Customer Satisfaction Towards E-Banking Services: a Case Study on Ific Bank Ltd.

Prelude In a constantly ever-changing world of today, where past is replaced by dynamic stage and the dynamic vex is being replaced by more(prenominal) than ch altoge at that placenging future, the old way of lifes of doing things is no longer valid. Change is permanent and a existentity. Those who ar non subject to keep pace with the transmutes be destined to loose the race. acquisition and utilise science is changing the way pecuniary institutions perform their level-headed proceeding. Todays cambers atomic number 18 shaking by these technological changes. Life has never been so easy, comfortable, and luxurious. Science and engineering eat up brought our life sentence to this stage.But a new technology brings with it not moreover the potential for success but withal a never-ending series of questions regarding its design, its value to its put onrs, ultimate utilise and acceptability. E- cambering is the waves of the future. It tins enormous gains to cons umers in marges of courtship and cost of proceedings, exclusively with lucre, telephone or sepa reckon electronic delivery channels. For more consumers, electronic intrusting means 24-hours glide slope to property with an Automated Teller motorcar ( ambiance) or flat Deposit of pay check outs into checking or savings draws.But electronic commiting straightway involves m whatsoever different types of proceeding. E- slanging is a form of depository financial institutioning where funds ar carry-overred by dint of an swap of electronic signals between pecuniary institution, rather than deputize of silver in, cheeks or different negotiable instruments. With the expansion of global Information and Communication Technology (ICT) floor and the profits, e-banking is set to play a pivotal intent in the discipline economy, proper softwargon, radix, cyber low and skilled manpower ar key for the carrying into action of e-banking in a demesne.The concept of e-banking includes both types of banking activities performed done electronic networks. E-banking includes activities desire payment of bills and invoices, transfer of funds between news reports, applying for a loan, payment of loan inst exclusively toldments, sending funds to third break openies via emails or internet connections regardless of where the knob is located. Since e-banking poke outs virtually quick-witted work realiseing both banks and guests compargond with conventional banking system, it has become instant to feature urgency room for the scheduled banks to flourish e- banking.Since e-banking offers some smart run benefiting both banks and guests compargond with traditional banking system, it has become imperative to make necessary room for the scheduled banks to flourish e-banking. Among some others, attractiveness of e-banking includes ? it lowers traffic cost ? post 24-hour supporter ? ensure increased security and control everywhere minutes ? reduces fraud risk ? performs higher volume of proceeding with less clock time ? increases number and volume of value payment by means of banks ? llows remote transactions facilities that replace physical presence of a customer in a bank complexify and ? increases transaction speed and accuracy. On the other hand, traditional banking is time-consuming and more dear(p) and on that pointfore, e-banking is replacing traditional banking all over the world. Especially with the increasing acceptability of digital signatures around the world, e-banking has made life much easier and banking much faster and more pleasant, for customers as well as for bankers. Problem disputation guest rejoicing is required for the banking sector to overdress profitability, business offshoot and success.Customer perception is very important to minimal brain dysfunction value of the banking run and products. E-banking is the waves of the future. It bed provide speedier, faster, reliable work to the customers for which they argon relatively happy. It provides enormous benefits to consumers in bournes of case and cost of transactions, any through internet, telephone or other electronic delivery channels. A new technology brings with it not only the potential for success, but in alike(p) manner a never-ending series of questions regarding its design, its value to the employmentr, its ultimate habituate of goods and go and acceptability.Although there has been signifi brooknistert effort made to eliminate paper- ground payment transactions, the basic way of handling payments by consumers has not changed. The study has been on a lower floor postulaten to evaluate the reaction of the customers towards the e-banking function. inquiry Objectives E-banking function provide smart replacement of traditional banking aids and benefit both the bankers and the customers. But in Bangladesh, payable to presence of some constrains, e-banking is not flourishing as it should do.The main objective of this query study is to run across bring out the reaction of the customers towards the e-banking serve. In this context, the specific objectives would be to observe ? The types of e-banking facilities a bank, in this case IFIC stick Ltd. , offers to its customers ? The factors