SUMMER TRAINING PROJECT REPORT

ON
FINANCIAL ANALYSIS OF CORPORATION BANK
BABASAHEB BHIMRAO AMBEDKAR UNIVERSITY
(A CENTRAL UNIVERSITY)

FOR THE PARTIAL FULFILMENT OF THE REQUIREMENT

FOR THE AWARD OF DEGREE IN
MASTER OF BUSINESS ADMINISTRATION

Under the Supervision of: Submitted By:

PROFESSOR KUSHENDRA MISHRA ADITI TIWARI
HOD - Department of rural management MBA Finance 3rd SEM
Dean – School Of Management And Commerce Roll No. 203819
BBAU

DEPARTMENT OF RURAL MANAGEMENT

SCHOOL OF MANAGEMENT AND COMMERCE
BABASAHEB BHIMRAO AMBEDKAR UNIVERSITY
(A CENTRAL UNIVERSITY)
(BATCH- 2020-22)

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 PROJECT REPORT

ON

‘CUSTOMER SATISFACTION WITH

DIGITALIZATION’

AT

HDFC BANK

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 CERTIFICATE
This is to certify that the project report entitled “CUSTOMERS SATISFACTION WITHN
DIGITALIZATION AT HDFC BANK” in the bonafide work of ADITI TIWARI, ROLL No:
(203819) MBA (FM) 3RD SEM from BABASAHEB BHIMRAO AMBEDKAR UNIVERSITY.

Date:
Place: Lucknow
Supervisor
Prof. Kushendra Mishra
Head – DRM
Dean – SMC,BBAU
(Central University, Lucknow)

ABSTRACT
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The project was carried out in HDFC Bank, Lucknow branch to know the role and importance
of digitalization in banking sector. “Scope of Digitalization in banking” - Digital
Transformation is far beyond just moving from traditional banking to a digital world. It is a
vital change in how banks and other financial institutions learn about, interact with and satisfy
customers. Our objective is to study digital transformation which will begin with an
understanding of digital customer behavior, preferences, choices, likes and dislikes, stated as
well as unstated needs, aspirations etc. And this transformation leads to the major changes in
the organizations, from product-centric to customer-centric view. A descriptive research has
been done, which is also known as statistical research, describes data and characteristics about
the population or phenomenon being studied. The sample size was 100 and data was collected
from three different branches of HDFC Bank Lucknow. Data Analysis was done in three
ways: one variable analysis of questionnaire,two variable analysis correlation test and
hypothesis testing - chi-square test. At the end, we found that use of digital services varies
from age to gender, visits to branch is been decreased and mostly e-services are used in paying
bills.

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 ACKNOWLEDGMENT

A successful project is fruitful culmination of efforts, of many people, some directly involved, and
others who have quietly encouraged and extended their support while being in the background. I
take this opportunity to extend my deep sense of gratitude and heartfelt thanks to all those who
have helped me directly or indirectly during the course of my project.

I consider myself very lucky that I got a chance to work with such a prestigious organisation:
HDFC BANK. It was a great chance for learning and professional development.

I would firstly like to express my profound gratitude and deep regards to DR. M. S. KHAN, Head
of Department for providing an opportunity to work on this project. I am highly obliged for his
exemplary guidance, monitoring and encourage throughout the course of this project.

I am highly obliged to PROFESSOR KUSHENDRA MISHRA, and DR RAVI KUMAR

SHARMA my supervisor and co – supervisors for guiding me through this project. Her guidance
at every stage of the project has provided has aspects to think of and incorporate possibilities and
work from there on. My thanks and appreciations also go to other employees in the organisation
who have willingly helped me out with their abilities.

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 EXECUTIVE SUMMARY
The project was carried out in HDFC Bank, Lucknow city with an objective of

knowing satisfactionlevel of customer with bank digital services and do customers are aware

about the differenttypes of digital services and different online offers provided by thebank.

The total sample size taken was hundred (100). The research shows that the market potential

for the bank is very goodand so many customers are not aware of the services provided by

the bank which arenot provided by other banks.

On the other hand, we have also the existing customers of HDFC Bank who

are satisfied with the working style of bank, but wantcontinuous updates about the new

service schemes and other products of bank. Theywant that bank should do promotional

activity as – Advertising. So that they can get updates while seating at home. The researcher

used the method of questionnaire toknow all feedback which is listed above. There are

different apps of bank and I was interacting to customers in bank and make them use those

apps for banking transaction. The upcoming digital technologies which will be adopted by

bank in future are been discussed in the report which will make banking more advance for

people.

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 TABLE OF CONTENT

Sr. no Title
1 Introduction
1.1 Problem Statement
2. Literature Review
2.1 Scope of Study
2.2 Objective of Study
3 Company Profile
3.1 Background
3.2 Promoter
3.3 Business Focus
3.4 Capital Structure
3.5 Amalgamation
3.6 Distribution Network
4 Digitalization
4.1 Digitalization in Banking Sector
5 E-commerce
5.1 Types of E-commerce
5.2 How it works?
5.3 Role of E-commerce
5.4 Scope of E-commerce
5.5 Effects on Society
5.6 Growth of E-commerce
6 Scope of Digitalization
6.1 E-commerce Sales Forecasting
6.2 E-commerce Transaction Forecast
7 Digitalization in HDFC Bank
7.1 SWOT Analysis of HDFC Bank
7.2 ATM & Card Statistics for APRIL 2017
7.3 HDFC Online E-commerce Services in Market
7.3.1 HDFC SmartBuy
7.3.2 PAYZAPP
7.3.3 CHILR APP
7.3.4 MOBILE BANKING
7.3.5 NET BANKING
8 Research Methodology
9 Data Analysis
9.1 One variable analysis of questionnaire
9.2 Two variable analysis - correlation tests
9.3 Hypothesis testing - chi-square test
10 Findings/ Results
11 Conclusion
12 Recommendation
13 Reference
ANNEXURE
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 1. INTRODUCTION
The project was carried out for understanding the customer behavior for digital platform
of 
HDFC Bank.HDFC Bank wasestablished in the year 1994, they are old player in banking
sector. The bank is growing its segments in digitalization. There are a lot of competitors in
digital market against HDFC bank and bank is trying to provide best digital services to
customers. The segment of bank we are considering here is- Digital banking. The product &
service out of which have chosen for research is digital Banking. This research helps us in
finding out the customers view regarding the product and Services offered by theHDFC
bank and awareness by promotion and also identifying the market potential of the product
offered by the HDFC bank.
Banks have traditionally been in the forefront of harnessing technology to improve
their products, services and efficiency. They have, over a long time, been using electronic
and telecommunication networks for delivering a wide range of value added products and
services. The delivery channels include direct dial – up connections, private networks, public
networks etc. and the devices include telephone, Personal Computers including the
Automated Teller Machines, etc. With the popularity of PCs, easy access to Internet and
World Wide Web (WWW), Internet is increasingly used by banks as a channel for receiving
instructions and delivering their products and services to their customers. This form of
banking is generally referred to as Internet Banking, although the range of products and
services offered by different banks vary widely both in their Content and sophistication.
Broadly, the
Levels of banking services offered through INTERNET can be categorized in to three types:
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(i)The Basic Level Service is thebanks‟ websiteswhich disseminate information on different
products and services offered to customers and members of public in general. It may receive
and reply to customers” queries through e-mail.

ii)In the next level areSimple Transactional Websiteswhich allow customers to submit their
instructions, applications for different services, queries on their account balances, etc., but do
not permit any fund-based transactions on their accounts.
(iii)The third level of Internet banking services are offered by Fully Transactional Websites
which allow the customers to operate on their accounts for transfer of funds, payment of
different bills, subscribing to other products of the bank and to transact purchase and sale of
securities, etc. The above forms of Internet banking services are offered by traditional banks,
as an additional method of serving the customer or by new banks, who deliver banking
servicesprimarily through Internet or other electronic delivery channels as the value-added
services.Some of these banks are known as „virtual‟ banks and may not have any physical
presence in acountry despite offering different banking services. From the perspective of
banking products and services being offered through Internet, Internet banking is nothing
more than traditional banking services delivered through an electronic communication
backbone, viz., Internet. But, in the process it has thrown open issues which have
ramifications beyond what a new delivery channel would normally envisage and, hence, has
compelled regulators world over to take note of this emerging channel. Some of the
distinctive features of e-banking are:
1. It removes the traditional geographical barriers as it could reach out to customers of different
countries / legal jurisdiction. This has raised the question of jurisdiction of law / supervisory
system, to which such transactions should be subjected.
2. It has added a new dimension to different kinds of risks traditionally associated with banking,
heightening some of them and throwing new risk control challenges.
3. Security of banking transactions, validity of electronic contract, customers‟ privacy, etc.,
which have all along been concerns of both bankers and supervisors have assumed different
dimensions given that Internet is a public domain, not subject to control by any single
authority or group of users.

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4. It poses a strategic risk of loss of business to those banks who do not respond in time, to this
new technology, being the efficient and cost-effective delivery mechanism of banking
services.

5. A new form of competition has emerged both from the existing players and new players of
the market who are not strictly banks. The Regulatory and Supervisory concerns in e-banking
arise mainly out of the distinctive features outlined above. These concerns can be broadly
addressed under three broad categories, viz., (i) Legal and regulatory issues, (ii) Security and
technology issues and (iii) Supervisory and operational issues.
Legal issues cover those relating to the jurisdiction of law, validity of electronic contract
including the question of repudiation, gaps in the legal / regulatory environment for electronic
commerce. On the question of jurisdiction, the issue is whether to apply the law of the area where
access to Internet has been made or where the transaction has finally taken place. Security of e-
banking transactions is one of the most important areas of concerns to the regulators. Security
issues include questions of adopting internationally accepted state of the art minimum technology
standards for access control, encryption / decryption (minimum key length etc.), firewalls,
verification of digital signature, Public Key Infrastructure (PKI) etc. The regulator is equally
concerned about the security policy for the banking industry, security awareness and education.
The supervisory and operational issues include risk control measures, advance warning system,
Information technology audit and re-engineering of operational procedures. The regulator would
also be concerned with whether the nature of products and services offered are within the
regulatory framework and whether the transactions do not camouflage money-laundering
operations. The Central Bank may have its concern about the impact of Internet banking on its
monetary and credit policies. As long as Internet is used only as a medium for delivery of banking
services and facilitator of normal payment transactions, perhaps, it may not impact monetary
policy However, when it assumes a stage where private sector initiative produces electronic
substitution of money like e-cheques, account based cards and digital coins, its likely impact on
monetary system cannot be overlooked. Even countries where e-banking has been quite
developed, its impact on monetary policy has not been significant. In India, such concern, for the
present is not addressed as the e-banking is still in its formative stage.

