Summer Training Report

Leveraging Digital Channels for Enhancing Customer

Experience and Analysis of Micro-market at Karnal

Conducted at:

Submitted in partial fulfillment of the requirement for the award of the degree of

Master of Business Administration

(Session 2020-2022)

Submitted By: Under the Guidance of:

Jasmeet Singh Prof. B.S. Bodla

MBA 3rd Semester

UNIVERSITY SCHOOL OF MANAGEMENT

KURUKSHETRA UNIVERSITY, KURUKSHETRA

 HARYANA- 136119 (INDIA)

Preface

The project report consists of detailed study of ‘Leveraging Digital Channels for Enhancing
Customer Experience and Analysis of Micro market’. A sincere effort has been made to
analyze working pattern of the bank in micro marketing.

In the present scenario micro marketing in banking sectors play a key role in developing best
strategies and also for developing new customers. Micro marketing includes various tools
which are used by the banking sector to target new customers and boost the sale of their
banks’ product and services. Moreover, through digital channels they tried to enhance their
customer experience.

The report further provides detailed information about digital banking sector with the help of
micro marketing tool in which it states how banks are continuously doing efforts to switch
customers from visiting branch to online platforms. In the millennium of these activities
would play a crucial role in the overall development of the bank.

I hope that the research work made by me will be of great help to get the comprehensive
knowledge of the banking sector working.
 Acknowledgement

I would like to express my special thanks of gratitude to Prof. B.S. Bodla who gave me the
opportunity to do this wonderful project on the topic “Leveraging Digital Channels for
Enhancing Customer Experience and Analysis of Micro-market at Karnal”.

This project report could not have been completed without the guidance & support of Prof.
B.S. Bodla (Project Mentor).

Once again, I express my gratitude to ICICI Bank Limited for their kind Co-operation.

Signature

Jasleen Kaur
 Declaration

I Jasmeet Singh, Roll No. 4070016 from MBA (Finance) 3rd Semester of ‘Kurukshetra
University, Kurukshetra’ hereby declare that the MRP / Internship Report entitled
“Leveraging Digital Channels for Enhancing Customer Experience and Analysis of
Micro-market at Karnal” is an original work and the same has not been submitted to any
other Institute for the award of any other degree.

A presentation of the MRP / Internship Report was made on ____________________ and the
suggestions as approved by the faculty were duly incorporated.

Signature of the Student Date:

Jasleen Kaur
 Guide Certificate

It is hereby certified that the MRP / Internship Report submitted in partial fulfillment of
MBA (Finance) III Semester of Kurukshetra University, Kurukshetra by Jasmeet Singh, Roll
No. 4070016 has been completed under my guidance and is Satisfactory.

Signature of the Faculty Mentor Date:

Prof. B.S. Bodla

 Organization Certificate

Executive Summary

Banking Sector is one of the most important sectors for any country or economy. Government
of India took various steps post-independence for a strong banking sector in India like
Nationalization of banks in 1969, opening banking sector for foreign entities in 1991
economic reforms.

Today, Banking sector has largely became digitalized. With the digitalization in the banking
sector, it has offered the customers to use various types of services by sitting at home and not
even restricted to any time hours. With the digital payment modes or through an online
banking system one can send money from one account to any other account of any bank
branch from anywhere and anytime via UPI/IMPS/RTGS/NEFT. Due to digitalization, now
the customers don’t need to visit branch regularly and carry loads of cash for their regular
banking needs. Customers have the proper record of their spending; they can plan their
budget accordingly. Discounts and cashbacks are also provided to customers by their banks to
promote digital banking.

ICICI bank Limited is no far away in this quest for technology to get greater satisfaction of
their customers towards their banking needs. It is one of the strongest banks of India. This
bank is known for its customer support. Customers of ICICI Bank Limited are getting better
cybersecurity, user friendly mobile application and website, instant money transfer facilities.
ICICI Bank is still working with other equivalent peers to provide greater services to its
customers.

Due to advent of Covid pandemic in March 2020, government of India declared lockdown in
all over the country, at that time digital was the only medium to make payments. NPA’s
(Non-Performing Assets) became a major challenge in front of banks. Before IBC
(Insolvency and Bankruptcy Code 2016), banks didn’t have much powers to deal willful
defaulters. To overcome this issue, in 2016, government of India announced IBC law to
speed-up the recovery of the debt given by banks.

On the other side, Micromarketing, now-a-days, plays vital role in the digitalized world.
Especially after Covid pandemic, banks increasingly started focusing towards their
Micro-marketing strategies. Banking sector mainly use this tool to identify new customers.
Basically, banks try to target the peripheral area of the metropolitan cities to find new
customers as they have good potential due to Trickle-down effect.

Recently, Cryptocurrencies like Bitcoin has came to become a serious challenge for the
monetary authorities (Central Banks) and the governments of India and the World.
Governments are in process to regulate/ban this kind of disruptive technologies that can
become threat to financial stability in the world in the future.

Government of India soon going to release Digital Rupee. It may also be based on the same
technology (Blockchain Technology) as Bitcoin, Ethereum like currencies are traded.
 CONTENTS

S.NO. TOPIC PAGE NO.

CHAPTER-I INDUSTRY PROFILE 1

CHAPTER-II COMPANY PROFILE 6

CHAPTER-III RESEARCH METHODOLOGY 11

3.1 OBJECTIVES OF THE STUDY 11

3.2 NATURE OF THE STUDY 11

3.3 SAMPLING PROCEDURE & DESIGN 12

3.4 METHOD OF DATA COLLECTION 12

3.5 TECHNIQUES OF DATA ANALYSIS 13

3.6 SCOPE OF THE STUDY 13

3.7 SIGNIFICANCE OF THE STUDY 13

3.8 LIMITATIONS OF THE STUDY 14

CHAPTER-IV STUDY OF TOPIC 15

CHAPTER-V ANALYSIS AND INTERPRETATION 32

FINDINGS, CONCLUSION & POLICY

CHAPTER-VI IMPLICATIONS 39

CHAPTER-VII SUGGESTIONS 42

CHAPTER-VIII BIBLIOGRAPHY 43

CHAPTER-IX APPENDIX 45
 CHAPTER- I: INDUSTRY PROFILE

Introduction

According to Banking Regulation Act, 1949- Banking means the accepting, for the purpose
of lending or investment, of deposits of money from the public, repayable on demand or
otherwise, and withdrawal by cheque, draft, order or otherwise.

Bank is such an institution which creates money by money only. According to Sir John
Pagette defined, “Bank is such a financial in- situation which collects money in current,
savings or fixed deposit account; collects cheques as deposits and pays money from the
depositors account through cheques.”

Origin of Banking

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

Banking System in India

Without a sound and effective banking system in India it cannot have a healthy economy. The
banking system of India should not only be hassle free but it should be able to meet new
challenges posed by the technology and any other external and internal factors. Forth past
three decades India's banking system has several outstanding achievements to its credit. The
most striking is its extensive reach. It is no longer confined to only metropolitans or
cosmopolitans in India. In fact, Indian banking system has reached even to the remote corners
of the country.

