Skip to main content
SpringerLink
Log in

Understanding bank employees’ perception towards technology enabled banking: a developing country perspective

  • Original Article
  • Published:
Journal of Financial Services Marketing Aims and scope Submit manuscript

Abstract

The purpose of this study is to identify and validate the underlying factors influencing bank employees’ perception towards technology enabled banking and examining the association between the identified factors and demographic profile of the bankers. A quantitative approach is adopted in the study and data is collected from 210 respondents through a well-structured questionnaire. The empirical results show that relative advantage, employee convenience, operational efficiency, and technical support are the main factors influencing the perception of bankers towards technology adoption in India. The perception of bankers differs significantly in terms of the availability of technical support by type of bank. The novelty of the study is that the perception about the implication of technology enabled banking services and the influence of demographic variables on technology adoption in context to Indian bank employees has been analysed. The results will help the banks from India as well as other developing countries in doing strategic planning to improve the adoption of technology enabled banking services. Banks can use the findings to encourage their employees to promote the use and adoption of digital banking in India.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1

Similar content being viewed by others

References

  • Abratt, R., and J. Russell. 1999. Relationship marketing in private banking in South Africa. International Journal of Bank Marketing 17 (1): 5–19.

    Article  Google Scholar 

  • Abukhzam, M., and A. Lee. 2010. Factors affecting bank staff attitude towards E-banking adoption in Libya. The Electronic Journal of Information Systems in Developing Countries 42 (1): 1–15.

    Article  Google Scholar 

  • Acharya, R.N., A. Kagan, M.G. Sobol, and V. Kodepaka. 2006. Competition and adoption of internet technologies by Texas community banks. E-Service 4 (3): 61–76.

    Article  Google Scholar 

  • Adams, D.A., R.R. Nelson, and P.A. Todd. 1992. Perceived usefulness, ease of use, and usage of information technology: A replication. MIS Quarterly 16 (2): 227–247.

    Article  Google Scholar 

  • Adapa, S., and S.K. Roy. 2017. Consumers’ post-adoption behaviour towards Internet banking: Empirical evidence from Australia. Behaviour & Information Technology 36 (9): 970–983.

    Article  Google Scholar 

  • Akinci, S., Ş Aksoy, and E. Atilgan. 2004. Adoption of internet banking among sophisticated consumer segments in an advanced developing country. International Journal of Bank Marketing 22 (3): 212–232.

    Article  Google Scholar 

  • Alam, H.M., A. Raza, and M. Akram. 2011. A financial performance comparison of public vs private banks: The case of commercial banking sector of Pakistan. International Journal of Business and Social Science 2 (11): 56–64.

    Google Scholar 

  • Allada, V.K., and R. Dubey. 2014. Investigating the online banking customer satisfaction model under the controlled effect of demographic variables. International Journal of Services and Operations Management 18 (3): 281–304.

    Article  Google Scholar 

  • Anandarajan, M., M. Igbaria, and U.P. Anakwe. 2000. Technology acceptance in the banking industry: A perspective from a less developed country. Information Technology & People 13 (4): 298–312.

    Article  Google Scholar 

  • Arif, I., W. Aslam, and Y. Hwang. 2020. Barriers in adoption of internet banking: A structural equation modeling-Neural network approach. Technology in Society 61: 101231.

    Article  Google Scholar 

  • Arora, U., and B. Vashishat. 2011. Service quality in retail banking: An Indian perspective. IUP Journal of Marketing Management 10 (3): 56–71.

    Google Scholar 

  • Bátiz-Lazo, B. 2004. Benchmarking financial services and online innovations. Benchmarking: an International Journal 11 (5): 431–446.

    Article  Google Scholar 

  • Bauer, K., and S.E. Hein. 2006. The effect of heterogeneous risk on the early adoption of Internet banking technologies. Journal of Banking & Finance 30 (6): 1713–1725.

    Article  Google Scholar 

  • Berger, S.C. 2009. Self-service technology for sales purposes in branch banking: The impact of personality and relationship on customer adoption. International Journal of Bank Marketing 27 (7): 488–505.

    Article  Google Scholar 

  • Bitner, M.J., A.L. Ostrom, and M.L. Meuter. 2002. Implementing successful self-service technologies. Academy of Management Perspectives 16 (4): 96–108.

    Article  Google Scholar 

  • Bothra, N., R. Shukla, K. Murari, and B. Tater. 2011. Employee’s perception towards adoption of IT in banking service: A study of Indian public and private sector banks. International Journal of Business Derivatives 1: 213–241.

    Google Scholar 

  • Brandman, J., and D. Keeler. 2000. Rewiring Europe’s banks. Global Finance 14 (4): 49–51.

