DIGITALIZATION IN BANKING SECTOR

AT HDFC BANK – LUCKNOW

A Summer Internship Report

SUBMITTED TO

International Management Institute

Bhubaneswar

IN PARTIAL FULFILMENT FOR THE AWARD OF

POST GRADUATE DIPLOMA

in
MANAGEMENT

By
PRAGYA DIXIT

2019

1|Page
 ACKNOWLEDGEMENT

No project report ever reflects the efforts of a single individual. The report owes its existence to the constant
support and guidance of a number of people. I am grateful to all of them.

I owe a never-ending debt of gratitude to mentor from HDFC bank Mrs. Soma Dheer and Project Internal
Guide Prof. Rohit Vishal Kumar for their expert guidance and support.

I would like to thank all the respondents for giving their valuable time and providing useful information.
I am also grateful to all those who have either directly or indirectly contributed towards the completion of the
project, for their support and encouragement.

2|Page
 STUDENT’S UNDERTAKING

I Pragya Dixit bearing Institute Roll No.18PGDM-BHU051 declare that the summer project titled
“Digitalization in banking sector” is my original work and completed under the supervisions of Mrs.
Soma Dheer of HDFC Bank and Prof. Rohit Vishal Kumar of IMI Bhubaneswar. Further, I also
declare that the report being submitted herewith is free of any textual plagiarism.

Signature: Pragya Dixit

Date: 31 May, 2019

Place: IMI Bhubaneswar

3|Page
 APPROVAL OF THE FACULTY GUIDE:

Recommended that the Summer Internship Report titled “Digitalization in banking sector” prepared
by Ms. Pragya Dixit under my supervision and guidance be accepted as fulfilling this part of the
requirements for the award of Post Graduate Diploma in Management. To the best of my
knowledge, the contents of this report did not form a basis for the award of any previous degree/
diploma to anybody else.

Date:

Signature: Signature:

Name of the Guide: Name of the Guide:

4|Page
 TABLE OF CONTENT

CHAPTER 1: INTRODUCTION
1.1 EXECUTIVE SUMMARY
1.2 PROBLEM STATEMENT
1.3 ABOUT HDFC BANK
1.4 ABOUT DIGITAL PRODUCTS
1.5 SWOT ANALYSIS
1.6 PESTEL ANALYSIS
1.7 PORTER’S FIVE FORCES ANALYSIS
CHAPTER 2: ABOUT THE STUDY
2.1 OBJECTIVE OF THE STUDY
2.2 LITERATURE REVIEW
2.3 TECHNOLOGY ACCEPTANCE MODEL
CHAPTER 3: RESEARCH
3.1 RESEARCH METHODOLOGY
3. 2 TYPE OF RESEARCH DESIGN USED
3.3 DATA SOURCE

3.4 DATA ANALYSIS AND INTERPRETATION

3.5 FINDINGS
3.6 RECOMMENDATIONS
3.7 LEARNINGS
3.8 LIMITATIONS
ANNEXURE-2
REFERNCES

5|Page
 1.1 EXECUTIVE SUMMARY:

Digital modernization gives traditional banks a chance to compete in the global market. A smart
approach positions them to deepen customer satisfaction, to drive long-term relationships and
profitability. Such an approach also has the potential to meet consumers’ expectations. Digital
Transformation is far beyond just moving from traditional banking to a digital world. It is a vital change
in how banks and other financial institutions learn about, interact with and satisfy customers. An
efficacious Digital Transformation begins with an understanding of digital customer behavior,
preferences, choices, likes, dislikes, stated as well as unstated needs, aspirations etc. And this
transformation leads to the major changes in the organizations, from product-centric to customer-
centric view.

This research will enlighten consumers, bankers, government and the general public on the factors
which influence the adoption of digital banking services in India. The Bank will have significant interest
in the research as they would like to be well informed how better they can re-engineer their marketing
strategies to market their services to accelerate the adoption rate of digital banking. The findings of
this research will provide more information to relevant authorities such as regarding cyber-crime and
consumers protection.