History of Banking in India

Banking in India has its origin as early or Vedic period. It is believed that the transitions from
many lending to banking must have occurred even before Manu, the great Hindu furriest,
1
who has devoted a section of his work to deposit and advances and laid down rules relating to
the rate of interest. During the mogul period, the indigenous banker played a very important
role in lending money and financing foreign trade and commerce. During the days of the East
India Company, it was the turn of agency house to carry on the banking business. The
General Bank of India was the first joint stock bank to be established in the year 1786. The
other which followed was the Bank of Hindustan and Bengal Bank. The Bank of Hindustan is
reported to have continued till 1906. While other two failed in the meantime. In the first half
of the 19th century the East India Company established their banks, The bank of Bengal in
1809, the Bank of Bombay in 1840 and the Bank of Bombay in1843. These three banks also
known as the Presidency banks were the independent units and functioned well. These three
banks were amalgamated in 1920and new bank, the Imperial Bank of India was established
on 27th January, 1921.With the passing of the State Bank of India Act in 1955 the
undertaking of the Imperial Bank of India was taken over by the newly constituted SBI. The
Reserve Bank of India (RBI) which is the Central bank was established in April, 1935 by
passing Reserve bank of India act 1935. The Central office of RBI is in Mumbai and it
controls all the other banks in the country. In the wake of Swadeshi Movement, number of
banks with the Indian management were established in the country namely, Punjab National
Bank Ltd., Bank of India Ltd., Bank of Baroda Ltd., Canara Bank. Ltd. on 19thJuly 1969, 14
major banks of the country we renationalized and on 15thApril 1980, 6 more commercial
private sector banks were take-over by the government. The first bank in India, though
conservative, was established in 1786. From 1786 till today, the journey of Indian Banking
System can be segregated into three distinct phases.

The banking sector development can be divided into three phases:

Phase I: The Early Phase which lasted from 1770 to 1969

Phase II: The Nationalisation Phase which lasted from 1969 to 1991

Phase III: The Liberalisation or the Banking Sector Reforms Phase which began in 1991 and
continues to flourish till date.

⮚ Pre-Independence Period (1786-1947)

The first bank of India was the “Bank of Hindustan”, established in 1770 and located in the
then Indian capital, Calcutta. However, this bank failed to work and ceased operations in
1832. During the Pre-Independence period over 600 banks had been registered in the country,

2
but only a few managed to survive. Following the path of Bank of Hindustan, various other
banks were established in India. They were:

● The General Bank of India (1786-1791)

● Oudh Commercial Bank (1881-1958)
● Bank of Bengal (1809)
● Bank of Bombay (1840)
● Bank of Madras (1843)

During the British rule in India, The East India Company had established three banks: Bank
of Bengal, Bank of Bombay and Bank of Madras and called them the Presidential Banks.
These three banks were later merged into one single bank in 1921, which was called the
“Imperial Bank of India.” The Imperial Bank of India was later nationalised in 1955 and was
named The State Bank of India, which is currently the largest public sector Bank.

Pre-Independence Banks in India

Bank Name Year of Establishment
Allahabad Bank 1865
Punjab National Bank 1894
Bank of India 1906
Central Bank of India 1911
Canara Bank 1906
Bank of Baroda 1908

⮚ Post-Independence Period (1947-1991)

At the time when India got independence, all the major banks of the country were led
privately which was a cause of concern as the people belonging to rural areas were still
dependent on money lenders for financial assistance. With an aim to solve this problem, the
then Government decided to nationalise the Banks. These banks were nationalised under the
Banking Regulation Act, 1949. Whereas, the Reserve Bank of India was nationalised in 1949.
Following it was the formation of State Bank of India in 1955 and the other 14 banks were
nationalised between the time duration of 1969 to 1991. These were the banks whose national
deposits were more than 50 crores.

3
Given below is the list of these 14 Banks nationalised in 1969:

1. Allahabad Bank
2. Bank of India
3. Bank of Baroda
4. Bank of Maharashtra
5. Central Bank of India
6. Canara Bank
7. Dena Bank
8. Indian Overseas Bank
9. Indian Bank
10. Punjab National Bank
11. Syndicate Bank
12. Union Bank of India
13. United Bank
14. UCO Bank

In the year 1980, another 6 banks were nationalised, taking the number to 20 banks. These
banks included:

15. Andhra Bank

16. Corporation Bank
17. New Bank of India
18. Oriental Bank of Comm.
19. Punjab & Sind Bank
20. Vijaya Bank

Apart from the above mentioned 20 banks, there were seven subsidiaries of SBI which were
nationalised in 1959:

21. State Bank of Patiala

22. State Bank of Hyderabad
23. State Bank of Bikaner & Jaipur
24. State Bank of Mysore
25. State Bank of Travancore
26. State Bank of Saurashtra
27. State Bank of Indore

4
All these banks were later merged with the State Bank of India in 2017, except for the State
Bank of Saurashtra, which merged in 2008 and State Bank of Indore, which merged in 2010.

⮚ Liberalisation Period (1991-Till date)

Once the banks were established in the country, regular monitoring and regulations need to be
followed to continue the profits provided by the banking sector. The last phase or the ongoing
phase of the banking sector development plays a hugely significant role. To provide stability
and profitability to the Nationalised Public sector Banks, the Government decided to set up a
committee under the leadership of Shri. M Narasimhan to manage the various reforms in the
Indian banking industry. The biggest development was the introduction of Private sector
banks in India. RBI gave license to 10 Private sector banks to establish themselves in the
country. These banks included:

28. Global Trust Bank

29. ICICI Bank
30. HDFC Bank
31. Axis Bank
32. Bank of Punjab
33. IndusInd Bank
34. Centurion Bank
35. IDBI Bank
36. Times Bank
37. Development Credit Bank

The other measures taken include:

● Setting up of branches of the various Foreign Banks in India

● No more nationalisation of Banks could be done
● The committee announced that RBI and Government would treat both public and
private sector banks equally
● Any Foreign Bank could start joint ventures with Indian Banks
● Payments banks were introduced with the development in the field of banking and
technology
● Small Finance Banks were allowed to set their branches across India
● A major part of Indian banking moved online with internet banking and apps
available for fund transfer.

5
 CHAPTER – II: COMPANY PROFILE

FORMERLY Industrial Credit and Investment Corporation

of India
INDUSTRY Financial services

FOUNDED 5 January 1955; 66 years ago

HEADQUARTERS Vadodara, Gujarat , (Registered Office)

Bandra Kurla Complex, Mumbai (Corporate
Office)
AREA SERVED Worldwide
KEY PEOPLE ❖ Girish Chandra Chaturvedi
(Chairperson)
❖ Sandeep Bakhshi (MD & CEO)

PRODUCTS Banking, commodities, credit cards, equities

trading, insurance, investment management,
mortgage loans, mutual funds, private
equity, wealth management, asset
management
SUBSIDIARIES ICICI Prudential
ICICI Lombard
ICICI Securities
ICICI Direct

Introduction

ICICI Bank Limited is an Indian multinational bank and financial services company with its
corporate office in Mumbai, Maharashtra. It offers a wide range of banking products and
financial services for corporate and retail customers through a variety of delivery channels
and specialized subsidiaries in the areas of investment banking, life, non-life insurance,
venture capital and asset management. The bank has a network of 5,275 branches and 15,589
ATMs across India and has a presence in 17 countries.

6
The bank has subsidiaries in the United Kingdom and Canada; branches in United States,
Singapore, Bahrain, Hong Kong, Qatar, Oman, Dubai International Finance Centre, China
and South Africa; as well as representative offices in United Arab Emirates, Bangladesh,
Malaysia and Indonesia. The company's UK subsidiary has also established branches in
Belgium and Germany.

