Customer Perception Towards Alternative Banking Channel: a Study on Core Banking System (Cbs) of State Bank of India.

Customer perception towards alternative banking channel: A study on Core Banking System (CBS) of State Bank of India.

Arup Kumar Baksi

Assistant Professor, Department of Management Studies

Bengal Institute of Technology & Management, Santiniketan

arup_bakshi@rediffmail.com

Abstract

The Indian banking sector has witnessed a paradigm shift since the concept of liberalization has swept across. All banks, both public and private, have either totally implemented ‘Core banking Systems’ or halfway through. A survey result was obtained from 281 respondents having their banker as State Bank of India, expressed their views on electronic banking channels. The results indicate that the majority of the customers are very comfortable and willing to use e-banking channels. At the same time, over 80% feel that ‘human contact is necessary’. This throws up a challenge to banks. Technology alone cannot give a sustainable competitive advantage for the banks. When all banks introduce IT in their technology, IT will lose its position as a differentiator. Beyond a point, IT along with ‘personal touch’ will be necessary for the banks to retain the existing clients and attract new clients. Banks have to incorporate this in their IT and operational strategy.

Key words : banking; technology; customer; e-banking; India; online banking; delivery channels; core banking solution; information technology; consumer behaviour; branch banking.

Introduction

Core Banking Solutions is new jargon frequently used in banking circles. The advancement in technology especially internet and information technology has led to new way of doing business in banking. The technologies have cut down time, working simultaneously on different issues and increased efficiency. The platform where communication technology and information technology are merged to suit core needs of banking is known as Core Banking Solutions. Here computer software is developed to perform core operations of...