International Journal of Civil Engineering and Technology (IJCIET) Volume 10, Issue 03, March 2019, pp. 859-866, Article ID: IJCIET_10_03_083 Available online at http://www.iaeme.com/ijciet/issues.asp?JType=IJCIET&VType=10&IType=03 ISSN Print: 0976-6308 and ISSN Online: 0976-6316 © IAEME Publication Scopus Indexed IMPACT OF INFORMATION TECHNOLOGY ON ALTERNATIVE CHANNEL SERVICES AND ITS SERVICE QUALITY Abhay Kumar Mohanty Research Scholar, School of Management, KIIT Deemed University, Bhubaneswar, Odisha, India Dr. B.C.M. Patnaik Associate Professor, School of Management, KIIT Deemed University, Bhubaneswar, Odisha, India Dr. Ipseeta Satpathy Professor, D. Litt, School of Management, KIIT Deemed University, Bhubaneswar, Odisha, India Geetanjali Patra Faculty Associate, School of Law, KIIT Deemed University, Bhubaneswar, Odisha, India ABSTRACT In the present scenario, the information technology has vital role to strengthen the banking network. With the use of information and communication technology, the banking sector created revolution in providing quality services to its customer. The information technology paved the way to the banking sector to provide the alternative channel services to its customer rather than the traditional services. The traditional banking service means branch banking where customer has to visit branch for performing the banking services. But, due to the development in information technology infrastructure, the banking sector able to provide the alternative services to its customer in the form of E-banking, Mobile banking, Debit and Credit cards and ATM. Alternative channel services are not only providing the quality services but also helps the banking sector in reduction of cost and time. In this study, the authors have tried to find out the impact of information technology on the performance of the alternative channel services and its service quality. For this purpose, the primary data is being considered which is collected from the respondents with the help of questionnaire. The customer perceptions regarding the alternative channel services and its quality are being tested with the help of service quality model. The study suggests, the different http://www.iaeme.com/IJCIET/index.asp 859 editor@iaeme.com Abhay Kumar Mohanty, Dr. B.C.M. Patnaik, Dr. Ipseeta Satpathy and Geetanjali Patra aspects which encourage the customers to adopt the internet banking services are cost, security and convenience. Key Words: Alternative Channel Services, E-banking, Service Quality and Convenience. Cite this Article: Abhay Kumar Mohanty, Dr. B.C.M. Patnaik, Dr. Ipseeta Satpathy and Geetanjali Patra, Impact of Information Technology on Alternative Channel Services and its Service Quality, International Journal of Civil Engineering and Technology, 10(03), 2019, pp. 859–866 http://www.iaeme.com/IJCIET/issues.asp?JType=IJCIET&VType=10&IType=03 1. INTRODUCTION The term Alternative Channel Services (ACS) refer to the services provided by banks rather than their branch operation. This is also known as E-banking where they bank provides the opportunities to their customer for making the banking transactions without visiting the bank branch. The alternative services are generally Internet Banking, Tele-banking, Mobile Baking, Automated Teller Machine (ATM), Debit Card and Credit Card etc. In alternative channel service platform, the customer of banks can perform their banking transaction at anywhere and at any time. In the present scenario, information technology plays an important role to perform the business transactions. In this competitive world, the banks have adopted information technology to provide better services to their customer to beat their competitors. The service quality will be achieved by any organization by satisfying their customer needs and perceptions. If, the customer will not satisfy with the service quality delivery of any organization, then they can definitely choose the available alternatives to satisfy their needs. Therefore, the customer perceived behavior and their requirements have to understand before designing any products and services. In this stiff competitive world, every organization has to evaluate the customer attitude and opinions to create the long term demand for their products or services and profitability. Currently, the developing countries like India, the customers demand is increasing day by day as per their literacy rate. So, the banking industry has to design their services in such manner to fulfill the needs of the customer as compare to the financial literacy. In this paper, the authors have taken two factors to analyze the impact of Information Technology i.e. Alternative Channel Services or Internet Banking and service quality. The importance of service quality is to identify the conditions of loyalty and focusing on prospective consumers. E-banking services play an important role for overall bank offerings which directly impacts on the service quality of banks. Due to the cost effectiveness, E-banking is able to provide various facilities to its customer to perform transactions such as information