DIGITAL TRANSFORMATION AT SBI: ADDRESSING CHALLENGES IN TECHNOLOGY-DRIVEN SERVICES

Abstract

The present study examines into the challenges encountered by the State Bank of India (SBI) in implementing technology-driven banking services, focusing particularly on customer perceptions. SBI, as one of India’s leading public sector banks, has made considerable strides in digital transformation, aiming to enhance customer experience, improve efficiency, and ensure seamless service delivery. However, the journey toward digitalization has not been without obstacles. Through a comprehensive customer survey, the study identifies a range of issues that customers face, including network slowdowns, connectivity problems, high transaction costs, payment gateway issues, limited service accessibility, and restrictions on transaction types and deposits. The study employs factor analysis to categorize these challenges into two major groups. The first group, labelled as bank-related issues, includes concerns such as payment gateway malfunctions, limited access time, and restrictions on certain transactions and deposits. The second group, referred to as network-related issues, encompasses network slowdown and connectivity challenges that impact service accessibility and reliability. A deeper analysis revealed significant gender-based differences in customer perceptions, particularly in response to network slowdown and high transaction costs. Interestingly, while gender appeared to influence views on these factors, it had no significant effect on perceptions related to connectivity problems, payment gateway issues, access limitations, or restrictions on deposits and transactions.