“UNDERSTANDING CONSUMER BEHAVIOUR IN MOBILE AND

INTERNET BANKING”

A Project submitted to
University of Mumbai for partial completion of the degree of
Bachelor of Management Studies
Under the Faculty of Commerce

By

Mr. ANISHA RAJKUMAR JOSHI

TYBMS SEMESTER VI

Under the Guidance of

PROF.MOHIT SHARMA

St Rocks College of Commerce & Science

Borivali (W), Mumbai 400 092
April, 2024
 DECLARATION BY LEARNER

I the undersigned Ms. ANISHA RAJKUMAR JOSHI here by, declare that the work
embodied in this project work titled “UNDERSTANDING CONSUMER BEHAVIOUR IN
MOBILE AND INTERNET BANKING” forms my own contribution to the research work
carried out under the guidance of Prof. MOHIT SHARMA is a result of my own
research work and has not been previously submitted to any other University for any other
Degree to this or any other University.

Wherever reference has been made to previous works of others, it has been clearly indicated
as such and included in the bibliography.

I, here by further declare that all information of this document has been obtained and
presented in accordance with academic rules and ethical conduct.

ANISHA RAJKUMAR JOSHI

PROF. MOHIT SHARMA

(Project Guide)

DATE: __/__/____
PLACE: Mumbai
 ACKNOWLEDGEMENT

To list who all have helped me is difficult because they are so numerous and the depth is so
enormous.

I would like to acknowledge the following as being idealistic channels and fresh dimensions
in the completion of this project.

I take this opportunity to thank the University of Mumbai for giving me chance to do this
project.

I would like to thank my Principal, Ms, NIRJA SHARAN for providing the
necessary facilities required for completion of this project

I take opportunity to thank our Coordinator Mr, MOHIT SHARMA for his moral
support and guidance.

I would like to express my sincere gratitude towards my project Mentor Prof.

MOHIT SHARMA whose guidance and care made the project successful.

I would like to thank my College Library, for having provided various reference books and
magazines related to my project.

Lastly, I would like to thank each and every person who directly or indirectly helped me in
the completion of the project especially my Parents and Peers who supported me throughout
my project.
 INDEX

SR.NO TOPIC PAGE

NO.

EXECUTIVE SUMMARY 1

1. INTRODUCTION 2-30
1. History of banking in India
2. Evolution of digital banking
3. Decentralised finance vs digital banking
4. History of development of digital banking in India
5. Sources of digital banking
6. Rise of mobile banking
7. Technological advancement in banking
8. Regulatory environment of mobile and internet banking
9. Global trends in online banking
10. Upcoming digital trends in banking
11. Challenges in online banking
12. Risk of mobile and internet banking
13. The top 10 mobile banking risks and v1.9ulnerabilities and frauds
14. Opportunities of mobile and internet banking
15. Role of online banking services achieving competitive advantage
16. Advantages and Disadvantage of online banking
17. UPI: unified payment interface

2. RESEARCH METHODOLOGY 31-34

1. Statement of The Problem
2. Objective of The Problem
3. Hypothesis of The Problem
4. Scope of The Study
5. Limitations of The Study
6. Research Methods

3. LITERATURE REVIEW 35-45

4. DATA ANALYSIS AND INTERPRETATION

1. Quantitative data: Surveys 46- 71

2. Research instruments and Design
3. Sample size
4. Sampling unit
5. Statistical technique
5. CONCLUSION 72

6. SUGGESTION 73

7. WEBLIOGRAPHY 74

8. BIBLIOGRAPHY 75-77

9. ANNEXURE 78-81
 EXECUTIVE SUMMARY

The formation of Online Banking Services in India necessitates an examination of consumer perspectives,
attitudes, and usage patterns within the banking sector. This study seeks to explore various dimensions of
online banking services, including ATM-Automated Teller Machine, Personal Computer Banking, Phone
Banking, Mobile Banking, and Email Banking, from the standpoint of Indian consumers. Data for this
research is gathered from primary and secondary sources, encompassing journals, websites, and other
relevant materials.

A survey of 100 individuals was conducted to gain insights into consumer perspectives regarding mobile
and internet banking. This survey aimed to uncover consumer attitudes, preferences, and usage behaviors
related to online banking services. The findings from this survey offer valuable insights into consumer
behaviours and expectations in the context of digital banking in India.

Furthermore, this paper examines the role of effective regulation in ensuring the security and reliability of
online banking services. By analysing regulatory frameworks and their impact on consumer trust, the
study highlights the importance of regulatory measures in safeguarding consumer interests in the online
banking domain.

Overall, this study contributes to the existing body of literature by providing valuable insights into
consumer perspectives and attitudes towards online banking services in India. By addressing key issues
such as consumer behaviour and regulatory concerns, the research aims to inform policymakers and
banking institutions about the evolving landscape of online banking and its implications for consumer
welfare in India.

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 1. INTRODUCTION

1.1 HISTORY OF BANKING IN INDIA

Following India's independence, the country faced a significant challenge as major banks were privately
owned, leaving rural communities reliant on moneylenders for financial support. To address this issue, the
government took steps to nationalize banks under the Banking Regulation Act of 1949. Additionally, the
Reserve Bank of India was nationalized in the same year.

One of the pivotal moments was the establishment of the State Bank of India in 1955. Subsequently,
between 1969 and 1991, 14 banks with national deposits exceeding 50 crores were nationalized. These
included Allahabad Bank, Bank of India, Bank of Baroda, Bank of Maharashtra, Central Bank of India,
Canara Bank, Dena Bank, Indian Overseas Bank, Indian Bank, Punjab National Bank, Syndicate Bank,
Union Bank of India, United Bank, and UCO Bank.

In 1980, six more banks were nationalized, bringing the total to 20. This second wave of nationalization
included Andhra Bank, Corporation Bank, New Bank of India, Oriental Bank of Commerce, Punjab &
Sind Bank, and Vijaya Bank.

Additionally, seven subsidiaries of the State Bank of India were nationalized in 1959: State Bank of
Patiala, State Bank of Hyderabad, State Bank of Bikaner & Jaipur, State Bank of Mysore, State Bank of
Travancore, State Bank of Saurashtra, and State Bank of Indore. Over time, most of these subsidiaries
merged with the State Bank of India, with the exception of the State Bank of Saurashtra in 2008 and State
Bank of Indore in 2010.

These nationalizations marked significant milestones in the history of banking in India, aiming to address
the financial needs of various sections of society and promote economic development.

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List of Banks Nationalized in India:

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 of India

14. UCO Bank

15. Andhra Bank

16. Corporation Bank

17. New Bank of India

18. Oriental Bank of Commerce

19. Punjab & Sind Bank

20. Vijaya Bank

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Liberalisation Period (1991-Till Date)

During the liberalization period from 1991 onwards, India's banking sector witnessed significant
transformations aimed at ensuring its stability, profitability, and competitiveness in the global market.
This phase, characterized by ongoing reforms and regulatory measures, played a pivotal role in shaping
the trajectory of the banking industry.
To bolster the performance of Nationalized Public Sector Banks (PSBs), the government initiated
comprehensive reforms under the guidance of a committee led by Shri. M Narasimham. A key milestone
during this period was the introduction of Private Sector Banks in India. The Reserve Bank of India (RBI)
granted licenses to 10 private sector banks to establish their presence in the country, thus fostering
competition and innovation within the banking landscape.
These newly licensed private sector banks included Global Trust Bank, ICICI Bank, HDFC Bank, Axis
Bank, Bank of Punjab, IndusInd Bank, Centurion Bank, IDBI Bank, Times Bank, and Development
Credit Bank. Alongside the entry of private players, several other measures were implemented to enhance
the efficiency and effectiveness of the banking sector.
Foreign banks were encouraged to set up branches in India, promoting greater diversity and expertise in
the banking services offered. Moreover, the era of nationalization of banks came to an end, signaling a
shift towards a more liberalized and market-driven banking environment.
The Narasimham Committee emphasized the equal treatment of both public and private sector banks by
RBI and the government, fostering a level playing field for all players in the banking sector. Furthermore,
foreign banks were permitted to initiate joint ventures with Indian banks, facilitating the exchange of
knowledge and best practices.
In line with technological advancements and changing consumer preferences, new banking models
emerged during this period. Payments banks were introduced to leverage advancements in banking
technology, offering innovative solutions for financial inclusion and digital payments.

Additionally, Small Finance Banks were authorized to establish branches across India, catering to the
unique financial needs of underserved segments and promoting inclusive growth. The advent of internet
banking and mobile apps revolutionized the way banking services were accessed and utilized, facilitating
convenient fund transfers and transactions.

Overall, the history of banking in India reflects a dynamic evolution driven by the evolving needs of the
populace and the imperative to adapt to a rapidly changing global economic landscape. Through
progressive reforms and innovative initiatives, the banking sector has continued to thrive, contributing
significantly to India's economic development and prosperity.

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 1.2 EVOLUTION OF DIGITAL BANKING

1) Early Automation (1960s to 1980s):

The roots of digital banking can be traced back to the 1960s, a period marked by significant
advancements in computing technology. During this time, banks began adopting mainframe computers to
automate various banking functions, including check processing and customer account management. This
early form of automation laid the groundwork for the digitization of banking services and marked the
beginning of a transformative journey in the financial sector. One of the most groundbreaking innovations
of this era was the introduction of the Automated Teller Machine (ATM) by Bank of America in the
1960s. The ATM revolutionized banking by allowing customers to withdraw cash conveniently without
the need for a bank teller, thereby increasing accessibility to banking services. Furthermore, in the 1980s,
Citibank made significant strides in digital banking with the introduction of the first online banking
system. This system enabled customers to access their account information and conduct basic transactions
through dial-up connections, paving the way for the future of online banking.

2) Introduction of Online Banking (1990s to 2000s):

The 1990s and early 2000s witnessed a significant shift in the banking landscape with the widespread
adoption of the internet. This period saw the development and proliferation of online banking portals, as
banks sought to capitalize on the increasing prevalence of internet usage among consumers. Online
banking portals provided customers with the convenience of accessing their accounts, checking balances,
transferring funds, and managing bill payments from the comfort of their homes. Stanford Federal Credit
Union made history in 1994 by becoming the first financial institution to offer online banking services to
its members. This milestone was followed by Wells Fargo's introduction of online banking for its
customers in 1996, further cementing the role of online banking as a preferred method of banking for
consumers.

3) Mobile Banking (2000s to Present):

The dawn of the 21st century brought about another significant shift in the banking landscape with the
advent of mobile banking. The proliferation of smartphones in the late 2000s and early 2010s paved the
way for the emergence of mobile banking as a dominant force in the industry. Banks responded to this
technological shift by developing mobile applications that allowed customers to access their accounts and
perform various banking transactions on their smartphones. Mobile banking apps empowered customers
to check account balances, transfer funds, pay bills, and even deposit checks, all from the convenience of
their mobile devices. In 2007, USAA Federal Savings Bank made history by becoming the first bank to
offer mobile banking through its dedicated mobile app. Since then, mobile banking has become an
integral part of the digital banking landscape, with virtually every major bank offering mobile banking
apps with a wide range of functionalities. Today, mobile banking continues to evolve, with banks
leveraging advancements in technology to enhance the mobile banking experience and meet the evolving
needs of their customers.

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 1.3 Decentralised Finance vs. Digital banking

To gain a deeper understanding of the fundamental distinctions between decentralized finance (DeFi) and
digital banking, let's delve into their characteristics and conduct a comparative analysis.
DeFi has garnered increasing attention as a viable alternative to conventional banking frameworks in
recent times. It operates on blockchain technology, constituting a decentralized financial ecosystem
wherein individuals can engage and avail financial services sans intermediaries or centralized entities.
Essentially, DeFi empowers users with the freedom to participate in various financial activities
autonomously, leveraging the transparency and efficiency afforded by blockchain networks.
Contrarily, digital banking represents a modern iteration of traditional banking systems, incorporating
technological innovations to deliver a range of services such as online banking, mobile banking, and
digital wallets. Unlike DeFi, which operates on decentralized principles, digital banking retains a
centralized structure wherein financial institutions serve as the central authorities governing transactions
and account management. Digital banking harnesses technology to enhance accessibility and convenience
for users, facilitating seamless transactions and account management through digital platforms.
In essence, while DeFi champions decentralization and democratization of financial services through
blockchain technology, digital banking emphasizes leveraging technology to optimize traditional banking
services and streamline customer experiences.

As technology continues to evolve and disrupt traditional industries, the future of finance is becoming
increasingly decentralized and democratized. However, while DeFi has a lot of potential, it still faces
challenges in terms of scalability, security and mainstream adoption.

On the other hand, digital banking has already established itself as a mainstream industry and has been
embraced by millions of users worldwide. However, digital banking is still largely centralized and
controlled by traditional financial institutions, which limits its potential for democratization and
innovation.

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7 | Page
 1.4 History of development of Digital Banking in India

The journey of digital banking in India began in the late 1990s and early 2000s when online banking
started gaining popularity. During this time, banks introduced basic online services like checking account
balances and transferring funds through the internet. However, the real transformation occurred in the
2010s with the rise of smartphones and increased internet access.
Around 2010, mobile banking apps became more common, allowing customers to manage their accounts
using their smartphones. A big breakthrough came in 2016 with the launch of the Unified Payments
Interface (UPI), which made digital payments between bank accounts quick and easy through mobile
apps.
The Indian government's push for a digital economy, especially through initiatives like "Digital India" and
"Jan Dhan Yojana," further boosted the adoption of digital banking. The demonetization drive in 2016
also encouraged more people to use digital payment methods.
By the mid-2010s, many fintech startups entered the market, offering innovative solutions for payments,
lending, and wealth management. They focused on including people who didn't have access to traditional
banking services, making financial services more accessible through digital platforms.
The COVID-19 pandemic in 2020 highlighted the importance of digital banking as lockdowns and safety
concerns led more people to rely on online transactions. Traditional banks also improved their online and
mobile banking services to meet the growing demand.
The Reserve Bank of India (RBI) played a crucial role in shaping the digital banking landscape by
introducing regulations to ensure the security of digital transactions and customer data. The RBI also
adapted "Know Your Customer" (KYC) norms for digital platforms, allowing for remote customer
verification through methods like Aadhaar.
The need for digital banking in India became evident in the early 2000s as the economy grew rapidly, and
people sought more convenient banking services. With the internet becoming more widespread and
technology advancing, banks seized the opportunity to offer online banking solutions to meet the
changing needs of their customers, leading to the development and adoption of digital banking services
across the country.

