final year project 2.0_075746-1

STUDY ON IMPACT OF E-BANKING ON TRADITIONAL BANKING SERVICES
Project report
On
“Impact of E-Banking on Traditional Banking Services”
Submitted by
Divyesh Sureshbhai Davariya
SEAT NO:618047
( PRN No- 2020033800095896)
TYBBA
Under the Guidance of
Dr. Neha pandya
In Partial Fulfillment of the Requirement of the Subject in SSBBA-III,
Submitted to,
BBA Programme,
Faculty of Commerce,
The Maharaja Sayajirao University of Baroda, Vadodara
Academic Year- (2022-23)

BBA MSUY, ACADEMIC YEAR 2022-23 Page 1

Declaration
I, Divyesh Sureshbhai Davariya ( PRN no – 2020033800095896 ), hereby declare that I am

undertaking a project on the topic “Impact of E-banking on Traditional Banking Services” This
project is being submitted in partial fulfillment of the requirements for BBA.
The purpose of this project is to explore and analyze the effects of the emergence and adoption of
electronic banking on traditional banking services. The advent of digital technology has
revolutionized the banking industry, transforming the way banks operate and provide services to
their customers. The aim of this project is to critically examine the impact of e-banking on
traditional banking, considering various factors such as customer behavior, banking regulations,
and technological advancements.
I will conduct a comprehensive literature review to understand the existing research and studies
related to the impact of e-banking on traditional banking. The primary research method used in
this project will be surveying customers of both traditional and e-banking services to gather their
opinions and experiences.
I acknowledge that the data collected for this project will be analyzed and presented in a manner
that ensures the anonymity and confidentiality of the participants. I also recognize the importance
of acknowledging and citing all sources used in this project to ensure academic integrity.
I am committed to completing this project to the best of my ability and submitting it within the
prescribed deadline.
Date: 18-04-202

Acknowledgement
First and foremost, I would like to thank my supervisor Dr. Neha Pandya for her valuable and
meticulous guidance, keen interest and constructive criticism throughout the course of this
research work. Despite her busy schedule, she was always ready with positive attitude to
resolve all types of problems that I faced during my research work.
I am grateful to all the faculty members of the BBA Programme, Faculty of Commerce, The
Maharaja Sayajirao University of Baroda who always helped me whenever I needed.
In addition, I would like to thank my family and friends for their unwavering supportand
encouragement throughout the research process. Your encouragement andmotivation kept me
going even when the going got tough.
Lastly, I would like to acknowledge the invaluable contribution of the previous researchers in
this field whose works and studies helped me to broaden my understanding of the topic.
Thank you all once again for your support and contributions

Index
Chapter no. Particular Page no.

Certificate 2
Declaration 3
Acknowledgement 4
Index 5
1 Introduction 7
1.1 introduction to the topic 7
1.2 Industry scenario 9
1.3contemporary issues 10
1.4 Other related information 11
1.5 PESTLE Analysis 12
2 Revolution of banking 15
2.1 Introduction of e-banking 15
2.2Importance of e-banking 17
2.3Limitation of e-banking 18
2.4Revolution of e-banking in 19
India
3 Review of literature 24
4 Research Methodology 25
4.1 Research problem 25
4.2 objectives of the study 26
4.3 Scope of the research 26
4.4Data collection ( Primary/ Secondary) 27
4.5 Limitations of the proposed research study 29

5 Data Analysis and Findings 30

5.1 – Data analysis 30
5.2 - Findings of the Research 40
6 Conclusion 41
7 Bibliography and References 42
8 Annexure 43

CHAPTER 1: INTRODUCTION
Introduction
Traditional banking services have been a cornerstone of the global financial system for centuries.
These services typically involve face-to-face interactions between customers and bank staff, such
as depositing and withdrawing funds, opening accounts, and applying for loans. However, with
the advent of digital technologies, the banking landscape has undergone significant changes.
Electronic banking or e-banking has emerged as a convenient and efficient alternative to traditional
banking services, enabling customers to access their accounts, make transactions, and manage their
finances online or through mobile applications.
According to a recent report by the World Bank, more than 1.7 billion people worldwide do not
have access to traditional banking services, which has fueled the growth of e-banking. In 2020,
global e-banking adoption reached 59%, up from 51% in 2018. The report also highlights that the
COVID-19 pandemic has accelerated the adoption of digital banking services, with many
customers turning to online and mobile banking to avoid physical contact.
In addition to the rise of e-banking, traditional banking services remain crucial in many regions,
particularly in emerging economies. For example, in Africa, only 20% of the population has access
to formal banking services, and the majority of financial transactions are conducted in cash.
However, as digital technologies become more accessible and affordable, the adoption of e-
banking is expected to grow rapidly in these regions.
Overall, traditional banking services and e-banking play complementary roles in the global
financial system. While traditional banking services offer a personal touch and are often
necessaryfor complex financial transactions, e-banking provides customers with the convenience
and flexibility of managing their finances anytime, anywhere. As such, the future of banking is
likely to be a hybrid of traditional and digital services, catering to the diverse needs and
preferences of customers worldwide.
Traditional banking services typically involve physical branches, where customers can interact

with bank staff face-to-face. These services may include opening and closing accounts, applying
for loans, or requesting other financial services. Banks may also offer additional services such as
investment advice, insurance, and wealth management.
In contrast, e-banking allows customers to access their accounts, manage their finances, and
perform transactions through digital channels, such as online or mobile banking. E-banking
services can include account management, fund transfers, bill payments, and investment services.
These services are typically available 24/7, providing customers with the flexibility to manage
their finances at any time and from anywhere with an internet connection. The growth of e-
banking has been fueled by the increasing adoption of smart phones and other mobile devices,
which has made it easier for customers to access banking services on the go. According to a
report by Statista, the number of mobile banking users worldwide is expected to reach 1.3 billion
by 2023, up from 1.2 billion in 2020.
Despite the growth of e-banking, traditional banking services remain important, especially for
customers who prefer face-to-face interactions or who require more complex financial services.
Additionally, traditional banking services play a critical role in providing access to financial
services for underserved populations, such as those in rural areas or developing countries.
In summary, both traditional banking services and e-banking play crucial roles in the global
financial system. While e-banking provides customers with convenience and flexibility, traditional
banking services offer a personal touch and are often necessary for more complex financial
transactions. As technology continues to evolve and become more accessible, we can expect to see
further growth and innovation in both traditional and digital banking services.

