Reforms in Banking Industry with Digitalization

of Banking in India

A Comprehensive Report
SUBMITTED TO

International Management Institute

Bhubaneswar

IN PARTIAL FULFILMENT FOR THE AWARD OF

POST GRADUATE DIPLOMA

in

MANAGEMENT

By

SHRUTI

20PGDM-BHU103

2022

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ACKNOWLEDGEMENT

The Project has been finished with the help of guidance, adherence, and research. This
Comprehensive Project would not have been possible without the guidance of my mentor
Prof. Sougata Ray, who has given me a lot of guidance in each step for the completion of my
project. I would like to convey her special thanks for guiding me.

I am grateful and thankful enough to get constant support, guidance and encouragement
from all Faculties of IMI Bhubaneswar which helped me in successfully complete the
project work.

Shruti
20PGDM-BHU103
Batch 20-22

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CERTIFICATE

This is to certify that the Comprehensive Project titled “Reforms in Banking Industry with
Digitalization of Banking in India” is submitted to the International Management Institute,
Bhubaneswar in partial fulfilment of the requirements of the Post Graduate Diploma in
Management is an original work done by Shruti at International Management Institute,
Bhubaneswar under my supervision and guidance.

To the best of my knowledge, this report has not formed the basis for the award of any previous

degree/diploma to any candidate of any university/ Institute.

Date: 15-03-2022

Name and Signature Prof. Sougata Ray

(Supervisor)

IMI, Bhubaneswar

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Table of Contents

CERTIFICATE .................................................................................................................... 3
INTRODUCTION: ............................................................................................................... 5
OBJECTIVE OF THE STUDY: ............................................................................................ 8
LITERATURE REVIEWS: ................................................................................................... 9
RESEARCH METHODOLOGY: ........................................................................................ 17
SUMMARY OF THE SURVEY: ......................................................................................... 18
FINDINGS: ....................................................................................................................... 21
RECOMMENDATIONS:.................................................................................................... 22
CONCLUSION: ................................................................................................................. 23
LIMITATIONS OF STUDY: ............................................................................................... 24
REFERENCES ................................................................................................................. 25
QUESTIONNAIRE ............................................................................................................ 25

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INTRODUCTION:

The automation of traditional financial services is known as digital banking. Customers of a

bank can use an electronic or online platform to access banking goods and services. Digital
banking entails digitizing all banking processes and replacing the bank's physical presence
with an always-on internet presence, obviating the need for customers to visit a branch.
It goes without saying that the benefits of moving to a more technologically advanced manner
of doing things considerably exceed the costs. Similarly, as a technology by-product, digital
banking intends to make life easier for account holders.
Types of Digital Banking Payments:
• Banking cards: This tool may be used to not only withdraw cash, but also to make
various types of digital payments. Cards can be used for both online and point-of-sale
(PoS) transactions. Banks can also offer prepaid cards; these cards are not tied to a
bank account and operate solely on the funds deposited onto them.

• Unstructured Supplementary Service Data (USSD): Mobile transactions may be

completed without the need of an application or an internet connection by dialling the
number *99#. The number is applicable across the country and supports greater
financial inclusion on the ground. The caller may navigate an interactive speech menu
and choose the desired choice on the phone's screen. The only caveat is that the
caller's phone number must be the same as the one associated with the bank account.

• Aadhaar Enabled Payment System (AEPS): Post successful Aadhaar number

verification, AEPS allows the customer to begin banking instructions.

• Unified Payments Interface (UPI): UPI is now the most popular type of digital
banking. UPI uses a virtual payment address (VPA) to allow users to send money
without having to provide their bank account number or IFSC code. Another notable
advantage of UPI is that the applications allow you to integrate all of your bank
accounts into a single location. Funds can be sent and received at any time, with no
time constraints. BHIM, PhonePe, and Google Pay are UPI-based applications in
India. In addition to transferring payments to other virtual addresses and bank
accounts, the BHIM application also allows users to transfer funds to another Aadhaar
number. More importantly, UPI-based payments are free of charge.

