A

SYNOPSIS

ON

RISK FACTOR & SECURITY ISSUES IN DIGITAL BANIKING OPERATION WITH

SPECIAL REFERENCE TO AMRAVATI CITY

Submitted By

Vaishnavi M. Sonar

(M.B.A.-IInd Year)

Under the Guidance of

Prof. R. A. Kubade

In the fulfillment of the requirement for the award of degree of

MASTER OF BUSINESS ADMINISTRATION

To

Sant Gadge Baba Amravati University, Amravati Maharashtra

Through

The Head

Department Of Management Studies-MBA

Prof Ram Meghe Institute of Technology & Research

Badnera-Amravati (Maharashtra)

2019-20
 CONTENTS
S.No Name of the Chapter Page No.

1 INTRODUCTION

2 REVIEW OF LITERATURE

3 RESEARCH METHODOLOGY

3.1 Research Problem Definition

3.2 Research Objectives

3.3 Research Design

3.4 Data Sources & Methods

3.5 Sampling Procedure-Universe, Sampling

Element, Sampling Method & Sample Size

3.6 Data Analysis & Interpretation

4 UTILITY OF THE RESEARCH

5 LIMITATIONS OF THE RESEARCH

6 SCHEME OF THE CHAPTERISATION

BIBLIOGRAPHY
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 (APPLICATION PROGRAM INTERFACE)
enabling cross-institutional service composition to deliver banking products and provide
transactions. It provides the ability 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 middle
ware 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.
What is digital banking?

Digital banking is the digitization (or moving online) of all the traditional banking
activities and programs that historically were only available to customers when
physically inside of a bank branch. This includes activities like:
 Money Deposits, Withdrawals, and Transfers
 Checking/Saving Account Management
 Applying for Financial Products
 Loan Management
 Bill Pay
 Account Services

History
Where it all began...

The need for computerization was felt in the Indian banking sector in late 1980s, in order
to improve the customer service, book-keeping and MIS reporting. In 1988, Reserve Bank
of India set up a Committee on computerization in banks headed by Dr. C. Rangarajan.

Banks began using Information Technology initially with the introduction of standalone
PCs and migrated to Local Area Network (LAN) connectivity. With further advancement,
banks adopted the Core Banking platform. Thus branch banking changed to bank banking.
Core Banking Solution (CBS) enabled banks to increase the comfort feature to the
customers as a promising step towards enhancing customer convenience through Any
where and Anytime Banking. Different Core Banking platforms such as Finacle designed
by Infosys, BaNCS by TCS, FLEXCUBE by i-flex, gained popularity.

The process of Computerization gained pace with the opening of the economy in 1991-92.
A major driver for this change was propelled by rising competition from private and
foreign banks. Several commercial banks started moving towards digital customer
services to remain competitive and relevant in the race.
Risk factor and Security Issues in digital banking
The term major issue refers to an adversely affects of the community, environmental
issues, political crises, social issues and economic crisis. For carrying out banking
transactions through the Internet, one needs to have some basic knowledge about
computers and the Interne, which to some extent, limits the numbers of people willing to
avail this facility. Many people who are out comfortable with computers and the Internet,
find it difficult to use this services. Therefore, online banking can be time-consuming for
the beginners. Moreover, some people find it difficult to trust completely mechanized
system for carrying out their financial transaction. Many times a simple mistake like
clicking a wrong button, may create a big problem. So, many individuals continue to worry
and wonder if they have properly executed the transactions while availing the online
banking facility.

Some Risks Factors and Security Issues related to digital banking

 Technology upgrade
 Cyber crime
 Traditional banking habits
 Security
 Less awareness among people.
 Less number of eligible people who coul oprate the platform.
 Technical issues
2. Review of literature

Ankit Kesharwani & Gajulapally Radhakrishna (2013)

In their research paper “Drivers and Inhibitors of Internet Banking Adoption in India”. This paper
research on different banks is on condition that e-banking services, as this would revolutionize
their profits. Since internet banking in India is still in its nascent stage, it is essential for e-banking
institutions to enhance reception and usage of internet as a banking channel by their customers.
This paper has reviewed the most of seminal studies in the area of diffusion of innovation and
makes an attempt to do an experimental research that looked into the factors that drives and
inhibits internet banking usage in India. An investigative factor analysis followed by a positive
factor analysis has been applied on 362 internet banking users. Findings resulted in seven factors –
perceived benefit, hacking and fraud risk, performance risk, computer selfefficacy, technology
intricacy, social influence, and pricing concerns. The results suggest that acceptance and usage of
internet banking services can turn into a fundamental concern for future research, as the drivers
overcoming the inhibitors over time at an influencing rate. Moreover, this study also compares the
findings with extant diffusion of innovation literature and identified several additional factors that
can affect internet banking adoption in India

Dr. Renu Arora and Dr. Surabhi Singh (2011)

In their research paper “Service quality of online banking services in public, private and foreign
banks in India” This paper present recent developments in information technology have led to
major changes in service providing organizations such as banks. Every bank realizes that they must
use information technology to survive in this era. Through information technology, banks can
better maintain the relationship with customers as customers tend to interact more with provided
services through information technology. The emergence of new technologies is enabling new
competitors to enter the financial services market quickly and efficiently. Therefore, it becomes
imperative for service providers to meet or exceed the target customers’ satisfaction with quality of
services expected by them. This paper presents customers’ perception of quality of online banking
services in terms of its constituent factors in public sector, private sector and foreign banks. A five
point continuum scale was prepared for measuring customer satisfaction with the service quality of
online banking services. The scale was prepared on the basis of five factors of service quality, i.e.,
tangibility, reliability, responsiveness, assurance and empathy. Mean scores were also calculated to
find out mean difference between factors affecting service quality of banking services and three
types of banks. Overall evaluation showed that private and foreign banks were performing better
than the public sector banks with regard to five factors.
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 a 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 per cent of the Indian consumers who
responded to this survey were already using Internet banking services. The results of this study
provide interesting additions to knowledge of electronic banking and contribute to our
understanding of Internet banking users as well as nonusers

Rakesh H M & Ramya T J (2014)

In their 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 services marketing expert should emphasize these benefits its adoption provides and
awareness can also be improved to attract consumers’ attention to internet banking services.

