International Journal of Advances in Arts, Sciences and Engineering (IJOAASE)

ISSN: 2320-6136 (Print)

ISSN: 2320-6144 (Online)
May, 2018 Volume-6 Issue-13 UGC Approved Multi disciplinary
Journal No. 63017
Effectiveness of Information Technology in banks:
(A Study in HDFC Bank Srinagar)
Sabzar Ahmad Peerzadah , Amir Hussain Shah , Shayista Majeed
1 2 3

Research Scholar. Department of Commerce University of Kashmir, Srinagar, J&K India.

1,2,3.

ABSTRACT
The emergence of information technology to every aspect of human life and business has been so apparent that it does not
need to be accentuated more. Information technology has been of lifeblood in the banking system. When we look at
technology, there is tremendous scope for innovation – in the field of financial inclusion itself, right from biometric based
systems to mobile based new payment banking applications. But it cannot be a one-size-fits-all approach. Recent years have
witnessed phenomenal transformations in the operations of many businesses, and banking sector is not an exception, due to
the massive advances in Information and Communication Technology (ICT). In this context, an attempt is made to examine
the effectiveness of Information Technology (IT) adoption on the select bank customers and employees in the Srinagar city of
Jammu and Kashmir. This study aims to investigate the effectiveness of information technology in the banking system of
HDFC Bank in Srinagar City. The study is carried out with the help of a structured questionnaire administered to 100
selected customers and employees. The data was then analyzed with the use of the exact percentage, mean scores and the 5-
point Likert scale to determine the effectiveness of Information technology-enabled services in the banking system affairs.
The findings then proved that customers, as well as employees, are satisfied with most of the IT-enabled services except a few
for which the suggestions are given.
Keywords: Business, Banking System, Financial Inclusion, Human, Information Technology.
1. INTRODUCTION advantage by having a direct and responsible marketing
customer service environment and new and optimized
Information technology plays a crucial role in many
business processes. Needless to say, the adoption of
industries and sectors, resulting in a positive impact on
electronic payment systems, such as the transfer of
economic development beyond geographical boundaries.
national electronic funds (NEFT) and the real-time gross
It is important to keep in mind that the financial sector in
settlement system (RTGS), has also improved the
general and the banking sector, in particular, was one of the
efficiency of banks.
first to use information technology in the 1960s and has the
record of influencing the development process through Today, information technology has become the heart of
technology. The banking sector is an example where IT the banking sector, while the banking sector is at the
infrastructures have had implications for the economic center of every solid economy. If it collapses, so will the
development of many nations in all jurisdictions. Studies economy. It is absolutely evident from the current
show that information technology along with knowledge recession, in the crisis of European banks and, in turn. TI
management has great potential to drive the development has created a new infrastructure for the global economy
process (Okpaku, 2003)[1]. Computers become more to become truly global and has also given new
sophisticated. They gave banks a potential with which they technology users a competitive advantage over their
could only dream and gave high expectations to bank rivals. The electronic banking system has become the
customers. The changes that new technologies have leading technology-driven revolution in conducting
rejuvenated the bank and its impact on bank officials, financial transactions. However, banks have invested
employees and customers are huge. Advances in heavily in telecommunications and electronic systems,
technology are enabling the delivery of banking products and users have also been validated to accept the
and services more conveniently and effectively than ever electronic banking system as useful and easy to use
before, thus creating new competitive foundations. The (Adesina and Ayo, 2010). Castells (2001) reveals that
availability of critical information and the ability to act billions of dollars worth of transactions can now take
quickly and effectively will distinguish successful banks of place within a few seconds in the electronic circuit of the
the future. The bank gains a fundamental competitive world by pressing a single stop. Although IT has
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International Journal of Advances in Arts, Sciences and Engineering (IJOAASE)
ISSN: 2320-6136 (Print)
ISSN: 2320-6144 (Online)
May, 2018 Volume-6 Issue-13
revolutionized the way of life, in addition to conducting
business and studying the banking sector has received more
attention in the last decade, it continues to pose challenges
for marketing and academic specialists alike. According to
Loonam and O'Loughlin (2008)[2], ICT advancements,
globalization, competition and changing social trends such
as heightened customer proactiveness and increased
preferences for convenience have caused the intense
restructuring of the banking industry. With this brief
introduction, this paper introduces the literature review, the
theoretical background, the objectives and the scope of the
study, the methodology used for the study, and at the end
the conclusion with some suggestions for banks to make
the most of its IT resources.
