DHARANA - Bhavan's International Journal of Business

A Customer-Perspective of the Differences in the Effectiveness of Information Technology (IT) Driven Services among the Major Groups of Banks in India


Affiliations

  • M S Ramaiah Institute of Management, India
  • Indian Institute of Technology, Shailesh J. Mehta School of Management, Mumbai, India

Abstract

The impact of a bank’s investments in Information Technology (IT) can be in terms of efficiency or effectiveness. While there have been attempts by banks in India to quantify to an extent the efficiency benefits accruing from IT, there is insufficient evidence of their attention to IT effectiveness. The purpose of this paper is to address this gap, by examining the effectiveness of IT from the perspective of customers. Towards this end, an inter se comparison of the scenario among the major groups of banks is attempted. Responses of 429 customers from across India are collected on 21 dimensions of IT-driven services. Analysis reveals that new private sector banks score much higher on IT effectiveness than two of their industry counterparts, viz. Public Sector banks and State Bank group banks. Service dimensions requiring improvement in each group too have come to light. IT effectiveness measurements such as those discussed in this paper help banks gain a better understanding of customer satisfaction, leading to more informed decisions.

Keywords

Banks, Customer Perspective, India, Information Technology Effectiveness and Service Quality Measurement.

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