Nikhil - Singh 8.0

“A STUDY ON IMPACT OF COVID-19
PANDEMIC ON BANKING INDUSTRY AND ITS CUSTOMERS”
A project submitted to
THE UNIVERSITY OF MUMBAI.
For partial completion of the degree of BACHELOR OF

COMMERCE BANKING AND INSURANCE Under the
Faculty of Commerce by
MR. NIKHIL HARIPRAKASH SINGH
Under the Guidance of

ASST. PROF. MISS. SIDDHI PHATAK
SHETH N.K.T.T. COLLEGE OF COMMERCE
& SHETH J.T.T. COLLEGE OF ARTS
KHARKAR ALI, THANE (W) 400602
ACADEMIC YEAR 2023 - 24

SHETH T.J. EDUCATION SOCIETY’S
SHETH N.K.T.T. COLLEGE OF COMMERCE
& SHETH J.T.T. COLLEGE OF ARTS
KHARKAR ALI, THANE (W) 400602
Certificate
This is to certify that Mr. NIKHIL HARIPRAKASH SINGH, SEAT NO:90 has
worked and duly completed her/ his project Work for the degree of Bachelor of Banking
and Insurance under the Faculty of Commerce in the subject of Project, and her project is
entitled, “A STUDY ON IMPACT OF COVID-19 PANDEMIC ON BANKING
INDUSTRY AND ITS CUSTOMERS” under my supervision.
I further certify that the entire work has been done by the learner under my guidance and
that no part of it has been submitted previously for any Degree or Diploma of any
University.
It is her/his work and facts reported by her findings and Investigations.
Internal Examiner External Examiner Coordinator Principal
Date of submission:
( )
Declaration
I, the undersigned Mr. Nikhil Hariprakash Singh hereby declare

that the work embodied in this project work titled “A Study on
Impact of Covid-19 Pandemic on Banking Industry and its
Customer” forms my own contribution to the research work carried
out under the guidance of Asst. Prof. Ms. Siddhi Phatak is a result
of my own research work and has not been previously submitted to
any other University for any other Degree to this or any other
University.
Wherever reference has been made to previous works of others, it

has been clearlyindicated as such and included in the bibliography.
I, here by further declare that all information of this document has

been obtained and presented in accordance with academic rules and
ethical conduct.
NIKHIL HARIPRAKASH SINGH
Certified by
Asst. Prof. Ms. Siddhi Phatak.
Project Guide
Acknowledgment
I would like to extend my heartfelt thanks to all who have helped me

for completion of this project. A simple thank you would be
insufficient because they are so numerous and the depth is so
enormous.
I would like to acknowledge the following as being idealistic

channels and fresh dimensions in the completion of this project.
I take this opportunity to thank the University of Mumbai for giving

me chance to do this project.
I would like to thank my Principal, Dr. Dilip Patil for providing the
necessary facilities required for completion of this project.
I take this opportunity to thank our SFC Coordinator, Asst. Prof.

Dr. Yogeshwari Patil for her moral support and guidance.
I would also like to express my sincere gratitude towards my project

guide Asst. Prof. Ms. Siddhi Phatak under whose guidance and
care made the project successful.
I would like to thank my College Library, for having provided

various reference books and magazines related to my project.
Lastly, I would like to thank each and every person who directly or
indirectly helped me in the completion of the project especially my
Parents and Peers who supported me throughout my project.
(Mr. Nikhil Hariprakash Singh)

EXECUTIVE SUMMARY
There have been numerous studies conducted on the impact of social media on
consumer buying behavior, and the results have been varied.
Many several studies found that more people started using online and mobile
banking because of
COVID-19 lockdowns. This meant fewer visits to physical bank branches. The
study showed that the
pandemic made digital banking more important for banks to keep running
smoothly during tough times.
Another study looked at how COVID-19 affected people's finances. Many

individuals and businesses struggled to make ends meet because of the
economic downturn caused by the pandemic. Banks tried to help by offering
options like delaying loan payments or giving financial advice. But these
measures might have long-term effects on how well banks can make money.
A survey asked people who work in banking and customers about the
challenges they faced because of COVID-19. They talked about things like
making sure their systems were safe from cyber attacks, speeding up changes
to digital banking, and helping employees work from home. The survey showed
that banks had to be flexible and find new ways to keep up with rules and risks
during the pandemic.
Furthermore, a comprehensive survey of banking industry professionals shed

light on the operational and strategic challenges faced by banks in response to
the pandemic. The research identified key areas of focus for banks, including
enhancing cybersecurity measures, accelerating digital transformation
initiatives, and strengthening remote workforce capabilities. Additionally, the
study highlighted the importance of regulatory compliance and risk
management in navigating the evolving regulatory landscape amidst the
pandemic. Overall, these research findings underscored the resilience of the
banking industry in adapting to unprecedented challenges while also
emphasizing the importance of innovation and agility in driving future growth
and sustainability.
INDEX
Chapter Title Page

No No
1 INTRODUCTION
1.1 Meaning 9
1.2 Overview of Banking Industry Pre-Covid 19 10-11
1.3 Emergence of the Covid-19 Pandemic 12
1.4 Immediate Effects on the Banking Industry 13-15
1.5 Impact on Banking Customers 16-17
1.6 Regulatory Responses and Changes 18-
1.7 Adaptation and Response by Banks
1.8 Long-Term Implication and Future Outlook
1.9 Strategies for banks to adapt and thrive in the

post-pandemic era.
2 RESEARCH METHODOLOGY 39-41
2.1 Statement of problem
2.2 Objectives of the study
2.3 Hypothesis
2.4 Scope of the study
2.5 Limitations of the study
2.6 Sources of data
3 REVIEW OF LITERATURE 42-45
7
4 DATA ANALYSIS AND INTERPRETATION 46-67
5 CONCLUSION AND SUGGESTIONS 68-75

6 BIBLIOGRAPHY 76-77
7 ANNEXURE 78-82
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CHAPTER 1
INTRODUCTION
The COVID-19 pandemic brought a lot of problems to many businesses all over
the world, including banks. When governments put strict rules in place to stop
the virus from spreading, it caused disruptions for businesses and made people
unsure about the economy. But banks were still important because they helped
with money transactions, gave out money when it was needed, and tried to help
the economy get better.
However, the pandemic made it hard for banks to do things as they normally
would, and it changed how people used banks and what rules banks had to
follow. Because of the pandemic, banks had to change how they worked really
quickly. They couldn't have as many people going into their buildings, so they
had to do more things online. This meant they had to make sure their websites
and apps worked well, and they had to make sure they were keeping people's
information safe.
Banks also had to figure out how to deal with problems like not having enough
money or not being able to get things they needed because of the pandemic.
The pandemic also changed how people used banks. Instead of going to a bank
in person, more people started using their computers or phones to do their
banking. They also started worrying more about their money and how to make
sure they had enough of it. This meant they wanted banks to help them more
with things like saving money and making plans for the future. They also
wanted banks to be there for them when things were tough and to give them
good advice about what to do with their money.
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The pandemic also changed how people used banks. Instead of going to a bank
in person, more people started using their computers or phones to do their
banking. They also started worrying more about their money and how to make
sure they had enough of it.
This meant they wanted banks to help them more with things like saving money
and making plans for the future. They also wanted banks to be there for them
when things were tough and to give them good advice about what to do with
their money.
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1.1 MEANING
"A Study on the Impact of the COVID-19 Pandemic on the Banking Industry
and Its Customers" investigates how the COVID-19 crisis has affected both
banks and their clients. This research delves into the changes brought about by
the pandemic, including operational adjustments made by banks to continue
providing services amidst lockdowns and restrictions. It also examines how
customer behavior has shifted, with a greater reliance on digital banking
services due to social distancing measures. Furthermore, the study explores the
challenges faced by banks, such as managing liquidity and adapting to a rapidly
changing economic landscape.
Additionally, this study seeks to understand how the pandemic has influenced
the financial decisions and priorities of bank customers. It examines how
individuals and businesses have adjusted their banking habits and financial
planning strategies in response to the uncertainties brought about by the crisis.
Moreover, the research investigates the role of regulatory interventions in
mitigating the impact of the pandemic on the banking industry and ensuring
financial stability.
By examining the multifaceted impacts of the COVID-19 pandemic on the

banking industry and its customers, this study aims to provide valuable insights
for policymakers, banking executives, and researchers. Understanding these
impacts is crucial for developing effective strategies to address the challenges
posed by the crisis and to build resilience in the banking sector for future crises.
Moreover, the research delves into the role of government rules and regulations
in helping banks deal with the effects of the pandemic and ensuring that the
financial system stays stable. By examining all these aspects, the study aims to
provide valuable insights for policymakers, bank executives, and researchers.
Understanding how the pandemic has impacted the banking industry and its
customers is essential for developing strategies to address current challenges
and prepare for future crises. Overall, the goal is to help ensure that banks can
continue to serve their customers effectively, even in difficult times
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1.2 Overview of Banking Industry Pre-Covid 19
Before the COVID-19 pandemic, the banking sector was experiencing steady
growth and evolution globally. Here's an overview:
1. Economic Environment:
• Pre-COVID-19, the global economy was generally stable, with modest
growth in most regions.
• Interest rates were low in many countries, encouraging borrowing and

investment.
• Regulatory environments were becoming stricter after the global

financial crisis of 2008, with a focus on capital adequacy and risk
management.
2. Technological Innovation:
• Banks were increasingly investing in digital transformation, offering
online and mobile banking services to meet customer demands for
convenience and efficiency.
• FinTech companies were disrupting traditional banking models,

offering innovative solutions in payments, lending, and wealth
management.
3. Customer Expectations:
• Customers were demanding more personalized services, faster
transactions, and seamless digital experiences.
• Traditional banks were facing competition from tech giants entering the
financial services sector, raising the bar for customer experience.
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4. Financial Inclusion:
• Efforts were being made globally to increase financial inclusion, with
initiatives to provide banking services to underserved populations.
• Mobile banking and digital payment solutions were helping to bridge

the gap, particularly in developing countries.
5. Mergers and Acquisitions:

