Summer Internship Project Report

On
Internet and Technology Impact on customer of Axis Bank
At
Axis Bank

Prepared By
Manali Hirpara
(91800323037)
Guided By
Dr. Meeta Mandaviya
(H.O.D. of M.B.A.MU)

A Report Submitted to
Marwadi University in Partial Fulfillment of the Requirements for the
MBA in Faculty of Business Management

July – 2019

MARWADI UNIVERSITY
Rajkot-Morbi Road, At & Po. Gauridad,
Rajkot-360003, Gujarat, India.
 STUDENT DECLARATION

I hereby, declare that the Summer Internship Project Report Work entitled “Internet and
Technology Impact”, at Axis Bank submitted in partial fulfillment of the requirements for
the award of the degree of Master of Business Administration (MBA) of Marwadi
University, Rajkot, India is my ideas in my own words and where others' ideas or words have
been included, I have adequately cited and referenced the original sources. I also declare that I
have adhered to all principles of academic honesty and integrity and have not misrepresented
or fabricated or falsified any idea/data/fact/source in my submission.
This authentic work has been carried out by me under the supervision of Dr. Meeta
Mandaviya I also declare that the content of this project report does not form a basis for the
award of any previous degree to anyone else.
I understand that any violation of the above will be cause for disciplinary action by the
university and can also evoke penal action from the sources which have thus not been properly
cited or from whom proper permission has not been taken when needed.

Date:

Place: Rajkot

Signature of the Student

Marwadi University, Rajkot Page - I

 COMPANY CERTIFICATE

Marwadi University, Rajkot Page - II

 UNIVERSITY CERTIFICATE

Marwadi University, Rajkot Page - III

 PREFACE

In the Present fast moving globalize economy, only theoretical knowledge is not
sufficient for an individual to perform efficiently to bridge the gap between theory and
practical.

The students required training in any organization in subject like marketing, Human
Resource, Finance or information technology.

Summer Internship Program is a starting to the final Placements that the students
will be getting. It is during these 45 days of exposure to the industry that the students can
make a mark of challenging work, knowledge and ethics on the host organization.

Summer internship program would also be a great learning experience science it

enables the students to apply theory to practice and observe and learn the current trends in
the market.

Marwadi University, Rajkot Page - IV

 ACKNOWLEDGEMENT

I am heartly thankful to all the persons who contribute their valuable time and helped
me in preparation of this project report. There are many people behind making of this report,
without their help and guidance, this report would never made possible.

First, I would like to thank to branch Manager Mr. Suraj Trivedi to giving me this
golden opportunity. I also wish to express my thanks other senior employees of the company
for providing me valuable information which help in completion of the report.

I like to thank to Dr. Sunil Jakhoria sir, for giving me an opportunity by including to
learn practical issues in the corporate world. I would like to thank to Dr. Meeta Mandaviya
mam for her timely support and guidance in completion of my project report. I also wish to
express my thanks to Dr. Alpesh Gajera sir who gave me full support to handle this report.

I heartly like to special thanks to my parents because of whom I am able to get such
great opportunity.

Marwadi University, Rajkot Page - V

 ABSTRACT

I have done my summer internship at Jasdan Axis Bank. During my internship I get
practical knowledge about the Banking. In that research study I find that how technology and
Internet Banking affect to the Axis Customers.

In that report many chapters are included, first chapter shows the basic information of
banking industry. Next chapter are introduction of the Internet and Technology impact on
Banking. And then core part of the report if research methodology in that data analysis done
through chart form.

On that analysis basis findings & suggestion are prepare. For analysis of the Internet
and Technology impact on Axis Customers I have used Questionnaire fill up from the
customers. From the analysis I find that Most of the people admit that Internet banking and
Technology updates are useful for them and 95% people accept it. Other hand 5% people are
not Accept it because they all are not aware about what Internet banking is and what are the
benefits for the updations of technology.

Marwadi University, Rajkot Page - VI

 TABLE OF CONTENT

Sr. No. Particular Page No.

1. Part: A General Information
1.1 Background of study 1
1.2 Growth and Evolution of Industry 2
1.3 Key Indicators & Future trends of the Industry
a. World Market Analytical Data 5
b. Country Market Analytical Data 6
c. State Market Analytical Data 7
d. Pestel Analysis of Banking Industry 8
2. Part: B Problem Identification
2.1 Introduction of Study 10
2.2 Rational of the Study 12
2.3 Research Problem/ Research Questionnaire 13
2.4 Identification of Research gap 14
2.5 Literature Review 15
2.6 Research Objective 18
2.7 Research Methodology
2.7.1 Census/Population 19
2.7.2 Sample 19
2.7.3 Sampling Method 19
2.7.4 Data Collection Method 19
2.7.5 Data Collection Instruments 19
2.7.6 Data Analysis Method 19

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 2.7.7 Hypothesis Formulation 20
3. Part : C Data Analysis & Interpretations
3.1 Reliability & Validity of Scale 22
3.2 Data Analysis & Interpretation 23
4. Results & Findings 41
5. Conclusion 42
6. Suggestions 43
7. Limitation of the study 44
8. Contribution of the study 45
9. Bibliography & References 46
10. Annexures 47

Marwadi University, Rajkot Page - VIII

 Part A: General Information

1.1 Background of Industry

A bank is an establishment that collects cash from those |people who have it in spare or
who are saving it out of their financial gain and lend this cash out of those who require it.

The origin of the word “Bank” is said to have derived from French word “bicolor
BANCUS” or “BANC” which means BENCH. Also another view is that the bank is derived
from German word “BACK” which means JOINTSTOCK FUNDS. A Bank may be a business
or state establishment that gives money service, as well as provision cash in varied forms,
receiving deposit of cash, lending money and processing transactions and creating of credit.

