Evaluation Of E-Commerce(Internet Banking) Adoption In Nepal A Case Study Of Bank Of Kathmandu Limited.

Abstract

As most restrictively defined, electronic commerce is the buying and selling of goods and services, and the transfer of funds, through digital communications. Electronic commerce includes doing business online or selling and buying products and services through web storefronts. The new trends induced by developments in the fields of information and communication technologies are presenting both prospects and challenges for a country like Nepal. These technologies are increasingly redefining competitiveness and changing the way businesses are run thereby signaling a fundamental paradigm shift on the international trade and commerce. In this study I have chosen one commercial bank in Nepal i.e. Bank of Kathmandu Ltd. and the main objectives of this study are to examine demographic characteristics on the bank customer's adoption of E-commerce in Bank of Kathmandu Limited, to assess the level of knowledge and the general opinion of customers regarding E-commerce in Bank of Kathmandu Limited and to identify the impact caused by using E-commerce or E-banking in Bank of Kathmandu Ltd. such as growth in number of customer and bank’s profitability etc. This study is based on both the primary and secondary data. Primary data were obtained by questionnaires, personal interviews, self observation etc. The secondary data are collected from brochures, annual report, other published reports /statements, internet etc. The achieved data were analyzed, processed and are presented with the help of graphical tool and in the table form. The study was carried out by means of a survey amongst 50 customers. This study evaluated factors related to E-commerce (Internet banking) such as demographic characteristics (sex, age group, marital status, employment, monthly income) as well as customer’s knowledge on usage of E-commerce (Internet banking), number of users of E-commerce during five years (20072011) and net profit of the bank during five years (2006/07-2010/11) a case study of Bank of Kathmandu Limited. What emerged from the study was that customers were satisfied with their basic Internet banking experience. What they were not satisfied with, were cost issues and the lack of personalized service. Overall, the study indicates that basic customer’s expectations are being met by Bank of Kathmandu Limited. Study shows that customer’s knowledge on new technology is within the satisfaction level. Nevertheless, due to lack of awareness, trust on technology and low computer literacy rate, customer hesitates to adopt new technology. In order to promote IT culture through E-commerce (Internet banking) in Nepal, public education concerning the use of Internet and E–banking services should be given because Internet skills are important factors that influence customers to adopt Internet banking services.