PROJECT 2019

SUMMER INTERNSHIP PROJECT REPORT ON

“DIGITALIZATION IN BANKING”
FOR

HDFC BANK LTD.

SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE

DEGREE OF

MASTERS IN BUSINESS ADMINISTRATION

INDRANIL SARKAR

AMITY UNIVERSITY (KOLKATA)

ENROLLMENT NO.: A91801918008

UNDER THE GUIDANCE OF

MR. DEBARGHYA BAGCHI (FACULTY GUIDE)

MR. NILKANTA CHOUDHURY (INDUSTRY GUIDE)

TO

AMITY UNIVERSITY, KOLKATA

 DECLARATION

I, Indranil Sarkar, hereby declare that the project work for “Summer Internship and
Training Programme” entitled “Digitalization in Banking – HDFC Bank Ltd.” is a result of
my original work and my indebtedness to other references, if any, have been duly
acknowledged. This project is carried out by me during my summer internship at HDFC
Bank Ltd. from 3rd of June, 2019 to 31st of July, 2019 and is my original and true work for
the academic purpose only.

- Indranil Sarkar

Place: Kolkata

Date: 07/09/2019
 FACULTY GUIDE APPROVAL

This is to certify that the project report entitled “Digitalization in Banking – HDFC Bank
Ltd.” being submitted by Indranil Sarkar with the Enrolment no. A91801918008 in partial
fulfillment for the award of the Degree of Masters of Business Administration from Amity
University, Kolkata , is a record of bona-fide work carried out under the guidance and
supervision of the faculty guide Mr. Debarghya Bagchi.

The results embodied are self-attained and not copied from any other work; this project
has not been submitted to any other University or Institute for the award of any Degree or
Diploma. It is understood that by this approval, the undersigned do not necessarily endorse
any conclusion drawn or opinion expressed therein but approve the project for the purpose
for which it is submitted.

MR. DEBARGHYA BAGCHI

HEAD OF DEPARTMENT
AMITY BUSINESS SCHOOL
AMITY UNIVERSITY KOLKATA
INTERNSHIP CERTIFICATE
 ACKNOWLEDGEMENT

I would like to express my profound gratitude to all those who have been
instrumental in the preparation of this report which has been prepared on the basis
of learning from Summer Internship and Training Programme opportunity
provided by HDFC Bank Ltd for III Semester, MBA, Amity University Kolkata.

I would like to thank my Industry Guide, Mr. Golam Rosul Sir who is also the
Branch Manager of HDFC Shakuntala Park, Kolkata, for giving approval and
constant guidance for the preparation of the report. I would also like to thank all
the staffs for their constant support and guidance during the course of the
internship programme and making it a great learning experience for me.

I also thank my faculty guide, Mr. Debarghya Bagchi Sir for his encouragement
and contribution of time and counsel.

Lastly, a heartfelt thanks to the many respondents surveyed whose ideas, critical
insights and suggestions have been invaluable in the preparation of this project.

ABSTRACT
This project provides an opportunity to demonstrate the application of self
knowledge, skill and competencies required during the Internship and Training
Programme which also helps to device the same to analyze the research topic to
suggest appropriate measures and to evaluate them.

The research paper focuses on digital innovations made by HDFC Bank Ltd. for a
hustle free banking experience of the customers. This includes detailed study of the
success and acceptance of digital products including the Net Banking portal,
Mobile Banking App, SmartHub, SmartBuy, Lite App, etc. by the customers as
compared to the traditional banking system.

The study will also help in understanding the expectations and level of awareness
among different age groups people which will help introduce effective measures to
improvise on necessary features or functionalities offered by digital platforms and
applications.

The report has been prepared with an objective to keep it error free. All efforts
have been made to obtain and demonstrate authentic and accurate information and
findings during the course of the research.

TABLE OF CONTENTS
CHAPTER CONTENTS PAGE NO.
S

1. HDFC BANK PROFILE 8 - 17

2. INTRODUCTION TO DIGITALIZATION 18

3. HISTORY OF DIGITAL BANKING 19 – 21

4. DIGITALIZATION AT HDFC BANK 22 – 24

5. CORE DIGITAL PLATFORMS AND PRODUCTS OF HDFC 25 – 33

6. TRADITIONAL BANKING VS DIGITAL BANKING 34, 35

7. SWOT ANALYSIS 36, 37

8. RESEARCH METHODOLOGY

BACKGROUND OF THE STYDY 39

RESEARCH OBVJECTIVES 39

RESEARCH DESIGN 40

SOURCES OF DATA 40
POPULATION 41

SAMPLING METHOD 41

SAMPLING FRAME 41, 42

DATA COLLECTION INSTRUMENT 42

DATA ANALYSIS AND INTERPRETATION 43 – 55

HYPOTHESIS TESTING 56, 57

FINDINGS AND CONCLUSION 58
RECOMMENDATIONS AND SUGGESTIONS 59

9. BIBLIOGRAPHY 60,61
 HDFC BANK : PROFILE

BACKGROUND

The Housing Development Finance Corporation Limited (HDFC) was amongst the
first to receive an ‘in principle’ approval from the Reserve Bank of India (RBI) to
set up a bank in the private sector, as part of RBI’s liberalisation of the Indian
Banking Industry in 1994. The bank was incorporated in August 1994 in the name
of 'HDFC Bank Limited', with its registered office in Mumbai, India. HDFC Bank
commenced operations as a Scheduled Commercial Bank in January 1995.

PROMOTER

HDFC is India’s premier housing finance company and enjoys an impeccable track
record in India as well as in international markets. Since its inception in 1977, the
Corporation has maintained a consistent and healthy growth in its operations to
remain the market leader in mortgages. Its outstanding loan portfolio covers well
over a million dwelling units. HDFC has developed significant expertise in retail
mortgage loans to different market segments and also has a large corporate client
base for its housing related credit facilities. With its experience in the financial
markets, strong market reputation, large shareholder base and unique consumer
franchise, HDFC was ideally positioned to promote a bank in the Indian
environment.

BUSINESS FOCUS

HDFC Bank’s mission is to be a World Class Indian Bank. The objective is to

build sound customer franchises across distinct businesses so as to be the preferred
provider of banking services for target retail and wholesale customer segments,
and to achieve healthy growth in profitability, consistent 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

Page | 8
Bank’s business philosophy is based on five core values: Operational Excellence,
Customer Focus, Product Leadership, People and Sustainability.

CAPITAL STRUCTURE

 As on 31st March, 2015 the authorized share capital of the Bank is Rs. 550
crore.
 The paid-up share capital of the Bank as on the said date is
Rs501,29,90,634/- ( 2506495317 ) equity shares of Rs. 2/- each).
 The HDFC Group holds 21.67 % of the Bank's equity and about 18.87 % of
the equity is held by the ADS / GDR Depositories (in respect of the bank's
American Depository Shares (ADS) and Global Depository Receipts (GDR)
Issues). 32.57 % of the equity is held by Foreign Institutional Investors
(FIIs) and the Bank has 4,41,457 shareholders. 

The shares are listed on the Bombay Stock Exchange Limited and The
National Stock Exchange of India Limited. The Bank's American Depository
Shares (ADS) are listed on the New York Stock Exchange (NYSE) under
the symbol 'HDB' and the Bank's Global Depository Receipts (GDRs) are
listed on Luxembourg Stock Exchange under ISIN No US40415F2002.

