The advent of the internet and smartphones has transformed how people bank and manage their finances. Over the past decade, there has been exponential growth in the usage of online and mobile banking services. As per a recent report in The Hindu, public sector banks currently have a mobile user base of 1.22 crore and are expected to double it by 2024. This highlights the rapid adoption of mobile banking in recent years.
With advanced banking technologies, customers can now conveniently access their accounts, transfer funds, pay bills, and avail services remotely through websites and apps. This article will explore the factors driving the growth of digital banking, its advantages to consumers, and how it is reshaping the future of the banking industry.
Digital payments in India have grown significantly in recent years, accelerated by government initiatives and increasing internet and smartphone penetration. Demonetisation in 2016 gave a boost to digital payments, which now account for over 20% of transactions compared to only 10% earlier. The government has actively promoted digital payments through efforts like Digital India, Make in India, and Startup India. Initiatives like UPI and the BHIM app have driven the adoption of digital payments.
UPI recorded 900% growth in 2017 and 63% growth in 2020, processing transactions worth ₹4.3 trillion that year. By the end of 2022, UPI’s transaction value was ₹125.95 trillion, 86% of India’s GDP. E-commerce has also catalysed digital payments growth. The sector is projected to grow at 31% CAGR to reach $200 billion by 2026. With internet users expected to touch 800 million by 2023, mobile wallet users are forecast to hit 900 million by 2025.
The advent of online and mobile banking has revolutionised how people manage their finances by making banking services more convenient and accessible. With online banking, customers can securely access their accounts 24/7 through bank websites to perform transactions, pay bills, transfer funds, and check balances and statements. This eliminates the need to visit physical branches during working hours.
Mobile banking takes it a step further by enabling banking on the go using smartphones and apps. Customers use their online bank account from anywhere anytime by just logging into their mobile banking app. Features like mobile check deposits, real-time alerts and location-based offers add to the convenience. Additional conveniences include easy online loan and account opening, and hassle-free bill payments. Online and mobile banking have effectively removed geographical barriers to accessing banking services.
INDIE by IndusInd Bank provides an enhanced digital banking experience and you can open digital savings account on it seamlessly within a few minutes.
IndusInd Bank offers a digital-only mobile banking experience through its INDIE app. INDIE provides an attractive 6.75% interest rate on savings with no minimum balance requirement. It allows quick account opening, video KYC, and management of fixed deposits, credit lines, and investments seamlessly within the app. Additional benefits include zero issuance and annual fees on debit cards and referral bonuses. By harnessing the power of the latest technology, INDIE delivers personalized financial management solutions.
Digital banking has played a pivotal role in promoting financial inclusion across India. Banks have used mobile phones and internet to reach new, underserved populations. They live in rural and remote areas. Initiatives like Jan Dhan Yojana aim to give every household a bank account. Mobile banking has added to their impact. This has given individuals access to key banking services. These include savings accounts, direct benefit transfers, and microloans. They foster economic growth and reduce disparities.
As digital transactions become more prevalent, ensuring robust security measures is paramount. Banks and financial institutions have invested much in encryption. They also use multi-factor authentication and real-time transaction monitoring. They do this to protect customer data and stop fraud. Building trust among consumers is critical. This trust is about the safety of online and mobile banking. It’s key for keeping up their adoption and usage.
The proliferation of smartphones and internet connectivity has fuelled the rapid adoption of online and mobile banking worldwide. With advanced technologies and innovative offerings like INDIE, digital banking is making financial services more accessible, convenient, and personalized for consumers.
Technology continues to advance. Banks must embrace these changes to stay competitive. They must also deliver more value to their customers. This is in a world that is more digital.
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