Technology in Indian Banking Industry

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Technology in the Banking Sector in India.
How profitable it is for the customer?

CONTENTS

ABSTRACT………………………………………………………………………..…….……… 3 1. INTRODUCTION……………………………………………………………………… 3

2. OBJECTIVE OF THE PROJECT……………………………………….…………… 4

3. LIMITATION OF THE PROJECT……………………………………..…….……… 4

4. METHODOLOGY………………………………………………………….…….……. 4

5. LITERATURE REVIEW…………………………………………….…….………….. 5

6. DESCRIPTIVE RESEARCH

a. Data Collection…………………………………………………………….……… 14 b. Questionnaire Design…………………………………………………….……….. 14 c. Sampling………………………………………………………………….……….. 15 d. Sample Size……………………………………………………………….……….. 15 e. Hypothesis……………………………………………………………….………… 15

7. ANALYSIS OF RESPONSES

f. Percentage Analysis…………………………………………………….………… 16 g. Mean……………………………………………………………………..………… 18 h. Weighted Average……………………………………………………..………….. 19 i. Median……………………………………………………………….……………. 19 j. Chi-Square Analysis……………………………………………….…….……….. 19 k. Findings...………………………………………………………….……………… 20 l. Suggestions……………………………………………………….……………….. 21

8. CONCLUSION…………………………………………………………….………….. 22

ANNEXURE………….…………………………………………………………….………….. 23

QUESTIONNAIRE…………………………………………………..……………………….. 31 REFERENCES……………………………………………………………………...…….….... 34

ABSTRACT
Information Technology (IT) is changing our way of doing things. So it is changing the banking industry. This study is to look into the impact of IT on the banking industry in India and in particular to what extent customers are satisfied with IT enabled services and contribute to this industry’s growth. A questionnaire survey will be conducted to find customers opinion about the effect of IT at banks in India.

1. INTRODUCTION
Technology has been playing most essential and important part for the mankind development. During the last two hundred years, technological changes have often been related to economic growth in the form of new types of goods and services. Information Technology (IT) can be defined as the modern handling of information by electronic means, which involves its access, storage, processing, transportation or transfer and delivery (Ige 1995). In the financial institutions IT has been playing enabling role in improving services, introducing new products, easy enquiry, and saving time. In modern world IT has been picked to provide solutions to all most every sector that greatly include education, health, library, communication and many more. People in India are getting aware of their right on quality and value added services for their money. Banking industry in India realized what customers need and their expectation on the banking services. Therefore, the new generation private commercial banks are furnished with necessary IT infrastructure. Most people go to the old fashioned bank for banking services only then when they do not have other alternatives. People mostly like IT equipped banks for prompt and efficient services and easy access to account information. People are no longer interested to spend hour in the bank. They want quick services and which can only be ensured through proper application of relevant IT. Besides offering customers satisfaction, IT can extensively reduce the operating costs and increase market share and generate extra revenue.

Banks have adopted IT throughout the world for three basic reasons (Horseman, Michael J. 1997): * To protect and increase market share
* To reduce operating costs
* To generate new revenue
Ultimately one of the prime motives of implementing IT is to gain extra productivity and attain more growth.

Information technology plays two important roles in the banking: supportive role, and strategic role. The supportive role helps banks to prepare the platform for business process reengineering and IT based financial products i.e. electronic banking, whereas the strategic role helps banks...
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