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 1.5 Sources of Digital Banking

● Mobile Banking Apps: Many banks in India offer their own mobile banking apps that allow
customers to access various banking services through their smartphones.
● Internet Banking: Banks provide internet banking services through their websites, enabling
customers to perform banking transactions online.
● Unified Payments Interface (UPI): UPI is a real-time payment system which is developed by
NPCI which stands for National Payments Corporation of India which facilitates instant fund
transfers between banks through mobile devices.
● Digital Wallets: Mobile wallets like Paytm, Google Pay, PhonePe, and others have gained
popularity as sources of digital banking, allowing users to store money and make various
payments.
● Aadhaar-enabled Payment System (AEPS): This system enables financial transactions using
Aadhaar authentication for biometric identification.
● Point of Sale (PoS) Terminals: PoS terminals at retail outlets and businesses enable card-based
payments, including credit/debit cards and contactless payments.
● Online Payment Gateways: Payment gateways like Razorpay, CCAvenue, and others enable
secure online transactions for e-commerce websites and businesses.

● National Electronic Funds Transfer (NEFT) and Real-time Gross Settlement (RTGS): These
systems facilitate electronic fund transfers between banks for different transaction amounts. NEFT
is a deferred settlement system suitable for both small and large value transactions, while RTGS is
a real-time settlement system primarily used for high-value transactions. The choice between
NEFT and RTGS depends on the transaction amount, urgency, and the specific requirements of the
sender and receiver.
● Bharat interface for money (BHIM) app: this app allows users to make payments using UPI
application the BHIM app can be used by anyone who has a mobile number, a debit card and a
valid bank account.
● Bharat Bill Payment System (BBPS): It is a centralized payment system that enables online bill
payments for various services like electricity, water, gas, and more.

Traditional banks introduced user-friendly mobile apps and internet banking platforms to provide
customers with services like fund transfers, account management, loan applications, and more. These
efforts aimed to enhance customer convenience and reduce the need for physical visits to bank branches.

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 1.6 Rise of mobile banking

1. Smartphone Revolution and Online Banking Expansion:

- The advent of smartphones in the late 1990s and early 2000s marked a pivotal moment in the history
of digital banking in India. It was during this era that the concept of online banking began to gain
significant attention and traction among both consumers and financial institutions. With the emergence of
smartphones, a new avenue for accessing banking services was unlocked, leading to the birth of the first
internet banking apps. These apps revolutionized the way financial transactions were conducted, offering
users unprecedented convenience and accessibility. Moreover, the introduction of contactless payments
quickly became the norm in retail shops, signalling the widespread adoption of online banking services
across the country. As a result, online banking has become an indispensable part of modern banking, with
customers now expecting these services to be provided either for free or for a nominal fee. Banks that fail
to meet these expectations risk losing their customer base to competitors who offer robust online banking
solutions.

2. Factors Driving the Evolution of Mobile Banking:

- The evolution of mobile banking in India can be attributed to several key factors, chief among them
being the rapid advancement of technology. Over the years, technological innovations, particularly in the
realm of smartphones, have facilitated significant changes across various industries, including banking.
The widespread penetration of smartphones, coupled with the increasing accessibility of the internet, has
paved the way for the seamless transition to digital banking. Furthermore, the growing mobile money
infrastructure in the country has played a crucial role in driving the evolution of mobile banking. Major
banks, as well as smaller financial institutions, have made substantial investments to enhance their mobile
banking capabilities, catering to the evolving needs and preferences of their customers. Additionally,
non-bank entities such as mobile network carriers and online personal finance services have recognized
the potential of the fast-growing mobile banking space and have begun exploring ways to leverage it to
their advantage.

3. Innovative Features and Services in Online Banking:

- As online banking continues to evolve, banks have focused on introducing innovative features and
services to enhance the overall customer experience. These enhancements have been aimed at providing
maximum convenience to customers while expanding the range of services and products offered by
banks. With the advent of digital banking, customers now have access to a wide array of innovative
features such as real-time account monitoring, instant fund transfers, personalized financial insights, and
seamless integration with third-party applications. These features not only serve as a competitive
advantage for banks but also act as a key differentiator in attracting new customers and retaining existing
ones in an increasingly crowded market.

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4. Increased Market Reach and Accessibility:
- One of the most significant benefits of digital banking is its ability to reach a wider audience,
irrespective of geographical constraints. With the proliferation of internet banking, banks can now extend
their services to customers who may not have had access to a local branch previously. This increased
accessibility has not only expanded the customer base for banks but has also made it easier for them to
upsell and cross-sell products to existing customers. Moreover, digital banking has enabled banks to tap
into previously untapped markets, thereby driving growth and revenue generation.

5. Monetizing Customer Analytics:

- In the era of digital banking, customer data has emerged as a valuable asset for banks, providing
valuable insights into consumer behaviour and spending patterns. Banks can now track each purchase or
transaction in real-time, allowing them to gather detailed information about their customers' preferences
and habits. This data is then leveraged by banks to create personalized deals and offers for customers,
thereby enhancing the overall customer experience and driving customer loyalty. Additionally, banks
often collaborate with retailers to share customer data in exchange for valuable insights into market trends
and consumer behaviour. It is important to note that while banks utilize customer data for monetization
purposes, they prioritize the protection of customer privacy and data security, adhering to strict regulatory
guidelines set forth by regulatory authorities such as the Reserve Bank of India (RBI).
With smartphones, we witnessed the birth of the first internet banking apps and new ways of processing
payments that further contributed to the fast expansion of online banking. Contactless payments became
a standard occurrence in every retail shop and are no longer a novelty.
Online banking has become so widespread that customers expect to have online banking services
provided for free or for a very small fee. Banks that don’t practice that lose their customers.

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 1.7 Technological advancement in banking

In recent years, technological advancements have ushered in a new era of innovation and transformation
within the banking industry, fundamentally reshaping the way financial services are delivered and
consumed. Several key technological innovations have played pivotal roles in driving this evolution,
revolutionizing various aspects of banking operations and customer experiences:
1. ATM (Automated Teller Machine):
- The advent of Automated Teller Machines (ATMs) revolutionized banking accessibility by providing
customers with round-the-clock access to a wide array of banking services without the need for human
intervention. ATMs allow customers to conduct an array of transactions, including cash withdrawals,
balance inquiries, fund transfers, and bill payments, at their convenience. This self-service banking
solution has significantly improved customer convenience and reduced reliance on traditional
brick-and-mortar branches.
2. Contactless Payment:
- Contactless payment technology represents a groundbreaking innovation in the realm of electronic
transactions, offering a seamless and secure payment experience for consumers. By leveraging Near Field
Communication (NFC) technology, contactless payment methods enable users to complete transactions
swiftly and effortlessly by simply tapping or waving their contactless cards or mobile devices over a
compatible POS terminal. This contactless payment ecosystem has gained rapid adoption, particularly in
response to the COVID-19 pandemic, as consumers prioritize hygiene and safety during in-person
transactions.
3. Biometric Authentication:
- Biometric authentication has emerged as a cutting-edge security measure in the banking sector,
leveraging unique physiological or behavioral characteristics to verify customer identities with
unparalleled accuracy and reliability. Biometric authentication methods, such as fingerprint recognition,
facial recognition, voice authentication, and retina scans, offer a robust defense against unauthorized
access and fraudulent activities. By integrating biometric authentication into various banking channels,
including mobile banking apps, online platforms, ATMs, and physical branches, banks enhance security
while delivering a seamless and frictionless user experience.
4. Open Banking:
- Open banking initiatives represent a transformative shift in the financial services landscape,
empowering customers to share their financial data securely with authorized third-party service providers.
Under open banking frameworks, banks collaborate with fintech startups and other third-party entities to
enable innovative financial products and services tailored to customer needs. By granting controlled
access to customer data through secure application programming interfaces (APIs), open banking fosters
competition, encourages innovation, and enhances customer choice and financial inclusion.
These technological advancements underscore the dynamic nature of the banking industry, where
innovation and digitalization play central roles in driving growth, efficiency, and customer satisfaction.

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As banks continue to embrace emerging technologies and foster a culture of innovation, customers can
anticipate further enhancements in banking services, characterized by heightened convenience, security,
and personalization.

1.8 REGULATORY ENVIRONMENT

GUIDELINES ON INTERNET BANKING BY RBI (RESERVE BANK OF INDIA)

You may be aware that Reserve Bank of India had set up a Working Group on Internet Banking to
examine different aspects of Internet Banking (I-banking). The Group had focussed on three major areas
of I-banking, i.e, (i) technology and security issues, (ii) legal issues and (iii) regulatory and supervisory
issues. A copy of the Groups report is enclosed. RBI has accepted the recommendations of the Group to
be implemented in a phased manner. Accordingly, the following guidelines are issued for implementation
by banks. Banks are also advised that they may be guided by the original report, for a detailed guidance
on different issues.

I. Technology and Security Standards:

a. Banks should designate a network and database administrator with clearly defined roles as
indicated in the Group’s report. (Para 6.2.4)
b. Banks should have a security policy duly approved by the Board of Directors. There should be a
segregation of duty of Security Officer / Group dealing exclusively with information systems
security and Information Technology Division which actually implements the computer systems.
Further, Information Systems Auditor will audit the information systems. (Para 6.3.10, 6.4.1)
c. Banks should introduce logical access controls to data, systems, application software, utilities,
telecommunication lines, libraries, system software, etc. Logical access control techniques may
include user-ids, passwords, smart cards or other biometric technologies. (Para 6.4.2)
d. At the minimum, banks should use the proxy server type of firewall so that there is no direct
connection between the Internet and the bank’s system. It facilitates a high level of control and
in-depth monitoring using logging and auditing tools. For sensitive systems, a stateful inspection
firewall is recommended which thoroughly inspects all packets of information, and past and
present transactions are compared. These generally include a real time security alert. (Para 6.4.3)
e. All the systems supporting dial up services through modem on the same LAN as the application
server should be isolated to prevent intrusions into the network as this may bypass the proxy
server. (Para 6.4.4)
f. PKI (Public Key Infrastructure) is the most favoured technology for secure Internet banking
services. However, as it is not yet commonly available, banks should use the following alternative
system during the transition, until the PKI is put in place:
1. Usage of SSL (Secured Socket Layer), which ensures server authentication and use of
client-side certificates issued by the banks themselves using a Certificate Server.
2. The use of at least 128-bit SSL for securing browser to web server communications and, in
addition, encryption of sensitive data like passwords in transit within the enterprise itself. (Para
6.4.5)

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 g. It is also recommended that all unnecessary services on the application server such as FTP (File
Transfer Protocol), telnet should be disabled. The application server should be isolated from the
e-mail server. (Para 6.4.6)
h. All computer accesses, including messages received, should be logged. Security violations
(suspected or attempted) should be reported and follow up action taken should be kept in mind
while framing future policy. Banks should acquire tools for monitoring systems and the networks
against intrusions and attacks. These tools should be used regularly to avoid security breaches.
The banks should review their security infrastructure and security policies regularly and optimize
them in the light of their own experiences and changing technologies. They should educate their
security personnel and also the end-users on a continuous basis. (Para 6.4.7, 6.4.11, 6.4.12)
i. The information security officer and the information system auditor should undertake periodic
penetration tests of the system, which should include:
1. Attempting to guess passwords using password-cracking tools.
2. Search for back door traps in the programs.
3. Attempt to overload the system using DDoS (Distributed Denial of Service) & DoS (Denial of
Service) attacks.
4. Check if commonly known holes in the software, especially the browser and the e-mail
software exist.
5. The penetration testing may also be carried out by engaging outside experts (often called
‘Ethical Hackers’). (Para 6.4.8)
j. Physical access controls should be strictly enforced. Physical security should cover all the
information systems and sites where they are housed, both against internal and external threats.
(Para 6.4.9)
k. Banks should have proper infrastructure and schedules for backing up data. The backed-up data
should be periodically tested to ensure recovery without loss of transactions in a time frame as
given out in the bank’s security policy. Business continuity should be ensured by setting up
disaster recovery sites. These facilities should also be tested periodically. (Para 6.4.10)
l. All applications of banks should have proper record keeping facilities for legal purposes. It may
be necessary to keep all received and sent messages both in encrypted and decrypted form. (Para
6.4.13)
m. Security infrastructure should be properly tested before using the systems and applications for
normal operations. Banks should upgrade the systems by installing patches released by developers
to remove bugs and loopholes, and upgrade to newer versions which give better security and
control.

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 1.9 GLOBAL TRENDS IN ONLINE BANKING

Nowadays, the majority of mobile users regularly use online banking solutions. They also purchase goods
& services using online payment systems and transfer money to others through mobile banking apps.
Seeing all these things, it is quite evident that online banking has become very important in everyone’s
life. Since the pandemic, people of different ages have started using digital only banks and appreciating
digital banking services. This is why it is not surprising that online financial services are continually
growing and getting better. For digital banking transformation, financial software development firms are
using the latest technologies like Artificial Intelligence, Machine Learning, Blockchain, Cloud
Computing, Robotic Process Automation, and more.

1. Cloud Computing:
- Cloud banking has emerged as a transformative trend in the banking industry, offering financial
institutions (FIs) access to scalable and cost-efficient computing resources via the internet. This
on-demand delivery of hosted computing services includes servers, data storage, communication,
networking, applications, and data analytics. By leveraging cloud computing, FIs can manage core
applications and banking systems remotely, leading to enhanced operational efficiency and the delivery of
superior financial services and digital banking experiences to customers.