Industry Scenario
The banking industry is a vital component of any economy, playing a crucial role in providing
financial services to individuals, businesses, and governments. With the advent of technology and
the rise of fintech companies, the industry has become more competitive than ever before. Banks
are facing challenges in retaining customers, reducing costs, and complying with ever-changing
regulations. Additionally, the increasing popularity of online banking and mobile banking has led
to a decline in traditional brick-and-mortar branches. Banks are investing heavily in technology to
remain competitive and offer innovative products and services. However, with the rise of cyber
security threats and data breaches, the industry also faces significant risks in ensuring the
safety and security of customer information. Overall, the banking industry is continuously
evolving, and players in the industry must adapt to stay relevant and competitive in the market.
Specifically, the banking industry has undergone significant changes in recent years due to various
factors such as advancements in technology, changing customer preferences, and increased
competition. The emergence of fintech startups has disrupted the traditional banking landscape,
offering innovative solutions that cater to the needs of tech-savvy customers. This has forced banks
to re-evaluate their business models and invest in digital transformation to keep up with the
changing market dynamics.
Moreover, banks face several challenges in terms of regulatory compliance, such as Anti-Money
Laundering (AML) and Know Your Customer (KYC) regulations, which require them to verify
the identities of their customers and monitor their transactions. Failure to comply with these
regulations can result in hefty fines and reputational damage.
In addition to this, the banking industry faces constant pressure to reduce costs and increase
profitability. Banks are investing in technologies such as Artificial Intelligence (AI) and
automation to streamline their operations and reduce manual intervention, thereby cutting down
on costs. However, these technologies also pose risks in terms of data privacy and security, which
banks must address to maintain customer trust.
Overall, the banking industry is in a state of constant evolution and must keep up with the latest
trends and innovations to stay relevant and competitive. Banks must also ensure that they comply

with regulatory requirements and maintain the trust of their customers by providing safe and secure
banking service.
Contemporary issues
banking industry is facing several pressing issues in the present times. One of the primary
concerns for banks is to ensure that they stay relevant in a rapidly evolving technological
landscape. Fintech companies are disrupting traditional banking models by offering innovative
solutions that are more convenient, faster, and cheaper than traditional banking services. To
compete with these new players, banks must invest heavily in digital transformation to offer
customers seamless, personalized, and efficient banking experiences.
Another significant challenge for the banking industry is to maintain the trust of their customers.
Cyber security threats and data breaches pose significant risks to customer information, and
banks must ensure that they have robust security measures in place to prevent such incidents.
Moreover, with the increasing popularity of mobile banking and online banking, customers
expect a high level of convenience and flexibility in their banking services. Banks must,
therefore, invest in technologies that can offer secure and user-friendly digital banking
experiences. Regulatory compliance is another major issue faced by the banking industry. Banks
must comply with an array of regulations, including AML, KYC, and data protection regulations,
to ensure that their operations are legal and ethical. Non-compliance with these regulations can
result in hefty fines and legal penalties, damaging the bank’s reputation.
The banking industry is also facing pressure to reduce costs and increase profitability. The
COVID-19 pandemic has further amplified this pressure, with many banks experiencing declining
revenues and increasing loan defaults. Banks are, therefore, exploring various cost-cutting
measures such as reducing branch networks, downsizing staff, and investing in automation
technologies to remain competitive and profitable in the market.
In addition to the above-mentioned issues, the banking industry is also facing challenges related
to the changing demographic profile of its customers. With the rise of the millennial and Gen Z
population, banks must adapt to the changing preferences and behaviors of this segment.
Millennials and Gen Z customers expect a high level of personalization, transparency, and social
responsibility from their banks. They prefer digital banking channels, and banks must invest in

technologies that can provide personalized services and experiences to meet their expectations.
Furthermore, the banking industry is also witnessing increasing competition from non-banking
players, such as tech giants and e-commerce companies, who are entering the financial services
space. These players have access to vast amounts of customer data and are leveraging technology
to offer innovative financial products and services. To compete with these players, banks must
collaborate with them or offer complementary services to stay relevant in the market.
In summary, the banking industry is grappling with various contemporary challenges such as
technological disruption, cyber security threats ,regulatory compliance, changing customer
preferences, increasing competition, and cost pressures. Banks must adopt a customer-centric
approach and invest in digital transformation to meet these challenges effectively. They must also
build trust by ensuring data privacy and security, complying with regulatory requirements, and
promoting ethical practices.
Other related information
The banking industry is a crucial component of the global economy, providing essential financial
services to individuals, businesses, and governments. The industry encompasses a wide range of
activities, including deposit-taking, lending, investment banking, asset management, and
insurance.
The banking industry has undergone significant changes in recent years, driven by technological
advancements, regulatory reforms, and changing customer expectations. The rise of e-banking and
other digital technologies has transformed the way banks operate and interact with customers,
creating new opportunities and challenges.
At the same time, regulatory reforms have imposed stricter rules and requirements on banks, aimed
at promoting financial stability and protecting consumers. This has led to increased scrutiny of
banking activities, including lending practices, risk management, and compliance.
Despite these challenges, the banking industry remains an important driver of economic growth
and development. Banks play a critical role in facilitating economic activity, by providing credit
and liquidity to individuals and businesses, and by channeling savings and investments into

