A SYNOPSIS ON

“DIGITAL BANKING”
AT
“ICICI BANK LIMITED”
BY
ASIYA SULTANA
(HALL TICKET NO: 2129-21-672-086)
Synopsis for project to be submitted for the award
of the degree of
MASTER OF BUSINESS ADMINISTRATION
OSMANIA UNIVERSITY
2021-2023

AURORA’PG COLLEGE, NAMPALLY

CHAPTER PLAN
CHAPTER-1
INTRODUCTION
SCOPE OF THE STUDY
OBJECTIVES OF THE STUDY
METHODOLOGY OF THE STUDY
LIMITATIONS OF THE STUDY
CHAPTER-2
REVIEW OF LITERATURE
CHAPTER-3
INDUSTRY PROFILE
COMPANY PROFILE
CHAPTER-4
DATA ANALYSIS AND INTERPRETATION
CHAPTER-5
SUGGESTION
FINDINGS & CONCLUSION
BIBLIOGRAPHY
 INTRODUCTION
Digital Banking means automating conventional banking through digital platforms like the
web and internet-enabled systems like mobile devices. With Digital Banking, you can access
almost all financial services at the tip of your fingers, all year round, irrespective of national
or bank holidays. It entirely eliminates the need for you to visit the bank..

Digital Banking – Features and Benefits

Compared to traditional banking, which requires you to visit the bank for every big and small
transaction, you can conduct digital banking services from any corner of the world. Here are
some of its best features and benefits.

 You may access your bank account digitally via internet banking or eponymous
mobile apps that you download on your smartphone from the application store.

 You can now complete the account opening and the subsequent KYC process digitally
via a video call. The Reserve Bank of India has permitted banks to conduct a Video
KYC to open a bank account on par with a full KYC bank account.

 Digital Banking comes with a host of online fund transfer provisions. You can
transfer any sum of money to any bank account in India via NEFT, IMPS, RTGS or
UPI or make overseas wire transfers.

 You can also consolidate all your utility bills and set up billers instead of bothering
with physical bill payments by logging in on the internet or mobile banking platforms
of your bank to complete the payments.

 You can recharge your mobile and DTH subscriptions online and enable auto-
payment facilities so you do not miss any payment.

 You can easily open fixed and recurring deposits, buy insurance, make investments or
apply for loans on digital banking platforms.

 You can check your account balances, get mini statements and pay off outstanding
credit card dues without having to send a cheque to the creditor.
  You can pay for expenses on online shopping websites via net banking or by entering
your debit card details like card number, expiration date, and CVV and authenticating
payments via OTP.

 You get access to banking services 24x7, closely monitor your transactions and sign
up for SMS alerts and notifications after every transaction by registering your mobile
number with the bank.

Types of Digital banking payments

 Banking cards: Cards are not only used to withdraw cash but also enable other forms of
digital payment. Cards can be used for online transactions and on Point of Sale (PoS)
machines. Prepaid cards can also be issued by the banks; such cards are not linked to the bank
account but function through the money loaded onto them.
 Unstructured Supplementary Service Data (USSD): By dialing the number *99#, mobile
transactions can be carried out without an application and internet connection. The number
holds nationwide applicability and promotes greater financial inclusion on the ground level.
The service lets the caller surf through an interactive voice menu and chooses the desired
option on the mobile screen. The only catch is the mobile number of the caller should be the
one linked to the particular bank account.
 Aadhaar Enabled Payment System (AEPS): AEPS lets the client initiate banking instructions
following the successful verification of the Aadhaar number.
 Unified Payments Interface (UPI): UPI is the most trending form of digital banking
presently. UPI makes use of a virtual payment address (VPA) so the user can transfer funds
without entering bank account details or IFSC code. Another striking feature of UPI is that
the applications let you consolidate all your bank accounts in one place. Funds can be
transferred and received around the clock with no time restrictions. UPI-based apps in India
are BHIM, PhonePe, and Google Pay. BHIM application, in addition to the transfer of funds
to other virtual addresses and bank accounts, also lets the user transfer funds to another
Aadhaar number. More importantly, UPI-based payments are free of cost.
 Mobile Wallets: Mobile wallets have eliminated the need to remember four-digit card pins
or enter CVV details or carry loose cash. Mobile wallets store bank account and card
credentials to easily add funds to the wallet and make payments to other merchants with
similar applications. Popular mobile wallets are Paytm, Freecharge, Mobiwik, etc. Mobile
wallets, however, generally have a limit on how much can be deposited in the wallet. A small
 fee may also be charged on depositing the funds from the mobile wallet back into the bank
account.
 PoS terminals: Typically, PoS machines are portable devices that read a card to authorize
and complete the payment. Supermarkets and gas stations opt for this method of payment.
However, with digital banking thriving, PoS terminals have evolved into more than physical
PoS devices. Virtual and Mobile PoS terminals have surfaced, which makes use of the mobile
phone’s NFC feature and web-based applications to initiate payment.
 Internet and Mobile Banking: Commonly known as e-banking, internet banking refers to
obtaining certain banking services over the internet, such as fund transfers, and opening and
closing accounts. Internet banking is a subset of digital banking because internet banking is
only limited to core functions. Similarly, mobile banking is availing banking services through
mobile-based applications.
Difference between Digital Banking and Online banking
More often than not, the terms of digital banking and online banking are used
interchangeably. However, there exists a fine line between the meaning of the terms.

