Technology Impact on Banking Sector Performance with Reference to Select Private Sector Banks

Abstract

The present study is focused on the technology impact on the banking sector growth in 4G period. The usage of technology by the banking customers increased enormously in 4G compared to other telecom generations i.e., 2G and 3G. The study has considered the high technology spending private banks and B2C segment digital transactions (i.e., Neft, Rtgs, ATM, Mobile, Debit card and Credit Card transactions) growth on the business of the banking sector examined with the panel data in E-Views software. The study has considered the time series data of the selected five private sector banks digital transactions and constructed the Banking Technology Index in 4G period. The study result reveals with the ordinary least square that the mobile transactions and RTGS are having the positive impact on the performance of the Banking technology index. The BTI impact has been examined on the business per employee of the selected private sector banks and the result stated that the BPE got reduced significantly in 4G period. This paper is useful to the bankers, regulators and various stakeholders of the bankers.