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A Study on

“CUSTOMER SATISFACTION ON DIGITAL BANKING”

A Management Thesis Report Submitted to VFSTR Deemed to be University,


Vadlamudi

In Partial fulfillment for the Award of the Degree of


“BACHELOR OF BUSINESS ADMINSTRATION”

Submitted By
BHARADWAJ PATNAIK
Roll No. 211FK01128

Under the Guidance of


Dr. KUMARASWAMY, Assistant Professor,
Department of Management Studies

DEPARTMENT OF MANAGEMENT STUDIES

VIGNAN’S FOUNDATION FOR SCIENCE, TECHNOLOGY, AND


RESEARCH (DEEMED TO BE UNIVERSITY), VADLAMUDI, GUNTUR
(2021-2024)
CERTIFICATE
This is to certify that this Management Thesis report entitled “A Study on Customer
Satisfaction on Digital Banking” is a bonafide work done by Bharadwaj Patnaik, with
Registered No. 211FK01128 under my guidance. This report was submitted to Department of
Management Studies of VFSTR Deemed to be University, Vadlamudi in partial fulfillment of the
requirements for the Award of the Degree of Bachelor of Business Administration during the
academic year 2023-2024.

Dr. Kumaraswamy, Dr. Sarita Satpathy


Assistant Professor, Professor & Head of Department
Department of Management Studies Department of Management Studies
DECLARATION

I, Bharadwaj Patnaik(211FK01128) hereby declare that the Management Thesis Research


Project titled “A Study on Customer Satisfaction on Digital Banking” is submitted by me
under the partial fulfillment the requirements for the award of the degree of Bachelor of
Business Administration under the esteemed guidance of Dr. KUMARASWAMY,
Assistant Professor of VIGNAN’S FOUNDATION FOR SCIENCE TECHNOLOGY
AND RESEARCH. I further confirm that the data and findings are result of my own
research. I further confirm this Management Thesis Research Project has not been
submitted at any other education institutions.

Signature

Bharadwaj Patnaik
ACKNOWLEDGEMENT

My most sincere and grateful acknowledgement are due to this sanctum VIGNANS
FOUNDATION FOR SCIENCE TECHNOLOGY AND RESEARCH, for giving the
opportunity to fulfill and for the successful completion of the project.

I sincerely thankful to DR. SARITA SATPATHY, Head of the department for her
valuable guidance and timely advice in the completion of the project.
I wish to express my profound regards to my project guide Dr. KUMARASWAMY,
Assistant Professor for his supervision in framing my project in an outstanding manner
and for his remarkable guidance and encouragement throughout the research project.
A special note of thanks to all the faculty members of Master of Business Administration
department, for sharing their years of experience and adding momentum to my project.
I will be failing in my duties if I fail to convey my deepest gratitude to my loving parents
for being so kind and supportive in bearing my patience during my research work.
Finally I am thankful to all my classmates, well-wishers and friends for supporting me
like a pillar during my work.

Bharadwaj Patnaik
TABLE OF CONTENTS

Sl.no Contents Page no.

1 Abstract and Keywords 1

2 Introduction 2

3 Objectives of the Study 3

4 Literature Review 3

5 Research Methodology and Method of 5


Analysis and Statistical Tools
6 Need of the Study 5

7 Data Analysis and Interpretation 6

8 Findings and Suggestions 14

9 Conclusion 15

10 References 15
Abstract
The rapid digitization of banking services has transformed the landscape of financial
transactions, necessitating a deeper understanding of customer satisfaction within digital banking
platforms. This study investigates the critical factors influencing customer satisfaction in digital
banking, focusing on usability, security, and the moderating effects of demographic variables
such as age and technological literacy.
This research determines about digital banking is the use of the internet, mobile phones,
and other electronic mediums as a delivery channel for banking services, which include all
traditional services such as balance enquiry, printing statement, funds transfer to other accounts,
bills payment and payment without necessarily visiting a bank. The digital banking is becoming
necessarily popular, it is necessary to survey and know the level of satisfaction of customers who
are using online banking. To know the level of satisfaction of customers we used primary data to
do the survey. I have mentioned 10 questions in my questionnaire. Building long term
relationships with customers has become a crucial strategy for most of the financial institutions
in today’s competitive financial markets.by this survey we get to know the how efficient is the
digital banking and how it is useful to its customers . The results indicate that both perceived
usability and security significantly contribute to customer satisfaction, with technological
literacy and age moderating these relationships.