History of ICICI Bank

ICICI was formed in 1955 at the initiative of the World Bank, the Government of India and
representatives of Indian industry. The principal objective was to create a development
financial institution for providing medium-term and long-term project financing to Indian
businesses. Until the late 1980s, ICICI primarily focused its activities on project finance,
providing long-term funds to a variety of industrial projects. With the liberalization of the
financial sector in India in the 1990s, ICICI transformed its business from a development
financial institution offering only project finance to a diversified financial services provider
that, along with its subsidiaries and other group companies, offered a wide variety of products
and services. As India’s economy became more market-oriented and integrated with the
world economy, ICICI capitalized on the new opportunities to provide a wider range of
financial products and services to a broader spectrum of clients. ICICI Bank was incorporated
in 1994 as a part of the ICICI group. In 1999, ICICI became the first Indian company and the
first bank or financial institution from non-Japan Asia to be listed on the New York Stock
Exchange.

The issue of universal banking, which in the Indian context meant conversion of long-term
lending institutions such as ICICI into commercial banks, had been discussed at length in the
late 1990s. Conversion into a bank offered ICICI the ability to accept low-cost demand
deposits and offer a wider range of products and services, and greater opportunities for
earning non-fund-based income in the form of banking fees and commissions. After
consideration of various corporate structuring alternatives in the context of the emerging
competitive scenario in the Indian banking industry, and the move towards universal banking,
the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with
ICICI Bank would be the optimal strategic alternative for both entities, and would create the
optimal legal structure for ICICI group's universal banking strategy. The merger would
enhance value for ICICI shareholders through the merged entity's access to low-cost deposits,
greater opportunities for earning fee-based income and the ability to participate in the

7
payments system and provide transaction-banking services. The merger would enhance value
for ICICI Bank shareholders through a large capital base and scale of operations, seamless
access to ICICI's strong corporate relationships built up over five decades, entry into new
business segments, higher market share in various business segments, particularly fee-based
services, and access to the vast talent pool of ICICI and its subsidiaries.

In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of
ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial
Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was
approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of
Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and
the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's
financing and banking operations, both wholesale and retail, were integrated in a single
entity.

Subsidiaries of ICICI Bank

Domestic:
● ICICI Prudential Life Insurance Company Limited
● ICICI Lombard General Insurance Company Limited
● ICICI Prudential Asset Management Company Limited
● ICICI Prudential Trust Limited
● ICICI Prudential Pension Funds Management Company Limited
● ICICI Direct
● ICICI Securities Limited
● ICICI Securities Primary Dealership Limited
● ICICI Venture Funds Management Company Limited
● ICICI Home Finance Company Limited

International:
● ICICI Bank Canada
● ICICI Bank UK PLC
● ICICI Bank USA
● ICICI Bank Germany

8
Role in Indian Financial Infrastructure
ICICI bank has contributed to the setting up of a number of Indian institutions to establish
financial infrastructure in the country over the years:

● The National Stock Exchange was promoted by India's leading financial institutions
(including ICICI Ltd.) in 1992 on behalf of the Government of India with the
objective of establishing a nationwide trading facility for equities, debt instruments
and hybrids, by ensuring equal access to investors all over the country through an
appropriate communication network.
● In 1987, ICICI Ltd along with UTI set up CRISIL as India's first professional credit
rating agency.
● NCDEX (National Commodities and Derivatives Exchange) was set up in 2003, by
ICICI Bank Ltd, LIC, NABARD, NSE, Canara Bank, CRISIL, Goldman Sachs,
Indian Farmers Fertilizer Cooperative Limited (IFFCO) and Punjab National Bank.
● Entrepreneurship Development Institute of India (EDII), was set up in 1983, by the
erstwhile apex financial institutions like IDBI, ICICI, IFCI and SBI with the support
of the Government of Gujarat as a national resource organization committed to
entrepreneurship development, education, training and research.
● Eastern Development Finance Corporation (NEDFI) was promoted by national level
financial institutions like ICICI Ltd in 1995 at Guwahati, Assam for the development
of industries, infrastructure, animal husbandry, Agri-horticulture plantation, medicinal
plants, sericulture, aquaculture, poultry and dairy in the North Eastern states of India.
● Following the enactment of the Securitization Act in 2002, ICICI Bank, together with
other institutions, set up Asset Reconstruction Company India Limited (ARCIL) in
2003. ARCIL was established to acquire non-performing assets (NPAs) from financial
institutions and banks with a view to enhance the management of these assets and
help in the maximization of recovery.
● ICICI Bank has helped in setting up Credit Information Bureau of India Limited
(CIBIL), India's first national credit bureau in 2000. CIBIL provides a repository of
information (which contains the credit history of commercial and consumer
borrowers) to its members in the form of credit information reports.

9
Board of Directors

Board Members:

MR. GIRISH CHANDRA CHATURVEDI MR. HARI L. MUNDRA

Non-Executive(part-time) Chairman Independent Director
MR. LALIT KUMAR CHANDEL MR. UDAY CHITALE
Government Nominee Director Independent Director
MR. S. MADHAVAN MR. ANUP BAGCHI
Independent Director Executive Director
MS. NEELAM DHAWAN MR. SANDEEP BAKHSHI
Independent Director Managing Director & CEO
MR. RADHAKRISHNAN NAIR MS. VISHAKHA MULYE
Independent Director Executive Director
MS. RAMA BIJAPURKAR MR. B. SRIRAM
Independent Director Independent Director

10
 CHAPTER- III: RESEARCH METHODOLOGY

Meaning of Research Methodology

Research methodology is the specific procedures or techniques used to identify, select,

process, and analyze information about a topic. In a research paper, the methodology section
allows the reader to critically evaluate a study's overall validity and reliability. Research
methodology is a systematic way to solve a problem. It is a science of studying how research
is to be carried out.

Research methodology used for this analysis is convenience sampling method. A

convenience sample is a type of non-probability sampling method where the sample is taken
from a group of people easy to contact or to reach. The data collected was Primary Data by
myself and some of the data used was secondary data from various credential websites.

3.1 Objectives of the Study

⮚ To study the developments in Banking sector of India in Pre/Post-Independence

period.
⮚ To study the developments in ICICI Bank Limited, since its formation.
⮚ To study the initiatives launched by Public/Private Sector banks in India to enhance
customer experience.
⮚ To study the Micro-marketing Strategies adopted by ICICI Bank and some other
banks in India.
⮚ To study the issues, challenges and impacts seen by Banking sector in India since the
emergence of Covid.

3.2 Nature of the Study

Being exploratory research, it is based on primary and secondary data. Primary data includes
direct questionnaire randomly. On the other side, secondary data was taken from journals,
articles, newspapers, magazines, web browsing etc.

11
Considering the objectives of the study, descriptive type research design is adopted to have
more accuracy and rigorous analysis of research study. The accessible secondary data is
intensively used for research study.

3.3 Sampling Procedure & Design

Here the researcher follows the simple random sampling for conducting survey and in detail
sampling procedure is convenience sampling. This procedure is adopted based on the
convenience of the researcher time and money constraints. Respondents have been selected
from different wings of the organization.

120 people (samples) were selected to conduct research.

3.4 Method of Data Collection

To determine the appropriate data for research, mainly two kinds of data was collected
namely primary and secondary data as explained below:

Primary Data

Primary data are those, which were collected afresh and for the first time and thus happen to
be original in character. The primary data has been collected through the Questionnaire. The
Questionnaire has been properly prepared in order to cover all the Information required for
the study. The primary data has been obtained by interaction with the officials and staff in the
division in the organization and also obtained through the Questionnaire distributed to the
persons in different departments in that particular division.

Secondary Data

The secondary data has been collected through by the Manuals and also from old records
available in the organization. Some other data also collected from the website's earlier
researches and published books.

12
3.5 Techniques of Data Analysis

In the research, various percentages were defined and the analysis are presented pictorially
via Tables and Pie charts.