Online Banking deals with everyday essentials, such as checking balances, reviewing
transactions, and transferring funds. This is the core operation of the bank, which is shifted to
online presence with the help of online banking. Online banking is a means to an end.

However, digital banking is an end in itself. Digital banking is aimed at digitizing all the
operations of the bank, core, or non-core. Basically, starting from onboarding of clients to
servicing of the accounts, to closure of accounts is digital banking’s primary objective.
Digital banking’s agenda is to make the physical presence of a bank’s branch redundant for
its customers so that the customers can handle all banking operations from their place of
convenience. Therefore, online banking is a subset of the master set, digital banking.

Disadvantages of Digital Banking?

Is digital banking safe? Contrary to popular opinion that digital banking poses security
concerns, most readers will be surprised to know that digital banking is safer as compared to
traditional branch banking. While digital banking forums are prone to vulnerabilities and
hacks such as phishing, pharming, identity theft, and keylogging, banking institutions are
investing a lot in their security systems. Security is at the forefront when considering a
 service such as digital banking. If security were to be compromised, banks would lose a
crucial selling factor, and more so than risking user data and resources, banking institutions
cannot afford negative publicity.
In a hypothetical scenario where banks do, in fact, lose your money to a hacker, you will be
entitled to receiving the due amount of your bank balance for the sole reason that your money
is protected. Therefore, to avoid massive public liability and bad publicity, banks are bound
to invest heavily in reinforcing the security of digital banking platforms.
However, a digital banking user must do their part by following certain practices that act as a
safeguard:
 Follow prompts to change your passwords regularly and keep your passwords confidential.
 Avoid using public networks and devices to access digital banking – if you must use a public
device, remember to clear cache and browsing data. It is good practice to not allow the
browser to save your username and passwords for bank details.

 Banks never ask for confidential information so refrain from sharing it with anyone who asks
for it.

 Anti-virus protected systems offer another layer of security to your systems.

 The URL address MUST begin with ‘https’, or a padlock must appear next to the website
address. The padlock is a security certificate. The address bar turns green when the site is
secured with an SSL certificated, which is an additional validation for the security of the
website. Therefore, use the bank’s URL and refrain from clicking on other links. Banks
generally use minimum SSL/128-bit encryption.

