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Competing in the Age of Information Technology in a Developing Economy: Experiences of an Indian Bank

Competing in the Age of Information Technology in a Developing Economy: Experiences of an Indian Bank

Amit Sachan (Management Development Institute, India) and Anwar Ali (Institute of Management Technology, India)
Copyright: © 2006 |Pages: 20
DOI: 10.4018/jcit.2006040104
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Abstract

This case describes how banking in India has changed after developments in information technology in the last decade. The new private and foreign banks, which are strong in technology, are giving tough competition to old public sector banks. Private banks have pioneered Internet banking, phone banking, anywhere banking, mobile banking, debit cards, automatic teller machines (ATMs), and retail banking in urban India. This case is about the VN Bank, a public sector bank that has to formulate its strategy in order to compete in this new environment. The case also explores the opportunity and challenges for the bank in rural India and makes readers think about how information technology can help the bank in building a strong position in the rural markets. The findings of the case study also can be generalized across other developing countries, where domestic companies are facing tough competition from foreign and private players.

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