This study adopts the Technology Acceptance Model (TAM) to determine the factors influencing the
adoption of digital banking services by customers in India. The main purpose of this study is to conduct
an exploratory and descriptive research to determine the factors and their impact, influencing adoption
of digital banking in India.

6|Page
 1.2 PROBLEM STATEMENT:
Indian banking Industry has gone through many changes in past few years. Changes came in the
industry because of advancements and innovation in the Technology sector, the increasing global
businesses of banks and the highly competitive environment in the Banking industry. The changes
in the industry have affected the culture of banks, employment and the global economy as well.
The technological advancements and innovations have become crucial parts of Banking Industry.

The use of banking by Internet, Electronic and Mobile Medium through personal computers, laptops,
mobile phones, kiosks and tablets by customers to get the products and avail the services of
banks is called as Digital Banking. The innovation coming out in the world today in the form of
digitalization is changing the scenario of the whole banking industry nowadays. The Digital
Banking is giving new opportunities to the banking industry to grow and challenges as well. This
project gives the detail of how demographic factors, customer’s perception and the attitude of
people towards digital banking influences the adoption of digital banking in them. In India, little
awareness is amongst people towards digital banking, though digital banking has important share in
Banking Industry. Emergence of digitalization is not going at a pace because it’s a new industry and
new mode of operations as well. Therefore, the acceptance of digital banking by customers still
remains limited in India.

Broadband services and mobile phone internet connectivity are also considered as the enablers to
enhance the adoption of digital banking. Banks are replacing or making available many of the
services digitally from balance statement to availing loans from traditional approach to digital
approach. Success of banking system also depends on the application of technology and ease rapidly
with the environment. Digital banking is also leading to many unique technologies and will
revolutionize the banking industry very soon. Digital banking facilities are much cheaper and time
for customers as well as for banks to avail and provide the services. As customers are adopting
the channel of banking services, banks need to provide better customer experience through
various ways. From opening a new account, checking balance, conducting transactions, loans,
credits, wealth management, Customer support has become a key to success in this competitive
market place.

In today’s world differentiated and satisfied customer experience has become important with just
providing the financial service to customers. To grab the customers and to sustain in the competition
banks have to understand the unstated needs of the customers. This project is conducted to
understand and make the factors better that influence customers towards adoption of Digital
Banking. The study will include a

survey of questions with respondents to get the primary data for research. Some focused group
discussions with customers will help us in more detail. The project will also help us determine to
what extent which factors influence the adoption of Digital Banking in customers.
7|Page
 1.3 ABOUT HDFC BANK:

HDFC bank limited is an Indian financial services company headquartered in Mumbai,

Maharashtra incorporated in 1994.HDFC bank is largest private sector bank in India and the
leading wealth creator in 2018-19 of Indian companies.

As of March 2019, bank has more than 5103 branches across 2748 cities in India. Customers
of the bank are delivered through branches, ATMs, phone banking, SMS banking, Internet
banking.

The bank has a strong network of more than 13160 ATMs across India.

Mr. Hasmukhbhai Parekh is the Founder of HDFC bank.

Mrs. Shyamala Gopinath is the Chairperson and Independent director of HDFC bank.

Mr. Aditya Puri is the Managing Director and is heading the bank.

HDFC BANK

Parent company HDFC – Housing Development Finance Corporation

Category Banking, Financial Services
Sector Banking
Tagline We understand your world
Vision Becoming World class bank
Mission To provide a caring service by anticipating their requirements and innovatively

satisfying them beyond their expectations

Core Values
Operational Excellence, Customer Focus, Product Leadership, People and
Sustainability
Segments Who wish to invest their money in banks
Target group Corporates, Middle income group, Higher income group etc
Positioning HDFC is a bank that puts the customer first

8|Page
 1.4 About Digital Products:

1.4.1 PAYZAPP:
All payments, one app, one click. A complete payment solution gives one the power to just pay in
one click. With Payzapp you can shop online, book flight tickets, book movie tickets, Smartbuy with
attractive discounts, DTH recharge and also send money to anyone in your contact list. One just has
to link the debit or credit card to make payments through the application.