 Lastly, disconnect from the internet when the system is left idle.
NATURE OF STUDY
In India, digital banking started taking shape in the late 1990s with ICICI Bank being the first
one to bring the service to their retail clients. Digital banking became mainstream only in
1999 as internet charges were reduced and there was increased awareness and trust with
respect to the internet. It was only after the internet further developed and the costs came
down, banks started serving a broader basket of products online.
STATEMENT OF THE PROBLEM
Digital banking provides many advantages to banks such as improving service quality,
improving customer retention, extending their customers reach, enhancing operational
efficiency, requires little or no infrastructure and reducing costs, and it also provides many
advantages to customers such as instant connectivity, reducing the risk of carrying cash,
access to banking services anytime and anywhere without temporal and spatial constraints,
doing banking operations in an appropriate manner remotely.
NEED OF THE STUDY
Now every bank wants to attract the customers and for this purpose the offers the latest
facilities so i seems that no any bank will survive in the market if he fails to provide up date
facilitiesto know the customers perception towards the Digital banking.
SCOPE OF THE STUDY
Today the customer demands the services of banks 24 hours where he lives even he is in the
aeroplane.Now in this modern age the entire banking structure has been changed due to
widespread internet technology. Now all the business like commerce, trade, import, export,
purchase and sale of goods is relying upon electronic banking. By using the advance
electronic technology the banking services are fast and economical.There is a saving time an
saving of money in the use of Digital banking. If any country wants to work in the world
market, it will have to improve the banking services at international level because old
traditional banking is not acceptable in the changing global economy.The Digital banking
facility has been provided by the large number of commercial banks. On other hand credit
card facility is also available in the various commercial banks.
OBJECTIVES OF THE STUDY
 To Study The Digital Services at the ICICI BANK LIMITED.
 To Find The Customer Satisfaction Relating To Digital banking Service at ICICI
BANK LIMITED.
 To Study The Awarness Of Internet Banking Amoung The Customers Of ICICI
BANK LIMITED.
 To Understand The Problems Encounterd By Customers While Using Digital banking
(Atm, Phine Banking,Etc) At ICICI BANK LIMITED.
RESEARCH METHODOLOGY
Primary Data:
In this research with a sample size of nearly 50 customer’s data will be available in form of
questionnaire collected in terms of different questions influencing the use of internet banking.
Internet banking is considered as dependent on awareness among customers which will be
studied with help of different independent variable. Only the customers of ICICI BANK
LIMITED are taken as samples for study.
Secondary data:
Collection of information from different kind of books the data of the company what they
maintained. Once the findings are finalized by a research, suggestions should be made for the
betterment of enterprise.
The data collected from questionnaire will be tabulated and analyzed so that
The result can be presented as simple as possible. There are a number of ways like
Tools and techniques of analysis:

The data so collected will be analyzed through the application of statistical techniques, such
as bar graphs and pie charts.

o Pie-chart
o Graphs
HYPOTHESIS:
Based on the Research Questions above, we formulate the hypothesis as follows:
H1. KNOWLEDGE barrier to Digital banking adoption differs significantly between
postponers, opponents and rejectors.
H2. The HUMANRISK barrier to Digital banking adoption differs significantly between
postponers, opponents and rejectors.
H3. The LACKTRIAL barrier to Digital banking adoption differs significantly between
postponers, opponents and rejectors.
LIMITATION OF THE STUDY
 Perfect Functioning of online services at the ICICI BANK LIMITED.
 Customers satisfaction relating to Digital banking services at ICICI BANK
LIMITED.
 Bringing awareness of Internet banking among the customers of ICICI BANK
LIMITED.
 Clearing problems encountered by customers while using Digital banking services
(ATM, phone banking …. Etc) at ICICI BANK LIMITED.
 THEORETICAL REVIEW

Digital banking is part of the broader context for the move to online banking, where banking
services are delivered over the internet. The shift from traditional to digital banking has been
gradual and remains ongoing, and is constituted by differing degrees of banking service
digitization. Digital banking involves high levels of process automation and web-based
services and may include APIs enabling cross-institutional service composition to deliver
banking products and provide transactions. It provides the ability for users to access financial
data through desktop, mobile and ATM services.

A digital bank represents a virtual process that includes online banking and beyond. As an
end-to-end platform, digital banking must encompass the front end that consumers see, back
end that bankers see through their servers and admin control panels and the middleware that
connects these nodes. Ultimately, a digital bank should facilitate all functional levels of
banking on all service delivery platforms. In other words, it should have all the same
functions as a head office, branch office, online service, bank cards, ATM and point-of-sale
(POS) machines.

The reason digital banking is more than just a mobile or online platform is that it includes
middleware solutions. Middleware is software that bridges operating systems or databases
with other applications. Financial industry departments such as risk management, product
development and marketing must also be included in the middle and back end to truly be
considered a complete digital bank. Financial institutions must be at the forefront of the latest
technology to ensure security and compliance with government regulations.

