PROJECT REPORT

on
FACTOR EFFECTING INTENTION TO USE
ONLINE FINANCIAL SERVICES
Synopsis submitted in partial fulfillment of requirements for
Bachelors of Business Administration
FINANCIAL SERVICES &MARKETING

Mentors Name-

Mr. VIPUL SHARMA

COURSE COORDINATOR of BBA(FSM)

UPES- Dehradun
Submitted by-
PRANAV MEHROTRA
SAP ID-500034307
Enrolment Number:R128214032
BBA FINANCIAL SERVICES & MARKETING
2014-2017
College of Management & Economics Studies, UPES
 /

DECLARATION

I declare that the work embodied in this dissertation, entitled EFFECT OF SUPPLY
INTEGRATION AT E- COMMERCE , is the outcome of my own work conducted
under the guidance of Prof. vipulsharma at College of Management & Economic
Studies , University of Petroleum and Energy Studies, Dehradun.

I declare that the dissertation comprises only of my original work and due
acknowledgement has been made in the text to all other material used.

Signature & Name of Student

 CERTIFICATE

This is to certify that the research work entitled EFFECT OF SUPPLY

INTEGRATION AT E-COMMERCE is the work done by under my guidance and
supervision for the partial fulfillment of the requirement of Int. BBA Financial
Services &Marketing ,College of Management & Economic Studies , University of
Petroleum and Energy Studies, Dehradun.

Signature & Name of Supervisor

Designation

Date
 ACKNOWLEDGEMENT

I, PRANAV MEHROTRA student of Int. BBA, with specialization in FINACIAL

SERVICES & MARKETING 6th Semester, College of Management & Economic
Studies , The University of Petroleum and Energy studies have made this
dissertation on EFFECT OF SUPPLY INTEGRATION AT E-COMMERCE

The research has been collected largely from secondary sources of information and
the method that has been adopted is doctrinal in nature for the collection of
information such as international treaties, websites, books, commentaries, journals
and articles etc.

I would like to thank my mentor Prof. Vipulsharma for his guidance and support and
would even like to thank my friends for their suggestions.

Table Contents

Chapter 1: General Introduction of Financial system in INDIA.08

Chapter 2: Introduction of ING Group...10

Chapter 3: Introduction of E-Financial...17

Chapter 4: Research Methodology ..18

Chapter 5: Literature Review .26

Chapter 6: Objective of study..29

Chapter 7: Methodology.30

Chapter 8: Questionnaire....32

Chapter 9: Data analysis35

Chapter 10: Findings42

Chapter 11: Conclusions43

 Executive summary

The project Report on:

Services provided by the bank through online financial services .

Project Objectives:

Find the customer satisfaction relating to online financial services

To study the awareness of onlinefinancialservices .

Benefits of study:

Awareness among customers for onlinefinancial.

It gives direction to research tools, research types and techniques.
Availability should be increased by using various services Strategy.

Acknowledgement
My sincere gratitude to Mr. Amit Dahra, sales manager, Agra Branch, ING
VYSYA BANK who gave necessary directions on doing this project to the best of
my abilities.

I am highly indebted to Mr. Nitin Kumar, Branch Manager, who provided me

with the necessary information and also for the support extended out to me in
the completion of this report and his valuable suggestion and comments on
bringing out this report in the best way possible.

Later on I would like to thanks Dr. VandanaSrivastava and other faculty members
who taught me that how to do project through appropriate tools and techniques.

Signature

PRANAV MEHROTRA
 Declaration

I am PRANAV MEHROTRA.This project report is my original work and has not

been submitted in any form as a part of any other project.

Information derived from the published and unpublished work of other has been
acknowledgement in the bibliography.

PRANAV MEHROTRA

Chapter 1
 Introduction of Financial system in INDIA

Financial system of a nation is the shadow of nations economy. A healthy and

profitable financial system is just like the backbone of nations economy. It is
necessary for a nation to achieve growth and remain stable in this global world and
global economy. The Indian financial system, with one of the largest financial
networks in the world, has witnessed a series of reforms over the past few years
like use of E-Financialand the increased participation of private sector banks.

