“IMPACT ON BANKING SECTOR BY

INFORMATION TECHNOLOGY”

A Research Report submitted in partial fulfilment of the

requirements for the Degree of
Master of Commerce (International Finance)
Christ University

Submitted By:
Ganesh R
(2128810)

Academic Year: 2022-23

Under the Guidance of

Dr. Karthick C,
(Assistant Professor)
Department of
Professional studies
 DECLARATION

I, Ganesh R (2128810) hereby declare that this project titled “IMPACT ON

BANKING SECTOR BY INFORMATION TECHNOLOGY” is an original
project study, conducted under the guidance of [Link] C, Department of Professional
Studies, Christ University.

I further declare that this has not previously formed the basis of the award of any degree,
diploma or other similar titles of recognition.

Place: Bangalore
Date:

Ganesh R (2128810)
 CERTIFICATE BY HEAD OF DEPARTMENT

This is to certify that Ganesh R (2128810) is a bonafide student of Master of Commerce

(International Finance) Programme studying in CHRIST UNIVERSITY. She has prepared
and submitted a research project titled “IMPACT ON BANKING SECTOR BY

INFORMATION TECHNOLOGY” in partial fulfilment for the requirement of the

Master of Commerce (International Finance) Programmeof Christ University, for the academic year
2022-23.

Place:
Bangalore Date:

Dr. Kavitha Desai

HOD

Department of Professional Studies

 CERTIFICATE BY GUIDE

This is to certify that this project titled “IMPACT ON BANKING SECTOR BY

INFORMATION TECHNOLOGY” submitted to Christ University in partial fulfilment

for the requirement of Master of Commerce (International Finance), and is an original and
independent work carried out by Ganesh R(2128810) under my guidance and supervision.

This has not previously formed the basis of the award of any degree, diploma or other similar
titles of recognition.

Place:
Bangalore Date:

Dr. Karthick C

Christ

University
 Acknowledgement

The research project undertaken by me has enabled me to gain immense knowledge about the
topic chosen. I am grateful to those, without whose constant support and encouragement it
would have been impossible for me to reach this far. Therefore, I take this opportunity to
express my deepest gratitude.

I would like to thank the management of Christ University for their undisrupted assistance.
I am profoundly thankful to Dr. Karthick C, my guide who has extended her support in
conducting my research and for her endless mentoring and encouragement that motivated me
to undertake this research, despite her other commitments.
I’d also like to extend my hearty gratitude to those who have always been around me for
support, family members, friends and everybody for being so patient and supportive
throughout the research.
 TABLE OF CONTENTS

SL. NUMBER CONTENTS PAGE

NUMBERS
1 CHAPTER 1 1-7
INTRODUCTION
2 CHAPTER 2 8-11
LITERATURE REVIEW
3 CHAPTER 3 12-14
RESEARCH DESIGN
4 CHAPTER 4 15-23
DATA ANALYSIS AND FINDINGS
5 CHAPTER-5 24
CONCLUSION
6 CHAPTER 6 25-26
BIBLIOGRAPHY
IMPACT ON BANKING SECTOR BY INFORMATION TECHNOLOGY

ABSTRACT:

The banking industry has undergone a revolution because to technological advances (IT), which
have altered how money is transacted. With the introduction of digital banking, banking
services are now much more readily available to customers, enabling them to conduct
transactions whenever and wherever they want. IT has also increased the operational
effectiveness of banks by enabling automation, lowering mistake rates, and requiring less
human involvement. The effectiveness and security of financial transactions have been
significantly improved by the use of cutting-edge technology like blockchain, chatbots, and
artificial intelligence. This study explores the effects of IT on the banking industry by looking at
regression analysis data.
According to the report, there is a strong positive association between the adoption of IT and
advancements in banking services. New business models have emerged as a result of the banking
industry's embrace of IT, which has also altered how financial transactions are carried out. By
utilizing technology to offer cutting-edge financial services, fintech businesses, for example,
have challenged the traditional banking sector. Traditional banks have increased their IT
spending to stay competitive as a result of the competition from fintech companies. IT has also
made it possible for banks to tailor their services by utilizing data analytics and machine learning.
In order to understand their preferences and behavior, banks can now analyze client data and
modify their products and services accordingly. Improved consumer involvement and loyalty
have resulted from this.

