CERTIFICATE

This is to certify that the project work entitled “A STUDY ON CUSTOMER

SATISFACTION TOWARDS DIGITAL BANKING SERVICE WITH SPECIAL REFERENCE
TO COIMBATORE CITY ” submitted to the bharathiar university, in partial fulfilment
of the requirements for the award of the degree of BACHELOUR OF COMMERCE
WITH PROFESSIONAL ACCOUNTING is a record of original work done by LAKSHMI
PRABHA.S (17bpa001) ,BAVATHARANI.V (17BPA007)
KEERTHIGA.P(17BPA013),GAYATHRI.S (17BPA024) during the period 2019-2020 of
his study in the department of commerce, at rathinam college of arts and science
(autonomous) under my supervision and guidance and the project has not formed
the basis for the award of any degree other similar title to any candidate in any
university.

Date:
Place:

Signature of the Head of the department Signature of the Guide

Internal Examiner External Examiner

VIVA VOICE EXAMINATION HELD ON

 DECLARATION

We LAKSHMI PRABHA.S (17bpa001), BAVATHARANI.V (17BPA007)

KEERTHIGA.P(17BPA013),GAYATHRI.S (17BPA024) hereby declare that the project
work entitled in “A STUDY ON CUSTOMER SATISFACTION TOWARDS DIGITAL
BANKING SERVICE WITH SPECIAL REFERENCE TO COIMBATORE CITY” submitted
to the Bharathiar University, in Partial fulfilment of the requirements for the award of
the Degree of BACHELOR OF COMMERCE WITH PROFESSIONAL ACCOUNTINGis a
record of original project work done by me during academic year 2019-2020 under
the supervision and guidance of Dr. V. T. DHANARAJ., M.Com., M.sc (FCA). M.Com
(CA)., Ph.D.,.Head Of Department of Commerce-1, Rathinam College of Arts and
Science (Autonomous), RathinamTechzone, Pollachi road, Eachanari, 641021.

Signature of the candidate

 ACKNOWLEDGMENT
On successful completion for project look back to thank who made in
possible. First and foremost, thank “A STUDY ON CUSTOMER SATISFACTION

TOWARDS DIGITAL BANKING SERVICE WITH SPECIAL REFERENCE TO

COIMBATORE CITY”for this blessing on us without which we could have not
successfully our project.

We thank almighty, without who's grace; my work would not have been
completed. We take this opportunity to express my heartfelt & grateful sense of
gratitude to Dr. MADAN. A.SENDHIL, M.S., Ph.D., Chairman of Rathinam Group, for
permitting to do the project work.

We take this opportunity to express my heartfelt & grateful sense of gratitude

to Prof.R.MANICKAM ,MCA.,M.Phil., CEO&SECRETARYRathinam Group, for
permitting to do the project work.

We acknowledge my deep sense of gratitude to our Principal Dr. R.

MURALIDHARAN., M.Sc., M.Phil., Ph.D., MCA.Rathinam College of Arts And Science
(Autonomous) for having given me an opportunity to get a practical experience
beyond the bounce of theoretical Knowledge through project.

We heartily thank to Dr. V. T. DHANARAJ., M.Com., M.sc (FCA). M.Com (CA).,

Ph.D. Head of Department of Commerce-II for giving an opportunity to undergo a
project for my carrier development.

We would like to express my hearty thanks to my Dr. V. T. DHANARAJ., M.Com.,

M.sc (FCA). M.Com (CA)., Ph.D..Head of Department of Commerce-II of her
valuable guidance and kind advice, encouragement and creative suggestion at
every stage of this project work.
We express my sincere thanks to my department faculty for their effort in
guiding me in doing this project. Our deep sense of gratitude to my beloved parents,
friends, my well-wisher for their affection, care and cooperation in all walks of my life
and all others for their support to complete this summer Internship Program.
A Study on Customer Satisfaction towards Digital
Banking Service with Special Reference to
Coimbatore City
 LIST OF CONTENT
CHPATER CHAPTER TITLE PAGE
NO NO

INTRODUCTION THE STUDY ON GREEN

ECO-LOGICAL MARKETING

• INTRODUTION
• DIGITALIZATIONS
• DEFINITION
• OBJECTIVES OF THE STUDY
• STATEMENT OF PROBLEM
I • SCOPE OF THE STUDY 8-19
• LIMITATION OF THE STUDY
• PRIMARY DATA
• SECONDARY DATA
• SAMPLING DESIGN
• SAMPLE SIZE
• RESEARCH PERIOD
• RESEARCH GAP
• CHAPTER SCHEME
AREA OF PROFILE AND REVIEW OF
LITERATURE
II 20-37
• AREA PROFILE
• REVIEW OF LITERATURE
• REFERENCES
OVERVIEW OF THE STUDY

• INTRODUCTION
• DIGITAL BANKING
• HISTORY OF DIGITAL BANKING
• SCOPE OF DIGITAL BANKING
III • EMERGING FORMS OF DIGITAL 38-58
BANKING
• EVOLUTION AND DIGITAL
TRANSACTION OF THE DIGITAL
SECTOR
• EASY WAY TO BANKING TRANSACTION
TODAY
• BUILDING A DIGITAL BANKING
 ORGANIZATION STRUCTURE
• FUTURE PROSPECTS OF DIGITAL
BANKING
• THE ENTERPRISE ROADMAP : A KEY
PREREQUISITE FOR DIGITAL BANKING
• CHALLANGES TO DIGITAL BANKING
• THE WAY OFOVERCOME
• DIGITAL TECHNOLOGY
• MERITS AND DEMERITS OF DIGITAL
BANKING
• FEATURES OF DIGITAL BANKING
• FACTORS AFFECT THE SCOPE OF
DIGITAL BANKING IN INDIS
• EMERGING TRENDS IN DIGITAL
BANKING SERVICES IN INDIA
IV ANALYSIS AND INTERPRETATION 59-83

FINDINGS, SUGGESTIONS AND

CONCLUSION
• FINDINGS
V 84-97
• SUGGESTIONS
• CONCLUSION
• REFERENCES

APPENDIX QUESTIONNAIRE 95-98

 CHAPTER -1

INTRODUCTION

INTRODUCTION

Global economic crisis of 2008-2009 the banking industry has created shareholder
value through financial leveraging on that time the digital banking concept were
entered in the Era. Every new digital models steer banks in the directions of value. It
is to focus and engaging their banking customers and building a trust in the key
activities of digital banking, marketing and sales, customer on boarding, and account
opening and servicing.

Rising numbers of financial institutions are introducing and expanding their

offerings of digital banking services. Digital banking is gaining growing popularity
particularly among retail customer due its low transaction costs and its ability to
serve as an alternative channel. The world of banking is moving away from the
traditional bricks and mortar approach and its focusing on the potential of digital
banking.

The emergence and expansion of the digital has improved organizations digital and
external communication capabilities.in the banking sector this online facet
commonly known as digital banking .Digital banking in the 21 st century advanced
from merely providing balance view and set up types of alerts but to also be able
to do transactions, redeem loyalty coupons, deposit cheques and instruct payroll
based transactions.

Customers satisfaction has been a popular topic in many researches.it can be

an abstract and ambiguous concept, and its depending on the products or
services focused on it is undeniable that customers satisfaction is important in all
types of businesses as the most effective way to increase and maintain
customer base in through achieving high customer satisfaction.in this study, a
research on customers satisfaction will be conducted on digital banking services.

Digital banking may be viewed as an adoption of various existing and emerging

technologies by the banks, in concert with associated changes in internal operations
as well as external relationship for providing superior customer services and
experiences effectively and efficiently

On 8th day of November, 2016; India took a big leap towards its vision of ‘digital
economy’ with the announcement of historical demonetization by humble prime
minister of India. The drive for cashless India was started on 15th August, 2014when
prime minister announced opening of jan-dhan accounts on affordable cost for poor
and unbanked areas taking them under bigger financial umbrella. The
demonetization policy just stimulated the entire process. Demonetization is the
process of stripping a currency unit of its status as legal tender. Demonetization
takes place whenever there is a change of national currency. India has already
envisaged the process of demonetization twice before. The first demonetization was
reported in January 1946 when Rs.1,000, 5,000, and 10,000 notes were taken out of
circulation, which were reintroduced after independence in 1954. Again in January
16, 1978, same currencies were banned which has been marked as second
demonetization in India. Initially it has been claimed a master stroke to eradicate
black money which includes 10% to 40% of GDP. However many critiques argued
that the demonetization is not a proper solution to grasp black money.accourding to
the present finance minister, the objective of demonetization was not just to
confiscate black money, but the main principle objectives are to create more
taxpayers, a bigger tax base, more digitization, and lesser cash in the system,
integration of the formal and informal economy.

The main objective of the Digital India programme is to improve the service delivery
to citizens,businesses,government employees,and others,blending information and
communication technology with administrative reforms.this is expected to make the
government more efficient, bring down costs and increase transparency in the
functioning of various departments and carter to the un-served and underserved
areas of the country. India had over 260million interest in the country is about 40
percent in urban india and 10 percent in the rural areas.it is apparent that there is a
huge potential to connect people through this medium. Mobile internet users in the
rural areas have grown by 60 percent annually to coos 45 million in 2014.
Profitability And Growth Of The Indian Banking Sector Is Dependent On
Modernization And Digitalization Coupled With Adopting A Customer Centric Service
Quality Model. The Need To Expand Their Delivery Od Product And Services
Through Online Channels.They Need To Give Importance To Imparting Digital
Information To All Relevant Stakeholders Especially The Customers.The Private
Banks Lead In The Shift Towards Digital Channels And Involved All Business Units
In This Campaign.Another Facet Acting As A Contributing Factor For Trust Towards
Digital Banking Is The Economic Uncertainties And Financial Pressures Faced By
The Banking Industry Both In The Domestic And The International Areas.

Acceptance Of A Complete Digitalization Requires Upgrades Of

Infrastructure,Tools,Rules And Regulations.Further,Banks Need To Replace An
Account-Based View Of Customer And Adapt A New View Customers And
Acknowledge As Individuals.This Helps In Enhancing The Customer Experience
With Relevant,Convenient And Personalized Product And Services.Digital
Modernization Needs To Go Hand In Hand With Implementation Of Services Quality
Models Which Acts As A Driving Force To Deepan Customer
Satisfaction,Loyalty,Sustaining Long- Term Relatiomship And Profitability.This
Approach Also Has The Potential To Meet Customers Expectations And Bring
Banking Back To The Bank.

The Physical Form Of Currency, Under A Central Banking System,Has Recently Come
In Contrast To Digital Currency, Which Is Operated By A Computer Generated
Device Called Cryptography Or Cryptology. Cryptography Is A Portmanteau
Word,Derived From The Greek Words Kputtos Meaning Secret, And Graphein
Meaning Writing. According To Several Experts ,Roman Emperor Julius Caeser,
Used Cryptography With A Shift To Three To Communcicate With Is Generals. A
Similar Technique Was Used By Carving Cipher Text On Stone In Egypt.
Cryptography Was Also Recommended In Kamasutra As A Way For Lovers To
Communicate Without Discovery.

Today, Cryptography Is The Study And Practice Of Techniques Fir Secure

Communication In The Presence Of Third Parties Or Adversaries. It Is About
Constructing And Analyzing Protocols, Thereby Avoiding The Influence Of
Adversaries. It Is A Means Of Secret Communication Covered Under A Protocol,
Encoded Using A Cryptic Format And Can Be Only Decoded By Someone With A
Purposefully Designed Password, Code Or Key To Overcome The Various Aspects
Of Information Security That Includes Confidentiality And Integrity, Authentication
And Non-Repudiation. Digital Currency Facilitates Settlement Of Ecommerce
Transactions. Some Of The Applications Of Crypotography In Business Include
Atmcards, Computer Password, Ecommerce And E-Banking.

Digital Currency, Among Its Various Names, Is Electronic Money That Acts As An
Alternative Currency , Generated Through A Computer Program. Currently,
Alternative Digital Currencies Are Not Printed By Government Endorsed Central
Banks Nor Necessarily Backed By National Currency. Digital Currency May Be Of
Two Types:Crypto Currency And Non- Crypto Currency. The Former Relies On
Cryptography To Create And Manage The Currency. They Are Peer-To-Peer,
Decentralized, And Mostly Based On The First Crypto Currencency.

E-Banking Is An Automatic System To Delivered Different Banking Services Directly

To The Customers Through Various Communication Channels, Customers Access
E- Banking Services Using An Intelligent Electronic Device , Such As A Personal
Computer [PC],Personal Digital Assistant [PDA], Automated Teller Machine
[ATM],Kiosk, Or Touch Tone Telephone. In Simple Word: “E-Banking Is A
Combination Of Two, Electronic Technology And Banking, It Is A Process By Which
Customer Enjoyed The Banking Facilities Without Visiting The Branch. The Payment
Eco-System In The Country Provides Multiple Options To Different Segments Of
Users For Fund Transfer As Well As For Making Payments In Exchange Of Value
For Goods And Services. With Increasing Adoption Of Electronic Payments,
Particularly Those Driving E-Banking There Is Growing Demand For Faster Payment
Services Which, In Turn, Facilitate Ease In Doing Financial Transactions.

Demonetization Is A Tool To Battle Inflation ,Black Money,Corruption And Crime,

Discourage A Cash Dependent Economy And Help Trade. Demonetization Is An Act
Of Stripping A Currency Unit Of Its Status As A Legal Tender. It Was 8th Of
November 2016 At 8p.M Where Honourable Prime Minister Of India Mr.Narendra
Modi Announced To Demonetize 500 And 1000 Rupees Currency From The
Economy And With The Limit Of Withdrawal Of Rupees From Bank Account And
Rupee 2000/- From ATM. After Demonetization, Online Banking Has Made Things
Much Easier And Has Saved Lot Of Time Of Bank Employee As Well As General
Public. The Traditional Way
 Of Waiting In A Queue And Filling Up All The Forms Manually, Is No Hassle Now
For Transacting With Any Bank. Banks In India Are Offering Wide Range Of Their
Services And Their Product Through Internet Banking.

This Study Evaluates How Demonetization Affects Quality E-Banking Servises As

Well As The Perception And Satisfaction Level Of User Towards E-Banking
Services. Quality Of E-Banking Services Has Been Evaluated Using Seven
Dimensions Of SERVQUAL MODEL .

India Is Moving Forward On The Way Of The Most Significant Digital Revolution And
Digital Payment System Will Be An Important Landmark In The Regime Of Cashless
Economy In The Coming Years.Digital Payment System Is An Electronic Medium
That Allows Customers To Make Electronic Commerce Transactions For Their
Purchase And Also Financial Transactions. The Development Of The Digital
Payment In India Is Anticipated To Be Driven By Digital Payment Service
Providers,Effective Banking Regulatory Mechanism And Experience Of Consumers
And These Are Also Growth Enhancing Factors For Digital Payment In India

Digital Payment System Has Remarkable Momentum Particularly After

Demonetization In India. The Government Of India Is Taking Various Steps For
Efficient Utilization Of Digital Payment Paltforms To Wipe Out Corruption And Black
Money From The Indian Economic System . Presently, Around 60 Percent Of The
Transactions In India Are Taken Place Through Digital Platforms. Through Digital
Payment Is Generally Accepted By Public, There Are Few Criticisms About
Processing Of Digital Payment System Are Launched In India. With This Backdrop,
It Is Imperative To Study The Perception Of Consumers Towards Digital Payment In
Coimbatore District.

DIGITALIZATIONS

Digitalization the process of converting information into a digital format, in

which the information is organized into bits. The result is the representation of an
object, image, sound, document or signal by generating a series of numbers that
describe a discrete set of its points or samples. The result is called digital
representation or, more specifically, a digital image, for the object, and digital
form, for the signal.in modern practice, the digitized data is in the form of binary
numbers,
which facilitate computer processing and other operations, but strictly speaking,
digitizing simply means the conversion of analog source material into a numerical,
the decimal or any other number system that can be used instead.

Digitalization is of crucial importance to data processing, storage and

transaction, because it “allow information of all formats to be carried with the
same efficiency and also intermingled”. Unlike analog data, which typically
suffers some loss of quality each time it is copied or transmitted, digital data can,
in theory, be preserving indefinitely with absolutely no degradation. This is why it is
a favored way of preserving information for many organization around the world.

Operational Definition

DIGITAL BANKING

Digital banking can be defined as extending the transactional facility to

customers by banks through various secured digital channels by taking care of data
security, related risk mitigation and regulatory aspects by banks themselves. This is
achieved by integrating online (internet) and mobile banking services by adoption of
latest digital technologies like analytics, social media, innovative payment solutions
and mobile technologies.

