SUMMER TRAINING PROJECT

REPORT
On
“DIGITAL SERVICES USED IN BANKING SYSTEM”
(MOBILE BANKING,ATM)
WITH SPECIAL REFERENCE TO HDFC
BANK

Towards partial fulfillment of

Master of Business Administration (MBA)
School of Management, JECRC University, Jaipur
3 JUNE 2019 - 18 JULY 2019

Submitted by
Bhumika
IIIrd Semester
Roll No-15MBAN052

Under Supervision of
MRS. Rashmi Sharma

JECRC University
RAMCHANDRAPUR INDUSTRIAL AREA ,VIDHANI, SITAPURA
EXTENSION , JAIPUR , 303905
CERTIFICATE FROM THE ORGANIZATION
 ACKNOWLEDGEMENT

No project report ever reflects the efforts of a single individual. The report owes its
existence to the constant support and guidance of a number of people. I am grateful to all
of them.

I owe a never-ending debt of gratitude to Mrs. Rashmi Sharma and Mr. Ram Garg for
their expert guidance and support.

I would like to thank all the respondents for giving their valuable time and providing
useful information.

I am also grateful to all those who have either directly or indirectly contributed towards
the completion of the project, for their support and encouragement.

Bhumika
 DECLARATION

I do hereby declare that the Summer Internship Project Report titled “Digital services
used in banking system” submitted by me towards the partial fulfilment of the
requirement of Master of Business Administration, exclusively prepared and
conceptualized by me and is not submitted to any other Institution or University or
published anywhere before for the reward of any Degree/Diploma/Certificate. It is the
Original work of mine and has not been obtained from any other part.

Bhumika

MBA (IIIrd SEM)

 PREFACE

As a part of our course curriculum I had to go through a Summer Internship Project

Report on any topic to get the right exposure to the practical aspects of business
management.

I want to express my gratitude for the experience and practical knowledge that I earned
during the Summer Internship. In this project report I had presented my great experience
in the form of words. In making the project report theoretical knowledge was needed
more than the practical which was given to us by my professors in my institute.

The project flows logically consisting of a questionnaire. I hope that the findings and the
suggestions will help the company, confidently to formulate its strategy in comparison to
its competitors. I have enjoyed my report preparation and have learnt lots of new things. I
have tried my level best to make this report a reader friendly & also did my level best to
fulfil the objective of the study.
 EXECUTIVE SUMMARY

Digitalisation and globalisation have permanently changed the financial sector and its
operating environment. The physically intangible nature of financial services means they
can be digitised and produced also by other providers besides banks and insurance
companies.

Banks and insurance companies can thrive in competition by increasing their productivity
through digital technology. Successfully doing so maintains productivity and jobs and
improves work wellbeing. While productivity in the finance and insurance business is
notably higher than the national economy average, it grows slowly. The best way to
speed up the growth is to develop new products and improve operating models.

Financial companies have three main ways to succeed in the competition. First way is to
continuously develop services. Development does not have to depend on ground-
breaking innovations, because great ideas are often born while solving smaller problems.
Incremental development is typical for small Internet companies that are just starting out,
but can also be a less risky way for banks and insurance companies to reach the forefront
of digital and mobile services.

The second way is to develop the skills, knowledge and working methods of employees.
This will add further service value to customers beyond that which comes from digital
services alone. The importance of expertise and trust – the traditional competitive
advantages of the financial sector – will become even more pronounced in the future, as
digital services increase the amount of data available. This data has to be refined into
confidential information that has value for the customer. The challenge lies in finding the
right methods to combine expertise with digital channels, when expertise is available
only at fixed times and digital channels are open all the time. There is a clear need for
flexible hours and telework, and the issue is equally relevant to managers as well as
employees.

The third way is to create a corporate culture that ensures that customer expectations for
digital services are met. Everything that can be digitised has to be digitised. This will
require investments not only in information technology, but also in leadership, incentive
and reward systems. As a strategic task, the responsibility falls on the company’s board
of directors.
 TABLE OF CONTENT

Chapters Content Page No.

Part I
1. Introduction of Banking
a. Meaning and Definition 1-2
b. Indian Banking Industry 3-8
c. Indian Banking System 9-13
d. Major Players in India 14
Introduction to Digitalization
a. Meaning and Definition 15
b. Digital Banking 16-21
3. Company Profile
a. History of HDFC Bank 22
b. Mission, Vision and Objectives 22-24
c. Digital Services of HDFC Bank 25-38
d. Swot Analysis of HDFC Bank 39-41
Part II
4. Objectives of the study 42
5. Research Methodology 43-45
a. Research Design 43
b. Research Type 44
c. Sampling Design 44
d. Sources of Data Collection 45
e. Data Collection Tools 45
f. Methods of Data Collection 45
Part III
7. Data Analysis & Interpretations 46-51
8. Findings 52
9. Conclusion 53
10. Suggestions 54
11. Limitations 55
12. Bibliography 56
13. Appendix 57-59
 INTRODUCTION OF BANKING

MEANING AND DEFINITION:

Bank is an institution that deals in money and its substitutes and provides crucial
financial services. The principal type of baking in the modern industrial world is
commercial banking & central banking.

Banking Means "Accepting Deposits for the purpose of lending or Investment of deposits
of money from the public, repayable on demand or otherwise and withdraw by cheque,
draft or otherwise."

-Banking Companies (Regulation) Act,1949

The concise oxford dictionary has defined a bank as "Establishment for custody of
money which it pays out on customers order." In fact this is the function which the
bank performed when banking originated.

"Banking in the most general sense, is meant the business of receiving, conserving &
utilizing the funds of community or of any special section of it."

-By H.Wills & J. Bogan

"A banker of bank is a person, a firm, or a company having a place of business where
credits are opened by deposits or collection of money or currency or where money is
advanced and waned.

-By Findlay Sheras

Thus
A Bank:

 Accept deposits of money from public.

 Pays interest on money deposited with it.
 Lends or invests money.
 Repays the amount on demand,

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  Allow the money deposited to be withdrawn by cheque or draft.

ORIGIN OF WORD BANK:

The origin of the word bank is shrouded in mystery. According to one view point the
Italian business house carrying on crude from of banking were called banchi bancheri"
According to another viewpoint banking is derived from German word "Branck" which
mean heap or mound. In England, the issue of paper money by the government was
referred to as a raising a bank.

ORIGIN OF BANKING:

Its origin in the simplest form can be traced to the origin of authentic history. After
recognizing the benefit of money as a medium of exchange, the importance of banking
was developed as it provides the safer place to store the money. This safe place ultimately
evolved in to financial institutions that accepts deposits and make loans i.e., modern
commercial banks.

2
INDIAN BANKING INDUSTRY

BANKING INDUSTRY AT GLANCE

Banking is nearly as old as civilization. The history of banking could be said to have
started with the appearance of money. The first record of minted metal coins was in
Mesopotamia in about 2500B.C. the first European banknotes, which was handwritten
appeared in1661, in Sweden. Cheque and printed paper money appeared in the 1700’s
and 1800’s, with many banks created to deal with increasing trade.

The history of banking in each country runs in lines with the development of trade and
industry, and with the level of political confidence and stability. The ancient Romans
developed an advanced banking system to serve their vast trade network, which extended
throughout Europe, Asia and Africa.

Modern banking began in Venice. The word bank comes from the Italian word “ban co”,
meaning bench, because moneylenders worked on benches in market places. The bank of
Venice was established in 1171 to help the government raise finance for a war.

