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Foreign Banks
2. To Assess the Perception of the Bank Employees towards the Implementation of Information
3. To Assess the Perception and Satisfaction of the Customers with the banks.
Hypothesis:
Technology has opened up new markets, new products, new services and efficient delivery
channels for the banking industry. Online electronics banking, mobile banking and internet banking
2). Information Technology has also provided banking industry with the wherewithal to deal with
the challenges the new economy poses. Information technology has been the cornerstone of
recent financial sector reforms aimed at increasing the speed and reliability of financial operations
3). The IT revolution has set the stage for unprecedented increase in financial activity across the
globe. The progress of technology and the development of world wide networks have significantly
4). It is information technology which enables banks in meeting such high expectations of the
customers who are more demanding and are also more techno-savvy compared to their
counterparts of the yester years. They demand instant, anytime and anywhere banking facilities.
5). IT has been providing solutions to banks to take care of their accounting and back office
requirements. This has, however, now given way to large scale usage in services aimed at the
customer of the banks. IT also facilitates the introduction of new delivery channels--in the form of
Automated Teller Machines, Net Banking, Mobile Banking and the like. Further, IT deployment has
assumed such high levels that it is no longer possible for banks to manage their IT
implementations on a stand alone basis with IT revolution, banks are increasingly interconnecting
their computer systems not only across branches in a city but also to other geographic locations
with high-speed network infrastructure, and setting up local area and wide area networks and
connecting them to the Internet. As a result, information systems and networks are now exposed
to a growing number.
Technology Products:
(4). InstaAlerts
(6). NetSafe
(11). Shopping
METHODOLOGY:
The study confines to the examining the Role of IT in the Study Banks, particularly,
Banks
2. To assess the Customers' Satisfaction Level towards the Use of Information Technology related
RESEARCH DESIGN:
1. Both Exploratory Research and Descriptive Research were used in accomplishing the Objective
of the study.
2. The research design use in this study is descriptive research design--apart of conclusive
research.
3. Exploratory Research was used to gain insight into the Impact of IT in the Indian Banking
Industry.
4. Descriptive Research was used to gain insight into the Role of Information Technology in the
1. To assess the Role of Information Technology in the Public Sector Banks, Private Sector Banks
2. To Assess the Perception of the Bank Employees towards the Implementation of Information
3. To Assess the Perception and Satisfaction of the Customers with the banks.
Hypothesis:
1). Information Technology facilitate wide and speedy services to banking sectors.
2). Private and Foreign banks use more Information Technology related banking services then
Technology in banks.
4). Impact of technology on efficient low cost data communications is same across all banks.
banking sector.
6). There is a strong association between more IT related services and customer preferring a bank.
7). Security concerns are the basic hindrance in using Technology related to banking services.
LITERATURE REVIEW:
Brynjolfsson and Hitt conclude that "Information Technology contribute significantly to firm level
output." In fact, they find that I.T. capital contributes an 81% marginal increase in output,
whereas non-IT capital contributes 6%. Similarly they show that IS-labor is more than twice as
Lichtenberg (1995), on the other hand, concludes that there is significant benefit from investment
in Information Technology specially in the Banking Industry.Mario Castelino (2006) suggests that
Indian banking industry has provided the leading edge to what is happening to the Indian
economy. Banks have equipped themselves with the latest of technology--core Banking. Business
Process Reengineering has been introduced to enhance spleen and efficiency of delivery.
According to VP Shetty (2006), globalization in banking is based on four important pillars viz. 1)
trade in goods and services; 2) flow of capital and movement of human beings across boundaries;
Morrison and Berndt (1990) concluded that additional IT investments contributed negatively to
productivity, arguing that "estimated marginal benefits of investment [in IT] are less than the
Data Source: The study made use of both Primary and Secondary Source of data: For the purpose
of the study, both primary and secondary data has been collected.
The secondary data has been collected from magazines, journals, Internet searches, libraries etc.,
The data from the Primary sources have been collected with the help Employees of the Bank and
customers.
DATA ANALYSIS:
Using SPSS package, the data was analyzed with the help of Chi-Square, ANOVA and Regression
1). CHI-SQUARE TestA detailed analysis with the help of Chi-Square was applied to understand
2). Regression Analysis :- Assessing the factors driving the Implementation of Technology in the
Private Sector Banks, all the descriptors except Implementation of Technology have been
considered as Independent.
Employees Perception
1). The study proved that there is a positive relation between implementation of IT and delivery of
service. In other words, Banks are moving towards implementing IT enabled services to deliver
2). Over 65% of the foreign banks, 20% Private Banks and 9% Public Sector Banks are all through
with the implementation of IT enable services in their banks. However, 45% of the Private Banks
and 36% of the Public Sector Banks are in the implementation stage of I.T.
3). Almost 57% of the Respondents Strongly Agree that Competitive Pressure is one of the Lead
Factor Driving towards the implementation of Technology. 45% of the Bank Respondents Strongly
Agree that Operational Efficiency and Business Process Reengineering are the Factors that drives
the Implementation of Technology in the Banks. 37% of the Respondents remain neutral when
Impact of Technology on Reduced Physical Infrastructure Cost of Bank is same across all the Banks
1. Significant number of customers (45%) prefer private banks followed by public sector banks
(35%) to do their banking operations. Interestingly very few customers (20%) prefers foreign
banks.
Reasons for preferring a particular bank are Trust in the bank, sense of security and network
facilities provided by the banks including flexibility in carrying out transaction. The study proved
regression analysis that these is a positive relationship between networking (+2.2), sense of
security (+1.62), Trust in Bank (+2.3) and flexibility in carrying out transactions.
2. Majority of the Customers perceive that Technology in Banking Industry has a positive impact
on the way the services are rendered to the customers. 57% of the Customers Strongly Agree that
it is necessary for banks to implement IT in their operations. 60% of the Respondents Strongly
Agree that Technology improves customer services in banks. 3. Nearly 87% of the Private Sector
Banks have Respondent that Technology Implementation has resulted in Achieving Economies of
Scale of Bank. 57% of the Public Sector Banks have agreed that the Technology has resulted in
Achieving Economies of Scale of Bank. On other hand, 90% of the Foreign Banks have said that by
Implementing Technology in the Bank, they are able to achieve Data Communication in Achieving
4. Nearly 89% of the Private Sector Banks have Respondent that Technology Implementation has
resulted in Efficient Low Cost Data Communication. 78% of the Public Sector Banks have agreed
that the Technology has resulted in Efficient Low Cost Data Communication. On other hand, 93%
of the Foreign Banks have said that by Implementing Technology in the Bank, they are able to
5. In case of Private Sector Bank, there is a strong association between the drive to implement
Technology in the Banks and Impact on Profitability, Competitive Pressure, and Customer Needs.
ICICI 20
HDFC 20
Kotak Bank 20
ING Vysya 20
Bank Ltd.
Karur Vysya 20
Bank Ltd.
Total 100
HSBC 20
Citi Bank 20
ABN- AMRO 20
Standard 20
Chartered Bank 20
American
Express Bank
Total 100