Digital Innovation in Banking Sector: Customers Perception in Tenkasi District

Abstract

Digital innovations in financial sectors are increasingly becoming popular because of convenience and flexibility, Digital banking is the term used for new age banking system, digital banking uses the internet as the delivery channel by which to conduct banking activity, it is a result of explored possibility to use internet application in one of the various domains of commerce. It is difficult to infer whether the internet tool has been applied for convenience of bankers or for the customers’ convenience. But ultimately it contributes in increasing the efficiency of the banking operation as well providing more convenience to customers. Without even interacting with the bankers, customers transact from one corner of the country to another corner of the country. Private Banks in India were the first to implement digital innovation in financial services in the banking industry, Private Banks due to late entry into the industry, understood that the establishing network in remote corners of the country is a very difficult task. It was clear to them that the only way to stay connected to the customers at any place and at anytime is through digital applications, they took these applications as a weapon of competitive advantage to corner the great monoliths like State Bank of India, Indian Bank etc. Private Banks are pioneer in India to explore the versatility of digital applications in delivering services to customers. Keeping this in the mind the researcher decided to study the perception of customers towards Digital innovation in banking sectors financial service, the sampling technique adopted was Stratified Convenient sampling method with a sample size of 200 respondents from 10 sample units(banks), from the study it was found that all the null hypothesis was rejected by showing positive relationship between variables, it was concluded that banking sector in India have to innovate digital services as per the need, customers also prefer to get their job done quickly.