ASSESSING THE PERFORMANCE OF DIGITAL TRANSACTIONS IN PUBLIC AND PRIVATE SECTOR BANKS DURING 3G AND 4G PHASES: A COMPARATIVE STUDY

Abstract

The present study underscores the transformative impact of technological advancements on banking practices, and enhancing operational efficiency. As banks increasingly leverage IT infrastructure to meet evolving customer expectations and streamline operations, the transition from traditional brick-and-mortar banking to digital platforms has accelerated, driven by the emergence of 3G and 4G technologies. Notably, 4G technology's superior capabilities, have facilitated a seamless digital banking experience for customers This comparative study assesses the digital transaction performance of public and private sector banks during the transition from 3G to 4G phases, alongside an examination of the technology-driven banking services provided by both sectors. Leveraging secondary data from the National Payments Corporation of India and the RBI covering the period from 2008-09 to 2019-20, the research employs Panel Least Square analysis, Pair-wise Granger Causality tests, and paired t-tests. The analysis investigates digital banking services such as NEFT, RTGS, and Mobile banking, ATM, Credit Card, and Debit Card services, while also exploring the significant difference in digital transaction performance between public and private banks. With a focus on the Business to Customer (B2C) domain, the research delineates digital transaction performance metrics encompassing RTGS, NEFT, ATM, mobile, debit card, and credit card transactions data from key players like State Bank of India, Bank of Baroda,(Public Sector) HDFC, and ICICI(Private Sector) across the 3G (2008-09 to 2011-12) and 4G (2012-13 to 2019-20) eras. Through the introduction of a proxy tool termed the Banking Technology Index (BTI), the study aims to comprehensively evaluate and compare the overall performance of public and private sector banks during both the 3G and 4G periods. The study found that the transformative impact of 3G and 4G technologies on the banking sector, thereby informing future banking practices and strategies amidst an increasingly digitized landscape.