CUSTOMER SATISFACTION

Customers satisfaction from a product or a service based on whether their need

is met effortlessly, in a convenient way that makes them loyal to the firm. Hence,
customer satisfaction is an important step to gain customer loyaltyorganizations
Calculate The Customer Satisfaction Score (CSAT), which is the average rating of a
customer’s responses, the Net Promoter Score (NPS), which indicates the
probability that a customer refers a brand to another person, and the Customer
Effort Score
(CES), which indicates how easy it is for a customer to do business with a firm.
The customer satisfaction metrics are then used to estimate consumer behavior.

SERVICE QUALITY

According to farlex free dictionary, a night club also known as a discotheque, or

simply a club or disco is an establishment or an entertainment venue which
usually operates late at night, provides entertainment such as dancing and generally
opens until the early morning.’ in addition as per wikipedia, ‘a nightclub is differed
from bars, pubs or taverns by the inclusion of a dance floor and a disc jockey (dj)
booth, where a dj plays recorded dance, hip hop, rock, reggae, dub step, pop
music and a mix of songs played.

DIGITAL BANKING – A BOON OR BANE

The digital payment system are now poised to take quantum leaps in this new
era that at is largely driven by the ubiquitous internet. These disruptive dynamics
and revenue models are literally the new game changers- causing tangible and
tactical shifts across major verticals. e-commerce and m-commerce access is
largely attributed to the phenomenal growth of various digital payment technologies
such as card payments, electronic fund transfers, payment gateways, e-
payments, smart card, mobile money wallets etc.., pivotal to embracing such
new age payment systems are the people, technologies, and process that have
together created vast, robust and dependable networks and seamless systems that
guarantee humongous transactional volumes at breakneck speed, with dependable
security and counter- checks built around them. These are all taking India to the
threshold of the big league and to make the country battle-ready to compete with
the most influential industrial and financial powers of global businesses. With
digital banking and mobility, the need is no longer to “leap-frog” but to “deep-drive”
into the future. Going digital and mobile for a bank is no longer an option, it’s a
simple bare necessity- to collaborate and flourish. Today’s challenging digital
payment ecosystem has become a burgeoning marketplace.

CUSTOMERS’ STANDPOINT

Banks are now increasingly worrying about their very bastions being co-shared by a
string of new age players and the end customer is the single largest beneficiary with
a bouquet of services and service providers to choose from and along with
hugely competitive pricing models. Banks will have to increase their operational
efficiency and improve the customer experience by meeting the customers’
expectations swiftly in order to keep their position in core markets.

The level of automation and digitalization of the account opening and on-
boarding process has become very crucial. The most important aspect is to
improve the ability for consumers to open any new account using digital
channels and to efficiently onboard the new customer digitally. In this area,
traditional banks still differ strikingly from the new market players who offer a
convenient end-to-end online process.

The ability to offer basic as well as value-added content and functionalities

through digital channels is another important aspect. Value-added content and
functionalities, in contrast, will contribute strongly towards a positive customer
experience. value added functionalities include digital document safekeeping,
access to financial news, digital investing, personalized digital alerts, digital saving
tools, online chat, social media banking, e-lobbies etc. among others.

Simplicity of design, availability of contextual offers and ability to personalize the

experience are definitely some of the key success factors. The differentiation
between competitors with regard to design and ergonomics will decide the winner. In
the coming days design will be a much bigger differentiator, with simplicity being the
overarching goal. Elements allowing consumers to personalize their digital banking
experience, such as contextual cross-selling, the ability to set up personalized digital
alerts and the even ability for the customer to design their own digital banking
app will gain prominence.

ROLE OF DIGITIZATION IN INDIAN BANKING

Banks in India as a whole were very reluctant to adopt the changes brought about by
technological advancement. A number of factors brought about the mechanization
and digitization in banking industry in India .the putting in place standard cheque
encoders was the first step forward in digital transformation in banking.Megnetic Ink
Character Recognition (MICR) helps in the sorting and processing of cheques with
each bank branch having an MICR code. The next step was more of a necessity that
an innovation. Banking is a respective job and therefore a labor-intensive one where
the worker in prone to making mistakes.in order to minimize error and speed up the
process, banks began using computer technology with standard personal computers
and then set up their own Local AreaNetworks (LAN).Centralized Online Real Time
Exchange (core) banking thus allowed customers to perform financial transaction
and access their account from any of the participating bans branches. Then
Automated Teller Machine (ATMs) arrived on the scene and electronic fund transfer
were made possible. Online banking and tele-banking made their appearance in the
2000's and different modes of online fund transfer wereinstituted likeReal Time
Gross Settlement (RTGS) Immediate Payment System (IMPs).National Electronics
Fund Transfer (NEFT) and National Electronic Clearing service (NECS).

Statement of Problem

 Due to economic globalization, information technology revolution, changing

customer requirements and increasing competition have posed a lot of
challenges to the existing banking sector in India..

 The banks now compete with one another to offer value added services to
customer to widen their client bases.technology aided products like atms,
point of sale devices, anywhere banking, smart cards, online banking and
wap banking have given the customers to choose his channel of getting
catered to his requirements..

 Nowadays the major objective of commercial banks have to more attract a

large customer base by offering more delivery channels, giving more
importance to customer relationships. Online banking is gaining popularity as
a delivery channel

 The customers benefit by saving time at the counter of the branch having
access to hard cash at any given point of time, being able to check their
accounts from anywhere, as well as saving transaction cost to the bank.
On the other side, the bank saves on its operating costs, as otherwise it
would require trained staff to later to customer needs and can reduce the cost
of the transactions. This study is to analyzed that the customer satisfaction
towards Digital Banking Services with special reference to Coimbatore City.
(Selected
 commercial banks only).

Objectives of the Study

 To know about the concept of Digital Banking Services and evaluate the level of
awareness about the banking services.

 To identify the various factors influencing the usage of Digital Banking Services.

 To measure the level of satisfaction of digital banking service among the

customer in selected commercial banks.

 To Identify the challenges are faced by the customers in Digital banking Services.

Scope of the Study

• A Study On Customers Opinion Towards Digital Banking Services With

Reference selected commercial banks

• The Commercial Banks Provide various utility Service of Digital Banking

facilities to their Customers

• The purpose of this study is to analyze the satisfaction level of customers

towards digital banking services

• The research will cover the customer opinion on digital banking services
which will be helpful for further development and growth of banking industries.

LIMITATION OF THE STUDY

Due to constraints of time and resource, the study is likely to suffer from certain
limitations. Sum of these are mentioned here under so that the findings of the study
may be understood in a proper perspective.

> The study is related to Commercial banks only.Co-operative& foreign banks

are not included.
 > The study is related to Coimbatore only.

> The information given by the respondents might be biased because sum
of them might not be interested to give correct information.

> Customer satisfaction focuses only related to banking services. Other are not
covered.

Data Collection

The Collection of Data have divided into two categories;

1. Primary Data

2. Secondary Data

1.8.1 Primary Data

Primary Data Forms a basis of the Study. The Researcher has focused on
this study is to CoimbatoreCity. This Study about the Customer’s satisfaction
towards Digital Banking Sevices (Selected Commercial Banks) agroup of 500
respondents were selected as Sample respondents. Questionnaire was used to
Collect Primary Data from Respondents. The Questionnaire was structured type And
contained questions relating to different dimensions Of Digital Banking Preferences,
Factors Influence The Usage of Digital Services, Frequency and Period Of Usage,
Benefits Accruing to the users of Digital Services, and Problems are Encountered.

Secondary Data

The Secondary Data Regarding This Study Is Collected From Books,

Magazines Journals, Relevant Projects And Internet.

Sampling Design

Research design constitutes the blue print for the collection, measurement
and analysis of data. The present study seeks to identify the extent of customer’s
satisfaction towards digital banking. By using convenient and random sampling
method, 500 respondents were considered for the study. For the purpose of survey,
digital banking users from different areas in Coimbatore were consulted.
 Sample Size

It indicates the numbers of people to be surveyed. Though samples give more

reliable results than small samples but due to constraint of time and money, the
sample size was restricted to 500 respondents. The respondents belong to different
income group and profession.

Research Period

The field work of the study was carried on for 6 months from November 2019 to
April 2020

RESEARCH GAP

There are many studies about analyzing consumer attitude towards internet banking
and mobile banking. In post demonetization scenario government is encouraging
people to adopt for online transactions. The present study fulfills the research
gap by studying the consumer’s attitude towards online banking in the era of
demonetization.

CHAPTER SCHEME
The Project Report Has Been Arranged And Presented In Five Chapters.
> The First Chapter Deals With Introduction And Design Of The Study,
Objectives Of The Study, Statement Of The Problem, Scope Of The Study,
Research Methodology, Sampling Design, Sampling Size, Tools For Analysis,
Research Period, Limitation Of The Study And The Chapter Scheme.
> The Second Chapter Deals With Area Profile And Review Of Literature.
> The Third Chapter Digital Baking An Overview, Explains About The Evolution
Of Digital Banking, Usage Of Digital Banking, Various Digital Banking
Products And Services And Advantages And Features Of Digital Banking.
> The Fourth Chapter Deals With Data Analysis And Interpretation Of Digital
Banking Services.
> The Fifth Chapter Illustrates The Findings, Suggestions And Conclusion Of
The Study.

REFERENCES
1. https://www.researchgate.net/publication/330383858_a_rise_of_digital_banki
ng_in india-_a_case_study_of_hdfc_bank
2. http://www.ehow.com/about_6628945_history-electronic-banking.html

3. http://www.docstoc.com/docs/15875336/e-banking-a-complete-project

4. Dr. Mrs. Gomati. V,” Information technology in Banking Sector”, Kissan World
(November 2004) vol.31.no:11 pg.no:27

5. http://indianresearchjournals.com/pdf/apjmmr/2012/december/2.pdf

6. http://www.iibms.org/pdf/ebooks/e-banking%20management.pdf

7. http://www.exclusivemba.com/ijemr

8. http://www.scribd.com/doc/31035235/26/chi-square-test

9. sugar c. jain, “e-banking”, rbsa publishers, 340, chaura rasta jaipur-302003,

india (2006), pp.188-189.
 CHAPTER- II

AREA PROFILE AND REVIEW OF LITERATURE

This chapter deals with area profile and review of literature

AREA PROFILE

The present study area is Coimbatore, which is the integral part of in

Tamilnadu. Therefore, the profile of Coimbatore district is also essential for the
study.

HISTORY AND GEOGRAPHY

In 18th century, the coimbatore region came under the kingdom of mysore,
controlled by hyder ali and later tipu sultan. After defeating tipu sultan in the anglo-
mysore wars, the british east india company annexed coimbatore to the
madras presidency in 1799. Coimbatore played a prominent role in the second
poligar war against the british in 1801, as it was the area of operations of
dheeran chinnamalai. In 1865, coimbatore was established as the capital of
the newly formed coimbatore district and in 1866 it was accorded the
municipality status. Sir robert stanes became the first chairman of the
coimbatore city council. Industrialization of the region begin in 1888 and
continued into the 20th century. The city experienced a textile boom in 1920s
and 1930s due to the decline of the cotton industry in mumbai. The region
played a significant role in the indian independence movement. Post-
independence, coimbatore has seen rapid growth due to industrialization. In
1981, coimbatore was constituted as a corporation. Coimbatore is situated in
the extreme west of tamil nadu, near the state of kerala. It is surrounded by
mountains on the west, with reserve forests and the (nilgiri biosphere reserve)
on the northern side.

BLOCKS IN COIMBATORE DISTRICT

There are twelve blocks in Coimbatore district. The details of the blocks are
asFollows:

1. Anamalai
 2. Annur

3. Karamadai

4. Kinathukadavu

5. Madukkarai

As mentioned in the above order, anamali block includes 19 villages, annurblock

includes 21 villages, 17 villages are there in karamadai block, kinathukadavu block
consists of 34 villages, nine villages are in madukkarai block, nine villages
inperiyanaickanpalayam block. Pollachi (north) block includes 39 villages, pollachi
(south) block includes 26 villages, sarcarsamakulam consists of eight
villages,sultanpet includes 20 villages, sulur consists of 17 villages and
thondamuthur blockconsists of 10 villages. In total, there are 12 blocks and 229
villages.

TALUKS IN COIMBATORE DISTRICT

Coimbatore District Consists Of Nine Taluks. The Details Are As Follows:

1. Coimbatore (North)

2. Coimbatore (South)

3. Mettupalayam

4. Pollachi

5. Sulur

6. Valparai

DEMOGRAPHIC DETAILS OF COIMBATORE DISTRICT

The total population of coimbatore district is 2916620 out of which 1482228

Are males and 1434392 are females. The total rural population of the district is 854489

And urban population is 2062131. As far as education is concerned, out of the total
 Population, 2056377 (71%) are literates. Out of the total literates, 1140737 (77%) are

Males and 915640 (64%) are females.

The district includes labour from various parts of the country. The population

Of workers totals to 937314 out of which 627693 are male 309621 are female
workers.

The workers from rural areas total to 436831 and that of urban areas are 500483.

Agriculture is the primary sector of the district. Most of the people depend on

Agriculture. The district comprises of 98364 cultivators and 211056 agricultural

Labourers. The house hold industry consists of 30381 workers. Major languages

Spoken in the district are tamil, malayalam, telugu, kannada, english and hindi.

EDUCATION

Coimbatore is one among the top most educational hubs in india. It includes

Seven universities, 46 arts and science colleges and 67 colleges for professional

Education which include two for allopathy, two for homeopathy, two for indian

Medicine, 59 engineering colleges, one for agriculture, and one for law. The

Educational institutions of coimbatore district are equipped with state-of-the-art

Infrastructure, industry institution interaction and practical way of teaching

Methodology. The colleges arrange frequent job fairs where the students of other

Colleges are invited to participate and make use of the employment opportunity.
This

Helps many students in coimbatore district to get themselves placed in reputed

Companies.

The coimbatore district is also famous for institutions in the field of medicine

Engineering and agriculture. There are five institutions teaching medicine, 59

Engineering colleges, one agriculture university, one law college and twenty colleges
 For special education.

MEDICAL AND HEALTH

Coimbatore district is famous not only for educational and industry sector, but

Also for its medical and health sector. There are many hospitals providing treatment
for

Local, national and international patients. Patients from abroad regularly visit
hospitals

In coimbatore to get treatment.

There are 114 hospitals and 117 dispensaries. There are 47 primary health

Centres, 328 health sub centres and 107 other medical institutions. Beds in hospitals

And dispensaries are 1607 in number. There are 465 doctors and 478 nurses.

AGRICULTURE

Most of the city of coimbatore comes under this district. Proximity to the city

Of coimbatore has its own impact on the district, with a considerable daily
commuting

Population. The rural people are mostly agriculturists. The important food crops
of the

District include:

1. Paddy

2. Jowar

3. Maize

4. Bengalgram

5. Redgram

6. Blackgram
7. Greengram

8. Horsegram

9. Sugarcane

10. Turmeric

Agriculture in the district mainly depends on the monsoon and the rainfall

Registered in the district includes; north east monsoon (328.9 mm), south west
monsoon

(189.8 mm), north east monsoon (410.7 mm) and south west monsoon (252.9 mm).

The water source for the agriculture as well as for drinking purpose is served by
various

Rivers.

INDUSTRIES IN COIMBATORE

Textiles are the major industries in coimbatore district; it is one of the

Important textile hubs of india. Coimbatore is also called the "manchester of south

India" because it houses many textile industries. India's leading textile machinery

Manufacturer, lakshmi machine works ltd, produces machinery for textile mills in
india and abroad. Lmw is the pride of coimbatore

There are many electric pump manufacturing companies in and around

Coimbatore, such as deccan, cri, texmo, ksb, sharp. Coimbatore houses some

auto Component manufacturing brands, such as roots, pricol and lgb. German auto

Component major robert bosch started their r &d facility in coimbatore. Rowsons

Transformers supply their electrical transformers to these companies. Coimbatore

Houses many information technology and business process outsourcing companies

Such as cognizant technology solutions and perot systems. The district is home to

Almost 50% of the poultry population of tamil nadu. The products manufactured in

Coimbatore industries are exported to various countries. The major commodities

 that

Are exported are as follows:

1. Pumps and motors

2. Yarn

3. Castings

4. Textile spares

5. Jasmine

6. Arecanut

7. Jewels

8. Software

9. Tea

10. Readymade garments

ENVIRONMENTAL ISSUES

Air pollution, lack of proper waste management infrastructure and degradation of

water bodies are the major environmental issues in coimbatore. Steel foundries were
established in 1950s and 1960s when there were no residential areas nearby,
but growth of the city led to creation of residential areas around them.

