Large public sector banks which already have a wide network need to look at more avenues in information technology. For capturing e-market, they can make some of their branches technology oriented and gradually do the same in the entire network of branches. Mid-size banks will have to adopt information technology to retain their business. For new private sector banks, they do not have any option, but to adopt information technology says a UTI Bank official. The main purpose of introducing new banking products such as internet banking is to improve customer service, give them multiple access points and convenience.
Profitability is the by product of good service .
IT in the financial sector, banking to be more specific, will reduce transaction processing costs, improve productivity per employee and increase volumes tremendously. These banks are spending heavily on improving things at their end, but do believe that infrastructure problems do exist. They further expect that with many players coming into the field of providing support services, things will improve. For example, Satyam Computer Services, one of the four ISPs in India, plans to open around 100 cyber cafes in the capital. HDFC, one of the leading private banks, sees more scope in phone-banking in the short to medium term.