At the same time, in England merchant started to ask goldsmiths to hold gold and silver
in their safes in return for a fee. Receipts given to the Merchant were sometimes used to
buy or sell, with the metal itself staying under lock and key. The goldsmith realized that
they could lend out some of the gold and silver that they had and charge interest, as not
all of the merchants would ask for the gold and silver back at the same time. Eventually,
instead of charging the merchants, the goldsmiths paid them to deposit their gold and
silver.

The bank of England was formed in 1694 to borrow money from the public for the
government to finance the war of Augsburg against France. By 1709, goldsmith were
using bank of England notes of their own receipts.

New technology transformed the banking industry in the 1900’s round the world, banks
merged into larger and fewer groups and expanded into other country.
3
HISTORY OF INDIAN BANKING INDUSTRY

Banking in India has a long and elaborate history of more than 200 years. The beginning
of this industry can be traced back to 1786, when the country’s first bank, Bank of
Bengal, was established. But the industry changed rapidly and drastically, after the
nationalization of banks in 1969.

Indian Banking sector is dominated by Public sector banks (PSBs) which accounted for
72.6% of total advances for all SCBs as on 31st March 2008. PSBs have rapidly
expanded their foot prints after nationalisation of banks in India in 1969 and further in
1980. Although there is a restrictive entry/expansion for private and foreign banks in
India, these banks have increased their presence and business over last 5 years.

Peculiar characteristic of Indian banks unlike their western counterparts such as high
share of household savings in deposits (57.4% of total deposits), adequate capitalization,
stricter regulations and lower leverage makes them less prone to financial crisis, as was
seen in the western world in mid FY09.

The Scheduled Commercial Banks (SCBs) in India have shown an impressive growth
from FY04 to the mid of FY09. Total deposits, advances and net profit grew at CAGR of
19.6%, 27.4% and 20.2% respectively from FY03 to FY08. Banking sector recorded
credit growth of 33.3% in FY05 which was highest in last 2 and half decades and credit
growth in excess of 30% for three consecutive years from FY04 to FY07, which is best in
the banking industry so far. Increase in economic activity and robust primary and
secondary markets during this period have helped the banks to garner larger increase in
their fee based incomes.

A significant improvement in recovering the NPAs, lowest ever increase in new NPAs
combined with a sharp increase in gross advances for SCBs translated into the best asset
quality ratio for banking sector in last two decades. Gross NPAs to gross advances ratio
for SCBs decreased from the high of 14% in FY2000 to 2.3% in FY08.

4
With in the group of banks, foreign and private sector banks grew at higher rate than the
industry from FY03 to FY08 primarily because of lower base effect and rapid expansion
undertaken by these banks. In FY09, overall growth in credit and deposits was led by
PSBs. However, growth of private and foreign banks was significantly lower in FY09
due to their high exposure to stressed sectors and problems at parent level for foreign
banks.

Unsecured bank credit has risen over the years and stood at 23.3% of bank credit in FY08
as compared to just 10.9% in FY2000. Lending to sensitive sector has also grown at
CAGR of 46.1% from FY05 to FY08. In the backdrop of the economic downturn, we feel
that the excellent performance seen in last five years ended FY08 will be difficult to
repeat in coming years.

We expect that with the downturn in the economy, credit and deposit growth will
moderate in coming years. Credit growth will be led by spending on the infrastructure
while retail credit will show a moderate growth. Margin pressures due to lag effect of rate
cuts between interest rate on deposits and advances, lower treasury gains and core fee
income and increasing in provisions for NPAs is likely to put pressure in the bottom line
of the banks.

Going forward, PSBs’ which are close to the required lower level of government stake
and have concentrated presence in particular region are likely to consider its merger with
other PSB as an important option if they want to sustain the growth seen in past.

FUNCTIONS OF BANKS

Primary Functions

 Acceptance of Deposits
 Making loans & advances
 Loans
 Overdraft
 Cash Credit
5
  Discounting of bills of exchange

Secondary Functions

 Agency functions
 Collection of cheques & Bills etc.
 Collection of interest and dividends.
 Making payment on behalf of customers
 Purchase & sale of securities
 Facility of transfer of funds
 To act as trustee & executor.

Utility Functions

 Safe custody of customers valuable articles & securities.

 Underwriting facility
 Issuing of traveller's cheque letter of credit.
 Facility of foreign exchanges
 Providing trade information
 Provide information regarding credit worthiness of their customer.

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STRUCTURE

The Indian banking system can be classified into nationalized banks, private banks and
specialized banking institutions. The industry is highly fragmented with 30 banking
units contributing to almost 50% of deposits and 60% of advances. The Reserve
Bank of India is the foremost monitoring g body in the Indian Financial sector. It is a
centralized body that monitors discrepancies and shortcomings in the system.

Banking segment in India functions under the umbrella of Reserve Bank of India (RBI) –
the regulatory, central bank. This segment broadly consists of:

1. Commercial Banks
2. Co-operative Banks
The commercial banking structure in India consists of:

1. Schedule Commercial Banks

2. Unscheduled Banks
.Schedule Commercial Banks constitute of those banks, which have included second
schedule of Reserve Bank of India (RBI) act 1934. RBI in turn includes only those banks
in this schedule that satisfy the criteria laid down vide section 42 (60 of the act) this sub
sector can broadly classified into:

1. Public Sector
2. Private Sector
3. Foreign Sector

Public sector banks have either government of India Reserve Bank of India (RBI) as the
majority shareholder. This segment comprises of:

1. State Bank of India (SBI) and its subsidiaries

2. Other Nationalized Banks

7
Industry estimates indicate that out of 274 commercial banks operating in the
country, 223 banks are in the public sector and 51 are in the private sector. These
private sector banks include 24 foreign banks that have begun their operations here. The
specialized banking institutions that include cooperatives, rural banks, etc. form a part of
the nationalized banks category.

8
 INDIAN BANKING SYSTEM

Reserve Bank of India

Schedule Banks Non-Schedule Banks

Central co-op
State co-op Commercial Commercial Banks
Banks and
Banks Banks Primary Cr.
Societies
Societies

Indian Foreign

Public Sector Private Sector HDFC,

Banks Banks ICICI, etc
ICICI etc.

State Bank of Other Nationalized Regional

India and its Banks Rural Banks
Subsidiaries

9
 CLASSIFICATION ON THE BASIS OF OWNERSHIP

On the basis of ownership banks are of the following types :

PUBLIC SECTOR BANKS

Public sector banks are those banks which are owned by the Government. The Govt. runs
these Banks. In India 14 banks were nationalized in 1969 & in 1980 another 6 banks were
also nationalized. Therefore in 1980 the number of nationalized bank 20. But at present
there are 19 banks are nationalized. All these banks are belonging to public sector
category. Welfare is their principle objective.

PRIVATE SECTOR BANKS

These banks are owned and run by the private sector. Various banks in the country

such as ICICI Bank, HDFC Bank etc. An individual has control over there banks in

preparation to the share of the banks held by him.

CO-OPERATIVE BANKS

Co-operative banks are those financial institutions. They provide short term &

medium term loans to their members. Co-operative banks are in every state in India.

Its branches at district level are known as the central co-operative bank. The central

Co-operative bank in turn has its branches both in the urban & rural areas. Every state

Co-operative bank is an apex bank which provides credit facilities to the central co

operative bank. It mobilized financial resources from richer section of urban

population by accepting deposit and creating the credit like commercial bank and

borrowing from the money mkt. It also gets funds from RBI.

