MBA LEADERSHIP PRACTICE 31132MM
PRACTICE PROJECT HRM11123
Dissertation
SESSION 2018/19
CRITICAL INVESTIGATION ON THE USAGE OF ONLINE BANKING IN INDIA AMONG GENERATION X.
JESHREENA KADAVATH PALAKKAL
40337344
Supervisor: Paul Langford
Declaration
I declare that the work undertaken for the Dissertation has been undertaken by myself and the final Dissertation produced by me. The work has not been submitted in part or in whole in regard to any other academic qualification.
Title of Dissertation:
CRITICAL INVESTIGATION ON THE USAGE OF ONLINE BANKING IN INDIA AMONG GENERATION X.
Name (Print): Jeshreena kadavath palakkal
Signature:_________________________________________________Date:19/08/2019
Acknowledgement
I owe my deepest gratitude to my supervisor Mr Paul Langford, who really helped me through my dessertation from start till the End.
Iam really thankful to him as he provided me the best guidance and support that I could ever get from a supervisor. It would have nearly impossible without his help and support.
I would also like to thank my husband who helped me and supported me through the entire time. Last but not least I thank all of the people who helped me with the survey or who gave me support.A big thankyou to all of you.
CRITICAL INVESTIGATION ON THE USAGE OF ONLINE BANKING IN INDIA AMONG GENERATION X.
Abstract
With the introduction of new technology, a number of sectors have grown up with a greater manner.
It means that there is increasingcompetition in current business organization within which businesses have faced difficulties to sustain in the competitive business environment.
Internet and online business is one of the essential achievements of this technology that supported business organizations to achieve their targets in the simplest manner.
However, this study has focused on the banking system that has been changed after the introduction of new technology.
It means that online facilities help banks to assess the creditability of consumers in term to repayment of loan amount. It supports the consumers to make loans easily without performing high documentation.
The aim of the research was to analyze the adaptation of online banking in India among “Generation X”.
In concern of this, the researcher has taken information from several studies that have focused on the banking client’s aged between from 40 to 60 years old as generation X people.
In addition to this, the researcher has also developed a survey as a primary method to collect data about the adoption level of online banking among X generation people in India.
This was achieved by primary method in order to collect the relevant information. In addition to this, the researcher has used survey method by targeting 100 respondents i.e. Gen X people.
The study presents findings that online banking is in current trend because banks are providing an online product like internet banking, online checking of e-statement, etc.
as well as the various mobile-based application is introducing by banking firms for easy transfer of money.
The originality of this work is based on the UTAUT (Unified theory of acceptance and use of technology) model that purpose is to explain user intensions to use an information system and subsequent usage behavior.
The implications of these results will be supportive for students, government, banking organizations to assume an imperative job for utilization of new advances and propensity.
This research study acknowledges large population of generation X which could contribute towards achieving of more depth knowledge and understanding about the research result and outcome.
The frequent growth of technology put pressure over different sector to incorporate it in order to sustain for longer duration.
In respect to update of technology, banking sector is not untouched as the major transformation has been achieved in this industry only.
For example, net banking services and easily money transfer process etc. are some of the common example of the booming online services (Kumar Sharma & Madhumohan Govindaluri, 2014).
The banking industry has grown rapidly in the last two decade due to adopting new technology. The main purpose of this dissertation is to critically analyze the usage of online banking among the generation X in the context of India.
Currently, in India, online banking is using by the shopper in order to make the financial transaction including exchange, transfer of capital etc.
At the present time, the banking industry of India is getting the advancement of data innovation that directly and indirectly improving the progress of banking administrations through adopting innovative techniques (Imran et al., 2014).
Internet banking is considered as significant practices in context to both for clients and banks because it demonstrates a higher level of satisfaction to customer due to increasingly positive influences in the form of quick and safety transaction of money.
The banks are also able to bring innovation in their services with the update of technology (Agolla et al., 2018).
At the same time, Banks must take guarantee of correct treatment of web-based financial hazard before experiencing any change to consider it as one critical advance.
It is exceptionally troublesome both for clients and banks, in any case, to decide the superlative way in order to deal with the utilization of online banking (Maditinos et al., 2013).
In the banking sector, a specific hazard emerges when a new channel is incorporated with existing channels.
The Indian people are moving towards Internet banking in India gradually yet consistently. But they are highly worried about the protection and security of their money in web-based banking because banking trust assumes an essential characteristic on the Internet.
In concern to online banking, it becomes hard for Gen X to break down and examine trust in regard to electronic business.
However, it can be said that trust is an important factor that impacts online banking in India for gaining maximum achievement and this usually occur because of rigidness from the Gen X people side.
As per the research study of Jamison et al. (2013), it is identified that several US-based firms have identified that trust in online banking has been increased.
The principal determinants of trust in electronic business are discovered and distinguished into two primary classifications such as protection and security.
In concern of this, the security has been considered as the major factor behind the Gen X people hesitate to adopt or incorporate it in their lives.
It can be said that stresses over security are not new for an organization because the banking firm includes accumulated data with a considerable length of time.
As a result of new data advancements, security issues frequently come about in any case (Emmenegger, 2014).
For example: – JP Morgan is an USA based bank which also faced the problem of data breaching and hacking within which people trust over banking get affected.
This research is developed for the purpose of concentrating on online banking usages by generation X in India. Currently, several studies have focused on the same concern that has been selected the client’s age between from 39 to 59 as X age clients(Lissitsa&Kol, 2016).
In addition, these studies have also used hypothetical models related to human science and brain science to understand this factor effectively including the individual behavior and attitude towards the work.
In addition, it is also identified that the UTAUT model also proves to be useful in term to use the information system properly without include right set of behaviors.
Similarly, UTAUT2 includes three new key factors as ideas assuming an imperative job for utilization of new advances such as value/esteem (PV), gluttonous inspiration (HM), and propensity (H) (Mocetti, Pagnini and Sette, 2017).
The main aim of this dissertation is to analyze the acceptance of online banking by Indian generation X. Another aim of this study is to identify the comprehension of the acknowledgment of online banking among generation X Indians by using the UTAUT2 method. In order to achieve these objectives, the below objectives will be followed by the researcher:
- To critically evaluate the literature of online banking in India.
- To investigate how generation X customers can perceive electronic banking services in the context of India.
- To investigate what are the acceptance factors of Indian customers by using UTAT2 method.
- To critically study about the current method that banks used in online banking in India for attracting Gen X
- To provide a recommendation for improving the acceptance and usage of online banking in India.
The above objectives will support the aim and process of the research. In order to accomplish the proposed aims, the research work is organized. The writing on the literature review of the research is based on the three principal areas of the work that are: Generation X, online banking in India, and UTAUT method. This paper proceeds with the improvement research plan and research approach to achieve research outcomes effectively. Further improvement should be possible in the following phase of the undertaking, for example, the system and results and completing with the exchange ends and constraints of the research.
The rationale for the choice of Research Questions
For successfully achieve the research aims and objectives, it is necessary for the researcher that need to focus on the effective solutions of the research questions.
In concern of this, the researcher will identify the solutions of usages of online banking among generation X banking clients. The overall study will answer the main research question that “Is generation X face issues and challenges in the usage of the online banking system in India”.
There are some other sub-questions that will answer this question in different parts:
Q1: What is online banking and contrast on the online banking in India?
Q 2: Explain how generation X customers can perceive electronic banking services in the context of India?
Q 3: What are the acceptance factors of Indian customers by using UTAT2 method?
Q 4: What are the current methods that Indian online banking used for Gen X?
Q 5: What are the ways to improve the acceptance and usage of online banking in India?
This dissertation study includes several tools and techniques as research methods and approaches to achieve research outcomes.
This research is based on the positivism philosophy because the researcher will develop the research ideas from real-world perspectives as well as it assumes and assesses the reality.
Similarly, the researcher also tests the outcomes of the research with measurement tools so that the deductive approach will be used. In addition, a survey strategy will be used by the researcher to collect the data related to the research topic by designing a questionnaire.
The quantitative research design is used for this research to achieve outcomes. Similarly, the data are analyzed with statistical data analysis methods to represent the information in an effective manner through a pilot study tool.
