Constructive Measures for the Effective Functioning of Commercial Banks in Theni District

Abstract

The present study examines the constructive measures required for the effective functioning of commercial banks in Theni District. The banking sector has undergone significant changes due to technological development, digital banking, changing customer expectations and increasing competition. The study focuses on identifying the major measures expected by customers for improving the quality, accessibility, security and efficiency of banking services. Primary data were collected from 300 customers of State Bank of India, Indian Bank, HDFC Bank and ICICI Bank using a convenient sampling technique. The field survey was conducted from June 2023 to December 2023 through personal interviews using an interview schedule. Factor analysis was employed to identify the major constructive measures. The Kaiser-Meyer-Olkin measure of sampling adequacy was 0.824 and Bartlett’s Test of Sphericity was significant at 0.000, indicating the suitability of the data for factor analysis. The analysis extracted five major factors from nineteen variables, namely Best Practices for Enhancing Bank Customer Service, Banking Without Barriers, Empowering Every Customer, Secure and Seamless, and Next-Gen Customer Care. These five factors together explain the major expectations of customers regarding the effective functioning of commercial banks. The findings highlight the importance of customer-friendly digital platforms, improved ATM and CDM facilities, inclusive banking services, digital infrastructure, strong security systems, real-time fraud monitoring and technology-based customer support. The study concludes that commercial banks should continuously improve their digital infrastructure, customer service, security measures and financial inclusion initiatives to provide faster, safer, convenient and customer-oriented banking services in Theni District.