Table of Contents

Serial No. Chapter No Title

1 Chapter-1 Introduction

1.1 Topic

2 Chapter-2 Aim, objectives and scope of study

2.1 Aim

2.2 Objectives of Study

2.3 Scope of the Study

3 Chapter-3 Research Methodology

3.1 Introduction

3.2 Research approach

3.3 Research methods

3.4 Data Collection Techniques

3.5 Sampling technique

4 Chapter-4 Data Analysis & Interpretation

5 Chapter-5 Findings

6 Chapter-6 Limitations

7 Chapter-7 Conclusions & Recommendations

7.1 Annexure
 ACKNOWLEDGMENT

It is really a matter of pleasure for me to get an opportunity to thank all the persons who
contributed directly or indirectly for the successful completion of the project report, “customer
satisfaction with respect to digital banking’’

I wish to express my gratitude to Mrs Roshi Purdhani (Branch Manager) of HDFC BANK,
Channi Himmat Jammu for giving me an opportunity to be a part of their esteem organization
and enhance my knowledge by granting permission to do a summer training Project. They
provided me with their assistance and support whenever needed, which has been instrumental
in completion of this project.

I am thankful to them, for their support and encouragement throughout the tenure of the
project. Also I am thankful to Ms Shapath Mahajan (Relationship Manager) for being a source
of support during this training period.

I am grateful to all the staff members of HDFC Bank for their kind cooperation and help during
the course of my project. Lastly, I would like to thanks to the ALMIGHTY and my parents for
their moral and financial support and my colleagues with whom I shared my day-to-day
experiences and received lots off suggestions that improved my work quality.
 EXECUTIVE SUMMARY

In this study, it was aimed to critically analyze the Customer satisfaction with respect to digital
banking. The survey for this study was conducted over 80 people in the Jammu city. The
instrument of study used was questionnaire. The respondents were asked to fill their
background details regarding name, age, occupation, literacy level etc. and few HDFC specific
questions related to the digital banking services.
The study was conducted on the customers of HDFC bank. The study was conducted on the
respondents aging from 10 years to above 70 years. The job profile of the respondents was
homogenous comprising of students, salaried people, businessmen, professionals etc. The
survey was conducted on respondents from different literacy level i.e. illiterate, high schools,
degree holder, post graduates etc. The report introduces the title of the project, i.e.
“CUSTOMER SATISFACTION WITH RESPECT TO DIGITAL BANKING”. It was
observed that most of the respondents prefer other banks in comparison to HDFC.
Consumers believe that HDFC should improve upon its service, reduce the extra charges on its
services as well as reduce the amount for opening an account to attract more customers. It
should also build strong long term relationship with its customers.
It can be concluded that the respondents who were HDFC customers were satisfied with the
services it provided.
CHAPTER 1
INTRODUCTION
1.1: INDIAN BANKING INDUSTRY
Banking in republic of India is a particularly vital tool for the country and therefore the folks.
It helps building up the imperative areas of the economy and has brought out the desire of
having a secure future of many people into reality. However, it’s still trying various techniques
to do the same for the whole country.

Before the emergence of the twentieth century, extortionate lending of money or cash loan at
a high premium rate (usury) was usually carried out in rural India. The banking sector has
profited incomprehensibly from the increase in discretionary income of the individuals within
the country. The ramp-up of transactions through ATMs and internet/mobile banking have been
there. Thus, the diverse banks have contributed significantly to building their network and their
customer reach. Indian banks have received better operational systems and updated their skills.
They have withstood the hidden problems and have turned out to be more adaptable to the
advancing condition. In the confounding and fast advancing situation, the fundamental
supportable high ground for banks is to give the customer a perfect blend of development and
standard administration.

The Indian banking industry, which is administered by the RBI Act, 1934. They can be divided
into two broad categories, scheduled banks and non-scheduled banks. Commercial banks and
cooperative banks form a part of the scheduled banks that are included in the second schedule
of the law. Non-scheduled banks, on the other hand, are banks that are not listed in the second
schedule of the RBI Act are considered as non-scheduled banks. They, similar to scheduled
banks, are required to maintain the statutory limit but they need not maintain it with the RBI,
and can keep it to themselves, unlike scheduled banks which are required to maintain the limit
with the RBI.

A few banks operating as Private Sector Banks in India are HDFC Bank, IDBI Bank, SBI,
Bank of Rajasthan Ltd. and the Public Sector banks include Punjab National bank, Union Bank,
Oriental Bank, Allahabad Bank and many more.

The Indian banking sector has shown sturdy progress over the last decade and has has upheld
the nation's economic progress. However, it's seen difficult times over the past three years
driven by an uncertainty within the external surroundings as well as discontinuities within the
macroeconomic scenario, shifts in client conduct, administrative changes, innovation
disturbances and human capital crunch. This recent decline in banking outcomes has
additionally reemerged issues with industry structure and context and conduct of banking
players. The banking sector ought to emerge sturdy and positioned to support India’s economic
progress over the next few years. The RBI has never set up banks to face the risks and has
always remained a control body for the management of the banking system.
1.2 HISTORY OF BANKING INDUSTRY IN INDIA

Banking in India began in the first decade of the eighteenth century with The General Bank of
India appearing in 1786. Bank of Hindustan took its precision. These two banks are currently
inoperative. Post this, the government has set up three presidential banks in India. The first of
these was the Bank of Bengal, which obtained a sanction in 1809, the other two banks of the
presidency, namely the Bank of Bombay and the Bank of Madras, were created respectively in
1840 and 1843. These Banks of the presidency were incorporated into the Imperial Bank of
India (IBI) under the Indian India Imperial Act of 1920, currently known as the State Bank of
India.

After several decades, foreign banks such as Credit Lyonnais began their operations in Calcutta
in 1850. Nearly, Calcutta was the main dynamic trading port, mainly due to the exchange of
the British Empire, and because of this Banking activity was there and prospered. .