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 1.1 PROBLEM STATEMENT
The main problem associated with e banking services are the security concerns faced by both the
banks and their customers. The security concerns like TROJAN, MALWARE, and PHISING,
HACKING, etc., lead to hindrances in development of e-banking services. The problem also
concerns about
“HOW MUCH CUSTOMERS ARE SATISFIED WITH THE E-BANKING SEVICES OF HDFC
BANK”.

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 2. LITERATURE REVIEW
1] Dr. Abha Chandra, (July 2010), has carried out a research on “analytical research on
Indian online banking and users‟ privacy”, global journal of enterprise information System,
vol.2 isssue.1.

An empirical study is conducted to evaluate the existence and format of privacy policies of
different banks of India in conducting online banking through their websites. The objective of this
paper is to throw some light on the study, methodology, and its results. The websites disclose
personal information of the users to Third Parties, which may or may not have their own privacy
policies, is to be counted as one of the reasons for the same. This study also finds that no
Universal Standard format for a Privacy Policy has been designed and declared for banks in India
yet. It will be very helpful for net banking consumers, if there is an authority to monitor and
control the proper format and Points included in the privacy policy for banks.

2] ConnelFullenkamp and Saleh m. Nsouli, (February 2004), have carried out a research on
“six puzzles in electronic money and banking, credit and banking”, IMF institute, vol. 34,
pp. 112-123.

This paper presents a set of questions or puzzles whose answers will give a complete
picture of electronic money and its impact on the economy. It focuses on six basic puzzles; these
puzzles tend to build on each other. And will help us in understanding the concept of e-banking.

SIX PUZZLES IN E-MONEY AND E-BANKING:

A. Do we know what we are talking about?

B. What is really different about electronic money and banking?
C. Will changing bricks into clicks affect the economy?
D. Gresham's law puzzle
E. Monetary policy without reserves? Without money? Without a clue?
F. Do we need a protective firewall? Can we build one?

The adoption of Internet e-banking has an important implication for monetary policy.
Monetary policy will become less effective as money holdings become increasingly interest

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sensitive, because of Internet e-banking. The impact of this change has been incremental, since the
widespread adoption of Internet e-banking is likely to take place over many years.

The paper also states that the private e-banking activities need to be regulated by the central
banks in order to avoid inflation. This paper provides several important insights into e-money and
e-banking that will be useful to policymakers. It is said that the innovation in e-banking is the
adoption of Internet e-banking, and that the innovation in e-money is the creation of private e-
money. These innovations are the sources of the most significant effects, including potential
problems, from e- banking and e-money.

3] Francisco Javier Miranda, Rosa Cortes and Cristina Barriuso, (2006), have carried out a
research on“Quantitative evaluation of e-banking web sites: an empirical-study of Spanish
banks”, the electronic journal information systems evaluation volume 9 issue 2, pp. 73-82.

In this there is a discussion regarding the necessary parameters that are needed in an e
banking website. Quality of web home pages was determined using an original Web Assessment
Index, which focuses on four categories: accessibility, speed, navigability and content. A detailed
report of the results arising from this investigation is presented and systematically analyzed. These
findings are useful for both researchers and practitioners who seek to understand the issues
relevant to electronic banking. In this paper we can say that besides good IT infrastructure the e
banking websites also play an important role in facilitating the online transactions the language,
speed, content etc. play a major role for the customers to get motivated for using such facilities by
the various banks.

4] Hans H. Bauer, MaikHammerschmidt and Tomas Falk, (2005), have carried out a
research on
“International Journal of bank, marketing”, vol. 23 no. 2, pp. 153-175.

Given the fact that banks invest billions in the internet infrastructure (Deutsche Bank
invests approximately half a billion US$ per year), customer satisfaction and customer retention
are increasingly developing into key success factors in e-banking. Most importantly, profitable e-
banking requires a strong focus not only on the acquisition of new customers but also on the
retention of existing customers. From the study it can be said that the banks should not only focus
on the development of the infrastructure, but also put a large amount of focus on the convenience
provided to their clients, they should be more oriented towards the satisfaction of their clients and
make sure that the clients are more attracted towards these modern facilities.

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5] “Al. I. cuza” Iasi, (2004), has carried out a research on “some issues about risk
management for E banking”, electronic journal of information systems evaluation, volume
9, issue 2, pp 73-82.

This Study Reveals that In E banking could become the Major Form for Payment Systems
in Organizations as Technologies Will Improve to Create a Fully Secure Environment. It is
believed that e-banking is only a supplement of traditional methods. This paper suggests that not
only is it probable to use e-banking but that networks especially Internet will promote the
development of such a services. The paper also suggests the risk associated with such transactions
and the preventions for the same. E-banking presents new administrative control requirements and
potentially increases the importance of existing controls. Management must evaluate its
administrative controls to maximize the availability and integrity of e-banking systems. E-banking
information can support identity theft for either fraud at the subject institution or for creating
fraudulent accounts at other institutions. It can also be concluded that both the banks and the
customers need to be cautious about what and how they are dealing with. They must take all
necessary precautions while using such technology.

6] Dospinescu Octavian, Rusu Daniela, “AlexandruIoanCuza”, (2006), have carried out a

research on “the adoption of electronic banking services in developing countries – the
Romanian case “information systems, vol.2, pg. no. 34-67.

The developments taking place in information and communication technology are

affecting the financial institutions worldwide. This evolution had transformed the way banks
deliver their services, using technologies such as automated teller machines, phones, the Internet,
credit cards, and electronic cash. In this scenario, banking in Romania had undergone some
changes. Many banks have been investing in Internet technology in order to maintain a
competitive edge and satisfy their customers. The Internet, phone, mobile or electronic banking
offered in the Romanian banking market is in full development process, and the banks have to win
the confidence of the individual and corporate body customers, taking into account the fact that
the transactions that are made on the online system are perceived as highly risky, But the level of
accessibility regarding the performing of banking operations straight from the company office or
from home without depending on the opening hours of pay-offices determines a growing number
of customers to resort to this kind of services.

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7] Dr. AsmaMobarek, (2004), has carried out a research on “e-banking practices and
customer satisfaction-a case study in Botswana”, international journal of bank marketing,
vol. 21, pp. 94
– 103.

This research involves the study of four commercial banks in Botswana, these being
Standard Chartered Bank, First National Bank, Barclays Bank and Bank of Baroda. All these
banks are providing e-banking services to their customers. The usual E-banking services provided
by banks are account management; bill payment and presentment; new account opening;
consumer wire transfers; investment/brokerage services; loan application and approval; account
aggregation; cash management; small business loan applications, approvals, or advances;
commercial wire transfers; business-to-business payments; employee benefits/pension
administration etc. The paper includes an analysis of customers‟ perception towards e-banking
services, the quality of e- banking services provided by the banks and the constraints in achieving
customer satisfaction. The focus of the paper particularly on four delivery channels namely:
Automated Teller Machine (ATM), internet banking, telebanking and manual banking. The main
focus is done on internet banking as it is the delivery channel that seems to be slowly growing in
Botswana after the ATM delivery channel. Consumer behavior is changing partly because of less
spare time. The way of use of financial services is classified by individuality, mobility,
independence of place and time and flexibility. Financial transactions caused by purchases will
more and more be carried out by non- and near- banks. These facts represent big challenges for
banks. Banks are using the Internet as a new distribution channel. The hypotheses are tested and
show that there is a relationship between age group, occupation type and some aspects of e-
banking. At last that Banks must adapt to the electronics age. Consumers demand it. Economics
drives it. Banks must exploit it.

8] Dr.S. Arumugaperumal, (July 2006), has carried out a research on“impact of cybercrime
on virtual banking”. JournalComputer Science-S.T.Hindu College, Nagercoil-2.

This paper basically deals with the online risks that the banks and their clients face during
the online transactions they undertake. As more organizations provide greater online access for
their customers, professional criminals are successfully using phishing techniques to steal
personal finances and conduct identity theft at a global level. The popularity which virtual
banking services have won among customers, owning to the speed, convenience and continuous
access they offer, is likely to increase in the future. However, several issues of concern would
need to be pro-actively attended.

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 While most of electronic banking has built-in security features such as encryption,
prescription of maximum monetary limits and authorizations, the system operators have to be
extremely vigilant and provide clear-cut guidelines for operations. On the larger issue of
electronically initiated funds transfer, issues like authentication of payments instructions, the
responsibility of the customer for secrecy of the security procedure would also need to be
addressed. So for the better security multifactor authentication is best to make the virtual banking
much safer with higher security in the coming years.

9] GautamIvatury& Ignacio Mas, (April 2008), have carried out a research on“he early
Experience with branchless banking.” focus note 46. Washington, D.C. CGAP.

Branchless banking has great potential to extend the distribution of financial services to
poor people who are not reached by traditional bank branch networks; it lowers the cost of
delivery, including costs both to banks of building and maintaining a delivery channel and to
customers of accessing services (e.g., travel or queuing times)

OBSERVATIONS:

1.Branchless banking can dramatically reduce the cost of delivering financial services to poor
people. 2.Branchless banking channels are used mainly for payments, not for savings credit.
3.Few poor and unbanked people have begun using branchless banking for financial services.
4.Financial services providers view agent networks as key to achieving their business strategy.
5.Most mobile banking projects to extend market reach have been led by mobile operators.

PREDICTIONS:

1.Poor people will use mobile banking more than rich people.
2.Providers will manage the operational risks of using Agents, and customers will tolerate
liquidity shortfalls.
3.Shared agent networks will be the key to massively expanding access to finance through
branchless banking.
4.Mobile banking will be used by large numbers of poor, currently unnerved people in about three
years, as a result of competitive market entry.

