A Study on Awareness and Perception on Adoption of Digital Banking in

rural areas with reference to Kolar District

BY

Sahana C
1EW20BA076

Submitted to

The HOD
Department of MBA & Research Centre
East West Institute of Technology, Bengaluru

MASTER OF BUSINESS ADMINISTRATION

Under the guidance of

INTERNAL GUIDE

Prof. Devaraju N
Assistant professor
Department of MBA & Research Centre, EWIT.
INTRODUCTION
Digital banking is an electronic payment system that enables customers of a bank or other
financial institution to conduct a range of financial transactions through the financial
institutions websites. The online banking system will typically connect to or be part of the
core banking system operated by a bank and is in contrast to branch banking which was the
traditional way customers accessed banking services. To access a financial institutions online
banking facility a teacher with internet access would need to register with the institution
for the service and set up a password and other credentials for customer verification. The
credentials for online banking is normally not the same as for telephone or mobile banking.

LITERATURE REVIEW
 Rajsee Joshi, Ritika Goel, Shraddha Garg (2019): digital banking plays a vital role in
today’s world where people are looking beyond the traditional way of going to the bank
for doing their bank transactions. Internet banking has transformed the traditional way of
banking and has brought new dimensions to the banking sector. This research describes
the current state of digital banking and discusses customer’s perception on adoption of
digital banking in Indian context.
 Shamsher Singh, Ravish Rana (2019): the present study has focused on customer who
uses digital banking. The objective of the study is to find the customer perception and
adoption of the digital banking. The study also explored the consumer awareness,
perceptions and willingness to engage in using a smart phone to replace the content of
their physical wallets. Population for the research are the customers who use mobile apps
as a major medium for doing banking transaction.
 Vajinder Pal Singh, Bhuvan Lamba (2015): the necessity of financial inclusion is
urgent, particularly in the rural hinterlands, where the vast majority of the population
resides. However, these areas continue to remain excluded from formal banking facilities,
despite various attempts made by the government, policy makers, and also credit
institutions. The main objective of the present study was to study the perceptions of the
rural customers towards banking services and also to calculate the mean gap between
customer’s expectations and perceptions towards banking services in rural areas. The
current study was aimed at evaluating the service quality of banks in the rural areas.
 Patel Ishan Harshadbhai(2018): technological developments have made the banking
industry to change their conventional ways of service delivery as well as product
offerings and the era of digital banking has begun. Service quality and customer
satisfaction are the key to success for any business. Despite of several studies in the area
of customer satisfaction and/or service quality of various alternate banking channels
separately no model or tool is available to evaluate service quality of digital banking.

RESEARCH GAP
The above studies conducted on Customer perception of adoption & use of digital financial
services and mobile money services. These studies aim to investigate the impact of fintech,
mobile money and digital financial services and factors impacting adoption of the services.
The study also determines their social impact through financial inclusion. This study will
focus on the level of customer awareness and perception in adoption of digital banking in
rural areas with in the frame work of kolar district. The study will also highlights the
challenges and issues in adoption of digital banking system in rural area.

STATEMENT OF PROBLEM
Through digital banking, individuals can now easily make transactions, check their account
balance or even make transfers just with a single click of a button on their smart phone, desk
top or any other digital device. No more requesting or looking over paper statements or
withdrawal slips, any longer. It is paper less banking. Facilitates online payments for online
shopping etc. The convenience of banking from the comforts of home.
The study is focus on the awareness and perception level of digital banking in rural area. The
study also helps to identify the challenges, issues and problems in adopting digital banking in
kolar.

NEED FOR THE STUDY

The main need of the chapter is to analyse the digital banking satisfaction towards digital
banking. It will help the banks to know about the perception of customers towards the service
provided by the bank.Helps in finding out the important factors influencing digital banking.

OBJECTIVES OF THE STUDY

 To study the concept of digital banking and its methods
 To identify factors which influence in adoption of digital banking in rural area
 To analyze the awareness and perception level on digital banking facilities
 To examine satisfaction level towards digital banking in rural areas

SCOPE OF THE STUDY

The present study highlights the extent of utilization of the digital banking services offered by
the banks by the sample respondents. In this global environment the customer is more
knowledgeable and their expectations are very high and they need more convenience in any
services they avail.

RESEARCH METHODOLOGY
Primary data: the primary data will be collected through structured questionnaires and direct
interaction with users of digital banking facilities.

Secondary data: the secondary data will be collected through web sources, magazine,
articles and research papers.

LIMITATIONS OF THE STUDY

 Study area will be restricted to only to rural areas of kolar district.
 The sample will be restricted to 150 respondents only.
 The accuracy of the outcome will be based on responses from the respondents.

REFERENCES
 Rajsee joshi goel, shraddha garg (2019) a study on customer perception on adoption of
digital banking in Indian banking sector was published in SSRN 3363623

 Shamsher singh, ravish rana (2019) a study on customer perception and adoption of
digital banking was published in research journal of humanities and social science

 Vajinder pal singh, bhuvan lamba (2015) a study on the perception of rural customers
towards banking services in Punjab was published in Indian journal of finance

 Patel ishan harshadbhai (2018) development of model to evaluate service quality gap in
the generation of digital banking was published in Shodhganga.