10
ACCORDING TO RESERVE BANK OF INDIA ACT 1935

Banks are classified into following two categories son the basis of reserve bank Act.
1934.

SCHEDULED BANK

These banks have paid up capital of at least Rs. 5 lacks. These are like a joint stock
company. It is a co-operative organization. These banks find their mention in the second
schedule of the reserve bank.

NON SCHEDULED BANK

These banks are not mentioned in the second schedule of reserve bank paid up capital of
these banks is less then Rs.5 lacks. The no. such bank is gradually tolling in India.

CLASSIFICATION ACCORDING TO FUNCTION

On the basis of functions banks are classified as under

COMMERCIAL BANK

The commercial banks generally extend short-term loans to businessmen & traders.
Since their deposits are for a short-period only. They cannot lend money for a long
period. These banks reform various types or agency job for their customers. These banks
are not in a position to grant long-term loans to industries because their deposits are only
for a short period. The majority of joint stock banks in India are commercial banks which
finance trade & commerce only.

SAVING BANKS

The principle function of these banks is to collect small saving across the country and put
them into productive use. These banks have shown marked development in Germany &
Japan. These banks are established in HAMBURG City of Germany in 1765. In India a
department of post offices functions as a saving banks.

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FOREIGN EXCHANGE BANKS

These are special types of banks which specialize in financing foreign trade. Their main
function is to make international payments through purchase & sale of exchange bills. As
it well known, the exporters of a country prefer to receive the payments for exports in
their own currency. Thus these banks convert home currency into foreign currency and
vice versa. It is on this account that these banks have to keep with themselves stock of the
currency of various countries. Along with that, they have to open branches in foreign
countries to carry on their business

INDUSTIRAL BANKS

The industrial banks extends long term loans to industries. In fact, they also help
industrials firms to sell their debentures and shares. Some times, they even underwrite the
debentures & shares of big industrial concerns.

These banks found their origin in India. These banks made a significant contribution to
the development of agricultural and industries before independence. Mahajans, rural
moneylenders and jweelers have been the forerunner of these banks in India.

INDIGENIOUS BANKS

These banks found their origin in India. These banks made a significant contribution to
the development of agricultural and industries before independence. Mahajans, rural
moneylenders and jweelers have been the forerunner of these banks in India.

CENTRAL BANK

The central bank occupies a pivotal position in the monetary and banking structure of the
country. The central bank is the undisputed leader of the money market. As such it
supervises controls and regulates the activities of commercial banks affiliated with it. The
central bank is also the higher monetary institution in the country charged with the duty
& responsibility of carrying out the monetary policy formulated by the government.
India's central bank known as the reserve bank of India was set up in 1935.

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AGRICULTURAL BANK

The commercial and the industrial banks are not in a position to meet the credit
requirements of agriculture. Hence, there arises the need for setting up special type of
banks of finance agriculture. The credit requirement of the farmers are two types. Firstly
the farmers require short term loans to buy seeds, fertilizers, ploughs and other inputs.
Secondly, the farmers require long-term loans to purchase land, to effect permanent
improvements on the land to buy equipment and to provide for irrigation works. There
are two types of agriculture banks.

1. Agriculture co-operative banks, and

2. Land mortgage banks. The farmer provide short-term credit, while the letter
extend long-term loans to the farmers.

OPPORTUNITIES

The Banking sector is considered the most lucrative option in today’s job market. In the
industry, a position in Treasury or Forex is considered right on top and this is followed by
careers in Private Banking, Investment Banking and Retail Banking. One could work in a
variety of areas in banking industry including Recurring Deposit account, banking
officer, probationary officer, loan officer, assessor, personal loan officer, home loan
officer, home loan agent, loan manager, mortgage loan underwriter, loan processing
officer, accountant, product marketing and sales executive, and customer service
executive among others.

In the Financial Services, some of the important jobs include that of a stockbroker who is
essentially a person who buys and sells securities on behalf of individuals and institutions
for some commission. While some brokers like to practice with individual clients others
work for institutions. Brokers who work for institutional investors are often called
securities traders. Many prefer to work as dealers, advisors and securities analysts.
Security analysts are those who advise companies on floatation’s of shares as they are
expected to have sound knowledge of capital markets.

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MAJOR PLAYER IN INDIA

1. HDFC BANK LTD

2. ICICI BANK LTD
3. STATE BANK OF INDIA LTD
4. PUNJAB NATOINAL BANK LTD
5. BANK OF BARODA LTD
6. FEDERAL BANK LTD
7. AXIS BANK LTD
8. ING VYSYA BANK LTD
9. IDBI BANK LTD
10. INDUSIND BANK LTD
11. YES BANK LTD

14
 INTRODUCTION TO DIGITALIZATION

Digitalization is the use of digital technologies to change a business model and provide
new revenue and value-producing opportunities; it is the process of moving to a digital
business.

Integration of digital technologies into everyday life by the digitization of everything that
can be digitized.

“Digital” is the new buzz word in the banking sector, with banks all around the
globe hopping onto the digital bandwagon. Just like how the introduction of
mobile technology massively disrupted innovation in the banking sector, digital
is now doing the same. Banks of all sizes are making sizeable investments in
digital initiatives in order to maintain a competitive edge. So, what does “digital”
actually mean?

It definitely provides a glimpse into the future of banking. What digital essentially does is
that it uses technology to design experiences, both seen and unseen. “Digital is all about
making what can be seen unseen – making services so smooth and seamless that it
becomes invisible to the customer”. “Despite all the automation and improvements that
digital banking has the potential to achieve, customers and their needs still form the very
core of the banking sector.”

It is the simplicity of design, the removal of friction and the ability to improve the
customer experience.

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 DIGITAL BANKING

MEANING AND DEFINITION

“Digital Banking – a new concept in the area of electronic banking, which aims to enrich
standard online and mobile banking services by integrating digital technologies, for
example strategic analytics tools, social media interactions, innovative payment solutions,
mobile technology and a focus on user experience.”

Digital banking is:

 Delivering a customized but consistent FI brand experience to customers across all

channels and points of interaction...
 ...underpinned by analytics and automation...
 ...and requiring a change in the operating model, namely products and services,
organization, culture, and skills and IT...
 ...in order to deliver demonstrable and sustainable economic value.

Digital Banking is the application of technology to ensure seamless end-to-end

processing of banking transactions/operations; initiated by the client, ensuring maximum
utility; to the client in terms of availability, usefulness and cost; to the bank in terms of
reduced operating costs, zero errors and enhanced services.

Benefits to the bank:

1. Lower operating costs through;

i. the elimination of costly back-office processing operations,

16
 ii. fewer (or ideally no) errors,
iii. smaller branch footprint (the typical branch can become a kiosk affair,
providing technology interfaces for the client to use plus the ability to deal with
banking specialists via a video link) – a minimum number of actual staff will be
required.
iv. concentrating banking/business specialists in a single centre, who are then
available to clients via a technology link (either on their mobile, pc or via a
kiosk branch).

Operating cost savings of between 20% to 40% could be achieved this way, according to
industry experts. Cutting costs has the opposite effect on profits – they go up.

