The Evolution of Banking Technology and Its Influence on Customer Behavior in Virudhunagar District

Abstract

This study examines the evolution of banking technology and its impact on customer behavior within the Virudhunagar district, a region characterized by a transitional economy where traditional practices and industrial modernization coexist. The research traces the progression of banking technologies, from the introduction of ATMs in the late 1960s to the development of Core Banking Systems (CBS) in the 1970s and 1980s, and the more recent advent of Internet Banking and the Unified Payments Interface (UPI). It investigates how this technological evolution has influenced customer preferences and adoption patterns, moving from a reliance on traditional, face-to-face interactions to the growing popularity of digital platforms. The study highlights the challenges in this transition, including disparities in digital literacy and internet connectivity between urban and rural areas. It also addresses customer apprehensions regarding security, privacy, and the complexities of online transactions. By analyzing these factors, this research aims to provide insights into how banks can better facilitate a seamless and trustworthy digital banking environment that caters to a diverse customer base.