AMALGAMATION OF TIMES BANK & CENTURION BANK OF

PUNJAB WITH HDFC BANK

On May 23, 2008, the amalgamation of Centurion Bank of Punjab with HDFC
Bank was formally approved by Reserve Bank of India to complete the statutory
and regulatory approval process. As per the scheme of amalgamation, shareholders
of CBoP received 1 share of HDFC Bank for every 29 shares of CBoP.

The amalgamation added significant value to HDFC Bank in terms of increased

branch network, geographic reach, and customer base, and a bigger pool of skilled
manpower.

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In a milestone transaction in the Indian banking industry, Times Bank Limited
(another new private sector bank promoted by Bennett, Coleman & Co. / Times
Group) was merged with HDFC Bank Ltd., effective February 26, 2000. This was
the first merger of two private banks in the New Generation Private Sector Banks.
As per the scheme of amalgamation approved by the shareholders of both banks
and the Reserve Bank of India, shareholders of Times Bank received 1 share of
HDFC Bank for every 5.75 shares of Times Bank.

DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai. As of March 31, 2015, the Bank’s

distribution network was at 4,014 branches in 2,464 cities. All branches are linked
on an online real-time basis. Customers across India are also serviced through
multiple delivery channels such as Phone Banking, Net Banking, Mobile Banking
and SMS based banking. The Bank’s expansion plans take into account the need to
have a presence in all major industrial and commercial centers, where its corporate
customers are located, as well as the need to build a strong retail customer base for
both deposits and loan products. Being a clearing / settlement bank to various
leading stock exchanges, the Bank has branches in centers where the NSE / BSE
have a strong and active member base.

The Bank also has a network of 11,766 ATMs across India. HDFC Bank’s ATM
network can be accessed by all domestic and international Visa / MasterCard, Visa
Electron / Maestro, Plus / Cirrus and American Express Credit / Charge
cardholders.

MANAGEMENT

The composition of the Board of Directors of the Bank is governed by the

provisions of the Companies Act, 2013, the Banking Regulation Act, 1949, and the
listing requirements of the Indian Stock Exchanges where the securities issued by
the Bank are listed. The composition of the Board is as follows:

Page | 10
 Serial No. Name of Director
1 Mrs. Shyamala
Gopinath
2 Mr. Malay Patel
3 Mr. Umesh Chandra
Sarangi
4 Mr. Keki Mistry
5 Mr. Srikanth
Nadhamuni
6 Mr. Sanjiv Sachar
7 Mr. Sandeep Parekh
8 Mr. MD Ranganath
9 Mr. Aditya Puri
10 Mr. Kaizad
Bharucha
Designation
Part Time Non- Executive Chairperson and
Independent Director
Independent Director
Independent Director
Non Executive Director
Non-Executive Director
Independent Director
Independent Director
Independent Director
Managing Director
Executive Director

The Bank's Board of Directors is composed of eminent individuals with a wealth of

experience in public  policy, administration, industry and commercial banking.
Senior executives representing HDFC are also on the Board.
Senior banking professionals with substantial experience in India and abroad head
various businesses and functions and report to the Managing Director. Given the
professional expertise of the management team and the overall focus on recruiting
and retaining the best talent in the industry, the bank believes that its people are a
significant competitive strength.

TECHNOLOGY

HDFC Bank operates in a highly automated environment in terms of information

technology and communication systems. All the bank’s branches have online
connectivity, which enables the bank to offer speedy funds transfer facilities to its

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customers. Multi-branch access is also provided to retail customers through the
branch network and Automated Teller Machines (ATMs).

The Bank has made substantial efforts and investments in acquiring the best
technology available internationally, to build the infrastructure for a world class
bank. In terms of core banking software, the Corporate Banking business is
supported by Flexcube, while the Retail Banking business by Finware, both from i-
flex Solutions Ltd. The systems are open, scaleable and web-enabled.

The Bank has prioritised its engagement in technology and the internet as one of its
key goals and has already made significant progress in web-enabling its core
businesses. In each of its businesses, the Bank has succeeded in leveraging its
market position, expertise and technology to create a competitive advantage and
build market share.

BUSINESS PROFILE

HDFC Bank caters to a wide range of banking services covering commercial and
investment banking on the wholesale side and transactional / branch banking on
the retail side. The bank has three key business segments: 

Wholesale Banking

The Bank’s target market is primarily large, blue-chip manufacturing companies in

the Indian corporate sector and to a lesser extent, small & mid-sized corporates and
agri-based businesses. For these customers, the Bank provides a wide range of
commercial and transactional banking services, including working capital finance,
trade services, transactional services, cash management, etc. The bank is also a
leading provider of structured solutions, which combine cash management services
with vendor and distributor finance for facilitating superior supply chain
management for its corporate customers. Based on its superior product delivery /
service levels and strong customer orientation, the Bank has made significant
inroads into the banking consortia of a number of leading Indian corporates
including multinationals, companies from the domestic business houses and prime
public sector companies. It is recognised as a leading provider of cash management

Page | 12
and transactional banking solutions to corporate customers, mutual funds, stock
exchange members and banks.

Treasury

Within this business, the bank has three main product areas – Foreign Exchange
and Derivatives, Local Currency Money Market & Debt Securities, and Equities.
With the liberalisation of the financial markets in India, corporates need more
sophisticated risk management information, advice and product structures. These
and fine pricing on various treasury products are provided through the bank’s
Treasury team. To comply with statutory reserve requirements, the bank is required
to hold 25% of its deposits in government securities. The Treasury business is
responsible for managing the returns and market risk on this investment portfolio.

Retail Banking

The objective of the Retail Bank is to provide its target market customers a full
range of financial products and banking services, giving the customer a one-stop
window for all his/her banking requirements. The products are backed by world-
class service and delivered to customers through the growing branch network, as
well as through alternative delivery channels like ATMs, Phone Banking,
NetBanking and Mobile Banking.

The HDFC Bank Preferred program for high net worth individuals, the HDFC
Bank Plus and the Investment Advisory Services programs have been designed
keeping in mind needs of customers who seek distinct financial solutions,
information and advice on various investment avenues. The Bank also has a wide
array of retail loan products including Auto Loans, Loans against marketable
securities, Personal Loans and Loans for Two-wheelers. It is also a leading
provider of Depository Participant (DP) services for retail customers, providing
customers the facility to hold their investments in electronic form.

HDFC Bank was the first bank in India to launch an International Debit Card in
association with VISA (VISA Electron) and issues the MasterCard Maestro debit
card as well. The Bank launched its credit card business in late 2001. By March
2015, the bank had a total card base (debit and credit cards) of over 25 million. The

Page | 13
Bank is also one of the leading players in the “merchant acquiring” business with
over 235,000 Point-of-sale (POS) terminals for debit / credit cards acceptance at
merchant establishments. The Bank is well positioned as a leader in various net
based B2C opportunities including a wide range of internet banking services for
Fixed Deposits, Loans, Bill Payments, etc.

RATINGS / AWARDS

Credit Rating 

HDFC Bank has its deposit programmes rated by two rating agencies -
Credit Analysis & Research Limited. (CARE) and Fitch Ratings India
Private Limited. The bank's Fixed Deposit programme has been rated 'CARE
AAA (FD)' [Triple A] by CARE, which represents instruments considered to
be "of the best quality, carrying negligible investment risk".