The complete research structure is outlined in this section that demonstrates the layout of the research in an effective and systematic manner. The below points are explaining the main chapters of this dissertation study:
Introduction
This is the first chapter of the dissertation that is essential to explain the importance and relevance of the chosen research topic. In concern to this, the researcher conducts an in-depth study of and different aspects of the research topic like that the background of the research, aims, and objectives of research study, research questions, and significance of the study as well as the chapter analysis too. In this part, the scope of the research topic can be identified like this research is demonstrating the usage of online banking in India among the generation X. However, it can be said that the importance and relevance of the selected topic are considered in this chapter by setting out the aims of the study and research questions that fulfill these aims.
Literature Review
A literature review is the second part of this research, where the critical review is provided by the researcher. In this, the researcher achieves the research objectives by using existing literature and articles related to the research topic. In concern to this research, the researcher focused on the critical analysis of the usage of online banking in India among the generation X using different data sources. In this, blogs, articles, journals, etc are used by the researcher to develop a theoretical understanding of the research topic.
Research Methods
In this chapter, the researcher discusses the research methodology that includes different kinds of tools and techniques such as research methods, approaches, designs, and data sources as per the requirement of the research outcomes. It provides the facility for determining the research approach and strategy that need to be adopted for achieving research objectives in an effective manner. This part is also supportive of the researcher to conduct the research in an ethical way by the use of different ethical considerations (Deb & Lomo-David, 2014). In addition, the researcher also focuses on the justification of research study through the use of reliable data and information through this chapter. However, it can be said that this chapter sets out the detailed methods, techniques, and data sources for the research to remove the issues related to reliability and validity, or ethics.
Data Analysis
Data analysis is also considered an important chapter in a research study that helps the researcher to analyze the data that are collected from various important sources to justify the research study. In this chapter, the researcher determines the findings of the usages of online banking in India in concern to generation X. The analysis of data also supports the researcher to summaries the data in an understandable manner through the use of the effective chart, graphs, and table. Similarly, this chapter also provides the facility of reaching out to the desired objectives with effective results of the research topic.
Conclusions, Limitations, and Recommendations
In this chapter of the dissertation, the researcher provides a proper conclusion of overall research on the basis of findings from collected data. In addition to this, the researcher also identifies the limitation of the research that is identified from the findings and outcomes of the research. If the identified limitations were not included in the research then it can be a more effective dissertation. In concern to overcome these limitations, the researcher also provides some important recommendation and suggestions that can be applied to improve the usefulness of the potential researches (Goyal et al., 2013). This chapter provides some recommendations regarding the challenges or problems.
To critically evaluate the literature of online banking in India
Technology has given a boom to online services and transactions that take place in the organization and banking sector. This has made the banking sector to make the services to be provided to the customers online for their convenience and making the operation to be done at a global level. The change takes place in the banking sector in a way to shift towards online platform need to implement by the local banks of India. So, that it can meet with the needs of the customers. The online mode of services has made the customers to prefer the banking services as with this platform, they can perform the quick services at any time and place. Thus the growing demand of online services put pressure on banks to move towards this platform as this becomes their source of sustainability (Yaghoubi, N. M., & Bahmani, E. (2010)) (Unar et al. (2014).
The advancement in technology has impacted the banking sector made the changes in the demands and preferences of the customers.
This has made the banking sector to bring its services to the digital platform so that it can make the customers to be retained in the bankRoztocki & Weistroffer (2015) The growth of the banking sector can take place with the retention of customers as well as with the use of technology.
The increment in technology has made the Indian banking sector to bring its business or transactions to be made online so that it could satisfy the customers.
The development of technology has made the banking sector to face huge competition in the market.
The innovation with the technology has made the customers to change their preferences and opinions for availing the services (Marous, 2013).
Customers are more in preference for availing the services that are available to them online so that they can access it at any place.
The satisfaction provided to the customers has been the priority for the customers so that it could help in meeting with the goals of objectives.
This makes the banking sector to provide the quality products and services to the customers so that it can meet with the satisfaction level of the customers.
In addition to this Paul et al. (2016), said the satisfaction level of the customers is considered as their loyalty, retention, and competencies which make the banks to evaluate its goals in terms of market share, profits, rate of return and investment.
In other words, it can be said that the satisfaction level of the customers makes the banks to decide its objectives and goals.
This has given the formation of E-banking in India so that gratification could be provided to the customers.
This will help the clients or customers to line their accounts to online so that they can attain the benefit of online services at all levels.
The innovation in the technology has made the banking sector to face wit number of challenges and made it to develop the strategies which could provide satisfaction to the customers.
The customers get affected by the services which they avail from the E-banking makes them to change their preferences.
The things and services that attract the customers are easy to access, all-day services, transfer of money, mobile banking, etc.
This makes the customers to grab the new opportunity and find the best ways to invest their money in different sources.
In contrast to this Agolla et al., (2018) said the electronic banking has made the customers to suffer from various things that they need to consider while opting for online banking.
This has reduced their practice of online services in the banking sector.
Moreover, it is founded by Gundlach & Lehrbass (2013) that the risks associated with the customers while making their transaction online are their security and privacy risks.
This has reduced the confidence of the customers and made them to avail the offline services from banks. Indian banking sector needs to take several measures which could help in motivating the customers and make them to avail the online services.
The motive of the banking sectors is to attain high profits in the market so that it could meet with the needs of the customers.
This makes it to meet with competition in the market and make the banking sector to avail the services that are confidential and privacy protected in the banks.
The major concern that has been identified is the security risks that make the generation to shift their preferences from one bank to another.
This makes the banking sector to focus on improving the security to the customers regarding the personal information and transactions that are made in the banks via online.
In 2006, it was recorded that 43% of the people have shifted to retail banking transaction due to high-security risks that are found by them.
This has made a reduction in the number of customers those who avail the E-banking services due to uncertainties and security risks they face in the online transactions.
In addition to this, the security risks and privacy risks have diminished the value of E-banking and made the customers to avail the retail banking services.
Customers make sure that their personal information is not leaked and make their option accordingly.
This makes the banking sector in India to take the consumer demands and services into consideration so that it could make the adoption of measures for solving such issues and problems.
Due to increasing competition in the market, it is required by the banking sector to make the services to be availed online to the customers with the adoption of new technology.
This will help in meeting with the competition with the other banks and made the easy flow of information from one bank to another. This will make them to strengthen its image in the market and make the bans to have a large number of customers (Salim, 2018).
This makes the customers to access through multiple channels so that they can avail its services with ease. Numerous channels that are used by the banks to provide services to the customers are ATMs, mobile banking, local branches, and video banking, etc.
This makes it to have a large number of customers and make the banking sector to grow its business.
On the basis of online banking, Chavan (2013) found that the online banking is in the current trend in India as people more rely on the online platform for making transactions and payment to another people.
Moreover, the conveniences are another factor within which people are more attracted to the online banking process.
At the same time, the government policies are yet effective factor that pushes the people of India to move towards the online process for transferring the money and performing a different transaction.
Furthermore, online banking is gaining much popularity in the current environment but it is already developed in the 80s with the electronic device like keyboard, mouse, and computer.
The online banking is started as a videotext system and then it evolves with greater extent.
Likewise, nowadays, there are a different product and service get started such as net-banking, varied application for transferring money and making a payment to peer or clients.
Besides that, cards also used to make a payment which makes shopping of people easy. Thus, such an evolution of online banking in India create a safe and secure banking process through which people easily perform their several tasks without failing in it.
This way online banking is in the progression stage in India and become an emerging technology for the banking sector.
Investigate how X generation customer perceive electronic banking service in India
In the views of Islam & Das (2013), generation X is considered as a demographic population which comes under the category of the1960s to 1990s. Basically, the generation X people is quite familiar with the concept of electronic banking as online banking origin in the 80s.
So, it can be stated that this terminology is not new to them. So the people perception is quite positive in term to easy and convenient to transit the capital.
But still, when it comes to performing a big transaction, the Indian people hesitate especially those who belong to the age group of 40 to 60.
This is because of the lack of trust factor towards the online services security system.
This makes the consumer feel insecure in term to make a transaction. Likewise, there is various online payment processes are developed in which people perceived high risk due to this system is attached to the internet.
The cases of fraud and hacking of personal information start with the internet. So people of 80s makes less trust over online banking as compared to the Y generation.