History of INDIAN FINANCIAL SYSTEM

Financial in India originated in the last decades of the 18th century. The first banks
were The General Bank of India, which started in 1786, and the Bank of
Hindustan, both of which are now defunct The oldest bank in existence in India is
the State Bank of India, a government-owned bank that traces its origins back to
June 1806 and that is the largest commercial bank in the country. Allahabad Bank,
established in 1865 and still functioning today, is the oldest Joint Stock bank in
India.

Central financial is the responsibility of the Reserve Bank of India, which in 1935
formally took over these responsibilities from the then Imperial Bank of India,
relegating it to commercial financial functions. After India's independence in 1947,
the Reserve Bank was nationalized and given broader powers.
 In 1948, the Reserve Bank of India, India's central financial authority, was
nationalized, and it became an institution owned by the Government of India.

In 1949, the Financial Regulation Act was enacted which empowered the
Reserve Bank of India (RBI) "to regulate, control, and inspect the banks in
India."

The Financial Regulation Act also provided that no new bank or branch of an
existing bank could be opened without a license from the RBI, and no two
banks could have common directors

Liberalization in INDIAN FINANCIAL SYSTEM

In the early 1990s, the government embarked on a policy of liberalization,

licensing a small number of private banks. Some of the private sector banks are
ING VYSYA Bank, Axis Bank(earlier as UTI Bank), ICICI Bank and HDFC Bank.

The next stage for the Indian financial has been setup with the proposed relaxation
in the norms for Foreign Direct Investment, where all Foreign Investors in banks
may be given voting rights which could exceed the present cap of 10%, at present
it has gone up to 49% with some restrictions.

Currently,financial in India is generally fairly mature in terms of supply, product

range but reach in rural India still remains a challenge for the private sector and
foreign banks.

Chapter 2
 INTRODUCTION: The Origin of ING Group

ING group originated in 1990 from the merger between NationaleNederlanden

the largest Dutch Insurance Company and NMB Post Bank Group. Combining
roots and ambitions, the newly formed company called InternationaleNederlanden
Group. Market circles soon abbreviated the name to I-N-G. The company
followed suit by changing the statutory name to ING Group. ING is a global
financial services company providing financial, investments, life insurance and
retirement services and operates in more than 50 countries.

STRATEGY

INGs overall mission is to help customers manage their financial future. INGs
strategic focus is on financial, investments, life insurance and retirement services.
They provide retail customers with the products they need during their lives to
grow savings, manage investments and prepare for retirement with confidence.
With wide range of products, innovative distribution models and strong footprints
in both mature and developing markets, ING has the long-run economic,
technological and demographic trends on their side.

COPERATE RESPOSIBILITY
ING wants to pursue profit on the basis of sound business ethics and respect for its
stakeholders. Corporate responsibility is therefore a fundamental part of INGs
strategy: ethical, social and environmental factors play an integral role in business
decisions.
Chapter 3

Introduction: E-Financial
Electronic financial, also known as electronic funds transfer (EFT), is simply the
use of electronic means to transfer funds directly from one account to another,
rather than by cheque or cash. You can use electronic funds transfer to:

Withdraw money from your checking account from an ATM machine with a
personal identification number (PIN), at your convenience, day or night.

Instruct your bank or credit union to automatically pay certain monthly bills from
your account, such as your auto loan or your mortgage payment.

Have the bank or credit union transfer funds each month from your checking
account to your mutual fund account.

Buy groceries, gasoline and other purchases at the point-of-sale, using a check
card rather than cash, credit or a personal check.

Use a smart card with a prepaid amount of money embedded in it for use instead
of cash at a pay phone, expressway road toll, or on college campuses at the
library's photocopy machine or bookstores.

Use your computer and personal finance software to coordinate your total
personal financial management process, integrating data and activities related to
your income, spending, saving, investing, recordkeeping, bill-paying and taxes,
along with basic financial analysis and decision making.
 VARIOUS FORMS OF E-FINANCIAL:

A. ONLINEFINANCIAL:

OnlineFinancial lets you handle many financial transactions via your personal
computer. For instance, you may use your computer to view your account balance,
request transfers between accounts, and pay bills electronically.