• Consolidation was a trend in the banking sector, with larger banks
acquiring smaller ones to gain market share and expand their geographic
reach.
• Cross-border mergers were also occurring, driven by the desire to

achieve economies of scale and diversify risks.
6. Regulatory Landscape:
• Regulatory frameworks were evolving, with a focus on enhancing
stability and preventing systemic risks.
• Compliance requirements were becoming more stringent, leading banks

to invest in regulatory technology (RegTech) to streamline processes
and ensure compliance.
7. Impact of COVID-19 on Banking Sector:
• The Pandemic disrupted the banking sector significantly, leading to

economic uncertainty, increased loan defaults, and reduced consumer
spending.
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• Banks faced challenges in maintaining liquidity and managing credit
risk amidst the economic downturn.
• Digital banking adoption accelerated as customers turned to online

channels for their banking needs, leading to increased investments in
digital infrastructure.
Overall, the Banking Sector Pre-COVID-19 was characterized by technological

innovation, regulatory scrutiny, and evolving customer expectations. The
pandemic has accelerated digital transformation and underscored the
importance of resilience and agility in the face of unforeseen challenges
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1.3 Emergence of the Covid-19 Pandemic
The COVID-19 pandemic started in late 2019 in Wuhan, China, when doctors
found a group of people with a strange kind of pneumonia. It turned out to be
caused by a new virus called SARS-CoV-2. The virus spread quickly to other
countries, and the World Health Organization declared it a global pandemic on
March 11, 2020.
Scientists think the virus probably came from bats and might have passed to
humans through another animal, like a pangolin, at a market in Wuhan. This
shows how important it is to understand how humans interact with animals to
prevent similar outbreaks in the future.
COVID-19 showed how connected the world is, with the virus spreading
rapidly due to international travel, cities, and global trade. Even though many
countries tried to stop it with things like travel restrictions and social distancing,
the virus still spread fast, causing lots of sickness and death.
The pandemic affected everything, from healthcare to jobs and education.

Hospitals struggled to keep up, and governments had to make tough decisions
like lockdowns to slow the virus. This led to economic problems, job losses,
and loneliness for many people.
The pandemic hit some groups harder than others, like poor people, minorities,
and frontline workers. This showed that there are already big inequalities in
society that need fixing.
But the pandemic also pushed scientists to work together like never before to
find vaccines and treatments. Many vaccines were made and given to people
worldwide, giving hope that the pandemic will eventually end.
As we keep dealing with COVID-19, we should remember to be ready for

future health problems and work together to protect everyone's health and
happiness.
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1.4 Immediate Effects on the Banking Industry
The immediate effects on the banking industry can vary depending on factors
such as economic conditions, regulatory changes, and technological
advancements. Some common immediate effects include shifts in interest rates,
changes in consumer behavior (e.g., increased or decreased borrowing), and
adjustments to investment strategies by financial institutions.
1.4. 1. Branch Closures and Remote Work:
1. Branch Closure:
• With the advancement of digital banking technologies and the increasing
preference for online and mobile banking, many banks are closing
physical branches.
• Immediate effects include cost savings for banks as they reduce expenses
related to maintaining and staffing physical branches.
• However, branch closures can also result in job losses for branch
employees, leading to immediate economic impacts on communities
where branches are shuttered.
• 2. Remote Work:
• The COVID-19 pandemic accelerated the adoption of remote work
across industries, including banking.
• Immediate effects of remote work in the banking industry include the

rapid deployment of remote access technologies to enable employees to
work from home.
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• Banks have had to invest in cybersecurity measures to ensure the security
of remote work environments, protecting sensitive customer data and
financial transactions.
• While remote work offers flexibility for employees, it also presents

challenges such as maintaining productivity, collaboration, and ensuring
regulatory compliance in a remote setting.
• Longer-Term Impacts:
• Branch Closure:
• In the long term, the closure of physical branches may lead to increased
reliance on digital channels for banking services.
• This shift could further drive innovations in digital banking technologies,

such as mobile apps, AI-powered chatbots, and virtual assistants, to
enhance customer experience and accessibility.
• Banks may need to invest in digital literacy programs to ensure that all
customers can effectively use online and mobile banking platforms.
• Remote Work:
• The shift to remote work may become more permanent as banks realize
the benefits of cost savings, increased employee satisfaction, and access
to a broader talent pool.
• This could lead to a reevaluation of office space needs, with banks

potentially downsizing physical office locations or implementing flexible
workspace arrangements.
• Remote work also opens up opportunities for banks to tap into global
talent pools and reduce geographical barriers in hiring.
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1.4. 2. Digital Acceleration
The banking industry is changing a lot because of technology. This means

banks are using digital tools more to do things like help customers, make their
operations run smoother, and manage risks better. Let's break it down:
Immediate Effects on Customer Service:
• Digital tools like mobile apps and chatbots are making banking easier for
customers. They can bank anytime, anywhere.
• Banks are spending a lot on digital stuff to keep customers happy and stay
competitive. They use fancy tech like AI to understand what customers want
and give them better support.
• This makes customers happy because they like how easy it is to bank online,
and they stick with the bank.
• Immediate Effects on Operational Efficiency:
• Digital tools are making banks work faster and cheaper by automating things
that used to be done by people.
• Opening accounts and handling documents is quicker and easier now.
• Banks are using cloud technology to be more flexible and adapt to changes
faster. Immediate Effects on Risk Management
• Banks are using high-tech security measures like fingerprint scanning and
fancy software to spot any suspicious activity they're also working closely
with regulators and other banks to share information and keep customer data
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1.5 Impact on Banking Customer
The world's money system can change a lot and sometimes has big problems,
during the COVID-19 pandemic. This can make it hard for people and
businesses to manage their money. When things get tough, banks might let
people pause paying back their loans for a while to help out. This essay talks
about how this helps people in the short term but can cause issues in the long
run.
1.5. 1 . Financial Hardship and Loan Deferrals :
Short-term Help with Loan Pauses:

• When people are struggling with money, banks might let them stop
paying back loans for a bit.
• This helps people by giving them a break from worrying about paying
loans every month.
• It's especially helpful for people who lost their jobs, have less money
coming in, or have unexpected bills.
Challenges and Limits:

• Pausing loan payments only helps for a while and doesn't fix the main
money problems.
• People might still have to pay extra interest later, making the loan more
expensive overall.
• Also, not everyone can get these loan pauses, so some people are left
without help.
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Long-term Effects:
• Relying on loan pauses for too long can make people owe even more money
later.
• People who pause loan payments might also hurt their credit scores, making
it harder to borrow money in the future.
• Long-lasting money problems can make people really stressed out and
anxious.
How Customers Feel:

• How helpful these loan pauses are depends on how well each bank handles
them.
• People like when banks are clear about what's happening and give them
options for paying back loans.
• If banks don't do this well, it can make people upset.
1.5. 2 . Increased Cybersecurity Risks :
The banking sector is facing more cyber threats, which can hurt customers in
many ways. This essay will talk about how customers are affected by these
risks.
One big worry for banking customers is losing money. Cyberattacks like fake
emails, viruses, and stealing accounts can lead to unauthorized transactions and
direct money loss. For example, if someone falls for a fake email and gives
away their online banking details, hackers can steal money from their account.
Sometimes, hackers even move money to other accounts, making it hard for
customers to get it back.
Also, these risks can make customers not trust banks. When people feel like
their money isn't safe, they might avoid online banking or not share important
info with their bank. This lack of trust can make customers unhappy and they
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might go to other banks they think are safer. So, banks can lose customers and
their good reputation because of cyber attacks.
Apart from losing money and trust, these risks can also hurt customers
emotionally. When personal info gets stolen, customers can be scared of
identity theft and fraud. This can make them stressed and worried about what
might happen. Plus, feeling like their privacy was invaded can make customers
feel helpless and unsafe.
And it's not just about individual customers. Big cyberattacks on banks can
mess up the whole economy. If a major bank gets attacked, it can mess up
money flow and cause problems for businesses, people, and governments. This
can even lead to financial crises and panic, making things worse for customers.
To deal with these risks, both banks and customers need to be careful. Banks
should use strong security measures like encryption, double-checking
identities, and watching for problems in real-time. They should also teach
customers about cyber threats so they can spot and handle them.
Customers also need to do their part by using strong passwords, being careful
with emails, checking their accounts often, and telling the bank right away if
they see anything suspicious. By working together, banks and customers can
make banking safer for everyone.
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1.5 Regulatory Responsibility and Changes
1.6. 1. Regulatory Relief Measure:
To provide an overview of regulatory responses and changes in regulatory relief

measures, we can focus on recent trends and developments.
1. Contextual Background
• Explanation of the regulatory environment pre-crisis.
• Identification of the specific crisis or event prompting regulatory responses
(e.g., COVID-19 pandemic, financial crisis, natural disaster).
2. Immediate Regulatory Responses