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10] Basel committee on banking supervision, (may2001), has carried out a research on “risk
management principles for electronic banking,“electronic banking group initiatives and
white papers”.

Banking organizations have been delivering electronic services to consumers and Business
for years. Electronic funds transfer, including small payments and corporate cash management
systems, as well as publicly accessible automated machines for currency withdrawal and retail
account management, are global fixtures. This study explains a clear need for more work in the
area of e-banking risk management and that mission was entrusted to a working group comprised
of bank supervisors and central banks, the Electronic Banking Group (EBG), which was formed in
November 1999.

Principles of E-banking:

1. Effective management oversight of e-banking activities.

2. Establishment of a comprehensive security control process.
3. Comprehensive due diligence and management oversight process for outsourcing relationships
and other third-party dependencies.
4. Authentication of e-banking customers.
5. Non-repudiation and accountability for e-banking transactions.
6. Appropriate measures to ensure segregation of duties.
7. Proper authorization controls within e-banking systems, databases and applications.
8. Data integrity of e-banking transactions, records, and information.
9. Establishment of clear audit trails for e-banking transactions.
10. Confidentiality of key bank information.
11. Appropriate disclosures for e-banking services.
12. Privacy of customer information.
13. Capacity, business continuity and contingency planning to ensure availability of e banking
systems and services.
14. Incident response planning.

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11]“Changing landscape of banking system in India: payment banks opportunities or
challenges (2016)” ByDr. Surbhi G. Garg, Assistant Professor, Institute of Management
Sciences, University of Lucknow.

Payment Banks in India have been introduced with the primary objective of increasing the impact
of financial inclusion drive. They are a mechanism that has been developed so that transfer of
funds and other basic financial services can be made available to the under-banked population of
the country. To achieve this objective, payment banks will have to make huge investments into
technology, product innovation, diversification of portfolios and fine pricing policy to maintain
their market share and profitability (Kohli and Patel, 2016). However, the competition between
traditional and payment banks will lead to widening and improvement in quality of banking
services at reduced costs and which may finally result in financial inclusion. However, there still
exist many challenges in the successful implementation of this endeavor. There are numerous
bottlenecks that need to be addressed before the real benefits of any differentiated bank can be
enjoyed by the targeted beneficiaries.

12] 27th Bled e-Conference e-Ecosystems June 1 - 5, 2014; Bled, Slovenia“A Literature
Review on Digital Transformation in the Financial Service Industry”Timo CzieslaUniversity
of Gottingen, Germany.
One insight when comparing the different sectors of the financial service industry is, that nearly
every traditional business model of companies in the financial service industry is challenged by
the increasing digitization. New players, financial but also increasingly non-financial companies
enter into incumbent’s markets and offer services at a cheaper rate and/or better service quality.
Moreover, whole business models become obsolete by bypassing an intermediary financial
service provider in the value chain. Eventually, we can observe an increasing rate of
disintermediation of traditional financial companies. Another finding is that the lines between IT
and business become more and more blurred. In the past, the role of IT had a rather business
supporting function. Today, IT often acts as an enabler of new business models like person-to-
person lending. With the further increase of digital technologies, one can assume that these trends
will continue.

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The category customer relationship shows that there is strong evidence towards customer
centricity by using digital technologies in the banking industry. It is also evident, that digital
technologies have an impact on customer service performance. The conclusion for the information
and technology relationship is that there is a trend from “physical to digital” in the financial
service industry. To be able to digitize a product or service means the cost for information
processing decrease. Markets tend to become more transparent in a digital environment.

13] Research paper on “A Study on Digitalization of Banks within India” by Twinkle M.

Trivedi(March 2017) Research Scholar at Indus University.
In today's era, the new mantra 'Digitalization' which has evolved in recent times is considered to
be the crux ofbanking sector in India. Globally banks have revolutionized and transformed into
the concept of Anytime, anywhere banking and India is not an exception. The major importance
of digital banks lies in their ability to be omnipresent and many technologies are to be adopted for
digitalizing banks. This conceptual research article deals with evolution of digital banking in India
and the major challenges associated with it. Digital revolution has changed the course of history in
banking industry and traditional branch banking leaving a major implication on both industrial
and organizational structure.
Role of digitization in banking
Digitization is not an option for banking industry, rather it is inevitable because every industry is
being digitized and banking sector is no exception. Digitization is not just a distribution and
retailing phenomenon. Digital technologies, solutions, and thinking will have a substantial impact
across the full range of banking activities. For example, in banking operations, process
digitization will lead to the automation of most back-office processes. Digital banking is known to
comprise of three levels which have been explained below:
 Basic Level: It comprises bank's websites which provide information on a variety of
products and services to the public in general.
 Second Level: Simple transactional websites constitute the second level. It allows the
customers to submit their miscellaneous requests and queries.

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 Third Level: Fully transactional websites are found in the third level. These websites
enable the customers to operate their accounts. Some banks even do not have a physical
presence, but are still existent virtually. They are commonly known as “Virtual” or
internet only banks.

2.2Scope of study:

The scope would be wide as we can come across the benefits as well as variousrisks &
threatsof e-banking. To gain accurate results for the study, 100 people were given
questionnaire in three different branches to know HOW MUCH THEY ARE SATISFIED
WITH THE E-BANKING SEVICES OF HDFC BANK. The scope of the study was limited
to the customers of HDFC bank & Lucknow city. The study covers all upcoming digital
technologies in banking sector and their importance in making safe & secure transactions.

2.3 Objectives of study:

The objectives of study of project are to know how the digital services can be improved so
that it can be easier and safe for customers to do transactions through online digital modes.

The main objectives of the study are:

 To study and to make e-banking users aware various e- banking risks like Phishing,
identity theft, frauds of plastic money, Trojan, malware etc.

 To study the reasons for the limited use of e-banking services.

 To create Awareness among customers towards e-banking services.

 To find out the frequency and the factors that influences the adoption of Internet-
Banking services.

 To measure the satisfaction level of people regarding Internet-Banking.

 To understand the problems encountered in by people while using Internet-Banking

services (ATM, Phone Banking, etc.)

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 3 COMPANY PROFILE

 HOUSING DEVELOPMENT FINANCE CORPORATION, founded in 1977 by

Late Mr. Hasmukhbhai Parakh.

 HDFC Bank was incorporated on 30’August 1994.

 Promoted by HDFC, the parent company.

 Chairperson of HDFC Bank Ltd. is Mrs. Shyamala Gopinath.

 M.D. and C.E.O. of HDFC Bank Ltd. is Mr. Aditya Puri.

 Board of Directors of HDFC Bank:

 Mrs. Shyamala Gopinath

 Mr. Aditya Puri

 Mr. Keki Mistry

 Mrs. Renu Karnad

 Mr. Partho Dutta

 Mr. Bobby Parikh

 Mr. A.N. Roy

 Mr. Paresh Sukthankar

 Mr. Kaizad Bharucha

 Mr. Malay Patel

 It is the fifth largest bank in India as measured by assets.

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 According to the Brand Trust Report 2017, HDFC was ranked 103 among India's most

trusted brands.

 Products by HDFC Bank:

 NRI Banking

1. Accounts & Deposits

2. Money Transfer

3. Investments & Insurance

4. Research Reports

5. Payment Services

 SME Banking

1. Accounts & Deposits

2. Business Financing

3. Trade Services

4. Payments & Collections

5. Cards

6. ATM

 Wholesale Banking: HDFC offers Wholesale Banking for Corporates and Financial

Institutions & Trusts. The Bank also provides services such as Investment Banking

and other services in the Government sector.

 Services by HDFC Bank:

 Retail Banking Services

 Wholesale Banking Services

22
  Treasury

3.1 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 liberalization 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.

3.2 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.

23
 3.3 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 Bank’s business philosophy is based on five core values: Operational

Excellence, Customer Focus, Product Leadership, People and Sustainability.

3.4 CAPITAL STRUCTURE

As on 31st March 2017 the authorized share capital of the Bank is Rs. 650 crores. The paid-up
share capital of the Bank as on the said date is Rs 512,50,91,434/- (i.e. 2562545717 equity shares
of Rs. 2/- each). The HDFC Group holds 21.198 % of the Bank's equity and about 18.458 % 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). 34.354 % of the equity is held by
Foreign Institutional Investors (FIIs) and the Bank has 4,81,983 shareholders. 

24
 3.5 AMALGAMATION OF TIMES BANK & CENTURION BANK OF PUNJAB WITH

HDFC BANK

On May 23, 2008, the amalgamation of Centurion Bank of Punjab (CBoP) 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.

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.

25
 3.6 DISTRIBUTION NETWORK

HDFC Bank is headquartered in Mumbai. As of March 31, 2017, the Bank’s distribution network
was at 4,281 branches across 2,657 cities. All branches are linked online on a 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 centres,
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 centres where the NSE / BSE have a strong and active
member base. The Bank also has a network of 12,260 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.
 

26
 4 Digitalization
The banking industry’s efforts to shift to digital channels have been halting, at best a business unit

here, an upstart department there. But given the industry’s financial pressures and global economic

uncertainties, there is increased urgency and opportunity to adopt a holistic approach to going digital

and integrating that strategy across the banking ecosystem. Embracing a fully digital strategy

requires end-to-end modernization of a bank’s often outdated infrastructure. Equally important, it

requires a transition from an account-based view of banking customers to one that knows them as

individuals and enhances the customer experience with relevant, convenient and personalized

products and services.

 Integration of digital technologies into everyday life by the digitization of everything that

can be digitized.

 Conversion of analog information in any form (text, photographs, voice, etc.)

to digital form with suitable electronic devices (such as a scanner or

specialized computer chips) so that the information can be processed, stored, and

transmitted through digital circuits, equipment, and networks.

27
 4.1 Digitalization in Banking Sector:
The digital transformations taking place in finance are driven by many common

challenges and opportunities across the industry, whether it concerns insurance, (retail) banking or

other financial services. At the same time, in each of those financial industry segments there are

several specific challenges, depending on the digital transformation maturity level, the region, the

overall ecosystem, the customer context (including digital channels), the business scope and the

degree in whichdigitization has taken place and processes have been connected.