CARE has also rated the bank's Certificate of Deposit (CD) programme "PR
1+" which represents "superior capacity for repayment of short term
promissory obligations". Fitch Ratings India Pvt. Ltd. (100% subsidiary of
Fitch Inc.) has assigned the "AAA (ind)" rating to the bank's deposit
programme, with the outlook on the rating as "stable". This rating indicates
"highest credit quality" where "protection factors are very high".

HDFC Bank also has its long term unsecured, subordinated (Tier II) Bonds
of Rs.4 billion rated by CARE and Fitch Ratings India Private Limited.
CARE has assigned the rating of "CARE AAA" for the Tier II Bonds while
Fitch Ratings India Pvt. Ltd. has assigned the rating "AAA (ind)" with the
outlook on the rating as "stable". In each of the cases referred to above, the
ratings awarded were the highest assigned by the rating agency for those
instruments.

Corporate Governance Rating

The bank was one of the first four companies, which subjected itself to a

Page | 14
Corporate Governance and Value Creation (GVC) rating by the rating
agency, The Credit Rating Information Services of India Limited (CRISIL).
The rating provides an independent assessment of an entity's current
performance and an expectation on its "balanced value creation and
corporate governance practices" in future. The bank was assigned a 'CRISIL
GVC Level 1' rating in January 2007 which indicates that the bank's
capability with respect to wealth creation for all its stakeholders while
adopting sound corporate governance practices is the highest

Awards and Achievements - Banking Services

HDFC Bank began operations in 1995 with a simple mission: to be

a "World-class Indian Bank". We realised that only a single-minded focus on
product quality and service excellence would help us get there. Today, we
are proud to say that we are well on our way towards that goal.

It is extremely gratifying that our efforts towards providing customer

convenience have been appreciated both nationally and internationally.

2019

Greenwich Associates • Joint No. 1 in Large Corporate Banking with 75 per

study cent share of market 
•Leader in overall Quality of client relationship in
Corporate Banking
• No. 1 in Middle-Market Banking with 60 per cent share
of market 
• Leader in overall Quality of client relationship in
Middle-Market Banking 

Euromoney Awards India’s Best Bank

for Excellence 2019
UTI MF -CNBC Best Performing Bank (Private sector)
TV18 Financial
Advisor Awards '18-

Page | 15
19
BrandZ Top 100 HDFC Bank featured for the fifth time in the BrandZ's
Most Valuable Global Top 100 Global Brands List
Brands 2019
Governance Now -Digital Bank
BFSI Awards 2019. -Tech Trendsetter
Businessworld Magna -Best Large Bank
Awards 2019 -Fastest Growing Large Bank - Runner up
American Indian Aditya Puri honoured for corporate and philanthropic
Foundation leadership
Express Computer Leadership Award for Outstanding Initiatives in Big
BFSI Digital Data / Analytics Artificial Intelligence Enterprise
Innovation Awards Applications
2019.
The Banker Bank of Bank of the Year – India
the Year Awards
2018
The Banker Global Best Private Bank in India
Private Banking
Awards 2018.
Mint - EY Emerging Winner - Robotic Process Automation (Software)
Technology Awards category.
Forbes' World's Best No. 1 Bank in India - HDFC Bank
Banks report
Euromoney Trade Best Service (Asian Banks only) - India
Finance Survey 2019 Market Leader (Asian Banks only) – India
The Financial Best Bank - New Private Sector category
Express India's Best
Banks Awards 2017-
18
FE CFO Awards Best CFO / Newsmaker of the Year
2019
Asiamoney Best Best Digital Bank (India)
Bank Awards 2019
AIMA-JRD Tata HDFC Bank MD Mr. Aditya Puri has been conferred the
Corporate Leadership AIMA-JRD Tata Corporate Leadership Award for the
Award 2018 Year 2018

Outlook Money Best Private Sector Bank Award - Gold

Page | 16
Awards 2019
IDC Financial Asia's Most Secure Bank
Insights Innovation
Awards (FIIA) 2019
Dun & Bradstreet India's Leading Bank - Private Sector
BFSI Awards 2019
Euromoney Private No. 1 in Asset Management category
Banking and Wealth
Management Survey
2019
Business Today - - Bank of the Year - HDFC Bank and SBI
KPMG India's Best Best Large Bank - HDFC Bank
Bank Awards 2019
FE Best Bank Awards Best Bank: New Private Sector 

INTRODUCTION TO DIGITALIZATION

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The concept of digital banking is wider than that of online banking. Digital
banking means the full digitization of banks and all its activities, programs and
functions. It’s not just about digitizing your services and products — the front-end
that customers see — but also about automating your processes (the back-end) and
connecting these worlds with middleware.

Digital banking is about the automation of every step of the banking relationship,
and it goes way beyond an online or mobile banking platform. It contains a full
transformation to a digital environment — frontend and backend and anything in
between — for both customers and employees. Digital banking relies on big data,
analytics and embracing all new technologies to improve the customer’s
experience.

HISTORY OF DIGITAL BANKING

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The need for computerization was felt in the Indian banking sector in late 1980s, in
order to improve the customer service, book-keeping and MIS reporting. In 1988,
Reserve Bank of India set up a Committee on computerization in banks headed by
Dr. C. Rangarajan. 

Banks began using Information Technology initially with the introduction of

standalone PCs and migrated to Local Area Network (LAN) connectivity. With
further advancement, banks adopted the Core Banking platform. Core Banking
Solution (CBS) enabled banks to increase the comfort feature to the customers as a
promising step towards enhancing customer convenience through Anywhere and
Anytime Banking. Different Core Banking platforms such as Finacle designed by
Infosys, BaNCS by TCS, FLEXCUBE by i-flex, gained popularity.

The process of Computerization gained pace with the opening of the economy in
1991-92. A major driver for this change was propelled by rising competition from
private and foreign banks. Several commercial banks started moving towards
digital customer services to remain competitive and relevant in the race. 

Banks have benefitted in several ways by adopting newer technologies. E-banking

has resulted in reducing costs drastically and has helped generate revenue through
various channels. The number of customer base has also increased because of the
convenience in 'Anywhere Banking'. Digitalization has reduced human error. It is
possible to access and analyze the data anytime enabling a strong reporting
system. 

RBI has been a guiding force for the banks in forming regulations and giving
recommendations to achieve various objectives. Commercial Banks in India have
moved towards technology by way of Bank Mechanization and Automation with
the introduction to MICR based cheque processing, Electronic Funds transfer,
Inter-connectivity among bank Branches and implementation of ATM (Automated
Teller Machine) Channel have resulted in the convenience of Anytime banking.
Strong initiatives have been taken by the Reserve Bank of India in strengthening
the Payment and Settlement systems in banks. 

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Current state

Indian Government is aggressively promoting digital transactions. The launch of

United Payments Interface (UPI) and Bharat Interface for Money (BHIM) by
National Payments Corporation of India (NPCI) are significant steps for innovation
in the Payment Systems domain. UPI is a mobile interface where people can make
instant funds transfer between accounts in different banks on the basis of virtual
address without mentioning the bank account. Today banks aim to provide fast,
accurate and quality banking experience to their customers. Today, the topmost
agenda for all the banks in India is digitization.