The money to lend primarily come from deposit in checking and saving accounts,
certificates of deposit and other deposit accounts that consumers and business set up with bank.
Technology is having major impact on the banking industry. For example, many routine bank
service that required a letter, such as making a withdrawal or deposits are now available through
ATMS that allow people to access their account 24 hours a day.

The fast Transformation in banking industry over the last decade has made the industry
tough, spotless, clear, effective, faster, disciplined and a lot more competitive. The industry in
India encompasses a Broad campaign of history that covers the standard banking follow from
the time of Britishers to the reforms amount, nationalization to privatization of bank and now
increasing numbers of foreign banks in India. So, banking in India has been through a long
journey. Rural banking and micro banking are two gateways for the Indian banks to grows and
compete with international banks.

The use of technology has brought a revolt in the working style of the banks and it has
pervaded each and every aspect of human life in a drastic manner. Arrival of anytime, anywhere
banking has become possible due to technology adoption.

Mobile phone, Digital cameras, Dish TV are now common household goods and no
more come in category of luxury items. Together with that the entry of plastic money has
opened new path for cashless transaction considered safer and more convenient than watching
every time whether the wallets are still struck in our fashionable pockets, vanity bags or not
when we move out for shopping or on journeys.

Marwadi University, Rajkot Page - 1

 1.2 Growth and Evolution of the Industry

Indian Banking sector consist of 27 public banks, 21 private banks, 49 foreign banks
and 56 regional rural banks. Indian Banking sector has registered strong growth in the past
decade. Demand for loans has grown for both corporate & retail, particularly in service, real
estate, consumer durables & agriculture allied sectors. Government efforts to promote banking
technology and expansion in rural areas have significantly improved the financial inclusion in
the past few years. Sectorial level employment data(2017) suggests that Bank are providing
huge employment opportunities in the country, nearly around 21% of total employment and is
among the top 5 best growing sectors of India.

 Banking Sector Continues to Grow at a Healthy Pace

 Growth in Credit take-overs

During FY07-18, the total lending by banks has increased from US $429.92 billion to
$1347.18 billion at a CAGR of 10.94%.

The high demand is aided by strong economic growth, rising disposable incomes,
increasing consumerism & easier access to bank credit.

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  Growth in Indian bank Deposit:

Deposit has reached US$1.7 trillion in the FY18 at a CAGR of 11.66%

Strong growth in savings, rising disposable income levels, improved banking system,
digitalization, etc.

 Banking Sector Assets (US $Billion):

Assets base of total banks has increased at a CAGR of 5.97 % to US$ 2.22 trillion during
FY13-18 with interest income CAGR of 6.61% over FY09-18.

Marwadi University, Rajkot Page - 3

 Evolution of Industry

Reserve Bank of India (RBI) said that, India’s banking sector is sufficiently
capitalized and well-regulated. The monetary and economic conditions within
the country area unit so much superior to the other country within the world. Credit,
market and liquidity risk studies suggest that Indian banks are generally flexible and have
observe the global downturn well.

Indian banking industry has recently observe the roll out of innovative banking
models like payments and small finance banks. RBI’s new measures might go an
extended approach in serving to the restructuring of the domestic banking system.

The digital payments system in Republic of India has evolved the

foremost among twenty five countries with India’s cash Service (IMPS) being the
sole system at level five within the quicker Payments Innovation Index (FPII)

Marwadi University, Rajkot Page - 4

 1.3 Key Indicators and Future Trends of the Industry

a. World Market Analytical Data

The global banking sector is significantly healthier currently than it had

been ten years ago, at the beginning of the world monetary crisis.

The largest banks within the world have considerably improved their capital
position within the years since the crisis. While there is lingering debate in some corners
that banks are still not sufficiently capitalized, it is undeniable that the dangerously thin
buffers of the pre-crisis era — where the Common Equity Tier 1 (CET1) capital ratio was
below 4% for some banks square measure gone as banks have raised extra equity over the
last decade to virtually treble their capital. Resilience has also been supported by the
development of recovery and resolution plans (RRPs) as mandated by regulators globally.

While it is true that the cost of compliance has risen dramatically since the crisis,
at the start of 2018 we believe the industry has crested the peak of regulatory-driven
investments in systems and talent. Although compliance costs are set to remain elevated
from their 2007 levels, we believe the cost of adapting to the post- crisis prudential
regulatory framework has stabilized and is set to decline.

Further, most banks have resolved the overwhelming

majority of gift conduct problems. Litigation expenses are falling (Figure 2), and although
banks continue to reshape their footprints (Figure 3), they are also signalling that the
associated restructuring costs will soon peak.

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b. Country Market Analytical Data
The Indian banking industry be created of twenty seven public sector banks, 21
private sector banks, 49 foreign banks, 56 regional rural banks, 1,562 urban cooperative
banks and 94,384 rural Cooperative banks, in adding to cooperative credit institutions.

As of Q3 FY19@ total credit expand by commercial banks surged to Rs 93,751.17

billion (US$ 1,299.39 billion) and deposits grew to Rs 120,818.92 billion (US$ 1,866.22
billion). Assets of public sector banks stood at US$ one, 557.04 billion in FY18.

Indian banks square measure progressively specializing in adopting integrated

approach to risk management. Banks have already hold the international banking
supervision accord of Basel II, and majority of the banks already meet capital requirements
of Basel III, which has a deadline of March 31, 2019.

Reserve Bank of Republic of India (RBI) has determined to line up Public

Credit register (PCR) an in depth information of credit info that is accessible to all or
any stakeholders. The Bankruptcy Code (Amendment) Ordinance, 2017 Bill has been
passed and is expected to strengthen the banking sector.