2. REVIEW OF LITERATURE
The review of some important works is carried out in the
following paragraphs with an important objective to
identify the current research gap. For banks, technology
has become a strategic asset to achieve greater efficiency
and, for customers, it is the realization of their banking
dream anywhere, anytime, at any time. Recent trends show
that most brick and mortar banks are moving from a
product-centric model to a customer-centric model as they
develop their new electronic banking capabilities. Delivery
channels include direct connections, private networks,
public networks, etc. Banks increasingly use the Internet as
a channel to receive directions and provide their products
and services to their customers. This form of banking is
generally known as Internet Banking, although the range of
products and services offered by different banks fluctuates
considerably in terms of content and sophistication.
Brynjolfsson and Hitt (1996)[3]report the positive effects of
IT based on evidence at company level. Sabita Paul,
(2013)[4] in her work described the current and rapid
technological revolution that alters the whole world and
has a crucial impact in the data-driven banking sector,
collected by customers of several commercial banks in
Odisha. In the general economy, the financial flow is
supported by the bank and, in today's digital economy, the
financial flow is possible through the IT banking system.
Banks use IT to consolidate their position, customize
services and adopt innovative strategies to capture new
market opportunities and increase profits, as well as
enhance bank process outsourcing (BPO). The author
Muhammad Reza Nam(2009)[5] believes that information
UGC Approved Multi disciplinary
Journal No. 63017
and communication technologies (ICT) are the key factor
in the current and future development of the financial
sector, while Internet banking and mobile banking are
considered a new distribution channel, both the channels
help the bank to reduce costs and save transaction time.
Saied K (2011)[6] suggested that IT leads to significant
savings in customers and employees, reducing costs and
facilitating network transactions. The study by Awasthi
and Sharma (2001)[7] reveals that technological advances
will change the face of banking activity. The technology
has transformed the distribution channels of banks into
retail banking. The study also examined the challenges
faced by banking institutions and their regulations. Janki
(2002)[8] analyzed how technology affects employee
productivity. There is no doubt that technology has
changed operational efficiency and customer services.
Attention to technology will increase new products,
strengthen risk management, etc. The study concluded
that technology is the only tool to achieve its goals. Rao
(2002)[9] analyzed the impact of new technologies in the
banking sector.
Technology is changing the way you do business and
opens up new perspectives to do the same job cheaper.
Internet banking and Internet banking are making
progress that bank branches can guarantee for home
banking. Bhasin (2001)[10] analyzed the impact of IT in
the financial sector. It has transformed repetitive and
overlapping systems and procedures into a simple one-
button molding technology, resulting in speed, accuracy
and efficiency in conducting business and enabling them
to undertake new activities. Sabnani (2002)[11]analyzed
the importance of the "universal banking system" in
India. Developments in IT and telecommunications are
allowing international grouping of financial resources,
thus extending the risk into more than one market. Feel
that the Universal Banking System will increase in India.
Vageesh (2000)has greatly appreciated the new private
sector banks that have adopted IT.New private sector
banks with their cutting-edge technology and big plans to
venture into e-banking. Banks are venturing into net
banking by offering great convenience to customers, on
the one hand, and resulting in a lower transaction cost for
the banking cost for banks, on the other hand. Verma
(2000)[12]analyzed the impact of IT on public sector banks
and new private sector banks and noted that IT is a threat
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International Journal of Advances in Arts, Sciences and Engineering (IJOAASE)
ISSN: 2320-6136 (Print)
ISSN: 2320-6144 (Online)
May, 2018 Volume-6 Issue-13
to public sector banks, while the strength of new banks
private. The new private banks are fully computerized and
provide services on the Internet, in particular ICICI Banks
and HDFC Bank, which are very active on this front and
focus on the Internet and e-commerce to offer their
customers.