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2. Automation:
- Banking automation has revolutionized traditional banking processes by streamlining various tasks,
such as customer accounting, deposits, withdrawals, customer acquisition, and retention, through the use
of advanced technologies. This includes the automation of routine tasks to minimize human involvement,
resulting in a smoother and more systematic workflow. Compared to manual operations, which were often
inconsistent, delayed, and prone to errors, automation ensures efficiency and optimization of the customer
experience across all touchpoints.
3. AI in Banking:
- Artificial Intelligence (AI) is playing an increasingly significant role in banking, driving efficiency,
security, and personalized customer experiences. AI technologies automate repetitive tasks like data entry
and fraud detection, reducing operational costs and enhancing security measures. Additionally, AI-driven
chatbots provide 24/7 customer support, improving accessibility and responsiveness. Machine learning
algorithms analyze vast amounts of customer data to personalize services, detect unusual transactions, and
optimize credit scoring models, ultimately streamlining operations, reducing risks, and offering tailored
services to customers.
4. Real-Time Payments:
- Real-time payments represent a transformative shift in transaction processing, enabling instantaneous
and continuous fund transfers between bank accounts, 24/7. Unlike traditional payment systems, which
may involve delays of hours or even days, real-time payments ensure immediate availability of funds to
recipients. This instant transfer of funds facilitates faster and more efficient transactions, enhancing
overall payment experiences for consumers and businesses alike.
5. Data-Driven Approach:
- The banking industry is increasingly adopting a data-driven approach to enhance customer
experiences and drive business growth. Financial institutions leverage data analytics and predictive
analytics to gain insights into customer behavior, preferences, and needs. By harnessing the power of
data, banks can identify hidden opportunities for revenue generation, improve decision-making processes,
and personalize services to meet the evolving demands of customers. This data-driven approach not only
enhances customer satisfaction but also enables banks to stay competitive in a rapidly evolving market
landscape.
6. Personalization:
- Personalization has emerged as a key strategy for banks to deliver tailored services and solutions to
customers based on their unique needs and preferences. By leveraging customer data and predictive
analytics, banks can create personalized banking experiences across various channels, including branches,
mobile apps, and online platforms. This personalized approach builds trust and loyalty among customers,
driving customer engagement and long-term relationships. In today's fragmented and competitive banking
landscape, personalization serves as a cornerstone for delivering exceptional customer experiences and
driving business growth.

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 1.10 Upcoming Digital Trends in Banking

Latest Trends in Digital Banking:

1. Customer-Centric Approach:
- Banks are prioritizing customer satisfaction by focusing on user-friendly interfaces and seamless
navigation on digital platforms. Efforts are made to simplify processes and minimize manual intervention,
ensuring convenience for customers.
2. Expansion of Contactless Payments:
- With the increasing preference for digital transactions, contactless payment methods have gained
momentum. Banks are enhancing their digital infrastructure to facilitate secure and convenient contactless
transactions for customers.
3. Rise of Artificial Intelligence (AI):
- AI technologies, including chatbots and automated systems, are revolutionizing customer service in
banking. These tools provide instant assistance, streamline operations, and enhance fraud detection
mechanisms, ensuring efficient and secure banking experiences.
4. Emergence of Neobanks:
- Neobanks, digital-only banking platforms, are gaining popularity for their accessibility and
cost-efficiency. By leveraging mobile apps and innovative technologies, neobanks offer a wide range of
banking services without the need for physical branches.
5. Open Banking Initiatives:
- Open banking frameworks enable seamless data sharing between banks and third-party financial
service providers. This collaboration fosters innovation and expands the range of financial products and
services available to customers.
6. Buy Now Pay Later (BNPL) Services:
- BNPL services are transforming payment experiences by offering flexible payment options for
purchases. Customers can buy products upfront and pay in instalments, driving convenience and
affordability in digital transactions.
7. Blockchain Technology Integration:
- Blockchain technology is being adopted by banks to enhance security and transparency in financial
transactions. Its decentralized nature ensures data integrity and enables efficient cross-border transactions.
8. Utilization of Big Data Analytics:
- Banks leverage big data analytics to analyse customer behaviour and preferences, enabling
personalized banking experiences. Insights from data analytics drive product innovation and
customer-centric strategies.

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9. Promotion of Self-Service Banking:
- Self-service banking tools such as mobile apps and interactive kiosks empower customers to perform
transactions independently. Banks invest in user-friendly interfaces and intuitive features to enhance
self-service options.
10. Quick Deployment with Low/No-Code Platforms:
- Banks adopt low/no-code platforms to accelerate digital transformation initiatives. These platforms
enable rapid development and deployment of digital solutions, ensuring agility and efficiency in banking
operations.

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 1.11 CHALLENGES IN ONLINE AND MOBILE BANKING

1.Shifting Banking Habits:

During the pandemic, online banking usage surged, with UK bank TSB experiencing a 137% increase in
internet banking enrolment since March 2020. As a result of lockdown restrictions, up to 80% of people
now prefer online banking over visiting physical bank branches, leading to closures of such branches
globally.

The adoption of contactless solutions has also increased amid social distancing measures, with
Mastercard reporting a 40% global increase in contactless transactions in 2020. This shift towards digital
banking, coupled with businesses enhancing their e-commerce capabilities, indicates a growing
preference for fully virtual, contactless banking solutions. Additionally, wearable payment devices have
seen increased adoption, with experts predicting a significant market value growth rate between 2021 and
2028.

2.Security Concerns:

Security remains a significant challenge for online banking marketers due to inherent concerns associated
with banking online. Despite banking systems' robustness, cyberattacks and fraudulent activities persist.
Mobile browsers and apps account for 71% of fraudulent bank transactions, often due to poor privacy
habits such as using weak passwords and unsecured networks. Marketers must focus on demonstrating
and explaining online bank system security while educating customers on improving their online privacy
and security practices.

3.Technical Issues:

Internet usage comes with inherent risks of technology and service interruptions, affecting access to
accounts during system instability or downtime. System downtime, whether intentional or accidental, can
cost businesses millions annually and raises concerns about data and fund security. Marketers should
prioritize alleviating customer concerns by assuring them of their funds' safety during technical issues and
adequately communicating planned system downtime.

4.Lack of Personal Relationship:

While online banking usage is widespread, meeting complex customer needs solely through digital
banking can be challenging. Personal relationships with bank staff are often overlooked, yet they play a
crucial role in navigating complex banking scenarios and finding tailored solutions. A blend of online
banking for day-to-day needs and personal relationships with bank staff is ideal. Marketers can achieve
this by informing customers how to access real people while ensuring a streamlined digital banking
experience.

5.The Changing Banking Landscape:

The banking landscape has seen the rise of digital-only banks and FinTechs offering streamlined banking
solutions, posing significant competition for traditional banks. Neobanks have embraced digital to offer

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seamless banking experiences with little to no fees, challenging traditional banks to adopt digital
transformation and adapt their services accordingly. Marketers can reinforce customer loyalty by
highlighting their banks' knowledge, user-friendly platforms, digital product offerings, and transparent
communication as banking behaviours evolve.

1.12 RISK OF MOBILE AND INTERNET BANKING

Potential Risks of Mobile Banking:

1. Differentiation from Online Banking:

-Mobile banking, which involves using a bank's dedicated application to access your account, should be
distinguished from online banking, where users access the bank's services through a web browser on their
devices.

. - The distinction is crucial as mobile banking apps often offer enhanced security features and more
direct communication channels with the bank, compared to accessing the bank's website through a
browser.

2. Security Vulnerabilities:

- While mobile banking apps are generally considered more secure than accessing banking services
through web browsers, they are not immune to security vulnerabilities.

- Scammers may still attempt to create phishing websites or intercept Wi-Fi networks to steal user
credentials. However, the structure and encryption of mobile apps make it more challenging for scammers
to execute these attacks compared to web browsers.

3. Access Points for Breach:

- Security breaches in mobile banking can occur through various access points, including the user's
device, the transmission of data between the device and the bank's server, and vulnerabilities in the bank's
server infrastructure.

- Hackers may exploit weaknesses in any of these access points to gain unauthorized access to sensitive
user information or conduct fraudulent transactions.

4. Loss or Theft of Phone:

- One of the significant risks associated with mobile banking is the potential loss or theft of the user's
mobile device.

- If a user's phone is lost or stolen, scammers could gain access to sensitive banking information stored on
the device, such as saved passwords or login credentials.

- Scammers may exploit this access to initiate fraudulent transactions or bypass security measures, such
as multi-factor authentication codes sent to the user's phone.

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5. Data Hacking:

- Mobile devices are susceptible to malware or Trojans, which can compromise the security of mobile
banking apps.

- Hackers may deploy malicious software onto a user's device, allowing them to intercept sensitive
information, including banking credentials, as it is transmitted between the device and the bank's servers.

- This type of attack poses a significant risk to users' financial security and can lead to unauthorized
access to their accounts and sensitive personal information.

6. Security Vulnerabilities in Banking Apps:

- Reports indicate that many mobile banking apps contain security vulnerabilities, which could potentially
expose users' personal and financial information to hackers.

- These vulnerabilities may include weaknesses in encryption protocols, insufficient authentication

measures, or flaws in the app's code that could be exploited by malicious actors.

- Users should be aware of these potential risks and take steps to mitigate them, such as regularly
updating their mobile banking apps and adopting strong security practices, such as using unique
passwords and enabling biometric authentication where available.

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 1.13 The Top 10 Mobile Banking Risks and Vulnerabilities and frauds

1. Manipulated texts and calls claiming to be from your bank

2. Phishing links in emails and fake fraud alerts
3. Physical phone theft and hacking
4. Fake mobile banking apps
5. “Keylogging” malware that’s hidden in other apps
6. Trojan overlays that misdirect your transactions
7. Mobile check deposit scams
8. SIM swaps that take control of your phone
9. Wi–Fi hacking (man-in-the-middle attacks)
10. Personal banking details available for purchase on the Dark Web

Banks spend millions to keep their customers safe. But criminals are always looking for new ways to
break through cybersecurity defences.

1. Deceptive Texts and Calls:

- Scammers employ manipulation tactics through fraudulent texts and calls, pretending to represent
legitimate banks or financial institutions.

- These messages often convey alarming messages about security breaches or suspicious activities in
the recipient's account, urging them to take immediate action.

- By using techniques like caller ID spoofing, scammers create a false sense of urgency, tricking
individuals into disclosing sensitive information or initiating unauthorized transactions.

2. Phishing Emails:

- Phishing emails are a common method used by scammers to deceive recipients into revealing personal
information or login credentials.

- These emails typically mimic official correspondence from banks, utilizing familiar logos and urgent
language to prompt recipients to click on malicious links or attachments.

- Clicking on these links may lead to fake websites designed to capture sensitive data or install malware
on the recipient's device, compromising their security.

3. Device Theft and Hacking:

- Unsecured or stolen mobile devices pose a significant risk, as they can provide scammers with
unauthorized access to sensitive accounts and data.

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 - Sophisticated hackers may exploit vulnerabilities in device security to gain entry into accounts or
manipulate payment systems without permission.

- Even with security measures in place, scammers may utilize specialized software to bypass protections
and access confidential information stored on the device.

4. Fake Mobile Banking Apps:

- Scammers create counterfeit mobile banking applications that closely resemble legitimate banking
platforms, aiming to deceive users into entering their login credentials.

- These fake apps often feature convincing designs and branding, making it difficult for users to discern
them from authentic applications.

- Users who unknowingly download these fraudulent apps inadvertently provide scammers with access
to their accounts, putting their financial information at risk.

5. Malware Threats:

- Malicious software, such as keyloggers and Trojans, pose a significant threat to mobile banking
security by compromising user credentials and personal data.

- Keyloggers record keystrokes, capturing sensitive information like usernames, passwords, and account
details.

- Trojans may infiltrate legitimate banking applications, overlaying fraudulent interfaces to trick users
into authorizing unauthorized transactions or disclosing confidential information.

6. Mobile Check Deposit Scams:

- Scammers exploit mobile check deposit features by sending counterfeit checks to unsuspecting
individuals, persuading them to deposit the checks and transfer a portion of the funds back.

- Victims are often enticed into participating in overpayment scams or fictitious business transactions,
resulting in financial losses when deposited checks are later found to be fraudulent.

7. SIM Swap Scams:

- SIM swap scams involve fraudsters gaining control of a victim's mobile phone number by
impersonating the legitimate account holder or manipulating mobile carrier representatives.

- Once in control of the victim's phone number, scammers can intercept calls, texts, and data, potentially
bypassing security measures such as two-factor authentication (2FA) to access banking accounts.

8. Wi-Fi Hacking:

- Man-in-the-middle attacks, executed through compromised Wi-Fi networks, enable scammers to

intercept and manipulate data transmitted between mobile devices and banking servers.

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 - By exploiting vulnerabilities in Wi-Fi routers or using specialized software, hackers can eavesdrop on
sensitive information, including login credentials and financial transactions.

9. Dark Web Exploitation:

- Data breaches at banks and financial institutions may lead to the exposure of personal banking details,
which can be sold on the Dark Web for illicit purposes.

- Identity thieves and fraudsters may purchase or trade stolen banking information, using it to perpetrate
various forms of financial fraud, including unauthorized transactions and identity theft.

- Additionally, data aggregators used by third-party financial apps may inadvertently expose user data to
security breaches, compromising user privacy and financial security.

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 1.14 OPPORTUNITIES IN ONLINE AND MOBILE BANKING

Despite these challenges, digital banking also opens a variety of opportunities, both for quality of service
and the potential for profit. It’s still very much in a bank’s interest to take the digital plunge.

Opportunities in online and mobile banking present a range of advantages for banks, including enhanced
services, attracting new customers, and implementing innovative solutions. Despite the obstacles digital
banking may pose, it's essential for banks to capitalize on these opportunities to remain competitive and
meet the changing needs of customers. Let's break down these opportunities in simpler terms:
1. Improved Services:
- Digital banking enables banks to interact with customers in novel ways, enhancing their experience
and creating new revenue streams. For example, banks can offer loan information and online application
options, making it simpler for customers to access services from the comfort of their homes.
2. Customer Acquisition:
- With digital and mobile banking being the norm, especially for younger generations opening their first
accounts, attracting new customers hinges on providing user-friendly digital platforms. Moreover, digital
banking empowers banks to gather insights into emerging trends, aiding in predicting shifts in the
banking landscape.
3. Key Innovations in Banking:
● Social Media Integration and Cloud Services:
- Banks can engage with customers directly through social media and ensure data security through
cloud storage solutions.
● Convenience and Accessibility:
- Digital banking offers customers unprecedented convenience, including features like remote check
deposits and mobile payments, catering to their evolving needs.
● Enhanced Security Measures:
- While digital banking poses security challenges, technological advancements such as biometric
authentication and artificial intelligence help bolster customer data protection.
In essence, embracing the opportunities presented by online and mobile banking allows banks to enhance
services, expand their customer base, and implement innovative solutions to meet evolving customer
demands. This proactive approach is essential for banks to maintain competitiveness and address the
evolving landscape of banking preferences.