In the 1900s, the market expanded with the founding of banks such as Bank of India in 1906
in Mumbai and the National Bank of Punjab in Lahore in 1895, both of which were privately
owned. The Reserve Bank of India officially assumed responsibility for the management of the
Indian banking sector from 1935. Publishing the country's independence, it was nationalized
and endowed with broader powers as banking institutions develop and become progressively
complicated through deregulation, innovation and mechanical modernization, it is essential to
maintain harmony between efficiency and security. Over the past 30 years, there have been
many changes in financial markets and the banking sector as a result of financial sector reforms.
Banks lose their traditional image and innovate, improve and take on new services to meet the
ever-increasing needs of their clients. Banks have had tremendous flexibility to describe their
own strategies. The rapid upgrading of technology has significantly reduced transaction costs,
facilitated greater diversification of the portfolio and improved delivery of credit to banks.
Prudential standards, in accordance with universal principles, have been put in place to advance
and improve the efficiency of banks. The process of strengthening the organization has been
strengthened with a few measures in the areas of debt collection, asset reconstruction and
securitization, consolidation, convergence, mass banking, etc.
Despite this honorable advancement, the main issue has been reflected in a decline in
profitability and productivity, and the disintegration of banking sector profits. There has been
a deterioration in the quality of the loan portfolio which, as a result, has become an obstacle to
the bank's income generation and the improvement of its capital funds. The insufficiency of
capital has added to the insufficiency of credit, which translates into an adverse impact on the
confidence of the depositor and the investor. The Government therefore established the
Narasimham Committee to investigate issues and lay down guidelines for improving the
soundness of the budgetary framework.
Recognition of the Narasimham Committee's suggestions by the Government has also brought
about changes the enormous and rapid expansion and expansion of banking has not occurred
without its tensions. The banking sector is entering another stage where it will face the rivalry
of non-banks, not only in the domestic market, but also in international markets. The operating
structure of the Indian banking system is based on experiencing a significant change in the
following decade. With the emergence of new private banks, the private bank side has moved
to move forward and improve with wholesale and retail banking. Existing banks have a wider
branch network and extend over a wider geographic area, while new private banks are
influenced by massive capital, reduced labor, experience in the development of sophisticated
financial products and the use of cutting-edge technology.

In the final phase, the industry will provide a good account to itself with the combined efforts
of cooperative banks, regional rural banks and development banking institutions that should
provide a sufficient range of efficient outlets to address the societal challenges -economic. The
next two decades. The electronic era also hit the industry, resulting in rapid electronic funds
transfer. However, the development of e-banking has also created new areas of risk such as
information and security integrity that require new risk management techniques.
1.3 CURRENT SCENARIO

There are various set of transformations that are taking place in the nation's banking industry.
On the one hand, private banks are strengthening their positions through mergers and
acquisitions. The public sector banks, which are basically the pillars of the Indian banking
system, get rid of their labor force, which is more than desirable. The private sector banks are
moving at a fast pace for the purpose of modifying the outdated saving money plans by
administrative developments whereas the PSBs are encumbered with NPAs, decreasing income
from traditional sources and lack of innovation as well as huge set of workforce. Currently
PSBs are trying hard to work on shrinking size of their employee strength as the employees are
opting for voluntary retirement schemes.

The private sector banks are unable to catch up with the unmatched size as well as access to
low cash deposits offered by PSBs so the only method that the private sector banks sought for
the purpose of competing with PSBs was to opt for mergers and acquisitions, for example -
based on current observations, the merger of HDFC with Times Bank, ICICI's acquisition of
ITC Classic, Angram Finance and Bank of Madura.

Private sector banks also initiated and expanded their services by internet banking, mobile
banking, phone banking,debit cards, ATM while the PSBs are as yet thinking about displeased
employees in the consequence of fruitful VRS plans. Additionally, taking after India's sense of
duty regarding the service sector as well as the foreign banks according to the WTO agreement
are allowed to open up 12 branches in a in a year in order to expand their market, with effect
from 1998-99. The economic and corporate sector has undergone and prompted the growing
number of banks to focus on the retail segment. Majority of them are also entering into
insurance segment as well. The banks have a huge customer base and they can very well exploit
that market for the purpose of insurance. Banks in India provide insurance solutions without
actually participating in the risk factor, they just provide the infrastructure and support the
insurance agency.
1.4 CHALLENGES FACED BY INDIAN BANKING INDUSTRY

The banking industry in India is experiencing a remarkable change due to the advancement of
the Indian economy and relentless deregulation. These many advances, which are developing,
have a progressively increasing influence on the banking sector, which is trying to be
completely organized.

Continuous deregulation allowed for extraordinary competition with greater autonomy,

operational adaptability and occasional interest rates, and liberalized standards and policies for
the foreign exchange and banking market. The deregulation of industry combined with the
reduction of the interest rate prompted the passage of various players in the banking sector. In
this sense, the decrease in corporate credit has resulted in a huge number of candidates
struggling for the same pie.

The market has been redefined with new modified rules. Banks move to universal bank,
including new channels with lucrative prices and gifts to offer. The requirement for a new
orientation diffuses the loyalty of customers. The bank has allowed an increase in the supply
of creative products that force different customer segments, especially retail credit.

An excellent efficiency is necessary at the end of the banker to establish a harmony between
the commercial and social considerations. Banks need access to low-cost funds and, at the same
time, improve their efficiency and adequacy. Due to the relentless rivalry in the industry, banks
are facing pressure on prices and are facing a need to put pressure on retail assets.

With attractive offers from multinationals and other nationalized banks, customers have
become more demanding and their loyalties have spread. Value-added offers require customers
to change their opinions and inclinations. Given moderately low switching costs; Customer
retention requires a personalized and trouble-free service and impeccable service delivery.

These changes fuel challenges as employees adapt to changing conditions. Employees are
opposed to change and the mentality of the sellers' market remains to be changed. Moreover,
the banking sector accepts recent innovation and technology, its use is far from satisfactory.
The skills gap should be generalized throughout the time, otherwise there will be missed
opportunities. What determines success is placing the right skill in the right place. The focus
will be on work, but not giving solutions, on problems of increase rather than untangling and
eliminating customers rather than using the opportunity to cross the sale.
1.5 DIGITAL BANKING

Post-advancement era, after the liberalization of the Indian economy, the budget services sector
experienced a rebirth and over the past decade India has been one of the fastest adopting
assistance programs Organizations around the world. This has provided a massive boost to the
national banking industry in India to convey in the latest innovation, especially in Internet
banking and e-commerce.

The performance of all traditional banking activities over the internet platform rather than
having to visit an actual branch is termed as digital banking. The various activities included are
fund transfers, money deposits, withdrawals, checking of balances, applying for loans, payment
of bills, etc. Aditya Puri, MD, HDFC Bank Ltd. quoted David Ogilvy, the father of advertising,
"The customer is not a moron. She is your wife." therefore implying that the organisation
needs to understand and achieve the customer’s needs and keep on altering them with time and
changes in their preferences.

Consumer have quickly inclined to online and mobile services than traditional banking
approach.

The new mantra to success for any business is -

"Listen, understand, change."
The marketers in order to maintain their customer base have to shift to a consumer-centric
approach from a product-centric approach. This includes establishing potential customers,
ascertaining their needs through regular interactions and feedbacks from them. Products and
services have to be customised for individuals. Aditya Puri, MD, HDFC Bank Ltd. quoted
David Ogilvy, the father of advertising, "The customer is not a moron. She is your wife."
therefore implying that the organisation needs to understand and achieve the customer’s needs
and keep on altering them with time and changes in their preferences.
1.6 DIFFERENCE BETWEEN TRADITIONAL AND DIGITAL
BANKING

BASIS TRADITIONAL BANKING DIGITAL BANKING

Presence A traditional bank needs a physical There is no need for a physical

branch setup branch setup

Time Time consuming as you have to Less time consuming as it can be

travel to the branch and wait for the accessed from anywhere at one’s
attendee to be free convenience

Accessibility Only accessible during visiting Available 24x7

hours

Security Not susceptible to e-security threats Susceptible to e-security threats

like hacking

Control Customers do not have control over Customers have full control over the
the management of their accounts management of their accounts

Cost Setting up a traditional branch Such costs are eliminated due to no

involves a lot of operating and fixed physical setup being present
costs

Customer Service Staff can only attend a few No need for customers to stand in a
customers at a time que

Personal There is face-to-face contact and There is no personal assistance

Assistance personal assistance available in available but online chat rooms can
traditional banking be accessed. In case of HDFC Bank,
EVA is available to assist customers
online
1.7 EMERGENCE OF DIGITAL BANKING

It is a well-established that leverage is the sole function of banking that is carried out by
borrowing and lending funds. Traditional banking includes meeting up in person in a “brick
and mortar” branch. The services included in basic banking are opening of accounts, fund
transfers, withdrawal of money and physical depositing of cash to an account, and some
advance transactions, for example, standing order, overdraft etc. are also involved.