    Google Scholar 

  • Brige, A. 2006. Building relationship with customers by using technological solutions in commercial banks of Latvia. Baltic Journal of Management 1 (1): 24–33.

    Article  Google Scholar 

  • Cadwallader, S., C.B. Jarvis, M.J. Bitner, and A.L. Ostrom. 2010. Frontline employee motivation to participate in service innovation implementation. Journal of the Academy of Marketing Science 38 (2): 219–239.

    Article  Google Scholar 

  • Cavana, R.Y., B.L. Delahaye, and U. Sekaran. 2001. Applied business research: Qualitative and quantitative methods. Hoboken: Wiley.

    Google Scholar 

  • Clamara, N., X. Pena, and D. Tuesta. (2014). Factors that Matter for Financial Inclusion: Evidence from Peru (BBVA Working Paper 14/09).

  • Coovert, M. D., and L. F. Thompson. 2003. Technology and workplace health. In J. C. Quick & L. E. Tetrick (Eds.), Handbook of occupational health psychology (pp. 221–241). Washington, DC: American Psychological Association. https://doi.org/10.1037/10474-011.

  • Dabholkar, P.A. 1996. Consumer evaluations of new technology-based self-service options: An investigation of alternative models of service quality. International Journal of Research in Marketing 13 (1): 29–51.

    Article  Google Scholar 

  • Daniel, E. 1999. Provision of electronic banking in the UK and the Republic of Ireland. International Journal of Bank Marketing 17 (2): 72–83.

    Article  Google Scholar 

  • Day, A., N. Scott, and E. K. Kelloway. 2010. Information and communication technology: Implications for job stress and employee well-being. In New developments in theoretical and conceptual approaches to job stress. Emerald Group Publishing Limited.

  • DeYoung, R., and D. Duffy. 2004. The challenges facing community banks. Society 41 (2): 42.

    Article  Google Scholar 

  • DeYoung, R., W.W. Lang, and D.L. Nolle. 2007. How the Internet affects output and performance at community banks. Journal of Banking & Finance 31 (4): 1033–1060.

    Article  Google Scholar 

  • Dubey, N.K., and P. Sangle. 2019. Customer perception of CRM implementation in banking context. Journal of Advances in Management Research 16 (1): 38–63.

    Article  Google Scholar 

  • Eneizan, B., A.A. Mostafa, and A.S. Alabboodi. 2018. Effect of technical support and trust on the adoption of electronic human resource management: Evidence from developing countries. IJAR 4 (7): 31–40.

    Google Scholar 

  • Farah, M.F. 2017. Consumers’ switching motivations and intention in the case of bank mergers: a cross-cultural study. International Journal of Bank Marketing 35 (2): 254–274.

    Article  Google Scholar 

  • Felix, S., P. Kumar, S. Puppala, and D. Agarwal. 2011. Technology enables feature-driven internet banking. Retrieved April 21, 2021, from https://www.gfmag.com/magazine/may-2011/technology-enables-feature-driven-internet-banking.

  • Field, A. 2009. Discovering statistics using SPSS, 3rd edn.

  • Forbis. 2020. Improving operating efficiency and sustainability in banking. Retrieved January 26, 2021 from https://www.b2e-media.com/improving-operating-efficiency-and-sustainability-in-banking.

  • Gattiker, U.E. 1992. Technology-mediated communication. New York: Walter de Gruyte.

    Book  Google Scholar 

  • Gelderman, C.J., W.T. Paul, and R. Van Diemen. 2011. Choosing self-service technologies or interpersonal services—The impact of situational factors and technology-related attitudes. Journal of Retailing and Consumer Services 18 (5): 414–421.

    Article  Google Scholar 

  • Gupta, S., and A. Yadav. 2017. The impact of electronic banking and information technology on the employees of banking sector. Management and Labour Studies 42 (4): 379–387.

    Article  Google Scholar 

  • Hair, J.F., W.C. Black, B.J. Babin, and R.E. Anderson. 2010. Multivariate data analysis, 7th ed. Upper Saddle River, NJ: Prentice Hall.

    Google Scholar 

  • Hall, R. 1998. Alternative delivery equals less need for front-line competence. Bank Marketing 30 (6): 42.

    Google Scholar 

  • Harden, G. 2002. E-banking comes to town: Exploring how traditional UK high street banks are meeting the challenge of technology and virtual relationships. Journal of Financial Services Marketing 6 (4): 323–332.

    Article  Google Scholar 

  • Harris, M., K.C. Cox, C.F. Musgrove, and K.W. Ernstberger. 2016. Consumer preferences for banking technologies by age groups. International Journal of Bank Marketing 34 (4): 587–602.

