A STUDY ON IMPACT OF TECHNOLOGY IN BANKING SECTOR

By

SHASHANTICA R

19MBA155

Under the Guidance of

Dr. P MOHANAMANI

ASSISTANT PROFESSOR – FINANCE,

KCTBS.

A PROJECT REPORT

SUBMITTED

In Partial Fulfilment of the requirements for the award of the

Degree of

MASTER OF BUSINESS ADMINISTRATION

KUMARAGURU COLLEGE OF TECHONOLOGY – BUSINESS SCHOOL

(An Autonomous Institution affiliated to Anna University, Chennai)

Coimbatore – 641 049

AUGUST 2020

1
 BONAFIDE CERTIFICATE

This is to certify that this Project Report entitled “A STUDY ON IMPACT OF

TECHNOLOGY IN BANKING SECTOR” is for the course completion of Major Project is
the Bonafide Work of SHASHANTICA R 19MBA155 Who carried out the project under my
supervision. Certified Further, that to the best my knowledge the work reported herein does not
form any part of any other Project report or dissertation on the basis of which a degree or award
was conferred on an earlier occasion on this or any other candidate.

FACULTY GUDIE HEAD OF THE DEPARTMENT

Dr. P MOHANAMANI, Dr. MARY CHERAIN,

ASSISTANT PROFESSOR – FINANCE, HEAD, KCTBS.

KCTBS.

Hard and Soft Copy Submitted for the Project Viva-Voce Examination held on
15.09.2020

INTERNAL EXAMINER EXTERNAL EXAMINER

(Signature With Date) (Signature With Date)

2
 DECLARATION

I hereby declare that this Research Project Report entitled “A STUDY ON IMPACT
OF TECHNOLOGY IN BANKING SECTOR” has been undertaken for academic purpose
for the course submitted to Anna University in partial fulfilment of requirements for the award
of degree of MASTER IN BUSINESS ADMINISTRATION. The Project Report is the
record of the original work done by me Under the Guidance of Dr. P MOHANAMANI,
ASSISTANT PROFESSOR, KCTBS. During the year 2020.

I, also declare hereby, that the information given in this report is correct to the best of
my knowledge

3
 ACKNOWLEGEMENT

I express my sincere and heart – felt gratitude to the Management of KCT Business
School, for their prime Guidance.

I express my thanks to Dr. Mary Cherian, Head of the Department, KCTBS for
implementing this project and providing under the supervision in its execution. I am indebted
to my institution and my faculty members without whom this project would have been a distant
reality.

I also would like to give my sincere thanks to my Project Guide Dr. P Mohanamani
Assistant Professor for giving me support and guidance for this project from inception to
closure.

4
 ABSTRACT

Technology is the most important factors for the development of mankind. Banking industry
is fast growing with use of technology in the forms for Online Banking, Mobile Banking Etc.,
Banking is the Traditional from is concerned with the acceptance of deposits from the
customers. Now a days, Banks Provides a wide range of services to satisfy the financial and
Non – financial needs all types of customers. Banking atmosphere has to turn into highly
competitive currently. IT states to the gaining, dealing out, storing and broadcasting of all forms
of material using computer knowledge and telecommunication systems. These technologies are
used for the input, storing, dealing out, and communication of information. IT includes
auxiliary equipment, software, and similar measures, services etc. Recent developments in the
banking sector in India are the Internet. The basic essential of Information Technology (IT) in
the banking sector are meeting internal requirements, effective in data handling, extending
customer services, creative support for new product development, end-user development of the
nontechnical staff. Emerging trends of information technology in the banking sector are
Outsourcing, Combination, Distinguishing Edge, IT as Income Centre, Flourishing in Down
Market. Tests faced by Indian banking scenario in India are Meet customer prospects on service
and capability offered by the bank, Customer retaining, Dealing the spread and sustain the
functioning profit, Recollecting the present market share in the industry and the enlightening
the same, Accomplishment from another group of actors in the banking industry.

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 CONTENT

CHAPTER CONTENT PAGE

NUMBER
1 INTRODUCTION 8
1.1 OBJECTIVE OF THE STUDY 9
1.2 SCOPE OF THE STUDY 9
1.3 STATEMENT OF PROBLEM 9
2 INDUSTRY PROFILE 10
2.1 HISTORY OF BANKING SECTOR 10
2.2 TECHNOLOGY IS INFLUENCING THE COMPETITION AND 12
THE AMOUNT OF CONTESTAVILING OF BANKING
2.3 TECHNOLOGY INFLUENCES ECONOMY OF SCALE 12
2.4 TECHNOLOGY OF INFLUENCING THE ECONOMICS OF 12
DELIVERY
3 REVIEW OF LITERATURE 13
4 RESEARCH METHODOLOGY
4.1 INTRODUCTION 18
4.2 RESEARCH DESIGN 18
4.3 SOURCE OF DATA 18
4.4 SAMPLING METHOD 18
4.5 STATISTICAL TOOLS USED FOR THE STUDY 18
4.6 RELIABILITY TEST 19
5 ANALYSIS AND INTERPRETATION
5.1 INTRODUCTION 20
5.2 DEMOGRAPHIC PROFILING 20
5.2.1 AGE 20
5.2.2 GENDER 21
5.2.3 EDUCATION 22
5.2.4 OCCUPATION 23
5.2.5 INCOME 24
5.3 DESCRPTIVE ANALYSIS 25
5.3.1 DEMOGRAPHIC PROFILE 25