Deposits beneath Pradhan Mantri Jan Dhan Yojana (PMJDY) accumulated to Rs

988.74 billion (US$ 14.27 billion) and 355.4 million accounts were opened in India. In
May 2018, the Government of India provided Rs 6 trillion (US$ 93.1 billion) loans to 120
million beneficiaries under Mudra scheme. In May 2018, the total number of subscribers
was 11 million, under Atal Pension Yojna.

Rising incomes are expected to increase the need for banking services in rural areas
and therefore drive the growth of the sector. As of Sept 2018, Department of Financial
Services (DFS), Ministry of Finance and National Informatics Centre (NIC) launched J an
Dhan Darshak as a part of financial inclusion initiative. It is a mobile app to
assist folks find monetary services in Republic of India.

The digital payments revolution will trigger huge changes in the way credit is
disbursed in India. Debit cards have radically replaced credit cards because the most well-
liked payment mode in Republic of India, after demonetization. Debit cards garnered a
share of eighty seven.14 per cent of the total card spending.

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c. State Market Analytical Data

Growth in bank lending in Gujarat fell by almost half to 3.79 per cent in April -
June, from 6.6 per cent in January-March, according to the latest State Level Bankers’
Committee (SLBC) report.

Ever since 23 per cent growth in March 2014, bank advances have continued to
decelerate quarter-on-quarter.

Gross advances by banks in Gujarat stood at Rs 4, 77,480 crore in the quarter ended
June, up from Rs 4, 60,030 crore in the March quarter. In comparison with the June 2016
quarter, when advances grew by 1.69 per cent, the June 2017 quarter registered faster
growth of 3.79 per cent.

Vikramaditya Singh Khichi, convener of the SLBC, Gujarat, did not attribute the
fall to jitters in the run-up to the goods and services tax (GST). ”Credit off take has
moderated due to a sluggish economy. This has nothing to try and do with the GST,”
Khichi aforesaid.

Lending by nationalized banks grew 0.34 per cent during the quarter at Rs 1, 95,750
crore, against Rs 1, 95,079 crore in the March quarter.

Non-performing assets (NPAs) grew from Rs 30,475 crore in January-March to Rs

35,342 crore in April-June and were 7.4 per cent of total advances, the SLBC stated. Gross
advances were Rs 4,38,841 crore and gross NPAs Rs 29,734 crore, or 6.78 per cent of
advances in June 2016, these rose to Rs 4,60,030 crore and Rs 30,475 crore, or 6.62 per
cent of advances, in March 2017.

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b. Pestel Analysis of Banking Industry

 Political Factor
 Government laws affect the state of the banking sector. The government can intervene in
the matters of banking whenever, leaving the industry susceptible to political influence.
This includes corruption amongst political parties, or specific legislative laws such as labor
laws, trade restrictions, tariffs, and political stability.

 Economical Factor
 The banking industry and the economy are tied. How income flows, whether the economy
is prospering or barely surviving during times of recession, affects how much capital banks
can access. Spending habits, and the reasons behind them, affect when customers borrow
or spend funds at banks.

 Additionally, when inflation rapidly, the bank experiences the comeback. Inflation affects
currency and its value and causes unreliability. Foreign investors think twice before
providing their funds when a particular country’s currency value is high.

 Exchange rates also affect banks globally — stable currencies such as the US dollar impact
other currencies, spending habits, and inflation rates in other countries.

 Social factor
 Cultural influences, such as buying behavior and essential, affect how people see and use
banking options. People turn to banks for advice and assistance for loans related to business,
home, and academics. Consumers seek knowledge from bank tellers regarding saving
accounts, bank related credit cards, investments, and more.

 Consumers wish a seamless banking experience. And technology is developing to allow

consumers to buy products easier, without requiring assistance directly from banks

 Technological factors

 Once, it was expected to visit the local bank to make changes to financial accounts. But not
anymore.

 Technology is changing how consumers handle their funds. Many banks offer a mobile app
to witness accounts, transfer funds, and pay bills on smartphones.

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 Smartphones can scan cheques, and the bank can process it from their end, at their location.
This change helps to save paper and the need to drive directly to the branch to handle these
affairs.

 Debit cards are also changing. Chips have been implemented, requiring users to insert their
card into debit machines rather than swiping them. Other countries, such as Canada, have
implemented a “tap” option — tapping the debit card onto the device, requiring no pin, for
a transaction to complete. These changes make it easier on the user to make purchases
without required intrusion from banks.

 Even banks themselves are utilizing technology within the workplace. Telecommunicating
through virtual meetings is being embraced. It replaces the need for in-person meetings

 Environmental
 With the use of technology — particularly with mobile banking apps — the use for paper is
being reduced. Additionally, the need to drive directly to a branch to handle event is
minimized as well.

 Many issues are taken care of through mobile apps and online banking services. Consumers
can apply for credit cards online, buy cheques online, and have many of their banking
questions answered online or by phone. Thus, reducing individual environmental
footprints.

 Legal Factor

 The banking industry follows strict laws regarding privacy, consumer laws, and
trade structures to confirm frameworks within the industry. Such structures are required for
customers in the allocated country and for international users.

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 Part: B Problem Identification

2.1 Introduction of the Study

In day by day lives, people are influencing by new invented technologies, which they
used as one of their communicating tools. Banks are already been take in and use in such as
internet and mobile technologies. They used them as one of their financial services in order to
cater the needs of their customer in easy and accessible ways. A fact that part of the growing
economic condition of the country technologies give the big role in making banks more
productive. Without technology system, they cannot operate some of their transaction as fast
as possible. Mobile financial services is developing by using mobile phone.it consist two
commonly categories such as mobile banking service and mobile payment services. Through
these two categories, bank’s customers easily connected with their designated accounts to
check by using their mobile devices and of course to respond immediately the needs and wants
to both parties.