Advantages:
Cost benefits: Banks are under pressure to reduce their costs to remain
competitive. Demand for improved customer experience and personalized services
grow, and the products and services of established banks are more expensive.
Digital banking enables you to improve customer experience and lower costs,
which is needed to stay ahead of the pack.

Exploring benefits of new technologies: New technologies, such as data

analytics, open APIs, blockchain and cognitive banking are predicted to impact
banking business models. However, legacy systems limit the ability of banks to
react quickly to these developments. Full digitization is needed to explore the
benefits of these technologies and future-proof your bank.

Greater agility: The use of automation can speed up both external and internal
processes, both of which can improve customer satisfaction. Following the
collapse of financial markets in 2008, an increased emphasis was placed on risk
management. Instead of banks hiring and training risk management professionals,

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it's possible for risk management software to detect and respond to market changes
more quickly than even seasoned professionals.

Enhanced security: All businesses big or small face a growing number of cyber
threats that can damage reputations. In February 2016 the Internal Revenue Service
announced it had been hacked the previous year, as did several big tech companies.
Banks can benefit from extra layers of security to protect data.

Business efficiency: Not only do digital platforms improve interaction with

customers and deliver their needs more quickly, they also provide methods for
making internal functions more efficient.

DIGITALIZATION AT HDFC BANK

Innovations at HDFC Bank

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Digital Transformation and Mobility Banking (DTMB) unit was founded in July
2014 with a view to positioning HDFC Bank at the forefront of digital innovations.
The DTH team is headed by Rajnish Khare, under the leadership of Nitin Chugh,
Country Head of Digital Banking. The team is working on advancing HDFC
Bank's digital innovations in the digital, mobile, new-age technologies and social
space.

With the Digital Transformation and Mobility Banking (DTMB) team at the
forefront, HDFC Bank has launched a host of highly successful digital banking
products. These include 30-minute paper-less Auto Loans using Biometric
technology, 10-second Personal Loan on Net Banking, PayZapp, LITE App,
Missed Call Recharge, Instant loans at ATM and the recently introduced Robotic
Assistant (IRA) at HDFC Bank branches.

This is in addition to HDFC Bank’s powerful NetBanking portal and

MobileBanking app which allows customers to perform over 205 and 90 different
types of transactions respectively.

 Humanoid Robot IRA 2.0

IRA 2.0 is a Humanoid Robot in the Koramangala Branch in Bangalore. The first
version of IRA was launched at HDFC Bank branch in Mumbai. The IRA 2.0 is
much more advanced than the first version. Apart from greeting and guiding the
customer to the right counter, like the IRA 1.0, IRA 2.0 can interact with the
customer and answer banking related queries. In the future, IRA will be able to
educate customers about banking products, give information about bank accounts,
handle service requests and provide the status of applications or requests.

Developed by Invento Makerspaces, it is a 5 feet tall robot shaped like a human

mannequin with a 7.9” tablet on its chest. It can navigate inside the bank and detect
obstacles with its sensors. It also has Face detection and speech recognition
algorithms (SWARA) which will be enabled soon. Senseforth’s EVA chat engine
can answer customer queries and give them information.

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  HDFC Bank OnChat

A first of its kind solution provided by any Bank in India, HDFC Bank OnChat, the
Facebook Messenger chatbot created in partnership with Niki.ai can be used to
chat on Facebook messenger to avail services like bill payments, travel bookings,
event bookings, etc. It understands the user’s intent in English as well as Hinglish
and does not need specific commands as it is built on an intuitive Natural
Language Processing (NLP) based Artificial Intelligence(AI) platform. It is a one-
stop solution for all your requirements, so there is no need to download multiple
apps for your daily needs. HDFC Bank OnChat has won recognition from award
forums like Asian Banking Federation, etc.

 Automating Candidate Interview Process

HDFC Bank has launched an innovative interview platform that uses analytics, AI
and ML to conduct video based assessments and enables digital interviewing to
screen and select talent. The solution provides a comprehensive tool using multiple
aspects for decision-making by analyzing a candidate’s resume content as per the
hiring manager's requirement.

 EVA

EVA, the chat assistant developed in association with Senseforth uses the latest in
AI and Natural Language Processing to understand the user query and fetch the
relevant information from thousands of possible sources, all in a matter of
milliseconds. Customers can get the information they are seeking instantaneously
by conversing with Eva in human language instead of searching, browsing,
clicking buttons or waiting on a call.

EVA is also integrated with Alexa, Amazon’s AI-based home automation engine.
After integrating your account with Alexa, you can speak to Alexa and chat with
the bank’s virtual assistant, EVA. EVA will answer all your banking related
questions. It can also be enabled on Google Home speakers and integrated with
Google Assistant.

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On both these platforms, EVA can answer a bunch of questions like:

 Features, benefits, and charges of HDFC Banking products

 Instruction on various banking procedures
 Find IFSC code and bank branches
 Track and analyze customer issues
 Guide to various types of transactions

 HDFC Bank EasyKeys

A new and easy way of banking, EasyKeys is a digital offering from HDFC Bank
that lets you do banking transactions using your Android smart phone’s keyboard
without the need for switching between Apps. With HDFC Bank EasyKeys, users
can check their account balance, transfer funds, recharge mobile / DTH, pay bills
securely without switching apps while continuing to send emails or chatting across
platforms such as social media Apps, SMS App, Email Apps, etc. It is the first
alphanumeric and transactional keypad being offered by an Indian bank, thereby
making it innovative. Unlike other keypads, it allows users to not only do banking
transactions, but also use it as a by default keypad for typing purpose.

CORE DIGITAL PLATFORMS AND PRODUCTS OF HDFC

HDFC NET BANKING PORTAL

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HDFC’s net banking is exclusively designed to provide a hustle free experience
and a number of banking services online. To avail this, only a simple registration is
required which can be done by following the steps:

1. Online

You can Register for Net Banking online by following the below steps:
 Online Resident Customers and NR Customers with Domestic Mobile
Number registered with the bank
 Enter your Customer ID
 Confirm your registered mobile number
 Input the OTP (One Time Password) which you have received on your
mobile
 Select and input the Debit card details
 Set your IPIN
 Login to NetBanking using the newly set IPIN.

In case if IPIN is provided already by the bank in the Welcome Kit, the customer is
required to login with the same IPIN and re-set the IPIN

Separate link available for NR Customer with International Mobile Numbers

registered.

2. ATM

 Visit your nearest HDFC Bank ATM

 Enter your HDFC Bank Debit Card number and your ATM PIN
 Select 'Other Option' from the main screen
 Select 'Net Banking Registration' and confirm
 IPIN will be couriered to your mailing address

3. Phone Banking

 Call the Phone Banking number in your city and give your Customer ID and
Telephone Identification Number (TIN) or Debit Card and PIN

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  Phone Banking agent will take your Net Banking registration request
 IPIN will be couriered to your mailing address in our records within 5 days

4. Branch

 Download the Net Banking registration form (individual or corporate)

 Fill in the form and submit it to your nearest HDFC Bank branch
 IPIN will be couriered to your mailing address in our records

There are no charges for Net Banking registration request.

FUNCTIONS

HDFC Bank offers you a comprehensive range of transactions across multiple

products through its NetBanking channel. Some of the transactions done through
net banking are covered below:

 Fund Transfer to same or other bank customers: NEFT, IMPS, RTGS.

