“A STUDY ON IMPACT OF E-COMMERCE GROWTH ON TRADITIONAL

RETAIL BANKING: A CUSTOMER PERSPECTIVE AT BENGALURU

CITY”

Master Thesis submitted in partial fulfilment of the requirement for the award of the
Degree of

MASTER OF BUSINESS ADMINISTRATION

Of
PRESIDENCY COLLEGE (Autonomous)

By,
Bhavanishankar H U
22M01015
Under the guidance of
Dr. Raghu N
Associate Professor

PRESIDENCY COLLEGE (AUTONOMOUS)

2022-2024
 DECLARATION BY THE STUDENT

I hereby declare that “A STUDY ON IMPACT OF E-COMMERCE GROWTH ON

TRADITIONAL RETAIL BANKING: A CUSTOMER PERSPECTIVE AT
BENGALURU CITY” is the result of the project work carried out by me under the guidance
of Dr. RAGHU N in partial fulfilment for the award of Master’s Degree in Business
Administration by Presidency College (Autonomous).

I also declare that this project is the outcome of my own efforts and that it has not been
submitted to any other university or Institute for the award of any other degree or Diploma or
Certificate.

Place: Bengaluru Name: Bhavanishankar H U

Date: Register Number: 22M01015

 GUIDE CERTIFICATE

This is to certify that Ms. NIDHI S College, has undertaken Master Thesis entitled “A STUDY
ON IMPACT OF E-COMMERCE GROWTH ON TRADITIONAL RETAIL
BANKING: A CUSTOMER PERSPECTIVE AT BENGALURU CITY” under my
Guidance and it has not been submitted to any other university or Institute for the award of any
other degree or Diploma or Certificate. Her Conduct and work is Original, Not
satisfactory/Satisfactory/Good/ Excellent.

Date: Signature
 CERTIFICATE OF ORIGINALITY

Date:

This is to certify that the dissertation titled “ A STUDY ON ROLE OF FINANCIAL

LITERACY IN GEN Z REACTIONS TO INNOVATIVE PAYMENT METHODS IN
BANGALORE CITY’’ is an original work of Ms. NIDHI S ; bearing University Register
Number 22M01049 and is being submitted in partial fulfillment for the award of the Master’s
Degree in Business Administration of Presidency College(Autonomous). The report has not
been submitted earlier either to this University /Institution for the fulfillment of the
requirement of a course of study. Ms . NIDHI S is guided by Dr RAGHU N who is the
Faculty Guide as per the regulations of Presidency College(Autonomous).

Signature of Director / Principal /HOD

Date :
 ACKNOWLEDGEMENT

I have taken efforts in this project. However, it would not have been possible without the kind
support and help of many individuals. I would like to extend my sincere thanks to all.

I would like to convey my heartfelt gratitude to Dr. RAGHU N sir for him tremendous support
and assistance in the completion of my project.

I would like to thank our Dean, Dr. CHANDAN CHAVADI sir, for providing me with this
wonderful opportunity to work on a project with the title of “A Study on role of Financial
Literacy in Gen Z Reactions to Innovative Payment Methods in Bangalore City”.

I would also like to thank my parents and friends who helped me a lot in finalizing this project
within the limited time frame.
 TABLE OF CONTENT

Chapter Particulars Pages

No No

1 INTRODUCTION 1-17
1.1 Introduction about the topic
1.2 Importance of the topic
1.3 Theoretical Background of the Study
1.4 Industry profile
1.5 Key Benefits of E-Commerce Growth on
Traditional Retail Banking
1.6 Key Challenges of E-Commerce Growth for
Traditional Retail Banking
1.7 Background of the study

2 LITERATURE REVIEW & RESEARCH 18-27

METHODOLOGY

2.1 Literature Review on the impact of e-

commerce growth on traditional retail
banking: a customer perspective at
Bengaluru city
2.2 Gap Analysis
2.3 Review of literature
2.4 Statement of the Problem
2.5 Objectives
2.6 Hypothesis Testing
2.7 Sampling
2.8 Sources of Data
2.9 Tools for Data Collection
2.10 Plan of Analysis
2.11 Limitations of the study

3 PROFILE OF THE ORGANISATION & 28-34

RESPONDENTS

4 DATA ANALYSIS & INTERPRETATION 35-59

5 SUMMARY OF FINDINGS, CONCLUSION 60-67

 & SUGGESTION

5.1 Summary of findings

5.2 Suggestion

5.3 Conclusion

6 BIBLIOGRAPHY 68-75

LIST OF TABLES

Table Description Page

Number Number

4.1 Table Showing Online Purchasing Behaviour 36

on E-commerce Platforms.
Frequency of E-commerce Platform Usage for Online
4.2 Shopping. 37
Table showing Effect of Online Banking Services on
4.3 Visits to Physical Bank Branches. 38
Table showing the Effect of E-commerce Growth
4.4 39
on Traditional Retail Banking.