The voyage for expansion and increasing the customer base involves setting up of more
branches and recruitment of staff which involves huge costs and challenges to make sure that
the new branches opened up are working efficiently. To end these complications, bankers have
found an easier way to carry out the banking business with the invention of digital banking.

The introduction of digital technology in banking has reformulated several of its services.
Historical barriers to time and place previously assigned have been greatly compromised as the
type of service has changed completely. Digital banking can manage traditional banking
services for clients such as account balance management, loan applications, B2B payments,
fund transfers, etc. just with a click of a button. The current dynamism in electronic banking
services is rooted in the introduction of ATMs in the late 1960s.
The transactions can per performed via the use of these machines through the use of ATM or
smart cards by the customers. These eliminated the use of a banking assistant. Electronic Fund
Transfer (EFT) is another revolutionising bestowal of technology to banking services by far. It
is a backbone for the evolvement of latest digital banking products and services.
1.8 HDFC BANK LTD.

Incorporated in India, the Housing Development Finance Corporation Ltd is a financial service
company with its headquarters in Mumbai, Maharashtra. It is the organization of India's money
in housing and it enjoys a great reputation in India as well as in international markets. Their
exceptional loan portfolio takes more than one million housing units. HDFC Bank Ltd. has
created a tremendous aptitude in mortgage loans to various market segments and additionally
has a large customer base for its housing credit facilities. With its involvement in the money
markets, the solid status of the market, the immense shareholding base and one of the client
establishments, HDFC Bank Ltd. was perfect for promoting a bank in the Indian market.

The bank is a public banking company that deals with providing a wide range of busy with a
wide variety of money management and monetary administrations, including business savings
and treasury operations.
Currently, the bank has a network of 4,715 branches and 12,260 ATMs in 2 577 cities and
towns in India. The two subsidiaries of the bank are HDFC Securities Ltd and HDB Financial
Services Ltd.

HDFC Bank shares are traded on the Bombay Stock Exchange and the National Stock
Exchange of India. Its US Depositary Shares (ADSs) are listed on the New York Stock
Exchange (NYSE) and the Bank's Global Depository Receipts (GDR) are listed on the
Luxembourg Stock Exchange.
1.9 SERVICES PROVIDED BY HDFC BANK LTD.

Accounts and deposit

1.) Savings Accounts-

1. Regular saving account: An easy-to-operate savings account that allows you to issue
cheques, draw Demand Drafts and withdraw cash.
2. Saving plus Account: All you have to do is maintain an Average Quarterly Balance of
Rs. 10,000/-
3. Saving Max Account: By maintaining an average quarterly balance of just Rs. 25,000/-
you get a host of premium services from HDFC Bank absolutely free.
4. Senior Citizen Account: presenting an account especially dedicated to customer, which
like a dutiful child will help you fulfill your needs in the best manner possible.
5. No frills Account: In this customer can put Zero Initial Pay-in and a Zero Balance
account and avail services like Net Banking, Mobile banking free of cost.
6. Institutional saving accounts: offering twin benefits of a savings as well as a current
account. All this and more in a Zero Balance account.
7. Kid’s advantage account: Open a Savings Account and transfer money every month
into customer’s Kids Advantage Account and watch the savings grow as customer’s
child grows.
8. Salary Accounts:
 Pay roll account.
 Classic salary account.
 Regular salary account.
 Premium salary account.
 Defense salary account.
 No frills salary account.
 Reimbursement salary account.

2.) Current Accounts-

1. Plus current account:

 HDFC Bank plus Current Account gives the power of inter-city banking with a single
account and access to more than cities.
 Plus Current Account requires maintaining an average quarterly balance of Rs. 100,000.
2. Trade current account: Free inter-city clearing of up to 50 lakhs per month, maintaining
an average quarterly balance of Rs. 40,000.
3. Premium current account: inter-city banking account that requires an average quarterly
balance of only Rs. 25,000, offers Payable-At-Par cheque book facility & FREE inter-
city clearing transactions across our network up to Rs.25 Lacs per month.
 4. Reimbursement Current Account: No more paperwork, no more receipts to keep track
of - a hassle-free account that allows deposit the reimbursements receive from
company/organization on a monthly basis.
5. Regular current account: A Current account is ideal for carrying out day-to-day
business transactions, it requires to maintain an average quarterly balance of only Rs.
10,000.
6. RFC – Domestic Account: Resident foreign currency account. To manage foreign
currency efficiently. Person can choose to set up your account either in US Dollar, Great
Britain Pound or Euro
7. Flexi current account: With HDFC Bank Flexi Current Account Cash Deposit and
Anywhere Transaction limits are a multiple of the balance you maintain in Current
Account, maintaining a minimum Average Monthly Balance (AMB) of just Rs.
75,000.
8. Apex current account: On maintaining an average quarterly balance of Rs. 10 lakhs,
Unlimited, free, anywhere Banking experience at the APEX is reserved for person who
joints this.
9. Max current account: With a Rs. 5 lakhs average quarterly balance requirement, bank
present to world of privileges that helps business expand and grow. Includes Features
like maximum free transaction limits.

3.) Fix Deposits Service:

If people believe in long-term investments and wish to earn higher interests on his/her savings,
now is the time to invest money in HDFC bank Fixed Deposit.
Get up to 7.1% on HDFC Bank Fixed Deposit with an additional 0.50% for Senior Citizens.
a. Regular fix deposit: deposit money in to a fix deposit in the bank and get the benefits
of these facilities.
b. Five year tax saving fix deposit: fixed deposits booked by an Individual/HUF for 5
years & up to Rs. 1,00,000/- will be allowed exemption under Sec 80C of the Income
Tax Act,1961.
c. Super saver facility: Avail of an overdraft facility of up to 75% of the value of his or
her Fixed Deposit.
d. Sweep-in facility: Link Fixed Deposit to Savings or Current Account and use it to fall
back on in case of emergencies.