3.6 Scope of the Study

● In the study, an attempt has been made to analyse the customer satisfaction towards
digital banking. The study tries to understand the level of satisfaction among the
customers at banking sector.
● Digital banking channels were analysed on the basis of various factors such as money
transfer speed, money transfer methods, money transfer charges, user friendly
experience, consistent working of websites and mobile apps, cybersecurity and data
protection etc.
● This study describes the functioning of private sector and public sector banks.
● This study gives some suggestions for improving the Micro-marketing strategies of
banks.

3.7 Significance of the Study

● The study will help banks to know the customer’s point of view towards their services
and the user experience of their digital banking services
● The study will help the banks to improve its customer service delivery
● The study will help the banks to introduce competitive and better technology products
to customers
● The study will help banks to know about the customer requirements and expectations
with their bank in which they have their account
● The study will help banks to know the issues in their money transfer facilities. Banks
can improve their technology by taking feedback from this report
● The study will help the banks to know about the best thing the customers like about
them.

13
 ● The study will help banks to work more towards Micro-marketing as due to
trickle-down effect the periphery areas of big cities and towns getting regular
remittances. This could be better to generate more business and revenue.

3.8 Limitations of the Study

● The research was done in a limited area only

● The study represents Karnal region only whereas the company (ICICI Bank Limited)
operates not only in that region but in whole India and the World.
● Although there are numerous consumers in the state, but sample size is limited to 120.
● Some people may have rendered wrong information about the questions either
because of lack of knowledge or due to some personal reasons.
● The Study is based on data provided by the company statements, the limitations of
company's employees remaining are equally applicable.

14
 CHAPTER- IV: STUDY OF TOPIC

Adoption of Digital Banking Channels in an Emerging Economy in India

In the last few decades, huge investments have been made by banks in technology to reduce
their cost and improve customer’s experience. Banks are offering digital banking channels
such as ATM, Internet banking, mobile banking, digital banking kiosks to deliver best quality
services to customers with the expectation of increasing profitability and reducing operating
cost. It is observed that the bank’s costs reduce with the shift of a major chunk of customers
to modern banking channels. However, the expected reduction in operating expenses has not
been achieved yet by the banks as they are still struggling to move customers towards digital
banking channels. The situation is much critical for emerging countries such as India where
only 16% of the rural population use the Internet for making digital payments.

According to the report by Gartner, IT expenditure by securities and banking firms in India
has reached $9.1 billion with a growth of 11.7%. Further, the total IT expenditure is expected
to reach $11 billion in 2020. However, the return on investment of Indian banks in
technology is just 12% of US banks due to the low rate of digital banking acceptance. At the
same time, the cash transactions cost is 1.7% of Indian GDP which puts a huge burden on the
economy. The Government of India initiated the ‘Digital India’ campaign in 2015 to
empower people digitally. The success of the ‘Digital India’ campaign is apparent from the
fact that more than a billion Indian citizens have a digital identity with 560 million Internet
connections.

The purpose of digitization is to bring disconnected rural remote regions into the formal
financial sector through electronic banking channels which in turn will contribute to
economic development. Digital banking mediums help to connect the underserved masses
with mainstream banking system by offering various innovative banking services. The
modern mobile banking apps also enable customers to use non-financial services. However,
due to the lack of awareness and knowledge, these services have not been fully utilized by
customers. Certainly, there is a dire need to positively influence customers about the usability
of modern banking channels and persuade them to migrate to digital channels.

15
Digital banking is much more than an innovative banking channel and a convincing
marketing strategy. The term digitization has brought a significant change in how banks
understand and satisfy its customers’ needs. In India, efforts have been made by the banks to
persuade customers to adopt digital banking channels such as intensive digital marketing
campaigns to educate customers about modern channels, but still, the adoption rate is not as
expected. Since bank branches provide an opportunity to the bank to communicate and
persuade customers personally by demonstrating the proposed benefits of adopting modern
banking channels, the present study exhibits the need for Indian banks to focus upon
implementing serious in-branch effort. It is the high time for banks to identify cost-effective
in-branch strategies to connect the masses with digital banking channels, though this area is

16
under-researched. In this regard, the present study attempts to evaluate the bank executives’
perceptions regarding the effectiveness of in-branch efforts of banks to persuade the
customers to adopt and use digital banking channels.

Status of Digital Banking Adoption in India

Technology has transformed the banking industry all over the world. In India, almost all
banks offer digital banking services to their customers as a strategic tool to survive in the
market. With the growth of investment in technology by financial service providers in India,
it becomes highly important to understand the perceptions of customers and designing the
strategies accordingly.

Post demonetization (invalidation of large currency notes) Government of India has launched
various efforts to migrate customers to digital payment channels from cash (e.g., e-Wallets,
Unified Payment Interface, Aadhaar-enabled payment system, etc.). As per the report of
Reserve Bank of India (RBI) on digital transactions, the total volume of non-cash transaction
in India has reached 1.9 billion in 2016–2017. Despite this rapid growth, the largest public
sector bank (SBI) in India has reported only 5.86% mobile banking users and 9.69% of
Internet banking users in its recent annual report 2016–17. Thus, only informing or spreading
awareness would not shift customers towards digital banking but requires changes in the
implementation process.

The point of utmost importance is that in India the challenge is not just migrating customers
from traditional banking channels to digital channels but also to connect the unbanked masses
with the mainstream banking system using digital finance. But the fact which differentiates
the developing and emerging economies from developed economies is the adoption and use
of digital banking channels from the consumer end. Apparently, in high-income economies,
91% of adults use digital payment method, while in developing economies just 44% of adults
make digital payment through their account.

India is an emerging economy wherewith the launch of digitization campaign (2015) and
implementation of demonetization (2016) the significant chunk of the population is shifted
quickly from traditional banking channels to digital channels. However, education, lack of
infrastructure and strong Internet connectivity are the issues which hinder the adoption of
digital banking channel in India. The lower than anticipated regular usage of digital mediums
for banking transactions calls for more in-depth and critical research on formulating the

17
strategies and practices to migrate customers to technology-enabled banking channels based
on the factors that matter to customers the most.

Top Private Sector Banks in India

● HDFC Bank

HDFC Bank is the Largest Private Banks in India by Total sales during the Year. It 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. HDFC bank is the top Constituents in Bank Nifty.

● ICICI Bank

ICICI Bank Limited is an Indian multinational bank and financial services company with its
corporate office in Mumbai, Maharashtra. It offers a wide range of banking products and
financial services for corporate and retail customers through a variety of delivery channels
and specialized subsidiaries in the areas of investment banking, life, non-life insurance,
venture capital and asset management. The bank has a network of 5,275 branches and 15,589
ATMs across India and has a presence in 17 countries.

● Axis Bank Limited

18
Axis Bank is the third-largest Private Banks in India and also the best private bank in India.
The Bank offers the entire spectrum of financial services to customer segments covering
Large and Mid-Corporates, MSME, Agriculture, and Retail Businesses. The Bank has a large
footprint of 4,050 domestic branches (including extension counters) with 11,801 ATMs &
4,917 cash recyclers spread across the country as on 31st March 2019. Axis Bank is one of
the first new-generation private sector banks to have begun operations in 1994.

● Kotak Mahindra Bank Limited

In February 2003, Kotak Mahindra Finance Ltd. (KMFL), the Group’s flagship company,
received a banking license from the Reserve Bank of India (RBI), becoming the first
non-banking finance company in India to convert into a bank – Kotak Mahindra Bank Ltd.
Kotak is the Fourth-Largest Private Banks in India. It is Among the Top 5 private bank in
India.