• Description of the initial regulatory actions taken in response to the crisis.
• Examples of emergency measures implemented by regulatory bodies or
governments.
• Analysis of the rationale behind these responses and their intended impact.
3. Longer-Term Regulatory Changes

• Discussion of regulatory changes implemented in the aftermath of the crisis.
• Examination of how these changes differ from pre-crisis regulations.
• Evaluation of the effectiveness of these changes in addressing underlying
issues revealed by the crisis.
4. Regulatory Relief Measures

• Overview of relief measures provided to affected industries or sectors.
• Analysis of the objectives of these relief measures (e.g., supporting
businesses, protecting consumers, maintaining stability).
• Examination of the short-term and long-term implications of these relief
measures.
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5. Challenges and Criticisms
• Identification of challenges faced in implementing regulatory responses and

relief measures.
• Analysis of criticisms or concerns raised regarding the adequacy or
appropriateness of these responses.
• Discussion of potential unintended consequences of regulatory changes or
relief measures.
6. Case Studies or Examples
• Presentation of specific case studies or examples illustrating key points

discussed.
• Comparison of regulatory responses and relief measures across different
jurisdictions or industries.
1.6.2. Compliance Challenges:
Regulatory changes and compliance measures are critical components of any

business operation, particularly in industries subject to stringent oversight, such
as finance, healthcare, and environmental protection. In recent years, several
factors have contributed to an evolving regulatory landscape, posing significant
challenges for organizations striving to remain compliant while navigating
complex legal frameworks. This paper explores some of the key regulatory
changes and compliance challenges faced by businesses today.
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1. Introduction to Regulatory Changes:
Begin by outlining the overarching trends driving regulatory changes in various

industries. This may include factors such as advancements in technology, shifts
in consumer behavior, global economic developments, and government
priorities.
2. Industry-Specific Regulatory Updates:
Dedicate sections to discussing regulatory changes specific to different

industries. For example, in the financial sector, highlight updates to anti-money
laundering (AML) regulations, data privacy laws like GDPR or CCPA, and
changes in tax codes. In healthcare, focus on updates to HIPAA regulations,
FDA approvals, and changes in reimbursement policies. In environmental
protection, discuss updates to emissions standards, waste disposal regulations,
and renewable energy incentives.
3. Compliance Challenges:
After discussing regulatory changes, delve into the challenges organizations

face in maintaining compliance. These challenges may include:
a) Complexity:
Many regulations are complex and subject to interpretation, making compliance

a daunting task.
b) Cost:
Compliance efforts often require significant financial resources, including

investment in technology, staff training, and legal counsel.
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c) Risk Management:
Compliance failures can result in substantial fines, legal penalties, damage to

reputation, and loss of business.
d) Data Security:
Compliance often involves handling sensitive data, necessitating robust

cybersecurity measures to protect against breaches.
e) Globalization:
Multinational companies must navigate varying regulatory regimes across

different jurisdictions, adding layers of complexity to compliance efforts.
f) Rapid Changes:
Regulatory landscapes can evolve rapidly, requiring organizations to stay agile

and proactive in adapting to new requirements.
4. Strategies for Effective Compliance:
Provide recommendations for organizations to enhance their compliance

efforts, such as:
i. Investing in Technology:
Implementing compliance software and automation tools can streamline

processes and improve accuracy.
ii. Training and Education:
Continuous training programs ensure employees understand regulatory

requirements and their responsibilities in maintaining compliance.
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iii. Collaboration and Communication:
Foster collaboration between departments to ensure a holistic approach to

compliance, and maintain open lines of communication with regulators to stay
informed of changes.
iv. Regular Audits and Reviews:
Conduct regular audits and reviews of compliance processes to identify areas

for improvement and address any non-compliance issues promptly.
v. Engagement with External Experts:
Seek guidance from legal advisors, consultants, and industry associations to

stay abreast of regulatory changes and best practices.
By addressing these aspects in a comprehensive manner, organizations can

better understand the regulatory landscape, navigate compliance challenges,
and implement effective strategies to ensure adherence to applicable laws and
regulations.
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1.7 Adaptation and Response by Banks
Digital transformation has become imperative for banks to stay competitive in

today's rapidly evolving financial landscape. As technology continues to
reshape customer expectations and disrupt traditional banking models, banks
are compelled to adapt and respond strategically to these changes. Here's an
overview of how banks are navigating digital transformation initiatives.
1.7. 1 . Digital Transformation Initiatives:
1. Putting Customers First: They're focusing on making customers happy by

using digital tools like apps and websites that work well and give personalized
help.
2. Using Data and AI: They're using data and artificial intelligence to
understand customers better, stop fraud, and suggest the right products.
3. Working Together Quickly: They're working in teams and being flexible

to come up with new ideas fast and keep up with what customers want.
4. Keeping Things Safe: They're making sure to protect customer information

and follow rules about banking.
5. Teaming Up with Others: They're teaming up with smaller companies and

other big tech companies to bring in new ideas and make banking easier.
6. Updating Old Systems: They're fixing old computer systems to make them
faster and more modern.
7. Always Learning and Changing: They know things are always changing,
so they're always trying to improve and do things better for customers.
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1.7. 2 . Customer Support and Engagement Strategies:
Banks have changed a lot in how they help and interact with customers
recently. Here's a breakdown of what they're doing:
1. Going Digital: Banks are using apps, online chats, and social media more
to help customers. This means you can get help 24/7 and talk to them in real-
time, making things easier.
2. Personalizing Services: They're using your info to give you personalized

suggestions and offers, which makes you happier and helps them sell more
stuff.
3. Using Robots and AI: Banks are using robots and smart tech to answer
questions quickly and efficiently, saving time and money.
4. Making Things Consistent Everywhere: They're trying to make sure your

experience is the same whether you talk to them online, in person, or on the
phone.
5. Keeping Your Money Safe: With more online banking, they're making
sure your info stays safe with things like fingerprint scans and encryption.
6. Listening to You: Banks are asking for your opinions and using them to
make things better, which helps them improve and keep you happy.
7. Teaching about Money: They're also trying to help you understand money
better, so they offer workshops and resources to improve your financial
knowledge.
Overall, banks are changing how they help customers by using technology
more and focusing on making things easier and safer for you.
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1.8 Long-Term Implication and Future Outlook
Customers are changing what they like, and it's affecting a lot of different
businesses. Here's a simple rundown of how it's impacting different industries:
1.8. 1 . Shift in Customer Preferences:
1. Online Shopping and Stores:

What's Happening: More people are buying stuff online instead of going to
stores, which is making traditional stores have to change or close down. This
means more delivery services and changes in how people get jobs.
What's Next: Online shopping will keep growing because it's easy and
people like it. Stores will try to make both online and in-store shopping work
together better.
2. Food and Drinks:

What's Happening: People want food that's healthy and good for the
environment, so there's more interest in organic and locally made products.
Companies are investing in making food that's better for you and the planet.
What's Next: People will keep wanting healthier and eco-friendly food
options. More companies will focus on where their food comes from and how
it's made.
3. Cars:
What's Happening: People are interested in electric cars, self-driving
features, and sharing rides instead of owning cars. This means car companies
are making more electric cars and investing in technology for self-driving cars.
What's Next: More people will start driving electric cars because of rules, the
environment, and better batteries. Sharing rides will become more popular, and
it will change how we think about owning cars.
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4. Healthcare:
What's Happening: People want healthcare that's easier to access and more
personalized, so there's more interest in things like video doctor visits and
health apps. This is making healthcare providers change how they do things.
What's Next: More people will use video visits and apps for healthcare,
which will make it easier and cheaper. Technology like AI will help make
treatment plans better suited to each person.
5. Travel and Hotels:

