customers perception on banking communication …customer's perception on banking communication in...
TRANSCRIPT
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CUSTOMERS PERCEPTION ON BANKING COMMUNICATION IN
"A" GRADE BANKS OF KATHMANDU VALLEY
By
Seeprata Parajuli
Quest International College
November 24, 2019
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Presentation Outline
Background Literature Review
Objectives Research Gap
Methodology ResultsConclusion and
Recommendations
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Background• Communication media are believed to
be important tool in attracting attention, holding attention, and increasing the information’s accessibility and its impact on consumer perception
• Communication between senders and receivers of the information is considered to be an important process
• Important tool to gain customers loyalty
• Need for effective communication has increased in order to achieve competitive advantage in the market and to earn the trust of customer
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ObjectivesGeneral Objective
To analyze customer perception on banking communication.
Specific Objectives
1. To identify customer’s awareness on banking communication.
2. To measure factor affecting customers understanding on banking communication.
3. To recommend proper management strategy for effective banking communication.
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Review of Literature
• Thematic Review - Concepts: Banking Communication
- History of Banks in Nepal
- Categorization of Banks
- Enlisting of 'A' Grade Banks and their Size
- Commercial Banks and their Total Customers in Service
- Banks and Customer Relation
- Importance of Communication in Banking Business
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Conceptual and Theoretical Review
Shannon &
Weavers Model
Flensburg Model
General Model of Communi
cation
Lenski Model
ECSI Model
Saussure’s speed circuit Model
Research Framework
Model
Effective Leadership
Communication Model
Customer Satisfaction
Model
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Empirical Studies
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Policy Review
Sustainable Development Goals (SDGs) – Nepal (2015-2030)
SDGs Costing Assessment- Nepal (2019)
Right to Information Act (2065)
Government of Nepal Communication Policies (2016)
National Information and Communication Technology Policy (2015)
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Research Gap
• Customer perception on banking communication
• Prospects and challenges of e-banking
• Application of management control system
• Role of information communication Technology
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Conceptual Framework
Modified from Ball et al. (2004))
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Methodology
1. Explanatory Research Design
2. Purposive Sampling
3. Quantitative approach
4. Primary Data
5. Prepared Awareness Index
6. Ordered Logit Model
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Theoretical Model
• The linear regression model could then be specified as:Uj= β′jXi + εi and Uk = β′kXi + εk (1)
• If a customer decides to use option j, it follows that the perceived benefit from option j is greater than the benefit from other options (i.e., k) which is depicted as:
Uij (β′jXi + εj) > Uik (β′kXi + εk), k ≠ j (2)• the probability that j will be used from the set of customers
perception on banking communication options could then be defined as:
P (Y = 1/X) = P (Uij > Uik/X) (3)P (β′JXi + εj − β′kXi − εk > 0/X)P (β′J − β′k) Xi + εj − εk > 0/X)P (β ∗ Xi + ε
∗ > 0/X) = F (β∗Xi)
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Banking Awareness Index
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Ordered Logit Model
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Cont’d
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Result and Analysis
• Socio-demographic Characteristics
50% 50%
Below 20Male
47 1871203
Female 21-40 41-60 61-80
7 125 40 39
Below 1 yr 1-10 yrs 10-20 yrs Above 20 yrs
45 80 124 83 3
Below SEE
UptoH.S
Bachelors Masters Above Masters
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Customer's Perception on Banking Communication in Kathmandu Valley
Particulars Yes No
You have faced communication problem in the bank 148 219
There has been misunderstanding between the banks staff and you 86 279
Bank(s) provides information in time 274 88
Bank(s) provides sufficient time to address your problem 260 41
You always receive message immediately after withdrawal and deposit 283 45
There is problem in understanding the electronic message 52 273
Bank communicates about new schemes when available 187 175
The new changes in bank's advance communication system have fulfilled your
expectation
142 36
You feel hassle in account update 49 129
You are you satisfied with the banking communication practiced by your bank with you 160 20
Does your bank(s) inform that your services, term period are going to expire timely 121 30
There is consistency in communication with you in the bank from past to present 254 90
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Overall Awareness Level
Awareness Level Number of
Customers
In (%
Percentage)
Less Aware 74 19.83
Moderately Aware 193 51.74
Highly Aware 106 28.41
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Factors Affecting Customers Understanding on Banking
Communication• Bank's Level of Cooperativeness with
Customers
Highly co-operative
Co-operative
Moderate
Less co-operative
Not at all
47
176
130
6
4
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Language Used by Bankers to Communicate
Formal48%
Informal 8%
Both43%
Others1%
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Information provided by banks
0
50
100
150
200
250
300
Yes No
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Consistency in Communication
254
90
0 50 100 150 200 250 300
Yes
No
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Advanced Communication System Adopted by Bank
0
50
100
150
200
250
Yes No No Idea
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Expectation of Customers on Advanced Communication System
0 2 4 6 8 10 12 14 16 18
Getting information on time
Improvement in m-banking
Improve Advertisements
Ease lon Service
Security
Improvement in e-banking
Others
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Suggestion for Improvements in Banking Services
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Ordered Logistic Regression ResultBanking communication
awareness level
VARIABLES Coefficient Odds Ratio
age 0.0387
-0.032
1.039425
sex -0.876**
-0.413
0.416423
time_prob 1.866***
-0.503
6.464465
visa_dc -1.069*
-0.627
0.343194
mob_bnk -0.178
-0.525
0.837143
demat 0.934*
-0.568
2.545888
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Multicollinearity
No Multicollinearity Exists
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Heteroscedasticity Test
H0: Constant variance
Breusch-Pagan / Cook-Weisberg test for
Heteroscedasticity
Model Chi2 Prob > chi2
1 3.35 0.0674
The data used for this study is free from Heteroscedasticity
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Conclusion
• Male and female are equally aware about having bank account
• Problem faced by customers, information flow from bankers, communication about schemes, hassle in updates, and satisfaction level indicates the awareness.
• DEMAT facilities should be prioritized
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Recommendations
• Make Customer's Aware about Advanced Communication System Adopted by Banks
• Improvement in Customer Service
• NRB Should Review on Banking Communication Policies
• Provide Adequate Time to Address Customer's Problem
• Promote DEMAT Facility
• Listen ATM Problems Carefully