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 1.15 Role of online banking services achieving competitive advantage

Commercial banks have enthusiastically embraced a suite of new electronic financial services, leveraging
them to bolster their competitive edge. These digital offerings have played a pivotal role in elevating the
quality of services provided by banks and keeping them aligned with the rapid advancements in
technology and changing customer behaviours. With the increasing dependence on the internet and
smartphones in people's daily lives, these electronic services have become indispensable for banks to stay
relevant and competitive in the interconnected world of today. Moreover, the adoption of these electronic
services has led to cost savings for both banks and customers, while also enhancing the reputation of
banks in the Jordanian market, consequently boosting their market share.
The incorporation of electronic financial services has not only facilitated quicker responses to customer
demands but has also simplified the process of conducting financial transactions. The adoption of these
services is primarily motivated by the necessity to meet customer expectations and ensure their
satisfaction. Furthermore, the competitive advantage gained by banks serves as a significant driver for
other banks to keep pace or even exceed them, given the similarity of banking services across institutions.

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 1.16 Advantages and Disadvantages of Online Banking

Advantages of Online Banking:

1. Enhanced Interest Rates:

- Online banks offer higher interest rates compared to traditional banks due to lower operational costs.

- This translates into better returns for customers, as top online savings accounts provide annual
percentage yields (APYs) around 1.50%, whereas traditional banks may offer rates as low as 0.01% APY.

2. Reduced Fees:

- Online banks typically charge minimal or no fees as they don't have to maintain physical branches.

- This means that customers are less likely to incur monthly service costs, overdraft fees, or fees for
using debit cards or checks, resulting in significant cost savings over time.

3. Environmental Sustainability:

- Online banking minimizes paper usage by del1.12indexivering all correspondence electronically,

contributing to environmental conservation efforts.

- With simplified data storage through USB sticks or cloud storage, the need for physical paperwork is
significantly reduced, further reducing the environmental footprint of banking operations.

4. Enhanced Accessibility:

- Online banking offers unparalleled 24/7 access to accounts and services from any location with an
internet connection.

- Customers can conveniently manage their finances anytime, anywhere, and receive immediate
assistance from customer support via phone, often available around-the-clock, seven days a week.

5. Efficient Transactions:

- Online banks prioritize efficiency in money transfers and deposits, providing faster and more
streamlined transaction processes compared to traditional banks.

- Features like mobile check deposits and online fund transfers enhance transactional efficiency,
allowing customers to conduct banking activities with ease and convenience.

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Disadvantages of Online Banking:

1. Lack of Physical Branches:

- The absence of physical branches limits in-person interaction with bank staff, potentially restricting
access to additional financial services or special deals that may be available in traditional
brick-and-mortar banks.

- Additionally, some customers may prefer face-to-face interactions when conducting certain banking
transactions, which may not be possible with online banking.

2. Tech-Related Service Disruptions:

- Online banking operations are reliant on system stability and internet connectivity, making them
susceptible to service disruptions during technical issues or internet outages.

- Customers may experience difficulties accessing their accounts or performing transactions if there are
interruptions in internet service or if the bank's servers are temporarily inaccessible due to maintenance or
other technical issues.

3. Security Concerns:

- Despite the implementation of security measures, online banking platforms remain vulnerable to cyber
threats, including hacking and phishing attacks, which can compromise customer data and lead to identity
theft.

- Customers need to be vigilant and take precautions such as using strong passwords, avoiding insecure
networks, and regularly monitoring their accounts to mitigate the risk of security breaches.

4. Deposit Limitations:

- Online banking may pose challenges for individuals and businesses making significant deposits due to
limitations on daily or monthly mobile deposit amounts.

- Certain types of checks, such as handwritten company checks with specific features, may not be easily
processed through online deposit systems, requiring customers to visit physical branches for depositing
such checks.

5. Delayed Fund Availability:

- While online banking offers quick processing of deposits, funds may not be immediately available for
access, as it can take up to three business days for deposits to be reviewed and funds to become
accessible.

- This delay in fund availability may inconvenience customers who require immediate access to
deposited funds for various financial needs.

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 1.17 UPI: UNIFIED PAYMENT INTERFACE

The Unified Payments Interface (UPI) has brought about a significant transformation in the way
transactions are conducted in India, leading the nation towards a cashless economy. Since its inception in
2016, UPI has emerged as a groundbreaking payment system, propelling India into a future powered by
seamless digital payments. Its user-friendly interface and convenience have simplified payment
procedures, making it the preferred mode of payment for many Indians. The scan-and-pay UPI system is
now widely used across various transactions, ranging from high-value luxury purchases to small
transactions like buying a cup of tea for just 10 rupees.

Rise of UPI:

Launched by the National Payments Corporation of India (NPCI), UPI has rapidly gained momentum and
revolutionized transactions in the country. Currently, there are over 300 million UPI users and 500 million
merchants utilizing the platform for their businesses. This payment infrastructure allows users to link
multiple bank accounts to a single mobile application, facilitating real-time peer-to-peer transactions with
just a few taps on a smartphone. UPI's accessibility and ease of use have bridged the gap between urban
and rural areas, making it immensely popular nationwide.

Empower Financial Inclusion:

One of UPI's key strengths lies in its ability to empower even the most underserved segments of society.
By facilitating instant and hassle-free transactions, UPI has brought millions of unbanked and
underbanked individuals into the formal banking system. This inclusion has opened avenues for financial
services such as savings accounts, loans, and insurance, enabling individuals to build a secure financial
future. Moreover, UPI has empowered small businesses, street vendors, and rural communities by
providing them with a digital payment infrastructure that is convenient, cost-effective, and secure.

Catalyst for Economic Growth:

Beyond financial inclusion, UPI has emerged as a catalyst for economic growth and development in
India. By reducing dependence on cash transactions, UPI has facilitated a transition towards a transparent
and accountable economy. The availability of transaction data through UPI has fuelled the growth of
fintech companies and startups, driving innovation in the financial sector and creating employment
opportunities.

Seamless Integration and Interoperability:

UPI's success can be attributed to its seamless integration across various banking platforms and
interoperability with numerous third-party applications. Its open architecture allows developers to create
innovative solutions, resulting in a vast ecosystem of UPI-enabled apps offering a wide range of services.
This interoperability has simplified the user experience, eliminating the need for multiple payment apps
and enabling effortless transactions across different platforms.

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Innovation and Future Prospects:

The introduction of UPI 2.0 brought additional features such as an overdraft facility, invoice payments,
and signed intent, further enhancing the user experience. UPI is constantly evolving, with recent
developments including lending through the UPI stack, linking UPI to RuPay cards, and increasing
interchange income for prepaid cards and credit cards. This ongoing innovation reflects NPCI's
commitment to staying ahead of technological advancements and meeting the evolving needs of the
Indian population.

Furthermore, UPI is poised to expand its reach beyond borders, making cross-border transactions
seamless and cost-effective. India's collaboration with nations like Singapore, the UK, Australia, Canada,
and the US in linking their digital payment systems will further enhance UPI's global presence and
streamline cross-border inward payment experiences.

In conclusion, UPI has revolutionized India's payment sector and is set to propel the country towards a
digital future. With its continued evolution and innovation, UPI will leave an indelible mark on the global
digital payments landscape, empowering millions and driving economic growth.

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 2. RESEARCH METHODOLOGY

2.1 STATEMENT OF PROBLEM

The widespread adoption of mobile and internet banking signifies a significant shift in consumer banking
behaviour. However, there is a notable gap in understanding the nuanced factors influencing consumer
adoption and usage patterns of these digital platforms. This lack of comprehensive insight limits our
ability to fully grasp the implications of digital banking adoption on consumer behaviour and its broader
impact on the banking landscape

2.2 OBJECTIVES OF THE STUDY

1. Investigating what consumers prefer in terms of features, security, and convenience in mobile and
internet banking.

2. Identifying the main factors that influence consumers to adopt mobile and internet banking,
including their demographics, readiness for technology, and perceptions of usefulness and ease of use.

3. Examining how consumers use mobile and internet banking services, including how often they use
them, what types of transactions they conduct, and their preferred devices or platforms.

4. Evaluating how satisfied consumers are with mobile and internet banking services, considering
aspects such as reliability, speed, customer support, and overall user experience.

5. Contrasting consumer behaviour and preferences across different demographic groups (e.g., age,
income, education, geography) to uncover differences in adoption rates, usage patterns, and satisfaction
levels.

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 2.3 HYPOTHESIS OF THE STUDY

Hypothesis is a testable prediction which is expected to occur. It can be a false or a true statement that is
tested in the research to check its authenticity. The hypothesis should be clear and precise. It should be
limited in scope and must be specific. There are two types of hypotheses, namely:

➢ Null hypothesis (Ho)

➢ Alternate hypothesis (H1)

● Null Hypothesis (H0): There is no significant association between platform preferences (mobile
applications, websites, etc.) and satisfaction levels with the functionality of the platforms.

Alternative Hypothesis (H1): There is a significant association between platform preferences and
satisfaction levels with the functionality of the platforms.

● Null Hypothesis (H0): There is no significant difference in the frequency of online banking
usage across different time intervals (daily, weekly, monthly, rarely).

Alternative Hypothesis (H1): There is a significant difference in the frequency of online banking usage
across different time intervals.

● Null Hypothesis (H0): There is no significant association between satisfaction levels with
online banking platforms and the frequency of usage.

Alternative Hypothesis (H1): There is a significant association between satisfaction levels with online
banking platforms and the frequency of usage.

● Null Hypothesis (H0): There is no significant association between respondents' anticipation of

future usage of online banking services and their current usage patterns.

Alternative Hypothesis (H1): There is a significant association between respondents' anticipation of

future usage of online banking services and their current usage patterns.

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 2.4 SCOPE OF STUDY

This study will focus on exploring consumer behaviour and adoption trends of mobile and internet
banking services within specific demographic segments or geographical areas. It aims to investigate
factors such as convenience preferences, satisfaction levels, and other relevant aspects influencing
consumer decisions. The research seeks to contribute to a deeper understanding of consumer behaviour in
digital banking.

2.5 LIMITATION OF STUDY

1. sample may not represent the entire population accurately, leading to potential biases in the findings.
For example, if survey respondents are predominantly tech-savvy individuals, it may not reflect the
behavior of the broader population.

2. Participants may provide inaccurate or biased responses, especially in online surveys, due to social
desirability bias or memory recall issues.

3. The reliability and validity of data collected, especially through online surveys or secondary data
sources, may be questionable. Inaccurate or outdated information can affect the integrity of the findings.

4. Findings from a specific geographical area or demographic group may not be generalizable to other
regions or populations, limiting the external validity of the study.

5. Due to privacy reasons data collection from respondents was not possible limiting the survey of my
topic.

6. Technical glitches and bugs, server down may disrupt mobile and internet banking services.

7. Not all banking services are available on the banking websites and application, some of them require
physical presence in the banks.

8.Dependence on internet connectivity can lead to difficulties accessing banking services in areas with
poor network coverage.

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 2.6 RESEARCH METHODS

Primary as well as secondary research was employed in this project.

➢ Primary research is the first-hand research that the researcher collects, by interacting with the sample
population and the conclusions and analysis he/she draws from the data that has been obtained.

➢ Primary research in this project involves a survey answered by 100 individuals to understand and
analyse as to how online banking is percieved and used by consumers

➢ Secondary research is the background research done by the researcher on already existing information
regarding the topic.

➢ This helps the researcher in determining whether previous research papers have been written on that
particular topic. It also helps the researcher in building a base for the questions to be asked to the sample
population.

➢ In this project, the secondary research involves reading and examining various research papers,
articles, browsing of websites to understand and learn in depth about mobile and internet banking and
consumer taste likes dislikes about mobile and internet banking

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 3.0 LITERATURE REVIEW

Sindhu Singh, R. K. Srivastava’s-Understanding the intention to use mobile banking by existing

online banking customers. The start of wireless technology and the widespread use of mobile devices
have opened up exciting business opportunities for financial institutions and service providers. With the
emergence of smartphones, customers now have access to a wide range of services and information
anytime, anywhere. Technologies like GPRS, EDGE, and 3G have transformed mobile devices from basic
communication tools to multifunctional devices. The latest report by the International Telecommunication
Union reveals that global mobile penetration has surpassed 7.1 billion users. A successful mobile banking
system promises to reduce the cost of setting up physical bank branches, tap into the large market of
unbanked individuals, and attract tech-savvy customers. In a country like India, where mobile phone
dispersion exceeds the number of bank accounts, mobile banking presents a significant opportunity to
provide financial services to the non-banking population. With nearly 864 million mobile phone
subscribers, India ranks second in mobile penetration, while the number of bank branches stands at
approximately 100,000. Mobile banking is a cost-effective way for banks to expand their reach, costing
only 2 percent of branch expenses and 10 percent of ATM expenses. The rapid growth of the smartphone
market in India, coupled with affordable pricing, is driving the adoption of mobile banking. However,
challenges such as limited broadband connectivity and lower internet usage pose barriers to mobile
banking adoption in India. Despite these challenges, the number of mobile banking users in India is
growing rapidly, reaching 53 million in 2013. Banking systems in India offer various types of mobile
banking services, including push-type services via SMS and pull-type services such as IMPS, bank
applications, USSD, SMS-based banking, and internet-based banking. Existing studies on mobile banking
adoption have revealed relatively low adoption rates compared to other banking channels. Although
mobile banking offers numerous advantages, its adoption in India is still in its early stages compared to
developed countries like the USA, UK, and Finland. There is a lack of empirical studies on mobile
banking adoption in India, highlighting the need to fill this research gap. This study aims to address this
gap by empirically establishing a model to understand the factors influencing mobile banking adoption in
India.

N. Thamarai Selvan, B. Senthil Arasu, M. Sivagnanasundaram’s-Understanding the intention to

use mobile banking by existing online banking customers. Over the past twenty years, things have
changed a lot in how businesses provide services, all thanks to technology. Think about ATMs, online
banking, or even ordering food from your phone - these are all examples of how technology has made
things easier. Traditional banks used to rely on face-to-face interactions at their branches, but now, they're
also using things like ATMs and the internet. And now, there's mobile banking too, which means doing
your banking stuff using your phone. India has a lot of people using mobile phones, and this number
keeps growing. But even though lots of people have phones, not everyone is using them for things like
banking. Mobile banking in India is still new, and not many people are using it yet, especially in rural
areas. We need to understand why some people use mobile banking and why others don't. That's where
this paper comes in. We want to figure out why people who bank with the State Bank of India (SBI)

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choose to use mobile banking. We're using something called the Technology Acceptance Model (TAM) as
a guide. This model helps us understand why people use technology. We're tweaking it a bit to fit mobile
banking because the original model was more about how easy and useful technology is at work. The
paper discusses the evolution of service delivery channels in the banking industry, focusing on the
emergence of mobile banking in India. Despite the widespread use of mobile phones, mobile banking
services are still in their early stages, with low transaction volumes, especially in rural areas.
Understanding customer acceptance and adoption factors is crucial for developers. The study aims to
investigate these factors among State Bank of India (SBI) customers using a modified version of the
Technology Acceptance Model (TAM).