Keywords
Banks, customers, Digital banking, satisfaction, Transactions.

1
Introduction
The world had now moved towards modern culture with more advantages and
developments which helps people to buy, sell, communicate etc. from one place. now a day’s
people are mostly dependent on technology and internet which paved way for digitalization.
Digital revolution in banking sector utilizes technology to allow a bank’s customers and other
stakeholders to interact and transact with the bank effortlessly through a variety of channels such
as the internet, wireless devices, atm’s and physical branches. digital banking has dependent onto
the web and the internet is a strong and cost effective medium for business to interact with the
customers. The number of digital banking services to customers continue to grow and the
internet offers huge opportunities for banks and other financial organizations. It can say that
finally banks are finding that a comprehensive online banking strategy is essential for success in
increasingly competitive financial service market. Competition in advancements in technology
and lifestyles have changes the face of banking in the present environment are seeking
alternative way to provide and differentiate their services. For success in growingly competitive
financial market, banks are finding that an extensive online banking strategy is essential which
also provides the security requirements.
Customer satisfaction in digital banking is influenced by various factors including
usability, security, personalized services, and customer support (Hanafizadeh and Khedmatgozar,
2018). The increasing reliance on digital solutions has further spotlighted the need for banks to
invest in robust digital channels that not only meet but exceed customer expectations. The
ongoing digital transformation in the banking sector has been accelerated by factors such as the
COVID-19 pandemic, which significantly increased online banking activities and shifted
customer behaviors and expectations (Sharma and Singh, 2020).
The importance of digital banking in today's world cannot be overstated. It has
fundamentally changed the way people manage their finances, offering unprecedented levels of
convenience, efficiency, and flexibility. With just a few taps on a smartphone or clicks on a
computer, customers can now check their account balances, transfer funds, pay bills, apply for
loans, and even invest in financial markets—all from the comfort of their homes or on the go.
Moreover, the COVID-19 pandemic has accelerated the adoption of digital banking, as
social distancing measures and lockdowns have prompted more people to embrace online and
mobile banking solutions. Banks and financial institutions have witnessed a surge in digital
transactions and interactions, reinforcing the importance of robust and user-friendly digital
banking platforms in times of crisis.

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Objective of the study
To study the level of satisfaction of the customers using digital banking.
To assess the role of trust and security measures enhancing customer satisfaction on Digital
Banking
To examine the effect of personalized services and customization options on customers
satisfaction in Digital Banking

Literature review
Ashima Tondon, Manisha Goel and Sunita Bishnoi (2016), Digital banking is regarded
as a delivery channel, which over a period of time has gain recognition. It is in fact growing in
many countries and has changed the traditional banking. This channel has been provided
competitive advantage to the banks. With the help of digital banking the consumer has an access
to number of services just at click of mouse.
Pallavi Mehta (2015), New channels used to offer banking services will drive the growth
of banking industry exponentially in future by increasing productivity and acquiring new
customers. During the last decade, Banking through Atm’s and internet has shown a terrific
growth, which is still in the growth stage. Digital banking allows customers of a financial
institution to conduct financial transactions on a secure website operated by institutions, Which
can be retailed or virtual bank, Credit union or building society.
Alam, Soni and Dangarwala (2010), The creators tried to find the components
influencing a bank’s choice to clasp digital banking in Vadodara-Gujarat. Especially, It
examined the relationship between the banks reception choice and market attributes. And
therefore the information for this review include the board information of 25 banks in Vadodara,
Gujarat covering the cash related years 2000-2001 to 2008-2009.
Kartikeya Bolar (2014), Creators and investors of the technology required information
about the customers assessment of their technology interface based on features and various
quality phases to make vital decisions in improving technology interface and compete on various
quality dimensions.
Ankit Kesharwani & Gajulapally Radhakrishna (2013), Different banks is on a condition
that digital banking services, as this may revolutionize their profits. Since digital banking in
India is remaining in its nascent stage, It’s essential for digital banking institutions to reinforce
reception and usage of internet as banking channel by their customers.
Uppal R.K. (2010) Conducted studies on customer complaints and this research showed
that excellent customer service and customer satisfaction help to sustain business growth.
Furthermore it showed that customer complaints are continuously increasing in the public sector

