Technology in Banking

The burst of consumer interest in PCs is seeing a resurgence as options increase and consumers become more comfortable with technology. For the banking industry, this has brought forecasts of dramatic reduction in demand for bricks-and-mortar delivery, and introduction of a plethora of new remote delivery options. These include screen phones, smart phones, interactive television and personal communicators, as well as networks to enable delivery of financial services over these new devices.

The Research Objective

This study examines the consumer and technology-based forces that are driving the forecasts of those who envision a future containing radically different financial services delivery systems.

  • Understand the first time landing experience of consumers with, banks; particularly how they chose the bank and the process that they go through.
  • Furthermore, understand how they view their money, the process that helps them create and develop relationships with different financial service providers as well as the motivations and barriers in use of technology in banking.
The Challenge

The amalgamation of technology and banking, which is setting the tone for many a product buy in future was interesting and new for the researchers involved.

The Research Methodology
  • Qualitative Research through mini groups and in-depth interviews.
  • Quantitative through face to face administration of the survey, with ‘corporate’ consumer who is young, upwardly mobile, consumers of ‘banking’ using mobile and net to keep abreast of banking information.
The Results
  • Internet banking is most preferred in getting any information on product. However, for queries or complaints internet is NOT the preferred mode.
  • Mobile banking is one of the latest technologies which have excited users, yet there is apprehension expressed in terms of how secure the information passed on the net would be.
  • Mobile banking is used most frequently for ‘balance’ enquiry and at times for funds transfer and account statements. Net banking, on the other hand, is also used to pay bills.
  • Consumer expectations from a technology enhanced banking service:
    Time convenience: Time-pressured consumers have rejected the concept of “business hours” and are beginning to demand access to information, transactions and service when it’s convenient for them–not just when it’s convenient for the provider.
    Location: Cellular phones and ATMs in shopping malls and airports around the world, are introducing consumers to having access to products and services when they need them–regardless of where they are at the time.
    ‘How’ of banking: Recent technological developments have expanded the list of devices available to consumers for getting information and conducting transactions.
    Easy to use: Ease of use is an important element in the value equation.
Sum up

Consumer and technology forces are combining to create an environment ripe for electronic delivery of financial services. Consumers are demanding more from financial institutions than location and convenience. An emerging definition of consumer convenience includes anytime, anywhere, any way delivery of easy to use products and services. Technology-literate customers extend into the mass market and can no longer be accurately defined as a niche segment. However, certain face to face interaction is a must for gaining confidence before they can entrust their money to a financial institution.