• Mobile Wallets: Mobile wallets have made it entirely unnecessary to memorise four-
digit card pins, enter CVV information, or carry cash. Mobile wallets save bank
account and credit card information so that users may quickly deposit dollars to their
wallets and make purchases to other businesses that use similar apps. Paytm,
Freecharge, Mobiwik, and other popular mobile wallets are examples. Mobile wallets,

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 on the other hand, usually have a restriction on how much money may be put.
Depositing monies from the mobile wallet back into the bank account may be subject
to a modest cost.

• PoS terminals: PoS machines are typically small, portable devices that read a card to
approve and conduct a transaction. This is the preferred way of payment at
supermarkets and petrol stations. PoS terminals, on the other hand, have developed
into more than just physical PoS devices as digital banking has grown in popularity.
Virtual and mobile point-of-sale terminals have emerged, which leverage the NFC
technology of mobile phones and web-based apps to begin payment.

• Internet and Mobile Banking: Internet banking, often known as e-banking, is the
process of receiving some financial services through the internet, such as fund
transfers and account creation and closure. Because internet banking is confined to
essential operations, it is considered a subset of digital banking. Mobile banking, on
the other hand, is the provision of banking services using smartphone-
based applications.

The following are some of the advantages of digital banking:

Digital banking allows customers to handle banking transactions from the convenience of their own
homes, whether they are an elderly person who is tired of standing in lines, a working-class
professional who is swamped with work, or a regular person who does not want to visit a bank
branch to run a single errand. It also has the advantage of being convenient.

• To further on the convenience provided, digital banking allows a user to conduct

financial transactions at any time, with access to banking operations available 24
hours a day, seven days a week.

• One of the most major flaws of old banking was the excessive emphasis on paper.
With the rise of digital banking as a service, banking has gone paperless. A user can
check their records at any time by logging into their account.

• With payment methods being well-integrated with online buying platforms, online
purchasing has become a cakewalk. Internet banking has had a big impact on online
payments.

• A user may set up automated payments for typical utility bills such as energy, gas,
phone, and credit cards using digital banking. The consumer is no longer required to
make an effort to remember the due dates. The consumer can choose to get
notifications about impending payments and past due balances.

• Digital banking extending services to remote areas is seemingly a step toward

holistic development. With smartphones at affordable prices and internet access in
remote areas, the rural population can make the most out of digital banking services.

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 • Fund transfers offered by digital banking lessen the risk of counterfeit cash.

• At the touch of a button, a user may report and disable missing credit cards using
digital banking. This advantage significantly improves a bank's customer's privacy
and security.

• Digital banking reduces the circulation of black money by encouraging a cashless

society and allowing the government to keep track on fund movements. In the long
term, digital banking is predicted to reduce a currency's minting requirements.

Digital Banking in India:

Digital banking in India began to take shape in the late 1990s, with ICICI Bank being the first
to offer the service to its retail customers. Digital banking only became ubiquitous in 1999,
when internet prices were cut, and internet awareness and trust were raised. Only as the
internet's development and expenses decreased did banks begin to provide a wider range of
products online.

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OBJECTIVE OF THE STUDY:

• To study major changes taken place in Banking Industry with introduction of

Digitalization.
• To study various Digital Services offered by Banks.
• To study more preferred platforms from customer’s point of view e.g., Credit/Debit
Cards, Online Banking, UPIs, Bank’s App etc.

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LITERATURE REVIEWS:

1. How Digital Banking has Brought Innovative Products and Services to India: By
Bhadrappa Haralayya, HoD and Associate Professor, Department of MBA, Lingaraj
Appa Engineering College Bidar, Karnataka, India.

In this paper it talks about how previously Banking was a lengthy procedure and
customers had to preserve tangible records of their transactions or financial history.
Digitalization, on the other hand, has now made paperless banking a reality for
everyone. The spread of technology has been a primary driving force behind India's
banking sector's growth.
Banks created new goods and services to meet rising client demands and assure
customer happiness. Banking processes, goods, and services have all been redefined
as a result of digitalization. Customers will be able to complete transactions more
quickly, accurately, and conveniently. It has changed the way banks communicate
with their clients.

