Author(s):
Sivadarsan. S, G. B. Deenesh, Fahad Irshad, Manu K. S
Email(s):
manu.ks@christuniversity.in
DOI:
10.52711/2321-5763.2021.00064 
Address:
Sivadarsan. S1, G. B. Deenesh1, Fahad Irshad1, Dr Manu K. S2
1Student, School of Business and Management, Christ (Deemed to be) University, Benguluru.
2Assistant Professor, School of Business and Management, Christ (Deemed to be) University, Benguluru.
*Corresponding Author
Published In:
Volume - 12,
Issue - 4,
Year - 2021
ABSTRACT:
Artificial intelligence is the key to the future. The banking sector is one sector which has developed over the period of time inculcating AI in their daily activities and business model. The Indian banking system has seen an increase in physical banks in spite of huge developments in AI based applications. The study focuses on the problem where bank have been moving to technology-based application but this has created inconvenience for certain group of people. The study also focusses on creating awareness on the importance of physical banks in India. The study found few reasons why Indians prefer physical bank branches is due to the traditional trust that Indians believe in physical contact with the respective banking executive. The fear of losing money while using online banking still exists. India has a huge rural population where internet facilities , people’s literacy level , unavailability of employees with right data science skills in banking sector have not been developed which creates a roadblock for digital baking and AI to exist in rural areas. Further, the applications of AI which helps physical banks to maintain customer databases, automating various process, detect fraudulent activities, risk management, better decision making etc. Overall the study found that still Indian banks and customers have traditional relationship especially in rural India. People need a Physical Contact and trust to come into Banking Sector. So, the Need of Physical Banks is inevitable right now. India still long way to replace physical banks with AI based full automated banks
Cite this article:
Sivadarsan. S, G. B. Deenesh, Fahad Irshad, Manu K. S. Is Physical Banks Really Necessary: The Case of India. Asian Journal of Management. 2021;12(4):423-9. doi: 10.52711/2321-5763.2021.00064
Cite(Electronic):
Sivadarsan. S, G. B. Deenesh, Fahad Irshad, Manu K. S. Is Physical Banks Really Necessary: The Case of India. Asian Journal of Management. 2021;12(4):423-9. doi: 10.52711/2321-5763.2021.00064 Available on: https://ajmjournal.com/AbstractView.aspx?PID=2021-12-4-12
REFERENCES:
1. Advantages and Disadvantages of Online Banking. (2019, July 17). GO Banking Rates. https://www.gobankingrates.com/banking/banks/disadvantages-advantages-of-online-banking/
2. Banking - December 15, 2020. (n.d.). Retrieved from https://www.equitymaster.com/research-it/sector-info/bank/Banking-Sector-Analysis-Report.asp
3. Bfsi, E. T. (2020, November 23). HDFC Bank suffers downtime on payments stack; cites outage at data centre. ETBFSI.Com. https://bfsi.economictimes.indiatimes.com/news/banking/hdfc-bank-suffers-downtime-on-payments-stack-cites-outage-at-data-centre/79362449
4. Burgess, R., and Pande, R. (2005). Do Rural Banks Matter? Evidence from the Indian Social Banking Experiment. The American Economic Review, 95(3), 780-795. Retrieved March 25, 2021, from http://www.jstor.org/stable/4132740
5. ComputerWeekly.Com. https://www.computerweekly.com/news/2240237505/Deal-between-RBS-and-CA-over-IT-failure-will-remain secret#:%7E:text=The%20RBS%20IT%20outage%20in,banks%20manually%20updated%20account%20balances.
6. DeYoung, R. (2005). The Performance of Internet‐Based Business Models: Evidence from the Banking Industry. The Journal of Business, 78(3), 893-948. doi:10.1086/429648
7. Do Banks Need Branches in the Digital Age? (2017). https://thefinancialbrand.com. https://www.google.com/search?q=the+financial+brand
8. Flinders, K. (2015, January 5). Deal between RBS and CA over IT failure will remain secret.
9. Kshetri, N. (2021). The Role of Artificial Intelligence in Promoting Financial Inclusion in Developing Countries.
10. Kumar, L., and Dutta, S. (2015). Role of Mobile Money in Replacing Cash: A Study among Migrant Workers in South India. Economic and Political Weekly, 50(28), 39-47. doi:10.2307/24481801
11. NCPI, https://www.npci.org.in/what-we-do/upi/product-statistics
12. PaymentsJournal. (2018, November 6). The 18 Top Use Cases of Artificial Intelligence in Banks. https://www.paymentsjournal.com/the-18-top-use-cases-of-artificial-intelligence-in-banks/
13. RBI, https://www.rbi.org.in/Scripts/NEFTView.aspx
14. Rupa Rege Nitsure. (2003). E-Banking: Challenges and Opportunities. Economic and Political Weekly, 38(51/52), 5377-5381. Retrieved March 25, 2021, from http://www.jstor.org/stable/4414436
15. Sabharwal, M. (2014). The use of Artificial Intelligence (AI) based technological applications by Indian Banks. International Journal of Artificial Intelligence and Agent Technology, 2, 1-5.
16. Singh, A., and Shafaat, F. (2020) Online Banking in India: Growth and Challenges.
17. Singh, P., and Singhal, R. (2015). Emotional Intelligence and Customer Satisfaction in Indian Banks. Indian Journal of Industrial Relations, 51(1), 70-80. Retrieved March 25, 2021, from http://www.jstor.org/stable/43974539