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Top1. Introduction
The banking system is a crucial constituent of the financial ecosystem. Over the last two decades, there is a continuous shift in the banking industry from physical banking towards digital (virtual) banking. Digital banking denotes the digitalisation of banking amenities offered by banks to its consumers (Howcroft et al., 2002). Virtual banking uses technology to conduct the banking business smoothly and effectively (Alkhowaiter, 2020). The process of aggregating contemporary tools and technology to conduct the banking business smoothly & effectively as well as satisfy customer demands is known as digital transformation. Digital transformation is an essential factor in enhancing the growth of the business (Fairooz and Wickramasinghe, 2019); improve customer retention (Skan et al., 2015); build customer value (Mbama et al., 2018) & create loyalty among customers (Konalingam et al., 2017).
Narasimham Committee (1991) had planned liberalisation of the Indian banking industry in the 1990s to enhance the competition within banks from within and outside the country. The liberalisation of the banking industry put tremendous pressure on banks to implement modern technologies in banks. Since then, the banks have started recognising that adopting new technologies is essential to remain competitive. Yet, the process of digital transformation is slow. The survey conducted by Efma and Infosys Finacle, 2018 states that in India only 17% of banks have fully deployed digital transformation, 41% of banks have partially deployed digital transformation, 27% of banks have made limited progress, and 15% of banks are in their initial designing phase of digital transformation. The reasons behind the lack of deploying digital transformation are lack of customer awareness (Nami, 2009), security risk (Devadevan, 2013; Ananda et al., 2020), cost (Gupta et al., 2013), the skill of employees (Roy and Viswanathan, 2018; Keerthy, 2018), regulatory compliance (Vijai, 2019; Goyal et al., 2012) and many more. According to Indriasari et al., 2019, the banking industry was facing the challenges of digital transformation as the banks are emphasising mainly on flows of work & systems instead of enhancing the experiences of customers. Therefore, it’s vital for the banking sector to identify the factors essential for implementing technology in the banking industry.
The study aims to identify and analyse the factors crucial for the successful technological implementation in the Indian Banking Industry. The objective has been constructed based on the reality that Indian banks are moderately slow in deployed digital transformation (Bhosale et al., 2020). Therefore, it’s essential for banks to be aware of the elements responsible for the implementation of technology. The current study tries to answer the following research questions:
The present study is planned in eight sections. The first section is an overview of Indian banking industry & highlights the requirement of technology adoption. The second segment presents review of literature of factors necessary for technology implementation in the banking industry. Methodology and questionnaire development have been discussed in the third and fourth section. Fifth section discusses the DEMATEL approach. The results and discussion have been presented in the 6th Segment. Segment 7th and 8th displays conclusion & implication of the study followed by limitations & future scope of study in ninth section.