4.) LOANS-

HDFC Bank is a pioneer in the field of mortgage loans and also offers a variety of other
types of loans at a very attractive interest rate to meet a range of individual needs. The loans
available are mortgage loans, auto loans, commercial loans, personal loans, etc.
5.) Forex and trade services

If people need to deal in foreign currency and keep tabs on exchange rates every now and
then, transfer monies to India, make payments etc., HDFC Bank has a range of products
and services that people can choose from to transact smoothly, efficiently and in a timely
manner.
The following are different methods of transacting in Foreign Exchange and remitting
money.
 Travelers Cheques.
 Foreign Currency Cash.
 Foreign Currency Drafts.
 Cheque Deposits.
 Remittances.
 Cash to Master.
 Trade Services.

6.) CARDS-

Debit and credit cards are offered with each savings account to HDFC Bank customers who
are safer than carrying cash, as they require an exclusive PIN with each transaction, offer great
deals, great discounts and rebate offers on Recharge, shopping, restaurants, entertainment, etc.
and are used almost everywhere.

7.) Investments and Insurance –

HDFC Bank negotiates several routes to complete the client's financial portfolio as Mutual
Funds, Life Insurance and General Insurance. They offer both life and non-life products. Life
insurance products are issued as part of HDFC Life Insurance Company Limited and non-life
insurance products are issued as part of HDFC Ergo.

8.) Premium Banking –

A banking experience, customized for High Net Worth clients, where the bank offers a
committed Relationship Manager to solve all problems related to the client banking. The
concept has three categories of clients. These are - Imperia, Preferred and Classic.
1.10 DIGITAL BANKING SERVICES PROVIDED BY HDFC BANK LTD.

● Net Banking - It offers a variety of bank related transactions to be conducted from the
comfort of the client’s home. Various activities can be performed such as checking the
account balance, fund transfers, recharge a mobile or DTH Connection, payment of
bills, payment of taxes, IPO application, Mutual Fund investment online, etc. The
process is speedy and safe.

● PayZapp - PayZapp, an application from which you can buy smartphones via partner
apps, movie tickets, shopping and refills, compare and book tickets and hotels and
benefit from huge discounts.

● Chillr - The first Indian multibank application that allows payment directly linked to a
bank account allows a person to instantly transfer an HDFC bank account to anyone in
the phone book or become a payee using their 'Account details and IFSC code' or 'UPI
ID'. You can also recharge, pay bills, split bills, or ask for money for this application.

● EVA - HDFC Bank launched an electronic virtual assistant (EVA), India’s first
artificial intelligence-driven chatbot, for the convenience of its customers. It can answer
millions of questions across multiple platforms instantly. It can collect knowledge
from across thousands of various sources and give answers in a simplified language in
less than 0.4 seconds.

● Mobile Banking - Downloading the app on any smart phone will provide you with the
access and one can avail of over 75 transactions per day. The app makes it very
convenient, fast and secure.

● SMS Banking - An SMS or an email alert is generated as soon as there is an alteration

in the account balance in the form of any transaction.

 SmartBuy - SmartBuy is another platform that displays offers provided by Merchants

to HDFC Bank's Customers.

 Watch Banking - allows you to access your bank account and do a whole lot more
right from your wrist. Watch Banking is now available exclusively for HDFC Bank
customers through an Apple Watch wherein one can perform transactions right from
their Apple Watch without even taking out their phones.
 1.11 RATIONALE OF THE PROPOSED STUDY

 Client’s perception and consequent conduct depends a great deal on the

accomplishment of digital banking. This report inspects the bank's procedure to get the
customers more involved in digital banking processes. Client’s inclination and conduct
towards this system of banking has be better comprehended and evaluated. Their
satisfaction has been analysed and the measures that will improve the same has also
been studied.
 CHAPTER 2
REVIEW OF LITERATURE
The following papers were studied and referred for the purposes of understanding the
complexity of the problem and coming up with an efficient solution.

Evolution of Digital banking

Information technology has transformed the services they offer to their customers. The advent
of electronic banking has enabled banks to provide constant exchanges and coordinate all
consumer-oriented functions (ICICI Bank, “Corporate Banking using technology in
transactions”). Indian banks are exploiting the new innovation to offer greater innovation and
useful access to their buyers and India is thus able to undertake a massive development in the
field of electronic banking.

Changes in the banking sector are often attributed to increasing deregulation and globalization,
a key stimulus to rationalization, consolidation and a rising target price (Ibrahim et al.,
2006).One of the reasons for this has been the rapid improvement and use of the latest
technologies improved by banks as electronic banking services (Pikkarainen et al., 2001 Orr,
1998). The execution of electronic banking, for example, digital banking and also the use of a
computer-based banking system, maintains a pair of focal points evident for banks due to the
results of revolutionary technologies.

Meanwhile, the importance of the web to buyer's bank desires is identified with the benefits
they collect for the customers they quote. As the adoption and use of Internet banking expands,
in the following years a maturity will be available which is indicated by grouping the customers
into the premise of their perception of Internet banking services (Maenpaa, 2006).
The future, is ‘Martini Banking’ which allows whenever, wherever and anyhow banking. This
bestows us with advantages and privileges which are much more if compared to traditional
banking. Traditional banks find it difficult to evolve but e-banks have a high setup cost in terms
of advertisement and purchase of latest technology. This is what traditional banks are using to
fight back (“Impact of E-Banking on Traditional Banking Services”, Shilpan Vyas).

Adaptability to Digital Banking

It is assumed that the banking sector is now extremely developed and that banks are forced to
change rapidly due to open market forces, such as the threat of competition, customer demand
and mechanical progress, such as growth in the banking sector. Electronic banking is a
successful strategic weapon for banks to remain profitable in an unpredictable and aggressively
trading market in the Indian and Australian economies, regardless of the distinction of using
IT (Chandana R, Unnithan, Paula M.C., Swatman; “E-banking Adaptations and Dot.Com
viability: A comparison of Australian and Indian experiences in the Banking sector”).

The main provisions of the business and IT methodologies, the planning and implementation
of electronic banking initiatives and the management of benefits were taken with the main
contributions to its advancement (G. Kannabiran and P. Narayan). The traditional limits of
banks disappear. By using e-commerce techniques, major retailers and telecommunications
providers are beginning to offer financial services to their customers. Increasing the value chain
and providing versatile services is the way to maintain competitiveness in the sector (Huggins).

People's mood is also shifting from direct transactions to investment and savings, as the Gen-
X reaches its fifties and prepares for retirement. The use of electronic banking services is
clarified on the basis of specific socio-statistical and Internet performance indicators. The
analyzes conducted in the study offered help for the influence of the nation, age, some Internet
behaviors on the use of electronic banking (Mario Martinez Guerrero, "Profiling the reception
of Online Banking Services in the European Union"). Built up that clients who are users of e-
banking utilise it as an ongoing procedure at consistent interims for them to keep pace with the
most recent innovations and build up a comfort level with it (Servon and Kaestner, 2008).