In a similar manner, George & Kumar (2014), stated that the generation X people also have a habit in which their lives are centered on being paid in cash and conducting their own purchasing with cash only.
These types of people make a perception that the cash is safer when it is in capital form because traditional business houses still don’t accept the virtual cash.
So they find the cash transaction safer and useful when it comes to making a transaction in India.
Moreover, it is also found that less understanding about the internet concept and online process among the people of generation X also make them challenges to operate and deal with online banking.
This area also becomes a reason why people do not use online banking.
According to Adil et al. (2013), the less transparency level of the banking sector also considered as a factor due to which people set perception that counties like India having every transaction be tracked and could invite trouble via more scrutiny or higher taxes.
Moreover, it is perceived by the people that cash does not leave a digital footprint which is why some consumer prefers the cash transaction.
In favor to this study, George & Kumar (2013) identified that the generation X people also found that cash is accepted anywhere in India but when it comes to digital cards or process, it is not necessary for the individuals to find the digital payment system in the small traders.
Thus, these areas become a major which shapes the generation X mindset.
In contrary to this study, Hanafizadeh et al. (2014) believed that the Indian people have a set mentality that if they do online payment then there are high chances of access personal information such as account details and other information due to which they can become bankrupt.
In regards to such viewpoint, the major fault is that consumer is not fully educated about the process of online banking which does not allow them to create full faith in online banking.
Furthermore, the people in India are also involved less on the digital payment methods due to the cash is an immediate transfer of value while digital payments despite recent development still involve more or tedious steps than an exchange of cash.
This mindset is usually consumer has when they even thought about digital payments. But the update of the technology, the generation X mindset starts changing as people now ready to use the online payment application due to getting exiting offer and discount.
This area promotes them to more involve in online banking and help them to change their conventional thought process.
Moreover, the government initiatives towards the make an India digital also play an important role in changing consumer perception.
In regards to this initiative, the Indian government launched various payment applications and induces the small or big traders to incorporate it into their business operation.
This allows the local people to get the benefit in the form of make shopping or transaction without carrying the cash in hand.
Thus, this practice proves to be a crucial one for evolving online banking and getting maximum acceptances of generation X.
The increasing literacy is also considered as a strong factor that influencing the generation X to move for online sites.
This is because the younger generation always supports the Gen X for making them learn about the areas on which they are not familiar.
Moreover, the government campaign in which they arrange the classes for the computer and other electronic devices.
This area also supports the people towards making employment and transforms the people perception about online baking positively. Therefore, these areas become responsible for creating and setting of Generation X perception.
In the opinion of Awwad et al. (2018), the increasing population in India will affect the services and products that need to be provided to them.
This makes the banking sector to improvise its services and make its products for Generation X, and its usage for the services will be increased.
As per the latest data, it is assumed that the birth rate in the coming year will decrease and will make the generation X to make the use of modern techniques. This will make the generation X to consist of 42% of the total population.
The growing technology has made the generation X by smarter in terms of usage of new technologies and digital marketing services.
The growth of the business can take place with the gratification that can be availed to the generation X as they are the major proportion of the total population.
This makes the banking sector to improve its services so that it could make the people satisfied and make them to avail the services online.
Digital technology and its high use made the generation X to make their transactions to be made online so that they do not to visit the banks.
This makes them to retain loyal to banks and make the banking sector to implement the new technologies in it for providing satisfaction to the customers.
In contrast to this Tam and Oliveira (2016) said that youngsters make the high use of technology and make the services to be availed online mostly.
This makes the banking sector to focus on youngsters as they are the one which makes online payments mostly through banking sites.
The demands of youngsters are increasing day by day due to the usage of digital technology in it.
This will make the services that need to be produced by the banking sector so that it could meet with the competition and satisfy the people. The revolution and innovation in technology have made the banking sector to bring their services with the use of new technologies.
The increasing usage of the internet and technology has made the banking sector to open its new channel for the online payment made through the website of the banks.
This has given the banking sector an opportunity to have a large number of customers in the banking sector. The improvement and innovation in digital technology have made the customers to obtain and avail the services online so that they could their time and cost.
The use of social media and online services provided by other organization made the customers to make their payments online with the use of the banking system.
Moreover, the knowledge that persists in youngsters makes them have the financial transaction thoroughly online banking so that they can access it anytime from anywhere.
This has made the banking sector to bring its services online with the use of mobile banking.
The growth of the banking sector can take place with the use of new technology as this will only make the customers satisfies as they prefer online services more than any other services.
This will make the banking sector to bring their business to be made online so that it could help in grabbing a large number of customers (Salim, 2018). This will make the banking sector to operate its operations at a large level so that satisfaction could be provided to the customers.
This will also help in motivating the customers to avail the services online as this makes them to have more benefits as compared to retail banking. This also makes the banking sector to enhance their quality of banking and makes the customers to meet with their emergencies.
The all-day availability has created a pace in the mind of the people that they can access to banks at any time.
According to Mocetti et al. (2018), quality of products and services has been preferred by the customers at a large level, and this is the priority of the banking sector to satisfy its customers.
It should develop its system so that it could be accessed and used and all the people with different age group this facility makes the customers to have information of various factors which could enable the customers to have their personal records.
This makes them to attain the information from the banks directly and make them to make the transactions online.
The banking sector is required to provide privacy and security measures to the customer so that they can meet with their needs.
This will help in reducing their issues and risks associated with the online transaction. This will also improve the contribution if generation X, which would make them to make their transaction online.
This will improve the profitability f the banking sector and make the customers to the banking sector to meet with a competitive advantage.
The online services will also help in keeping the systematic record of the customers and the transaction they made with the passage of time.
In addition to this, the profitability of the business can be made attained with the satisfaction level of the customers and the services that are provided to the customers.
This makes the banking sector to consider the demands and desires of the customers so that the services could be provided to them accordingly.
This will ensure the banking sector to use the technologies in an optimal manner which will help in making the use of resources in an optimal manner and make the customers be loyal and retained in the banks.
The satisfaction level of the customers can be enhanced with the quality of services that are delivered to the online within a specific time.
The banking sector has also made the online routers to be accessed easily so that transmission and flow of information could be made in an easy manner (Mocetti et al., 2018).
This will achieve the set targets of the banks and satisfy the customers. The electronic transaction makes the customers have all the information that is provided to them in a pleasant and concise manner, which is easy to understand.
This will make the customers satisfied and make them enjoy all the services.
Investigate what are the acceptance factors of Indian customers by using UTAT2 method
From the research ofZhou& Wang, B. (2010), it is identified that the UTAUT method is effective to have a better explanation about the online banking and generation X.
This is because this method stated that the performances of online banking or related to this should be appropriate and as per the need of the customers but in concern of Gen X, it was not as per that.
The performances of banking towards bring online platform proved to be improper as in the 60s to 80s, there is a low adaptation of advancement of technology by India.
This makes them fail in term to implement the online banking system. At the same time, the effort of the bank towards bringing the operation on an online platform is also less at that time due to absences of literacy rate in India.
In addition to this study, Montazemi & Qahri-Saremi (2015) found that the banking sector also fails to make a social influence towards the society positively as previously bank did not involve in any type of advertisement and promotional activities due to which people are not much aware.
This becomes a major cause due to which Gen X fails to understand the concept of online banking in-spite of establishing digital banking in the 80s.
At the same time, the low focus on the developing of facilities in regards to support online banking.
It means that generation X struggles a lot in regards to the availability of the electronic device to transit. Likewise, banks previously not offer any time of ATMs, internet facilities.
So, it becomes difficult for the bank to induce the customer to use online banking as this type of banking demands for the proper availability of the internet and networks.
So, improper technology existences do not allow the Indian banking system to move towards the digital platform.
Thus, these factors clearly presented that why generation X still hesitate to perform the function at the online platform.
According to Yang et al. (2015), UTAUT method main purpose is to explain the user intensions to use an information system and usage behavior.
As per this theory, it is found that in concern to online banking in India, the people of generation Y accepted it excessively as the younger generation in India is quite go cashless and pursue towards the digital transaction for even a small product.
But in respect to generation X, they still prefer to use of cash for the transaction as they believe the cash value is more and set perception that the digital transaction carries high challenges such as privacy and security risk.
Other than that, low knowledge about the dealing of technology is another factor within which Gen-X fails to accept digital banking to a larger extent.