Keywords: Information Technology (IT), Banking Sector, Digital Banking, Blockchain,

Chatbots, Operational efficiency
CHAPTER 1: INTRODUCTION

EVOLUTION OF BANKING INDUSTRY

The Evolution of banking from trading shells for goods to sending digital currencies around the
globe, developments in technology are reflected in banking from Branch banking to virtual
banking. Banks are the backbone of financial sector in the economy, the evolution of banking
industry is transformed tremendously over the past decades with the support of Information
Technology (IT). Banking sector role has been expanded and adopted to the latest technology
provided by IT. The introduction of Credit Card was the first technological advancement to the
financial industry in 1950’s; the first universal credit card was introduced by “Diners Club”
which made consumers thought that they need to spend cash for each and every purchase where
they had a option of using credit facility and could pay off in future date. As a whole credit card
allowed consumers to purchase their requirements in large, even though they don’t have enough
cash to purchase their needs but with the help of credit they can spend and payoff in later period.

In 1960’s introduction of ATM took place, “A Scottish inventor named John Shepherd-Barron
thought if vending machines could dispense chocolate bars, why they couldn’t dispense cash?”
Later Barclay’s Bank interested with this concept and invented the first ATM; this invention
made the customers to withdraw their money in the vending machine and avoided visiting the
banks for takeout the cash, customers were no longer forced by banking hours and locations
when they want to access their money, the use of computers was also introduced in 1960’s
where the first computer was purchased by bank of new South Wales for the sum of $26 million.
The computer replaced the machine accounting operations used in the entire branch by
centralized bank’s trading accounts, which sparked the first digital revolution. The investments
in computer technology were started hugely by banking industry where the main purpose was to
eliminate the manual processing and adopt computer technology for recording the transactions.

In 1970’s the first electronic payment systems for both international and domestic transactions
were developed. The SWIFT International payment network was established in 1973 and
domestic payment systems were developed around the world by banks working with
governments. The convenience of online banking technology started in 1980’s, the banking
1
system using a phone line gained the popularity, along with this there were various advantage
like lowering the transaction costs, easy payment of bills, depositing cheques online, Ease in
transferring the money etc.

As online banking gained momentum, the first commercially available computer tablet
manufactured by Samsung in 1989, which brought a new wave of convenience in retail banking,
Late 1990’s PayPal, P2P money services these all technology enabled wireless transfers and also
serves as an electronic alternative to traditional paper methods such as cheques and money orders.
These services made it more convenient for people to pay for services wirelessly.

The following are the Indian banking sector's growth catalysts:

1. High economic growth in India

2. Rising per capita income

3. New channel - After ATMs, mobile banking is anticipated to overtake them as the
second- largest channel for banking.

4. Banking Service Quality: 6. Digitalization and Technology in Banking 7. Marketing

through social media.

2
Trends in Banking:

 Banks are seeking consolidations in order to gain more advantages.

 As of March 2017, debit cards have mostly supplanted credit cards as India's preferred
method of payment.(ibef, June 2017)
 The widespread usage of RTGS (Real time gross settlement) and NEFT (National
electronic fund transfer) for fund transfers
 The KYC (know your customer) criteria were imposed by the RBI.
 Banks use technology on many different levels, including back office processing,
channel convergence, IT-enabled business process reengineering, and communication.
 Deep insights into client needs are being provided by digital analytics, which enables
banks to provide highly targeted goods and services.
 Social media is essential for communicating with and establishing relationships with
clients.
 Better Risk-Management Techniques
 Diversification of revenue streams;
 Technological innovation;

3
  Rapid growth of internet and mobile banking
 CRM and data warehousing

Growth of Banking Industry in india

India's financial Sector is Growing: The Indian financial system has been significantly
impacted by the IT revolution. Online banking has just been introduced in India as a result of the
use of computers. Since India's banking industry was opened up to the global market in 1991 as a
result of economic liberalization, computer usage has multiplied dramatically. Without the aid of
information technology, Indian banks were finding it challenging to compete with the foreign
banks in terms of customer care. The spread of banking, both physically and virtually, through
telebanking, biometric and mobile ATMs, internet and mobile banking, and mobile banking has
accelerated in recent years.