3.THEORETICAL BACKGROUND
3.1. Information Technology and Information
Communication Technology
Information Technology (IT) is a comprehensive term that
covers the acquisition, processing, storage and
dissemination of information. It involves the application of
computers and communication technology in the endeavor
of information handling, and information flow from the
generation to the execution levels. It is restricted to systems
resting on the microelectronic-based combination of
computers and telecommunication technologies. The IT is
the boon for mankind. It gives access to information at
fingertips. The promising and diversified possibilities of IT
have reduced the space and time between the people,
countries, continents and ultimately have led to the
emerging concepts “Global Society” and “Global Village”.
Information Communication Technology (ICT) is a term
that describes types of technology that are used specifically
for communications. It is IT, but ICT emphasis more on
technologies that deal with communication like cell phone,
the internet and wireless networks and other things.We
have also found it needful to offer some definitions below
although they are not part of our keywords.
3.1.1. Usability/ Time & Speed
Navigation, product information, and site design are
critical to e-satisfaction (Szymanski & Hise 2000). Thus, a
key to building a usable Website is to create good links and
navigation mechanisms (Mannix 1999; Radosevich 1997).
An advantage of the ICT is its capacity to support
interactivity for users (Palmer 2002), and online
consumers are influenced by the interactivity of the
Website (Alba et al. 1997; Jarvenpaa & Todd 1997). Fast,
interactive, uncluttered, and easy-to-navigate sites with
quality searching capabilities should be perceived more
favorably by consumers. The features evaluated within the
attribute of usability and site design are: (1) providing a
user-friendly interface, (2) an interactive site, and (3)
possessing adequate searching capabilities.
UGC Approved Multi disciplinary
Journal No. 63017
3.1.2. Product Value / Operational cost
Minimizing product cost and maximizing product quality
are major factors in ICT success (Keeney 1999)[13]. Total
cost includes product cost, taxes, shipping, Internet,
processing cost, staff cost, maintenance cost and travel
costs (Keeney 1999). Quality is an intrinsic property of a
product.
Product quality is the expected standard of product or
service excellence (Jarvenpaa & Todd 1997). Brands and
retailers that are well known and well regarded from the
traditional channels may translate to quality on an online
channel. The question becomes how consumers will
assess product quality when they are unfamiliar with the
retailer or the product brand (Jarvenpaa & Todd 1997).
Kalakota and Whinston (1996) stress the need to provide
independent evaluations of goods and services to
convince consumers of the quality of the merchandise
sold by the Internet merchant on the web. Thus, the end
result for the consumer should be a feeling of gratification
with the purchase once completed. Torkzadeh and
Dhillon (2002)[14] combine these two objectives (product
cost and product quality) into a value of ICT measure
(used in this study). The features of the product value
attribute to be evaluated are: (1) post-purchase feeling of
customer gratification, (2) perceived product quality and
(3) overall product cost.
3.1.3. Confidence / Security
Trust is the element of a business relationship that decides
the level to which each party feels they can rely on the
integrity of the promise offered by other. The trust is
identified as being an antecedent to commitment, being
the motivation to stay within the relationship and an
important element of relationship marketing (Ahasanul
Haque and Ali Khatibi, 2007)[15]. Some authors suggest
that for a customer to enter into a transaction's must feel
confident that the merchant will deliver, making trust an
order qualifier for purchase decisions. Online buyers
have fewer security worries, appreciate the quickness and
flexibility of online buying and see the web as making
buying easier. Websites must be made simple and easy to
use, because non-users are not very confident that they
can buy online successfully (Ahasanul Haque and Ali
Khatibi, 2007).
