DISSERTATION ON

‘ADOPTION OF DIGITAL BANKING BY CONSUMERS IN INDIA’

(SUBMITTED IN THE PARTIAL FULFILLMENT OF THE AWARD OF THE DEGREE OF

BACHELORS OF BUSINESS ADMINISTRATION HONOURS)

BY
AADITYA GATTANI
20212502

Under the Guidance of

SCHOOL OF BUSINESS AND MANAGEMENT

CHRIST (DEEMED TO BE UNIVERSITY)

DELHI NCR INDIA

2020-2023

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 DECLARATION

I hereby declare that the Research Project report on “ADOPTION OF DIGITAL BANKING BY

CONSUMERS IN INDIA”, has been undertaken by me for the award of Bachelor of Business

Administration degree. I have completed this study under the guidance of Prof. Renu Singh

I also declare that this Research Project report has not been submitted for the award of any Degree,

Diploma, Associate ship, Fellowship or any other title, in CHRIST (Deemed to be University) or in any

other university.

Place: GHAZIABAD Signature

Date: AADITYA GATTANI 20212502

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 CERTIFICATE

This is to certify that the Dissertation entitled “ADOPTION OF DIGITAL BANKING BY

CONSUMERS IN INDIA” submitted in partial fulfillment of the award of the degree Bachelors of

Business Administration is a record of the research work done by Mr. Aaditya Gattani under my guidance

and supervision during 2020-23.

Place: GHAZIABAD Signature

Date: Dr. Sachin Sinha

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 ACKNOWLEDGEMENT

The satisfaction of the successful completion of any work would be incomplete without mentioning few

people, who gave constant guidance and encouragement which helped me to convert my effort into

success. Indeed, I am indebted to many people who helped me to accomplish this dissertation

successfully.

I thank, Rev. Fr. Dr. Viju P D (Campus Director), and Rev. Fr. Sunny Joseph (Campus Administrator),

for their kind patronage and support.

I am thankful to Dr Sachin Sinha, Head of Department – School of Business and Management, CHRIST

(Deemed to be University) and my mentor Prof. Renu Singh for providing me the opportunity to embark

on this project and all faculty members for their coordination and cooperation and for their kind guidance

and encouragement. I would also be thankful to my friends who have contributed genuinely to the

preparation of this project report. I will be always indebted of them.

Aaditya Gattani

20212502

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 Table Of Contents

SR
NO TITLE PAGE NO
1 Declaration 2
2 Certificate 3
3 Acknowledgement 4
4 Introduction 7
5 Literature Review 20
6 Research Methodology 25
7 Data Analysis 27
8 Findings 38
9 Conclusion 38
10 Annexure 40
11 References 46

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Adoption of digital banking by consumers in India

Abstract

In the era of Globalization banking sector have revolutionized and converted itself digital. With online

and internet banking the whole system of banking is changed. Now people are not required to visit bank

for very small work. Many works can be done sitting at home. The purpose of this research paper is to

review current scenario of digitalization of banking sector. The paper focuses on how the digitalization

started in the banking sector and how it is being evolved and what will be its future and how cybercrime

and hacking in this sector have affected the people. What is the role of government for the security of the

banking sector and what all steps it is going to take? Also, we would be discussing how digitalization will

further change the scenario of the banking sector in India in the near future.

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 Introduction

BACKGROUND OF THE STUDY

Several factors are transforming consumer banking, including rising customer expectations and

requirements, disruptive technology, and new business models. These reasons all contributed to the

emergence of a new retail banking business model — direct banking. Direct banks are developed with

digital technology as a fundamental competency to deliver financial services to consumers without the

requirement for a branch network. As a result, direct banks make use of remote service methods such as

web banking, mobile apps, phone banking, and mail. The notion of branchless digital banks is very new;

the first completely remote banking experience was launched 28 years. This business model is now seen

as having potential by both new entrants into the banking market and large traditional banks. The

importance of bank branches is diminishing as a result of cashless tendencies and increased Internet

accessibility. By 2020, more than 20% of branches are expected to close Furthermore; digital banking is

regarded as the primary disruptor for the retail banking industry, with up to 35% of banking revenue at

risk by 2020. All of these factors combine to make direct banking an exciting and important subject to

research. The author chose this topic because he has a personal interest in it. He realized the benefits of

this concept as a satisfied customer of two different direct banks in Germany and Russia, and he pursues

background information and the potential of this business model. The author wondered, "How many

people are aware of direct banking?" Is it still possible to use branches? What are their thoughts on this

business model? How many direct banks are there in Europe today? The idea for the thesis arose as a

result of the broad and complex nature of the questions. The research aims to provide a better

understanding of current retail banking digitalization trends, identify the causes of banking industry

transformation toward digital technologies, and investigate existing and potential retail banking

tendencies. Direct banking, a new business phenomenon, has been chosen as the primary study subject.