5 E-COMMERCE

E-commerce is trading in products or services using computer networks, such as the Internet.
Electronic commerce draws on technologies such as mobile commerce, electronic funds
transfer, supply chain management, Internet marketing, online transaction
processing, electronic data interchange (EDI), inventory management systems, and
automated data collection systems.

28
FIG.5.1 EVOLUTION OF E-COMMERCE

29
5.1Types of e-commerce:

1. B2B (Business to Business): This involves companies doing business with each other. One
example is manufacturers selling to distributors and wholesalers selling to retailers.
2. B2C (Business to Consumer): B2C consists of businesses selling to the general public
through shopping cart software, without needing any human interaction. This is what most
people think of when they hear "e-commerce." Examples: Flipkart, Amazon.
3. C2C (Consumer to Consumer): This takes place within online classified ads, forums
or marketplaces where individuals can buy and sell their goods. Examples: Olx, eBay.

5.2 How it works/Example:

1. In e-commerce, exchanges occur between two parties over some electronic medium,
typically the Internet. These exchanges are most commonly transactions between
companies and consumers, wherein consumers purchase products and services by
credit/debit/net banking payment over a secured website. These exchanges, however,
can also include transactions between companies as well as between individuals.

2. An example of business-to-consumer e-commerce would be an online store such as

Amazon.com. Anyone with Internet access and a credit card can access the website,
browse products and services, make a selection, and purchase a product by credit
card payment with the assurance of delivery in the mail.

3. An example of e-commerce between individuals, or between two consumers, would

be an online marketplace such as eBay.com. Similar to the example above, anyone
with Internet access and a credit or debit card can browse and purchase available
products. The difference here is that products are being sold by individual sellers
(other consumers) rather than one large online store.

30
 FIG5.2 : Uses of E-Commerce

E-Commerce

E-Tailing E-Travelling E-Education E-Religion

Example: Payments Example: Payments Example: Payement of

Example: Payemnts
and collection at and collection at donations.
and collection of fees
amazon, flipkart, booking tickets for www.shrisaibabasanst
of institutions
snapdeal etc. travelling, irctc han.org

31
 FIG 5.3 Role of Bank in E-commerce:

5.3Scope of E-commerce:

“Banking At Any Time, Any Where…”

 Inter and intra organizational activities.

 Marketing, sales and promotions.
 Exchange of digitized information.
 Commercial transactions: ordering, delivery and payment.
 Technology enabled transactions.
 Easy to use on laptop, desktop, mobile and tablets.

32
5.4Effect On Society:

 The e-commerce offers the consumer or enterprise various information they need, making
information into total transparency, will force enterprise no longer is able to use the mode of
space or advertisement to raise their competitive edge.
  The transparent and real-time information protects the rights of consumers, because the
consumers can use internet to pick out the portfolio to the benefit of themselves.
 The competitiveness of enterprises will be much more obvious than before, consequently,
social welfare would be improved by the development of the e-commerce.

5.6 Growth of E-Commerce:

 Explosive growth of Smartphone users, soon to be world's second largest smartphone user base
which has increased the online mobile transactions.

 Increased usage of online classified sites, with more consumers buying and selling second-hand
goods.
 Availability of much wider product range (including long tail&Direct Imports) compared to
what is available at retailers.
 Large percentage of population subscribed to broadband Internet, 3G internet users, and a
recent introduction of 4G in few cities.

FIG.5.4: Growth in No. Of Users of Internet

33
SOURCE:dazeinfo.com

6. Scope of Digitalization

34
Pretty much all of the major retail Banks now have banking apps for smart phones and

progressive designed (i.e. it scales well on any screen size) web banking. But digital banking

should and will soon go further than that. There are trends in digital design that are common place

in other sectors as well as some interesting developments in smartphones and Omni-channel retail

(i.e. coordinating your strategies for both bricks and clicks) that will start to have a massive

influence on banking from 2017. There are also opportunities behind the scenes that digital could

bring in areas such as in branch productivity, customer analytics and Embedded Digital Banking.

There are some key trends and sporting prediction about whether or not each will be offered by

the mainstream Banks in 2017.

1. Your phone is your wallet, just tap-to-pay:

The idea that your phone could replace your payment cards has been around for several

years. However, recent developments are about to make that a reality. NFC chips have been

embedded in most Android phones for around two years. These allow your phone to work like a

contact-less card. Furthermore, Android 4.4 & above versions (also known as Kit-Kat) has

supported HCE (host card emulation) for a year now. This is a change in how the security of the

NFC chip is managed and means that we should expect mainstream Android banking apps to

begin to support tap-to-pay in 2017. There are early adopters rolling this out in New Zealand and
Australia already.

More recently, Apple announced the availability of NFC chip in the iPhone 6, as well as a

payment method called Apple Pay, which will allow you to pay by tapping your phone and

authenticating by swiping your fingerprint. This simultaneously offers the Banks opportunities to

have tap-to-pay on their iPhone apps and brings up the specter of Apple as a competitor.

It's not just Banks. Businesses in many sectors will release apps that will allow you to

'store' debit and credit card numbers in your phone and use tap-to-pay (as in Google wallet.)
35
Watch out for Tech companies, Telcos, and payment companies/consortia like PayPal and Zapp. I

would expect the entire pre-paid card industry to switch from using physical cards to purely

virtual cards stored in apps before long. Countries where pre-paid is big (Italy, South America)

should lead the way.

A whole new sector of businesses providing methods to authenticate and secure these

payments is emerging, and Visa have announced their Visa Digital Solutions service to make it

easy for phone manufacturers and financial institutions to deliver these mobile based payment

services. This is an important area because the potential for fraud is huge.

‘Tap-to-pay will be big, but Banks will be followers if they don't get busy’

2. Gamified banking:

Gamification is the application of computer game concepts to day-to-day software

applications, apps and web sites. It doesn't just mean the making the user interface work like

Space Invaders; it could equally apply to adopting concepts like collecting points or spotting

matching visuals. In terms of banking there are many experiments going on from apps that reward

users with points when they explore new services, to ones that unlock in app game levels when

saving deposits are made.

Banking gamification will generally be targeted at encouraging regular engagement i.e.

logging on more often. This will drive more use of digital which drives down the use of branch

based banking (which costs more.) I would expect it to be a feature that many users will not be

interested in so it will be optional. Ultimately, I can't see it making enough measurable difference

versus other digital initiatives.‘Banks will abandon most gamification after early experiments’

3.Banks bringing out multiple Digital products:

36
At the moment, the main Banks tend to focus on their core retail banking App as the core platform

which makes perfect sense. But as they begin to move from just using digital banking as a

replacement low cost channel, to using it as a competitive differentiator, they may start to think

about releasing niche apps aimed at customer acquisition.As an example, one area from which we

all are very familiar is remittance or international money transfers. This is a huge global industry

dominated by cash-to-cash players like Western Union and Money gram. Whereas Banks can

easily bundle this functionality into their standard banking app, they could also use it to acquire

new customers with a targeted money transfer app and digital marketing campaign.The same

could be done with things like US, Eurozone and Indian P2P transfers and bill payments, mobile

wallets, share trading, pension management and switching, money management and so on.

4. Omni-channel banking:

Omni-channel banking is a combination of branch banking and digital banking. There are

countless interesting scenarios that merge the customer experience of both of these channels to a

seamless, integrated one.For example, as you're watching a program about moving to Spain one

night you browse your banks web site or app for Spanish mortgages. Later that week when you

enter the branch to take out some money from the ATM, a smart Bank employee approaches you

holding a tablet and asks if you are Mr. Smith, and would you be interested in reviewing the

Bank's range of overseas mortgages. They know it's you because either the ATM told them, or

your phone told them (see location based services below), or possibly the door face scanner

recognized you! It sounds intrusive, but you could have clicked on a button on the app or web site

requesting information the next time you entered a branch. All Banks make efforts to characterize

their customers and there would be profiling to try to predict which customers would like this type

of merged experience, and which ones would not.‘Not for 2017, commonplace by 2019’

5. Location and activity-based services and offers:

37
Your phone, tablet and computer all know where you are and have a pretty good idea what you

are doing; e.g. at home watching TV, out running (or out shopping), or even out of the country. E-

Commerce businesses are tapping in to this information to offer targeted, relevant services and

offers to their customers. We all see this in the way image ads are targeted at us as we search or

browse. Based not just on where we are but also our online history, our demographic, even our

marital or social status.

Will Banks be using the same information to offer us specific products and services? Well they

already are, via targeted advertising on platforms like Google Ads, Facebook Ads, LinkedIn, etc.

So it's not a huge leap of imagination to begin to do the same via their own web sites and apps.

For example: You are at home and have logged on to internet or mobile banking for more than 10

minutes. You have paid a few bills, deleted a couple of standing orders and/or moved significant

amount to or from your savings account. Yes, you're having a financial tidy-up! What a good time

to offer you a bit of in-branch face time with a Relationship Manager. Or an online financial

health check. Or the Bank's new Financial Planning app?

Or in another example, you are out shopping and are in a shopping mall (as reported by

your phone's location tracking via the radio mast triangulation, GPS or BLE*.) You have made

several card purchases. You have spent much more than in previous months on clothes or

consumer electronics. Yes, you're having a splurge! Maybe now would be a good time to offer an

unsecured loan? OK maybe this is a bit too cynical, but you get the idea. ‘It became more

obvious in 2017– 2018’

*BLE is Bluetooth low energy, known as iBeacon on Apple. A way to identify your location to

within a few 10s of meters that doesn't drain your battery. This will be big in retail for shopper

identification and targeting.

38
6. Customer analytics and lots of lovely data:

Digital platforms offer marketing managers and data scientist’s huge opportunities. With

the financial and purchasing information available to Banks, they will have the potential for

understanding their customers in great detail.

This does bring issues of data governance, data management and privacy, which Banking

Regulators are rightly keeping a close eye on.

The opportunities for using this data to improve digital offerings (usability, experience)

and banking and associated services are massive. It could be the biggest ROI from digital banking

of them all.