4.5 Table showing Customer Perspectives on 40

Support and Service Quality for E-commerce
Banking Needs.
Table showing Customer Satisfaction with Mobile
4.6 Banking Applications Provided by Banks. 41
Table showing Perceived Convenience of Mobile
4.7 Banking Apps from Traditional Retail Banks. 42
Table showing Perceived Safety of Cash on Delivery
4.8 in E-commerce Transactions. 43
Table showing Comparison of Satisfaction Levels
4.9 44
between Banking Services Offered by Traditional
Retail Banks and E-commerce Platforms.
Table showing Comparison of Satisfaction Levels
4.10 between Banking Services Offered by Traditional 45
Retail Banks and E-commerce Platforms.
 Table showing Comparison of Likelihood of Shifting
4.11 from Traditional Retail Banking to E-commerce 46
Platforms for Future Financial Transactions.
Table showing Comparison between E-commerce
4.12 Platforms and Traditional Retail Banking Services. 47
Table showing Security Perception of E-commerce
4.13 Transactions through Traditional Banking POS 48
Systems.
Table showing Likelihood of Experiencing Technical
4.14 Issues with Banking Services During E-commerce 49
Transactions.
Table showing Comparison of Ease of Use: E-
4.15 50
commerce Platforms vs. Traditional Banking Services.
Table showing Perceived Security of Online Banking
4.16 51
Services in E-commerce Transactions.
Table showing Frequency of Digital Wallets and
4.17 Payment Apps Usage for Financial Transactions. 52
Table showing Assessing the efficacy of a bank's
4.18 fraud prevention measures in e-commerce 53
transactions.
Table showing Comparing customer satisfaction with
4.19 54
the convenience of e-commerce versus traditional
retail banking services.
Plan of analysis.
4.21 56
Hypothesis Development and Statistical Analysis.
4.22 56
Bayesian Estimates of Coefficients.
4.23 57
Case Processing Summary.
4.24 58
Chi-Square Tests.
4.25 58
Symmetric Measures.
4.26 59
 LIST OF GRAPHS

Graph Description Page

Number Number

4.1 Graph Showing distribution of Online 36

Purchasing Behaviour on E-commerce
Platforms.

4.2 Graph showing distribution of Frequency of 37

E-commerce Platform Usage for Online
Shopping.

4.3 Graph showing distribution of Effect of 38

Online Banking Services on Visits to
Physical Bank Branches.

4.4 Graph showing distribution of the Effect of 39

E-commerce Growth on Traditional Retail
Banking.

4.5 Graph showing distribution of Customer 40

Perspectives on Support and Service Quality
for E-commerce Banking Needs.

4.6 Graph showing distribution of Customer 41

Satisfaction with Mobile Banking
Applications Provided by Banks.

4.7 Graph showing distribution Perceived 42

Convenience of Mobile Banking Apps from
Traditional Retail Banks.

4.8 Graph showing distribution of Perceived 43

Safety of Cash on Delivery in E-commerce
Transactions.

4.9 Graph showing distribution of Comparison 44

of Satisfaction Levels between Banking
Services Offered by Traditional Retail
Banks and E-commerce Platforms.
4.10 Graph showing distribution of Satisfaction 45
Levels between Banking Services Offered
by Traditional Retail Banks and E-
commerce Platforms.

4.11 Graph showing distribution of Likelihood of 46

Shifting from Traditional Retail Banking to
E-commerce Platforms for Future Financial
Transactions.

4.12 Graph showing Comparison between E- 47

commerce Platforms and Traditional Retail
Banking Services.

4.13 Graph showing distribution of Security 48

Perception of E-commerce Transactions
through Traditional Banking POS Systems.

4.14 Graph showing distribution of Likelihood of 49

Experiencing Technical Issues with Banking
Services During E-commerce Transactions.

4.15 Graph showing distribution of Comparison 50

of Ease of Use: E-commerce Platforms vs.
Traditional Banking Services.

4.16 Graph showing distribution of Perceived 51

Security of Online Banking Services in E-
commerce Transactions.

4.17 Graph showing distribution of Frequency of 52

Digital Wallets and Payment Apps Usage for
Financial Transactions.

4.18 Graph showing distribution of the efficacy 53

of a bank's fraud prevention measures in e-
commerce transactions.

4.19 Graph showing distribution of customer 54

satisfaction with the convenience of e-
commerce versus traditional retail banking
services.
4.20 Graph showing distribution of customer 55
satisfaction with the convenience of e-
commerce versus traditional retail banking
services.
 ABSTRACT

The rapid growth of e-commerce has significantly transformed the landscape of

traditional retail banking, particularly from the perspective of customers in Bengaluru
City. This study aims to explore the multifaceted impacts of this digital shift on
traditional banking services. The advent of online shopping and digital transactions has
introduced unprecedented convenience, offering customers a seamless, 24/7
accessibility to financial services. However, this convenience also poses a challenge to
traditional banks, which must now adapt to changing consumer behaviors and
expectations. The study delves into how customers perceive these changes, focusing on
their preferences, satisfaction levels, and trust in digital versus traditional banking
services.

In Bengaluru, a major tech hub, the proliferation of e-commerce has been particularly
pronounced, influencing customer interactions with financial institutions. This research
highlights the evolving dynamics between e-commerce platforms and retail banks,
examining how traditional banks are responding to the competitive pressures and
opportunities presented by digital transactions. Through surveys and interviews with a
diverse cross-section of Bengaluru's population, the study captures the nuanced
experiences and expectations of customers. Findings indicate a growing preference for
digital banking solutions among younger, tech-savvy consumers, while older
generations still value the personalized service of traditional banks.

The study concludes by discussing the implications of these findings for the future of
retail banking in Bengaluru. As e-commerce continues to grow, traditional banks must
innovate and integrate digital solutions to remain relevant and competitive. This
includes enhancing their online presence, investing in cybersecurity, and offering
personalized digital services that cater to the diverse needs of their customer base. The
research provides strategic insights for banking institutions aiming to balance the
advantages of digital transformation with the enduring strengths of traditional banking,
ultimately fostering a more customer-centric approach in a rapidly evolving financial
landscape.