2. Dumping legacy systems;

i. Make no mistake - one of the biggest drawbacks to going ‘Digital’ is this
irrational clinging to legacy systems (developed in the 1960s and 1970s) that
hold progress back. Banks plead the huge cost of making the change. They are
wrong. The ultimate costs of not making the change are far greater.

Benefits to the customer:

1. Improved services and product offerings;

i. 24/7 bank services and availability through your mobile, pc or kiosk branch,
ii. ‘smart banking’ applications that allow ALL transactions to be completed from
the device of your choice, from beginning to end (with clear instructions and
fail safe mechanisms),
iii. access to a FULL range of services (savings, investments, insurance, loans,
mortgages, foreign currency, etc.),
iv. new useful client services such as warnings, notifications, budgeting,
expenditure analyses, savings programs, calculators (you name it – the range is
endless),
v. Lower charges (and therefore cheaper banking),
vi. Banking that meets the client’s needs (not the banks)

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 vii. Banking will mean digital banking from 2015
2. 69% of customers already use the Internet to buy financial products
3. Customers are willing to pay for digital banking
4. Banks need to improve their digital offer to attract new customers

Digital banking is set to overtake branch networks as the preferred access channel for
how customers will interact with their bank by 2015.

Online and mobile are preferred channels, particularly for Generation Y customers

Immersed in digital

Digital communication is pervasive; from mobile phones to tablet computers, we are

immersed in digital. Recent development of new digital features has led to:

 Improvements in user-experience design through interactive, game-like interfaces that are

starting to merge the boundaries between the real and the virtual and bringing data to life
through rich visualisations.
 Advances in mobile devices and networks, providing new services such as enhanced digital
security and the ability to access the Internet from anywhere (partially limited by high
international roaming charges).
 The rise of social media and collaboration tools, empowering customers and employees, and
moving control of the ‘brand message’ from businesses to consumers.

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 Innovation in digital analytics and predictive models, driving deeper insight into customers’
behaviour and enabling highly targeted and relevant treatment strategies to be executed
through digital media.
 New channel integration technologies, enabling a more seamless end-to-end experience for
customers with their bank.

Generation Y is fully embracing digital communication and is the customer group with
whom banks need to establish customer primacy relationships. The advantage of being
the primary bank is increased share of wallet and higher revenue over time, based on a
strong sense of customer loyalty – and good customer service.

PwC research shows that Generation Y are more than 20% more likely to use, or consider
using online or mobile banking services, than Baby Boomers and nearby twice as likely
as ‘matures’. According to this research, their primary bank is consistently more likely to
be the bank of choice for customers when they are planning to buy another banking
product.

Consumer expectations are changing with digital interaction

Present day consumers expect high quality digital communication. Rich content including
elegant designs, instant search results and interactive features. Bank websites, especially
online banking sections, are now required to offer a pleasant experience while remaining
highly functional.

It is still common for banks to send out account statements using the postal service;
however, for many people digital banking offers 24/7 account balance control – there is a
clear preference, especially for younger customers, to want instantaneous access to their
accounts. The posted account statement is snail mail in comparison. The utility of snail
mail, by contrast, is rapidly dying.

Consumers have access to more information than ever before, they now communicate
with more people and more frequently – traditional word-of-mouth has a completely
different meaning when one considers the immediacy of Facebook, Twitter or even
email. Access to information and the ease with which consumers can share views with

19
those they know – or even ‘the world’ – is dramatic. Good experiences can be easily
shared online... as can negative ones.

It is important that banks understand the importance of customer thinking in deciding

where to trust their money and in choosing their primary banking relationship. This has
long-term influence personally, but also as an element of influence on their friends and
those they communicate with online.

Banks should consider four main aspects of a robust digital offering:

1. Customer attitudes and behaviour are changing

2. Digital is preferred globally.

3. Digital is a part of Generation Y’s lifestyle and this is the key time for them to decide
on their primary banking relationship.

4. Digital is evolving – technology devices and software all serve to disrupt traditional
means of communication. Simultaneously, each brings opportunity.

Security is the foundation of digital banking

Security extends from the bank’s hardware to the user’s device – whether a PC/Mac at
home, an iPad or the newest Smartphone. In all cases, digital banking must employ
robust security technologies which protect the communication, user information and the
bank’s IT infrastructure.

Indeed, it is clear that for digital banking to be a rewarding experience for the customer
and a profitable growth area for the banks, technology partners, payment processing
service providers and mobile phone operators – there ought to be a comprehensive
agreement on shared technology standards and processes. The European Commission has
just issued a Green Paper, ‘Towards an integrated European market for card, internet and
mobile payments’ which addresses many of the issues while being much broader than
online banking itself. Luxembourg’s LuxTrust is a strong step here in moving digital
banking forward in terms of a security standard.

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Digital in Private Banking

Private Banks have been slow to introduce digital technology applications for their
customers arguing that the private banking industry is a personal and pre-dominantly face
to face business with little need for such applications to enhance the relationship. Security
and privacy issues are two of the reasons cited for not embracing these new
developments.

However, there are a number of arguments for private banks to seriously evaluate their
digital strategy and make it one of the cornerstones of their service offering and brand
building activities. As the next generation of private banking clients start to dominate,
private banks will need to avoid the image of an old out-of-date bank that has lost touch
with its clients.

Private banking is about being a trusted advisor as well as being connected and
recommended. Since the digital revolution, which started in the 1990’s, people are
increasingly turning to the Internet not only to inform themselves regarding financial
products but also the reviews of other customers using the products and services.
Customers are already using social media to share their views on financial products and
services.

There is some recognition here in Luxembourg of the increasing place digital

communication is taking, as noted in The PwC Global Private Banking / Wealth
Management Survey 2011 which found that 38 percent of private bankers expected to
interact more with their clients through social media in the next two years and that 56
percent of private banks expected to use mobile technologies over the same period.

21
 COMPANY PROFILE

History of HDFC Bank

The housing development Finance Corporation Limited (HDFC) was amongst the first to
receive as in principal approval from the Reserve Bank of India (RBI) to set up a bank in
the private sector, as part of the RBI’S liberalization of the Indian Banking Industry.
The bank was incorporated in August 1994 in the name of HDFC Bank Limited, with its
registered office in Mumbai, India. The Bank commenced operation as a scheduled
Commercial Bank in January 1995.

Mission, Vision and Objectives

The mission of HDFC is to become “a world class Indian bank”, benchmarking
themselves against international standards and best practices in terms of product
offerings, technology, service levels, risk management and audit and compliance. The
objective is to build sound customer franchises across distinct business so as to be a
preferred provider of banking services for target retail and wholesale customer segments
and to achieve a healthy growth in profitability, consistence with the Bank’s risk appetite.
The bank is committed to maintain the highest level of ethical standards, professional
integrity, corporate governance and regulatory compliance. HDFC Bank’s business
philosophy is based on five core values: Operational Excellence, Customer Focus,
Product Leadership, People and Sustainability.

HDFC Bank’s business objectives emphasize the following:

 Increase their market share in India’s expanding banking and financial services
industry by following a disciplined growth strategy and delivering high quality
customer service.
 Leverage their technology platform and open, scale able systems to deliver more
products to more customers and to control operating costs.
 Maintain their current high standards for asset quality through disciplined credit
risk management.

22
  Develop innovative products and services that attract our targeted customers and
address inefficiencies in the Indian financial sector.
 Continue to develop product and services that reduce our cost of funds.
 Focus on high earning growth with low volatility.