The ability to personalize the delivery of products and services to clients will be the most significant
impact of technology. A vital aspect of this customizability is data analytics. Using unstructured
data on a regular basis will significantly improve our knowledge of behaviour and our ability to
anticipate it. Customer experience will increasingly serve as the defining characteristic of a
preferred service provider in a market where the provision of financial services will become
increasingly commoditized. Financial services demand will increase as a result of the capacity to
customise financial solutions to customers across various platforms and a wave of product
improvements. Customers are increasingly fusing their physical and digital worlds together
while conducting transactions through various channels. The pace of technological progress will
accelerate due to competition from unusual entities.

Importance of IT Technology on Banking

The adoption of core banking solutions (CBS), branch automation, and centralization of
activities in the CBS were among the main focuses of many of the banks' early 2000s IT
initiatives. Most banks finished making the transition to becoming technology-driven businesses
over the past ten [Link] is difficult to imagine the unfavourable situation that the industry was
in prior to the reforms, when a straightforward deposit or withdrawal of currency would take a

4
day,

5
as it transitions from a manual, scale-constrained environment to a worldwide presence with
automated systems and processes.

The following benefits highlight the significance of such new technology in banking and are
provided by the introduction of computers and other computerized technologies in banks:

1) Increased Efficiency: With the aid of contemporary tools, customers can receive efficient and
prompt service.

2) Information Handling: Provision of strengthening internal control, housekeeping, and

reporting duties as well as development of current monitoring and information systems.
Information sorting becomes simple.

3) Cost Reduction: The use of contemporary technology results in a reduction in costs, including
floor area.

4) Accuracy: Thanks to contemporary technology, tasks like inter-branch and inter-bank

reconciliation, cheque clearing, pass book entries, and other similar tasks can now be
completed quickly, accurately, and legibly.

Applications of IT

1) Mobile Banking: A mobile banking programme is a technology used in the

banking industry that allows customers to send and receive money.

2) Internet banking: Through the use of an active internet connection, a customer can
access his or her bank account online and perform a variety of tasks, including checking
account balances, making payments, transferring money, arranging international transfers,
setting up standing orders and updating debit payments, and checking for updates and
recent transactions.

6
 3) Video Teller Machines (VTMs): Banks offer this brand-new, cutting-edge service.
For all branch banking services, a customer is connected remotely to a customer
support agent via VTM.

4) Secure Short Messaging Service (SSMS) : Customers can send and receive text
messages on their cell phones using the Secure Short Messaging Service (SSMS) for
banking. The customer can access his bank account by using his mobile number, which
banks maintain on file for each customer.

5) SMS Banking: SMS enables you to conduct some banking-related searches on

your mobile device from anywhere in a nation that has mobile network coverage.

6) Wireless Application Protocol (WAP) technology :With the help of a mobile phone's
browser, customers can access the bank's website via the internet using the Wireless
Application Protocol (WAP) technology.

7) Supplementary Unstructured Service Data (USSD): A menu and time period

are features of this SMS service. This is a guideline that all mobile handsets adhere
to.

Indian Banks' Latest IT Trends

The banking business is undergoing rapid change in order to meet competition, technological
challenges, and end-user demand. Clearly, technology is a critical differentiator in bank success.
Banks must consider creativity not only for products but also for processes.

Technology is changing not only the environment, but also the connection with customers.
Technology has not only broken down many barriers, but it has also resulted in superior goods
and channels. This has heightened the importance of the customer connection. It is also regarded
as a tool for cost reduction and effective communication with people and organizations involved
7
in the banking industry. The RBI has prioritized the improvement of the banking system's

8
technological infrastructure. Technology has enabled the banking sector to develop new products
and services, as well as new markets and efficient delivery channels. IT also offers a framework
for the banking sector to meet current competitive challenges. IT allows for the reduction of the
expense of global fund transfers.