that satisfy the customers in receiving e-banking facilities offered by the bank ? The constraints the customers face in adopting e-banking facilities ? The appearations and recommendations of the customers towards e-banking dishs. Literature Re turn over A. E- deposeing in BangladeshIn Bangladesh, e-banking facilities argon but to be fully developed although some technology goaded products and run harbor been in achievement over the last fewer years. The existing technology driven products and services offered by the traditional banks ar automatic teller machine services, calculate plank and deferred payment control panel, transactions through POS terminals , inter- counterbalance online transactions through individualized online closed network of individual bank, hold customer services provided through internet and membership of lively allowing scheduled banks to collect wireless transactions oddly e-transactions.All these technology found products and services take for obviously unlocked the way to step toward e-banking. Moreover, as a part of modernizing national payment and settlement system, Bangladesh Automated clearing augury ( bachelor) that includes Bangladesh Automated Cheque Processing constitution (BACPS), and Bangladesh Electronic lineage head Network (BEFTN), is being implemented down the stairs the Remittance and fees Partnership (RPP) abide of the Bangladesh blaspheme funded by DFID-UK is expected to speed up the adoption of e-banking as well. E-banking at per worldwide standard is yet to develop in Bangladesh.At present, several clandestine mer butttile banks (PCBs) and foreign commercial banks (FCBs) offer control services of telebanking, internet banking, and online banking facilities working deep down the classes of individual bank in a closed network environment. As a part of stepping towards e-banking, the FCBs work played the pioneering role with adoption of modern technology in sell banking during the early 1990s whereas the state-owned commercial banks (SCBs) and PCBs came forward with such(prenominal) services in a limited scale during the late 1990s.Moreover, the banking industry as a whole, except for the quaternary specialized banks (SBs), rushed to offer technology based banking services during the middle of the current decade. Online slanging Transactions in online banking be performed in spite of appearance closed network for which the customer utilisation specialized softw ar provided by the respective bank. International standard online banking facilities be expanding in Bangladesh.At present, 29 scheduled banks offer both branch banking facilities t hrough their respective bank online network that provides facilities like transaction through either branch infra the respective bank online network payment against pay order or pay order encashment, demand draft encashment, opening or salvation of FDR from all branch of the selfsame(prenominal) bank remote fund transfer, cash withdrawal method, cash deposit, broadsheet statement, clearing and balance interrogative within branches of the same bank and L/C opening, loan repayment facility to and from each branch of respective bank beneath its own online network.Inter-bank transactions or transaction between inter bank branches ar yet to expand. nether the modernization program of the National Payment and objurgatetlement System, Bangladesh Automated Clearing House (which includes Bangladesh Automated Cheque Processing System and Bangladesh Electronic Fund Transfer Network) came into effect from September 2009 followed by murder of online banking at per foreign standard in near future. meshwork sticking Internet banking refers to the use of internet as a remote delivery channel for banking services which permits the customer to conduct transactions from all terminal with access to the internet. It is the WWW through which banks back reach their customers directly with no intermediaries. Internet banking in professedly sense is serene absent in Bangladesh.Only 7 out of 47 banks atomic number 18 providing some banking services via internet that include account balance interrogatory, fund transfer among accounts of the same customer, opening or modifying term deposit account, cheque book or pay order request, exchange rate or interest rate enquiry, bills payment, account summary, account details, account activity, standing instructions, loan repayment, loan information, statement request, ,cheque status enquiry, stop payment cheque, refill prepay card, password change, L/C application, bank vouch application, lost card (debit/ creed) reporti ng, pay computer hyperkinetic syndromeress card dues, view faith card statement, or check balance. The core banking activities like fund transfer to third party, cross border transactions and so on are still uncovered by internet banking offered by the scheduled banks in Bangladesh. Mobile cashboxing Mobile banking ( excessively known as M-banking or SMS banking) is a term used for performing balance checks, account transactions, payments etc. via a prompt device such as a officious phone. Mobile banking is approximately often performed via SMS or the Mobile Internet but can also use special programs called clients downloaded to the mobile