The concept is introduced and analyzed, as well as an overview of the European direct banking market.
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The study is aimed at both traditional local banks looking to diversify their product offering with direct

banking products and potential new players looking to enter the market as solely direct banks. The thesis

includes recommendations for direct banks on how to develop an effective marketing strategy.

Throughout the past years there is a great revolution in banking industry. This industry has modified a

lot. In traditional banking the customers have to reach out to a bank in order to enjoy services like money

transaction, opening an account, closing an account or check their account balance but this all is now very

easy to operate using internet on your Smartphone through digital banking. Now it is far easy than

traditional banking to do transaction easy with a very less human effort. Digital banking has helped out

both customer and its employees both. It has saved a lot of time and cost.

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 Types of digital banking in India: -

There are a lot digital banking types used in India but we going to discuss some of them.

• Banking cards. This is the most widely used for payment methods. These consist of debit and credit

cards. These can be used on many places like shops, fuel station and malls etc. We just have to swipe it

to persons machine (to whom we are going to pay) and enter our amount and password and just that is it

the money will be transacted at the moment.

• AEPS (Aadhaar Enabled Payment System). It can be used for several functions like balance check,

transaction payment etc. There is no need of visiting a bank but this we will be able to use this service

only if Aadhar number is registered with our bank in which we hold our account.

• UPI. UPI is an interoperable payment system which can be operated using a Smartphone. This service

helps to link more than one account on UPI app. It is available everywhere and at any time 24/7. It enables

to transact without IFSC code. We only need VPA (Virtual Payment Address).

Some of the commonly used UPI in India: -

1. BHIM UPI.

2. PHONE PAY.

3. GOOGLE PAY.

4. PATM.

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 How Digitalization in Banking Started

The need for digitalization in the banking sector felt in the year of late 1980s, in order to improve the

bank’s customer service such as book keeping and all. In the year of 1988, The Reserve Bank of India

(RBI) had set up a committee for computerizing the banks which was headed by Dr. Rangarajan. Now

banks already begun with the technology using the initial information’s along with an intro. Of standalone

PC, s and started LAN (Local Area Network) connectivity. Further banks decided to adopt core banking

platform. Core banking enabled banks to increase the comfort feature for the customers by making a

promise for enhancing customer convenience through anytime anywhere banking. Companies like

Infosys, Banks AND I-Flex designed core banking platforms for the banks. Now by the year of 1991-

1992 the process of computerization gained a lot of paces in the economy. Now several banks have started

shifting to the digital platform as to give a tough competition and to be relevant in the competition. Digital

banking has resulted in reducing the costs drastically and helped to generate larger amount of revenue. In

traditional banking the estimated of a bank transaction is in the range of Rs.70-Rs.75 as of in ATM it is

from Rs.15-Rs16 and on digital platform it has reduced to Rs.1 or less. Digitalization has reduced the

human error. By the year of 2010 the banking sector was changed fully and has evolved new technologies

for online banking. Commercial banks have now moved to MICR based on the cheques processing,

electronic funds transfer etc. The set-up of ATM (Automated Teller Machine) to make up different branch

activities resulted in anytime banking. By 2016 the banks have shifted to a new platform of digital banking

using mobile phone. The first UPI app was launched on 11thAprill 2016 by Dr.Raghuram G Ranjan

(Governor of RBI at Mumbai). Now UPI apps were ready to download from the app stores at various

platforms.

Benefits of Digital Banking in India

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As digital banking has made banking procedure easier for the people of India than traditional banking.

Digital banking has made a great increase in the performance within the banks and too improved the

commission level of the banks in India. Due to the digital banking, there is a reduced human effort for

both the customer and the bank employees. It has provided a 24/7 facility to transact, balance check etc.

from any place at any time.