History of Digital Banking[edit]

The earliest forms of digital banking trace back to the advent of ATMs and cards launched in
the 1960s. As the internet emerged in the 1980s with early broadband, digital networks began
to connect retailers with suppliers and consumers to develop needs for early online catalogues
and inventory software systems.[2]

By the 1990s the Internet became widely available and online banking started becoming the
norm. The improvement of broadband and ecommerce systems in the early 2000s led to what
resembled the modern digital banking world today. The proliferation of smartphones through
the next decade opened the door for transactions on the go beyond ATM machines. Over 60%
of consumers now use their smartphones as the preferred method for digital banking.[3]
The challenge for banks is now to facilitate demands that connect vendors with money
through channels determined by the consumer. This dynamic shapes the basis of customer
satisfaction, which can be nurtured with Customer Relationship Management (CRM)
software. Therefore, CRM must be integrated into a digital banking system, since it provides
means for banks to directly communicate with their customers.

There is a demand for end-to-end consistency and for services, optimized

on convenience and user experience. The market provides cross platform front ends, enabling
purchase decisions based on available technology such as mobile devices, with a desktop or
Smart TV at home. In order for banks to meet consumer demands, they need to keep focusing
on improving digital technology that provides agility, scalability and efficiency.
2.2ARTICLES

ARTICLE:1

TITLE: Digital banking services

AUTHOR: Raghupathy

YEAR: 2012

ABSTRACT:

It says the system of banking sector is "if the objectives are not fully achieved, the fault

does not lie entirely with the bankers. The fault lies in our, not being able to integrate all

powerful instruments of development into an effective system".

ARTICLE:2

TITLE: Digital banking services

AUTHOR: Shah

YEAR: 2013

ABSTRACT:

It views regarding bank profitability and productivity. He has expressed concern about

increased expenses and overheads. Slow growth in productivity and efficiency is due to

wasteful work of the banks. He concludes that the higher profitability can be result from

increased spread and innovations have a limited role. He favored written job descriptions for

improvement of staff productivity. He also emphasized reduction of costs, creation of a team

spirit improvement in the management for improving bank profitability and productivity
ARTICLE:3

TITLE: Digital banking services

AUTHOR: SadafFirdous

YEAR: 2014

ABSTRACT:

To add the existing knowledge in the electronic banking field of study. To help the banks

and policy makers have a better understanding of the internet banking dimensions and

their contribution towards customer satisfaction.

ARTICLE:4

TITLE: Digital banking services

AUTHOR: Sharma

YEAR: 2015

ABSTRACT:

"The expansion of banking facilities was uneven and lopsided and banks were

concentrating their operations in metropolitan cities and towns. A fairly large number of

rural and semi urban centre with reasonable potentialities of growth failed to attract the

attention of commercial banks. As far as the deposit mobilization in the rural areas is

concerned, much remains to be done. "This gives emphasis on the rural and semi urban

growth of bank..
ARTICLE:5

TITLE: Digital banking services

AUTHOR: V.N. Saxena

YEAR: 2016

ABSTRACT:

After analyzing "Improvement in the systems and procedures of inspection of stocks,

maintenance of stock register is required. Reforms should be initiated in extension of

sponsorship schemes, recovery, and consultancy". This can be supporting tools for banks.

ARTICLE:6

TITLE: Digital banking services

AUTHOR: Dr.Saroj K. Datta

YEAR: 2017

ABSTRACT:

Internet banking is a form of self service technology. The number of internet users have

increased dramatically, but most of them are reluctant to provide sensitive personal

information to websites because they do not trust ecommerce security.

ARTICLE:7

TITLE: Digital banking services

AUTHOR: Dr.AbhineetAnand

YEAR: 2018

ABSTRACT:

Internet banking has attracted the attention of banks, securities, insurance companies in

developing nations since the late 1990s and the rapid and significant growth of Digital

banking has increased.

ARTICLE:8

TITLE: Digital banking services

AUTHOR: Mohammad Ali SiahsaraniKojuri

YEAR: 2018

ABSTRACT:

This study examines the relationship between perceived security and acceptance of

Digital banking with the mediating effect of perceived risk and trust in internet banking in

Iranian customers. Researchers used structural equations model to examine their

hypotheses and conceptual model.

ARTICLE:9

TITLE: Digital banking services

AUTHOR: Sanjitkumarroy

YEAR: 2017

ABSTRACT:

The emergence of internet banking has transformed the banking systems across the globe.

As a channel to market, internet banking allows geographical constraints to overcome by

offering various products and services at lower customer cost.