device.The standard package of activities that mobile banking covers are mini-statements and checking of account history alerts on account activity or notch of set thresholds monitoring of term deposits access to loan statements access to card statements mutual funds/equity statements insurance policy management subvention plan management status on cheque, stop payment on cheque ordering check books balance checking in the account upstart transactions due run across of payment (functionality for stop, change and deleting of payments) PIN provision, change of PIN and reminder over the internet blocking of (lost/stolen) card game interior(prenominal) and international fund transfers micro-payment handling mobile recharging commercial payment bear on bill payment processing peer to peer payments withdrawal at banking agent and deposit at banking agent. Despite huge prospects, only a few banks adopted mobile banking in Bangladesh during the last year. Tele Banking Tele banking refers to the services provided through phone that requires the customers to control a particular telephone number to lead access to an account which provides several options of services.Despite huge potential, telebanking services wipe out not been widened enough in daily banking activities in Bangladesh. Only four banks so far provide a few options of telebanking services such as detail account information, balance inquiry, information roughly products or services, automatic teller machine card activation, cheque book related service, bills payment, credit card service and so on. Funds transfer between current, savings and credit card account, stock exchange transactions etc are still unapproachable through telebanking in Bangladesh. B. Prospects of e-Banking in Bangladesh E-banking is now a global phenomenon. isolated from the developed countries, the developing countries are experiencing strong growth in e-banking.The politicss emphasis on building a digital Bangladesh, orbit up ICT park, raising allocation for developing ICT infrastructure, waiving taxes on computer peripherals and other measures including the automation program of banking sector led by the Bangladesh Bank and disceptation among the scheduled banks in improving customer services work accelerate the prospects of e-banking in Bangladesh. B angladesh Bank is implementing the RPP project for modernizing national payment and settlement system. The bach including BACPS and BEFTN has started functioning from September 2009 followed by the development of inter-bank online network. The project plans to go for real time gross settlement (RTGS) by 2012. It has been made mandatory for all head offices of the scheduled banks to be connected with Bangladesh Bank for satisfying BACH and BEFTN.These efforts would allow the scheduled banks to be connected to each other for conducting inter-bank online transactions in near future and this would smoothen the introduction of e-banking in Bangladesh. Internet services came to Bangladesh with connectivity in 1996. Digital telephone exchanges lead been planted in 389 upazilas and 17 growth centres. Work is underway to cover the rest of the upazilas under digital exchange system. Meanwhile, Bangladesh has joined the information super-highway by connecting itself with international elect ric ray cable system in 2006. A total of 159 Internet wait on Providers (ISPs) deport now been connected with this system of which 64 are actively providing services. Internet connection is slow with bandwidth range 32 kbps to 56 kbps for dial up and 64 kbps to 8 mbps for broadband.The establishment of internet exchange is under implementation. Encryption laws to accept electronic authentication of transactions has been enacted in 2006 and interpreter over Internet Protocol (VoIP) has been legalized. Under this scenario, as a part of regime decision of building digital Bangladesh, the existing capabilities of ICT sector is potential to increase rapidly in bringing all upazilas under internet services and this exit contribute in widening the scope of e-banking throughout the country. Although all branches of FCBs and 99% branches of PCBs were computerized by December 2006, the average for all bank branches was 37% since only 4% and 16% of SBs and SCBs respectively were computeriz ed.Out of a total of 6,565 branches in 2006, 2,426 were computerized of which 651 branches of 22 PCBs and 7 FCBs together were providing any-branch-banking facility under respective bank online network. During the period, the number of ATM booths and POS terminals stood at 478 and 4,647 respectively lotion important merchant outlets in six divisional cities and some other important district towns in Bangladesh while 43 banks became the member of SWIFT and 25 banks adopted router connection. Since about 50% of total bank branches kick the bucket to SCBs spread throughout the country including the rural areas, ICT penetration is crucial for this kinfolk of banks. The recent corporatization of the NCBs, would influence the banks in this category to be competitive through improving their service quality incorporating the use of modern technology.Although all these are positive developments, more attention is needed to enhance ICT