 Balance inquiry, Bank statement
 Debit/Credit card Pin change.
 Debit card blocking.
 Cheque book request.
 KYC updation.
 Insurance
 Demat Account.
 Mutual fund: to keep track of transactions related to mutual fund, applicable for
registered online Mutual Fund Account holders.
 Creation and Liquidation of FD/RD, changing instructions, etc.
 Loans
 Offers: This section provides information regarding any benefits and offers that
the customer is eligible for. For example, 10 seconds loan, pre approved two
wheeler loan, credit card offers, etc.
 Bill pay and Recharge:

Page | 26
 Electricity Bills, Telephone and Mobile Bills, Prepaid DTH/ Mobile Connection/
Data Card Recharge, Gas Bills, Mutual Funds, Insurance Premiums,
Subscriptions, Contribution to Charities.
 Cards : Details regarding active debit and credit cards.
 Credit card statement, available limit, credit card billed and unbilled amount,
minimum amount due, credit card payment, etc.
 Redeeming debit and credit card reward points.
 Stop payments of cheques, requesting demand draft, add/update PAN Number,
email statement registration.
 Form 15G/H, Income Tax e-filing, downloading Interest Certificate, etc.

HDFC Bank has implemented an extra security solution for its customers - Secure
Access.. It is a simple three-step process that greatly enhances your online security
and allows you to transfer funds online.

MOBILE BANKING

HDFC Mobile Banking app is available on Google Play Store and Apple App
Store to make banking through our mobile simple and convenient. It is equipped

Page | 27
with advanced encryption and security technologies. Customers can transfer
money instantly, manage his or her Demat portfolio, order currency notes or travel
card for foreign travel, make UPI payments, block lost cards, open a FD and lots
more.

Special features:

 Quick Access Pin : Customer can set up a 4 digit password which helps in quick
access to his or her account, eliminating the need to use Customer ID and IPIN
( used in net banking). However customer can also login with net banking login
credentials.
 Account updates: One view of all your relationships (savings account, fixed
deposits, credit cards outstanding) with the bank.
 Quick payments: Payments or money transfers as quick as using speed dial.
Automatic bill payments, mobile recharge notifications to help you pay easily.
 Sharing of fund transfer receipts.
 Setting up task-list: Make a task-list of your banking to-dos or quickly access
favorite transactions to ensure faster banking through your mobile app.

SmartBUY

SmartBuy is a platform for display of offers extended by Merchants to HDFC

Bank's Customers. It means such offers can be availed only by Payment for any

Page | 28
product and service using HDFC debit or credit cards.. It is an e-commerce venture
specially designed and initiated to give all its customers a friendly and exclusive
platform to get the smartest and best transactions in town!

Whether it's making an instant travel or an entertainment plan or even taking care
of our payments and mobile recharges, or shopping for the finest deals – all of
which one could do it all right here on www.offers.smartbuy.hdfcbank.com.

Special features:

 Compare and shop to avail best deals.

 Best fares and last minute deals on flights
 Compare and book hotels, find great deals on bookings.
 Unlock privileges and redeem points available on your respective cards.
 Link to Flipkart and Amazon for customers’ convenience.
 10x reward points on select HDFC Bank Card.
 Booking bus tickets online.( new)
 5% cashback on Debit, Credit and PayZapp Cards T & C Applied.

SmartHub

SmartHub is a comprehensive and integrated payment solution for merchants to

now collect payments through multiple payment modes. Payment modes include

Page | 29
Debit Cards, Credit Cards, Multiple Bank NetBanking, IMPS, NEFT, RTGS, Cash,
Cheques and Demand Draft. Comprehensive dashboard gives the merchant in-
depth information on nature of transaction, summaries and reconciliation. The
solution is packed with features such as payment alerts, online response, splitting
of payments to various heads to name a few. 

It provides customised payment solutions for widest range of businesses like

financial services, government, education, healthcare, travel & leisure, Fuel, NGO,
Food & Beverages, Professional, beverages, e- tailers, Grocery/utility stores,
telecom and utility payments.

The different solutions also comes with their respective offers and reward points,
cashback, etc for the HDFC Bank customers. Types of digital payment solutions
are as follows:

1. Online payment acceptance: credit card, debit card and net banking.

2. Mobile payment acceptance:

 SMS/ email based payments to request and receive payments.
 QR code based payments.
 PayZapp: PayZapp is a complete mobile payment solution, giving its customers
the power to pay in just One Click using their linked Debit/ Credit Cards.
 UPI: Payment and collection of money using an UPI Id eliminating the need to
remember account numbers and IFSC Codes to transfer money.
 SmartHub merchant application:
SmartHub merchant application offers a wide range of digital payment solutions
to help every business grow and accept cashless payments from their customers. 
Merchants can collect payments using Bharat QR Code, UPI, SMS Pay and
Aadhar Pay.

3. In store/in-office payments
 DiGiPOS:

Page | 30
HDFC Bank has launched a POS machine called DigiPOS which will allow
customers to pay via newer methods such as the Unified Payments Interface (UPI),
BharatQR, SMS Pay and the PayZapp wallet, in addition to debit and credit cards. 

SMS Pay is a payment option on the DigiPOS where merchants can initiate a
payment to customers via SMS. For UPI and BharatQR payments, the POS
machines will generate a QR code where customers can scan and pay. Aadhar Pay
is also enabled.

Benefits:

o POS terminal is upgraded to DiGiPOS at no additional cost,

o Cost benefit: UPI is the lowest cost digital tansactions for Merchants.
o Secure payment mode 
o All Payment Acceptance Modes in One PoS terminal – Increased acceptance
without additional device / stickers or smart phones.

 Wireless Card Swipe Machine (GPRS)

Take card payments from customers wherever you have mobile phone GPRS
coverage – no need for them to carry cash.

 Mobile Card Swipe Machine POS (mPOS)

An mPOS is a mobile point of sale, either through a smartphone, tablet or a

dedicated wireless device that performs the functions of a cash register or
electronic point of sale terminal.

PayZapp

Page | 31
PayZapp is part of the bank's digital banking offering called 'GoDigital', which
centres around the theme of "Bank aapki muthi mein". It is a mobile phone
application which is a complete digital payment and purchase solution. It is a one-
stop online portal for mobile recharge/utility bill payment, booking movie tickets,
getting best travel deals, ordering/paying for dining fast food, online shopping,
buying gift cards, online grocery shopping. Here, SmartBuy will help drive the
payment process. The bank has tied up with Flipkart, Cleartrip, Goibibo, Expedia,
etc for SmartBuy.

PayZapp does not require credit or debit card numbers and security codes to be
entered for every purchase. It just requires linking of Debit/Credit Card, of any
Bank, to PayZapp. There is no pre-paid card restriction on daily or monthly limits
and no need to load money to pay.

Payment with PayZapp:

 Scan with Bharat QR Code and Pay: Scan the QR code via PayZapp and pay
with PayZapp
 Pay/ Send Money : Pay direct money to anyone via their mobile number, be it
friends, family, grocery stores, milkman, house help or tuition teacher and more
 Online Pay: Bill payment, Online Recharge or DTH Recharge, do any kind of
payment to merchants through “Online Pay”

PayZapp card

HDFC PayZapp cards are another type of debit cards / Virtual wallet / E-
Wallet it has.

 16 digit card number.

 Card Name printed on it.
 Expiry date.
 CVV number printed on the another part of PazApp Card.

