Digital Banking: A case study of perception of bank employees in rural areas of Udupi District

Abstract

Technology has entered in every activity of human being. One such field where technology has gained very much popularity is the Banking sector. The technology has brought a complete shift in the functioning of banks and delivery of banking services. Customers need not visit to bank branches for banking transactions. They can do the banking transactions sitting at home and need not visit the branches of banks for anything. Banks use technology to provide quality of service at a great speed. This technological phase in banking sector can be traced in 1991i.e. post liberalization period. Along with the basic function of accepting deposits and lending of loans, banks have started rendering various other services to the customers, which is been enabled by the innovation in the Banking Technology. At the beginning telephone, telegrams, letters, typewriters, calculators, billing machines, Fax, Couriers were used for the purpose. The new technological innovations that have taken place are Online banking, Mobile banking, ATMs, Anytime banking, Telebanking, Green banking, Internet Banking, Core banking, Centralized Banking solution, SMS alerts, RTGS, NEFT, POS, etc. These technological innovations enable the customer to withdraw his deposits at any time 24x7, anywhere in the country. The customer can view his account by sitting at his home itself. The innovation in Banking Technology enables the banker to make the various online payments, online shopping. Thus it paves the way for Cashless Banking, i.e. Digital India. Thus the Innovation in Banking Technology results in increasing the efficiency and productivity of the banks, saves time, reduces the cost and thereby increases the profitability of the banks India is a country of villages or rural areas. Nearly half of India's population does not have bank account. So to find greater growth in banking sector, RBI is emphasizing on Financial Inclusion, so that banking services reach each and every individual in rural areas. It has made compulsory for all Indian banks to open at least of their branches in rural areas. CRISIL Report (March 12, 2018) reports that “In the last 5 years, business per branch in the rural areas has grown at a compounded annual growth rate of 7%, despite the overall branch network growing at 9%. The economies of scale are set to increase further in the years to come.” Though technology is introduced in banks in rural areas, the banks and customers face certain problems or obstacles. Since majority of villagers are illiterates and poor, the find it difficult to operate the technology based bank accounts, Debit/Credit cards, mobile banking, online shopping etc. People may doubt about the safety and confidentiality of their accounts while using technology. Again there may be lack of awareness of technological products of banks, their uses and benefits.. This paper tries to find out how technological innovations have been perceived by bank employees in rural areas of Udupi district