capabilities of the banking system especially the SCBs for successful implementation of e-banking all over the country. Although e-banking has bright prospects, it involves some fiscal risks as well. The major risk of e-banking includes operational risks (e. g. security risks, system design, implementation and maintenance risks) customer misuse of products and services risks legal risks (e. g. without proper legal support, money laundering may be influenced) strategic risks reputation risks (e. g. in case the bank fails to provide secure and trouble free e-banking services, this result cause reputation risk) credit risks market place risks and liquidity risks.Therefore, identification of germane(predicate) risks, and formulation and implementation of proper risk mitigation policies and strategies are important for the scheduled banks while performing e-banking. In Bangladesh, contempt huge demand from the business comm unit of measurementy as well as the retail customers curiously the urban customers, the expansion of e-banking is beset with several infrastructural, institutional, and regulatory constraints such as unavailableness of a backbone network connecting the whole country want of reliable and secure information infrastructure especially telecommunication infrastructure sluggish ICT penetration in banking sector insufficient legal and regulatory support for adopting e-banking and so on.In Bangladesh, telephone connectivity is inadequate, cost of PCs are still beyond purchasing capacity of most people, internet connection is costly, IT literacy is yet to reach satisfactory level, banking sector insufficiencys skilled IT personnel, and huge investment requirement for establishing technology based banking services are prime drawbacks. Despite the constraints, efforts by the Bangladesh Bank in modernizing the countrys payment system and commitment by the government in building Digital Bangladesh have brought competition among the scheduled banks to alter banking services and rapidly adopt e-banking on a wider scale. Research objectiveSince the interrogation is conducted to find out the factors that satisfy the customers towards e-banking, the constraints they face in adopting e-banking facilities and their expectations and recommendations towards e-banking, the research is particularly suited as an exploratory research. Data Collection Methods For the conclusion of the study both primary and secondary entropy have been used. capital selective information have been collected from the customers through depth interview with the succor of a questionnaire, which is attached with this report in Appendix I. In case of secondary information, the data has been collected from the websites, brochures, annual reports, and manuals of IFIC Bank Ltd. Sample contriveThe target population for the study was all the customers of IFIC Bank Ltd. who receive e-banking services from the bank. Elephant Road Branch of IFIC Bank Ltd. is selected as the sampling unit. All the customers of the bran ch who have used e-banking services constituted the sampling frame. A pattern size of 30 customers has been selected. The sample was selected utilise convenience sampling. Analysis qualitative synopsis of the facts found through depth interview of the customers and secondary data collected through other sources is done throughout the research. This qualitative psychoanalysis is totally a judgmental analysis of the researcher. Here, no quantitative analysis is done.To find out the reactions of the customers towards e-banking services it is essay to find out whether the customers use the e-banking services oftentimes people of which moving in use the service frequently if the customers are comfortable with using the e-banking services or not if they are satisfied what factors make them satisfied if the customers are facing constraints, what type of constraints they are facing what the customers suggest to diversify forth those constraints and lastly what the customers expect more from the bank regarding e-banking services. Overview of IFIC Bank Ltd. International pay Investment and Commerce Bank Limited (IFIC Bank) is a banking alliance incorporated in the Peoples Republic of Bangladesh with limited liability. It was set up at the instance of the Government in 1976 as a joint venture between the Government of Bangladesh and sponsors in the private sector with the objective of working as a finance company within the country and setting up joint venture banks/financial institutions abroad. The Government held 49 per cent lucks and the rest 51 per cent were held by the sponsors and general public.In 1983 when the Government allowed banks in the private sector, IFIC was converted into a full-fledged commercial bank. The Government of the Peoples Republic of Bangladesh now holds 35% of the dish out capital of the Bank. Leading industrialists of the country having vast make in the field of trade and commerce own 34% of the share capital and the rest is h eld by the general public. The Banks guardianship is to provide service to the clients with the dish of a skilled and dedicated work force whose creative talents, innovative actions and competitive edge make its position comical in giving quality service to all institutions and individuals.The bank is attached to the welfare and economic prosperity of the people and the community, for it drives from them the inspiration and drive for forward progress to prosperity. The bank wants to be the leader among banks in Bangladesh and make ineradicable mark as an active partner in regional banking in operation(p) beyond the national boundary. In an intensely competitive and complex financial and business environment, we particularly focus on growth and profitability of all concerned. Milestones in the development of IFIC BANK 1976 Established as an Investment &038 Finance Company under arrangement of joint venture with the govt. of Bangladesh. 