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International Journal of Advances in Arts, Sciences and Engineering (IJOAASE)
ISSN: 2320-6136 (Print)
ISSN: 2320-6144 (Online)
May, 2018 Volume-6 Issue-13
3.1.4. Communication and decision making
Communication & decision making is the users' ability to
customize products according to personal preferences (Zhu
& Kraemer 2002)[16]. For example, configuring a computer
and related product features directly on a merchant's
Website. Customization is one of the great advantages of
online shopping (Van Slyke et al. 2004),[17] allowing what
some have termed a segment of one, where each customer
is unique in his or her tastes, choices, and acquisitions. The
features of the product customization attribute to be
evaluated in this study are (1) offering a customizable
product, (2) offering online configuration capabilities, and
(3) the number of options that are available for the product.
3.1.5. Job and working environment
Expertise or product knowledge and expert in the
processing of the product is the understanding of the
attributes of a product or service class and knowledge about
how various alternatives stack up on these alternatives.
Customers' expertise facilitates their learning of new and
more complex types of information (Ahasanul Haque and
Ali Khatibi, 2007). The two major components of customer
expertise are expertise and familiarity. The customers who
are more innovative and knowledgeable with regard to the
internet and its uses are more likely to buy online from the
computer industry in Malaysia than less innovative and
knowledgeable customers (Ahasanul Haque and Ali
Khatibi, 2007).
3.1.6. Internal system efficiency
Commentary, that it is often repeated in terms of gaining
benefits from the internet is in terms of marketing logistic,
whereby online buyers gain temporal advantage by
ordering online and delivered over internet (Adam Stewart,
2002)[18]. Electronic marketing broaden the marketing
scope of internet users and allow buyers to make
transaction online with the help of information
communication technology. Some researchers, specifies
that specific knowledge of the impact of attribute
performance on loyalty is, therefore, a basic requirement
(Adam Stewart, 2002).
3.2. Information Technology/Computers in Banks
With the globalization trends world over it is difficult for
any nation big or small, developed or developing, to remain
isolated from what is happening around. For a country like
India, which is one of the most promising emerging
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markets, such isolation is nearly impossible. More
particularly in the field of Information technology, where
India has positively an edge over its competitors,
remaining awayfromthe world trends is untenable.The
financial sector in general and banking industry, in
particular, is the largest spender and beneficiary from
information technology. This aims to relate the
international tendency in it with the Indian banking
industry. The last lot includes possibly all foreign banks
and newly established Private sector banks, which have
fully computerized all the operations. With these
variations in the level of information technology in
Indian banks, it is useful to take account of the trends in
Information technology internationally as also to see the
comparative position with Indian banks. The present
article starts with the banks' perception when they get
into IT up gradation. All the trends in IT sector are then
discussed to see their relevance to the status of Indian
banks. IT Considerations Since the early nineties, each
Indian bank has done some IT improvement effort. The
first and foremost compulsion is the fierce competition.
While deciding on the required architecture for the IT
consideration is given to following realities.
3 . 2 . 1 . M e e t i n g I n t e r n a l R e q u i re m e n t : T h e
requirements of the banks are different depending on
their nature and volume of business; focus on a particular
segment, the spread of branches and alike. Many a time's
banks do have the required information but it is scattered.
The operating units seldom know the purpose of
gathering the information by their higher authorities.
3.2.2. Effective in Data Handling: As stated earlier the
banks have most of the needed data but are distributed.
Further, the cost of collection of data and putting the same
to use is prohibitively high. The accuracy and timeliness
of data generation become the causalities in the process.
Best of the intentions on computerization are wished
away because there is a non-visible reduction in cost
/efforts/time required for the required data gathering.
