Accelerating Change through Digital Banking
Banking has been transformed compared to 1990s, in India. We still remember the hoardings at a large nationalized bank in 1990, stating that they will be able to process a cash withdrawal transaction in 20 minutes. This was supposed to be the fastest transaction in that branch. Today, money transfers can be done using a mobile phone, sitting on your couch at home, within a minute. Mobile connectivity and declining data costs have dramatically increased the usage of internet. Over 80% of the households in India have access to mobile phones and over 300 million Indians use smartphones. This is roughly equivalent to the entire US population. The social media platforms such as facebook, Whatsapp and Instagram are logging more than 250 million monthly users in India. The increase in volume of digital payments, as shown above is indicative of the changing behavior of customers and their rapid acceptance of Mobile phone as the device of choice. Banks need to take a note of this,...