retrieval, generation of statement, payment of bills, money transfer and interest certificates etc. The internet banking is also able to reduce the banking transaction cost. But, it has created some drawbacks such as reduced the face to face interactions among the customer and security risk. Despite of its easiness in getting the banking information and widely use of information technology, a major proportion of consumer have not yet opted for this service in India because of their inability to use the internet, fear and literacy rate. The primary objective of this paper to test various service quality dimensions to find out the customer perceived behavior, satisfaction and needs. It is also to enquire the dimensions which have more importance for customer satisfaction. http://www.iaeme.com/IJCIET/index.asp 860 editor@iaeme.com Impact of Information Technology on Alternative Channel Services and its Service Quality 2. LITERATURE REVIEW: The transaction cost of internet and other virtual banking had lower than the traditional banking systems. So, the banks should encourage its customers to use internet for their banking transactions. The author also emphasized that for adoption of internet banking, it was necessary that the banks should take initiatives to create awareness among its consumers and make them understanding regarding the availability of such a product and explain how it adds value to the other products. The security concerns and lack of awareness were the reasons of non acceptance internet banking by Australian customers. But, the internet was considered as a main source of overall customers’ service and distribution strategy. These procedures could help in rapid migration of customers to internet banking (Sathye, 1999). Technology helped in centralized storage of data and decentralized the data processing and helped in cost reduction and decreased Non-Performing Assets (NPAs) by keeping the track record of loans and advances. Again, the emergence of services like electronic data interchange (EDI), usage of smart cards, RTGS, e-commerce etc. helped the banks to increase the profitability and productivity. Banks should perform the security audit to reduce the crimes as a result the bank would enable to improve the customer service quality which would enhance the efficiency, productivity and profitability (Kamesam, 2001). The important attributes of online service quality which create impact for the acceptance of this service by the users are features, performance, reliability, aesthetics, serviceability, security, storage capacity, system integrity, trust, responsiveness, service differentiation, customization, policies, reputation, assurance, and empathy (Madu and Madhu, 2002). Though new technologies could not replace the branch banking network but these can enhance the old banking methods to deliver quality services. The structural change had happened in Finnish banking sector from the period 1993 to 2002 which showed that 42 per cent of households have internet connection with banks and 90 per cent have mobile banking services. The main objectives of introduction of technology were to provide quality service to improve customer satisfaction, reduction in costs and development of new strategy to gather customer information for analysis (Aki, 2002). Currently, developed E-Banking service had given tremendous opportunities for the banks for the banks to systemize their financial products & services, profits, service delivery mechanism and marketing. E-Banking is an innovation to preserve both business model and technology. E-Banking was much superior to the traditional banking as it provides unique features like value proportion, market scope, cost structure, profit potential and value network. To exploit the market condition in terms of business and use of technology, the banks should focus to enhance the customer attrition inside and outside India to generate more revenue so as to increase the Indian Economy in future (Suresh, 2008). The quality of a product or service is judged in terms of perceived customer satisfaction and delight of the customer. The future of service industry depends on their quick response towards the customer expectations and needs. The quality of service would be competitive advantages for the service industry to recruit and retain the more demanding customer. The banking sector would face a major challenge due to the increased demand of service quality of their customer as they were competing with undifferentiated products. As per the result, they suggested that the manager would provide with (i) customer based improvement strategies, (ii) action plan to deliver the required services for the customers. The managerial ability of implication for competitive positioning and effective resource allocation would improve the customer quality perception and create a win-win situation (Gonzalez, et.al, 2008). The responsiveness and reliability of bank website have significance to add value and satisfaction to customers (Khurana, 2009). The extent of internet banking services offered to the customer http://www.iaeme.com/IJCIET/index.asp 861 editor@iaeme.com Abhay Kumar Mohanty, Dr. B.C.M. Patnaik, Dr. Ipseeta Satpathy and Geetanjali Patra by internet banks and the factors affecting the internet banking services. The main factors affecting the internet banking services are financing pattern, size of the bank, banking experience to offer the internet banking services and ownership (Malhotra and Singh, 2010). 