Awareness and adoption of value added services offered by the banks in Coimbatore district

The Value Added Services not only helps a bank to reduce costs but also helps it to retain its valuable customers. As far as customers are concerned, this facility enables the customer to bank anywhere, at anytime and in any condition. Creation of Value Added Service facilities involve very huge investment; in order to improve the operational efficiency of these facilities the banks should encourage the usage of Value Added Services among the customers. In this context a study was undertaken to understand the awareness and adoption of Value Added Service among the customers by analyzing data collected from 80 sample respondents through personal interview method using Percentage analysis, RBQ, Scaling technique, Chi-square test and Probit analysis.

The results of the study revealed that majority of customers, who aware of Value Added Services were young, graduated and most of them were self employed. Education, monthly income and occupational status were positively influenced the awareness level of Value Added Services. Time saving and comport in using the technology was the important factors influenced the adoption of Value Added Services. The customer had positive perception regarding convenience, quickness, energy and time saving, advantages, security and dependability of Value Added Services. Time saving, easy to use, receiving personalized alerts; data privacy and confidentiality were the customers highly expected from the bank. Technological complexity and security concern are the major constrains faced by the respondents while availing Value Added Services from the banks.