Title: Business impacts of electronic banking technologies

Authors: Anjan Roy

Addresses: National Institute of Bank Management, Kondhwa Khurd, Pune, Maharashtra, 411048, India

Abstract: Banks often invest in new technologies as competitive necessity. Therefore, despite the visible impacts on banking operations, they may actually find it hard to achieve business results. This paper looks at the impacts of investments made on electronic banking technology on the business performance of bank branches. Set in the context of Indian banking, where several banks have set up e-lobbies, or separate enclosures with electronic banking facilities adjacent to the branch. Based on data of one such bank, the study reveals that branches with e-lobby attracted increased number of low cost but higher transaction deposit accounts. This did not help much in growing the amount of deposit. Instead, these branches needed to contract higher amounts of interest bearing deposits. The impact on growth in advances was however positive because the branch staff were able to devote themselves to interact with customers. The study indicates that changes in the mix of manpower deployed in e-lobby branches may have led to improved branch performance.

Keywords: electronic banking; technology investment; business impact; bank branch.

DOI: 10.1504/IJEBANK.2018.095585

International Journal of Electronic Banking, 2018 Vol.1 No.2, pp.113 - 128

Accepted: 25 Jan 2018
Published online: 11 Oct 2018 *

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