1980 Commenced operation in Foreign Excha nge Business in a limited scale. 1982 Obtained authorization from the Govt. to operate as a commercial bank. dictated up a its first overseas joint venture (Bank of Maldives Limited) in the Republic of Maldives (IFICs share in Bank of Maldives Limited was subsequently sold to Maldives Govt. in 1992) 1983 Commenced operation as a full-fledged commercial bank in Bangladesh. 1985 Set up a joint venture Exchange Company in the Sultanate of Oman, call Oman Bangladesh Exchange Company (subsequently renamed as Oman International Exchange, LLC). 1987 Set up its first overseas branch in Pakistan at Karachi. 1993 Set up its second overseas branch in Pakistan at Lahore. 1994 Set up its first joint venture in Nepal for banking operation, titled Nepal Bangladesh Bank Ltd. 1999 Set up its 2nd joint venture in Nepal for lease financing, titled Nepal Bangladesh Finance &038 leasing Co. Ltd. which was merged with NBBL in 2007 2003 Overseas Branches in Pakistan amalgamated with NDLC, to establish a joint venture bank NDLC-IFIC Bank Ltd. , subsequently renamed as NIB Bank Ltd. 2005 Acquired MISYS solution for real time on-line banking application. centerfield Risk Management implemented. 2006 Corporate Branding introduced. Visa Principal and nonnegative (Issuer and Require) Program Participant Membership obtained. 2008 Observing 25th Anniversary of Customer Satisfaction. 2009 64 Branches crack Real Time On-line banking facility. function Offered by IFIC Bank Ltd. Corporate Banking IFIC Bank is providing a wide range of financial services, crack specialist advice and products to corporate clients to meet diverse demands of changing market scenario. merchandises and services for commercial and business customers include Working Capital Finance, stray Finance, Term Finance, Trade Finance, Lease Finance, Syndication Loan etc. retail BankingRetail Banking is mass-banking facility for individual customers to avail banking services directly from the wi de branch network all over the country. The bank provides one-stop financial services to all individual customers through its innovative products &038 services to cater their need. With a view to provide faster and more convenient centralized online banking services, now, all its branches have been brought under the real time online banking system. IFIC Bank offers a wide mixing of deposit products, loan product &038 value added services to suit the customers banking requirements. Products and services for individual customer include Consumer Finance, Deposit Product, humour, NRB Account, student File, SMS Banking etc. SME BankingThe growth of olive-sized and Medium enterprises (SMEs) in terms of size and number has multiple effects on the national economy, specifically on employment generation, GDP growth, and poverty alleviation in Bangladesh. At present, Small &038 Medium Enterprise sector is playing a vital role in creation of new generation entrepreneurs and Entrepreneurs C ulture in the country. Experience shows that borrowers of junior-grade enterprise sector prefers collateral free loan since normally they cannot offer high value security to cover the exposure. To facilitate SME sector of the country, IFIC Bank provides collateral free credit facilities to the small &038 medium entrepreneurs across the country whose access to traditional credit facilities are very limited.The bank is offering 15 different products for selected target groups, such as Easy technical Loan, Retailers Loan, Muldhan Loan, Women Entrepreneurs Loan (Protyasha), Transport Loan, Working Capital Loan, protrude Loan, letter of Contractors Loan, Bidders Loan, Working Capital Loan, Project Loan, Letter of Guarantee, Letter of realization Loan against Imported Merchandize (LIM), Loan against Trust Receipt etc. E-Banking work Offered by IFIC Bank Ltd. Since the beginning of its journey as a commercial bank in 1983, IFIC Bank has been giving great emphasis on the adoption of m odern technology. It became the pioneer in the field of automation by introducing computerized branch banking right in the same year.Subsequently, all the branches were brought under connatural automated platforms with upgraded software applications to offer all the critical banking features. At present all 82 domestic branches are fully computerized under networked environment. The Bank has taken up a new project with Misys International Banking System Inc. (UK) to further upgrade its banking operation to state-of-art world class on-line banking