PayZapp cards are much similar to your credit or Debit Card with some limitation:

 You can’t transact on ATM using PayzApp cards.

Page | 32
 You can’t take any physical copy of this PayzApp card yet to use.

PayZapp cards have many features like debit or credit cards:

 You can transact online on many e-commerce sites same as debit / Credit Card
full payment option.
 It is secured with PayzApp PIN same as debit or credit Card PIN.
 PayzApp card PIN is same that you use to log in on your PayzApp account.

So you can shop or pay the bill on online e-commerce site using this 16 digits
payZapp card.

Other benefits of PayZapp cards:

 It is faster payment option due to using PIN instead of OTP because OTP takes
some time to reach on mobile number.
 It Provides huge discount or Cashback on many online eCommerce site or
mobile app.
 Name on PayZapp card can be changed very easily as compared to changing the
name on Visa debit or credit Cards.
 PayzApp card PIN can also be changed in few click using PayzApp mobile
App.

Page | 33
 TRADITIONAL BANKING VS DIGITAL BANKING

ad
The most important difference between digital banking and online banking and
traditional banking is that customers’ relationship with a digital bank starts and
stays strictly online without the need to visit any physical location. Traditional
banking is based on manual actions and face-to-face contact. However, digital
banking goes a step further than online banking. In online banking, many core
activities are available online, but there hasn’t been a full transition to the digital
world. The front-end is digital, but behind-the-scenes processes remain largely the
same.

Going digital means more than just having a fancy website or app. However,
making the switch to a full digital bank is critical to improve customer
relationships and ensure viability. Banks can take advantage of cost reduction,
agility, viability from digital transformation

Digital transformation has proven a bumpy path for the retail banks. Faced with the
constantly evolving demands of the modern consumer and increasing disruption
from rapidly emerging financial technologies (fintech), traditional banks are under
more pressure than ever to adapt and innovate. It’s now time for banks to redefine
the value they offer to customers and, chances are, that will come with an
overarching necessity to implement new technologies.

1. Empower Safe & Secure Social Media Communication: With the vast reaches of
platforms like Facebook and Twitter, investments in these channels only continues
to grow. However, it’s also alarmingly easy for someone to post something that’s
misguided at best and a regulatory violation at worst.

2. Evolve Away from Legacy Applications: The lack of technological competence

in many banks is alarming, yet consumers want more than ever to enjoy an
experience that traditional banking systems simply can’t offer. Today, banks
should be setting their sights on integrated cloud infrastructures and modern
communication channels. Moreover, thanks to the availability of centralized

Page | 34
platforms for monitoring security and compliance, newer technology is inherently
safer and more in line with compliance requirements.

3. Address Security Issues at Scale: The typical banking environment has tens or
even hundreds of thousands of networked computers and other connected devices
in its portfolio along with social, cloud and mobile channels into the mix. This
makes the potential attack surface expand exponentially. Hence, maintaining
security over such massive scales is a complex task.

Fortunately, security and compliance solutions have also managed to scale with the
rest of technology. No matter how large a bank’s portfolio of digital assets is –
there are now solutions that scale to practically any size, using automation and full
cloud enablement to protect everything from WhatsApp chats to status updates on
Facebook. In fact, the scalability of SaaS solutions is exactly what makes them of
critical importance in the retail banking sector.

4. Choosing Between Bricks and Mortar, Digital or Both

One of the things that make it so hard for banks to achieve a successful digital
transformation is the fact that the sector concerns everyone, and everyone has
different needs. Some customers like to check balances on their phones, but prefer
to send payments from a desktop. Some like the convenience of applying for a loan
using a quick online questionnaire. At the same time, nearly two thirds of
consumers still consider it important to have a local branch nearby.

It should be understood that Digital tech isn’t meant to serve as a complete

replacement for these traditional interactions – it’s meant to complement them.

Page | 35
 SWOT ANALYSIS OF HDFC BANK
1. Strengths

HDFC bank is the second largest private banking sector in India having 2,201
branches and 7,110 ATM’s.

HDFC bank is located in 1,174 cities in India and has more than 800 locations to
serve customers through Telephone banking.

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,
Euro money awards for excellence, Finance Asia country awards etc.

HDFC has good financial advisors in terms of guiding customers towards right
investments.

2. Weaknesses

HDFC bank doesn’t have strong presence in rural areas, where as ICICI bank its
direct competitor is expanding in rural market.

HDFC cannot enjoy first mover advantage in rural areas. Rural people are hard
core loyals in terms of banking services.

HDFC lacks in aggressive marketing strategies like ICICI.

Page | 36
The bank focuses mostly on high end clients.

Some of the bank’s product categories lack in performance and doesn’t have
reach in the market.

The share prices of HDFC are often fluctuating causing uncertainty for the
investors.

3. 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.

4. Threats

HDFC’s nonperforming assets (NPA) increased from 0.18 % to 0.20%. 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 HDFC is not able to expand its market share as ICICI imposes major threat.

The government banks are trying to modernize to compete with private banks.

RBI has opened up to 74% for foreign banks to invest in Indian market

Page | 37
RESEARCH METHODOLOGY

Page | 38
BACKGROUND OF THE STUDY

Banking industry is constantly innovating their processes for the very objective of
retaining and increasing demand. As such, with the advent of internet, the scope
for innovation has widened. Now, banks are constantly working towards
automation and digitalization of their operations and products and services as much
as possible.

Digitalization in banking has created a deep impact on customer mind. It has

definitely made many banking transactions easier and convenient for customers.
However, there still are some hurdles faced by customers about digital products
and services of banks. For instance, Internet banking portal introduced by banks is
only effective for a bank if its customers adopt and use it. This project helps in
identifying and understanding what customers think about digital banking, how
well they are connecting and co-operate with new innovations made by HDFC.
Most importantly, this research topic helps in understanding the main reasons and
facts which has become a hurdle in growth and acceptance of digitalization among
customers and what are the benefits they expect from digital products and services.

RESEARCH OBJECTIVES

The various objective of this research are,

 To understand the concepts, features and evolution of digital banking.

 To identify the various use of digital services.
 To study and analyze the what customer think about digital banking
 To study the shift of HDFC bank from traditional to digital banking.
 To understand how well customers are co-operating with new technology and if
not, what are the reasons.
 To study the challenges faced by HDFC bank in adoption of technology in
banking.

Page | 39
RESEARCH DESIGN

Research design is the plan which decides the course of research, methods and
procedures of collecting and analyzing the needed information.

Descriptive Research Design

Descriptive Research design is a part of Conclusive Research design. A

Conclusive research focuses on the discoveries of ideas and is generally based on
primary data. It is a preliminary investigation that have a rigid design.

Research Type – Quantitative Research

The type of this research is quantitative. The consumers’ response has been
analyzed with appropriate statistical tool and the results have been presented with
the statistical parameters.

Area of the study

HDFC Bank, Shakuntala Park Branch, Kolkata, West Bengal.

SOURCES OF DATA

There are two sources of data:

1) Primary source of data

2) Secondary source of data.

Primary data is data that is collected by a researcher from first-hand sources, using
methods like surveys, interviews, or experiments. It is collected with the research
project in mind, directly from primary sources.

Secondary data is data gathered from studies, surveys, or experiments that have
been run by other people or for other research.

 The source of data for this research project is primary.

Page | 40
POPULATION

Population refers to the entire group of people or objects to which the researcher
wishes to generalize the study findings.