● IndusInd Bank Limited

IndusInd Bank is ranked 19th amongst the Top 50 Most Valuable Indian Brands 2014 as per
the BrandZ Top 50 rankings powered by the WPP and Millward Brown. Also, the Bank has
bagged the 39th rank in The Economic Times and Interbrand Best Indian Brands Study –
2014. IndusInd is the Fifth Largest Private Banks in India.

19
 ● AU Small Finance Bank

AU is a dream that was started 25 years ago by Mr. Sanjay Agarwal, a merit holder Chartered
Accountant and a first-generation entrepreneur.
Founded in Jaipur in 1996 as Au Financiers, a non-deposit taking Non-Banking Finance
Company (NBFC), it effectively worked on funding economic growth, especially for the
under-served and un-served low & middle-class individuals. For over two decades we
provided secured funding to customers largely in Vehicle Loan, Business Loan and Housing
Loan segments while organically spreading our geographical presence.

Top Public Sector Banks in India

● State Bank of India (SBI)

Having 23% of shares of the total market assets in India, this bank is the largest public sector
bank of India and tops the list of best banks in India. It also holds 1/4th of the total loans and
deposits in the current financial market. It provides a wide range of banking products to its
customers.

● Punjab National Bank

20
Punjab National Bank, after the recent merger with the Oriental Bank of Commerce and the
United Bank of India, has become the second-largest public sector bank of India with an
overall business of around INR 8 trillion. It provides a wide range of amazing products to its
customers.

● Union Bank of India

Among the best public sector banks in India, Union Bank of India has been a steady
performer over the years. It has a range of banking products in categories like consumer
banking, corporate banking, mortgage loans, investment banking, etc. Also, recently, Andhra
Bank and Corporation Bank merged into this bank, taking the overall business to INR 14.59
trillion.

● Canara Bank

Being one of the oldest public sector banks of India, Canara Bank has become the fourth
largest PSU bank after the recent merger of Syndicate Bank into it. The banking services
provided by Canara Bank resonate perfectly well with the headline – ‘Together We Can’. By
giving an extensive range of amazing products to customers, Canara Bank has been
constantly making their life easier and convenient.

21
 ● Bank of Baroda

Whenever there are talks about the best Public Sector Banks in India, it is simply not possible
to talk about the Bank of Baroda which has become the third-largest lender of the country
after the recent merger of Vijaya Bank and Dena Bank into it. Known as India’s International
Bank, Bank of Baroda has served over 127 million customers across 21 countries and its
consumer base is only growing with each passing day.

● Central Bank of India

The bank has a wide network of branches across all the 29 states and also in 6 out of 7 Union
territories in India. Apart from this amazing feat, the Central Bank of India was also the first
commercial bank to be completely managed and owned by Indians. It provides banking
services to individuals whether they are salaried and self-employed.

● Bank of India

Bank of India was founded on 7th September 1906 by a group of eminent businessmen from
Mumbai. The Bank was under private ownership and control till July 1969 when it was

22
nationalized along with 13 other banks. The Bank has over 5000 branches in India spread
over all states/ union territories including specialized branches. These branches are controlled
through 54 Zonal Offices and 8 NBG Offices. There are 60 branches/ offices and 5
Subsidiaries and 1 joint venture abroad.

Introduction to Marketing

Marketing refers to activities a company undertakes to promote the buying or selling of a

product or service. Marketing includes advertising, selling, and delivering products to
consumers or other businesses. Some marketing is done by affiliates on behalf of a company.
Professionals who work in a corporation's marketing and promotion departments seek to get
the attention of key potential audiences through advertising. Promotions are targeted to
certain audiences and may involve celebrity endorsements, catchy phrases or slogans,
memorable packaging or graphic designs and overall media exposure.

Marketing as a discipline involves all the actions a company undertakes to draw in customers
and maintain relationships with them. Networking with potential or past clients is part of the
work too, and may include writing thank you emails, playing golf with prospective clients,
returning calls and emails quickly, and meeting with clients for coffee or a meal. At its most
basic level, marketing seeks to match a company's products and services to customers who
want access to those products. Matching products to customers ultimately ensure profitability.
Product, price, place, and promotion are the Four Ps of marketing. The Four Ps collectively
make up the essential mix a company needs to market a product or service. Neil Borden
popularized the idea of the marketing mix and the concept of the Four Ps in the 1950s.

Marketing plays a critical role in any business. It’s used to create brand awareness, nurture
prospects, turn leads into customers and build brand loyalty. While there are many marketing
theories businesses can implement to create their strategies, two angles are common: macro
marketing and micro marketing. While approaching marketing differently, both these theories
work hand in hand to help businesses reach their marketing objectives.

● Marketing refers to all activities a company does to promote and sell products or
services to consumers.
● At its core, marketing seeks to take a product or service, identify its ideal customers,
and draw the customers' attention to the product or service available.

23
There are broadly two marketing techniques used by businesses in online marketing world:

● Macro Marketing
● Micro Marketing

Macro Marketing

Macro marketing as a term was first used in 1962 by Robert Bartels in his book The
Development of Marketing Thought, which examined future changes and innovations in
marketing. These included increased interdisciplinary research, greater use of
conceptualization, and more comparative research.

Macro marketing can be defined as the influence marketing policies, strategies, and
objectives have on the economy and society as a whole. Specifically, macro marketing refers
to how product, price, place, and promotion—the four Ps of marketing—create demand for
goods and services, and thus influence what products or services are produced and sold.

Over time, businesses have become more adept at reaching potential consumers through an
expanding set of media. Marketing has thus become a ubiquitous part of a consumer's daily
life. Because marketing affects what and how consumers purchase or do, it affects how
individuals and businesses interact with each other, the environment, and society as a whole.

Since macro marketing is meant to reflect society's values, it thus attempts to conduct the
marketing of goods, services, and ideas in a way that is consistent with the public good and

24
society at large. Scholars believe that the study of macro marketing is valuable in that it
focuses on understanding how individuals and societies innovate, adapt, and learn. Some
academics operate under the assumption that macro marketing represents the conscience of
the practice of marketing, while others maintain that its value lies primarily in its scientific
rigor and objectivity, utilizing tools such as A/B Testing.

Micro Marketing

Micro Markets are a retail sector, closely tied to the vending machine industry that utilizes
automated self-checkout technology in order to operate in locations that need an unattended
payment experience. Micro markets are unattended retail environments where consumers can
purchase products from open shelves, coolers, or freezers. Consumers use a self-checkout
kiosk to purchase their products. They are a hybrid form of vending, foodservice, coffee
service and convenience stores that provide an improved customer experience, exponentially
increases product variety and increases sales within a single location while keeping labour
costs down and increasing operational efficiencies.

Since they exist in this realm, the National Automatic Merchandising Association (NAMA)
“recognize[s] [Micro Markets] as one of its focus channels along with vending, foodservice
and refreshment services". Micro Markets look and feel like modern convenience stores;
however, they function in the realm of vending, foodservice and refreshment services.

They consist of an open rack display, reach-in refrigerated coolers or/and freezers and a
self-checkout kiosk. Consumers can pay using cash, credit/debit cards, or a stored value
market account, typically accessed through a market card, email address, fingerprint or
mobile app.

A single Micro Market can easily stock between 150-400 products while a traditional
vending machine can hold 40 products Operators are able to take advantage of the additional
products by catering to the various diet restrictions (gluten free, low-carb, etc.) According to
Micro Market technology provider, 365 Retail Markets, in addition to the increased product
variety, the open flow and cashless payment options means that consumers a) spend less time
in line fumbling with change, b) purchase multiple items with one transaction and c) spend
four times as much per transaction than with cash.