ARTICLE:10

TITLE: Digital banking services

AUTHOR: Irene Govender

YEAR: 2016

ABSTRACT:

The study explores the influencing the adoption of internet banking. Based on the

literature end the unified theory of acceptance and use of technology (UTAUT) model,

six constructs which influence accademics usage end behavioural intention to adopt

internet banking were identified : Performance expectancy , effort expectancy and

facilitating conditions social influence, perceived risk and trust.

 INDUSTRY PROFILE

A bank is a financial institution that accepts deposits and channels those deposits into

lending activities. Banks primarily provide financial services to customers while enriching

investors. Government restrictions on financial activities by banks vary over time and

location. Banks are important players in financial markets and offer services such as

investment funds and loans. In some countries such as Germany, banks have historically

owned major stakes in industrial corporations while in other countries such as the United

States banks are prohibited from owning non-financial companies. In Japan, banks are

usually the nexus of a cross-shareholding entity known as the keiretsu. In France,

bancassurance is prevalent, as most banks offer insurance services (and now real estate

services) to their clients.

Introduction

India’s banking sector is constantly growing. Since the turn of the century, there has been a

noticeable upsurge in transactions through ATMs, and also internet and mobile banking.

Following the passing of the Banking Laws (Amendment) Bill by the Indian Parliament in

2018, the landscape of the banking industry began to change. The bill allows the Reserve

Bank of India (RBI) to make final guidelines on issuing new licenses, which could lead to a

bigger number of banks in the country. Some banks have already received licenses from the

government, and the RBI's new norms will provide incentives to banks to spot bad loans and

take requisite action to keep rogue borrowers in check.

Over the next decade, the banking sector is projected to create up to two million new jobs,

driven by the efforts of the RBI and the Government of India to integrate financial services

into rural areas. Also, the traditional way of operations will slowly give way to modern

technology.
3.2 COMPANY PROFILE

Digital banking is part of the broader context for the move to online banking, where banking
services are delivered over the internet. The shift from traditional to digital banking has been
gradual and remains ongoing, and is constituted by differing degrees of banking service
digitization. Digital banking involves high levels of process automation and web-based
services and may include APIs enabling cross-institutional service composition to deliver
banking products and provide transactions. It provides the ability for users to access financial
data through desktop, mobile and ATM services.

A digital bank represents a virtual process that includes online banking and beyond. As an
end-to-end platform, digital banking must encompass the front end that consumers see, back
end that bankers see through their servers and admin control panels and the middleware that
connects these nodes. Ultimately, a digital bank should facilitate all functional levels of
banking on all service delivery platforms. In other words, it should have all the same
functions as a head office, branch office, online service, bank cards, ATM and point-of-sale
(POS) machines.

The reason digital banking is more than just a mobile or online platform is that it includes
middleware solutions. Middleware is software that bridges operating systems or databases
with other applications. Financial industry departments such as risk management, product
development and marketing must also be included in the middle and back end to truly be
considered a complete digital bank. Financial institutions must be at the forefront of the latest
technology to ensure security and compliance with government regulations.

History of Digital Banking[edit]

The earliest forms of digital banking trace back to the advent of ATMs and cards launched in
the 1960s. As the internet emerged in the 1980s with early broadband, digital networks began
to connect retailers with suppliers and consumers to develop needs for early online catalogues
and inventory software systems.[2]

By the 1990s the Internet became widely available and online banking started becoming the
norm. The improvement of broadband and ecommerce systems in the early 2000s led to what
resembled the modern digital banking world today. The proliferation of smartphones through
the next decade opened the door for transactions on the go beyond ATM machines. Over 60%
of consumers now use their smartphones as the preferred method for digital banking.[3]
The challenge for banks is now to facilitate demands that connect vendors with money
through channels determined by the consumer. This dynamic shapes the basis of customer
satisfaction, which can be nurtured with Customer Relationship Management (CRM)
software. Therefore, CRM must be integrated into a digital banking system, since it provides
means for banks to directly communicate with their customers.

There is a demand for end-to-end consistency and for services, optimized

on convenience and user experience. The market provides cross platform front ends, enabling
purchase decisions based on available technology such as mobile devices, with a desktop or
Smart TV at home. In order for banks to meet consumer demands, they need to keep focusing
on improving digital technology that provides agility, scalability and efficiency.