There are some positive impact of technology on Axis Bank:

 The biggest revolt came in banks is Digitization.
 Banking process is faster than before and more trust worthy. Maintenance and correction
of documents and records have become much faster and easier.
 Computerized banking also update the core banking system. With CBS all branches have
access to general centralized data are interconnected.
 With the innovation of MICR cheque processing system, the processing of cheques
becomes faster and efficient than before.
 With enlarging internet reach, internet banking was expand and now offered by almost
every bank. Through this, every transaction details and make inquiries can be performed
online without visiting the bank.
 It offered more transparency in transaction.
 The scope of frauds in bank is being minimized through the use of passwords, double
certification in online banking.
 Technology also advantage to competition among the banks which eventually provides
more advantageous services to people.
 With initiation of mobile banking, one can access their bank from anywhere-anytime.
Everything is one quick tap away.
 To facilitate better services, banks have introduced Automated Banking Service Solution
like cash Deposit Machine, Cheque Deposit Machine, Passbook Printing Machine thorough
the service have become easier.

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There are some Negative impact of technology on Axis Bank:

 The biggest negative impact on technology is loss of jobs as automation has replaced
number of jobs in banking sector.
 Through technology comes the threat of Cyber Attack a gap in the system, millions of data
can be lost in the blink of eye.

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 2.2 Rational of the study

I understand that what is the impact of internet and technology on Axis Bank and what
reason behind the impact of internet are and technology on Axis bank. I study the position of
technology in Axis Bank. I know about positive and negative Impact on Bank. I suggest Axis Bank
should be adopted more and more technology because Axis Bank is rapidly progressing with
increased customer base and due to newly improved and innovative facilities offered by
technology. As the coin has two sides on Indian banking sector the positive and the negative
side. The risk are high, through it can be minimized and Technology will be the backbone of
Axis bank in upcoming time.

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 2.3 Research Problem/Research Questions

Once a time, people have to spend three to four hours to go bank transaction sometimes
cost of transaction was more than that of money deposited or withdrawn. E-banking recognize
customer to conduct financial transaction on a secure website. Nowadays Technology is
becoming more popular among customers, most of the banks are providing e-banking facility.

Today, most of the customer are increasingly using the internet and technology banking
facilities available in banking sector. It reduce cost and saves time. From the customers
understanding towards technological banking provides a convenient and effective way to
manage finance that is easily accessible at 24hours a day in 7 days a week.

On the other hand, online banking has reliable problems such as lack of knowledge to
operate the technology, set-up cost, legal issues, lack of relationship among banker and
customer, securely and privacy issues.

For some people the internet and Technology really simplifies their life style, while for
others it is very much bully and complex. Therefore in this context, it is necessary to study of
what are the technology and internet impact on Axis Bank’s customers.

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 2.4 Identification of Research Gap

Internet banking is changing the whole banking industry, having effects on banking
relationship and its performance. So this aspect cannot be reduced and need to be researched
thoroughly. The literature review said that so far impact of internet banking on customer
satisfaction together with business performance has not been studied extensively. The most of
studies have focused on extent of adoption of internet banking, some have studied factor
affecting continued usage of internet banking. Similarly, some have investigated influence of
trust and its precursor on the adoption of e-banking. In the same manner, some have focused
on measuring impact of internet banking on customer satisfaction. Thus, most of studies were
limited to either one or two aspect of internet banking.

The advance study aims to full fill this research gap by studying the impact of internet
and technology banking on customer satisfaction and banking industry performance on the
basis of following dimensions viz. trust, service quality, perceived ease of use, usefulness,
customer satisfaction and commitment.

Marwadi University, Rajkot Page - 14

 2.5 Literature review

1) Arora (2003)

In this Research paper made an attempt to prove that technology had a defective role in
make transaction in the banking sector and the impact of technology had resulted into the
introduction of new products and services by various banks in India. Technology was a
facilitator for advancement in the core business of banking and not an end in itself.

2) Hogarth and Hilgert (2004)

In this Research paper highlighted that electronic banking technology represents a

variety of services, ATM services deposit to automatic Bill payment, Electronic Transfer of
Funds and computer banking. These services help in saving time, decrease the errors,
improving inaccurate accounting and preventing in manipulation of data.

3) P K Gupta (2008)

In this research paper objective of this study was to find out the behavior of customers
with respect to internet banking vis-à-vis conventional banking. The study found out that
internet banking was found to be easier and speedier than conventional banking and trust,
accuracy and confidentiality were the most important factors here.

4) Padhy P K and B N Swar (2009)

In This research paper investigated role of technology in banking and its impact on
perceived service quality in public, private and foreign banks in Orissa using a sample size of
300 customers. Foreign bank was found to be very close to expectations of customers followed
by ICICI and AXIS. Service quality in public sector banks was found to be very low

5) Malhotra and Singh (2010)

In this research study on Indian Banking shows that the private and foreign banks are
performing relatively better in offering a diversified range of products and services including
e-banking pattern and ownership of the ban were found out be major factors influencing the
extent of e-banking services for urban customers.

6) Kumbhar, Vijay (2011)

In this research paper it examined the relationship between the demographics and
customers’ satisfaction in internet banking, it also found out relationship between service
quality and customers’ satisfaction as well as satisfaction in internet banking service provided
by the public sector bank and private sector banks. The study found out that overall satisfaction
of employees, businessmen and professionals are higher in internet banking service. Also it
was found that there is significant difference in the customers’ perception in internet banking
services provided by the public and privates sector banks.

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7) Neetu Jain & DR. Pooja Malhotra (2012)

In their research paper “Demographic Factors Affecting the Adoption of Internet

Banking in India”. The goal of this paper to find out the demographic factors affecting adoption
of electronic banking in general and internet banking in particular in India. The data for this
study is based upon a survey of bank customers using a convenience sampling technique with
the aid of structured self-administered questionnaire. The survey was conducted during the
period of April 2012. The results of this study indicate that age, education, income, and
profession are the most influential demographic variables affecting Internet banking usage.
Using a mailed questionnaire with a response rate of 38.9 per cent, it was found that 40 percent
of the Indian Consumers who responded to this survey were already using internet banking
services. The result of this study provide interesting additions to knowledge of electronic
banking and contribute to our understanding og internet banking users as well as nonusers.