productive activities.
Moreover, banks have an important social function, by providing financial services to underserved
populations, such as those in rural areas or developing countries. This can help to promote financial
inclusion and reduce poverty and inequality.
Looking to the future, the banking industry is likely to continue to evolve and adapt to changing
market conditions and customer needs. The rise of fintech startups and other non-traditional
players in the financial services industry is likely to create new challenges and opportunities for
banks, while advances in artificial intelligence, block chain, and other technologies may further
transform the way banks operate.
In short, the banking industry plays a vital role in the global economy, providing essential financial
services and promoting economic growth and development. While the industry faces many
challenges and uncertainties, it also has significant opportunities for growth and innovation.
PESTLESIS
PESTLE analysis is a strategic planning tool used to evaluate the external factors that may impact
a business, industry or market. The acronym PESTLE stands for Political, Economic, Socio-
cultural, Technological, Legal and Environmental factors. By examining these external factors,
businesses can identify potential opportunities and threats and adjust their strategies accordingly.
PESTLE analysis is used to analyze the external macro-environmental factors affecting an industry
or business. The banking industry is subject to a range of external factors that can impact its
operations, growth, and profitability. Here is a PESTLE analysis of the banking industry:
 Political Factors:
Government policies and regulations can impact the banking industry. Banks need to comply with
government regulations, such as KYC (Know Your Customer), AML (Anti-Money Laundering),
and CFT (Combating the Financing of Terrorism) regulations.
Changes in government policies related to taxation, interest rates, and monetary policies can also
have an impact on the banking industry.
 Economic Factors:
The banking industry is heavily influenced by the economic environment, including factors such
as inflation, recession, and interest rates. Changes in interest rates can impact the cost of borrowing
and lending for banks, which can impact their profitability.
Changes in the economic environment can also impact the creditworthiness of borrowers, which
can affect the risk profile of banks.
 Socio-cultural Factors:
The banking industry is influenced by social and cultural factors, such as demographic changes,
lifestyle trends, and consumer preferences.
For example, changes in consumer preferences for digital banking services can influence the way
banks deliver their products and services.
 Technological Factors:
Technology is rapidly transforming the banking industry, with digital disruption and new
technologies such as artificial intelligence, block chain, and mobile banking transforming the
waybanks do business.
Banks need to keep up with these technological changes to remain competitive and meet the
changing needs of their customers.
 Legal Factors
Banks are subject to a range of legal regulations, including consumer protection laws, data privacy

laws, and anti-trust laws.
Changes in legal regulations can impact the way banks operate and the products and services they
offer.
 Environmental Factors:
Environmental factors, such as climate change and sustainability, are becoming increasingly
important for the banking industry.
Banks are being called upon to play a greater role in promoting sustainable development and
reducing their carbon footprint. This can impact their business operations and the products and
services they offer.
PESTLE analysis of the banking industry shows that it is subject to a range of external factors that
can impact its operations, growth, and profitability. Banks need to be aware of these factors and
adapt to changes in the external environment to remain competitive and meet the changing needs
of their customers.

CHAPTER 2 : REVOLUTION OF BANKING
Introduction
The revolution of e-banking has been a game-changer in the financial industry. It has transformed
the way people interact with their banks, manage their finances, and conduct transactions. E-
banking has also created new opportunities for financial institutions to offer more efficient and
cost-effective services to their customers. This article will explore the evolution of e-banking, its
impact on the financial industry, and its future prospects.
The early days of e-banking can be traced back to the 1980s when ATMs were first introduced.
These machines allowed customers to withdraw cash and check their account balances without
visiting a physical bank branch. This was a significant development in the banking industry as it
marked the beginning of automation and self-service.
In the 1990s, the internet began to gain popularity, and this led to the introduction of online
banking. The first online bank was Security First Network Bank, which was launched in 1995. The
bank allowed customers to access their accounts, transfer funds, pay bills, and apply for loans from
the comfort of their homes. This was a significant shift in the banking industry as it eliminated the
need for physical bank branches and enabled customers to conduct transactions at any time.
In the early 2000s, mobile phones began to gain popularity, and this led to the introduction of
mobile banking. The first mobile banking service was launched in 2001 by Japan’s DoCoMo. The
service allowed customers to check their account balances and transfer funds using their mobile
phones. This was a significant development in the banking industry as it made banking more
accessible to customers who did not have access to computers or physical bank branches.
The growth of e-banking has been fueled by advancements in technology and changes in consumer
behavior. According to a report by Statista, the number of mobile banking users worldwide is
expected to reach 1.8 billion by 2022, up from 0.8 billion in 2019. The report also states that the
number of online banking users is expected to reach 2.2 billion by 2022, up from 1.2 billion in
2016. These statistics highlight the growing popularity of e-banking and its increasing importance
in the financial industry.

E-banking has had a significant impact on the financial industry. It has enabled banks to offer more
efficient and cost-effective services to their customers. E-banking has also created new
opportunities for banks to expand their reach and attract new customers. For example, banks can
now offer services to customers who live in remote areas or who are unable to visit physical bank
branches.
E-banking has also transformed the way people manage their finances. It has made banking more
accessible and convenient, enabling customers to conduct transactions at any time and from
anywhere. E-banking has also made it easier for customers to monitor their accounts and track
their spending.
However, e-banking has also brought new challenges and risks. Cyber security has become a
significant concern for banks as they face an increasing number of cyber threats. Banks must
ensure that their e-banking systems are secure and that they have measures in place to protect their
customers’ data.
Another challenge for banks is the need to ensure that their e-banking services are user-friendly
and accessible to all customers. Banks must ensure that their e-banking platforms are easy to use
and that they provide adequate support to customers who may have difficulty using these
platforms.
The future of e-banking looks promising, with new developments in technology expected to drive
further growth and innovation. For example, the introduction of block-chain technology has the
potential to transform the way banks conduct transactions and manage their records. Artificial
intelligence (AI) and machine learning are also expected to play an increasingly important role in
e-banking, enabling banks to offer more personalized services to their customers.