Besides that, less focus on the technology of the country is another factor within which Indian people never understand digital banking and its process.
Moreover, the behavior of user such as generation X as per this model is quite negative especially in concern to online banking.
This is because of presences factors such as inefficient availability of technical resources along with sufficient human resources.
These areas affect the people perception in a way that online banking is a tedious task which involved a large number of steps.
Furthermore, the privacy risk is another issue which majorly affects the people mindset regards to perform the transaction on an online basis.
This is because of the growing problem related to the hackers and access to personal information. So this makes the people uncomfortable to access online banking.
Thus, these factors majorly affect the behavior of users in a negative manner.
Furthermore, there is various acceptances factor that supports the generation X to easily adopt online banking.
In regards to this, the properly availability of resources including internet technology and proper network etc in the Indian market, So this helps the people to start using the application and sites related to payment and money transfers.
At the same time, the habit of individual towards using the cash for the transaction is another factor within which 40 to 60 age group people are not ready to use the online process.
In regards to this, the banking sector should need to offer such product and service which attracts a large customer base.
Likewise, internet banking is something which accepted by the people of generation X but the growing technologies like UPI system and other online application are not that much admitted by the people as they do not develop trust worthiness over such sites.
In the views of Tarhini et al. (2016) social influences banking in current situation is playing remarkable role as this sector involves in the marketing activities for promoting the online banking products for transferring of money and making an payment etc.
this area influences the society in a positive manner as people get to know about the different online banking products which make their lives more secured and safe.
This helps the generation X to understand the importance of online banking. However, age, experiences, and gender are also considered as vital areas in the UTAUT method.
This is because people of gen X age group have a rigid perception related to online banking.
At the same time, if people get the worst experiences with online banking then they also set a negative perception about that.
Alongside, gender experiences are also involved in regards to marking an impact over the banking user as male one is more active for online banking as compared to a female one.
On the basis of this method, it can be stated that the improper facilities of technology and guidance’s along with the set perception would be the factors that do not allow the generation X to adopt the online banking to a greater extent.
Study about current methods used by Indian online banking for Gen X
The Indian government has always focused on the banking sector as this one is considered as major sources of economic growth. In regards to this, the government wants that the banking sector secure large customer base both from Generation X and Y. This is because both customer segments are important for making balances of capital flows. Apart from the focus on generation Y which is a younger generation. Currently, the bank also undertakes various approaches to retain its existing clients by making them aware of the value of online banking. Likewise, Noe et al. (2017) found that the demonetization has had a positive role in regards to uplift the internet and reduce the cash transaction. This is why Gen X becomes digitally smart. It is found that pre-demonetization only 68% of people used the digital transaction methods but post, the percentage value gets increased to 90%. This estimation clearly presented that the Indian government demonetization approach definitely proved to be worthy for influencing the generation X people positively. This is because of post demonetization; aged people start developing trust towards the payment application and internet banking and tend to transfer a large number of amount to one place to another. Thus, such initiatives support 80s people to move towards online banking sites.
From the qualitative sources of data,Thakur, R., & Srivastava, M. (2014) found that the compulsion of AADHAR card in India tends to be a major step of government towards bringing transparent online banking. This is because the AADHAR card includes a unique number of each individual which everyone needs to carry. This policy tool promotes hassle-free people-centric governances. At the same time, this card also supports transparent online banking with the compulsion to make a linked with the bank account. So this approach plays a crucial role in reducing the problem of fraudulent and unauthorized access. Moreover, the center for excellence for the internet of things (COE-IT) is another yet effective approach which helps the country to strengthen IT and technology innovation. Basically, this center is playing an important role to bring an innovative product which is easy to use for the people. So much innovation can attract the generation X in a proper manner as online banking product is in high demand in India. Therefore, these initiatives of government proved to be effective for influencing aged customers/clients.
In the research of Yadav et al. (2016), it is analyzed that the focus on the mobile application is considered as a successful approach of the government in regards to moving a large number of people over the technology. In the current situation, all banks consist of mobile apps today which offer various services such as check account balances, transfer funds, pay bills and many other facilities, etc. These areas are the major contributor towards helping the generation X to operate their banking function on mobile without physical visiting on the bank. Moreover, the increasing use of mobile among the generation X is another benefit that banks gain through launch their applications. Thus, it can be stated that the concentration on the mobile phone is the biggest achievement for the government in term to move various aged people into online banking. Mital et al. (2018) supported this study by stated that the UPI system equally has a positive contribution to increasing online users. Every bank has incorporated this payment system in their services. Currently, the whole banking system works on a phone which means that user just needs a Smartphone or feature phone to transfer money to another user. The best part of this system that they are risk-free due to its system is directly attached to the individual AADHAAR card due to which there is high transparency exist. This practice helps in make changing of aged people set perception and allows them to easily accept online banking. Moreover, Acharya & Subramanian (2016) found that banking sector to grow more online banking among the large population tends to migrate towards the cloud. It means that the banks have been adopting the cloud and others are following the suit. The business model of the new bank is largely based on a cloud-computing strategy. This strategy is accepted post-demonetization for bringing progression and makes the digital economy. However, the technology of the cloud helps the bank with the required flexibility to adapt to the new demands of new systems. At the same time, this strategy also supports the reduction of unauthorized actions and frauds as with the personal cloud of the bank; they privatize the customer personal information and bank confidential process. This helps the customer to feel safe and make a positive mindset about the online practice and area (Montazemi & Qahri-Saremi, 2015). Thus, it is identified that the cloud-based system plays an important role to reduce the privacy error of banks and its results in holding large customer including both generation X and Y. these areas assist the people to make a positive influence on the mind of peoples.
Furthermore, the government of Indian in current status focuses largely on the robotic approaches especially to resolve the queries of aged people who belong to the 60s to 80s. It means that the leading banks are more involved in the robotic technology for making people understand the usage and process to perform the transaction. Thus area also proves to be helpful for the generation X in regards to solve their query about the operating of internet banking and other mobile application. At the same time, there are various stores are also opening to support the individual about how to perform the transaction via online basis and these are commonly known as E-Mitra which is popular to provide services such as money transfer and check of bank balances, etc. Thus, these are the current initiatives and approaches which the Indian government has taken to promote digital India through move people towards the online and virtual banking.
In addition to this study, Bhat & Darzi (2016) depicted that marketing activities of both banking sector and government also contribute towards encouraging the people towards performing the transaction on online basis without fear to lose money and any false activities. The marketing approaches of government towards the online concept become a great achievement as people mindset about online banking is slowly changing and they start accepting it properly. Moreover, the personalized services of AI also support people to understand the process of online banking and start taking interest in this field. Thus, these areas somewhere influence the people mindset in a positive manner.
Provide the recommendation for improving the acceptance and usage of online banking in India
There are various areas which help to bring improvise the usage of online banking in India. It includes the development of the right customer services. Likewise, there are various complaints related to unauthorized access of money occurred so with the innovation of new system can support the banks to present the safe and secure transaction to people and offer the quality services within which generation X people develop a positive mindset about the online banking. Other than that, Roy et al. (2017) identified that there will need to bring improvement in the digital UX through focus from digital quantity to digital quality and this area allows the bank to offer right technology services to generation X. The right services always attract people to a larger extent.
Alongside, the education about the usage of online banking is also important to undertake by the banks as well as the government. This can be done through make people understand about the significances and use of internet banking, UPI use and ATMs, etc. These areas somewhere support the generation X to start using digital banking.
As per the UTAUT method, the elderly people have usually failed to accept internet banking because of habit, performances expectancy and price value. In concern to such areas, the banking should focus on the different aspects to change the people habit. Likewise, they can conduct the live training and classes to the bank employees or hire the technical staff so that they can explain to them about the new online services. This practice could help generation X to undertake online banking. Other than that, it is also required to enhance the effort of the bank towards the promoting of online services by mentioning the safe and secure transaction as aged people usually feel hesitate in regards to using the digital platform due to the existences of high complaints. In respect to influences the people behavior, the government now present the special offering for a particular age group and this tactic can impact generation X in an optimistic manner.
In relation to a country like India where people low involved in the online transaction is because of low education and poor technology services within which still people of rural area are untouched about online banking. Likewise, in India, there are various villages where there is a great problem of network or unavailability of the internet. So, this challenges them to properly incorporate online methods. So, it is recommended to the government that they should take more initiatives as they have taken with Jio firm in regards to making the internet availability. At the same time, the government also needs to focus on the technology which supports the right network as without such areas; it won’t be possible to make India digital.