8) Jayshree Chavan (2013)

In this research paper “Internet Banking- Benefits and challenges in an Emerging

Economy.” This study presents new information technology has taken imperative place in the
future expansion of financial services, especially banking sector conversion are affected more
than any other financial provider groups. Increased use of mobile services and use of internet
as new division channel for banking transactions and international trading requires more
concentration towards e-banking security against deceptive activities. The development and
the increasing progress that is being experienced in the information communication technology
have brought about a lot of changes in almost all facets of life. In the banking Industry, it has
been in the form of online banking, which is now replacing the traditional banking practice.
Online banking has a lot of benefits which add value to customer’s satisfaction in terms of
better quality of service offering and at the same time enable the banks gain more competitive
gain over other competitors. This paper discusses some challenges in emerging economy.

9) Rakesh H M & Ramya (2014)

In this research paper titled “A Study on Factors Influencing Consumer Adoption of

Internet Banking in India” tried to examine the factors that influence internet banking adoption.
Using PLS, a model is successfully proved and it is found that internet banking is influenced
by its perceived reliability, perceived ease of use and perceived usefulness. In the marketing
process of internet banking service marketing expert should emphasize the benefits its adoption
provides and awareness can also be improved to attract consumer’s attention to internet
banking services.

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10) Renu Bagoria (2014)

In this research paper the main objective of this paper is to make a comparative study
between private sector banks and public sector banks and the adoption of various services
provided by this bank. The different services provided by these banks are M-Banking, Net
banking, ATM, etc. One of the services provided by the bank i.e. Mobile banking helps us to
conduct numerous financial transactions through mobile phone or personal digital assistant
(pda). Data analysis had been made in private sector banks like ICICI Bank, INDUSSIND
Bank, HDFC Bank, Axis Bank and public sector banks like SBI Bank, SBBJ, IDBI and OBC
Bank. These banks also provide Mobile Banking service. The overall study showed that the
transaction of Mobile banking through public sector bank is higher than private sector.

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 2.6 Research Objective

The motive of research is finding answers to questions through the application of

scientific methods. The motive of research is to find out the result which is hidden and which
has does not been discovered. Each research study has its own specific purposes.

This research has following research objective:

 To analyze the impact of technology adoption on the performance of Axis Bank.

 To study the customer perception towards technology and internet banking.

 To analyze the problems faced by the customers while using technological banking.

 To suggest various measures regarding internet banking through which accomplishment

and customer satisfaction can be improved.

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 2.7 Research Methodology

2.7.1 Census / Population

Individual between the age group of less than 20 to above 40 years are chosen as the
target population. The people under this age group who are customer of Axis Bank.

2.7.2 Sample

A sample of 122 customer is taken in order to carry the study.

2.7.3 Sampling Method

The method used in this study is simple random sampling. Each sample in the
population has equal chance to be picked up for the study.

2.7.4 Data collection Method

The two methods are used to collect the relevant data which are essential for the study.
These methods are:

Primary Data: Data is collected to obtain desired information through structured

questionnaire.

Secondary Data: Secondary data in this study is collected through internet, books and
authorized reports.

2.7.5 Data Collection Instruments:

The main research instrument used for this study was the questionnaire. The questionnaire
used for the study was divided broadly into two sections. These are the demographic section and the
characteristics of how internet and technology effect on axis bank’s customer. Under the demographic
section variables such as age of the respondent, gender, income level, occupation was asked.

2.7.6 Data Analysis Methods:

The collected data from both primary and secondary source will be tabulated in the
report in form of tables. The data collection through questionnaire will be analysed in details
and divided into categories of preferences.

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2.7.7 Hypothesis Formation:

Chi-Square Test

H0: There is no relationship between Internet and Technology Impact and Service of banks

H1: There is a relationship between Internet and Technology Impact and Service of banks

CHI-SQUARE = ∑ (fo-fe) 2 /Fe

FO = Observed Frequency
Fe = Expected Frequency

Category Fo Fe ∑(fo-fe)2 /fe

Strongly Agree 41 24.5 11.11
Agree 61 24.5 54.38
Neither Agree nor 18 24.5 1.72
disagree
Disagree 2 24.5 20.66
Strongly disagree 0 24.5 24.5
Total 122 122.37

Fe = ∑fo/n = 122/5 = 24.5

∑ (fo-fe) 2/fe = 122.37

Level of signification = 5% = 0.05

Degree of freedom = n-1 = 5-1 = 4

Critical value = ±9.4877

Marwadi University, Rajkot Page - 20

Comment:-

As the calculated value is more than the table value. Therefore the Null Hypothesis (H0) is
failed to accept.
Thus, it can be concluded that there is relationship between Internet and Technology Impact
and Service of bank.

Marwadi University, Rajkot Page - 21

 3. Part: C DATA ANALYSIS & INTREPRETATION

3.1 Reliability and Validity of Scale

An attitude has validity if it measures what is supposed to measure. In fact, validity is

the ability of an instrument to measure what is designed to measure.

Reliability is the tendency of respondent to respond in the same or in similar manner to

an identical or a near identical question.

A measure is said to be reliable when it obtain the same response from the same person
when the measuring instrument is manage to that person successively in similar or almost
similar circumstances.

Reliability:

To be reliable means this measurement must be consistent from individual to individual

surveyed, across settings and at different times.