Importance of E-Banking service
 Paper-based transactions:
E-banking has replaced paper-based transactions such as writing cheques, filling out deposit slips,
and withdrawal slips. Customers can now conduct these transactions online or through mobile
banking apps, eliminating the need for paper-based transactions.
 Physical bank branches:
With e-banking, customers can access banking services without visiting physical bank branches.
Customers can perform transactions such as fund transfers, bill payments, and account
management through online and mobile banking platforms.
 Passbook updates:
E-banking has replaced the traditional method of passbook updates. With e-banking, customers
can view their account transactions and balances online or through mobile banking apps,
eliminating the need for manual passbook updates.
 Cash deposits and withdrawals:

E-banking has enabled customers to deposit and withdraw cash using online and mobile banking
platforms. This eliminates the need to visit bank branches for these transactions.
 Standing instructions:
Standing instructions for recurring payments such as utility bills, loan repayments, and insurance
premiums can now be set up and managed online or through mobile banking apps, eliminating the
need for customers to visit bank branches for these transactions.

Limitations Of E-banking Services
 Technical Issues:
One of the significant limitations of e-banking services is technical issues such as system failures,
network outages, and power failures. These issues can lead to service interruptions, delayed
transactions, and other inconveniences for customers.
 Security Threats:
E-banking is vulnerable to various security threats such as phishing attacks, malware, and hacking.
These security threats can compromise customer information and result in financial losses.
 Dependence on Technology:
E-banking services depend on technology, which means that customers may be unable to access
their accounts or perform transactions during system upgrades, maintenance, or other technical
issues.
 Digital Divide:
E-banking services may not be accessible to all customers, particularly those who do not have
access to the internet or mobile phones. This creates a digital divide, which excludes certain
customers from accessing banking services.
 Lack of Personal Interaction:
E-banking services lack the personal interaction that traditional banking services offer. This can
be a disadvantage for customers who prefer face-to-face interactions or who need assistance with
complex transactions.

 Limited Services:
Some banking services, such as cash deposits and withdrawals, still require customers to visit
physical bank branches. This limitation can be inconvenient for customers who prefer to conduct
all their transactions online.
Revolution of E-Banking in India
The revolution of e-banking has also had a significant impact on the banking industry in India.
India has seen significant growth in the adoption of e-banking over the past decade, driven by
improvements in technology and changes in consumer behavior.
The Indian banking industry was slow to adopt e-banking initially, but this changed with the launch
of the National Electronic Fund Transfer (NEFT) system in 2005. NEFT enabled customers to
transfer funds between banks electronically, without the need for physical cheques or demand
drafts. This was a significant development in the Indian banking industry as it reduced the time
and cost involved in transferring funds.
In 2010, the Reserve Bank of India (RBI) launched the Immediate Payment Service (IMPS), which
enabled customers to transfer funds instantly using their mobile phones. This was a significant
development in the Indian banking industry as it made banking more accessible and convenient
for customers.
The growth of e-banking in India has been fueled by improvements in technology and changes in
consumer behavior. According to a report by the Reserve Bank of India, the number of mobile
banking transactions in India increased from 10 million in 2011 to 4.7 billion in 2019. The report
also states that the number of internet banking transactions increased from 1.3 billion in 2015-16
to 3.3 billion in 2018-19.
E-banking has had a significant impact on the Indian banking industry. It has enabled banks to
offer more efficient and cost-effective services to their customers. E-banking has also created new
opportunities for banks to expand their reach and attract new customers. For example, banks can
now offer services to customers who live in remote areas or who are unable to visit physical bank
branch fund.

E-banking has also transformed the way people manage their finances in India. It has made banking
more accessible and convenient, enabling customers to conduct transactions at any time and from
anywhere. E-banking has also made it easier for customers to monitor their accounts and track
their spending.
UPI (Unified payments interface)
Unified Payments Interface (UPI) is a payment system launched in 2016 by the National Payments
Corporation of India (NPCI). UPI is a real-time payment systemthat facilitates instant fund
transfers between bank accounts through mobile phones.UPI has revolutionized the Indian banking
services by making banking more accessible, convenient, and secure for customers.
Before the launch of UPI, mobile banking in India was limited to sending and receiving money
within the same bank. UPI changed this by allowing customers to link multiple bank accounts to
a single mobile app, making it possible to transfer funds between different banks instantly. This
made banking more convenient and accessible for customers as they no longer had to visit bank
branches or use multiplemobile banking apps to transfer funds.
UPI has also enabled various other services that were not possible before, such as merchant
payments, bill payments, and online shopping. Customers can now use UPI to make payments at
retail stores, restaurants, and other businesses, making it a popular payment method in India. UPI
has also enabled customers to pay utility bills, phone bills, and other bills directly from their
mobile phones, eliminating the need to visit payment centers or use multiple payment apps. One
of the key advantages of UPI is its ease of use. Customers can use UPI to transfer funds or make
payments with just a few clicks on their mobile phones. TheUPI interface is user-friendly and easy
to navigate, making it accessible to even those with limited technical knowledge. Additionally, UPI
does not require customers to remember complicated bank account numbers or IFSC codes, as

payments can be made using a Virtual Payment Address (VPA), which is a unique identifier for
eachbank account linked to UPI.
UPI has also revolutionized the Indian banking services by making banking more secure. UPI
transactions are secured through a two-factor authentication process, which includes a mobile
phone number and a UPI PIN. This makes UPI transactions more secure compared to traditional
payment methods such as cheques and cash, which are vulnerable to fraud and theft.
Another advantage of UPI is its interoperability. UPI is a platform that is open to all banks and
payment service providers, making it easy for customers to transfer funds and make payments
across different banks and payment platforms. This has made banking more convenient and
accessible for customers, as they no longer have to use multiple payment apps or visit bank
branches to transfer funds or make payments.
UPI has also had a significant impact on the Indian economy. By enabling digital payments, UPI
has reduced the dependence on cash transactions, which has led to areduction in black money and
corruption. UPI has also made it easier for small businesses and merchants to accept digital
payments, which has increased financialinclusion and helped to formalize the Indian economy.
Since its launch in 2016, UPI has grown rapidly in popularity. In August 2021, UPI recorded over
3.5 billion transactions worth over Rs. 6.39 trillion, making it the most popular payment system in
India. UPI has also enabled various new services, such as UPI AutoPay, which allows customers
to set up recurring payments for subscriptions and other services.
UPI has revolutionized the Indian banking services by making banking more accessible,
convenient, and secure for customers. UPI has enabled instant fund transfers, merchant
payments, and bill payments through mobile phones, making it a popular payment method in
India. UPI has also reduced the dependence on cash transactions, increased financial inclusion,
and helped to formalize the Indian economy. As UPI continues to evolve and enable new
services, it is expected to further transform the Indian banking industry and improve the banking
experience for customers.
The Current Landscape
The Covid-19 pandemic has catalyzed the momentum of adopting digital payments across the

