The Indian banking sector, nowadays, is experiencing a shift from the traditional branch customer channel to more technology-centric delivery channels. The adoption of innovative technology in the form of internet banking, ATMs and mobile applications has created a profound impact on the banking services particularly bank-customer relationship. In addition, a growing segment of technologically savvy customers, these days, actually prefer the convenience of technologically based service delivery systems over the delivery of those by bank employees. The increasing use of these new age technologies facilitate the marketers to manage customer relationships on individual basis. In view of these developments in technology in banking industry, an attempt has been made in the present paper to study the customer perception of the impact of technology on customer relationships in the Indian banks with a view to offer suggestions on the basis of the study results. The study is based on a sample of one thousand two hundred (1200) customers of four major banks operating in northern India. The responses have been integrated into important factors by applying factor analysis to validate specific measure of relationship banking. Linear regression was performed to study the effect of technology on customer relationships. The empirical findings reveal that the technology usage has a positive and significant impact on customer relationships.
Impact Factor
2022: 6.012
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