SUMMER INTERNSHIP PROJECT ON

HOW DIGITALIZATION IMPROVED BANKING

(HDFC BANK DIGITAL SERVICES)

Submitted By Submitted To
Akshay Jain (M-3007) Dr. Manju Nair
Enrol. No. MBA/2018/3734
Dr. Gargi Sharma
18MIIXX606
INDEX
 Introduction of Banking
 Introduction of Digitalization
 Introduction of HDFC Bank
 Products of HDFC Bank
 Digital Services of HDFC Bank
 Objectives of study
 Research Methodology
 Data Analysis and Interpretation
 Major Recommendations
 Annexure
 References
INTRODUCTION OF BANKING
 Banking Means "Accepting Deposits for the purpose of lending or Investment of
deposits of money from the public, repayable on demand or otherwise and
withdraw by cheque, draft or otherwise."
-Banking Companies
(Regulation) Act,1949
 In India first bank was established in 1786 with a name Bank of Bengal.
 In 1935 RBI was established under Reserve bank of India Act, 1934.
 In 1949 RBI was gone under the hands of Govt. of India and become nationalized.
 There are 19 Nationalized Banks, 22 Private Banks, 10 SFB’s, 7 Payments Banks
and 48 RRB’s working in Indian subcontinent.
FUNCTIONS OF BANKS

Secondary Functions Utility Functions

Primary Functions
 Agency functions  Safe custody of
 Acceptance of  Collection of cheques & Bills customers valuable
Deposits etc. articles & securities.
 Making loans &  Collection of interest and  Providing trade
advances dividends. information
 Making payment on behalf  Issuing of traveller's
 Loans of customers cheque letter of credit.
 Overdraft  Purchase & sale of  Facility of foreign
securities exchanges
 Cash Credit
 Facility of transfer of funds  Underwriting facility
 Discounting of bills of  To act as trustee &
exchange executor.
INTRODUCTION OF DIGITALIZATION
 Digital Banking is the application of technology to ensure seamless end-to-
end processing of banking transactions/operations; initiated by the client,
ensuring maximum utility; to the client in terms of availability, usefulness and
cost; to the bank in terms of reduced operating costs, zero errors and
enhanced services.
 ICICI was the first Indian Bank who provide internet banking facility.
 Some digital applications
 Net banking
 Phone banking/ Mobile banking
 Banking applications
 Payment gateways
BENEFITS OF DIGITALIZATION

 Reward Points and cashback offers

 Payments of utility bills
 Availing discounts coupons
 24*7 availability of banking services
 Maintains payment history records
 Reduction in payment costs
 Easy to access
INTRODUCTION OF HDFC BANK

 Housing development financial corporations was established in

1994 and starting its working in Jan. 1995.
 Vision- To be customer driven best managed enterprise that
enjoys market leadership in providing housing related finance.
 Mission- is to be “a world class bank”, benchmarking
themselves against international standards and best practices
in terms of product offerings, technology, service levels, risk
management and audit and compliance.
CONT....

 HDFC has 1,04,154 employees along with 5130 branches in 2764 cities and
13,395 ATM’s in India.
 HDFC bank has 25 millions active customers in India.
 Ranked 1st in 2019 BrandZ Top 75 Most Valuable Indian Brands HDFC bank
was featured for the 6th consecutive year.
 India’s Best bank, Euromoney Awards for Excellence 2019.
 Best Bank in India 2019, by Global magazine FinanceAsia.
 HDFC Bank’s Parivartan Initiate has spent 443.8 crore INR towards CSR in
2019.
 Currently headed by Shyamala Gopinath as a chair person of HDFC BANK.
 PRODUCTS OF HDFC BANK
SAVINGS ACCOUNTS
 Savings Max Account
 Regular Savings Account
 Women Savings Account
 Kids Advantage Account
 Senior Citizens Account
 Family Savings Group
Account
 Basic Savings Bank Deposit
Account
 Institutional Savings Account
 BSBDA Small Account
SALARY ACCOUNTS
 Premium Salary Account
 Regular Salary Account
 Defense Salary Account
 Salary Family Account
 Classic Salary Account
 Reimbursement Account
 Basic Savings Bank Deposit
Accounts – Salary
CURRENT ACCOUNTS
 Supreme Current Account
 ULTIMA Current
Account     
 Apex Current Account
 EZEE Current Account
 Max Current Account
 Agri Current Account
 Plus Current Account
 Current Account for
Hospitals and Nursing
Homes
CONT…