3.2.3. Extending Customer Services: Addressing rising
customers expectations is significant particularly in the
background of increased competition. In case of bank A is
unable to provide the required service at a competitive
price and in an accurate manner with speed. There is
always a bank IT at its next-door waiting to hire the
customer. Awareness of customers about the availability 4
International Journal of Advances in Arts, Sciences and Engineering (IJOAASE)
ISSN: 2320-6136 (Print)
ISSN: 2320-6144 (Online)
May, 2018 Volume-6 Issue-13
of services and their pricing as also available options have
brought into sharp focus the issue of customer satisfaction.
3.2.4. Creative Support for New Product Development:
It has become necessary for the banks to vitalize the process
of product development. Marketing functionaries need a
lot of information not only from the outside sources but also
from within the banks. Banks are looking to the retail
segment as the future marketplaces for sales efforts.
Having full-fledged information of existing customer is the
key for this purpose. The emergences of data requirement
and an appropriate architecture to support the same are
significant issues to be handled in this regard.
3.2.5.Development of the Non-technical Staff: Banking
being a service industry, it is the staff at the counters that
deliver the products. In Indian scenario, virtual banking is
probably to have a few more years to establish. The reliance
on the counter staff is inevitable. The staff are large in
number and the larger number is non-technical. The
customer satisfaction levels at the counter decide the
ultimate benefit of IT. Giving due consideration to this
aspect in choosing the architecture is necessary.
3.3 Recent Developments in Banking Sector
3.3.1. Internet: Internet is a networking of computers. In
this marketing message can be transferred and received
worldwide. The data can be sent and received in any part of
the world. In no time, internet facility can do many a job for
us.
3.3.2. Society for Worldwide Inter-bank Financial
Telecommunications (SWIFT): SWIFT, as a co-
operative society was formed in May 1973 with 239
participating banks from 15 countries with its headquarters
at Brussels. It started functioning in May 1977. RBI, 27
public sector banks as well as 8 foreign banks in India have
acquired the membership of the SWIFT. SWIFT provides a
rapid, secure, reliable and cost effective mode of
transmitting the financial messages worldwide. At present
more than 3000 banks are the members of the network. To
cater to the growth in messages, SWIFT was upgraded in
the 80s and this version is called SWIFT-II. Banks in India
are hooked to SWIFT-II system. SWIFT is a method of the
sophisticated message transmission of international repute.
This is highly cost-effective, reliable and safe means of
fund transfer. * This network also facilitates the transfer of
messages relating to fixed deposit, interest payment, debit-
UGC Approved Multi disciplinary
Journal No. 63017
credit statements, foreign exchange etc.*This service is
available throughout the year, 24 hours a day. *This
system ensure against any loss of mutilation against
transmission. * It serves almost all financial institution
and a selected range of other users. It is clear from the
above benefits of SWIFT that it is very beneficial in
productive customer service. SWIFT has extended its
range to users like brokers, trust and other agents.
3.3.3. Automated Teller Machine (ATM): ATM is an
electronic machine, which is operated by the customer
himself to make deposits, withdrawals and other financial
transactions. ATM is a step in improvement in customer
service. ATM facility is available to the customer 24
hours a day. The customer hss issued an ATM card. This is
a plastic card, which bears the customer's name. This card
is magnetically coded and can be read by this machine.
Each cardholder is provided with a secret personal
identification number (PIN). When the customer wants to
use the card, he has to insert his plastic card in the slot of
the machine. After the card is a recognized by the
machine, the customer enters his personal identification
number. After establishing the authentication of the
customers, the ATM follows the customer to enter the
amount to be withdrawn by him. After processing that
transaction and finding sufficient balances in his account,
the output slot of ATM gives the required cash to him.
When the transaction is completed, the ATM ejects the
customer's card.
3.3.4. Cash Dispensers: Cash withdrawal is the basic
service rendered by the bank branches. The cash payment
is made by the cashier or teller of the cash dispenses is an
alternate to time -saving. The operations of this machine
are cheaper than manual operations and this machine is
cheaper and fast than that of ATM. The customer is
provided with a plastic card, which is magnetically
coated. After completing the formalities, the machine
allows the transactions for required amount.