In 1990s the state government and pollution control board took major steps to re-
locate the steel foundries out of the city.the textile mills are all equipped with 72 air
treatment towers. Coimbatore has no proper underground drainage or sewage
system. There is a sewage treatment plant at ukkadam in operation with the capacity
to process 70 mld of sewage water of which 20 mld is the current treating level.
Garbage is collected by the corporation and sometimes by systems developed by
the local residents. Sewage is pumped into the water tanks and the noyyal through
streams. This along with garbage dumping and encroachments has led to
degradation of the water bodies and depletion in the groundwater table. During the
80‟s, the corporation planned on closing the tanks due to encroachment by filling
them with waste. But as a result of outcries from civic associations, the plan was
dropped. Currently the tanks are being renovated by the city's environmental groups
with their own fund-raising and the corporation.siruthuli, an environmental
organisation founded by the city's industrial houses, undertakes de-silting of
tanks and cleaning of the noyyalriver. The corporation is also taking efforts to
clear encroachment of the tanks.

POLITICS

Mettupalayam assembly constituency is part of nilgiris (loksabha constituency).

Mettupalayam admk 40% mettupalayam dmk 30% mettupalayam bjp 20%
mettupalayam others 10%. Mdmk secured 2nd place alone in mettupalayam
township election during 2001 local body election. Bjp secured 1st place in
mettupalayam township election during 2012 local body election.

TOURISM

Coimbatore District Is Very Much Known For Its Tourist Attractions. There Are Lots
Of Places To Visit In And Around Coimbatore. Coimbatore District Is One Of The
Biggest Districts In Tamil Nadu With Lot Of Tourist Attractions, Shopping Centres As
Well As Religious Places. Some Of The Major Attractions Of Coimbatore District Are
Aliyar Dam, Monkey Falls, Siruvani Dam, Cholayar Dam, Botanical Garden,
Horticulture Farms And Vaitheki Falls. All These Places Are Worth Visiting.
Coimbatore Serves As An Entry And Exit Point To Neighbouring Kerala And The
Ever- Popular Hill Station Of Udhagamandalam (Ooty). It Is The Landing Point For
Those Who Want To Take The Mountain Train That Runs From Mettupalayam, Just
35 Kms From Coimbatore.

REVIEW OF LITERATURE
1. Rangan, V. Kasturi And Lee, Katharine L., (2012), “Mobile Banking For The
Unbanked “,
The Case Describes In Detail The Workings Of Two Mobile Banking Operators In
Africa-
WIZZIT In South Africa And M-PESA In Kenya. It Explores The Dimensions Of
Strategy
That Make For Success In The Market For The Unbanked. It Raises Questions
Regarding The
Portability Of The Model To Other Countries And Settings.

2. V. Raja, Joe A. (2012), “Global E-Banking Scenario And Challenges In Banking

System”,
This Paper Is An Attempt To Explore The Various Levels Of Internet Banking
Services Provided By Banks Using The Secondary Data. It Also Compares The
Traditional Banking
Systems With Net Banking. It Lists Out The Various Advantages Of Internet Banking
And The
Successful Security Measures Adopted By Different Banks For Secured Banking
Transactions.
It Also Analyzes How E-Banking Can Be Useful For Banking Industry During This
Global
Financial Melt Down.

3. Van B., Paul, Veloso, Francisco M. And Oliveira, P., (2012), “ Innovation By Users
In
Emerging Economies: Evidence From Mobile Banking Services”,
This Paper Examined The Extent To Which Users In Emerging Economies Innovate,
And
Whether These Innovations Are Meaningful On A Global Stage. To Study This Issue,
The
Researcher Conducted An Empirical Investigation Into The Origin And Types Of
Innovations
In Financial Services Offered Via Mobile Phones, A Global, Multi-Billion Dollar
Industry
Where Emerging Economies Play An Important Role. The Researcher Used The
Complete List
Of Mobile Financial Services, As Reported By The GSM Association (GSMA), And
Collected
Detailed Histories Of The Development Of The Services And Their Innovation
Process.

4. Nel J., Boshoff C., Raleting T., (2012), “Exploiting The Technology Cluster Effect
ToEnhance The Adoption Of WIG Mobile Banking Among Low-Income Earners”
This Study Investigated The Attitude Formation Of Low-Income, Non-Users Of
Wireless
Internet Gateway (WIG) Mobile Banking, By Including Use Of The Short Message
Services
(SMS) As A Moderator Of Attitude Formation. A Non-Probability Sample Of 465
South
African Non-Users Of Mobile Banking Was Drawn And Clustered Into High Users And
Low
Users Of The SMS, Based On The Average Number Of Text Messages Sent In A
Week. The
Moderating Effect Of "Use Of The SMS" Was Investigated By Means Of A Structural
Equation
Modelling Multi-Group Analysis

5. Oliveira P., Eric V. H., (2011), “Users As Service Innovators: The Case
Of Banking Services”
Fond That 55% Of Today's Computerized Commercial Banking Services Were First
Developed And Implemented By Non-Bank Firms For Their Own Use, And 44% Of
Today's
Computerized Retail Banking Services Were First Developed And Implemented By
Individual
Service Users Rather Than By Commercial Financial Service Providers. Manual
Precursors To
These Services – Manual Procedures That Carried Out Functions Similar To
Computerized
Services In Our Sample – Were Almost Always Developed By Users As Self-Services.

6. Traynor P., Amrutkar C., Rao V., Jaeger T., Mcdaniel P., Porta T. L., (2011),
“From Mobile Phones To Responsible Devices”
Mobile Phones Have Evolved From Simple Voice Terminals Into Highly-Capable,
Generalpurposecomputing Platforms. While People Are Becoming Increasingly More
Dependenton Such Devices To Perform Sensitive Operations, Protect Secret Data,
And Be Available Foremergency Use, It Is Clear That Phone Operating Systems Are
Not Ready To Become MissioncriticalSystems. Through A Pair Of Vulnerabilities
And A Simulated Attack On A CellularNetwork, We Demonstrate That There Are A
Myriad Of Unmanaged Mechanisms On MobilePhones, And That Control Of
These Mechanisms Is Vital To Achieving Reliable Use. Through Such Vectors,
Mobile Phones Introduce A Variety Of New Threats To Their Own Applications
And The Telecommunications Infrastructure Itself. In This Paper, We Examine The
Requirements For Providing Effective Mediation And Access Control For Mobile
Phones. We
Then Discuss The Convergence Of Cellular Networks With The Internet And Its
Impact On
Effective Resource Management And Quality Of Service.

7. Ahmed S. M, Shah J. R., Md. A. I., Samina M., (2011), “Problems And Prospects
OfMobile Banking In Bangladesh”
This Study Revealed That 61 % Respondents Think It Saves Time Than Traditional
Banking,
The Highest Number Of Respondents Use Mobile Banking For €˜Air-Time Top-
Up’
Service, That Is 21%, Out Of 120 Respondents 56% Replied It Is Less Costlier Than
Traditional
Banking, 100% Respondents Did Agree That It Is Speedy, And 38% Respondents
Are Upper
Class. Although This Concept Is New In Bangladesh But Its Potentiality Is High.
From This
Research, Other Researchers And Policy Makers Will Get An Insight About The
Problems And
Prospects Of Mobile Banking In Bangladesh.

8. Lin H. F. (2011), “An Empirical Investigation Of Mobile Banking Adoption: The

Effect
Of Innovation Attributes And Knowledge-Based Trust”,
This Study Developed A Research Model To Examine The Effect Of Innovation
Attributes
(Perceived Relative Advantage, Ease Of Use And Compatibility) And Knowledge-
Based Trust
(Perceived Competence, Benevolence And Integrity) On Attitude And Behavioral
Intention
About Adopting (Or Continuing To Use) Mobile Banking Across Potential And
Repeat Customers. Based On A Survey Of 368 Participants (177 For Potential
Customers And 191
For Repeat Customers), This Study Uses A Structural Equation Modeling Approach
To
Investigate The Research Model. The Results Indicate That Perceived Relative
Advantage,
Ease Of Use, Compatibility, Competence And Integrity Significantly Influence
Attitude, Which In Turn Lead To Behavioral Intention To Adopt (Or Continue-To-Use)
Mobile Banking.
Additionally, By Using Multi-Group Analysis With T-Statistics, The Results Found
That The
Antecedents Of Attitude Toward Mobile Banking Differ Between Potential And
Repeat
Customers.

9. Mas I., (2011), “Capturing The Potential Of M-Payments For The „Unbanked”,
ThisArticle Discusses The Potential Of Using Mobile Phones To Greatly Increase
Access To
Financial Services In Developing Countries, And Reviews The Main Success
Factors In A
Mobile Banking Project.
10. Dube T., Kosmas N., Collins M., Lloyd C., (2011), “Adoption And Use
Of SMS/Mobile Banking Services In Zimbabwe: An Exploratory Study”
The Findings Showed That Although SMS Banking Was First Launched In 2004,
The Service
Was Still In Its Infancy. Evidence Showed That Accessibility And Affordability Were
The
Major Drivers To The Adoption Of SMS Banking. The Research Confirmed The
Assertion That
The Appeal Is More About Accessibility And Affordability In Developing Countries.
This Has
Been Exacerbated By The Lack Of Regulation For Electronic Banking In Zimbabwe.
The
Study Recommended An Increased Awareness Campaign By Banks And
Development Of
Policy And Regulation For Electronic Banking In Zimbabwe.

11. Sudhakar A. M., Suryanarayana, (2011), “Emerging Mobile Banking Scenario

AndIts Adoption In India: A Study”,
With Broadband Communication Technological Developments And Mobile Phones
Penetration(481 Million By June 2009) Into Common Man's Life Have Triggered
Major
Thrust In The Banking Service Sector Of India. With Mobile Banking- A
Revolutionary Approach To Banking Transactions Has Created A Strong
Connectivity Between Customers
And The Banks As Both Will Transact With Minimum Cost And In Minimum Time. It
Is A
Timely And Its Cost Effective Services Can Deliver Mobile Money To Non-Banked
Poor
People And Will Induce Economic Growth Of The Country. This Article Discusses
The Status
Of Mobile Banking In India And Other Countries With Emphasis On Data Security
And Standards And Its Implication On Banking Sector.
12. Murillo R. H., Llobet G., Fuentes R. (2010) “Strategic Online Banking Adoption”,
Found Out That Bank-Specific Characteristics Are Important Determinants Of
Banks‘ Adoption
Decisions, Competition Also Plays A Prominent Role. The Extent Of Competition Is
Related To
The Geographic Overlap Of Banks In Different Markets And Their Relative Market
Share In
Terms Of Deposits. In Particular, Banks Adopt Online Banking Services Earlier In
Markets
Where Their Competitors Have Already Adopted This Technology. This Paper Is
One Of The
First To Construct Local Banking Markets Using The Geographic Market Definitions
Delimited
By The CASSIDI® Database Compiled At The Federal Reserve Bank Of St. Louis.

13. Alain Y. C., Keng B. O., Binshan L., Boon I. T., (2010) "Online Banking Adoption:
An Empirical Analysis" Showed That Perceived Usefulness, Trust And Government
Support
All Positively Associated With The Intention To Use Online Banking In Vietnam.
Contrary To
The Technology Acceptance Model, Perceived Ease Of Use Was Found To Be Not
Significant In
This Study.

14. Kenneth B. Y., David H. W., Claire L., Randall B, (2010) "Offline And Online
Banking - Where To Draw The Line When Building Trust In E-Banking?",
Found ThatTraditional Service Quality Builds Customer Trust In The E-Banking
Service. The Size AndReputation Of The Bank Were Found To Provide Structural
Assurance To The Customer But NotIn The Absence Of Traditional Service Quality.
Web Site Features That Give Customers
Confidence Are Significant Situation Normality Cues.

15. Agarwal R., Rastogi S., Mehrotra A., (2009), “Customers‟ Perspectives
Regarding Ebanking In An Emerging Economy”
Determining Factors Affecting Customer Perception And Attitude Towards And
Satisfaction
With E-Banking Is An Essential Part Of A Bank's Strategy Formulation Process In An
Emerging Economy Like India. To Gain This Understanding In Respect Of Indian
Customers,
The Study Was Conducted On Respondents Taken From The Northern Part Of India.
The Major
Findings Depict That Customers Are Influenced In Their Usage Of E-Banking
Services By The
Kind Of Account They Hold, Their Age And Profession, Attach Highest Degree Of
Usefulness To
Balance Enquiry Service Among E-Banking Services, Consider Security & Trust Most
Important In Affecting Their Satisfaction Level And Find Slow Transaction Speed
The Most
Frequently Faced Problem While Using E-Banking.

16. Khan M. S., Mahapatra S. S., (2009), “Service Quality Evaluation In Internet
Banking: An Empirical Study In India”
Demographic Analysis Of Data Reveals That Gender Is Hardly A Bias For Use And
Evaluation
Of Service Quality Of I-Banking In Most Of The Cases Across Various Categories Of
Customers. A Valid Mathematical Model Is Proposed To Assess The Overall Service
Quality
Using Regression Analysis.
.
17. Crabbe M., Standing C., Standing S., Karajaluoto, (2009), “An Adoption Model
For Mobile Banking In Ghana”
The Impact Of Social And Cultural Factors On The Adoption Of Technology Still
Requires
Much Research. To Investigate It More Fully, We Examine The Reasons For The
Adoption And
Non-Adoption Of Mobile Banking In Ghana. Through A Survey Of 271 People In
Ghana, It
Has Been Found That Social And Cultural Factors In The Form Of Perceived
Credibility,
Facilitating Conditions, Perceived Ulitisation And Demographic Factors Do Play A
Significant
Role In Adoption Decisions. It Has Been Found That Ulitisation Of Technology And
Services
Can Be A Positive Influence For Adopters Whilst Being A Negative Influence For
Nonadopters.
In Addition, Perceived Credibility And Facilitating Conditions Also Influence
Attitudes Towards The Technology. When These Factors Are Added To A Range Of
Demographic
Factors, The Impact Of The Social And Cultural Features Of The Context Of Studies
Can Be Seen
As Significant.

18. Yang A. S., (2009), “Exploring Adoption Difficulties In Mobile Banking Services”
Factors Associated With Adopting And Resisting Mobile Banking Technologies Were
Investigated Among University Students In Taiwan. Adoption Factors Included The
Belief
That Mobile Banking Helps Fulfill Personal Banking Needs, Provides Location-Free
Conveniences, And Is Cost Effective. The Primary Factors Associated With
Resistance
Included Concerns Over System Configuration Security And Basic Fees For Mobile
Banking
Web Connections. The Theoretical And Applied Implications Of These Findings
Are Discussed.
19. Shanker, D., Singh, H. And Wadud, M. (2008), “A Comparative Study Of Banking
In China And India, Nonperforming Loans And The Level Playing Field”
It Has Become Common In Literature To Compare India And China Two Remarkably
Growing
Economies But These Comparisons Often Do Not Take Into Account The
Institutional
Differences Between Two Countries. We Have In This Paper Done A Comparative
Analysis Of
Banking Institutions In China And India Taking Into Accounts The Contentious Issue
Of
Nonperforming Loans Along With The Issue Of Use Of Banks To Provide
Countervailable
Subsidies To Exporting Organizations. Our Research Shows That The Efficiency
Differences
Between Banks In These Two Countries Can Be Directly Related To Institutional
Difference
Between Two Countries And Any Comparative Study Between Two Countries Not
Taking Into
Consideration These Institutional Differences May Lead To Misleading Results.

20. Petrus G., Nelson O. N., (2006) "Borneo Online Banking: Evaluating Customer
Perceptions And Behavioural Intention",
The Results Indicate That Perceived Usefulness And Perceived Ease Of Use Are
Strong
Determinants Of Behavioural Intention To Adopt Online Banking. There Is Also An
Indirect
Effect Of Computer Self-Efficacy And Prior General Computing Experience On
Behavioural
Intention Through Perceived Usefulness And Perceived Ease Of Use.