In accordance’s to Mwatsika (2014), it is suggested that to banking that they should come up with the fifth third bank for encouraging to sign-up mobile banking on ATM screen and they also need to include QR code at bottom of the transaction receipt. This is because the use of QR code appeals to more advanced smartphones user while being a perfect way to electronically link to the appropriate application. Moreover, the customer can also able to scan the code to study the balances in their account. Thus, such type of ATMs can also prove to be effective for attracting generation X towards the online process. In a similar manner, Chaouali et al. (2016) stated that the email campaign is the best way to target online banking customer or customers doing a large number of balance inquiries monthly. In this, the bank needs to target those customers who visit the branch so that they promote mobile banking through make them understand about the online transaction process and other activities. This can be done by sending the emails so that they make a direct link to either mobile banking location on the website or to mobile banking application.
At the same time, social-media also proves to be effective for procuring the interest of aged people as they now use Facebook excessively so within which it becomes easier to target them. This is occurring through developing facebook and other social pages for making a connection with a mobile banking application. This process also proves to be useful to attract the aged people towards mobile banking.
Alongside, the bring improvement in the internal process of banking is also recommended as Boateng et al. (2016) found that there is a lot of error usually occur on an internal level in term to obsolete of system and hacking of computer within which customer feel uncomfortable to use the online services. So it is important for each bank and financial institutions to incorporate the advanced technology with the time changes in order to offer the timely and quality services to the individuals and make them help to change their conventional habits. Likewise, Gen X has a habit to perform cash transaction as they feel it safer. The presentation of the secure transaction can help the people to change their behavior and show positive response towards online banking. Additionally, the awareness campaign can also support Gen X to take an interest towards the online banking as with the mention of benefit with the online transaction, it would definitely affect the mindset of people in a positive way. Thus, this manner Gen X accepts and uses digital banking to a large extent.
The aim of this research is to study the generation X acceptances towards online banking in the current scenario in context to India market. as per the qualitative research study, it is found that there are various researches has been done over the online banking but in context to UK and USA but never any study focuses on the Indian market for the digital banking sector (Raza et al., 2015). Thus, to fill such research gap, the researcher undertakes the study of online banking in context to Indian generation X people. This study proves to be effective for the bank to figure out the perception of aged group people about online banking in India.
Chapter 3: Research methodology
The research methodology is a systematic and theoretical analysis of the methods that can be applied to conduct research. Sociologists develop a variety of research methods both qualitative and quantitative for conducting research such as survey research, participant observation, experiments, secondary data, etc. In concern of this study, the researcher will develop the research methods for identifying the usage of online banking by generation X people in India. This part of the study will also comprise the theoretical analysis of the methods as well as the associated principles with a branch of knowledge. In addition, the research problem and the research questions are considered in this research methods section and well as these research problem and questions are derived from the literature review above (Kumar, 2019). Moreover, this part of the research is also considered and discussed the issues related to validity and reliability.
The review of the literature above showed that the advancement of technology has increased the use of internet banking or web-based banking. But in concern to generation X, it can be said that several factors impact to use online banking such as trust and security issues. In addition to this, it is also identified that the generation X people have a habit of doing transactions in cash only due to facing difficulty to adopt new technology. As per the views of generation X people, they have low-level transparency in digital transactions. The above literature has also explained that the mentality of Indian people have set that the online payment method increases the chances of fraud by assessing personal information of consumers by hackers such as account details and other information that can become them bankrupt. Moreover, the generation X people also has the mindset that the digital payments might be costly for the client because the income department can easily access their transaction-related information and they have to pay more taxes. On the other hand, it is also identified that the generation X of India has a low level of literacy that cannot operate their banking transactions online.
With this context in mind, the research problem concerns how the Indian clients of the banking sector can accept online banking. It is the biggest research problem to identify the ways by which the researcher can investigate different methods that can be adopted by the banking firms in India to increase the acceptance level of online banking. In addition to this, the research should also answer it how the generation X customers can accept and perceive the electronic banking services in India. As well, another research problem is that the research should investigate acceptance factors of Indian customers through the use of UTAT2 method. However, the researcher is also facing issues related to current approaches that can be accepted by banking firms to improve online banking in India. However, it can be said that this research study includes research problems related to identifying effective methods of improving the acceptance and usage of online banking among the generation X people in India. The below table is representing the important research questions:
| Q1 | What is online banking and contrast on the online banking in India? |
| Q 2 | Explain how generation X customers can perceive electronic banking services in the context of India? |
| Q 3 | What are the acceptance factors of Indian customers by using UTAT2 method? |
| Q 4 | What are the current methods that banks used in online banking in India for attracting Gen X? |
| Q 5 | What are the ways to improve the acceptance and usage of online banking in India? |
The value of the research is in the banking sector and generation X people. It is because the researcher has identified the issues that are facing by banking organizations of India to improve the acceptance level of online banking among the generation X people. In concern to this, the given research is providing UTAUT method that can be adopted by banking firms to increase this acceptance level. However, it can be said that the research has a high consideration on how the answers to the research questions as evidence of outcomes.
The research problem also considers the ethics that how to ethically conduct this research that must not impact on another person like authors of the literature, readers, and participants involved in the primary research. In concern of this, the researcher needs to follow an effective ethical behavior during conducting research. In the collection of data, no one will be impacted due to following ethical behavior where each and every person will be considered in ethical consideration.
For this dissertation, a positivist research philosophy is used as a research philosophy that is also known as positivist epistemology. As per this philosophy, the world is outer because as there is a solitary target reality for any kind of marvel or circumstance (Mackey &Gass, 2015). As per scientist’s point of view, positivism is helpful to adopt a controlled and auxiliary strategy to recognize an unmistakable research strategy and develop fitting speculation and to embrace an appropriate research procedure. It can also be said that positivist specialists stay isolates by making a separation from members of the examination. It is important to clarify refinements among feeling and reason with outstanding candidly impartial. Positivist specialists maintain a reasonable qualification of science as well as they have an individual experience, esteem judgment, and actuality. In addition, it is also essential in positivist research to deal with the research with looking objectivity and reliably utilize for normal and sensible ways. In positivist research, numerical and factual process are integral that holds fast for organizing research methods explicitly in order to reveal single and target a reality.
In a similar manner, it can also be said that the positivist scientist’s objectives are to set free speculations and aside a few minutes. It is because they trust that it is conceivable to focus on the facts for clarifying human activities (Taylor, Bogdan, &DeVault, 2015). In this, it is identified that genuine causes can incidentally go before impact to others. It can be possible that the positivist analysts have tried to stop separation among them and the members to stay confined from the members of the examination. Mainly, it can also be said that it is an imperative advance for clarifying the qualifications among reason and feeling in residual candidly impartial in the experience of science and individual. Additionally, positivists also provide the guarantee to recognize actuality and esteem judgment unmistakably. However, it can be said that positivist scientists can look utilize reliably and objectivity as intelligent and reasonable ways for dealing with research objectives.
In concern of this research study, the quantitative research approach is adopted by the researcher. It is because quantitative research can be converted frequently into the measurable investigation in order to make the association between things that can be realized through research and what is known (Flick, 2015). A comprehension of the connections is required among factors in the use of quantitative methodologies during the gathering and dissecting the measurements of information by graphics or inferential. In this, graphic insights are used for drawing inductions related to the population as well as for evaluating the parameters of that population. The aim centers around pointed in the quantitative research and close-finished inquiries get from the speculations that test explicit factors. The relationship explanations are tested by the specialist in an endeavor to help or disprove these speculations. The information can be gathered from several members at many research locales in quantitative research. Scientists are depended on social occasion data by managing and sending the testing instruments to the members. Normally, information is gathered by using numbers that can be broken down measurably (Bresler& Stake, 2017). On the other hand, the words and pictures of members gathered in the subjective research at their separate research and the analyst records locales.