Bank logo

Type Private company

Traded as BSE: 500180

NSE: HDFCBANK
NYSE: HDB
BSE SENSEX Constituent
CNX Nifty Constituent

Industry Banking, Financial services

Founded August 1994

Headquarters Mumbai, Maharashtra, India

Area served Worldwide

Key people Aditya Puri (MD)[1]

Products Investment Banking

Investment Management
Wealth Management
Private Banking
Corporate Banking

23
 Private Equity
Finance and Insurance
Consumer Banking
Mortgages
Credit Cards[2]

Revenue ₹74,373.22 crore(US$11 billion)

(2016)[3]

Profit ₹12,817.33 crore(US$1.9 billion)

(2016)[4]

Total assets ₹687,892 crore(US$100 billion)

(2015)[4]

Total equity ₹505.64 crore(US$75 million) [5]

Number of 76,286 (March 2015)[6]

employees

Website HDFCBank.com

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 Digital Services at HDFC Bank

HDFC Bank provides a very good digital service to the customer for their transaction.
Through these services the customer of the bank can also access their transaction. Digital
services include-

1. Fund transfer

HDFC Bank allows various categories of Fund Transfer options for safe and secure fund
transfers which make banking easy. The fund transfer options are:

E-Monies National Electronic Funds Transfer: Which is easy, fast and convenient
and supports fund transfers from any bank branch to any other bank branch anywhere in
India.
RTGS Fund Transfer: Real Time Gross Settlement is the fastest form of inter-bank
fund transfer in real time which is speedier, faster and has no geographical limits.
Visa Card Pay: A facility used to pay multiple Visa Credit Card bills issued by any bank
form the comfort of one’s home and the payment is safe and charges at a negligible fee.
IMPS: Immediate Payment Service from HDFC Bank is an instant real time inter-bank
electronic fund transfer service which can be done even on Sundays or Bank holidays or
late at night.

2. Online Banking
With an increasing trend of internet usage, everything has been digitalized and the bank
is not behind in this race. The bank offers the facility of Online banking to its customers
which is safe and reduces unnecessary hassles of visiting the branch to carry out any
transaction. Online banking service offered by HDFC Bank includes:

Net Banking: Net Banking is HDFC Bank’s Internet Banking service. Providing up-to-
the-second account information, Net Banking manages customer’s account from the
comfort of costumer’s mouse- anytime, anywhere.

25
Say goodbye to long queues and paper work. Presenting one more way for Net Banking.
Customer can now call the Phone Banking numbers in your city to register for Net
banking.

Net Banking offers a host of banking transactions from the comfort of the customer’s
home. One can check the bank account balance, book a Fixed or Recurring Deposit,
recharge the mobile or DTH Connection, paying off utility bills, paying taxes, applying
for IPO, invest in Mutual Funds online to name a few. The process is fast and completely
secured without having to worry about any fraud or theft.

Bank industry leading service provides a host of features at customer finger-tips:

 View Account Balances & statements

 Transfer Funds between accounts
 Create Fixed Deposits Online
 Request a Demand Draft
 Pay Bills
 Order a cheque Book
 Request stop payment on cheques
 And lots more

Benefit of Net Banking

Internet Banking is the most convenient and powerful way to manage customer’s
account. Net Banking is Real Time, giving them up-to-the-second details on customer’s
account. It can be accessed anytime, from anywhere, giving them complete control over
their finances. There are no queues to stand in, or turn to wait for. With Net Banking you
are in control.

HDFC Bank’s Net Banking is secure. Using industry-standard technologies and

infrastructure, our service gives you peace of mind. So next time you think of visiting
your branch, switch on your PC instead. View the Net Banking Demo and see how easy it
is it use.

26
Credit Card Net Banking: Through this facility the customer can view the credit card
activities online, pay the credit card bills, view Credit Card Statements online, know the
unbilled transactions and get the complete account information
Email statements: A savings or a current accountholders are eligible to get their account
statements on their email id. The Savings accountholders get a monthly statement and the
Current Accountholders get daily, weekly or monthly statements. The statements are free
of cost and display all the relevant transactions of the relevant period.
Loan accounts online: This feature enables the bank to provide post loan services to the
customers. Loan customers of the bank can log in and view their loan summary,
transaction history and loan account details.

3. Phone Banking
The bank extends banking information to your phone where information is available at
the end of a simple phone call.
The customer can also call the bank and effect transactions over the phone. Transactions
like reporting loss of ATM, credit, forex or prepaid cards, checking account balance and
cheque status, ordering cheque books, stopping cheque payments, credit card related
queries can all be solved by a call to the bank’s phone banking division.
Now your bank account is now just a phone call away. Through Phone Banking you can:

 Check your account balance.

 Enquire on the cheque status.
 Have a mini statement faxed across to you.
 Request for a cheque book / Account statement.
 Enquire on your fixed deposits / TDS.
 Open a fixed deposit
 Request for Demand Draft / Managers Cheques.
 Transfer funds amongst your linked accounts
 Pay utility and HDFC Bank Credit Card bills.
 Do stop cheque payments.

27
  Report loss of your ATM /Debit Card.
 Product information.

4. Mobile Banking
Ever since the internet has taken over the world, the banking industry has undergone a
major shift. Before the internet was so popular for carrying out banking transactions,
people had to go the bank, stand in long queues and then wait for their turns even if they
only wanted to check their account balance, withdraw cash or transfer money. But now
they no longer need to visit a bank to carry out different kinds of banking transactions
since they can use internet banking or mobile banking facilities.
Mobile banking has simplified the lives of many people and given them the option to
send money, receive money, check account balance, pay bills, etc. using their mobile
phones. And the best part is that banks offer mobile banking services for free.

Types of Mobile Banking Services

Banks provide mobile banking services to their clients in the ways listed here:
• Mobile Banking over Wireless Application Protocol (WAP)
• Mobile Banking over SMS (also known as SMS Banking)
• Mobile Banking over Unstructured Supplementary Service Data (USSD)
These mobile banking services have been discussed in detail here:

Mobile Banking over WAP

The customers can download the mobile application of the concerned bank on their
smartphones and then use it to avail various services provided by the bank. They need to
register for mobile banking separately and receive their login credentials to use mobile
banking applications, simply known as mobile apps. Most banks provide mobile apps for
iOS and Android devices.
Different banks offer mobile apps to their customers to help them carry out common
banking transactions conveniently. Some banks offer different mobile apps for different
banking services. For instance, the bank may offer an e-Passbook app that only serves the

28
purpose of account balance check since the app acts like a digital passbook and there is
another mobile app for other services such as funds transfer, bill payment, and more in
addition to balance check. The customers can choose to download one or more apps
provided by the bank to avail mobile banking services. Some of the major mobile
banking services have been mentioned here:
• Account Access: Customers can easily access their bank account using their
smartphones by downloading the mobile banking All they need is to use their User ID
and password to access their accounts. They can then carry out different banking
transactions instantly.
• Balance Enquiry: One of the main reasons why people used to visit the bank was
to keep their passbooks updated so that they always knew their current balance. When the
balance enquiry service was offered through ATM, people started using it instead of
visiting the bank. Now, it is even more convenient to check account balance using the
mobile banking
• e-Passbook: Some banks offer a separate digital passbook mobile app that
customers can download to check their previous transactions and the latest account
balance while others just have this service as a part of their main mobile banking There is
no need to visit a bank or ATM for balance enquiry or account statement.
• Account Statement: If you want to check your bank account statement, you no
longer need to go to the bank or ATM since you can get the statement on the mobile app
of your bank. Since there are only a few free ATM transactions available to everyone
these days, it is better to avail them only for cash withdrawal; account balance or account
statement should be checked using the mobile app. You can also download your account
statement in PDF format and save it on your phone.
• Fund Transfer: If internet banking and mobile banking have made the lives of
people any easier, it is mainly because of this service. People can now transfer money
from their bank account to an account in their own bank or another bank easily. They
may have to pay a nominal charge to carry out interbank transfers but intra-bank transfers
are usually free. IMPS, NEFT or RTGS transactions can also be carried out easily using
mobile apps.

