Banks must innovate quickly to protect their market position. Customers are willing to engage with banks in 3 categories – payments, savings, and investments all are technologically feasible. Banks can leverage technology to create wealth management for the mass market with personalized advice and ideas to reduce expenditure and improve return on investments.
The Indian banking industry processes over 17 billion transactions annually, and this number is growing at a healthy rate. The transactions on digital channels, comprising mobile, Internet, POS, and ECS, grew by 40% in FY15 and by 67% in FY16. This shows that customers have significant latent appetite for digital channels and banks need to continue to invest in these channels.
Between FY14 and FY16, the number of self-service machines (SSMs) almost trebled. In the last 2 years, PSU banks have added more than 10 times the number of SSMs as compared to private sector banks. This investment is a massive show of confidence in the utility of SSMs by the sector and by the customers. This trend is expected to continue in the coming years.
