A big congratulations to Ron Scott and Dr Sheerali Arya for for having a paper published in the International Journal of Civil Engineering and Technology.
A STUDY ON EFFECTS OF SERVICE QUALITY MODELS ON DIGITAL BANKING IN PRIVATE INDIAN RETAIL BANKS.
Dr Sheerali Arya
Ph.D Scholar, Amity Business School, Amity University, Noida, India
Dr. T V Raman
Professor, Amity Business School, Amity University, Noida, India
Mr. Ron Scott
Director, Stellaris Ltd,, Tauranga, New Zealand
ABSTRACT
The increasing advent of technological innovations in Banking has led to a gradual decrease in quality of service standards. Post the recent amendment of Banking Ombudsmen Scheme in July 2017 by RBI which has included Electronic / Mobile Banking, there has been a considerable increase in the number of complaints received in recent years. Amongst these complaints a major component is related to deteriorating service standards of private banks. When the responses of the Banks are analyzed, their defense ranges from sensitizing the staff to having technical issues in service areas.
On deeper inspection of the reality amongst the employees at the branches, several disparities were found. Due to the stiff competition in the Banking sector, there is a greater emphasis on customer acquisition segment rather than on the service segment. Most of the employees need to be out in the field during business hours and only few employees are available in the branches for proper customer servicing. It is high time now that the Banks acknowledge this widening rift between customer expectations and reality, as customers are feeling alienated from the Banks. While the sales aspect cannot be compromised, Banks need to find a balance between efficient acquisition and effective servicing by using Digital Banking and technology in an astute manner. This Paper intends to explore the implementation of important Service Quality models in conjunction with usage of digitalization which can improvise the service standards in Bank branches. An ideal model and methods is suggested by which technology can be amalgamated with service quality to so that customers genuinely feel privileged to be associated with the Bank.
A Study on Effects of Service Quality Models on Digital Banking in Private Indian Retail Banks
http://www.iaeme.com/IJCIET/index.asp 2420 editor@iaeme.com
KEYWORDS: Technological Innovations, Service Quality, Customer Acquisition, Customer Expectation, Human Interface.
Cite this Article: Dr Sheerali Arya, Dr. T V Raman and Mr. Ron Scott, A Study on Effects of Service Quality Models on Digital Banking in Private Indian Retail Banks, International Journal of Civil Engineering and Technology, 10(02), 2019, pp. 2419–2427
http://www.iaeme.com/IJCIET/issues.asp?JType=IJCIET&VType=10&IType=02
1. INTRODUCTION
Profitability and growth of the Indian Banking sector is dependent on modernization and digitalization coupled with adopting a customer centric service quality model. They need to expand their delivery of products and services through online channels. They need to give importance to imparting digital information to all relevant stakeholders especially the customers. The efforts of the Banking Industry have gained momentum in recent years post demonetization as cashless transactions became the norm. The private banks lead in the shift towards digital channels and involved all business units in this campaign. Another facet acting as a contributing factor for thrust towards Digital Banking is the economic uncertainties and financial pressures faced by the Banking Industry both in the Domestic and the International arena. This has led to an increased exigency to adopt a holistic approach to implementing digital processes and ingraining that concept across the entire banking ecosystem.
Acceptance of a complete digitalization requires upgrades of infrastructure, tools, rules and regulations. Further, Banks need to replace an account-based view of customers and adapt a new view wherein customers are acknowledged as individuals. This helps in enhancing the customer experience with relevant, convenient and personalized products and services. Banks need to be innovative and be a fast mover while meeting regulatory and compliance challenges. Digital modernization needs to go hand in hand with implementation of Service Quality models which act as a driving force to deepen customer satisfaction, loyalty, sustaining long-term relationships and profitability. This approach also has the potential to meet customers’ expectations and bring banking back to the bank.
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