3. OBJECTIVE OF THE STUDY 1) To evaluate the importance of Information Technology on Alternative Channel Services 2) To study the impact of Alternative Channel Services and their service quality. 4. METHODOLOGY The present study is based on primary data. To frame the conceptual understanding, secondary data is taken into consideration. To conduct this study, the data is collected from the respondent by designing questionnaire. The data is collected from the different bank customer of Bhubaneswar, Odisha. The main objective of the questionnaire to gathering information for better understanding of customers perceived service quality. Some of the service quality dimensions which are analyzed are particularly related to e-banking services. The data is collected from the computer literate customer those are particularly knows about the alternative channel services provided by banks or frequently using the e-banking services. The random sampling method is considered for gathering the information. The data is collected from 105 respondent and their responses is taken into consideration for analytical purpose. Likert 5 point scale is used to collect the relevant information. The respondent’s composition is as follows: Table 1: Details of demographic profile of the respondents: Demographic Variables Characteristics No of Respondent Percentage Gender Male 67 63.81 Female 38 36.19 Undergraduate 16 15.24 Graduate 57 54.29 Post Graduate 32 30.48 18-30 49 46.67 31-45 34 32.38 Above 45 22 20.95 Student 46 43.81 Salaried 39 37.14 Businessmen 20 19.05 Education Details Age Group Occupation The study is conducted by taking the views of the respondents visited the various banks branches to perform their banking transaction. The data is collected from both the male and female respondents. From the demographic data of the respondents, it is clear that all the respondents are qualified enough to understand the services provided by the banks though http://www.iaeme.com/IJCIET/index.asp 862 editor@iaeme.com Impact of Information Technology on Alternative Channel Services and its Service Quality Alternative Channel Services (ACS). The study included students, salaried customers and businessmen at the time of collection of data for getting better result. Most of the respondents are young (almost 80%) as they belong to the age group of 18 years to 45 years. Based on occupation, the student, salaried and businessmen respondents percentage are 44%, 37& and 19% respectively. To evaluate the service quality of the Alternative Channel Services (ACS), we have applied the SERVQUAL Model. The responses from the banking customer is collected in five categories such as Reliability, Responsiveness, Communication, Accessibility and Security to evaluate the gap between the customer expectations and experiences. The details responses received from the respondents in different categories are evaluated as under. Table 2: Reliability Responses Factors Bank delivers the quality services as per their committed time duration with the help of Information Technology Bank able to keep the transaction details correctly in ACS Bank helps in accurate billing Banks try to provide innovative solutions to handle customer problems trough ACS Alternative channel service (ACS) transactions are transparency and accountable Average SA A N D SD 13.33% 64.76% 17.14% 2.86% 1.90% 22.86% 58.10% 12.38% 2.86% 3.81% 25.71% 60.00% 11.43% 1.90% 0.95% 16.19% 48.57% 20.95% 5.71% 8.57% 19.05% 56.19% 13.33% 6.67% 4.76% 19.43% 57.52% 15.05% 4.00% 4.00% (SA- Strongly Agree, A – Agree, N – Neutral, D – Disagree, SD – Strongly Disagree) Table 3: Responsiveness Responses Factors Banking service can be performed easily at any time during the week through ACS Downloading of transaction slip at any time through ACS SA A N D SD 12.38% 66.67% 18.10% 1.90% 0.95% 19.05% 61.90% 13.33% 3.83% 1.88% ACS transactions are more user friendly 16.19% 56.19% 17.14% 5.71% 4.76% ACS provides prompt services to its customer ACS enables customer to access the financial records through its website 14.29% 53.33% 20.95% 4.76% 6.67% 17.14% 54.29% 19.05% 6.67% 2.86% Average 15.81% 58.48% 17.71% 4.57% 3.43% (SA- Strongly Agree, A – Agree, N – Neutral, D – Disagree, SD – Strongly Disagree) Table 4: Communication Responses Factors ACS offers attention to individual customers http://www.iaeme.com/IJCIET/index.asp SA 27.62% 863 A 62.86% N 4.76% D 4.76% SD 0% editor@iaeme.com Abhay Kumar Mohanty, Dr. B.C.M. Patnaik, Dr. Ipseeta Satpathy and Geetanjali Patra ACS services are easily understandable to customer 34.29% 63.81% 0.95% 0.95% 0% ACS fulfils specific customer needs 18.10% 66.67% 11.43% 2.86% 0.95% 25.71% 60.95% 8.57% 2.86% 1.90% 30.48% 68.57% 0.95% 0% 0% 27.24% 64.57% 5.33% 2.29% 0.57% ACS