Chandrakumar Thangavel, Ramya Thangavel, Elangovan Ramanujam, Deepthi Tabitha Bennet,

Preethi Samantha Bennet’s-Consumer Perception of Internet Banking and Mobile Banking Using
Twitter Analytics-Internet banking, which you might also hear called online banking or virtual banking,
is when you use a website to do your banking stuff, like paying bills or sending money. Mobile banking is
pretty much the same, but it happens on your phone or tablet. Now, there's this thing called FinTech,
which is all about using technology to make banking easier. It's really important, especially during tough
times like the COVID-19 pandemic, when we're trying to stay safe and avoid crowded places. Digital
banking, which includes both mobile and online banking, has become a big deal because it's changed the
way we do banking. During the pandemic, internet and mobile banking became super popular. They're
now considered essential services, and they make people feel more connected to their banks. The passage
discusses the significance of digital banking, encompassing internet banking, mobile banking, and
FinTech, in the financial landscape, especially amid the COVID-19 pandemic. Digital banking, including
internet and mobile banking, has become essential for individuals and businesses, offering convenience,
safety, and efficiency compared to traditional banking methods. The accelerated growth of digital banking
during the pandemic highlights its crucial role in facilitating financial transactions remotely, minimizing
physical interactions and waiting times. Emphasizes the importance of understanding customer
sentiments through financial opinion mining, particularly as more individuals embrace FinTech solutions.
Financial institutions need to gather feedback from users to improve their products and services
continuously. The Reserve Bank of India reports a significant increase in digital transactions, indicating
the growing reliance on digital banking platforms in India. Overall, digital banking serves as a technology
platform facilitating transactions and providing a wide range of financial services, enhancing convenience
and accessibility for customers. Features like using your fingerprint to log in, which makes online and
mobile banking even easier. But with so many people using these services now, it's important to know
how people feel about them. Opinions matter, even when it comes to money stuff. That's why it's really
important for banks to listen to what people think about digital banking. By hearing about people's
experiences, banks can make their services even better. Lots of folks, whether they're individuals or
businesses, use digital banking for everything from paying bills to applying for loans, all without ever
having to leave their homes. In India, digital banking is a big deal, with billions of rupees being moved
around digitally every year. It covers things like paying bills, sending money, depositing cheques, and
even applying for loans or setting up pension plans - all without having to go to a physical bank branch.

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M. L. Ashoka, T. S. Rakesh, S. Madhushree-Consumer Perception and Satisfaction Towards
Internet Banking and Mobile Banking with Reference to Nationalized Banks in Rural India.In
India, banking has changed a lot because of technology. Even though things are different now, one thing
hasn't changed: people still need to trust their banks. Banks have a big job to do - they have to serve a lot
of people all over the country. Nowadays, banks are focusing more on understanding what customers like
you need. Our finance minister once said that almost everyone in India is using banks now. This happened
because of a program called Pradhan Mantri Jan-Dhan Yojana (PMJDY) started by Prime Minister
Narendra Modi. It helped millions of people open bank accounts quickly. Now, lots of people are using
these accounts for different government programs. The government wants to move towards a society
where we use less cash, and banks will play a big part in this. But to do this, banks need to use better
technology. People are also becoming more aware and want things like internet banking and mobile
banking. Internet banking is getting popular in India. It's when you use the internet to do banking stuff
like checking your account or sending money. But some people worry about safety and privacy when
using the internet for banking. So, this study is all about understanding why people use internet and
mobile banking and what they think about it. We want to know if people are happy with these services
and what problems they face. This will help us make banking better for everyone The Indian banking
industry has witnessed significant advancements with the integration of technology, marking a shift in its
operational framework. However, the core values of trust and confidence in banking institutions remain
unchanged. The industry faces the challenge of catering to the vast market in India, prompting companies
to prioritize customer-centric approaches. The government's initiatives, such as the Pradhan Mantri
Jan-Dhan Yojana (PMJDY) launched by Prime Minister Narendra Modi in 2014, have played a crucial
role in promoting financial inclusion, with millions of bank accounts opened across the country. The
study aims to explore various aspects related to internet and mobile banking in the context of Belthangady
Taluk. It seeks to identify the factors influencing the adoption and usage of these banking services, assess
customer satisfaction, and understand the barriers hindering their usage in the region.

Deepak Chawla &Himanshu Joshi’s-Attitude as a mediator between antecedents of mobile banking

adoption and user intention. In their study, the researchers wanted to understand why people in India
choose to use mobile banking. They noticed that previous studies didn't look closely enough at why
people find mobile banking useful. So, they talked to bankers and looked at other studies to come up with
a model that explains why people like or dislike mobile banking in India. They asked 367 people about
their thoughts on mobile banking and found seven important reasons why someone might like it. They
also found that things like trust, how easy it is to use, and how well it fits into your life all play a big role
in whether someone wants to use mobile banking or not. Interestingly, they didn't find much difference in
how people feel about mobile banking based on things like age or income. But they did find that factors
like gender and household income can affect how likely someone is to actually use mobile banking.
Overall, their study helps us understand why some people like using mobile banking in India and why
some people don't. It also shows us that things like trust and convenience are really important when
deciding whether to use mobile banking.

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PS Bamoriya, P Singh’s-Issues & Challenges in Mobile Banking in India: A Customers’
Perspective.In their study, researchers delved into the transformative impact of mobile banking, fuelled
by the rapid advancements in mobile communication technology, which is one of the fastest-growing
sectors globally. Recognizing the significance of this evolving landscape, the study aimed to uncover the
barriers hindering the widespread adoption of mobile banking services. Using a descriptive design
approach, the researchers sought to empirically explore the key issues perceived critical for adoption by
both current users and non-users of mobile banking. The investigation unearthed several notable concerns
revolving around the domains of banks, mobile handsets, and telecom operators. These concerns included
mobile handset operability, security/privacy measures, standardization of services, customization options,
downloading and installing application software, and the quality of telecom services. Findings from the
study highlighted that, from the perspective of consumers, the critical issues encompassed the operability
of mobile handsets with banking applications, the assurance of security and privacy, and the consistency
and standardization of services across various banking platforms and telecom networks. While
acknowledging the inherent limitations of the research, the implications drawn from the results offer
actionable insights and practical recommendations for all stakeholders involved in the mobile banking
ecosystem. This includes banks, mobile phone manufacturers, and telecom service providers, with the
aim of addressing these identified concerns and facilitating the seamless adoption and utilization of
mobile banking services by a broader spectrum of users. The study identifies critical issues in mobile
banking from customers' viewpoint. Key concerns include mobile handset operability due to diverse
models in the market. Recommendations include coordination between banks and handset manufacturers
for compatibility. Privacy and security are significant worries, urging banks to educate customers and
establish joint policies with telecom operators. Lack of standardization complicates services, suggesting
the need for uniform mobile banking standards. While certain issues like application software and
telecom service quality are less concerning for urban customers, overlooking them may hinder nationwide
mobile banking adoption. Overall, the study aims to guide stakeholders in addressing customer concerns
and improving mobile banking services, acknowledging the need for similar research from service
providers' perspective.

Dr. R. Sathya Devi, Ms. Vrindha. A’s-A STUDY ON CUSTOMER SATISFACTION AMONG ONLINE
BANKING. In the era of modern banking, there's been a significant evolution in how banks interact with
their customers. This includes various distribution channels like automated teller machines (ATMs),
phone banking, tele-banking, PC banking, and the relatively recent addition of internet banking. These
developments have greatly improved processes such as fund transfers, checking account balances, paying
bills, and purchasing financial instruments. The introduction of internet banking, in particular, has
revolutionized the banking sector by enhancing efficiency in service delivery. Now, customers can
conduct transactions seamlessly from anywhere in the country, whether they're near or far. This
convenience aligns with the customer-centric approach adopted by banks, where the focus is on meeting
the needs and preferences of the customer. Electronic banking, or online banking, plays a crucial role in
enhancing business efficiency and service quality. By offering convenient and accessible banking
solutions, banks can not only attract new customers but also retain existing ones. This emphasis on
customer satisfaction underscores the importance of modern banking practices in fostering positive

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relationships with customers and ensuring a seamless banking experience. This study examines the
growing preference for online banking services in modern banking, focusing on service quality, customer
satisfaction, and consumer preferences. With 107 participants surveyed using a structured questionnaire,
the study identifies key factors influencing online banking adoption. Results highlight the importance of
network stability, availability in urban and rural areas, and strengthened security measures through robust
online application platforms. Additionally, promotional strategies are crucial for increasing awareness of
online banking services. Despite limitations such as service problem resolution, small sample size, and
customer trust issues, modern banking services have gained positive feedback from consumers,
particularly for their efficiency in services such as ATM, net banking, mobile banking, RTGS services,
and card facilities. Mobile banking emerges as the most convenient service, leveraging smartphone
technology and routing algorithms for efficient transactions.

P Ambiga Devi and Malarvizhi V. In today's competitive banking world, banks are trying hard to keep
their customers happy by offering new and convenient services through e-banking. They're constantly
adding new ways for customers to access their services online, making banking just a click away. But in
India, many people don't know much about e-banking, and those who do are worried about things like
hacking and privacy. A recent study looked into how much people know about e-banking and what they
expect from it. The study found that while people generally like using e-banking, they often run into
technical and administrative issues. To encourage more people to use e-banking, banks need to make sure
they offer good customer service. This means being there to help customers with any problems they might
have and making sure they feel safe and supported when using e-banking. This approach is key to
building trust and making e-banking a success.

Purnima Chugh’s-A study of consumer analysis of internet banking in Hissar.Looking at the data, it's
clear that many people are using mobile banking on their smartphones. But not everyone finds it easy –
about 39% of customers aren't satisfied with how mobile banking works on their phones. However, most
folks are comfortable using mobile banking without needing online banking. They like the convenience it
offers and are eager to learn more about it. People feel that mobile banking is safe and easy to handle,
letting them check their transactions anytime, anywhere. While many are aware of mobile banking, not
everyone is interested in trying it out. Some folks find it useful for their daily needs, while others don't
use it as much and feel they don't have enough experience with it. When it comes to safety, most people
trust mobile banking to keep their information secure. They also appreciate how it saves them time,
energy, and money. However, opinions differ on how important and useful mobile banking really is.
Overall, mobile banking is seen as a valuable tool in today's tech-savvy world. It's essential to spread
awareness about its benefits and ease of use to help more people feel comfortable using it. This way, we
can keep moving forward and improving our banking experience while supporting the growth of our
economy. The survey reveals that a significant portion of respondents utilize mobile banking services
through smartphones, with 61% finding it easy to use, while the remaining 39% express dissatisfaction.
Most users find mobile banking secure, convenient, and accessible, enabling them to check transaction
history and statements anytime, anywhere. Additionally, 87.5% of respondents are aware of mobile
banking, with 76% interested in enrolling for the service and 69% considering it essential for daily life.
However, only 55% of respondents report a positive experience in operating mobile banking, and while

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82% believe it is secure, 18% express concerns about its safety. Despite this, the majority agree that
mobile banking offers convenience, saving time, energy, and money. Most respondents also consider
mobile banking services important for customers, highlighting its potential to enhance banking functions
and contribute to India's economic development. Overall, the study underscores the need for increased
awareness about mobile banking's secure and user-friendly features to further accelerate its adoption and
support the banking industry's growth in India.

Shyam R. Sihare’s-Role of m-Banking for Indian Rural Consumers, its Adaptation Strategies, and
Challenges: Consumer Behavior Analysis. In today's world, technology helps us do things accurately
and quickly. But in rural India, people don't use it as much as in cities. Mobile banking is one way
technology is used in rural areas. It lets people do banking stuff on their phones. This paragraph talks
about a study on how rural folks feel about mobile banking and how it can be better for them. It also
mentions that many rural folks have phones because they're cheap and easy to use. But some people
worry about things like safety and transparency when using mobile banking. Overall, the paragraph says
that mobile banking can help rural areas a lot, but we need to make sure people feel safe and understand
how it works. In conclusion, India's progress in technological advancements for societal modernization is
not as significant as in developed nations, but the high mobile penetration due to cost-effective devices
has led to increased utilization of basic services like mobile banking. Despite every bank offering mobile
services, widespread adoption remains elusive among the general public. The rapid technological
advancements in mobile devices have enabled quick and convenient operations from anywhere, anytime.
This paper focuses on rural Indian mobile consumers and their challenges in adopting mobile banking,
including difficulties in operating mobile devices and limited availability of resources like ATMs and
online banking in rural areas. Additionally, hurdles such as technology illiteracy, safety and security
misconceptions, and lack of awareness hinder mobile banking adoption in rural India. Despite these
challenges, the widespread use of mobile phones in rural areas presents an opportunity for banks to reach
this population through mobile banking services, albeit with the need for targeted adaptation strategies
and increased awareness efforts.

P.S. Aithal’s Customer Perspective on Online Mobile Banking in India - An Empirical Study.The
paragraph discusses how technology, specifically mobile banking, has impacted the banking industry in
India. It outlines the objectives of a research paper focusing on online mobile banking and its benefits,
including a review of global research on online banking trends. Additionally, it highlights the importance
of mobile banking in India due to factors such as affordable mobile devices, accessibility of services in
rural areas, and economic conditions. The paragraph also references an empirical study on customer
acceptance of mobile banking, which explores factors influencing its usage through qualitative research
methods.

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Singh, Inderpal, Nayyar, Anand, LE, Doan Hong & DAS, Subhankar ‘s -A conceptual analysis of
internet banking users’ perceptions: An Indian perceptive. Success of the Indian banking industry
post-1991, attributed to the concept of Liberalization, Privatization, and Globalization (LPG). It
highlights electronic banking (e-banking) as a significant innovation, particularly internet banking, which
has become a major development in the financial service sector. The research mentioned aims to
empirically examine the perceived benefits and users' perception of internet banking in selected public
and private sector banks in Punjab. It utilized an exploratory and descriptive research design, with a
sample selected through quota sampling. The study involved 480 respondents, and data were collected
using structured questionnaires through personal interviews. Descriptive analysis techniques and
independent sample t-test were employed to analyze the questionnaire data, revealing no significant
difference in the overall internet banking service quality between public and private sector banks
concerning perceived effectiveness, time, and employee performance.