Customer Satisfaction with respect to Digital Banking

The previous consumer research needs empirical confirmations on the consumer's perception,
state of mind, and inspiration with respect to the use of the Internet or e-banking (Consumers’
attitude and motivation study, Akinci et al., 2004). When a client spends a sum of money to
purchase a service, he/she has a minimum expectations of return resulting from the transaction.
These expectations are required to be met considerably, if not completely in order for the
customer to remain loyal. These expectations are satisfied our of a guarantee made to the client-
good quality, reasonable price, accessibility, after sale services, customer complaint cell,
variety, information, etc. (Akbar and Parvez, 2009).
Same cost for a better quality is the motto of the customers. Customer satisfaction as the ability
of the organization to meet the emotional and psychological needs of its customers. In all cases,
clients have diverse levels of execution because they have different behaviors and encounters
depending on the organization. The level of customer satisfaction is strongly affected by the
meaning that it places on each attribute of the product / service (Rueangthanakiet Pairot, 2008).

Estimating the measure of client satisfaction allows an association to understand the main
factors that create satisfaction or dissatisfaction, and what really drives their satisfaction in the
middle of an experience. The six composite dimensions of electronic service quality, as well
as providing practical / accurate electronic banking; accessibility and responsibility for the
provision of services; Increased queue management; customization of the service; provide
friendly and responsive customer service; And also the provision of targeted customer service
(Ibrahim et al, 2006).

Barriers to Digital banking

A conclusion was drawn that any lapse of security in Internet utilisation might be liable to
expand dread and anguish among the customers' mental being this may prevent them from
using the system as they might be needed to enter their essential personal data (Gerrard and
Cunningham, 2003). Despite the fact that innovation opens the door to a new scope and a
timetable, the likelihood that violations will soon be conferred. Today, a criminal, web access
tools, can hack a database and take dozens of identities in seconds. (Thomas et al., 2002).
The customer's vision of security is developed through the use of substantially adequate
instruments that are highlighted by encryption, protection and confirmation methods, and
improve the likelihood of security and confidence of buyers (Chellappa, 2002).
Some key safety issues were overlooked and told the bank that it was ready to take corrective
action (Jean Michel, Martin Hepworth, 2003). Banks must protect their information against a
range of security threats. Any kind of negligence has a real result and can result in financial
losses. Banks will undoubtedly keep maintaining confidentiality of client's record; else their
failure can cause harm to the bank and its reputation (Raigaga, 2000). Subsequently, before
beginning to commence their working on the web, banks should take some practical tests to
guarantee security. As a proof from the previous research, E-banking security is a standout
amongst the most essential elements and future difficulties, since clients fear higher dangers in
utilising the web for financial exchanges (Aladwani, 2001).

Expectation of customers with respect to digital banking

The end-user experience has become an essential component in Internet-based businesses
because of the user's rating that typically pays the bulk of recent products and services. As a
result, new product characteristics such as ease of use, quality, aesthetics, attractiveness and
value for money should be compensated or exceeded with customer expectations regarding the
merchandise (Wilson & Sasse 2004).
 CHAPTER 3
RESEARCH METHODOLOGY
RESEARCH PROBLEM:
Digital banking is taking over the world by reaching a wide amount of people. To keep its stake
in the industry, a large number of banks have introduced services which let people take control
over their banking transactions and access them from anywhere and at any time. The problem
lies with the people's lack of adaptability to this platform and their reluctance with the system
owing to their age and low level of internet usage and trust. The study discovers the factors
responsible for people's reluctance and expectations from digital banking and their current level
of adoption to this style of banking.

PURPOSE OF THE STUDY:

The purpose of the research is to study if the prospective or current clients are familiar with the
digital banking services provided by HDFC Bank Ltd., Jammu or not. It aims to understand
their reviews and expectations from these services. It has also taken up the factors which make
the customers reluctant in using these services and provide suggestions to improve the same

RESEARCH OBJECTIVES:
1. To study the conceptual framework of digital banking.
2. To study customer perspective about digitalisation in banks.
3. To study the customer preference of the various digital services.
4. To identify the reasons for preferring digital banking.
5. To study the consumer’s perception on service quality in digital banking system.
6. To identify the purpose for which customers have been using digital services.
7. To find out the opinion of the respondents regarding the various problems of digital
banking.
8. To study the overall satisfaction level of the customers with the digital services of
the bank.

RESEARCH DESIGN:
A combination of exploratory research and Descriptive research has been adopted to study the
level of satisfaction among customers with regards to the digital banking services provided by
HDFC Bank, Jammu.

TARGET POPULATION:
The area from which the sample will be collected from will be Jammu, Jammu & Kashmir.

SAMPLING DESIGN:
Convenience sampling has been chosen for this research. This is because of the time constraint
of the research and because the data of the customers of HDFC Bank is most accurately derived
from the bank itself.

SAMPLE SIZE:
The sample size is of 80 customers.
DATA COLLECTION:
The type of data for the research is a blend of primary and secondary data. The secondary data
has been gathered through an extensive study of research reports, articles and cases published
already on the similar topic. The primary data, on the other hand is gathered from walk ins and
through tele calling of clients with the assistance of an structured questionnaire consisting of
questions based on the research objectives and demographics to grasp a better idea of the
population already dealing with digital banking and the area which needs to be targeted for
more awareness of the same.

RESEARCH INSTRUMENT:
A structured questionnaire with questions ranging from ranking to multiple choice are included
for better understanding of the customer's behaviour and attitude towards digital banking.
Questions using likert scale have also been added.

TOOLS USED:
The primary data has been collected and the analysis has been performed using MS Excel.
 CHAPTER 4
DATA ANALYSES AND
INTERPRETATION
Profile of respondent

S. No. Variable No. of Respondents

1. Gender Male 45(56.25%)
Female 35(43.75%)
2. Age ( in years) Below 20 3(3.8%)

21- 35 56(70%)

36- 50 12(15%)

50- 65 6(7.5%)

65 and above 3(3.7%)

3. Education Primary 1(1.3%)

Qualification Secondary 5(6.3%)
Graduate 41(51.2%)
Post Graduate 33(41.3%)
4. Occupation Student 23(28.7%)
Service 28(35%)
Business 8(10%)
Professional 12(15%)
Others 9(11.3%)
Source: primary data

Table 1: Distribution of sample respondents according to their gender, age, education

qualification and occupation. (n=80). Figures in brackets represent percentages to total.

Age Group
3.70%
4%

7%
15%

70%

BELOW 20 21-35 36-50 50-65 65 AND ABOVE

 Gender PROFESSION
15%
29%
44%
11%
56%
10%
35%

MALE FEMALE student SERVICE BUSINESS others PROFESSIONAL

QUALIFICATION

41%
82%

51%
7%

PRIMARY SECONDARY GRADUATE POST-GRADUATE

Interpretation
 From the study, it is found that 56.25% of respondents were males and 43.75% were
females.
 From the study it is found that 3.8% of respondents were below 20 years of age, 70%
lie in the age group of 21-35 years, 15% lie in the age group of 36-50 years, 7.5% lie
in the age group of 50-65 years and 3.7% were above 65 years.
 The study shows that 1.3% respondents had primary level education qualification,
6.3% were secondary qualified, 51.2% were graduate and 41.3% were post graduate.
 The study also shows that 28.7% of respondents were students, 35% were service
persons, 10% were in business, 11.3% were self-employed and 15% of respondents
were professionals.
Objective- 2: To study customer perspective about digitalisation in banks.