1.4.2 SMARTHUB:
It is the integrated payment solution for merchants and shop owners to collect payments via
multiple different payment modes. Payment modes are DD, RTGS, NEFT, IMPS, Debit card,
credit card and cheques. Through Smarthub merchants can have one view of money collected
through all modes in just one view. It features summaries of transactions, payment alerts,
summaries, online responses and splitting of payments. It offers services especially to educational
institutes to accept multiple payments through different transactions. They can save a lot of
administrative work and time with an integrated MIS report of multiple payments obtained from
Smarthub.

1.4.3 PAYNOW:
It is an instant solution for the credit card users of HDFC bank to make quick and easy payments
on the website for utility bills. It also provides the facility of autopay for monthly payments like
mobile phone bill and electricity bills. Transaction fees are waived off for all the bill payments which
are registered as Autopay. Flexibility is also offered if the user wants to pay the minimum bill or interim
payment according to the biller.

1.4.4 SMARTPAY:
It is the simple solution where the user can set standing instructions for the bill payments they want
and get cashback offers on the payments. In case of payments by credit card user gets the benefit
of credit free period and reward points depending on the type of credit card. It also sends
information alerts for the bills registered with standing instructions to remind the user. This service
can be activated online as well as offline by the user.

1.4.5 Banking through ATMs:

Users can make some bill payments by just visiting the ATM if they have the debit or credit card of
HDFC bank. Fund transfers as well as many services like new card or cheque book request can be
done through ATMs.

1.4.6 NETBANKING:
It is the very powerful service by the bank where savings or current account holders can just register

9|Page
 once and then avail the facility and conduct 200+ transactions through the bank website. From
account balance, statement request, cheque book request, FD, RD to availing loans online the
customers have more than a dozen of facilities available online with simple instructions. RTGS,
NEFT and IMPS can also be done through net banking by the customers. Customers can also file
direct tax payment to the CBDT (Central board of direct taxes) right from the website conveniently.
One can also update the account or customers details through net banking like updating of PAN or
Aadhaar number. Life Insurance, general insurance as well as retirement policy are also available
through net banking now.

PL10 is the latest service by bank in which a customer can just avail the loan in 10 seconds
through net banking and no need to do any process.

IPIN is the password used by customers for net banking portal login on the website. An extra
security solution of secure access - the three-step process for the online security of transfer of funds
is provided by the bank. Keyboard used by customers for entering password has three variations –
virtual keyboard, scrambled keyboard and hovering keyboard to protect the customers from
malicious spyware and Trojan programs. Hovering keyboard is a new innovation by bank for security
purpose in which the user can enter the IPIN by just pointing mouse on the relevant character.

1.4.7 PHONEBANKING:
Phone banking offers the convenience for the customers who are not able to use internet all the time.
From access to the users account to investment services all the facilities are provided through
phone. Account balance, block the card, enquire about loans or investments, and open a FD/RD,
Funds transfer can be done by the registered users. One has to register for phone banking by filling
the form in the bank.

1.4.8 CHILLR:
Chillr is the new innovation and easy smartphone application for exclusively HDFC bank customers.
24*7 facility is available for customers for hassle free transactions whenever they wish to. DTH Bill
payments, electricity payments, recharge all the facilities are there in the application which Payzapp
provides.
It has high end security facility of MPIN that is issued by HDFC bank. No passwords are stored in
the application to protect from phishing attacks. It is unavailable now because of some technical
glitch.

1.4.9 ULTRACASH:
Simplifying life, one payment at a time.

It is a unique mobile payment application which works on high frequency sound wave technology. In
this application user can make bill payments wherever they go in a seamless manner without having

10 | P a g e
 internet on the phone through then bank account directly. It is very secure and has special security to
avoid relay and middle man attacks. This is the first application to use ultrasound waves for the
transfer of data.

1.5 SWOT ANALYSIS:

1.5.1 STRENGTHS:
HDFC bank is the largest private bank in India having more than 4787 branches, 12000+
ATMs and with a customer base of more than 12 million.

Bank is located in more than 2600 cities and 1200 locations to serve customers through phone
banking.

ATM cards of HDFC are compatible with all domestic and International platforms, so are
preferred by customers for transactions.