LOANS INVESTMENTS CREDIT CARDS

 Personal Loan  Regular Fixed  Business Money Back
 Home Loan Deposit  Infinia
 Business Loan
 Recurring Deposit  Regalia
 Agriculture Loan
 5 year Tax Saving  Diner’s Club Black
Fixed Deposit
 Auto Loan  Jet Privilege HDFC Bank
 Safe Deposit Locker
 Consumer Durable World
Loan  Jet Privilege HDFC Bank
 Education Loan Platinum
 Gold Loan  Platinum Times Card
 Titanium Times Card
DIGITAL SERVICES OF HDFC BANK
 PayZapp
 Mobile Banking
 Phone Banking
 Net Banking
 HDFC BANK watch Banking
 Chillr
 Digital Wallet
 30 minutes Auto loan, 15 Minutes Two Wheeler Loan, 10 Minutes Personal
Loan
OBJECTIVES OF STUDY

 To identify the awareness and usage of Digital-Banking.

 To study the impact of digitalization.
 To know how banking services improved after digitalization.
 To study the satisfaction level of the respondents.
RESEARCH METHODOLOGY
 The methodology may include publication research, interviews, surveys and
other research techniques.
 In this report I have used Descriptive research technique.

 For my survey I have used Convenience sampling technique.

 SAMPLE SIZE - Sample of 200 people was taken in order to conduct the
research.
 UNIVERSE - In accordance to the specified research at Madhyam Marg,
Mansarovar, Jaipur .
 PRIMARY DATA is the data which has been collected through personal contact.
 Through Questionnaire
 Through Personal Interaction
 SECONDARY DATA is the data which are available in the form of
fact and figures. The sources of secondary data are:
 Websites
 Magazines
 Articles
 Data Collection Tools:
For my survey I have used Pie chart, Graphs.
 Methods of Data Collection:
For my survey I have collected data through Questionnaire.
 Limitations of study:
 This study is limited only to the customers of the HDFC bank,
Madhyam Marg, Mansarovar, Jaipur.
 The responses of the customers may be biased.
 Sample size is limited to 200.
DATA ANALYSIS AND
INTERPRETATION
Q1. What type of account you have in HDFC 15% 3% 2%
Bank?
Savings Account
Current Account
 Out of 200 respondents that I have taken for Salary Account
my survey 80% respondents have saving 80% Other
account, 15% have current account, 3%
have salary account and 2% respondents
have other account which include NRI and
fixed deposit account in the bank. It means
that the bank has a very good amount of
saving account customers as compare to the
other account.
Q2. Since how long you are having 33% 15%
account in HDFC Bank?
0-1 Year
27% 1-2 Years
 Out of 200 respondents 33% 2-3 Years
25% 3 Years & above
have their account in HDFC Bank
from the last 3 years and more.
Q3. According to you what is more
convenient way for banking?
10%

 When the customers are asked about

their preference between branch
banking and digital banking 90%
customers preferred digital banking
90%
and 10% customers preferred branch
banking as a mode of their banking
transaction. Above graph reveals their
preferences for the both.
Branch Banking Digital Banking
Q4. Do you use Digital Banking
Services of HDFC Bank?

Yes
 Out of the 200 respondents No
all the 100% of them use
digital banking services of 100%
HDFC bank.
 90

80
80

70 68
Q5. What are your reasons for
60
choosing our Digital banking services? 60

50

 Out of the 200 respondents 60% use 40

digital banking services for 30

convenience, 80% use to save time
and 68% use due to 24 hour access. 20

10

0
0
Convenience To save time 24 Hour access Security reasons
 120

100
Q6. Which Digital banking services 100

do you use at HDFC Bank? 80 75

60
60
 Out of the 200 respondents 75% of 40
them use internet banking, 60% 24
out of 200 use mobile banking, 20
4
24% of 200 use phone banking, 0
4% of 200 are using insta in
g
i ng in
g
ue
ry
AT
M
n k nk n k
Q
alerts/sms/query, and all the 100% Ba Ba Ba S/
et ile n e
/ SM
rn b
ho
of respondents use ATM service. te M
o
P er
ts
In Al
s ta
In
 100
90
90