country. The UPI had faced minor challenges in the first two waves of thepandemic, but apart from
that, UPI transactions are growing as the broader economy flourishes. The UPI network facilitated
6.28 billion transactions worth Rs 10.63 trillion in July 2022. According to data from the
National Payments Corporation of India (NPCI), the total number of active Indian banks on the
UPI network was 338 in July 2022. If we compare the current data with June 2022 figures, the
Volume and the Value of the July 2022 transactions are up by 7.16 per cent and 4.76 per cent,
respectively. State Bank Of India, HDFC Bank Ltd and Bank of Baroda are the top UPI Remitter
Banks. At the same time, Paytm Payments Bank, Yes Bank Ltd and State Bank Of India are the
leading UPI Beneficiary Banks.
Innovative, Inclusive and Individualistic
Simple and Individualistic: Paying and Receiving payments is as easy as a single click or swipe
from the users’ preferred App. The UI/UX has been enhanced and simplified for mass
adaptation.
Innovative: It must be noted that the underlying infrastructure of Immediate Payment Service (IMPS)
has been paramount for UPI’s grand success. Adopting a UPI ID rather than entering bank
account numbers and IFSC codes has made transactions effortless. Integration with Bharat Bill
Payment System (BBPS) for recurring Bill Payments has been crucial in creating an innovative
platform.
Inclusive: UPI is not just limited to one App. The top UPI apps which drive growth are–Google
Pay, Paytm and Phone Pay, with WhatsApp Pay and Amazon Pay joining the competition. The
interoperability of the UPI demonstrates that once a user has signed up on UPI, they can
immediately send money or receive it from anyone on the UPI system.
Few countries, including the US, have a national payment network that allows instant settlement.
Security: One of the strong pillars of UPI is its advanced security. UPI provides reliable end-to-
end security and data protection. UPI uses a highly secured platform; the users must first register
into UPI using the same mobile number already registered with the bank. RBI’s mandating of
KYC further strengthens the platform.
Global Scenario: Post India’s Success

Global acceptance and adoption of UPI would reinforce an overdue genesis, pulling down the
cross-border remittance cost. UPI has earned an endorsement in Singapore, Bhutan & Nepal. On
June 17, 2022, NPCI announced–UPI and Rupay cards will soon be accepted in France; NPCI is
also targeting additional Asian markets like Malaysia, Vietnam and Thailand. In April 2022, the
BHIM UPI app went live in theUAE at NeoPay terminals operated by Mashreq Bank.
According to a Cebr Economic Research analysis, In India, instant payments yielded an additional
cost savings of $12.6 billion in 2021. The same aided unleashing $16.4billion of India’s economic
output or 0.56% of India’s GDP. It is forecasted that by 2026, an additional $45.6 billion or
1.12% of India’s GDP, will be boosted by UPI payment. One thing is crystal clear with an
initiative to link Credit Cards with UPI and other initiatives–The future of money is digital.
India’s mass success of UPI is a Global case study: India’s role as a Global leader in Digital
payment is well established and booming progressively.

CHAPTER 3: REVIEW OF LITERATURE
E-banking has significantly impacted traditional banking services, with several studies
Highlighting its effects on customer behavior, loyalty, profitability, security, and satisfaction.
Studies by Narteh et al. (2016) and Kim et al. (2015) found that e-banking adoption led to changes
In the frequency and nature of banking transactions and increased customer loyalty through
Convenience, accessibility, and a wider range of services. Wafaa et al. (2016) found that e-banking
Had a positive impact on bank profitability, while Lee et al. (2018) found that perceived security
and privacy risks affected customers’ intentions to use e-banking services. Al-Hawari et al. (2016)
found that e-banking customers reported higher levels of satisfaction compared to traditional
banking customers. These studies employed different research methodologies, including surveys,
data analysis, and regression analysis, and were conducted in different countries, providing a
broad perspective on the impact of e-banking. Overall, e-banking has transformed the banking
industry, and banks need to continue to innovate and adapt to stay competitive while addressing
customer concerns about security and privacy. In addition to the impacts on customer behavior,
loyalty, profitability, security, and satisfaction, e-banking has also brought about several other
changes in traditional banking services. For example, e-banking has led to a shift in the way banks
interact with customers, with more focus on self-service options and fewer in-person interactions.
This shift has reduced costs for banks and provided greater convenience for customers.
Additionally, e-banking has enabled banks to offer more personalized services, such as targeted
marketing and customized product offerings, based on customers’ transaction history and
preferences. However, e-banking has also brought about several challenges, including the need
for banks to invest in new technologies, address security concerns, and ensure that their e-banking
services are accessible to all customers, including those in rural areas or with limited internet
access. Despite these challenges, the overall impact of e-banking on traditional banking services
has been positive, enabling banks to provide more efficient, convenient, and personalized services
to their customers while also increasing profitability and customer satisfaction

CHAPTER 4 : RESEARCH METHODOLOGY
Research methodology refers to the approach by which data is extracted to be clearly understood.
The development of strategy for conducting research is the third step after identifying a problem
and completion of the literature review. This chapter will therefore discuss the following: research
design, target population, sampling strategy, data collection instruments and process and analysis
of the data. The coverage of the study considers people of Vadodara city.
Research Problem
The research problem for a project on “the impact of e-banking on traditional banking services”
could be: “How has the adoption of e-banking affected the usage and satisfaction levels of
traditional banking services among customers?”
This research problem will focus on understanding how the rise of e-banking has affected
traditional banking services from the perspective of customers. The project can investigate the
changes in the frequency of usage, customer satisfaction levels, and the overall impact of e-banking
on the traditional banking industry. Additionally, the project can also explore the challenges and
opportunities for traditional banks in the face of increasing e-banking adoption.
Another research problem for the topic “Impact of E-Banking on Traditional Banking Services”
is to examine the extent to which the adoption of electronic banking channels such as online
banking, mobile banking, and ATM services has affected the demand for traditional banking
services. The increasing popularity of e-banking has raised concerns about the potential
displacement of traditional banking channels and its impact on the overall banking industry. The
study aims to identify the factors driving the adoption of e-banking, the level of customer
satisfaction with electronic banking services, and the impact of e-banking on the profitability and
sustainability of traditional banks. The research will provide insights for traditional banks on how
to adjust their business strategies in response to the growing popularity of e-banking services.