The paper talks about digital banking. It allows customers of the bank to use
online/electronic platforms to access banking goods and services. It refers to the
digitization of all banking activities in order to replace the bank's physical presence
and eliminate the need for customers to visit a branch.

Digital Banking includes:

• Cash deposits, withdrawals, and transfers
• Bill Payments
• Account management and services
• Applying for financial products
• Loan Management
• Portfolio Management
• Investment in financial services

It also talks about Digital Products and services offered by Banks to its customers
which includes:
• Bank Statements: Bank statements for any time period may be seen and
downloaded.
• Cash Withdrawals: ATMs may be found in most towns and cities. Cash
withdrawals from an ATM may be made at any time using digital banking
facilities.
• Fund Transfer: One of the most major advantages of digital banking is the
ability to transfer funds online using RTGS, NEFT, IMPS, and mobile
banking applications. Because of these internet alternatives, there is now less
need for checks and demand drafts than there was earlier.
• Managing Cheques: If necessary, one can use digital banking to interfere in
the check clearing process and halt the payment. Checks can be stopped for a
variety of reasons, including the improper amount, the erroneous beneficiary’s

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 name, or misplacement. In that instance, one can use digital banking to cease
checks by logging in.
• Mobile Banking: Mobile banking refers to the use of a smartphone or tablet
application to access digital banking facilities.
• Bill Payments: A user can utilise the auto-debit option for bill payments to set
up standing instructions for monthly debits in lieu of a regular utility payment.
• Finance: Through digital banking, one may create fixed deposit accounts,
apply for loans, invest in mutual funds, and purchase insurance goods. Demat
accounts and bank accounts can be connected to create a consistent flow of
cash for productive investments.
• Monitor Transactions: With digital banking, a user may check account
balances and overdue amounts with a single click.
Also, this paper talks about various methods of Digital Banking including banking
cards, UPI, Mobile Wallets etc.

2. Financial Inclusion: The Role of Fintech and Digital Financial Services in India
(Indian Journal of Economics & Business, Vol. 19, No.1 (2019) : 85-93)
By Vinay Kandpal, University of Petroleum & Energy Studies Dehradun & Rajat
Mehrotra, Lovely Professional University.)

This paper talks about the cashless transaction system which is gaining popularity day
by day, as the market gets more globalised, and the financial sector develops. As a
result, more and more individuals are switching from cash to a cashless system. The
cashless system is not only necessary, but also desirable in today's world. Efforts to
promote financial inclusion in India have shown varied outcomes in recent years. A
strong legislative and regulatory push has resulted in a significant growth in bank
account access. However, using these accounts and taking advantage of formal
financial services other than savings accounts has proven to be quite difficult.

It also discusses government's recent activities surrounding demonetization and the

transition to cashless transactions will spur more innovation and new entrants into the
industry. The banking act revisions clearly indicate the government's, RBI, and
banking institutions' desire to guarantee stable economic growth by supporting a
healthy BFSI. Building industry trust will be critical to India's further development.
Banks and regulators face new issues as a result of newer technology, with security
being a major worry. With the increase of cyber-frauds, regulators and bankers will
need to work together to guarantee that control measures are implemented.

The Indian government has made a concerted effort to provide non-banking citizens
with simple access to financial goods. Traditional banking institutions are now
attempting to break into rural India by developing new mobile-based banking
solutions, as payment companies have proved the benefits of mobile-led solutions.
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 Large technology businesses are adopting new means to reach out to the rural people
and teach them about various financial products, guaranteeing that their hard-earned
money is properly invested, by the support of government.