In addition to this, the researcher has selected the survey method for collecting data for quantitative research. In this survey method, the researcher develops a questionnaire related to the research topic that answered by participants. The information accumulation can speed up with the questionnaire as well as a questionnaire is less costly prerequisites. Additionally, the questionnaire is also a more elevated amount of objectivity contrasted that includes several elective techniques to gather significant essential information (Azzouz et al., 2014) In this, the respondent provides data that can effectively be changed in the quantitative information as well as it permits to examine the reactions in a measurable way. In concern to this survey, the researcher has selected 100 banking customers of generation X.
In order to understand the elements, the research selected the questionnaire systems to identify the appropriateness of web banking among the overall population of India. Particularly, the semi-organized survey is used to pick up more profound information about the research topic. On the other side, the survey is also helpful for the researcher to fill the research gap because it can manage complex issues. But it is depicted that the survey only provides a reaction rate that is not relevant to provide hands of the examination. Moreover, the researcher has selected the A pilot study tool for using training/little scale that will develop an understanding of principle contemplate (Walliman, 2017). It also enables the researcher to test the investigation with some members in order to make the modification before the fundamental examination.
Reliability and Validity Issues (for quantitative work)
The reliability can be considered to the consistency of a research study. In concern t identify the reliability, the researcher will provide correlation among the variables as well as other measurement methods are also used (McCusker & Gunaydin, 2015). In addition to this, the validity is also necessary for research to provide satisfactory research outcomes. However, the valid measure is necessary for the research to measure the construct of interest.
Quality or Trustworthiness considerations (for qualitative work)
In concern to quality consideration, the researcher has effectively focused on transparency. The researcher has provided data and analytic transparency in the research that has improved the effectiveness of the research and its outcomes. On the other hand, the researcher has developed trustworthiness in this research by removing bias in the collection of data.
In this research, the researcher has followed ethics at the time of conducting the research. In concern of this, the researcher has focused on the increscent of the reliability as well as reduction of the ethical issues. A high consideration on the privacy has followed by focusing on the security of personal information of the participants. Moreover, only considered reliable and actual information is collected to increase reliability (Kumar, 2019). All the collected information is rewritten for removing the plagiarism issue. However, the main focus on the researcher was on the copyright, patent, and trademark issues that impact to the ethics of the researcher during collecting the secondary information by providing proper referencing.
The above research methodology has provided several methods that can easily complete the research in an effective manner. In this, it is identified that the researcher has used positivism philosophy to develop an understanding of the research topic. It is also concluded that both primary and secondary data are collected in the research to achieve research outcomes. Moreover, survey through questionnaire method selected that targeted to the generation X people who are a customer in the banking organization in India. A number of limitations have also been faced during developing the research methodology but the quantitative method is justified to research outcomes.
Chapter 4: Research Findings and Discussion of Results
- Age
| Age | Respondent |
| Below 18 | 0 |
| 20-25 | 0 |
| 25-40 | 2 |
| 40-60 | 98 |
| Above 60 | 0 |
| Total | 100 |
Interpretation:-
From the above pie-chart, it is found that majority of respondent belong to the age group of 40-60 as the purpose of this study is to analyze the Gen X perception about the online banking. So the targeted market is the people who belong to age group of 40-60 as people are considered in Gen X.In regards to the research study, the selection of this age group is quite relevant as these respondents clearly able to provide information related to factor which restrict them to use digital banking in current scenario. Based on this, it becomes easy to provide solution to Gen X for changing their habit and start using the online banking. At the same time, there is an increase of probability of collecting relevant information and which leads to result in achieving relevant research outcomes. Thus, the selection of this age group enhances the authenticity of study and contributes towards the implementation of success research study. Other than that, above 60 aged groups also have their participation in the survey results. However, there are no preferences is given to the age group of below 18 and between 20-25 age group people as they belong to the Gen Y. Therefore, the responses regards to study is majorly derived from the people who belong to age group of 40-60 which help the researcher to get a genuine result.
- Do you aware about the definition of Generation X?
| Aware about the definition of Gen X | Respondent |
| Yes | 90 |
| No | 10 |
| Total | 100 |
Interpretation: –
90% of people in the survey stated that yes they are aware about the concept of Generation X while only 10% people found this concept as a new one due lack of knowledge. overall, it can be stated that Indian people are familiar with the definition of Gen X, Which helps in to getting the correct data in the following questions.
- Do you think that Gen X customers adopt online banking in India
| Gen X customers adopt online banking in India | Respondent |
| Strongly agree | 10 |
| Agree | 24 |
| Neutral | 40 |
| Disagree | 16 |
| Strongly disagree | 10 |
| Total | 100 |
Interpretation:-
From the above graph, it is identified that 40% Gen X individuals out of 100 prefer to stay neutral by stating that Gen X neither fully accept not ignore online banking. This means that aged people have less knowledge about the online banking practice due to which they hesitate to operate it properly but they have proper awareness about the existences of online banking in the current business environment. Other than that, 34 respondent found that they now start adopting the digital banking with the changing scenario as currently, the online banking become a necessity for the people due to changing Indian government policy and within which government focus is directly on the make an India digital so there acts is also directed accordingly. Thus, it can be stated that now digital banking is accessible to any individual and that gives rise to the adaptation of online banking among the aged group people. While only 26 respondents find that still there is less scope of online banking among Gen X due to low acceptances level.
- Do you agree that online banking is a growing trend in India?
| Online banking is a growing trend in India | Respondent |
| Strongly agree | 50 |
| Agree | 20 |
| Neutral | 10 |
| Disagree | 6 |
| Strongly disagree | 14 |
| Total | 100 |
Interpretation:-
On the basis of the above study, out of 100, 70 banking customers showed their agreement on that there is an increasing trend of online banking in India. This is because of giving emphasis on online practices by the local government. Besides that, the FDIs investment also becomes a reason behind to grow online or e-commerce’s market in India. At the same time, the increasing population of young age people in India also attracts the online market to a larger extent. Thus, this area allows to every bank whether private or public adopts the digital banking products such as net banking, online transaction, etc. In against to this study, only 20 people depicted that due to online banking sector still is in the developing stage so it tends to be unorganized. This is a reason behind people involve in online transaction but for a small amount. This case especially exists among the people who consist more than the age of 40 to 60.
- Do you think, Generation X is aware of online banking in India
| Generation X is aware of the online banking in India | Respondent |
| Strongly agree | 16 |
| Agree | 10 |
| Neutral | 36 |
| Disagree | 30 |
| Strongly disagree | 8 |
| Total | 100 |
Interpretation:-
The above study clearly depicted that the survey result much belongs to the neutral category as there are few respondents of the survey are familiar with the concept of online banking while some respondent does not aware about this concept. At the same time, the survey showed that Gen X people are quite known with the internet banking practices but because of unavailability of basic online requirements, they won’t able to use it. Moreover, there isa respondent who doesn’t know about the functionality of online banking due to which they do not indulge in making transaction online. But, the study concluded that Gen X people are much aware of the positive side and negative consequences of performing the transaction online. These responses are given by those respondents who come into the category of neutral which means 36%. On the other hand, 38% respondent believed that Gen X people still using the offline process for making a cash transfer and checking of a bank statement. The weight of such people is more in India. That’s why these people find that online banking is aware in the current scenario by various Gen X people. Moreover, 26 respondent find that Online banking is not a new concept in India and especially for Gen X people as every aged group has some young member at home so they have a major role to filling the bridge between the usage of online banking.
- Do you think that use of offline banking habit is the reason behind to not use high online banking?
| Offline banking habit | Respondent |
| Strongly agree | 35 |
| Agree | 15 |
| Neutral | 20 |
| Disagree | 20 |
| Strongly disagree | 10 |
| Total | 100 |
Interpretation:-
On the basis of above graph, it is analyzed that majority of Gen X people shown their agreement on the statement habit of using the offline banking practice can’t allow them to move towards the online platform. The major reason behind is the habit of visiting the bank and perform the transaction makes them more comfortable which allows them to support the offline banking. That’s why 50 respondents majorly favor the statement while 30 respondents present their disagreement on the given question. Only 20 people chose the neutral part by neither favoring statement nor deny it.