3.3.5. Electronic Clearing Service: In 1994, RBI
appointed a committee to review the mechanization in the
banks and also to review the electronic clearing service.
The committee recommended in its report that electronic
clearing service-credit clearing facility should be made
available to all corporate bodies/Government institutions
for making repetitive low-value payment like dividend,
interest, refund, salary, pension or commission, it was 5
International Journal of Advances in Arts, Sciences and Engineering (IJOAASE)
ISSN: 2320-6136 (Print)
ISSN: 2320-6144 (Online)
May, 2018 Volume-6 Issue-13
also recommended by the committee Electronic Clearing
Service-Debit clearing may be introduced for pre-
authorized debits for payments of utility bills, insurance
premium and installments to leasing and financing
companies.RBI has been necessary step to introduce these
schemes, initially in Chennai, Mumbai, Calcutta and
NewDelhi.
3.3.6. Bank.net: Bank net is a first national level network in
India, which was commissioned in February 1991. It is
communication network established by RBI on the basis of
the recommendation of the committee appointed by it under
the chairmanship of the executive director T.N.A. Lyre.
Bank net has two phases:Bank net-I and Bank net- II. Areas
of Operation and Application of Bank net: (a).The message
of banking transaction can be transferred in the form of
codes from the city to the other.(b). Quick settlement of
transactions and advices.(c). Improvement in customer
service-withdrawal of funds is possible from any member
branch.(d).
Easy transfer of data and other statements to RBI.(Useful in
foreign exchange dealings).
3.3.7. Chip Card: The customer of the bank is provided
with a special type of credit card which bears customer's
name, code etc. The credit amount of the customer account
is written on the card with magnetic methods. The computer
can read these magnetic spots. When the customer uses this
card, the credit amount written on the card starts
decreasing. After use of number of times, at one stage, the
balance becomes nil on the card. At that juncture, the card is
of no use. The customer has to deposit cash in his account
for re-use of the card. Again the credit amount is written on
the card by magnetic means.
3.3.8. Phone.Banking: Customers can now make call on
the bank's designed telephone number and the customer by
dialing his/her unique ID number will be able to get
connectivity to bank's designated computer. The software
provided in the machine interactive with the computer
asking him to dial the code number of service required by
him and suitably answers him. By using Automatic voice
recorder (AVR) for simple queries and transactions and
staffed phone terminals for complicated queries and
transactions, the customer can actually do entire non-cash
relating banking on telephone: Anywhere, Anytime.
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3.3.9. Tele-banking: Tele-banking is another
innovation, which provided the facility with 24-hour
banking to the customer. Tele-banking is based on the
voice processing facility available on bank computers.
The caller usually a customer calls the bank anytime and
can enquire balance in his account or other transaction
histories. In this system, the computers at the bank are
connected to a telephone link with the help of a modem.
Voice processing facility provided in the software. This
software identifies the voice of caller and provides him
suitable reply. Some banks also use the telephonic
answering machine but this is limited to some brief
functions. This is only telephone answering system and
now Tele-banking. Tele banking is becoming popular
since queries at ATM's are now becoming too long.
3.3.10. Internet Banking: Internet banking enables a
customer to do banking transactions through the bank's
website on the Internet. It is a system of accessing
accounts and general information on bank products and
services through a computer while sitting in its office or
home. This is also called virtual banking. It is more or less
bringing the bank to your computer. In traditional
banking one has to approach the branch in person, to
withdraw cash or deposit a cheque or request a statement
of accounts etc. but internet banking has changed the way
of banking. Now one can operate all these type of
transactions on his computer through the website of the
bank. All such transactions are encrypted; using
sophisticated multi-layered security architecture,
including firewalls and filters. One can be assured that
one's transactions are secure and confidential.
3.3.11. Mobile Banking: Mobile banking facility is an
extension of internet banking. The bank is in association
with the cellular service providers offers this service. For
this service, the mobile phone should either be SMS or
WAP enabled. These facilities are available even to those
customers with only credit card accounts with the bank.