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 5.3.2 USAGE OF PAYMENTS IN APPS AND SATISFACTION OF 26
SERVICESPROVIDED BY BANKS
5.3.3 BASED ON EASE AND CONVIENCE IN THE BANKS 27
5.3.4 BASED ON SERVICES BY THE BANKS: 28
5.4 T-TEST 29
5.5 CORRLEATION 30
5.6 REGRESSION 31
6 FINDINGS AND SUGGESSTIONS 35
6.1 FINDINGS 35
6.1.1 DEMOGRAPIC PROFILING OF RESPONDENTS 35
6.1.2 DESCRPTIVE ANALYSIS 35
6.1.2.1 DEMOGRAPHIC PROFILE 35
6.1.2.2 USAGE OF PAYMENTS IN APPS AND SATISFACTION OF 35
SERVICESPROVIDED BY BANKS
6.1.2.3 BASED ON EASE AND CONVIENCE IN THE BANKS 35
6.1.2.4 BASED ON SERVICES BY THE BANKS: 35
6.1.2.5 T-TEST 35
6.1.3 CORRLEATION 36
6.1.4 REGRESSION 36
6.2 SUGGESSIONS 36
BIBLIOGRAPHY 37

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 CHAPTER 1

INTRODUCTION

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, the
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 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.

Digital cash eliminates many problems associated with physical cash, such as
misplacement or the potential for money to be stolen or damaged. Additionally, digital cash
can be traced and accounted for more accurately in cases of disputes. As consumers find an
increasing number of purchasing opportunities at their fingertips, there is less need to carry
physical cash in their wallets.

Other indications that demand for digital cash is growing are highlighted by the use of
peer-to-peer payment systems such as PayPal and the rise of untraceable crypto currencies such
as bit coin. Almost anything imaginable that can be paid with physical cash can theoretically
be paid with the swipe of a bank card, including parking meters.

8
The problem is this technology is still not omnipresent. Cash circulation grew in the United
States by 42% between 2007 and 2012, with an average annual growth rate of 7%, according
to the BBC.

The concept of an all-digital cash economy is no longer just a futuristic dream but it's still
unlikely to outdate physical cash in the near future. All digital banks are possible as a consumer
option, but people may still have a need for physical cash in certain situations. ATMs help
banks cut overhead, especially if they are available at various strategic locations beyond branch
offices.

1.1 OBJECTIVE OF THE STUDY:

 To Study the technology in the Banking Sector
 To Analyse the technology used in Banking sector and Services provided by them
 To Study the Usage of Technology
1.2 SCOPE OF THE STUDY:

The advancement of Technology has influenced the banks used to deliver the financial
products to its customers. It further helps banks to perform well. It will give more information
about the technology and profitability in the banks.

1.3 STATEMENT OF THE PROBLEM:

These days technology plays a vital role in all sectors. When coming to banking sector
technology has major impact on profitability of banks. People are not aware about some
technology provided by bank and this research is based on how people are aware about the
technology and how they are impacting the profitability of the banks

9
 CHAPTER 2

INDUSTRY PROFILE

A bank is a financial institution that provides banking and other financial services to
their customers. A bank is generally understood as an institution which provides fundamental
banking services such as accepting deposits and providing loans. There are also nonbanking
institutions that provide certain banking services without meeting the legal Banks are a subset
of the financial services industry. A banking system also referred as a system provided by the
bank which offers cash management services for customers, reporting the transactions of their
accounts and portfolios, throughout the day. The banking system in India, should not only be
hassle free but it should be able to meet the new challenges posed by the technology and any
other external and internal factors. For the past three decades, India’s banking system has
several outstanding achievements to its credit. The Banks are the main participants of the
financial system in India. Before the establishment of banks, the financial activities were
handled by money lenders and individuals. At that time the interest rates were very high. Again
there were no security of public savings and no uniformity regarding loans. So as to overcome
such problems the organized banking sector was established, which was fully regulated by the
government. The organized banking sector works within the financial system to provide loans,
accept deposits and provide other services to their customers. The Banking sector offers several
facilities and opportunities to their customers. All the banks safeguards the money and
valuables and provide loans, credit, and payment services, such as checking accounts, money
orders, and cashier’s cheques. The banks also offer investment and insurance products. As a
variety of models for cooperation and integration among finance industries have emerged,
some of the traditional distinctions between banks, insurance companies, and securities firms
have diminished. In spite of these changes, banks continue to maintain and perform their
primary role—accepting deposits and lending funds from these deposits.

2.1 HISTORY OF BANKING SECTOR:

The first bank in India, called The General Bank of India was established in the year
1786. The East India Company established The Bank of Bengal/Calcutta (1809), Bank of
Bombay (1840) and Bank of Madras (1843). The next bank was Bank of Hindustan which was
established in 1870. These three individual units (Bank of Calcutta, Bank of Bombay, and Bank
of Madras) were called as Presidency Banks. Allahabad Bank which was established in 1865,
was for the first time completely run by Indians. Punjab National Bank Ltd. was set up in 1894

