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 ebanking
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 e- banking

services in Karnataka Bank Ltd, the sample size for study was only 75 E- banking
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.