Nidhi Singh, Neena Sinha’s-A Study on Mobile Banking and its Impact on Customer's Banking
Transactions: A Comparative Analysis of Public and Private Sector Banks in India.The paragraph
delves into the landscape of mobile banking within India, showcasing a significant disparity between the
vast number of mobile users and the relatively low adoption rate of mobile banking services. It outlines
several contributing factors to this phenomenon, including the necessity for stronger collaboration
between banking institutions and telecommunication companies, challenges related to accessibility,
financial constraints, and a general lack of awareness among the populace. The paper sets out to
comprehensively analyse the perspectives and expectations held by customers regarding mobile banking
services, aiming to understand how these services impact their overall banking experience. Furthermore,
it seeks to evaluate the distinct characteristics of mobile banking systems across ten selected banks,
spanning both public and private sectors. Overall, the paragraph underscores the critical importance of
raising awareness and promoting mobile banking services to not only enhance customer experience but
also to drive wider adoption among the populace, thereby ushering in a more digitally inclusive banking
landscape

Sindhu Singh’s-Measuring E-Service Quality and Customer Satisfaction with Internet Banking in
India.The findings of a study on internet banking service quality and customer satisfaction in the Indian
banking sector. It identifies three new dimensions of internet banking service quality: responsiveness,
efficiency, and perceived credibility, in addition to confirming the importance of perceived credibility
from previous research. These dimensions significantly influence customer satisfaction, with
responsiveness having the most substantial impact, followed by efficiency and perceived credibility. The
study emphasizes the importance of these dimensions in enhancing customer satisfaction and suggests

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that banks should focus on improving their internet banking service quality to gain a competitive edge.
Additionally, the study highlights customer expectations regarding internet banking, including accurate
responses, personalized attention, and the availability of services 24/7. It stresses the significance of a
user-friendly website and continuous enhancement of security measures to ensure customer trust and
satisfaction. The study's findings have implications for the digital payment industry in India and other
Asian countries, especially in the context of the government's push for a cashless economy
post-demonetization. In conclusion, the study identifies critical dimensions of internet banking service
quality and their impact on customer satisfaction in the Indian banking sector. It suggests practical
measures for banks to improve their internet banking services and emphasizes the need for further
research to explore additional service quality dimensions and their applicability to other
technology-enabled banking services.

Madhurima Deb, Ewuuk Lomo-David’s-An empirical examination of customers’ adoption of

m-banking in India. The study discovered a positive relationship between perceived usefulness,
perceived ease of use, and social influence towards developing a positive attitude towards mobile banking
(m-banking). However, there was no evidence supporting the influence of factors like FC (perceived
financial cost), benevolence, and privacy and security on attitude towards m-banking. Nonetheless, the
study did find a relationship between attitude towards m-banking and the intention to adopt m-banking. In
terms of practical implications, the study suggests that enhancing customers' perceptions of benevolence
and privacy and security could increase m-banking adoption. This implies that managers can focus on
improving these specific aspects to encourage more customers to adopt m-banking. Regarding its
originality and value, the study is one of the few empirical investigations into m-banking adoption in
India. It builds upon established theories like Technology Acceptance Model (TAM) and Diffusion of
Innovations (DOI) to develop an advanced conceptual model specifically for m-banking adoption. By
addressing factors not adequately perceived by customers, managers can make improvements that
facilitate the adoption of new technology, as highlighted in the study's findings.

Shamsher Singh’s-Impact of adoption of mobile banking in Delhi. Internet technology is like the third
big change after farming and factories. Now that we have phone and internet banking, India is moving
towards mobile banking. Mobile banking has grown a lot faster than ATMs and online banking did. It
took about twenty years for ATMs to become popular and only a decade for online banking. Now, India is
on its way to having the second-largest number of mobile users in the world after China. This means both
phone companies and banks are excited to use mobiles for banking, like transferring money, for lots of
people. Mobile banking is the newest thing in electronic banking. This paper looks at how many people
are using mobile banking and how it's affecting customers of different banks. His study asks 200 people
who use banks in Delhi what they think about mobile banking. They use some fancy methods called
ANOVA and Factor Analysis to figure out what people like about mobile banking from different banks.
They're mostly asking people who live in cities in Delhi because they think they represent most bank
customers there.

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Mugdha Keskar & Neeraj Pandey’s-Internet banking: A review. The writer undertook an extensive
review of the current landscape of internet banking, aiming to provide a comprehensive overview of its
evolution and the ongoing research in this field. To ensure a thorough examination, the writer conducted
searches across various research databases using 11 specific keywords related to internet banking. In
narrowing down the selection, the writer focused on research papers published within the last 15 years,
from 2002 to 2016, to capture the most recent developments in internet banking. This timeframe was
chosen to reflect the rapid advancements and changes in technology and banking practices during this
period. After identifying a pool of potential papers, the writer employed additional criteria to refine the
selection process. This included considering the country of origin, the type of journal in which the papers
were published, and the research methods utilized for data analysis. By applying these criteria, the writer
ensured that the selected papers were of high relevance and quality for further analysis. Ultimately, the
writer curated a selection of 51 papers that met the specific inclusion criteria. These papers were then
categorized based on common research themes, allowing for a structured and systematic analysis of the
literature. Among the identified themes, customer satisfaction emerged as the predominant focus of
research within the realm of internet banking. By meticulously reviewing and categorizing the literature,
the writer provides valuable insights into the current state of internet banking, shedding light on key
trends, challenges, and areas of focus within the research community. This comprehensive review serves
as a valuable resource for academics, practitioners, and policymakers alike, offering a deeper
understanding of the evolving landscape of internet banking and its implications for the banking industry
and beyond

Hartmut Hoehle, Eusebio Scornavacca, Sid Huff’s-Three decades of research on consumer analysis
of electronic banking channels. Since 1984, there has been a noticeable increase in research dedicated to
understanding the adoption and usage of electronic banking channels. Initially, the growth in research
publications was gradual, with a focus primarily on automated teller machines (ATMs). However, with
the emergence of the Internet and the widespread adoption of mobile technologies, particularly in the last
decade, there has been a significant surge in research activity in this area. providing an insightful
summary of the research landscape surrounding electronic banking from 1984 to 2010. It highlights the
evolution of research interests and the expanding scope of studies examining various aspects of electronic
banking. In their analysis, which encompassed 247 peer-reviewed articles, we delved into the most
prominent research trends concerning the adoption of e-banking over the past three decades. By
identifying recurrent themes and commonly studied issues, we gained valuable insights into the prevailing
research landscape. This comprehensive overview not only sheds light on past research endeavours but
also paves the way for identifying fruitful avenues for future exploration in this dynamic field. Moving
forward, our findings, presented succinctly in Table 8, serve as a roadmap for guiding future research
endeavours. By delineating key areas of interest and potential research directions, we aim to contribute to
the ongoing discourse on electronic banking adoption and utilization. In conclusion, this article offers a
comprehensive overview of the literature on the adoption and utilization of electronic banking channels
by individuals. Electronic banking presents a paradigm shift in how consumers manage their financial

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resources and make informed decisions. Through a systematic analysis of 247 peer-reviewed articles, we
aimed to provide a nuanced understanding of the research landscape in this domain, thereby facilitating
further scholarly inquiry and advancement in the field of electronic banking adoption.

Aijaz A Shaik, heiki karjalouto’s-Mobile banking :A literature review . Mobile banking, also known
as m-banking, has become increasingly important as more people use smartphones and tablets for various
tasks, including managing their finances. However, despite its potential benefits, the adoption of mobile
banking has not been as widespread as expected. Studies have shown that factors like compatibility with
lifestyle and devices, perceived usefulness, and attitude are significant drivers of people's intentions to use
mobile banking services. Yet, much of the research has focused on basic mobile banking services like
SMS banking, especially in developing countries. There's been little exploration of using mobile banking
apps on smartphones or tablets, or the consequences of this usage. To better understand mobile banking
adoption, researchers have reviewed existing studies to identify common themes and theories used to
predict consumer behavior. They found that while there's been considerable research on the topic, there's
still a lack of a clear roadmap or agenda for future studies. This review aims to fill that gap by providing
insights into the current state of knowledge on mobile banking adoption and suggesting areas for further
research.In summary, mobile banking has the potential to revolutionize how people manage their
finances, but there's still much to learn about why some people adopt it while others don't. By studying
this topic more comprehensively, researchers can help banks and financial institutions improve their
mobile banking services and reach more customers.

Vishal Goyal, Dr.U.S. Pandey, Sanjay Batra’s-Mobile banking in india: practices challenges &
securiy issues. The widespread adoption of mobile phones has opened up exciting opportunities for the
growth of mobile banking (m-banking). This paper reviews the emerging research literature on
m-banking and proposes a classification framework based on 65 m-banking papers published between
2000 and mid-2010. These papers, sourced from Information Systems (IS), technology innovation,
management, marketing journals, and major IS conferences, are categorized into five main areas:

1. m-banking overview and conceptual issues,2. Features & Benefits of Mobile Banking3. Current
operating practices of commercial banks 4. Mobile banking/payment practices in Indian Commercial
Banks, and5. Challenges in India strategic, legal, and ethical issues.

The paper aims to provide a comprehensive overview of the existing research on m-banking, offering
valuable insights into its various aspects. It is expected that the detailed references and assessments
provided in this paper will serve as a helpful resource for anyone interested in m-banking, stimulating
further research and interest in this field.

The Mobile Payment Forum of India (MPFI), led by IDRBT and RTBI, IIT Madras, was established to
promote mobile payments. It comprises members from telecom, finance, and regulatory sectors. Three
sub-committees focus on technology, business models, and regulatory issues. Challenges exist for
widespread acceptance, requiring investments from businesses and consumers. A regulatory framework
and standards are crucial. Despite past failures, research shows promise for future innovations in mobile
payments.

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Irfan Bashi, Chendragiri’s-Consumer behavioural intention and attitude towards internet banking
adoption in india. The paper aims to provide insights into the factors influencing customers' attitude and
behavioural intention to use Internet banking services, with a focus on perceived risk, trust, enjoyment,
website design, and social influence. Grounded on the technology acceptance model (TAM), the research
model proposes the effects of these factors on TAM constructs. Structural equation modelling is used to
analyse data from 697 individual Internet banking users in India via an online survey.
The findings confirm several hypotheses from the literature, revealing that perceived usefulness, ease of
use, trust, and enjoyment directly impact customers' attitude toward using Internet banking. Additionally,
attitude, perceived risk, enjoyment, and trust influence customers' behavioural intentions. Although the
direct effect of perceived website design is only significant on ease of use, its indirect effects are
significant on usefulness, attitude, and behavioural intentions. Moreover, perceived enjoyment has both
direct and indirect effects on usefulness but only a direct effect on ease of use.
However, the study acknowledges limitations regarding the generalizability of the findings and the scope
of factors considered. It suggests implications for theory, methodology, and management, emphasizing
the importance for the banking sector to focus not only on offering useful and user-friendly services but
also on building trusting relationships with customers.
In terms of originality and value, the study extends the existing literature on Internet banking by
incorporating trust and risk perceptions and examining the effects of website design and perceived
enjoyment in the Indian context. It contributes to the under-researched area of the emerging Indian
Internet banking services market.

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 4.0 DATA ANALYSIS AND INTERPRETATION

QUESTIONAIRRE

Question 1
What is your age?
AGE GROUP NUMBER OF RESPONDENTS

Below 18 8
18-25 31
25-45 34
45 and above 27

ANALYSIS
1. Age Groups and Banking Usage
- More young and middle-aged people (between 18 and 45) are using mobile and internet banking
compared to older individuals (45 and above).
- Younger people (18-25) and those in their working years (25-45) are the main users of digital banking.
- Digital banking is more popular among younger age groups, while older age groups are starting to
adopt it, but to a lesser extent.

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 - Most people using mobile and internet banking are young or in their prime working
years, but there's potential for growth in older age groups.

QUESTION 2:
What is your monthly income?

Range Number of respondents

0 25
10k-25k 30
25k-50k 14
50-70k 12
75k and above 19

ANALYSIS
Based on the income ranges of people using mobile and internet banking:
- Most respondents earn between 10k-25k, followed by those earning 75k and above.
- Fewer respondents fall into the other income ranges, with the lowest in the 0 income bracket.
- People from different income levels use mobile and internet banking.

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 - It's popular among both lower and higher-income earners.
- Mobile and internet banking are used by a diverse range of people, showing it's accessible across
various income levels.

QUESTION 3:
WHAT IS YOUR GENDER?

GENDER NUMBER OF RESPONDENTS

MALE 68
FEMALE 32
OTHERS 0

ANALYSIS
Based on the data on genders using digital banking:
- The majority of respondents are male, with 68 individuals.
- Female respondents account for 32 individuals, while there are no respondents categorized as
"Others."
- The data suggests that digital banking is more commonly used by males compared to females.
- There are no respondents categorized as "Others," indicating a binary gender classification in this
dataset.
- While males are the predominant users of digital banking in this dataset, it's important to note that
gender representation might not accurately reflect broader trends due to the absence of "Others" category.

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 - Further analysis may be needed to understand the reasons behind the observed gender disparity and to
ensure inclusivity in digital banking services.
In conclusion, the data highlights a gender disparity in digital banking usage, with males being the
primary users in the surveyed population. However, the absence of respondents categorized as "Others"
suggests a limitation in gender diversity representation in this dataset.

QUESTION 4:
WHAT IS YOUR OCCUPATION?

OCCUPATION NUMBER OF RESPONDENTS

EMPLOYED 41
SELF-EMPLOYED 16
STUDENT 35
RETIRED 3
OTHERS 5

ANALYSIS
Based on the data on occupations of people using digital banking:
- The majority of respondents are employed, with 41 individuals.
- Students represent the second-largest group, with 35 respondents.
- Self-employed individuals make up 16 respondents, while there are only 3 retired individuals.
- There are also 5 respondents categorized as "Others."
- The data suggests that employed individuals are the primary users of digital banking in the surveyed
population, followed by students.
- Self-employed individuals also demonstrate notable usage of digital banking services, albeit to a lesser
extent.

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 - Retired individuals show limited participation in digital banking, likely due to factors such as reduced
reliance on banking services post-retirement.
- Employed individuals and students are the main users of digital banking, indicating a strong
correlation between occupation status and digital banking adoption.
- Self-employed individuals also exhibit significant usage, possibly due to the convenience of managing
finances digitally for business purposes.
- The limited representation of retired individuals suggests potential challenges or barriers to digital
banking adoption in this demographic.
- Further analysis could explore the specific needs and preferences of each occupation group to tailor
digital banking services accordingly.