10
with head quarters at Lahore. Between 1906 and 1913, Bank of India, Central Bank of India,
Bank of Baroda, Canara Bank, Indian Bank, and Bank of Mysore were set up. In 1921, all
presidency banks were amalgamated to form the Imperial Bank of India which was run by
European Shareholders. After that the Reserve Bank of India was established in April 1935. At
the time of first phase the growth of banking sector was very slow. Between 1913 and 1948
there were approximately 1100 small banks in India. To streamline the functioning and
activities of commercial banks, the Government of India came up with the Banking Companies
Act, 1949 which was later changed to Banking Regulation Act 1949 as per amending Act of
1965 (Act No.23 of 1965). Reserve Bank of India was vested with extensive powers for the
supervision of banking in India as a Central Banking Authority. After independence,
Government has taken most important steps in regard of Indian Banking Sector reforms. In
1955, the Imperial Bank of India was nationalized and was given the name "State Bank of
India", to act as the principal agent of RBI and to handle banking transactions all over the
country. It was established under State Bank of India Act, 1955. Seven banks forming
subsidiary of State Bank of India was nationalized in 1960. On 19th July, 1969, major process
of nationalization was carried out. At the same time 14 major Indian commercial banks of the
country were nationalized. In 1980, another six banks were nationalized, and thus raising the
number of nationalized banks to 20. Seven more banks were nationalized with deposits over
200 Crores. Till the year 1980 approximately 80% of the banking segment in India was under
government’s ownership. On the suggestions of Narsimhan Committee, the Banking
Regulation Act was amended in 1993 and thus the 26 gates for the new private sector banks
were opened. The following are the major steps taken by the Government of India to Regulate
Banking institutions in the country: -

 1949: Enactment of Banking Regulation Act.

 1955: Nationalization of State Bank of India.
 1959: Nationalization of SBI subsidiaries.
 1961: Insurance cover extended to deposits.
 1969: Nationalization of 14 major Banks.
 1971: Creation of credit guarantee corporation.
 1975: Creation of regional rural banks.
 1980: Nationalization of seven banks with deposits over 200 Cores.

11
2.2 TECHNOLOGY IS INFLUENCING THE COMPETITION AND THE AMOUNT
OF CONTESTABILITY IN BANKING:

Due to the growth of technology, the bank ‘s incomparability in particulars is

deteriorated. Entry barrier has been declining, a new competitor has emerged. Information
Communication and Computation Technology have changed the contours of three major
functions being performed by the banks viz. access to liquidity, the transformation of assets
and monitoring of risks. Information technology and the communication networking systems
have a crucial bearing on the efficiency of money, capital, and foreign exchange markets. Some
monetary products and services have become more crystal-clear commodities, customer show
willing to unbundled the petition for monetary products and services, all these lead to a more

competitive market atmosphere. Due to hand down entry and existed construction, for some

sub-financial markets, contestability in banking is also raised up.

2.3 TECHNOLOGY INFLUENCE ECONOMY OF SCALE:

Competitive pressure force banks to lower their cost. Bank seeks to get economy of scale in
bank procession instead of being a big bank. Bank seeks to secure the optimal business
structure, and secure the competitive imperative of economy of scale. There are other options
to get economy of scale, including joint venture and confederation of financial firms. Small
firms also can get economy of scale by outsourcing, i.e. buy in an economy of scale.

2.4 TECHNOLOGY OF INFLUENCING THE ECONOMICS OF DELIVERY:

Technology has a major impact on the way banking and financial services are
delivered., a wide range of alternative delivery mechanism becomes available, Internet,
ATM… these Reduce the dependence on the branch network as a core delivery mechanism.
With the development of technology, the financial systems are substantially over-supplied with
a delivery system through a duplication of a network, the bank has to change their delivery
strategy, rationalize their branch network strategy, and widen the range of delivery option

12
 CHAPTER 3

REVIEW OF LITERATURE

B K Jha, S L Gupta and Puneet Yadav (2008) “Use and Effectiveness of New
Technologies in Indian Banking: A Study”, Technology has played a vital role in the
evolution of Indian banking sector through speed creation, accuracy and efficiency of
operation, and reduction in the transaction cost. Banking services are now oriented to “anyhow,
anywhere, and any type” banking. This paper aims at studying awareness, expectation and
acceptance levels of the customers with respect to the use and effectiveness of the new
technologies in banking sector in India. It also aims at studying the different technologies used
in the Indian banking sector as well as the advantages and disadvantages of the adoption of
new technologies and their applications. Technology access, up gradations and innovations in
various functional areas of banking are of the highest level in India. One of the fastest growing
sectors of the Indian economy, where technology is customer-oriented service, is banking. Over
the years, Indian banking has moved from a traditional model of customer service to a modern
one, where banks can reach the customers at any point with their services. Now, banks are
luring the customers by visiting them. The banking sector is in the process of undergoing
revolutionary changes in the way it functions and delivers its services to the customers. Now,
banks are depending more and more on technology and are gradually moving towards an age
of high-tech banking.

Saeid Khajeh dangolania (2011) “The Impact of Information Technology in

Banking System(A Case Study in Bank Keshavarzi IRAN)”, The advent of information
technology to every aspect of human life and business has been so obvious that it does not need
to be accentuated more. Information technology has been of great essence in banking system.
This study aims to investigate the effect of information technology in the banking system of
Bank Keshavarzi Iran. The data are obtained both through the customers and the employees.
The data were then analyzed using the exact percentage and the 5-point Likert scale to
determine the impact of Information technology in the banking system affairs. The findings
then proved that Information technology contributes to the banking system in three different
ways as follows: IT saves the time of the customers and the employees conspicuously; IT cuts
down the expenses and IT facilitates the network transactions.