solutions to provide faster and even more convenient centralized services to the clients. Besides, the Bank is also operating fully on-line Automated Teller Machine (ATM) services under the banner Q-Cash at a number of locations in Dhaka and Chittagong. The ATM facilities are in stock(predicate) to the customers at Q-Cash booth. At present, there are five ATM booths of the bank. IFIC Bank Ltd. or achieving customer satisfaction and for su rviving in this competitive market has concentrated on offering different types of e-banking services to its customers. Different e-banking services offered by the bank are fully online branch banking facilities, credit card, debit card, prepaid card, SMS banking facilities etc. IFIC consultation Card IFIC Bank endorse Credit card are issued in two types namely Gold and Classic for both local and international use. The Local Cards can be used at any ATM displaying endorse Logo for withdrawal of cash and at any POS displaying endorse Logo for purchase of goods &038 services within Bangladesh whereas the International Cards can be used at any ATM and POS displaying VISA logotype anywhere in the world.International credit card is a dual currency card and as such one can use the same plastic at home &038 abroad. Classic cards are for lower limits and less costly. IFIC credit cardholders can make merry 20 to 50 days interest free period depending on the date of transaction and the date of statement generation. Interest free period will not be allowed for cash advance. The customers can repay any mensuration not less than the minimum payment due within the due date and keep account regular to enjoy revolving credit facility. Customers can enjoy credit facility at lower interest rate of 2% per month. Customers can enjoy cash withdrawal facility up to 60% of the credit limit through ATMs.One can enjoy up to 100% of your credit limit through Bank POS from any branch of IFIC Bank Limited. First two supplementary cards are free. Customers can select any two from their near &038 dear persons and channel them supplementary credit cards. They can also enjoy and share their credit limit. They can also allow specific limits for them within their credit limit. No interest will be calculated on the amount other than cash advance if the total billing amount is paid within the payment due date. In case of part payment or no payment, interest 2% per month will be applied from the date of transaction on daily product basis until the great(p) balance is fully paid.IFIC calculate Card IFIC Bank VISA Debit Card can be used at any ATM displaying VISA Logo for withdrawal of cash and at any POS displaying VISA Logo for purchase of goods &038 services within Bangladesh. ATM transactions are to be secured by Personal Identification Number (PIN) known by the concerned customer only. POS transactions will not require PIN. However, all the transactions are to be authorized by the system electronically. IFIC debit card is issued against any individual savings/ current account well-kept with any branch of IFIC Bank Limited. The designated savings/current account can be operated by using the debit card without using cheques any time.The customers are not required to pay any charge for transactions at Merchant Point of Sale (POS) for purchasing goods and services. For cash withdrawal from ATM/Branches, a little charge may be applied. No interest will be calculate d on cash withdrawal or purchases. No minimum amount due and no difficulty of payment of monthly bills. IFIC prepaid Card IFIC Bank VISA prepay Card can be used at any ATM displaying VISA Logo for withdrawal of cash and at any POS displaying VISA Logo for purchase of goods &038 services within Bangladesh. ATM transactions are to be secured by Personal Identification Number (PIN) known by the concerned customer only. POS transactions will not require PIN. However, all the transactions are to be authorized by the system electronically. prepay card is safer than carrying cash and more convenient than writing cheques. IFIC Prepaid card is issued by the branches instantly on filling-up the Application Form and make initial deposit. There is no need to have any account with the Bank. Prepaid card are suitable for the customers who does not maintain any account with IFIC. No interest will be calculated on cash withdrawal or purchases. No minimum amount due and no hassle of payment of m onthly bills. Bank POS are available at all the branches of the Bank. Any IFIC Card Holder can withdraw cash from any branch of IFIC Bank Ltd. through Bank POS. Credit Card Holders can withdraw cash up to 100% of their credit limit. SMS Banking IFIC Bank Ltd. atered the demand of time in the era of modern banking technology through SMS Banking Service. It is indeed a fast, secure, convenient, economical and quickest way of banking. The service is available round the clock seven days a week. Customers can check their balance, account information, or even get your mini account statements through IFIC SMS Banking Service by using their mobile phones. Services available by SMS banking are as follows Account Service ? Balance Enquiry ? mini Statement Request (Last 5 Transactions) ? Foreign exchange Rate enquiry ? Fixed Deposit