BALANCING OPERATIONAL EFFICIENCY AND CUSTOMER-CENTRIC SERVICE DELIVERY IN BANKING: AN INTEGRATIVE FRAMEWORK FOR DIGITAL TRANSFORMATION

DOI: https://doie.org/10.65985/APER.2026143558

Authors:

Sujata S. Iyer, Dr. Christina Shiju

Keywords:

operational efficiency, customer-centric service, service climate, digital transformation, banking, employee mediation, dual performance, conceptual framework

Abstract:

Banks face mounting pressure to achieve operational efficiency while delivering superior customer experiences, yet understanding how to optimize both simultaneously remains limited. This conceptual study develops an integrative framework that positions operational efficiency and customer-centric service as potentially complementary capabilities under specific organizational conditions. The framework identifies management commitment, service climate, and employee attitudes as critical mediating mechanisms enabling dual performance. Five testable propositions are advanced, suggesting that when management commitment is strong, service climate is authentic, and digital capabilities are sufficiently developed, banks can achieve efficiency and service outcomes simultaneously. The study offers actionable insights for practitioners navigating digital transformation and seeking to align operational imperatives with customer-centric delivery.

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