13
 Anitha. K, Saranya. J, Dr. S. Vasantha (2013) “An Exploratory Study on Usage of
Technology in Banking Sector”, In today's hi-tech world technology support is very
important for the successful functioning of the banking. This research focuses on the usage of
technology in banking sector. Today banks are the backbone of the Indian economy. Banking
in India originated in the last decades of the 18th century. The first banks were Bank of
Hindustan (1770-1829) and the General Bank of India (1786). Without information technology
and communication, we cannot think about the success of a banking sector. It has enlarged the
role of banking sector in the economy. The financial transactions and payment can be processed
in easy and quick way. The use of ATM, credit card, tele- banking, mobile banking internet
banking etc, provides more security in banking. It also highlights the effective use of
technology in banking and product awareness among people. The study shows how people can
make use of technology in banking. Among the total population in Chennai, 200 respondents
were taken as sample for this study. Data collected were analysed and drawn meaningful
inferences with the help of various tools such as simple percentage analysis, factor analysis and
chi square. The study provides various suggestions for the banks to improve the effective
utilization of technology.

Dr. (Smt.) V. Vimala (2015) “The Impact of Information Technology Adoption on

the Customers of Bank of India, Bangalore Urban – An Evaluative Study”, today, banking
is becoming increasingly complex and banks which fail to use technology to take their services
to the common man and tap the potential of the rural sector will stand to lose. Ultimately,
technology would be the key enabler and differentiator in accomplishing this objective. When
we look at technology, the scope for innovation is immense – in the field of financial inclusion
itself, right from biometric based systems to mobile based to simple Interactive Voice Response
based applications. But it cannot be a one-size-fits-all approach. Recent years have witnessed
phenomenal transformations in the operations of many businesses due to the immense advances
in Information, Communication Technology (ICT). Banks have accordingly introduced web-
based services, appropriately called Internet Banking. Many studies have looked at different
aspects of this phenomenon, and their impact on the banking sector. In this context, an attempt
is made to examine the impact of Information Technology (IT) adoption on the selected bank
customers of Bank of India, Bangalore Urban. The study is carried out with the help of a
structured questionnaire administered to 100 selected customers and with the help of their
responses analysis is made thereafter, which is followed by findings of the study with few
suggestions.

14
 A.Pappu Rajan, D.Allen Rose Shamini (2018) “Information Technology plays a
vital role in banking sector: Future Banking Services”, Retail banks across the globe are
expected to undergo a digital transformation in the coming three to five years as customers
increasingly prefer using digital channels such as online and mobile to interact with their banks.
Technology in Indian banking has evolved substantially from the days of back office
automation to today's online, centralized and integrated solutions. Today’s demand of banking
is anytime anywhere banking. This requires innovative, robust, secure, optimized and ready to
meet the expectations of empowered and tech-savvy customers. A study analyse the future
banking service channels based on the preference and expectation of customer with special
reference to Tiruchirappalli city. This paper discusses introduction about this research, review
of literature to lead this research, research methodology to applied this research, data analysis
to achieve objectives of the research and findings and suggestions with conclusion.

S.Bulomine Regi (2017) “PROBLEM FACED BY CUSTOMERS USING

TECHNOLOGICALBANKING SERVICES- AN INFERENTIAL ANALYSIS”, IT
savvy customer is more empowered and left with many options of making payments, through
his ATM and debit cards, credit cards, RTGS, NEFT transfer, ECS, or mobile payments.
However, change in technological aspect is rapid and is evolving constantly and therefore what
lies ahead in future cannot be predicted with conformity. The following objectives are focused
in the study: i. To study the customers perception towards technological banking, ii. To find
out the problems faced by the customers while availing technological banking iii. To analyse
the relationship between types of bank with problems faced by the customers while availing
technological banking. Primary Data was collected by using questionnaire under simple
random sampling method. 600 samples were selected from various Public Sector Banks like
State Bank of India, Indian Bank and Indian Overseas Bank and Private sector banks like ICICI,
HDFC, Karur Vysya Bank in Tirunelveli district. In this paper, the major findings on challenges
faced by the customers while availing technological banking and suggestions based on the
findings are discussed.

R Rajesh, A Palpandim (2015) “A Study on Impact Of Information Technology

In Banking Sector With Reference To Southern Tamilnadu”, This study addresses the
impact of information technology on the banking services offered to the customers. Information
technology provides economies of scale in service delivery, covering new customers and
developing innovative services. Banking sector in India has made rapid pace in,reforming and
aligning technology to the new competitive business. It adopts internet, mobile, and

15
communication systems to deliver speedy service. This present study was started with the
objective of knowing customers demographic profile, factors influencing on service
accessibility, customer satisfaction on technology based service and strategies required to
improve this service portfolio. This study was conducted in Southern Tamilnadu, which
covered 100 samples in number. The data for the study was collected through well-constructed
and open-ended questionnaire. This study seeks to test the above objectives with simple
percentage analysis, factor analysis, and multiple linear regression test, mean score, t-test and
chi-square test. This study was concluded that banking services through information
technology platform offers satisfied service to the customers and simultaneously needs to
improve as per changing technology inclination.

Megha Jain, Prof. (Dr.) G.S. Popli “Role of Information Technology in the
development of Banking Sector in India”, Liberalization and Information technology has
attracted many foreign banks to India, thereby opening up new markets, new products and
efficient delivery channels for the banking industry. In the development of Indian Economy,
Banking sector plays a very important and crucial role. With the use of technology there had
been an increase in penetration, productivity and efficiency. It has not only increased the cost
effectiveness but also has helped in making small value transactions viable. It also enhances
choices, creates new markets, and improves productivity and efficiency. It has been noticed
that financial markets have turned into a buyer‘s markets in India. Commercial Banks in India
are now becoming a one-stop Supermarket. The focus is shifting from mass banking to class
banking with the introduction of value added and customized products. Technology allows
banks to create what looks like a branch in a business building ‘s lobby without having to hire
manpower for manual operations. The branches are running on the concept of 24 X 7 working,
made possible by the use of Tele banking, ATMs, Internet banking, Mobile banking and E -
banking. This technology driven delivery channels are being used to reach out to maximum
number of customers at lower cost and in most efficient manner. The beauty of these banking
innovations is that it puts both banker and customer in a win- win situation. Effective use of
technology has a multiplier effect on growth and development.