Importance of digitalization No. of Respondents

Vital 27(33.8%)

Essential 41(51.2%)

Desirable 9(11.3%)

Can’t say 3(3.7%)

Source: primary data

Table 2: Distribution of sample respondents according to customer perspective about
digitalization in banks. Figures in brackets represent percentages to total.

IMPORTANCE OF DIGITALISATION

11% 4%
34%

51%

VITAL ESSENTIAL DESIRABLE CAN'T SAY

Interpretation
 From the above table, it can be seen that 51.2% of the customers find digitalization of
banks as essential system of banking and 33.8% of customers feel that it is vital system
of banking.
 Objective- 3: To identify the customer preference of various digital services.
Services Offered by bank Personally adopted
by customers
ATM 71(88.8%) 72(90%)
Net banking 65(81.3%) 48(60%)
Mobile banking 62(77.5%) 52(65%)
SMS alert 41(51.2%) 26(32.5%)
Debit cards 67(83.8%) 64(80%)
Credit cards 58(72.5%) 34(42.5)
Smartbuy 19(23.8%) 6(7.5%)
Payzapp 10(12.5%) 4(5%)
Phone banking 22(27.5%) 16(20%)

Source: Primary Data

CUSTOMER PREFERENCE
OFFERED BY BANK PERSONALLY ADOPTED BY CUSTOMERS

90
88.8 80
81.3 83.8
77.565 72.5
60
51.2 42.5
32.5
23.87.5 27.520
12.5 5
PERSONALLY ADOPTED BY CUSTOMERS
OFFERED BY BANK

Interpretation
 The above table shows the digital services offered by the customers’ bank and the
services which are personally adopted by the customer.
 From the above table it can be seen that 90% of the customers have personally adopted
ATMs, followed by debit card which is adopted by 80% of the customers.
 From the above table it can be seen that though the bank offers all the services but
customers are not aware of the few services like only 12.5% of the customers have
knowledge about payzapps
 Hence, it is required that bank need to aware customers regarding the services they are
offering and encourage the customers to adopt these services
Objective- 4: To identify the reasons for preferring digital banking.

Motivating Features No. of Respondents

Time Saving 79(98.8%)
Accuracy 72(90%)
Easy and convenient access 68(85%)
Cost saving 66(82.5%)
Security 19(23.8%)
24*7 Availability 76(95%)
Social Status 75(93.8%)
Exchange of Information 62(77.5%)
Confidentiality 51(63.7%)
Source: Primary Data.
Table 4: Motivating factors to prefer digital services (n=80). Figures in brackets represent
percentages to total.

REASON OF PREFERENCE
CONFIDENTIALITY 63.70%

EXCHANGE OF INFORMAION 77.50%

SOCIAL STATUS 93.80%

24*7 AVAILABILITY 95%

SECURITY 23.80%

COST SAVING 83%

EASY AND CONVENIENT ACCESS 85%

ACCURACY 90%

TIME SAVING 99%

0% 20% 40% 60% 80% 100%120%

Interpretation
 The above table shows us the various motivating factors for preferring digital banking
by the customers. From above it is seen that time saving is the most important
motivating factor for choosing digital services and 98.8% of respondents are influenced
by this.
 Another important motivating factor for preferring digital banking is 24*7 availability
and 95% of the respondents are influenced by this.
 Social status, easy and convenient access and accuracy are the factors influencing
customers’ preference at 93.8%, 85% and 90% respectively.
 From table it can be seen that only 23.8% of the customers are influenced by the
security. Hence, it is required that bank officials should enlighten the customers about
the security aspect of digital interface and conduct various awareness drives to educate
customers.
Objective- 5: To study the consumer’s perception on service quality in digital banking
system.

Service Quality Factors Score of Respondents

Time factor 77.5(62%)
Reliability 64(80%)
Convenient way of operating banking 72(90%)
transactions
Easy to Use 68(85%)
Cost effective 27(33.8%)
Preference 14(17.5%)
Awareness 8(10%)
Source: primary data

Table 5: Customer perception on service quality factors. Figures in brackets represent

percentages to total.

SERVICE QUALITY FACTORS

AWARENESS 10.00%

PREFERENCE 18%

COST EFFECTIVE 34.00%

EASY TO USE 85%

CONVENIENT WAY OF
90%
OPERATING BANKING…

RELIABILITY 80%

TIME FACTOR 62%

0% 20% 40% 60% 80% 100%

Interpretation
 The convenience of online banking is helping people gain greater control of their
finances and contributing to changing patterns in cash withdrawal and day to day money
management.
 Another one of the very important service quality dimensions of digital banking service
quality is reliability.
 Saving time is an importance factor which influences the customers prefers to use
digital banking.
 Ease of use is another important determinant for the customer preferring the digital
banking.
 Digital banking users say that convenience is the most important factor, digital banking
lets them access their accounts from anywhere and at any time.
 Objective-6: To identify the purpose for which customers have been using digital services.

Purpose to use Digital Banking service No. of Respondents

Money Transfer 47(58.8%)
Balance Details 62(77.5%)
Purchase Bank Products 11(13.8%)
Source: Primary Data.
Table 6: Purpose for which customers have been using the digital services of bank. Figures in
brackets represent percentages to total.

PURPOSE TO USE DIGITAL BANKING SERVICE

PURCHASE BANK PRODUCTS 14%

BALANCE DETAILS 78%

MONEY TRANSFER 59%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%

Interpretation
 From above table we can see that most of the customers use digital banking facility to
check their balance details (77.5%).
 Followed by this is Money Transfer or bill payment by the customers which is 58.8%.
 Only 13.8% customers use digital services to purchase new products like opening an
account.
Objective- 7: To find out the opinion of the respondents regarding the various problems
of digital banking.
Difficulty No. of Respondents
Risky 61(76.3%)
Less knowledge 72(90%)
High Charges 53(66.3%)
Less adoption 55(68.8%)
Traditional Banking 66(82.8%)
Source: Primary data
 Table 7: Difficulty for using the digital banking facility (n=80). Figures in brackets
represent percentages to total.

DIFFICULTY
TRADITIONAL BANKING 83.00%

LESS ADOPTION 67%

HIGH CHARGES 66%

LESS KNOWLEDGE 90%

RISK 76%

0% 20% 40% 60% 80% 100%

Interpretation

 The main difficulty for using the digital banking facility is less knowledge about the
operations of banking facility (90%). Respondents also feel that digital services are
highly charged (66.3%) and respondents also believe digital banking to be risky
(76.3%).
 Further 82.8% of the respondents say that even today most of the customers prefer
traditional or branch banking to digital banking
Objective-8: To study the overall satisfaction level of the customers with the digital
services of the bank.