What's Happening: People want travel experiences that are unique and good
for the environment, so there's more interest in eco-friendly places and
activities. This is making travel businesses rethink how they operate.
What's Next: People will keep looking for unique and eco-friendly travel
options. Digital tools will help people find and book trips that match what they
want.
Overall, as customers change what they like, businesses need to change too.
Companies that can keep up with these changes will do well, but those that don't
might struggle. Being flexible and focused on what customers want will be
really important.
1.8. 2 . Resilience Testing and Risk Management:
Banks face many risks like ups and downs in the economy and rules changing.
Lately, it's clear that being able to handle tough times and managing risks well
is super important, especially after big crises like the global financial crash and
the COVID-19 pandemic. This paper talks about what the future holds for how
banks test their toughness and manage risks, looking at new trends, problems,
and ways to make things better.
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New Trends in Testing Toughness and Managing Risks:
1. Using Fancy Tech: Banks are using high-tech stuff like AI, machine
learning, and big data to handle risks better. These help banks look at lots of
data quickly, spot risks more accurately, and make better choices.
2. Keeping Safe from Cyber Attacks: Cybersecurity is a big deal now because
of all the cyber threats and data breaches. Testing toughness means making sure
banks can handle cyber-attacks. Since cyber threats keep changing, banks
always need to beef up their cybersecurity.
3. Dealing with Climate Risks: Banks now see climate change as a big risk to
the whole system. So, they're figuring out ways to manage these risks. This
means looking at how climate stuff might affect what banks do and telling
investors and others about these risks.
Challenges in Testing Toughness and Managing Risks:
1. Getting Good Data: To test toughness well, banks need good and timely
data. But sometimes, it's hard to get data that's good enough. Fixing this means
investing in better ways to handle data.
2. Following Complex Rules: Banks have to follow lots of rules, which can be
really tricky. Trying to follow all these rules while still being tough and coming
up with new ideas is tough. So, it's important for regulators and banks to work
together to make things easier.
2. Being Ready for Anything: Banks need to be able to keep going even when
things go wrong. But that's hard! It means looking at everything from people
to tech to outside partners and having plans for when things go south.
31
Ways to Make Testing Toughness and Managing Risks Better:
1. Putting All Risks Together: Banks should look at all kinds of risks together,
not separately. This way, they can see how one risk might affect another and
come up with better plans to deal with them.
2. Testing Under Pressure: Testing how tough banks are by making them
handle tough situations helps find weak spots. So, banks should do these kinds
of tests often, looking at different tough situations like bad economies or cyber-
attacks.
3. Using More Tech and Ideas: Banks should keep using new tech and smart
ideas to get better at testing toughness and managing risks. This means using
AI and machine learning to see risks coming, using better cybersecurity tools,
and being flexible with things like cloud computing.
32
1.9 Strategies for Banks to Adapt and Thrive in the post-
pandemic Era
To do well after the pandemic, banks need to change how they work. Here are
some important things they can do:
1. Go Digital: Make online and mobile banking better by improving the

websites and apps, making them safe "Collaborate and cooperate with others.",
and connecting them better.
2. Support Remote Work: Help employees work from home better by giving
them tools to work securely online.
3. Make Customers Happier: Make banking easier and more personal for
customers by using data to understand what they like and want.
4. Be Flexible: Make decisions faster and change things more easily by

working in smaller teams and trying new ideas.
5. Stay Safe: Make sure the bank is safe from things like cyber-attacks and
other risks by testing and being careful.
6. Think About the Environment: Invest in projects that help the planet and
society, like supporting green businesses.
7. Work Together: Team up with other companies to make new and better
services for customers.
8. Help Everyone Access Banking: Make sure everyone can use banking
services, especially people who don't have much money.
9. Follow the Rules: Make sure the bank follows the laws and rules to avoid
getting in trouble.
33
Chapter 2
Research Methodology
2.1 Statement of Problem
The COVID-19 pandemic caused big problems for many parts of the economy,
including banks. Lockdowns made businesses close, many people lost their
jobs, and how people used banks changed a lot. Banks had to quickly change
how they worked to help their customers and keep their business going. This
study looks at how the pandemic affected banks and their customers, what
problems they faced, how they adapted, and what this means for the future of
banking.
2.2 Objectives of the Study
1. To Study how COVID-19 affected bank's money and stability.

2. To Study how people changed their use of banks during COVID-19.
3. To Study how more people started using online banking because of
COVID-19 and how it affected them.
4. To Study how banks tried to make sure everyone could use their services
during COVID-19 and if it worked.
5. To Study how banks are supposed to manage customer support and
engagement strategies during COVID-19.
6. To Study how the bank suppose to manage financial hardship and loan
deferrals during COVID-19.
34
2.3 Hypothesis
H0: The COVID-19 Pandemic has very much impacted to banking industry and
its Customers
H1: The COVID-19 Pandemic has very less impacted to banking industry and
its Customers
2.4 Scope of the Study
The study would look at how the COVID-19 pandemic affected banks and their
customers. It might cover things like how customers acted differently, how
banks changed how they worked, how many people started using online
banking, how financially stable customers were, if they could pay back loans
on time, any new rules, and how well banks coped with the crisis. It could also
check out what banks did to lower risks and help customers during the tough
times.
2.5 Limitations of the Study
1. Sample Bias: The study might have only looked at certain banks or
customers, so the results might not represent the whole industry or customer
group.
2. Time Limits: The study might have only looked at a specific time period, so
it might not show the full impact of the pandemic over time.
3. Data Accuracy: The information used in the study might be incomplete or

old, which could make the results less accurate.
35
4. External Factors: Other things outside the study's focus, like government
rules or the global economy, might have influenced the results.
5. Limited Focus: The study might have only looked at some parts of the
banking industry or certain types of customers, missing out on broader impacts
or differences within the industry.
6. Response Bias: The answers from banks and customers might be influenced
by different factors, like wanting to give socially acceptable answers, or when
the data was collected, which could make the results biased.
7. Generalizability: The results might not apply to all places or countries,

because the pandemic's effects can be very different depending on where you
are and how wealthy people are.
2.6 Sources of Data

There are basically two sources of Data:
PRIMARY DATA:
Primary Data is collected by the method of survey in the Google form, which
includes a questionnaire of 22 questions.
SECONDARY DATA:
Secondary Data is collected through the internet, and websites related to
research pages, books, and newspapers.
36
Chapter 3
Review of Literature
Literature review as per the name show it is process of reviewing of research

literature which is done by any researchers in past. A literature review is an
exploration to identify the related research to make or set relation with current
research project with a conceptual and theoretical context:
1. Palak Khandelwal and Ruchi Jain(2022): This research page

highlighted, a few important things make people use online banking
more during COVID-19. People prefer online banking because it's easy.
The websites and apps should be easy to use and make customers feel
safe like they do when they visit a regular bank. To keep people using
online banking, businesses can offer rewards like gift certificates and
discounts. Customers like using online banking for paying bills because
it's quick and they don't want to be fined for being late. This research is
important for understanding online banking. Businesses can encourage
people to use online banking for other things, like paying loans, by
making sure their privacy is protected and by showing that transactions
are safe. They should also make it easy for people to contact them if
they have concerns. During COVID-19, businesses can use marketing
and rewards to get more people to use online banking.
2. Ambrish Kumar Mishra, Archana Patel, and Sarika Jain (2021): A study
called "Impact of Covid-19 Outbreak on Performance of Indian
Banking Sector" this research page highlighted COVID-19 affected the
Indian banking sector. They did this by making a big collection of
information called an ontology (Covid-19-IBO) to understand things
better. Then, they looked at some key questions about how the Indian
economy was affected.
37
3. Vikas Kumar and Sanjeev Kumar (2021): The study called "Impact of
Covid-19 on Indian Economy with Special Reference to Banking
Sector: An Indian Perspective" this research page highlighted COVID-
19 has affected the Indian economy and its banking sector. It also
examines the actions taken by the Reserve Bank of India and the Indian
government, both at the national and state levels, to help improve the
country's current economic situation.
4. Dr. Jitender Singh and Dr. B. S. Bodla (2020): This study called "Covid-
19 Pandemic and Lockdown Impact on India's Banking Sector: A
Systemic Literature Review" this research page highlighted the
pandemic and lockdown affected banks and NBFCs in India. It talks
about how the lockdown forced many businesses, schools, offices, and
transportation to shut down. It looks at what economists, financial
institutions like IMF and World Bank, and consulting firms have said
about this.
5. Dr. Nilam Panchal(2021): This research page highlighted the COVID-

19 outbreak has made it hard for banks in India and globally. It's not
just banks, but all industries are struggling. To recover, we need solid
plans. The RBI should ensure there's enough money available, and the
government should make decisions to reduce economic stress. We need
to keep the money and investment markets working smoothly. COVID-
19 has badly hurt the banking sector, and the number of bad loans won't
be clear until the moratorium ends. Experts say it'll take time for Indian
banks to recover, maybe until after 2023. Recovering will be harder for
countries like India. People hope the economy will bounce back in 2021
with vaccines, but it might take a year and a half or more. The recovery
path is uncertain, so we need to focus on steps to make banks profitable
again and keep money flowing.
38
6. CA Narendra Kumar Bansald (2020): A study on 'COVID-19 on Indian
Economy' this research page highlighted the government used to collect
taxes through something called GST, which was applied to the sale of
goods or services. Now, with the whole country in lockdown, the buying
and selling of goods and services have been impacted, which means the
government will likely collect less money from GST.
7. .Dr. Priyanka Bobade and Prof. Anu Alex (2020): A Study on 'THE
EFFECT OF COVID-19 IN INDIAN BANKING SECTOR' this
research page highlighted a financial institution creates a good
workplace for its employees and helps them learn new skills for new
ways of working. They improve how they serve customers through
digital channels. The Reserve Bank of India (RBI) makes rules to make
sure businesses keep running smoothly. They work with other
organizations to make processes better and improve customer
experiences. They also adjust which industries and customers they focus
on based on growth and risk. Because of COVID-19, the government
encourages people to come up with new ways to do business. They're
focusing on creating strong digital systems using the latest technology.
In simple terms, financial companies make sure their employees are
trained and have a good working environment. They also use digital
tools to serve customers better. The RBI sets rules to keep businesses
going, and they collaborate with others to improve processes. They also
adapt their focus based on what's growing and what's risky. Because of
COVID-19, the government wants people to come up with new business
ideas. They're also pushing for stronger digital systems with the latest
tech.
8. Sharma and Mathur (2021): This research page highlighted the

lockdown affected Indian banks after July 2020. Researchers found
that because of the pandemic, people became more cautious and
started saving money instead of borrowing. This resulted in more
money being kept in bank accounts.
39
9. Dev and Sengupta (2020): This research page highlighted the impact
of COVID-19 on the Indian economy along with a detailed analysis of
the different sectors that suffered from COVID-19. They highlighted
that COVID-19 has caused problems for the Indian economy. One
area that's been hit hard is the banking sector, especially public sector
banks. These banks are struggling because they're facing big losses
from loans that aren't being paid back, known as nonperforming assets
(NPAs). This means they're having a tough time managing their
finances.
10. Ashish Bagewadi & Dewang Dhingra(2020): 'The Impact of COVID-

