Online banking has made it possible for customers to do simple tasks like accessing their savings account anytime, keep track of their account balance, get e-statements, pay bills online, shop online, transfer funds and much more in under a few clicks and within a matter of minutes.
Internet banking exists in both nationalised and private banks. A nationalised bank is owned by the government also known as public sector banks. The government is responsible for the money deposited into the accounts of these banks. A private sector bank is one that is owned by an independent individual or a company and controlled by a few individuals.
When customers were asked about using the internet banking services more than 50% from the public sector said they will begin to use this facility. In the private banks 50% had begun using it.
Studies has shown that nationalised banks had relatively slow processes for activation/enabling of internet banking services accessed through their own websites. Private banks on the other hand offered very fast access to internet banking services.
Also what has emerged that while enabling/activating the identified account for internet banking, the private banks’ processes were quick and easy to access (such as receipt and using of one-time password or OTP) for carrying out transactions. Barring a handful of efficient ones, most of the nationalised banks failed to live up to customers’ expectations.
When a customer carries out a number of banking transactions with private banks, most of them reduce their fee to incentivise the customer into using this tool often. Such was not the case with the nationalised banks.
In a few surveys conducted the top private banks that have a good overall banking system are Axis bank, HDFC Bank and the top public banks are Corporation Bank, Allahabad bank and Bank Of Baroda. However, if we look at the overall ratings, private banks provide better internet banking services than the nationalised banks.