Internet Technology and Customer Profitability in Banks

Abstract

Rapid expansion of technology in banking has led customers to shift towards virtual banking from actual banking. Even though 100% migration to technology platform in the banking industry in India is yet to happen in view of some public sector laggards, by and large customers in India have  shifted their transactions to various channels of virtual delivery like ATMs, internet banking, phone banking etc.The adaptation of technology in banking sector took place mainly because of two factors one is customer demand and second is increasing competitive environment. Although lot many studies have been made about the progress of technology in banks but the impact on customer's profitability are still an unexplored domain. Electronic Banking, Internet Banking, Online Banking, Mobile Banking or Virtual Banking as a whole have all been making rapid advances with leverage of Technology giving a new direction to the banking system in India. Customer profitability is an evolving area and first among the ten most critical issues in the area of Technology management in Banks.