Objectives of the study
 To identify the factors that influence the adoption of e-banking channels among customers.
 To examine the level of customer satisfaction with e-banking services compared to

traditional banking services.
 To analyze the impact of e-banking on the demand for traditional banking services, such
as branch banking and telephone banking.
 To evaluate the impact of e-banking on the profitability and sustainability of traditional

banks.
 To identify the challenges faced by traditional banks in adopting e-banking channels and
strategies to overcome these challenges.
 To provide insights and recommendations for traditional banks on how to integrate e-

banking channels into their business models and improve their overall service offerings.
 To contribute to the existing literature on the impact of technology on the banking industry,
particularly the shift towards electronic banking services.
Scope of the research
 This project can help me to develop critical thinking skills by analyzing the advantages and
disadvantages of E-Banking and Traditional Banking Services.
 It can also improve my r research and analytical skills by requiring you to collect and analyze
data from various sources.
 By conducting this project, i can gain knowledge about the changing consumer behavior and
preferences with regards to banking services.
 It can also help me to understand the role of technology in transforming the banking industry
and the future of banking.
 Through this project, I can develop a deeper understanding of the challenges faced by
traditional banks in adopting and integrating E-Banking services.
 This project can also help me to explore the potential impact of E-Banking on the
profitability and sustainability of traditional banks.
 This project can help me to understand the regulatory environment and the role of regulators
in monitoring and supervising the E-Banking and Traditional Banking Services.
 It can also provide me with insights into the customer service experience offered by E-
Banking and Traditional Banking Services and how it affects customer satisfaction and
loyalty.
 This project can give me an opportunity to explore the competitive landscape of the banking
industry and how E-Banking services are disrupting traditional banking services.
 By conducting this project, i gained experience in working independently and managing your
time effectively to meet project deadlines
Data collection ( Primary/ Secondary)
Research Methodology of Study:
For Primary Data
(i) Sample Size:
Sample size refers to the number of participants or observations included in a study. This number

is usually represented by n. The size of a sample influences two statistical properties:
1) The precision of our estimates
2) The power of the study to draw conclusions.
The sample size in our research project is of 81 people which has served the purpose and is an
appropriate number for conducting the study.
(ii) Sampling Method:
Non-probability sampling design based on convenient sampling method has been used for the
proposed research study.
(iii) Sampling Frame:
The representative sampling unit in appropriate and justified size has been conveniently drawn
from the people living in and around the city of Vadodara.
(iv) Survey method:
The survey has been conducted through online Google forms which are in the form of
questionnaires with appropriate and relevant questions.
(iv) Survey tool:
The survey tool that has been taken for collection of data is in the form of questionnaires.
(v) Time frame of survey:
The survey has been conducted in a limited time frame of 1 month.
The data collected has been carefully evaluated and presented in the form of pie charts, graphs,
tables etc. Chi square test was conducted in order to determine the relationship between the
variables taken into consideration.
For Secondary Data
In order to carefully study the customer satisfaction levels of the two companies in the past
secondary data has been collected from various journals, editorials, online research papers and
various other secondary sources. The time frame for this has been 1 months. PESTEL and SWOT
analysis has been done of both the two companies with the help of the secondary data.

Limitations of proposed research study
 The study has been conducted under constrained and a limited time period. It has been
done under a short time-span.
 The study has been subject to the knowledge, understanding, bias and prejudices of the
respondents.
 Since the study is based on primary data and secondary data it incorporates all the
drawbacks of primary data and secondary data collection techniques.
 An underlying assumption for the entire project is that the details and the feedback received
from the population is true.
 The study had to be carried out based on the availability of respondents.

Chapter 5: Data analysis and finding
Data analysis
Q1. Gender
 Interpretation
Out of 81 responses, 23 (28.4%) people belonged to the female category. 58 (71.6% )to the
male category
Q2. Age

 Interpretation
Out of 81 respondents 47 (58%) belonged to the 18-24 age category, 18 (22.2%) belonged
to the 24-30 age category, and rest 16(19.8%) in different age categories.

Q-4 What is your preferred method of banking?
Out of 81 responses 43 (53.1%) people say they use mobile banking at the time of
making transaction of money. 22(35.8% ) people say they use online banking at the
time of making transaction of money. 9(11.1%) people say they use mobile banking at
the time of making transaction ofmoney.
Q-5 How often do you use e-banking services?


Out of 81 responses 33 (40.7%) people say they e- baking on daily basis. While,32(39.5% )
people say they use it e -banking on weekly basis. 10(12.3%) people say they use e-
banking on monthly basis. 6(7.4.%) people say they use it rarely bases.
Q-6 Which e-banking services do you use most frequently?
Out of 81 responses, 66(81.5%) responders say they use e banking for ‘fund transfer
‘to they account to another account. They followed 63(77.8%) using it for ‘checking
account balances’, While 51(63%) using it for ‘online bill payment ‘. And only
14(17.3%) responder say they using online banking platform for applying ‘loan and
credit cards’.

Q-7 Has the availability of e-banking services affected your use oftraditional
banking Services?
Out of 81 respondents 60(74.1%) responders say e banking affected use of traditional

banking services. Category, 15(18.5%) say e – banking are not affect on Traditional
Banking Services. Category, 6 (7.4%) responders say e – banking may be affecting in
traditional banking services.
Q-8 If yes, which traditional banking services do you use less frequently now
that you have Access to e-banking services?