29
• Bill Payment: Mobile banking has made it easy to pay your mobile, credit card or
utility bills. You can even schedule payments on a certain day of the month so that you
do not have to worry about the payments. There is no need to stand in long queues to pay
your phone bills, credit card bills, etc.
• Branch Locator: If you are in a new city or area, you may need to find a branch of
your bank then you can easily use the mobile banking app to find it. Most banks have a
‘Branch Locator’ that you can use to find the nearest branch.
• ATM Locator: When you are in a new city or area, you might want to withdraw
cash from an ATM. The easiest way to find an ATM of your bank is to open your mobile
banking app and go to the “ATM Locator.” You will be able to find the address and exact
location of the ATM within your vicinity.
• Requests: There is no need to visit the bank to request a cheque book, new debit
card, credit card, duplicate debit card, etc. since you can do so easily using the mobile
app. Most banks also offer the service to hotlist or block a debit or credit card in the case
of loss or theft.

Mobile Banking over SMS

Most banks offer mobile banking services over SMS. The customers need to sign up for
this service, known as SMS Banking, by registering their mobile number. Then, they can
send SMS to the bank to inquire about their account balance, check the mini account
statement, etc. The bank then replies with an SMS that contains the information requested
by the customer.
The customers do not need to own a smartphone or internet access to avail SMS banking
services. Banks have a specific phone number registered and an SMS format that the
customers need to follow to avail of this service.
For instance, to check the available balance in their account, they may have to send an
SMS in the format: AVAIL BAL XXXX where XXXX is the last 4 digits of the account
number. The bank replies with an SMS with the current available balance in the account.
It is important to note here that the mobile number registered with the bank and the one
you use to send the SMS needs to be same to avail this service.

30
Mobile Banking over USSD
Banks offer mobile banking over USSD service to people who do not own a smartphone
or have access to the internet. They can simply use USSD codes provided by the banks to
avail banking services. The customers dial a prefix code and click send. Then, they
receive a menu containing the banking services such as balance enquiry, mini account
statement, etc. that they can avail using their phone. This service is quite popular in rural
areas where most people do not own smartphones and do not have access to the internet.

Mobile Banking Features & Benefits

There are plenty of reasons why mobile banking has gained so much popularity ever
since it was introduced in India. Here are a few features and benefits of mobile banking:
• One of the main benefits of mobile banking is the convenience of having banking
services at your fingertips. There is no need to go to a bank or ATM and wait for the bank
to open in order to check your account balance, transfer money, pay your bills or even see
your account statement. You can do it all using your mobile phone. Fund transfer
transactions may complete when the banks are open but you can check your account
balance or get account statement irrespective of the time or day.
• Banks know that everyone does not have access to the internet and that is why
they offer mobile banking services to their customers over SMS and USSD. People who
own smartphones and have access to the internet can download and use the bank’s mobile
apps while others can use the mobile banking SMS and USSD services. The customers
only need to use the right SMS format to avail SMS banking services and right prefix for
USSD services.
• Your bank account and your personal details are totally safe if you use mobile
banking The bank will give you a set of login credentials which you can use to sign into
your account and carry out the transactions. These login credentials are passed on to you
securely and since you are the only one who knows your login ID and password, your
account is always safe. Most banks allow you to enable two-step verification where you
can only carry out banking transactions if you enter the One-Time Password (OTP) sent
to your registered mobile number.

31
• Most people want to avail mobile banking services but think that it will cost them
a lot. However, they will be delighted to find out that banks offer these services for free.
You do not need to pay any extra charges to register for mobile banking Unlike ATM
transactions where you get a limited number of free transactions, you can check your
account statements, balance or pay your bills as many times as you want without paying
any charges. After the implementation of GST, you only have to pay a nominal charge to
transfer funds or pay your bills.

32
 PROS AND CONS

Pros of Mobile Banking

No more standing in long ques for transferring money for your parents living across the
state or renewing you cheque book. Gone are the days of pain that people used to go
through earlier. Things have got pretty easier.
Banking and financial sectors are developing secure and user-friendly mobile apps for
different types of smart phone operating systems.
The most important benefits of mobile banking:
• Facility of account access and management with all the information in your palm.
• Any payment, transaction and transfer made easy.
• Save time with error free transaction.
• Easy to use.
• You are able to see — all your historical transactions (to understand how your
spending was and where exactly you did).

Cons of Mobile Banking

Besides all the advantages (which we agree!) — Security is a major hitch.
With the increase of technology — there are groups of hackers and phishers who make
sure your bank account is compromised. Cyber theft — is a potential concern and a
mobile transaction is a target the hackers set first in their priority list.
Let us have a look at the drawbacks on where mobile banking needs some improvements.
• Improvisation on transaction security
• Reduction of transaction issue.
• Fixing of account access and balance access issues
• Better user interface and user experience issues

Uses of Mobile Banking:

33
Mobile Banking service provides a host of features at your finger-tips through SMS:

 Get your balance detail

 Obtain your last 3 transactions details
 Request a cheque book
 Stop a cheque payment
 Enquire cheque status
 Request an account statement
 Get fixed deposit detail
 Pay your bills

How is this different from making a call on mobile phone or using Phone Banking?

The differences between making a call on mobile phone and sending a text message are
as follows:

You are not required to dial a number; you send a text message i.e. a coded message to
5676712

HDFC Bank does not charge anything for this service and there is no airtime involved.
However, the Cellular Service Provider may levy a nominal charge for the SMS facility.

In Mobile Banking, you actually see your banking transactions on your mobile phone
screen as opposed to hearing a message through the phone.

How do avail of this service?

a) If you are opening an account with the bank, you can apply for MobileBanking
through the account opening document.

34
b) If you already have an account with the bank, you can apply for MobileBanking
through the combined Direct Banking Channels form. You can download the form and
call for a sales representative. Alternatively you can fill this form and hand it over to your
nearest branch.

c) If you already have an account with the bank and if you are registered for Net Banking
services, then you can register online using the 'Mobile Banking Registration' option
available inside Net Banking.

Does it cost anything?

No, this service is brought to you FREE from HDFC Bank. Also, since you are using the
text messaging service from your mobile phone, you do not incur any airtime charges in
making a phone call from your mobile phone. However, the Cellular Service Provider
may levy a nominal Value Added Services (VAS) charge for the SMS facility.

5. Insta Alerts
Insta Alert is a service through which the bank can proactively inform customers about
transactions / events that occurs in his bank account. This information can be given to the

35
customers via SMS on their mobile phone, or through an email to their mail id or both.
Alert could either be event based e.g. Salary Credit or Frequency based e.g. Weekly
balance of account. Alerts acts as an important value add in the service that bank provide
to the customers, as it will help in proactively informing the customers about their in the
minds of customers.
SMS & Email – your account transactions also generate a SMS or email alert where any
debit transaction, credit transaction and maintenance of account balance is alerted to the
customer if registered.