Satisfaction Level No. of Respondents

Fully satisfied 24(30%)
Satisfied 52(65%)
Somewhat satisfied 4(5%)
Not satisfied Nil
Source: Primary Data.
Table 8: Satisfaction level of the customers with the digital services of bank (n= 80). Figures
in brackets represent percentages to total.

SATISFACTION LEVEL

0%
5%
34%

65%

FULLY SATISFIED SATISFIED SOMEWHAT SATISFIED NOT SATISFIED

Interpretation
 Satisfaction level of the customer is very important in banking.
 From above we see that 65% of the customers are satisfied with the digital services of
the bank.
 Rest 30% are fully satisfied with the services and only 5% of the customers are
somewhat satisfied.
 It indicates that hdfc bank customers have high level of satisfaction from the services
they get.
Objective-9 Sources from where customers come to know about the digital services of
bank

Sources No. of Respondents

From bank officials 38(47.5%)
Advertisement in Print media 34(42.5%)
Television and Radio Advertisement 30(37.5%)
Online Advertisement 33(41.3%)
From family members 21(26.3%)
From Friends 26(32.5%)
Source: primary data
Table 9: Sources from where customers come to know about the digital services of bank.
Figures in brackets represent percentages to total.

SOURCES
FROM FAMILY MEMBERS 26.00%

ONLINE ADVERTISEMENT 41%

TELEVISION AND RADIO

37%
ADVERTISEMENT

ADVERTISEMENT IN PRINT MEDIA 42%

FROM BANK OFFICIALS 47%

0% 10% 20% 30% 40% 50%

Interpretation: From above table it is clear that most of the customers come to know about
digital services from bank officials (47.5%) which mean that bank employees make customers
aware of the new possibilities and opportunities in digital banking.
OBJECTIVE 10- Time Duration for which customers have been using the digital services
of the bank.
Time period No. of Respondents
Less than 1 year 11(13.8%)
1- 2 years 20(25%)
2- 3 years 14(17.5%)
3- 5 years 13(16.2%)
More than 5 years 22(27.5%)
Source: Primary Data
Table 10: Time Duration for which customers have been using the digital services (n=80).
Figures in brackets represent percentages to total.

TIME PERIOD

28.00% 14%

25%

16%
18%

LESS THAN 1 YEAR 1-2 YEAR 2-3 YEAR 3-5 YEAR MORE THAN 5 YEARS

Interpretation: From above table we see that post demonetization there has been increase in
the number of customers using digital services, i.e. 25%.
 CHAPTER 5
FINDINGS AND LIMITATIONS
5.1 Following were the findings from the survey conducted:

 From the study, it is found that 56.25% of respondents were males and 43.75% were
females.
 From the study it is found that 3.8% of respondents were below 20 years of age, 70%
lie in the age group of 21-35 years, 15% lie in the age group of 36-50 years, 7.5% lie
in the age group of 50-65 years and 3.7% were above 65 years.
 The study shows that 1.3% respondents had primary level education qualification,
6.3% were secondary qualified, 51.2% were graduate and 41.3% were post graduate.
 The study also shows that 28.7% of respondents were students, 35% were service
persons, 10% were in business, 11.3% were self employed and 15% of respondents
were professionals.
 The study shows that 51.2% of the customers find digitalization of banks as essential
system of banking and 33.8% of customers feel that it is vital system of banking.
 It is seen that 90% of the customers have personally adopted ATMs, followed by debit
card which is adopted by 80% of the customers.
 It can be seen that though the bank offers all the services but customers are not aware
of the few services like only 12.5% of the customers have knowledge about payzapp.
Hence, it is required that bank need to aware customers regarding the services they are
offering and encourage the customers to adopt these services.
 The various motivating factors for preferring digital banking by the customers are
Time saving, easy and convenient, accuracy, 24*7 availability, security,
confidentiality, cost saving social status and exchange of information. It is seen that
time saving is the most important motivating factor for choosing digital services and
98.8% of respondents are influenced by this. Another important motivating factor for
preferring digital banking is 24*7 availability and 95% of the respondents are
influenced by this. Social status, easy and convenient access and accuracy are the
factors influencing customers’ preference at 93.8%, 85% and 90% respectively.
 It can be seen that only 23.8% of the customers are influenced by the security. Hence,
it is required that bank officials should enlighten the customers about the security
aspect of digital interface and conduct various awareness drives to educate customers.
 The convenience of online banking is helping people gain greater control of their
finances and contributing to changing patterns in cash withdrawal and day to day
money management.
 One of the very important service quality dimensions of digital banking service quality
is reliability. Saving time is an importance factor which influences the customers
prefers to use digital banking. Digital banking users say that convenience is the most
important factor in digital banking lets them access their accounts from anywhere and
at any time.
  From the study it is seen that most of the customers use digital banking facility to
check their balance details (77.5%). Followed by this is Money Transfer or bill
payment by the customers which is 58.8%. Only 13.8% customers use digital services
to purchase new products like opening an account.

 The main difficulty for using the digital banking facility is less knowledge about the
operations of banking facility (90%). Respondents also feel that digital services are
highly charged (66.3%) and respondents also believe digital banking to be risky
(76.3%).
 Further 82.8% of the respondents say that even today most of the customers prefer
traditional or branch banking to digital banking
 Mostly the customers come to know about digital services from bank officials (47.5%)
which mean that bank employees make customers aware of the new possibilities and
opportunities in digital banking.
 Satisfaction level of the customer is very important in banking and it is seen that 65%
of the customers are satisfied with the digital services of the bank. Rest 30% are fully
satisfied with the services and only 5% of the customers are somewhat satisfied. It
indicates that HDFC bank customers have high level of satisfaction from the services
they get.

5.2 Limitations of the study:

● The research is restricted to Jammu area of Jammu & Kashmir.
● The responses of the customer in this area may differ from the responses elsewhere,
therefore, the results can’t be generalised.
● The sample size was restricted to 80
● Respondents because of paucity of time and resources.

.
 CHAPTER 6
CONCLUSION &
RECOMMENDATIONS
6.1 CONCLUSION

The research report is based on primary data. According to the study, it is concluded that the
most of the bank customers are aware about all the digital banking services of HDFC bank of
India in Jammu.