19 on Financial Markets, Banking Systems, and the Overall Economy'
this research page highlighted COVID-19 has affected the banking
sector, both before and after the pandemic. It also discusses the impact
of COVID-19 on the environment. The research paper, titled "COVID-
19 Effects on Banking Sector: An Indian Perspective," highlights
various issues such as decreased productivity in companies, disruptions
in the supply chain, obstacles in manufacturing, and challenges in
healthcare systems. It mentions that the banking and financial systems
have experienced losses, including increased bad loans and reduced
income in the tourism and entertainment sectors.
11. Pallavi (2020): This research page highlighted COVID-19 has brought
about significant challenges for businesses, which need careful and
informed strategies from both political and business leaders. This crisis
is unpredictable and likely to result in new ways of managing and
planning that support organizations and economies in the future.
40
12. Dr .S. Anitha (2021): 'A STUDY ON BANKING SECTOR
PERFORMANCE DURING COVID-19 PANDEMIC PERIOD' this
research page highlighted a monetary institution is making changes to
how they operate to make things better for their employees and to adapt
to new ways of working. They're using technology to serve customers
better and the RBI is setting rules to make sure businesses can keep
running smoothly. They're also working with others to improve
processes and make smarter decisions based on growth and risks.
Because of COVID-19, the government is encouraging businesses to
come up with new ideas to succeed in the changing environment.
They're focusing on building strong digital systems using the latest
technology. These changes are making the financial system more
efficient, but they recognize the need for more improvements. For
example, they've formed a committee to look at how money can move
more easily across borders. Overall, they're feeling positive about what
they've achieved so far and are ready to tackle whatever comes next.
13. Ahmed S. (2020) on 'A study on impact of covid-19 on banking sector'

this research page highlighted the COVID-19 pandemic has caused big
changes in how banks work. It's made it hard for banks to operate
normally because they've had to close branches, limit face-to-face
interactions, and move more services online. This has made things
tough for both customers and banks. Banks are finding it hard to keep
enough money on hand, and customers are having trouble getting
services and loans. But the authors think that the pandemic has also
given banks a chance to come up with new ideas and adjust to the
changes happening.
41
14. Kaya and Şen (2020) This research page highlighted the impact of
COVID-19 on the banking industry in Turkey, the authors found that
the pandemic has accelerated digital transformation in the sector. Banks
have increased their investments in digital platforms and services to
ensure uninterrupted customer access and provide remote banking
services. The authors suggest that this shift towards digital banking is
likely to persist even after the pandemic.
15. Li and Wang (2020) This research page highlighted the impact of
COVID-19 on the banking industry in China, the authors found that the
pandemic has led to increased financial risks and challenges for banks.
Loan defaults and non-performing assets have surged, impacting
profitability and liquidity. The authors recommend that banks adopt risk
management strategies and collaborate with government entities to
mitigate the negative effects.
16. Nuno Fernandes (2020);'A study on Economic effects of covid-19 on

the world economy' this research page highlighted When countries rely
a lot on trading with other countries, they suffer more during a crisis.
The findings show that typically, every extra month of a crisis causes
the global economy to shrink by about 2.5-3%. This means the world's
total production of goods and services becomes smaller during the
crisis, affecting everyone
17. Suhas. D, H N. Ramesh, (2018): This research page highlighted how

electronic banking makes banking transactions faster and easier. They
talked about the benefits and services e-banking offers to customers, as
well as the challenges people face when adopting it. They mentioned
that many studies have looked at how COVID-19 affects mobile
banking, internet banking, real-time banking, and customer satisfaction.
Their study focuses on how COVID-19 impacts the advanced banking
services provided by Axis Bank and HDFC Bank in India.
42
18. Priyajit Kumar Ghosh (2022): A Study on 'A Study on Impact of the
COVID-19 Pandemic on the Indian Banking Sector' this research page
highlighted the coronavirus outbreak has really hurt every part of the
world recently. In India, it's been especially tough on the economy,
including banks. They're facing challenges and need to use new
technology to adapt. This pandemic has shown where banks need to
improve. They should focus on tech and make things easier to keep
employees and customers safe. Banks also need to train their staff on
new ways of working. Because of the pandemic, people are saving more
money instead of borrowing, which means less money going out in
loans. This has caused a shortage of money in banks. The government
and RBI are trying to help by offering loan programs, but more needs
to be done to fix the problems caused by COVID-19 We've learned we
need a stronger economy to handle crises like this in the future.
19. Abeysekera and Kularatne (2020): on the impact of COVID-19 on small

