INTRODUCTION TO DIGITALIZATION

Digitalization is the use of digital technologies to change a business model and provide new revenue and
value-producing opportunities; it is the process of moving to a digital business. Integration of digital
technologies into everyday life by the digitization of everything that can be digitized. “Digital” is the new
buzz word in the banking sector, with banks all around the globe hopping onto the digital bandwagon.
Just like how the introduction of mobile technology massively disrupted innovation in the banking sector,
digital is now doing the same. Banks of all sizes are making sizeable investments in digital initiatives in
order to maintain a competitive edge. So, what does “digital” actually mean? It definitely provides a
glimpse into the future of banking. What digital essentially does is that it uses technology to design
experiences, both seen and unseen. “Digital is all about making what can be seen unseen – making
services so smooth and seamless that it becomes invisible to the customer”. “Despite all the automation
and improvements that 14 digital banking has the potential to achieve, customers and their needs still
form the very core of the banking sector.” It is the simplicity of design, the removal of friction and the
ability to improve the customer experience.

MEANING AND DEFINITION

“Digital Banking – a new concept in the area of electronic banking, which aims to enrich standard online
and mobile banking services by integrating digital technologies, for example strategic analytics tools,
social media interactions, innovative payment solutions, mobile technology and a focus on user
experience.”

Digital banking is:

 Delivering a customized but consistent FI brand experience to customers across all channels and
points of interaction...
 ...underpinned by analytics and automation...
 ...and requiring a change in the operating model, namely products and services, organization,
culture, and skills and IT...
 ...in order to deliver demonstrable and sustainable economic value.

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.
 BRIEF REVIEW OF LITERATURE
Rameshgaava (2012)

In his study on Topic ‘Indian Banking Sector’ finds that, the sector of commercial banks consist of 33
foreign banks, 40 private sector banks, and 27 public sector banks where majority ownership is included
by the government. During the reform period, the financial system permitted the banks to select their
lending rates and deposits, and also authorizes higher disclosure to make sure of large transparency in
the balance sheets. As a result of reforms in the banking sector the share of entire assets of public sector
banks was decreased to 75 percent from 90 percent. In the private sector, the new banks entry
diminished the concentration of assets which further might have made the competition stronger which
leads to more profitability, productivity, and enhancing efficiency.

Dr. Richard Nyangosi (2014)

In his study on Topic ‘Digitizing Banking Services’ finds that Internet and mobile technologies of recent
years have gained momentum and are impacting the working of every process including financial
services. Financial Service providers including banks are turning their necks toward the wave of these
Technologies. Their findings include - Adoption of cell phone banking. Out of the respondents surveyed,
26 percent had adopted cell phone banking in India out of those who adopted, mostly were young aged.
This service too like any other e-banking services is gaining momentum as customers are finding it easy
to bank 24x7. Using different common e-banking services provided through a cell phone, which included:
balance inquiry, requesting cheque book, know last few transactions, requesting bank statement, stop
payment of cheque, and bill payment. Adoption of Cyber Banking, the findings indicate that, 67.2 percent
of the total sample adopted Internet Banking and 36.8 did not adopt. Perceived usefulness of SMS
banking, financial products through cell phones have proved to be useful to both customers and providers
in recent times. Customers find it easy, convenient, and efficient to transact conventional banking
services which are nonmonetary in nature such as balance enquiry, transfer of funds, change password
etc through a mobile phone.

Malhotra, Pooja & Singh, (2010)

This study is an attempt to present the present status of Internet banking in India and the extent of
Internet banking services offered by Internet banks. In addition, it seeks to examine the factors affecting
the extent of Internet banking services. The data for this study are based on a survey of bank websites
explored during July 2008. The sample consists of 82 banks operating in India at 31 March 2007. Multiple
regression technique is employed to explore the determinants of the extent of Internet banking services.
The results show that the private and foreign Internet banks have performed well in offering a wider range
and more advanced services of Internet banking in comparison with public sector banks. Among the
determinants affecting the extent of Internet banking services, size of the bank, experience of the bank in
offering Internet banking, financing pattern and ownership of the bank are found to be significant. The
primary limitation of the study is the scope and size of its sample as well as other variables (e.g. market,
environmental, regulatory etc.), which may have an effect on the decision of the banks to offer a wide
range of Internet banking services. The purpose of the study is to help fill significant gaps in knowledge
about the Internet banking landscape in India. The findings are expected to be of great use to the
government, regulators, commercial banks, and other financial institutions, e.g. co-operative banks
planning to offer Internet banking, bank customers and researchers. The bankers as well as society at
large will come to know where the banks lag in terms of adoption of Internet banking and in providing
different products and services. An understanding of the factors affecting the extent of Internet banking
services is essential both for economists studying the determinants of growth and for the creators and
producers of such technologies. Moreover, this paper contributes to the empirical literature on diffusion of
financial innovations, particularly Internet banking, in a developing country, i.e. India.

CONCEPTUAL FRAMEWORK

SWOT Analysis

OJECTIVES OF THE STUDY

The current study was undertaken to achieve the following stated objectives:

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

2. To study the impact of digitalization.
3. To know how much banking services has been improved.
4. To study the satisfaction level of the respondents.

SCOPE AND IMPORTANCE OF STUDY

NEED OF THE STUDY

After conducting a review of researches done by various professionals a gap have been identified. The
researchers had studied the aspects of internet banking, its introduction, its development, adoption by the
customers, consumer’s perception about this service, its success and security related issues. But a very
few researchers had studied the net banking service with respect to the HDFC Bank. This gap had been
identified and it handled to the present research being undertaken.

SCOPE OF THE STUDY

The area where the study has been conducted was Hyderabad.

RESEARCH METHODOLOGY
Research Design

A research design serves as a bridge between what has been established (the research objectives) and
how to accomplish these objectives. In fact, the research design is the conceptual structure within which
research is conducted; it constitutes the blueprint for the collection, measurement and analysis of data.
More explicitly, the design decisions happen to be in respect of:

1. What is the study about?

2. Why is the study being made?
3. Where will the study be carried out?
 4. What type of data is required?
5. Where can be the required data found?
6. What period of time will the study include?
7. What will be the sample design?
8. What technique of data collection will be used?
9. How will the data be analyzed?
10. In what style will the report be prepared?

The function of research design is to provide for the collection of relevant evidence with minimal
expenditure of effort, time and money. But how all these can be achieved depends mainly on the
research purpose.

Sampling Design:

In this report I have used Descriptive research technique.

Descriptive research includes surveys and fact-finding enquiries of different kinds. The major purpose of
descriptive research is description of the state of affairs as it exists at present. The main characteristic of
this method is that the researcher has no control over the variables.

SAMPLE UNIT - In this project sampling unit consisted of the various individuals who had their bank
accounts with HDFC Bank.

SAMPLE SIZE - Sample of ___ people was taken in order to conduct the research.

UNIVERSE - In accordance to the specified research universe is Hyderabad city.

Sources of Data Collection:

PRIMARY DATA is the data which has been collected through personal contact.

 Through Questionnaire – Questionnaire is a written set of questions, the answers to which are
recorded by the respondents.
 Through Personal Interaction – In personal interaction an interviewer ask questions in a face to
face contact to the other person.

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.

Data Analysis Tools:

Excel

Methods of Data Collection:

For my survey I have collected data through Questionnaire.

Limitations of the study:

The following were the limitations of the study:

1. Only HDFC bank customers

2. Limited time
3. Less disclosure of bank’s internal functioning