HDFC bank has high degree of customer satisfaction when compared to other private banks
like Axis or ICICI bank.

Attrition rate is low in HDFC bank as compared to the Industry, so employees find it a good
place for working.

HDFC bank has right financial and technological advisors to guide and adapt to the changes
and fulfil the requirements of customers. Because of this HDFC bank enjoys the first mover
benefit in many services.

Website and mobile applications are friendlier and accepted by customers as compared to
other private banks.

1.5.2 WEAKNESSES:
HDFC bank has low penetration and presence in rural areas as compared to its direct
competitor ICICI bank and also nationalized banks.
Bank focuses mostly on high end clients.
Some of the bank’s digital products have poor reach in market and have low
performance. Bank has high penalties for maintaining account balance that leads to many
account closures. Not all the products are performing well.

1.5.3 OPPORTUNITIES:
HDFC bank has better asset quality parameters than competitors, hence profit and customer
growth is likely to increase.
It has improved its bad debt portfolio and recoveries are likely to improve.
11 | P a g e
 HDFC bank having a good reputation and brand image has scope to grow abroad.
It has higher scope for acquisitions and strategic alliances because of strong financial
position in market and being the highest wealth creator.

Venturing more into rural sector to grow the customers and market share.
Digital banking and growing customers’ acceptance can be a huge success.

1.5.4 THREATS:
Security and privacy for online transactions and new licensing and regulations can affect the
digital use by customers.
Non-banking companies and new applications growing like PAYTM can impact the
business. Modernization of government banks can lead to improved performance of
competitors.
Recent 74% FDI allowed to foreign banks to invest in Indian market can grow competition.

12 | P a g e
 1.6 PEST ANALYSIS:

1.6.1 POLITICAL FACTORS:

Government policies can affect the bank as some new government looks of political advantage
to attract some votes.
Policies like loan wavier and short-term agricultural loans can affect the profits
of bank. FDI move to increase the limits for foreign banks to invest in India.
Government’s support to PSU banks has impact on private banks or Favoring by government for
some schemes affects the banks.

1.6.2 ECONOMIC FACTORS:

Reduction in lending rates and change in Cash reserve ratio (CRR) affects.
Every financial year the changes in monetary policies affect the working of
bank.
Banking sector has a bigger role in the GDP of India and provides support and strength to the
nation. RBI’s policies to overcome inflation and other financial policies affect the banks.

1.6.3 SOCIAL FACTORS:

The lifestyle and changing buying power of customers is growing day by day and will help
banks grow digitally.
Rapidly expanding rural markets in India and growing awareness about benefits of banks.
Illiteracy is still somewhere the problem in our country, and it makes difficult for many to read
and understand the terms & policies, that makes them keep distance with the banks.

1.6.4 TECHNOLOGICAL FACTORS:

Spread of ATMs and vending machines leads to better adaption of banking on digital mode.

Growing Smartphones users and Internet speed and usage helping banks to grow digitally.

Automated voice responsive machines helping the banks to tackle small queries of
customers. Improved and satisfactory services of net and mobile banking by banks have
made many customers to save time and money.

13 | P a g e
 1.7 PORTER’S FIVE FORCE MODEL:
Five force High/medium/low
Threat of new entrant
Bargaining power of
customers
Bargaining power of suppliers
Threat of substitute
Degree of rivalry
14 | P a g e
Remarks
Low For any new entrants’
permission should be
granted from RBI, and it is
not easy to get the
permission. There are many
political and legal issues.
And the early investment is
very high.
High Customer can switch to any
other bank very easily if
service is not good.
Low In bank industry there are no
such supplier.
High Because there are many
public and private banks
and also the post office
provides many similar
services, many private
firms provide easy loan
scheme to attract the
customers. People also
started investing their
money instead of saving
them like stock market,
mutual funds, property etc.
High As there are too many
players with similar
strategies, less
product differentiation &
price
competition, low market
growth rate, barriers to exit
are high.
 2.1 RESEARCH OBJECTIVES:
The objective of the study is to establish strongly the digital products and services of HDFC bank.