and medium-sized enterprises (SMEs) and their access to finance, the
authors highlight the importance of government support and bank
intervention. SMEs have faced liquidity challenges and difficulties in
obtaining loans due to the economic downturn. The authors emphasize
the need for tailored financial assistance programs to help SMEs
navigate these challenges.
43
Chapter 4
Data Analysis and Interpretation
1) Gender of the Responded?
Male 85
Female 15
Prefer not to say 0
Interpretation:
As per data collection and analysis from the above chart, here are most of the
male
response sent as compared to female respondents from the above table shows
that
85% of respondents are male and 15% of respondents are female.
44
2) Which of the following groups do you belong to?
Above 18 23
20-25 43
26-30 9
Above 30 25
Interpretation:
As per data collection and analysis from the above chart, the majority of
respondents are from the 20-25 age group which is 43% of respondents, and
then above 30 age group respondents are 25% respondents after this the above
18 age group has 23% respondents then lastly the 26-30 age group has 9%
respondents which is low compare to other age groups.
45
3) Which of the following occupations do you belong to?
Student 55
Salaried Personnel 36
Business Personnel 7
Home Maker 1
Job 1
Interpretation:
As per data collection and analysis from the above chart, the majority of
respondents were students which is 55% then the salaried personnel occupation
has respondents 36% on the other hand, business personnel has respondents 7%
and the remaining homemaker and job occupation has 1% each respondents.
46
4) How frequently do you visit your bank branch compared to before the
COVID-19 pandemic?
More frequently 25
Sometime 28
Less frequently 29
Not Visited 18
Interpretation:
As per data collection and analysis from the above chart, the majority 29% of
respondents visited bank branches less frequently compared to before the
COVID-19 pandemic. Then 28% of respondents visit their bank branch
sometime compared to before the COVID-19 pandemic. 25% of respondents
visited more frequently to their bank branch compared to before the COVID-19
pandemic 18% of the respondents have not visited their bank branch compared
to before the COVID-19 pandemic.
47
5) Which banking services have you utilized more during the pandemic
compared to before?
Online banking 51
Mobile banking apps 41
ATM services 6
Telephone banking 2
Interpretation:
As per data collection and analysis from the above chart, The 51% of
respondents have used online banking services more during the pandemic
compared to before and 41% of respondents have used Mobile Banking app
services more during the pandemic compared to before. The ATM services is
used by only 6% of respondents more during the pandemic compared to before
and only 2% of respondents have used Telephone banking services more during
the pandemic compared to before.
48
6) Have you encountered any difficulties in accessing banking services
due to COVID-19 restrictions?
Yes, frequently 24
Yes, occasionally 23
Yes, Might be 30
No, not at all 23
Interpretation:
As per data collection and analysis from the above chart, 30% of respondents
might have encountered difficulties in accessing banking services due to
COVID-19 restrictions. And 24% of respondents have frequently encountered
difficulties in accessing banking services due to COVID-19 restrictions.23%
of the respondents occasionally encountered difficulties in accessing banking
services due to COVID-19 restrictions.23% of respondents have not at all
encountered any difficulties in accessing banking services due to COVID-19
restrictions.
49
7) Have you noticed an increase in fraudulent activities or scams related
to banking during the pandemic?
Yes, a significant increase 25
Yes, Very much 33
Yes, a slight increase 24
No, not really 18
Interpretation:
As per data collection and analysis from the above chart, 33% of respondents
have very much noticed an increase in fraudulent activities or scams related to
banking during the pandemic 25% of respondents have noticed, a significant
increase in fraudulent activities or scams related to banking during the
pandemic.24% of respondents have noticed a slight increase in fraudulent
activities or scams related to banking during the pandemic. Only 18% of
respondents not really notice an increase in fraudulent activities or scams
related to banking during the pandemic.
50
8) How do you perceive the overall safety and security of online banking
during the pandemic?
Very safe and secure 32
Safe and secure 59
Unsafe 8
Very unsafe 1
Interpretation:
As per data collection and analysis from the above chart, The majority of 59%
of respondents perceive safe and secure the overall safety and security of
online banking during the pandemic.32% of the respondents perceive very
safe and secure the overall safety and security of online banking during the
pandemic.8% of the respondents perceive unsafe the overall safety and
security of online banking during the pandemic. Only 1% of the respondents
perceive very unsafe the overall safety and security of online banking during
the pandemic.
51
9) Do you think the pandemic has accelerated the adoption of digital
banking technologies?
Yes, significantly 53
Yes, somewhat 32
Yes, Strongly 14
No, not really 1
Interpretation:
As per data collection and analysis from the above chart, the majority of 53%
of respondents think the pandemic has significantly accelerated the adoption
of digital banking technologies. 32% of respondents think the pandemic has
somewhat accelerated the adoption of digital banking technologies. 14% of
respondents think the pandemic has strongly accelerated the adoption of
digital banking technologies. Only 1% of respondents think the pandemic has
not really accelerated the adoption of digital banking technologies.
52
10) Have you used contactless payment methods (e.g., mobile wallets,
contactless cards) more frequently during the pandemic?
Yes, more significantly 51
Yes, somewhat 23
Yes, Strongly 18
No, not really 8
Interpretation:
respondents used contactless payment methods (e.g., mobile wallets,
contactless cards) more frequently during the pandemic. 23% of respondents
used contactless payment methods like mobile wallets, and contactless cards
more frequently during the pandemic. 18% of respondents used contactless
payment methods like mobile wallets, and contactless cards more frequently
during the pandemic. Only 8% of respondents used contactless payment
methods like mobile wallets, and contactless cards more frequently during the
pandemic.
53
11) Have you noticed any changes in the availability of credit or loan
products from your bank during the pandemic?
More availability 36
Sometime availability 40
Less availability 21
Unavailability 3
Interpretation:
As per data collection and analysis from the above chart, the majority of 40%
of respondents noticed Sometime availability of credit or loan products from
their bank during the pandemic. 36% of respondents noticed more availability
of credit or loan products from their bank during the pandemic. 21% of
respondents noticed less availability of credit or loan products from their bank
during the pandemic. Only 3% of respondents noticed the Unavailability of
credit or loan products from their bank during the pandemic.
54
12) Do you believe the government's financial stimulus measures during
the pandemic were effective in supporting the banking Services?
Yes, very effective 40
Somewhat effective 48
Not much effective 10
Not effective 2
Interpretation:
respondents believe the government's financial stimulus measures during the
pandemic were Somewhat effective in supporting banking services. 40% of
pandemic were very effective in supporting banking services. 10% of
pandemic were not much effective in supporting banking services. Only 2%
of respondents believe the government's financial stimulus measures during
the pandemic were Not effective in supporting banking services.
55
13) How concerned are you about the long-term financial stability of
banks as a result of the pandemic?
Very concerned 40
Somewhat Concerned 28
Neutral 29
Not concerned 3
Interpretation:
respondents are very concerned about the long-term financial stability of banks
as a result of the pandemic. 29% of respondents are Neutral about the long-
term financial stability of banks as a result of the pandemic. 28% of
respondents are somewhat Concerned about the long-term financial stability
of banks as a result of the pandemic. Only 3% of respondents are somewhat
Concerned about the long-term financial stability of banks as a result of the
pandemic.
56
14) How satisfied are you with the online banking services provided by
your bank during the pandemic?
Very satisfied 40
Satisfied 38
Neutral 21
Dissatisfied 1
Interpretation:
As per data collection and analysis from the above chart, the majority 40% of the
respondents are very satisfied with the online banking services provided by their
bank during the pandemic. 38% of the respondents are satisfied with the online
banking services provided by their bank during the pandemic. 21% of the
respondents are Neutral with the online banking services provided by their bank
during the pandemic. Only 1% of the respondents are Dissatisfied with the online
banking services provided by their bank during the pandemic.
57
15) How satisfied are you with the communication and support provided
by your bank during the pandemic?
Very satisfied 33
Satisfied 43
Neutral 19
Dissatisfied 5
Interpretation:
the respondents are satisfied with the communication and support provided by
their bank during the pandemic. 33% of the respondents are very satisfied with
the communication and support provided by their bank during the pandemic.
19% of the respondents are Neutral with the communication and support
provided by their bank during the pandemic. Only 5% of the respondents are
Dissatisfied with the communication and support provided by their bank
58
16) Do you feel that your bank has offered adequate financial assistance
or relief measures during the pandemic?
Yes, significantly 25
Yes, very much 36
Yes, somewhat 30
No, not really 9
Interpretation:
the respondents feel that their bank has offered very much adequate financial
assistance or relief measures during the pandemic. 30% of the respondents
feel that their bank has offered somewhat adequate financial assistance or
relief measures during the pandemic. 25% of the respondents feel that their
bank has offered significantly adequate financial assistance or relief measures
during the pandemic. Only 9% of the respondents feel that their bank has
offered not really adequate financial assistance or relief measures during the
pandemic.
59
17) Have you switched banks or considered switching banks due to the
way your current bank handled the pandemic?
Yes, I have switched banks 20
No, but I have considered 26

switching banks
No, I have not considered 46
switching banks
May be Needed 8
Interpretation:
the respondents have not considered switching banks due to the way their
current bank handled the pandemic. 26% of the respondents have considered
switching banks due to the way their current bank handled the pandemic. 20%
of the respondents have switched banks due to the way their current bank
handled the pandemic. Only 8% of the respondents may be needed switching
banks due to the way their current bank handled the pandemic.
60
18) Do you think the pandemic has negatively affected the
trustworthiness of banks in general?
Yes, more significantly 24
Yes, somewhat 31
Yes, sometime 22
No, not really 23
Interpretation:
the respondents think that somewhat pandemic has negatively affected the
trustworthiness of banks in general. 24% of the respondents think that more
significantly pandemic has negatively affected the trustworthiness of banks in
general. 23% of the respondents think that not really pandemic has negatively
affected the trustworthiness of banks in general. Only 22% of the respondents
think that sometime pandemic has negatively affected the trustworthiness of
banks in general.
61
19) How would you rate your overall banking experience during the
pandemic compared to before?
Very nice 35
Better 39
Average 25
Bad 1
Interpretation:
the respondents rated better than their overall banking experience during the
pandemic compared to before. 35% of the respondents rate a very nice overall
banking experience during the pandemic compared to before. 25% of the
respondents rate the average overall banking experience during the pandemic
compared to before. And only 1% of the respondents rate a bad overall
banking experience during the pandemic compared to before.
62
20) How would you rate your bank's efforts in maintaining customer
service standards during the pandemic?
Excellent 32
Good 39
Average 26
Poor 3
Interpretation:
the respondents rate Excellent Bank's efforts in maintaining customer service
standards during the pandemic. 32% of the respondents rate Good Bank's
efforts in maintaining customer service standards during the pandemic. 26%
of the respondents rate Average Bank's efforts in maintaining customer
service standards during the pandemic. Only 3% of the respondents rate Poor
Bank's efforts in maintaining customer service standards during the pandemic.
63
21) What measures do you think banks should take to better support
their customers during times of crisis like the COVID-19 pandemic?
Provide more flexible 43

