EXPLORING THE IMPACT OF DIGITALIZATION ON BANK PERFORMANCE AND CUSTOMER SATISFACTION

EXPLORING THE IMPACT OF DIGITALIZATION ON BANKPERFORMANCE AND CUSTOMER SATISFACTION

Vishal Tomar

Abstract

In the dynamic landscape of the banking industry, propelled by rapid digitalization, understanding the intricacies of customer satisfaction has become paramount. This study delves into the evolving dimensions of customer satisfaction within the context of digital transformation and its implications for bank performance. The research underscores the necessity for continuous exploration of emerging trends, technological advancements, and evolving societal values to discern their influence on customer satisfaction. By examining these factors, valuable insights emerge regarding the evolving needs, preferences, and expectations of bank customers.

Furthermore, this study investigates the relationship between customer satisfaction and bank performance. It reveals a direct correlation between the two, wherein heightened levels of customer satisfaction contribute significantly to enhanced bank performance. One of the primary findings of this research is the positive reception of digitalization by customers in the banking sector. The introduction of digital banking has substantially reduced the time required to perform various tasks, thereby enhancing efficiency. Moreover, the availability of AI-guided customer service further augments customer satisfaction by providing prompt assistance and resolution of issues. The culmination of these findings suggests that customer satisfaction is not only a crucial determinant of bank performance but is also directly proportional to it. The provision of efficient digital banking services, coupled with responsive customer support, fosters a sense of satisfaction and, to some extent, delight among customers. Consequently, this leads to an overall improvement in bank performance.