3. India Digital Financial Inclusion: (resource-mstar-india-digital-financial-inclusion-

report.pdf):

The story of Financial Platform expansion is told in this report. It deconstructs the
primary trends and forces that underpin them, identifies important players and the
roles they've played, and offers a roadmap for making India's next phase of digital
financial inclusion more successful and inclusive. The report, commissioned by
USAID under the Mobile Solutions Technical Assistance and Research (mSTAR)
initiative, incorporates field research with digital financial service consumers and
suppliers, as well as interviews with top government, development, and financial
industry professionals. Since 2014, India has been implementing one of the world's
most ambitious financial inclusion programmes, bringing over 330 million individuals
into the formal banking system.

Significant innovation in both the public and commercial sectors has fuelled India's
rise of digital financial inclusion. Government policy that expressly promotes access
to the financial system as a tool for poverty reduction and inclusive growth has been
one of the primary drivers. Bank accounts have been created for the majority of
Indian residents via the government's Pradhan Mantri Jan-Dhan Yojana (PMJDY)
plan, and these accounts have become the default route for government payments,
including the Direct Benefit Transfer (DBT) system.
This paper talks about the ways in which the government has placed a large stake on
technology in order to attain quick scalability in account opening. The future of
banking is likely to be digital, thanks to increasing internet availability and
smartphone use. The goal is to leapfrog more traditional financial access models by
tying bank accounts to biometric identity (through the Aadhaar system) and cellphone
phones. Government has promoted a differentiated banking model in which
enterprises like Mobile Network Operators (MNOs) and fintechs can provide banking
services under a Payment Bank licence, while microfinance institutions (MFIs) are
urged to use technology to match with the needs of their customers.
In this paper the role of Digital Payments in Financial inclusions is discussed on the
basis of following factors:
• Importance of human touch point.
• Ways in which aspiration of growth and desire to be a part of national Digital
Economy is closely linked with Digital Finance.
• Role of product design in Digital banking.
• People’s willingness to hold cash with them affects the usability of Digital
Banking.

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This paper also discusses the journey of Digital Financial Services led by various reforms
taken place such as Jan Dhan Yojana, Government to Person payment (G2P), Rupay,
Aadhaar Card linkage with Bank Accounts, UPI, Demonetisation & GST, development in the
policy and regulation framework etc. and also about introduction of Payments Banks and
Microfinance and Small Finance Banks, Fintechs, expansion of smartphones and internet
services throughout the country etc.
It also talks about the challenges faced by rural population such as trust factor, illiteracy and
understanding, overcoming status quo bias and other psychological factors.
In the end of the paper, it is discussed about the recommendation for the Government of India
and Private Sector, this section highlights significant findings from our macro- and micro-
level study and offers recommendations for how the government, corporate sector, and
development sector may respond over the next five years to encourage innovation and growth
in rural and urban India's digital financial inclusions as follows:
For Government of India:
• Clarify the role of Aadhaar in the account opening process.
• Incorporate a more gender-focused approach into the next round of financial inclusion
programmes.
• Continue to build a common innovation infrastructure.
• Ensure the safety of digital customers.
For Private Sector:
• Apps that are easier to use, better product design, and a focus on the user experience.
• Increased savings and wealth management product innovation, with less emphasis on
credit.
• The growth of the youth market.
• More product creation and innovation at the local level
And finally, this paper talks about the barriers to adoption of Digital Banking such as
application and infrastructure design, scarcity of human capital, inertia in behaviour,
readiness of Banking Industry and motivational support and need for financial literacy among
the people.

4. DIGITALIZATION – DAWN OF A NEW ERA IN BANKING

(Mrs. Namrata Kishnani Asst Prof, Department of Management, Bhopal School of
Social Sciences, Bhopal)

This study summarises the rise of IT and associated services in the previous decade
has been exceptional in the history of the Indian economy, resulting in a slew of
financial system changes. Some of the most significant developments in the last few
years have been the proliferation of smart phones and the penetration of internet / Wi-
Fi among Indians. The country's present developments are a reflection of the Internet
of Things' ability to energise economies. Customers' expectations of smart solutions
grew as they gained access to global knowledge via the internet. A comparable

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demand to reduce the complexity and inefficiencies in the current financial system, as
well as progressive reforms to bring about incumbent improvements, gave private
players a foothold. Following the lead of other nations, economic authorities have
begun to see a cashless economy as a two-edged weapon: financial inclusion and the
regulation of loopholes (tax evasion, black money, aid not reaching the appropriate
person, and so on). This may be accomplished by incorporating technology and
consumer preferences into the banking system, which is referred to as Digital
Banking.

