1. Boosting digital banking

Boosting digital banking

Digital banking will reduce branch-level transactions, ease customer service pressures and reduce the operating costs of banks.

By: | Updated: August 12, 2016 1:43 PM
digital banking, digital banking in India, digital banking india, banking industry, atm, atm network, startups, news

Digital banking will reduce branch-level transactions, ease customer service pressures and reduce the operating costs of banks. (Reuters)

At a time when there is a 27% increase in bank accounts in FY15 and 20% of the population has internet access, the slow growth in digital banking will need some push. Only 13% of the total banked population does digital banking at present. At the current rate of adoption, a BCG study points out that digital banking will reach only 25% by the end of this decade. However, with concerted efforts from the banking industry, this can reach up to 33% by 2020.

Digital banking will reduce branch-level transactions, ease customer service pressures and reduce the operating costs of banks. In fact, banks can leverage their vast ATM network to encourage digital banking, instead of keeping them predominantly for cash withdrawals. The BCG study says that online banking lags online shopping by almost two years. Banks will have to engage with start-ups that are developing innovative banking applications. The payment infrastructure is evolving in the country and the proposed Unified Payments Interface can bring in a paradigm shift for customers. So, for a win-win situation banks will have first identify the factors causing resistance to adoption of online banking and address them at the earliest.

  1. No Comments.

Go to Top