 For this research project, population includes all customers of the particular
bank chosen as well as the employees as they hold a salary account with the
bank and other visitors of the bank.

SAMPLING METHOD

Sample: The selected elements (people or objects) chosen for participation in a

study; people are referred to as subjects or participants.

Sampling: The process of selecting a group of people, events, behaviors, or other

elements with which to conduct a study.

A sampling plan is just a method or procedures for specifying how a sample will
be taken from a population. There are the main three methods of sampling:

1) Simple Random Sampling.

2) Stratified Random Sampling

3) Cluster Sampling.

 Here, in this project we have used a Convenient Random Sampling method for
sampling.

SAMPLING FRAME:

Sampling frame: It is a list of all the elements in the population from which the
sample is drawn.

 Here, in this project uses a stratified random sampling method

 Sample Design: Descriptive research Design
 Sample Unit: all those people who are using digital banking services like,
- Businessman

Page | 41
- Employee
- Student
- Professionals
- Housewife.
 Sample size: 100

DATA COLLECTION INSTRUMENT:

There are many ways of data collection which includes focus group, surveys,
interviews, projective techniques etc.

Here, the data is collected through the survey.

Survey may be administered in a variety of ways, i.e.,

- Personal interview

- Telephone interview

- Self- administered questionnaire.

 Here, a questionnaire design is used for survey.

- These are basically questionnaire with a set of carefully designed questions
posted to target population. Survey can be administered by mail, telephone
or by the internet. Response rates are typically low. Therefore, a large
sample size is selected to get sufficient data.

DATA ANALYSIS AND INTERPRETATION

Page | 42
DEMOGRAPHIC PROFILE OF THE RESPONDENTS

DEMOGRAPHICS PERCENTAGE OF
RESPONDENTS
1.GENDER:
Male 55%
Female 45%
TOTAL 100%
2.AGE:
18-28 Years 21%
28-38 Years 38%
38-48 Years 30%
Above 48 Years 11%
TOTAL 100%
3.EMPLOYMENT:
Student 8%
Business 40%
Professional 8%
Service 42%
Other 2%
TOTAL 100%
4.ANNUAL INCOME:
Upto 1,00,000 14%
1,00,000-3,00,000 35%
3,00,000-5,00,000 39%
Above 5,00,000 12%
TOTAL 100%
5.EDUCATION:
Illiterate 0%
High School 26%
Intermediate 10%
Graduate 43%
Post Graduate 21%
TOTAL 100%

Interpretation:

Page | 43
From the data collected it was found majority of respondents that is 45% of them
are females. About 21% of the customers belonged to the age of 18-28 years. It
was found that majority of customers belonged to service class followed by
business class. It was found that majority of the respondents fell between the
income group of 3,00,000-5,00,000 followed by income group between 1,00,000-
3,00,000.It was found that the majority of respondents were graduates. Thus it can
be concluded that the majority of the respondents were knowledgeable and were
well informed about the banking services.

6) Which bank do you prefer?

a) HDFC bank

b) Kotak Mahindra bank

c) Axis bank

d) ICICI bank

e) other
42
Bank Account of respondants

18
16
13
11

HDFC Bank Kotak Mahindra Bank Axis Bank ICICI Bank Others

Interpretation:

Highest respondents are having account in HDFC Bank and lowest in ICICI Bank.

Page | 44
HDFC Bank: 50%, Kotak Mahindra Bank: 11%, Axis Bank: 16%, ICICI Bank:
9%, Others: 14%.

7) Which of the following method have you been using for Banking services?

a) Traditional banking (branch banking)

b) Digital banking (net/mobile/set/ATM)

c) both

Method used for Banking Services

60

50

40

30

20

10

0
Traditional Banking Digital Banking Both

Interpretation:

52% of respondents use both digital and traditional channel of banking. Least
number of respondents relies solely on traditional banking.

8) Are you aware that the bank provides you free phone banking & net banking
services if you open a new savings account with H.D.F.C bank?

Page | 45
 OPTIONS PERCENTAGE OF
RESPONDENTS
YES 93%
NO 7%
TOTAL 100%

Interpretation:

According to the data collected, it is found that about 93% of people are aware that
the bank provides free phone banking and net banking services if you open a new
savings account with H.D.F.C Bank. Thus it is found that majority of customers
are well informed about free phone banking & net banking services.

For customers not using Digital Banking:

9) Why have you never used a digital banking?

a) Do not have internet connection at home

b) Do not trust internet services when it comes to managing my money.

c) Online services don’t enable me to do what I want to do

d) I prefer to have personal human relations

e) find the process difficult

f) other

Page | 46
 Reason for not using Digital Banking

0 5 10 15 20 25 30 35 40

Interpretation:

Maximum percentage of people prefers to have personal human relations and do

not trust internet services when it comes to managing money. Least number of
people feels difficulty as a reason for not using internet services.

10) Do you trust banks that only operate online?

a) Completely

b) Somewhat

c) Dubious

d) Not at all

Page | 47
 Trust on Online Banking Services

45.45%

27.27%

18.18%

9.09%

Completely Somewhat Dubious Not at all

Interpretation:

Around 45.45% of respondents are sure about online banking to a certain extent,
27.27% are completely sure about the same, 18.18% are not at all trusting and
9.09% are dubious about it.

For customers using Digital Banking:

11) Which is the main reason for you to use a digital banking?

a) Better information

b) Simplification of process

c) 24 hour services

d) Cost Effectiveness

Page | 48
 Reason for using Digital Banking Service

Cost effectiveness

24 hour service

Simplication of process

Better Information

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00%

Interpretation:

Highest number of respondents prefers digital banking because of convenience of

time as it is available 24 hours. Cost effictiveness and simplified process are other
prominent reasons for which online banking services are highly preferred. Least
number of respondents are using digital banking services because of information
quality provided.

12) Which service have you been using the most in digital banking?

a) Mobile banking

b) Net banking

c) ATM

d) Credit card and debit card

e) Phone Banking

Page | 49
 Most used Service in Digital Banking

Mobile Banking Net Banking ATM

Credit Card/ Debit Card Phone Banking

Interpretation:

37.08 % of respondents use net banking mostly, 30.34% use mobile banking the
most, 20.22% use ATM services the most and the least used service are debit or
credit card services and phone banking services.

13) What online banking operations do you use the most?

OPTIONS VISITING PHONE ONLINE OTHER

BRANCH BANKING BANKING
Pay Bills 7.87% 5% 85% 2%
Consult balance/bank 6.74% 20.22% 73.03% 0
statements
Print bank slip or 28.09% 28.09% 43.82% 0
statement
Open an account 95.51% 0 3.37% 1.12%
Fund transfer 13.48% 21.35% 65.17% 0
Investments 15.73% 25.84% 53.93% 4.49%
Shopping 15.73% 22.47% 59.55% 2.25%
Insurance 84.27% 7.87% 4.49% 3.37%

Page | 50
 Loans and Mortgages 22.47% 31.46% 40.45% 5.62%
Contact your bank 69.66% 10.11% 10.11% 10.11%
advisor
Interpretation:

According to the research, 85% of people pay bills online, 73.03% people consult
balance and bank statements using online banking, 43.82% people print bank
statement, 95.51% people open an account by visiting branch,65.17% people use
online banking for bank transfer,53.93% use online banking for investments and
savings,59.55% people do shopping using online shopping,84.27% do insurance by
visiting branch,40.45% people take loans and mortgages using online
banking,69.66% people visit branch to contact the bank advisor.