It mentions how the Morr Committee's suggestions for Financial Inclusion resulted in
a slew of revolutionary changes in Indian Banking.

This paper also talks about the role of RBI as how RBI advanced to offer 24*7
Immediate Payment Service (IMPS), Aadhar based money transfers, RuPay Cards and
digital wallets for bill payments, recharges depositing through a bank account but
cannot be withdrawn under the umbrella of non-profit organisation National Payments
Corporation of India (NPCI). This has altered the economy's whole viewpoint, which
is now characterised by technology and a competitive mentality aimed at improving
consumer experience. (Shri G.Padmanabhan, RBI Executive Director, spoke on a
panel at the Joint European Central Bank Conference in Paris on October 21, 2013 -
"Retail Payments at a Crossroads: Economics, Strategies, and Future Policies").

The rising telecom and retail industries established the groundwork for payment
services by capitalising on the growing number of internet-enabled smart phone users
to improve the consumer experience.

This paper moves forward with the discussion regarding the initiatives taken by
Indian government and RBI for digitalization: Digital India, the rise of new payment
service providers, economic changes, and improved customer experience in global
markets are the four essential steps for modernising India.

Digital India: In this section it is explained how with over one billion mobile
subscribers and approximately 240 million smart phone users with access to 3G or 4G
services, India is quickly becoming a digital behemoth. The government's plan to
install a nationwide fibre optic cable to deliver broadband internet access to almost
250000 gramme panchayats is expected to boost internet usage even further. It based
technical innovations in the banking industry, such as e signatures and e-lockers, on
shifting demographic and structural variables. The banking and payment business has
begun to make strides forward by replacing conventional techniques with more
advanced electronic ones.

Economic Reforms: It has been acknowledged by the Reserve Bank of India as one of
the safest and quickest methods of financial inclusion. The purpose of enacting the
Payment and Settlement Act of 2007 was to shift customer behaviour and create a
cashless ecosystem. It has changed numerous legal directions, such as not requiring
KYC for prepaid instrument transactions, connecting Aadhar to bank accounts, and

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 exempting minor transactions from two-factor authentication. a unified payment
interface that will bring together instant payment services, automated clearing houses,
RuPay cards, and other services into a single interface.

Emergence of New Payment Service providers: With the advent of the new digital era
in the twenty-first century, the payment industry has seen an influx of many
unexpected business concepts to boost value proposition for clients. Customers' tastes
were catered to by online platforms such as PayTM, Ola, Make My Trip, and Yatra,
which provided constant help (before and post purchase) and increased pocket share
and loyalty through the revolutionary medium of Digital Wallets.

Enhanced customer experience in Global Markets: Customers' horizons have been

broadened by the value addition in services provided by powerful non-banking
businesses. To bring about the required improvements, the worldwide revolutions and
norms were reproduced in the economy.

Authors’ research's goal was to investigate India's economic market in terms of

digitization and structural changes. The researcher intended to look at the
digitalization strategies and technologies used by banks and non-banking entities, as
well as the challenges they encounter. It also aimed to increase client comprehension
(or awareness) of the word "digitalization" in the banking industry.

The study was a descriptive one, with secondary data gathered from numerous
publications and papers available on the internet. It also flipped through pages of RBI
notices, press releases, and studies to reflect the regulatory reforms already
implemented and the ambition for digitization in the economy.