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banks adversely affecting customers satisfaction and performance. This research also suggested
that establishing a customer care center in all banks would help solve customers complaints on a
priority basis.
Mehta.R (2013) Examined the banking services and customer satisfaction-A study of
public and private sector banks in Navsari city. In the present research an endeavours has done to
gauge fulfillment level of the clients by looking at different elements that can affect on
fulfillment of client to bank situated in Navsari city of Gujarat. The principle center is done
around whether private bank bring more fulfillment then open part banks to the general
population and what are those components which are considered when individuals say they are
fulfilled.
Aseem Mathur (2014) in his article “customer’s Trends towards public and private
sector banks “Now ‘Anywhere Banking and ‘Anytime Banking’ has turned into a really.
Banking activities have increased enormously with a clear change in way offline and techniques
especially in the field of lending, from wholesale to retail character. Now, the customer is the
input component of the banking industry. The banking Industry can neither function without
customers nor is just acquiring definite number of customers adequate for their business. Finally
he conclude that 10most important factors influencing the selection of a bank they are safety of
funds, secured ATMs, ATMs availability, reputation of the bank etc., on the other
hand ,”Advertisements” was not ranked important Banks do not need to spend much on the part
of advertisements.
Pareek, V, (2014) research opined with a remark that out of several factors few casual
fundamentals factors like product attributes, employee characteristics, customer convenience,
bank tangibles, cost of transactions and customer communication contributes in customer
satisfaction in Indian banks. Interestingly convenience one of the 4 p.s i.e. marketing mix was
found to be an unimportant in deciding customer satisfaction in Indian banks (studied banks).
Rahi,S (2015) research findings show customers are move loyal towards those banks that
are facilitating internet banking services. Also a good brand image builds relationships between
banks and customers and enhances the customer loyality toward the bank. He also concluded
those banks that are giving the internet banking services to their customers, loyalty of those
customers are more towards the banks. He also suggested that if the brand image also plays a
significant role between loyalty of the customers and internet banking. The role of brand image
is positive in making a positive relationship between customers and internet banking.

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Research Methodology
In this research I used primary data for data collection , the current study was conducted using a
questionnaire method in the collection of data. Primary data was crucial to know the costumer
satisfaction towards digital banking. Primary data was collected having face to face conversation
using the questionnaire prepared.

Method of analysis and statistical tools


For the purpose of this study, a structured questionnaire was employed as the primary data
collection instrument, capitalizing on its effectiveness in gathering consistent and reliable data
across a wide demographic. The design of the questionnaire involved multiple-choice questions
that were specifically formulated to address the research objectives, focusing on aspects such as
usability, security, and overall customer satisfaction within the realm of digital banking. This
format not only facilitates easier and faster responses from participants but also enhances the
uniformity of the data collected, crucial for ensuring high-quality statistical analysis.
To administer the questionnaire, a diverse sample of digital banking users was selected, aiming
to encompass a wide range of ages, technological proficiencies, and banking habits to ensure the
generalizability of the findings. Once collected, the data was meticulously inputted into
Microsoft Excel for initial sorting and coding. Subsequent detailed statistical analysis was
conducted using IBM SPSS software, a robust tool renowned for its comprehensive data analysis
capabilities. This software facilitated a variety of statistical procedures, including regression
analysis and moderation testing, enabling a thorough examination of the relationships between
user satisfaction and its influencing factors. The use of these advanced tools ensured the
accuracy and reliability of the study’s results, providing solid empirical support for the research
conclusions.

Need of the study


The advancements in technology have revolutionized the way customers interact with banks,
leading to the rise of digital banking platforms. As customers increasingly shift towards digital
channels for their banking needs, it becomes crucial for banks to understand and study customer
satisfaction in digital banking (Khrais, 2018). By studying customer satisfaction in digital
banking, banks can gain valuable insights into the effectiveness and efficiency of their digital
banking platforms .This knowledge can help banks make informed decisions to improve their
digital services, enhance the customer experience, and ultimately gain a competitive advantage in
the digital banking industry (Wicaksono et al., 2020).This can also lead to increased customer
retention and acquisition, as satisfied customers are more likely to continue using digital banking
services and recommend them to others.

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Data analysis and interpretation

1.Do you use Digital banking?

Frequency Percent Valid Percent Cumulative


Percent
Valid Yes 80 86.0 86.0 86.0
No 13 14.0 14.0 100.0
Total 93 100.0 100.0

From the above graph and table, majority of respondents of yes is 86%, the following
respondents of no is 14%. By this we can say majority of respondents are using digital banking.

