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


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


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.


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

Full Text:


Avkiran, N. K. (1999). ‘An application reference for data envelopment analysis in branch banking: helping the novice researcher’, International Journal of Bank Marketing, 17/5, pp. 206-220.

Deng, Shengliang and Dart, Jack (1994). ‘Measuring market orientation: A multi-factor, multi-item approach’, Journal of Marketing Management, Vol. 10, pp. 725-742.

Ehikhamenor, Fabian A. (2003). ‘Information Technology in Nigerian banks: The limits of expectations’, Information Technology for Development, Vol. 10, pp. 13-24

Ennew, Christine T., Reed, G. V. and Binks, M. R. (1993). ‘Importance-Performance Analysis and the Measurement of Service Quality’, European Journal of Marketing, Vol. 27, No. 2, 1993, pp. 59-70.

Hemmasi, Masoud and Strong, Kelly C. (1994). ‘Measuring Service Quality for Strategic Planning’, Journal of Applied Business Research, Vol. 10, Issue 4, pp. 24-35.

Heskett, James L., Jones, Thomas O., Loveman, Gary W., Sasser, Jr., Earl. W. and Schlesinger, Leonard A. (1994) ‘Putting the Service-Profit Chain to Work’, Harvard Business Review, March-April 1994, pp. 164-170.

Joseph, Mathew; McClure, Cindy and Joseph, Beatrriz (1999). ‘Service quality in the banking sector: the impact of technology on service delivery’, International Journal of Bank Marketing, 17/4, pp. 182-191.

Krishnaveni, R and Prabha, Divya (2006). ‘Service quality perception of banking service with reference to banking customers’, ACRM Journal of Business and Management Research, No. 2, pp. 45-49.

Lederer, A. and Mirani, R. (1995) ‘Anticipating the benefits of proposed Information Systems’, Journal of Information Technology, Vol. 10, pp. 159-169.

Martilla, John A. and James, John C. (1977). ‘ImportancePerformance Analysis’, Journal of Marketing, Vol. 41, January, pp. 77-79.

Ortinau, D., Bush, A., Bush, R. and Twible, J. (1989). ‘The Use of Importance-Performance Analysis for Improving the Quality of Marketing Education: Interpreting Faculty-Course Evaluations’, Journal of Marketing Education, Summer 89, Vol. 11, Issue 2, pp. 78-86.

Parasuraman, A., Zeithaml, Valarie A. and Berry, Leonard L. (1988). ‘SERVQUAL: A multiple-item scale for measuring consumer perceptions of service quality’, Journal of Retailing, Volume 64, No. 1, pp. 12-40.

Parsons, Darrekk, Gotlieb, Calvin C. and Denny, Michael. (1993). ‘Productivity and Computers in Canadian Banking’, Journal of Productivity Analysis, Jun. 1993, Vol. 4, Issue ½, pp. 95-113.

Reports on Trend and Progress of Banking in India, 2002-03 to 2010-11, Reserve Bank of India, http://www.rbi.org.in

Remenyi, Dan (1996). ‘A holistic approach to IT function evaluation’, Investing in Information Systems: Evaluation and Management, Ed. Leslie Willcocks, Chapman and Hall.

Rexha, Nexhmi (2005). ‘The impact of internet banking service quality on business customer commitment’, Paper presented at ANZMAC Conference on Services Marketing, 2005.

Vannirajan (2006). ‘Impact of service quality on customer satisfaction in banking – A comparative study’, ACRM Journal of Business and Management Research, No. 2, pp. 50-54.


  • There are currently no refbacks.