5. A Study on Contemporary Challenges and Opportunities of Retail Banking in

India.
(Dr. B. Vijayalakshmi, Professor, Department of Business Management, Sri
Padmavati Mahila Visvavidyalayam, Tirupathi, AP., India and M. Sailaja, Research
Scholar, Sri Padmavati Mahila Visvavidyalayam, Tirupathi, AP., India)

This section of study talks about how the financial industry in India is undergoing a
transformation. Using diverse channels and technology, anytime, everywhere banking
will facilitate a multi-fold increase in reach in rural and distant regions. When
combined with the rise of a new class of banks—small and micro banks—one of the
most significant effects of technology adoption will be to quickly accelerate financial
inclusion by lowering the cost of last-mile access and increasing banking's reach to
the unbanked. The banking business is being reshaped by powerful forces.

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Expectations from customers, technical capabilities, legal needs, demography, and
economics are all driving change. The banking and financial industry in India is
rapidly growing. The Indian banking industry is presently valued at Rs. 81 trillion
(US$ 1.31 trillion), and banks are increasingly employing cutting-edge technology
such as the internet and mobile devices to conduct transactions and connect with the
general public. From a global viewpoint, it has the potential to become the world's
fifth largest financial industry by 2020, and the third largest by 2025. The current
research focuses on the current problems and possibilities in India's retail banking
market.

This paper presents a graphical representation of the positioning of mass retail

banking vis-à-vis other segments of banking as follows:

It discusses evolution of Retail Banking with technology advancements, Banking has

evolved through three main stages in developed economies throughout the years.
These three phases roughly correspond to the amount of real-economy development
in the individual jurisdictions.

Initial Phase: During this period, banks were largely focused on providing
fundamental intermediation services, such as providing savings and loans for
productive purposes, as well as facilitating payment services, such as remittances.

Intermediate Phase: In addition to delivering the services supplied in the early phase,
banks began to lend for consumer spending. Banks have also begun to offer various
non-banking services, such as insurance. The demand for such services is largely
driven by the economy's transition from an investment (production) to a consumption-
driven growth phase. Retail banking becomes important at this point in the economy's
and society's growth.

Advanced Phase: In addition to the services provided in the intermediate phase, banks
have begun to provide high-end savings and investment products, wealth management
products, and structured products to both people and businesses. To put it another
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 way, during this phase, the financial system begins to fund speculative activity in
addition to production and consumption. At this point, private banking, a more
advanced variant of retail banking for 'classes,' becomes significant.

The aim of this paper was to illustrate how the banking landscape is changing, as well as to
examine the prospects and problems of retail banking in India as it relates to technology.
This report was based on secondary data on the retail banking sector, with a focus on the
Indian market. Annual reports, numerous books, journals, and magazines were examined,
multiple reports on this topic were studied, and internet searching was done to finish this.
According to the paper following are the challenges faced by Retail banking due to
technological advancement:
Technological advancement brings both benefits and drawbacks. Demographic shifts will
open up new business possibilities and necessitate innovation to generate new products and
services. Over the next five years, innovation will be the single most significant driver
generating sustained top- and bottom-line growth in banking.
Retail banking has the most opportunities to differentiate themselves from their competition
through digital innovation, mobile banking, and technical innovation. The growth of internet-
based banking, particularly product advertising and sale, provides a significant potential,
particularly for challenger banks with more flexibility.
The continual development towards direct models and channels, mostly digital channels, is
one of the most important drivers and difficulties in retail banking throughout the world. The
rise of direct and digital channels in retail banking, with mobile playing an increasingly
crucial role, is clearly not a stand-alone phenomenon.
The financial services industry is undergoing dramatic changes as a result of changing
customer behaviour, rising expectations, channel proliferation, disruption, innovative use and
adoption of new technologies, and the digitization of business and society in general,
according to the conclusion of this paper. Cost-cutting, increased top-line income, and risk
mitigation are still the core drivers in retail banking. Regardless of age, income, location of
residence, or bank, 90 percent of consumers choose online banking services.

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RESEARCH METHODOLOGY:

• In the course of project, descriptive & in-depth study of various research papers and
articles was done.
• Data has been derived from both Primary and Secondary sources.
• Primary data was obtained through a questionnaire including psychographic questions
from the Customers.
• Sample size taken – 75
• Secondary data was obtained from various Research Papers, Literature Reviews and
articles.
• Technique used to analyze Primary Data- Graphs & Charts.

