Impact of Digitalisation on Indian Perspective: A Study

Abstract

India’s stands second in the world in terms of internet users next only to China. This accelerated pace of internet penetration in India has opened new opportunities for all businesses in general and banking industry in particular. Banks are now using electronic mode of delivering services like never before. They offer a range of services digitally from opening bank account to applying for loan using internet. Studies related to digitalisation or internet banking have mostly been limited to the customer satisfaction aspect of internet banking. Some found internet banking to have a positive impact on customer satisfaction where as others pointed out the preference of customers to visit branches rather than using its electronic services. Authors found a dearth of literature relating to the effects of digitalisation on bank performance. This paper aims to fill that gap by studying the effects of digitalisation on bank performance using interviews of 30 employees from ten banks. In order to analyse bank performance three factors are studied namely employee efficiency, cost of operations and profitability. Digitalisation found to be positively associated with all three variables under the study. It has improved bank performance and allowed it to expand from core banking services to complete financial solutions.