- Do you agree that increased fraud with online banking is affecting trust?
| Increased fraud with online banking is affecting trust | Respondent |
| Strongly agree | 50 |
| Agree | 20 |
| Neutral | 5 |
| Disagree | 10 |
| Strongly disagree | 15 |
| Total | 100 |
Interpretation:-
Out of 100, 70 respondent believed that increased fraud with online banking definitely affect their trust as they found various complains reported in newspaper on regular basis. It was found that Indians are the most frequent victims of online banking fraud in the previous year 2018 by the global survey conducted by FIS.This area influences their trust over the practice of online banking. On the other hand, 25 people showed their disagreement on the factor that increased fraud is the reason behind for not using the online banking while only 5 people give response on neutral basis.
- Do you think that lack of knowledge of internet is the reason behind of less using online transaction?
| Lack of knowledge of internet | Respondent |
| Strongly agree | 40 |
| Agree | 20 |
| Neutral | 20 |
| Disagree | 10 |
| Strongly disagree | 10 |
| Total | 100 |
Interpretation:-
From the survey question, it is found that 60 respondent considered that lack of knowledge about the using of internet is becoming a problem behind hesitate to adopt the online banking. This problem occurs in India rural areas where illiteracy rate is quite high. But at the same time, 20 people deny on this fact that lack of knowledge about the internet could be the reason behind the low usage of online banking. Furthermore, 20 people have shown their neutral reaction in their response.
- Do you agree that social influences (young generation) impact the online banking in positive manner?
| Social influences (young generation) | Respondent |
| Strongly agree | 20 |
| Agree | 20 |
| Neutral | 30 |
| Disagree | 20 |
| Strongly disagree | 10 |
| Total | 100 |
Interpretation:
Out of 100, 40 people believed that social influences have a major to encourage other people towards using the online banking. Likewise, Gen X people stated that they start using internet banking for transfer money because of social influences. So, they found the role of social influences quite strong in context to online practice. On the other hand, 30 people found that a social influence does not contribute that much importance’s in term to influences towards using the online practices. Lastly, 30 people present their views on neutral basis.
- Do you find the Indian bank promotional efforts positively influences the online banking?
| Indian bank promotional efforts positively influences | Respondent |
| Strongly agree | 10 |
| Agree | 30 |
| Neutral | 20 |
| Disagree | 10 |
| Strongly disagree | 20 |
| Total | 100 |
Interpretation:
Out of 100 respondents, 40 people favoured that Indian banking promotional efforts has a major role in regards to influences the online banking. This is because promotional activities help the Indian people to familiar about the different online practices and these areas have strong influences over their mindset. So, these people found that promotional activities like celebrity endorsement and advertisement allows them to create awareness about the different banking product and service. On the other hand, 30 people stated that Indian banking is not into the excessive online banking promotion and there is no point of influencing positively towards usage of online practices. They believed that if Indian banks promote the online banking through focus on the security aspect then they may influences them properly while 20 people showed their neutral response.
- Do you agree that bring safer transaction helps bank to increase more usage of online banking?
| Safer transaction helps bank to increase more usage | Respondent |
| Strongly agree | 20 |
| Agree | 40 |
| Neutral | 20 |
| Disagree | 10 |
| Strongly disagree | 10 |
| Total | 100 |
Interpretation:-
60 people out of 100 believed that bring safer transaction definitely influences the perception towards the online banking. They stated that Gen X people majorly hesitate to use the digital platform due to fear of fraud and misleading practices. So the safe and secured transaction support the people to start more moving towards the online platform for performing the banking functions. While 20 people not agree on the fact that bring safer transaction influences them to use the online banking or 20 people neither support the factor of safer transaction nor deny the statement.
- Do you find that Indian bank become successful to increase awareness about online banking?
| Indian bank become successful to increase awareness | Respondent |
| Strongly agree | 10 |
| Agree | 20 |
| Neutral | 40 |
| Disagree | 20 |
| Strongly disagree | 10 |
| Total | 100 |
Interpretation:-
On the basis of above graph, it is found that 30 people of Gen X stated that that Indian bank become successful to increase awareness about online banking but at the same time 30 people stood in against of this statement and revealed that still people of India are unfamiliar with this concept. 40 people placed a neutral reaction as they stated that Gen X of Indian village still not having knowledge about this concept and majority of population of India lives in Village. So, it can be depicted that Gen X in India is not fully familiar with the online banking practices.
- Do you think Indian bank is successfully adopting the advanced technology?
| Indian bank is successfully adopting the advanced technology | Respondent |
| Strongly agree | 20 |
| Agree | 40 |
| Neutral | 10 |
| Disagree | 20 |
| Strongly disagree | 10 |
| Total | 100 |
Interpretation:-
Out of 100, 60 Gen X people showed their agreement on the fact that Indian banking is successfully adopting the advanced technology. This is stated because now Indian banks try to move completely on the online activities for loan sanctioning to transfer of money. So this development clearly signified that banks are adopting the technology in their operations. At the same time, 30 people deny this fact by not considering that Indian banks has achieved the advanced technology in proper manner as still there are various frauds and misleading happening. 10 people give the response on neutral basis.
- Do you think Demonetization approach promotes the online banking effectively?
| Demonetization approach promotes the online banking effectively | Respondent |
| Strongly agree | 20 |
| Agree | 50 |
| Neutral | 10 |
| Disagree | 10 |
| Strongly disagree | 10 |
| Total | 100 |
Interpretation:-
70 Gen X stated that demonetization initiative is definitely proven as a supreme practice in term to influences the online banking. These people found that because of this practice, Indian people start using the online payment application and payment cards. Otherwise, previously, without cash people take any product and service. on the other hand, 20 people deny that demonetization proven successfully for promoting the online banking as still large number of population rely on cash transactions. Lastly, 10 people showed their neutral response.
On the basis of above findings,lets discuss about the results here and how they are related to the prior research analaysed that discussed in literature review. Chavan (2013) discussed that online banking is in the current trend in India as every bank start using the online product such internet banking, online checking of e-statement, etc. besides that, there are various mobile-based application is introducing for easy transfer of money. In respect to survey, Islam & Das (2013) found that X Generation people still not become a habit to use online banking due to presences of various factors. Likewise, the old aged conventional perception towards the online transaction as they believed that there is a high risk present in the online practices. Besides that, low knowledge about the usage of internet and availability of proper devices also become a reason behind ignorance’s of online banking.
From the findings of Hanafizadeh et al. (2014), it can be discussed that Indian people have set mentality as if they do online payment then there are high chances of access personal information such as account details and other information due to which they can become bankrupt. Such perception about the online banking restricts them to undertake. Moreover, people in India find that exchange of money in cash has a value as compared to card payment and online transfers. But the update of the technology, the X-Generation mindset starts changing as people now ready to use the online payment application due to getting exiting offer and discount. This area promotes them to more involve in online banking and help them to change their conventional thought process.
In respect to Mocetti et al. (2018), it is determined that the quality of the online product plays an important role in attracting the people towards such practice. But in India still, e-commerce’s and online banking requires to be organized as there are various issues related to access of private account case are identified in weekly and monthly due to which old aged people feel uncomfortable to use it. This is because first they already have very little information about the usage of online platform and after that such incident makes them hesitate to undertake it. Moreover, there is various causes occur of snatching of people payment card or detect information from the individual card. In respect to this, the banking sector focus towards improvising the quality of product and this could assist Gen X to easily adopt this practice.
In addition to this study, Tarhini et al. (2016) discussed that demonetization is also considered as a valuable initiative by the Indian government towards the making in people moves towards online banking for money transfers or use card payments. At the same time, the Indian banks also adopting the advanced technology in order to provide the safer transaction to people. This could help them to gain the positive perception about the online banking by the Gen X. Moreover, the demonetization initiative also proven best for the promotion of online banking as it allows the people to start carrying the smart cards and mobile application for payment instead of rely on cash. It equally supports the small traders in a way to install the device which supports card payment and online transactions, etc. Such areas encourage different individuals like both young and old age people to use or accept digital banking. At the same time, social influences factor also leave a positive impact on the mind of Gen X in a way to people interact with different individual and after communication, they able to find out the significances of usage related to digital banking. This helps the aged people to somewhere accept this concept. Besides that, current banks efforts whether it is private or public towards promoting online banking as a safer and convenient process then it also impacts customer perception in a positive manner. Lastly, Baptista & amp, Oliveira (2017) suggested to the banking sector for coming up with fifth third bank method to encouraging sign-up mobile banking on ATM screen and they also need to include QR code at bottom of the transaction receipt.
