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 bun 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 dirs. is

that it uses technology to design experiences, both seen and unseen. "Digital is all about

making vat can be seen unseen — making services so smooth and seamless that it

invisible To The entombed". "Despite all the automation and improvements that digital banking has the
potential to achieve, customers and their needs still form the very

core of central banking sector."

It is the simplicity of design, the removal of friction and the ability to improve the

customer experience _
DIGITAL BANKING

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 custom sized but consistent Fil brand experience to customers across

all channels and points of interaction.

- underpinned by analytics and automation.

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.

Benefits to the bank:

1 Lower costs through;

(1) the elimination of costly back-office paxessing operations,

providing technology interfaces for the client to use plus the ability to deal with

banking specialists via a video link) — a minimum number of actual staff will be

required.

(4) concentrating banking,'buslness specialists in a single centre, who are then

available to clients via a technology link (either on their mobile, pc or via a

kiosk branch).
Operating cost savings of between 20% to 40% could be achieved this way, according to

industry experts. Cutting costs has the opposite effect on profits — they go up.
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Digital Services at HDFC Bank

HDFC Bank provides a very good digital service to the customer for their transaction.

Through these services the customer of the bank can also access their transaction. Digital

services include-

1. Fund transfer

HDFC Bank allows various categories ofFund Transfer options for safe and secure fund

transfers which make banking easy. The fund transfer options are:

E-Monies National Electronic Funds Transfer: Which is easy, fast and convenient and

supports fund transfers from any bank branch to any other bank brarx.h anywhere in

India.

RTGS Fund Transfer: Real Time Gross Settlement is the fastest fonn of inter-bank

fund transfer in real time which is speedier, faster and has no geographical limits.

Visa Card Pay: A facility used to pay multiple Visa Credit Card bills issued by any bank

form the comfort of one's home and the payment is safe and charges at a negligible fee.

IMPS: Immediate Payment Service from HDFC Bank is an instant real time inter-bank

electronic fund transfer service which can be done even on Sundays or Bank holidays or

late at night.

2. Online Banking

With an increasing trend of internet usage, everything has been digitalized and the bank is

not behind in this race. The bank offers the facility of Online banking to its customers

which is safe and reduces unnecessary hassles of visiting the branch to carry out any

transaction. Online banking service offered by HDFC Bank includes:

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Net Banking: Net Banking is HDFC Bank's Internet Banking service. Providing up-to-

the-secoml account information, Net Banking manages customer's account from the

comfort of costumer's mouse- anytime, anywhere.

Say goodbye to long queues and paper work. Presenting one more way for Net Banking.
Customer can now call the Phone Banking nurntxrs in your city to register for Net

Net Banking offers a host of banking transactions from the comfort of the customer's

home. One can check the bank account balance, book a Fixed or Recurring Deposit,

recharge the mobile or DTH Connection, paying off utility bills, paying taxes, applying

for IPO, invest in Mutual Funds online to name a few. The process is fzst and completely

secured without having to worry about any fraud or theft.

Bank industry leading service provides a host of features at customer finger-tips:

View Account Balances & statements

Transfer Funds between accounts

Create Fixed Deposits Online

Request a Demand Draft

Pay Bills

Order a cheque Book

Request stop payment on cheques

And lots more

Benefit of Net Banking

Internet Banking is the most convenient and powerful way to manage customer's

account. Net Banking is Real Time, giving them up-to-the-second details on customer's

account. It can be accessed anytime, from anywhere, giving them complete control over

their finances. There are no queues to stand in, or turn to wait for. With Net Banking you

are in control.
Page50

HDFC Bank's Net Banking is secure. Using industry-standard technologies and

infrastructure, our service gives you peace of mind. So next time you think of visiting

your branch, switch on your PC instead. View the Net Banking Demo and see how easy it

is it use.

Credit Card Net Banking: Through this facility the customer can view the credit card

activities online, pay the credit card bills, view Credit Card Statements online, know the

unbilled transactions and get the complete account information

Email statements: A savings or a current accountholders are eligible to get their account

statements on their email id. The Savings accountholders get a monthly statement and the

Current Accountholders get daily, weekly or monthly statements. The statements are free

of cost display all the relevant transactions ofthe relevant period.

Loan accounts online: This feature enables the bank to provide post loan services to the

customers. Loan customers of the bank can log in and view their loan summary,

transaction history and loan account details.