6. Insta Query
Insta query is a service that allows you to do a banking transaction on your mobile phone
without making a call. You can do your transaction using the SMS facility

What can I do using Insta Query?

 Get your balance details

 Obtain your last 3 transaction details
 Request a cheque book
 Stop a cheque payment
 Enquire cheque status
 Request an account statement
 Get Fixed Deposit details
 Request for Internet PIN re-generation

7. ATM
Automated Teller Machines or 24-hour Tellers are electronic terminals that let you bank
almost anytime. To withdraw cash, make deposits, or transfer funds between accounts,
you generally insert an ATM card and enter your PIN. Some financial institution and
ATM owners charge a fee, particularly to consumers who don’t have accounts with them
or on transactions at remote locations. Generally, ATMs must tell you they charge a fee
and its amount on or at the terminal screen before you complete the transaction. Check

36
the rules of our institution and ATMs you use to find out when or whether a fee is
charged.

It won’t be just if I start explaining what an ATM is. ATMs and cash dispensers are by
far the largest investment ever made in electronic self-service by financial institutions.
There are now over 13,395 ATM's in 2,764 cities/towns.

The banks are losing the cashier’s checks, check cashing and even cash dispensing to the
c-stores and grocery stores. They are asleep at the switch and watching more transactions
walk away to convenience stores and supermarkets that provide 24 hour access and
integrated transactions.

ATMs do provide a larger set of functions, such as check cashing, ticket sales or money
orders. We already know that cash dispensing as a dedicated function is a sustainable
applications, the question is whether that application can be incorporated successfully
into a more complex consumer product that offers multiple applications.

Cash withdrawal: Withdraw up to Rs.50, 000/- per day from your account. Fast cash
options provide the facility of withdrawing prefixed amounts. Ultra Fast Cash opetion
allows you to withdraw Rs.3000/- in one shot.

Balance Enquiry: Know your ledger balance and available balance.

Mini Statement: Get a printout of your last 8 transactions and your current balance.

Deposit Cash / Cheques: Available at all full function ATMs. Customers can deposit
both cash and cheques. / Cash deposited in ATMs will be credited to the account on the
same day (provided cash is deposited before the clearing) and cheques are sent for
clearing on the next working day.

Funds Transfer: Transfer funds from one account to another linked account in the same
branch.

PIN Changes: Change the Personal Identification Number (PIN) of ATM or Debit card.

37
Payments: The latest feature of h\HDFC ATMs, that this functionality can be used for
payment of bills, making donations to temples / trusts, buying internet packs, airtime
recharges for prepaid mobile phones and much more…

Others: Request for a cheque book from ATMs and our concerned branch will dispatch it
such that it reaches you within 10 working days.

Swot Analysis of HDFC Bank

Strengths

38
 HDFC bank is the India's leading private sector bank having 5,130 branches and 13,395
ATM's.
 HDFC bank is located in 2,764 cities/towns.
 The bank’s ATM card is compatible with all domestic and international Visa/Master
card, Visa Electron/ Maestro, Plus/cirus and American Express. This is one reason for
HDFC cards to be the most preferred card for shopping and online transactions.
 HDFC bank has the high degree of customer satisfaction when compared to other private
banks.
 The attrition rate in HDFC is low and it is one of the best places to work in private
banking sector.
 HDFC has lots of awards and recognition, it has received ‘Best Bank’ award from
various financial rating institutions like Dun and Bradstreet, Financial express,
Euromoney awards for excellence, Finance Asia country awards etc.
 It focus on product quality and service excellence.
 HDFC has good financial advisors in terms of guiding customers towards right
investments .

Weaknesses

 Competition from public sector and private sector banks means limited market share
growth
 HDFC lacks in aggressive marketing strategies like ICICI.
 The share prices of HDFC are often fluctuating causing uncertainty for the investors.

39
 Opportunities

 HDFC bank has better asset quality parameters over government banks, hence the profit
growth is likely to increase.
 The companies in large and SME are growing at very fast pace. HDFC has good
reputation in terms of maintaining corporate salary accounts.
 HDFC bank has improved its bad debts portfolio and the recovery of bad debts are high
when compared to government banks.
 HDFC has very good opportunities in abroad.
 Greater scope for acquisitions and strategic alliances due to strong financial position.

Threats

 HDFC’s nonperforming assets (NPA) increased from 1.33 % to 1.40%. Though it is a

slight variation it’s not a good sign for the financial health of the bank.
 The non banking financial companies and new age banks are increasing in India.
 The government banks are trying to modernize to compete with private banks.

40
 Foreign banks that offer complex products

OBJECTIVE OF THE STUDY

 To identify the awareness and usage of Digital-Banking.

 To study the impact of digitalization.
 To know how much banking services has been improved.
 To study the satisfaction level of the respondents.

41
 RESEARCH METHODOLOGY

Research methodology is the process used to collect information and data for the purpose
of making business decisions. The methodology may include publication research,
interviews, surveys and other research techniques.

Research Design
A research design serves as a bridge between what has been established (the research
objectives) and how to accomplish these objectives. In fact, the research design is the
conceptual structure within which research is conducted; it constitutes the blueprint for

42
the collection, measurement and analysis of data. More explicitly, the design decisions
happen to be in respect of:
i) What is the study about?
ii) Why is the study being made?
iii) Where will the study be carried out?
iv) What type of data is required?
v) Where can be the required data found?
vi) What period of time will the study include?
vii) What will be the sample design?
viii) What technique of data collection will be used?
ix) How will the data be analyzed?
x) In what style will the report be prepared?

The function of research design is to provide for the collection of relevant evidence with
minimal expenditure of effort, time and money. But how all these can be achieved
depends mainly on the research purpose.

Research Type:

In this report I have used Descriptive research technique.

Descriptive research includes surveys and fact-finding enquiries of different kinds. The
major purpose of descriptive research is description of the state of affairs as it exists at
present. The main characteristic of this method is that the researcher has no control over
the variables.

Sampling Design:

For my survey I have used Convenience sampling technique.

43
Convenience sampling is a non-probability sampling technique where subjects are
selected because of their convenient accessibility and proximity to the researcher.

SAMPLE SIZE - Sample of 100 people was taken in order to conduct the research.

UNIVERSE - In accordance to the specified research universe is Suratgarh city.

Sources of Data Collection:

PRIMARY DATA is the data which has been collected through personal contact.

 Through Questionnaire – Questionnaire is a written set of questions, the

answers to which are recorded by the respondents.
 Through Personal Interaction – In personal interaction an interviewer
ask questions in a face to face contact to the other person.

44
SECONDARY DATA is the data which are available in the form of fact and figures. The
sources of secondary data are:

 Websites
 Magazines
 Articles

Data Collection Tools:

For my survey I have used Pie chart, Graphs.

Methods of Data Collection:

For my survey I have collected data through Questionnaire.

DATA ANALYSIS AND INTERPRETATION

Q1. What type of account you have in HDFC Bank?

45
 3% 2%

15% Savings Account

Current Account
80% Salary Account
Other

Interpretation:

Out of 100 respondents that I have taken for my survey 80% respondents have saving
account, 15% have current account, 3% have salary account and 2% respondents have
other account which include NRI and fixed deposit account in the bank. It means that the
bank has a very good amount of saving account customers as compare to the other
account.

