D3 service< an empirical evidencesfrom public and private sector banks in IndiaJ 3anagement research practice @ol. - issue," pp"%,-5.

%. Kaur 3anpreet 8"#$-9 H1ustomer !atisfaction in 1D3 !ervice< 'n Fmpirical !tudy of Banksin 1handigarhJ International 2ournal of 7esearch in 1ommerce Q 3anagement @ol. % Po. 0.

5. Kumar 2ayant HF,Banking< !ome Fconomic ImplicationsJ The I16'I Mniversity @ol. $#Issue $ pp. %",%-

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A STUDY ON CUSTOMER new.docx