Validity:

In the present study content validity was built by careful selection of which items to
be included. Each and every item are selected in a manner that they act in accordance with

The experts reviewed each items and have given their comments and rank them for
whether the item is important and is a representative sample of the area and in this way the
content validity of the questionnaire was improved.

Marwadi University, Rajkot Page - 22

 3.2 Data Analysis and Interpretation

1. What is your Gender?

43, 35%
Male
Female
79, 65%

Interpretation:

As per above chart majority of customers surveyed were Male customers who
constituted the major lump of 65% as compared to Female which are just 35%. This is
because very few females are visit the Bank.

Marwadi University, Rajkot Page - 23

2. What is your age?

16, 13%
5, 4%

Less than 20
20 to 30
27, 22%
30 to 40
above 40
74, 61%

Interpretation:

After looking this chart, it can be said that 20 to 30 age group are the main customer of
the banks as they occupied 61% of this graph and we can say that 30 to 40 age group are the
second customer of the banks as they occupied 22% of this graph.

We can say that youth are main customer of Axis Bank. High pay packages to todays
employed and large saving with the old age people (especially in urban areas) has made them
attractive potential customers.

Marwadi University, Rajkot Page - 24

3. What is your occupation?

6, 5%
7, 6%

10, 8% Service
Business
59, 48% Student
Farmer
40, 33% homemaker

Interpretation:

Above graph shows that most of the service class and business people to open Account
in comparison to the other occupation. This may be possible due to the facility of “Technology
and Internet banking” suiting their needs and preferences and also reduce their time.

We can also say that farmer people are less than service and business people because
of they are not aware about bank process and also they don’t know that which type of
technology use by Axis Bank.

Marwadi University, Rajkot Page - 25

4. What is your annual income?

14, 11%
28, 23%
Less than 1,00,000
17, 14% 1,00,000 to 2,00,000
2,00,000 to 3,00,000
3,00,000 to 4,00,000
28, 23% above 4,00,000
35, 29%

Interpretation:

Income does not make any difference as far opening the account in the Axis Bank is
concerned, as the chart is vividly revealing that more or less people of every segment of income
group have opened Account in Axis Bank.

Above chart shows that most of the people have Service and Business so we can say
that 75% people who have above 2,00,000 income.

Marwadi University, Rajkot Page - 26

5. Which category of the banks do you consider as most technologically
advanced?

23, 19%

Public Sector
Private Sector

99, 81%

Interpretation:

After looking this graph, it can be said that all customers are think that Private Sector
Bank are advanced in Technology and I marked that private sector bank provide best and fast
service to their customer. We can shows in above chart that 81% customers give their opinion
that private bank are consider as most technologically advanced. 19% customer are think that
public bank are better than private bank.

Marwadi University, Rajkot Page - 27

6. What kind of account do you have in Axis Bank?

23, 19%

Saving Account
Current Account
20, 16%
Fixed Account
79, 65%

Interpretation:

Saving account is the leading and attractive product for the Axis Bank as it occupies a
65% in this chart. It is clearly implying that this product has the ability to satisfy the customers.
In majority there were salary accounts are open for service person that include in saving
account. On the second hand the position of current account and fixed account has also been
helpful to increase the customer base but still their performance needs to be improved.

Marwadi University, Rajkot Page - 28

7. What attributes, while opening an account do you expect from Axis
Bank?

Variety of Product
9, 14%
Working hours
4, 6%
Less formalities of
34, 53% documents
Proper information
17, 27%

Quik Service

Interpretation:

When a customer visit any bank the first and foremost thing he/she expects is the proper
information of service provided by them. Second thing customer want that less formalities of
documents because now days people have no time for long formalities. And third thing
customer want that quick service because they need fast work from employees. Variety of
products do not make a big impact on customer behaviour for opening an account in any bank
if its service are efficient. But on the other hand bank can’t ignore working hours.

Marwadi University, Rajkot Page - 29

8. Are you aware about that what type of technology use by Axis Bank?

28, 23%

Yes
No

94, 77%

Interpretation:

Above chart shows that only 77% people are know about the Technology of Axis Bank.
And 23% people don’t know about what type of technology use by Axis Bank. This survey
conduct on some Semi urban people so that this people are not aware about that what type of
technology use in Axis Bank.

Marwadi University, Rajkot Page - 30

9. Do you think that Internet banking and technology update useful for
you?

6, 5%

Yes
No

116, 95%

Interpretation:

In this chart we can say that most of the people admit that Internet banking and
Technology updates are useful for them and 95% people accept it. Other hand 5% people are
not Accept it because they all are not aware about what Internet banking is and what are the
benefits for the updations of technology.

Marwadi University, Rajkot Page - 31

10. Which factor promotes you to use the new technologies in Banking?

REDUCE TIME OF TRANSACTION

58

COST OF EFFECTIVENESS
20

EASE OF USE
60

TECHNOLOGY KNOWLEDGE
22

0 10 20 30 40 50 60 70

Interpretation:

As per the above chart I can conclude that all of this factors are help in promote of new
technologies but more affect is reduce time of transaction and ease of use because the wish of
all customers is that they use internet banking in easy way in less time.

Marwadi University, Rajkot Page - 32

11. How familiar are you with mobile App of Axis Bank?

No Knowledge of mobile App

20, 17% 11, 9%

Beginner

28, 23%
Average Knowledge of Mobile
26, 21% App
Advance Knowledge of Mobile
App
36, 30% Expert

Interpretation:

In this chart there are 30% customer who have average knowledge of mobile app, 28%
customers are beginner who started using the mobile app, 21% are advance in mobile app, and
only 17% customer who are expert in the mobile app.

Its shows that most of the people have knowledge of mobile app and almost all the
people use Axis Mobile App.