    Article  Google Scholar 

  • Harrison, A.W., and R.K. Rainer Jr. 1992. The influence of individual differences on skill in end-user computing. Journal of Management Information Systems 9 (1): 93–111.

    Article  Google Scholar 

  • He, D., K. You, W. Li, and J. Wu. 2019. Determinants of technology adoption: evidence from the Chinese banking industry. Emerging Markets Finance and Trade 1: 23.

    Google Scholar 

  • Heinen, J. 1996. Internet marketing practices. Information Management & Computer Security 4 (5): 7–14.

    Article  Google Scholar 

  • Hettich, A. S. 2017. Friend or foe? An exploratory analysis of employees’ attitudes towards self-service technologies. In Beiträgezur Dienstleistungsforschung 2016, 187–212. Springer Gabler, Wiesbaden.

  • Howcroft, B., R. Hamilton, and P. Hewer. 2002. Consumer attitude and the usage and adoption of home-based banking in the United Kingdom. International Journal of Bank Marketing 20 (3): 111–121.

    Article  Google Scholar 

  • Hughes, T. 2001. Market orientation and the response of UK financial services companies to changes in market conditions as a result of e-commerce. International Journal of Bank Marketing 19: 222–232.

    Article  Google Scholar 

  • Ilo, J. V., A. Wilson, and S. Nnanyelugo. 2014. Impact of technological innovation on delivery of banking services in Nigeria. In 14th international conference on economics, education and humanities, Indonesia (pp. 162–168).

  • Inegbedion, H.E. 2018. Factors that influence customers’ attitude toward electronic banking in Nigeria. Journal of Internet Commerce 17 (4): 325–338.

    Article  Google Scholar 

  • Jayawardhena, C., and P. Foley. 2000. Changes in the banking sector–the case of Internet banking in the UK. Internet Research 10 (1): 19–31.

    Article  Google Scholar 

  • Kaleem, A., and S. Ahmad. 2008. Bankers’ perceptions of electronic banking in Pakistan. Journal of Internet Banking & Commerce 13 (1): 1–16.

    Google Scholar 

  • Karjaluoto, H., M. Mattila, and T. Pento. 2002. Factors underlying attitude formation towards online banking in Finland. International Journal of Bank Marketing 20 (6): 261–272.

    Article  Google Scholar 

  • Kaur, G., and T. Khanam Quareshi. 2015. Factors obstructing intentions to trust and purchase products online. Asia Pacific Journal of Marketing and Logistics 27 (5): 758–783.

    Article  Google Scholar 

  • Kaur, H., and S. Arora. 2019. Demographic influences on consumer decisions in the banking sector: Evidence from India. Journal of Financial Services Marketing 24 (3–4): 81–93.

    Article  Google Scholar 

  • Kaur, N. 2015. Customer retention and customer satisfaction in relation to e-banking (Doctoral dissertation). Thapar University, India.

  • Kaur, R. 2012. An impact of IT on branch productivity of Indian banking in the era of transformation. Journal of Internet Banking and Commerce 17 (3): 1.

    Google Scholar 

  • Kaur, S.J., L. Ali, M.K. Hassan, and M. Al-Emran. 2021. Adoption of digital banking channels in an emerging economy: Exploring the role of in-branch efforts. Journal of Financial Services Marketing 1: 1–15.

    Google Scholar 

  • Kaushik, A.K., G. Mohan, and V. Kumar. 2020. Examining the antecedents and consequences of customers’ trust toward mobile retail apps in India. Journal of Internet Commerce 19 (1): 1–31.

    Article  Google Scholar 

  • Khatri, B. 2019. Is India reaching the saturation point for new mobile subscribers? Retrieved September 4, 2019 from https://inc42.com/features/has-india-reached-a-ceiling-point-of-new-mobile-users/.

  • Kim, C., M. Mirusmonov, and I. Lee. 2010. An empirical examination of factors influencing the intention to use mobile payment. Computers in Human Behavior 26 (3): 310–322.

    Article  Google Scholar 

  • Kumra, R., and R.K. Mittal. 2004. Trust and its determinants in internet banking: A study of private sector banks in India. Decision 31 (1): 73–96.

    Google Scholar 

  • Kwateng, K.O., E.E. Osei-Wusu, and K. Amanor. 2019. Exploring the effect of online banking on bank performance using data envelopment analysis. Benchmarking: an International Journal 27 (1): 137–165.

    Article  Google Scholar 

  • Laukkanen, T. 2007. Customer preferred channel attributes in multi-channel electronic banking. International Journal of Retail & Distribution Management 35 (5): 393–412.

