How digital & technological banks can be more effective in the future of the banking industry in India
Across the world, there is an increasing shift towards enabling digital adoption of financial services. The change has been driven primarily by the growing use of smartphones and affordable data. Moreover, the increased comfort with accessing services online in other areas has paved the way for banking solutions to offer digital-only propositions not burdened by traditional methods of providing financial services.
India has emerged as one of the world’s largest fintech markets. We have traditional banks and startups that are investing heavily on digital experiences which have helped to focus on digital banking. Digital banking will bring a new revolution in India which would bring three critical shifts within the banking landscape:
Customer Experience
Customer expectations have risen over the past decade across all businesses, including banks. They expect the interactions to be intuitive, seamless and straight forward. Banks have been investing to meet these expectations but have struggled to keep pace. Customer self-service in the banking industry is a significant component of customer experience. With increased mobility, customers are now quickly accessing their banks via their smartphones. For banks, mobile banking applications have become more of a necessity than just a value-added service.
According to a BI study, a whopping 97% of millennials indicated that they heavily use online or mobile banking, which helps them stay on top of their finances with personalised alerts for spends and bills.
Customer experience is the defining competitive differentiator amongst other players. The banks that are investing in customer experience are seeing a larger wallet share, higher rates of recommendations and are more likely to up-sell or cross-sell products and services to existing customers.