In conclusion, the data highlights variations in digital banking usage across different occupation groups,
with employed individuals and students being the primary users. Understanding these occupation-related
trends can inform strategies to enhance digital banking accessibility and adoption among diverse
demographic segments.

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QUESTION 5:
HAVE YOU EVER USED ONLINE/INTERNET BANKING?

OPTIONS NUMBER OF RESPONDENTS

YES 97
NO 3

ANALYSIS
Based on the data on whether individuals have used mobile and internet banking:

- The majority of respondents, 97 individuals, have used mobile and internet banking.
- Only 3 respondents have not used mobile and internet banking.
- The overwhelming majority of respondents have experience with mobile and internet banking,
indicating widespread adoption and usage of these services.
- The small number of respondents who have not used mobile and internet banking suggests a relatively
low prevalence of non-users in the surveyed population.
- Mobile and internet banking are widely embraced among the surveyed population, with the vast
majority having utilized these services.
- The data underscores the significance of mobile and internet banking as preferred methods for
managing finances, with a minimal proportion of respondents not using these services.

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In conclusion, the data reflects a high level of adoption of mobile and internet banking among the
surveyed individuals, highlighting their importance as prevalent and widely used banking methods in the
modern era.

QUESTION 6:
HOW FREQUENTLY DO YOU USE ONLINE/INTERNET BANKING SERVICES?

OPTIONS NUMBER OF RESPONDENTS

DAILY 53
WEEKLY 32
MONTHLY 8
RARELY 7

ANALYSIS
Based on the frequency of using online/internet banking services:
- Most respondents (53) use online/internet banking daily, indicating high reliance on digital banking
for everyday transactions.
- Weekly usage is also common, with 32 respondents engaging in it.
- Monthly usage is less frequent, with 8 respondents.

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 - Only a small number (7) use online/internet banking services rarely.
- Daily and weekly usage are prevalent, reflecting the convenience and accessibility of online/internet
banking.
- Monthly usage is less common, suggesting that fewer respondents rely on digital banking for less
frequent transactions.
- Rare usage indicates that some individuals may prefer traditional banking methods or have limited
need for digital banking.
- The data shows varying levels of frequency in using online/internet banking services among
respondents, with daily and weekly usage being predominant.
- Overall, the findings highlight the widespread adoption and reliance on digital banking for managing
financial transactions, with usage patterns varying based on individual preferences and needs.

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QUESTION 7:
HOW LONG HAVE YOU BEEN USING NET BANKING SERVICES?

OPTIONS NUMBER OF RESPONDENTS

PAST 1 YEAR 20
PAST 2 YEARS 33
PAST 3 YEARS 12
MORE THAN 3 YEARS 35

ANALYSIS
Based on the data on the duration of people using online and internet banking services:
- 20 respondents have been using online/internet banking services for the past 1 year.
- 33 respondents have been using these services for the past 2 years.
- 12 respondents have been using them for the past 3 years.
- 35 respondents have been using online/internet banking services for more than 3 years.
- The data indicates a varied duration of usage among respondents, with a significant number using
online/internet banking services for more than 2 years.
- A considerable portion of respondents (35) have been using these services for more than 3 years,
indicating long-term adoption and familiarity with digital banking.

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 - While fewer respondents have been using online/internet banking for 1 or 2 years, it still represents a
substantial portion of the surveyed population, suggesting a continuous trend of adoption over recent
years.
- The findings highlight a diverse range of durations in using online and internet banking services
among respondents.
- A significant proportion of respondents have been using these services for more than 3 years,
indicating long-term adoption and comfort with digital banking.
- Overall, the data reflects a growing trend of adoption and sustained usage of online and internet
banking services among the surveyed population over recent years.

QUESTION 8:
WHAT MOTIVATED YOU TO USE ONLINE BANKING SERVICES?

OPTIONS NUMBER OF RESPONDENTS

CONVENIENCE 48
TIME SAVING 29
ACCESSIBILITY 18
COST EFFECTIVENESS 5

ANALYSIS
Based on the data on motivations for using online banking services:

- Convenience is mentioned by 48 respondents as the main reason for using online banking services.
- Time-saving is mentioned by 29 respondents as another significant factor.
- Accessibility is highlighted by 18 respondents as a motivation.
- Cost-effectiveness is mentioned by 5 respondents.

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 - Convenience and time-saving are the most common motivations, indicating users value the ease and
efficiency of online banking.
- Accessibility is also important, suggesting users appreciate the ability to bank from anywhere.
- While fewer respondents cite cost-effectiveness, it's still a consideration for some users.
- The data highlights convenience, time-saving, accessibility, and cost-effectiveness as key motivations
for using online banking services.
- Overall, users prefer online banking for its convenience, efficiency, and accessibility, with
cost-effectiveness also playing a role for some individuals.

QUESTION 9:
WHICH ONLINE BANKING PLATFORMS DO YOU USE?

OPTIONS NUMBER OF RESPONDENTS

WEBSITES 14
MOBILE APPLICATION 80
OTHERS 6

ANALYSIS

Based on the data on online banking platforms used by respondents:

- The majority of respondents (80) use mobile applications for online banking.
- Websites are used by 14 respondents.
- Other platforms are used by 6 respondents.
- Mobile applications are the most popular platform for online banking among respondents, indicating a
preference for the convenience and accessibility offered by mobile banking apps.

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 - Websites are also utilized by a smaller portion of respondents, suggesting that some users still prefer
traditional online banking platforms accessed through web browsers.
- The findings demonstrate a clear preference for mobile applications as the primary platform for online
banking among respondents.
- While websites are still used by some respondents, mobile applications are favoured for their
convenience and accessibility.

QUESTION 10:
HOW SATISFIED ARE YOU WITH THE FUNCTIONALITY OF ONLINE BANKING PLATFORM?
ON THE SCALE OF 5

OPTIONS NUMBER OF RESPONDENTS

1 0

2 5

3 13

4 48

5 34

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ANALYSIS
Based on the data on satisfaction levels with the functionality of online banking platforms:
- No respondents rated their satisfaction as 1.
- 5 respondents rated their satisfaction as 2.
- 13 respondents rated their satisfaction as 3.
- 48 respondents rated their satisfaction as 4.
- 34 respondents rated their satisfaction as 5.
- The majority of respondents (48) rated their satisfaction as 4, indicating a high level of satisfaction
with the functionality of online banking platforms.
- A significant portion of respondents (34) also rated their satisfaction as 5, suggesting a very high level
of satisfaction with online banking platforms.
- Some respondents rated their satisfaction lower, with 13 respondents rating it as 3 and 5 respondents
rating it as 2, indicating varying levels of satisfaction among the surveyed population.
- Overall, the data reflects a high level of satisfaction with the functionality of online banking platforms
among respondents.
- While the majority of respondents are highly satisfied (ratings of 4 and 5), there are still some who
express lower levels of satisfaction (ratings of 2 and 3), highlighting areas for potential improvement in
online banking platforms.
- The absence of respondents rating their satisfaction as 1 suggests that no respondents expressed
extreme dissatisfaction with the functionality of online banking platforms.

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QUESTION 11:
HOW DO YOU RATE THE CONVENIENCE OF ONLINE BANKING TO TRADITIONAL
BANKING? ON THE SCALE OF 1-5

OPTION NUMBER OF RESPONDENTS

1 2
2 2
3 15
4 44
5 37

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ANALYSIS
Based on the data on how respondents rate the convenience of online banking compared to traditional
banking:
- 2 respondents rated the convenience as 1.
- 2 respondents rated it as 2.
- 15 respondents rated it as 3.
- 44 respondents rated it as 4.
- 37 respondents rated it as 5.
- The majority of respondents (44) rated the convenience of online banking higher than traditional
banking, giving it a rating of 4.
- A significant portion of respondents (37) also rated the convenience of online banking as the highest
(5), indicating a strong preference for online banking over traditional methods.
- Some respondents (15) rated the convenience of online banking and traditional banking equally (3),
suggesting a neutral stance.
- Fewer respondents rated the convenience of online banking lower than traditional banking, with 2
respondents each giving ratings of 1 and 2.
- The data shows a clear preference for the convenience of online banking over traditional banking
among the majority of respondents.
- While some respondents are neutral about the convenience of online banking compared to traditional
banking, very few rate online banking as less convenient.
- Overall, the findings highlight the perceived convenience of online banking as a significant factor
influencing users' preferences and behaviours in managing their finances.

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QUESTION 12:
WHAT FEATURES OF ONLINE BANKING DO YOU FIND MOST USEFUL?

OPTIONS NUMBER OF RESPONDENTS

ACCESSIBILITY 15
FUND TRANSFER 34
BILL PAYMENTS 40
OTHERS 11

ANALYSIS
Based on the data on features of online banking found most useful:
- Accessibility: 15 respondents find accessibility to be the most useful feature of online banking.
- Fund Transfer: 34 respondents find fund transfer to be the most useful feature.
- Bill Payments: 40 respondents find bill payments to be the most useful feature.
- Others: 11 respondents find other features to be the most useful.
- Bill payments are the most commonly cited useful feature, indicating that many respondents value the
convenience of being able to pay bills online through their banking platform.
- Fund transfer is also highly valued, suggesting that the ability to transfer funds between accounts or to
other parties is a key feature for online banking users.
- Accessibility is mentioned by fewer respondents, but still represents an important aspect, highlighting
the importance of easy access to online banking services.

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 - Other features, not specified in the options, are mentioned by some respondents, indicating a variety of
additional functionalities that users find useful in online banking platforms.
- The data highlights bill payments and fund transfer as the most valued features of online banking
among respondents.
- Accessibility is also important, although mentioned by fewer respondents.
- The presence of other features mentioned by some respondents suggests a diversity of preferences in
terms of what users find useful in online banking platforms.
- Overall, the findings provide insights into the key features that drive user satisfaction and engagement
with online banking services.

QUESTION 13:
HAVE YOU EVER FACED ANY CHALLENGES OR LIMITATIONS WHILE USING ONLINE
BANKING?

OPTIONS NUMBER OF RESPONDENTS

YES 47
NO 53

ANALYSIS
Based on the data on whether respondents have faced challenges or limitations while using online
banking:

- 47 respondents have faced challenges or limitations while using online banking.

- 53 respondents have not faced any challenges or limitations.

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 - Almost half of the respondents (47) have encountered challenges or limitations while using online
banking, indicating that there are issues or difficulties that some users experience.
- On the other hand, the majority of respondents (53) have not faced any challenges or limitations,
suggesting a generally smooth experience for a significant portion of users.
- The data reveals a mixed picture, with a notable proportion of users facing challenges or limitations
while using online banking.
- Understanding the nature of these challenges could provide valuable insights for banks and online
platforms to improve user experiences and address issues that may hinder the adoption of digital banking
services.
- Despite challenges faced by some users, the fact that a majority have not encountered issues suggests
that many individuals have a positive and trouble-free experience with online banking.

QUESTION 14:
HOW WELL INFRORMED DO YOU FEEL ABOUT FEATURES AND BENEFIT OF ONLINE
BANKING? ON THE SCALE OF 1-5
OPTIONS NUMBER OF RESPONDENTS

1 0

2 6

3 21

4 48

5 25

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ANALYSIS
Based on the data on how well-informed respondents feel about the features and benefits of online
banking:
- No respondents rated their level of feeling informed as 1.
- 6 respondents rated it as 2.
- 21 respondents rated it as 3.
- 48 respondents rated it as 4.
- 25 respondents rated it as 5.

- The majority of respondents (48) feel well-informed about the features and benefits of online banking,
giving it a rating of 4.
- A significant portion of respondents (25) also feel very well-informed, giving it the highest rating of 5.
- Some respondents (21) feel moderately informed, giving it a rating of 3.
- A smaller number of respondents (6) feel somewhat informed, giving it a rating of 2.

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 - No respondents feel poorly informed, as indicated by the absence of ratings of 1.
- The data suggests that most respondents feel well-informed about the features and benefits of online
banking, with a majority giving ratings of 4 or 5.
- This indicates that many users have a good understanding of the capabilities and advantages offered
by online banking platforms.
- However, there is still a portion of respondents who feel less informed, highlighting the importance of
ongoing education and communication efforts to ensure that users are aware of the features and benefits
of online banking.

QUESTION 15:
HAVE YOU EVER RECEIVED ANY EDUCATION OR TRAINING FROM YOUR BANK
REGARDING ONLINE BANKING SERVICES?

OPTIONS NUMBER OF RESPONDENTS

YES 31
NO 69

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ANALYSIS
Based on the data provided, where 31 respondents have received education or training from their bank
regarding online banking services, and 69 respondents have not received any education or training, it can
be inferred that online banking, or net banking, is easily understandable and requires minimum training.
The majority of respondents (69) have not received any education or training from their bank regarding
online banking services. Despite this lack of formal education or training, online banking remains widely
adopted and utilized by consumers. This suggests that consumers find online banking platforms intuitive
and user-friendly, requiring minimal training or instruction to use effectively.
Additionally, the relatively small number of respondents (31) who have received education or training
from their bank further supports the notion that online banking is easily understandable. Even among
those who have received training, the majority of consumers are able to navigate online banking
platforms without formal instruction.
Therefore, based on the data provided and the widespread adoption of online banking among consumers
with minimal formal training, it can be concluded that online banking, or net banking, is easily
understandable and requires minimum training.

QUESTION 16:
DO YOU FORESEE YOURSELF USING ONLINE BANKING SERVICES MORE FREQUENTLY IN
THE FUTURE?

OPTIONS NUMBER OF RESPONDENTS

YES 86
NO 14

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ANALYSIS
Based on the data on respondents' likelihood of using online banking services more frequently in the
future:

- 86 respondents foresee themselves using online banking services more frequently in the future.
- 14 respondents do not foresee themselves using online banking services more frequently in the future.
- The majority of respondents (86) anticipate using online banking services more frequently in the
future, suggesting a growing reliance on digital banking platforms for managing their finances.
- A smaller portion of respondents (14) do not foresee increasing their usage of online banking services
in the future, indicating a potential preference for traditional banking methods or a limited need for digital
banking.
- The data reflects a positive outlook towards the future adoption of online banking services among the
majority of respondents.
- The anticipated increase in usage suggests a continued trend towards digitalization in the banking
sector, with consumers embracing the convenience and accessibility offered by online banking platforms.
- While some respondents may not foresee increasing their usage of online banking services, the overall
trend indicates a shift towards greater reliance on digital banking for managing financial transactions in
the future.