25
Banking Sector
As per the Reserve Bank of India (RBI), India’s banking sector is sufficiently capitalised and
well-regulated. The financial and economic conditions in the country are far superior to any
other country in the world. Credit, market and liquidity risk studies suggest that Indian banks
are generally resilient and have withstood the global downturn well.
Indian banking industry has recently witnessed the roll out of innovative banking models like
payments and small finance banks. RBI’s new measures may go a long way in helping the
restructuring of the domestic banking industry.
The digital payments system in India has evolved the most among 25 countries with India’s
Immediate Payment Service (IMPS) being the only system at level five in the Faster
Payments Innovation Index (FPII).
Market Size
The Indian banking system consists of 12 public sector banks, 22 private sector banks, 46
foreign banks, 56 regional rural banks, 1485 urban cooperative banks and 96,000 rural
cooperative banks in addition to cooperative credit institutions As of November 2020, the
total number of ATMs in India increased to 209,282. Asset of public sector banks stood at Rs.
107.83 lakh crore (US$ 1.52 trillion) in FY20. During FY16-FY20, bank credit grew at a
CAGR of 3.57%. As of FY20, total credit extended surged to US$ 1,698.97 billion. During
FY16-FY20, deposits grew at a CAGR of 13.93% and reached US$ 1.93 trillion by FY20.
According to the RBI, bank credit stood at Rs. 109.56 trillion (US$ 1.48 trillion), as of
September 24, 2021. Credit to non-food industries stood at Rs. 155.95 trillion (US$ 2.11
trillion), as of September 24, 2021.

Investments/Developments

Key investments and developments in India’s banking industry include:

⮚ As of October 10, 2021, the number of bank accounts—opened under the
government’s flagship financial inclusion drive ‘Pradhan Mantri Jan Dhan Yojana
(PMJDY)’—reached 43.57 crore and deposits in the Jan Dhan bank accounts totalled
>Rs. 1.45 trillion (US$ 19.46 billion).
⮚ In July 2021, Google Pay for Business has enabled small merchants to access credit
through tie-up with the digital lending platform for MSMEs—Flexi Loans.
26
 ⮚ In December 2020, in response to the RBI’s cautionary message, the Digital Lenders’
Association issued a revised code of conduct for digital lending.
⮚ On November 6, 2020, WhatsApp started UPI payments service in India on receiving
the National Payments Corporation of India (NPCI) approval to ‘Go Live’ on UPI in a
graded manner.
⮚ In October 2020, HDFC Bank and Apollo Hospitals partnered to launch the ‘Healthy
Life Programme’, a holistic healthcare solution that makes healthy living accessible
and affordable on Apollo’s digital platform.
⮚ In 2019, banking and financial services witnessed 32 M&A (merger and acquisition)
activities worth US$ 1.72 billion.
⮚ In March 2020, State Bank of India (SBI), India’s largest lender, raised US$ 100
million in green bonds through private placement.
⮚ In February 2020, the Cabinet Committee on Economic Affairs gave its approval for
continuation of the process of recapitalization of Regional Rural Banks (RRBs) by
providing minimum regulatory capital to RRBs for another year beyond 2019-20 - till
2020-21 to those RRBs which are unable to maintain minimum Capital to Risk
weighted Assets Ratio (CRAR) of 9% as per the regulatory norms prescribed by RBI.
⮚ The NPAs (Non-Performing Assets) of commercial banks recorded a recovery of Rs.
400,000 crore (US$ 57.23 billion) in the last four years including record recovery of
Rs. 156,746 crore (US$ 22.42 billion) in FY19.

Government Initiatives

⮚ The RBI introduced new auto debit rules with a mandatory additional factor of
authentication (AFA), effective from October 01, 2021, to improve the safety and
security of card transactions, as part of its risk mitigation measures.
⮚ In September 2021, Central Banks of India and Singapore announced to link their
digital payment systems by July 2022 to initiate instant and low-cost fund transfers.
⮚ In August 2021, Prime Minister Mr. Narendra Modi launched e-RUPI, a person and
purpose-specific digital payment solution. e-RUPI is a QR code or SMS string-based
e-voucher that is sent to the beneficiary’s cell phone. Users of this one-time payment
mechanism will be able to redeem the voucher at the service provider without the
usage of a card, digital payments app, or internet banking access.

27
 ⮚ As per Union Budget 2021-22, the government will disinvest IDBI Bank and privatise
two public sector banks.
⮚ As per Union Budget 2019-20, the Government proposed fully automated GST refund
module and an electronic invoice system that will eliminate the need for a separate
e-way bill.
⮚ Government smoothly carried out consolidation, reducing the number of Public
Sector Banks by eight.
⮚ As of September 2018, the Government of India made Pradhan Mantri Jan Dhan
Yojana (PMJDY) scheme an open-ended scheme and added more incentives.
⮚ The Government of India planned to inject Rs. 42,000 crore (US$ 5.99 billion) in
public sector banks by March.

Achievements

Following are the achievements of the Government:

⮚ In September 2021, Unified Payments Interface (UPI) recorded 3.65 billion
transactions worth Rs. 6.54 trillion (US$ 87.11 billion).
⮚ As of October 08, 2021, according to the RBI, India’s foreign exchange reserves
reached US$ 639.51 billion.
⮚ To improve infrastructure in villages, 204,000 point of sale (Pos) terminals have been
sanctioned from the Financial Inclusion Fund by National Bank for Agriculture &
Rural Development (NABARD).
⮚ The number of transactions through immediate payment service (IMPS) reached
303.76 million (by volume) and amounted to Rs. 2.84 trillion (US$ 38.07 billion) in
June 2021.

Road Ahead
Enhanced spending on infrastructure, speedy implementation of projects and continuation of
reforms are expected to provide further impetus to growth in the banking sector. All these
factors suggest that India’s banking sector is poised for a robust growth as rapidly growing
businesses will turn to banks for their credit needs.

28
Also, the advancement in technology has brought mobile and internet banking services to the
fore. The banking sector is laying greater emphasis on providing improved services to their
clients and upgrading their technology infrastructure to enhance customer’s overall
experience as well as give banks a competitive edge.
India’s digital lending stood at US$ 75 billion in FY18 and is estimated to reach US$ 1
trillion by FY23 driven by the five-fold increase in the digital disbursements. By 2025,
India's fintech market is expected to reach Rs. 6.2 trillion (US$ 83.48 billion).

Targeting a Niche with Micro Marketing

Unlike macro marketing that looks at the big picture, micro marketing is all about
segmentation. Businesses target a small portion of their audience based on a number of
characteristics. The segmented audience can be narrowed by demographics, purchasing
history, income, job description, geographic location and many other factors. The idea is to
develop a market list that is highly targeted to match the business offerings. Instead of
advertising to a large consumer base, for example, micro marketing is about understanding
the specific needs of the consumer well and providing them with a specific solution to meet
those needs. In order to attain customer satisfaction, businesses use the four P’s of marketing
to target their consumer: product, price, place and promotion.

For example, if a small business owner runs a local car repair shop, he can use micro
marketing to target his ideal customer. Instead of advertising to anyone that owns a car, he
may choose to target individuals that own certain brands of cars or cars of a certain age. That
way, he can narrow down his customer base and provide them with a highly specialized
service that gives him an advantage over his competition.