Some major benefits: -

• 24/7 Banking. Digitalization has given the customers of India a great relief and level of comfort and

satisfaction because now by the use of digital banking customers are easily able to access their accounts

24/7. Now there is no need to stand in long queues to deposit a cheque or make a transaction. Now-a-days

there is no such need of going to bank for opening an account or to ask a query or suggestion regarding

banking as it is all available through digital banking which can easily be operated through digital banking

mobile apps from anywhere at any time.

• Reduced Human effort. Now-a-days digital banking has set up a platform that reduced human effort for

both banker and the customers. There is no need to go to a bank for any of the purpose as it can be done

online by using digital banking. There are a several more features in case there is a problem with an

employee or any customer that he is unable to solve on his own. Features such as live chat and co-

browsing, which are extremely effective.

• Effect on price saving. Introducing digital banking has decreased a lot of prices on the processes for

banking. In addition, it also has reduced the overhead prices and employee expenses, which were actually

and extra expense. Swapping the paper statements with e-statements have resulted in saving a lot of cost

for banks as well as customers.

• Automation in banking. Digital banking has automated up to the total of 1/3rd of their process using
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the secure smart and latest technology. This has made a reduce in cost as well as elimination of the human

error at a very large extent. The AI feature has made possible for the employees to make a quick analysis

of the customer data for their mortgage applicants as well as the financial behavior of a customer to decide

the fate for their applications instantly.

• Altering the on boarding process. Digital banking has made on-boarding a much easier for employees

as well as the customers with the use of mobile phones which are unable by the use of advance technology.

Now customers can easily upload their banking documents using their smart phone and the data uploaded

will automatically be extracted, processed and will be updated in the banks system automatically and

instantly.

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 Drawbacks of Digital Banking in India

As none of the institution can be perfect or best at everything, so same is with the case of digital banking

too. It seems that digital banking is very easy but in real it may lead to a great loss if not handled wisely.

• Security Issue. There is always possibility of online frauds, fishing etc. In case of large value

transactions (in which a huge amount of money is involved) it is hard to feel comfortable making a

digitally with the bank, which is not having a physical appearance. Customers must always create strong

passwords for the accounts and also avoid sharing their information with other users. Passwords must be

created which is difficult to guess and easy to remember and must be changed at a regular interval of time.

• Technology Issue. As digital banking only dependent on the internet connectivity we are having. If

there is a power outage or even if the server of the bank went down, we will surely be not able to access

our account in whatsoever condition. Sometimes online customer care service offered by the bank may

be overwhelmed when online access is down whereas in case of real time banking there is always, we can

find somebody to talk.

• No personal relations with banker. In traditional banking we develop personal relations with bank staff,

whereas in digital banking, no such things occur. On the other hand, if you are dealing with an online

bank, it is very typical because of handed over to an anonymous customer service agent who is going

straight forward to the service offered not helping you or suggesting you out.

• Physical cash transactions. In digital banking we cannot deposit physical cash or cheques received as

payment. We have to go to the banks to deposit these in person. Moreover, for encashment of cheques,

we have to go the banks. If we need to withdraw cash, we have to go to an ATM or bank as digital banking

cannot give you such facilities.

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 Future of Digitalization in Banking Sector in India:

Digitalization in banking sector was essential to make the banking for people easy and accessible. It also

brought many benefits to the banks itself; it helped them save huge cost, reduced rush of people at banks,

made 24*7 banking possible, all data used to be recorded automatically, reduced error and many more.

With this it also brought many drawbacks it increased the possibility of hacking, hacker used to hack the

information of the people steal money and caused various problem. From time to time the banks as well

as the central bank of India (RBI) have taken precautional measures build laws and made their system

stronger.

The future of banking is going to be that more digitalization will occur to provide people with more

service.

Following are some of the developments we may see in the near future are:

● E-cheque: Soon we can expect E-cheque that may replace paper cheque.

● Telephone Banking: Banks have developed mobile app but services through telephones may also

be provided where chatbots may be used to clear any query of the customer.

● Mobile Banking: Banks have been using mobile banking but in the near future they be safer and

we may see different interface.

● ATM’s: We see that ATM are used to withdraw cash but, in the future, they may be used for

paying bills and transfer funds to others.

● Future of Banking Technology:

▪ Machine Learning: Machine learning may be used to predict behavior of the customers and

provide them with customized products.

▪ Security: OTP’s and passwords are used but, in the future, we may see biometric, voice

recognition or face recognition in the future for more enhanced security.

▪ Blockchain Technology: More and more banks will likely adopt the blockchain technology
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 to save the data of the users and eliminating risk of hacking. Financial transaction will be

done in an encrypted way.