Some of the most current IT devices are listed below:

System of Electronic Payment and Settlement-Bank receipts and payments are most commonly
made using negotiable tools such as cheques. These tools could be used instead of money.
Clearing house tools could be used to realize interbank cheques. Initially, there was a manual
clearing method, but the increasing volume of banking transactions made it necessary for
automating the clearing process

A board for the regulation and supervision of payment and settlement system (BPSS) was
established by RBI in 2005 in order to strengthen the institutional structure of the electronic and
clearing system. In 2007, the Payment & Settlement System Act was enacted, giving the RBI the
authority to oversee and control the payment and settlement system as well as to establish a legal
foundation for multilateral netting and settlement.

9
CHAPTER 2: REVIEW OF LITERATURE

The Narasimhan Committee (1998), which looked at issues related to technology advancement,
found that the majority of technology that could be considered appropriate for India had been
introduced in some diluted form or as a pilot project, but that the desired success had not been
attained for a number of reasons, including a lack of clarity and certainty on legal issues.

The research performed for this article, "Impact of Information Technology on Indian Banks,"
by Sobol and Cron (2006) sought to determine the relationship between computerization and
various indicators of overall firm performance. Users versus non-users, the three degrees of
usage, and the type of computer usage are contrasted in three performance comparisons. As a
result, computerization and overall performance are linked.

Abinav Sharma and M.C. Sharma "The Role of IT in the Indian Banking Sector" This paper
comes to the conclusion that Indian public sector banks, which account for about 75% of the
market, have made an effort in the IT industry. They are attempting to decentralise decision-
making while working towards a centralised database. They have great talent at their disposal.
There is a great deal of IT awareness and respect. What is required is a "big push," similar to the
kind that was provided to expansionary activities after nationalisation.

"Technological Developments in Indian Banking Sector," by Drs. Satish Tanaji Bhosale and
B.S. Sawant. In this essay, the financial industry's contribution to the growth of the Indian
economy is discussed. Therefore, banks must voluntarily use technology to expand their market
share, boost productivity and efficiency, deliver cost-effective goods and services, offer more
rapid and convenient customer service, and thereby support the general economic and social
development of the nation.

The paradigm shift in the banking industry from traditional banking to online banking was
outlined by Kautish (2008). The purpose of the paper was to discuss how the online banking
system's value-added tool was developed and how it was used to draw in new customers and
keep current ones. It aided banks in gaining more revenue from current clients. Due to its

10
availability, superior performance, ubiquity, speed, and efficiency, people chose to use online
banking. The author also covered two bank integration models, where banks offer online
banking services in addition to their standard ATM and phone banking services. Consequently, it
is a hybrid strategy in some ways, and the other was a stand-alone internet banking model, where
the banks completely relied on online channel.

According to Rajshekhara K. S. (2004), the adoption of IT in banking has experienced several

changes with the passage of time of eternity. IT is now an inseparable part of any financial
organisation. The use of information technology in the banking industry resulted in the
development of various banking concepts such as [Link] banking, online banking,
telephone banking, automated teller machines, universal banking, and business banking are some
of the services available. Banking activities are heavily influenced by information technology. It
provides customers with quick service at a cheap transaction cost. The true success of IT in the
banking industry is dependent on customer satisfaction. As a result, banks should organise and
implement a customer awareness programme in their service region. In the framework of E-
banking, security is [Link] advancement of technology for identifying customers using
various communication devices is essential for effective business and the reduction of banking
fraud.

Improved Efficiency and Productivity: Many studies have shown that IT has a favourable impact
on bank efficiency and productivity. Banks' operations have been streamlined, expenses have
been cut, and overall performance has increased as a result of the automation of routine tasks,
digitization of processes, and use of sophisticated analytics and data-driven decision making
(Amin, 2016; Katsioloudes, 2017).

Improved Customer Experience: Information technology has altered the way banks connect with
their clients, making services more convenient and available through online and mobile banking,
electronic payments, and other digital channels. As a result, customer experience has improved,
as has customer happiness and loyalty (Oliveira et al., 2017; Kuo et al., 2018).

Increased Competition and Disruption: As a result of the deployment of IT in banking, there is

now more competition from non-traditional businesses like fintech companies and online banks.
11
These challengers have used IT to provide cutting-edge, customer-focused solutions, putting
pressure on established banks to change and remain competitive (Hassan et al., 2018;
Capgemini, 2019).