2.1.1 To identify nature and usage of Digital banking

2.1.2 To study the impact of digitalization
2.1.3 To know how much banking services have been improved
2.1.4 To study the satisfaction level of the respondents

2.2 LITERATURE REVIEW:

Literature related to Indian banking sector and technology is discussed in this chapter.
There are many research studies by many Indian and International researchers as well as scholars till
date to determine the factors influencing the adoption of Digital banking using many models and
different theories. The studies found out and many proved that there are positive relationships
between age group, income level in adoption of digital banking. On other hand there are negative
relationships between gender and marital status in adoption of digital banking.

Two main reasons can be considered for the development of digital banking in India. First banks can
save costs by offering services online to the customers and banks can reduce the number of staffs
and physical outreach branches as well. It has been proven that digital banking medium is the
cheapest way to deliver the banking services and products (Giglio, 2002). Second banks can
increase their customer outreach and will help them to deliver up to customers’ expectations to
satisfy and retain the customers (Moody, 2002).
Vijay M. Kumbhar (2011) - In his research paper “Factors Affecting the Customer satisfaction In E-
Banking” has found that major factors contributing are quality and service, Brand perception
towards customer, problem handling by the banks, responsiveness of the help and back end,
security of transactions, assurance and convenience and they explain the impact of customers
perception towards satisfaction of digital services.

Nabil Hussein Al-Fahim (2013) - In his research titled “A tentative Study of Factors distressing the
Internet Banking espousal” found out the impact of some factors as trust, ease of use, security and
awareness of customers on digital banking. The results showed that these factors have positive
impact on influencing the adoption of digital banking.

Rakesh H M & Ramya T J (2014) - In their research paper titled “A Study on Factors Influencing
Consumer Adoption of Internet Banking in India” found out that the factors influencing internet
banking adoption. A model is successfully proved and he found that it is influenced by its perceived
reliability, Perceived ease of use and Perceived usefulness. In the process of internet banking
services banks should focus on the benefits of its adoption provides and awareness can also be
improved to attract consumers’ attention to internet banking services.

15 | P a g e
 Shankar A. (2016) - India is the one of the largest mobile phone user just behind china and
contributes approx. 10% of total global users. Over 730 million People are using mobile device in
India, in which 62% users belong to urban area and 38% users belong to rural area. He found that
increasing mobile phone will shift the banking from physical mode to digital mode in the upcoming
years.

Unnithan (2017) – In his research he suggested that there is strong potential market for digital
banking in India, especially for m-banking. Increasing number of mobile users is good indicatior for
development of digital banking in India. Lack of knowledge and awareness is major problem in
adaptation of digital banking in Indian people as most of the rural population is unaware about new
technology. Introduction of ‘Digital India’, technological innovation and increasing number of mobile
user is now changing the scenario and preparing ground for digital banking potential in India.

16 | P a g e
 2.3 OVERVIEW OF TECHNOLOGY ACCEPTANCE MODEL (TAM):
The TAM has emerged has a solution to the problem of prediction of user’s acceptance of
technology and information systems. The TAM shown in figure 1 depicts the relationship between
perceived usefulness, perceived ease of use, attitude towards using, and actual usage behavior of
digital banking. (Davis,1993)

Armenta et al (2015) in his research indicated that people will use the platform of digital banking if
they believe it would help them to perform a specified task better than when not using the platform
and that even if users believe that a given platform is useful, if they found the platform hard to use,
then the perceived benefits of using the digital platform are outweighed by the efforts needed to
use it”.
TAM was considered as a robust instrument for studying and researching the adoption and usage of
digital banking (Kazi, 2013).

The original TAM does not take into consideration prior experience, age, gender, income level and
many other personal characteristics that may influence the user attitude towards technology,
which in turn influences the adoption of digital banking.

The TAM emphasizes on 4 different associated variables with some factors to explain the users
acceptance towards technology and adapt the digital banking services:

2.3.1 Perceived Usefulness (PU) is defined here as the degree to which user believes that using
a particular platform for banking would enhance their job performance (Davis, 1993). PU would
have significant positive influence on user acceptance because if users think that platform is useful
then they are more willing to accept it.