▪ Artificial Intelligence: AI will completely change the banking process. With the help of AI,

we may witness better services.

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 What more can we expect in the future:

At the point when the digitization in banking industry gets develop, we can envision a

situation fairly like what we involvement in the World Wide Web today. Banks will lose their

individual personality in light of the fact that to the client they will all be interconnected and will give

every one of their administrations on the web. Not any more physical outings to the bank, no more bank

counters, etc. Rather clients will get to all financial administrations and do all their financial exercises

over the web, in the solace of their homes or workplaces.

The fate of Indian financial segment is brilliant in light of the fact that we have seen them

take on innovation, enhance its utilization, and improve their client administrations with digitization.

Late improvements in the financial division give us trust in the development of banking area in India.

Methods of prevention of Cyber Crime

Safety of one’s digital transactions and other activities can be kept safe through various methods and can

be categorized into two basic categories based on who puts in the effort for ensuring that safety.

The first one would be the category in which the user themselves put in the efforts/take

actions, which include:

1. Using random combination of alphabets, numbers and other characters: This is one of the

most common practices that has been on the rise lately and can be very useful against brute

force techniques or other practices intended to obtain access to your credentials and

passwords. This method, though safe, makes it harder for the user to keep track of multiple

passwords and leads to errors. Hence people usually avoid this method unless they have an

automated system or a way to keep a copy of those passwords, which is not always advisable

since a loss of that copy or access to that information by someone else risks exposing

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 multiple passwords and credentials.

2. Having least amount of relationship between the password and their own life: People often

use words that are related to their life and memories in some manner so that it is easier to

remember. But this makes it easier for a close but relatively untrustworthy person to guess

and gain unauthorized access.

3. Changing passwords frequently: This is one of the common and most suggested methods

and does help, but also has its problems where the users may face difficulty in remembering

and not confusing themselves between the old and new passwords.

4. Keeping track of devices, they used/logged into: Various services do offer the ability to track

the devices that you have used recently and this can be helpful since it lets the user be aware

of potential devices that might get used by someone else and has the risk of exposing their

credentials.

5. Being careful about the websites they visit: This is an important method with the rise of

phishing and other such practices where certain malicious sites impersonate another website

that you may trust and might ask you to log in and get hold of your credentials.

6. Being careful with networks they connect to/use: Public networks have been on the rise

lately and this has also become a security threat since one can monitor the data transferred

from the device and can use it to gain access to their credentials.

7. Avoid common words: Multiple websites offer data related to the websites whose security

might have been compromised as well as a list of most frequently used passwords. This can

be helpful for the user and they can ensure that their passwords are least likely to be guessed.

8. Keep track of people who might share or maybe aware of the credentials: Many times

credentials are shared between friends and family which may not be necessarily a bank

account or similar account, but might be an account like iTunes or Google Pay or other such
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 services which save credentials. This can pose a threat because of the fact that there are more

people who might make an error in security and might lead to someone else gaining access

to the accounts (example, allowing your children to have access to your accounts through

their Google Pay or other such apps might make it a threat if they do not ensure that their

devices are secure and cannot be accessed by their friends or other parties).

9. Avoid discussing details with people whom they might not know enough: People do face

threat from friends and family at times because of their negligence and misjudgment of

characters. It is important to be aware of how trustworthy one is and how much details you

can share, even if it may not be directly be related to your online banking details.

10. Being cautious regarding hyperlinks, redirects, etc. can help a lot as well because it usually

has a potential threat of using some form of phishing or installing malicious software’s that

might include things like key logger or stuff that can record your key strokes or other

activities that may give away your credentials.

The other category includes methods and steps are the ones that can be taken by the

organization itself to keep their customers/users safe. These may include:

1. Limited number of trials: Used to make sure that brute force methods are not applied.

2. Two factor authentication: This method is used more often these days, by sending a code to

a trusted phone number or email address, and demanding the code from the one who is trying

to log in. This method is used because the statistical probability that a person has your

password to both your digital banking account as well as your phone number or your email

address is quite low or might require the thief to be physically present near you, which puts

the thief in a high risk of getting caught, discouraging them to try such activities.

3. Additional personal question: this is a method used to add more security by reducing the
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 chances of an unauthorized access where a person might have been trying most probable

passwords on thousands of accounts to circumvent the limited number of wrong trials

allowed per account.