Onlinefinancial system and method in which a personal computer is connected by

a network service provider directly to a host computer system of a bank such that
customer service requests can be processed automatically without need for
intervention by customer service representatives. The system is capable of
distinguishing between those customer service requests which are capable of
automated fulfillment and those requests which require handling by a customer
service representative. The system is integrated with the host computer system of
the bank so that the remote financial customer can access other automated services
of the bank. The method of the invention includes the steps of inputting a customer
financial request from among a menu of financial requests at a remote personnel
computer; transmitting the financial requests to a host computer over a network;
receiving the request at the host computer; identifying the type of customer
financial request received; automatic logging of the service request, comparing the
received request to a stored table of request types, each of the request types having
an attribute to indicate whether the request type is capable of being fulfilled by a
customer service representative or by an automated system; and, depending upon
the attribute, directing the request either to a queue for handling by a customer
service representative or to a queue for processing by an automated system.

B. AUTOMATED TELLER MACHINES (ATM):

An automated teller machine or automatic teller machine (ATM) is an electronic

computerized telecommunications device that allows a financial institution's
customers to directly use a secure method of communication to access their bank
accounts, order or make cash withdrawals and check their account balances
without the need for a human bank teller. Many ATMs also allow people to deposit
cash or cheques, transfer money between their bank accounts, top up their mobile
phones' pre-paid accounts or even buy postage stamps.

On most modern ATMs, the customer identifies him or herself by inserting a

plastic card with a magnetic stripe or a plastic smartcard with a chip, which
contains his or her account number. The customer then verifies their identity by
entering a pass code, often referred to as a PIN (Personal Identification Number) of
four or more digits. Upon successful entry of the PIN, the customer may perform a
transaction.

The Indian market today has approximately more than 17,000 ATMs.

C. CREDIT CARDS/ DEBIT CARDS:

The Credit Card holder is empowered to spend wherever and whenever he wants
with his Credit Card within the limits fixed by his bank. Credit Card is a post paid
card. Debit Card, on the other hand, is a prepaid card with some stored value.
Every time a person uses this card, the OnlineFinancial house gets money
transferred to its account from the bank of the buyer. The buyers account is debited
with the exact amount of purchases. An individual has to open an account with the
issuing bank which gives debit card with a Personal Identification Number (PIN).
When he makes a purchase, he enters his PIN on shops PIN pad. When the card is
slurped through the electronic terminal, it dials the acquiring bank system - either
Master Card or VISA that validates the PIN and finds out from the issuing bank
whether to accept or decline the transactions. The customer can never overspend
because the system rejects any transaction which exceeds the balance in his
account.

D. TELE FINANCIAL:

Undertaking a host of financial related services including financial transactions

from the convenience of customers chosen place anywhere across the GLOBE and
any time of date and night has now been made possible by introducing on-line
Telefinancial services. By dialing the given Telefinancial number through a
landline or a mobile from anywhere, the customer can access his account and by
following the user-friendly menu, entire financial can be done through Interactive
Voice Response (IVR) system. With sufficient numbers of hunting lines made
available, customer call will hardly fail. The system is bi-lingual and has following
facilities offered

Balance inquiry and transaction inquiry in all

Inquiry of all term deposit account

Statement of account by Fax, e-mail or ordinary mail.

Cheque book request

Stop payment which is on-line and instantaneous

Transfer of funds with CBS which is automatic and instantaneous

Utility Bill Payments

Renewal of term deposit which is automatic and instantaneous

E. SMART CARD:

Banks are adding chips to their current magnetic stripe cards to enhance security
and offer new service, called Smart Cards. Smart Cards allow thousands of times
of information storable on magnetic stripe cards. In addition, these cards are highly
secure, more reliable and perform multiple functions. They hold a large amount of
personal information, from medical and health history to personal financial and
personal preferences

F. E-CHEQUE:

An e-Cheque is the electronic version or representation of paper cheque.