Kwabena Obiri-Yeboah, Roderick Kyere-Djan and Kwame Owusu Kwarteng

(2013) “The Role of Information Technology on Banking Service Delivery: A Perspective
from Customers in Ghana”, Commercial banks and most rural banks in Ghana have aligned
IT with their business processes. The study evaluates the types of technological facilities used
by bank customers, the benefit of technology and its challenges to customers. In order to

16
achieve this, a mixed method approach was used to collect data using structured and semi-
structured questionnaires. The results indicate that IT facilities used most by customers are
ATM, Internet banking, and Electronic Fund Transfer at Point of Sale. ATM, direct deposit,
withdrawal services and branch networking were the facilities that were highly used and
offered by all the banks. The introduction of IT services by the banks has positively impacted
the rate at which customers’ visits banking halls and services received. How much knowledge
customers had about the services affected the number of times they would use the service as
well as the number of times they visited the banking halls. Some of the challenges encountered
by customers are: low knowledge in using technology facilities, Internet connectivity
problems, challenges posed by internet fraud and IT avoids personal interaction, making it
difficult to get instant solutions to problems. The study recommends that there should be
periodic educational campaigns about the technological facilities and their usage by the banks
to promote customer patronage. The ATM machine should be monitored always to make sure
it has the capacity to provide its 24/7 service as expected of it.

Aswin Raj and Mr. Bala Nageshwara Rao (2018) “A study on role of technology
in banking sector”, The purpose of this study is to relationship between new technology
implementation in banking sector and customers. How they about the technologies and how
they are for this study was collected from the various Banking Sectors under the Reserve India.
A simple percentage analysis and be done. According to questioners 30 collected and
interpretations are given. suggest that most of the customers of ATM facility. So the banks
need to give about the E-banking services. Lastly, the few papers that focus on technology
development banking industry.

17
 CHAPTER 4

RESEARCH METHODOLOGY

4.1 INTRODUCTION:

This research aims to study the impact the Technology in Banking Sector. In this
chapter we have discussed the tools & techniques that are the statistical method of Collection,
Interpretation and Analysis

4.2 RESEARCH DESIGN:

The research design is used here is Descriptive Research. In this technology in banking
sector is studied thoroughly.

4.3 SOURCE OF DATA:

The data used for this research is Primary Data. They are obtained through survey with
help of Google Forms. Structured Questionnaire is developed and circulated.

4.4 SAMPLING METHOD:

Stratified Random Sampling is used for this research. The sampling will have more
statistical efficiency in this method the population is divided into a specified set of strata. The
sampling method is used to find out technology used in banking sector. The stratified random
sampling works well for population with a variety of attributes and its effective if subgroups
cannot be formed.

4.5 SATISTICAL TOOLS USED FOR ANALYSIS:

Some of the tools used for analysis for this research are

1. Percentage Analysis
2. Descriptive Statistics
3. Correlations
4. Regressions
5. T-Test

18
4.6 RELIABILITY TEST:

SNO CONSTRUCTS CRONBACH NUMBER

ALPHA OF ITEMS
1 Usage of payments in Apps and Satisfaction of 0.744 4
services Provided by Banks
2 Based on Ease and Convenience in the Banks 0.663 6
3 Based on Services by the Banks 0.794 1
TOTAL 0.733 11

RELIBILITY TEST

BASED ON SERVICES BY THE BANKS

BASED ON EASE AND CONVIENCE IN THE BANKS

USAGE OF PAYMENTS IN APPS AND SATISFACTION OF

SERVICES PROVIDED BY BANKS

0 1 2 3 4 5 6 7

N OF ITEMS CRONBACH'SALPHA VALUE

INFERENCE:

The Cronbach alpha ranges from 0.77 to 0.66 the average of Cronbach alpha is 0.73
this shows that the research method is acceptable and further it can proceed

19
 CHAPTER 5

ANALYSIS AND INTERPRETATION

5.1 INTRODUCTION:

This Chapter deals with analysis of Various Constructs and exploring the same using
statistical tools. This analysis is done with information collected from One Hundred and
Twenty Respondents. This significant analysis is used to know the Technology of Banking
Sector.

5.2 DEMOGRAPHIC PROFILING:

With the help of Percentage Analysis, the demographic variable such as Age, Gender,
Education, Occupation and Income of One Hundred and Twenty Respondents are identified in
Percentage. It is intended to measure the Socio – Economic Profile of the Respondents.

5.2.1 AGE:

SNO AGE FREQUENCY PERCENTAGE

1 18 – 25 Years 78 65

2 26- 35 Years 25 20.8

3 36 -45 Years 11 9.1

4 45 Years & Above 6 5

TOTAL 120 100

20
 INTERPRETATION:

Out of 120 Respondents, Most of Respondents were between the age of 18 – 25 Years
with the percentage of 65%

5.2.2. GENDER:

SNO GENDER FREQUENCY PERCENTAGE

1 MALE 64 53.33

2 FEMALE 56 46.66

TOTAL 120 100

GENDER
100

50

0
FREQUENCY PERCENTAGE

MALE FEMALE

21
 INTERPRETATION:

Out of 120 Respondents who participated in the survey comparatively with female
respondents, the male respondents are high with percentage of 53.33%.