4. Behavioral patterns: Companies use this method when they observe unusual activities like

spending habits or geographical locations.

5. Tracking frequently used devices/IP address: Many services have started to deny access to

new devices unless they get approval through a device that has already been logged in, or

through two factor authentication.

6. Providing secure software’s that helps the user to create, store passwords and also autofill/

auto login. This has become one of the rising forms of software’s that automatically generate

a strong password using multiple alphabets, numbers, special characters, etc.

7. Blockchain: This is one of the recent techniques that has been implemented in certain sectors

for its security, but also has certain drawbacks

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 Literature Review

1. A Conceptual study on digitalization of banking-issue and challenges

By: Raghavendra Nayak

With the increase in mobile banking and use of banking through internet the cases recorded for

financial fraud have also been raised. The report says that financial frauds in the banking sector led

to approximately $20 billion in direct loss annually. 74 % of the population owns mobile phone which

have increased the use of mobile banking by the people. As per the Reserve Bank of India the volume

of mobile transaction has risen from around Rs 1819 crore in 2011-12 to more than Rs 101851 crore

in the year 2014-15. Technology has always been the biggest component which brought the change

in financial service sector. This is the reason many of the financial institution or banks are insisting

on cashless and paperless transaction (Nayak, 2018).

2. Online Banking and Cyber Attacks: The Current Scenario By: Dr. Manisha M. More

The case says that the number of cybercrimes in the country in expected to double and cross the 3-

Lakh mark in 2015. According to the paper the growth rate of cybercrime in at 107% on year while

around 12000 cases are recorded all around the country every month. The cyber cell recorded the

number of cases in the following year according to the paper are 13,301 in 201, 22,060 in 2012,

71,780 in 2013 and in the year 2014 cases were increased by whopping 62,189. The increase in use

of mobile phones, internet, net banking has led to increase in hackings. At the same time, it is

important for national security as the fraudulent money can be used in activities that may not be good

for a country (More et al., 2016)

3. Digitalization in Banking Sector By: S.V Mohana Sajana

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 The increase in use of Smart devices, online banking and other financial transaction have increased

risk for its user and the banks. India is emerging as a favorite destination for cybercriminals. The

origin of these Crime is from the countries like China, Pakistan, Bangladesh, Algeria. These attacks

include attacks on bank account, cloning of ATM/Debit Cards. These frauds should be an alarm for

these big banks as many big institutions uses this mode for transaction and now around 40%

transaction are done through this medium. India ranks third after Japan and US in the list of countries

most affected by these malpractices. India states like Maharashtra, Andhra Pradesh and Karnataka

have seen the highest number of cybercrime cases registered.

4. Rakesh H M & Ramya T J (2014) in their research paper titled “A Study on Factors Influencing

Consumer Adoption of Internet Banking in India”. According to his study on factors of influencing

the adoption of internet banking in India. He tried to examine the factors which really help people to

adopt safe internet banking. It is found that net banking is perceived through reliability. In this

procedure of net banking service, experts should focus on awareness towards safe and secured

transactions.

5. Shodhganga; as per their studies more than 2 people out of 10 globally are using online banking

without any security software and 33% of Indians were found not to have any secured servers A

survey recently found the two in 10 people globally who use the internet do not have secured servers.

Cybercrimes can be committed in these systems and it will be difficult to secure the system.

6. PWC PricewaterhouseCoopers, as per the Economic Crime Survey, Cybercrime now showed

immense ranking in economic crimes globally with 23% of respondents reporting that they were

victims of cybercrime. *0% of companies survey financial losses due to server breaches.

7. A case study on Cyber Security in E-Governance

By: Kumar D, Dr. N. Panchanatham

are a few conditions which, if fulfilled in an electronic transaction, then that holds the same value as

a written document or other similar things. The case also talks about security polices, practices and

procedures which are important to avoid any fraudulent or malicious activities which was not

intended. The paper also talks about user communities for Governance and obligation of each

community in Cyber security promoting the Governance with Information and Communication

Technology as a case study.