BANKING SECTOR IN POST-COVID ERA

Issues and Challenges:

⮚ Firms that have stopped working missed out on revenues, and were not able to repay
loans. Similarly, households with members who have lost their jobs or faced salary

29
 cuts had less income, and therefore not able to repay their loans. This resulted not
only in lost revenue but also in losses, negatively affecting profits and bank capital.
⮚ Banks were negatively affected as bonds and other traded financial instruments have
lost value, resulting in further losses for banks. There might also be losses from open
derivative positions that have moved in unexpected directions due to the crisis.
⮚ Banks faced increased demand for credit, as especially firms require additional cash
flow to meet their costs even in times of no or reduced revenues. In some cases, this
higher demand has presented itself in the drawdown of credit lines by borrowers.
⮚ Banks face lower non-interest revenues, as there was lower demand for their different
services.

Impacts:

⮚ Banks started a work-from-home culture which is still working effectively

⮚ Banks speed-up their process towards digitization as it helps to reduce costs and have
the potential to increase revenues in future
⮚ Banks started maintaining additional capital buffer to protect them from any sudden
downside risk like Covid.
⮚ RBI opened its liquidity tap post-covid via its monetary policy to meet the sudden
increased demand for liquidity and to promote growth in the economy.
⮚ Government of India announced Moratorium period to give relief to the common
people, small and large businesses who were unable to pay the debt.
⮚ Banks started focusing towards reducing costs and wasteful expenditures.

30
Consumer protection risks remain substantial given limited or inadequate disclosure and
oversight. For example, more than 16,000 tokens have been listed in various exchanges and
around 9,000 exist today, while the rest have disappeared in some form. For example, many
of them have no volumes or the developers have walked away from the project. Some were
likely created solely for speculation purposes or even outright fraud.

Significant Challenges Ahead

Looking ahead, widespread and rapid adoption can pose significant challenges by reinforcing
dollarization forces in the economy—or in this case cryptoization—where residents start
using crypto assets instead of the local currency. Cryptoization can reduce the ability of
central banks to effectively implement monetary policy. It could also create financial stability
risks, for example through funding and solvency risks arising from currency mismatches, as
well as amplify the importance of some of the previously mentioned risks to consumer
protection and financial integrity.

Threats to fiscal policy could also intensify, given the potential for crypto assets to facilitate
tax evasion. And seigniorage (the profits accruing from the right to issue currency) may also
decline. Increased demand for crypto assets could also facilitate capital outflows that impact
the foreign exchange market.
31
Policy Action

As a first step, regulators and supervisors need to be able to monitor rapid developments in
the crypto ecosystem and the risks they create by swiftly tackling data gaps. The global
nature of crypto assets means that policymakers should enhance cross-border coordination to
minimize the risks of regulatory arbitrage and ensure effective supervision and enforcement.

National regulators should also prioritize the implementation of existing global standards.
Standards focused on crypto assets are currently mostly limited to money laundering and
proposals on bank exposures. However, other international standards—in areas such as
securities regulation, as well as payments, clearing and settlements may also be applicable
and need attention.

Government of India soon going to release Digital Rupee. It may also be based on the same
technology (Blockchain Technology) as Bitcoin, Ethereum like currencies are traded. There
would be a difference between Digital Rupee and other Cryptocurrencies as Digital Rupee
would be having monetary authority backing whereas Bitcoin has not.

CHAPTER- V: DATA ANANLYSIS AND INTERPRETATION

Analysis

Data Analysis is the process of systematically applying statistical and/or logical techniques to
describe and illustrate, condense and recap, and evaluate data. ... Indeed, researchers
generally analyse for patterns in observations through the entire data collection phase.

Data Interpretation

Data interpretation refers to the implementation of processes through which data is reviewed
for the purpose of arriving at an informed conclusion. The interpretation of data assigns a
meaning to the information analysed and determines its signification and implications.
32
TABLE 4.1

Que 1. What type of bank in which respondents have account?

S. NO. TYPE OF BANK NUMBER OF RESPONDENTS PERCENTAGE

1. Public Sector bank 75 62.5%
2. Private Sector bank 45 37.5%

INTERPRETATION: From the above table approximately 62% respondents have their
account on public bank and remaining have their account on private banks.

TABLE 4.2

Que 2. Name of the bank in which respondents have account?

S. NO. NAME OF THE BANK NO. OF PRECENTAGE

RESPONDENTS
1 HDFC Bank 7 5.83%
2 Kotak Bank 4 3.33%
3 Punjab National Bank 15 12.5%
4 State Bank of India 57 47.%
5 Canara Bank 27 22.5%
6 Union Bank 2 1.66%
7 Central Bank of India 23 19.16%

33
INTERPRETATION: From the above data it’s clear, that almost half of the respondents
have their account in SBI Bank and have one – fourth have accounts in Canara Bank. On the
other hand, only 2 respondents have their account in Union Bank.

TABLE 4.3

Que 3. How many accounts they have?

S.NO. NUMBER OF ACCOUNTS NUMBER OF PERCENTAGE

RESPONDENTS
1 ONE 79 65.83%
2 TWO 41 34.16%

INTERPRETATION: From the data stated above, it is clear that more than half of the
respondents have one account and about 34% have two accounts in the bank.

34
TABLE 4.4

Que 4. How long they have been using internet banking?

S.NO. NUMBER OF YEARS NUMBER OF PERCENTAGE

RESPONDENTS
1 Less than two years 43 35.83%
2 2<4 46 38.33%
3 4< 31 25.84%

INTERPRETATION: The above data states that around 35% of respondents are using
internet banking from last two years and this figure increases by 3% who are using internet
banking from more than two and less than four years.

35
TABLE 4.5

Que 5. How often do they use internet banking?

S.NO. NUMBER OF TIME NUMBER OF PERCENTAGE

RESPONDENTS
1 Daily 70 58.33%
2 Weekly 35 29.16%
3 Fortnite 7 5.83%
4 Occasionally 8 6.68%

INTERPRETATION: The data collected from the survey shows that most of the
respondents use online banking daily for their day-to-day transactions.

TABLE 4.6

Que 6. Which service do they like in their banks?

S.NO. SERVICES NUMBER OF RESPONDENTS PERCENTAGE

1 Mobile Banking 63 52.5%

2 Cooperative Staff 24 20%
3 Consultancy 18 15%
4 Others 15 12.5%

INTERPRETATION: Half of the respondents like mobile banking services given by their
bank and cooperative staff and consultancy services percentage are 20% and 15%.

36
TABLE 4.7

Que 7. Are they interested in opening an account with ICICI bank?

S.NO. OPENING OR NOT NUMBER OF PERCENTAGE

RESPONDENTS
1 Yes 23 19.16%
2 No 83 69.16%
3 May be 14 11.68%

INTERPRETATION: From the above data it shows that because of having account in
another banks 70% of respondents do not want to have account in ICICI Bank.

37
TABLE 4.8

Que 8. Is your banks have a transactions tracking system?

S.NO. SYSTEM NUMBER OF RESPONDENTS PERCENTAGE

1 Yes 98 81.66%
2 No 22 18.34%

INTERPRETATION: From the data above, it clearly shows that all most all banks have
transactions tracking system.

TABLE 4.9

Que 9. Which attribute of the bank they value the most?

38
 S.NO. ATTRIBUTE NUMBER OF PERCENTAGE
RESPONDENTS
1 Quality of service 63 52.5%
2 Technology used 57 47.5%

INTERPRETATION: Quality of services attribute are liked by more than half of the
respondents on the other hand, remaining all the respondents like technology used attributes.

39
 CHAPTER-VI: FINDINGS, CONCLUSION & POLICY
IMPLICATIONS

Findings
● 62.5% of the respondents having their account in public sector banks.
● Mostly respondents have their account in SBI, Canara Bank and HDFC Bank while,
least of them have their account in Union Bank.
● Around 35% of the respondents have two accounts, which are mostly businessmen
and remaining have one saving account with their banks.
● As a result of digitalization, around 60% of the respondents use internet banking daily
and some of the respondents (29.16%) use it weekly.
● From last two years, 36% of the respondents using internet banking. Moreover, 25%
of them have been using internet banking for more than four years.
● Almost half (52.5%) of the respondents like mobile banking services on the other
hand, cooperative staff and consultancy are equally liked by them.
● 69% of the respondents do not want to have their account in ICICI Bank.
● 81% of the respondents' bank have transaction tracking system.

