ISBN: 978-93-94174-93-1

Customers' Preference and Perception towards Innovative Banking Services - A Study on Retail Banking

Assistant Professor of Commerce, School of Commerce, Vel Tech Rangarajan Dr Sagunthala Research & Development, Institute of Science and Technology, Chennai, India

The Indian banking sector has witnessed a significant transformation through technological integration, leading to the widespread adoption of innovative financial services. This study explores the types of such services preferred by customers, the factors influencing their choice of service providers, and their perceptions regarding service quality, satisfaction, and challenges faced. The focus is on widely used services including ATM/debit cards, mobile banking, telephone banking, and internet banking. Historical reforms such as bank nationalization (1969 and 1980) and economic liberalization in the 1990s laid the groundwork for financial inclusion and technological advancement in banking. Data was collected through a structured questionnaire targeting individual customers actively using at least one innovative financial service. Corporate entities were excluded to maintain focus on individual consumer preferences. Key service quality dimensions evaluated were tangibility, reliability, responsiveness, security, communication, convenience, and friendliness—where convenience ranked highest and friendliness lowest. The findings underscore the positive impact of financial innovations on efficiency, customer engagement, and competitiveness. Respondents emphasized the need for better ICT infrastructure, improved customer support, and standardized regulatory tools to measure innovation outcomes. The study concludes that continuous enhancement of service quality is vital for sustaining customer satisfaction in the digital era and offers practical insights for banks and policymakers.

*Corresponding author; e-mail: drjayakumars@veltech.edu.in

Cite this Chapter: Jayakumar, S., and Thirumalai, L. C. 2025. Customers' Preference and Perception Towards Innovative Banking Services - A Study on Retail Banking. In: Dr. Lubna Suraiya Dr. P. Kanchana (Eds.). Commerce Reimagined: The Future of Trade and Transactions. Excellent Publishers, India. pp. 1-16. doi: https://doi.org/10.20546/978-93-94174-93-1_1