The bank further has to take necessary steps to educate the customers regarding the new
technology and other services offered by the banks.
Also it is seen that most of the customers use ATM service only for cash withdrawal and
balance check, though digital banking provide full gamut of services. Hence, customers should
be made aware of these services and should be encouraged to adopt the same.
Advanced fraud detection mechanisms and the possibility to leverage personalized security
preferences and alerts will have to become more widespread. For any security enhancement to
be accepted and efficient will require that the user experience is not impacted. Bank should
consider investigating and implementing additional layers of security that will reduce the level
fraud. While ready to manage breaches, the goal should be to reduce the potential for losses
and customer impact.
Adoption of technology and convincing the customers to opt for self-service modes of banking
is the biggest challenge.
Also the need to reduce costs and increase efficiency is assuming more significance than ever.
In this regard, improving a bank’s digital maturity ensures higher efficiency in its processes
such as credit offering, improved interaction and customer experience.
Renewed skills development of workforce and investments into training and manpower
development is the need of the hour.
Customer segmentation is another aspect which will not only facilitate ease of interaction, but
also enable targeted product placement, thus increasing the likelihood of further acceptance.
Achieving financial inclusion targets by innovative use of digital banking thereby promoting
rural banking in a more comprehensive manner has to be done.
Banks should initiate schemes based on benefits in the form of additional bonus, free annual
trips, valuable gift items, awards etc. for the employee who are very friendly, experienced and
aware with Online Banking Service. (OBS)
Banks can introduce OBS in two modes such as Beginner and Expert Mode to reduce troubles
of employees while providing guidance about OBS as well as to reduce troubles of customers
while availing OBS.
6.2 Recommendations:

 HDFC Bank, Jammu, should make their customers more aware of the new products
and services launched under the umbrella of digital banking in the remote areas of
Jammu to encourage higher adoption rates.

● HDFC Bank, Jammu, should organize HDFC Bank, Jammu, can run more powered
encryption and manufacture more connected firewall security to prevent encroachment.

 Digital banking services ought to be made as easy to understand. In some cases (like
those of the aged and frequent clients), the bank ought to not charge for these services.
However, if this does not seem, by all means, to be practical, they need to ensure that
the expenses of executing these services physically does not surpass the expenses of
availing them electronically workshops, exhibitions and free trials to test the client's
ability to operate these services.

 In addition, advertising and outreach through the media or social media marketing will
prove to be successful.
REFERENCES

● Abrol, S. (2014). Impact of Internet Banking on Customer Satisfaction and Business

Performance. Retrieved from Shodh Ganga:
http://shodhganga.inflibnet.ac.in/bitstream/10603/78488/7/07_chapter.pdf
● Chandana R, U. P. (2001). E-banking Adaptations and Dot.Com viability: A
comparison of Australian and Indian experiences in the Banking sector. Manchester,
England: Manchester Metropolitan University Business School.
● Choudhary, C. &. (2018). Internet Banking Challenges and Opportunities in Indian
Context. Indore.
● Kaestner, L. S. (2008). Consumer Financial Literacy and the Impact of Online Banking
on the Financial Behavior of Lower‐Income Bank Customers. Retrieved from
Researchgate:
https://www.researchgate.net/publication/227610496_Consumer_Financial_Literacy_
and_the_Impact_of_Online_Banking_on_the_Financial_Behavior_of_Lower-
Income_Bank_Customers
● Katz, J. a. (1997). Motivation for Barriers to Internet Usage:Results of a National
Public Opinion Survey.
● Malhotra, B. S. (2005). Adoption of Internet Banking: An Empirical Investigation of
Indian Banking Sector. The Journal of Internet Banking andcommerce
● Ramadhan, A. M. (2008). Internet Banking in India – Consumer Concerns And Bank
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● Ramadhan, A. M. (2017, October). Internet banking, consumer adoption and customer
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from International Journal of Emerging Research in Management &Technology:
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- Urban Areas in India. Retrieved from International Journal of Scientific and Research
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 Siu, N. Y. (2018). Measuring service quality in internet banking: the case of Hong
Kong. Journal of International Consumer Marketing .
 Vp, D. S. (2017, November). A Study on Customer Perception Towards Internet
Banking: Identifying Major Contributing Factors. Retrieved from Researchgate:
https://www.researchgate.net/publication/233928429_A_Study_on_Customer_Perce
ption_Towards_Internet_Banking_Identifying_Major_Contributing_Factors
ANNEXURE
QUESTIONNAIRE
A study on digitalization in banks
Customer's Questionnaire
PART (I)
Please tick your response in the space provided. In all such cases where more than one response
is necessary under the same Question, please tick as many responses as are applicable.
1. Are you customer of HDFC Bank of India?
o Yes
o No
2. In general, what do you feel about digitalisation in banks as a new system of delivering
banking services?
o Vital
o Essential
o Desirable
o Can’t say
3. How did you come to know about digital services? (Tick as many as applicable)
o From bank officials
o Advertisement in Print media
o Television and Radio Advertisement
o On line Advertisement
o From your family members
o From your Friends
o Any other ( please specify)
4. Which among the following digital services are provided by your bank?(Tick as many as
applicable)
 ATM
 Net banking
 Mobile banking
 Phone Banking
 Electronic Transfers
 Debit Cards
 Credit cards
 Payzapp
 Sms alerts
 Smartbuy
5. Which one (s) among the digital services above you have personally adopted or used?
o ATM
o net banking
o Mobile banking
o Phone Banking
o Electronic Transfers
o Debit Cards
o Credit cards
o payzapp
o smartbuy
o sms alerts
6. Since when have you been using digital services?
o Less than 1 year
o 1-2 years
o 2-3 years
o 3-5 years
o More than 5 Years
7. Rank the following channels from most preferred(1) to less preferred(5)
o Face to face banking (1-5)
o Online banking (1-5)
o Automatic Teller Machines (ATMs)/debit cards (1- 5)
8 I use bank website/net banking to: (tick the applicable one(s))
o Know bank products advertised
o Check my account balance
o Transfer of funds
o Check bank statement
o Purchase bank product e.g. Account opening
o Order Cheque book
o Stop cheque payments
o Change Password
o After sale-service (e.g. E-mail enquiries)
9. Why do you think is it important to adopt Digital services?
i) Digital services are generally faster than traditional Banking
o Yes
o No
ii) Digital services have no time limit since we can use them at any time of the day
o Yes
o No
iii) There is high degree of convenience in accessing Digital services
o Yes
o No
iv) Digital channels are easier to use than traditional channels
o Yes
o No
v) Digital services are generally cheaper than traditional banking at the Branch
o Yes
o No
vi) Using Digital service is more prestigious than queuing at the bank halls
o Yes
o No
10. What are the possible reasons why Digital services have not been adopted by many
customers?
i. Security concerns is the most discouraging factor in using Digital services
o Yes
o No
ii. Most of the customers are not aware of Digital services provided by their banks
o Yes
o No
iii. Digital services generally do not have privacy of customer's information.
o Yes

o No

iv. Most of the customers prefer traditional (Branch) banking

o Yes
o No

v. Most Banks provide few Digital services and some have not yet adopted.
o Yes
o No
vi. Some Banks charge high fees on using Digital services.
o Yes
o No

11. What is your level of satisfaction with HDFC digital services?

o Fully satisfied
o Satisfied
o Somewhat satisfied
o Not satisfied

Part- II PERSONAL INFORMATION

1. Name _________________________
2. Age
o Below 20
o 21- 35
 o 36- 50
o 50- 65
o 65 and above
3. Education
o Primary
o Secondary
o Graduate
o Post Graduate
4. Occupation
o Student
o Service
o Business
o Professional
o Others
5. Bank
6. Branch