Digitalisation boost operation efficiency with special emphasis on the banking sector

The banking sector has experienced a substantial technological shift that has opened up new and better opportunities for its customers. Based on their technological expenditures, the study assessed the two biggest public Indian banks and the two biggest private Indian banks. The most crucial statistical techniques used to demonstrate the aims are realistic are bivariate correlations and ordinary least squares. This work aims to establish a connection between research and a technology index that serves as a proxy for operational efficiency. The results show that for both public and private banks, the technology index positively influences operational efficiency metrics like IT costs, marketing costs, and compensation costs. This suggests that when the technology index increases, so do IT, marketing, and compensation costs, even though it has been shown that the technology index favourably improves operational efficiency measures like depreciation and printing. This means that the cost to banks is high despite greater investment in technology for these activities.