Security and threats: As banks rely more on IT, they also have to deal with new security threats,
data breaches, and privacy concerns. Strong IT security procedures and risk management
methods are required to safeguard sensitive consumer data and guard against potential cyber
threats, according to studies (Gupta et al., 2016; Al-Mamary et al., 2017).

Regulation and Legal Considerations: Increasing regulatory vigilance and compliance

requirements are also a result of the implementation of IT in banking. According to studies
(Basel Committee on Banking Supervision, 2017; European Banking Authority, 2018),
banks must navigate complicated regulatory frameworks and maintain compliance with data
protection, cybersecurity, and other legal obligations related to IT deployment.

The Reserve Bank of India (RBI) has established the Department of Information Technology
(DIT), which is responsible for:

• Computerization in RBI (Regional Offices and Central Office Departments);

• Design and creation of projects for use by banks and financial institutions; and

• Monitoring the progress of technology in banks.

In the paper 'Machine Intelligence vs. Human Judgment in New Venture Finance,' Christian
Catalini, Chris Foster, and Ramana Nanda (2018) found that machine learning models trained
to imitate human evaluators outperformed models trained solely to maximise financial success.
They discovered that (1) models trained to mimic human picks performed well out-of-sample,
implying that humans had a systematic pattern of early-stage investing that could be identified
and replicated; and (2) models trained to maximise success outperformed mimic human models
when selecting from a common out-of-sample applicant pool, implying that heuristics used by
these evaluators were systematically overlooking certain high-potential applications that were
previously overlooked.

12
Jewandah S (2018, July) investigates the areas in which Machine Intelligence is being launched
in banks and applications of AI in major commercial banks in India in her research paper titled
"How Artificial Intelligence is changing the banking sector - A case study of top four
Commercial Indian Banks." Traditional banking is progressing, and banks are gradually adopting
innovative technologies such as AI, blockchain, and cloud computing; however, banks have yet
to reach the stage of AI revolution, and human touch remains essential. In India, the banking
industry is investigating ways in which AI can be incorporated to improve bank operations and
customer service in the near future.

According to Ryoji Kashiwagi's (2005) 'Utilization of Artificial Intelligence in Finance,'

manmade artificial intelligence is currently entering its third boom stage, thanks to a
technological development known as profound learning. Artificial intelligence is being used in a
variety of sectors, including the financial sector. Money related foundations should use man-
made awareness more effectively through methods like open innovation.

Numerous studies have examined the crucial success factors that influence the creation of new
services and have concentrated on the financial sector's transformation (Angelopoulos et al.,
2008; Kitsios & Kamariotou, 2019; 2017; 2016; Kitsios et al., 2008; Mitroulis & Kitsios, 2016).
Branchless digital banking refers to the use of digital tools in financial transactions without the
use of bank branches or bank personnel. In banking, digital transformation appears to usher in a
new age. Branchless banking's adoption has an impact on the industry's employees as well.
Despite sizable expenditures in IT infrastructure, there is no conclusive proof that the
productivity of banking staff has increased (Ho & Mallick, 2010).

Overall, the literature study indicates that IT has significantly impacted the banking industry,
enhancing customer experience, promoting digital transformation, and improving efficiency. The
need for banks to handle cybersecurity, regulatory, and legal issues while utilising IT for
competitive advantage is emphasised. However, it also draws attention to the difficulties and
dangers connected with the adoption of IT in banking

CHAPTER 3: RESEARCH METHODOLOGY

13
Objective of this study is to: -

1. Take a broad view of the banking sector.

2. Examine the significance of information technology in the Indian banking industry.
3. To examine the IT implementation in the Indian banking business.

Hypothesis:

H01: There is no significant impact of Information Technology (IT) on banking sector

H02: There is a significant impact of Information Technology (IT) on banking sector

Problem Statement:

The following can be the statement of the problem in study on the impact of information
technology on the banking sector:

Due to the recent rapid adoption of information technology (IT), the banking industry has
undergone tremendous change. While there are many advantages to using IT, like more
competition, improved customer experiences, and operational efficiency, there are also worries
about the possible hazards and difficulties connected with its adoption, such as cybersecurity
threats and regulatory compliance. Therefore, understanding the impact of information
technology on the banking industry and identifying the difficulties and opportunities that result
from its adoption are the problems that this research seeks to address. The study will pay
particular attention to how IT has changed the banking sector.