8. A brief study on Cyber Crime and Cyber Laws of India

The case briefly touches upon the history of cyber-crime and then focuses on its evolution, as well as

classification of various acts of cyber-crimes based on multiple factors and the primary intentions of

that cyber-crime. There are a few cases examined here, which include Bank NSP case, Bazee case,

Parliament attack case, Andhra Pradesh Tax case, Sony Sam bandh case, etc. If also describes various

laws and punishments in detail and majorly focuses on this. According to Jaki and Marin (2015) and

Nitescu (2016), the function of banking does not necessarily change, but consumer expectations do,

requiring banks to adapt. Nitescu (2016) goes on to assess the widespread use of mobile devices,

which enhances the 13 variety of consumer touchpoints. As a result, customer expectations for

flexibility and seamless multichannel banking are shifting. Furthermore, clients want not just a

smooth multi-channel banking experience, but also to be empowered to make their own decisions

and to be amused. Although the actual product quality is still essential to buyers, the experience itself

is as vital (Jaki & Marin, 2015). Customers' expectations of digital solutions are growing as their

technological expertise grows. As a result of the increased speed, 24/7 availability,dependability, and

security now play a more important role in meeting the demands of customers.

Today, the trend toward decentralization, block chains, and new rivals forces banks to alter their

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 business models in order to remain competitive (Nitescu, 2016). This danger is also evident in the

observed decline of physical branches and an estimated loss of 30% to 50% of net profit (Sia, Soh,

& Weill, 2016). Banks are still required as an institution (Jaki and Marin, 2015). As a result, the

likelihood of banks going out of business is quite low. Nonetheless, as Vasiljeva and Lukanova (2016)

point out, retail banks must stay up with emerging technology in order to serve their clients with the

best possible, low-cost, and fast solutions.

There are three ways that modern banks may increase client loyalty. First and foremost, the quality

of client interactions is the most essential aspect in determining customer loyalty. As a result, bank

management should be concerned with the training of staff who deal with clients. Second, retail banks

must develop an effective customer-centric marketing strategy. Because the non-personalized

strategy no longer works, banks should focus on developing individual-focused connections. Third,

accurate consumer data analysis enables banks to provide tailored offers. A client, for example, may

be provided discounts at a movie where he or she often visits. This sort of customer acknowledgment

is appreciated by clients. (Saiz and Pilorge, 2010).

Currently, study findings show that customers of financial services are increasingly likely to switch

suppliers. According to Accenture's poll, 18% of consumers moved banks, and 27% established a

new account with another bank. More than 58 percent of retail bank clients stated they utilize more

than two financial service providers. Gera, Wollan, and Caminiti (2015).

9. In a study conducted by (Reichheld and Sasser, 1990) it was seen that a retail bank which increased

its customer retention by around 5% increased its profits by around 85% The primary study was to

uncover the important factors of consumer satisfaction and future retail banking aspirations. To

determine the customer satisfaction level. The customer satisfaction model was used. With one

exception, all of the explanatory variables were significant, indicating that customer satisfaction in

retail banking is influenced by a variety of factors, including but not limited to service quality
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 dimensions. The primary explanatory factors in the domain of service quality were core and relational

performance, problem encountered, and satisfaction with problem resolution.

10. In another study by Gera, Wollan, and Caminiti (2015). It showed that the global financial crisis

which occurred in 2008 uncovered systemic weaknesses in the banking sector that are detrimental to

the economy as a whole. In the aftermath of the peak financial crisis, a number of worldwide

regulatory measures have been launched to modify the laws controlling the financial sector and

significant institutions. Regulatory reform and deregulation are components of wider policies aimed

at enhancing financial stability. The financial system's stability is critical to future growth and

sustainability. The banking system's responsibility in the economy and society as a whole is to

guarantee that the economy is stable and sustainable.

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RESEARCH METHODOLOGY

Objective of the Study

• To know the frequency of using digital banking

• To identify the problems faced by the customers while using digital banking

• To know the adoption of digital banking in India

• To a certain the future of Digital banking in India

Problem Formulation

• What are the roots of digital banking?

• Why digital banking is necessary for India?

• What are the methods and preventions kept in mind to have a secure system?

• How the Government takes care of digital banking in terms of cyber security?

Hypothesis of the Study

H1: Customers are adopting more of digital banking services in comparison to traditional banking

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 Pilot study

The Pilot study was done for more than 14 research papers and 9 literature reviews. The period for these

papers was from 2012 till 2020. A pilot study is used to test the design of the research and experiment

which can provide full analysis of the formulation of study. It gives more refined chances of findings in

the study and also helps to filter the appropriate hypothesis.

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 Analysis Of the Data Collected by Google Form: -

Out of 243 responses the maximum respondents were between the age of 36-50 (44.9%)

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As we can see that out of 243 responses 95.9% i.e. (233 respondents) uses digital banking services.