2.3.2 Perceived Ease of Use (PEOU) is defined as the degree to which a user believes that using
17 | P a g e
 a particular platform would be free of more physical and mental effort” (Davis, 1993). According to
(Singh, 2012) TAM perceived ease of use is a major factor that influences the adoption of digital
banking.

2.3.3 Perceived Credibility (PCRED) is defined as the belief that the promise of bank can be relied
upon even under unforeseen circumstances. The user has confidence and aware of consequences
of using a digital application that is risk and hassle free of any associated risk such as financial
risk, physical risk, functional risk, social risk, time-loss risk, opportunity cost risk, as well as the
information risk. Therefore, security and privacy are two important factors in perceived credibility.

2.3.4 Convenience (CONV) is defined as the customer’s attitude towards acceptance of a new
digital platform has a critical impact on adoption pf platform. Consumers’ attitude toward e-banking
services contributes to many factors such as technology, security, convenience, new technology
experience, prior personal banking experience”. Time saving and 24/7 access are the most
important factors of the convenience of digital banking services.

18 | P a g e
3.1 RESEARCH METHODOLOGY

Research methodology is the process used to collect information and data for the purpose of making
business decisions. The methodology may include publication research, interviews, surveys and other
research techniques.

Research Design
Research design is a framework or blueprint for conducting the research project, it specifies the
details of the procedures necessary for obtaining the information needed to structure and/or solve
research problems. A good research design lays the foundation for conducting the project.
The research was conducted in Lucknow branch with a sample size of 100 respondents.

3.2 TYPE OF RESEARCH DESIGN USED:

The research design is exploratory till identification of service quality parameters. Later it becomes
descriptive when it comes to evaluating customer perception of service quality of the banks.
Descriptive research, also known as statistical research, describes data and characteristics about the
population or phenomenon being studied.
Descriptive research answers the questions who, what, where, when and how.
3.3 Data Source

For this project both primary and secondary data were valuable sources of information.
3.3.1 Secondary data

Secondary data provides a starting point for any research and offers valuable sources of already
existing information. Secondary data are the easiest to gather and the cost of collecting this data is
also very low.
In order to have a proper understanding of the customer satisfaction of bank, a deep study was
done from the various sources such as articles and journals, a lot of data is also collected from the
official website of the banks.
3.3.2 Primary data
Primary data are data freshly gathered for a specific purpose. For my project work the primary data
was collected by means of survey though questionnaires.
Personal Interview with the walk-ins
Fill-in the questionnaires by the local customer of HDFC bank as designed in annexure 2
Cold Calling This method was also used by me once or twice, keeping in mind the busy schedule
of a few respondents.

19 | P a g e
3.4 DATA ANALYSIS AND INTERPRETATION:

Q1. What type of account you have in HDFC Bank?

3% 2%

15% Savings Account

Current Account
80% Salary Account
Other

Interpretation:

Out of 100 respondents that I have taken for my survey 80% respondents have saving 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 account in HDFC Bank?

15% 0-1 Year

33%
27% 1-2 Years

25% 2-3 Years

3 Years & above

Interpretation:
Out of 100 respondents 33% have their account in HDFC Bank from the last 3 years and more.

Q3. According to you what is more convenient way for banking?

20 | P a g e
 10%

Branch Banking
Digital Banking
90%

Interpretation:

When the customers are asked about their preference between branch banking and digital banking 90%
customers preferred digital banking and 10% customers preferred branch banking as a mode of their
banking transaction. Above graph reveals their preferences for the both.

Q4. Do you use Digital Banking Services of HDFC Bank?

0%

Yes
No
100%

Interpretation:
Out of the 100 respondents all the 100% of them use digital banking services of HDFC bank.

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

100%
90%
80%
70%
60%
50% 60 80 68
40%
30%
20%
10%
0% 0

21 | P a g e
Interpretation:
Out of the 100 respondents 60% use digital banking services for convenience, 80% use to save time and
68% use due to 24-hour access.
Q6. Which Digital banking services do you use at HDFC Bank?