Need for the Study:

Rapid pace of technological change: New digital innovations are appearing quickly in the
banking sector, which is seeing rapid changes in technology. To comprehend how these
technologies are affecting the market and how banks might use them to their advantage, the

14
study is essential. Fintech companies and digital banks are among the non-traditional entities that
have become more competitive as a result of the deployment of IT in banking. The study is
required to comprehend how banks might maintain competitiveness in this shifting environment.
Regulation and legal issues where banks rely more on IT, they must also meet new regulations
and legal standards, such as those relating to cyber security and data protection. To determine the
compliance needs and difficulties with IT adoption, a research is required.

Need for better customer experience: As digital technologies have developed, customers'
demands for simple and convenient banking services have grown. The study is required to
comprehend how banks may use IT to enhance customer happiness and loyalty while also
improving the customer experience. While adopting IT in banking offers many advantages, there
are also possible hazards and difficulties, such as cyber security dangers and data breaches. The
investigation is required to pinpoint these dangers and difficulties and create mitigation plans.
Thus the study is required to provide a thorough understanding of how IT has affected the
banking industry and to identify the opportunities and challenges that result from its
implementation.

Research Design:

A quantitative research design has been used. An analysis of the attitudes, beliefs, and behaviors
of the sample population are done using a cross-sectional survey methodology, which enables
data collection at a single moment in time.

To obtain primary data from a large number of respondents, an internet questionnaire was used,
which was a quick and affordable method to cover various parts of the research aims, the
questionnaire was split into two portions to gauge the degree of agreement or disagreement with
statements pertaining to the research objectives, a 5-point Likert scale was employed. This scale
makes it possible to readily quantify the data, when measuring and analysing numerical data to
find patterns and relationships as part of the study objectives.

The sample comprised of 111 respondents from the city ranging in age group from 18 to 40. This
age group was chosen to depict the attitudes and behaviours of adults.

15
To test the research hypothesis and derive meaningful inferences from the results, the obtained
data has been analysed using relevant statistical methods such as descriptive statistics, pie chart,
graphs and ANOVAs analysis.

Significance of the Study:

The study's relevance stems from how the banking industry has been profoundly altered by
technological breakthroughs, which have altered how banking services are provided, received,
and used. Researchers can better grasp the benefits and problems that technology presents to the
banking business by researching how information technology has affected this industry.
Policymakers, financial experts, and technology suppliers can utilise this information to inform
their choices about the creation and adoption of new technologies. The digitization of banking
services, the use of AI and machine learning to improve operational efficiency and customer
experience, the emergence of fintech startups, and their effects on conventional banking
institutions are some potential impact areas that could be examined in this study.

Limitation of the study:

As with any research study, there are several limitations for this study that are addressed below:

Response bias: When respondents give responses they believe the researcher wants to hear rather
than their actual beliefs or experiences, the accuracy of data gathered through surveys may be
compromised.

Limited scope: The questionnaire's questions might not fully represent the breadth of
experiences and viewpoints linked to the effect of technology on the banking industry.

Limited depth: It's possible that the questionnaire answers don't go into enough depth or detail to
comprehend how technology is affecting the banking [Link] sample size: The survey's
sample size can be small, which might have an impact on how representative the results are.

CHAPTER 4: DATA ANALYSIS AND INTERPRETATION

16
According to the research's findings, most students utilize online banking services on a regular
basis, and a sizeable percentage of these students heavily rely on digital banking platforms to
carry out their financial tasks. This emphasizes the significance of banks providing accessible
and user-friendly digital banking solutions to satisfy the needs of its student clients.