Marwadi University, Rajkot Page - 33

12. How frequently do you use the Internet banking service per month?

15, 12%

1 to 3 times
18, 15%
53, 43% 3 to 8 times
8 to 12 times
above 8 times

36, 30%

Interpretation:

In this chart we can say that customers of Axis Bank use maximum of Internet banking.
Because most of customers are business people what they need repeatedly online transaction.
Most of business people are use internet banking service above 8 time per month. Service and
business people both are use 8 to 12 times service per month. On other hand I marked that
students are use internet banking service 1 to 3 times.

Marwadi University, Rajkot Page - 34

13. Are you satisfied on Technology usage on as given below Internet
banking service?

59
52 51 52
48 48
42
36 35
32 30
26
21 21
14
8 0 7 3 6 2 6 2 6 3

ACOUNT E- PAYMENT ACCOUNT TO DUE INSTALLMENT STATEMENT

INFORMATION & ACCOUNT INQUIRY REQUEST
BALANCE INQUIRY TRANSFER

Extremely Satisfied Satisfied Neutral Dissatisfied Extremely Dissatisfied

Interpretation:
Axis Bank provides above all service to their customers. Most of the Customers are
satisfied with all services. Rest of customers have a problem of statement request because
sometimes have a network issue and most of the customer are satisfied with Account
Information & Balance Inquiry, E-payment, Account to Account Transfer

Marwadi University, Rajkot Page - 35

14. Are you satisfied on Technology usage on as given below Mobile
banking service?

61
51 52
47 47
44
41
37

23 24
18 18
4 3 4 2 5 2 3 2

REWARD POINT SATUS PREPAID MOBILE SMS ALERTS ABOUT TRANSACTION STATUS
RECHARGE SPECIFIC INFORMATION
TO THE BANK
SERVICE/NEW PRODUCT

Extremely Satisfied Satisfied Neutral Dissatisfied Extremely Dissatisfied

Interpretation:

In previous chart says that most of the customer have proper knowledge of mobile
Banking and most of people are satisfied with it that which mobile banking services provided
by bank. Customers are believes that SMS alerts & prepaid recharge are best service that which
technology of Axis provide to their customers. Rest of the customer are not satisfied with
mobile banking because many problems are created through mobile banking like logging issue,
logout issue, and security issue. When customers purchase new mobile after that they forget
the password of mobile banking at that time they face many problems.

Marwadi University, Rajkot Page - 36

15. Do you think that information technology of Axis Bank provides
information of the right level of details?

2, 2%

18, 15%
Strongly Agree
41, 33%
Agree
Neither Agree nor Disagree
Disagree
Strongly Disagree
61, 50%

Interpretation:

All customers wish that we use that technology of bank they give right details, 33%
customers strongly agree on that. 50% customer agree on that, rest of the customer admit that
they neither nor Disagree on that, 2% customers are disagree that information provided by Axis
Bank. In this chart we can also say that one of customer not strongly disagree.

Marwadi University, Rajkot Page - 37

16. Do you face any problem of technology usage on ATM?

17, 14%

Often
55, 45%
Rarely
Never
50, 41%

Interpretation:

Some of customer said that when they use ATM sometimes they face some problem.
45% customer not suffer with ATM problems, 41% customers are rarely suffered, and 14%
repeatedly faces problem, because sometimes in cash account debit done but cash withdrawn
not done.

Marwadi University, Rajkot Page - 38

17.Do you face any problem of internet Banking?

11, 9%

Often
58, 48% Rarely

53, 43% Never

Interpretation:
Above chart says that 48% customers are not faces internet banking problems, 43%
rarely faces, 9% customers are said that they repeatedly faces problems . they said that during
statement request problems of logout and logging is there and password are major problems
faced by customers, sometimes it take lots of time to complete the transaction.

Marwadi University, Rajkot Page - 39

18.Please rate your Experience of using Axis Bank Internet Banking today.

Ease of logging in

24, 20% 26, 21%

Level of security offered

Ease transacting
16, 13%
20, 16%
Attractiveness

36, 30% Range of features & service

offered

Interpretation:
Above chart shows that customer rating their experience of why they using Axis Bank
Internet Banking today. 20% of customers give their rate because Ease of logging in, 16% think
that this is because of level of security offered and most of customers give high rating to ease
transacting while using Axis Bank Internet Banking.

Marwadi University, Rajkot Page - 40

 4. Results & Findings

From the above tables & charts the findings of the research study are as following, that
findings are helpful in to know about problem & solution of the research.
 Axis bank is the third largest of the private sector banks it’s provide best internet banking
service to their customer.

 Any transaction can be done just with click. The various innovation in Axis bank are
Electronic Fund Transfer, RTGS, ATM, Internet Banking, Mobile Banking services.

 The major findings of the study reflected that it take lots of time to complete the transaction,
possibility of making fund, connectivity problem are the major problems faced by
consumers while using Internet banking services.

 Free SMS alert facility enables customer to track their account on daily basis. This facility
is available.

 Most of the people admit that Internet banking and Technology updates are useful for them
and 95% people accept it. Other hand 5% people are not Accept it because they all are not
aware about what Internet banking is and what are the benefits for the updations of
technology.

 Most of the Axis customer have knowledge of mobile app and almost all the people use
Axis Mobile App.

 Customer think that if we can use Technology and internet banking then we can reduce
our time and we can do less formalities of documents because now days people have no
time for long formalities. And also customer want quick service because they need fast
work from employees.

Marwadi University, Rajkot Page - 41

 5. Conclusion

Analysis tell that customers who accept internet banking and technology differ from
others on such characteristics as age, income, activity and wealth in bank before the start of
usage. After adoption they tend to increase a gap in behavior. Internet banking and Technology
may be considered as a single from a customer about being a “good one”.
Internet banking is remote service, where access to account information and any
transaction is granted at any time from ay computer with an internet connection.
Internet Banking means a one type of self help financial services provided by the bank
for its customers by the medium of internet, including account information inquiry, account
transfer and online payments, etc. online Banking is the practice of making bank transactions
or paying bills through internet.
However, internet is not a straight blessing to the banking sector. Along with reduction
in cost of transaction, it has also brought about a new addition to risk.
The research report on internet and technology impact on customer of Axis Bank has
been great sources for knowledge in improve research ability.