21. Kari P., Tero P., Heikki K., Seppo P., (2006) "The Measurement Of End-User
Computing Satisfaction Of Online Banking Services: Empirical Evidence From
Finland",
The Survey Results Support Three Constructs (Content, Ease Of Use, Accuracy) From
The
Original Model, Indicating That The Modified EUCS Model Labelled EUCS2 Can Be
Utilized
In Analyzing User Satisfaction With Online Banking Among Private Customers.

22. Sylvie L., Xiaoyan L., (2005) "Consumers‟ Attitudes Towards Online And Mobile
Banking In China",
The Results Showed Chinese Online And Mobile Bank Users WerePredominantly
Males, Not Necessarily Young And Highly Educated, In Contrast With TheElectronic
Bank Users In The West. The Issue Of Security Was Found To Be The
MostImportant Factor That Motivated Chinese Consumer Adoption Of Online
Banking. MainBarriers To Online Banking Were The Perception Of Risks, Computer
And Technological SkillsAnd Chinese Traditional Cash-Carry Banking Culture. The
Barriers To Mobile BankingAdoption Were Lack Of Awareness And Understanding
Of The Benefits Provided By Mobile
Banking.

23. Walfried M. L., Chris M., Sharon S. L., (2005) "The Relationship Between
Consumer
Innovativeness, Personal Characteristics, And Online Banking Adoption",
While ResultsConfirm The Positive Relationship Between Internet Related
Innovativeness And OnlineBanking They Also Surprisingly Show That General
Innovativeness Is Negatively Related ToOnline Banking.

24. Luarn P., Lin H. H. (2005), “Toward An Understanding Of The Behavioral

Intention
To Use Mobile Banking”,
Although Millions Of Dollars Have Been Spent On Building Mobile Banking Systems,
Reports On Mobile Banking Show That Potential Users May Not Be Using The
Systems,
Despite Their Availability. Thus, Research Is Needed To Identify The Factors
Determining
Users' Acceptance Of Mobile Banking. While There Has Been Considerable
Research On The
Technology Acceptance Model (TAM) That Predicts Whether Individuals Will Accept
And
Voluntarily Use Information Systems, Limitations Of The TAM Include The Omission
Of An
Important Trust-Based Construct In The Context Of Electronic/Mobile Commerce,
And The
Assumption That There Are No Barriers Preventing An Individual From Using An IS If
He Or
She Chooses To Do So.

25. Laukknen T., Lauronen J. (2005), “Consumer Value Creation In Mobile

Banking Services”
The Paper Presents Findings Of The Study That Explored Consumer Value Creation
In Various
Mobile Banking Services. New Electronic Channels Are Replacing The More
Traditional Ones.
Mobile Devices Represent The Recent Development In Electronic Service Distribution.
An
Exploratory Study Was Conducted On Experienced Electronic Banking Customers
By Using A Qualitative In-Depth Interviewing Method.

26. Suoranta M., Mattila M. (2004), “Mobile Banking And Consumer Behaviour: New
Insights Into The Diffusion Pattern”
Provided An Indication Of The Characteristics Of
Potential Subsequent Adopters Of Mobile Banking, And Of Differences Between
User Segments. Consequently, The Authors Are Able To Comment On The
Influence Of Certain
Demographic Characteristics And The Preferred Communication Mode Of
Customers On The Adoption And Future Usage Of Mobile Banking Services. The
Quantitative Survey That Sheds More Light On This Researched Issue Employed A
Traditional Method Of Postal Questionnaire. The Data Were Collected In Finland
During May–July 2002 And Include 1,253 Survey
Responses.

27. Avinandan M., Prithwiraj N., (2003) "A Model Of Trust In Online Relationship
Banking",
Observed That Shared Value Is Most Critical To Developing Trust As Well As
Relationship Commitment. Communication Has A Moderate Influence On Trust,
While
Opportunistic Behaviour Has Significant Negative Effect. Also Finds Higher
Perceived Trust
To Enhance Significantly Customers‘ Commitment In Online Banking Transaction.
An Important Contribution Concerns How Trust Is Developed And Sustained Over
Different
Levels Of Customer Relationship In Online Banking. The Future Commitment Of
The Customers To Online Banking Depends On Perceived Trust.

28. Sarel D., Howard M. (2003), “Marketing Online Banking Services: The Voice Of
The
Customer”,
Revealed Significant Differences In Attitudes And Opinions Between Early Users
And Those That Banks Hope Will Adopt Next. Most Importantly, Future Prospects
Could Be
Characterised As Indifferent About Online Banking; Many Were Not Convinced
About Its
Benefits And The Value It Provides. While The Potential To Expand The Market For
Online
Banking Services Exists, Banks Need To Re-Examine Their Marketing Approach.

29. Heikki K., Minna M., Tapio P., (2002) "Factors Underlying Attitude Formation
Towards Online Banking In Finland",
The Study Explored The Effect Of Different Factors Affecting Attitude Formation
Towards
Internet Banking (Online Banking) In Finland. The Purpose Of This Paper Is To
Determine
Those Factors That Influence The Formation Of Attitude Towards Internet Banking
On The One
Hand, And Their Relation To The Use Of Online Banking Services, On The Other.
To Attain
These, A Large Survey (1,167 Responses) Was Carried Out During The Summer Of
2000 In
Finland. Attitude Formation Was Studied By The Use Of A Structural Equation Model

30.Aladwani A. M. (2001), “Online Banking: A Field Study Of Drivers, Development

Challenges, And Expectations”,
The Results Of A Quantitative Study Of The Perceptions OfBanks‘ Executive And IT
Managers And Potential Customers With Regard To The Drivers,
Development Challenges, And Expectations Of Online Banking. The Findings Will
Be Useful
For Both Researchers And Practitioners Who Seek To Understand The Issues
Relevant Toon Line
Banking.

References

1. Aboelmaged, M.G. And Gebba, T.R. (2013), “Mobile Banking Adoption: An

Examination Of Technology Acceptance Model And Theory Of Planned
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2. Adler, R.F. And Benbunan-Fich, R. (2012), “Juggling On A High Wire: Multitasking

Effects On
Performance”,International Journal Of Human-Computer Studies, Vol. 70 No. 2, Pp.
156-168.

3. Afshan, S. And Sharif, A. (2016), “Acceptance Of Mobile Banking Framework In

Pakistan”,Telematics And Informatics, Vol. 33 No. 2, Pp. 370-387.

4. Afshan, S. And Sharif, A. (2016), “Resistance To Adopt Mobile Banking In A

Developing Country: Evidence From Modified TAM Model”,Journal Of Finance And
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5. Alafeef, M., Singh, D. And Ahmad, K. (2011), “Influence Of Demographic Factors

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CHAPTER -3
DIGITAL BANKING OVERVIEW

Introduction

The Buzzword In India Today Is Creating A Cashless Future. Buoyed By The

Successful Acceptance Of Demonetization, The Government Of India (Goi) Is Now
Pushing Digital Transaction. The Gol Has Set A Target Of 25 Billion Digital
Transaction In The Next Financial Year (Fy18) Through Multiple Facilities Including
Platforms Such As Aadhar Pay, Unifed Payment Service (Upi) Immediated Payment
Service (Imps) And Debit Cards.Gol Has Also Launched A Mobile Application
(Bharat Interface For Mony (Bhim) For Facilitating E-Payments Through Bank
Account .The Payment Industry Is Thus Seeing A Lot Of Action Form Various
Fintech Players To Leverage On Gol’s Digital Puch.

The Traditional Banking Industry Is Thus Facting The Impact Of Digital Technology.
To Remain Contemporary And Releveant,Several Commercial Bank Have Already
Started Aggressively Innovating Digital Products And Service For
Customers.Meanwhile,India Today Offers Unique Architecture For Digital Banking
Which Is Not Available In Us Or China Which Allows For Seift Payment Across
Bank- And Finally A Consent Architecture System, Where Information Is Made
Freely Available To Anyone Elsefor Use India Thus Today Stands At The Cups Of A
Banking Revolution Through Rapid Penetration Of Digital Banking.

Financial Services Industry Is No Different.The Accelerating Rate Of Technology

Change,Combined With Shifiting Customer Preferences And An Evolving Regulating
Ladscape,Have Dramatic Implications Services Are Designed,Delivered And
Disbursed Today.

Technology Is Overturning Workflows And Process In The Financial Services

Industry.Tasks Once Handled With Paper Money,Bulky Computers,And Human
Interaction Are Now Being Completed Seamlessly Entirely On Digital
Onterfaces.Almost Every Type Of Finicial Activity-From Banking To Payments To
Wealth Management And More-Is Being Re-Imagined By Some Tech Savvy Banking
Incumbants As Well As By Statup.Meanwhile,The Old Guard Is Trying To Solve A
Puzzle Presented By The Digital Revolution.

However Customer Focus Is Often A Stretch For The Banking Industry. When It
Comes To Innovation, Banks Have Been Relatively Slow Movers As A Result Of
Regulatory And Compliance Challenges. It Took Paypal To Revolutionize Online
Payments, And Square To Extend Personal Payments So Smartphone Users Could
Easily Pay For Goods And Services.
Digital Modernization Gives Traditional Banks A Second Chance. A Smart,
Enterprise- Wide Approach Positions Them To Deepen Customer Satisfaction And
Loyalty, Driving Long-Term Relationships And Profitability. Such An Approach Also
Has The Potential To Meet Consumers Expectations And Bring Banking Back To
The Bank.

The World As Been Stunned By The Rapid Advances In Technology Over The Past
Several Decades. It Has Touched And Has Left An Indelible Mark On Everything
And Anything That Human Beings Can Fathom. There Are Innumerable Instances
Of Technology Creating And Breaking Lives And Businesses- One Of These Being
The Business Of Banking. The Intrusion Of Digital Technology Into The Sphere Of
Banking Has Brought About A Paradigm Shift In Banking-Creating What Is Now
Referred To As Digital Banking.

In A Broad Sense, Digital Banking Refer To The Employment Of Technology To

Conduct Banking Transaction In A Smooth Manner. It, Therefore, Includes Online
Banking, Electronic Banking And Mobile Banking- The Terms That Are Of Common
Usage. Contrary To Traditional Banking, Digital Banks Aim At Developing Adaptable
Digital Product And Service To Meet The Needs Of Their Digital Customers. While
Traditional Online Banks Used Pre-Designed Software To Increase Their Reach,
Presence And Respond To Customer Needs, Digital Banks Used IT Experts To
Understand And Comprehend Their Customers, And Design Their Product
Accordingly. Needless To Stay, The Infusion Of Technology Has Now Become
Indispensable For Any Industry, And Lagging Behind Can Have Severe Repercussions.
Embracing The Challenge Is What An Industry Should Aim For, Especially When
That Industry Is Highly Dependent Upon Its Clientele. The Aim Of This Paper Is To
Examine The Extent And The Direction Of The Effect Of Digital Technology In The
Domain Of Indian Banking. An Extensive Review Of Relevant Literature Available In
Journals, Papers, And Research Articles Has Been Undertaken, Along With The
Data And Information From Secondary Sources Such Blogs And Sites.

1. Evaluate Opinions Carefully: Digital Banking Is Not One-Size-Fix-All.

Banks Need To Select The Opinions The Best Fit Their
Organisation And Startegy.
 2. Create An Enterprise Road Map: A Road Map Is A Key Pre
Requisite For Implementing A Digital Banking Program.

3. 3.2Digital Banking

Digital Banking Is The Move To Online Banking Where Banking Services Are
Delivered Over The Internet. The Advantage For Banks And Customes Are
Providing More Convenient And Faster Baking Servics.The Shift From Traditional To
Digital Banking Has Been Gradual And Should Be Rather Described In Degree Of
Servics Digitization Than Through A Categorization Into Yes And No.

It Involves High Levels Of Process Automation And Web-Based Services And May
Include Apis Enabling Cross-Institutional Service Composition To Deliver Banking
Products And Provide Transactions. It Provides The Ability For Users To Access
Financial Data Through Desktop,Mobile And ATM Services.

History Of Digital Banking

The Earliest Of Digital Banking Trace To The Advent Of ATM Machine And Cards
Launched In The 1960s.As The Internet Emerged In The 1980s With Early
Broardband,Digital Network Began To Connect Retailers With Suppliers And
Customer To Develop Needs For Early Online And Inventory Software Systems.

By The 1990s The Internet Emerged And Online Banking Started Becoming The
Norn.The Improvement Of Broadband And Ecommerce Systems In The Early 2000s
Led To That Resembled The Modern Digital Banking World Today.The Proliferation
Of Smartphones Through The Next Decade Opened The Door For Transaction On
The Go Beyond ATM Machine.Over 60% Of Consumer Now Use Their Smartphones
As The Preferred Method For Digital Banking.

There Is A Demand For End-To-End Consistency And For Services,Optimized On

Conveniencw And User Experience.The Market Provides Cross Platform Front
Ends,Enabling Purchase DecisionBased On Available Technology Such As Mobile
Devices,With A Desktop Or Smart TV At Home.In Order For Banks To Meet
Consumer Demands,They Need To Keep Focusing On Imoroving Digital Technology
That Provide Agility,Scalability And Efficiency.
 SCOPE OF DIGITAL BANKING

Digital Banking Is Not Only Restricted To Using Internet To Access Banking

Services,Asis Usualy Perceived, But It Comprises Of A Whole Array Of Banking
Services Delivered Or Comprise Of A Whole Array Of Banking Services Delivered
Or Consumed Using Technology. Hence,With A Wide Scope, Digitalbanking
Encompasses The Following;

1. Internet Banking :The Internet Is A Powerful Medium And Is Used By Banks To

Provide Services At Different Levels. This Includes Providing Basic Information
About The Various Products And Services Of The Bank, Communicating With The
Customes Regarding Their Account Balances Or Loan Applications And Allowing
The Customers To To Undertake Transactions Such As Payment Of Bills,Transfer
Of Funds Thr Like,Using The Internet.

2.Mobile/Phone Banking: Phone Banking Allows A Customer To Communicate And

Give Simple Instructions To The Bank Through The Use Of Their Mobile Keypads,
On A Cellular Device. It Allows Them To Deposit A Cheque, Transfer Funds, Pay
Bills, Know The Account Balance, Locate An Atmor Receive Information About
Their Accounts Activity.

3. Automated Teller Machines(Atms): Atms Were The First Well-Known Machines To

Provide Electronic Access To Customers. These Machines Enable A Customer To
Perform Tasks Such As Cash Withdrawal, And Enquire About Account Balance,
Without The Help Of A Bank Representative. The More Complex Machines Also
Allow Customers To Print Their Passbook, Deposit Cash And Access A Line Of
Credit.

4. Plastic Card: A Plastic Card Issued By The Bank To Its Customer Can Be In The
Form Of A Credit Card, Debit Card Or Smart Card. These Cards Simplify The
Process Of Making Payments At Point Of Sale, Provide Easy Access To Credit For
A Certain Period Of Time Or Can Performs Various Types Of Pre-Defined Financial
Transactions, Respectively.

5. Electronic Clearing Service(ECS): Repetitive And Periodic Payments Are Essentially

Undertaken Electronically Through ECS. It Is Used By Institutions For Making Bulk
Payment Of Amount Towards Distribution Of Divident, Interest, Salary, Pension,
Etc.., Or For Bulk Collection Of Amount Towards Telephone/Electricity/Water Dues,
Cess, Etc.

6. Electronic Fund Transfer: Electronic Fund Transfer System Are Dedicated

Towards Transfer Of Funds Within A Financial Institution Or Among Many
Institutions, Without The Involvement Of The Bank Staff. Such A Teansaction Takes
Place Over A Computerised Network.

7. PC/House Banking: Pcs Equips Users To Interact With Their Bank By Means Of
Computer With A Dail-Up Modem Connection To The Phone Network. However, It
Involves Complex Installation Procedures And Maintenance Costs.

EMERGING FORMS OF DIGITAL BANKING

• Baas-Banking As A Service (Allows For Third Party Integration)

• Baap-Banking As A Platform(For Integrating Core Systems With

Software)

• Cloud-Based Infrastructure(Allows Less Reliance On IT Staff)

• White Label Banking(Such As Co-Branded Credit Cards)

EVOLUTION &DIGITAL TRANSFORMATION OF THE BANKING

SECTOR

• The Period Of 1990s, In India, Was Marred By Various Financial Reforms.