Out of 81 Responders 70 (86.4%) are Using the access of e- banking instead of
traditional Banking for withdrawing Cash. While 49 (60.5%) used to it for depositing
Check, And 42 (S1.9 %) has for used for Speaking with and a teller Person.
Q-9 Do you think e-banking has improved or worsened customer service in the
banking Industry?
 Interpretatio
Out of Responders 57 (70.4%) voted in favor of improved Customer Service While
12 (14.8%) Responded in worsened customer Service And no change and unsure
both has got 6 (7.4%) Vote each.

Q-10 Do you think e-banking has made banking more or less convenient for
customers?
From the 80 Received Responses 61 (76.3%) Thing that e- banking has made, banking
more Convenient for customer, While less convenient and no change both got 7
(8.8%.) votes. And only 5(6.37 ) voted for unsure.
Q-1 1 you experienced any technical difficulties or security concerns while using
e-banking Services?
Out of 81 responses 50 (61.7%) has experienced any technicaldifficulties or

security while using e-banking services While 17 (24%) voted against as no
and only 14 (17.3%) respondedmaybe.

Q-12 If yes, please describe your experience with technical difficulties or

security concerns while using e-banking services?
Out of 81 responses regarding their responses regarding technical difficulties or
security concerns while using & banking Services 36(44.4%) faced phishing
attempts, 37(45.7%) faced Leakage of personal information, Unauthorized access
& malware or virus are Both are faced 27(33.3%), 35(43.27%) responders faced
suspicious activity and only 5(7.1%) faced no problem.

Q-13 Do you believe that traditional banking services will eventually be

replaced by e-banking services?
In a question regarding e-banking services replacing traditionalbanking service
54 (66.7%) responded in favor of yes, Followed by 14(17.3%) in favor of may
be, while only 13(16%) responded in No.

Q-14 If yes, in what time frame do you think this will happen?

For time regarding e-banking services replacing traditional banking33(40.7%) thinks
it will happen within next 10 Years , 23 (28.4%)thinks it will occur within next 5
years, 14(17.3%) thinks it will take more than 10 years While 11(13.6%) are unsure
about this.
Q-15 How satisfied are you with the overall e-banking experience provided by
your bank?
Regarding the rating about overall e-banking experience provided bybanks 29(35.8%)
rated it 5 out of 5, 27(33.3%) rated it 4 out of 3, Followed by 17(21%) rating it 3 out
of 5, 5(6.2%) rated it 2 out 3 3(3.7%) rated it 1 out of 5.

Q-16 Would you recommend e-banking services to others?
Out of 81 responses regarding recommending e-banking services to others, 66
(81.51%) responded in favor of recommending it, Followed by 9(11.1.%)
responding it in maybe, While only 6(7.4%) responded against recommending
against it.

Finding
 Convenience: E-banking provides customers with the convenience of accessing banking

services from anywhere and at any time. This has led to a decline in the number of
customers visiting traditional bank branches.
 Cost-effectiveness: E-banking reduces the cost of providing banking services by reducing

the need for physical infrastructure and personnel. This has led to a decrease in the cost of
banking services for customers.
 Competition: E-banking has led to increased competition among banks, as it allows new
players to enter the market with lower overhead costs. This has forced traditional banks to
improve their services and innovate in order to retain their customers.
 Security concerns: E-banking is vulnerable to security threats such as hacking, phishing,

and identity theft. This has raised concerns among customers about the security of their
personal and financial information.
 Technological infrastructure: E-banking requires significant investment in technology

infrastructure, which can be a challenge for smaller banks with limited resources.
 Overall, the impact of e-banking on traditional banking services has been largely positive,
as it has improved convenience and reduced costs for customers. However, it has also
raised concerns about security and posed challenges for smaller banks.

Chapter 6 : Conclusion
In Conclusion, the impact of e-banking on traditional banking services has been significant. E-
banking has provided customers with greater convenience and reduced the cost of banking
services. However, it has also raised concerns about security and posed challenges for smaller
banks that may not have the resources to invest in the required technological infrastructure. Despite
these challenges, e-banking has led to increased competition and innovation in the banking sector,
ultimately benefiting customers by improving the quality and accessibility of banking services.
E-banking has had a significant impact on traditional banking services, and its effects have been
both positive and negative. One of the key benefits of e-banking is the increased convenience that
it provides customers. E-banking allows customers to access banking services from anywhere and
at any time, without the need to visit a physical bank branch. This has led to a decline in the number
of customers visiting traditional bank branches, and a shift towards online and mobile banking.
Another benefit of e-banking is the cost-effectiveness that it provides. By reducing the need for
physical infrastructure and personnel, e-banking has reduced the cost of providing banking
services. This has led to a decrease in the cost of banking services for customers, making them
more accessible to a wider range of people.
However, e-banking has also raised concerns about security. E-banking is vulnerable to security
threats such as hacking, phishing, and identity theft, which can put customers’ personal and
financial information at risk. This has led to a greater focus on cyber security in the banking
sector,with banks investing in new security measures to protect their customers’ information.
Finally, e-banking has also posed challenges for smaller banks that may not have the resources to
invest in the required technological infrastructure. E-banking requires significant investment in
technology, which can be a challenge for smaller banks with limited resources. This has led to
increased competition among banks, as new players enter the market with lower overhead costs.
In banking industry Overall, the impact of e-banking on traditional banking services has been
largely positive, as it has improved convenience and reduced costs for customers. However, it
has also raised concerns about security and posed challenges for smaller banks. Despite these
challenges, e-banking has led to increased competition and innovation in the banking sector,
ultimately benefiting customers by improving the quality and accessibility of banking services.

