PROJECT REPORT ON DIGITALISATION

IN
HDFC BANK

SUBMITTED BY:
SWAPNIL SRIVASTAVA
M.VOC (BSI) III

UNDER THE GUIDANCE OF:

INDUSTRY GUIDE:

FACULTY GUIDE:

Mr. Anuj Srivastava

Mr. Mohit Ahuja

PB Authoriser

Assistant Professor

HDFC BANK LTD.

NPGC, LUCKNOW

DECLARATION

I hereby declare that I have carried out Summer Training Project on

the topic entitled Digital Banking at Lucknow, Uttar Pradesh.
I further declare that this project is based on my original work and no
part of this project has been published or submitted to anybody.

SWAPNIL SRIVASTAVA

ACKNOWLEDGEMENT

The research report will be incomplete without giving my sincere gratitude to

all those who have helped me in preparing it.
First of all, I would be very thankful to HDFC bank for providing me an
internship opportunity.
I am thankful to my external guide, Mr.Anuj Srivastava, who gave me thorough
support.
I am extremely thankful to the Principal, and faculties of National P.G College,
Lucknow, for their coordination and cooperation and also thankful to Mr. Mohit
Ahuja for his kind guidance and encouragement.
I am thankful to all the people who have positively helped me and customers
who responded my questionnaire, around whom the whole project cycle
revolves.
I am thankful to all my friends who have more or less contributed to the
preparation of this project. I will be always indebted to them.

Thanking You

TABLE OF CONTENTS

TOPIC
1.INTRODUCTION
2.OBJECTIVE OF RESEARCH
3.RESEARCH METHODOLOGY
4.SCOPE OF STUDY & LIMITATIONS
5.ABOUT THE BANK
6.MEANING & USAGE OF DIGITAL BANKING
7.NEED OF DIGITIZATION
8.CUSTOMER SATISFACTION THROUGH DIGITIZATION

PAGE NO.
5
6
7
8
9
11
12
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9.PRODUCTS SOLD THROUGH DIGITAL MODE

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10.SUCCESS ACHIEVED THROUGH DIGITIZATION

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11.DIGITAL PENETRATION IN RURAL AREAS

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12.GLOBALIZATION
13.ISSUES IN DIGITAL BANKING
14.ANALYSIS OF QUESTIONNAIRE

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35
36

15.RESEARCH FINDINGS

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16.SUGGESTIONS

43

17.CONCLUSION

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18.BIBLIOGRAPHY

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19.ANNEXURE- QUESTIONNAIRE

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INTRODUCTION
Businesses today are driven much by technology. Banking business has also
witnessed that change. This project report is a blueprint of digital mode of doing
banking by the new generation customers. Digitization in banking is now
becoming a competitive advantage for all the banking firms in India and
outside. With the advent of new technologies, the old way of physically doing
banking is soon vanishing and is getting replaced by one touch insta-payments
and internet banking. The reason for choosing this topic is to analyse the
effectiveness of digitization upon the banks customers and the banks
employees as well, i.e., studying about customer satisfaction through digital
banking channels and the ease of doing banking business by the bankers on the
other side.
Digital banking can be defined as, Providing banking/financial services
through self-service channels with very limited or no branch support. The most
important elements or pillars of Digital Banking is the Internet and mobile
banking, but they should also be accompanied by Contact Center- ATMKiosks- Alarm Reminder Services and most importantly the Branches.
Yes! Innovation is definitely required in banking. But we have to emphasise on
the multiple uses of various technological platforms. We need to keep this in
mind that not every banks employees or the top executives are digitally very
strong or they have a digital mindset! So to make it easier to adapt the change
the people in a bank need to identify that how can the current banking scenario
be improved by doing some radical or some ordinary investments, or by simply
changing the flow of banking services ?
It can be done by using various things like customer motivation, online
marketing, timely interaction with the clients through automated
communication, providing transactional security, accurate and quick financial
reporting, setting KPIs , linking branch support to digital bank, customer care
services via call centres, customer grievance redressal machineries, project
management, using social media as a way of selling banks products,
installation of self service machineries at the branches, and so on....
According to me, digital banking is the most sought after thing in todays world
for any bank. In the following pages, we will study about this thing in detail as
observed while working with the bank in the internship period.

OBJECTIVE OF THE RESEARCH

To analyse the effectiveness of digitization on giving maximum customer

satisfaction and how far is it going to be beneficial for customers, it's future
concerns and present scenario.
The research aims to take a feedback about customers experience about digital
banking and what they are expecting out of it, hence providing suggestions to
improve it.

RESEARCH METHODOLOGY

Analysis would be done, based on the practical experience gained while dealing
with the bank's customers and through observation method and close interaction
with the bank's employees about the ways of managing banking business. Also,
a questionnaire will be used for collecting data regarding customer experience.
The research has been based upon the analysis of primary data collected via
questionnaire and also through various secondary sources.