services are easily accessed by its customer through banks' website ACS service information are easily available Average (SA- Strongly Agree, A – Agree, N – Neutral, D – Disagree, SD – Strongly Disagree) Table 5: Accessibility Responses Factors ACS can be accessed 24*7 by the banking customer The technology used by ACS products are customer friendly Customer can access their personal accounts easily through ATM and Internet Banking Customer can access financial records such as banking transaction details easily through ACS Average SA A N D SD 15.24% 45.71% 20.95% 14.29% 3.81% 23.81% 66.67% 6.67% 2.86% 0% 33.33% 60.00% 4.76% 1.90% 0% 24.76% 52.38% 17.14% 5.71% 0% 24.29% 56.19% 12.38% 6.19% 0.95% (SA- Strongly Agree, A – Agree, N – Neutral, D – Disagree, SD – Strongly Disagree) Table 6: Security Responses Factors ACS transactions are safe in respect to Branch Banking ACS provides trust and confidence among its customers and employees The banking transactions are confidential and trust worthy though ACS The bank has taken adequate measures for fraud and misuse of ACS Customer feels safety and security to perform the transaction through ACS Average SA A N D SD 19.05% 67.62% 9.52% 3.81% 0% 20.95% 68.57% 7.62% 2.86% 0% 24.76% 62.86% 9.52% 2.86% 0% 26.67% 57.14% 11.43% 47.6% 0% 21.90% 61.90% 13.33% 2.86% 0% 22.67% 63.62% 10.29% 3.43% 0% (SA- Strongly Agree, A – Agree, N – Neutral, D – Disagree, SD – Strongly Disagree) The responses which are collected in respect to the service quality dimension are presented in tables 2 to 6 as per the details given above. The responses were obtained through 5 point mapping scale starting from "Strongly Agree" to "Strongly Disagree" where "Strongly Agree" is rated as point 5 with high service quality factor and "Strongly Disagree" is rated as 1 point with low service quality factor. Most of the respondents were rated the Alternative Channel Services (ACS) in the scale of Strongly Agree and Agree category. So, it indicates that the customers perceive an overall high service quality. If we consider the service dimension of http://www.iaeme.com/IJCIET/index.asp 864 editor@iaeme.com Impact of Information Technology on Alternative Channel Services and its Service Quality communication and security, above 80 percentage respondents were satisfied that the Alternative Channel Services is fulfilling their expectation as per their desire. In respect to the technology, almost all the respondents were adopted the internet banking facilities to perform their banking transactions online to save their time and money. 5. LIMITATION OF THE STUDY The study is only restricted to the banking customer of Bhubaneswar. The responses were only collected from the banking customer those have visited to the branches of different banks. We have not included the customer those have not adequate knowledge to perform the banking transactions online. 6. CONCLUSION The retails banking sector of Bhubaneswar is stable and developed in compare to the other areas and district of Odisha. The service quality of Alternative Channel Services (ACS) are depending on technological adaptability of the banking customer and technological infrastructure. Now a days, banking sector have taken initiative to popularize the Alternative Channel Services among their customer and have conducted training session in association with academic institutions to spread the knowledge of ACS usability. We have surveyed the five dimensions of service quality to judge the acceptance of ACS service among the banking customer. From our survey, it is found that about 80 percentage of the sampled customer are satisfied with the service quality being offered by the Alternative Channel Services. Though it is an encouraging yardstick for the banking institutions for providing products and services to their customer but still there are certain area of improvement especially for the customer those are more demanding over a period of time. The difference between satisfied and dissatisfied are significant in "responsiveness, reliability and accessibility" which suggest that these are impacting on users' perceived satisfaction. The respondents were mostly emphasis reliability aspects in comparison to security, communication and responsiveness. We conclude by proposing the some possible future dimensions for future research. Impact of Technology on Alternative Channel Services for Customer Satisfaction and Perceived Quality and Role of Technology to mainstream the Alternative Channel Services in the mind set of Indian Banking Customer. REFERENCE [1] [2] [3] [4] [5] [6] Sathye, M. (1999), “Adoption of Internet Banking by Australian Consumers: An Empirical Investigation”, International Journal of Bank Marketing, Vol.17,No.7, pp. 324-334. Madu, C.N. Madhu, A. A. (2002), “Dimensions of E-Quality”, International Journal of Quality and Reliability Management, Vol. 19, No. 3, pp. 246-258. Madu, C.N. Madhu, A. A. (2002), “Dimensions of E-Quality”, International Journal of Quality and Reliability Management, Vol. 19, No. 3, pp. 246-258. Madu, C.N. Madhu, A. A. 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