How the Advancements in Technology Have Improved Customer Satisfaction in the Banking Sector

Armstrong’s team used branch-level data from the CSI system as the primary source of research. As a result the concept of “comfortable banking” is directly translated into customers satisfaction during their interaction with tellers in the bank, since almost every criteria in the CSI is measuring representative service behaviors. One thing that the team failed to see is that “comfortable banking” could include a much wider scope of services that customers value therefore consider important to their experience: the products itself and services provided outside the bank for instance. According to Armstrong, “comfortable banking” positioning stands for the branding of the overall experience TD Canada Trust delivers to its clients. The financial products, as the core business of any banks throughout the world, should be counted as part of the service, too.

From an operational viewpoint, banks are trying to incorporate technology in their product offerings, such as advanced banking and financial-related mobile applications. Innovations are made with the assistance of learnings from customer information and data analysis, which are an essential part of analytical CRM. The strategic view also suggests that banks are building a social presence on online platforms to enhance customer engagement and build a long-term relationships with their customers. The above approaches can clearly be identified when looking at CBA and NAB customer relationship management strategies. With its high-tech ATMS and state-of-the-art Commonwealth mobile app, CBA has full product leadership in the market, enabling them to have a competitive advantage when attracting new prospects or customer retention. On the other hand, NAB use customer intimacy as their core CRM strategy, cutting their product offerings in half and make consumers more centrally focused. They are very responsive in customers' needs and wants; and is the leading brand when it comes to customer

The Automated Teller Machine (ATM) is one type of innovation that can mechanically accept deposits, issue withdrawals, transfer funds between accounts, collect bills, and make small loans. This study aims at investigating the satisfaction levels of HSBC ATM cardholders (both staff and nonstaff) with respect to various aspects (promptness of card delivery, the performance of HSBC ATM, the service quality of ATM personnel etc.) of using HSBC ATM and their opinions on various other related issues (such as positive and inconvenient features of HSBC ATM, recommendation to improve the service quality etc.).

The banking sector is facing a dynamic change in the market. In addition to that, there is an economic and financial crisis in the banking industry, hence aiming customer satisfaction is very crucial for the banking sector. It's well understood that customers are the backbone of any company. Customer satisfaction is an essential part of all the industry, not sparing the banking sector. If the customers get pleased with the services or products of a company, they become loyal to the company and market it hence contributing to the growth of the company. This increases the profits of the company (Hill, 2003).

The number of individuals going to branches has dropped by 30% before two years, while nearly 80% of while some 70% of the Karachi banking population now uses some form of online banking service every month. More consumers are embracing mobile banking via their phone or tablet. Developments in technology have empowered banks to increase customer

As ATM machines and the internet became ubiquitous in use for transactions, it forced Bank of the West to take a deep dive on all the different ways customers interact with the bank, and how the multitude of products/services can be combined to various packages to present better and more targeted combination of products and services.

The banking industry is service oriented and mandates interactions between the customer and service employees. The quality of service is intangible therefore cannot be counted or inventoried. It is also difficult to understand how customers consider their services and the quality of their services. Customer satisfaction, customer retention and repeat business some key indicators of how customers perceive products and services. Because Wells Fargo’s business is focused to building long lasting relationships with customer and adding value to their lives, measuring satisfaction gives the bank an idea of how the company is doing in terms or achieving organizational goals. The positive relationship between quality service and customer satisfaction relays that employees are putting effort toward departmental or organizational goals. Further customer retention is driven by customer loyalty, which is reinforced by a positive mindset of the customer. Customer loyalty is focused in brand loyalty and service loyalty. Research has proven that quality service has a positive effect on loyalty, demand, productivity and market share. Many organizations lose customers because of poor quality and service performance. Wells Fargo recognizes the economic impact of lost customers and therefore upgrades product designs and empowers service staff.

Characteristics in the Banking Environment: Positive and Negative Impact of Information Technology in Banking: Trends in Banking: How Sectors can affect Banking and Technology: Works Cited:

Banks are competing intensely in a highly competitive environment to offer quality oriented services according to customers’ expectations. Various important parts of banking sector like operations, service quality, employee satisfaction, customer satisfaction, financing products, efficiency, financial performance are being studied by many researchers to better understand and serve the community at large (Arokiasamy, 2013).