It's not just about understanding individual customer behavior, it's also about optimizing

app and web user experience through A/B or multi-variant testing. Essentially using data-driven

methods for improving the business value derived from online experiences rather than design-led

or feature-led approaches.

‘Banks that really exploit it will pull ahead in 2017– 2018’

7. Embedded Digital Banking:

The idea here is to deconstruct banking services and offer them digitally embedded in

other products. This is not uncommon for payment services, for example with Sofort and iDEAL.

These allow you to pay for a purchase at an e-Commerce checkout directly with your bank

account.So why not expose parts of the banking service to other web based businesses that have

relevant customer interactions? For example, if someone is buying a new car online the car sales

web site could offer a Bank loan at the point of sale to pay for it. Or more obviously, the foreign

exchange if that car is to be imported.

39
 Banks are slightly resistant to this kind of approach not least because of the impact of

Regulators and the potential for fraud. But I do see some Banks beginning to really deconstruct

what it is to be a Bank and think how to offer those services in the best way possible.

6.1 E-Commerce Sales Forecasting:

40
 6.2 E-commerce Transactions Forecasting:

7. DGITALIZATION IN HDFC BANK

41
 HDFC BANK LTD.
 TYPE: Private

 FOUNDED: August, 1994

 HEADQUARTERS: HDFC Bank Ltd, Mumbai, India

 INDUSTRY: Banking, Insurance, Capital Markets & Allied Industries.

 PRODUCTS: Loans, Credit Cards, Savings, Investment vehicles, Insurance etc.

 NO. OF BRANCHES & ATMs: 4,281 Branches & 12,260 ATMs in 2,657 Cities/Towns.

 NO. OF EMPLOYEES: 84,325

 WEBSITE: www.hdfcbank.com

 FB LINK: https://www.facebook.com/HDFC.bank

 TWITTER LINK: https://twitter.com/hdfc_bank

 BLOGSPOT: hdfcbankblog.blogspot.com

7.1 SWOT ANALYSIS OF HDFC BANK LTD.

42
 STRENGTHS WEAKNESS

 It is 2nd largest private bank of India.
 It is bank with highest market capitalization in
2017.
 It is ranked 45th in world’s top 50 banks.
 There are 4,281 Branches & 12,260 ATMs in
2,657 Cities/Towns.
 HDFC cards are most preferred card for
shopping and online transactions.
 Doesn’t have strong presence in rural
areas.
 The bank focuses mostly on high end
clients.
 System maintenance problem.
 Customer care service problem.
 Smart pay issues.

 Maximum use of HDFC POS machine.

43
 OPPORTUNITIES THREATS

 Very high competition prevailing in

 Going to foreign markets and exploring the new
the industry.
economies.
 Vulnerable to reactive attack by major
 Merging small nonprofit bank.
competitors.
 New offers according to demographics.
 Lack of infrastructure in rural areas
 Use of social media as medium of interaction.
could constrain investment.
 Target rural areas (less competitors).
 Aggressive marketing of competitors.
 Smart buy.
 Rewards on no. of transaction to user.

44
 7.1.1 STRENGTHS OF HDFC BANK:
 It is 2nd largest private bank of India due to which it is recognize as Brand Name Bank in India
(customers have faith in bank).
 It is bank with highest market capitalization in 2017 of about $ 57 billionwhich was more than
SBI, which made it India’s most valuable bank.
 HDFC Bank ranked 45th in world, leaving behind SBI at 46th rank and ICICI bank 53rd rank in
world. HDFC Bank has got place in top global bank.
 HDFC Bank with 4,281 Branches & 12,260 ATMs in 2,657 Cities/Towns which make it easy
reach of customers and by this a large part of India is having HDFC Bank.
 Having large no. of ATMs is strength of HDFC Bank, by this maximum transaction and services
are used by HDFC customers and other bank customers (withdrawal of cash).
 There are a lot of offers and facilities given to Credit and Debit card users because of which
HDFC Cards are most preferred card for shopping and online transaction.
 About 60-65% HDFC Point of Sale Machines are there in market, hotels, hospitals etc., by which
all transaction are passed by HDFC Bank.

45
 7.1.2 WEAKNESS OF HDFC BANK:

 HDFC Bank is having total 4,281branches in which only 206 branches are in rural, which shows
that Bank is having very less coverage in rural due to which no. of customers are less than SBI
and other PSB’s.
 HDFC Bank’s focus is basically towards middle class and above class customers due to which
there is a loop between bank and less income customers.
 System maintenance problem are occurring during peak time of online transactions in bank, due to
which customer satisfaction is not there and customer gets irritated when in such condition
customer care don’t reply properly.
 High cost of service.
 Continual wants of customers want and needs.
 Initial investment in technology will be expensive.

46
 7.1.3 OPPORTUNITIES FOR BANKS:

 International banking in foreign markets will give new growth to bank.

 Providing banking facilities according to country culture and economy. For ex: Barclays bank is
providing banking in KENYA which is Islamic country and where they have “SHARIA LAW” in
which they can’t have collection and payment of interest. So, Barclays Bank has provided La Riba
Banking for convenience of citizens.
 Understanding the demographics of target customers of bank and then providing products and
services according to its segmentation.
 To increase the branches in small cities/towns, HDFC Bank should merge small low profit banks
to its organization.For ex: Union Bank of India merged Sikkim Bank, Miraj State Bank and
Belgaum Bank in its organization.
 Smart Buy is a platform for new sellers with low capital investment in their business who need an
online platform for selling their product all over India, this is new way to use bank in e-commerce.
 The ability to have a larger customer base.
 Global expansion-This is an enormous market which will be a great opportunity in the future.
 The ability to take advantage of the growing opportunity of internet banking.
 Can achieve customer loyalty and satisfaction.

7.1.4 THREATS FOR HDFC BANK:

47
 SBI, ICICI BANK, AXIS BANK & other PSUB are major competitors of HDFC Bank which are
now days giving importance to internet or e-transactions and are doing aggressive marketing in
market.
 New technologies are launched day by day, by these banks to attract more customers.
 Though no. of customers is high on one side, the unsatisfied customers are increasing and forcing
them to switch to other banks.
 Continuously changing technology.
 Uncertainty of the banking industry.
 Competition from the lower price operation.
 Possible failure of product due to non-acceptance of customers.

48
 7.2 ATM & Card Statistics

ATMs CREDIT CARDS DEBIT CARDS

No. of Transactions No. of Transactions

(Actuals) (Actuals)

Sr. On- Off-

Bank Name
No. site site

ATM POS ATM POS

1 2 6 7 11 12

6076 4754
1 PUNJAB NATIONAL BANK 7622 341365 21287190 11078625

2 STATE BANK OF INDIA 29254 29544 87077 14723747 326949447 83277547

3 AXIS BANK LTD 3182 11003 54676 9619367 20828825 18540154

4 FEDERAL BANK LTD 1151 517 0 0 4222133 2278613

5 HDFC BANK LTD 5830 6504 136622 30991458 27547659 35178164

6 ICICI BANK LTD 5042 8618 22740 15109641 26970454 32653690

 From above data we can do an analysis that HDFC Bank is ranking 1 st in online transactions in

Indian market. Use of HDFC Bank POS machine is maximum in market. Payment through Debit

49
 or Credit in total is maximum in comparision of many other banks. HDFC Bank has adopted

digitalization very strongly in its system.

7.3 HDFC ONLINE E-COMMERCE SERVICES IN MARKET

7.3.1 HDFC SMARTBUY:

 OS Required: Windows Vista or 7 or 8 and above & Mac OS X and above operating systems
 Required Browsers: Internet Explorer 9.0 or above, Mozilla Firefox v29 or above, Google
Chrome v18 or above.
 Website:www.offers.smartbuy.hdfcbank.com
 HDFC Bank is providing a platform in e-market to new business comers.
 HDFC Bank SmartBuy is a platform only for display of offers extended by Merchants to HDFC
Bank's Customers.
 HDFC Bank is hosting the SmartBuy platform purely for the convenience of its Customers to
display the offers extended by Merchants to HDFC Bank Customers.
 The Products/Services are being offered solely by the Merchants and HDFC Bank is not
selling/rendering any of these Products/Services.
 HDFC Bank is not undertaking the business of on-line retail trading or shopping by hosting the
SmartBuy platform.

50
 HDFC Bank will not earn any commission or any other fee upon its Customers viewing the
offers made available by Merchants or purchasing/ availing of a Product/Service offered by
Merchants, except the customary considerations for use credit cards/debit cards/net banking
facility.
 The Customer is free to purchase/avail them from any other stores/online platforms and by using
any other payment mechanism.
 HDFC Bank is merely facilitating the payment to its Customers by providing the Payment
Gateway Services.

7.3.2 PAYZAPP:

51
 “Card link karoekbaar, pay karobaarbaar!” PayZapp is HDFC Bank new application which can be

downloaded from Google Play Store.

 Customers can shop on their mobile at partner apps, buy movie tickets, music and groceries,

compare and book flight tickets and hotels, shop online and get great discounts, send money to

anyone in contact list in mobile, DTH and Data Card, Bill Payments etc.

 PayZapp does not require credit or debit card numbers and security codes to be entered for every

purchase.

 There are no pre-paid card restriction on daily or monthly limits and no need to load money to

pay.

 HDFC Bank has partnered with leaders like Flipkart, Makemytrip, Cleartrip, BookMyShow,

Expedia, GoIbibo, Yatra and Big Basket for PayZapp.

 In 2014-15, 63% of all transactions at HDFC Bank are conducted through digital channels, it

added.

7.3.3 CHILLR APP:

Chillr is a revolutionary new app that lets customers send money immediately to anyone in
their phone book, 24 hours a day, 7 days a week.
52
We can request money, split bills amongst friends and can also recharge our mobile, DTH &
data cards. Soon we will be able to pay at online or offline stores using Chillr.