Pooja Malhotra & Balwinder SINGH (2009)

In their research paper “The Impact of Internet Banking on Bank Performance and Risk: The Indian
Experience”. The paper describes the current state of Internet banking in India and discusses its
implications for the Indian banking industry. Particularly, it seeks to examine the impact of Internet
banking on banks’ performance and risk. Using information drawn from the survey of 85 scheduled
commercial bank’s websites, during the period of June 2007, the results show that nearly 57
percent of the Indian commercial banks are providing transactional Internet banking services. The
univariate analysis indicates that Internet banks are larger banks and have efficiency ratios and
profitability as compared to non-Internet banks. Internet banks rely more heavily on core deposits
for funding than non-Internet banks do. However, the multiple regression results reveal that the
profitability and offering of Internet banking does not have any significant association, on the other
hand, Internet banking has a significant and negative association with risk profile of the banks
3. RESEARCH METHODLOGY
Research methodology is the way to systematically solve the problem. It may be
understood as the science of studying how research is done scientifically. In it we study the
various step that are generally adopted by researcher in studying his research problem
along with logic behind them and to map the customer satisfaction level for post purchase
behavior.

3.1 Research Problem

A research problem is a statement about an area of concern, a condition to be improved upon, a

difficulty to be eliminated, or a troubling question that exits in scholarly literature, in theory, or in
practice that point to the need for meaningful understanding and deliberate investigation. To find out
the problem is the first stage of research process. It represents translating the management problem
into research problem. It is right said, A problem well defined is half solved.

“Research methods are the particular strategies research use to collect the evidence necessary
for building and testing theories”

In this research we will indentify the risk factor and security issues in digital banking operation with
special reference to Amravati city.

3.2 Research Objective

 To find the awareness of the people towords the digital banking .

 To identify the risk factor in digital banking.
 To understand the security issues related to digital banking.
 To

3.3. Research design

The research design is the conceptual structure within which research is conducted; it constitutes
the blueprint for the collection, measurement and analysis of data. As such the design includes an
outline of what the researcher will do from writing the hypothesis and its operational
implications to the final analysis of data.
There are mainly 3 broad categories as follows:-

3.3.1. Exploratory Research Design.

 Exploratory research studies are also termed as formularize research studies. The main
purpose of such studies is that of formulating a problem for more precise investigation or of
developing the working hypotheses from an operational point of view. The major emphasis
in such studies is on the discovery of ideas and insights.

3.3.2. Descriptive Research Design.

Descriptive research studies are those studies which are concerned with describing the
characteristics of a particular individual, or of a group, whereas diagnostic research studies
determine the frequency with which something occur or its association with something else.
The studies concerning whether certain variables are associated are examples of diagnostic
research studies.

3.3.3. Causative Research;

In linguistics, a causative is a valence operation that indicates that a subject causes someone
or something else to do or be something, or causes a change in state of a non-volitional event.

The research design used for this study is of the descriptive type and Causal type.
Descriptive research studies are those studies which are concerned with describing the
characteristics of a particular individual or a group.

3.4 Data sources and Methods

After the research problem has been identified and selected the next step is to gather the essential data.
While deciding about the method of data collection to be used for the researcher, the researcher should
keep in mind two types of data, i.e. Primary and Secondary

 Primary Data:- The primary data are those which are collected afresh and for the first time.
Primary data has not been changed or altered by human beings; therefore its validity is greater
than secondary data.
 Secondary Data:-The Secondary data are those which are already been collected by an individual
and which have already been passed through the process. The review of literature in nay
research is based on secondary data. Mostly from books, journals and periodicals.

3.5 Sample Design

 A sample design is a definite plan for obtaining a sample from a given population. It refers to the
technique or the procedure the researcher would adopt in selecting items for the sample. Sample
design determine before data are collected.

1. Sample Universe :

2. Sample Size :

3. Sampling Technique :

3.6 Data analysis and interpretaion

The data collected through the structured questionnaire were coded into excel sheet. The data was
analyzed and tested using graphical tools like bar chats and histograms, frequency accumulation and
descriptive statistics (mean) and measures of dispersion (Standard Deviation).

4. UTILITY OF THE RESEARCH

5. LIMITATIONS OF THE RESEARCH

The study will have the following limitations:

 The study of this research is limited to Amravati city only.

 The attentive time for the study is one year.
 The study is purely based on academic purpose.

6. SCHEME OF THE CHAPTERISATION

 Introduction
 Review Of Literature
 Research methodology
 Data analysis & Interpretation
 Conclusions & Suggestions

Bibliography

Signiture Signiture
Reseacher Name- Researchers`s Guide Name-

Ms.Angha Dange Prof.Minal Nistane