The statistical technique known as Anova, or analysis of variance, is used to compare the
differences between two or more groups of data. To assess whether there is a statistically
significant difference in the means of the groups, it compares the variability within groups to the
variability between groups. Anova is frequently used in experimental research to examine the
impact of various independent variables on a dependent variable, If there is a substantial
difference in test scores between students who received various teaching approaches, for instance,
an Anova could be employed to find out. Because it can handle numerous groups and variables
and can provide light on the correlations between variables, anova is a widely used statistical
approach. The study also discovered that checking account balances, transferring money between
accounts, and paying bills are the three most frequent daily online banking activity carried out by
students. These findings highlight the significance of these fundamental online banking features
and the requirement for banks to guarantee their dependability and effectiveness.

17
 Fig1: Students usage of banking services

We may infer from the data that the majority of students (58%) use financial services on a daily
basis and an additional 24% use them on a weekly basis. These two figures added together result
in a total of 81% of students using banking services at least once each week.

This shows that students frequently utilize banking services and that they are an integral part of
their everyday lives. The high rate of everyday usage indicates that banking services are crucial
for handling money, conducting transactions, and getting access to different financial products
and services. The other 19% of college students who do not routinely utilize banking services
could be doing so because they have other sources of income or because they do not require
them

18
 Fig 1.1: Perception of Students with daily usage on improvement of banking services

Based on the data, we can conclude that a sizable proportion of students (72%) have noticed
advances in the banking sector as a result of the implementation of Information Technology (IT).
This shows that information technology has played an important role in improving the quality
and efficiency of banking services. The remaining 16% of students may have seen some
changes, but not to the same level as the majority, while the last 12% have seen no changes in
the banking sector as a result of IT adoption.

This could imply that more efforts are needed to raise public awareness about the benefits of IT
in banking services, as well as address the worries or challenges that the remaining 12% of
students may have regarding IT adoption.

19
 Fig 1.2: Perception on increase of accessibility of banking services to larger Audience

According to the data, it appears that a sizable majority of students (70%) strongly concur that
IT has increased the accessibility of financial services to a wider audience. This indicates that
technology has significantly aided in boosting access to banking services, making them more
easy and accessible to clients who might otherwise have had trouble utilizing traditional banking
services. The additional 19% who concur with this assertion also backs up the idea that
technology has significantly improved banking service accessibility.

The 9% that are neutral might not have a strong opinion or might need additional details before
forming one. The majority of the students agree that IT has improved banking services' usability
and accessibility, making them more readily available.

Given that it has boosted client interaction and opened up new markets, this is probably had a
favorable impact on the banking sector, resulting in higher growth and profitability for banks
and financial institutions.

20
Fig 1.3: Perception on Increase in Employment opportunities for IT professionals in
banking sector

According to the data, it appears that the majority of students (69%) concur that the employment
chances for IT specialists in the banking industry have increased. The development,
implementation, and maintenance of new technology platforms and systems for banks and
financial institutions are implied to have created new employment prospects for IT specialists as
a result of the adoption of IT. The additional 16% of respondents who strongly concur with this
assertion also provide credence to the idea that there has been a major increase in job prospects
for IT specialists in the banking industry. The 12% of respondents who are neutral might lack
the knowledge necessary to make an informed decision or might need additional information to
assess the scope of career opportunities in the industry. The 2% of those who disagree might
have a different viewpoint or might not have observed the growth in job prospects for IT
specialists in the banking industry.

Overall, the majority of students concur that there are more job openings for IT specialists in the
banking industry, proving that the use of IT has improved job prospects in this area.

21
 Fig 1.4: Implementation of new technologies such as Block chain, Chabot's, Automation
improved the banking operational efficiency

According to the data, a majority of students (79%) think that the adoption of new technologies
like blockchain, chatbots, and automation has increased the operational effectiveness of the
banking sector. This shows that the use of these technologies has increased operational efficiency
for banks and financial institutions by streamlining operations and improving client experiences.
The 19% who said "maybe" might not have enough information to make a conclusive judgment
on this issue or might be wary of how these technologies would affect the banking sector. The
widespread acceptance of new technology has positively impacted the banking sector, as seen by
the large majority of students who think that doing so has increased operational effectiveness.
For banks and financial institutions, this probably resulted in more productive operations, better
customer experiences, and more profitability.