Chillr is launching first for HDFC Bank and is available exclusively for customers of HDFC
Bank. As an HDFC Bank customer, we can also transfer money to our contacts having other
bank accounts.
Money transfers made easy!
 Send money to anyone in your contact list by using only your contact's mobile number. No
more adding beneficiaries and asking for their bank details.
 You can also send money without sharing mobile numbers with Chillr App users in your
vicinity, using 'Near Me' option.
 Split bills easily among your friends and colleagues.
 Recharge your mobile, DTH and data cards.
 Transfer money between your bank accounts.
 Immediate flow of money between bank accounts.
 Available 24x7 including weekends and bank holidays.
High-end security:
 All transactions are authorized through an M-PIN that is issued by HDFC Bank and
known only to you.
 No passwords are stored in the App.
 Custom keyboards to protect you from phishing attacks.
 Secured by 2048-bit client certificates.

53
SOME OTHER PARTNERED BANKS WITH CHILLR APP:

54
WHAT'S NEW

 Chillr V2.0, to make your payment experience smoother and fun.

 A brand-new home screen that brings your most used features just one tap away.
 Timeline: Payments go social for the first time in India. Timeline lets friends share fun
aspects of payment with each other.
 Easy way to hide and see account balance.
 You can now request money from a Chillr user using QR code.
 Easier way to categorize your expenses while paying or collecting money from someone.

7.3.4 MOBILE BANKING:

Mobile banking has huge potential in India where a major part of the population belongs to the
unbanked category. The high penetration levels of mobile phones and low transaction costs
involved in mobile banking are likely to be the potential growth drivers for these services.

With 800 million mobile connections and almost 200 million debit and credit card holders,
mobile handsets offer a far wider reach than other forms of banking. The mobile device can be an
important tool to cover the large unbanked population in the country. Handsets offer convenience

55
by providing the ability to transact anytime, anywhere. For banks, it serves as a cost-efficient
mechanism, with the cost of transaction on a mobile estimated to be one-tenth of the transaction
cost of a bank branch and one-sixth the cost of a transaction through an ATM. Due to these
advantages over conventional forms of banking, mobile banking has significant potential and is
likely to witness strong growth. 

 The key impediments to the growth of mobile banking:

Security concerns of end users act as an impediment to the uptake of mobile banking
services. These concerns relate to being subjected to fraud in this mode of payment as well as with
respect to data privacy. 

The lack of awareness about services and security protocols are also impeding the growth
of these services. The low penetration of smartphones is another impeding factor, which may
prevent the large-scale adoption of sophisticated mobile banking applications.

Though reforms in the form of the RBI instituting regulatory protocols for mobile banking
have been introduced, the regulator still has some way to go in terms of facilitating the mobile
ecosystem for growth with an integrated framework.

The first challenge is the lack of awareness about these services. People do not see mobile
phones as a natural medium for banking. Second, from the banks’ perspective, the RBI has several
rules in place relating to security issues. These include “know your customer” (KYC) and other
security-related norms.

Some of the impediments are:

 Low awareness.
 Low comfort level of users due to poor literacy levels, language barriers, etc.
 Limited ability of the existing distribution channels to be leveraged for banking
transactions.
 Concerns with respect to the security of mobile banking transactions.

This is some of the things that I believe will materialize:

56
 We will see a massive increase in the number of subscribers to mobile banking

functionality. The penetration of subscribers is already quite impressive, especially in

countries like Kenya and South Africa, but this performance will be replicated in other

countries as operators and banks get better at the products and increase investments in

marketing and services.

 As the numbers increase towards the end of the year, we will see an exponential increase

in transaction volumes, particularly phone to phone payments. The most important catalyst

for this will be the cash-in and cash-out facilities created. With an increase in subscribers,

increased value of cash held in values, transactions will follow.

 Most mainstream (relevant) banks would participate in mobile banking. At a stage, not too

far in the future all banks will realize that they will have to invest in this technology in

order to stay relevant and they will.

 Because mobile banking holds the promise of extremely secure authentication (actual

implementation of digital signatures), the emergence of dedicated identification devices.

These devices will hold your identity in digital format. Any transaction will be unlocked

by this device in conjunction with your own private key or even possibly biometrics. This

device will become the most important thing that you will have with you all the time.

(Some people may even be happy for the device to be implanted in them).

57
  With an exponential increase in the number of people with access to bank accounts, more

people will be able to receive money, have access to funding and this will lead to a

massive increased economic empowerment. This will directly lead to a better life for more.

7.3.5 NET BANKING:

Electronic Banking:
In simple words, we can say that the delivery of banking services to the customers by using the
electronic communication like internet is called electronic banking. Electronic banking is not only
the ATM facility but it provides all other banking services like payments, purchase and sale
without visiting physically to the banks.

Scope of Electronic Banking:

Today the customer demands the services of banks 24 hours where he lives even he is in the
airplane.

Now in this modern age the entire banking structure has been changed due to widespread internet
technology. Now all the business, like commerce, trade, import, export, purchase and sale of
goods is relying upon electronic banking. By using the advance electronic technology, the banking
services are fast and economical.

There is a saving time and saving of money in the use of E banking. If any country wants to work
58
in the world market, it will have to improve the banking services at international level because old
traditional banking is not acceptable in the changing global economy.

The online banking facility has been provided by the large number of commercial banks. On other
hand credit card facility is also available in the various commercial banks. Now every bank wants
to attract the customers and for this purpose the offers the latest facilities so it seems that no any
bank will survive in the market if he fails to provide update facilities.

ADVANTAGES OF ELECTRONIC BANKING:

Now it is also called on line or home banking electronic banking was stared with the use of
proprietary software. Following are the important advantages of electronic banking:

1. Paper Work Reduced:

The traditional procedure of banking is manual and paper based. Electronic banking is gradually
replacing the paper transactions in the banks which have reduced the paper work.

2. Easy Transactions:
Electronic banking has reduced the problems of the customers like writing cheques, filing taxes,
and transforming of cash. Now in ATM facility there is no need of cheques book.

3. Security:
Electronic banking provides the safe system of payment. Now transactions are made in the
accounts through internet.

4. Saving Of Time:
Electronic banking has saved the time and money of the customers and also the bank. Now burden
of work on bank employees has been also reduced who were hired at higher wages, so operating
cost was very high. Now by using electronic banking the number of employees has been reduced.

59
5. Reduction in Cost:
In case of manual banking, large number of employees were hired at higher wages, so operating
cost was very high. Now by using electronic banking the number of employees has been reduced.

6. Market Expanded:
Due to electronic banking, national international market of various goods and services has been
expanded. Now we can purchase and make payment in any place in the world.

7. Increase in Customers:
As the banking industry is expanding due the modern facilities, it is attracting more and more
customers. So, number of customers are increasing day by day.

8. Branches Reduced:
Now there is no need to open the branches on every place in the city because due to electronic
banking facilities, there is no rush of customers in the banks. Because there is no need to visit the
bank physically. So, heavy cost of opening the new branches has been reduced and facilities are
provided at low cost.

9. Checking of Account:
Every customer can check his balance of account sitting at home and makes the payments without
traveling. It saves his time and expenses.

10. Utility Bills Payment:

Bills, like telephone, gas, electricity and water can be easily paid to the concerned departments
without going to the bank physically. Even he is sitting in any other country, he can make the
payment.

11. Transferring of Money:

There is no need of writing the deposit slip cheques and drafts. By using the electronic banking
money can be transferred easily.

12. Credit Cards:

60
It is also very important facility for the customers that he can purchase the goods and can make
the payment by using the credit cards.

8.RESEARCH METHODOLOGY

Research Type – Descriptive:

Descriptive research, also known as statistical research, describes data and characteristics about
the population or phenomenon being studied. Descriptive research answers the questions who,
what, where, when, why and how.

Sample Frame:

Sampling frame is the source material or device from which a sample is drawn. It is a list of all
those within a population who can be sampled, and may include individuals, households or
institutions. For my research purpose, I have selected respondents who are e-banking users of
HDFC bank.

Research Tool:

Questionnaire consisting of closed ended questions. A form containing a set of questions will be
submitted to the respondents to gain statistical information. Unstructured question in which
(unlike in a multiple-choice question) possible answers are not suggested, and the respondent

61
chooses from the given options. The questionnaire also contains a section which has certain
factors which are related to the Likert scale.

Sample Size:

The sample size is 100.

Sample Technique:

Simple Random Technique

DATA SOURCE:

The Data collected is of the PRIMARY & SECONDARY type:

 The PRIMARY data was collected through the QUESTIONNAIRE study.

 The SECONDARY data was collected through the website, brochures of the HDFC bank,
and through research papers on E-banking.

EXPECTED CONTRIBUTION OF STUDY:

It will contribute significantly, in a very positive manner to E-banking users, non-e-banking users
& society as they will be aware of the benefits as well as various risks & threats of e-banking

BENEFICIARIES:

E-banking users, non-e-banking users & society at large are the beneficiaries as will be aware of
the PROS & CONS of E-banking.

8. DATA ANALYSIS

 ONE VARIABLE ANALYSIS OF QUESTIONNAIRE

 TWO VARIABLE ANALYSIS - CORRELATION TESTS
 HYPOTHESIS TESTING - CHISQUARE TEST

9.1 ONE VARIABLE ANALYSIS OF QUESTIONNAIRE:

(i) AGE GROUPS USING E-BANKING SERVICES

62
 AGE
70
60
50
40 AGE

30
20
10
0
20-40 40-60

(ii) THE USE OF E-BANKING SERVICES BASED ON THE GENDER

(iii)ANNUAL INCOME OF E-BANKING USERS

63
(iv) WHICH OF THE FOLLOWING ACOUNTS DO YOU HAVE WITH YOUR BANK?

3%

20%

Current A/C
Savings A/C
Both

77%

64
(v)HOW FREQUENTLY DO YOU VISIT YOUR BANK BRANCH PER MONTH?

65
(vi) WHAT IS THE MAIN REASON THAT YOU TYPICALLY VISIT YOUR BANK
BRANCH?

66
(vii) HOW OFTEN DO YOU USE E-BANKING SERVICES?

67
(viii) WHAT ARE THE REASONS FOR CHOOSING E-BANKING SERVICES?

REASONS FOR CHOOSING E-BANKING SERVICES

Convenience Saves Time 24 Hour Access

20%

33%

47%

68
(ix) FOR WHICH PURPOSE DO YOU USE E-BANKING SERVICES REGULARLY?