Rate enquiry ? Interest Rate enquiry ? Branch Location enquiry ? PIN Change ? Bank Product Information ? Greetings Loan Installment telling (overdue) ? Any other work Card Services ? Current Outstanding Balance ? Mini Statement Request ( Last 5 Transactions) ? Minimum Payment Due ? Payment Due Date ? Payment Due Alert ? Transaction Notification Analysis The concept of e-banking includes all types of banking activities performed through electronic networks. In Bangladesh, despite huge demand e-banking is not flourishing as it should do. On the other hand, customer satisfaction is required for the banking sector to stimulate profitability, business growth and success. Customer perception is very important to add value of the banking services and products.Through this study it is tried to find out whether the customers are appreciating the e-banking services offered to them or not factors that satisfy them in receiving e-banking services from banks the constraints they face regarding this affair and what they expect from the banks regarding e-banking services. For conducting the research, data from both primary and secondary sources are coll ected. primary coil data are collected by doing depth interview of the customers with the help of a questionnaire, which is given in the Appendix I. This research study is based on the case study on IFIC Bank Ltd. The sampling unit is the Elephant Road branch of the bank and 30 regular customers of the branch are used as sample for conducting the research.To find out the reactions of the customers towards e-banking services it is tried to find out whether the customers use the e-banking services frequently people of which occupation use the service frequently if the customers are comfortable with using the e-banking services or not if they are satisfied what factors make them satisfied if the customers are facing constraints, what type of constraints they are facing what the customers suggest to diversify away those constraints and lastly what the customers expect more from the bank regarding e-banking services. The research is an explorative research. That is why only qualitative r esearch has been done on the facts found through depth interview and on the basis of secondary data collected. genius of Respondents The research is conducted based on the opinion of 30 regular customers of IFIC bank Ltd. , Elephant Road branch. Of the respondents 4 customers are businessman, 15 are service holders, 4 are students, 5 are housewives, 1 is teacher and 1 is a retired banker. Among the respondents, 11 respondents are female and the rest of them are male. Types of E-banking Services employ by the RespondentsIFIC Bank mainly provides 5 kinds of e-banking services, namely, online transaction, debit card, credit card, prepaid card, SMS banking service. Other than these ATM booths and POS terminals of the bank or other ones having VISA logo provides e-banking services to the customers. Among the respondents, all of them use online transactions 23 customers use debit cards 10 customers use credit cards 11 customers use SMS banking facilities. Among the customers no one uses prepaid card service. Frequency of Usage of E-banking Services by the Respondents Among the respondents, 9 customers use e-banking services highly frequently 13 of them use with medium frequency and 8 of them use with low frequency. business community and some of the service holders use e-banking services highly frequently. somewhat service holders and students use with medium frequency and lastly rest of the service holders and housewives, generally, use with low frequency. Factors Satisfied the Customers regarding E-banking Services IFIC Bank has started offering e-banking services to its customers only recently, which is not more than 2 years. So the customers, who do regular transactions in the bank, are very satisfied with the type of e-banking services they are receiving from the bank. All the customers of the bank can enjoy online banking facilities. Even two years before there was branch banking system. So, the customers had to go to branch to branch for their transaction making purposes.But now, with the introduction of online banking, they can do their transactions from any branch in Bangladesh without any encumbrance. Recently, all the 82 branches of the bank are providing online banking services to the customers. So, the customers are feeling it convenient to uses e-banking services. Usage of debit and credit cards has made customers life easy. People do not have to go to branches to withdraw money. Rather they can use the ATM booths of the bank or other ones showing VISA logo and withdraw money. They can also check their account balances and get mini statements of their accounts using ATM booth. Customers can use POS terminals showing VISA logo to purchase goods and services and pay bills. SMS banking also has made customers life easy.They can use their mobile phones for balance checking, getting any kind of relevant enquiries or for making relevant requests. So, the customers are feeling it is easy to use e-banking services as it saves a lot of time and cost. well-nigh customers feel it is safe to use e-banking facilities. A lots of paperwork and