These Along With Globalisation And Liberalisation Brought About Monumental
Changes In India’s Business Environment, Which Included Banking. For A
Modest Start, Reserve Bank Of India Set Up A Committee Chaired By The
Then RBI Governer, Dr.C.Rangaranjan. With A Focus On Customer Service,
The Committee Drew Up A Plan For For Computerization In The Banking
Industry For The Period Of 1985-89.Once The Requisite Experience In
Computerization Was Gained, A Second Rangaranjan Committee Was
Formed In 1988 In Order To Plan For The Extension Of Automation To Other
Areas Like Fund Transfer,E-
 Mail, Banknet, Swift, ATM’S, Internet Banking Etc., Subsequently, In The Year
2000, The Government Of India Enacted The Information Technology Act,
2000 In Order To Provide Legal Recognition To Electronic Transaction And
Other Means Of Electronic Commerce.

• 1996-98 Was The Period Of Internet Banking Adoption. After ICICI,

Citibank,Indus Ind Bank And HDFC Bank Were The Early Once To Adopt The
Technology In 1999. Reserve Bank Of India Said Up A ‘Working Group On
Internet Banking To Examine Difference Aspects Of Internet Banking. Starting
Internet Banking With Elementary Functions Such As Providing Information
About Interest Rates, Check In Account Balances And Computing Loan
Eligibility, The Banks Eventually Extended Their Services To Online Bill Payment,
Transfer Of Funds Between Accounts And Cash Management Services For
Corporates. This Was Followed By Facilitation Of Payment For E-Commerce
Transaction, By Directly Debiting Bank Accounts Or Through Credit Cards.

• A High Penetration Of Smartphones And Internet Connections,Coupled With A

Preference For Non-Branch Banking Channels, As Well As Advent Of
Regulations In This Sector Has Brough About A Favourable Shift In The
Consumer Behaviour, Indicating That A Period Of Premier Digital Banking Is
Approaching.

• Traditional Banks In India Have Been Seen To Follow Certain Stages To

Bringabout The Digital Tranformation. They Started With Building New Financial
Product As Well As Channels, Such As Mobilephone, In Order To Respond To
New Competition. This As Been Follow By An Effort To Reengineer The
Technological Infrastructure Such As The Payments Platform, To Make Them
More Flexible And User- Friendly. Lastly, In Order To Position Themselves In
The Digital Environment, They Have Adopted Sustainable Strategies Including
Changes And Investment In Their Organisations.

3.7.EASY WAY TO BANKING TRANSACTION TODAY

Gone Are The Days When Banking Was A Chore,A Frustrating Activity Which In
Many Cases Needed You To Take A Day-Off Toccomplish The Task.Technology
Has Virtually Enabled Banks To Be Where The Customer Is Enabling Her To
Connect To
 The Bank At A Time And Place Convenient To Her.Today We Are Closer To Year
2030 Than To Year 2000.Imagine If We Told You In Year 2000 That You Would Be
Able To Bank From Your 24 X 7 And Transaction In Less Than A Minute?Not Many
Would Have Believed Us But Mobile Banking Is A Reality.

Mobile Phones Especially Smart Phones Have Created More Opportunities To The
Common Man Than Any Other Technology In The Recent Past.Today Mobile
Banking And Mobile Wallets Are The Two Fastest Growing Segments In The
Payments Industry .Evolution Of Mobile Banking On The Back Of Mobile Phone
Revolution In India Has Helped Clients Make Faster And Secure Banking
Transaction On The Move.For Banks Mobile Banking Is The Most Cost Efficient
Mode Of Offering Banking Services.It Is A Win-Win Sitution For Both Banks And
Clients.

BUILDING A DIGITAL ORGANIZATION STRUCTURE

Many Banks Operate In Silos That Do Not Offer Integrated Service Offerings
,Digital Or Otherwise. Such Compartmentalization Is The Result Of Traditional
Organizational Management Approaches That Segregated Offerings By And Within
Lines Of Business And By Product And Channel. The Accretion Of Legacy
Technology Over Time Exacerbated The Problem. However, Outdated Silo
Structures Run Counter To Digital Bankings Holistic View Of Customers, And They
Have Played A Large Part In The Industry Painfully Slow Transaction To Online
Banking.

Digital Banking Breaks Through Organizational Barriers. It Compels Banks To

Rethink Organizational Constructs, As Well As Revenue And Profitability
Recognition Across The Enterprise. The Reorganization Includes Merging Current
Lines Of Business Management And The Enterprise-Level Product And Technology
Functions, As Depicted.

FUTURE PROSPECTS OF DIGITAL BANKING

DigitalBusiness Is An Overarchaing Trend Covering How The Blurring Of The

Physical And Virtual Worlds Is Transforming Business Designs,Industries,Market
And Organization.Major Business And Technology Advancements,Such As The
Internet Of Things,3D Printing And Machine Learning Combine To Disrupt Existing
Business Models And Create An Opportunity For Entirely New Onces.Digital
Technologies
Build On Each Other Wave After Wave Of Innovation.

Customer Expectations For Banking Services Are Bring Reset By The Experiences
And Online Providwrs ,Elesehere.Thanks To Companies Like
Google,Amazon,Apple,Uber And Our Very Own E-Commerce Now Experience
Firms;Customers Deliver Products And Services Swifity With A Seamless User
Experience.New Digital Attackers Are Disrupting Traditional Value Chainds In Many
Industries.But It Will Also Be Native To Believe That Technological Advancement In
Banking Will Only Be Done By Fintech Firms. Over The Next Couple Of Years You
Will Notice That A Lot Of Finicial Innovative Will Be Spear Headed By Incumbent
Banks- Either Independently Or In Partnership With New Fintech Firms.You Will Be
As Innovation.Today A Loy Of Banks Are Partnering With Fintech Firms For Mutual
Benefits.Some Of The Traditional Players In Banking Have Been Very Agile In
Experimenting With New Age Technologies Such As Artificial Intelligence And Block-
Chain.Banks And Non-Banks Are Innovating And Indian Ecosystem As A Whole Is
Gearing Up For Digital.

THE ENTERPRISE ROADMAP : A KEY PREREQUISITE FOR DIGITAL

BANKING

Before Embarking On A Digital Banking Program, Organizations Need To Develop

An Enterprise Roadmap. The Roadmap Need To Balance Key Customer Values
With The Bank Values. The Roadmap Begins With A Conceptual View Underpinned
By Governance, Readiness And Discipline. It Approaches The Most Valuable
Problem Dimension First –“Predict And Prevent”- To Create A Superior Customer
Experience That Embraces Code Halo Thinking To Radically Improve Satisfaction
And Enable Customers To Choose Self-Service First.

Bank Must Also Develop A Comprehensive Business Plan To Eliminate

Organizational And Procedural Constraints Across Lines Of Business And To Deliver
Value To Internal And External Stakeholders.

A Cornerstone Channel Optimization Strategy Is Critical. As Channels Evolve To

Create Seamless, Integrated Customer Experiences, And To Leverage Analytics For
Changing Customer Behavior Across All Touchpoints, The Focal Point Of The Effort
Must Not Be The Channels Themselves But The Customer.
 challenges To Digital Banking:

Here Are 6 Challenges To The Digital Banking And Suggested Way For
How To Overcome Them Are Discussed.

1. Attaining App Perfection: There Is An Immense Feeling Of Power And

Reassurance While Accessing A Smartphone Application. Smartphone Are More
Personal In Nature, Progressing To Biometric Verification, Even For Actions Such As
Unlocking The Screen. Taking This Into Account, Developing Applications Related
To A Business Becomes Crucial In Order To Retain Customers. With Banking And
Financial Applications Increasingly Offering The Comfort And Luxury Of Monitoring
Expenses At The Any Time From Any Place, Organizations That Do Not Tap Into
This Area Will Certainly Lose Out On Many Individuals That Will Deem The
Corporation Outdated. However, Most Applications Are Offer Ridden With Bugs And
Face Severe Performance Issues. They Remain Difficult To Navigate, At Times, And
Frequently Crash. This Can Be Detrimental To The Company’s Progress As It Would
Represent Poor Quality.

2. Technology Upgrades: Five Years Ago, Smartphone Wee Only Just Becoming
Popular. Today The Functionality Largely Defines The Device That Is Owned. Those
Who Travel Frequently On Business Depend On Apple And Android Tablets, Those
Who Work As Freelancers Depend On High Quality Cameras And Notebooks, While
Those Who Work The 9-5 Routine Perfer Robust Laptops And High-Performance
Desktops. In Addition, We Have Product Like Amazon Echo Thrown In The Mix, For
Daily Alerts And To Perk Up The Overall Lifestyle. Knowing Which Audience To
Target Is Only The Half Of It; Understanding Who Would Use What Device Under
Which Circumstances Is Equally Important. This Means A Serious Amount Of
Investment For Banking And Financial Entities In Digital Capabilities And
Formulating Effective Digital Strategies.

3. Cyber Crime: Most Banking And Financial Applications Are Subject To Cyber-
Attacks The Most. The Reason Is Obvious, What With Money Being The
Unquestionable Objective. Fraudsters Have Been Known To Be Innovative In Their
Endeavors To Siphon Funds, Either As Large Amounts In A Gun-Shot, Or Minuscule
Amount From Thousands Of Accounts, Over A Long Period Of Time. If Not Money
Directly, There Is Always The Threat Of Data Being Compromised.

4. Spearheading With Innovation: Spearheading The Marketplace By Offering

Innovative Services Is Not Just Desired, But Also Required In Order To Stay Ahead
Of The Curve And Attract A Wide Customer Base. Especially With A Large Base Of
Young Users, It Becomes Important To Distinguish Your Company In The Ever-
Growing And Competitive Marketplace. However, Companies Are Often Hesitant To
Take The Leap, As They Are Aware The Things Can Horribly Backfire And Cause
Instant Backlash From Irate Customers.

5. Sustainability: Post Successful Innovation And Implementation, The Next Pressing

Challenge To Tackle Effectively Is Sustenance. An Organization’s Sustainability As
A Leader Is Possible Only Through Synergy. Only When The Users Acknowledge
The Value Of The Product Or Service Will The Organizational Value Skyrocket To
Success And Remain There. In This Context , The Power Of Social Media Is Often
Ovenlooked. While Consistently Good Reviews Uplift The Organization To A Better
Status, Consistently Bad Reviews Can Destroy Even An Entire Empire.

6. Delivering Quality At Speed: In The Rush Of Wanting To Deliver Product Or

Services At An Accelerated Speed, Companies Often Tend To Compromise On The
Quality Is That There Is No Such Thing As A Small Bug;A Bug Is A Bug. There Have
Been Several Instances Of Organization Knowingly Turning A Build-Eye To Defects
In Product And Software Even Before The Item Hit The Market.

THE WAYS TO OVERCOME :

1. Quality Assurance Professionals Are Trained To Inspect, Assess, And Assure The
Quality Of The Software. They Become Involved In The Process Early On In The
Software Lifecycle And Ensure That Applications Are Delivered With Premium
Quality. In The Case Of A Performance Issue Despite That Rigorous Testing, They
Will Be Able To Tend Immediately To The Problem And Fix The Bugs Instantly.

2. Software Texting Plays A Key Role In Ensure Device Compatibility With The
Software, And Makes The Entity More User-Friendly. The Invariably Leads To More
Breathing Room For Exploring The Device That Will Be Able To Carry The
Company’s
Customized S6ftware Better. This Typically Saves The Corporation Millions Of
Dollars And Organization Can, Susbsequently, Spend Their Efforts On Figuring Out An
Apt Digital Strategy.

3. Security Testing Will Sniff Out The Possible Point Of Valnerabilities That Hackers
May Take Advantage Of, And Offer The Appropriate Solution. Security Testing
Demands A Thorough Understanding Of The Banking System And Offer An In-
Depth Knowledge Of The Internal Architecture. Quality Assurance Professionals
That Have Expertise Over The Banking Domain Are The Once That Would Best
Tackle Cyber- Crime.

4. Understanding And Leveraging The Power Of Social Media, While Necessary, Can
Be Ridden With Issues. Trolls, Malwares, And Tweets About Performance Issues
Can All Wreak Havoc If Not Effectively And Immediately Managed. Software Testing
Person1Nel Can Spot Real Problems And Immediately Fix The Issue, There By
Containing The Issue. This Greatly Helps Sustain Brand Image In Long Run.

5. Software Testing Can Be Ensure That All The Major Bugs Are Tackled As They
Rise, And Through Analysis Is Conducted In Order To Have Preventive Measures.
This Will Give Innovative Companies In Their Respective Industries A Boost, So
That They Can Continue To Explore How To Better Delight Their Customer-Base.

6. Robust Software Testing Ensures That The Product Or Software Hits The Market
Well In Time. By Closely Analyzing Possible Software Issue Right From The
Requirements Gathering Stage, Quality Assurance Expert Ensure Time To Market.

Digital Technology :

Seven Strategic Areas To Consider;

1. Infrastructure: Few Banks Have The Integrated Infrastructure In Place To

Enable The Seamless Retrieval, Storage And Distribution Of Information And
Data, Both Up And Down Stream. Cloud Technologies Lend Themselves To
Digital Innovation With Their Security, Reliability And Elasticity. The Cloud Can
Also Serve As A Flexible Integration Layer, Accommodating Off- And On –

Premise
 Applications That Need To Be Integrated Into The Digital Architecture, As Well
As Digital App Delivery.

2. Data : Precise Information Is The Key To Understanding Bank Customers And

Creating Unique Digital Person As For Tailored Interactions. Financial
Instruments And Transaction Processing, However, Typically Involve The
Exchange Of Large Volumes Of Data Management Accounts For 92% Of The
Cost Of The Financial Services Business, According To Esstimates.

Digital Banking Requires A New Set Of Plans And Policies To Control, Protect
And Enhance The Value Of Data And Information Assets. This Effort Includes
Reference Architecture Components Of The Master Data Management(MDM)
Strategy, Unified Information Delivery (Reporting) And Information Integration.
Global Data Semantics Include Industry- Standard Data Models Like IFX/FDSM,
As Well As The Definition Of Supporting Processes And Structures, Including
Data Governance, Data Quality And Data Organization.

3. Content: An Enterprise Content Management Roadmap For Digital Banking

Includes Storage, Management,Workflow, Process, Integration, BI, Analytics,
Reporting, Information Architecture Meta-Model, Content Type, And Lifecycle
And Syndication Methodology. It Also Includes Consolidation, Migration And A
Search Strategy,Product Evaluations And Adoption Strategies.

4. Analytics: Analytics Capabilities Include Multi-Dimensional Analysis By

Geography, Customer Type, Product, Traffic Source, Channel, Campaign, Web
Page, Scenario, IVR Path, And Speech To Text. They Also Include Data, Web Site
And Real-Time Content Analysis,User Profiling And Segmentation, Campaign
Optimization, Time And Path Correlate With Revenue-Driving Activities And
Nurture Cross-Selling Opportunities.

5. Business Process:Process Components Include A Service Orientation ,

Governance , Technology Adaption , Process Orchestrition , Tuning And
Optimization , Rules Engine Adaption And Enterprise Service Bus Adaption

6. Social And Mobile : Information Must Be Accessible From Anywhere And From
Any Mobile From Factor.Other Key Components Includes Social Media And
 Colloboration For External Client-Facing Business Application And For Internal
Productivity Improvements , Gamification For Customer Engagementts , The
Digital App Stored As A One-Stop Shop For Mobile Business Applications ,
Authentication And Access Security.

7. User Experience: A Consist User Experience Needs To Be Provided Across All

Major Interaction Touch Points.Other Key Factors Include An Information
Architecture , Personas , Wire Frames, Screen Flow,Visual Design,Interactive
Mockups , Campaign Management , Branding, Search Engine Optimization ,
User Experience And Session Management , Responsive Web Design ,
Usability , Prototype And UI Technology.

MERITS AND DEMERITS OF DIGITAL BANKING

MERITS

Some Advantages Of Online Banking Go Hand-In-Hand With Simply Being Online;

Others Are Competitive Advantages Provided By Online Banks Taking Advantage Of
Their Cost Structure. The Most Prominent Benefits Provided By Online Banking
Include:

• 24/7 Account And Service Access

• Speed And Efficiency
• Online Bill Payment
• Low Overhead Can Mean Low Fees
• Low Overhead Can Mean High Interest Rates On Deposit Accounts

• 24/7 Account And Service Access

Online Banks Are Accessible 24/7, As Long As You Have An Internet Connection.
Some Online Banks, Such As Ally Bank, Take This Perk One Step Further, Giving
You 24/7 Phone Access To A Real-Life Customer Service Agent. This Can Be
Extremely Helpful If You Don’t Have Access To The Internet, Or If You Feel You
Need The Assistance Of A Human Brain, Rather Than A Computer Algorithm.