    Article  Google Scholar 

  • Li, F. 2001. The Internet and the deconstruction of the integrated banking model. British Journal of Management 12 (4): 307–322.

    Article  Google Scholar 

  • Lymperopoulos, C., and I.E. Chaniotakis. 2004. Branch employees’ perceptions towards implications of e-banking in Greece. International Journal of Retail & Distribution Management 32 (6): 302–311.

    Article  Google Scholar 

  • Marshall, J.J., and L.A. Heslop. 1988. Technology acceptance in Canadian retail banking: A study of consumer motivations and use of ATMs. International Journal of Bank Marketing 6 (4): 31–41.

    Article  Google Scholar 

  • Martins, C., T. Oliveira, and A. Popovič. 2014. Understanding the Internet banking adoption: A unified theory of acceptance and use of technology and perceived risk application. International Journal of Information Management 34 (1): 1–13.

    Article  Google Scholar 

  • Meuter, M.L., A.L. Ostrom, R.I. Roundtree, and M.J. Bitner. 2000. Self-service technologies: understanding customer satisfaction with technology-based service encounters. Journal of Marketing 64 (3): 50–64.

    Article  Google Scholar 

  • Mick, D.G., and S. Fournier. 1998. Paradoxes of technology: Consumer cognizance, emotions, and coping strategies. Journal of Consumer Research 25 (2): 123–143.

    Article  Google Scholar 

  • Mols, N.P., P.N.D. Bukh, and J.F. Nielsen. 1999. Distribution channel strategies in Danish retail banking. International Journal of Retail & Distribution Management 27 (1): 37–47.

    Article  Google Scholar 

  • Morgan, K., M. Morgan, and J. Hall. 2000. Psychological developments in high technology teaching and learning environments. British Journal of Educational Technology 31 (1): 71–79.

    Article  Google Scholar 

  • Murari, K., and B. Tater. 2014. Employee’s attitude towards adoption of IT-based banking services. Competitiveness Review 24 (2): 107–118.

    Article  Google Scholar 

  • Myers, N.D., S. Ahn, and Y. Jin. 2011. Sample size and power estimates for a confirmatory factor analytic model in exercise and sport: A Monte Carlo approach. Research Quarterly for Exercise and Sport 82 (3): 412–423.

    Article  Google Scholar 

  • Nagar, N. 2015. A comparative study of I.T enabled banking services and customer satisfaction n.b.t bank in UP (Doctoral dissertation). SHUATS, India.

  • Nath, R., K.T. Bhal, and G.T. Kapoor. 2013. Factors influencing IT adoption by bank employees: An extended TAM approach. Vikalpa 38 (4): 83–96.

    Article  Google Scholar 

  • Nath, R., P. Schrick, and M. Parzinger. 2001. Bankers’ Perspectives on Internet Banking. E-Service 1 (1): 21–36.

    Article  Google Scholar 

  • O’Donnell, A., M.G. Durkin, and D. McCartan-Quinn. 2002. Corporate banking in the UK: Personal vs. remote interaction. International Journal of Bank Marketing 20 (6): 273–284.

    Article  Google Scholar 

  • O’Driscoll, M. P., P. Brough, C. Timms, and S. Sawang. 2010. Engagement with information and communication technology and psychological well-being. In New developments in theoretical and conceptual approaches to job stress. Emerald Group Publishing Limited.

  • Oladejo, M., and T. Akanbi. 2012. Banker’s perceptions of electronic banking in Nigeria: A review of post consolidation experience. Research Journal of Finance and Accounting 3 (2): 1–11.

    Google Scholar 

  • Olanipekun, W.D., A.N. Brimah, and S.T. Ajagbe. 2013. Role of electronic banking in enhancing human resource performance and customer satisfaction: Evidence from Guaranty Trust Bank plc. Nigeria. International Journal of Business and Behavioral Sciences 3 (4): 36–44.

    Google Scholar 

  • Onyia, O.P., and S.K. Tagg. 2011. Effects of demographic factors on bank customers’ attitudes and intention toward Internet banking adoption in a major developing African country. Journal of Financial Services Marketing 16 (3–4): 294–315.

    Article  Google Scholar 

  • Parasuraman, A., and C.L. Colby. 2015. An updated and streamlined technology readiness index: TRI 2.0. Journal of Service Research 18 (1): 59–74.

    Article  Google Scholar 

  • Pikkarainen, T., K. Pikkarainen, H. Karjaluoto, and S. Pahnila. 2004. Consumer acceptance of online banking: An extension of the technology acceptance model. Internet Research 14 (3): 224–235.