Chapter 7 : Bibliography
Journal
 Al-Hawari, M., Ward, T., & Newby, L. (2016). The impact of online banking on bank
performance and risk: The Indian experience. Journal of Advances in Management Research,
13(1), 40-60.
 Kim, H. W., Chan, H. C., & Gupta, S. (2015). Value-based adoption of mobile internet: An
empirical investigation. Decision Support Systems, 79, 171-183.
 Lee, S., Kim, K., & Lee, D. (2018). Factors influencing the adoption of mobile banking: A
South Korean perspective. Journal of Internet Banking and Commerce, 23(1), 1-19.
 Narteh, B., Owusu-Frimpong, N., & Kofi-Fordjour, I. (2016). E-banking adoption in
Ghanaian banking system: A case of GCB Bank Limited. Journal of Internet Banking and
Commerce, 21(3), 1-16.
 Wafaa, A., Shaaban, E., & Aboelmaged, M. (2016). E-banking in Egypt: An exploratory
study of bank managers’ perspectives. Journal of Internet Banking and Commerce, 21(2), 1-
16.
WEBSITE
 https://scholar.google.com
 https://shodhganga.inflibnet.ac.in
 https://www.wikipedia.org

Annexure
Questionnaire
Q-1 Name
Q-2 Gender
Q-3 Age
o Below 18 year
o 18-24 year
o 24-30 year
o 30-40 year
o 40-50 year
o More than 50year
Q-4 What is your preferred method of banking?
o Online banking
o Mobile banking
o In-person banking
o Other:
Q-5 How often do you use e-banking services?
o Daily
o Weekly
o Monthly
o Rarely
o Never

Q-6 Which e-banking services do you use most frequently?
 Transferring funds between accounts

 Checking account balances
 Applying for loans or credit cards
 Online bill payment
Q-7 Has the availability of e-banking services affected your use of traditional banking
services?
o Yes
o No
o Maybe
Q-8 If yes, which traditional banking services do you use less frequently now that you have
access to e-banking services?
 Withdrawing cash in-person

 Speaking with a teller in-person
 Depositing check in person
 Other:
Q-9 Do you think e-banking has improved or worsened customer service in the banking
industry?
o Improved
o Worsened
o No change
o Unsure
Q-10 Do you think e-banking has made banking more or less convenient for customers?
o Less convenient

o More convenient
o No change
o Unsure
Q-11 you experienced any technical difficulties or security concerns while using e-banking
services?
o Yes
o No
o Maybe
Q-12I f yes, please describe your experience with technical difficulties or security concerns
while using e-banking services.
 Phishing attempts
 Unauthorized access to your account
 Suspicious activity on your account
 Malware or viruses
 Leakage of personal information
 Other:
Q-13 Do you believe that traditional banking services will eventually be replaced by e-
banking services?
o Yes
o No
o Maybe
Q-14If yes, in what time frame do you think this will happen?
o Within the next 5 years

o Within the next 10 years
o More than 10 years from now
o Unsure

Q-15 How satisfied are you with the overall e-banking experience provided by your bank?
Highly Dissatisfied 1 2 3 4 5 Highly Satisfied
Q-16 Would you recommend e-banking services to others?
o Yes
o No
o Maybe

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STUDY ON IMPACT OF E-BANKING ON TRADITIONAL BANKING SERVICES

Dr. Neha pandya

In Partial Fulfillment of the Requirement of the Subject in SSBBA-III,

Academic Year- (2022-23)

BBA MSUY, ACADEMIC YEAR 2022-23 Page 2

I, Divyesh Sureshbhai Davariya ( PRN no – 2020033800095896 ), hereby declare that I am

BBA MSUY, ACADEMIC YEAR 2022-23 Page 3

BBA MSUY, ACADEMIC YEAR 2022-23 Page 4

Chapter no. Particular Page no.

BBA MSUY, ACADEMIC YEAR 2022-23 Page 5

5 Data Analysis and Findings 30

BBA MSUY, ACADEMIC YEAR 2022-23 Page 6

BBA MSUY, ACADEMIC YEAR 2022-23 Page 7

BBA MSUY, ACADEMIC YEAR 2022-23 Page 8

BBA MSUY, ACADEMIC YEAR 2022-23 Page 9

BBA MSUY, ACADEMIC YEAR 2022-23 Page 10

Other related information

BBA MSUY, ACADEMIC YEAR 2022-23 Page 11

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laws, and anti-trust laws.

BBA MSUY, ACADEMIC YEAR 2022-23 Page 14

CHAPTER 2 : REVOLUTION OF BANKING

BBA MSUY, ACADEMIC YEAR 2022-23 Page 15

BBA MSUY, ACADEMIC YEAR 2022-23 Page 16

Importance of E-Banking service

 Physical bank branches:

 Cash deposits and withdrawals:

BBA MSUY, ACADEMIC YEAR 2022-23 Page 17

Limitations Of E-banking Services

 Lack of Personal Interaction:

BBA MSUY, ACADEMIC YEAR 2022-23 Page 18

Revolution of E-Banking in India

BBA MSUY, ACADEMIC YEAR 2022-23 Page 19

UPI (Unified payments interface)

BBA MSUY, ACADEMIC YEAR 2022-23 Page 20

The Current Landscape

BBA MSUY, ACADEMIC YEAR 2022-23 Page 21

Innovative, Inclusive and Individualistic

Global Scenario: Post India’s Success

BBA MSUY, ACADEMIC YEAR 2022-23 Page 22

BBA MSUY, ACADEMIC YEAR 2022-23 Page 23

CHAPTER 3: REVIEW OF LITERATURE

BBA MSUY, ACADEMIC YEAR 2022-23 Page 24

CHAPTER 4 : RESEARCH METHODOLOGY

BBA MSUY, ACADEMIC YEAR 2022-23 Page 25

Objectives of the study

 To examine the level of customer satisfaction with e-banking services compared to

 To evaluate the impact of e-banking on the profitability and sustainability of traditional

 To provide insights and recommendations for traditional banks on how to integrate e-

Scope of the research

preferences with regards to banking services.

Data collection ( Primary/ Secondary)

Research Methodology of Study:

For Primary Data

(i) Sample Size:

BBA MSUY, ACADEMIC YEAR 2022-23 Page 27

is usually represented by n. The size of a sample influences two statistical properties:

1) The precision of our estimates

2) The power of the study to draw conclusions.