RISK MANAGEMENT IN E-BANKING CUSTOMERS SERVICES: A CASE STUDY OF KARNATAKA BANK LTD (KBL)

The banking sector plays dynamic and predominant role in Indian economy. After
demonetization the customers are shift towards traditional banking practices to Ebanking
practices. The rapid growth of electronic banking customer services which
leads to occurrence of risk management in e-banking customer services. In
connection with e-banking involves a variety of risks, the main risks are the
monitored operational risk, legal risk, security risk, strategic Risks etc. Frequently,
the customers faced operational risks are more compared to the other categories of
risk that should be effect on the optimal activity between bank as well as customer
transactions. The aim of the study is to understand the theoretical background of
different categories of risk management in e-banking customer services in
Karnataka Bank Ltd and to examine the demographic profile of e- banking users of
Karnataka Bank Ltd. and to analysis the operational risks faced by the customers
while using e- banking services and also to assess the legal risks faced by the
customers while operating e- banking services in Karnataka Bank Ltd. Finally the
last part of the study covers security risks faced by the customers while accesses ebanking services in Karnataka Bank Ltd, the sample size for study was only 75 Ebanking
users of KBL. For the purpose of analysis of data based on normality test
applied for non-parametric tests such as, mean, standard deviation, Wilcoxon
Singed Z– Rank Test and Kruskal Wallies Z-Test. Finally this study results majority
of the respondents has been positively opined that break down and time our services
machines, lack of technological awareness, authentication of customers and
confidentiality integrity of transaction and also privacy protection for banking
transaction are the major operational and legal security risks faced the customers of
Karnataka Bank Ltd.