100%
80%
60% 75 60 24 4 100
40%
20%
0%

Interpretation:
Out of the 100 respondents 75% of them use internet banking, 60% out of 100 use mobile banking, 24% of
100 use phone banking, 4% of 100 are using insta alerts/SMS/query, and all the 100% of respondents use
ATM service.

Q7. For what purpose you use Digital banking services at HDFC Bank?

100%
80%
60% 90 45 78 36
40%
20%
0% 0 0

Interpretation:
Out of the 100 respondents 90% use digital banking services for money transfer, 45% use to pay bill, 78%
use to get balance details, 36% use for recharge.

Q8. Are you aware about HDFC Bank Digital Initiatives i.e. Go digital?

22 | P a g e
 45%
Yes
55% No

Interpretation:
As shown in the above pie chart 45% respondents out of 100 are aware about HDFC bank Go digital
initiative while 55% of them are not aware.

Q9. Which Digital Initiative of HDFC you know about?

100%

80%

60%
88.88 78.33 28.88 44.44
40%

20%

0%
PayZaap Chillr Digital Watch
Wallet Banking

Interpretation:
Out of 100 respondents that I have taken for my survey approximately 55% customers do not know about
Go digital initiative because they are not much aware about this facility. 45% of them are aware about some
initiative and out of those 45% customers 88.88% know about PayZaap, 78.33% know about Chillr, 28.88%
know about Digital wallet, and 44.44% know about Watch banking.

Q10. Do you use HDFC Bank Go Digital banking services?

40%
Yes
60%
No

Interpretation:

23 | P a g e
Out of 100 respondents 40% of them use HDFC Bank Go Digital banking services and 60% do not use it.

Q11. Do you think HDFC Bank banking services has improved through Digitalization?

2%

Yes
No
98%

Interpretation:
Out of 100 respondents 98% thinks that digitalization improved the banking services of HDFC bank and 2%
of the respondents do not think that digitalization has improved the banking services.

Q12. Please rate that how much Digitalization has improved the Banking Services?
0%
0%
5 Stars
18% 14%
4 StARS
3 Stars
68%
2 Stars
1 Star

Interpretation:
Out of 100 respondents 14% of them rate 5 stars to the digital improvement in the banking services, 68%
rate it 4 stars, and 18% rate 3 stars.

Q13. What is your level of satisfaction with HDFC Bank Digital Services?

24 | P a g e
 0%
2%

33% Fully Satisfied

Satisfied
65% Somewhat satisfied
Not satisfied

Interpretation:
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
2% are somewhat satisfied. It indicates that HDFC bank customers have high satisfaction level from the
services they get.

25 | P a g e
3.5 FINDINGS:
3.5.1 In our study we find that 100% respondents are aware with the ATM facility use this facility
and around 75% of them use internet banking, 60% use mobile banking, 24% use phone
banking. But the awareness of Insta query is only 4%.
3.5.2 Most of customers believe that Digital banking is more convenient way for banking and most
of them use digital banking in order to save time and also as it has 24-hour access.
3.5.3 Customers use digital banking services at HDFC bank mostly for money transfer, to pay bill,
for recharge, online shopping. HDFC bank provides very quick services to its customers.
3.5.4 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.
3.5.5 The customers are using the digital banking services for few purposes it means the use of
the digital banking channel is limited for few transactions.
3.5.6 Most of respondent who are using the digital banking services are satisfied with the service
of the bank for the particular digital banking service.
3.5.7 The response of the respondents indicates that digitalization has a good and positive impact
on the banking services.
3.5.8 According to the response of the respondents it shows that digitalization improved the
banking services very much for the customers.

26 | P a g e
 3.6 RECOMMENDATIONS

3.6.1 Though the Digital Banking is an effective tool but many of the customers are not using it
due to the awareness of the particular digital banking services. Now the responsibility lies
with the bank to make them aware about various Digital banking channels through publicity
and advertisement
3.6.2 Bank should educate the customer about the usage of digital banking services and also
about their advantages. This would prompt the customers to shift from traditional brick and
mortar channel.
3.6.3 It has been observed that even the customers who know about digital banking services are
not using this facility due to misconception and lack of information. These customers should
be targeted by the bank and must be convinced to use the same.
3.6.4 The result of the study show that customers are using only few services of various digital
banking services - for example ATM for view balance and cash withdrawal etc. Though
digital banking provides a full gamut of various services. Customer should be made aware of
these services and must be encouraged to use the same.
3.6.5 The bank may improve existing facilities in rural areas through advertising, spread
awareness about computer and internet banking.
3.6.6 The best way to motivate the customer to use digital banking is more efficient customer care
service.