2.Which banking activity you prefer?


Frequency Percent Valid Cumulative
Percent Percent

Valid ATM withdrawal 39 41.9 41.9 41.9

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Cash less transactions 51 54.8 54.8 96.8

Visit to bank 3 3.2 3.2 100.0


branches

Total 93 100.0 100.0

From the above graph and table, majority respondents of cash less transactions is 54%, the
remaining respondents are followed by ATM withdrawal is 41%, visit to bank branch is 3%.

3.In the below statement which do you agree?

Frequency Percent Valid Cumulative


Percent Percent
Valid Online banking 11 11.8 11.8 11.8
makes banking
easier
online banking 11 11.8 11.8 23.7
gives account
access 24/7
Online banking 12 12.9 12.9 36.6
saves time

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Online banking is 2 2.2 2.2 38.7
secure way of
dealing with
banking
All the above 57 61.3 61.3 100.0
Total 93 100.0 100.0

From the above graph and table, majority respondents of all the above is 61%, the remaining
respondents are followed by online banking saves time is 12.9%, online banking makes banking
easier is 11.8%, online banking gives access 24/7 is 11.8%, online banking is secure way of
dealing with banks is 2.2%.
4.Do you think Digital banking is useful?
Frequency Percent Valid Cumulative
Percent Percent
Valid Yes 92 98.9 98.9 98.9
No 1 1.1 1.1 100.0

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Tota 93 100.0 100.0
l

From the above graph and table, majority respondents of yes are 98.9%, the remaining
respondents are followed by no is 1.1%

5.Have you performed any of the following activites?


Frequenc Percent Valid Cumulative
y Percent Percent

Vali Tax payment 6 6.5 6.5 6.5


d
Purchased or sold 60 64.5 64.5 71.0
online products

Neither of these 27 29.0 29.0 100.0

Total 93 100.0 100.0

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From the above graph and table, majority respondents of purchase or sold online products is
64.5%, the remaining respondents are followed by neither of these is 29%, tax payment is 6.5%.

6.Did you feel insecure or problematic to do digital banking?


Frequency Percent Valid Cumulative
Percent Percent
Valid Yes 24 25.8 25.8 25.8
No 69 74.2 74.2 100.0
Total 93 100.0 100.0

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From the above graph and table, majority respondents are no is 74.2%, the remaining
respondents are followed by yes is 25.8%.

7.Rate the digital banking system?


Frequency Percent Valid Cumulative
Percent Percent
Valid Good 38 40.9 40.9 40.9
Average 25 26.9 26.9 67.7
Excellen 30 32.3 32.3 100.0
t
Total 93 100.0 100.0

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From the above graph and table, majority respondents of good is 40.9%, the remaining
respondents are followed by excellent is 32.3%, average is 26.9%.
8.How long have been using online transactions?
Frequency Percent Valid Cumulative
Percent Percent
Valid 1 to 5 years 79 84.9 84.9 84.9
more than 5 years 14 15.1 15.1 100.0
Total 93 100.0 100.0

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From the above graph and table, majority respondents of 1 to 5 years is 84.9%, the remaining
respondents are followed by more than 5 years is 15.1%.

9.Do you think this survey is useful?


Frequency Percent Valid Cumulative
Percent Percent
Valid Yes 84 90.3 90.3 90.3
No 9 9.7 9.7 100.0
Total 93 100.0 100.0

From the above graph and table, majority respondents of yes are 90.3%, the remaining
respondents are followed by no is 9.7%

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Findings
1. After analysing the data collected from respondents 3/4th of people is using digital banking.
2. Most of the people are preferring cashless less transactions rather than ATM’s and visit to
bank branch for withdrawal of money.
3. Most of the people are agreeing to the statement that digital banking is easier, saves time and
24/7 account access.
4. In this busy world most of the people are thinking that digital banking is more useful because
it is helping them to complete their financial transactions without going to the bank branch.
5. From the above respondents most of them preferring purchasing and selling online products
rather than tax payment by using digital banking
6. Most of the respondents are feeling that digital banking is the secure way of banking.
7. From the above survey most of the respondents are using digital banking from 1 to 5 years.
8. From this research around 75% of people doesn’t find Digital Banking as an insecure way of
Payment Method
9. According to the research the factors influencing the Customer Satisfaction are Duration of
Usage of Digital Banking, the Service Quality, Mobile Banking Features and Trust in
security.