3. Phone Banking

The bank extends banking information to your phone where information is available at

the end of a simple phone call.

The customer can also call the bank and effect transactions over the phone. Transactions

like reporting loss of ATM, credit, forex or prepaid cards, checking account balance and

cheque status, ordering cheque books, stopping cheque payments, credit card related

queries can all solved by a call to the bank's phone banking division.

Now your bank account is now just a phone call away. Through Phone Banking you can:

Check your account balance.

Eriluire on the cheque status.

Have a mini statement faxed across to you.

Request for a cheque book / Account statement

Eriluire on your fixed deposits / TDS.

Open a fixed deposit

Request for Demand Draft / Managers Cheques_

Transfer funds amongst your linked accounts

Pay utility and HDFC Bank Credit Card bills.

Do stop cheque payments.

Report loss ofyour ATM 'Debit Card.

Product information.

4. Mobile Banking

By simply downloading the bank's app on your smart phone, you can avail of over 75

transactions. The application is secure and fast. Mobile is now your bank' Now access

your bank account and conduct a host of banking transactions and inquiries through your

mobile, with our unique Mobile Banking services.

Mobile Banking is a service that allows you to do banking transactions on your mobile

phone without making a call, using the SMS facility.

Mobile Banking service provides a host of features at your finger-tips through SMS:

Get your balance detail

Obtain your last 3 transactions details

Request a cheque book

Stop a cheque payment

Enquire cheque status

Request an account statement

Get fixed deposit detail

Pay your bills

How does it work?

Mobile Banking works through a set oftext massages (SMS). With SMS you can perform

a wide range of query-based transaction from your Mobile Phone, without even making a

All you need to do is to type in the specified code for the transaction as a text massage

and send 5676712.

See designated codes for GSM Phone.

See designated codes for Reliance India mobile Phones.

You will receive the response in form of a text message on your mobile phone screen

within a few seconds.

How is this different from making a call on mobile phone or using Phone Banking?

The differences between making a call on mobile phone and sending a text message are

as follows:

You are mt required to dial a numtxr; you send a text message i.e. a culed message to

5676712

HDFC Bank does not charge anything for this service and there is no airtime involved.

However, the Cellular Service Provider may levy a nominal charge for the SMS facility.

In Mobile Banking, you actually see your banking transactions on your mobile phone

screen as opposed to hearing a message through the phone.

How do avail of this service?

a) If you are opening an account with the bank, you can apply for MobileBanking

through tlr account opening document.

b) If you already have an account with the bank, you can apply for MobileBanking

through the combined Direct Banking Channels form You can the form and

call for a sales representative. Alternatively you can fill this form and hand it over to your

nearest branch.
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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.

Sampling Design:

For my I have used Convenience sampling technique.

Convenience sampling is a non-probability sampling technique where subjects are

selected trcause oftheir convenient accessibility and proximity to the

SAMPLE SIZE - Sample of 100 people was taken in order to conduct the research.

UNIVERSE - In accordance to the specified research universe is Lucknow 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 Tin's:

FINDINGS

In our study we find that 100% respondents are aware with the ATM facility use this

facility arxl around 75% of them use internet banking, 60% use mobile Ikinking, 24% use

phone banking. But the anareness oflnsta query is only

Most of customers believe that Digital banking is more convenient way for banking and

most ofthem use digital banking in order to save time and also as it has 24 hour access.

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

Most of respondents who are not using the Go Digital initiatives of the bank, it is trcause

they are not much aware about the initiatives ofthe bank

The customer are using the digital banking services for few purpose it nrans the use of

the digital banking channel is limited for few transaction.

Most of respondent who are using the digital banking services are satisfied with the

service ofthe bank for the particular digital banking service.

The response of the respondents indicates that digitalization has a gl»d and positive

impact on the banking services.

According to the response of the respondents it shows that digitalization improved the

banking services very much for the customers.

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

Bank should educate the customer about the usage of digital banking services and

also their advantages. This would prompt the customers to shift from traditional

brick and mortar channel.

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

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. Cuomer should be

made aware of these services and must be encouraged to the same.

The bank may improve existing facilities in rural areas through advertising, spread

awareness about computer and internet banking.

The best way to motivate the customer to use digital banking is more efficient

care service _

LIMITATIONS

There are certain limitations of this project report which are listed text low.

This study is limited only to the customers of the HDFC bank, Lucknow.

• the responses of the customers may biased.

Sample size is limited to 100.

BIBLOGRAPHY