Chapter 5: Conclusion/ Recommendation
Based on the above study, it is concluded that currently online banking is in trend in India. It is because banks are now involving in offering online product such as internet banking, mobile banking, e-statement of accounts, online money transfer, UPI system, etc. this helps the consumers to access the bank product and service at any time or anywhere. The finding of research study summarized that still people of X generation did not accepted this practice to a fully manner as they have a habit to use the offline banking method.
From the finding, it is analyzed that there are various factors that become an cause behind low using of online banking and it including lack of knowledge about internet, low awareness among the aged group alongside fear of fraud and misleading activities also make them hesitate to adopt the online practices.
The survey findings also presented that currently Indian bank is trying to completely moving towards the product and service which is totally supported by the online or virtually. For this, they are engaging towards adopting the advanced technology by making ties-up with the IT firm in order to install the software which contributes towards making easy payment and money transfer. Other than that, the banks now also indulged towards the making people aware about the usage of online banking. For this, banks has already changed the mindset of young people but still Gen X people who belong to the age group of 40-60 are still uncomfortable to use this platform as they have several fears such as security is one of the major factor and improper knowledge and guidance’s tend to be another one. In respect to this, Gen X people are struggling to incorporate the platform. But at the same time, social influences aspect is the one which proves to be effective for changing people mindset and influencing them positively in regards to use the online platform.
In addition to this study, it is discussed that Indian banks are now indulged in the adaptation of advanced technology to bring the safe and secured transaction for the people.At the same time, X-Generation mindset is changing due banks are offering several discount options and offers that attracts them to use the online banking. Furthermore, demonetization initiatives of Indian government also considered as a valuable contribution towards encouraging the Indian Gen X people to start using the smart cards and install the payment applications. Hence, it is stated that the X generation people in India are start moving towards online practice by changing their conventional thought process. So, it presents the big transformation among the Indian Generation X people to a larger extent. The government initiatives and banks promotional aspects proved to be worthy for both young and old age people to be encouraged for using or accepting the digital banking after demonetization. However, it is concluded that online banking is started using by the Generation X but still country requires time to achieve the acceptances by the whole population of Generation X.
Limitations of this study and Recommendations for further study
This study was developed well but there was some limitations that affected to outcomes of the research as well as the researcher have faced issues during conducting this study. In concern to this, it can be said that said that the sample size was too small that is not highly supportive to provide accurate results about the research findings. In addition, the researcher has limited time and money to complete this research study.It has highly impacted on the results or outcomesbecause due to lack of time, the researcher was not able to crosscheck the research study in an effective manner. If the researcher has more money than the research was conducted in a very systematic manner such as data are collected from highly authentic people that have very high knowledgeabout the Indian banking system. However, it can be recommendedthe researcher that the researcherwill selecta big sample size in the further study to increase the reliability of the outcomes. Moreover, it is also recommended that the researchermust have a satisfactorytime and budget to develop further research. It is because the researcher has consumed much time in the collection of data and information. Moreover, in the further research, the researcher can use other software of data collection instantof MS excel to identify an effective co-relationamong the research data.
Recommendations on improving research
When considering the validity of the research in this study, there are several issues are identified by the researcher that have negatively impacted on the research outcomes. It is a first time research due to this the researcher has consumed much more time in the data collection and data analysis. But the limited area of research has supported to achieve the research outcomes. Future research areas could be considered that the researcher should a valid outcome that target a higher number of people. The researcher needs to focus on self-training programs through the use of internet to develop more ideas about the research outcomes. The current research results are based on a small sample size where the people of a particular areas was targeted but in the further study the researcher will target the people from wider area through the use of email system and the sample size will be bigger than current to increase validity.
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Appendix
Questionnaires
- Most ofRespondents are Indian banking customer who belong Generation-X
My name is Jeshreena kadavath palakkal and Iam currently studying my masters in leadership practice at Edinburgh Napieruniversity. I ‘Am conducting a research as part of my studies on investigation of usage of online banking in India among Generation x. Thequestionnaireconsist of 14 questions and will take no longer than 10 minutes to complete. All responses will be kept anonymous and no one will be identifiable.
Note: Generation X are the people born in 1960s to 1980s.
- Age
- Below 18
- 20-25
- 25-40
- 40-60
- Above 60
- Do you aware about the definition of Generation X?
- Yes
- No
- Do you think that Gen X customers adopt online banking in India?
- Strongly agree
- Agree
- Neutral
- Disagree
- Strongly disagree
- Do you agree that online banking is a growing trend in India?
- Strongly agree
- Agree
- Neutral
- Disagree
- Strongly disagree
- Do you think, Generation X is aware of the online banking transaction in India?
- Strongly agree
- Agree
- Neutral
- Disagree
- Strongly disagree
- Do you think that use of offline banking habit is the reason behind to not use high online banking?
- Strongly agree
- Agree
- Neutral
- Disagree
- Strongly disagree
- Do you agree that increased fraud with online banking is affecting trust?
- Strongly agree
- Agree
- Neutral
- Disagree
- Strongly disagree
- Do you think that lack of knowledge of internet is the reason behind of less using online transaction?
- Strongly agree
- Agree
- Neutral
- Disagree
- Strongly disagree
- Do you agree that social influences (young generation) impact the online banking in positive manner?
- Strongly agree
- Agree
- Neutral
- Disagree
- Strongly disagree
- Do you find the Indian bank promotional efforts positively influences the online banking ?
- Strongly agree
- Agree
- Neutral
- Disagree
- Strongly disagree
- Do you agree that bring safer transaction helps bank to increase more usage of online banking?
- Strongly agree
- Agree
- Neutral
- Disagree
- Strongly disagree
- Do you find that Indian bank become successful to increase awareness about online banking?
- Strongly agree
- Agree
- Neutral
- Disagree
- Strongly disagree
- Do you think Indian bank is successfully adopting the advanced technology?
- Strongly agree
- Agree
- Neutral
- Disagree
- Strongly disagree
- Do you think demonetization approach promotes the online banking effectively?
- Strongly agree
- Agree
- Neutral
- Disagree
- Strongly disagree
Novi survey:
| online banking in india among x generation | |||
| My prainv | survey on usage of online banking in India among Generation X
name is Jeshreena kadavath palakkal and Iam currently studing my masters in leadership ctice at Edinburgh napieruniversity.Iam conducting a research as part of my studies on estigation of usage of online banking in India among Generation x.The questionare consist of |
||
| 14 ano | questions and will take no longer than 10 minutes to complete.All responses will be kept
nymous and no one will be identifiable. Note:Generation X are the people born in 1960s to |
||
| 198 | 0s. | ||
| 1. | Age
Below 18 20-25 25-40 40-60 Above 60 |
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| 2. | Do you aware of the definition generation X
Yes No |
||
| 3. | Do you think that Generation X customers adopt online banking in India?
Strongly agree Agree Neutral Disagree Strongly disagree |
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| 4. | Do you agree that online banking is growing trend in India?
Strongly agree Agree Neutral Disagree Strongly disagree |
||
| 5. | Do you think, Generation X is aware of the online banking transaction in India?
Strongly agree Agree Neutral Disagree Strongly disagree |
||
| 6. | Do you think that use of offline banking habit is the reason behind to not use high online banking?
Strongly agree Agree Neutral Disagree Strongly disagree |
||
| 7. | Do you agree that increased fraud with online banking is affecting trust?
Strongly agree Agree Neutral |
||
|
|
Disagree
Strongly disagree 8. Do you think that lack of knowledge of internet is the reason behind of less using online transaction? Strongly agree Agree Neutral Disagree Strongly disagree 9. Do you agree that social influences (young generation) impact the online banking in positive manner? Strongly agree Agree Neutral Disagree Strongly disagree 10. Do you find the Indian bank promotional efforts positively influences the online banking ? Strongly agree Agree Neutral Disagree Strongly disagree 11. Do you agree that bring safer transaction helps bank to increase more usage of online banking? Strongly agree Agree Neutral Disagree Strongly disagree 12. Do you find that Indian bank become successful to increase awareness about online banking? Strongly agree Agree Neutral Disagree Strongly disagree 13. Do you think Indian bank is successfully adopting the advanced technology? Strongly agree Agree Neutral Disagree Strongly disagree 14. Do you think demonetization approach promotes the online banking effectively? Strongly agree Agree Neutral Disagree |
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