Conclusion
Banking system has changed a lot since Independence. From Cheques to Online money
transfers, from Branch visit to Net Banking. Latest technologies like UPI, Aadhaar based
Digital bank accounts, Online loan facilities etc has changed the way the banking system
worked in 20th century.

Customer experience has also changed since the emergence of digital banking. Today, be it
corporate, retail or small business banking, the tech-savvy customer now demands premium,
seamless experiences across all platforms and channels. Digitization in banking has shaken
up the old order. Anytime anywhere banking is now the norm and banks will have to offer
innovative, robust, secure and flexible solutions for the empowered customer.

40
ICICI Bank being India’s 2nd largest private bank is striving towards providing latest
financial technologies to its customers and has succeeded till now.

Post-Covid, already stressed banking sector saw its worst when loan recovery came to a level
which was unprecedented, banks unwilling to give fresh loans, people unable to repay loans
due to lockdowns, restrictions etc. Post-lockdowns, the banking sector came back with a
boom. It is expected that banking sector may see it’s golden period in this decade.

When targeting Micro-markets, a detailed assessment of profitability potential of each market

must be taken into account, by including growth patterns, service adoption behaviour of
consumers and future-predictive value within a micro market. Market saturation needs to be
an important variable so one must ask whether a particular micro-market is “overbanked” or
whether there’s room for another financial institution. A micro-market may have good appeal
on the surface but simply offer no more room for another institution to penetrate. And then,
look at the purchasing propensities of the population in each micro-market. Understanding
those dynamics is core to understanding the value each micro-market presents.

ICICI Bank limited has also planned to increase its growing mortgage business in
micro-markets in the periphery of major cities such as Ambala, Bikaner, Tuticorin, Bagchi
etc.

Policy Implications
● The management of banks should keep and maintain sufficient capital reserves to get
protected from any downside risk as seen during Covid.
● The management of banks should invest more to improve the technology provided to
customers to enhance their user experience.
● The management of banks should do more and invest more towards cybersecurity and
towards protecting the personal and financial data of their customers
● The management of banks needs to spread awareness about digital banking and its
benefits into the rural areas and remote regions of India.
● The management of banks should focus more towards lending small business and to
self-help groups in the Micro-markets and rural areas of India.
● The management of banks should focus more to increase the visibility in the
Micro-markets of India. Micro-markets are the rising sun in India.

41
● The management of banks needs to put more effort towards the Micro-marketing as it
can reduce costs and have better probability to get new customers and to generate
more revenue.

42
 CHAPTER- VII: SUGGESTIONS

SUGGESTIONS

● Banks and financial institutions need to rethink their customer journeys inside out by
understanding customer pain points, identifying opportunities to delight the customer
in ways that separate them from the crowd.
● Ensure that you are aware of all the latest developments and innovations in digital
banking from around the world and how these trends influence the business model
and customer journey.
● Not all digital innovations or technology is relevant at once. Choose the areas you
want to focus on combined with customer priorities and expectations.
● One of the most important and growing concerns is cybersecurity. Optimize
authentication, access and privacy technologies in the most user-friendly ways.
● Mobility will increasingly be at the heart of user experience – provide a seamless
device experience and a design that makes user onboarding intuitive and easy.
● Create content that helps users to understand your products and services better. Be it
applications that demonstrate how-to do stuff, videos, animated content, calculators
and tools.
● For customer retention in the highly competitive landscape, first contact resolution is
the key.
● Banks can create significant performance gains with small but targeted digital
enhancements. Deployment of tools like e-forms, workflow systems that can be
deployed quite rapidly are some ways to go about this.
● The concept of micromarketing become mandatory for banks in order to survive in
this competitive market. No one can even think to run its banking system without this
concept.

43
 CHAPTER- VIII: BIBLIOGRAPHY

● Vivek Kaul (2020) Bad Money: Inside the NPA Mess and How It Threatens the
Indian Banking System, p. 264
● Indian Institute of Banking and Finance (2007), Principles and Practices of Banking,
pp. 137-150
● Sandip Sen (2011) The Inside Story of Indian Banking, p. 20
● Helene Panzarino (1998), Reinventing Banking and Finance: Frameworks to navigate
global fintech innovation, p. 700
● Jonathan McMillan (2014), The End of Banking: Money, Credit, and the Digital
Revolution, 4 (5) , 11 – 16
● Ramesh Singh (2017) Edition, Indian Economy, p. 32-45, 75-78, 304-309
● Sanjiv Verma (2019) Edition, The Indian Economy, p. 106-112, 152-154
● Kothari C.R. ‘Research Methodology’
● NCERT Books of Economics

Media Reports

● Newspapers- The Hindu, The Indian Express, The Economic Times, Business
Standard
● Magazines- Geography and You, Down to Earth, Yojana, Frontline
● Press release, Reserve Bank of India
● Press Information Bureau
● Economic Survey 2021
● Annual Financial Statement (Budget)

Websites

● www.pmjdy.gov.in
● Banking Sector in India: Market Size, Industry Analysis, Govt Initiatives | IBEF

44
● https://www.thehindubusinessline.com/money-and-banking/icici-bank-plans-expansio
n-in-micro-markets-on-periphery-of-major-cities/article24329717.ece
● https://link.springer.com/article/10.1057/s41264-020-00082-w
● https://smallbusiness.chron.com/macro-micro-marketing-planning-strategies-3239.ht
ml
● https://www.termscompared.com/difference-between-micro-marketing-and-macro-ma
rketing/
● https://timesofindia.indiatimes.com/business/india-business/sbi-launches-financial-inc
lusion-and-micro-market-vertical/articleshow/76152538.cms
● https://www.icicibank.com/aboutus/about-us.page
● https://rbi.org.in/Scripts/BS_PressReleaseDisplay.aspx
● https://rbi.org.in/Scripts/NotificationUser.aspx

45
 CHAPTER-IX: APPENDIX

Kindly fill this questionnaire and information.

1. Name

…........................................

2. Gender
a. Male
b. Female
c. Prefer not to say
d. Other …................

3. Email

...............................................

4. Phone number

...............................................

5. Where are you from?

.....................................................

6. What is your age?

a. Less than 20
b. 21-30
c. 31-40
d. Above 50

46
 7. What is your occupation?
a. Student
b. Business
c. Government employee
d. Private employee

8. What is average monthly income of your parents?

a. Less than 20,000
b. 20,000-40,000
c. 40,000-60,000
d. Above 60,000

9. Specify your bank type?

a. Public bank
b. Private bank

10. Name of your bank in which you have account?

...............................................................

11. How many accounts do you have?

a. One
b. Two
c. More than two

12. Which service you like in your bank?

…...........................................

13. Did you and your family have account in ICICI Bank?
a. Yes
b. No
c. Maybe

47
 14. Are you interested in opening an account with ICICI Bank?
a. Yes
b. No
c. Maybe

15. If yes, tell the service you like to have?

.......................................

16. How long have you been using internet banking?

a. 1 year
b. 2 years
c. 3 years
d. 4 years
e. More than 4 years

17. How often do you use internet banking?

a. Weekly
b. Fortnight
c. Monthly
d. Quarterly
e. Occasionally

18. Any suggestion?

.............................................................

48