Embracing Fintech Applications in the Banking Sector Vis-á-Vis Service Quality

Abstract

Purpose: The banking sector is facing a challenge in the quality of services rendered to the ultimate customers for the adoption of Fintech applications in an efficient way. Due to dynamic market conditions, it is difficult for the banks to win the heart of the customers. It can be done only by providing them with updated technological applications and excellent services. Here, service quality plays a major role in this regard. It acts as an optimum strategy for the service providers to attain the interest of their customers and change their perceptions towards the banks in a positive way by providing them satisfactory services. This chapter aims to critically analyse and assess the quality of banking services rendered for Fintech applications to the customers.

Design/Methodology/Approach: The study evaluated the preference for public/private banks for Fintech applications across various demographic factors. In this research, users of public or private banks have been considered as respondents who are using Fintech applications. The service quality of both banks has been measured using a service quality scale, i.e., SERVQUAL. With the help of the Questionnaire, data were collected from 100 respondents from Punjab State on a convenience sampling basis. The Chi-square method was used to check the preference for different types of banks across demographic profiles.

Findings: ‘Responsiveness’ and ‘Tangibles’ are the most significant service quality dimensions. The present study revealed that the preference towards public/private sector banks has no dependency on occupation but found dependence on age and education level.

Research Limitations/Implications: The present study merely concentrates on the banking sector’s service quality towards Fintech applications. It could be used for the security market, insurance and other sectors in the future period. The present study provides implications for future interdisciplinary research addressing the need for Fintech applications as Fintech has become the need of every industry.

Originality/Value: This study is conducted to explore the opportunities for Fintech in the banking sector vis-á-vis service quality. The authors anticipate that the current study will contribute to existing literature and thus become the reference for academicians, researchers and industry professionals.

Citation

Verma, J. (2023), "Embracing Fintech Applications in the Banking Sector Vis-á-Vis Service Quality", Grima, S., Sood, K. and Özen, E. (Ed.) Contemporary Studies of Risks in Emerging Technology, Part B (Emerald Studies in Finance, Insurance, and Risk Management), Emerald Publishing Limited, Leeds, pp. 207-219. https://doi.org/10.1108/978-1-80455-566-820231010