It can now be used in place of paper cheques to do any and all remote
transactions.
 An E-cheque work the same way a cheque does, the cheque writer "writes"
the e-Cheque using one of many types of electronic devices and "gives" the e-
Cheque to the payee electronically. The payee "deposits" the Electronic Cheque
receives credit, and the payee's bank "clears" the e-Cheque to the paying bank. The
paying bank validates the e-Cheque and then "charges" the check writer's account
for the check

G. MOBILE FINANCIAL :

Mobilefinancial is a term used for performing balance checks, account

transactions, payments, credit applications and other financial transactions through
a mobile device such as a mobile or Personal Digital Assistant . The earliest mobile
financial services were offered over SMS. With the introduction of the first
primitive smart phones with WAP support enabling the use of the mobile web in
1999, the first European banks started to offer mobile financial on this platform to
their customers.

We can avail the following services through E-Financial:

Bill payment service

You can facilitate payment of electricity and telephone bills, mobile phone, credit
card and insurance premium bills as each bank has tie-ups with various utility
companies, service providers and insurance companies, across the country. To pay
your bills, all you need to do is complete a simple one-time registration for each
biller. You can also set up standing instructions online to pay your recurring bills,
automatically. Generally, the bank does not charge customers for online bill
payment.
 Fund transfer
You can transfer any amount from one account to another of the same or any
another bank. Customers can send money anywhere in India. Once you login to
your account, you need to mention the payees's account number, his bank and the
branch. The transfer will take place in a day or so, whereas in a traditional method,
it takes about three working days

Credit card customers

WithOnlinefinancial, customers can not only pay their credit card bills online but
also get a loan on their cards. If you lose your credit card, you can report lost card
online.

Investing through OnlineFinancial

Now investors with interlinked demat account and bank account can easily trade
in the stock market and the amount will be automatically debited from their
respective bank accounts and the shares will be credited in their demat account.
Moreover, some banks even give you the facility to purchase mutual funds directly
from the online financial system.

Recharging your prepaid phone

Now just top-up your prepaid mobile cards by logging in to Onlinefinancial. By
just selecting your operator's name, entering your mobile number and the amount
for recharge, your phone is again back in action within few minutes.

Shopping
With a range of all kind of products, you can shop online and the payment is also
made conveniently through your account. You can also buy railway and air tickets
through Onlinefinancial.
Advantage Of OnlineFinancial

As per the Online and Mobile Association of India's report on online financial
2006, "There are many advantages of online financial. It is convenient, it isn't
bound by operational timings, there are no geographical barriers and the services
can be offered at a very low cost."

Through Onlinefinancial, you can check your transactions at any time of the day,
and as many times as you want to. Where in a traditional method, you get quarterly
statements from the bank. If the fund transfer has to be made outstation, where the
bank does not have a branch, the bank would demand outstation charges. Whereas
with the help of online financial, it will be absolutely free for you.

Security Precautions

Customers should never share personal information like PIN numbers, passwords
etc with anyone, including employees of the bank. It is important that documents
that contain confidential information are safeguarded. PIN or password mailers
should not be stored, the PIN and/or passwords should be changed immediately
and memorised before destroying the mailers.

Customers are advised not to provide sensitive account-related information over

unsecured e-mails or over the phone. Take simple precautions like changing the
ATM PIN and online login and transaction passwords on a regular basis. Also
ensure that the logged in session is properly signed out.
Plastic Cards as Media for Payment:-
There are four types of plastic cards being used as media for making
payments. These are:
1. Credit Card
2.Debit Card
3.Smart Card
4.ATM Card

1.Credit Cards: -
The Credit Card is a post paid card. The credit card enables the cardholders to:
Purchase any item like clothes, jewellery, railway/air tickets, etc. Pay bills for
dining in a restaurant or boarding and lodging in hotel etc.

2. Debit Cards: -
A Debit Card, on the other hand, is a prepaid card with some stored value. Every
time a person uses this card, the OnlineFinancial house gets money transferred to
its account from the bank of the buyer. The buyers account is debited with the
exact amount of purchases.

