Title: Digitalisation boost operation efficiency with special emphasis on the banking sector

Authors: J. Sai Sudha; V.S. Prasad Kandi

Addresses: Department of MBA, Koneru Lakshmaiah Education Foundation, Vaddeswaram Campus, Guntur District-522502, Andhra Pradesh, India ' Department of MBA, Koneru Lakshmaiah Education Foundation, Vaddeswaram Campus, Guntur District-522502, Andhra Pradesh, India

Abstract: The banking sector has experienced a substantial technological shift that has opened up new and better opportunities for its customers. Based on their technological expenditures, the study assessed the two biggest public Indian banks and the two biggest private Indian banks. The most crucial statistical techniques used to demonstrate the aims are realistic are bivariate correlations and ordinary least squares. This work aims to establish a connection between research and a technology index that serves as a proxy for operational efficiency. The results show that for both public and private banks, the technology index positively influences operational efficiency metrics like IT costs, marketing costs, and compensation costs. This suggests that when the technology index increases, so do IT, marketing, and compensation costs, even though it has been shown that the technology index favourably improves operational efficiency measures like depreciation and printing. This means that the cost to banks is high despite greater investment in technology for these activities.

Keywords: digitalisation; boost operation; banking sector; public sector banks; Indian economy; financial performance; entrants; incumbents.

DOI: 10.1504/IJEF.2024.141714

International Journal of Electronic Finance, 2024 Vol.13 No.4, pp.453 - 476

Received: 03 Feb 2023
Accepted: 21 Apr 2023
Published online: 01 Oct 2024 *

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