Suggestions
1. The study suggests to stress the importance of transparent communication with customers
regarding changes to digital banking services, updates to terms and conditions, and any
incidents or disruptions affecting service availability. Advocate for proactive
communication channels to keep customers informed and maintain trust and satisfaction.
2. Banks should not take more charges from their customers for availing digital banking
services.
3. Government has to take step forward to launch various apps related to digital banking to
be used like BHIM app, YONO app, etc.
4. Advocate for continued investment in technology infrastructure and digital capabilities to
enhance the functionality, security, and reliability of digital banking platforms. Highlight
the importance of staying abreast of technological advancements and adopting emerging
technologies to meet evolving customer expectations.
5. This Research suggest to secure digital banking from remaining customers to prompt this
service through advertising company.

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6. This Study suggests to Propose educational initiatives to improve digital literacy among
customers and empower them to make informed decisions about their financial
management. Suggest the development of online tutorials, webinars, and educational
resources to familiarize users with digital banking features and security best practices.
7. The research recommends the implementation of advanced security measures to protect
customer data and prevent fraud in digital banking transactions. Encourage banks to
leverage biometric authentication, artificial intelligence (AI), and blockchain technology
to strengthen security protocols and build trust with customers.

Conclusion
From the above research study it can be shown that digital banking is becoming
necessary and is fundamentally changes the banking industry worldwide. The research study
shows that there are various banking activities such as cash less transactions, ATM’s, visit to
bank branch but most of the respondents are preferring cash less transactions (digital banking).
As per the study 98% of the respondents are feeling that digital banking is more useful and it is
also the best medium of transaction purpose. Most of the people are agreeing to the statement
that digital banking is moreeasier, 24/7 account access, secure way of banking than cash
transactions, it also saves time. By the survey respondents there is high level of customer
satisfaction in digital banking. Overall, we can say that the digital banking services could
become improved by establishing orientation programmes to educating and explaining about the
benefits of digital banking services.

References
1. Hanafizadeh, P., & Khedmatgozar, H. R. (2018). The mediating role of the dimensions of the
perceived risk in the effect of customers' awareness on the adoption of Internet banking in
Iran. Electronic Commerce Research, 18(4), 841-865.
2. Sharma, G., & Singh, A. (2020). Impact of COVID-19 on consumer behavior and the
implications for banking services. Telematics and Informatics, 55, 101473.
3. Dr. Surajit Gosh Dasitdar (2018), Faculty Department of Marketing ,EILM, Affiliated to
Vidyasagar University, India and Dr.Rajib Kumar Das (2018), faculty, Department of
Economics, EILM Affiliated to Vidyanagar University , India. Customers motivation to
adopt digital banking: A case study of HDFC Bank in Kolkata , IBSN :978-93-86171-94-8.
4. Inder Pal Singh S/o Roop Singh, Dr. Payal Bassi (2017), student of M.Phil Desh Bhagat
University Punjab, Customer Satisfaction with Internet Banking in Public and Private Bank,
International Journal of Engineering Sciences and Research Technology, ISSN : 2277-9655.

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5. S.V. Mohana sujana (2018), Academician, Sri Kanyaka Parameswari Arts & Science
College for Women, Digitalization in Banking Sector, International Journal of Research and
Analytical Reviews, E-ISSN 2348-1269, P- ISSN 2349-5138.
6. Anish Kumar et al (2016) Internet Banking - Benefits And Challenges. Vol-1 Issue-1 2016
IJARIIE-ISSN(O)-2395-4396.
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8. Mahmadi (2016). Computer Security Issues in Online Banking: An Assessment from the
Context of Usable Security. International Engineering research and Innovation symposium.
Computer Security Issues in Online Banking: An Assessment from the Context of Usable
Security.
9. Mohana sujana (2018) DIGITALIZATION IN BANKING SECTOR. IJRAR August 2018,
Volume 5, Issue 3 www.ijrar.org (E-ISSN 2348-1269, P- ISSN 2349- 5138).
10. Mohsen Mazaheri Asada et al (2016) Prioritizing Factors Affecting Customer Satisfaction in
the Internet Banking System Based on Cause and Effect Relationships. 2212-567. Published
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11. Laith T. Khrais, American Journal of Applied Sciences(2018) The Impact Dimensions of
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business and management, (2020) Analysis The Effect Of Information Technology
Capability, Business Innovation, Digital Disruptions And Digital Disruptions Reaction on
Sustainable Banking Performance.

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