SCOPE OF STUDY & LIMITATIONS

This project is focused on analysing that to what extent can digital banking go
to ensure customer satisfaction. Today and the time coming ahead will see a
new form of banking business, i.e., through digital channels, envisaging branchless banking and virtual banking.To meet the challenges associated with
it,banks,most preferably private sector banks are working on digitization to
enhance customer satisfaction and to gain competitive edge over other
banks.The project also deals with the added value received via digital platforms
that can help the bank reduce its cost base, thereby achieving economies of
large scale.But the biggest issue that is being confronted is the Security of
financial transactions and the like.
The project research was bound by the following limitations :
There was a lack of enough time in doing a comprehensive research (just
six weeks )
The banks staff had a tremendous work to be done daily, so they could
rarely give effective guidance
The topic being very wide, only front-end work has been analysed
Due to disinterest of the customers in filling up the questionnaires, hardly
about fifty respondents had taken it seriously.
Being an intern, it was difficult to obtain such information which is far
more crucial to the bank, than for my project.
So, under these limitations the study has been carried out.

ABOUT HDFC BANK

HDFC Bank Limited (Housing Development Finance Corporation) is an
Indian banking and financial services company headquartered in Mumbai,
Maharashtra. HDFC Bank was incorporated in August 1994. As of March 31,
2016, the Bank had a nationwide distribution network of 4,520 branches and
12,000 ATM's in 2,587 cities/towns. It has about 76,286 employees including
12,680 women and has a presence in Bahrain, Hong Kong and Dubai. HDFC
Bank is the second largest private bank in India as measured by assets. It was
ranked 58th among Indias most trusted brands according to Brand Trust Report,
2015.HDFC was amongst the first to receive an 'in principle' approval from the
Reserve Bank of India (RBI) to set up a bank in the private sector, as part of
RBI's liberalisation of the Indian Banking Industry in 1994.

HDFC Bank commenced operations as a Scheduled Commercial Bank in

January 1995.
Since its inception in 1977, the Corporation has maintained a consistent and
healthy growth in its operations to remain the market leader in mortgages. Its
outstanding loan portfolio covers well over a million dwelling units. HDFC has
developed significant expertise in retail mortgage loans to different market
segments and also has a large corporate client base for its housing related credit
facilities. HDFC was ideally positioned to promote a bank in the Indian
environment.
At present, Mr. Aditya Puri , is the Managing Director of the bank.
As on 31st March, 2015 the authorized share capital of the Bank is Rs. 550
crore. The shares are listed on the Bombay Stock Exchange Limited and The
National Stock Exchange of India Limited. On May 23, 2008, the amalgamation
of Centurion Bank of Punjab with HDFC Bank was formally approved by
Reserve Bank of India to complete the statutory and regulatory approval
process. The Banks expansion plans take into account the need to have a
presence in all major industrial and commercial centers, where its corporate
customers are located, as well as the need to build a strong retail customer base
for both deposits and loan products.HDFC Bank recognizes the importance of
good corporate governance, which is generally accepted as a key factor in
attaining fairness for all stakeholders and achieving organizational efficiency.
This Corporate Governance Policy, therefore, is established to provide a
direction and framework for managing and monitoring the bank in accordance
with the principles of good corporate governance.

MISSION & BUSINESS FOCUS

HDFC Bank's mission is to be a World Class Indian Bank. The objective is to
build sound customer franchises across distinct businesses so as to be the
preferred provider of banking services for target retail and wholesale customer
segments, and to achieve healthy growth in profitability, consistent with the
bank's risk appetite. The bank is committed to maintain the highest level of
ethical standards, professional integrity, corporate governance and regulatory
compliance. HDFC Banks business philosophy is based on five core values:
Operational Excellence, Customer Focus, Product Leadership, People and
Sustainability.

BUSINESS SEGMENTS
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SUGGESTIONS

1.
2.
3.
4.
5.

I pad forms can be used instead of paper based forms

Maximise the use of existing technology
Concentrate on business outcomes and not on digital activity
Train employees to inculcate digital competence
Motivate the consumers to start using digital banking

CONCLUSION

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Since the early days of online banking, bank Web sites have improved in areas such as
account alerts, authentication, navigation and design. But these mostly are modest
changes that have not had much of an impact on the overall user experience.

Despite the huge potential and well-established promise of digital financial

services to drive financial inclusion, multiple challenges remain in making these
sustainable.
Banks need to focus on developing compelling products that proliferate active
customer adoption. As the unbanked pool reduces over the next few years, due
to both physical as well as digital initiatives, the next wave of growth is
expected to come by focussing on the underbanked.
Banks may also need to invest in creating user readiness on several counts to
benefit from the growth of this segment for:
Supporting platforms for e-KYC, based on Aadhar .Supporting mobile
platforms and analytics to understand customer segments and needs
Innovating distribution models that go beyond the brick and mortar and
manpower intensive operating models
Making available customer service models like multi-lingual, voice based
interaction, simplified service offerings
Enhancing quality of service that is aligned to target customer ecosystem and
needs
Basing innovation needs on already existing technological initiatives that are
scalable and capable of integration with emerging disruptive technologies and
models such as Prepaid Instruments (PPI), Point of Sale (PoS), kiosks, mobiles,
payment banks, etc.
There is a need for players to adopt a holistic approach on going digital and
integrating business strategy with all constituents of their operating model
ecosystem to create a remarkable customer experience. Given the constraints on
capital and internal capabilities, players may need to make strategic choices
around the digital model as well as the transition path they may need to take, in
the short to medium term.