repayment options for loans
Enhance digital banking 38

security
Offer financial literacy 8
programs
Improve communication 11
channels with customers
Interpretation:
the respondents think that banks Provide more flexible repayment options for
loans to better support their customers during times of crisis like the COVID-
19 pandemic. 38% of the respondents think that banks Enhancing digital
banking security should be able to better support their customers during times
of crisis like the COVID-19 pandemic. 11% of the respondents think that
banks Improve communication channels with customers to better support their
64
customers during times of crisis like the COVID-19 pandemic. Only 8% of
the respondents think that banks Offer financial literacy programs to better
support their customers during times of crisis like COVID-19.
65
5. Conclusion and Suggestion
5.1 Findings
From the above pie chart out of 100 respondents, 85% of respondents are male
and 15% of respondents are female.
From the above pie chart out of 100 respondents, the majority of respondents
are from the 20-25 age group which is 43% of respondents, and then above 30
age group respondents are 25% respondents after this the above 18 age group
has 23% respondents then lastly the 26-30 age group has 9% respondents which
is low compare to other age groups.
From the above pie chart out of 100 respondents, the majority of respondents
were students which is 55% then the salaried personnel occupation has
respondents 36% on the other hand, business personnel has respondents 7%
and the remaining homemaker and job occupation has 1% each respondents.
From the above pie chart out of 100 respondents, , the majority 29% of
respondents visited bank branches less frequently compared to before the
COVID-19 pandemic. Then 28% of respondents visit their bank branch
sometime compared to before the COVID-19 pandemic. 25% of respondents
visited more frequently to their bank branch compared to before the COVID-19
pandemic 18% of the respondents have not visited their bank branch compared
to before the COVID-19 pandemic.
66
From the above pie chart out of 100 respondents, The 51% of respondents have
used online banking services more during the pandemic compared to before and
41% of respondents have used Mobile Banking app services more during the
pandemic compared to before. The ATM services is used by only 6% of
respondents more during the pandemic compared to before and only 2% of
respondents have used Telephone banking services more during the pandemic
compared to before.
From the above pie chart out of 100 respondents, 30% of respondents might
have encountered difficulties in accessing banking services due to COVID-19
restrictions. And 24% of respondents have frequently encountered difficulties
in accessing banking services due to COVID-19 restrictions.23% of the
respondents occasionally encountered difficulties in accessing banking
services due to COVID-19 restrictions.23% of respondents have not at all
encountered any difficulties in accessing banking services due to COVID-19
restrictions.
From the above pie chart out of 100 respondents, 33% of respondents have
very much noticed an increase in fraudulent activities or scams related to
banking during the pandemic 25% of respondents have noticed, a significant
increase in fraudulent activities or scams related to banking during the
pandemic.24% of respondents have noticed a slight increase in fraudulent
activities or scams related to banking during the pandemic. Only 18% of
respondents not really notice an increase in fraudulent activities or scams
related to banking during the pandemic.
67
From the above pie chart out of 100 respondents, The majority of 59% of
respondents perceive safe and secure the overall safety and security of online
banking during the pandemic.32% of the respondents perceive very safe and
secure the overall safety and security of online banking during the
pandemic.8% of the respondents perceive unsafe the overall safety and
security of online banking during the pandemic. Only 1% of the respondents
perceive very unsafe the overall safety and security of online banking during
the pandemic.
From the above pie chart out of 100 respondents, , the majority of 53% of
respondents think the pandemic has significantly accelerated the adoption of
digital banking technologies. 32% of respondents think the pandemic has
somewhat accelerated the adoption of digital banking technologies. 14% of
respondents think the pandemic has strongly accelerated the adoption of
digital banking technologies. Only 1% of respondents think the pandemic has
not really accelerated the adoption of digital banking technologies.
respondents used contactless payment methods (e.g., mobile wallets,
contactless cards) more frequently during the pandemic. 23% of respondents
used contactless payment methods like mobile wallets, and contactless cards
more frequently during the pandemic. 18% of respondents used contactless
payment methods like mobile wallets, and contactless cards more frequently
during the pandemic. Only 8% of respondents used contactless payment
methods like mobile wallets, and contactless cards more frequently during the
pandemic.
68
From the above pie chart out of 100 respondents, the majority of 40% of
respondents noticed Sometime availability of credit or loan products from
their bank during the pandemic. 36% of respondents noticed more
availability of credit or loan products from their bank during the pandemic.
21% of respondents noticed less availability of credit or loan products from
their bank during the pandemic. Only 3% of respondents noticed the
Unavailability of credit or loan products from their bank during the
pandemic.
pandemic were Somewhat effective in supporting banking services. 40% of
pandemic were very effective in supporting banking services. 10% of
pandemic were not much effective in supporting banking services. Only 2%
of respondents believe the government's financial stimulus measures during
the pandemic were Not effective in supporting banking services
respondents are very concerned about the long-term financial stability of banks
as a result of the pandemic. 29% of respondents are Neutral about the long-
term financial stability of banks as a result of the pandemic. 28% of
respondents are somewhat Concerned about the long-term financial stability
of banks as a result of the pandemic. Only 3% of respondents are somewhat
Concerned about the long-term financial stability of banks as a result of the
pandemic.
69
From the above pie chart out of 100 respondents, , the majority 40% of the
respondents are very satisfied with the online banking services provided by their
bank during the pandemic. 38% of the respondents are satisfied with the online
banking services provided by their bank during the pandemic. 21% of the
respondents are Neutral with the online banking services provided by their bank
during the pandemic. Only 1% of the respondents are Dissatisfied with the online
banking services provided by their bank during the pandemic.
From the above pie chart out of 100 respondents, the majority 43% of the
respondents are satisfied with the communication and support provided by
their bank during the pandemic. 33% of the respondents are very satisfied with
the communication and support provided by their bank during the pandemic.
19% of the respondents are Neutral with the communication and support
provided by their bank during the pandemic. Only 5% of the respondents are
Dissatisfied with the communication and support provided by their bank
respondents feel that their bank has offered very much adequate financial
assistance or relief measures during the pandemic. 30% of the respondents
feel that their bank has offered somewhat adequate financial assistance or
relief measures during the pandemic. 25% of the respondents feel that their
bank has offered significantly adequate financial assistance or relief measures
during the pandemic. Only 9% of the respondents feel that their bank has
offered not really adequate financial assistance or relief measures during the
pandemic.
70
respondents have not considered switching banks due to the way their current
bank handled the pandemic. 26% of the respondents have considered
switching banks due to the way their current bank handled the pandemic.
20% of the respondents have switched banks due to the way their current
bank handled the pandemic. Only 8% of the respondents may be needed
switching banks due to the way their current bank handled the pandemic.
respondents think that somewhat pandemic has negatively affected the
trustworthiness of banks in general. 24% of the respondents think that more
significantly pandemic has negatively affected the trustworthiness of banks in
general. 23% of the respondents think that not really pandemic has negatively
affected the trustworthiness of banks in general. Only 22% of the respondents
think that sometime pandemic has negatively affected the trustworthiness of
banks in general.
respondents rated better than their overall banking experience during the
pandemic compared to before. 35% of the respondents rate a very nice overall
banking experience during the pandemic compared to before. 25% of the
respondents rate the average overall banking experience during the pandemic
compared to before. And only 1% of the respondents rate a bad overall
banking experience during the pandemic compared to before.
71
respondents rate Excellent Bank's efforts in maintaining customer service
standards during the pandemic. 32% of the respondents rate Good Bank's
efforts in maintaining customer service standards during the pandemic. 26%
of the respondents rate Average Bank's efforts in maintaining customer
service standards during the pandemic. Only 3% of the respondents rate Poor
Bank's efforts in maintaining customer service standards during the pandemic.
respondents think that banks Provide more flexible repayment options for
loans to better support their customers during times of crisis like the COVID-
19 pandemic. 38% of the respondents think that banks Enhancing digital
banking security should be able to better support their customers during times
of crisis like the COVID-19 pandemic. 11% of the respondents think that
banks Improve communication channels with customers to better support their
customers during times of crisis like the COVID-19 pandemic. Only 8% of
the respondents think that banks Offer financial literacy programs to better
support their customers during times of crisis like COVID-19.
72
5.2 Suggestion
some aspects are required to have successful growth in the banking sector and
satisfaction of customers for banking services.
1 There is a need for awareness among the people for E-Banking services
which are provided by several banks and these services are more encouraged
after the COVID-19 pandemic.
2 Banks should build trustworthiness among their customers in every

aspect, customers should have trust in their banks.
3 Banks should offer adequate financial assistance or relief measures to

their customers.
4 Banks should work on decreasing fraudulent activities or scams related

to banking during online or offline banking.
5 Many banks should accelerate the adoption of digital banking

technologies.
6 Banks should avoid any changes in the availability of credit for loan
products from the bank.
7 Banks should have the long-term financial stability to retain their

existing customer as well as to acquire new customers.
8 Banks should Provide more flexible repayment options for loans and also
Improve communication channels with customers.
9 Banks should ensure that there should not be any difficulties in accessing
banking services.
10 Banks should Offer financial literacy programs to provide correct and

accurate information regarding various guidelines and banking services.
73
5.3 Conclusion
During the COVID-19 pandemic, businesses worldwide, including banks,

faced numerous challenges due to government-imposed restrictions aimed at
curbing the virus's spread. These restrictions caused disruptions for businesses
and raised concerns about the economy's stability. However, banks remained
crucial as they facilitated money transactions, provided financial assistance
when necessary, and worked towards improving the overall economy.
The COVID-19 pandemic has affected the choice of visiting bank branches it
was less compared to pre covid-19 situation and many people opted to have
online banking services in against of traditional way of banking and it
provided more dependency on E-banking services it encouraged banks to use
technologies to provide safe and secure banking services to customers.
After covid-19 pandemic many banks have adopted electronic channels for
providing services and this led to a shift to electronic banking from the
traditional offline pattern of banking. Many banks are adopting all possible
aspects to retain their existing customers and to acquire new customers. banks
are Providing more flexible repayment options for loans and also Enhancing
digital banking security measures to better support their customers.
The COVID-19 pandemic has significantly changed how banks operate and
has affected their customers in a big way. Banks had to quickly switch to
digital services and focus more on helping customers manage financially
during tough times. Despite the challenges, banks have found new ways to
improve and adapt. As customers move forward after the pandemic, banks
need to keep being flexible, using technology, and understanding their
customers' changing needs. By learning from what happened during this
difficult time, banks can become stronger and better prepared to face whatever
comes next.
74
Chapter 6
Bibliography
6.1 Website link
1. https://www.ncbi.nlm.nih.gov/pmc/articles/PMC9896081/
2. https://kpmg.com/xx/en/home/insights/2020/07/covid-19-impact-on-
banking-m-and-a-2020.html
3. https://www.adb.org/publications/fintech-and-covid-19-impacts-
challenges-and-policy-priorities-for-asia#
4. https://www.mckinsey.com/industries/financial-services/our-
insights/remaking-banking-customer-experience-in-response-to-coronavirus
5. https://www.imf.org/en/Topics/imf-and-covid19/Policy-Responses-to-
COVID-19
6. https://m.rbi.org.in//scripts/BS_ViewBulletin.aspx?Id=21135
7. https://www.business-standard.com/article/finance/covid-19-impact-rbi-
asks-banks-to-carry-out-detailed-stress-testing-120062100834_1.html
75
6.2 Reference
1. Palak Khandelwal and Ruchi Jain, “A study on things that make people use
online banking more during COVID-19” 2022.
2. Ambrish Kumar Mishra, Archana Patel, and Sarika Jain, “A study on Impact
of COVID-19 Outbreak on the performance of Indian Banking Sector” 2021.
3. Vikas Kumar and Sanjeev Kumar, “A study on Impact of COVID-19 on

