Customer Expectations and Service Level in E-Banking Era: An Empirical Study

It is almost 15 years since the Indian banking sector was liberalized and paradigm shift happened in the Indian banking services. All banks have either totally implemented ‘core banking systems’ or halfway through. The results of a survey were obtained from 292 respondents about their views on electronic banking channels, indicate that the banks are exceeding the expectations in technology based services; and their perceived service level on branch network is below the expected levels of the respondents. This result is in tune with the respondents’ opinion on the perceived ‘gap’ with the bank because of the introduction of technology, and on the necessity of human contact with the clients by the banks. This throws up a challenge to banks. Technology alone cannot give a sustainable competitive advantage for the banks. When all banks introduce IT, it will lose its position as a differentiator. Beyond a point, IT along with ‘personal touch’ will be necessary for the banks to retain existing clients and to attract new ones. Banks have to incorporate this in their operational strategy.