5.2.3 EDUCATION:

SNO EDUCATION FREQUENCY PERCENTAGE

1 SCHOOLING 7 5.83

2 DIPLOMA 17 14.16

3 UNDER GRADUATE DEGREE 44 36.66

4 POST GRADUATE DEGREE 52 43.33

TOTAL 120 100

EDUCATION

PG DEGREE

UG DEGREE

DIPLOMA

SCHOOLING

0 10 20 30 40 50 60

PERCENTAGE FREQUENCY

INTERPRETATION:

Out of 120 Respondents, Most of the Respondents were Post Graduate Degree is high
with the percentage of 43.33.

22
 5.2.4 OCCUPATION:

SNO OCCUPATION FREQUENCY PERCENTAGE

1 STUDENT 64 53.33

2 PRIVATE SECTOR EMPLOYEE 26 21.66

3 PUBLIC SECTOR EMPLOYEE 8 6.66

4 SELF - EMPLOYEE 18 15

5 OTHERS 4 3.33

TOTAL 120 100

OCCUPATION
70
60
50
40
30
20
10
0
FREQUENCY PERCENTAGE

STUDENT PRIVATE SECTOR EMPLOYEE PUBLIC SECTOR EMPLOYEE SELF - EMPLOYEE OTHERS

INTERPRETATION:

Out of 120 Respondents, we could find that students are high with the percentage of 53.33 %
When compared with Private Sector Employee, Public Sector Employee, Self – Employee and
others.

23
 5.2.5 INCOME:

SNO INCOME FREQUENCY PERCENTAGE

1 Rs.10,000 -Rs.1,00,000 64 53.33

2 Rs.1,00,001 – Rs.2,50,000 15 12.5

3 Rs.2,50,001 – Rs.5,00,000 13 10.83

4 Rs.5,00,001& Above 28 23.33

TOTAL 120 100

INCOME
70
60

50

40

30

20

10

0
Rs.10,000 - Rs.1,00,000 Rs.1,00,001 - Rs. 2,50,000 Rs. 2,50,001 - Rs. 5,00,000 Rs. 5,00,000 & Above

FREQUENCY PERCENTAGE

INTERPRETATION:

Out of 120 Respondents, Most of the Respondents income level is Rs.10,000 –

Rs.1,00,000 with the percentage of 53.33%.

24
 5.3 DESCRPTIVE ANALYSIS

5.3.1 DEMOGRAPHIC STRUCTURE

SNO PARTICULARS STANDARD MEAN

DEVIATION

1 AGE 0.8589 1.542

2 GENDER 0.5010 1.533

3 EDUCATION 0.8856 3.175

4 OCCUPATION 1.2281 1.933

5 INCOME 1.2596 2.042

TOTAL 4.7332 10.225

AVERAGE 0.94664 2.045

DEMOGRAPHIC STRUCTURE
3.5
3
2.5
2
1.5
1
0.5
0
AGE GENDER EDUCATION OCCUPATION INCOME

STANDARD DEVIATION MEAN

INTERPRETATION:

The mean ranges from 1.533 to 3.175. The total value of mean is 10.225 and average value of
the mean is 2.045. The Highest Mean was 3.175 in Education. The Standard Deviation ranges
from 0.5010 to 1.2596. the total value of Standard Deviation is 4.7332and average value of
standard deviation is 0.94664. The Highest Value is 1.2596 in Income.

25
 5.3.2 USAGE OF PAYMENTS IN APPS AND SATISFACTION OF SERVICES
PROVIDED BY BANKS

SNO PARTICULARS STANDRAD MEAN

DEVIATION

1 Satisfaction of these Apps 0.8431 2.192

2 Satisfactory Level of these Apps

2.1 Account Information and Balance Enquiry 0.946 2.19

2.2 E-Payments 0.815 2.13

2.3 Account to Account Transfer 0.869 2.13

2.4 Due Installment Enquiry 0.825 2.34

Total 4.2981 10.982

Average 0.85962 2.1964

USAGE OF PAYMENT OF APPS AND SATISFACTION OF SERIVCES

PROVIDED BY BANKS
2.5
2
1.5
1
0.5
0
Satisfaction of these Account Information E-Payments Account to Account Due Installment Enquiry
Apps and Balance Enquiry Transfer

STANDRAD DEVIATION MEAN

INTERPRETATION:

The mean value ranges from 2.13 to 2.34 among the usage payments in apps the
customers are more comfortable and satisfied with due instalment enquiry followed by account
to account transfer facility provided by bank

26
 5.3.3 BASED ON EASE AND CONVIENCE IN THE BANKS

SNO PARTICULARS STANDARD MEAN

DEVIATION

1 Feel of language and the Information content provided by the banks 0.7409 1.425

2 Easy to Find and Change the information of your account 0.8714 1.717

3 Feel of system is User Friendly 0.7503 1.408

4 Easy to follow the Instruction on the Website 0.8773 1.692

5 Satisfactory level of Error Free Transaction 1.2689 3.108

6 Satisfaction level of Electronic Bill Payments 0.9384 2.292

TOTAL 5.4472 11.642

AVERAGE 0.9078 1.940

BASED ON EASE AND CONVIENCE IN THE BANKS

Satisfaction level of Electronic Bill Payments
Satisfactory level of Error Free Transaction
Easy to follow the Instruction on the Website
Feel of system is User Friendly
Easy to Find and Change the information of your account
Feel of language and the Information content provided by…