Indian Economy with Special Reference to Banking Sector an Indian
perspective” 2021.
4. Dr. Jitender Singh and Dr. B.S. Bodla, “A study on COVID-19 Pandemic
and Lockdown Impact on India’s Banking System a Systemic Literature
Review” 2020.
5. Dr. Nilam Panchal, “A study on COVID-19 Outbreak has made it hard for
banks in India and globally” 2021
6. CA Narendra Kumar Bansald, “COVID-19 on Indian banking sector” 2020.
7. Dr. Priyanka Bobade and Prof. Anu Alex, “The effect of COVID-19 in
Indian Banking Sector” 2020.
8. Sharma and Mathur, “A study on effect of covid-19 on banking sector” 2021.
9. Dev and Sengupta, “Analysis of bad debts of the bank during COVID- 19”
2020.
10. Ashish Bagewadi & Dewang Dhingra, “The Impact of COVID-19 on

Financial Markets, Banking Systems, and the Overall Economy” 2020.
11. Pallavi, “To Study the significance of COVID-19 on banking sector” 2020.
76
12. Dr .S. Anitha, “A Study on Banking Sector Performance during COVID-19
Pandemic Period” 2021.
13. Ahmed S, “A Study on the impact of COVID-19 on Banking Sector” 2020.
14. Kaya and Şen, “A Study on the impact of COVID-19 on the banking
industry in Turkey” 2020.
15. Li and Wang, “the impact of COVID-19 on the Banking Industry in

China” 2020.
16. Nuno Fernandes, “A study on Economic effects of COVID-19 on the

world economy” 2020.
17. Suhas. D, H N. Ramesh, “To study how electronic banking makes banking
transactions faster and easier” 2018.
18. Priyajit Kumar Ghosh, “A Study on Impact of the COVID-19 Pandemic

on the Indian Banking Sector” 2022.
19. Abeysekera and Kularatne, “The impact of COVID-19 on small and

medium-sized enterprises (SMEs) and their access to finance” 2020.
20. Dell'Ariccia, G., Laeven, L., & Marquez, R. “Real interest rates, leverage,
and bank risk-taking during the COVID-19 pandemic. Journal of
Economic Theory, 185, 104994” 2020.
21. Mian, A. R., & Sufi, A. “The financial crisis and bank lending during the
COVID-19 pandemic Journal of Financial Economics, 97(3), 319-338”
2020.
77
Chapter 7
Annexure
1. Gender of the Responded?
A. Male
B. Female
C. Prefer not to say
2. Which of the following groups do you belong to?
A. Above 18
B. 20-25
C. 26-30
D. Above 25
3. Which of the following Occupations do you belong to?
A. Student
B. Salaried Personnel
C. Business Personnel
D. Job
78
4. How frequently do you visit your bank branch compared to before the
COVID-19 pandemic?
A. More frequently
B. Sometime
C. Less frequently
D. Not visited
5. Which banking services have you utilized more during the pandemic
compared to before?
A. Online banking
B. Mobile banking apps
C. ATM services
D. Telephone banking
6. Have you encountered any difficulties in accessing banking services due

to COVID-19 restrictions?
A. Yes, frequently
B. Yes, occasionally
C Yes, Might be
D. No, not at all
79
7. Have you noticed an increase in fraudulent activities or scams related to
banking during the pandemic?
A. Yes, a significant increase
B. Yes, Very much
C. Yes, a slight increase
D. No, not really
8. How do you perceive the overall safety and security of online banking
during the pandemic?
A. Very safe and secure
B. Safe and secure
C. Unsafe
D. Very unsafe
9. Do you think the pandemic has accelerated the adoption of digital banking
technologies?
A. Yes, significantly
B. Yes, somewhat
C. Yes, Strongly
D. No, not really
80
10. Have you used contactless payment methods (e.g., mobile wallets,
contactless cards) more frequently during the pandemic?
A. Yes, more significantly
B. Yes, somewhat
C. Yes, Sometime
C. No, not really
11. Have you noticed any changes in the availability of credit or loan
products from your bank during the pandemic?
A. more availability
B. Sometimes availability
C. Less availability
D. Unavailability
12. Do you believe the government's financial stimulus measures during the
pandemic were effective in supporting the banking Services?
A. Yes, very effective
B. Somewhat effective
C. Not much effective
D. Not effective
81
13. How concerned are you about the long-term financial stability of banks
as a result of the pandemic?
A. Very concerned
B. Somewhat concerned
C. Neutral
D. Not concerned
14. How satisfied are you with the online banking services provided by your
bank during the pandemic?
A. Very satisfied
B. Satisfied
C. Neutral
D. Dissatisfied
15. How satisfied are you with the communication and support provided by
your bank during the pandemic?
A. Very satisfied
B. Satisfied
C. Neutral
D. Dissatisfied
82
16. Do you feel that your bank has offered adequate financial assistance or
relief measures during the pandemic?
A. Yes, significantly
B. Yes, very much
C. Yes, somewhat
D. No, not really
17. Have you switched banks or considered switching banks due to the way
your current bank handled the pandemic?
A. Yes, I have switched banks
B. No, but I have considered switching banks
C. No, I have not considered switching banks
D. May be Needed
18. Do you think the pandemic has negatively affected the trustworthiness of
banks in general?
A. Yes, more significantly
B. Yes, somewhat
C. Yes, Sometime
C. No, not really
83
19. How would you rate your overall banking experience during the
pandemic compared to before?
A. Very Nice
B. Better
C. Average
D. Bad
20. How would you rate your bank's efforts in maintaining customer service
standards during the pandemic?
A. Excellent
B. Good
C. Average
D. Poor
21. What measures do you think banks should take to better support their
customers during times of crisis like the COVID-19 pandemic?
A. Provide more flexible repayment options for loans
B. Enhance digital banking security measures
C. Offer financial literacy programs
D. Improve communication channels with customers
84

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“A STUDY ON IMPACT OF COVID-19

PANDEMIC ON BANKING INDUSTRY AND ITS CUSTOMERS”

THE UNIVERSITY OF MUMBAI.

For partial completion of the degree of BACHELOR OF

MR. NIKHIL HARIPRAKASH SINGH

Under the Guidance of

SHETH N.K.T.T. COLLEGE OF COMMERCE

& SHETH J.T.T. COLLEGE OF ARTS

KHARKAR ALI, THANE (W) 400602

ACADEMIC YEAR 2023 - 24

SHETH N.K.T.T. COLLEGE OF COMMERCE

& SHETH J.T.T. COLLEGE OF ARTS

KHARKAR ALI, THANE (W) 400602

It is her/his work and facts reported by her findings and Investigations.

Internal Examiner External Examiner Coordinator Principal

I, the undersigned Mr. Nikhil Hariprakash Singh hereby declare

Wherever reference has been made to previous works of others, it

I, here by further declare that all information of this document has

NIKHIL HARIPRAKASH SINGH

Asst. Prof. Ms. Siddhi Phatak.

I would like to extend my heartfelt thanks to all who have helped me

I would like to acknowledge the following as being idealistic

I take this opportunity to thank the University of Mumbai for giving

I take this opportunity to thank our SFC Coordinator, Asst. Prof.

I would also like to express my sincere gratitude towards my project

I would like to thank my College Library, for having provided

(Mr. Nikhil Hariprakash Singh)

Another study looked at how COVID-19 affected people's finances. Many

Furthermore, a comprehensive survey of banking industry professionals shed

Chapter Title Page

1.8 Long-Term Implication and Future Outlook

1.9 Strategies for banks to adapt and thrive in the

5 CONCLUSION AND SUGGESTIONS 68-75

By examining the multifaceted impacts of the COVID-19 pandemic on the

• Interest rates were low in many countries, encouraging borrowing and

• Regulatory environments were becoming stricter after the global

• FinTech companies were disrupting traditional banking models,

• Mobile banking and digital payment solutions were helping to bridge

5. Mergers and Acquisitions:

• Cross-border mergers were also occurring, driven by the desire to

• Compliance requirements were becoming more stringent, leading banks

7. Impact of COVID-19 on Banking Sector:

• The Pandemic disrupted the banking sector significantly, leading to

• Digital banking adoption accelerated as customers turned to online

Overall, the Banking Sector Pre-COVID-19 was characterized by technological

The pandemic affected everything, from healthcare to jobs and education.

As we keep dealing with COVID-19, we should remember to be ready for

1.4. 1. Branch Closures and Remote Work:

• Immediate effects of remote work in the banking industry include the

• While remote work offers flexibility for employees, it also presents

• This shift could further drive innovations in digital banking technologies,

• This could lead to a reevaluation of office space needs, with banks

The banking industry is changing a lot because of technology. This means

Immediate Effects on Customer Service:

• Opening accounts and handling documents is quicker and easier now.

1.5. 1 . Financial Hardship and Loan Deferrals :

Short-term Help with Loan Pauses:

Challenges and Limits:

How Customers Feel: