A Study on Innovation in Banking and its Impact on Customer Satisfaction

Abstract

Innovation through information technology (IT) has made inroads everywhere and banking is no exception to it. Whether it is private or public sector bank, everywhere innovation is the buzzword and technological breakthrough is witnessing new avenues of success. Competition is compelling everyone to move ahead and faster. Now, the working in public sector banks has been changing and customers are sensing the wave of innovation. These banks, which were working traditionally are now coming out and reaching to audience through billboards; FM radio and all possible media. Celebrity endorsements are now common in public sector banks as well. Core banking has added fuel to the fire of innovation. The ultimate results can be seen in terms of enhanced customer satisfaction in public sector as well as private sector banks. The research is an attempt to study the impact of innovative technology on customer satisfaction vis-à-vis public sector and private sector banks in Bhopal city. Primary data was collected from customers of these banks and analyzed, which has given significant results on the subject. It was found that private sector banks were having an edge in terms of success in innovation.