14) Satisfaction on technology usage.

OPTIONS EXTREMEL DISSATISFIE NEUTR SATISFIE EXTREMEL

Y D AL D Y
DISSATISFIE SATISFIED
D
ATMs are 0.00% 1.12% 1.12% 65.17% 32.58%
conveniently
located.
Accounts 0.00% 1.12% 4.49% 67.42% 26.97%
information and
balance enquiry.
Account to account 0.00% 4.49% 5.62% 48.31% 41.57%
transfer.
Transaction status 1.12% 4.49% 5.62% 40.45% 47.19%
Statement Request 1.12% 4.49% 5.62% 40.45% 47.19%
SMS alerts about 2.25% 3.37% 5.62% 57.30% 31.46%
specific information
to the bank
services / new
products.
The charges that the 2.25% 5.62% 7.87% 50.56% 33.71%
bank collects from
you are reasonable
when compared to

Page | 51
other banks.
Interpretation:

According to data collected, it is found that 65.17% of respondents are satisfied

that ATMs are conveniently located.67.42% are satisfied knowing their accounts
information and balance enquiry.48.31% are satisfied on account to account
transfer.47.19% people are extremely satisfied for their transaction status.47.19%
people are satisfied on statement request.57.30% are satisfied for SMS alerts about
specific information to the bank services / new products.50.56% people are
satisfied for the charges that the bank collects from you are reasonable when
compared to other banks.

15) Problems of technology usage

OPTIONS OFTEN RARELY NEVER

Machine out of cash. 8.99% 10.11% 80.90%
Long waiting time in queues. 5.62% 41.57% 52.81%
Internet banking can be tampered with by 19.10% 46.07% 34.83%
others.
Lack of security in transactions. 8.99% 66.29% 24.72%
Too many steps in processing transaction. 12.36% 25.84% 61.80%

Interpretation: According to the research, 80.90% respondents think that ATM

machines never go out of cash. 52.81% of respondents think that they do not have
to wait in long queues. 46.07% respondents think that rarely internet banking can
be tampered with by others.66.29% of respondents think that rarely there is lack of
security in transactions.61.80% of respondents think that they do not have to
follow to many steps in processing transactions.

16) Frequency of transaction

a) 2-3 times per week

b) Once par month

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 c) Daily

d) Once per week

Transaction Frequency

9%
25%
Daily
Once per week
31% 2-3 times per week
Once per month

35%

Interpretation:

Least number of respondents are using digital banking services daily. Majority of
the respondents use the services 2-3 times per week, followed by once per week
and once per month.

17) What would encourage you to use more of online banking services?

a) Rewards

b) Simple/ clear services

c) Higher security

Page | 53
 d) Free transaction

e) Faster than traditional banking

Encouraging Factor for Online Banking

Faster than traditional banking

Free Transaction

Higher Security

Simple/Clear

Rewards

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00% 40.00%

Interpretation:

33.71% of respondents use online banking because it is faster than traditional

banking. Least number of respondents prefer online banking due to its simplicity or
clarity. 20.22% of respondents consider security as the most appealing factor.

18) Degree of satisfaction from the services via internet comparatively to service
via bank

a) Highly satisfied

b) Satisfied

c) Average

d) Dissatisfied

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 e) Highly dissatisfied

Degree of Sati safction

Highly satisfied Satisfied Average Dissatisfied Highly dissatisfied

Interpretation:

56.18% of respondents are highly satisfied. Only 1.12% of respondents are

dissatisfied with online banking services.

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Determining whether Age of the Customer impacts his Level of Involvement
in Digital Banking

HYPOTHESIS:

Ho = There is no significant relationship between age and using of digital banking

services.

H1 = There is significant relationship between age and using of digital banking

services.

Observed Expected
Age group fo - fe (fo – fe)2
Frequency: fo Frequency: fe
18-28 Years 27 25 2 4
28-38 Years 45 25 20 400
38-48 Years 25 25 0 0
Above 48 Years 3 25 -22 484
Total 100 100 0 888

(𝑓𝑜 − 𝑓𝑒)2
𝑐ℎ𝑖 – 𝑠𝑞𝑢𝑎𝑟e =
f

888
=
25

= 35.52

Level of significance taken : 0.05 or 5%

Degrees of freedom : 4 – 1 = 3

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An excerpt from table of “critical values of chi square” is given below:

INTERPRETATION:

As the calculated value (35.52) is greater than the value given by the chi-square
table(7.81), we reject the null hypothesis and accept the hypothesis H1. Therefore,
there is significant relationship between age group and use of digital banking
services.

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 FINDINGS AND CONCLUSION

With digitalization, customers are given better banking experience by making

possible 24 hours availability, fast and virtual banking platforms through various
products and services. The youth and middle aged group customers have reaped
the benefits of digitalization quite well. They are highly aware about most of the
digital initiatives taken by HDFC and seem more satisfied than the senior citizens.

The level of awareness and usage of online banking is comparatively low in case
of Senior Citizens. The importance of security for acceptance of internet banking is
a very important issue and it was found that people have weak understanding of
internet banking and mobile banking. This group of customers is more reluctant to
new technologies that might contain little risk. Therefore, they are more
comfortable with the personal banking services offered by the bank. A small
fraction of these customers use PayZapp and Mobile and Net Banking services but
the usage is very limited due to lack of trust and personal touch which is
considered very important by them when it comes to managing money.

It is therefore important to create more awareness about the perks of digital

banking. All age groups need to be targeted equally while doing so. Significant
measures on educating the middle aged and senior citizen customers are necessary.
One such measure can be conducting special seminars and conferences. It is found
that customers of these age groups are more attracted towards the offers and cash
back benefits provided by online banking applications and portal. However, the
security is the most important reason for their hesitation, resulting in limited usage
of these digital initiatives of HDFC. Hence, Banks should also try to ensure that
online banking is safe and secure for financial transaction and other services
similar to traditional banking to customer.

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 RECOMMENDATIONS AND SUGGESTIONS

1. The bank should make some efforts to familiarize the customers to various
services through

demonstrations.

2. The bank should adopt more upgraded techniques to make their customer feel
more secure

while accessing their accounts.

3. Effective awareness campaigns should be undertaken by the banks to make

their customers

more aware of net banking service

4. The bank should make a effort to provide a platform from where the customers
can access

different accounts at single time without extra charge.

5. The bank should take steps to create a trust in mind of customers towards
security of their

accounts.

6. The HDFC bank should introduce more services which can be accessed through
Net Banking

like advice on investment, TDS, etc.

BIBLIOGRAPHY
Page | 59
https://www.researchgate.net/publication/330383858_A_RISE_OF_DIGITAL_BA
NKING_IN_INDIA-_A_CASE_STUDY_OF_HDFC_BANK

https://www.hdfcbank.com/personal/learning-center/digital-banking/what-is-
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https://timesofindia.indiatimes.com/business/india-business/hdfc-bank-launches-
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Page | 60
https://www.hdfcbank.com/personal/find-your-nearest/Multipaypoint-for-Tax-
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https://www.solidcoupon.com/hdfc-payzapp-cards/

https://www.medianama.com/2017/08/223-hdfc-bank-digipos/

Page | 61