• Speed And Efficiency

If You Need To Transfer Money, Apply For A New Loan, Or Perform Nearly Any
Banking Transaction, You’ll Typically Have To Wait In Line At A Bricks-And-Mortar
Banking Location. With An Online Bank, There’s Never Any Waiting. As Long As
You Can Log In, You Can Access YourAccounts, Request A New Credit Card, Or
Perform Nearly Any Banking Transaction You Desire Without Driving Down To A
Bank Or Waiting In Line.

• Online Bill Payment

One Of The Great Advantages Of Online Banking Is Online Bill Pay. Rather Than
Having To Write Checks Or Fill Out Forms To Pay Bills, Once You Set Up Your
Accounts At Your Online Bank, All It Takes Is A Simple Click — Or Even Less, As
You Can Usually Automate Your Bill Payments. With Online Bill Pay, It’s Easy To
Manage Your Accounts From One Central Source And To Track Payments Into And
Out Of Your Account.

DEMERITS

No One Type Of Bank Can Be The Best At Everything. In Spite Of Their Many
Advantages, There Are Some Drawbacks To Using Online Banks As Well. Here Are
Some Of The Downsides Of Working With An Online Bank:

• Technology Issues
• Security Issues
• Inefficient At Complex Transactions
• No Relationship With Personal Banker
• Inconvenient To Make Deposits.

• Technology Issues

In many ways, an online bank is only as good as your — or their — internet

connection. If there’s a power outage, or if servers go down, you might not have any
access to your account whatsoever. While some banks offer a phone number for
customer service, it might be overwhelmed if online access is down. With a real bank,
you can always find someone to talk to in the branch.
 • Security issues

While many online banks are reputable and well-established, sometimes it can be
hard to feel comfortable with a bank that doesn’t have a physical presence,
particularly when large sums of money are involved. If a website suddenly folds up,
what will happen to your money? There’s also the risk of identity theft — or actual
theft — if someone gains unauthorized access to your account via a hacked or
stolen password or log-in credentials.

• Inefficient at complex transactions

Online banks might be able to transfer money between accounts or pay bills, but you
might be more comfortable with an international, bricks-and-mortar bank if you have
complex transactions. Worldwide, business-oriented banks like chase have global
transaction capabilities, such as the ability to send payments to more than 35
different currencies worldwide, that online banks might not be able to muster.
Without a real-world presence, most online banks can’t even offer the services of a
notary public, which require an in-person visit and necessary for most important
financial transactions like buying a home.

• No relationship with personal banker

Over time, you can develop a relationship with a personal banker if you visit a
traditional bricks-and-mortar location. If you’re dealing with an online bank, on the
other hand, you’re typically handed off to an anonymous customer service agent
who is unlikely to know you from the next customer. If you’re really in a bind,
financially speaking, having a relationship with someone who can help and who
knows you well can be a major advantage over a strictly online banking relationship.

• Inconvenient to make deposits

It Might Seem Counterintuitive That A Bank, Whose Purpose Is To Attract

Assets, Makes It Hard For Customers To Make Deposits, But That Can Be True In
The Case Of Some Online banks. With an online bank, you can’t simply drop off
cash or a check at a local branch. In fact, some online banks, like ally bank, won’t
accept cash deposits at all. Using ally bank as an example, to make a deposit you’ll
have to mail a
check, transfer money from another bank or another account, or use the bank’s e-
check deposit service.

features of digital banking

1. Customer – focused strategy

Achieving a better customer experience should be the main premise of each

digital transformation strategy. This is what will achieve the long-awaited customer
loyalty. New implementations in digital services and products must be “smart,
responsive and tailored to the customer”, describes ferrari.

All departments should be involved in this new strategy, not just marketing or
innovation but also the legal and regulatory teams. The search for a solution in
multidisciplinary teams generates the improvement to that solution.

2. Remove barriers between departments

It is advanced in the first point, but one of the features of new digital banking will
be the transformation at the organizational level. For the process to be carried
out successfully, one of the requirements is to encourage teams to be built that
include the hitherto isolated departments.

Cross knowledge is one of the pillars of the new digital culture and it is what fosters
responsiveness in business processes, in efforts to create, launch or improve a
product or service.

3. Take on new business models and bahevaes as another rival

Financial technology startups are thriving and taking the lead in innovating in
financial products and services. How do you compete with them?

Ferrari advocates joining the technological “revolution”, accelerating innovation and

assuming the behavior that is leading these emerging startups to success. The
question that traditional banks must ask is: if i were a fintechstartupwhat would my
profitable sources of business be? And take them on at a large scale.

4. Collaboration and competitiveness

Collaboration Is Another Key Pillar In The Digital Transformation Process. Many

Fintech Startups Are Demanding A More Collaborative Approach With More
Traditional Financial Institutions In Order To Improve Services And Products That
Are Ultimately Provided To The End Customer.

Building Or Promoting Common Platforms Between These Startups And Traditional

Banks Will Improve The Competitiveness Of Both Parties. The Proof Is That Many
Large Institutions, Such As BBVA Among Others, Are Already Opting For This
Strategy And Slowly Opening Their Doors To Emerging Companies.

5. Working With FintechStartups(Or Even Buying Them Out)

In This Respect, Linked To The Above Feature, Many Institutions Are Carrying Out
Projects In Partnership With The Most Innovative Startups, Or They Are Even Buying
Them Out. This Is The Case Of BBVA With Simple And Madiva, Or Santander With
Funding Circle, For Example.

They Learn A New Business Model From These Companies, A New Way Of
Providing Financial Services And, In Addition, Thus Remain In The Most Innovative
Market. Ferrari Argues That A Part Of Developing New Products Or Services In The
Digital Banking Of The Future, And That Of The Present, Should Be Outsourced.
They Are, Above All, The Solutions Developed And Designed On The Experience Of
The New Digital Users.

6. Building An Open IT Architecture

Openness To New Partners And Third Parties Is The Sixth Feature That The Digital
Transformation In A Bank Must Fulfil. This Is The So-Called Open Innovation
Process, Taking Advantage Of The Knowledge Of Third Parties And Offering Their
Knowledge To Others In Turn. Consequently All Parties Become More Responsive
In The Process.

API Platforms Come Into Play Here In Order To Achieve More Consistent
Omnichannel Experiences, Scalable Solutions And Improved Customer Interaction.

7. Responsiveness In Innovation Planning

Although It May Seem A Contradiction, The Digital Transformation Process Must Be

Continuous, I.E. Constantly Evolving To Keep Up With All The Innovations That
Occur In Both The Financial Sector And Outside It.

One Of The Aspects That Must Be Improved Is Efficiency In Responding To New

Innovations, “Learn, Act And React”. The Innovation Laboratories That Are Being
Implemented In Many Banks Cannot Be Flash In The Pan And Have To Impact All
Departments In The Company.

7. Responsiveness In Innovation Planning

Although It May Seem A Contradiction, The Digital Transformation Process Must Be

Continuous, I.E. Constantly Evolving To Keep Up With All The Innovations That
Occur In Both The Financial Sector And Outside It.

One Of The Aspects That Must Be Improved Is Efficiency In Responding To New

Innovations, “Learn, Act And React”. The Innovation Laboratories That Are Being
Implemented In Many Banks Cannot Be Flash In The Pan And Have To Impact All
Departments In The Company.

FACTORS AFFECT THE SCOPE OF DIGITAL BANKING IN INDIA

Education: A Lack Of Knowledge About Banking In Itself Is A Hurdle.Many Part Of

India Still Struggle With Very Low Rate.The Lack Of Knowledge About Computer
And The Use Of The Internet Is A Challenge.

Fear:There Are A Number Of Unfounded Fears Individuals Have About The Use Of
The Internet.Cases Of Fraud Are Often Increases And This Adds To The Fear
Factor,Resulting In A Number Of Informed Customers Being Nervous To Use Digital
Banking.

Training:There Is Much Resistance From Within The Banking Industry

Itself.Employees Are Not Trained In The Use Of Innovative Technology.They Are
Unable To Utilize Different Features Of Digital Banking.

EMERGING TRENDS IN DIGITAL BANKING SERVICES IN INDIA

1. Electronic Payment Services – E Cheques

Now-A-Days We Are Hearing About E-Governance, E-Mail, E-Commerce, E-Tail Etc. In

The Same Manner, A New Technology Is Being Developed In US For Introduction Of E
-Cheque, Which Will Eventually Replace The Conventional Paper Cheque. India, As
harbinger to the introduction of e-cheque, the negotiable instruments act has already
been amended to include; truncated cheque and e-cheque instruments.
2.real time gross settlement (rtgs)

Real time gross settlement system, introduced in india since march 2004, is a
system through which electronics instructions can be given by banks to transfer
funds from their account to the account of another bank. The rtgs system is
maintained and operated by the rbi and provides a means of efficient and faster
funds transfer among banks facilitating their financial operations. As the name
suggests, funds transfer between banks takes place on a ‘real time' basis.
Therefore, money can reach the beneficiary instantaneously and the beneficiary's
bank has the responsibility to credit the beneficiary's account within two hours.
3. Electronic funds transfer (eft)

Electronic funds transfer (eft) is a system whereby anyone who wants to make
payment to another person/company etc. Can approach his bank and make
cash payment or give instructions/authorization to transfer funds directly from his
own account to the bank account of the receiver/beneficiary. Complete details
such as the receiver's name,bank account number, account type (savings or current
account), bank name, city, branch name etc. Should be furnished to the bank at
the time of requesting for such transfers so that the amount reaches the
beneficiaries' account correctly and faster. Rbi is the service provider of eft.

4.electronic clearing service (ecs)

Electronic clearing service is a retail payment system that can be used to make bulk
payments/receipts of a similar nature especially where each individual payment is of
a repetitive nature and of relatively smaller amount. This facility is meant for
companies and government departments to make/receive large volumes of
payments rather than for funds transfers by individuals.

5. Automatic teller machine (atm)

Automatic teller machine is the most popular devise in india, which enables the
customers to withdraw their money 24 hours a day 7 days a week. It is a devise that
allows customer who has an atm card to perform routine banking transactions
without interacting with a human teller. In addition to cash withdrawal, atms can
be used for payment of utility bills, funds transfer between accounts, deposit of
cheques and cash into accounts, balance enquiry etc.
6.point of sale terminal

Point of sale terminal is a computer terminal that is linked online to the

computerized customer information files in a bank and magnetically encoded plastic
transaction card that identifies the customer to the computer. During a
transaction, the customer's account is debited and the retailer's account is
credited by the computer for the amount of purchase.

7. Tele banking

Tele banking facilitates the customer to do entire non-cash related banking on

telephone. Under this devise automatic voice recorders used for simpler queries and
transactions. For complicated queries and transactions, manned phone terminals
are used.

8.electronic data interchange (edi)

Electronic data interchange is the electronic exchange of business documents like

purchase order, invoices, shipping notices, receiving advices etc. In a standard,
computer processed, universally accepted format between trading partners. Edi can
also be used to transmit financial information and payments in electronic form.

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CHAPTER IV

ANALYSIS AND INTERPRETATION

Digital Banking Can Be Defined As “Delivery Of Bank’s Services To A

Customer At His Office Or Home Using Electronic Technology.”While Financial
Institutions Took Steps To Implement Digital Banking, The Customers Were Hesitant
To Conduct Monetary Transaction Over The Web Because Of Security Concern.
With The Numberof Computers Increasing Every Year, The Electronic Delivery Of
Banking Services Is Becoming The Ideal Way For Banks To Meet Their Clients’
Expectations1.

In This Chapter Customer’s Preference Towards Digital Banking Services In

Coimbatore City Were Analysed. Analysis And Interpretation Of Data Plays A
Dominant Role In The Completion Of The Project. Data Collected Are Tabulated For
Easy Understanding And Good Presentation. In This Chapter A Detailed Analysis Of
Data Regarding Age Group, Educational Status, Income, Occupation, Awareness
And Preference Towards Various Digital Banking Services, Frequency Of Usage,
Period Of Usage, Factors Influencing The Preference, Level Of Satisfaction And
Problems Faced Etc., Are Presented Using Tables, Diagrams Etc., To Know
Important Findings Related To The Study. Data Were Collected Using Questionnaire
From 200 Respondents.

GENDER

Gender Is A Range Of Physical, Mental, And Behavioral Characteristics

Distinguishing Between Masculinity And Femininity. It Is One Of The Important
Determinants Which Decide About The Capacity Of The People Having Relationship
With Banks. The Gender-Wise Distribution Of The Sample Respondents Are Given
Below In Table 4.1

Table4.1
Gender-Wise Classification
 S.No Gender No.Of.Respondents Percentage

1 Male 104 52

2 Female 96 48

TOTAL 200 100

Source: Primary Data

Figure 4.1

Figure 4.1 Indicates That The Male Respondents Constitute 52 Per Cent
While The Female Respondents Constitute 48 Per Cent Of The Sample Population.
So, It Is Observed That In Most Of The Indian Families, Males Are The Head Of The
Family Who Deals With Financial Transactions Of Their Families And Hence They
Are Exposed To Digital Banking Services

AGE.

Age Is One Of The Decisive Factors That Decide The Nature Of Any Venture. Thus, It Helps
To Determine Which Age Group Customers Are Highly Aware Of Digital Banking Services.
The Age Composition Of The Respondents Are Given In Table 4.2

TABLE 4.2
 Age Wise Classification

S.No Age No.Of.Respondents Percentage

1 Below 20 Years 87 43.5

2 21-25 Years 48 24

3 26-30 Years 30 15

4 Above 31 Years 35 17.5

Total 200 100

Source: Primary Data

Table 4.2 Reveals That 43.5 Percent (87) Of The Sample Respondents Are
Below The Age Group Of 20 Years And Only 24 Percent (48) Are In The Age Group
Of Above 21-25 Years.15 Percent (30) Of The Sample Respondent Are In The Age
Group Of 26-30 Years.17.5percent (35) Of The Sample Respondent Are The Age 31
Years. It Is Inferred That The Youngsters Are Mostly Using Digital Banking Services
Because They Have More Knowledge About Technological Development.

EDUCATION

Education Is Universally Regarded As An Instrument For The Improvement And

Development Of Human’s Knowledge. Education Motivates People To Save, Think
And To Take Proper Decision. The Educational Qualification Of The Respondents
Are Analysed With A View To Find Whether The Digital Banking Services Are Easy
To Utilize By The Educated Or Less Educated. The Educational Status Of The
Sample Respondents Are Given Below In The Table 4.3
Table 4.3

EducationalWise Classification

S.No Educational Qualification No.Of.Respondents Percentage

1 Illiterate 6 3

2 High School 32 16

3 Graduate 126 63

4 Post-Graduate 24 12

Professional Studies 12 6

Total 200 100

Source: Primary Data

The Table 4.3 Clearly Shows That 3percent (6) Of The Sample Respondents
Are Illiterate And Only 16 Percent (32) Of The Sample Respondents Have
Completed High School. 63 Percent (126) Of The Sample Respondents Have
Graduate.12 Percent (24) Of The Sample Respondents Are Post-Graduate.6
Percent (12) Of The Sample Respondents Are Professional Studies.It Reveals That
The Digital Banking Services Are Mostly Used By The Educated Respondents Who
Are Exposed To Advanced Technology According To The Signs Of The Times. In
The Case Of Respondents With Primary Education They Find It Difficult In Using
And Adapting The Newly Introduced Technology.
INCOME

“Sell Your Brain To The Full To Earn As Much Large As Possible” Is The Golden
Advice Of Elders. Thus Earning Capacity Varies From Person To Person. By
Analyzing The Income We Can Decide The Standard Of Living Of The People Who
Are Making Use Of Digital Banking Services. Income May Be Permanent Or
Temporary. The Following Figure 4.4

Table 4.4

Imcome Wise Classification

S.No Income No.Of.Respondents Percentage

1 Less Than 5000p.M 44 22

2 Rs.5000-10.000p.M 58 29

3 Rs.15000-50000p.M 79 39.5

4 Above Rs.50000p.M 19 9.5

TOTAL 200 100

Source: Primary Data

Figure 4.2
 The Above Figure 4.2 Clearly Shows That 22 Percent (44) Of The
Respondents Are Earning Income Between Less Than 5000p.M.29 Percent (44) Of
The Respondents Are Earning Income Between 5000p.M And 39.5 Percent (79) Of
The Respondents Are Earning Income Rs.15000-50000p.M.9.5 Percent (19) Of The
Respondents Are Earning Income Above 50000p.M It Signifies That Majority Of The
Respondents Are Earning Good Income And Their Standard Of Living Is Also High
To Make Use Of Digital Banking Services.

