The impact of technology investment on financial service quality: Evidence from bank hirings

Kim, Sydney Seulgi

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https://hdl.handle.net/2142/124518 Copy

Description

Title

The impact of technology investment on financial service quality: Evidence from bank hirings

Author(s)

Kim, Sydney Seulgi

Issue Date

2024-04-15

Director of Research (if dissertation) or Advisor (if thesis)

Li, Laura

Doctoral Committee Chair(s)

Li, Laura

Committee Member(s)

• Chen, Clara
• Zhu, Wei
• Almeida, Heitor

Department of Study

Accountancy

Discipline

Accountancy

Degree Granting Institution

University of Illinois at Urbana-Champaign

Degree Name

Ph.D.

Degree Level

Dissertation

Keyword(s)

• Financial Service Quality
• Human Capital
• Technology

Language

eng

Abstract

Utilizing a near-universe dataset on bank job postings, I examine whether banks’ human capital investment in technology impacts the quality of financial services. I find that higher investment in technology professionals is not associated with overall consumer satisfaction. However, further investigation reveals more complicated impacts from technology investment. While higher investment in technology specialists is significantly associated with an increase in service quality regarding loan application and loan service, but it is associated with a decrease in the service quality of loan collection, particularly when the bank has no branch presence in the local area. This evidence supports the proposition that investment in technology alone can increase financial service quality through building better information infrastructure and offering more convenient and standardized services. However, technology is inadequate when dealing with complex financial distress issues, particularly when not complemented by human service personnel. Overall, this study provides the first empirical evidence on the impact of technology investment on financial service quality through the lens of human capital investment.

Graduation Semester

2024-05

Type of Resource

Text

Handle URL

https://hdl.handle.net/2142/124518

Copyright and License Information

Copyright 2024 Sydney Kim

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