Investigating the Importance of Technology in Enhancing Customer Relationships in Banking

Introduction             In the norm of business and economic growth, financial system inevitably plays a vital role. We are told that financial market is embodied with sophisticated systems in which are observed carefully by financial and marketing connoisseurs. The role of financial system is to be an intermediary between lenders and borrowers, in this sense, for example in banking business "providing a menu of saving vehicles with differing risk and return characteristics, and helping investors find the financing they need, taking into account the returns and risks on the projects they wish to undertake (Fischer, 2003 p.2)." Banking industries and other similar forms can be accounted as financial markets in which are responsible for giving financial assistance and services to borrowers, lenders and investors. Technological innovations are having significant relevance to man. Rapid technology advancements have introduced major changes in the worldwide economic and business atmosphere. Information technology developments in banking sector have sped up communication and transactions for clients. Background             Financial institutions occupy a special place in the business landscape. Banks, in particular, represent one of the most common and often most important business relationships in a typical customer's life. A customer's commitment to a financial institution can be driven more by trust and confidence than practical issues. Consequently, banks are constantly challenged to engage their customers on both an emotional and a rational level. Recent advances in technology provide banks with new tools that can help meet that challenge, but the way in which banks manage and leverage those tolls will determine whether they succeed. Technology has become the driver of change that is taking place in the banking sector. Technology-based tools greatly support the most innovative concepts currently being implemented in the market. The efficiency at which service levels are improved hinges on the appropriate use of the available technologies. Objectives             The primary objective of this study is to establish the role and importance of technology in enhancing customers' relationship in banking. It is quite interesting that due to the prevalence of rapid changes in technology, there are issues which need to be examined and investigated like the established relationship of customers in their banking transactions. Furthermore, this study would like to investigate the density of the role of technology in establishing a stickiness relationship of customers on their choice of banks and banking transactions. Statement of the Problem             This study aims to answer the following inquiries: What is the importance of technology in general? How technology does contribute to the development of banking systems and transactions? How banking institutions utilized technology in order to attract a sticky relationship with its customers? What are customers' behaviors related to technology which enhances their relationship in banking? Methodology             The study will use different methods in order to come up with substantial and relevant results. The use of Technology Acceptance Model (TAM) will be employed and Convenience Sampling will be used as a method to make research procedure faster by obtaining a large number of accomplished questionnaires rapidly and efficiently.             The use of quantitative and qualitative approaches will enhance the research claim. These approaches use different instruments like survey methods and interviews (group and individual). While online banking transactions and retail banks will be used as subjects for investigation in order to establish a wide array of information and analysis.  Timetable             As soon as this study will have its approval, it will take the first two months for preparation in gathering data necessary for analysis. The next two months will be fritter on conducting necessary interviews, surveys, and observations on specific online banking networks while the rest of the time will be used in gathering all the data sets, analysis and final presentation.