OCCUPATION

The Standard Of Living Of The People Depends On The Basis Of

Occupation. This Also Decides The Reach Of E-Banking Services. People Choose
Their Career On The Basis Of Their Knowledge, Educational Skills Etc. The Class
Of People Who Performs Any Activity Or Offer Any Benefit To Another Which Is
Intangible And Does Not Result In The Transfer Of Ownership Of Any Physical
Object Is Service Class People. Such Service Classes Includes Services To Trade
Like Banking, Insurance; Professional Services Like Lawyers, Accountants,
Business Consultants And Also Consumer Services Such As Cleaners, Mechanics,
Plumbers Etc. The Class Of People Who Establishes Their Own Firm Or Company
By Their Own Or By Borrowed Capital Is Business Class People. A Class Of People
Who Owns Or Manages A Large Industrial Unit Or A Company Or A Factory Is
Called Industrialists. The Class Of People Who Keep Animals And Grows Food
Crops And Who Involve In Farming Is Called As Agriculturalists. The Class Of
People Who Is Studying In School, University Or College In Order To Improve Their
Knowledge And Not To Earn Money Comes Under Student Category5. The House
Wives Who Manage The Home In A Planned Way Are Called Homemakers. Hence,
A Study Was Made Based On These Employment Patterns Among The Sample
Respondents And It Is Presented In The Table 4.5
Table 4.5

Occupation-Wise Classification

S.No Occupation No.Of.Respondents Percentage

1 Student 92 46

2 Employee 56 28

3 Self-Employee 12 6

4 Business 26 13

5 Professional 14 7

TOTAL 200 100

Source: Primary Data

Table 4.3 Indicates That 46 Percent (92) Of The Sample Respondents

Belong To Student Category And Only 28 Percent (56) Of The Sample
Respondents Are Employee.Only 6 Percent (12) Of Sample Respondents Are
Self- Employee.13 Percent (26) Of The Sample Respondents Belong To
Business Category.7 Percent (14) Of The Sample Respondents Belong To
Professional.It Clears That The Professionals Feel It Is Easy To Access The
Banking Services Through Digital Banking As They Are More Familiar About
Information Technology.

MARITAL STATUS

There Were No Stastistically Significant Differences In Age,Gender,Psychotic

Features,Current Employment,Or Marital Status Between Patients With
Melanchololic And Non-Melancholic Features. Figure 4.3
Figure 4.3

Marital Status Wise Classification

Figure 4.3 Indicates That 29.5 Percent (59) Of The Sample Respondents Belong To
Married.70.5 Percent (141) Of The Respondents Are Un-Married .

AREA OF RESIDENCE

A Residential Area Is A Land Used In Which Housing Predominates, As Opposed To

Industrial And Commercial Areas. Housing May Vary Significantly Between, And
Through, Residential Areas. These Include Single-Family Housing, Multi-Family
Residential, Or Mobile Homes.Table 4.6

Table 4.6

Area Of Residence-Wise Classification

S.No Area Of No.Of.Respondents Percentage

Residence

1 Rural 65 32.5
 2 Urban 101 50.5

3 Semi- 34 17
Urban

TOTAL
200 10

Source: Primary Data

Figure 4.4

Figure 4.4 Indicates That 32.5 Percent (65) Of The Sample Respondents Belong To
Rural Area.50.5 Percent (101) Of The Sample Respondents Are In Urban Area .17
Percent (34) Of The Respondents Are Semi-Urban Area .In Urban Area Most Of The
Customer Are Using The Digital Banking.

WHICH SECTOR BANK DO YOU USE

Public Bank Offer Low Processing Fees, Faster Reduction In Interest Rate With
RBI REPO Rate Reduction, No Pre-Payment Charges And No Pre-Payment Period
Restriction. Private Bank Have Faster Processing ,Good Customer Care But High
Interest Rates And Charges. Table 4.7

Table 4.7
 Sector-Wise Classification

S.No Sector No.Of.Respondents Percentage

1 Public 141 70.5

2 Private 59 29.5

TOTAL 200 100

Source: Primary Data

Table 4.4 Shows The Respondents On The Basis Of Sector. The 70.5 Percentage

141 Respondents Are Public Sector, 29.5 Percentages59 Respondents Are Private

Sector.

DIGITAL BANKING CHANNEL TO CARRY OUT BANKING TRANSACTION

Automated Teller Machines (ATM) And Cash Dispensing Machines (CDM) Are The
Preferred Choices Of Majority Of Customer For Withdrawal And Remittance Of Cash
Respectively.Online (Internet Channel),Mobile (SMS) Channel, Contact Centre/IVR
Channel.Table 4.8

Table 4.8

Do You See Digital Banking Channel Classification

S.No Digital Banking No.Of.Respondents Percentage

Channel

1 Yes 169 84.5

2 No 31 15.5

200 100

Source: Primary Data

Figure 4.5
Table 4.5 Shows The Respondents On The Basis Of Banking Channel. The 84.5
Percentage And 169 Respondents Are Yes, 15.5percentages And 31 Respondents
Are No .Most Of The Customer Are Using Digital Banking Channel To Carry Out The
Transaction.

DURATION OF AVAILING DIGITAL BANKING

Duration Means The Period Of Time During Which Something Exists. People
Use Particular Product Or Service For Long Time If They Are Satisfied. In This
Study Duration Of Using Digital Banking Services Is Gauged And Presented

Table 4.9

DURATION OF AVAILING DIGITAL BANKING

S.No Use Digital No.Of.Respondents Percentage

Banking

1 Less Than 6 60 30
Month
 2 6 To 12 Month 47 23.5

3 13 To 24 Months 44 22

4 Above 24 Months 49 24.5

TOTAL 200 100

Source: Primary Data

Figure 4.6

Table 4.6 Indicates That 30percent (60) Of The Sample Respondents Belong To
Less Than 6 Month And 23.5 Percent (47) Of The Sample Respondents Are 6 To 12
Month
.Only 22percent (44) Of Sample Respondents Are 13 To 24 Month. 24.5 Percent
(49) Of The Sample Respondents Above 24 Month.

AWARE OF DIGITAL BANKING SERVICES

Aware Of Digital Banking. Digital Banking Allows Customer Of A Financial

Institution To Conduct Finicial Transactions On A Secure Operated By The
Institution
,Which Can Be A Retail Or Virtual Bank, Credit Union Or Building Society. It May
Include Of Any Transactions Related To Online Usage.Table 4.10

Table 4.10

Aware Of Digital Banking-Wise Classification

S.No Aware Of Digital No.Of.Respondents Percentage

Banking

1 Yes 182 91

2 No 18 9

TOTAL 200 100

Source: Primary Data

Table 4.7 Shows The Respondents On The Basis Of Aware Of Digital

Banking. The 91 Percentage And 182 Respondents Are Yes, 9
Percentages And 18 Respondents Are No.

SOURCE OF AWARENESS

Every Individual Is Influenced By Certain Mode By Which They Came To

Know About The Information Regarding The Product Or Services. Awareness
About Digital Banking Services Can Be Created After Hearing From Different
Sources. Such Sources Through Which The Respondents Utilize The Digital
Baking Services Are Mentioned In The Figure 4.7

Figure 4.7

Source Of Awareness
 Figure 4.7 Depicts That 37.5 Percent (75) Of The Sample Respondents Come
To Know About Digital Banking From Their Friends/Realatives And 8.5 Percent (17)
Of The Respondents Come To Know From Their Newspaper. 16 Percent (32) Of
The Sample Respondents Come To Know About From Their Advertisement. 23
Percent
(46) Of The Sample Respondents Come To Know About From Their Bank
Employees.6 Percent (12) Of The Sample Respondents Come To Know About From
Their Business Associates. 9 Percent (18) Of The Sample Respondents Come To
Know From Their Others..It Depicts That The Peer Group Motivation Is Very
Effective, As They Share Their True Experience In Using Digital Banking Services.

BANK PREFERENCE

Preference Means Favoring One Thing Over Another. Customers Prefer A

Particular Bank Because Of Various Reasons. It May Be Due To Convenient,
Prompt Service, Safety Etc. Shows The Customer Preference Towards A
Various Banks In Coimbatore.Table 4.11

Table 4.11

Bank Preference

S.No Bank No. Of Respondents Percentage

 1 SBI 75 37.5

2 Indian Overseas Bank 41 20.5

3 BANK OF INDIA 16 8

4 BANK OF BARODA 8 4

5 TMB 9 4.5

6 HDFC 26 13

7 ICICI 15 7.5

8 FEDERAL 10 5

TOTAL 200 100

Source: Primary Data

Table 4.8 Shows The Respondents On The Basis Of Bank Preference.37.5

Percentages And The 75 Respondents Are Sbi, 20.5percentages And The 41
Respondents Are IOB, 8 Percentages And The 16 Respondents Are Bank Of
Baroda,
4.5 Percentages 9 Respondents Are TMB .13 Percentages 26 Respondents Are
HDFC. 7.5 Percentages 15 Respondents Are ICICI. 5 Percentages 10 Respondents
Are Belong To Federal Bank.

DURATION OF AVAILING E-BANKING SERVICES

 Duration Means The Period Of Time During Which Something Exists.
People Use Particular Product Or Service For Long Time If They Are
Satisfied. In This Study Duration Of Using Digital Banking Services Is Gauged
And Presented In The Figure 4.8

Figure 4.8

Duration Of Usage

Figure 4.8 It Is Observed That Percent (34) And The 68 Respondents

Are Availing Digital Banking Services Less Than 1 Years And Per Cent (39.5)
And The Respondents Are Using Digital Banking Services1-2 Year.Percent
(26.5) And The 53 Respondents Are Availing Digital Banking Services More
Than 2 YearsIt Signifies That The Respondents Are Having More Awareness
And Technical Knowledge About Using Of Digital Banking Services For
Longer Period. Thus, It Also Indicates They Have More Satisfaction Towards
Digital Banking Services Provided By Their Banks.

PREFERENCE

Preference Is The Desires By Every Individual For The Consumption Of

Goods And Services That Translate Into Choice. It Is Based On Income Or Wealth
For Purchases Of Goods And Services To Be Combined With The Customer’s
Time To
Define Consumption Activities. Even Though All The Digital Banking Services
Reduce The Work Of The Customers, The Customer May Not Prefer All Of Them To
Transact Their Business With The Bank. Each Customer Has Their Own Preference
For A Particular Service Based On Their Level Of Comfortability And Satisfaction

Table4.12

Preference And Ranking Of E-Resources Accessed By The Faculty

S.NO Factor 1st 2nd 3rd 4th 5th Total

1 Electronic 32 33 65 30 40 200
Fund
Transfer
2 ATM 65 40 21 44 30 200

3 Mobile 52 44 33 35 36 200
Banking

4 For EX 26 40 33 45 56 200
Banking
Services

5 Fund Transfer 22 37 41 76 24 200

Table 4.13: Percent Position And Garret Value

S.NO Formulae Calculated Garret Value

Value

1 100 (1 – 0.5)/ 5 10 75

2 100 (2 – 0.5)/ 5 30 60

3 100 (3 – 0.5)/ 5 50 50
4 100 (4 – 0.5)/ 5 70 39

5 100 (5 – 0.5)/ 5 90 24

Table 4.14 : Calculation Of Garret Value And Ranking

Rank Given By The Respondents

S.NO Awareness 1 2 3 4 5 Total Percentag Rank

Factor e

1 Electronic 2400 1980 3250 1170 960 9760 48.8 3rd

Fund
Transfer

2 ATM 4875 2400 1050 1716 720 10761 53.81 1st

3 Mobile 3900 2640 1650 1365 864 10419 52.09 2nd

Banking

4 For EX 1950 2400 1650 1755 1344 9099 45.5 4th

Banking
Services

5 Fund 1650 2220 2050 1824 576 41.6 5th

8320
Transfer

Source: Primary Data

The Table 4.12 Reveals The Customer’s Preference Towards Digital Banking.
In This Regard,ATMHas Been Ranked First By The Respondents With The
Percentage Of 53.81, Mobile BankingHas Been Ranked Second With A
Percentage Of 52.09.Electronic Fund Transfer Has Been Ranked Third With
A Percentage Of 48.8.For EX Banking Services Has Been Ranked Fourth With
A Percentage Of 45.5 And Fund Transfer Has Been Ranked Fifth With A
Percentage Of 41.6. It Signifies That The Respondents Feel Comfortable And
Safe To Awareness Factor.

PURPOSE OF USAGE

Customers Use Digital Banking Services For Various Purposes. The

Purpose Of Usage Differs From Customer To Customer According To Their
Needs And Preferences. The Following Table Shows The Rank Given By
Sample Respondents On Various Purposes.

Table 4.15: Preference And Ranking Of E-Resources Accessed By The Faculty

S.NO Factor 1 2 3 4 5 6 7 8 9 10 Total

1 Balance Enquiry 53 25 14 27 21 15 9 12 11 13 200

2 Generating 22 27 24 30 24 18 19 13 13 10 200
Accounts
Statement

3 Paying Utility Bill 12 27 30 30 23 20 23 11 12 12 200

4 Mobile/DTH/Other 21 22 27 30 23 15 18 18 14 12 200
Recharge

5 Funds Transfer 30 26 29 20 32 6 10 20 11 16 200

/RTGS/NEFT/To
Other Accounts

6 Cash Withdrawal 21 26 14 24 29 19 13 18 19 17 200

Through ATM

7 Cash 15 24 30 23 22 16 15 16 20 19 200
Deposits(Through
ATM)

8 Online Shopping 16 18 22 21 26 20 21 18 18 20 200

9 Online Tax/Fee 21 18 23 19 21 28 20 17 14 20 200

Payments
 10 Payments 21 18 26 24 21 16 19 15 19 21 200
Through
ATM/POS

Table 4.16: Percent Position And Garret Value

S.NO Formula Calculated Garret

Value Value

1 100(1-0.5)/10 5 81

2 100(2-0.5)/10 15 70

3 100(3-0.5)/10 25 63

4 100(4-0.5)/10 35 58

5 100(5-0.5)/10 45 52

6 100(6-0.5)/10 55 48

7 100(7-0.5)/10 65 42

8 100(8-0.5)/10 75 37

9 100(9-0.5)/10 85 29

10 100(10-0.5)/10 95 18

Table 4.17 : Calculation Of Garret Value And Ranking

Rank Given By The Respondents

S.NO Awareness Factor 1 2 3 4 5 6 7 8 9 10 Total % Ran

k

1 Balance Enquiry 4293 175 882 1566 109 720 37 44 31 23 11678 58.39 1st
0 2 8 4 9 4

2 Generating 1782 189 151 1740 124 864 79 48 37 18 10872 54.36 3rd
Accounts 0 2 8 8 1 7 0
 Statement

3 Paying Utility Bill 972 189 189 1740 119 960 96 40 34 21 10585 52.92 5th
0 0 6 6 7 8 6

4 Mobile/DTH/Othe 1701 154 170 1740 119 720 75 66 40 21 10642 53.21 4th
r Recharge 0 1 6 6 6 6 6

5 Funds Transfer 2430 182 182 1160 166 288 42 74 31 28 10956 54.78 2rd
/RTGS/NEFT/To 0 7 4 0 0 9 8
Other Accounts

6 Cash Withdrawal 1701 182 882 1392 150 912 54 66 55 30 10284 51.42 6th
Through ATM 0 8 6 6 1 6

7 Cash 1215 168 189 1334 114 720 63 59 58 34 10127 50.63 9th
Deposits(Throug 0 0 4 0 2 0 2
h ATM)

8 Online Shopping 1296 126 138 1218 135 960 88 66 52 36 9902 49.51 10th
0 6 2 2 6 2 0

9 Online Tax/Fee 1701 126 144 1102 109 134 84 62 40 36 10183 50.91 7th
Payments 0 9 2 4 0 9 6 0

10 Payments 1701 126 163 1392 109 768 79 55 55 37 10133 50.66 8th
Through 0 8 2 8 5 1 8
ATM/POS

Source: Primary Data

The Table 4.15 Reveals The Customer’s Preference Towards Digital Banking.
In This Regard,Balance EnquiryHas Been Ranked First By The Respondents With
The Percentage Of 53.39, Funds Transfer /RTGS/NEFT/To Other Accounts Has
Been Ranked Second With A Percentage Of 54.78 .Generating Accounts Statement
Has Been Ranked Third With A Percentage Of 54.36.Mobile/DTH/Other Recharge
Has Been Ranked Fourth With A Percentage Of 53.21. Paying Utility Bill Has Been
Ranked Fifth With A Percentage Of 52.92.Cash Withdrawal Through ATMHas Been
Ranked Sixth With A Percentage Of 51.42. Online Tax/Fee Payments Has Been
Ranked Seventh With A Percentage Of 50.91.Payments Through ATM/POSHas
Been Ranked Eighth With A Percentage Of 50.66. Cash Deposits(Through ATM)
Has Been Ranked
Ninth With A Percentage Of 50.63. Online Shopping Has Been Ranked Tenth With A
Percentage Of 49.51.Signifies That The Respondents Feel Comfortable And Safe To
Awareness Factor.