FOR WHICH PURPOSE DO YOU USE E-BANKING SERVICES REGULARLY?

Pay Bills Business Transactions Transfer Funds B/W A/C Check Balance

7%

23%

49%

21%

69
(x) ARE YOU AWARE OF THE FOLLOWING E-BANKING RISKS?

70
(xi) WHAT PRECAUTIONS DO YOU TAKE WHILE USING E-BANKING SERVICES?

71
(xii) HOW SATISFIED ARE YOU WITH E-BANKING SERVICES PROVIDED BY
HDFC?

Websit Secure Eas Feedbac Charge Guidanc Problem Statemen Polic

e d y k s e s t y

72
Strongl 0 0 0 0 3 4 3 3 2
y
Disagre
e

Disagre 1 3 1 5 7 8 7 6 6
e
Neutral 68 39 40 38 30 30 53 50 42

Agree 24 46 49 47 52 52 30 39 45

Strongl 7 12 10 10 8 6 7 2 5
y Agree

INTERPETATION:
 Website: e-banking websites are quick to access has a neutral view from customers.
 Secured-banking users agree that e-banking transactions are secured.
 Easy: majority of customers agree that using e-banking services is easy.
 Feedback: majority of e-banking users feel that they are given the required feedback
immediately.
 Charges-banking charges are reasonable, majority of them agree to it
 Guidance: All users agree that bank provides necessary guidance as & when needed.
 Problems: Problems are solved quickly & immediately has a neutral view from users
 Statements: Banks provide the users needed statements has a neutral view.
 Policy: Policy framed by banks protects the e-banking users is agreed by majority of users.

Overall, the e-banking users have either agreed or have a neutral view towards above stated
criteria’s degree of disagreement is comparatively very low& only infew categories, & the degree
of strongly disagree negligent& found in criteria’s like-banking charges are too high, problems
are not solved promptly, guidance to use E-banking services is not provided by bank, bank does
not provide statements, the policy framed does not protect customer interest etc.

73
 9.2 TWO VARIABLE ANALYSIS - CORRELATION TESTS

Pearson’s r Correlation:

In statistics, the Pearson product-moment correlation coefficient (sometimes referred to as

the PPMCC or PCC or Pearson's r) is a measure of the linear correlation between two
variables X and Y, giving a value between +1 and −1 inclusive, where 1 is total positive
correlation, 0 is no correlation, and −1 is total negative correlation. It is widely used in the

sciences as a measure of the degree of linear dependence between two variables. It was developed
by Karl Pearson from a related idea introduced by Francis Galton in the 1880s.

Formula for Correlation:

∑ x∑ y
∑ x y− n
r=
√¿¿¿

1] WHAT IS YOUR ANNUAL INCOME? Vs. NO. OF VISITS PER MONTH?

Table 1. No. of visits per month

1-3 3-8 8-12 12-15 15-20 Total
Times Times Times Times Times
What is <1.8L 9 1 1 0 0 11
your 1.8L - 5L 15 1 1 0 0 17
annual 5L – 8L 46 10 3 1 2 62
income? >8L 7 1 2 0 0 10
Total 77 13 7 1 2 100

Pearson’s r value= 0.108

INTERPRETATION:

Annual income and no.of visits per month of e-banking users is positively related, the
reason could be more income of individual more he wants to save, reinvest in business, go for
other investment options etc.
74
2] AGE Vs. NUMBER OF VISITS PER MONTH?

Table 2. No. of visits per month Total

1-3Times 3-8 Times 8-12 12-15 15-20

Times Times Times

20-40 48 7 4 1 0 60
Age
40-60 29 6 3 0 2 40

Total 77 13 7 1 2 100

Pearson’s r value= 0.119

INTERPRETATION:

Age & no. of visits per month are positively correlated, the reason could be, more the age
more the concern about, being updated with wise investment options, businesstransactions, saving
plans, contact with banks etc.

3] WHICH ACCOUNT DO YOU HAVE? Vs. NUMBER OF VISITS PER MONTH?

Table 3. No. of visits per month Total

1-3Times 3-8 Times 8-12 12-15 15-20
Times Times Times
Current a/c 15 4 1 0 0 20
Which a/c Savings a/c 3 0 0 0 0 3
do you Both 59 9 6 1 2 77
have? Total 77 13 7 1 2 100

Pearson’s r value= 0.66

75
 INTERPRETATION:

Type of account & no. of visits per month are positively correlated, the reason could be
majority of customers have both accounts i.e. current a/c as well as savings a/c & individual
current a/c holders are more, so the frequency of visit would be more.

4] MAIN REASON TO VISIT THE BANK? Vs. REASON TO CHOOSE E-BANKING

SERVICE?

Reason to choose e-banking services

Table 4. Convenience Saves time 24 Hour Access Total
Deposit Cash 3 15 7 25
Main reason Withdraw Cash 10 31 21 62
to visit the Balance Inquiry 0 1 4 5
bank Investment Options 7 0 1 8
Total 20 47 33 100

Pearson’s r value= -0.204

INTERPRETATION:

Reason to visit the bank & Reason to choose E-banking are very negatively related, reason could
be both are different in nature.

9.3 HYPOTHESIS TESTING - CHISQUARE TEST

Pearson's chi-squared test (χ2) is a statistical test applied to sets of categorical data to evaluate
how likely it is that any observed difference between the sets arose by chance. It is suitable for
76
unpaired data from large samples.It is the most widely used of many chi-squared tests -
statistical procedures whose results are evaluated by reference to the chi-squared distribution. Its
properties were first investigated by Karl Pearson in 1900.[2] In contexts where it is important to
improve a distinction between the test statistic and its distribution, names similar to Pearson χ-
squared test or statistic are used.

n
Χ 2 =∑ ¿ ¿ ¿ ¿
i=1

1] Ho: Gender & Reason to choose E-banking services are not related.
H1: Gender & Reason to choose E-banking services are related.

Table 5. Reason to choose e-banking services? Total

Convenience Saves Time 24 Hours
Access
Male 17 45 33 95
Gender Female 3 2 0 5
Total 20 47 33 100
Pearson Chi Square= X 2 =6.002

INTERPRETATION:

Chi square table value =5.9915 < chi square calculated value=6.002. Null hypothesis rejected.
Thus, Alternate hypothesis accepted.

2] Ho: Reason & Purpose to choose E-banking are not related.

H1: Reason & Purpose to choose E-banking are related.

Table 6. For which purpose do you use e-banking? Total

77
 Pay Bills Business Transfer Funds Check
Transactions B/W A/C Balance
Reason to Convenience 9 6 5 0 20
choose e- Saves Times 23 8 10 6 47
banking 24 Hours 17 7 8 1 33
services? Access
Total 49 21 23 7 100

Pearson Chi Square= 5.727

INTERPRETATION:

Chi square table value =12.5916 > chi square calculated value=5.727. Null hypothesis accepted.
Thus, Alternate hypothesis rejected.

3] H0: Reason to choose e-banking services & Reason to visit bank are not related.
H1: Reason to choose e-banking services & Reason to visit bank are related.

Table 7. Main reason to visit the bank? Total

To deposit Withdraw Balance Investment
cash cash inquiry options
Reason to Convenience 3 10 0 7 20
choose e- Saves Time 15 31 1 0 47
banking 24 Hours Access 7 21 4 1 33
services? Total 25 62 5 8 100

Pearson Chi Square=30.612

INTERPRETATION:

Chi square table value =12.5916 < chi square calculated value=30.612. Null hypothesis rejected.
Thus, Alternate hypothesis accepted.

4] Ho: Awareness of E-banking risks & precautions of E-banking are not related.
78
H1: Awareness of E-banking risks & precautions of E-banking are related.

Table 8. Which precautions do you take while using e-banking? Total

Antivirus Confidentiality Changing Destroying
of Personal Passwords/ Plastic
Data Pins Money
After
Expiry
Are you Hacking 5 4 16 9 34
aware of e- Virus 3 3 4 0 10
banking Malware & 3 3 9 0 15
risks? Trojans
Phishing 7 2 11 1 21
Identity 3 0 3 5 11
Theft
Frauds in 4 0 5 0 9
Plastic
Money
Total 25 12 48 15 100

Pearson Chi Square=27.784

INTERPRETATION:

Chi square table value =24.9956 < chi square calculated value=27.784. Null hypothesis rejected.
Thus, Alternate hypothesis accepted.

79
 10. FINDINGS / RESULTS

One –variable analysis of questionnaire:

1] Age group using e-banking services

It is observed that only two age groups ranging, from 20 to 40 and 40-60 years out of four are
users of e-banking services. From this we can conclude that even the preceding generation is
becoming more & more aware of benefits &convenience of e-banking.

2] The use of e-services based on gender

From the response of the individuals it was observed that the no. of male users is more than
female users with respect to the use of e-banking services. One of the reasons could be that men
are more into commercial use of the e-banking products than the females. It could also be possible
that there may be a limited use of the e-banking services in case of females.

4] Which of the following accounts do you have with your bank?

From the data collected majority of customers had both current and savings a/c at HDFC bank.
So, customers are connected with savings as well as carrying out business transactions smoothly
from one branch only.

5] How frequently do you visit your bank branch per month?

Majority of e-banking users visit the bank at the most 1-3 times a month. Majority of e-banking
users visit the bank at the most 1-3 times a month. This basically shows the potential of high
degree of development E-banking services & also, awareness regarding its ease, time saving and
convenience is now is wide spread.

6] What is the main reason that you typically visit your bank branch?

From the data collected most of the customers mainly visit the bank for withdrawal of cash.
80
10] How often do you use e-banking services?

Majority of e-banking users use e-banking services monthly. The reason may be for paying their
monthly bills like telephone bill, electricity bill mobile bill, online tax payment VAT, TDS, CST
on monthly basis, etc.

11] What are the reasons for choosing e-banking services?

From the e-banking users questioned majority of them choose e-banking services as it saves their
time. Time is what majority of us don’t have in our busy schedule. Second main reason is that is
has a24hour access so at any point of time we can update ourselves with whatever information we
want.