Q2. Since how long you are having account in HDFC Bank?

46
 15% 0-1 Year
33%
27% 1-2 Years

25% 2-3 Years

3 Years & above

Interpretation:
Out of 100 respondents 33% have their account in HDFC Bank from the last 3 years and
more.

Q3. According to you what is more convenient way for banking?

10%

Branch Banking
Digital Banking
90%

Interpretation:

When the customers are asked about their preference between branch banking and digital
banking 90% customers preferred digital banking and 10% customers preferred branch
banking as a mode of their banking transaction. Above graph reveals their preferences for
the both.

47
Q4. Do you use Digital Banking Services of HDFC Bank?

0%

Yes
No
100%

Interpretation:

Out of the 100 respondents all the 100% of them use digital banking services of HDFC
bank.

Q5. What are your reasons for choosing our Digital banking services?

100%
90%
80%
70%
60%
50% 60 80 68
40%
30%
20%
10%
0% 0

Interpretation:

Out of the 100 respondents 60% use digital banking services for convenience, 80% use to
save time and 68% use due to 24 hour access.

48
Q6. Which Digital banking services do you use at HDFC Bank?

100%
80%
60% 75 60 24 4 100
40%
20%
0%

Interpretation:

Out of the 100 respondents 75% of them use internet banking, 60% out of 100 use mobile
banking, 24% of 100 use phone banking, 4% of 100 are using insta alerts/sms/query, and
all the 100% of respondents use ATM service.
Q7. For what purpose you use Digital banking services at HDFC Bank?

100%
80%
60% 90 45 78 36
40%
20%
0% 0 0

Interpretation:
Out of the 100 respondents 90% use digital banking services for money transfer, 45% use
to pay bill, 78% use to get balance details, 36% use for recharge.

49
Q8. Are you aware about HDFC Bank Digital Initiatives i.e. Go digital?

45%
Yes
55% No

Interpretation:
As shown in the above pie chart 45% respondents out of 100 are aware about HDFC bank
Go digital initiative while 55% of them are not aware.

Q9. Please rate that how much Digitalization has improved the Banking Services?

0%
0%
5 Stars
18% 14%
4 StARS
3 Stars
68%
2 Stars
1 Star

Interpretation:
Out of 100 respondents 14% of them rate 5 stars to the digital improvement in the
banking services, 68% rate it 4 stars, and 18% rate 3 stars.

50
Q10. What is your level of satisfaction with HDFC Bank Digital Services?

0%
2%

33% Fully Satisfied

Satisfied
65% Somewhat satisfied
Not satisfied

Interpretation:
Satisfaction level is very important for the direct banking channel of bank. In above
graph we can see that 65% Customers are satisfied with HDFC bank digital services,
33% customers are fully satisfied and only 2% are somewhat satisfied. It indicates that
HDFC bank customers have high satisfaction level from the services they get.

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 FINDINGS

In our study we find that 100% respondents are aware with the ATM facility use this
facility and around 75% of them use internet banking, 60% use mobile banking, 24% use
phone banking. But the awareness of Insta query is only 4%.

Most of customers believe that Digital banking is more convenient way for banking and
most of them use digital banking in order to save time and also as it has 24 hour access.

Customers use digital banking services at HDFC bank mostly for money transfer, to pay
bill, for recharge, online shopping. HDFC bank provides very quick services to its
customers.

The customer are using the digital banking services for few purpose it means the use of
the digital banking channel is limited for few transaction.

Most of respondent who are using the digital banking services are satisfied with the
service of the bank for the particular digital banking service.

The response of the respondents indicates that digitalization has a good and positive
impact on the banking services.

According to the response of the respondents it shows that digitalization improved the
banking services very much for the customers.

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 CONCLUSION

Due to the adoption of this digitalization, the banking sectors in India face some
remarkable changes as well as hurdles. As we are in the digital era, it is not possible to
avoid the growth and services or digital banking.

Everyone uses the modern mobile device, called Smartphone, which is used to access the
digital banking services to anyone at anywhere and at any time.

Thus, digital banking is in the place of inevitable today. As people want to have
convenient banking services, they are very much happy to use this digital banking system
than traditional banking system where the customer has to visit the bank’s branch.

On the other side, the technology has cyber threats which should be properly covered by
such a high protection system. Then, the digital banking would be the gift of this
digital era people.

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 SUGGESTION

 Though the Digital Banking is an effective tool but many of the customers are not
using it due to the awareness of the particular digital banking services. Now the
responsibility lies with the bank to make them aware about various Digital banking
channels through publicity and advertisement

 Bank should educate the customer about the usage of digital banking services and
also about their advantages. This would prompt the customers to shift from traditional
brick and mortar channel.

 It has been observed that even the customers who know about digital banking
services are not using this facility due to misconception and lack of information.
These customers should be targeted by the bank and must be convinced to use the
same.

 The result of the study show that customers are using only few services of various
digital banking services - for example ATM for view balance and cash withdrawal
etc. Though digital banking provides a full gamut of various services. Customer
should be made aware of these services and must be encouraged to use the same.

 The bank may improve existing facilities in rural areas through advertising, spread
awareness about computer and internet banking.

 The best way to motivate the customer to use digital banking is more efficient
customer care service.

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 LIMITATIONS

There are certain limitations of this project report which are listed below.

 This study is limited only to the customers of the HDFC bank, Suratgarh.
 The responses of the customers may be biased.
 Sample size is limited to 100.

55
 BIBLOGRAPHY

1. Websites
 https://medium.com/andolasoft/mobile-banking-pros-and-cons-plus-some-helpful-tips-
b43910a21851
 https://www.paisabazaar.com/banking/mobile-banking/
 http://www.oracle.com/us/industries/financial-services/efma-digital-transformation-
wp-2904165.pdf
 http://reports.weforum.org/digital-transformation/wp-
content/blogs.dir/94/mp/files/pages/files/dti-executive-summary-20180510.pdf

2. Magazines
3. Articles
4. Books

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 APPENDIX

Questionnaire

NAME……………………………………

GENDER………………………………..

AGE……………………………………

OCCUPATION……………………......

EMAIL ID………………………………

Q1. What type of account you have in HDFC Bank?

Savings account Current account

Salary account other (please specify) _ _ _ _ _

Q2. Since how long you are having account in HDFC Bank?

0 – 1 year 1 – 2 years

2 - 3 years 3 years & above

Q3. According to you what is more convenient way for banking?

Branch Banking Digital Banking

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Q4. Do you use Digital Banking Services of HDFC Bank?

Yes No

Q5. What are your reasons for choosing our Digital banking services?

Convenience To save time

24 hour access Security reasons

Q6. Which Digital banking services do you use at HDFC Bank?

Internet Banking Mobile Banking

Phone Banking Insta Alerts/SMS/Query

ATM

Q7. For what purpose you use Digital banking services at HDFC Bank?

Money Transfer Pay Bill

Balance Details Recharge

Loan related Query Order Cheque book

other (please specify) _ _ _ _

Q8. Do you think HDFC Bank banking services has improved through
Digitalization?

Yes No

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Q9. Please rate that how much Digitalization has improved the Banking Services?

5 Stars 4 Stars

3 Stars 2 Stars

1 Star

Q10. What is your level of satisfaction with HDFC Bank Digital Services?

Fully Satisfied Satisfied

Somewhat Satisfied Not Satisfied

Q11. Any suggestions or recommendation to HDFC Bank?

59