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SUMMARY OF THE SURVEY:

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FINDINGS:

• From the above fig., we can interpret that nearly 11% of respondents are still not
availing Digital Banking facilities and the major reason for the same can be observed
to be lack of assistance, followed by lack of awareness and lack of internet access.
• 67% of Digital Banking users are found to be Regularly availing the facility & 21.9%
0f them using it occasionally.
• 83% of respondents prefer UPI platforms over other Digital Banking platforms
followed by Credit/Debit Cards.
• Net Banking is the least preferred facility among others.
• Convenience is the major reason followed by time saving factor, safety & security
contributing to uses of Digital Banking.
• 65% of respondents find that better Ease of Service, followed of 49% of them in favor
of Reward & 31% in the favor of better Complaint Resolution to be as contributing
factors for encouragement to do more Digital Banking.
• 46% of respondents have been found to be satisfied by their experience with Digital
Banking facilities and only 6.8% of respondents to be dissatisfied with the facilities.

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RECOMMENDATIONS:

• Financial and Digital literacy is required to be incorporated among the rural

population for better penetration of Digital Banking facilities.
• There is a need for better & faster complaint resolution in case of misplaced online
transactions and frauds.
• Usability of Net Banking needs to be reconsidered by the Banks as it is still the least
preferred Digital Banking facility due its nature of complexity & availability of other
simpler options.
• Status quo mindset and other psychological reasons that contribute to reduced usage
of digital platforms, particularly among rural populations, must be addressed and
overcome.
• Identity theft, loss of private information, and abuse of sensitive data are all serious
issues that require security and safety while dealing over the internet.
• Adequate implementation of norms in the field of Digital Banking is still the need of
the hour.

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CONCLUSION:

• Regardless of age, income, location of residence, or bank, over 90% of consumers

choose online banking services.

• With shrinking deposit margins, more competition, and a changing customer attitude,
digitization is no longer an option for businesses and banks alike, but rather a
requirement.

• New players, such as fintech start-ups, have a lot to offer a digitalized customer, and
both banks and fintech may create a win-win scenario by partnering rather than
competing.
• As per the opinion of 70% of the people, convenience is outmost priority, for 60% of
respondents it is security and followed by discounts and freebies (25%). As a result, it
emphasizes increased regulatory assistance as well as freebies such as discounts and
paybacks in order to attract more clients to the system.

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LIMITATIONS OF STUDY:

• There was no physical interaction with the banks & customers due to widespread
lockdown restrictions.
• The survey was restricted to online respondents through social media and personal
contacts.
• Sample size of survey was small hence, actual result may vary once done on large
scale.

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REFERENCES

Haralayya, Bhadrappa. "How Digital Banking has Brought Innovative Products and Services
to India." Journal of Advanced Research in Quality Control and Management 6.1 (2021): 16-
18.
Vijayalakshmi, B., and M. Sailaja. "A Study on Contemporary Challenges and Opportunities
of Retail Banking in India." Global Journal of Finance and Management 8.2 (2016): 131-
141.
Sardana, Varda, and Shubham Singhania. "Digital technology in the realm of banking: A
review of literature." International Journal of Research in Finance and Management 1.2
(2018): 28-32.
Kandpal, Vinay, and Rajat Mehrotra. "Financial inclusion: The role of Fintech and digital
financial services in India." Indian Journal of Economics & Business 19.1 (2019): 85-93.
Kishnani, Mrs Namrata. "Digitalization–Dawn of a new era in banking." Jagran Lakecity
University, Mugaliyachap, Bhopal, MP India (2017): 1.
https://www.fhi360.org/sites/default/files/media/documents/resource-mstar-india-digital-
financial-inclusion-report.pdf

QUESTIONNAIRE

https://docs.google.com/forms/d/1aLaaQN2je_bPcjvUtQi38qDprnvWvujva91ifswbasc/edit

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