0 0.5 1 1.5 2 2.5 3 3.5

MEAN STANDARD DEVIATION

INTERPRETATION:

The mean value ranges from 1.4 to 3.1.the customers are more likely to be satisfied
with error free transaction compared to other facilities provided by bank

27
 5.3.4 BASED ON SERVICES BY THE BANKS:

S NO PARTICULARS STANDARD MEAN

DEVIATION

1 Faster log in Facility 0.788 2.02

2 Performance of Plastic Cards (ATM, Debit/Credit) 0.904 2.08

3 Transfer of Funds (NEFT, RTGS) 0.874 2.23

4 Clearing Services (ECS – Credit/debit) 0.860 2.28

5 Login/Signoff are Easy 0.875 2.13

6 Lack of Security Transaction 1.003 2.55

7 Lack of Appropriate Software 1.012 2.46

TOTAL 6.316 15.75

AVERAGE 0.902 2.25

BASED ON SERVICES BY THE BANKS

Lack of Security Transaction

Clearing Services (ECS – Credit/debit)

Performance of Plastic Cards (ATM, Debit/Credit)

Satisfy with Bank Services

0 0.5 1 1.5 2 2.5 3

MEAN STANDARD DEVIATION

INTERPRETATION:

The mean value ranges from 2.5 to 2.1, the customers are not satisfied with security
provided by bank, it’s necessary to take care of banking security.

28
5.4 T – TEST:

5.4.1 HYPOTHESIS:

Ha: There is a significant difference between education and satisfaction level of banks.

H0: There is no significant difference between education and satisfaction level of banks.

One-Sample Statistics
N Mean Std. Deviation Std. Error Mean

EDUCATION 120 3.175 .8856 .0808

LOGIN /SIGNOFF
120 2.13 .875 .080
ARE EASY
LACK OF
SECURITY IN 120 2.55 1.003 .092
TRANSACTION
LACK OF
APPROPRIATE 120 2.46 1.012 .092
SOFTWERE

One-Sample Test
Test Value = 0

95% Confidence Interval of the

Difference
t df Sig. (2-tailed) Mean Difference Lower Upper

EDUCATION 39.274 119 .000 3.1750 3.015 3.335

LOGIN/SIGNOFF
26.601 119 .030 2.125 1.97 2.28
ARE EASY
LACK OF
SECURITY 27.852 119 .055 2.550 2.37 2.73
TRANSACTION
26.619 119 .064 2.458 2.28 2.64

INTERPREATATION:

From the result of T-Test, the significant value is greater than 0.05 so the null
hypothesis is accepted which means there is no significant difference in education and
satisfactory in the banks.

29
5.5 CORRELATION:

Descriptive Statistics
Mean Std. Deviation N

EDUCATION 3.175 .8856 120

PAYTM 2.00 .000 81
GPAY 3.00 .000 35
AMAZONPAY 4.00 .000 27
PHONEPE 5.00 .000 38

Correlations
AMAZON PHONEP
EDUCATION PAYTM GPAY PAY E

EDUCATION Pearson Correlation 1 .a .a .a

Sig. (2-tailed) . . . .
N 120 81 35 27 38
PAYTM Pearson Correlation .a .a .a .a .a
Sig. (2-tailed) . . . .
N 81 81 20 25 13
GPAY Pearson Correlation .a .a .a .a .a
Sig. (2-tailed) . . . .
N 35 20 35 11 10
AMAZONPAY Pearson Correlation .a .a .a .a .a
Sig. (2-tailed) . . . .
N 27 25 11 27 4
PHONEPE Pearson Correlation .a .a .a .a .a

Sig. (2-tailed) . . . .
N 38 13 10 4 38

INTERPRETATION:

From the above table it’s clear that they are positively correlated education has impact
over type of application that used for transaction.

30
5.6 REGRESSION:

Multiple Linear Regression is done for the construct in the study. The dependent
variable is Education. The Independent variable are Language and Information content by
banks, Easy to find and Change the Information in their account, feel the system is user friendly
and easy to follow the instruction in the website.

Descriptive Statistics
Mean Std. Deviation N

EDUCATION 3.175 .8856 120

LANGUAGE AND
1.425 .7409 120
INFORMATION CONTENT
EASY TO FIND AND
CHANGES THE
1.717 .8714 120
INFORMATION IN YOUR
ACCOUNT
FEEL OF SYSTEM IS
1.408 .7503 120
USER FRIENDLY
EASY TO FOLLOW THE
INSTRCUTION IN THE 1.692 .8773 120
WEBSITE

Correlations

EASY TO FIND EASY TO

LANGUAGE AND CHANGES FEEL OF FOLLOW THE
AND THE SYSTEM IS INSTRCUTION
INFORMATIO INFORMATION IN USER IN THE
EDUCATION N CONTENT YOUR ACCOUNT FRIENDLY WEBSITE