3. Smart Cards: -
Smart Cards have a built-in microcomputer chip, which can be used for storing and
processing information. For example, a person can have a smart card from a bank
with the specified amount stored electronically on it. The specified amount is
utilized by the customer, he can approach the bank to get his card validated for a
further specified amount. Such cards are used for paying small amounts like
telephone calls, petrol bills etc.

4. ATM Cards: -
The card contains a PIN (Personal Identification Number) which is selected by the
customer or conveyed to the customer and enables him to withdraw cash up to the
transaction limit for the day. He can also deposit cash or cheque.
Role of customer when using e-financial

You can access OnlineFinancial only by using your User ID and Password.
During the first login attempt, it is mandatory to change both passwords -
login and transaction which would have been mailed to you by the bank.

If you forget your password, you will have written to us using the "Email
Us" option. The Bank will then issue a new password and send it to your
mailing address as per our records. Kindly check with your branch that this
address is updated...

Make sure no one can see the account login name or password you are
entering when you log on to INGVYSYABANK.COM

Logout of INGVYSYABANK.COM before moving on to other Websites.

Before leaving the PC please "close" the browser.

Do not write your INGVYSYABANK.COM login name or password

anywhere.

Do not leave your login name and password such that someone sitting at
your computer could see them.

Never present your INGVYSYABANK.COM login name and password to

anyone (no representative of ING VYSYA BANK will ever ask you for your
INGVYSYABANK.COM password).
 Notify ING VYSYA Bank immediately if you notice any unusual account
activity.

Keep all documents that include your account information in a secure

location.

When you login you can view the date and time of your last log in.

Features offered by ING Vysya Bank for onlinefinancial

Balance enquiry and statement

Transfer fund online

Card to card fund transfer

Use debit card online

Prepaid mobile recharge

Subscribe for mobile financial

Lock / activate debit cards /ATM

Request a cheque book

Stop payment

USE OF E-FINANCIAL IN INDIA FROM LAST FEW YEARS

Year 2003 2004 2005 2006 2007 2008 2009 2010

Incr.% 9 12 15 20 25 32 40 50

80

70 2010; 8
2010; 8
60 2009; 7
2009; 7
50 2008; 6
40 2008; 6
2007; 5
30 2006; 4 2007; 5
2006; 4
20 2005; 3
2004; 2005; 3
2004; 2
2
10 2003; 1

0
2003 2004 2005 2006 2007 2008 2009 2010

Finding

From 2003-2010 , the user of the E-financial is increasing every year.

Chapter 4

Research Methodology

The data collected from questionnaire will be tabulated and analyzed so that it can
easily understand to the user.

There are a number of ways to be used to present the result of findings are:-

o Pie-chart
o Graphs
SAMPLING PLAN:

Since it is not possible to study whole universe, it becomes necessary to take

sample from the universe to know about its characteristics.

Sampling Units: Different Account Holder from the bank.

Sample Technique: Random Sampling.
Research Instrument: Structured Questionnaire.
Contact Method: Personal Interview.

SAMPLE SIZE:

My sample size for this project was 20 respondents. Since it was not
possible to cover the whole universe in the available time period, it was
necessary for me to take a sample size of 20 respondents.

DATA COLLECTION INSTRUMENT DEVELOPMENT:

The mode of collection of data will be based on Primary as well as Secondary data.

Primary data:

Primary data collection will base on personal interview of customers and people
linked with ING VYSYA BANK. I have prepared the questionnaire according to
the necessity of the data to be collected.