80 78
For what purpose you use Digital
banking services at HDFC Bank? 70

60

50
45
 Out of the 200 respondents 40 36
90% use digital banking
30
services for money transfer,
45% use to pay bill, 78% use 20

to get balance details, 36% 10

use for recharge. 0

0 0

Money Pay Bill Balance Recharge Loan Order

Transfer Details related Cheque
Query book
Are you aware about HDFC Bank Digital
Initiatives i.e. Go digital? 45%

55%
 As shown in the above pie chart 45%
respondents out of 200 are aware
about HDFC bank Go digital initiative
while 55% of them are not aware.

Yes No
 120

100
100
Which Digital Initiative of HDFC you know about?
80 75

 Out of 200 respondents that I have taken for

my survey approximately 55% customers do 60
60

not know about Go digital initiative because

they are not much aware about this facility. 40
45% of them are aware about some initiative
and out of those 45% customers 88.88% know 24

about PayZaap, 78.33% know about Chillr, 20

28.88% know about Digital wallet, and 44.44% 4

know about Watch banking. 0

Internet Mobile Phone Insta ATM
Banking Banking Banking Alerts/SMS/
Query
 40%

Do you use HDFC Bank Go Digital banking

services?

60%
 Out of 200 respondents 40% of them
use HDFC Bank Go Digital banking
services and 60% do not use it.

Yes No
 2%

Do you think HDFC Bank banking services has

improved through Digitalization?

 Out of 100 respondents 98% thinks that

digitalization improved the banking services
98%
of HDFC bank and 2% of the respondents
do not think that digitalization has
improved the banking services.

Yes No
 18%
Please rate that how much 14%

Digitalization has improved the Banking

Services?

 Out of 200 respondents 14% of them

rate 5 stars to the digital
improvement in the banking services, 68%
68% rate it 4 stars, and 18% rate 3
stars.

5 Stars 4 StARS 3 Stars 2 Stars 1 Star

What is your level of satisfaction with HDFC 2%
Bank Digital Services? 33%

 Satisfaction level is very important for the

direct banking channel of bank. In above
graph we can see that 65% Customers are
satisfied with HDFC bank digital services,
33% customers are fully satisfied and only 65%
2% are somewhat satisfied. It indicates that
HDFC bank customers have high satisfaction
level from the services they get.
Fully Satisfied Satisfied
Somewhat satisfied Not satisfied
 FINDINGS
 Most of respondents who are not using the Go Digital initiatives of the bank, it is
because they are not much aware about the initiatives of the bank.
 The customer are using the digital banking services for few purpose it means the use
of the digital banking channel is limited for few transaction.
 Most of respondent who are using the digital banking services are satisfied with the
service of the bank for the particular digital banking service.
 The response of the respondents indicates that digitalization has a good and positive
impact on the banking services.
 According to the response of the respondents it shows that digitalization improved the
banking services very much for the customers.
MAJOR RECOMMENDATION

 The bank may improve existing facilities in rural areas through advertising,
spread awareness about computer and internet banking.
 The best way to motivate the customer to use digital banking is more
efficient customer care service.
 Bank should educate the customer about the usage of digital banking
services and also about their advantages.
 Banks should work toward securing Net banking by using security features
to eliminate threat of online fraud.
ANNEXURE
REFERENCES
 HDFC Bank. (2019, October 3). Retrieved October 13, 2019, from 
https://en.m.wikipedia.org/wiki/HDFC_Bank.

 (n.d.). Retrieved October 13, 2019, from https://m.rbi.org.in//scripts/banklinks.aspx.

 (n.d.) Retrieved October 13, 2019, From 

https://www.hdfcbank.com/aboutus/general/distribution_network.htm

 Standard, B. (n.d.). HDFC Bank Ltd. Retrieved October 13, 2019, from 
https://wap.business-standard.com/company/hdfc-bank-4987/information/company-history.
Any Questions?