    Article  Google Scholar 

  • Poon, W.C. 2008. Users’ adoption of e-banking services: The Malaysian perspective. Journal of Business & Industrial Marketing 23 (1): 59–69.

    Article  Google Scholar 

  • Prendergast, G., and N. Marr. 1994. Towards a branchless banking society? International Journal of Retail & Distribution Management 22 (2): 18–26.

    Article  Google Scholar 

  • RBI. 2019. Operations and performance of commercial banks. Retrieved April 12, 2020 from https://m.rbi.org.in/Scripts/PublicationsView.aspx?id=19365.

  • Reichheld, F.F., and P. Schefter. 2000. E-loyalty: Your secret weapon on the web. Harvard Business Review 78 (4): 105–113.

    Google Scholar 

  • Rogers, E.M. 2003. Diffusion of innovations. New York: Free Press.

    Google Scholar 

  • Roth, A.V., and M. Van der Velde. 1989. Investing in retail delivery system technology. Journal of Retail Banking 11 (2): 23–34.

    Google Scholar 

  • Sandhu, S. 2014. Impact of information technology on service quality in banking sector of Punjab (Doctoral dissertation). GNDU, India.

  • Seyal, A.H., and M.M. Rahim. 2011. Customer satisfaction with internet banking in Brunei Darussalam: Evaluating the role of demographic factors. e-Service Journal: A Journal of Electronic Services in the Public and Private Sectors 7 (3): 47–68.

    Article  Google Scholar 

  • Sharma, R., G. Singh, and S. Sharma. 2020. Modelling internet banking adoption in Fiji: A developing country perspective. International Journal of Information Management 53: 102116.

    Article  Google Scholar 

  • Sharma, S., J. Sharma, and A. Devi. 2012. Role stress among banking sector employees: A logit approach. IUP Journal of Organizational Behavior 11 (3): 41–63.

    Google Scholar 

  • Singh, S., and R.K. Srivastava. 2020. Understanding the intention to use mobile banking by existing online banking customers: An empirical study. Journal of Financial Services Marketing 25 (3): 86–96.

    Article  Google Scholar 

  • Tarafdar, M., and S.D. Vaidya. 2006. Challenges in the adoption of E-Commerce technologies in India: The role of organizational factors. International Journal of Information Management 26 (6): 428–441.

    Article  Google Scholar 

  • Trocchia, P.J., and S. Janda. 2000. A phenomenological investigation of Internet usage among older individuals. Journal of Consumer Marketing 17 (7): 605–616.

    Article  Google Scholar 

  • Tyler, K., and E. Stanley. 2001. Corporate banking: The strategic impact of boundary spanner effectiveness. International Journal of Bank Marketing 19 (6): 246–261.

    Article  Google Scholar 

  • Whaling, C.L. 1996. Technological innovation and the US banking industry: Innovation in the US retail and wholesale banking sectors. Technology in Society 18 (4): 477–501.

    Article  Google Scholar 

  • Yakhlef, A. 2001. Does the Internet compete with or complement bricks-and-mortar bank branches? International Journal of Retail & Distribution Management 29 (6): 272–281.

    Article  Google Scholar 

  • Yang, S., Y. Lu, S. Gupta, Y. Cao, and R. Zhang. 2012. Mobile payment services adoption across time: An empirical study of the effects of behavioral beliefs, social influences, and personal traits. Computers in Human Behavior 28 (1): 129–142.

    Article  Google Scholar 

  • Zheng, X., S. El Ghoul, O. Guedhami, and C.C. Kwok. 2013. Collectivism and corruption in bank lending. Journal of International Business Studies 44 (4): 363–390.

    Article  Google Scholar 

  • Zolait, A.H.S. 2010. An examination of the factors influencing Yemeni Bank users’ behavioural intention to use Internet banking services. Journal of Financial Services Marketing 15 (1): 76–94.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. School of Management Studies, Punjabi University, Patiala, 147002, India

    Simran Jit Kaur & Liaqat Ali

Authors
  1. Simran Jit Kaur
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Liaqat Ali
    View author publications

    You can also search for this author in PubMed Google Scholar

Corresponding author

Correspondence to Liaqat Ali.

Additional information

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Simran Jit Kaur—research scholar at Punjabi University in India.

Liaqat Ali—faculty member at School of Management Studies, Punjabi University, Patiala, India.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Kaur, S.J., Ali, L. Understanding bank employees’ perception towards technology enabled banking: a developing country perspective. J Financ Serv Mark 26, 129–143 (2021). https://doi.org/10.1057/s41264-021-00100-5

Download citation

  • Received:

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1057/s41264-021-00100-5

Keywords

Search

Navigation