Application of Business Intelligence in banking processes management: Study on Indian Scheduled Commercial Banks in the Public and Private Sector

Abstract

Business intelligence (BI) has been extensively known to provide immense benefits to banking industry that have adopted and applied it. Yet, very few studies have empirically evaluated these assertions, particularly in the Indian banking industry. The main aim of the present paper is to empirically evaluate the application and impact of BI on banking processes management. This paper also investigates the differences in the application of BI in banking process management with respect to the public and private commercialized banks. The hypotheses of the study are tested through questionnaires and the responses obtained from 442 bankers from the selected places of Karnataka, India. The results indicate that adoption of BI have a significant positive impact on the risk management, customer relationship management, asset and liability management and performance management, thus ascertaining the benefits of BI adoption in operational banking process management,however, the adoption of BI had no significant impact on the compliance factor. Further, the application of BI in all the five banking processes management varies between public and private sector banks. A practical implication from the study is that banking management and policy makers can exploit on the findings to generate awareness and promote the adoption of BI systems in operational processes which can translate to the profitability of the banks in a developing country like India.