22
Fig 1.5: Perception on Improvement of customer relationship services due to IT

Customers can now conduct a variety of financial operations using these digital channels,
including checking account balances, moving money, paying bills, and even applying for loans,
from any location at any time. In order to personalize their offerings and boost client engagement,
banks also use CRM systems and data analytics. So 81% of students think that the improvement
of customer relationship services due to IT has resulted in greater changes. Banks may now offer
brand-new services and products like crypto currency trading, robot-advisors, and digital wallets,
which have broadened the range of banking and financial services. In general, the adoption of
information technology has transformed the banking sector, and banks that have embraced it
have been able to improve client experiences and acquire a competitive edge in the market.

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 ANOVAa

Model Sum of Squares df Mean Square F Sig.

1 Regression 16.922 7 2.417 2.379 .027b

Residual 103.633 102 1.016

Total 120.555 109
a. Dependent Variable: Students
b. Predictors: (Constant), Implementation of technology changed the way banks interact with
their customers?, Implementation of new technologies such as Block chain, Chabot's,
Automation improved the banking operational efficiency?, Introduction of digital banking
has increased the accessibility of banking services to people?, Do you think IT has made
banking services more efficient and convenient, Have you noticed the changes on
improvement in banking sector due to adoption of IT?, How often do you use online banking
services ?, Changes in the speed of accuracy of banking services, after the introduction of
technology

This is the table that shows the output of the ANOVA analysis and whether there is a statistically
significant difference between our group means. We can see that the significance value is
0.027(i.e., p=.027), which is below 0.05 and therefore, there is a statistically significant
difference in the mean length of time to complete the spreadsheet problem between the different
courses taken.

The dependent variable "Students" and seven predictor variables relating to the effect of
information technology on the banking sector were used in an Anova analysis, the results of
which are presented in the table below. For each of the three sources of variance (regression,
residual, and total), the table displays the sum of squares, degrees of freedom (df), mean
square, F-value, and significance level.

24
The "Regression" row shows the variation that the predictor variables can explain, while the
"Residual" row shows the variance that cannot be predicted. The dependent variable's overall
variance is shown in the "Total" row.

The F-value of 2.379 shows that the effects of the predictor factors on the dependent variable
differ significantly. The results are statistically significant at a 95% confidence level, as indicated
by the significance level of.027.

The seven predictor variables used in this Anova analysis are:

1. Implementation of technology changed the way banks interact with their customers.

2. Implementation of new technologies such as Block chain, Chabot's, Automation improved the
banking operational efficiency.

3. Introduction of digital banking has increased the accessibility of banking services to people.

4. Do you think IT has made banking services more efficient and convenient?

5. Have you noticed the changes on improvement in banking sector due to adoption of IT.?

6. How often do you use online banking services?

7. Changes in the speed of accuracy of banking services, after the introduction of technology.

Overall, the Anova analysis suggests that these predictor variables have a significant impact on
the students of the respondents, indicating that the implementation of information technology has
influenced the banking sector in various ways.

25
CHAPTER 5: CONCLUSION

In conclusion, the banking industry has been significantly impacted by information technology.
The adoption of new technologies like blockchain, chatbots, automation, and digital banking has
expanded the accessibility of financial services for customers while also improving the
operational efficiency of banks. Since technology has been introduced, there have also been
advancements in the precision and speed of financial services. According to an Anova analysis
the effects of IT on the banking industry; respondent students are significantly impacted by the
predictor factors related to the use of technology. This suggests that the banking industry has
been impacted by the use of information technology in many different ways. The results of an
analysis of variance (ANOVA) for a linear regression model with one dependent variable
(unspecified) and seven predictor variables pertaining to the effect of information technology on
the banking industry are shown in the accompanying ANOVA table.

The ANOVA table demonstrates that the regression model's impact on the dependent variable is
statistically significant (p =.027). The predictor variables are jointly significant in predicting the
dependent variable, according to the F-value of 2.379, which also shows that there are 7 degrees
of freedom for the predictor variables and 102 degrees of freedom for the residuals. The amount
of variability explained by the model is shown by the sum of squares for the regression (16.922),
residual (103.633), and total (120.555).

The ANOVA table offers proof that the predictor variables connected to the effect of
information technology on the banking industry are important in anticipating the dependent
variable. To comprehend the degree and direction of the correlations between the dependent
variable and the predictor factors, additional analysis is required.

26
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