BIBLIOGRAPHY
Websites:
www.hdfcbank.com
www.dqindia.com
www.businesstoday.in
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www.iscoop.eu
www.finextra.com
www.unclecu.org
www.bankofamerica.com
www.money.howstuffworks.com

Magazines
Material provided by the company
Survey

Search Engines
www.google.com
www.yahoo.com
www.altavists.com

ANNEXURE
QUESTIONNAIRE
QUESTIONNAIRE ON DIGITAL BANKING
Customers Name: ______________________
CLASSIC
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Category (Please tick):

IMPERIA
PREFERRED
The following list of questions is designed to analyse your perspective as
a customer about banking through digital modes- your experience and
your expectations from it.
1. How much do you use the internet for doing official/personal tasks?
(a) Almost everyday
(b) Every alternate day
(c) Just on weekends
(d) Once in a month
2. Have you performed any of the following activities online?
(a) Tax filing
(b) Purchased/Sold a financial product (e.g., stock, bonds)
(c) Bill payments
(d) None of these
3. How frequently do you use mobile banking services per month (like
balance enquiry, mini statement, credit card enquiry)?
(a) Never
(b) 1 to 3 times
(c) 3 to 8 times
(d) 8 to 12 times
(e) Over 12 times
4. How frequently do you visit your bank branch per month?
(a) Once
(b) 1 to 3 times
(c) 3 to 8 times
(d) 8 to 12 times
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(e) Over 12 times

5. Specifically, for what reason do you visit the branch (please choose the
single most important)
(a) Making a deposit
(b) Withdrawing cash
(c) Getting an account statement
(d) Funds transfer
(e) Pass book printing
(f) Others
6. What benefits do you derive from using Net Banking?
(a) Quick payments
(b) Saves a lot of time
(c) Instant access from anywhere
(d) Easier to use/user-friendly
(e) All of the above
(f) I do not use Net banking
7. What type of transactions do you perform using HDFC banks Android/ i
phone app?
(a) Balance enquiry
(b) Funds transfer
(c) Credit card payment
(d) Mobile recharge
(e) All of the above
8. What unique feature do you find in Chillr app?
(a) Fund transfer to your mobile contacts
(b) Mobile/DTH/data card recharges
(c) Inter-bank funds transfer

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(d) Safe transactions enabled via M-PIN

9. How is Payzapp beneficial to you?
(a) Instant one-touch payment
(b) Is a very secure mode of doing payments through mobile
(c) Online shopping, ticket bookings have become quick enough
(d) No need of providing card details all the time
(e) All of the above
10. Through which of the following do you bank the most?
(a) Net banking
(b) Mobile banking through apps
(c) Phone banking
(d) In-person banking
11. Do you trust the security of online banking services?
(a) Completely
(b) Somewhat
(c) Doubtful
(d) Not at all
12. As far as customer care service is concerned, to what extent do you
feel satisfied while lodging a complaint or making a query?
(a) Highly satisfied
(b) Satisfied
(c) Neither satisfied nor dissatisfied
(d) Dissatisfied
(e) Highly dissatisfied
13. Do you think that human contact is important for setting up a good
banking relation?
(a) Completely

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(b) Somewhat
(c) Not sure
(d) Not at all
14. For you, what can be the two main disadvantages of online banking?
(a) Overall difficulty in user interface
(b) Lack of assistance
(c) Security concerns
(d) Limited transactions can be done
(e) Impersonality of the service
(f) Internet dependability
(g) Unreliable
(h) No disadvantages
15. For what purposes, have you used ATM, other than for withdrawing
cash?
(a) Balance enquiry
(b) Mini statement
(c) Cheque book request
(d) Registration for mobile banking
(e) Change ATM PIN
(f) Pay credit card bills
(g) Request for net banking password
(h) All of the above
16. What suggestions would you like to give to improve your experience
with net banking/mobile banking? (Please write in the space given below)

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17. Since net banking and mobile banking have come in place, your visit
to the banks branch has lessened or not?
(a) Very true
(b) Somewhat true
(c) Hardly makes any difference to me
18. Do you feel that with respect to online banking, HDFC bank has come
up to your expectations, as compared to your accounts in other banks ?
(a) Yes
(b) No
(c) I have an account only in this bank and nowhere else

----------------------------------------------------------x-----------------------------------------------------------THANK YOU!

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