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According to this different people have responded 72% i.e. (175 respondents) uses all services like mobile

banking, Internet banking, and Credit and Debit Card.

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As we can see that out of 243 responses 81.5 % i.e. (198 respondents) are familiar with rules and regulations of

Digital Banking services.

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239 respondents out of 243 says that digital banking services made their life easier

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61.3% respondents i.e. (149 out of 243) sometimes faced challenges while using digital banking

services.

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63% (i.e., 153 out of 243) strongly agrees that Security play’s vital role while using Digital Banking

Services.

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79% respondents (i.e., 192 out of 243) have not experienced problems regarding cybercrime

while using Digital Banking Services.

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69.1% respondents i.e. (168 out of 243) gained trust while using digital banking services.

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Here 1 is strongly dissatisfied to 5 is Strongly Satisfied. 102 respondents out of 243 are strongly

satisfied on using of Digital Banking Services.

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47.3% respondents i.e. (115 out of 243) feels that Digital Banking Services will create positive

impact for Indian Banking Sector in future

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Findings

From the above data collected through the primary sources we come to and conclusion that digital banking

is been proved to be very helpful, time saving, effective & efficient.

Almost everyone once in their lifetime has used digital banking. It has really helped them in many ways

like saving time, ease of doing banking services, less cybercrime problems, people know the terms &

conditions of digital banking. People also agree that digital banking is better than traditional banking.

Thus, we find out Digital banking has been adopted by customers.

Thus, the hypothesis H1 is accepted.

Conclusion & Recommendations

Recommendations

To summarize, banks have recognized the promise of digitization and are adjusting their business

models. To effectively navigate the shift, the need for quickness in implementation of, imaginative, and

customer-focused model is on surge. New consequences for banks and their business models may

emerge as a result of the prior debate. For starters, artificial intelligence has the potential to significantly

alter infrastructure management. Second, in the customer interface pillar, social media banking is

anticipated to gain traction. Another intriguing development with long-term potential is robot guidance.

Robo advise is a technological advancement in which investing and advisory services are performed by

computer algorithms rather than service employees. Recommendations for investments, as well as more

basic queries, may be answered, for example, using a chat option. Also, the adoption of SHADOW

BANKING, being the key aspect for evolution of banking industry, this gives banks the chance to save

expenses and improve efficiency. This pricing advantage might be passed on to the consumer in order to

keep fees to a minimum. Aside from the economic reductions, robot advising offers further advantages.

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Banks may assure their clients a high level of service and availability 24 hours a day, seven days a

week. Furthermore, robot advise not only allows banks to sell their goods via new channels, but it also

allows banks to maintain their function as middlemen and maintain direct touch with clients. However,

robot advise should not be seen as a technology that revolutionizes the banking business, but rather as a

catalyst for the financial services industry to evolve.

Conclusion

A complete direct banking plan as part of digitalization plan is one of the key options for future success

in overcoming competitive dynamics and the different obstacles that retail banks confront. The

digitization strategy must outline how the business model will need to change in order for a successful

adoption. Digitalization has an impact on several areas, including the client interface, resources,

transactions and procedures, and the financials of banks, and they must be adjusted. Retail banks saw

the need for new digital business models and invested extensively in them. As the digitization age

comes to an end, the era of the customer will begin shortly.

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 Adoption of Digital Banking Services by Consumers in India

Dear Participant,

I hope you are doing well and safe!

I am a student of CHRIST (Deemed to be University), Delhi NCR currently pursuing BBA Honors.

As a requirement of my course, I am conducting research under the guidance of Dr. Renu Singh on

Adoption of Digital Banking Services in India. It will take approximately 2 - 5 minutes to complete.

Your participation is voluntary, and all responses will be kept confidential. Thank you for taking the

time to participate in my study.

1. Name *

2. Age *

Mark only one oval.

18-24

25-35

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 36-50

50+

3. Have you ever used digital banking? *

Mark only one oval.

YesNo

4. If you have used it what is the form? *

Mark only one oval.

Mobile Banking Internet Banking Credit and Debit Card All of the Above

5. Are you familiar with the rules and regulations for using digital banking services? *

Mark only one oval.

Yes No

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6. Has Digital Banking services made your life easier? *

Mark only one oval.

Yes No

7. Have you faced any challenges in using digital banking services? *

Mark only one oval.

Yes No

Sometime

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 8. Security plays a vital role while using Digital Banking Services? *

Mark only one oval.