Marwadi University, Rajkot Page - 42

 6. Suggestions

 Axis Bank has more scope in digital Banking so they have improve more technology so
that it become first largest of the private sector banks which provide best internet banking
service to their customer.

 Online services can be the future of the banking system and the number of internet banking
users is likely to increase.

 Axis Bank should be more aggressive while pitching the products and hammering to
customer about the mobile app and their usages.

 Axis Bank should give more information about internet banking to their customer. And also
Axis bank should spread the awareness among the customers related to internet banking
and technology use by Axis Bank.

 Some customer also suggest that Axis Bank should improve their system and network so
that customer does not have to face any problem related to statement request and other
services.

Marwadi University, Rajkot Page - 43

 7. Limitations of the study

 The primary Limitation to the generalization of these results is the study was based on a
very limited sample size hence cannot be called as representation of the views and opinion
of the majority.

 In rapidly changing technology and internet banking of Axis Bank, analysis can change very
quickly in one day or one segment.

 The study is confined to only Jasdan and Rajkot Axis Bank.

 In my research most of the respondent are from Jasdan. Jasdan is Semi Urban town still the
people over there know the proper usage of internet banking and technology. From this we
can interpret that there us positive impact of internet baking and technology on customer of
Jasdan Axis Bank.

Marwadi University, Rajkot Page - 44

 8. Contribution of the study

 The data from Jasdan and Rajkot Customer are investigated. We assume that it operates
similarly to others so the research could be applicable for the whole industry.

 It is useful for the students of the banking for who wants to studies on the digital
Banking.

 It is guide to Axis Bank which factor promote to customer to using new technology this
factor like reduce time of transaction, cost of effectiveness, Ease of use, Technology
Knowledge.

 It is useful to manager that what type of service expect customer from Axis Bank related
to Internet Banking and technology updations.

Marwadi University, Rajkot Page - 45

 9. Bibliography & References

Journal:

Chavan, J. (2013). Internet banking-benefits and challenges in an emerging

economy. International Journal of Research in Business Management, 1(1), 19-26.

SIPATONYANA, L., & JENEFA, L. (2018). INSIGHTS OF ELITE CUSTOMER: USER’S

PERSPECTIVE TOWARDS ONLINE BANKING. International Journal of Recent Advances
in Information Technology & Management (Online ISSN: 2581-3609), 2(2).

Kumbhar, V. (2011). Service quality perception and customers’ satisfaction in internet banking
service: a case study of public and private sector banks.

Kolodinsky, J. M., Hogarth, J. M., & Hilgert, M. A. (2004). The adoption of electronic banking
technologies by US consumers. International Journal of Bank Marketing, 22(4), 238-259.

Website:

https://www.ibef.org/industry/banking-india.aspx

www.axisbank.com

https://www.ibef.org/industry/banking-presentation

Marwadi University, Rajkot Page - 46

 10. Annexures

Questionnaire:
1. What is your Name?

2. What is your Gender?

Female
Male
3. What is your age?

Less than 20
20 to 30
30 to 40
Above 40

4. What is your occupation?

Service
Business
Student
Farmer
Homemaker

5. What is your annual income?

Less than 1, 00,000

1, 00,000 to 2, 00,000
2, 00,000 to 3, 00,000
3, 00,000 to 4, 00,000
Above 4, 00,000

6. Which category of the banks do you consider as most technologically advanced?

Public sector bank

Private sector bank

7. What kind of account do you have in Axis Bank?

Saving Account
Current Account
Fixed Account

Marwadi University, Rajkot Page - 47

8. What attributes, while opening an account do you expect from Axis Bank?
Variety of Product
Working hours
Proper Information
Less formalities of documents
Quick service

9. Are you aware about that what type of technology use by Axis Bank?

Yes
No

10. Do you think that Internet banking and technology update useful for you?

Yes
No

11. Which factor promotes you to use the new technologies in Banking?

Reduce time of Transaction

Cost of effectiveness
Ease of use
Technology Knowledge

12. How familiar are you with mobile App of Axis Bank?

No knowledge of mobile App

Beginner
Average knowledge
Advance Knowledge of Mobile App
Expert

13. How frequently do you use the Internet banking service per month?

1 to 3 times
3 to 8 times
8 to 12 times
Above 8 times

Marwadi University, Rajkot Page - 48

14. Are you satisfied on Technology usage on as given below Internet banking service?

1. Extremely 2.Satisfied 3.Neutral 4.Dissatisfied 5.Extremely

Satisfied Dissatisfied

Account
Information &
Balance Inquiry
E- Payment
Account to account
transfer
Due Installment
inquiry

Statement Request

15. Are you satisfied on technology usage on as given below mobile Banking service?

1. Extremely 2.Satisfied 3.Neutral 4.Dissatisfied 5.Extremely

Satisfied Dissatisfied

Reward point status

Prepaid mobile
recharge
SMS alerts about
specific information
to the bank service/
new products
Transaction status

16. Do you think that information technology of Axis Bank provides information of the right
level of details?

Strongly Agree
Agree
Neither Agree nor disagree
Disagree
Strongly disagree

Marwadi University, Rajkot Page - 49

17. Do you face any problem of technology usage on ATM?

Often
Rarely
Never

18. Do you face any problem of internet Banking?

Often
Rarely
Never

19. Please rate your Experience of using Axis Bank Internet Banking today.
Ease of logging in
Level of security offered
Ease of transacting
Attractiveness
Range of features & Service offered

Marwadi University, Rajkot Page - 50