manual work has been eliminated with the introduction of e-banking services, which reduces the chance of errors. consort to above analysis, it is found that the factors for which customers are satisfied with e-banking service are convenience, availability of quick services, easy services and safety. Constraints Faced by the Customers Many of the respondents have said that they are facing constraints using e-banking services offered by IFIC bank.Some customers say that they cannot depend on the e-banking services, like debit cards, credit cards. They have the fear of security. They have some misconceptions regarding these services. They say that, it would be easier for others to do deceitful activities with their accounts or cards if they use them. For this reason, some customers do not use these services although they bear the cards. Some customers have lack of awareness regar ding the benefit of e-banking services. They are not aware of safety, easiness and benefit of using e-banking services. Some customers have lack of dependency on e-banking services. They rather feel it safe to do TT rather than doing online transactions.They do not understand the speediness of using e-banking services and like traditional and manual work. Some customers find it costly using e-banking services. Cost of using debit cards and credit cards are very high according to them. Again, the bank has only 5 ATM booths of its own and POS terminals are available only in the branches, which does not bear extra cost, but they are only few in number. Other organizations ATM booths and POS terminals cost extra charges which the customers do not like to bear. According to above discussion, it is found that the constraints the customers face are fear of security, lack of awareness, lack of dependency, and cost.Expectations and Recommendations of the Customers Regarding E-banking Service s According to the customers, the expectations from the bank and recommendations for the bank are as follows ? The bank should install more ATM booths of its own to different locations to make it available, easy, convenient and less costly for the customers to use the facilities. ? The bank should have some programs to create awareness and increase dependency about the products they offer to customers. The bank can distribute brochures, leaflets to its customers making known them about advantages of using the services. The bank can also send letters to the customers informing about the products.Some customers have requested that it would be better if the letters are sent in Bangla rather than in English. ? As some customers think that using e-banking services are costly for them, the bank may reduce the cost of these services or may give some discounts. ? The bank should concentrate more on the safety of the services. ? The bank should do more advertisement about their products. So me customers are not even aware about the SMS banking service and the prepaid card service is offered by the bank. ? The bankers should be more accommodating in making the customers aware and understand about the new e-banking services offered by the bank. ConclusionCustomer satisfaction is required for the banking sector to raise profitability, business growth and success. Customer perception is very important to add value of the banking services and products. E-banking is the waves of the future. It can provide speedier, faster, reliable services to the customers for which they are relatively happy. It provides enormous benefits to consumers in terms of case and cost of transactions, either through internet, telephone or other electronic delivery channels. A new technology brings with it not only the potential for success, but also a never-ending series of questions regarding its design, its value to the user, its ultimate use and acceptability.The research has been undertaken to evaluate the reaction of the customers towards the e-banking services. The research was an exploratory research. Qualitative analysis of the data collected from both primary and secondary sources are done. Primary data was collected by doing depth interview of the customers of Elephant Road branch IFIC Bank Ltd. Sample size was 30. According to the analysis the factors for which make customers satisfied with e-banking service are convenience, availability of quick services, easy services and safety. The constraints the customers face from receiving e-banking services from the bank are fear of security, lack of awareness, lack of dependency, and high cost.The customers expect that the bank should be more careful and concentrate on informing the information about the newly launched products to its customers to increase awareness and dependency on those products. The bank should make the services more convenient to the customers. And it should also take care of the security matters of the customers. &8212&8212&8212&8212&8212&8212&8212 Target Population All the customers of IFIC Bank Ltd. who use e-banking services offered by the bank Sampling Unit Elephant Road branch of IFIC Bank ltd. Sampling Frame Name of all the customers of the branch who have used e-banking services Sample Size 30 Sampling technique Convenience Sampling Exhibit 1 Sample Design