Strongly disagree Disagree

Neutral Agree

Strongly agree

9. Have you ever experienced problems with cybercrime while using digital *

banking services?

Mark only one oval.

Yes No

10. Have you developed trust while using digital banking services? *

Mark only one oval.

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 Yes No Maybe

11. Your experience on usage of Digital Banking Services *

Mark only one oval.

Strongly Dissatisfied

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 5

Strongly Satisfied

12. Can digitally banking services will create positive impact for Indian Banking *

Sector?

Mark only one oval.

Strongly disagree Disagree

Neutral Agree

Strongly agree

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REFERENCES

Anggraeni, R., Hapsari, R., & Muslim, N. A. (2021). Examining Factors Influencing Consumers

Intention and Usage of Digital Banking: Evidence from Indonesian Digital Banking

Customers. APMBA (Asia Pacific Management and Business Application), 009(03), 193–

210. https://doi.org/10.21776/ub.apmba.2021.009.03.1

Baicu, C. G., Gârdan, I. P., Gârdan, D. A., & Epuran, G. (2020). The impact of COVID-19 on

consumer behavior in retail banking. Evidence from Romania. Management Şi

Marketing, 15(s1), 534–556. https://doi.org/10.2478/mmcks-2020-0031

Banks and Bank Systems. (2021). Banks and Bank Systems. https://doi.org/10.21511/bbs

Batra, R., & Bahri, A. (2018). Financial Performance and Corporate Social Responsibility

(CSR): Empirical Evidence from Banks in India. Think India (New Delhi).

https://doi.org/10.26643/think-india.v21i2.7761

Bednarz, Z., & Manwaring, K. (2021). Risky Business: Legal Implications of Emerging

Technologies Affecting Consumers of Financial Services. Social Science Research

Network. https://doi.org/10.2139/ssrn.3880912

Garrity, S. (2013). Built Environment Infrastructure Design: Some Lessons from the Past.

IACSIT International Journal of Engineering and Technology.

https://doi.org/10.7763/ijet.2014.v5.590

Giovanis, A., Assimakopoulos, C., & Sarmaniotis, C. (2019). Adoption of mobile self-service

retail banking technologies. International Journal of Retail & Distribution Management,

47(9), 894–914. https://doi.org/10.1108/ijrdm-05-2018-0089

Hanggraeni, D. (2018). Competition, bank fragility, and financial crisis. Banks and Bank

Systems, 13(1), 22–36. https://doi.org/10.21511/bbs.13(1).2018.03

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Haralayya, B. (2021). Retail Banking Trends in India. Social Science Research Network.

https://doi.org/10.2139/ssrn.3860852

Khan, F., & Surisetti, S. (2020). Financial Well-Being of Working Women: Mediating Effect of

Cashless Financial Experience and Digital Financial Self-Socialization. Social Science

Research Network. https://doi.org/10.2139/ssrn.3882140

Krstić, N., & Tešić, D. (2016). Digital disruption of the banking industry: Threat or opportunity?

Bankarstvo, 45(2), 12–33. https://doi.org/10.5937/bankarstvo1602012k

Lim, G. H., & Randhawa, D. S. (2005). Competition, liberalization and efficiency: evidence

from a two‐stage banking model on banks in Hong Kong and Singapore. Managerial

Finance, 31(1), 52–77. https://doi.org/10.1108/03074350510769479

Osuma, G. O., Ailemen, I. O., Osabohien, R., Chisom, N., & Pascal, N. (2018). Working capital

management and bank performance: empirical research of ten deposit money banks in

Nigeria. Banks and Bank Systems. https://doi.org/10.21511/bbs.13(2).2018.05

Paterson, C. (1974). The use of ratios in financial analysis. Retail & Distribution Management,

2(2), 19–21. https://doi.org/10.1108/eb017777

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CHRIST (Deemed to be University), Delhi NCR
Certificate of Plagiarism Check for Synopsis

Author Name Aaditya

Course of Study 6BBAH

Name of Guide Prof. Renu Singh

Department School of Business and Management

Acceptable Maximum Limit 15%

Submitted By [email protected]

Paper Title Adoption of Digital Banking by Consumers in India

Similarity 17%

Paper ID 723792

Submission Date 2023-04-18 11:45:02

Signature of Student Signature of Guide

Head of the Department

* This report has been generated by DrillBit Anti-Plagiarism Software

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