FREQUENTLY OF DIGITAL BANKING

It Refers To Degree An Experience Is Repetitive Over Time Frequency Of

Use In This Study Refers To How Often An Individual Would Visit An Online
Webside, We Define Frequency In Terms Of Quantity .Table 4.18

Table 4.18

FREQUENTLY OF DIGITAL BANKING

S.No Frequently Of No.Of.Respondents Percentage

Digital Banking

1 Daily 29.5 59

2 Rarely 27.5 55

3 Occasionally 17 34

4 Monthly 26 52

TOTAL 200 100

Source: Primary Data

Figure 4.9
Table 4.9 Indicates That 29.5 Percent (59) Of The Sample Respondents Are Daily
Using And 27.5 Percent (55) Of The Sample Respondents Are Rarely..Only 17
Percent (34) Of Sample Respondents Are Occasionally. 26 Percent (52) Of The
Sample Respondents Are Monthly.

PROBLEMS

In The Competitive World Everything Is Complicated And Risky

Particularly Making Any Transaction Through Internet. Even Though Digital
Banking Offers A Higher Level Of Convenience For Managing One's Finances
Even From Their Bedroom; It Continues To Present Challenges To The
Financial Security And Personal Privacy. Garrett’s Ranking Technique Is
Used To Rank The Problems Faced By The Respondents While Using Digital
Banking Services And It Is Presented In The Table 4.19.

Table 4.19 : Preference And Ranking Of E-Resources Accessed By The Faculty

S.NO FACTOR 1 2 3 4 5 6 7 TOTAL

1 Innovative 44 25 31 22 27 21 30 200
Technology

2 Availability Of 24 30 46 33 34 14 19 200
24/7 Banking
Services

3 Technology 34 48 28 25 24 20 21 200
Upgradation
4 Avoid Standing 28 37 31 35 26 30 23 200
In Queues

5 Cashless 22 18 22 39 40 41 18 200
Transaction

6 Safety And 33 21 27 29 23 21 46 200

Secure

7 Cash 29 32 28 24 37 29 21 200
Back/Promo
Coral Offers

Table 4.20: Percent Position And Garret Value

S.NO Formula Calculated Value Garret Value

1 100(1-0.5)/7 7.1 78

2 100(2-0.5)/7 21.4 66

3 100(3-0.5)/7 35.7 57

4 100(4-0.5)/7 50 50

5 100(5-0.5)/7 64.2 43

6 100(6-0.5)/7 78.5 34

7 100(7-0.5)/7 92.8 21

Table 4.21 : Calculation Of Garret Value And Ranking

 Rank Given By The Respondents

S.NO Awareness 1 2 3 4 5 6 7 Total % Rank

1 Innovative 3432 1650 1767 1100 1161 714 630 10454 52.27 3rd
Technology

2 Availability 1872 1980 2622 1650 1462 476 399 10461 52.31 2nd
Of 24/7
Banking
Services

3 Technology 2652 3168 1596 1250 1032 680 1197 11575 57.88 1st
Upgradation

4 Avoid 2184 2442 1767 1750 1118 680 483 10424 52.12 4th
Standing In
Queues

5 Cashless 1716 1188 1254 1950 1720 1394 378 9600 48.0 6th
Transaction

6 Safety And 2574 1386 1539 1450 989 714 966 9618 48.09 7th
Secure

7 Cash 2262 2112 1596 1200 1591 989 441 10188 50.94 5th
Back/Promo
Coral Offers

Source: Primary Data

The Table 4.21 Reveals The Customer’s Problems Towards Digital Banking. In This
Regard,Technology UpgradationHas Been Ranked First By The Respondents With
The Percentage Of 57.88, Availability Of 24/7 Banking ServicesHas Been Ranked
Second With A Percentage Of 52.31 .Innovative TechnologyHas Been Ranked Third
With A Percentage Of 52.27.Avoid Standing In Queues Has Been Ranked Fourth
With A Percentage Of 52.12. Cash Back/Promo Coral Offers Has Been Ranked Fifth
With A Percentage Of 50.942.Cashless Transaction Has Been Ranked Sixth With A
Percentage Of 48. Safety And SecureHas Been Ranked Seventh With A Percentage
Of 48.09Hence, If Any Doubt Arises While Performing Banking Transaction
The
 Respondents Find Difficulty To Clarify Their Doubts.

CUSTOMER SATISFACTION

Satisfaction Refers To The Customer’s Emotional Evaluation Of Their

Experiences With The Consumption Or Ownership Of Specific Goods And Services.
Customer Satisfaction In Service Industries Is Related To The Service Perceptions
And Expectations. Customer Satisfaction Will Vary From Person To Person And
Product To Product. The Table Below Presents The Satisfaction Of The
Respondents With Regard To Various Digital Baking Services. Likerts 5 Point
Scaling Technique Is Used To Find Out The Level Of Satisfaction Of The Sample
Respondents.

Table 4.22

Level Of Satisfaction

S.No Services Highly Satisfied Moderate Dis Highly Total Rank

Satisfied Satisfied Dis
Satisfied

1 Difficulties In 96 59 26 12 7 200 I
Implementation
(480) (236) (78) (24) (7) (825)
Of Global
Technology

2 Neccessity Of 39 98 39 19 5 200 II
Internet
(195) (392) (117) (38) (5) (747)
Services

3 Issues Of 36 63 66 26 9 200 V
Security
(180) (252) (198) (52) (9) (691)

4 Customer Care 36 71 46 33 14 200 V1

Services
(180) (284) (138) (66) (14) (682)
5 Security 42 64 56 21 17 200 IV
Precautions
(210) (256) (168) (42) (17) (693)

Technical 56 47 62 18 17 200
6 Difficulties
(280) (188) (186) (36) (17) (707) III

Source: Primary Data

The Table 4.22 Shows The Level Of Satisfaction Of The Sample

Respondents. It Is Evident That, TheFirst Rank Is Given To Difficulties In
Implementation Of Global Technology Because It Scored 825 Points, The
Second Rank Is Given To Neccessity Of Internet Services Scored 747 And Third
Rank Is Given To Issues OfTechnical Difficulties707 Points Respectively .Fourth
Rank Is Given To Security Precautions 693 Points.Fifth Rank Is Given ToIssues
Of Security Which Scored 691 Points. Finally Sixth Rank Is Given To Customer
Care Services Scored 682.Hence, It Is Analysed That The Customer
Satisfaction Provided By The Digital Banking Services.

CHAPTER- V
 FINDINGS, SUGGESTIONS AND CONCLUSION

In This Chapter The Researcher Has Summarized The Findings,

Suggestions And Presented The Conclusion.

Findings

Customer’s Preference Towards Digital Banking Was Studied On The

Basis Of The Objectives Set Forth In The Introductory Chapter. The
Respondents Also Showed Keen Interest In The Study And Added Their
Opinion About The Digital Banking Services. On The Basis Of The Analysis,
The Findings Were Made.

 Majority (52%) Of Respondents Are Male.

 Majority (43.5) Of Respondents Are Full In The Age Category Of Is

20 Years. Lease (15%) Of The Respondent Full In The Age
Category Of Is 26-30 Years.

 Majority (63%) Of The Respondent Are Graduate. Lease (3%) Of The

Respondent Are Illiterate.

 Majority (39.5%) Of The Respondent Are Monthly Income Full

Rs.15000-50000.Lease (9.5%) Of The Respondent Are Monthly
Income Full Above Rs.50000.

 Majority (46%) Of The Respondent Were Student. Lease (6%) Are Self
Employee.

 Majority (70.5) Of The Respondent Were Unmarried.

 Majority (50.5%) Of The Respondent Were Urban Lease (17%) Are

Semi Urban.

 Majority (70.5%) Of The Respondent Are Public Sector Bank.

 Majority (84.5%) Of The Respondent Are Yes .

  Majority (30%) Of The Respondent Are 6 Month. Lease (22%) Of The

Respondent Are 13-24 Months.

 Majority (91%) Of The Respondent Are Yes.

 Majority (37.5) Of The Respondent Friends/Relatives.Lease (6%) Of

The Respondent Are Business Associates.

 Majority (37.5%) Of The Respondent For SBI Bank.Lease (4%) Of The

Respondent Are Indian Bank.

 Majority (39.5%) Of The Respondent Are 1-2 Years.Lease (26.5%) Of

The Respondent Are More Than 2 Years.

 Majority (53.81%) Of The Respondents Are Give First Rank To ATM.

 Majority (58.39%) Of The Respondents Are Give First Rank To Balance

Enquiry.

 Majority (29.5) Of Respondent Are Using Daily.Lease (17%) Of

Respondent Are Occasionally.

 Majority (57.88%) Of The Respondents Are Give First Rank To Technology

Upgradation.

 Majority Of The Respondents Are Give First Rank To Difficulties In

Implementation Of Global Technology.

Suggestions

In View Of The Findings Of This Study It Is Concluded That Electronic

Digital Banking In Coimbatore Is Yet To Create Significant Impact On Service
Delivery. Based On The Findings The Following Suggestions Were Given:

> The Bank Should Make Some Efforts To Familiarize The

Customers To Various Services Through Demonstrations.
> The Bank Should Adopt Upgraded Techniques To Make Their
Customer Feel More Secure While Accessing Their Accounts.

> The Banks Should Take Steps To Create A Trust In Mind Of

Customers Towards Security Of Their Accounts.

> Awareness Should Be Created About The Availability Of

Electronic Banking Products And Services And Their Benefits.

> The Banks May Improve The Satisfaction Level Of Customers By

Developing The Technology To Provide Quick And Fast Access To
Their Functions.
> Fair Dealing With The Customers Is Essential. The Bank Staff
Should Be Co-Operative, Friendly And Must Be Capable Of
Understanding The Problems Of The Customers.
> The Bank Should Makes A Effort To Provide A Platform From
were The Customer Can Access Different Accounts At Single Time
Without Extra Charge.

> The Mechanism Or The Way Of Using Online Banking, E-Payment,

Digital Banking Etc., Should Be Made Easy, So That It Can Be Used
Even By The Less Educated People.
> Government Should Provide Adequate Regulatory Framework That
Will Ensure Customer Protection, And Security Of Transaction.
Hence, Bank Customers’ Confidence In Electronic Banking Would
Be Secured.
> The Banks Should Make Their Sites More Users Friendly. So
That It Makes The Customers Motivated To Use Digital Banking
Facilities More.
Conclusion

Electronic Banking Has Become A Necessary Survival Weapon And

Is Fundamentally Changing The Banking Industry Worldwide. The
Invasion Of Banking By Technology Has Created An Information
Age
 And Rendered Banking Services More Appealing. It Is Evident From
The Present Study That The Customers Prefer E-Channels With
Time And Cost Utility Which Provide Efficient Services 1. Although,
There Are Some Drawbacks In Digital Banking Like,
Paytm,Googlepay Out Of Order, Lack Of Personal Service, Security
Concern Etc., But Still The Digital Banking Is Preferred As The
Customer Feels That, It Is Essential In This Competitive World. So,
The Banks Have To Upgrade And Constantly Think Of New
Innovative Customized Packages And Services To Remain
Competitive. Proper Training Should Be Given To Customer By The
Bank Employees To Open An Account Will Be Beneficial Secondly
The Website Should User Friendly, So That The Customers Can
Easily Access To Their Accounts, This Will Retain The Customer To
Use Digital Banking Services. In Future, The Availability Of
Technology To Ensure Safety And Privacy Of E- Transactions And
The RBI Guidelines On Various Aspects Of Internet Banking Will
Definitely Help In Rapid Growth Of Digital Banking In India. Also,
The Digital Banking Services Should Be Provided According To The
Customers’ Expectations And Need Of The Time. It Will Help To
Enhance Service Quality Of Digital Banking And Increase The
Level Of Customers’ Satisfaction In Digital Banking.

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NKING_IN_INDIA-_A_CASE_STUDY_OF_HDFC_BANK
 Customer Satisfaction Towards Digital Banking Service
Questionnaire

1. Gender

a) Male ( ) b) Female ( )

2. Age Group

a) Less than 20 years ( ) b) 21-25 years ( )

c) 26-30 years ( ) d) Above 31 years ( )

3.Education

a) Illiterate ( ) b) High School ( )

C) Graduate ( ) d) Post –Graduate ( ) e) Professional Studies

( )

4. Income
 a)Less than 5000 p.m ( ) b)Rs. 5000-10,000 p.m ( )

c)Rs.15,000-50,000 p.m ( ) d) Above Rs. 50,000 p.m ( )

5. Occupation

a) Student ( ) b) Employee ( ) c) Self – Employee ( )

d) Business ( ) e) Professional ( )

6. Marital Status

a) Married ( ) b) Un married ( )

7. Area of Residence

a) Rural ( ) b) Urban ( ) e) Semi Urban ( )

8. Which sector bank do you use

a) Public Sector Bank ( ) b) Private Sector Bank ( ) c) Others ( )

9. Do you use digital banking channel to carry out banking transactions

a) Yes ( ) b) No ( )

10. How long you use digital banking services?

a) Less than 6 month ( ) b) 6 to 12 Months ( )

c) 13-24 Months ( ) d) Above 24 Months ( )

11. Are you aware about Digital Banking services

a)Yes ( ) b) No ( )

12. How did you come to know about Digital banking services of bank?

a) Friends /Relatives ( )

b) News Paper ( )

c) Advertisement ( )

d) Bank Employees ( )

e) Business Associates ( )

f) Others ( )
 13. Which bank digital banking platform do you use?

Public SBI IOB Bank of Indian Bank of TMB

Sector India Bank Baroda
Bank

Private HDFC - ICICI - - Federal

Sector
Bank

14. How long do you bank with your current banker

a) Less than 1 year ( ) b) 1-2 years ( ) c) More than 2 years

( )

15. Awareness towards Digital banking Services

(Based on your preference rank the services from 1 to 5 )

a. Electronic Fund Transfer (EFT) ( )

b. ATM ( )

c. Mobile Banking ( )

d. For EX banking services ( )

e. Fund Transfer ( )

16. What kind of transactions do you prefer in Digital banking

Services (Based on your preference rank the services from 1 to 5 )

a) Balance Enquiry ( )

b) Generating Accounts Statement ( )

c) Paying Utility Bill ( Electricity/telephone/ Gas bill etc) ( )

 d) Mobile/DTH/Other recharge ( )

e) Funds transfer / RTGS/ NEFT/ to other accounts ( )

f) Cash withdrawal through ATM ( )

g) Cash deposits ( Through ATM) ( )

h) Online shopping ( )

g) Online Tax / Fee payments ( )

h) Payments through ATM/ POS ( )

17. How frequently do you use Digital Banking services?

a) Daily ( ) b) Rarely ( ) c) Occasionally ( ) d) Monthly ( )

18. Why do you use digital banking services?

(Based on your preference rank the services from 1 to 5 )

a) Innovative Technology ( )

b) Availability of 24/7 Banking services ( )

c) Technology Upgradation ( )

d) Avoid standing in Queues ( )

e) Cashless Transaction ( )

f) Safety and Secure ( )

g) Cash Back / Promo code offers ( )

19. State your level of difficulties on using Digital Banking Services

( HS – Highly Satisfied S- Satisfied N – Neutral DS- Dis Satisfied HDS –

Highly Dis satisfied)

HS S N DS HDS
 1. Difficulties in Implementation of Global technology ( ) ( ) ( ) ( )
( )

2.Necessity of Internet services ( ) ( ) ( ) ( )

( )

3. Issues of security ( ) ( ) ( ) ( ) ( )

4. Customer care ( ) ( ) ( ) ( )
services ( )

5.Security Precautions ( ) ( ) ( ) ( ) ( )
6.Technical difficulties ( ) ( ) ( ) ( ) ( )

20. To improve any suggestion :