Pearson EDUCATION 1.000 .027 .119 -.071 -.190

Correlation LANGUAGE
AND
.027 1.000 .188 .063 -.197
INFORMATION
CONTENT

31
 EASY TO FIND
AND CHANGES
THE
.119 .188 1.000 .088 .061
INFORMATION
IN YOUR
ACCOUNT
FEEL OF
SYSTEM IS
-.071 .063 .088 1.000 .040
USER
FRIENDLY
EASY TO
FOLLOW THE
INSTRCUTION -.190 -.197 .061 .040 1.000
IN THE
WEBSITE
Sig. (1-tailed) EDUCATION . .387 .097 .222 .019
LANGUAGE
AND
.387 . .020 .247 .015
INFORMATION
CONTENT
EASY TO FIND
AND CHANGES
THE
.097 .020 . .168 .255
INFORMATION
IN YOUR
ACCOUNT
FEEL OF
SYSTEM IS
.222 .247 .168 . .333
USER
FRIENDLY
EASY TO
FOLLOW THE
INSTRCUTION .019 .015 .255 .333 .
IN THE
WEBSITE
N EDUCATION 120 120 120 120 120
LANGUAGE
AND
120 120 120 120 120
INFORMATION
CONTENT

32
 EASY TO FIND
AND CHANGES
THE
120 120 120 120 120
INFORMATION
IN YOUR
ACCOUNT
FEEL OF
SYSTEM IS
120 120 120 120 120
USER
FRIENDLY
EASY TO
FOLLOW THE
INSTRCUTION 120 120 120 120 120
IN THE
WEBSITE

Model Summary

Adjusted R Std. Error of

Model R R Square Square the Estimate

1 .245a .060 .027 .8735

Coefficientsa

Standardized
Unstandardized Coefficients Coefficients

Model B Std. Error Beta t Sig.

1 (Constant) 3.451 .306 11.290 .000

LANGUAGE AND
-.043 .113 -.036 -.382 .703
INFORMATION CONTENT

EASY TO FIND AND

CHANGES THE
.147 .094 .145 1.560 .121
INFORMATION IN YOUR
ACCOUNT

FEEL OF SYSTEM IS USER

-.086 .107 -.073 -.802 .424
FRIENDLY

33
 EASY TO FOLLOW THE
INSTRCUTION IN THE -.204 .094 -.203 -2.182 .031
WEBSITE

a. Dependent Variable: EDUCATION

INTERPRETATION:

As a result of regression, the R square value is greater than 0.05.

34
 CHAPTER 6

FINDINGS & SUGGESSIONS

6.1 FINDINGS:

6.1.1 DEMOGRAPHIC PROFILING OF THE RESPONDENTS:

Out of 120 respondents who participated in the survey comparatively with female, the
male respondents are high (53.3%). Most of the respondents are between the age group of 18
– 25 years with percentage of (65%). The education qualification of the respondents was high
in PG (43.33). On our survey, we could find that Students are high (64%) when compared with
public& private sector employees and others.

6.1.2 DESCRIPTIVE ANALYSIS:

6.1.2.1 DEMOGRAPHIC PROFILE

The mean ranges from 1.533 to 3.175. The total value of mean is 10.225 and average
value of the mean is 2.045. The Highest Mean was 3.175 in Education. The Standard Deviation
ranges from 0.5010 to 1.2596. the total value of Standard Deviation is 4.7332and average value
of standard deviation is 0.94664. The Highest Value is 1.2596 in Income.

6.1.2.2 USAGE OF PAYMENTS IN APPS AND SATISFACTION OF SERVICES

PROVIDED BY BANKS:

The mean value ranges from 2.13 to 2.34 among the usage payments in apps the
customers are more comfortable and satisfied with due instalment enquiry followed by account
to account transfer facility provided by bank

6.1.2.3 BASED ON EASE AND CONVIENCE IN THE BANKS

The mean value ranges from 1.4 to 3.1.the customers are more likely to be satisfied
with error free transaction compared to other facilities provided by bank

6.1.2.4 BASED ON SERVICES BY THE BANKS:

The mean value ranges from 2.5 to 2.1, the customers are not satisfied with security
provided by bank, it’s necessary to take care of banking security.

35
6.1.3 T-TEST:

From the result of T-Test, the significant value is greater than 0.05 so the null
hypothesis is accepted which means there is no significant difference in education and
satisfactory in the banks.

6.1.4 CORRELATION:

From the above table it’s clear that they are positively correlated education has impact
over type of application that used for transaction.

6.1.5 REGRESSION:

As a result of regression, the R square value is greater than 0.05.

6.2 SUGGESSIONS:

 From the survey it’s clear that the bank is lacking in security transaction many people
found not satisfying with digital transaction
 Usage of different types of apps is varying based on the educational qualification from
the research it’s clear that most of the users are only college going students whereas
usage of others is limited
 Bank should make technology easy so that all types of people can be used it further
helps to improve the banks performance
 Education has direct impact on usage of digital transaction
 People also find its difficult use the software used by bank, ease of software is required

36
 BIBLIOGRAPHY

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Technologies in Indian Banking: A Study”
2. Saeid Khajeh dangolania (2011) “The Impact of Information Technology in Banking
System (A Case Study in Bank Keshavarzi IRAN)”
3. A. Pappu Rajan, D.Allen Rose Shamini (2018) “Information Technology plays a vital
role in banking sector: Future Banking Services”,
4. S. Bulomine Regi (2017) “PROBLEM FACED BY CUSTOMERS USING
TECHNOLOGICALBANKING SERVICES- AN INFERENTIAL ANALYSIS”
5. R Rajesh, A Palpandim (2015) “A Study on Impact Of Information Technology In
Banking Sector With Reference To Southern Tamilnadu”,
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of Banking Sector in India”,.
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“The Role of Information Technology on Banking Service Delivery:
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37