Service Quality, Efficiency and Effectiveness in the Banking Sector: Impact of Technology on Service Delivery

The use of technology has changed service delivery in recent years. With over 40% of the world population having access to the internet, the tertiary sector has employed technology to improve the quality and efficiency of their services.

Banks have embraced technology by offering self-service automated platforms. Most banks' services around the globe are so similar that, the only way banks can gain a competitive advantage over each other is through adopting the new technology.

Today, most of the baking services have been automated leaving such that there are few or no interactions with bank employees. The use of technology in banks can be seen in services such as Automated Teller Machines, mobile banking, and internet banking among others.

1.     Technology and Quality Services

The quality of service in a bank is dependent on the level of technology they have adopted. The success of the banks depends on the quality of service they deliver. Quality services offered by the bank helps to retain the old customers as well as to attract new customers and satisfying the needs of customers. Customers evaluate banks' performance based on how well they meet their expectations rather than the public's expectations.

Automation lowers the cost of delivering the service for both the bank and the customers. It also increases the speed of offering service at the banks.

Technology also helps the bank to collect information about the customers. Through customers' feedback, the bank can establish the customer's need, what to improve, what customers don't like, and other marketing information.

2.     Self Service Technology

Before the advancement of technology, everything in the banking sector was manual whereby a customer was to be assisted by the bank employees. Self-service portals and automated solution centers have made it easy for customers to access banking services without visiting the bank.

Efficiency and effectiveness in banks are achieved through the use of computers and technology in daily operations. Many banks have adopted The Technology Based Self Service Banking (TBSSB) as a way of improving efficiency in service delivery. Saving time, access to services anytime, no queues, security, less cost, and convenience are some of the benefits associated with TBSSB.

3.     Customer Satisfaction

With the increased competition in the banking sector, satisfying customer's need is important in creating customer loyalty.

Quality service means satisfying customers' needs all the time. Assessing service quality can be done through the evaluation of the service delivered through electronic channels.

Corporate image affects the way customers perceive the value of the services. The general perception of bank customers is that the quality of service is equivalent to technology in place.

Bottom Line

Technology has led to efficiency, effectiveness, and quality of service delivery to customers. Quality service translates into customer satisfaction, customer loyalty, and attracts new customers. Thus, adopting the right technology in the banking sector increases profitability. The banks should therefore be at the forefront to acquire new technology to be able to get a competitive advantage over the other banks.