Source:
E-mail dt. 23.2.2012
Impact
of Technology Based Services in Banking Sector with Special Reference to LVB,
Dr. R. Haridas
Asst. Professor and Head of the Dept -MBA
and
P . Manonmani
Ph.D Research Scholar,
Asst Professor,
ABSTRACT
The current trend in any
industry depends largely upon two general phenomena one is convenience and the
other is connectivity. Particularly in banking industry the competition is too
heavy that every avenue in banking service is finding new ways to succeed with
customer delight. It has become very vital that the banker need to pay
attention to retain every customer by providing them the best convenient
service. This condition has given a threshold to introduce information,
communication and technology in banking services. The banks are dealing with
heterogeneous clients and are forced to deal with technology that enables to
satisfy every single customer. Innovation does drive both growth and
efficiency.
The author has made an
attempt to analyze impact of technology based banking services with special
reference to Lakshmi Vilas Bank,
INTRODUCTION
Development of
any country depends on the banking system of the country. Since the bank money
is highly floated into the modern business and forms the life blood of trade,
commerce and Industry. The French word
“Banco” implies bench or money exchange table. The process of money lending was
carried out by the European money lenders by displaying heaps of coins of
different countries on benches and tables.
Similarly a
bank is a financial institution dealing with deposits, lending and other
related services. In current trend the
information, communication and Technology together with computer science
facilitates banking institutions to offer their services in sophisticated
manner with maximum security, reliability and affordability.
IMPACT ON TRANSACTION
PROCESSING IN THE BANK
Huge volume of
transactions indulging a lot of manual efforts, recording humpty number of
transactions like cheques to be processed, interests to be calculated and funds
to be transferred demanded the intervention of IT and computerization. Thus the
first stage of computerization involved transactions processing and maintain
accurate accounts of all the transactions. And the IT application involved
ledger posting machines to post the transactions. The another intensive
operation involved in banking demanding heavy manual effort is clearing of
cheques issued by bank’s customer for settlement. Manual sorting and exchanging
of cheques among the bankers were replaced by MICR (Magnetic Ink Character
Recognition) and was introduced in 1950. These applications were recorded off line
and
processed
in
batch
mode
wherein
the
transactions were entered after they were done at the counter. It
continues to be an important application with banks increasingly resorting to
have data centres and data warehouses to store their data and even cross border
processing of their transactions to reduce the cost.
POSITIVE
IMPLICATION OF IT IN BANKING
Internet banking allows expanded customer
contact through increased geographical reach and lower cost delivery
channels. In fact some banks are doing
business exclusively via the Internet — they do not have traditional banking
offices and only reach their customers online. Internet
banking allows national banks to offer a wide array of options to their banking customers. Some customers will rely on
traditional branches to conduct their banking business. For many, this
is the most comfortable way for them to transact their banking business. Those
customers place a premium on person-to-person contact. Other customers are early adopters of new technologies that arrive in the
marketplace. The challenge to national banks is to understand their customer base and
find the right mix of delivery channels to deliver products and services profitably to their various
market segments. Other financial institutions are using the
Internet as an alternative delivery channel to reach existing customers and
attract new customers. Relationship building is a
strategic priority for many national banks.
Internet banking technology and
products can provide
a means for
national banks to
develop and maintain an ongoing
relationship with their customers by offering easy access to a broad array of
products and services.
Banks offering mobile access are mostly
supporting some or all of the following services:
The other way to categorize the mobile banking
services, by the nature of the service, gives us two kind of services –
Transaction based and Enquiry Based.
Purchasing Power: Credit or Debit cards
made it easier to purchase things. Now we don’t have any need to carry hard
cash in a large amount. Plastic money is accepted everywhere, anytime.
Time Saving: Through a credit card or
debit card anyone can purchase anything from anywhere without spend money on
fare or cash transition. Just provide the card details to seller store or
companies and finalize the order. Use internet for minimum time consuming.
Extra Safety: While none carrying
cash how can it be lost? But if the card gets lost, just contact to the bank or
financial institution, which provides the cards. It will block the account and
nobody can draw a single coin without ones permission. So it is 100% safe
without any tension.
Credit Limits: the
customer get an extra amount to spend with the card. This extra spent money should
be returned before a fix time schedule or will have to pay a little interest.
So there is no problem to having less money. Just use money without any
tension.
ANALYSIS AND INTERPRETATION
One Way ANOVA for Educational
Qualification and Easy Usage of Internet Banking.
Null
hypothesis H0: There is no significant relationship between educational
qualification and easy usage of the internet banking.
Alternative
hypothesis H1: There is significant relationship between educational
qualification and easy usage of the internet banking.
Table 1
|
ANOVA |
|||||
|
|
Sum
of Squares |
df |
Mean Square |
F |
Sig. |
|
Between Groups |
1.173 |
2 |
.587 |
1.642 |
.214 |
|
Within Groups |
8.934 |
25 |
.357 |
|
|
|
Total |
10.107 |
27 |
|
|
|
Interpretation
The F ratio for two degrees of freedom is 1.642
and the p= .214 which is greater than .05, hence the null hypothesis is
accepted and says that there is no significant relationship between the educational
qualification and easy usage of the internet banking.
One Way ANOVA for Years
of Experience in LVB and Level of Satisfaction in Using Internet Banking.
Null hypothesis H0: There is no
significant relationship between years of experience in LVB and level of
satisfaction in using Internet Banking.
Alternative
hypothesis H1: There is significant relationship between years of
experience in LVB and level of satisfaction in using Internet Banking.
Table
2
|
ANOVA |
|||||
|
|
Sum of Squares |
df |
Mean Square |
F |
Sig. |
|
Between
Groups |
5.745 |
2 |
2.873 |
1.673 |
.208 |
|
Within
Groups |
42.933 |
25 |
1.717 |
|
|
|
Total |
48.679 |
27 |
|
|
|
Interpretation
The F ratio for two degrees of freedom is 1.673
and the p= .204 which is greater than .05, hence the null hypothesis is
accepted and says that there is no significant relationship between years of
experience in LVB and level of satisfaction in using Internet Banking.
CONCLUSION
In summary, it
is quite clear that banking technology has emerged as a separate discipline in its own right. As regards future directions, the
proliferating research in all fields of Technology and computer science can make steady inroads into banking
technology because any new research idea in
these disciplines can potentially have a great impact on banking technology.