12] For which purpose do you use e-banking services regularly?

Majority of e-banking users use this service regularly for payment of their monthly bills, HDFC
offers monthly payment of mobile,telephone,electricity bill & online tax payment-VAT, TDS,
CST

13] Are you aware of the following e-banking risks?

Majority of e-banking users are aware of Hacking, and least is known to them of frauds of plastic
money i.e. ATM, CREDIT/DEBIT CARD. Other risks are well known to them.

14] What precautions do you take while using e-banking services?

As a precaution against e-banking risks majority of e-banking users periodically keep on changing
their PIN/PASSWORDS. And that is what the HDFC bank recommends & suggests every now &
then to its E-banking users.

15] Which antivirus software do you use?

Majority of e-banking users opt for quick heal antivirus software, maybe it provides more
protection. The second most chosen is Avast anti-virus software.

81
17] How satisfied are you with e-banking services provided by HDFC bank? [Likert scale]

Overall, the e-banking users have either agreed or have a neutral view towards above stated
criteria’s; degree of disagreement is comparatively very low& only in few categories, & the
degree of strongly disagree negligent& found in criteria’s like,E-banking charges are too high,
problems are not solved properly, guidance to use E-banking services is not provided by bank,
bank does not provide statements, the policy framed does not protect customer interest etc.

Two-variable analysis - correlation tests:

1] What is your annual income? Vs.Number of visits per month?

Here annual income and no.of visits per month of e-banking users is positively related, the reason
could be more income of individual more he wants to save, reinvest in business, go for other
investment options etc.

2] Age Vs. Number of visits per month?

Here age & no. of visits per month are positively correlated, the reason could be, more the age
more the concern about, being updated with wise investment options, business transactions,saving
plans, contact with banks etc.

3] Which account do you have? Vs. Number of visits per month?

Type of account & no. of visits per month are positively correlated, the reason could be majority
of customers have both accounts i.e. current a/c as well as savings a/c & individual current a/c
holders are more, so the frequency of visit would be more.

4] Main reason to visit the bank? Vs. Reason to choose e-banking services?

Reason to visit the bank & Reason to choose E-banking are very negatively related, reason could
be both are different in nature.

82
 Hypothesis findings can be tabulated as below:

Chi-
Chi Square
Square
Sr. No. Hypothesis Calculated < Or > Result Outcome
Table
Value
Value
Gender & Gender &
Reason to Reason to
choose E- choose E-
1. 5.9915 6.002 < Rejected
banking banking
services are services are
not related related
Reason & Reason &
Purpose to Purpose to
2. choose E- 12.5916 5.727 > Accepted choose E-
banking are banking are
not related not related
Reason to Reason to
choose e- choose e-
banking banking
services & services &
3. 12.596 30.612 < Rejected
Reason to Reason to
visit bank visit bank
are not are related
related
Awareness Awareness
of E- of E-
banking banking
risks & risks &
4. 24.9956 27.784 < Rejected
precautions precautions
of E- of E-
banking are banking are
not related related

11.CONCLUSIONS:
From the research conducted by us we derive several conclusions.

83
1. It is observed that AGE plays an important role with respect to the use of e-banking
services. It is found that the senior citizens are less comfortable with use of these services.
It is observed that only two age groups ranging, from 20 to 40 and 40-60 years out of four
are users of E-banking services. From this we can conclude that even the preceding
generation is becoming more & more aware of benefits & convenience of E- banking.
2. With respect to the literacy level it is observed that majority of customers have knowledge
of limited aspects of information technology.
3. None of customers were affected with e banking threats, which shows a positive sign
towards the development of these services.
4. From the study it is observed that customers are willing to use modern banking facilities
having given them adequate guidance and security measures by bank.
5. With respect to the frequency of visits it is observed that customers make frequent visit to
banks which can be minimized with optimum provision of e banking services.

12.RECOMMENDATIONS:

84
 From the response of the individuals it was observed that the number of male users is more
than female users with respect to the use of e-banking services. It could be possible that
there may be a limited use of the e-banking services in case of females. So the female
gender should be made more & more aware of E-banking benefits, ease, convenience,
precautions, risks, threats etc.
 E-banking users should be made more & more aware of E-banking risks & threats and
also how to safeguard themselves against the same by taking precautions & following
SECURITY GUIDELINES issued by their banks.
 E-banking users should NEVER TAKE THEIR BANKS FOR GRANTED for their
security.

13. REFERNCES:
85
 http://www.hdfcbank.com/

 https://www.chillr.in/partners.html

 http://www.hdfcbank.com/htdocs/common/MobileBanking/chillr-app/index.htm

 http://dazeinfo.com/

 http://offers.smartbuy.hdfcbank.com/

 http://articles.economictimes.indiatimes.com/2007-06-23/news/27675623_1_banking-software-

mobile-banking-global-banks

 http://www.banktech.com/management-strategies/bright-future-for-internet-banking-/d/d-

id/1290358?

 http://www.bis.org/list/bcbs/tid_29/index.htm

 http://www.cgap.org/publications/person/270

 http://www.math.cmu.edu/~florin/Conference_RoEduNet_2003/Proceedings.pdf

 http://www.academia.edu/723382/Measuring_the_quality_of_e-banking_portals

 http://www.imf.org/external/pubs/ft/wp/2004/wp0419.pdf

 http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1011112

 https://www.youtube.com/watch?v=2B_UW-RweSE

 https://www.khanacademy.org/math/probability/statistics-inferential/chi-square/v/pearson-s-chi-

square-test-goodness-of-fit

ANNEXURE
NAME: __________________________________________________

CONTACT NO: ______________________________________

1. AGE
86
[a] 15-20 ( ) [b] 20-40 ( ) [c] 40-60 ( ) [d] 60-above ( )

2.GENDER

[a] Male ( ) [b] Female ( )

3.ANNUAL INCOME

[a] less than 1,80,000 ( ) [b] 1,80,000-5,00,000 ( )

[c] 5,00,000-8,00,000 ( ) [d] 8, 00,000 & above ( )

4.WHICH OF THE FOLLOWING ACOUNTS DO YOU HAVE WITH YOUR BANK?

[a] Current a/c ( ) [b] Savings a/c ( ) [c] Both ( )

5.HOW FREQUENTLY DO YOU VISIT YOUR BANK BRANCH PER MONTH?

[a] 1-3 times ( ) [b] 3-8 times ( ) [c] 8-12 times ( )

[d] 12-15 times ( ) [e] 15-20 times ( )

6.WHAT IS THE MAIN REASON THAT YOU TYPICALLY VISIT YOUR BANK BRANCH?

(Please choose the single most important reason)

[a] To deposit cash ( ) [b] To withdraw cash ( ) [c] For balance inquiry ( )

[d] To get advice for investment options ( ) [e] Other ( )

7.DO YOU PREFER TRADITIONAL BANKING METHODS OVER MODERN BANKING

METHODS?

[a] Yes ( ) [b] No ( )

IfYES GO TOSECTION – A

If NOGO TO SECTION – B

SECTION – A

8. IF YES, WHAT IS THE BIGGEST ADVANTAGE OF TRADITIONAL BANKING METHODS?

[a] Builds healthy relationship with the bank ( )

[b] Surety of transaction ( )

[c] Immediate assistance from bank staff ()

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[d] Periodic review of the financial activities ( )

9.WHICH FACTOR CONCERNS YOU THE MOST TO AVOID THE USE OF E-BANKING
SERVICES?

[a] Security concerns ( )

[b] No direct dealing with bank staff ( )

[c] Fear of causing mistakes ( )

[d] Concern over incomplete transaction ( )

[e] Not comfortable with internet/computers ( )

[f] Usage of service is complicated ( )

[g] Failure of quick updates on websites ( )

SECTION – B

10.HOW OFTEN DO YOU USE E-BANKING SERVICES?

[a] Daily ( )

[b] Weekly ()

[c] Monthly ( )

11.WHAT ARE THE REASONS FOR CHOOSING E-BANKING SERVICES? (Any one)

[a] Convenience ( )

[b] Saves time ( )

[c] 24 hours access to a/c ( )

12.FOR WHICH PURPOSE DO YOU USE E-BANKING SERVICES REGULARLY?

(Tick the most important)

[a] Pay bills ( )

[b] Business transactions ( )

[c] Withdrawals ( )

[d] Transfer funds between A/c’s ( )

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 [e] Check balances of your a/c ( )

13.ARE YOU AWARE OF THE FOLLOWING E-BANKING RISKS? (Tick all that apply)

[a] Hacking ( ) [b] Virus ( ) [c] Malware n Trojans ( )

[d] Phishing ( )[e] Identity theft ( ) [f] Frauds in plastic money ( )

14.WHAT PRECAUTIONS DO YOU TAKE WHILE USING E-BANKING SERVICES?

[a] Firewall ( )

[b] Antivirus ( )

[c] Confidentiality of personal data ( )

[d] Periodic change of Pin number /passwords ( )

[e] Destroying credit/debit cards after expiry ( )

15.WHICH ANTIVIRUS SOFTWARE DO YOU USE?

[a] MacAfee ( ) [b] Quick heal ( ) [c] Avast ( )

[d] AVG ( ) [e] Kaspersky ( ) [f]Others ( )

16.HAVE YOU BEEN VICTIM OF E-BANKING FRAUDS THROUGH HDFC BANK?

[a] Yes ( ) [b] No ( )

17.HOW SATISFIED ARE YOU WITH E-BANKING SERVICES PROVIDED BY HDFC BANK?

Please “Tick ( )” the Level of Agreement you have towards the following criteria’s:

STRONGLY DISAGREE NETURAL AGREE STRONLY

DISAGREE AGREE
SCALE [1] [2] [3] [4] [5]
The e-banking
website is quick
to access
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 The e-banking
website is quick
to access
The e-banking
transactions are
quick &easy
The bank
provides
immediate
transaction
feedback
The e-banking
charges are
reasonable
The bank
provides
guidance for e-
banking
operations
Problems in e-
banking are
solved promptly
& satisfactorily
The bank
provides periodic
statements with
necessary details
The privacy
policy framed by
banks with
respect to e-
banking protects
your interest also.

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