India has about 470 million banking customers and about 60 million of them, amounting to 13%, do online banking. Of these, about 10% prefer the hybrid model of regular online and offline banking. About 1% primarily use online channels for all their banking needs. 89% prefer to bank completely offline (about 2% of them use Internet banking but very minimally). In comparison, online banking is the primary channel of interaction for 20% of customers in economies like the UK and the USA.
60 million online banking customers in India (in 2015) will grow to about 173 million by 2020, a 23% annual growth. However, if lessons from online shopping are applied to better engage customers in online banking, we can accelerate this growth from 23% to 31% over the next 5 years and reach over 233 million online banking customers by 2020. This will effectively bring forward the adoption curve of online banking by 2 years.
50% of digital banking customers surveyed by BCG said that they are very willing to consider new banks, created out of the existing wallets, which will serve them mostly online.