Secondary data:

Collection of information from ING VYSYA website and different various

websites related to E-FINANCIAL.
 Chapter 5

Literature Review

Online and the Financial System

The rapid growth of the Web creates a tremendous opportunity for new businesses,

but also requires a new way of viewing the market place for the community

banker. Experts estimates that consumer use of on-line financial services will
increase over 20-fold by the end of the century. Geography and the number of

branches become irrelevant and community banks are able to offer the same level

of service and convenience to customers as the largest banks. In the past, over 60%

of existing bank customers have cited their bank selection to be based on

convenience of location. For the customers of today, convenience of location

includes the availability of 24-hour access via the Online. (Wilson, 1996)

Seitz and Stickel (1999) considered that financial service companies are using the

Online as a new distribution channel. The goals are:

complex products may be offered in an equivalent quality with lower costs to

more potential customers

there may be contacts from each place of earth at any time of day and night
Seybold (1998) identifies 8 critical success factors for electronic financial:

Own the customers total experience

Streamline business processes that impact the customer

Provide a 360-degree view of customer relationship

Let customers help themselves

Help customers do their job

Deliver personalized service

 Chapter 6

Objective of study

Find the customer satisfaction relating to E-financial service.

To study the awareness of onlinefinancial among the customers

Limitation of Study
 Banks are not giving me all information about E-financial services.
Customer are not aware about the financial services
Research is only done in Dehradun city.

Chapter 7

Data analysis

1) Users of E-financial

Yes 65%

No 35%
 70%
60%
50%
40%
30%
20%
10%
0%
Yes No

Currently 65 % of the bank customers availing the facility of E-Financial.

2) No. of user of the banks

SBI 30%

ICICI 20%

HDFC 10%

ING Vysya 5%

Other Banks 35%

35%

30%

25%

20%

15%

10%

5%

0%
SBI ICICI HDFCING Vysya
Other Banks

3) Preference for online bill payment services

Yes 60%

No 40%
 Chart Title

NO; 40%

YES; 60%

Majority of the customers are now opt online bill payment. i.e. 60% of the bank
customers are now using online bill payment.

4) Preference for online shopping

Yes 70%
 No 30%

Chart Title
80

70

60

50

40

30

20

10

0
YES NO

Similarly, 70% of the customers are now using online shopping that saves the
precious time of the customers.

5) Preference for online fund transfer

Yes 35%

No 65%
 Chart Title

70

60

50

40

30

20

10

0
YES NO

Only few customers are using the online fund transfer facility i.e. 35%

6) Satisfied Customers

Yes 65%
 No 35%

Chart Title

NO; 35%

YES; 65%

Most of the customer are satisfied with the E-Financial as they save their time and
have found full security for their transaction online.

Chapter 8

Findings
1. In the users ratio of onlinefinancial 65% of customers are using this service.
2. In these services the SBI bank is top in service of E-financial.

3. The services that are mostly used by maximum customers are transactions,
online trading, bill payment, shopping etc.

4. The mode of transaction that a customer used more oftenly is through cash,
cheque& e-financial respectively.

5. Different banks charge different rates for online service.

Suggestions
1. Demonstration of E-Financial should be provided to the existing customers
to promote E-Financial.

2. Encourage customers that E-financial is totally safe if you take necessary

precautions like protect your password from others.

3. Provide discounts on shopping through E-Financial.

Chapter 9

Conclusion
The basic objective of my research was to analyze the awareness among
customers for onlinefinancial in INDIA. It gives direction to research
tools, research types and techniques. Although the findings reveal that
people know about the services but still many people are unaware and
many of them are non users so the bank should by promotion try to
aware the customers about the benefits of E-Financial. Banks should
look forward to have some tie ups with other financial institutions to
increase the service base.
 Bibliography

Collection of information for the research is taken from the ING VYSYA Bank
website (www.ingvysyabank.com)

and other websites like :

www.google.com

www.economictimes.com

www.wikipedia.com

www.worldjute.com
 ANNEXURE

A. Questionnaire:-

1. Name of the customer:-

2. Do you like E-financial

a. Yes
b. No

3. Tick which bank you preferred

a. ICICI
b. SBI
c. Axis
d. HDFC
e. PNB
f. ING VYSYA
g. Any Other

4. Why this bank

a. Service is good
b. They provide security
c. Cheaper service fees.

5. Which type of service mostlyyou use?

a. Online Bill Payments

 b. Transfer fund online

c. Online shopping

d. A and B

e. B and C

f. A and C

g. All

h. none

6. Services of the bank are.

a. poor
b. good
c. Very good

7. Are you satisfied with the using of E-financial?

a. Yes
b. No