In most empirical Banking Systems it experiences some degree of inefficiency in their business operations and performance, especially with regard to managing the quality of bank- customer relationships and product and service marketing strategies. Many studies have gathered that these arise for the following major reasons: the service is very complex and competitive in present days where the transaction process is customized; the external environment is

Banking in today’s era is in process of upgrading itself by joining the wave of latest technologies and trends. Currently, it is in the midst of chaos and disruptions and is in process of reshaping its business models to alienate the traditional processes. The driving force for Banks to adopt such changes can be a. Changing customer needs, b. Optimization of cost and Banking Operations, c. Digitization and Automation, d. Streamlining of complex and lengthy processes and e. New competitors in the industry.

Other technology is poised to affect the distribution of retail banking services. For instance, growing broadband internet penetration and wider use of low-cost, high quality webcam will allow banks to use Web 2.0 or other collaborative tools to reach customers at their homes offices, in branches and at ATM. This capability is providing banks with fresh alternatives for customer interaction such as video conferencing or co-browsing to support dynamic consultations at convenient locations. One Australian bank has a VoIP (Voice over Internet Protocol) network with enough bandwidth to handle video streams so that remote relationship managers, loan officers and insurance professionals can advise and serve clients at a distance. Additionally, the growing use of instant messaging as a business tool, the expanded use of social networking sites, and increasing consumer acceptance of self-service kiosks are likely to influence consumer preferences for banking delivery channels going forward.

1. Joseph et al. (1999) investigated the influence of banking services. They found six underlying dimensions of e-banking service quality such as convenience and accuracy, feedback and complaint management, efficiency, queue management accessibility and customizations. Jun and Cai (2001) identified 17 service quality dimensions of I-banking service quality. These are reliability, responsiveness, competence, courtesy, credibility, access, communication, understanding the customer, collaboration, continuous improvement, content, accuracy, ease of use, timeliness, aesthetics, security and divers features. They also suggested that some dimensions such as responsiveness, reliability and access are critical for both traditional and internet bank. Jayawardhena (2004) transforms the original SERVQUAL scale to the internet context and develops a battery of 21 items to assess service quality in e-banking. By means

Besides opportunities of this channel, banks and financial institutions across the world face new challenges to the ways they operate, deliver services and compete with each other in the financial sector. Driven by these challenges, banks and financial institutions have implemented delivering their services using this channel (Chan&Lu, 2004; Cronon, 1997). Internet banking refers to the use of the Internet as a delivery channel for banking services, which include all traditional services such as balance enquiry, printing statement, fund transfer to other accounts, bill payment, and so on, and new banking services such as electronic bill presentment and payment (Frust, Lang&Nolle, 2000) without visiting to bank branch (Mukherjee&Nath, 2003; Sathye, 1999). Many commercial banks and financial institutions have implemented Internet banking services over the past decade. Compared with traditional over the counter banking, Internet banking does not offer face-to-face contact in what is essentially a one-to-one service relationship with the individual. As a result, Internet banking must deliver higher quality in order to compete. Understanding customer’s expectations and how they feel about their perceived services is becoming a very serious concern. Internet banking continuous success comes from two groups: new customers and repeat customers. Since it always costs more to attract new customers than to retain

Today banks operate in an extremely globalized, liberalized, privatized and a competitive environment. Indian banking industry has witnessed an incredible growths due to extensive changes that are taking place in the information technology. The development and the increasing progress that is being experienced in the Information and Communication Technology have brought lot of changes in almost all facets of life. In the Banking Industry, it has been in the form of online or e-banking, which is now replacing the traditional banking practice. The e-banking constitutes an electronic alternative network of payments and benefit of services. E-banking has the potential to transform the banking business as it significantly lowers transaction and delivery costs. Today e-banking has experienced phenomenal growth and has become one of the main avenues for banks to deliver their products and services. Online banking has a lot of benefits which add value to customers’ satisfaction in terms of better quality of service offerings and at the same time enable banks gain more competitive advantage over other competitors. There are some associated challenges identified in the study that seem to hinder the success of e-banking services and thus constitute major concern to both financial institutions and customers. This