Digital Banking Taking Center Stage, Physical Banking May Soon Be History [Big Banking Trends of 2015]


Digital Banking

Banking is facing Uber movement. The number of branches and people employed in the financial services sector may decline by as much as 50% over the next 10 years, and even in a less harsh scenario they will decline by at least 20%, Says former boss of Barclays Antony Jenkins .

Digital banking is the latest and popular trend among the young generation. In India, with  increasing competition from Fin-tech startups & mobile wallet companies like PayTM, Mobile wiki,  Easy recharge, Ola Money etc , Banking sector has been quick to respond to the ongoing digital disruption with the products like ICICI Pockets , HDFC Chillr & PayZap , SBI buddy & Batua and Axis bank lime . As per latest report by PWC, if banks don’t respond quick enough to digital revolution then soon they will be out of business.

Below are some of the trending features in Indian Digital banking space.


# Trend 1: Digital On boarding:

This is latest trend on customer on boarding which is catching up very fast because of government push to capitalize on Aadhaar & Biometric technology. Now, to open a bank account there is no need to visit bank -branch and submit address proof or sign physical KYC form , customer can be on boarded with biometric verification using his Aadhaar number and finger print. HDFC is already using this technology for loans distribution and rural ATMs.

#Trend 2: Payments:

Immediate payments service (IMPS)  is the most trending way of making interbank payments because of its Immediate fund transfer , 24*7 support and ease of payee registration using MMID & Mobile number. Mobile only payments for intrabank (within bank) fund transfer is also catching up because of ease of making payment by knowing only other person mobile number.  Most of the banks are giving these options in there digital Apps.

#Trend 3: Analytics-Location and activity-based services and offers:

Banks now want to capitalize on customer data like transaction history, stated Preferences, geo location etc to send offers that are relevant to customer. For example, if you are in Pune Inorbit Mall and in the past you have dined at Dominos pizza, then banks will send you available deal/discount as push/SMS/Email notification on you mobile related to Domino’s Pizza along with the store location.

#Trend 4: Personal Finance Manager:

In future customers can get some additional information on their spending patterns and manage their finances, set budget etc. For example, customer can set budget of 2500 INR for monthly dining and he will get alert if he is overspending on this category.

If current trend of digitalization continues Physical banks and Branches will be soon be history and technology will play a huge role in generating revenue and profits for banks.

Author Profile: Ashish works as Business Analyst in digital banking space for leading Singapore Bank .He has entrepreneurial mindset and passion to explore latest and Future trend of digital technology. He is a regular cyclist, part time cook and amateur portrait photographer.

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  1. Mud says

    I would like to know the situation with BITCOIN in our country – why’d the government ban it, are they working to OVERTURN the ban, when is that going to be, etc. etc….

    Does anybody know?

  2. Ayietim says

    Well, change is the only constant thing in life and it looks like the world is headed in the direction of total digitalization. However, I am sure something will come that will still make human labour very relevant.

    1. ashish says

      Definetly human interaction/services are required to get attached with the brand , but i can see the shift towards automation specially in operations(middle office) . Digitalization is oppurtinity for the banks to boost up the profits in this tough requlatory environment.

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