QUESTION 17:
ANY ADDITIONAL COMMENTS OR SUGGESTION REGARDING ONLINE BANKING
SERVICES
SUGGESTIONS/COMMENTS
1. As being not advent to technology, I feel that using online banking services are not so much
good than cash basis for transaction.
2. Banks should provide information about how to use banking services.

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 3. Its time saving but due to some online scam, one should take care of their hard-earned money.
4. Online payment makes payment method very easy unlike cash basis.
5. It gets things at your convenience and is time saving.
6. Some additional features should be introduced in some bank applications to save people’s time
7. Online banking services are far better, convenient, accessible than cash basis method. But
there are few limitations to online banking services, like internal servers down, network
problem etc.

ANALYSIS
Based on the provided comments and suggestions regarding online banking services:

1. Some users may still prefer cash transactions over online banking due to a lack of familiarity or
comfort with technology.
2. Banks should prioritize providing comprehensive information and training to users to enhance their
understanding and utilization of online banking services.
3. While online banking is time-saving, users should remain cautious of potential online scams to protect
their finances.
4. Online payment methods are perceived as more convenient compared to cash transactions.
5. Users appreciate the convenience and time-saving benefits of online banking services.
6. There is a demand for additional features in bank applications to further streamline and save users'
time.
7. Despite the convenience and accessibility of online banking, users acknowledge limitations such as
internal server issues and network problems.

Overall, the comments and suggestions highlight both the benefits and challenges associated with online
banking services. Banks should focus on addressing user concerns, providing adequate education and
training, and continually improving their platforms to enhance the overall user experience.

4.1 QUANTITATIVE DATA

• A survey is a research method used for collecting data from a predefined group of respondents to gain
information and insights into various topics of interest.

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• They can have multiple purposes, and researchers can conduct it in many ways depending on the
methodology chosen and the study’s goal.

• The process involves asking people for information through a questionnaire, which can be either online
or offline. However, with the arrival of new technologies, it is common to distribute them using digital
media such as social networks, email, QR codes, or URLs.

• Survey for the study was undertaken via an online questionnaire. People from different backgrounds
have answered the questions in the survey

4.1 RESEARCH DESIGNS

➢ The Research design comprises of the method of Primary data collection which includes a Survey
given to 100 people and one on one interviews few friends and family members.

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➢ The design also involves the use of secondary data i.e. using of old articles, websites, e-chapters,
literature, etc to learn and gain knowledge regarding the topic.

➢ The design also involves the usage of descriptive tools such as bar graphs and pie charts to highlight
the data analysis.

Survey started: 29th Februrary 2024.

Survey Ended: 9th March 2024.

4.2 RESEARCH INSTRUMENT:

The research instruments used in this project are:

A survey which was conducted online. The survey comprises of 16-17 questions which are close ended
and rating scale in nature. The survey was sent to 100 respondents and was filled by all of them. The
survey was anonymous but certain demographic details such as age and occupation were asked. The
questionnaire made is enclosed in the annex

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 4.3 SAMPLE SIZE:

Sample size means the number of people that have been surveyed or the number of respondents who
have filled up the questionnaire. The sample size of my research project is 100 units i.e. 100 people have
been surveyed for the project.

4.4 SAMPLING UNIT:

It is important to select the sampling unit before selecting the samples. Since my research involves the
study of consumer analysis of mobile and internet banking, the sampling unit consists of respondents
from across Mumbai, since I could only conduct online survey of people in Mumbai only

4.5 SAMPLING DESIGN:

The survey involved the technique of convenient sampling and random sampling. These are basic
sampling techniques in which the survey was sent to 100 respondents from all over Mumbai randomly
according to our convenience.

4.6 STATISTICAL TECHNIQUE:

The study employed the use of bar graphs and pie charts to interpret and express the data in the form of
percentages.

Graphs allow for descriptive secondary analysis of data.

The survey was sent to a total of 100 respondents. The responses to each question were expressed as
percentages and then a pie chart was prepared for 15 questions. For one question a horizontal bar graph
was prepared.

The pie charts and the graphs allowed for interpretation of the responses from the point of view of which
response option had been chosen by the majority of the respondents versus the minority respondents.

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 4.7 OVERALL ANALYSIS:
The survey data shows that many people from different backgrounds use online and mobile banking.
They like it because it's easy to use and saves time. But some people worry about safety and think they
need more help to understand how it works.
Even with these worries, most people think they'll use online banking more in the future. This shows that
more and more people are getting used to doing their banking online, which is becoming an important
way to manage money.

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 5. CONCLUSION:

Consumer analysis of mobile and internet banking is a crucial endeavour in understanding the changing
dynamics and preferences of users in the ever-evolving digital banking landscape. Through
comprehensive research, valuable insights have been gathered regarding the adoption, usage patterns,
motivations, challenges, and future outlook of consumers towards mobile and internet banking services.
The research data collected from diverse demographic groups reveals a pervasive adoption of mobile and
internet banking services. Individuals across different age groups, income brackets, genders, and
occupations have embraced digital banking platforms, indicating a widespread reliance on technology for
managing financial transactions and services. This widespread adoption underscores the increasing
integration of digital channels into the daily lives of consumers, reshaping traditional banking practices
and behaviours.
Central to the adoption of mobile and internet banking services are various motivating factors driving
users towards digital platforms. Convenience, time-saving benefits, accessibility, and cost-effectiveness
emerge as primary motivations, reflecting users' preferences for the flexibility and efficiency offered by
digital banking compared to traditional methods. The ease of access to banking services anytime,
anywhere, and the ability to conduct transactions swiftly contribute to the appeal of digital banking
platforms among users.
Furthermore, the research findings highlight a high level of user satisfaction with the functionality of
mobile and internet banking platforms. Users appreciate the convenience and ease of use provided by
these platforms, which have become integral tools in managing their finances and conducting daily
banking activities. However, alongside the positive aspects, users also express concerns regarding
security issues and the need for additional education and training. Addressing these challenges is
paramount to enhancing user confidence and trust in digital banking platforms, ensuring a seamless and
secure banking experience
Despite these challenges, the research data indicates a positive outlook towards the future adoption of
mobile and internet banking services. The majority of respondents anticipate using these services more
frequently in the future, signalling a continued trend towards digitalization in the banking sector. This
optimistic outlook underscores the growing importance of digital banking in meeting users' evolving
needs and preferences, shaping the future trajectory of the banking industry.
In conclusion, the research on consumer analysis of mobile and internet banking provides valuable
insights into the transformative impact of digital banking on the banking industry and users' financial
behaviours. While the adoption of digital banking offers numerous benefits, addressing challenges related
to security and user education is essential to foster continued growth and innovation in the digital banking
landscape. Overall, the research underscores the growing significance of digital banking in meeting users'
evolving needs and preferences, highlighting the pivotal role of technology in shaping the future of
banking services.

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 6. SUGGESTIONS

1. Conduct further research to identify and analyze challenges or limitations faced by users in utilizing
online banking services. Use insights to improve user experiences, remove barriers to adoption, and
enhance the functionality of digital banking platforms.
2. Develop targeted campaigns to address specific demographic segments or occupation groups with
lower adoption rates. Tailor messaging to resonate with the needs and preferences of different user
segments to encourage greater usage of online banking services.
3. Investigate user perceptions of security and trust surrounding online banking platforms. Enhance
transparency and communication regarding security measures to instill confidence among users.
4. Integrate accessibility features into online banking platforms to accommodate users with diverse needs.
Conduct audits and usability testing to identify and address barriers to access, ensuring inclusivity for all
users.
5. Collaborate with fintech companies and industry partners to drive advancements in digital banking
technology. Explore partnerships to leverage emerging technologies for enhancing functionality, security,
and user experience.
6. Establish mechanisms for gathering ongoing feedback from users. Use feedback to inform iterative
updates and enhancements to digital banking platforms, ensuring alignment with evolving user needs.
Implementing these points can significantly contribute to improving the accessibility, usability, and
adoption of online banking services, ultimately enhancing the overall user experience and satisfaction.

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 7. WEBLIOGRAPHY

1. https://byjus.com/bank-exam/history-banking-india/#:~:text=The%20first%20bank%20of%20India,a%20fe
w%20managed%20to%20survive.

2. https://www.vskills.in/certification/blog/the-evolution-of-digital-banking-in-india-a-journey-of-innovation
/

3. https://en.wikipedia.org/wiki/Digital_banking#:~:text=History%20of%20Digital%20Banking,-The%20earlie
st%20forms&text=By%20the%201990s%2C%20the%20Internet,modern%20digital%20banking%20world%
20today.

4. https://shoutem.com/blog/the-history-and-evolution-of-mobile-banking/

5. https://www.rbi.org.in/

6. https://www.tatvasoft.com/outsourcing/2022/09/digital-banking-trends.html

7. https://www.dbs.com/digibank/in/articles/save/digitalization-in-banking

8. https://www.bankofbaroda.in/banking-mantra/digital/articles/advantages-and-challenges-of-digital-banki
ng

9. https://www.identityguard.com/news/risks-of-using-mobile-banking-apps

10. https://reciprocity.com/blog/digital-banking-challenges-opportunities/

11. https://www.javatpoint.com/advantages-and-disadvantages-of-online-banking

12. https://timesofindia.indiatimes.com/blogs/voices/the-rise-of-upi-transforming-the-way-indians-transact/

75 | Page
 8. BIBLIOGRAPHY

● https://link.springer.com/article/10.1057/s41264-020-00074-w

● Understanding the intention to use mobile banking by existing online banking customers by
sindhu singh and Rk shrivastav

● https://www.igi-global.com/article/behavioral-intention-towards-mobile-banking/59966

● https://journals.sagepub.com/doi/abs/10.1177/0972262917733188

● https://www.proquest.com/openview/812d0691890a2b657e389ca4a53baa3f/1?pq-origsite=gsch
olar&cbl=54462

● Understanding the intention to use mobile banking by existing online banking customers
-N. Thamarai Selvan, B. Senthil Arasu, M. Sivagnanasundaram

● Consumer Perception of Internet Banking and Mobile Banking Using Twitter Analytics
-Chandrakumar Thangavel, Ramya Thangavel, Elangovan Ramanujam, Deepthi Tabitha Bennet,
Preethi Samantha Bennet

● Consumer Perception and Satisfaction Towards Internet Banking and Mobile Banking with
Reference to Nationalized Banks in Rural India -M. L. Ashoka, T. S. Rakesh, S. Madhushree

● Attitude as a mediator between antecedents of mobile banking adoption and user intention
-Deepak Chawla and Himanshu Joshi

● Issues & Challenges in Mobile Banking in India: A Customers’ Perspective- Prerna Sharma
Bamoriya (Corresponding author)

76 | Page
 ● A STUDY ON CUSTOMER SATISFACTION AMONG ONLINE BANKING - Dr. R. Sathya
Devi, Ms. Vrindha. A,

● Customers’ Perception of E-Banking: Factor Analysis * Professor of Economics,

Avinashilingam University for Women, Coimbatore 641043, Tamil Nadu, India.

● A STUDY OF CUSTOMERS AWARENESS WITH RESPECT TO MOBIE BANKING - P

CHUGH

● Role of m-Banking for Indian Rural Consumers, its Adaptation Strategies, and Challenges:
Consumer Behavior Analysis - Shyam R. Sihare

● A conceptual analysis of internet banking users’ perceptions: An Indian perceptive -SINGH,

Inderpal; NAYYAR, Anand; LE, Doan Hong & DAS, Subhankar

● Customer Perspective on Online Mobile Banking in India - An Empirical Study - P.S. AITHAL

● A Study on Mobile Banking and its Impact on Customer's Banking Transactions: A

Comparative Analysis of Public and Private Sector Banks in India-Nidhi Singh and Neena Sinha

● Measuring E-Service Quality and Customer Satisfaction with Internet Banking in India- Sindhu
Singh

● An empirical examination of customers’ adoption of m-banking in India-

Madhurima Deb, Ewuuk Lomo-David

● Impact of adoption of mobile banking in Delhi-Shamsher Singh

● Internet banking: a review (2002–2016)

Mugdha Y. Keskar
&
Neeraj Pandey

● Three decades of research on consumer adoption and utilization of electronic banking channels:
A literature analysis
Hartmut Hoehle a, Eusebio Scornavacca b, Sid Huff b

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 ● Mobile banking adoption: A literature review
Aijaz A. Shaikh, Heikki Karjaluoto

● Consumer attitude and behavioural intention towards Internet banking adoption in India
Irfan Bashir, Chendragiri Madhavaiah

9. ANNEXURE

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hello my name is Rohil Jadhav. I am pursuing my degree in BMS Finance. this form is about the research
i am conducting on consumer analysis of mobile/internet banking. please fill the form and contribute to
my research. Thank you for being part of my project.

Best Regards

Rohil Jadhav

QUESTIONS

1.AGE?

● below 18
● 18-25
● 25-45
● 45 and above

2.Monthly income?

● Non-earning
● 10k-25k
● 25k-50k
● 50k-75k
● 75k and above

3.Gender?

● Male
● Female
● Other

4.Occupation?

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 ● Employed
● Self employed
● Student
● Retired
● others

5.Have you ever used online/internet banking services?

● YES
● NO

6.How frequently do you use online/mobile banking services?

● Daily
● Weekly
● Monthly
● Rarely

7.How long have you been using online banking services?

● Past 1 year
● Past 2 year
● Past 3year
● More than 3 years

8.What motivated you to use online banking services?

● Convenience
● Time saving
● Accessibility
● Cost effectiveness

9.Which online banking platforms do you use?

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 ● Mobile applications
● Websites
● others

10.How satisfied are you with the functionality of the online banking platforms? with 5 being the
most satisfied and 1 being the least satisfied.?

● 1
● 2
● 3
● 4
● 5

11.How, do you rate the convenience of online banking to traditional banking? with 1 being
much less convenient and 5 being much more convenient.?

● 1
● 2
● 3
● 4
● 5

12.What features of online banking do you find most useful?

● Accessibility
● Fund transfer
● Bill payments
● others

13.Have you ever faced any challenges or limitations while using online banking?

● Yes
● no

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14.How well informed do you feel about features and benefits of online banking? with 5 being
very well informed and 1 being very uninformed?

● 1
● 2
● 3
● 4
● 5

15.Have you ever received any education or training from your bank regarding online banking
services?

● Yes
● No

16.Do you foresee yourself using online banking services more frequently in the future?

● Yes
● No

17.Any additional comment or suggestion regarding online banking services?

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