3.3.12. Anywhere Banking: With expansion of
technology, it is now possible to obtain financial details
from the bank from remote locations. The basic
transaction can be effected from faraway places.
Automated Teller Machines are playing an important role
in providing remote services to the customers.
Withdrawals from other stations have been possible due
to the inter-station connectivity of ATM's.
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International Journal of Advances in Arts, Sciences and Engineering (IJOAASE)
ISSN: 2320-6136 (Print)
ISSN: 2320-6144 (Online)
May, 2018 Volume-6 Issue-13
The Rangarajan committee had also suggested the
installation of ATM at non-branch locations, airports,
hotels, Railway stations, Office Computers, Remote
Banking is being further extended to the customer's office
and home.
3.3.13. Voice Mail: Talking of answering systems, there
are many banks mainly foreign banks offering very
advanced touch-tone telephone answering service which
route the customer call straight to the department
concerned and allow the customer to leave a message for
the concerned desk or department if the person is not
available.
4. OBJECTIVES OF THE STUDY
The main objective of this research is to focus on the role of
modern technology and its effectiveness in the banking
services of the select bank. The specific objectives of the
study are:
 To know the frequency of usage of different IT-enabled
banking services;
 To know the satisfaction of customers and employees
with the IT-enabled services;
 To know the difficulties faced by the customers and
employees by using the IT-enabled banking services.
5. SCOPE OF THE STUDY
The present study “Effectiveness of Banking Services” was
carried out in the capital city as a micro-study but not
covered sample banks either at the national level or Jammu
and Kashmir level is one of the limitations to this study.
Further, it has considered only a limited number of
parameters for measuring the effectiveness of banking
services of only HDFC Bank is to be considered as another
limitation.
6. RESEARCH METHODOLOGY
For collecting the data, both primary and secondary
sources were used and the major portion of the study relies
on primary data which was collected with thehelp of a
structured questionnaire. Secondary data was also used
from related books, journal and websites of the select banks
included in this study. The present study aims at
understanding the impact of Information Technology on
Banks and attempts to measure the effectiveness, from the
point of view of the customers and employees. The study
was conducted in the summer capital (city) of Jammu and
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Kashmir. In all, 100 customers and employees (50 each)
of the samplebank were selected randomly. The idea of
implementation of technology in the banks is to provide
the customers with the best of their services accordingly
an attempt has been made in this paper to measure the
effectiveness of banking services, In the study three and
four parameters were considered while collecting the
information from the customers and employees
respectively.
7. RESULTS AND INTERPRETATION
The research brought to light the fact that IT has been of
great impact on banks in the sample city. The findings
both from the questionnaires and the library research
reveal that IT leads to saving the time of the customers
and the employees conspicuously, cutting down the
expenses and facilitating the network transactions. The
details are as follows: Regarding the first category of
respondents' research question about
(effectiveness/satisfaction) among the respondents
(customers) the following were the results:(1a). That
among customers the most dominant factor in ATM
services is the quality of currency notes with mean= 4.04
and the overall mean of ATM services =3.7050.(1b).That
among customers the most dominant factor in Net
banking is E-payments with mean=4.44 and the overall
mean is 3.8120.(1c).That among customers the most
dominant factor in Mobile banking is SMS alert service
with mean = 4.08 and the overall mean
=3.8450.(1d).That the customers are neutral in terms of
Tele banking services with mean =2.92. So, overall the
customers are satisfied with E-
banking(mean=3.5705).As regards the difficulties faced
by the customers while using IT-enabled banking
services are less famous Tele banking and the modern
sophisticated IT services.
