Banking Technology and Service Quality: Evidence from Private Sector Banks in Kerala

Abstract

Rapid strides in Information and Communication Technology (ICT), is fast penetrating into all aspects of commercial banking. On the one hand ICT enables the banks to provide their customers with ‘As you like it’ products. On the other hand customers are becoming discerning day by day. Banks vie with each other in providing newer products day by day on attractive terms and conditions. Switching costs being low it is difficult for banks to retain their customers. Customer service has become vital today, both for retaining the customers and for attracting new ones. In the aforesaid situation, this study attempts to analyze the significance of the five dimensions of the SERVQUAL model in providing products and services by banks, identify the dimension that most significantly influence the service quality, study as to how the service quality perceptions of males and females differ and also how perceptions differ across rural and urban customers. Using the outcomes of the analysis, suggestions are made to enable more effective delivery of banking services for enhanced customer satisfaction.