A STUDY ON COMPARISON OF TRADITIONAL AND MODERN BANKING AND ITS IMPACT ON BANKING INDUSTRY IN INDIA.

The banking sector is the backbone of any non traditional economy. It is the important pillars of the financial
sector, which plays a main role in the functioning of an economy. It is vital for economic development of a
country that its financing requirements of trade, industry and agriculture are met with higher degree of
commitment and responsibility. However, the development of a country is integrally linked with the development
of banking. In Traditional times, banks were simply be left with payment and settlement business. So
transformation from traditional to modern banking relates to intermediate stage when the industry is passing
from the earlier or before social banking era to the newly conceived technology based competitive banking
and customer centric. Modern banking is the term used for E- banking or Electronic Banking which suggest
that banking no longer follows the old type of traditional way but the new modern techno way. However, E
banking consist of - Internet banking and banking through other electronic modes such as M-banking, ATM,
other apps like GPay, Paytm etc. Banking industries is one the significant service sectors in the Indian
economy with modern innovations which push the banking service industry to enhance effective customer
services. These modern banking services are paving the ways to interface the customers with their banks.
Purpose: The purpose of the study is to look at the functioning of the banks in modern way. There is shift in
the pattern from traditional way to modern way in the functioning of banks and this has led to transformations
in banking industry. This study focus on comparing the traditional and modern phase of banking.Methodology
Type of research is Secondary data.Contribution: Paper is focusing on measuring the overall Customer
satisfactions from banking services as now banks are becoming modern by providing e-banking and other
types of modern services. Satisfaction level of customers has been enhanced due to modern banking services.
And paper also focuses on overall impact on banking industry as banking era is transforming from traditional
to modern services.
Key words: Traditional Banking, E-Banking, Customer Satisfaction, Technology