Regarding the second category of respondents research
question about (effectiveness/satisfaction) among the
respondents (employees) the following were the
results:(2a).That among the employees the most
dominant factor in BEHAVIOURAL FACTOR
ANALYSIS is that it helps the employees to do their
routine work more efficiently with mean =4.10 and the
overall mean is 3.8867.(2b).That among the employees
the most dominant factor in MANAGEMENT FACTOR
ANALYSIS is that it empowered the employees to solve 7
International Journal of Advances in Arts, Sciences and Engineering (IJOAASE)
ISSN: 2320-6136 (Print)
ISSN: 2320-6144 (Online)
May, 2018 Volume-6 Issue-13
their problems more efficiently with mean = 4.22 and the
overall mean =3.8971. (2c). That among the employees the
most dominant factor in CUSTOMER ORIENTATION
ANANLYSIS is that the customers carry out more
transactions with e-banks than traditional banks with
mean=4.02 and the overall mean is 3.8533.(2d).That shows
that among the employees the most dominant factor in
EMPLOYEE BENEFIT ANALYSIS is that it saves the
time of the employees working in e banks with mean = 4.12
and the overall mean is 3.8829.So, overall the employees
are satisfied with e banking (mean =3.8800).
8. CONCLUSION AND SUGGESTIONS:
8.1 Conclusion:
A sound and effective banking system is the backbone of an
economy. The economy of a country can function smoothly
and without any hassle less if the banking system is not only
flexible but also capable of meeting the new challenges
posed by the technology and other external as well as
internal factors. The importance and role of information
technology for achieving this objective cannot be
undermined. Technology advances have accelerated
changes resulting in higher production of goods & services.
The information technology has transformed the
functioning of business across the world. It bridged the gap
in terms of both reach and the coverage of system and in the
process enabling better decision making based on latest and
accurate information and improvement in efficiency
through various new processes, products and services
offered by state-owned banks, private sector banks and
foreign banks and financial institutions. The
transformation in banking services is providing various
advantages to customers at anytime, anywhere access to
their accounts as well as the power to operate their
accounts. Although the change is good still banks are
required to address the important issues to get the full
benefits of information technology implementation. The
banks need to aware the customers about the less famous
and least used IT-enabled services, as well as customers,
should be given awareness and training about the usage of
newly introduced sophisticated e-banking services.
8.2. Suggestions:
The study highlights the following suggestions: (a) The
customer being the primary purpose of any industry and for
banking too, it is essential to understand their needs,
UGC Approved Multi disciplinary
Journal No. 63017
concerns, expectations and grievances handling.(b)
Customers are no longer passive in their preferences and
hence to survive, the banks need to make customer a part
of their business.(c)To give customers required
awareness and training about the newly introduced
sophisticated IT services;(d) Market conditions need to
be studied from time to time and there is a need to develop
the solutions to handle the trends in the modern banking
technologies for improving banking services.(e)To
commence IT adoption more in their day-to-day life; (f)
To devise/compile the best and speedy services to the
customers with the new banking technologies; (g)To
encourage the customers to use internet banking service
to reduce the time and additional manpower work; and(h)
To provide the best IT services of Electronic fund transfer
in Internet Banking with the safety and security system.
(i) To make the customers aware of the less famous IT-
enabled services.
9. LIMITATIONS OF THE STUDY
(a)The questionnaires were filled by 50 employees
working in different branches of the HDFC Bank in
Srinagar, so the scope of sample findings was less.(b) The
questionnaire was filled by 50 employees and 50
customers of different designations. So the point of view
of employees and customers differs as per their
designations. (c) The employees from whom the
questionnaires are filled are in a heavy workload so some
of the questionnaires filled by the employees who are in
stress cannot be called reasonable. (d)The response of the
an employee or customer may not be always accurate as
the problem of language and understanding arises. (e)
One of the other problems of the questionnaire is the cost.
Sometimes it may possible that even by spending so
much the result may not be reasonable. (f) Many a time
the employees may not be really conscious or may not be
bothered by the questionnaire. This may create a problem
in the research. (g) Some customers and employees treat
filling a questionnaire a futile exercise, which creates a
problem for the researcher.
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