27 | P a g e
 3.7 LEARNINGS:
3.7.1 Create awareness and educate consumers on access to digital modes, availability of
several types of services such as CHILLR, PayZapp, HDFC Mobile Banking, Net
banking and its features.
3.7.2 Change the attitudes of customers towards digitalism rather than Manual.
3.7.3 Digital Demos of Net banking and Phone banking.
3.7.4 Make the Customers aware of E-passbook provided in HDFC app.
3.7.5 Make consumers understand the available features and services of digital banking as
a digital banker of HDFC Bank.
3.7.6 Handle the enquiries of customers.
3.7.7 Use of ATM’s or Phones for general needs. (Update phone no., request cheque
book, bill payment, Mini statement etc.)
3.7.8 Motivate the customers for paperless transaction.
3.7.9 Help them understand the safety secure payment transfer gateways available in
HDFC.
3.7.10 Promote the various products available for customers such as 10sec Personal Loan,
Bill payment, Recharges, Credit Card, Insurance schemes, fixed deposits and
recurring deposits etc.

28 | P a g e
3.8 LIMITATIONS

There are certain limitations of this project report which are listed below.
3.8.1 This study is limited only to the customers of the HDFC bank, Lucknow.
3.8.2 The research was carried out in a short period from April- June
3.8.3 The responses of the customers may be biased.
3.8.4 Sample size is limited to 100.

29 | P a g e
 ANNEXURE-2

I would request you to please fill in this questionnaire with honest and appropriate answers. The
result of this questionnaire will provide us with valuable insights and will help the study.

NAME……………………………………
GENDER……………………………….
AGE……………………………………
Q1. What type of account you have in HDFC Bank?
Savings account Current account

Salary account other (please specify) _ _ _ _ _

Q2. Since how long you are having account in HDFC Bank?
0 – 1 year 1 – 2 years
2 - 3 years 3 years & above

Q3. According to you what is more convenient way for banking?

Branch Banking Digital Banking

Q4. Do you use Digital Banking Services of HDFC Bank?

Yes No

Q5. What are your reasons for choosing our Digital banking services?
Convenience To save time
24-hour access Security reasons

Q6. Which Digital banking services do you use at HDFC Bank?

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

Q7. For what purpose you use Digital banking services at HDFC Bank?
Money Transfer Pay Bill
Balance Details Recharge
Loan related Query Order Cheque book
other (please specify) _ _ _ _

Q8. Are you aware about HDFC Bank Digital Initiatives i.e. Go digital?
Yes No

30 | P a g e
Q9. Which Digital Initiative of HDFC you know about?
PayZapp Chillr
Digital Wallet Watch Banking

Q10. Do you use HDFC Bank Go Digital banking services?

Yes No

Q11. Do you think HDFC Bank banking services has improved through Digitalization?
Yes No

Q12. Please rate that how much Digitalization has improved the Banking Services?
5 Stars 4 Stars
3 Stars 2 Stars
1 Star

Q13. What is your level of satisfaction with HDFC Bank Digital Services?
Fully Satisfied Satisfied
Somewhat Satisfied Not Satisfied

Q14. Any suggestions or recommendation to HDFC Bank?

31 | P a g e
 References
Kotler Philip, marketing management, (Pearson education, 12th edition) Malhotra K.
Naresh, marketing research (An applied orientation), Research design, (Prentice hall of
India pvt. 5th edition)

Zeithmal V. A., Grembler D.D., Bitner M.j., and Pandit A.: Service Marketing
Integrated customer Focus across the Firm” (4th Edition)
M.K. Rampal: Service Marketing

Websites
www.hdfcbank.com
www.hdfcindia.com
www.wikipedia.org
www.marketresearch.com

32 | P a g e